Oman: Hiring Local Worker Mandatory for Foreign Businesses

Gulf News, 5 October 2025: Foreign-owned companies in Oman must employ at least one Omani citizen within their first year of operation, according to new legislation announced by the country’s Ministry of Commerce, Industry and Investment Promotion.

The requirement, established through Oman Ministerial Decision No. 411/2025, introduces Article (12) bis to the Foreign Capital Investment Law’s (Oman Sultani Decree No. 50/2019) executive regulations. Under the new rules, foreign businesses must ensure their Omani employees are officially registered with the Social Protection Fund.

Existing foreign companies that have been operating for more than a year will need to comply with the regulation within six months. This adjustment must occur when they either renew their commercial registration, obtain a new work permit, or renew an existing permit, whichever comes first.

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Oman: Implements New Maritime Labour Regulations for Seafarer Protection

Times Of Oman, 27 September 2025: Oman has introduced comprehensive Maritime Labour Regulations through Oman Sultani Decree 313/2025, implementing commitments under the Maritime Labour Convention and establishing detailed rights and responsibilities for both Omani and foreign seafarers.

The regulations apply to all vessels except fishing boats, traditional vessels, warships, war-supply ships, and those operating in protected waters. Under the new rules, vessel operators must ensure all seafarers hold valid medical certificates with a minimum of six months ‘ validity.

Key provisions include mandatory rest periods of at least 10 hours per day and 77 hours weekly. Seafarers are entitled to a minimum of 30 days paid annual leave. The regulations also mandate operators to cover repatriation costs to either the port of contract or an agreed alternative port under specific circumstances, including contract completion in foreign ports or service exceeding nine consecutive months.

Vessel operators must provide free medical care and health insurance for crew members, along with compensation in cases of ship loss. The regulations require employment contracts to be available in Arabic or include an approved Arabic translation.

Certain vessels must now carry a Maritime Labour Certificate to demonstrate compliance with the new standards. Where the regulations do not specifically address an issue, Omani Labour Law provisions will apply.

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Oman: Introduces New Securities Clearing and Depository Regulations

The Arabian Stories, 20 September 2025: Oman’s securities clearing house has approved new regulatory rules governing clearing and depository operations in the Muscat Stock Exchange, establishing comprehensive guidelines for market operations and investor services.

The framework, developed with international consultants, covers: Membership requirements, Securities account management, Central securities register maintenance, Mortgage and collateral handling, Clearing and settlement procedures, Corporate actions processing and Securities lending and borrowing operations.

The regulations provide detailed protocols for dividend distributions, cash entitlements, and share allocations. They also establish clear guidelines for the recently introduced bilateral securities lending and borrowing system.

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Oman: Introduces Stricter Human Trafficking Law with Enhanced Penalties

Al Roya, 14 September 2025: Oman has issued new comprehensive anti-human trafficking legislation through Omani Royal Decree 78/2025, introducing severe penalties and detailed enforcement measures

Key Penalties: Basic Offences: Prison terms: 3-10 years and Fines: 5,000-100,000 Omani Rials.

Aggravated Circumstances (7-15 years imprisonment and 10,000-100,000 Omani Rials fine): Crimes against children or disabled persons, Cases resulting in serious illness or injury, Multiple victims, Armed perpetrators, Public officials exploiting their position, Organised criminal groups and Transnational trafficking.

Additional Provisions: Witness tampering: 3-5 years imprisonment, Failure to report trafficking: 6 months to 3 years imprisonment plus 300-1,000 Rial fine, Publishing victims’ identities: Up to 1 year imprisonment plus 500-1,000 Rial fine and Passport confiscation: 10 days to 1 year imprisonment plus 100-300 Rial fine.

Corporate Liability: Fines: 10,000-100,000 Omani Rials, Possible suspension or dissolution of business and Management held personally liable if aware of crimes.

Enforcement Measures: Mandatory asset confiscation, No suspended sentences allowed, Immunity provisions for informants who assist authorities Enhanced penalties for repeat offenders and Cross-border recognition of foreign convictions.

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Oman: Introduces New Remote Working Regulations for Private Sector

The Arabian Stories, 8 September 2025: The Ministry of Labour in Oman has unveiled comprehensive regulations governing remote work arrangements in the private sector, establishing the country’s first formal framework for flexible working practices.

Under the new ministerial decision, employers must now follow specific guidelines when implementing remote work schemes. The regulations apply to both partial and full remote working arrangements, though notably prohibit remote contracts with workers based outside Oman.

The decision mandates that employers must:

• Maintain an official register of remote workers
• Supply necessary IT equipment and software
• Implement electronic monitoring systems for performance tracking
• Cover installation and maintenance costs of work-related technology.

To protect workers’ rights, the legislation explicitly forbids surveillance systems that infringe on employee privacy or misuse personal data. Workers are granted the right to disconnect from company systems if such violations occur.

The regulations specify that full remote working contracts must be written agreements detailing employment terms, including working hours, remuneration, and technological requirements. For partial remote working arrangements, employees may submit requests which employers can approve or decline based on operational needs.

Employers retain the right to recall partially remote workers to on-site work under specific circumstances, including information security breaches or failure to maintain agreed working hours.

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Oman: Launches Golden Visa to Attract Investors

Khaleej Times, 25 August 2025: To attract more foreign investors and create a more business-friendly climate, Oman has introduced a new “Golden Residency” visa programme.

The Ministry of Commerce, Industry and Investment Promotion announced the launch of this scheme, reinforcing the Gulf nation’s status as a prime destination for international investment. As stated by Mubarak bin Mohammed Al-Douhani, the Director General of Planning and Head of Digital Transformation at the Ministry of Commerce, this initiative is aimed at creating a stable and dynamic business environment that offers investors premium prospects for sustainable long-term growth and security. Additionally, Oman is set to introduce the “Majid Companies” initiative and an electronic authentication service for transferring commercial registration ownership via the “Invest Oman” platform.

Oman’s Golden Visa

Oman now provides two investment residency programme options available through real estate investment, commercial ventures, and long-term bank deposits. These options are renewable for either five or 10 years, provided that applicants meet the defined criteria.

Applications for the new long-term residency programme can be submitted online via the “Invest Oman” platform, and come in two tiers as discussed below.

Tier 1

Investors qualify by completing one of the following:

• Investing at least OMR 500,000 in a limited liability company, public joint stock company, or government bonds.
• Purchasing property in Oman valued at a minimum of OMR 500,000.
• Establishing a company that employs at least 50 Omani nationals, with no requirement regarding company capital.

The Tier 1 extended residency permit is valid for 10 years (renewable), and the fee to issue the residence card is OMR 551.

Tier 2

For Tier 2 eligibility, investors must either:

• Invest a minimum of OMR 250,000 in a limited liability company or public joint stock company.
• Purchase property in Oman worth at least OMR 250,000.

Additionally, expatriate workers in Oman who wish to retire in the country may also qualify for an extended residence permit by showing proof of a fixed income of at least OMR 4,000 per month.

The Tier 2 extended residency permit is valid for five years (renewable), with a residence card fee of OMR 326.

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Oman: To Standardise Insurance Coverage Rules

Times Of Oman, 13 August 2025: The Finance and Insurance Committee of Oman’s Chamber of Commerce and Industry (OCCI) has met to propose a unified insurance policy aimed at standardising coverage across the sector.

The committee examined bank charges affecting business borrowers. The review will incorporate data from the Central Bank of Oman, with particular focus on fees affecting small and medium enterprises, which comprise 80% of Oman’s business market.

The committee put forward several new initiatives, including a proposed joint seminar with the Oman Commercial Arbitration Centre to showcase dispute resolution services. Plans were also discussed for a dialogue session addressing financing challenges and personal loans supporting Omani employment in SMEs.

A new training programme for insurance sector workers was also proposed, featuring both short and long-term courses, including a professional insurance diploma.

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Oman: New Market Rules for Companies

Times Of Oman, 11 August 2025: Oman’s Financial Services Authority has unveiled a new regulatory framework for a Promising Companies Market, establishing a dedicated sub-market within the Muscat Stock Exchange.

The newly implemented regulations introduce simplified listing requirements designed specifically for private, family-owned, and small to medium-sized enterprises. Key features include flexible initial requirements, with companies needing to demonstrate specified annual growth rates and maintain a minimum number of shareholders.

Under the new framework, eligible companies must meet standardised criteria and pay fixed, published fees to gain market access. The regulations outline specific listing mechanisms and disclosure requirements tailored to growth-stage companies. It also includes provisions for companies to transition gradually to the main market as they mature.

The initiative creates a specialised financing channel that allows qualifying businesses to access capital through a regulated exchange environment. Companies interested in listing can explore these new financing options through the designated market platform.

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Oman: Tightens Enforcement of Building Permit Requirements

The Arabian Stories, 4 August 2025: Muscat Municipality has announced strict enforcement of building regulations, warning property owners and developers that unauthorised construction will face penalties, including possible demolition orders.

The municipality states that all construction activities within the Governorate of Muscat must obtain official permits before work begins. This includes any modifications or extensions to existing structures.

The authority emphasises that violations of building codes will result in financial penalties, with serious breaches potentially leading to mandatory removal of unauthorised constructions.

The announcement forms part of the municipality’s regulatory oversight of urban development within the governorate, with enforcement focusing on compliance with local construction laws and standards.

Property owners, developers, and contractors have been instructed to ensure all necessary permits are in place before initiating any building work.

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