Muscat — The Majlis Ash’shura convened on Wednesday to discuss Ministerial Decision No. 602/2025 and its amendment under Decision No. 44/2026, which regulate work permits and licences in Oman’s labour market. The session was chaired by Shaikh Said bin Hamad al Saadi, Deputy Chairman of Majlis Ash’shura, and featured a presentation by Dr. Mahad bin Said Baowain, Minister of Labour.
Dr. Baowain outlined the aim of the regulations to enhance the labour market framework, improve compliance with national employment policies, and balance economic growth with labour market sustainability. The minister highlighted that the decisions are intended to help meet national employment targets, standardize private sector practices, and increase job opportunities for Omani nationals. Companies have been provided a grace period to comply with the updated regulations.
The Ministry of Labour has initiated a widespread media campaign to inform employers, investors, foreign workers, and recruitment agencies about the provisions and anticipated benefits of the new rules. Early data indicate a rise in the number of establishments adhering to the regulations and an ongoing influx of new businesses entering the labour market.
Council members raised a series of concerns regarding the economic and social repercussions of the decisions, particularly for self-employed individuals and small- and medium-sized enterprises (SMEs). They questioned whether the fees and penalties for failing to meet Omanisation requirements appropriately reflect the challenges faced by smaller businesses. The rationale behind regulating the recruitment of certain nationalities was also scrutinized, with members voicing concerns about potential increases in operating costs.
Discussions emphasized the importance of policies that support private sector growth, reduce production expenses, and safeguard the viability of SMEs, recognized as foundational to the broader economy. The session also addressed the role of the regulations in remedying labour market imbalances and preventing irregular employment practices. Participants deliberated on the impact of these measures on job-seekers, business costs, product pricing, and controls over foreign worker recruitment.
Questions were raised about the capacity of SMEs to meet the new requirements and how revenues generated from penalties or fees would be allocated to support national employment programs. The debate underscored the necessity of balancing regulatory enforcement with economic sustainability, ensuring alignment between sectoral demands and national employment goals. Members also called for an evaluation of the effectiveness of Omanisation-linked incentives and penalties and their influence on the competitiveness and attractiveness of Oman’s investment climate.