Changes to Oman’s hiring laws may leave the sultanate with a skills shortage, experts said.
Oman's Ministry of Manpower on Monday ordered firms to reserve a host of jobs for Omanis in financial sectors such as accounting, auditing, brokerage, insurance, money exchange and property.
The contracts of expatriates who currently occupy these positions will not be renewed and new positions in these categories will be available only to Omanis, according to the ministry’s order.
Labour Minister Mahad Baouin said in comments carried by ONA, the state news agency, that the employment initiatives announced this month should provide up to 20,000 vacancies to Omanis.
The ministry also plans to house 80 per cent of the registered job applicants, Mr Baouin said.
It will encourage young Omanis to enrol in training programmes and acquire more skills, he said.
But market analysts expressed pessimism over the feasibility of such plans, warning of consequences for the small country's economy.
Oman’s rating in all international agencies’ reports has been in constant decline with a negative outlook in the past few years, owing to the fall in oil prices and the pandemic.
"We understand the need to employ Omanis, but there are certain steps that have to be made first," Loai Al Jashmi, a recruitment specialist, told The National.
“Some of these jobs are very specialised and we cannot just have expatriates go and vacate them all of a sudden. We need to recruit Omanis first and train them for such positions beforehand.”
The Omanisation drive started in 2000 as part of the country’s Vision 2020 economic initiative. A number of occupations were reserved for nationals at the time, but rapid negative global developments forced the government to retain its expatriate population.
“We now have another vision, the 2040, but this time with oil prices that are a fraction of what they were back when the 2020 vision was announced,” Mr Salim Al Qahtani, an economic analyst, said.
“The new Omanisation drive might work since we have thousands of graduates with no jobs. But there are challenges. Expatriates have wide and long experience, while our young graduates do not,” he said.
More than 80,000 Omani graduates are currently looking for jobs, according to Ministry of Manpower figures, while about 300,000 expatriates left Oman in 2020. Private companies have struggled to make ends meet owing to poor performance during the pandemic.
But young Omani graduates, who are eager to land their first job, support the decision of job reservations for them.
"It is the right thing to do and something that has to happen. Job reservations will make sure we get employment opportunities. I graduated since last summer but I am still searching," said Ali Al Siyabi, a business graduate from the Modern College of Business & Science.
“Let’s hope the authorities will not change their mind.”
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Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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FA Cup semi-finals
Saturday: Manchester United v Tottenham Hotspur, 8.15pm (UAE)
Sunday: Chelsea v Southampton, 6pm (UAE)
Matches on Bein Sports
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