Privatization has emerged as a widespread phenomenon across various industries and sectors in the MENA region, leading to significant transformations in Human Resource Management (HRM) practices. Oman Vision 2040, aims to achieve a balanced sustainable partnership between the public and private sectors ensuring effective institutional performance. This aim guides the new framework for regulating the privatization of public services and projects. The term privatization was introduced in Oman over the past two decades, where many public services and activities were offered and managed by the government as non-profit organizations. These public sector services were described as minimal profit-producing organizations with low percentages of human resource performance with the same organizational structure and behavior that was applied nearly 40 years back. This study aims to comprehensively explore and analyse the impact of privatization on HRM practices through a systematic literature review. By examining a range of scholarly articles, reports, and case studies, this review identifies key trends, challenges, and opportunities that arise from privatization of government organizations. The findings will shed light on how privatization influences HRM functions, such as recruitment, training, performance management, and employee relations. Additionally, this review highlights the implications of privatization for employee motivation, job satisfaction, and overall organizational performance. The synthesis of existing literature contributes to a deeper understanding of the complex relationship between privatization and HRM practices, providing insights for practitioners, policymakers, and researchers seeking to navigate the changing landscape of modern organizations.