Oman to Mandate RO 5,000 Guarantee for Recruitment Agencies
The Ministry of Labour in Oman has announced a significant overhaul of the regulations governing recruitment agencies that hire non-Omani workers. Under the newly issued Ministerial Decision No. 390/2026, agencies will be required to adhere to stricter operational and financial standards to ensure greater transparency and protection for both employers and the expatriate workforce.
These new regulations are set to officially take effect on January 1, 2027. While existing agency licenses will remain valid until they expire, all subsequent renewals must comply with the updated mandates.
Strict Ownership and Management Requirements
A major component of the reform focuses on localizing the leadership of the recruitment sector. The new rules mandate that the owners, partners, and signatories of recruitment agencies must be Omani nationals. Furthermore, agencies are required to involve Omani nationals in full-time management roles to ensure local oversight and accountability.
To support business expansion under these rules, agencies are permitted to open new branches after one year of operation, provided that each branch is managed by an Omani national.
New Financial and Service Mandates
To ensure that only reliable and stable agencies operate within the Sultanate, the Ministry has introduced several stringent requirements:
- Financial Guarantee: Agencies must deposit a financial guarantee of RO 5,000 with the Ministry of Labour.
- Recruitment Timeline: The entire recruitment process must be completed within a maximum of 45 days.
- Service Guarantee: Agencies are required to provide a two-year service guarantee for their placements.
- Fee Prohibitions: The regulations strictly prohibit agencies from charging any recruitment fees to workers.
To ensure clarity in employment, all agencies must use unified, ministry-approved contracts and job offers. These documents must explicitly state the nature of the work and the specific salary being offered.
Transition Support and Worker Protections
Recognizing the impact of these changes, the government has introduced measures to assist agencies during the transition. The licensing fee will be reduced to RO 300 for a two-year period to facilitate compliance with the new framework.
The primary objective of this initiative is to cleanse the market of non-compliant operators and provide a more regulated recruitment channel. By tightening these controls, Oman aims to protect expatriate workers from various forms of exploitation, including debt bondage and the risks associated with mismatched job placements.