Interview: Faisal Al Farsi
What is the current state of the insurance and social protection sector following recent restructuring?
FAISAL AL FARSI: Oman’s insurance and social protection sector has undergone a significant realignment to improve efficiency and accessibility. The industry was fragmented, leading to inefficiencies and a lack of cohesive coverage. The July 2023 merger shifted the focus towards creating a more unified and integrated system, bringing everything under one umbrella to ensure better service delivery and cover a broader range of social protection needs.
The reforms align with Oman Vision 2040, focusing on equity, social justice and sustainable development to address present and future challenges. The system also adheres to international frameworks such as the UN sustainable development goals and International Labour Organisation conventions, promoting sustainable progress and global partnerships.
Which challenges must Oman’s social insurance and pension systems address?
AL FARSI: A notable challenge for Oman’s social insurance and pension systems is the demographic shift, particularly with the sultanate’s young population and changing employment patterns. Participation in the labour force remains critical to ensuring pension funds’ long-term sustainability, and there is a growing necessity to implement active labour market policies to employ more people. The system also needs to anticipate and address future trends – it is important to retrain and requalify workers to ensure new opportunities if future technologies displace jobs.
Where do you see a role for the private sector in expanding social insurance programmes?
AL FARSI: The private sector plays a crucial role in the sustainability and expansion of Oman’s social insurance programmes. Employers are essential partners, as they contribute to the system by employing workers and making financial contributions. While the relationship between the private sector and social insurance is not new, the current focus is on enhancing this partnership to better meet the needs of employers and employees. One way in which the private sector can play a pivotal role is by introducing top-up commercial retirement and saving planning options, particularly as the labour market diversifies. Strengthening public-private partnerships can better align employer needs with labour market policies to ensure a dynamic workforce.
By what means is the sector addressing the growing need for more inclusive coverage?
AL FARSI: Oman’s social insurance system has expanded its scope to be more inclusive, particularly for informal workers and other vulnerable groups. One update is making coverage mandatory for self-employed individuals and those with commercial registrations, ensuring that a wider segment of the population is protected. Additionally, the system now extends to non-Omanis in the private sector, with almost 1m foreign nationals covered as of February 2025. Introducing new insurance branches ensures that workers across all economic segments have access to essential protections.
Which initiatives can improve public awareness and trust in social protection and insurance systems?
AL FARSI: Various initiatives have been introduced to improve public awareness and engagement in social protection systems. For example, there is ongoing collaboration with global organisations such as UNICEF, the International Labour Organisation and the World Health Organisation to raise awareness on how beneficiaries can make the most of social protection benefits. This includes educating citizens on the responsible use of benefits like child allowances to improve their well-being. The sector has also launched behavioural insights projects in tandem with international entities that are focused on improving communication with the public.
Read More from OBG
