Oman Unveils Strict New Expat Recruitment Rules for 2027
Oman is set to implement a sweeping overhaul of how non-Omani workers are recruited within the Sultanate. Under new regulations designed to curb exploitation and support national Omanisation goals, recruitment agencies will face stricter financial obligations and management restrictions starting next year.
The Ministry of Labour issued Ministerial Decision No. 390/2026 on October 11, 2026, outlining the new framework. While existing recruitment licenses will remain valid until they expire, all subsequent renewals must strictly adhere to these updated mandates, which officially take effect on January 1, 2027.
Financial Guarantees and Ownership Shifts
One of the most significant changes involves the financial accountability of recruitment agencies. To ensure contractual compliance, all agencies are now required to deposit a financial guarantee of RO 5,000 (approximately USD 13,000) with the Ministry of Labour.
Furthermore, the ownership and leadership of these agencies are being restructured to empower local citizens. The new rules mandate that:
- Business ownership and management are restricted exclusively to Omani nationals.
- Omani owners must be actively involved in the daily operations of the business.
- Owners must be officially registered with the Small and Medium Enterprises Development Authority.
Agencies looking to expand will be permitted to establish branches after one year of successful operation, provided they appoint a dedicated Omani manager.
Enhanced Protections for Migrant Workers
The new decision, issued by Labour Minister Dr. Mahad bin Said bin Ali Baawain, places a heavy emphasis on protecting the rights of foreign workers, particularly those from nations such as India, Pakistan, Bangladesh, the Philippines, and Nepal.
To prevent the common issue of exploitation, the Ministry has introduced several mandatory safeguards:
- Zero Recruitment Fees: Agencies are strictly prohibited from charging any recruitment fees to the workers themselves.
- Strict Timelines: The entire recruitment process must be completed within a maximum of 45 days.
- Service Guarantees: Agencies must provide a two-year service guarantee to ensure stability for the employee.
- Transparency in Offers: Before any recruitment occurs, agencies must present detailed job offers that clearly outline the salary and the specific nature of the work.
- Standardized Contracts: All employment must utilize mandatory, ministry-approved standardized contracts.
- Living Standards: Agencies are now responsible for providing suitable accommodation for the workers they recruit.
Licensing and Ministry Oversight
To maintain high standards across the industry, the Ministry of Labour will implement rigorous monitoring through a dedicated register of all licensed offices. This will allow the government to track performance and enforce compliance effectively.
The cost of licensing has also been updated. Agencies will now pay a fee of RO 300 for a two-year period. Additionally, the Ministry has set a limit of 25 for temporary licenses. These measures are part of a broader effort to align the labour market with the Omanisation strategy and the national Social Protection Law.