Oman Allocates RO500 Million to Boost Labour Market: What It Means for Investors and Business Owners
MUSCAT: The Sultanate of Oman, through the Ministry of Finance and the Ministry of Economy, has committed approximately RO100 million annually to the National Employment Programme under the newly unveiled Eleventh Five-Year Development Plan (2026–2030).
During a press conference in Muscat, Dr. Nasser bin Rashid al Maawali, Under-Secretary of the Ministry of Economy, presented the labour market and employment framework for the first time as a distinct component of the plan. He emphasized, “Improving the efficiency of the labour market and employment is one of the challenges we were keen to address clearly and in an achievement-oriented manner.”
The plan includes 21 strategic programmes aimed at tackling labour market and employment challenges, ensuring that economic growth and employment development progress hand in hand.
The framework anticipates creating a total of 700,000 job opportunities over the plan’s duration, with 301,000 direct jobs for Omanis in both public and private sectors—averaging roughly 60,000 new jobs per year. The private sector is expected to generate most of these opportunities, particularly in retail, which is projected to account for 34.2% of new jobs. Construction follows at 29.8%, while industry, tourism, and transport sectors are expected to contribute 10.6%, 8.7%, and 5.5%, respectively.
Funding for this framework will come from a 1.2% levy on the value of contracts and procurement invoices within government entities, Oman Investment Authority-affiliated companies, and Oil and Gas sector firms.
Key policies outlined in the plan include enhancing on-the-job training, fostering a positive work culture, speeding up job seeker integration, establishing and advancing professional standards across sectors, empowering national talent in private companies, improving the labour recruitment system, developing targeted employment programmes, and regulating flexible and remote work arrangements.
Special Analysis by Omanet | Navigate Oman’s Market
Oman’s Eleventh Five-Year Development Plan, with a dedicated RO100 million annual investment in the National Employment Programme, signals a strategic pivot towards robust labour market reform and job creation. For businesses, this means a substantial increase in national workforce participation, especially in retail, construction, and tourism, creating opportunities for local partnerships and talent development. Smart investors should consider sectors aligned with these growth areas and anticipate rising demand for workforce training and flexible employment solutions amidst evolving labour regulations.
