The Ministry of Commerce, Industry & Investment Promotion (MoCIIP) announced that, with effect from 1 April, it would be mandatory for foreign investors to employ at least one Omani citizen within one year of initiating operations in Oman.
Oman is developing incentives for foreign investors, including tax and fee incentives, permissions to invest in several new industries, lower government fees, expanded land use, and increased access to capital for qualifying companies. Special incentives also exist for investors in industrial areas and economic zones, such as the city and port of Duqm – Oman’s premier infrastructure project, with an 800-square-mile free trade zone and logistics hub.
In February 2023, Oman’s Council of Ministers reduced commercial registration fees for foreign investors and exempted companies from insurance bond requirements while submitting bids for government tenders. As a result of this equalisation between foreign investors and Omani investors, however, has come the obligation for them to employ at least one Omani national.
From 1 April, MoCIIP will implement an administrative obligation on the Oman Business Platform that prohibits transactions for foreign investor companies that still need to comply with the employment requirement after one year of establishment. Companies will be given 30 days to rectify the position or will face notifications and monitoring by relevant government agencies.
It is also a requirement for the Omani employee to be registered with the Public Authority for Social Insurance (PASI).
“The latest Omanisation policy in Oman, reflects the wider regions drive to boosting employment levels of its citizens into the private sector, reducing the country’s reliance on the expatriate workforce, and creating employment opportunities for Omani nationals.” – Zana Jablan Musa, Operations Director at Sovereign Corporate Services – Dubai
