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QUARTERLY BRIEFINGOCT 2026REF · WES-RES-OCT2026-08

Oman's Omanisation turn: the 2023 Labour Law, the 2024 contracting bar and Decision 411 of 2025.

The Sultanate has moved Omanisation from quota tables to enforcement infrastructure — a compliance certificate, a bar on government contracting, a floor for foreign investors, and a named schedule of reserved ICT professions.

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wesolutions Research
EXECUTIVE SUMMARY

Between 2023 and 2025 Oman rebuilt the machinery of Omanisation. The Labour Law issued by Royal Decree 53 of 2023 reset the legal base. In July 2024 the Ministry of Labour converted compliance into a contracting condition: government units and companies were barred from contracting with private entities that miss their Omanisation targets, verified through an electronic compliance certificate, with work-permit fee incentives and penalties attached. In October 2025, Ministerial Decision 411 added a floor for foreign investors — every foreign-owned company must employ at least one Omani within a year of registration. And for technology vendors specifically, the Ministry of Transport, Communications and Information Technology has named the professions: a 2025–2027 schedule reserves eight ICT roles for Omanis, alongside profession-level targets of 50 to 100 per cent by 2026 against a sector-wide 2024 goal of 31 per cent. This briefing sets out the instruments, the ICT schedule, and what the enforcement turn means for vendors and their government clients.

  1. 01

    The enforcement mechanism changed in July 2024: government administrative units and companies are prohibited from contracting with private-sector entities that fail to meet Omanisation targets, with compliance evidenced by an electronic certificate and reinforced through work-permit fee incentives and penalties 2. For a vendor, the Omanisation position is now a bid document.

  2. 02

    The legal base is the 2023 Labour Law (Royal Decree 53 of 2023), which replaced the 2003 law and anchors the Ministry of Labour's power to set and enforce Omanisation plans and rates 12.

  3. 03

    Foreign investors acquired a statutory floor in October 2025: Ministerial Decision 411 of 2025 added Article 12 bis to the Foreign Capital Investment Law's executive regulations, requiring every foreign-owned company to employ at least one Omani national within a year of registration — closing the zero-Omani structure outright 3.

  4. 04

    ICT professions are named, dated and scheduled: under the MTCIT's 2025–2027 programme, systems analyst, information systems network specialist and computer maintenance technician are reserved for Omanis from January 2025, with computer programmer, computer engineer and computer operator following in 2026; profession-level Omanisation targets run at 50–100% by 2026, within a sector whose 2024 target was 31%, rising on an annual path toward 100% for the targeted professions, with targets set to 2040 456.

  5. 05

    The constraint that binds is talent supply, not paperwork: the ministry's own 2025 target for IT-sector placements is 430 Omanis nationwide 7. A vendor that waits for enforcement to bite will compete for a shallow pool against every other late mover; the certificate is a pipeline problem wearing a compliance costume.

01

From quota tables to enforcement infrastructure

Oman has run sectoral Omanisation percentages for decades; what changed in 2023–2025 is the machinery around them. The sequence is deliberate. First, the legal base: the Labour Law promulgated by Royal Decree 53 of 2023 replaced the 2003 law and modernised the framework within which the Ministry of Labour sets Omanisation plans, approves rates and polices compliance 12. Second, the enforcement turn of July 2024: the Ministry of Labour introduced measures under which government administrative units and government companies are barred from contracting with private establishments that do not meet their Omanisation obligations, evidenced through an electronic Omanisation compliance certificate, with work-permit fee structures used as the incentive-and-penalty lever 2. Third, the investor floor of October 2025: Ministerial Decision 411 of 2025 amended the executive regulations of the Foreign Capital Investment Law (adding Article 12 bis) to require every foreign-owned company to employ at least one Omani within a year of its registration 3. Exhibit 1 places the instruments on one line.

EXHIBIT 1
Oman's Omanisation instruments, 2023–2040: timeline
DateInstrumentWhat it doesSource
25 Jul 2023Labour Law, Royal Decree 53 of 2023Replaces the 2003 Labour Law; anchors the Ministry of Labour's powers over Omanisation plans and rates12
Jul 2024Ministry of Labour measures (contracting bar)Government administrative units and companies prohibited from contracting with private entities that miss Omanisation targets; electronic Omanisation compliance certificate; work-permit fee incentives and penalties2
Jan 2025MTCIT reserved professions — first waveSystems analyst, information systems network specialist and computer maintenance technician reserved for Omanis (ICT); marine and ship-traffic controller roles in transport4
Oct 2025Ministerial Decision 411 of 2025 (Article 12 bis, FCIL executive regulations)Every foreign-owned company must employ at least one Omani national within one year of registration3
2026MTCIT reserved professions — second waveComputer programmer, computer engineer and computer operator reserved for Omanis; profession-level targets of 50–100% in the targeted ICT roles45
To 2040MTCIT annual trajectoryAnnual Omanisation targets set and reviewed, rising until the targeted professions reach 100%6
Sources: as cited.
02

The ICT schedule: named professions, dated reservations

For technology vendors, the operative instrument sits with the Ministry of Transport, Communications and Information Technology. Under a ministerial resolution implementing the 2025–2027 programme, 22 professions across transport, logistics, communications and information technology are being Omanised on a published schedule; eight of them are in the communications and IT sector 4. From January 2025, three roles are reserved for Omanis: systems analyst, information systems network specialist and computer maintenance technician. In 2026, three more follow: computer programmer, computer engineer and computer operator 4. The minister has framed the profession-level ambition as Omanisation of 50 to 100 per cent in the targeted communications-and-IT roles by 2026, within a sector whose overall 2024 Omanisation goal was 31 per cent, on an annual path that the ministry states will be raised until the targeted professions reach 100 per cent, with 2040 as the horizon 56. Exhibit 2 tabulates the schedule.

EXHIBIT 2
The MTCIT communications-and-IT Omanisation schedule and targets (status as of October 2026)
ItemDetailSource
Programme scope22 professions across transport, logistics, communications and IT, Omanised 2025–2027 under a ministerial resolution; 8 professions in the communications-and-IT sector4
Reserved from Jan 2025 (ICT)Systems analyst · information systems network specialist · computer maintenance technician4
Reserved from 2026 (ICT)Computer programmer · computer engineer · computer operator4
Profession-level targets50% to 100% Omanisation in the targeted communications-and-IT roles by 20265
Sector-level goal31% Omanisation in the communications-and-IT sector (2024 goal), with annual targets set to 2040 and raised until the targeted professions reach 100%6
Supply-side targets430 Omani IT placements targeted nationally for 2025 (236 placed in Q1); mandatory Omanisation quotas for consulting firms contracted by the ministry7
Sources: Oman Observer 4; GDN / Times of Oman reporting of the minister's statements 56; Muscat Daily and Zawya reporting of the 2025 employment drive 7. Six of the eight ICT professions are named in the press reporting; the full list sits in the ministerial resolution.

Two features of the design deserve attention. The reservations attach to named professions rather than to a sector-wide ratio — the constraint follows the job title, which makes it harder to meet than a sector percentage. And the ministry applies Omanisation conditions to its own supply chain, in the form of mandatory quotas for consulting firms it contracts 7 — the same procurement-as-checkpoint logic as the 2024 contracting bar, applied one level down.

03

The binding constraint is the talent pool

The arithmetic of supply frames everything above. The MTCIT's own 2025 employment drive targets 430 Omani placements in the IT sector for the year, with 236 achieved in the first quarter 7. Those are national figures. A vendor that needs, say, ten Omani ICT professionals to keep a government contract compliant is bidding for roughly 2% of the year's targeted national IT placements — and so is every competitor who deferred the problem. This is the practical meaning of the enforcement turn: the certificate can be obtained only by firms that invested in the pipeline before they needed it. Oman's broader readiness supports that investment: the Sultanate sits in the ITU's Tier-1 'role-modelling' cybersecurity cohort and scores 88.5 on Oxford Insights' Policy Capacity pillar, second in the GCC — institutional conditions under which trained Omani engineers have real careers to step into 8.

04

Implications

For vendors. Treat the compliance certificate as a standing tender asset: verify the entity's Omanisation position quarterly, not at bid time 2. Map the delivery organisation against the reserved-profession list — the January 2025 and 2026 reservations attach to job titles, so title hygiene in work permits and contracts determines exposure as much as headcount does 4. If operating through a foreign-owned entity, close the Article 12 bis requirement within the first year as a condition of doing business at all 3. And build the Omani pipeline against the 2026 and 2040 trajectory rather than today's floor: structured graduate intake from Sultan Qaboos University and the University of Technology and Applied Sciences, paired with senior engineers, is the only mechanism that scales to the published path 56.

For buyers. The contracting bar makes the vendor's compliance your compliance: require the electronic certificate in the tender pack and at each renewal, and ask for the vendor's reserved-profession mapping, not just its headline ratio 24. Sequence multi-year technology contracts so that the vendor's Omani-hiring plan is funded and dated inside the contract — because a vendor that loses its certificate mid-programme is a continuity risk the buyer now owns.

METHODOLOGY

Desk research completed 9 October 2026. The Labour Law and the 2024 contracting-bar measures are read through BSA Ahmad Bin Hezeem & Associates' July 2024 alert and DLA Piper's coverage of the Omani labour framework; Ministerial Decision 411 of 2025 through DLA Piper's 29 October 2025 alert; the MTCIT reserved-profession schedule and targets through Oman Observer, Gulf Daily News, Times of Oman, Muscat Daily and Zawya reporting of the ministry's announcements and the minister's statements. Where press reports name six of the eight ICT professions, the briefing says so rather than completing the list by inference.

LIMITATIONS
  • The ministerial resolution underlying the 22-profession schedule is reported in the Omani press; this briefing cites the reporting and does not reproduce the resolution's full text or number.
  • Sector and profession targets are set and reviewed annually by the ministries; figures are as stated by officials at the cited dates.
  • Work-permit fee amounts attached to the 2024 incentive-and-penalty structure vary by case and are not reproduced here.
  • The briefing covers national instruments; free-zone regimes may apply modified rules.
ENDNOTES
  1. 01Sultanate of Oman, Labour Law, Royal Decree 53 of 2023 (25 July 2023), replacing the Labour Law of 2003. https://decree.om/2023/rd20230053/
  2. 02BSA Ahmad Bin Hezeem & Associates, 'Oman Ministry of Labour's new regulations to boost Omanisation', 29 July 2024: prohibition on government administrative units and companies contracting with non-compliant private entities; electronic Omanisation compliance certificate; work-permit fee incentives and penalties. https://bsabh.com/oman-ministry-of-labours-new-regulations-to-boost-omanisation/
  3. 03DLA Piper, 'Oman requires foreign companies to hire at least one Omani national', 29 October 2025: Ministerial Decision 411 of 2025 adding Article 12 bis to the executive regulations of the Foreign Capital Investment Law; at least one Omani employee within a year of registration. https://knowledge.dlapiper.com/dlapiperknowledge/globalemploymentlatestdevelopments/2025/oman-requires-foreign-companies-to-hire-at-least-one-Omani-national
  4. 04Oman Observer, '22 professions in transport, IT sectors to be Omanised': Omanisation of 22 professions across transport, logistics, communications and IT between 2025 and 2027 under a ministerial resolution; eight ICT professions, with systems analyst, information systems network specialist and computer maintenance technician reserved from January 2025 and computer programmer, computer engineer and computer operator from 2026. https://www.omanobserver.om/article/1158585/business
  5. 05Gulf Daily News, reporting Minister of Transport, Communications and Information Technology Eng. Said bin Hamoud Al Ma'awali: jobs allocated entirely to Omanis from January 2025 to end-2027; communications-and-IT profession targets of 50% to 100% Omanisation by 2026; sector plans of 20% (transport and logistics) and 31% (communications and IT). https://www.gdnonline.com/Details/1317948
  6. 06Times of Oman, 'Several initiatives launched to enhance job opportunities in Oman': annual Omanisation targets set to 2040 and reviewed continuously; 2024 sector goals of 20% (transport and logistics) and 31% (communications and IT); percentages raised annually until the targeted professions reach 100%. https://timesofoman.com/article/147779-several-initiatives-launched-to-enhance-job-opportunities-in-oman
  7. 07Muscat Daily, 'Oman targets 5,380 jobs for citizens in key sectors in 2025' (14 April 2025), with corresponding Zawya syndication: 430 Omani IT placements targeted for 2025, 236 achieved in Q1; mandatory Omanisation quotas for consulting firms contracted by the ministry; 20% Omanisation requirement for supervisory roles in last-mile delivery. https://www.muscatdaily.com/2025/04/14/oman-targets-5380-jobs-for-citizens-in-key-sectors-in-2025
  8. 08International Telecommunication Union, Global Cybersecurity Index 2024 (Oman in Tier 1, 'role-modelling'); Oxford Insights, Government AI Readiness Index 2025 (Oman Policy Capacity 88.5). See the Gulf Sovereign AI Index 2026 in this library for the full treatment. https://www.itu.int/en/ITU-D/Cybersecurity/Pages/global-cybersecurity-index.aspx
ACRONYMS
FCIL
Foreign Capital Investment Law (Oman)
GCC
Gulf Cooperation Council
GDN
Gulf Daily News
ICT
Information and communications technology
IT
Information technology
ITU
International Telecommunication Union
MTCIT
Ministry of Transport, Communications and Information Technology (Oman)
ABOUT THIS REPORT

wesolutions Research. Desk-based analysis of Omani instruments as announced by the ministries and reported in tier-one law-firm alerts and Omani press; all figures carry an endnote.

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DATA

Every exhibit in this report can be downloaded as a CSV file, with its source line, for independent re-scoring.

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