Muscat – The Ministry of Labour (MoL) has begun enforcing a directive requiring foreign investment firms in Oman to employ at least one Omani national, in line with efforts to regulate the labour market and boost local workforce participation.

The decision, issued on May 5 this year, applies to all commercial establishments operating in the sultanate for more than a year. Developed jointly with the Ministry of Commerce, Industry and Investment Promotion, the plan outlines conditions and deadlines for compliance.

Firms with at least one year since registration must submit an operational plan to hire an Omani within three months. This can be through direct hiring or a phased plan leading to recruitment. Companies that fail to comply will face a ban, with a three-month grace period from official notification to make adjustments.

Businesses with more than 10 staff must also submit an employment plan within three months and will be notified via the ministry’s digital system. Failure to comply will lead to an automatic freeze on new licences through the system.

Smaller establishments with fewer than 10 employees have six months to employ an Omani national. These will be reviewed to assess local value addition. If their contribution is verified, they may be temporarily exempted. Otherwise, a ban will be enforced through the same system.

Omani entrepreneurs and full-time local business owners have up to a year from notification to meet the requirement. They will undergo a case review within six months to measure their economic impact. Owners without a Riyada Card, the national SME ID, are urged to register with the Small and Medium Enterprises Development Authority to access exemptions and facilities.

‘The goal is to create a balanced business environment that supports national talent and ensures fair contribution by all economic players,’ the ministry said.

The measure is part of broader policies to advance Omanisation in the private sector by reducing reliance on expatriate workers and creating more jobs for citizens.