Accelerating Small and Medium Enterprise Development

“Recognizing the significance of the small and medium enterprises (SME) and entrepreneurship sectors, particularly those driven by innovation, artificial intelligence, and advanced technologies, we understand the importance of training and empowering youth to leverage the opportunities this vital sector offers. It is a fundamental cornerstone of our national economic framework. Our government will actively monitor progress in these areas,” said His Majesty Haitham bin Tarik.

In recent years, the Sultanate of Oman has seen a marked increase in the number of small and medium enterprises. This growth has been fueled by various measures, legislative actions, programmes, and government support dedicated to this sector. As of this year, the number of SMEs registered with the Authority for the Development of Small and Medium Enterprises has reached 144,126.

Oman stands out among countries that have significantly improved their establishment of new and advanced projects, with SMEs playing a crucial and positive role in regional development. His Majesty Sultan Haitham bin Tarik has shown great commitment to enhancing and supporting these enterprises to elevate the national economy and foster development, emphasizing that the “Oman 2040” vision seeks to empower these institutions and cultivate a culture of entrepreneurship, positioning them as key contributors to the future economy.

During a recent meeting with private sector representatives, His Majesty highlighted the importance of strengthening public-private partnerships and maintaining regular discussions to understand the perspectives of business leaders, addressing their proposals and the challenges they face. The goal is to create an environment conducive to investment and local economic development.

Small and medium enterprises are integral to the national economy, contributing both directly and indirectly to the gross domestic product (GDP) and providing job opportunities for Omani youth through self-employment and job creation. They also play a vital role in economic diversification, enhancing competitiveness and productivity in various sectors while bolstering the economies of the governorates.

Reports indicate that government efforts to support entrepreneurship are exemplified by investments in research and development and modern technologies, which open new avenues for innovation and attract foreign investment, thereby boosting investor confidence.

The collabourative efforts of the Authority for the Development of Small and Medium Enterprises and its partners in the entrepreneurship ecosystem have led to significant progress in the Global Entrepreneurship Index. This reflects ongoing initiatives to improve the business environment, implement supportive government policies, and offer continuous incentives to entrepreneurs. The commitment to nurturing a culture of entrepreneurship and supporting the ambitions of Omani youth positions Oman as a prominent player on the global entrepreneurship stage.

The SME and handicraft industries in Oman are experiencing rapid growth, thanks to substantial support mechanisms established in recent years. These include economic stimulus packages, investment opportunities, tenders specifically for SMEs, encouragement for digital economy participation, and access to global marketing platforms that promote local added value.

Various initiatives and programmes have been launched to empower SMEs and enhance their contributions to the national economy. Key programmes include financing initiatives, the craft support initiative, the Omani Emerging Companies Programme, the Entrepreneurship Card, the Incubation Programme, the Escalation Programme, and several others aimed at providing financial backing to entrepreneurs for launching and expanding their projects both locally and internationally.

The Promising Omani Start-ups Programme is a testament to the commitment to economic diversification and financial sustainability outlined in “Oman Vision 2040.” It reflects His Majesty Sultan Haitham bin Tarik Al Said’s dedication to fostering a vibrant and prosperous economy by creating a supportive environment for entrepreneurs at all stages of their projects and enhancing their regional and international presence.

SMEs are the main drivers of the country’s economy and are regarded as essential components of strategic initiatives aimed at strengthening the productive framework. They have become a focal point in both developed and developing nations, including Oman, garnering the attention of economic and social policymakers due to their critical role in achieving the Oman’s economic and social development objectives. Consequently, Oman has adopted various mechanisms and policies to bolster the SME sector, striving to enhance its contribution and performance through various initiatives and funding systems.

The Omani economy is steadily progressing toward achieving its goals of desired economic diversification. Periodic reports on economic indicators reflect substantial growth in GDP, affirming the successful trajectory of the Omani economy based on the “Oman 2040” vision, even amid the challenges posed by successive global crises.