According to official statistics, about 300,000 foreign workers fled Oman during the epidemic. Private sector companies have been unable to sustain their business due to the crisis and many companies have cut staff as part of cost-cutting measures. During the epidemic, the Ministry of Labor encouraged the private sector to replace foreign workers with Omani workers. According to official statistics, by the end of 2021, the number of Omani job seekers was around 70,000. But there are also critics of the move.
Muneer al-Falahi, a retired ministry official, asked why less than 100,000 Omanis were employed instead of 300,000 expatriates.
“Not all expatriates have had to be excluded due to the epidemic, and many companies have struggled due to high expatriate recruitment fees. Such people have to reduce their expenses by releasing them, ”he said.
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Last month, the ministry announced a significant reduction in recruitment fees from June to make it easier for companies to re-employ foreign workers. This is down from 4,000 riyals ($ 10,390) to 121 riyals per worker, depending on the job.
“The reduction in expatriate recruitment fees will encourage private companies to recover the economy, but at the same time, we emphasize that the private sector must continue its plans to employ Omanis,” the ministry said. The government has also introduced a special scheme to encourage the employment of natives in private companies. Under the scheme, the government will provide 150 riyals per month for 12 months for each Omani employed by a private company. In addition, Omani companies with at least 30 percent of the total workforce will receive an additional 30 percent discount on recruitment fees when hiring foreign workers. The ministry said the money would help employers train Omani youth.
The companies welcomed the reduction in fees for hiring foreign workers. “We could not afford the high cost of expatriate recruitment fees and it was really difficult for us to pay. We welcome the reduction in fees, which is a relief for us, “said Mustafa Hussain, director of Al Batuna Constructions.
Business owners also praised the government’s decision to provide financial incentives to recruit Omanis. “We now have two incentives together. Not only will we reduce the fees for hiring foreign workers, but if we hire Omanis, we will also receive monthly financial assistance, which is a great opportunity for employers and job seekers in Oman, ”said Rashad al-Humaidani, who runs the Ladeed restaurant chain.
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