Empowering Oman’s Society: How the New Social Protection System Enhances Business Stability and Investment Opportunities
MUSCAT: The social protection system in Oman has experienced a significant qualitative transformation across multiple levels, making strides toward greater empowerment and long-term sustainability. The newly enacted Social Protection Law broadens the understanding of protection to encompass all life stages, from childhood to seniority, and introduces programs that address retirement, end-of-service benefits, maternity, disability, direct financial assistance for low-income families, and savings schemes.
The Social Protection Fund aims to achieve its objectives through a strategic approach aligned with national policies and Oman’s vision for social protection. Key goals include offering equitable, adequate, and inclusive insurance coverage; establishing a sustainable and integrated system; enhancing resource management and investment within the Fund to maximize returns while managing risk; and ensuring alignment between current assets and future obligations. The Fund is also focused on developing savings tools and support programs, alongside creating a robust monitoring and evaluation framework for policies and initiatives related to protection, care, and social inclusion.
An operational framework is being developed to reflect the national vision of transitioning from a welfare-based approach to one centered on empowerment, productivity, and active participation. This includes implementing various social insurance programs and forging agreements with international insurance systems to facilitate coverage exchange and financial support mechanisms for insured individuals, pensioners, and their beneficiaries.
Royal Decrees (50/2023) and (52/2023) established the Social Protection Fund as a unified national entity for all societal segments, marking a milestone in the creation of a fair, comprehensive, and sustainable social protection framework centered on the principle that human well-being is fundamental to development.
The merger of 11 pension funds into a singular institutional body represents a significant advancement in resource management and ensures equitable benefit distribution, in line with Oman Vision 2040. The Fund’s vision has been integrated into a national framework aimed at improving the quality of life, strengthening social protection, and enhancing societal investments through targeted socioeconomic policies and programs.
The Fund continuously evaluates sustainability, efficiency, adequacy, and equity indicators to measure how well programs meet national objectives, ensure long-term stability, and uphold community partnership values—safeguarding the rights of both current and future generations.
A variety of cash benefit programs are administered by the Fund, including allowances for the elderly, children, persons with disabilities, orphans, widows, and family income support. It also oversees savings initiatives, supplementary financial programs managed by other entities, and collaborates with relevant authorities to enhance support, rehabilitation, empowerment, and integration policies for vulnerable populations. These initiatives reflect the principles of fairness and dignity outlined in Oman Vision 2040’s objective to foster a cohesive and prosperous society.
In line with national directives, the Fund is implementing a comprehensive strategic plan for 2024–2025, serving as a transitional phase towards a longer-term vision for 2026–2030. This plan focuses on four main areas: social protection, financial sustainability, governance and institutional excellence, and technology and innovation. It emphasizes bolstering internal capabilities, delivering proactive and intelligent services, expanding coverage for previously unserved groups, and improving benefits for all eligible populations.
Currently, over 90 percent of the strategic plan has been completed, with more than 600,000 citizens insured and 121,000 active pensions being disbursed. The system benefits over 3.3 million citizens and residents, and more than 1,030,000 non-Omani insured individuals also qualify for maternity leave support.
In terms of investment, the Fund has exceeded its targets by striking a balance between maximizing returns and maintaining financial sustainability while incorporating environmental, social, and governance (ESG) criteria into its investment policies in accordance with global standards.
The Fund is also preparing its strategic plan for 2026–2030, which emphasizes comprehensive social protection and is grounded in innovation and partnership. This plan focuses on four pillars: social protection, strategic cooperation and partnerships, institutional efficiency, and financial sustainability, all aimed at maximizing investment returns and establishing a modern, smart, and sustainable system aligned with best practices globally.
Domestically, the Fund has pursued institutional development through various quality initiatives, including the Internal Change Management Project and the Delegation of Powers Matrix, which enhance procedural efficiency. Media awareness programs regarding the Social Protection Law have improved public comprehension of these legislative reforms. The Fund has strengthened its media strategy to enhance community engagement and promote a positive institutional image using both digital and traditional channels.
To further enhance service delivery, the Fund has modernized its branches and outlet models to improve access for targeted audiences. These efforts have garnered several local and international awards, recognizing advanced administrative practices, customer-centric design, and high customer satisfaction.
In the pursuit of a smart and sustainable digital ecosystem, the Fund has launched multiple strategic digital transformation initiatives aimed at improving efficiency, transparency, and the beneficiary experience. By mid-2025, the Fund achieved a remarkable 78 percent automation of its services and 89 percent electronic linkage with governmental and non-governmental entities, exceeding its annual target of 70 percent. Additionally, two emerging technology projects were successfully implemented, underscoring the Fund’s commitment to innovation.
Beneficiary satisfaction reached an impressive 83 percent, significantly surpassing the target of 65 percent. The Fund’s open data initiatives met 100 percent of their annual goals, demonstrating its commitment to transparency and accessibility. Key achievements in 2025 included launching the "Protection" application in two phases, phasing out manual services entirely, establishing Manjam Labs for rapid service development, building an AI-ready infrastructure, and launching a call center.
The Fund is preparing to transition to its new headquarters, designed to foster a modern and efficient working environment that meets the demands of digital-era public service delivery.
On the international stage, the Fund has gained recognition by showcasing its best practices in social protection and receiving numerous international awards. Its active membership in the International Social Security Association (ISSA) and participation in Gulf and Arab forums have facilitated knowledge exchange and the adoption of global best practices in digital transformation and financial sustainability, particularly in the protection of vulnerable groups. The Fund has also formed partnerships with Arab and international organizations to enhance its technical and administrative capabilities.
During 2024 and 2025, the Social Protection Fund, representing Oman, earned notable recognition globally by winning the ISSA Main Award for Best Practices in the Asia-Pacific region—one of the field’s most prestigious accolades. Additionally, it received eight Certificates of Merit, including three with special commendation. The Fund actively engaged in major international events, such as the Social Protection Forum and the Innovation in Social Protection Systems Conference, hosted in Oman and attended by over 150 international experts. Representatives from the UN and ILO praised Oman’s model as one of the most advanced in the region.
The Fund further strengthened its international collaborations, notably through joint efforts with UNICEF and the International Labour Organization to enhance programs for children and low-income families. At the World Social Security Forum 2025 in Kuala Lumpur, it received three excellence certificates for its adherence to global guidelines in contribution collection, service quality, and human resources management.
Special Analysis by Omanet | Navigate Oman’s Market
The transformation of Oman’s social protection system presents a unique opportunity for businesses to tap into a more inclusive workforce, which can lead to enhanced productivity and engagement. However, the shift toward empowerment-based programs may pose risks for companies unprepared to adapt to an evolving labor market and emerging social expectations. Smart investors and entrepreneurs should consider leveraging the Fund’s digital transformation initiatives and stringent governance to innovate in areas aligned with Oman’s Vision 2040, ensuring they remain competitive and socially responsible.
