Oman warns private sector over Omanisation targets

Private companies in Oman face losing generous government incentives if they do not hit targets for employing Omanis.
Ali Al Sunaidi, minister of commerce and industry, warned companies that 35 per cent of their workforce must be Omani or they will start to lose the benefits.
The minimum target was set in 2010 as part of the sultanate’s Omanisation process, which began in 1988 with a drive to replace expatriates in key sectors such as engineering, education, health and finance.
"I understand that with jobs that Omanis cannot do then there is a justification for expatriates to do them. However, there are many Omanis who are well qualified to do them but the private sector doesn’t do enough to replace the expatriates with the positions," Mr Al Sunaidi told delegates at an annual industry meeting in Muscat on Sunday. "We at the ministry of commerce and industry will not continue to support or provide incentives to the companies that don’t help the government’s drive to comply with the Omanisation process."
Just over 10 per cent of private-sector workers are Omanis, according to government statistics. About 1.85 million expatriates hold various positions in the private sector, compared to about 223,000 Omanis, and there are currently more than 54,000 Omanis looking for jobs. The government’s incentives to the private sector include free commercial lands, soft loans, free training to new recruits and low corporate taxes and duties.
Workforce analysts say most expatriates are working in the engineering sector where many Omanis fail to get jobs, despite 44 per cent of Omani graduates having studied engineering.
"This is the sector which can generate a lot of jobs for Omanis," said Hamood Al Toky, director at Capital Manpower Agency. "A big majority of these jobs are occupied by expatriates. Why? Because the directors of the private companies don’t trust Omanis or simply don’t have confidence that they can do these jobs well. But if Omanis cannot get a chance how would they get the experience and confidence?"
Only 50,083 Omanis work in the engineering sector, which employs nearly 845,000 expatriates. Even more surprising is that there are about 4,500 qualified Omani engineers who are unemployed.
Salim Al Makbali, chief executive of Construction Engineering Equipment & Maintenance, agreed that more Omani engineers needed to get jobs but said Omanis cost more to recruit and were fickle.
"Omanis want high salaries and they quickly leave the company if they get another offer somewhere else. Expatriates are more loyal and realistic in the pay structure," he said.

Source: The National