Omanisation goes full throttle

Expats are being let go by some companies on the pretext of low oil prices, said a board member of the General Federation of Oman Trade Union (GFOTU), according to reports by the Times of Oman.

Mohammad Al Faraji, board member of GFOTU and head of the Committee on Rights and Obligations, said oil prices are not directly impacting companies and are only used as an excuse to release workers.

10 per cent of private sector firms in Oman are planning job cuts according to a recent report entitled, “Employment and Salary Trends in the Gulf 2016,”released by Gulf Talent, the online job website.

Many Omani job seekers are available in the market and some companies are hesitant to hire them due to the lack of experience and skills. Others do not hire Omanis under the pretext that they cannot handle more employees and want to appear ‘vulnerable’ and in need of the government’s help.

The Ministry of Manpower has set a percentage for Omanisation in each sector, but Al Faraji said some of the companies refuse to adhere to the Omanisation standard and when asked why some companies are not hiring Omanis, he said expatriates are easier to ‘work’ with than Omanis.

According to the latest data from the Ministry of Manpower, 681 job contracts were registered on its portal between July 24 and 28. Of these, 592 were for Omanis.

Moreover, according to the new ruling, signed by Darwish bin Ismail bin Ali Al Balushi, Minister Responsible for Financial Affairs, the government is aiming at improving Omanisation rates of senior roles within a decade. Currently, 72 per cent of senior staff over the age of 60 in Oman are non-Omani in some government sectors. The ruling, contained in a circular issued on July 20, instructed government-owned companies to create a five-year plan to replace expats with nationals.

In the wake of this, Tawfiq Al Lawati, head of the economic committee at Majlis Al Shura, has called on all government firms to plan and replace expat employees over the age of 60 with well-trained and younger local expertise.

Ali Shaban, general manger of human resources at WJ Towell said that exchanging expatriates in senior positions with qualified locals is a vital part of the Omanisation plan in the country. He added:”The private sector here is planning seriously to hire skilled Omanis for senior positions. I think this can also happen in the government sector.”