Muscat: The Ministry of Labour has announced the implementation strategy for the rule requiring each commercial registration that has been established for one year to hire at least one Omani citizen.
The new policy, which promotes national workforce development and labor market regulation, was initially described in a Ministry announcement dated May 5, 2025. The mechanism applies to all commercial properties, with unique provisions tailored to the entity's nature and size.
A. Foreign Investment Establishments
1. Foreign-owned firms with a commercial registration older than one year must submit an employment plan that includes at least one Omani citizen within three months.
2. Recruitment can be done directly or through a specific employment plan that leads to actual hiring.
3. A complete prohibition on issuing new work permits will apply to any noncompliant institution, regardless of staff size.
4. A grace period of no more than three months will be provided starting from the date of official notification.
5. This mechanism was created in collaboration with the Ministry of Commerce, Industry, and Investment Promotion.
B. Establishments Employ More Than 10 Workers
1. These firms must submit an employment plan to hire at least one Omani within three months.
2. Recruitment can be done directly or via a successful employment plan.
3. Notifications will be sent via the Ministry's electronic system.
4. If the business fails to comply, the system will automatically prohibit the issuance of new work permits.
C. Establishments With Fewer Than 10 Employees
1. These entities must submit a strategy to hire one Omani citizen within six months.
2. All such enterprises will be subjected to a case review within six months to evaluate their contribution to local value addition.
3. Compliance can be achieved through direct recruitment, a viable employment plan, or, if value addition is proven, a temporary exemption.
4. Noncompliance will result in an automatic prohibition on new license issuance through the Ministry's system.
D. Entrepreneurs and Full-Time Business Owners
1. Establishments operated by entrepreneurs or full-time business owners will receive a one-year grace period to comply with the Omanisation rule.
2. A case review will be performed within six months to assess the entity's local economic contribution.
3. Entrepreneurs who do not presently possess a Riyada Card can apply via the Small and Medium Enterprises Development Authority to get one and take advantage of related exemptions and amenities.
The Ministry encouraged all relevant institutions to follow the new laws in order to prevent penalties and assist national employment objectives.
