The Oman Ministry of Labour (MoL) has recently announced it will be issuing a series of upcoming decisions as part of its ongoing commitment to enhance employment opportunities for Omani nationals in the private sector. The decisions will be aimed at regulating the labour market in Oman.

The upcoming decisions are stated to take effect in September 2024 and intend to address the following:

• Ensuring compliance with Omanisation rates in the private sector by restricting all government units and companies in Oman from contracting with private sector establishments that have failed to comply with their prescribed Omanisation targets. In implementing this restriction, all private sector establishments will be required to obtain an electronic certificate of compliance from the MoL confirming compliance with employment requirements, including their Omanisation targets as prescribed by the government.
• Increasing the professions and positions reserved for Omani nationals by (a) adding more than 30 professions to the list of Omanised professions; and (b) requiring private sector establishments to employ at least one Omani in certain professions and occupations, as will be specified in the upcoming decisions to be issued by the MoL.
• Establishing a financial plan to support the MoL's initiatives for increasing employment of Omanis in the private sector.
• Reviewing the fees charged for work permits and including incentives for complying with Omanisation rates and increasing the penalties on those that do not.
• Increasing the MoL's monitoring and inspecting practices to ensure the private sector companies' compliance with the conditions regulating the labour market in Oman.

The MoL has said that it will be providing further clarification on the decisions it intends to issue before they come into effect in September 2024. In the meantime, it is important for businesses in the private sector to adopt a proactive approach and assess their compliance with their Omanisation obligations. Failure to comply with such obligations could restrict dealings with government units and companies in Oman and may expose businesses to fines.