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Oman’s Ministry of Labour has issued Ministerial Decision No. 390/2026 that replaces the 2011 regulatory framework governing the recruitment of non-Omani workers with a series of measures designed to increase transparency and accountability. The new rules, published on October 11 and effective from January 1, 2027, mandate that recruitment activities be restricted to offices licensed by the ministry while requiring unified contracts and the maintenance of detailed registers of operations. Existing licences will continue until they expire, after which renewals must meet the updated standards, according to the ministry’s announcement.
The decision sets strict eligibility criteria for obtaining a licence, the ministry reported. Owners, partners and authorised signatories must be Omani nationals, with the owner or at least one partner required to manage the business full-time and register as an employer with the ministry. Applicants must also register with the Authority for Small and Medium Enterprises Development and deposit a financial guarantee of RO 5,000, intended to cover contractual obligations and protect both employers and workers in case of default.
Recruitment agencies will face a firm 45-day limit to complete the process from the signing of the service contract, unless the parties agree in writing to a shorter period, the ministry stated. Agencies must use only ministry-approved contracts and forms while providing employers with complete worker details, including skills and experience. They are further required to arrange pre-entry medical examinations, secure insurance coverage for each contract and source candidates through accredited external agencies that have been attested by Omani diplomatic missions or coordinated with the Ministry of Foreign Affairs and Royal Oman Police when necessary.
Worker safeguards form a central element of the updated framework, according to the ministry. Recruitment offices are prohibited from charging any fees to the workers themselves and must not retain passports or official documents without written consent. Agencies must also supply suitable separate accommodation for male and female workers that meets occupational health and safety standards while ensuring each recruit receives a documented job offer specifying salary and duties before travel. The recruitment service itself carries a two-year guarantee, during which agencies may be required to provide refunds or replacement workers under defined conditions such as failure to meet agreed terms.
The ministry has introduced several facilitations alongside the tighter controls to support compliant operators. Licensing fees have been reduced to RO 300 for a two-year period, the number of temporary licences has been raised to 25, and offices may open branches after one year of operation provided they appoint an Omani manager. Oversight mechanisms will include performance monitoring, compliance checks and administrative penalties for violations, ensuring the system balances efficiency with protection for all parties involved.
The regulations arrive as Oman expands its Omanisation policy, which reserves an increasing number of professions for nationals, with 32 additional roles restricted to Omanis in phases culminating on January 1, 2027, according to separate labour ministry announcements reported by Times of Oman. These measures reflect ongoing efforts to prioritise national employment while managing a workforce in which expatriates continue to fill critical gaps across multiple sectors. Legal experts such as Dr Mohammed Ibrahim Al Zadjali, chairman of Mohammed Ibrahim Law Firm, have noted that the new licensing and procedural requirements will professionalise the recruitment industry and reduce disputes between agencies, employers and workers.
