Omanisation in Oman: Rules for Foreign-Owned Companies

Omanisation is not one fixed hiring percentage for every business in Oman. A foreign-owned company may need to satisfy three separate controls: the minimum Omani employee requirement, the Omanisation ratio applicable to its sector or occupations, and restrictions that reserve particular jobs for Omani nationals.

For an establishment created by a foreign investor, the current foreign investment rules add a specific requirement: after one year from the start of commercial activity, the establishment must employ at least one Omani and register that employee with the Social Protection Fund. Hiring that one employee does not replace any higher Omanisation requirement that may apply.

At a glance

• There is no single Omanisation percentage that applies to every company.
• A foreign-investment establishment must employ at least one Omani after one year from the start of commercial activity.
• The Omani employee must be registered with the Social Protection Fund.
• Omanisation status can affect eligibility and cost when applying for non-Omani work permits.
• Some occupations are reserved for Omanis regardless of the employer's overall Omanisation performance.
• The applicable position should be checked against the company's activity, workforce, occupations and location.

What does Omanisation mean for a company?

Omanisation is the statutory framework for increasing Omani participation in private-sector employment and replacing expatriate labour in specified occupations where required. The Oman Labour Law provisions require employers to employ Omanis and allow the Minister of Labour to set ratios by economic sector, activity, occupation and the availability of Omani workers.

This is why a percentage quoted for one industry cannot safely be applied to another. The legal position depends on the employer's actual activity and the jobs recorded for its workforce, not simply on whether the company is locally or foreign owned.

Three separate compliance tests

The first test is the one-Omani rule for foreign investment establishments. Under Decision 411/2025, a company or establishment created by a foreign investor must employ at least one Omani after one year from commencement of commercial activity.

The second test is the relevant Omanisation ratio. The one-Omani rule is an additional minimum and does not cancel a sector, activity or occupational quota that requires a larger Omani workforce.