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Oman’s public sector reform risks brain drain

By letting go of thousands of foreign experts, Oman risks losing the know-how central to achieving economic diversification.

General view of old Muscat the day after Oman's Sultan Qaboos bin Said was laid to rest in Muscat, Oman, January 12, 2020. REUTERS/Christopher Pike - RC2FEE93ZHFJ
General view of old Muscat the day after Oman's Sultan Qaboos bin Said was laid to rest in Muscat, Oman, Jan. 12, 2020. — REUTERS/Christopher Pike

“Slimming the government apparatus is one of the prime initiatives in the Vision 2040,” public policy analyst Ahmed al-Mukhaini told Al-Monitor. In his capacity within the national development strategy, he contributed to Oman’s latest reform: the contracts of 70% of foreign experts and consultants working in civil and government units will not be renewed. 

The move is arguably one of Oman’s boldest labor market reforms in recent years. Tackling a long-standing dependence on foreign workers is key to reforming the poorly diversified rentier economy. Yet in the short-term their know-how comes in handy to drive the transition.

A diplomatic source in Muscat told Al-Monitor that Oman might “fire more people than what they need to operate efficiently” and "need to re-hire if things do not move as expected."

“We may run short of some expertise, but it will not be the end of the world because as long as we say to ourselves, ‘We do not want to lose expertise,’ we will always be dependent on foreign consultancy. We need to equip Omanis,” Mukhaini said.

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