Wednesday 08 / July / 2026
Muscat: The Shura Council hosted on Wednesday Prof. Mahad Baawain, Minister of Labour, as part of its ongoing consultative engagement with the Ministry of Labour to discuss Ministerial Decision No.(602/2025) promulgating the Executive Regulation Governing Work Permits and Work Practice Permits, together with the amendments introduced under Ministerial Decision No.(44/2026).
The meeting was chaired by Said Al Saadi, Deputy Chairman of the Shura Council, and attended by Ahmed Al Nadabi, Secretary General of the Shura Council, Members of the Youth and Human Resources Committee, and Members of the Economic and Financial Committee.
At the outset of the meeting, the Deputy Chairman welcomed the Minister of Labour, expressing his appreciation for the Minister’s participation and emphasising that such meetings between the Shura Council and the Ministry reflect the consultative approach founded on constructive dialogue regarding legislation affecting the labour market and its workforce, while safeguarding labour market stability, improving productivity, protecting rights, and supporting the growth and expansion of private sector enterprises.
He further noted that this comes at a time when the Government places considerable reliance on the private sector to provide employment opportunities for job seekers, recognising its role as a principal driver of economic growth and national development.
He also stressed that decisions relating to the labour market attract considerable public interest because of their implications for all stakeholders within the productive sectors of the economy, making consultation and the exchange of views an essential approach to enhancing legislation governing this sector.
For his part, the Minister of Labour expressed his appreciation for the role undertaken by the Shura Council in discussing national issues, affirming the Ministry’s commitment to engaging with the Council and keeping it informed of the objectives and rationale underpinning the Ministry’s decisions aimed at regulating the labour market.
He emphasised that this reflects the principle of partnership between the Ministry and the Council and contributes to strengthening institutional cooperation between the legislative and executive authorities.
The Minister then delivered a visual presentation outlining the principal objectives and foundations of the Ministerial Decision, explaining that it forms part of broader efforts to enhance the regulatory framework governing the labour market and strengthen private sector compliance with national employment policies, thereby maintaining an appropriate balance between economic development requirements and labour market sustainability.
He explained that the Decision is intended to support the achievement of national employment targets by serving as one of the regulatory instruments for regularising the status of private sector establishments and strengthening their role in expanding employment opportunities for the national workforce.
He further noted that the Decision includes regulatory measures and incentives, including transitional implementation periods to enable private sector establishments to regularise their status.
The Minister also explained that the Ministry accompanied the implementation of the Decision with a comprehensive communication strategy aimed at raising awareness of the Regulation and its positive impact on labour market governance through a series of publications, media engagements, and press releases.
These efforts were designed to ensure that information reached all target groups, particularly employers, investors, expatriate workers, and recruitment agencies, thereby strengthening awareness of the legislation governing the labour market.
The Minister further presented the preliminary indicators of the Regulation's implementation, noting that they showed an increase in the number of establishments complying with employment requirements, alongside the continued entry of new and active businesses into the labour market.
He also reviewed the Ministry’s responses to the observations submitted by the Youth and Human Resources Committee concerning the legislative background of the Decision, the impact of the Regulation, the balance between labour market regulation and economic sustainability, the enhancement of national economic competitiveness, and the mechanisms for continuously monitoring and evaluating the Regulation’s implementation.
Following the presentation, Members of the Shura Council raised a number of observations, inquiries, and proposals focusing on the Decision’s economic and social dimensions.
Discussions addressed its impact on self-employment and small and medium enterprises (SMEs), as well as the implications of the prescribed fees for their financial sustainability and business continuity.
Members also sought clarification regarding the methodology for calculating fees and penalties associated with non-compliance with Omanisation requirements, and the extent to which these take into account the circumstances of SMEs.
Members also discussed the rationale for regulating the recruitment of workers from certain nationalities to work in the Sultanate of Oman and the implications of such measures for operating costs borne by employers and entrepreneurs.
They emphasised the importance of adopting policies that support the private sector and reduce production costs in order to strengthen the competitiveness of the national economy and ensure the sustainability of SMEs as a key pillar of economic activity.
Members further called for greater transparency regarding employment statistics and increased public awareness of the Decision’s objectives and anticipated outcomes to promote broader public understanding of its national objectives.
The discussions also examined the anticipated impact of the Regulation on various economic sectors.
Members raised a number of inquiries regarding its role in addressing structural imbalances within the labour market, limiting irregular labour practices, supporting sustainable employment opportunities for job seekers, and its implications for the business environment, operating costs, and the prices of goods and services.
They also discussed the regulatory framework governing the recruitment of expatriate workers, the ability of SMEs to comply with the Regulation and bear the prescribed fees, and the mechanism for utilising the anticipated revenues generated from its implementation to support national employment programmes.
The discussions further emphasised the importance of maintaining an appropriate balance between labour market regulation and the sustainability of economic activities by taking into consideration the challenges facing private sector establishments, particularly SMEs, ensuring alignment between the needs of economic sectors and national workforce employment objectives, assessing the effectiveness of incentives and penalties associated with Omanisation targets, and examining the Regulation’s impact on national competitiveness and investment attractiveness.
They also addressed the implications of labour costs for the implementation of public and private sector projects, in addition to reviewing the Ministry of Labour’s approach to evaluating and reviewing the Regulation during the coming phase and further developing labour market policies in line with evolving economic and development priorities.
This meeting reflects the shared commitment of the Shura Council and the executive authorities to strengthening institutional dialogue and consultation, reinforcing the principle of national partnership in addressing priority issues, advancing the legislative and regulatory framework, enhancing the effectiveness of public policies, responding to citizens’ aspirations, and supporting the objectives of comprehensive development through effective cooperation between the legislative and executive authorities, thereby contributing positively to the Sultanate of Oman’s development process.
