Many investors plan in this order: the idea, then the location, then the staff. In Oman, however, hiring is part of the decision from the start, because the number and type of employees are linked to Omanisation ratios and work permits, which in turn can affect cost and how fast you can start. In this guide we explain the basics as set by the Ministry of Labour and other official bodies.
What is Omanisation?
Omanisation is a government policy that aims to increase the employment of Omani citizens in the private sector. In practice it works in two ways: employment ratios for Omanis that vary by sector and activity, and occupations reserved for Omanis for which expatriate workers cannot be recruited. According to the Minister of Labour's briefing to the Shura Council, the Omanisation rate in the private sector stood at 15.5% of the total workforce as of October 2025.
The practical message: do not assume every role in your project can be filled by an expatriate. Check your activity's ratio and the list of reserved occupations before you build the payroll plan.
What is required of foreign-owned companies?
Ministerial Decision 411/2025 requires companies owned by foreign investors to employ at least one Omani citizen after one year of activity and register them with the Social Protection Fund, with a grace period for existing companies to comply. Non-compliant companies may have their transactions suspended. The details of the deadline and how it is counted should be checked against the decision text and with the Ministry of Labour.
Work permits for expatriate staff
A work permit is an approval issued by the Ministry of Labour to the employer to recruit an expatriate worker in a specific occupation. Under Ministerial Resolution 602/2025, the work permit is now valid for 24 months instead of 15. Key points of the resolution include:
- A 30% fee reduction for establishments that meet their Omanisation ratios.
- Double fees for establishments that do not comply.
- A fine for late renewal, capped at OMR 500 per worker.
- The option to move a worker to a higher occupation by paying only the fee difference.
In other words, complying with Omanisation lowers the cost of recruiting expatriates, and non-compliance raises it. This point should enter your numbers from the start.
Insurance and social protection
Omani employees are registered with the Social Protection Fund. Under the Fund's Decision No. 13/2026, mandatory sick leave and extraordinary leave insurance was extended to expatriate employees from July 2026. Ask about these obligations and include them in the cost of each role.
What to plan before signing a lease or hiring
A lease is usually required to obtain the municipal licence, and the activity licence comes before work permits. So signing a lease may seem like a natural first step. But before signing, answer these questions:
- How many employees does the project really need in the first year, and in which occupations?
- What is the Omanisation ratio for your activity, and which roles will Omanis fill?
- Are any occupations in your plan reserved for Omanis?
- What does each role cost, including salary, housing, insurance and fees?
- Does the site fit the number of staff and meet safety requirements?
- When will you hire your first Omani employee, and how will you find them?
Example: a small restaurant in Muscat
Suppose an investor plans a small restaurant that needs a head chef, two kitchen assistants, service staff, a cashier and a purchasing officer. Before signing the lease, the investor needs to know: which of these occupations can be filled by expatriates? Which are reserved for Omanis, or better filled by a citizen to meet the Omanisation ratio? And who will be the first Omani employee? The answers change the payroll cost and the opening date, and may change the size of the restaurant itself.
How to start looking for an Omani employee
Start early and do not wait for the end of the first year. Ask the Ministry of Labour about the training and employment programmes available for your activity, and reach out to colleges, universities and vocational training centres near your site. Write a clear job description: duties, working hours, salary and growth opportunities. An employee who understands the role from the start tends to stay longer and adds to the project, rather than being just a number to meet the ratio.
Common mistakes we see
- Signing a long lease before knowing how many staff you can recruit.
- Calculating salaries without housing, insurance and fees.
- Postponing the first Omani hire until the compliance deadline arrives.
- Relying on old information, since labour decisions are updated regularly.
The hiring plan is not a step after setup. It is part of studying the project itself.
We help you build a realistic hiring plan as part of studying your project, before the lease and before recruitment. Get in touch; the first consultation via WhatsApp is free.
Contact us nowMinistry of Labour: Ministerial Resolution 602/2025 on work permits (October 2025) Minister of Labour's briefing to the Shura Council on Omanisation, Oman Observer (January 2026) Ministry of Commerce, Industry and Investment Promotion: Decision 411/2025 amending the FCIL executive regulation (October 2025) Social Protection Fund: Decision 13/2026 (2026)