Oman introduced a new business law that targets foreign investors. Now, companies must hire Omani nationals within one year of operation. The Ministry of Commerce, Industry and Investment Promotion (MoCIIP) created this rule to support local employment.
Foreign investors must register their Omani employee with the General Authority for Social Insurance. This requirement supports the Ministry of Labour’s Omanisation policy. That policy focuses on placing more Omanis in private sector jobs.
Also, MoCIIP launched this rule as part of larger investment reforms. These reforms encourage businesses to hire Omani nationals and grow the local economy. In return, the government offers reduced registration fees to eligible foreign investors.
Moreover, MoCIIP announced these fee reductions on June 18, 2023. They used digital platforms to share the update. The commercial register now shows an alert reminding investors about the hiring deadline.
Therefore, Eng. Ammar bin Sulaiman Al Kharousi, Director at MoCIIP, explained the system. He said the government wants to improve the investment climate. The hiring requirement encourages companies to support local growth.
So, To enforce this rule, MoCIIP added transaction restrictions. Starting April 1, 2024, foreign companies that fail to hire Omani nationals cannot use the Oman Business Platform. However, the ministry allows a 30-day grace period to fix the issue.
Additionally, companies that fire their Omani employees must replace them. The hire Omani nationals system reactivates the hiring requirement automatically. This helps MoCIIP and the Ministry of Labour keep businesses accountable.
Oman also simplified business procedures. The country now allows 100% foreign ownership. Investors can access over 1,700 commercial and industrial sectors.
To make it easier to invest, the government canceled, merged, or reduced 836 services. These efforts show Oman’s dedication to reforming its business laws.
The government wants foreign businesses to succeed, but they must also support the local workforce. The message is clear: hire Omani nationals or lose business privileges.
In conclusion, by pushing companies to it, Oman improves its economy and creates real opportunities for its people.
