Oman Mandates Hiring of At Least One Omani for All Foreign Businesses

In a significant move to promote local workforce integration, the Omani government has introduced a new regulation requiring every foreign-owned business operating in the Sultanate to hire at least one Omani employee. This requirement must be fulfilled within one year of the business beginning commercial operations.

New Provision Under Ministerial Resolution No. 411/2025

The rule is part of Ministerial Resolution No. 411/2025, issued by the Ministry of Commerce, Industry and Investment Promotion. It amends the executive regulations of the Foreign Capital Investment Law by adding a new clause, Article (12) bis.

According to the resolution, every foreign-owned establishment and company must employ one Omani national, who must be formally registered with the Social Protection Fund. This employee must be hired within 12 months from the start of commercial activities.

Existing Companies Must Comply Within 6 Months

Foreign-invested companies that have been operating in Oman for a year or more are required to regularize their employment status within six months from the date the resolution is enforced.

This compliance must coincide with one of the following business actions:

• Renewal of commercial registration

• Issuance of a new work permit

• Renewal of an existing work permit

Whichever occurs first will serve as the deadline trigger for compliance.

Supporting Omanisation Goals

The ministry emphasized that the new regulation is designed to:

• Enhance the role of Omani talent in the private sector

• Strengthen alignment with national Omanisation targets

• Encourage long-term employment opportunities for citizens

This step reinforces Oman’s ongoing efforts to diversify the economy and reduce dependency on foreign labor, particularly in key sectors.

Conflicting Provisions Nullified

The resolution also clearly states that any provisions conflicting with this new mandate are now considered null and void. The law takes effect immediately, beginning the day after publication in the Official Gazette.

Business Action Points

Foreign businesses in Oman should act promptly by:

• Reviewing their HR and compliance frameworks

• Planning for local recruitment in advance

• Registering the hired Omani employee with the Social Protection Fund

• Monitoring permit renewal dates to ensure timely compliance

Non-compliance could lead to administrative delays or legal challenges related to business licensing and workforce approvals.