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Setting Up a Company in Oman: Your Guide to Mastering Omanisation

Setting Up a Company in Oman: Your Guide to Mastering Omanisation

Setting up a company in Oman requires in-depth understanding of the country’s regulations to ensure legal adherence, avoid penalties, and streamline business activities. The Omanisation policy in Oman should be your starting point when familiarising yourself with the local hiring requirements and legal framework.

This guide offers you a simplified breakdown of Omanisation and where to get the top Omanisation and HR solutions in Oman, ultimately assisting you in setting up your company in Oman with efficiency and ease.

 

Understanding Omanisation: Meaning, Goals, and Targets

Below is a general overview of Omanisation to help you comply with local laws when starting a business in Oman.

  • What is Omanisation?

Omanisation is a localisation programme initiated by the Omani government in 1988 to increase the employment of Omani nationals in the private sector. This governmental policy was launched as a response to the growing influx of foreign labour, which had previously led to rising dependence on non-national employees.

  • Omanisation’s Goal

The main goal of Omanisation is to train and hire Omani nationals across various private fields, achieve set quotas, and leverage local workforce capabilities and skills in a wide range of sectors. To support this policy, the government has established numerous education establishments for training purposes.

It is worth noting that Omanisation aligns with Vision 2040, the national strategy for economic diversification and sustainable development, since it nurtures a competitive national workforce that plays an active role in shaping the country’s future and long-term developmental goals.

  • Scope of Omanisation: Fields and Targets

Omanisation focuses on specific fields to increase the local workforce participation, making certain jobs increasingly exclusive to Omani nationals. Put differently, not all areas of the private sector are equally impacted by Omanisation policies.

The impact of Omanisation on different sectors is shown through specific targets. These targets, which are under constant review, represent job quotas aimed at boosting national employment. Some examples include:

 

Sector

Omanisation Target

Timeline

Transport and Logistics

20%–50% starting in 2025, aiming for 100% by 2040

2025–2040

Communications and Information Technology

50%–100% by 2026

By 2026

Industrial Sector

Surpassed 2024 target by 5.5%

By the end of 2024

Banking

94.4% Omani Employees

By the end of 2021

Oil and Gas

88.1% Omani Employees

By the end of 2021

Insurance

81.9% Omani Employees

By the end of 2021

Hospitality (Hotels)

36.4% Oman Employees

By the end of 2021

Mining (Leadership Positions)

60% by 2024

By 2024

Fishing (Leadership Positions)

70% by 2024

By 2024

 

2025 Insights into Omanisation

Oman’s February 2025 labour figures show an increase in the number of nationals hired in the private sector, indicating that Omanisation efforts are paying off—boosting national employment in the private sector and supporting the development of a more stable and diversified economy.

As the local workforce expands in private-sector roles, there has been rapid growth in certain occupations, particularly in agriculture and technical fields. In other words, since its launch, Omanisation has resulted in economic shifts that reflect the growing reliance on the Omani workforce.

Optimising Omanisation: Practical Strategies for Foreign-Owned Companies in Oman – How Can Bondoni Help?

Omanisation remains a key national priority, and private sector companies can overcome its challenges through strategic action. By investing in upskilling and training programmes tailored to private sector needs, aligning workforce planning with future business growth, and addressing wage expectations, companies can enhance Omani workforce participation. Collaboration with government authorities is also vital to ensure compliance while supporting national development goals. At Bondoni, we help international companies in Oman implement effective Omanisation strategies that balance compliance, profitability, and long-term workforce sustainability.

Omanisation and HR Solutions with Bondoni for Business Setup in Oman

Bondoni is your trusted business-support partner, guiding you in setting up a company in Oman. It offers you Company Formation and Business Support Services, making business setup in Oman easier than ever before. Bondoni understands the importance of adhering to local regulations and therefore providing businesses with the top Omanisation and HR Solutions.

It is vital for all foreign-owned companies planning to establish themselves in Oman to comply with the Omanisation policy and required quota, and this is where investing in HR Solutions with Bondoni proves to be valuable. Bondoni helps businesses develop an Omanisation strategy that aligns with their establishment’s goals and stay updated on any changes to the Omanisation policy. Additionally, Bondoni helps you source and hire skilled Omanis and optimise different HR processes, ensuring your continuous growth.

Discover Bondoni’s Omanisation and HR Solutions now for more details.

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