Oman axes foreign workers to revive domestic employment
The oil crisis and coronavirus pandemic have fuelled unemployment. The Ministry of Labour confirms the "nationalization" of some sectors. Work permits will not be renewed upon expiry. Over 25 million foreign workers live in the Gulf and make up the majority of the employment force.
Muscat (AsiaNews / Agencies) - Migrant workers in Oman will no longer be able to carry out a series of jobs, which in the future will be the exclusive responsibility of citizens in an attempt to revive the economy and the internal employment market, affected by the Covid-19 pandemic.
Leaders of the Muscat government announced the move yesterday. The local territory and the Gulf region largely depend on foreigners, paid less and less guaranteed in terms of rights and protection.
The immigrant workforce constitutes about 40% of the total workforce in the Sultanate of Oman, out of 4.5 million inhabitants. Faced with a massive economic crisis and steep drop in oil revenues, Oman and other Gulf Cooperation Council (GCC) nations have stepped up efforts to create internal jobs for the benefit of their citizens.
Yesterday, the Minister of Labor of Oman announced that "a certain number of jobs in the private sector will be nationalized". He then added that, on the expiry date, the work permits for foreigners belonging to the category and sectors involved in the reform will not be renewed.
These will include insurance companies, car dealerships, financial, commercial and administrative positions will be "limited to Oman citizens only," the ministry added. Even the work of a driver "regardless of the vehicle being driven" will be the exclusive prerogative of the locals.
In April 2020, government leaders ordered state-owned companies to speed up the process of replacing foreigners with their own citizens, especially for higher-level positions. In fact, until a few months ago, according to estimates by the Ministry of Finance, a large number of expatriates still held managerial positions and roles within state-owned companies.
Oman and other Gulf states including Saudi Arabia, the United Arab Emirates, Kuwait, Qatar and Bahrain have tried to diversify their economies in recent years and integrate millions of recent graduates into their workforce. Governments have introduced legislation aimed at favouring locals over foreigners, both in the public and in the private sector. Over 25 million foreigners live in the area and make up the majority of the population in the UAE, Qatar and Kuwait.
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