Oman Introduces Tiered Fee System for Expat Permit
New tiered work-permit fees reward firms meeting Omanisation goals and penalise non-compliance to promote local employment.
- Publish date: since 13 hour Reading time: two min read
In a significant policy shift aimed at accelerating local employment, the Sultanate of Oman’s Ministry of Labour has rolled out a tiered fee system for expatriate work permits and licenses, tying costs directly to firms’ Omanisation performance.
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Under the new structure, companies that meet or exceed their mandated Omanisation targets, a long-standing national objective to increase employment of Omani citizens in the private sector, will benefit from discounted fees on expatriate work permits and practice licences. Firms that fail to reach these targets will see their permit fees double, a penalty designed to make hiring and retaining local talent more attractive.
The revamped fee framework creates two distinct categories:
- Green Category (Compliant Firms):
Businesses that meet or exceed Omanisation quotas are eligible for a 30 % reduction in expatriate work permit and professional licence fees. - Non-Compliant Firms:
Companies lagging behind national employment requirements will face double the standard fees, increasing the cost of hiring expatriate workers and incentivising local hiring.
Officials say this dual approach, offering both a “carrot” and a “stick”, is intended to encourage private sector compliance while accelerating progress toward Omanisation goals as the country moves into late 2026.
Beyond fee adjustments, the Ministry’s updated framework also extends the validity of work practice licences for non-Omani workers from 15 to 24 months, aligning them more closely with standard residency permit durations.
In another move to reduce administrative hurdles, employers will now be able to upgrade an expatriate worker’s professional category on an existing licence by paying the fee difference, without needing to apply for a new permit, a change that officials say could streamline hiring and internal job realignments.
The Ministry of Labour emphasises that these strategic reforms are part of broader efforts to harmonise private sector workforce needs with national employment objectives and enhance opportunities for Omani nationals.
By rewarding organisations that invest in local hiring and making it more costly to rely predominantly on expatriate labour, authorities hope to see a marked shift in employment patterns, strengthen the local workforce and improve long-term labour market outcomes across sectors.
The new tiered fee system marks a notable step in Oman’s ongoing Omanisation journey, and analysts expect private sector compliance to accelerate as the policy takes effect. While firms recalibrate their hiring strategies, the government says it will continue monitoring its impact and make adjustments as needed to support labour market stability and economic growth.