Omanization is an Omani government policy that was implemented with the goal of substituting foreign employees with skilled Omani citizens. Although Oman and numerous other Gulf states depend significantly on foreign employees, initiatives to nationalize workforces in order to combat growing unemployment rates have intensified in recent years.
The decision by Oman’s Ministry of Labour to retain several job positions for its citizens while limiting access to foreign workers advances the ordinances of Omanization scheme that is in line with Oman Vision 2040.
As Oman continues its Omanization scheme of substituting foreign workers with locals, the Ministry of Labour (MoL) has stepped up the policy of training and equipping citizens with additional skills. The move is intended to address unemployment while also supporting the economy, which has been weakened by the COVID-19 crisis.
Oman Vision 2040
Oman Vision 2040 is Oman’s entry point to overcoming obstacles, matching up with local and international changes, creating and seizing opportunities to promote economic competitiveness and social well-being, promoting growth, and instilling credibility in all socioeconomic and developmental relations across the country.
Effects Of Omanization
The Ministry of Labour in July announced that 23,271 people were recruited throughout the private and public sectors in the initial six months of 2022.
17,200 were employed directly or via replacement prospects, while 6,016 were recruited through training.
The Ministry of Labour hopes to create 35,000 jobs for nationals through recruitment, replacement, and training this year.
As part of the Fiscal Balance program, Oman laid the minimum wage for all Omani national workers to 325 Omani riyals. Also, the MOL announced the historic decision to decouple the minimum wage requirement from academic achievements.
Oman has developed a consistent strategy to provide employment opportunities for its people, which other nations can follow. Omanization will improve both the country's and its citizens’ economic standing. The government intends to improve the living conditions of its citizens by elevating the minimum pay and implementing Omanization.
ERC strives to strengthen the Oman nationals by identifying roadblocks to discovering skilled Omanis and mapping the talents with businesses. The Oman government’s proposition to replace public sector expats with nationals and create 35000 jobs by 2022 demonstrates the importance of the national workforce to the country’s growth.
The Challenges & the Solution
The imperative to grow the amount of Omani nationals operating in the private sector, as well as the need to raise foreign direct investment and thus create job opportunities for Omanis, have been dual discussion factors in the public and private sector business communities.
The recent rise in oil prices and the resulting dearth of cash flow in the economy have refocused attention on these issues. There is a growing consensus between private sector employees of Omani as well as foreign-owned businesses that institutional laws and procedures are impeding their best attempts to address the situation.
If an employer applies for an employment clearance and work visa for a recommended foreign worker, he or she will almost always be encountered with the administrative supposition that he or she is not considered for the same unless proven otherwise.
The whole process usually entails repeated consultations with the Ministry of Manpower, as well as a sequence of disheartening clerical obstacles that waste time and money. Attempting to negotiate this administrative labyrinth applies evenly to Omani-owned and foreign-owned businesses.
This is where any business would require the help of a proficient recruitment agency such as ERC.
ERC believes that the effectiveness of its Omanization strategy is dependent on a structured, comprehensive, and holistic framework carried out with a positive outlook on every part of the recruitment process.
As a result, ERC has put a lot of effort into gathering a database of approximately 40,000 Omanis from diverse fields and educational backgrounds in a bid to assist clients and corporate entities through the government’s Omanization scheme.