Wednesday 04 / June / 2025
MUSCAT: In a sweeping move to tighten enforcement of its national employment policy, the Sultanate of Oman’s Tender Board has made it mandatory for all private sector companies to comply with approved Omanisation rates in order to be eligible for government contracts. The directive, issued under Circular No. 2025/2, instructs all ministries and government entities governed by the Tender Law to refrain from awarding contracts to companies that fail to meet the stipulated Omanisation levels, marking a significant shift toward safeguarding jobs for Omani nationals.
The circular, issued by the General Secretariat of the Tender Board, aims to ensure that the employment of Omani citizens becomes a non-negotiable requirement in public sector contracting. It instructs government bodies to include a clause related to Omanisation compliance in all tender documents before the tender is floated. This clause is to be inserted in accordance with the official format provided and must make clear that non-compliance with national workforce targets will result in disqualification from the bidding process.
In a move that streamlines compliance and enhances transparency, the circular also mandates that government entities verify a company’s adherence to Omanisation targets through the Esnad electronic tendering system. This verification is to be carried out prior to awarding any contract, with Esnad drawing real-time employment data directly from the Ministry of Labour.
The integration of this digital system ensures that non-compliant companies are screened out at an early stage, minimising the possibility of circumvention.
Further, the new rules extend to international companies and institutions that are not registered within the Sultanate but participate in tenders for large-scale or strategic government projects. While such companies may not be immediately subject to pre-award Omanisation verification, their compliance will be closely monitored post-award and during contract implementation. This oversight forms part of the broader local content strategy, which includes evaluating how effectively these companies contribute to Oman’s workforce development and national economic goals throughout the lifecycle of a project.
The Tender Board has called on all ministries and public sector units to fully comply with the provisions of the circular “in the public interest,” underlining the importance of the directive in advancing national priorities. The move is aligned with the goals of Oman Vision 2040, which places a strong emphasis on empowering the national workforce, enhancing economic sustainability, and reducing dependence on expat labour in key sectors.
The policy is expected to significantly impact the way private and foreign companies approach public tenders in Oman, compelling them to prioritise the recruitment, training, and retention of Omani nationals as part of their operational strategy. Industry analysts believe the move will not only create more job opportunities for Omanis but also push companies to invest in long-term human capital development within the country.
