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Oman Mandates Firms to Hire Nationals

Oman mandates firms to hire nationals as part of new efforts to correct labour market imbalance and support sustainable employment. The Ministry of Labour announced the policy in response to public debate and growing concern over job opportunities for citizens. Officials clarified the move following widespread discussion on social media.

The new regulation applies to companies and institutions that have completed one full year of business operations. These entities must now appoint at least one Omani employee. The ministry designed the rule to strengthen Omanisation without placing undue strain on new businesses. Officials said the timing of enforcement reflects a balanced approach.

Although the decision sparked online controversy, the Ministry of Labour defended the measure as both practical and necessary. They stressed the urgency of addressing gaps between foreign labour reliance and citizen employment. Oman mandates firms to hire nationals in order to stabilise workforce trends and support long-term development.

Ministry officials emphasised that many firms already employ Omanis voluntarily. However, others delay or avoid hiring locals, often citing cost concerns or training gaps. The government hopes this policy will change that trend. By enforcing minimal citizen recruitment, they aim to ensure local talent gains access to private sector roles.

Moreover, the ministry has paired the rule with incentives to ease the transition. These benefits include subsidies for training, streamlined administrative support, and potential tax relief for compliant firms. Authorities want businesses to view the decision as an investment in growth, not a burden. They believe that stronger local participation leads to higher workplace stability.

Oman mandates firms to hire nationals also to tackle long-standing complaints from job-seekers. Many young graduates express frustration over limited openings in key industries. The private sector continues to rely heavily on expatriate labour, especially in retail, construction, and services. The new rule could shift hiring practices over time.

Critics argue that mandatory hiring may discourage small business growth. They worry that new firms might face extra pressure after their first year. However, the Ministry of Labour insists that exceptions can be granted in special cases. Authorities will review appeals from businesses unable to meet the requirement due to economic hardship.

In recent years, Oman has steadily expanded its Omanisation policies. The government views job localisation as essential to long-term economic health. By increasing the number of Omani workers, officials aim to reduce unemployment, build human capital, and strengthen national resilience. This new regulation is another step in that direction.

The labour ministry also plans to monitor compliance closely. Inspectors will review employment records and conduct periodic evaluations. Firms that fail to meet the hiring target may face penalties or lose access to government services. Meanwhile, successful companies could receive public recognition and enhanced business support.

As Oman mandates firms to hire nationals, the policy signals a more assertive stance on economic reform. The move aligns with broader Vision 2040 goals that emphasise diversification, sustainability, and social inclusion. Officials hope the rule creates better opportunities for citizens while preserving business competitiveness.

Looking ahead, the ministry will continue dialogue with stakeholders to refine the policy. Business leaders, trade unions, and educators will help shape long-term strategies for workforce development. By promoting collaboration, the government aims to balance national priorities with private sector realities.

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