Oman’s small and medium-sized enterprise (SME) sector is experiencing impressive growth, with a recorded 141,126 registered SMEs as of Q2 2024, according to the Authority for Small and Medium Enterprises Development. This figure includes more than 120,000 small enterprises, approximately 19,000 micro-enterprises, and over 1,100 medium-sized enterprises, showcasing a dynamic and expanding entrepreneurial ecosystem.
Government Initiatives Fueling SME Growth
The Omani government has played a crucial role in supporting the development of its SME sector, implementing a range of initiatives designed to foster entrepreneurship and economic diversification. One such initiative, the Entrepreneurship Card, has provided substantial benefits to SMEs, including access to training programs, financing options, and critical services. By mid-2024, over 28,000 SMEs had activated their cards, with more than 10,388 new cards issued during the first half of the year, enabling businesses to tackle challenges and implement sustainable growth strategies.
In addition, Oman’s 18 business incubators have become pivotal in nurturing new ventures, offering essential resources such as technical support, legal and financial guidance, and marketing assistance. Currently, these incubators support 85 enterprises, creating 198 new jobs and generating revenues exceeding OMR 800,000 (USD 2.08 million) in the first half of 2024. These efforts are instrumental in stimulating local entrepreneurship, particularly among the youth.
Land Access and Financial Support Driving SME Success
To further enhance the competitiveness of industrial SMEs, Oman’s land usufruct program provides access to land at minimal costs, with exemptions for the first two years. Through the Tatweer platform, 44 land approvals were granted in the first half of 2024, offering SMEs the opportunity to establish operations at reduced operational costs.
Additionally, Oman’s financial support for SMEs has been significant. The Azm lending portfolio approved 312 financing requests, amounting to over OMR 30.7 million (USD 79.7 million) in funding. This financial backing, combined with tailored consulting services, has helped 2,336 SME owners overcome challenges in areas such as legal compliance, marketing, and finance. The government’s Entrepreneur Readiness Programme has further bolstered entrepreneurship skills, training 830 individuals between January and June 2024.
Oman’s Supportive Environment for Foreign Investment
With these ongoing initiatives, Oman continues to position itself as an attractive destination for business setup and investment, particularly for foreign investors in Oman. The government’s commitment to fostering a robust and diverse SME sector is complemented by a favorable environment for company formation in Oman, including the option for 100% foreign-owned businesses in Oman.
If you are looking to explore business opportunities in Oman, understand the steps for business registration in Oman, or learn about the legal requirements for business in Oman, Soutien Group can guide you through the process of company incorporation in Oman and help you navigate the cost of company formation in Oman.
Contact us to learn how we can support your market entry into Oman and help you take advantage of the country’s thriving SME sector and favorable investment climate. Let us help you successfully establish your business in Oman.
