Oman has announced a ban on expatriates from working in more than 200 professions in the country. The directive is part of an intensified Omanisation drive, a national strategy aimed at prioritising employment
for Omani citizens across key sectors of the economy.
While localisation policies are not new to the Gulf, the scale and sweep of Oman’s latest labour move have drawn sharp attention from migrant communities, recruitment agencies and policymakers alike.
Oman remains one of the largest employment destinations for Indian migrant workers. Government data shows that over 6.7 lakh Indian nationals are currently employed in the country.
Against this backdrop, the new directive has sparked concern not only among those already working in Oman and thousands of Indians aspiring to find jobs in the Gulf nation. Here’s a closer look at what the policy entails and what it could mean for Indian workers.
What The Ban Means on the Ground
Although the complete list of restricted professions has not been released in detail publicly, authorities have confirmed that the ban spans sectors such as hospitality, administrative services, supervisory roles and certain management positions, many of which have long relied on expatriate expertise.
For foreign workers, including Indians, the policy does not necessarily translate into immediate job losses. Initial reporting suggests that expatriates currently employed in these roles may be allowed to continue until their existing work permits expire.
However, the future appears far less certain. Renewals, role changes or new visas in these professions are likely to face stricter scrutiny or outright rejection as the localisation drive gathers pace.
In practical terms, this means career mobility for expatriates in Oman could become increasingly limited, especially for those working in mid-level positions that now fall under the restricted category.
How It Would Affect The Indian Workers
Indian nationals form a substantial part of Oman’s expatriate workforce, employed across construction, hospitality, retail, logistics and services. For those already in the country, the policy introduces a period of uncertainty rather than immediate disruption.
While current contracts may be honoured, long-term career growth, promotions, lateral shifts, or contract extensions could become more difficult in sectors earmarked for Omanisation.
For Indians planning to migrate to Oman, the impact is far more direct. The number of accessible job openings is expected to shrink, particularly in roles that were once considered stable entry points for foreign workers.
Recruitment pipelines that previously channelled Indian talent into Omani companies may now slow down or close altogether for certain professions.
This shift is also likely to influence hiring behaviour across the region. Recruitment agencies in India that specialise in placements to Oman may increasingly redirect candidates towards other Gulf markets. However, it is worth noting that localisation policies are expanding across the Middle East, not just in Oman.
Effect On Remittances And Indian Households
Oman may account for only around 1.5% of India’s total remittance inflows, but for many families in states like Kerala, Tamil Nadu, Andhra Pradesh and Telangana, this income remains a crucial lifeline.
Over time, fewer job opportunities and tighter visa norms could lead to a gradual decline in new migrant inflows, which in turn may affect remittance growth.
For households dependent on overseas income, this development reinforces the importance of financial planning and alternative income strategies.
At a broader level, it also highlights India’s ongoing challenge of creating sufficient domestic employment opportunities to absorb a workforce that has traditionally sought better prospects abroad.
Why Oman Is Tightening Its Labour Market Now
Oman’s labour reforms are rooted in domestic economic realities. With a young population entering the workforce each year, the government is under pressure to generate jobs for its citizens, particularly in the private sector, where expatriates have traditionally dominated.
Officials have repeatedly emphasised that long-term economic stability depends on reducing reliance on foreign workers and increasing Omani participation in industries ranging from services to management.
The latest move reflects this urgency. By reserving hundreds of roles exclusively for nationals, the government aims to accelerate local hiring while simultaneously pushing businesses to invest in training and skill development for Omani employees.
Alongside the ban, Oman has also announced ambitious job creation targets for citizens in the coming years, underscoring that this policy is part of a broader structural shift rather than a temporary measure.
Oman’s decision does not exist in isolation. Across the Gulf, governments are rethinking labour models that relied heavily on expatriate workers for decades. Saudi Arabia’s Nitaqat programme and the UAE’s Emiratisation push reflect similar attempts to increase citizen participation in the private sector and reduce long-term economic vulnerabilities.
What sets Oman apart, however, is the breadth of professions now reserved for nationals. This signals a faster and more assertive localisation push — one that foreign workers can no longer afford to view as symbolic or easily reversible.
For Indian professionals and job seekers, Oman’s new labour rules serve as a clear signal that the Gulf job market is evolving.
The era when expatriate labour filled most private-sector roles with relative ease is steadily giving way to more regulated, citizen-first employment systems.
Those already working in Oman may need to reassess long-term plans, while new job seekers should approach the market with greater caution, updated skills and diversified destination strategies.
