Omanisation

Omanisation

The Omanisation programme has been in operation since 1999, working toward replacing expatriates with trained Omani personnel. The goal of this initiative is to provide jobs for the rapidly growing Omani population. The state has allotted subsidies for companies to hire local employees not only to gradually reduce reliance on foreign workers but also to overcome an overwhelming employment preference on the part of Omanis for government jobs.

By the end of 1999, the number of Omanis in government services exceeded the set target of 72%, and in most departments reached 86% of employees. The Ministry has also stipulated fixed Omanisation targets in six areas of the private sector. Most companies have registered Omanisation plans. Since April 1998 a 'green card' has been awarded to companies that meet their Omanisation targets and comply with the eligibility criteria for labour relations. The names of these companies are published in the local press and they receive preferential treatment in their dealings with the Ministry. Academics working on various aspects of Omanisation include Ingo Forstenlechner from United Arab Emirates University and Paul Knoglinger from the FHWien.

Omanisation, however, in the private sector is not always successful. One of the reasons is that jobs are still filled by expatriates because of the lower wages. Studies reveal that an increasing number of the job openings in the private sector pay the official minimum salary for nationals, which is an unattractive employment prospect for the locals. There is also the problem of placing Omani workers in senior positions due to the fact that a significant chunk of the workforce is composed of young and inexperienced workers.

Training and Omanisation

In order to meet the training and Omanisation requirements of the banking sector, the Omani Institute of Bankers was established in 1983 and has since played a leading role in increasing the number of Omanis working in the sector. The Central Bank monitors the progress made by the commercial banks with Omanisation and in July 1995 issued a circular stipulating that by the year 2000, at least 75% of senior and middle management positions should be held by Omanis. In the clerical grades 95% of staff should be Omanised and 100% in all other grades. At the end of 1999, no less than 98.8% of all positions were held by Omanis. Women made up 60% of the total. During 2001 the percentage of Omanis employed at senior and middle management levels went up from 76.7% to 78.8%. There was a slight increase in the clerical grade percentage to 98.7%, while the non-clerical grades had already reached 100% Omanisation in 1998. The banking sector currently employs 2,113 senior and middle managers supported by 4,757 other staff.

The Ministry has issued a decision regulating tourist guides, who in future will be required to have a license. This Ministerial decision aims at encouraging professionalism in the industry as well as providing career opportunities for Omanis who will be encouraged to learn foreign languages so as to replace foreign tour guides. In January 1996, a major step forward in the training of Omanis in the hotel industry came with the opening of the National Hospitality Institute (NHI). The institute is a public company quoted on the Omani Stock exchange. In February 1997, the first batch of 55 male and female trainees, sponsored by the Vocational Training Authority, were awarded their first level certificates and were given on-the-job training in several hotels. In May 1999, the fourth batch of 95 trainees obtained their NVQs, bringing the number of Omanis trained by the institute to around 450. Omanis now make up 37% of the 34,549 employees in the hotel and catering business, which exceeds the Omanisation target of 30% set by the Government. The NHI has also trained catering staff from the Sultan's Armed Forces and has launched a two-year tour guide course, which includes language training, safe driving, first aid and a knowledge of local history and geography.