Oman Unveils Strict New Rules for Expat Recruitment Agencies
The Sultanate of Oman is set to overhaul its expatriate recruitment sector with a sweeping new regulatory framework designed to protect the rights of both employers and workers. Under Ministerial Decision No. 390/2026, issued by the Minister of Labour, His Excellency Dr. Mahad bin Saeed bin Ali Baawain, the new mandates will officially take effect on January 1, 2027.
While agencies currently holding valid licenses may continue their operations until their existing permits expire, all subsequent renewals will be required to comply with the stringent new standards. The move aims to enhance service quality and ensure total transparency in the hiring process.
Strict Ownership and Financial Requirements
To ensure local oversight and accountability, the new law introduces several requirements regarding the ownership and management of recruitment offices. Moving forward, all recruitment activities must be conducted through Ministry of Labour-approved agencies. Key ownership mandates include:
- Omani Ownership: All owners, partners, and authorized signatories of recruitment agencies must be Omani nationals.
- Active Management: At least one owner or partner must manage the business on a full-time basis and be officially registered with the ministry as an employer.
- Financial Security: Agencies must register with the Authority for Small and Medium Enterprises Development and provide a financial guarantee of RO 5,000 (approximately USD 13,000) to cover potential breaches of contract or regulation.