Oman labour policy and structural trends
Published: 03:04 PM,Apr 12,2025 | EDITED : 07:04 PM,Apr 12,2025
Oman’s latest labour data (February 2025) reflects notable structural shifts in the workforce. In particular, the distribution of Omani vs expatriate workers by sector and occupation has changed in ways that underscore the impact of Oman’s Omanization policies. There has been a modest rise in Omani employment in the private sector alongside a slight reduction in government jobs, signaling a deliberate policy drive to transition citizens into private employment. At the same time, certain occupations have seen sharp growth (e.g. agriculture and technical fields), revealing areas of expanding labour demand. These trends offer insight into the sultanate’s workforce development efforts and long-term economic planning.
Sectoral Shifts and Omanization Progress
One clear trend is the growth of Omani employment in the private sector coupled with a decline in government employment. According to official data, the number of Omani nationals working in private companies has increased by about 1.3%, whereas the number of Omanis in government jobs fell by roughly 1.3% (as of February 2025). This suggests that more Omanis are finding opportunities outside the public sector. In fact, as of late 2024 the private sector employed over 413,000 Omani workers compared to about 378,000 in the government . This crossover indicates progress toward a key Omanization goal: reducing reliance on public-sector employment for citizens. The policy of encouraging Omani talent into private businesses is gradually bearing fruit, with private firms now absorbing a growing share of the national workforce.
Meanwhile, the slight drop in government employment could be due to hiring freezes or natural attrition as the state aims to curb public payrolls and promote efficiency. These sectoral shifts align with Oman’s strategic vision to have a more balanced labour market. Notably, the overall expatriate workforce has been kept in check by design – Oman’s authorities have been regulating the foreign labour influx to prioritize Omani nationals in jobs. This is in line with the ambitious goals of Oman Vision 2040, which calls for empowering Omanis in the economy.
Omanization policies are central to understanding these changes. The slight uptick in Omani private-sector workers and reduction in expats across many sectors reflect ongoing efforts to replace expatriates with trained Omanis in various roles. For example, Oman has imposed quota targets for local hiring in many industries and even banned new expat work visas in certain professions to create vacancies for citizens. The data suggests these measures are slowly making an impact: private businesses are hiring more Omanis (even if the growth is gradual), and the state sector – traditionally a major employer of Omanis – is no longer growing as before. This policy-driven rebalancing is crucial for long-term sustainability, as it reduces dependence on foreign labour and ensures more jobs for Omani youth entering the market.
Occupational Trends and Workforce Development
Beyond the public-private sector split, the February 2025 statistics show sharp increases in specific occupational categories, pointing to structural changes in the economy. In particular, employment in “agriculture & fisheries” occupations jumped by about 10.0%, and the number of “scientific and technical technicians” rose by approximately 6.0%. These are significant spikes that outpace the overall labour growth rate. They suggest that certain fields are expanding rapidly, either due to economic diversification or targeted initiatives.
The agriculture and fisheries sector’s 10% growth stands out because agriculture has historically been a small employer in Oman’s economy (which is dominated by oil, services, and industry). A double-digit increase could indicate renewed emphasis on agricultural projects – possibly driven by food security goals and rural development programs. It might also reflect that previously understaffed farming activities (often reliant on expatriate labor) are scaling up. However, this surge raises questions for Omanization: are these new agriculture jobs being filled by Omanis or mostly by expatriate workers? Traditionally, Omanis have been less involved in manual farm work, so a rise in agricultural labour might imply an influx of foreign workers in that niche unless coupled with efforts to make farming attractive to locals. Policymakers would need to ensure that growth in agriculture does not undermine Omanization aims; one approach could be to encourage agritech and farm entrepreneurship among Omani youth so that locals lead the sector’s expansion.
Meanwhile, the 6% rise in scientific and technical technicians reflects growth in skilled roles, likely in sectors such as engineering, information technology, laboratories, and other technical services. This trend is positive for Oman’s knowledge-economy aspirations – an increasing number of technicians suggests the economy is creating more skilled jobs that require training and education. If a good portion of these technician roles are occupied by Omanis, it would indicate success in upskilling the national workforce. Indeed, Oman has invested in STEM education and vocational training programs to prepare young Omanis for technical careers. The data hint that these efforts are paying off, as demand increases for technicians in fields like engineering, IT, and scientific research. A 6% growth in such occupations is substantial, and to sustain it, Oman will need to continuously produce qualified graduates in technical disciplines. Workforce development initiatives – such as specialized training institutes, on-the-job training schemes, and partnerships with private companies – will be key to ensuring Omani job-seekers can fill these technical roles. This will reduce the need to import skilled expatriates and help meet Omanization targets in high-skill domains.
It’s also instructive to look at which sectors continue to rely heavily on expatriates despite these shifts. The construction industry, for instance, remains the single largest employer of expats (over 442,000 foreign workers as of late 2024). Other major sectors for expatriate work include wholesale/retail trade and manufacturing. These figures highlight that while Omanization is advancing in some areas, certain industries still depend on foreign labour due to the nature of the work or shortages of Omani workers. The challenge for policymakers is to extend the Omanization momentum to these sectors as well. That might involve improving working conditions and wages in industries like construction to attract Omani employees, or automating lower-skill tasks to reduce the number of manual workers needed. The sharp rise in technical jobs suggests the economy may be slowly moving towards higher-skilled activities, which could over time lessen the dominance of labour-intensive sectors.
Implications for Policy and Long-Term Planning
The observed labour trends carry several implications for Oman’s long-term economic planning. First, the increase of Omanis in the private sector (and parallel drop in public jobs) indicates that government policies are nudging the labour market in the right direction – toward a model where the private sector is the main engine of employment for citizens. This is critical for fiscal sustainability; Oman’s government wage bill can be contained if more Omanis find career paths in private enterprises rather than expecting government posts. For Oman’s youth, this shift means that acquiring skills needed by private businesses (from technical skills to soft skills) is more important than ever. Educational curricula and vocational programs will need continual alignment with industry needs to maintain this trend.
Second, the booming occupations like agriculture and technical roles suggest areas where the economy is growing or changing. For agriculture, Oman’s planners might see an opportunity to boost domestic food production and rural employment. They may introduce incentives for agribusiness, invest in modern irrigation and greenhouse farming, and promote farming as a viable profession for Omanis in certain regions. For scientific and technical fields, the implication is that Oman’s diversification into knowledge-based sectors (like renewable energy, advanced manufacturing, ICT, etc.) is gaining pace. Policies to support innovation, research and development, and technical education will reinforce this positive trend. The government could, for example, expand scholarships for engineering and science students, and encourage public-private partnerships in R&D to create more technical jobs for nationals.
From an Omanization policy perspective, the data indicates steady but modest progress, which means the policy will likely continue in force for years to come. Authorities will probably maintain or even tighten expatriate visa restrictions in occupations where Omanis are now capable and available – especially as more locals gain experience in the private sector. We have already seen measures like designated professions that are off-limits to expats (e.g. many administrative and clerical roles). If the current trends hold, one can expect these restrictions to extend to technical occupations in the future as Oman builds a cadre of local experts. Additionally, monitoring mechanisms are being used to enforce Omanization; for instance, labour inspectors ensure companies meet the required local hiring percentages and don’t employ foreigners in roles reserved for Omanis. This regulatory vigilance needs to persist to achieve long-term targets.
Finally, these labour trends tie into Oman’s broader economic development plans. Under Vision 2040, Oman aims for a diversified economy less dependent on oil, with a strong private sector and high levels of human capital. The uptick in Omani private employment and technical jobs is encouraging in this regard – it shows movement towards a diversified, knowledge-driven economy. However, the journey is far from complete. Oman must plan for sustainable job creation in emerging industries to absorb the thousands of new Omani graduates each year. Sectors like tourism, logistics, mining, fisheries, and technology are earmarked for growth and can be sources of new Omani employment if properly developed. The labour data helps identify where progress is being made (e.g. technical fields) and where more effort is needed (perhaps in managerial roles or trades still dominated by expats). Strategic initiatives, such as special economic zones, entrepreneurship programmes for Omanis, and foreign investment in non-oil sectors, will all play a role in shaping the labor market of the future.
Conclusion
In summary, Oman’s February 2025 labour figures reveal meaningful structural trends. The slight rise of Omanis in the private sector versus a decline in government jobs demonstrates that Omanization policies are slowly recalibrating the labour market towards greater citizen participation in private businesses. Certain occupations – notably in agriculture and technical fields – are experiencing rapid growth, reflecting shifts in economic activity and highlighting where the workforce is expanding. These changes bode well for Oman’s long-term goals of a sustainable, diversified economy led by skilled Omani talent. Yet, they also underscore the ongoing need for proactive policy support: continued training and upskilling of Omanis, incentives for sectors to hire locals, and balanced development to ensure no industry or skill area is left overly reliant on expatriates. Oman’s labour policy thus far has managed to encourage a more locally driven workforce; building on this foundation through thoughtful planning will be key to realizing the Sultanate’s vision of economic prosperity and self-reliance. (To be continued)
Caption:
The number of Omani nationals working in private companies has increased by about 1.3%,
Sectoral Shifts and Omanization Progress
One clear trend is the growth of Omani employment in the private sector coupled with a decline in government employment. According to official data, the number of Omani nationals working in private companies has increased by about 1.3%, whereas the number of Omanis in government jobs fell by roughly 1.3% (as of February 2025). This suggests that more Omanis are finding opportunities outside the public sector. In fact, as of late 2024 the private sector employed over 413,000 Omani workers compared to about 378,000 in the government . This crossover indicates progress toward a key Omanization goal: reducing reliance on public-sector employment for citizens. The policy of encouraging Omani talent into private businesses is gradually bearing fruit, with private firms now absorbing a growing share of the national workforce.
Meanwhile, the slight drop in government employment could be due to hiring freezes or natural attrition as the state aims to curb public payrolls and promote efficiency. These sectoral shifts align with Oman’s strategic vision to have a more balanced labour market. Notably, the overall expatriate workforce has been kept in check by design – Oman’s authorities have been regulating the foreign labour influx to prioritize Omani nationals in jobs. This is in line with the ambitious goals of Oman Vision 2040, which calls for empowering Omanis in the economy.
Omanization policies are central to understanding these changes. The slight uptick in Omani private-sector workers and reduction in expats across many sectors reflect ongoing efforts to replace expatriates with trained Omanis in various roles. For example, Oman has imposed quota targets for local hiring in many industries and even banned new expat work visas in certain professions to create vacancies for citizens. The data suggests these measures are slowly making an impact: private businesses are hiring more Omanis (even if the growth is gradual), and the state sector – traditionally a major employer of Omanis – is no longer growing as before. This policy-driven rebalancing is crucial for long-term sustainability, as it reduces dependence on foreign labour and ensures more jobs for Omani youth entering the market.
Occupational Trends and Workforce Development
Beyond the public-private sector split, the February 2025 statistics show sharp increases in specific occupational categories, pointing to structural changes in the economy. In particular, employment in “agriculture & fisheries” occupations jumped by about 10.0%, and the number of “scientific and technical technicians” rose by approximately 6.0%. These are significant spikes that outpace the overall labour growth rate. They suggest that certain fields are expanding rapidly, either due to economic diversification or targeted initiatives.
The agriculture and fisheries sector’s 10% growth stands out because agriculture has historically been a small employer in Oman’s economy (which is dominated by oil, services, and industry). A double-digit increase could indicate renewed emphasis on agricultural projects – possibly driven by food security goals and rural development programs. It might also reflect that previously understaffed farming activities (often reliant on expatriate labor) are scaling up. However, this surge raises questions for Omanization: are these new agriculture jobs being filled by Omanis or mostly by expatriate workers? Traditionally, Omanis have been less involved in manual farm work, so a rise in agricultural labour might imply an influx of foreign workers in that niche unless coupled with efforts to make farming attractive to locals. Policymakers would need to ensure that growth in agriculture does not undermine Omanization aims; one approach could be to encourage agritech and farm entrepreneurship among Omani youth so that locals lead the sector’s expansion.
Meanwhile, the 6% rise in scientific and technical technicians reflects growth in skilled roles, likely in sectors such as engineering, information technology, laboratories, and other technical services. This trend is positive for Oman’s knowledge-economy aspirations – an increasing number of technicians suggests the economy is creating more skilled jobs that require training and education. If a good portion of these technician roles are occupied by Omanis, it would indicate success in upskilling the national workforce. Indeed, Oman has invested in STEM education and vocational training programs to prepare young Omanis for technical careers. The data hint that these efforts are paying off, as demand increases for technicians in fields like engineering, IT, and scientific research. A 6% growth in such occupations is substantial, and to sustain it, Oman will need to continuously produce qualified graduates in technical disciplines. Workforce development initiatives – such as specialized training institutes, on-the-job training schemes, and partnerships with private companies – will be key to ensuring Omani job-seekers can fill these technical roles. This will reduce the need to import skilled expatriates and help meet Omanization targets in high-skill domains.
It’s also instructive to look at which sectors continue to rely heavily on expatriates despite these shifts. The construction industry, for instance, remains the single largest employer of expats (over 442,000 foreign workers as of late 2024). Other major sectors for expatriate work include wholesale/retail trade and manufacturing. These figures highlight that while Omanization is advancing in some areas, certain industries still depend on foreign labour due to the nature of the work or shortages of Omani workers. The challenge for policymakers is to extend the Omanization momentum to these sectors as well. That might involve improving working conditions and wages in industries like construction to attract Omani employees, or automating lower-skill tasks to reduce the number of manual workers needed. The sharp rise in technical jobs suggests the economy may be slowly moving towards higher-skilled activities, which could over time lessen the dominance of labour-intensive sectors.
Implications for Policy and Long-Term Planning
The observed labour trends carry several implications for Oman’s long-term economic planning. First, the increase of Omanis in the private sector (and parallel drop in public jobs) indicates that government policies are nudging the labour market in the right direction – toward a model where the private sector is the main engine of employment for citizens. This is critical for fiscal sustainability; Oman’s government wage bill can be contained if more Omanis find career paths in private enterprises rather than expecting government posts. For Oman’s youth, this shift means that acquiring skills needed by private businesses (from technical skills to soft skills) is more important than ever. Educational curricula and vocational programs will need continual alignment with industry needs to maintain this trend.
Second, the booming occupations like agriculture and technical roles suggest areas where the economy is growing or changing. For agriculture, Oman’s planners might see an opportunity to boost domestic food production and rural employment. They may introduce incentives for agribusiness, invest in modern irrigation and greenhouse farming, and promote farming as a viable profession for Omanis in certain regions. For scientific and technical fields, the implication is that Oman’s diversification into knowledge-based sectors (like renewable energy, advanced manufacturing, ICT, etc.) is gaining pace. Policies to support innovation, research and development, and technical education will reinforce this positive trend. The government could, for example, expand scholarships for engineering and science students, and encourage public-private partnerships in R&D to create more technical jobs for nationals.
From an Omanization policy perspective, the data indicates steady but modest progress, which means the policy will likely continue in force for years to come. Authorities will probably maintain or even tighten expatriate visa restrictions in occupations where Omanis are now capable and available – especially as more locals gain experience in the private sector. We have already seen measures like designated professions that are off-limits to expats (e.g. many administrative and clerical roles). If the current trends hold, one can expect these restrictions to extend to technical occupations in the future as Oman builds a cadre of local experts. Additionally, monitoring mechanisms are being used to enforce Omanization; for instance, labour inspectors ensure companies meet the required local hiring percentages and don’t employ foreigners in roles reserved for Omanis. This regulatory vigilance needs to persist to achieve long-term targets.
Finally, these labour trends tie into Oman’s broader economic development plans. Under Vision 2040, Oman aims for a diversified economy less dependent on oil, with a strong private sector and high levels of human capital. The uptick in Omani private employment and technical jobs is encouraging in this regard – it shows movement towards a diversified, knowledge-driven economy. However, the journey is far from complete. Oman must plan for sustainable job creation in emerging industries to absorb the thousands of new Omani graduates each year. Sectors like tourism, logistics, mining, fisheries, and technology are earmarked for growth and can be sources of new Omani employment if properly developed. The labour data helps identify where progress is being made (e.g. technical fields) and where more effort is needed (perhaps in managerial roles or trades still dominated by expats). Strategic initiatives, such as special economic zones, entrepreneurship programmes for Omanis, and foreign investment in non-oil sectors, will all play a role in shaping the labor market of the future.
Conclusion
In summary, Oman’s February 2025 labour figures reveal meaningful structural trends. The slight rise of Omanis in the private sector versus a decline in government jobs demonstrates that Omanization policies are slowly recalibrating the labour market towards greater citizen participation in private businesses. Certain occupations – notably in agriculture and technical fields – are experiencing rapid growth, reflecting shifts in economic activity and highlighting where the workforce is expanding. These changes bode well for Oman’s long-term goals of a sustainable, diversified economy led by skilled Omani talent. Yet, they also underscore the ongoing need for proactive policy support: continued training and upskilling of Omanis, incentives for sectors to hire locals, and balanced development to ensure no industry or skill area is left overly reliant on expatriates. Oman’s labour policy thus far has managed to encourage a more locally driven workforce; building on this foundation through thoughtful planning will be key to realizing the Sultanate’s vision of economic prosperity and self-reliance. (To be continued)
Caption:
The number of Omani nationals working in private companies has increased by about 1.3%,