Key forum explores labour market future policy directions
The Government Communication Centre hosted the third session of its 'Dialogue for Communication' series, focusing on labour and employment policies in Oman. Held on Wednesday, March 19, at the Ministry of Information Theatre in Media City, the session featured Dr Mahad bin Said Baowain, Minister of Labour, who addressed national workforce strategies, Omanisation efforts and employment challenges. The dialogue provided a platform for direct engagement between decision-makers and the public, highlighting key labour market developments and future policy directions.
During the session, Dr Baowain shared insights into the composition of Oman's workforce, particularly within the trade sector, where the total number of workers stands at approximately 1.6 million. He explained that while some businesses require long-term employment contracts, others—particularly in certain service industries—operate with short-term employment models.
One of the key distinctions he made was between professional, semi-professional, and technical roles, noting that there is no classification for 'unskilled professions,' but rather 'basic professions', which generate lower revenue. Small businesses, such as local coffee shops and other service-oriented enterprises, typically employ a handful of expatriate workers with limited financial turnover. Excluding these businesses from broader employment statistics, the workforce would shrink from 1.1 million to 500,000 in specific sectors.
Dr Baowain emphasised that large Omani companies, specifically the 700 firms employing over 150 staff members, account for a significant share of national employment. These firms collectively employ 180,000 Omanis and 200,000 expatriates. However, he noted that while Omanisation remains a priority, the process of workforce replacement is complex.
He clarified that replacing expatriate workers is not a straightforward process, as many roles require specialised skills, job-specific experience, and established workflows that companies have developed over time. 'Some may think it is easy to replace expatriates, but in reality, it involves multiple factors, including job responsibilities and the overall structure of a company,' he stated. To address these challenges, the Ministry of Labour engages in dialogue sessions and workshops to ensure transparency and support businesses in gradual workforce transitions.
Looking ahead to 2025, Dr Baowain outlined employment projections for both government and private sectors. He stated that most government-sector roles are temporary positions tied to financial grades and availability. Meanwhile, in the private sector, Omanisation efforts are progressing through initiatives such as the 11,000 training-to-employment opportunities that are currently being developed, some of which are linked to workforce localisation.
On the issue of minimum wage policies, the Minister clarified that the existing framework is not a salary scale or direct employment mechanism but rather a protective measure for the labour market. Salaries below a certain threshold require formal contractual agreements, ensuring that workers receive fair compensation. However, the final structure of these regulations remains under review, with ongoing discussions evaluating their economic and financial impact.
As Oman continues to develop its workforce policies, the insights shared in the third 'Dialogue for Communication' session highlighted the balancing act between economic realities, workforce nationalisation, and business sustainability. With continued dialogue between government, businesses, and workers, the focus remains on creating a dynamic, inclusive and future-ready labour market.
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