Business
Omanization of corporate structures
Omanization is a government policy aimed at increasing the share of Omani citizens in the private sector.
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Overview
The key Goals of omanization are:
- Reducing unemployment among Omanis
- Decreasing the economy's dependence on foreign labor (expats make up around 40% of Oman’s population)
- Improving the skills of local talent through training and employer incentives
Starting April 1, 2024, the Omani government requires all foreign companies in Oman to hire at least one Omani citizen and register them with the Social Protection Fund within a year of starting operations.
The required Omanization percentage depends on the economic sector, business activity, and the availability of qualified Omani workers.
Economic Sectors
Different sectors have specific Omanization targets.
- Banking sector: Must achieve 95% Omanization in clerical positions and 75% in senior and mid-management positions.
- Transport & Logistics sector: The Ministry of Transport, Communications, and Information Technology (MTCIT) set Omanization targets ranging from 20% to 50% starting in 2025, with annual increases until reaching 100%.
Types of Activities
In September 2024, the Ministry of Labor expanded the list of professions reserved exclusively for Omani citizens.
From January 1, 2025: Restrictions apply to
- System analysts
- Information systems network specialists
- Computer maintenance technicians
From January 1, 2026: Restrictions apply to
- Programmers
- Electronics and computer engineering specialists
- Computer operators
From January 1, 2027: Restrictions apply to
- Web designers
- Operations analysts
Omanization Reporting
Employers are required to maintain a special register of Omani citizens employed in the company and submit an annual Omanization plan to the Ministry of Labor. The plan must include:
- The number of Omani employees
- Their salaries
- Gender distribution
- Information about vacancies
Vacancy and quota compliance information must be posted publicly in the company’s office.
Penalties for Violations
- If an employer fails to meet Omanization quotas or does not replace expats with local workers, they face fines of 500–1,000 OMR (1,300–2,600 USD) per employee who should have been hired.
- Repeat violations result in higher fines and may lead to license revocation.
A complete roadmap for launching and running a business in Oman — in our guide 'How to Do Business in Oman?'
In the guide, you will find not only basic information but also expert recommendations based on real cases and deep jurisdictional expertise:
- Which types of businesses are best suited for Oman
- Key steps to launching a business in Oman
- Detailed descriptions of the processes for starting a business in Oman’s free zones and Mainland
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Leave a request, and we will contact you to clarify details:
- We will select the right activity type and jurisdiction
- Outline all stages of company setup
- Provide clear timelines and project budget
