Omanisation rules: what the 2023 Labour Law requires of employers (2026)
Oman's 2023 Labour Law requires every private employer to employ Omanis. The Minister of Labour sets the Omanisation percentage for each sector, activity and profession and lists the jobs reserved for Omanis. Falling short costs a fine of OMR 500 to OMR 1,000 for each Omani who should have been employed, and employing a non-Omani in a reserved job is a criminal offence.
Omanisation for your Oman hires
- Roles checked against reserved list
- Omani staff register each January
- Annual Omanisation and replacement plan
Oman's 2023 Labour Law puts Omanisation at the centre of hiring
What happened
Royal Decree 53/2023, issued on 25 July 2023, replaced the 2003 Labour Law. Its chapter on employing Omanis requires every employer to employ Omanis, adds duties for employers of 25 or more workers, and fines employers for each Omani they fail to hire or substitute under their plan.
What it means for you
Every work permit request for an expatriate is tested against the employer's Omanisation plan and the set percentages. Check the current ministerial decisions for your sector and profession before you plan a hire.
Dates to know
- 25 July 2023Labour Law issued by Royal Decree 53/2023
- Each JanuaryOmani staff register and annual Omanisation plan updated with the Ministry
Source: Ministry of Labour, Sultanate of Oman. We check this page every week. Last checked .
Omanisation is Oman's policy of raising the share of Omani citizens in private sector jobs. The legal basis is the first chapter of Part Two of the Labour Law issued by Royal Decree 53/2023, on employing Omanis. The law itself sets the duties: employ Omanis, keep a register, file an annual Omanisation and replacement plan, and never place a non-Omani in a reserved job. The numbers, meaning the percentage of Omanis required in each sector, activity or profession and the list of reserved jobs, are set separately by decisions of the Minister of Labour and change over time.
What does Oman's Labour Law say about Omanisation?
Article 18 states that work is a right for Omanis, and non-Omanis may only work in Oman on the conditions the law sets. Article 23 obliges every employer to employ Omanis. It also requires equal treatment of all workers when the nature and conditions of the work are the same.
The chapter on employing Omanis runs from Article 18 to Article 26. The next chapter, on organising the work of non-Omanis, ties work permits for expatriates to the employer's Omanisation record.
How are Omanisation percentages set?
By decision of the Minister of Labour, not in the law itself. Article 23 lets the Minister set the percentage for each economic sector, activity and profession. The Minister takes account of conditions in the sector and how many qualified Omanis are available.
Because the percentages sit in ministerial decisions, they can change without a new law. We have not stated sector percentages on this page because we could not open the current decisions on an official site. Check the Ministry of Labour's current decisions for your sector before planning a team.
Which jobs are reserved for Omanis?
The jobs listed by decision of the Minister of Labour. Article 30 lets the Minister name the professions non-Omanis may not do. Article 29 bans employers from employing a non-Omani in any profession reserved for Omanis.
Article 23 also lets the Minister name the professions in which Omanis are to replace non-Omanis over time. The list is set by decision, so it can grow, and an employer must check it before hiring into a role.
What must every employer file?
A register of its Omani staff, kept at the workplace and updated on the Ministry's website each January. It must show the number of Omani workers with their occupations, wages and gender, expected vacancies for the year, and the annual Omanisation and replacement plan.
This is Article 19. Under Article 25 an employer must also post vacant or new jobs online, with the gross wage and start date, within 30 days of the vacancy arising. Within a month of hiring an Omani it must send the worker's registration form with the start date, wage and type of work.
What extra duties apply to employers with 25 or more workers?
Article 22 requires them to advertise jobs with their selection criteria, follow the Ministry's job classification and set wages and conditions. They must also train Omanis, provide performance appraisal and keep a plan to appoint and train Omanis for leadership roles.
The list also includes a suitable work environment and practical strategies to retain Omani staff. The Minister can change the 25-worker threshold with Council of Ministers approval. Employers with 40 or more workers must also employ qualified Omanis with disabilities, up to a percentage the Minister sets (Article 24).
How does Omanisation affect hiring expatriates?
An employer needs a Ministry licence to bring in a non-Omani worker. Article 27 grants it only if no Omani has the needed qualifications or skills and the employer is complying with its approved Omanisation plan and set percentages.
Article 43 lets an employer end a non-Omani worker's contract, after notice, to apply its Omanisation plan when it appoints an Omani to the same profession. When an employer shrinks or partly closes, it must not end the contract of an Omani worker who has the same competence and experience as a non-Omani colleague.
What are the penalties for missing Omanisation targets?
A fine of OMR 500 to OMR 1,000 for each Omani the employer should have hired or substituted, under Article 144. The employer must reach the set percentage within 6 months of the breach being found, and the fine doubles for a repeat.
Employing a non-Omani in a reserved job breaches Article 29. Under Article 143 that carries imprisonment of 10 days to one month, a fine of OMR 1,000 to OMR 2,000, or both, for each worker involved. The employer can also be barred from recruiting non-Omani workers for up to two years. The Minister may also suspend the Ministry's services to the employer (Article 149).
Key figures
| Detail | Value |
|---|---|
| Duty to employ Omanis | Work is a right for Omanis (Article 18), and every employer must employ Omanis (Article 23), treating all workers equally where the work is the same. (source) |
| Who sets the percentages | The Minister of Labour, by decision, for each sector, activity and profession. (source) |
| Reserved jobs | The Minister lists the professions non-Omanis may not do, and employing a non-Omani in one is prohibited. (source) |
| January register and plan | Register of Omani staff updated with the Ministry each January, with occupations, wages, gender, expected vacancies and the annual Omanisation and replacement plan. (source) |
| Employers of 25 or more | Must advertise jobs with selection criteria, train Omanis, provide appraisal and plan Omani appointments to leadership roles. (source) |
| Employers of 40 or more | Must employ qualified Omanis with disabilities, within a percentage the Minister sets. (source) |
| Vacancy reporting | Vacant or new jobs posted online with gross wage and start date within 30 days. (source) |
| Fine for missing the percentage | OMR 500 to OMR 1,000 for each Omani who should have been hired or substituted, with 6 months to comply after discovery, doubled for a repeat. (source) |
| Penalty for a non-Omani in a reserved job | Imprisonment of 10 days to one month and/or a fine of OMR 1,000 to OMR 2,000 per worker, and a ban on recruiting non-Omanis for up to two years. (source) |
Frequently asked questions
What is the Omanisation percentage for my sector?
It is set by decision of the Minister of Labour for each sector, activity and profession, not in the Labour Law. Check the Ministry of Labour's current decisions for your activity, as they change over time.
Can a foreign worker do a job reserved for Omanis?
No. Article 29 of the Labour Law prohibits employing a non-Omani in a profession reserved for Omanis, and Article 143 punishes it with imprisonment, a fine of OMR 1,000 to OMR 2,000 per worker, or both.
Does Omanisation apply to small employers?
Yes. The duty to employ Omanis and keep the January register applies to every employer. Extra duties start at 25 workers, and the duty to employ Omanis with disabilities starts at 40 workers.
Can an employer replace an expatriate with an Omani?
Yes. Article 43 lets the employer end a non-Omani worker's contract, after notice, to apply its Omanisation plan when it appoints an Omani to the same profession.
Each of the six Gulf states writes its own labour law, its own end-of-service rules and its own quota for hiring citizens. When Teamed is your legal employer, we apply the right rules for the country each person works in and update your contracts, policies and payroll as the law changes, so you never have to read a statute to stay compliant.
