Oman Doubles Expat Work Permit Fees for Non-Compliant Firms, Gives Discounts to Omanisation Leaders
February 18, 2026
The Sultanate of Oman has introduced a new tiered fee system for expatriate work permits. Firms meeting or exceeding Omanisation targets receive a 30 percent discount. Companies that do not meet local hiring quotas will pay double the usual fees. This policy aims to boost job opportunities for Omani citizens.
The Ministry of Labour announced that compliant companies, categorized as Green, enjoy significant savings on permit and licence fees. Non-compliant firms face steep penalties, doubling their costs to hire foreign workers. These Omanisation quotas vary depending on sector and company size.
Alongside the fee changes, work-practice licences for expatriates are now valid for 24 months instead of 15. Employers can upgrade an expatriate’s professional category by paying the fee difference without applying for a new permit. These measures ease administrative tasks amid tougher fee rules.
Oman’s policy fits a regional trend where Gulf countries link foreign labour costs to local hiring performance. Countries like the UAE and Saudi Arabia have similar rules to promote national employment.
Some employers worry about higher costs and workforce planning challenges due to Omanisation rules. However, fee discounts for compliance can offset penalties. Online discussions suggest non-compliant firms could also face visa renewal difficulties.
The new tiered fees do not ban foreign hires but make it costlier to ignore local hire targets. Oman also reserves some jobs exclusively for citizens to further encourage national workforce growth.
Experts see the system as a "carrot and stick" approach. Companies hiring more Omanis save money, while others must rethink their reliance on expats. The policy is expected to reduce dependency on foreign labour, especially in mid and senior roles.
Critics urge the government to expand training and support for Omani job seekers and ease the burden on smaller businesses with scarce local talent. They warn that without strong workforce development, some firms might struggle.
The tiered fee system is part of Oman’s five-year plan focusing on economic diversification, job creation, and empowering the private sector. It is designed to align business growth with national labour priorities and create a fair, predictable environment for hiring foreign workers.
By tying expat work permit costs to local hiring performance, Oman sends a powerful message: supporting the national workforce is a priority, and the price of ignoring it will rise.
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Tags:
Omanisation
Expat Work Permits
Foreign Labour
Oman Labour Reforms
Fee Structure
Local Employment
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