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Labour Ministry urges shift to capability economy

Al Ghamari described a chain through which capital creates employment, jobs develop skills, skills lift productivity and higher productivity strengthens competitiveness.
Al Ghamari described a chain through which capital creates employment, jobs develop skills, skills lift productivity and higher productivity strengthens competitiveness.
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MUSCAT; The speed at which employers’ skills requirements are changing has emerged as a bigger labour-market challenge than unemployment, according to the Ministry of Labour, which has called on private companies to take a greater role in developing Omani talent.


Khalid bin Salim al Ghamari, Under-Secretary of the Ministry of Labour for Labour, outlined the ministry’s position at Oman Forum 2026, held under the theme “The Future of Growth: How the Private Sector Leads the Next Phase in a Changing World”.


His presentation, “People at the Heart of Growth: From an Opportunity Economy to a Capability Economy”, argued that investment alone was insufficient to generate sustainable economic growth.


Al Ghamari described a chain through which capital creates employment, jobs develop skills, skills lift productivity and higher productivity strengthens competitiveness.


He contrasted the traditional career path, in which people completed their education before entering the workforce, with a more flexible model involving continuous learning, skills development and career transitions.


“The future does not reward those who only possess knowledge, but those who possess the ability to renew it,” Al Ghamari said.


The ministry identified three instruments supporting the transition: employment-linked training, wage assistance for recruitment and wage support for replacing expatriate workers with Omanis.


Al Ghamari said the future challenge would centre on workforce readiness rather than simply the number of jobs available.


He identified green energy, logistics, advanced manufacturing, the digital economy and artificial intelligence as five sectors expected to drive growth in Oman and internationally.


These industries would require digital, technical, analytical, leadership and adaptability skills. Developing those capabilities could generate higher-value employment, improve productivity and strengthen the economy’s competitiveness.


Al Ghamari said employers must assume a larger role in building skills rather than viewing employees’ existing capabilities solely as inputs.


“In the new economy, companies do not consume skills; companies produce skills,” he said.


The most successful companies would be those that developed talent and provided employees with an environment in which to grow, rather than merely recruiting the most qualified workers, he added.


The ministry identified five areas for cooperation between the government and private companies: forecasting future skills requirements, delivering workplace training, supporting continuous learning, establishing career paths and converting skills into measurable economic value.


Under the proposed framework, the government would provide policies, regulations, incentives and governance. Private companies would develop economic capabilities through training and innovation, while education and training institutions would deliver qualifications, reskilling and lifelong learning.


Individuals would also be expected to take responsibility for their careers through continued learning, adaptation and personal development.


“Opportunities create possibilities, but capabilities are what create growth,” Al Ghamari said.


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