Business owners discuss impact of removing NOC in Oman

Business owners in Oman have been discussing the impact removing the No Objection Certificate (NOC) could have on their companies.

To switch jobs in Oman, expat workers require an NOC from their employers, without which they are obligated to leave the country and return after a period of two years. The issue of an NOC is governed by Article 11 of the country’s Expatriates Residency Law.

Hamood bin Salem Al Saadi, the head of the South Al Batinah branch of the Oman Chamber of Commerce and Industry, said, “It will further disrupt the economic balance in the business environment, especially when it comes to the productivity of private sector institutions. If trained and qualified foreign workers leave their employers, it will benefit their competitors, and will therefore affect the stability, capacity and competitiveness of their current company. This will also contribute to an increase in the number of foreign workers in the Sultanate, at a time when efforts are being made to find employment for Omanis and the Omanisation of jobs is ongoing, especially those that are of an administrative nature.”

Al Saadi added that the suspension of Article 11 would also have a social impact, particularly in terms of population distribution across the Sultanate’s governorates. Migrant workers are primarily concentrated in cities, and this would, he felt, lead to an increased allocation of resources and job opportunities in these areas.

In addition, Munther bin Rashid Al Badri, the owner of Al Badri Logistics Services LLC, said that because companies might need to pay higher wages for workers to retain them in future, they would also need to hike the prices of their goods and services, which would affect the spending capabilities of people in the country.

“This could lead to many companies exiting the market, and result in a low level of competition,” he admitted. “This will reduce the competitiveness of companies, especially that of SMEs. With the high wages that companies will need to pay specialised expats, this might result in their closure.”