Oman Sets New Hiring Rule for Foreign Investors

Oman has introduced a new rule requiring foreign-owned businesses to hire at least one Omani employee within one year. The Ministry of Commerce, Industry and Investment Promotion issued this directive under Ministerial Resolution No. 411/2025. The rule adds Article (12) bis to the Foreign Capital Investment Law’s executive regulations. It aims to increase local workforce participation and support Omanisation policies. The ministry stressed the importance of stronger compliance with these policies across the private sector.

The new law mandates that every foreign company operating in Oman must employ an Omani national registered with the Social Protection Fund. This requirement applies to both new and existing businesses. Companies already operating for more than one year must regularize their employment status within six months. They must do this when renewing commercial registrations or work permits, whichever happens first. The ministry emphasized that this step ensures fair local employment practices.

The regulation replaces any conflicting rules and becomes effective the day after its publication in the Official Gazette. It applies to all foreign-invested companies in Oman. Authorities expect the move to boost Omani employment opportunities in the private sector. This change aligns with the country’s broader goals for economic growth and job creation. It also strengthens efforts to integrate Omanis into key business roles.

The ministry said the amendment reflects Oman’s commitment to promoting national workforce development. Foreign companies are encouraged to comply promptly to avoid penalties. The policy also signals a more robust approach to labor market regulation. Officials believe it will improve the balance between foreign investment and local employment. The government remains focused on creating sustainable job opportunities for Omanis.

In summary, Oman’s new law sets clear hiring obligations for foreign businesses. It marks a significant step towards advancing Omanisation across industries. By enforcing these rules, the government aims to protect national employment interests. The change highlights Oman’s drive for economic diversification and social development. Foreign investors must adapt to these new requirements swiftly to continue operating smoothly in Oman.