Impact of Oil price

Sirs I am a sudanese citizen from khartoum I am badly in need of job in muscat or salala or any town where vaccancies available.
my friend, motez abdel moneim abbas also need to work in oman possible to show to us the way of urgent contact to get a visa and job we are ready for interview and hope to reach our goals.
best respect and regards
haitham adam omer

amkk1979 wrote:

Dear friends...
Is there any impact in oman job market and oman taxation on expatriates due to downward trend of international oil price.

Hi amkk1979,

That's a very good question ...

Oman is an entirely oil-based economy and yes, if oil prices fall it certainly would have a direct impact on its resources. Compared to the likes of Saudi Arabia and even the UAE, Oman's oil production capacity at per barrel a day count is significantly lesser. Still there is already a budget deficit due to drop in oil prices. However the falling oil prices is expected to be a temporary trend rather than a permanent one. So the damage is largely limited as of now.

Despite all of these, the government has already initiated corrective measures : Other than the move to impose tax on remittances to overcome the budget deficit, the government experts have suggested cutting the defence budget by 5 per cent, spending on selective government projects, rationalisation of the oil expenditure in line with production and also revision of the royalty fee on minerals trade ...

At this point, there is no direct impact on the jobs for expatriates on account of the oil prices. But should this trend continue, then budgets starting right at the top (the government) downwards would be slashed. And that would have serious repercussions for all - locals and expatriates alike.

Oman is 100% tax-free for all locals and expatriates alike. That would not change immediately. One of the key attractions of working in Oman is this great benefit. However, there is published news in the media about passing some sort of a remittance tax rule for expatriates who transfer monies overseas. How soon the law would be promulgated has to be waited and watched.

I quote here from a local newspaper ... "A tax on the billions of rials expatriates send home every year would add OMR60 million to Oman's coffers, say Majlis Al Shura members who have called for a 2 per cent levy on remittances ... the Majlis Al Shura approved an advisory committee's proposal to help the Sultanate overcome a budget deficit due to drop in oil prices."

In any case, with or without the falling oil prices, the job market for expatriates here in Oman has become very challenging. The government's focus is to provide as many jobs and gainful employment as possible for the locals. This means all those new jobs would have to be taken away from the expatriates. And it is happening and will continue to happen. That is the reality of the situation.

Tks fr the detailed info mr.sumithran.lets hope fr d best.

The oil fluctuation doesn't seem to be stable for another 5 months, i.e. early quarter 2015 and that may impact a serious concern on the expat job sector.

As Mr. Sumitran briefly indicated, i personally feel that Oman is no more a welcoming country to real professionals, however the employers are more hiring freshers / less experienced and unskilled workforce in 70% less than the market rates (which will certainly impact a negativity on the professional growth in the longer run) - That may benefit only for short term.

The only expats, being benefitted at the current situation are the existing employees of the multinational firms that are deputing them on temporary basis from country to country (generally on higher salaries with allowances). But then that too is for a short tenure.

Expect more changes in the next couple of years and if things keep going ahead as it is, i doubt Oman will be able sustain strongly with respect to financial growth.

At least with the low oil price the subsidy is lower, so less expenditure.
I know the government is pushing hard for future tourism, to help fill the coffers. I also don't have a problem with the taxation on foreign remittances, but they should set some ceilings/limits for lower income workers.

In a rather unexpected and a very unfavorable development, the Indian government is planning to charge all remittances to India a whopping 12.5%. This is besides the 2% which is being planned by the Oman government. So in all if an Indian expatriate wants to remit money back home (and which Indian expatriate doesn't want to do so ?), he would be poorer by close to 15% of the amount remitted, which is a shocker to put it mildly.

I agree with the sentiments shared above by schaz. Life in Oman is certainly losing its sheen, professionally as well as financially.

pjjdp wrote:

At least with the low oil price the subsidy is lower, so less expenditure.
I know the government is pushing hard for future tourism, to help fill the coffers. I also don't have a problem with the taxation on foreign remittances, but they should set some ceilings/limits for lower income workers.

Dear pjjdp,
The lesser the price, the happier will be a normal consumer. However, when  you think with the perspective of oil & gas sector, that's indeed an alarming point to the related employees. The market needs a stability. Reduction of oil prices brings an increment in various other aspects that creates an unstability of the economic growth of any country.

Sumitran wrote:

In a rather unexpected and a very unfavorable development, the Indian government is planning to charge all remittances to India a whopping 12.5%. This is besides the 2% which is being planned by the Oman government. So in all if an Indian expatriate wants to remit money back home (and which Indian expatriate doesn't want to do so ?), he would be poorer by close to 15% of the amount remitted, which is a shocker to put it mildly.

Where did you hear about this? The tax is actually a 12.36% service charge on the fee that financial institutions charge per remittance. It is not an inc me tax on the remittance itself.

Deepbluesea wrote:

Sumitran wrote:

In a rather unexpected and a very unfavorable development, the Indian government is planning to charge all remittances to India a whopping 12.5%. This is besides the 2% which is being planned by the Oman government. So in all if an Indian expatriate wants to remit money back home (and which Indian expatriate doesn't want to do so ?), he would be poorer by close to 15% of the amount remitted, which is a shocker to put it mildly.

Where did you hear about this? The tax is actually a 12.36% service charge on the fee that financial institutions charge per remittance. It is not an inc me tax on the remittance itself.

It was in the local newspapers sometime last week. Let me look up the archives. Will share the link when I find.

Deepbluesea wrote:

Sumitran wrote:

In a rather unexpected and a very unfavorable development, the Indian government is planning to charge all remittances to India a whopping 12.5%. This is besides the 2% which is being planned by the Oman government. So in all if an Indian expatriate wants to remit money back home (and which Indian expatriate doesn't want to do so ?), he would be poorer by close to 15% of the amount remitted, which is a shocker to put it mildly.

Where did you hear about this? The tax is actually a 12.36% service charge on the fee that financial institutions charge per remittance. It is not an inc me tax on the remittance itself.

Hi Deepbluesea,

What you have mentioned above is indeed correct. Thank you for the clarification.

haitham omer adam wrote:

Sirs I am a sudanese citizen from khartoum I am badly in need of job in muscat or salala or any town where vaccancies available.
my friend, motez abdel moneim abbas also need to work in oman possible to show to us the way of urgent contact to get a visa and job we are ready for interview and hope to reach our goals.
best respect and regards
haitham adam omer