MUSCAT – Oman has revised its expat work permit rules, introducing a tiered fee structure that doubles work permit fees for firms failing to meet Omanisation targets while rewarding compliant companies with discounts.

Ammar bin Salem Al Saadi, Director General of Labour and official spokesperson for the Labour Sector at the Ministry of Labour, said the amendments to regulations governing work permits and professional practice licences are part of a broader policy package aimed at raising national employment rates and strengthening labour market governance.

Al Saadi said the move was a strategic measure to rebalance the market by aligning private sector workforce needs with the priority of employing Omani nationals.

Under the revised expat work permit framework, companies are classified into three categories based on compliance indicators, including Omanisation ratios and actual labour requirements.

Firms in the green category will receive a 30% discount on expat work permit fees. Companies falling within the yellow or red categories due to non-compliance with Omanisation benchmarks will face double work permit fees, reinforcing what officials described as a system combining incentives with discipline.

The classification applies at the company level rather than to individuals. The process has been integrated into the electronic licensing platform, enabling firms to automatically receive fee reductions once required Omanisation levels are achieved, without additional procedures.

Al Saadi said enterprises holding the “Riyada” card will receive special consideration, including facilitation in certain permits before the application of doubled fees. Their classification also supports their ability to move into the green category and benefit from the discount.

He said the objective of the reform extends beyond fee adjustments, aiming to build a sustainable labour market framework, reduce reliance on low-skilled expatriate labour, close gaps between licensed and actual workforce numbers, and strengthen the role of Omani nationals in the private sector.

Officials urged businesses to utilise ministry-backed programmes such as training linked to employment, wage subsidies and on-the-job qualification schemes to improve compliance and access the new incentives.

The updated expat work permit regime is expected to create broader opportunities for citizens while enhancing overall market competitiveness, Al Saadi said.