Oman mandates foreign companies to hire at least one Omani national

Oman has introduced a significant new employment mandate that requires all foreign-owned companies to employ a minimum of one Omani citizen. This new obligation is established under Ministerial Decision No. 411/2025, which amends the executive regulations of the Foreign Capital Investment Law by introducing Article (12) bis. The measure is part of Oman’s wider strategy to boost national employment and better integrate its citizens into the private sector workforce8.

Details of the new Omani hiring requirement

The new legislation applies to foreign-owned establishments and companies operating in the Sultanate.

• New companies: Foreign companies starting operations in Oman must hire at least one Omani national within their first year of operation.
• Existing companies: Foreign businesses that have already been operating for more than a year must comply with the new rule within six months of the regulation’s enforcement.
• Compliance trigger: For existing companies, compliance is required upon the earliest of three events: renewal of commercial registration, issuance of a new work permit, or renewal of an existing permit.
• Registration requirement: The hired Omani employee must be officially registered with the Social Protection Fund to meet the compliance standards.
• National employment goal: The regulation aims to enhance the participation of Omani talent in the private sector and reinforces adherence to the broader “Omanisation” efforts.

What this means for skilled workers

This new requirement presents a direct benefit for Omani job seekers, particularly those with the skills needed by foreign-owned companies.

• Increased opportunities: Omani citizens will see an immediate increase in job opportunities within foreign companies, promoting their integration into the private sector workforce.
• Social protection: The mandatory registration of the Omani employee with the Social Protection Fund ensures they are covered by Oman’s social security provisions.

What it means for employers

For foreign-owned companies in Oman, this new rule creates a mandatory compliance step that requires prompt action for both new market entrants and established businesses.

• Compliance is crucial: Foreign businesses must proactively recruit, hire, and officially register at least one Omani national to avoid non-compliance risks and potential penalties.
• Accelerated hiring timeline: New companies must integrate this hiring process into their first year of operation, while existing businesses face a strict six-month deadline triggered by permit renewals.
• Navigating local laws: This mandate is an addition to Oman’s existing labor laws, which can be complex for foreign companies to navigate, especially regarding employment contracts, payroll, and benefits administration.

A global hiring partner using an Employer of Record (EOR) solution, like Multiplier, can help foreign companies manage this specific compliance requirement seamlessly.

• Hiring without an entity: An EOR allows a foreign company to quickly and compliantly hire an Omani national without the delays and costs associated with establishing their own local legal entity in Oman..
• Guaranteed compliance: The EOR handles the legal employment, managing the Omani employee’s payroll, benefits, and the mandatory registration with the Social Protection Fund, ensuring full adherence to Ministerial Decision No. 411/2025 and other local labor laws.
• Focus on core business: By leveraging Multiplier’s EOR, foreign employers can meet this new hiring mandate and focus on their commercial operations, leaving the complex local HR and compliance administration to the experts.

Conclusion

Oman’s Ministerial Decision No. 411/2025 introduces a clear and mandatory step for all foreign-owned companies to promote national employment by hiring at least one Omani citizen. This move reinforces the country’s Omanisation goals.

For foreign companies seeking to expand or operate compliantly in the Sultanate, a reliable Employer of Record (EOR) solution is essential for meeting this new requirement and simplifying the complexities of local payroll and labor law adherence. Book a demo today.

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