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One work licence, two very different prices

Two companies in Muscat apply for the same first-class work licence on the same day. One pays about OMR 211 and the other pays about OMR 602, and the only difference between them is their Omanisation record.

That gap is new, and it comes from Ministerial Decision 602/2025, which took effect on 15 February 2026. Your quota record now sets the price of every foreign hire and every renewal, not just the risk of a fine. This guide explains where the rules come from, how quotas work, which jobs are closed to foreign staff, and what it costs to fall short.

What changed on 15 February 2026

Ministerial Decision 602/2025 was issued on 22 October 2025 and published in the Official Gazette on 26 October 2025. It was due to start three months later, but Ministerial Decision 44/2026 moved the start date to 15 February 2026, and it replaced the old fee rules from 2016.

The base fees. A work licence costs OMR 301 for first-class jobs, OMR 251 for second-class jobs and OMR 201 for third-class jobs. Each licence now runs for 24 months, up from 15 months under the old rules.

The discount. Article 8 cuts these fees by 30 per cent for an employer that meets its required rate of Omanis, which brings a first-class licence down from OMR 301 to about OMR 211.

The penalty. The same article doubles the fees for an employer that does not meet its rate, so the first-class licence then costs about OMR 602.

The exception. Licences for the investor class of jobs are outside this rule, so they are neither cut nor doubled.

The Oman News Agency's report on the new licence rules describes the 30 per cent cut and the doubled fees as an incentive to hire Omanis. For a firm with ten first-class expatriate staff, the swing is close to OMR 3,900 over one 24-month licence cycle.

Where the Omanisation duty comes from

The legal base is the Labour Law issued by Royal Decree 53/2023. Several of its articles work together.

Article 23. The employer must employ Omanis, and the Minister of Labour sets the required rate for each sector, activity and job. The same article lets the Minister name jobs in which Omanis must replace foreign staff.

Article 24. An employer with 40 or more workers must employ qualified Omanis with disabilities, up to a rate set by the Minister.

Article 27. A company cannot recruit foreign workers without Ministry approval, and one condition is that it keeps to its approved Omanisation plan and the set rates.

Article 29. An employer must not place a foreign worker in a job that is kept for Omanis.

In short, this is not a separate scheme you can opt into, because it is built into the same approvals you need to hire anyone from abroad.

How your Omanisation quota is set

There is no single national rate that applies to every company. The law leaves the figure to the Minister's decisions, which work by sector, activity and job, so a trading firm and a building contractor can face different targets with the same headcount.

This is why figures shared on social media or in old articles are risky. Your quota depends on the activities in your commercial registration and the jobs on your payroll, so check the rate for your company in the Ministry of Labour's system before you plan a hiring round.

Your activities matter from day one because they are chosen when you register the company, so read our guide to getting and renewing a commercial registration in Oman before you add or change them.

The one Omani rule for every company

Below the sector rates sits a floor that applies to all firms. On 5 May 2025 the Ministry of Labour announced the rules for its decision that every establishment which has completed one year since it was founded must employ at least one Omani. The Ministry said that more than 245,000 establishments had no Omani on the payroll at all.

The deadlines. A firm that passes its first year with no Omani must submit a hiring plan within one month of the Ministry's notice. Firms with 10 or more workers then have 3 months to make the hire, and firms with fewer than 10 workers have 6 months. An owner who runs the business full time gets one year.

Who counts. The same package lets self-employed Omanis and part-time Omani workers count toward the required rates, and a Ministry committee hears grievances and exceptional cases.

Foreign investors. Ministerial Decision 411/2025 of the Ministry of Commerce, Industry and Investment Promotion, in force from 6 October 2025, repeats the rule for companies founded by a foreign investor: hire at least one Omani after one year of trading and register that worker with the Social Protection Fund.

Jobs expatriates cannot hold

Some roles are closed to foreign workers altogether. Article 30 of the Labour Law lets the Minister list them, and the current list comes from Ministerial Decision 235/2022 as later amended.

Ministerial Decision 501/2024 added 39 jobs to that list in September 2024. They include hotel reception manager, lifeguard, travel agent, quality control manager, marketing specialist, sales representative, forklift driver, and new and used vehicle sellers.

The IT roles were phased in, starting with systems analysts and network specialists from 1 January 2025. Computer programmers, computer engineers and computer operators followed from 1 January 2026, and website designers and operations analysts are closed to foreign staff from 1 January 2027.

If a job title is on this list, no quota level will get a foreign hire approved for it, so check the title before you write the offer letter.

The cost of missing your quota

Falling short of your quota now costs money in four separate ways, and they add up quickly.

Doubled licence fees. Every new licence and every renewal costs twice the base fee for as long as you are below your rate.

Fines under Article 144. The fine is OMR 500 to OMR 1,000 for each Omani you should have hired or used as a replacement. You then have 6 months from the date the breach is found to reach your percentage, and the fine doubles if it happens again.

Blocked hiring. Because Article 27 ties recruitment approval to your plan, a firm that falls short can struggle to get new foreign workers approved at all.

Lost flexibility. Ministerial Decision 730/2024 lets non-Omani workers move between companies for up to 6 months in a year, but both companies must meet their quota to use it.

Placing a foreign worker in a job kept for Omanis is treated more harshly, and under Article 143 it can mean 10 days to one month in prison, a fine of OMR 1,000 to OMR 2,000, or both, for each worker.

Practical ways to improve your Omanisation ratio

Plan replacements openly. Article 43 allows an employer to end a foreign worker's contract to carry out its Omanisation plan, if it appoints an Omani to the same job and gives notice.

Register Omani staff quickly. Article 25 requires the employer to send each new Omani's registration form within one month of hiring. Late registration is a breach in its own right: Article 147 fines it at OMR 500 to OMR 1,000 per worker.

Use part-time roles. Ministerial Decision 13/2025 allows part-time contracts for Omanis only, with at least 4 hours a day, no more than 25 hours a week, and at least OMR 3 an hour. The Ministry's May 2025 package counts part-time Omani staff toward your rate, so confirm how your firm's ratio is calculated in the Ministry system before you rely on them.

Budget the levy. The Social Protection Law adds 5 per cent of each licence fee for the job security fund, so a doubled fee also doubles that levy.

An Omanisation calendar for a new company

Before the first hire. Confirm your rate and check every planned job title against the reserved list, then work out how many Omanis you need to meet your quota from the start.

Within 30 days of any vacancy. Article 25 requires you to post new or vacant jobs electronically, with the gross wage and start date, within 30 days.

Every January. Article 19 requires a register of Omani staff, with jobs, wages and gender, plus the year's vacancies and your annual Omanisation and replacement plan.

Every 24 months. Each licence renewal is priced on your Omanisation position at that time, so check your ratio three months ahead. When the Minister of Labour discussed the regulation with the Shura Council on 8 July 2026, he said it gives firms a period to put their affairs in order and that early figures show more establishments meeting the hiring rules.

For how the licence fits with the visa and residence card, see our guide to the Oman work permit and employment visa.

Frequently Asked Questions

What is the Omanisation rate for my company?

There is no single figure, because the Minister sets it by sector, activity and job, and the rates change over time. Check the rate for your company in the Ministry of Labour's system.

How much more does a work licence cost if we miss our quota?

It costs double the base fee, so a first-class licence costs OMR 301 at base, about OMR 211 for a compliant firm and about OMR 602 for a firm below its quota.

What is the fine for not meeting Omanisation?

The fine is OMR 500 to OMR 1,000 for each Omani you should have employed, under Article 144 of the Labour Law. You have 6 months to fix it, and the fine doubles on repeat.

Can we hire an expatriate programmer in 2026?

Not under that job title. Computer programmers, computer engineers and computer operators have been reserved for Omanis since 1 January 2026 under Ministerial Decision 501/2024.

City Squares is an authorised agent of the Ministry of Commerce, Industry and Investment Promotion, based in Muscat. We help employers plan Omanisation, register staff and manage work licences through our post company formation services. Percentages and fees change by ministerial decision, so confirm the current figures with the Ministry of Labour before you commit to a hiring plan.