Oman to dump 70 per cent of its expat consultancies

Oman is calling time on expat independents and foreign consulting firms.

As the emirate struggles to release funds in order to deal with the pandemic, its government has ordered the cancellation of all foreign consulting contracts. The sultanate is one of the region’s largest countries, with its population topping 4.7 million, over a third of whom are expatriates living and working in Muscat. Its coronavirus downturn is similar to those of its immediate neighbours and is expected to spur an expat exodus caused by austerity spending.

Economic activity is now at an historically low level, and the dramatic slump in oil prices hasn’t helped. At risk is public spending on healthcare, now spiralling due to the pandemic, and fiscal deficits are expected to stay under strain and widen to some 17 per cent of GDP by the end of this year. At least 70 per cent of Oman’s expat consultants in the government and civil sectors are facing job losses, and mandatory retirement is to hit even those who’ve served the sultanate for 25 years or more. In addition, a drive to replace foreign workers with locals is under way, as stated in government’s Omanisation policy.

The policy is intended to provide better opportunities for local workers, but experienced long-stay expats believe locals aren’t interested in actually working for a living. Oman’s consultancy sector is fragmented, with the top end of the trade and its elite consultancy firms valued at a massive $100 million, but the even larger middle and lower range is mostly served by far smaller domestic and expat-owned consultancies providing for specific needs. In addition, many foreign consultants work independently, maintaining a flow of fees excluding the traditional large companies.