Oman’s Ministry of Labour’s decision to reserve many categories of jobs for citizens by limiting access to foreign workers takes forward the statutes of Omanisation plan. It supports Oman Vision 2040.
This decision restricts foreign workers from engaging in paid work in more than 200 listed professions. The decision allows workers currently employed in these professions to continue till the expiry of their respective work permits.
In the preamble to Oman Vision 2040 document, His Majesty Sultan Haitham bin Tarik affirms, “Oman Vision 2040 is the Oman’s gateway to overcome challenges, keep pace with regional and global changes, generate and seize opportunities to foster economic competitiveness and social well-being, stimulate growth, and build confidence in all economic, social and developmental relations nationwide”.
His Majesty Sultan Haitham bin Tarik lauds the committees that wrote Oman Vision 2040 document over several stages “while identifying national priorities”. The vision builds on the principles of citizenship and genuine Omani identity to modernise education, support scientific research and innovation, develop healthcare regulations and services and lay the foundations for social well-being and relevant basic services for all segments of society, His Majesty writes.
Commentators and the expatriate community should welcome such decisions that give primacy to GCC citizens’ welfare. Other benefits include boosting the country’s economy by stifling the flow of outward cash flow through monthly remittances by expatriates.
Foreign workers, including well-placed corporate executives, living in the Sultanate of Oman remitted RO 3.373 billion to their respective countries in financial year 2020, according to Central Bank of Oman data, published by Zawya news agency this January.
The combined effect of Covid-19 and shutdowns significantly reduced the total remittance in 2020. Such low outward cash flow recorded by the Central Bank of Oman was RO 3.109 billion in financial year 2012. Total remittance amounts returned to average outflows after 2012. In 2013 it was RO 3.501 billion, RO 4.226 billion in 2015 and RO 3.512 billion in 2019.
The Zawya report cites “drop in expatriate population” stagnant wages” and “the pandemic’s significant implications on employment conditions in Oman” for the drop in outward remittances. The workers’ remittances decreased by four per cent in 2020 compared to 8.3pc in the previous year.
Foreign workers’ population in the Sultanate of Oman decreased from 1.942 million in January 2020 to 1.745 million in January 2021, a drop of nearly 200,000 people, the Zawya report says. The decrease in foreign population and the pandemic are the two key reasons for the drop in outward remittances from Oman.
Although global remittances have declined, India ($89 billion), Mexico ($54 billion), China ($53 billion), the Philippines ($37 billion), and Egypt ($32 billion) remained the top five recipient countries for inflows in 2021. India receives the largest cash inflow since 2008.
Indeed, remittances boost forex reserves of the receiving country and a loss to the country of origin because its spending power decreases. For more than 55 years foreign workers living in the GCC have earned tax-free salaries and transferred funds home. Foreign workers should show their gratitude and thank GCC rulers for their benevolence.
Considering the current state of global economy, it is time GCC countries put citizens’ interest ahead of foreign workers. Countries that host foreign workers have the right to write laws to protect its citizens welfare and create job opportunities for them. Although the United Nations supports safe, orderly, and regular migration, every country has the right to write laws prioritising its citizens welfare over migrant workers.
[Sudeep Sonawane, an India-based journalist, has worked in five countries in the Middle East and Asia. Email: [[email protected]]
