New Oman Recruitment Agency Rules to Take Effect in 2027
Oman is set to transform its labor market landscape with the introduction of a comprehensive new regulatory framework for expatriate recruitment agencies. These new Oman recruitment agency rules will officially come into force on January 1, 2027, following the issuance of Ministerial Decision No. 390/2026 by Labour Minister Dr. Mahad bin Saeed bin Ali Baawain.
The new regulations, which were issued on October 11, 2026, aim to replace the existing 2011 framework. The overhaul is designed to curb unregulated hiring practices and provide enhanced legal protections for both employers and the expatriate workforce across the Sultanate.
Strict Ownership and Financial Mandates
Under the new framework, the landscape of recruitment agency ownership is changing significantly. To ensure local control and accountability, recruitment offices are now restricted to Omani ownership only.
The Ministry has also introduced several financial and professional requirements to ensure agencies are stable and well-managed:
- Financial Guarantees: Agencies must provide a mandatory financial guarantee of RO 5,000. Furthermore, additional deposits will be required for any agencies operating branches.
- Managerial Qualifications: Owners must be registered as full-time managers with the Authority for Small and Medium Enterprises Development. Managers are required to hold at least a general education diploma or possess five years of professional experience.
- Compliance History: To qualify, managers must not have faced a license cancellation within the last five years.
Licensing and Business Expansion
The Ministry has introduced new terms for licensing and how agencies can grow their operations. The licensing fee has been adjusted to RO 300 for a two-year period, and agencies are now permitted to hold up to 25 temporary licenses.
For agencies looking to expand, branch operations are permitted after one year of existence, provided that a dedicated Omani manager is appointed for each specific location.
Worker Protections and Service Standards
A major component of the new decision focuses on the rights and welfare of expatriate workers. The Ministry has implemented strict rules to prevent exploitation and ensure efficiency:
- Prohibition of Fees: Agencies are strictly prohibited from charging workers any recruitment fees.
- Recruitment Timelines: The recruitment process must be completed within 45 days of the service contract date. A 30-day extension may be granted, but only through a formal written agreement.
- Service Guarantees: All recruitment services are now guaranteed for a period of two years under the new rules.
- Housing and Safety: Agencies are responsible for providing suitable housing and care for workers while they are in their custody, and must adhere to strict occupational safety and health standards for both their premises and worker accommodations.
To maintain transparency, the framework mandates that all recruitment must rely on Ministry-approved contracts. Additionally, the public advertising of specific non-Omani workers is now banned. To ensure these standards are met, the Ministry has established clear dispute resolution mechanisms and will increase inspection oversight across the country.