The Sultanate of Oman is shaking up how companies hire foreign workers by introducing a tiered fee structure for expatriate work permits that directly ties costs to compliance with national employment targets known as Omanisation. The move, announced this week by the Ministry of Labour, rewards firms that meet or exceed local hire quotas with steep fee discounts, while punishing those lagging behind by doubling their permit fees. This approach, part of wider labour reforms aimed at creating more job opportunities for Omani citizens, reflects a growing regional trend toward tightening rules on foreign labour and elevating the role of national workforces.
Under the new system, compliant companies in the “Green Category”, those that hit Omanisation benchmarks, will enjoy a 30 percent discount on expatriate work permit and practice licence fees. In contrast, non-compliant employers who fail to bring enough locals into their ranks will pay double the usual fee for the same permits, making it significantly more costly to hire foreign talent. Omanisation quotas vary by sector and company size, but the underlying message is clear: make room for Omani workers, or pay a steep price.
