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Deal by Design
Welcome to this edition of Law Update, focusing on the evolving M&A landscape across the MENA region. With deal activity and value continuing to grow, the region is seeing increased investor interest alongside a changing regulatory environment.
This edition explores key legal and market developments affecting M&A transactions, including regulatory reforms, foreign investment, governance, due diligence and deal structuring across the region.
On 31 August 2025, the Oman Ministry of Labour issued a new Ministerial Decision (523 of 2025) (the “Decision”) which amends the Oman Labour Law (Royal Decree No. 53 of 2023) and permits employees to work remotely, subject to the conditions set out within the Decision.
The Decision seeks to align the Oman working culture with the global drive towards flexible and remote working. This development comes as a welcome change across Oman to promote and encourage local talent whilst remaining competitive with other markets and other jurisdictions, and it is clear that Oman is accommodating greater flexibility to retain its existing workforce.
The Decision
The Decision provides for various obligations on both employers and employees when undertaking remote work. Specifically, the Decision states that an employer and an employee may agree to a remote work arrangement (either on a full time or part time basis), and in such cases, this arrangement must be documented in writing.
Employers are obligated to:
Employees who work under a remote work contract must:
Where a remote work arrangement is agreed between an employer and an employee, the parties must enter into a remote work contract which must include certain provisions including but not limited to the employee’s details, the date on which the remote work arrangement shall commence, hours of work, the details of any technology provided by the employer, a performance management process, health and safety obligations, and confidentiality obligations.
Conclusion
Despite the historic position that all employees must be based at their employer’s office during their working day, Oman is shifting away from this to more flexible working arrangements. This is a welcome approach from both a business and an employment perspective, and it is likely that many businesses will be keen to implement some form of flexible working in the future. Flexi-working provides employees with a greater degree of flexibility to manage their personal lives whether that be childcare requirements or other commitments, without affecting their work. From a business perspective, providing employees with a greater level of independence is likely to increase their job satisfaction thereby increasing productivity and work output.
Employers who do wish to adopt a remote working arrangement with their employees should ensure to undertake various measures before implementing a remote working arrangement. This may include training to employees who may either approve or supervise remote working team members, preparing the relevant employment contracts in compliance with the Decision, and implementing policies and
procedures surrounding the remote working arrangement. Types of policies that employers should consider having in place prior to permitting remote working includes, but is not limited to, appropriate IT use, health and safety, confidentiality, and data protection.
We look forward to working with you to ensure that you are fully compliant with the Decision. Please let us know whether you wish to up a meeting or call to discuss further.
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