PurposeThe objective of the study is to analyze the factors impeding Omanization policies in the selected sectors - Construction, Retail and Tourism of Oman economy and to find out the cause for the disparity created between the graduates and the jobs availability.Design/methodology/approachThe study adopted both qualitative and quantitative analysis. The interview approach was administered to collect the data from the Government officials, employers of expats in the private sector,  Omani youth seeking employment and employees from Muscat, Sohar, and Salalah.FindingsLack of coordination between government and the private sector in the formulation of Omanization policies contributing to sustained high level expatriate workers in Oman’s private sector leaving a large gap between the Omani job seekers and job availability in the selected sectors.Practical ImplicationsEvery year, the number of graduates is exceeding the number of jobs available in the economy and this paper draws attention to align this alarming issue through proper suggestions.Social ImplicationsThere is an urgent need to improve the alignment between the qualification and skills bestowed on nationals by education systems and the needs of the market through devising proper mechanisms.Originality/valueVery few studies have examined the harmony of Higher Education and market requirements in Oman. This is first hand study of its kind.