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Oman News

Labour Ministry announces mechanism to implement employment of one Omani national per commercial registration

Ministry of Labour has announced a detailed set of mechanisms for implementing its decision to appoint at least one Omani national for every commercial registration that has completed one year since its establishment.

TAS News Service

info@thearabianstories.com

Sunday, June 15, 2025

MUSCAT – The directive is part of ongoing efforts to regulate the labour market and promote national employment under the framework of the Ministry’s statement issued on May 5, 2025.

This mechanism, developed in agreement with the Ministry of Commerce and Industry, is aimed at regulating the status of commercial registrations and promoting investment.

General requirements, as per the mechanism shared by the Labour Ministry:

  1. Foreign investment establishments that have completed one year from the date of their commercial registration are required to submit an operational plan to employ at least one Omani national within three months.
  2. Employment may be fulfilled either through direct recruitment or by submitting a clear employment plan that leads to actual appointment.
  3. A comprehensive ban shall be imposed on all non-compliant foreign Investment establishments, regardless of the number of workers registered.
  4. Establishments shall be granted a grace period not exceeding three months from the date of notification to rectify their status in accordance with the decision.

For establishments with more than 10 workers:

  1. Establishments employing more than 10 workers are required to submit an employment plan to recruit at least one Omani within a period of three months
  2. The decision may be implemented through either direct employment or by submitting an employment plan that leads to actual recruitment.
  3. The establishment shall be notified via the electronic system of the requirement to employ.
  4. In case of non-compliance following notification, the system shall automatically apply a ban on the issuance of new licenses, which will be reflected directly on the system’s interface.

Establishments with fewer than 10 workers:

  1. Establishments employing less than 10 workers are required to submit an employment plan to recruit one Omani within six months.
  2. All establishments shall undergo a case review within six months from the date of notification to assess the establishment’s contribution to local value addition.
  3. The decision may be implemented through direct recruitment, submission of an employment plan that leads to actual recruitment, or, if the establishment’s contribution to local value addition is confirmed, it may be temporarily exempted from the employment requirement.
  4. In case of non-compliance following notification. the system shall automatically impose a ban on the ssuance of new licenses, which will be reflected directly on the system’s interface.

Entrepreneurs and full-time business owners

  1. Establishments owned by entrepreneurs and full-time business owners shall be granted a grace period of one year from the date of issuance of the notification decision to rectify their status and fulfill the Omanization requirement.
  2. All establishments shall undergo a case review within six months from the date of notification to assess the establishment’s contribution to local value addition.
  3. Business owners who do not hold a Riyada Card may apply for registration with the Small and Medium Enterprises Development Authority to obtain the card and benefit from the associated facilities and exemptions.

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