MUSCAT: In a bold effort to strengthen enforcement of its national employment policy, the Sultanate of Oman's Tender Board has made it mandatory for all private sector enterprises to follow authorized Omanisation rates in order to be eligible for government contracts. The instruction, issued under Circular No. 2025/2 directs all ministries and government organizations subject to the Tender Law to avoid awarding contracts to firms that do not fulfill the necessary Omanisation rates, representing a major step toward preserving jobs for Omani citizens.
The circular, issued by the Tender Board's General Secretariat, attempts to guarantee that the recruitment of Omani nationals becomes a nonnegotiable necessity in public sector contracting. It requires government agencies to add an Omanisation compliance provision in all tender papers before issuing the tender. This clause must be added in accordance with the official format supplied, clearly stating that failure to meet national workforce goals would result in exclusion from the bid process.
In a bid to simplify compliance and improve transparency, the circular requires government bodies to confirm a company's adherence to Omanisation goals using the Esnad online tendering system. This verification must be performed before awarding any contract, with Esnad retrieving current employment data directly from the Ministry of Labour.
The incorporation of this digital system ensures that noncompliant firms are identified early on, reducing the possibility of evasion.
Furthermore, the revised legislation apply to foreign firms and organizations that are not registered in the Sultanate but bid on major or important government projects. While such businesses may not be subject to preaward Omanisation verification, their compliance will be carefully watched after award and throughout contract execution. This monitoring is part of a wider local content strategy that assesses how well these enterprises contribute to Oman's workforce development and national economic objectives throughout the life cycle of a project.
The Tender Board has asked all ministries and public sector agencies to strictly adhere with the circular's requirements "in the public interest," emphasizing the significance of the instruction in achieving national goals. The decision corresponds with the objectives of Oman Vision 2040, which prioritizes developing the national workforce, promoting economic sustainability, and minimizing reliance on foreign labour in critical industries.
The regulation is expected to have a substantial impact on how private and international firms approach public bids in Oman, requiring them to focus the recruitment, training, and retention of Omani people as part of their operational strategy. Industry experts believe that the action would not only provide more employment possibilities for Omanis, but it would also encourage enterprises to invest in long-term human capital development in the country.
