Muscat | May 5, 2025 — In a concerning revelation for Oman’s ongoing efforts to nationalize its workforce, new data from the Ministry of Labour shows that more than 245,000 private sector establishments in the country do not employ a single Omani citizen.
The report, covering the employment landscape as of the first quarter of 2025, highlights persistent gaps in the integration of Omani nationals into the private sector a key objective of the Sultanate’s long-standing Omanisation policy.
According to the data, there are approximately 392,000 registered private sector establishments in Oman. Of these, 62.5% over 245,000 companies have no Omani employees at all. Many of these are micro and small-scale enterprises, particularly in sectors such as construction, retail, maintenance, and domestic services, where expatriate labor continues to dominate.
The statistics raise critical questions about the effectiveness of current Omanisation strategies, which aim to reduce reliance on foreign labor and boost employment opportunities for Omani citizens. While significant progress has been made in sectors like banking, telecommunications, and oil and gas, the private sector at large remains heavily skewed toward expatriate employment.
Labour experts say that the dominance of expatriate workers in these sectors is driven by several factors, including lower wage expectations, flexible labor regulations, and a skill experience mismatch between job roles and the available Omani workforce.
In response to the data, an official from the Ministry of Labour stated that new compliance measures and incentive programs are under review to encourage small and medium-sized enterprises (SMEs) to hire more local talent. These measures may include subsidies for Omani employee salaries, streamlined training programs, and stricter penalties for non-compliance with Omanisation quotas in designated sectors.
“The goal is not just employment — it’s sustainable employment that aligns with the national development vision,” the official said, referring to Oman Vision 2040, the country’s long-term strategy for economic diversification and human capital development.
Despite the government’s push, many small business owners cite challenges in hiring Omani workers, including higher wage demands, perceived lack of motivation, or unwillingness to take on certain labor-intensive jobs. Others argue that the cost of compliance for small establishments could threaten their survival without financial support.
