The issue of nationalisation, or replacing expatriate workers with locals, is a serious business in Oman.
For one, the authorities are worried about the job prospects for nationals. For another, Omanisation could improve the sultanate's record in a US report dealing with trafficking in people.
Knowing about real unemployment rate is not an exact science in Oman. By one report, the jobless rate stands at about 15 per cent of eligible Omani nationals. Yet actual figures are most likely to be higher in rural areas and among women. Still, available statistics point out disturbing facts about demographics. About 43 per cent of the population is below 15 years of age. Many will enter the job markets in the next few years.
Foreign workers soaked up 79 per cent, or 580,000 private sector jobs, in July 2007. Locals represented about a quarter of employment in the private sector only a few years ago. Private sector firms increased their dependence on foreign workers as a rise in oil prices opened up fresh opportunities to bring in expatriates.
However, officials seem to have reached a conclusion that only a ban on visas for numerous professions would force companies to consider hiring locals in certain jobs. In late July, the Ministry of Manpower stopped issuing visas to companies engaged in the following activities: import and export, cleaning, barbershop, laundry, electronic repair, garbage cleaning and selling, textile shops, mobile GSM shops, health clubs, workshops in aluminium, iron, wood, car repair and all related activities, tailoring shops and beauty parlours.
However, employers rightly complain that such a ban would undermine their business prospects. Some firms will mostly likely suffer losses because of the visa ban. At stake is creating the sort of employment opportunities that locals admire and not just jobs per se.
Trouble is, employment in the private sector seems to be the only forward, as the public sector could not promise a sizeable number of job opportunities for locals. Already, Omani nationals assume more than 90 per cent of jobs in governmental departments. Vision 2020 calls for ensuring that locals make up 68 per cent of civil servants. Still, major firms such as BankMuscat report Omanisation in excess of 90 per cent levels.
Challenge
Separately, the policy of reducing reliance on expats should help address another challenge, namely the accusation of not enough doing to fight trafficking. The 2008 Trafficking in Persons, issued by the US State Department, places Oman under Tier 3 category, the lowest. The report cites practices not allowed under international law, namely that of employers confiscating passports of foreign workers. In addition, the report considers "not sufficient stringent" the punishment of a month in prison for those charged with forced labour.
Oman had promised to improve matters related to foreign workers in the run-up to a Congressional voting of a free trade agreement with the US in the summer of 2006. Prior to voting and then approving the pact, US lawmakers had voiced concerns about mistreatment of foreign workers in the sultanate. The concerns dealt with numerous issues, including child employment. Omani officials promised to rectify the shortcomings. However, the State Department confirms that mistreatment of expatriate workers remains a concern in Oman.
Omani officials deserve kudos for taking up measures designed to improve job prospects for locals in the private sector. However, authorities should avoid undermining the country's business prospects while implementing the Omanisation policy.
- The writer is Member of Parliament in Bahrain.
