VZCZCXRO9607
RR RUEHDE RUEHDIR
DE RUEHMS #0575/01 2261410
ZNR UUUUU ZZH
R 131410Z AUG 08
FM AMEMBASSY MUSCAT
TO RUEHC/SECSTATE WASHDC 9848
INFO RUEHZM/GULF COOPERATION COUNCIL COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC

UNCLAS SECTION 01 OF 02 MUSCAT 000575 
 
SENSITIVE 
SIPDIS 
 
COMMERCE ITA THOFFMAN 
 
E.O. 12958: N/A 
TAGS: ECON EFIN ELAB ETRD MU
SUBJECT: OMAN'S CHANGING WORKWEEK 
 
REF: 05 MUSCAT 541 
 
 ¶1.  (SBU) Summary:  Government officials encouraged the 
private sector to adopt a five-day workweek in lieu of the 
current six days to help prompt more Omanis to seek jobs 
outside the public sector.  In addition, financial 
institutions and a growing number of private businesses have 
taken steps to switch from a Saturday through Wednesday 
workweek to a Sunday through Thursday workweek.  The Central 
Bank of Oman and various financial institutions initiated the 
move to a Friday/Saturday weekend this summer in order to 
align Oman's finance sector with the working days of global 
financial operations.  Government business hours have not yet 
been changed, but rumors abound that it is inevitable.  End 
Summary. 
 
¶2.  (U) In May 2008, the Oman International Development and 
Investment Company (OMINVEST), a large public joint stock and 
financial services firm, changed its weekend from 
Thursday/Friday to Friday/Saturday.  Following not far 
behind, the Central Bank of Oman issued a circular in June 
instructing licensed banks to remain open from Sunday to 
Thursday commencing on July 1, 2008 in order to be more 
aligned with global financial operations and systems.  Other 
Muscat-based finance institutions, including consumer lending 
firms, chose to follow the directive as well.  On July 6, the 
Capital Market Authority announced a change to its workweek 
to foster greater synergy between the local and global 
markets.  The move also helped bring these financial entities 
into line with the Muscat Securities Market and the Muscat 
Depository and Securities Registration Company, which have 
been on a Sunday to Thursday work schedule since 1998. 
 
¶3.  (SBU) Possibly feeling some pressure from private sector 
employees and managers, the Board of Directors of the Oman 
Chamber of Commerce and Industry (OCCI) voted in late July to 
change its workweek to Sunday through Thursday.  Backing the 
move was the Director General of Employment at the Ministry 
of Manpower, Salim bin Nusair al-Hadhrami, who stated 
publicly that many oil companies and large Omani corporations 
supported changing the local weekend.  In early August, the 
Chairman of OCCI, Khalil bin Abdullah al Khonji, issued a 
statement to the press calling for all private sector 
establishments to adopt a five-day workweek in lieu of the 
traditional six days in order to encourage more Omanis to 
take jobs with private firms and further integrate the 
Sultanate into the global economy.  (Note:  The government 
has followed a five day workweek since the early 1990s. End 
Note.)  Al-Khonji did not specify which two days of the week 
companies should recognize as the weekend. 
 
¶4.  (SBU) Despite statements by public officials and 
influential private Omanis in favor of shifting the local 
weekend, the government of Oman has yet to announce a change 
in its working schedule.  On August 10, however, local 
Arabic-language daily "Al Watan" cited an unnamed "official 
source" in reporting that a government study is underway to 
determine the impact of adopting a Friday-Saturday weekend in 
the public sector, which would bring Oman into line with 
other GCC states, with the exception of Saudi Arabia.  The 
source did not provide any hint on when the government might 
institute a weekend change.  One official from the Ministry 
of Commerce and Industry told econoff August 13 that he heard 
a rumor that the government would switch to a Friday/Saturday 
weekend by September 1, while another official believed the 
move would occur on January 1, 2009.  There is speculation 
that a change could coincide with the start of the Omani 
public school year.  Classes are tentatively set to begin 
September 1, although the beginning of Ramadan could delay 
this. 
 
¶5.  (SBU) Comment:  Although changes to the local workweek 
were initiated by the financial sector for commercial 
reasons, the Government of Oman likely sees the move to a 
five-day workweek as a way to further its Omanization program 
(i.e., increasing employment of Omanis and depending less on 
expatriate labor) by giving Omanis more incentive to join the 
private sector.  While highly-skilled Omanis can earn large 
salaries in private firms, many private sector jobs have 
lower pay, longer working hours, and less perks than 
government employment.  But as increased investment and high 
oil prices fuel a local economic boom (septel), wages and 
benefits offered by private companies are likely to continue 
to improve and thus draw more Omanis away from the public 
sector.  While some may question the hesitancy of the 
government to come to a decision on adopting a 
Friday-Saturday weekend, the tentative steps in this 
direction reflect the Sultanate's long-standing tradition of 
 
MUSCAT 00000575  002 OF 002 
 
 
gradually laying the groundwork for any significant change. 
End Comment. 
GRAPPO