The relevant authorities in Oman are now actively taking steps to penalise companies which do not comply with certain employer obligations announced in 2024.

The Ministry of Commerce, Industry and Investment Promotion (MOCIIP) published an Arabic announcement online in March 2024 about a new requirement for companies that are subject to the Foreign Capital Investment Law. As per the announcement, such companies must hire at least one Omani employee within a year from when the company was incorporated. The MOCIIP has started enforcing this requirement and suspending the commercial registrations of companies which are not compliant with the announcement. In our experience, the suspension will only be lifted once a company hires an Omani employee.

The Minister of Labour issued Ministerial Decision (MD) No. 729/2024. The MD is aimed at monitoring the payment of salaries and requires all private sector companies to register under the Wage Protection System (WPS). The Ministry of Labour has started fining companies which are not compliant with the MD. It is worth noting that a company must have an Oman bank account before it can register under the WPS.

Please contact one of our specialists if you have any queries relating to these recent developments and their potential impact on your business in Oman.