Oman Expat Recruitment Rules and Recent Restrictions

Generally, labour-related matters in Oman, including recruitment and regulation of the expat recruitment process, are governed by Sultani Decree No. 35/2003 on the Promulgation of the Labour Law (the "Labour Law"). More recently, following the issuance of the Ministerial Decision No. 38/2018 by the Minister of Manpower (the "Ministry of Manpower"), a six-month ban on hiring expat workers was imposed across 87 positions on 28 January 2018. This was done to regulate the Oman Labour market, create more job opportunities for the Omani citizens and integrate them within the workforce, and reinforce the "Omani First" agenda of the Government of Oman, which is already evident in the restrictive provisions provided in the Labour Law.

As it currently stands, expatriates account for 39% of the 3.3 million population in Oman and represent 90% of the private sector workforce. As such, there has been an extension of the regulation of expatriates with the issuance of three Decisions from the Minister of Manpower, namely Ministerial Decision No. 487/2018, Ministerial Decision No. 488/2018 and Ministerial Decision No. 489/2018. Since the six-month implementation of these Ministerial Decisions, 32 000 Omanis have been employed, in line with the Government's Omanisation policy.

Commencement of Controlling the Recruitment of Non-Omani's

Article 18 of the Labour Law states that an employer is prohibited from hiring non-Omani workers unless the employee has obtained a permit from the Ministry of Manpower. Article 18 further provides that the employer must comply with the following requirements before the employer may obtain a permit from the Ministry of Manpower for a foreign employee:

i. evidence that no Omani is available for the position for which the employer is seeking a work permit; ii. the employer has complied with the Omanisation percentages prescribed by the Ministry of Manpower; and

iii. the prescribed fees have been paid.

In addition to the above conditions, a foreign employee may not work in Oman before obtaining a labour card, the Civil Status ID Card the issuance of which is based on the following conditions:

i. the expatriate has professional competence or a technical skill or qualif‌ication that is required in the Oman Labour market;

ii. the expatriate has entered the country in a lawful manner and satisf‌ies the conditions set out in the foreign residence law (such as valid passport, visa, and sponsorship);

iii. the expatriate is medically...

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