Regulatory update – Oman

At a glance:

• The rule is established under Ministerial Decision No. 411/2025, adding Article (12) bis to the Foreign Capital Investment Law’s executive regulations.
• The Omani employee must be registered with the Social Protection Fund to meet compliance.
• Existing foreign companies have six months to comply, triggered by renewal of commercial registration or any work permit activity.
• This initiative aims to promote national employment and support labor market integration.

Key details:

Oman’s Ministry of Commerce, Industry and Investment Promotion has announced new legislation requiring all foreign-owned companies to hire at least one Omani employee within their first year of operation.

For compliance purposes, the Omani employee must be officially registered with the Social Protection Fund. Existing foreign-owned businesses operating for more than a year will have a six-month transition period to meet the new rule. The countdown begins upon the renewal of commercial registration, issuance of a new work permit, or renewal of an existing permit whichever happens first.

This measure reflects Oman’s continued commitment to promote national employment in the private sector and strengthening workforce integration.