More than 245,000 establishments do not include any Omani citizens

Muscat: The Ministry of Labour (MoL) has reported that over 245,000 establishments have a zero percent Omanisation rate, with 1.1 million expatriates employed compared to no Omani citizens.

To address the imbalance between business sustainability and job localisation, the Ministry has announced a package of regulations and incentives. These aim to implement the decision that establishments and companies which have been operating for over one year must employ at least one Omani citizen. The decision is based on data revealing significant disparities in Omanisation rates:

1) Approximately 1,000 large establishments employ around 200,000 Omanis and 245,000 expatriates, with a 44 percent Omanisation rate (an average of 200 Omanis to 245 expatriates per company).

2) Approximately 19,000 establishments employ about 60,000 Omanis and 300,000 expatriates, with an Omanisation rate of no more than 17 percent (approximately 3 Omanis to 15 expatriates per establishment).

3) Over 245,000 establishments employ over 1.1 million expatriates with a zero percent Omanisation rate.

The Ministry states that this decision is a step towards rectifying the labour market, curbing shadow trade, ensuring equitable distribution of opportunities, and promoting sustainable and fair competition.

To empower the national workforce and promote Omanisation, the Ministry has introduced measures including employment-linked training programs, on-the-job training, wage support, and flexible alternatives such as including self-employed and part-time workers in Omanisation quotas.

The Ministry has adopted a flexible implementation mechanism, considering the varying economic circumstances, capabilities, and activities of establishments of all sizes.

Establishments that have been operational for a year without employing an Omani citizen must submit an operational plan within one month of notification.

Establishments with 10 or more employees have three months to implement the employment of an Omani citizen, while those with fewer than 10 employees have six months. Full-time self-employed individuals are given a one-year grace period.

To ensure fair implementation, a committee has been formed to review grievances, study exceptional cases, and monitor the decision's impact, submitting observations and recommendations.