SMALL BUT EFFECTIVE
SMEs have been globally recognized as the silent drivers of the economy, and the Sultanate is no exception. Omani SMEs account for 90% of the corporate sector, making up around 16% of the country's GDP and serving as a major source of employment.
The Sultanate of Oman is no stranger to foreign investment, actively working to create a business-friendly environment. Regardless of the global economic meltdown in 2008, the Sultanate's economy has enjoyed steady growth over recent years. Moving forward, a large part of those plans hinge on diversifying revenue streams and reducing the oil and gas sector's contribution to GDP by up to 9% by 2020.
Since young people constitute more than 50% of the Sultanate's population, and with the current level of population growth, Oman needs to create more and more jobs in order to reduce unemployment, currently estimated at 15%. That is why, along with diversifying away from oil and gas, the Omani government has recently put a focus on strengthening the SME sector and providing more employment opportunities for young Omanis.
Supporting small businesses has been a major priority for the Omani government for more than a decade. In 2001, The Ministry of Manpower (MoM) established the self-employment program, aiming to create employment opportunities for young Omani nationals, thereby enhancing the development of Oman's labor market, promoting entrepreneurship, and boosting employment through the support of SMEs. The Self-Employment and National Autonomous Development Program (SANAD) encourages entrepreneurial initiatives by offering mentorship, assistance in government services, and support through soft loans.
Furthermore, the Public Authority for the Development of Small and Medium Enterprises (PASMED) has provided practical training to more than 13,000 Omani entrepreneurs. Commenting on the Authority's activity, Khalifa Said al Abri, the acting CEO of PASMED, told TBY, “People with an idea come to the authority and we work with them inclusively, determining the necessary tool-kits and programs that can help them secure and flourish."
Along with the government's efforts to increase the contribution of SMEs to the national economy, the Omani banking sector has shown great support for the development of the SME sector. In 2012, the Oman Arab Bank launched a product for SME financing, named Tomouhi, or “My Ambition," which aims to provide banking services to SMEs. Meanwhile, BankMuscat has launched a financing program designed specifically for SMEs and is offering loans of up to OMR250,000. Additionally, the bank offers Omani entrepreneurs consultancy, workshops, and seminars.
The enthusiasm for stimulating SME growth in the Sultanate seems likely to continue, especially after the recent Oman Economic Forum held in March 2014 in Muscat. The forum, organized by Oman's Ministry of Commerce and Industry (MoCI), in conjunction with the Al Iktissad Wal Aamal Group, the Oman Chamber of Commerce and Industry, and Duqm Special Economic Zone Authority, aimed to attract FDI to local businesses and encourage the establishment and financing of SMEs in the Sultanate.
Additionally, the MoCI has recently revised the definition of SMEs in the Sultanate. According to the new circular, released in mid 2013 by the Central Bank of Oman, “micro-enterprises" are establishments with fewer than five workers and an annual turnover below OMR25,000, while “small-enterprises" are establishments with a number of employees ranging between five and nine, and an annual turnover ranging between OMR25,000 and OMR250,000. Enterprises employing between 10 and 99 people, with an annual turnover ranging between OMR250,000 and OMR1.5 million, are considered “medium enterprises." Under the previous definition, the number of employees was the only criteria used to define the size of an enterprise. The Ministry claims that “the new definition will enable the provision of support to SMEs in a more efficient manner."
SMALL BUT EFFECTIVE
TABLE OF CONTENTS
Interview
HE Yusuf Bin Alawi Bin Abdullah, Minister Responsible for Foreign Affairs, Sultanate of Oman
TBY talks to HE Yusuf Bin Alawi Bin Abdullah, Minister Responsible for Foreign Affairs of the Sultanate of Oman, on the skillful use of diplomacy to promote peace and security throughout the region and beyond.
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His Royal Highness Prince Mohamed Bolkiah, Minister of Foreign Affairs and Trade, Brunei Darussalam
TBY talks to His Royal Highness Prince Mohamed Bolkiah, Minister of Foreign Affairs and Trade of Brunei Darussalam, on the close ties his nation has with the Sultanate of Oman, and the potential for joint investments.
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HE Seán Sherlock, Minister of State Development, Trade Promotion, & North-South Co-operation, Republic of Ireland
TBY talks to HE Seán Sherlock, Minister of State Development, Trade Promotion, & North-South Co-operation of Ireland, on bilateral agreements, investment opportunities, and relations between the two states.
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HE Dr. Mohammad Bin Al Zubair, Advisor to His Majesty Sultan Qaboos bin Said for Economic Planning Affairs, Sultanate of Oman
TBY talks to HE Dr. Mohammad Bin Al Zubair, Advisor to His Majesty Sultan Qaboos bin Said for Economic Planning Affairs, on economic diversification, Omanization, and SMEs.
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Hilal bin Hamad Al Hasani, CEO, Public Establishment for Industrial Estates (PEIE)
TBY talks to Hilal bin Hamad Al Hasani, CEO of the Public Establishment for Industrial Estates (PEIE), on attracting investment, supporting local development, and establishing new opportunities.
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HE Said bin Hamdoon bin Saif Al Harthy, Undersecretary, Ports and Maritime Affairs
TBY talks to HE Said bin Hamdoon bin Saif Al Harthy, Undersecretary of Ports and Maritime Affairs, on the important role that the Sultanate's maritime industry is playing in promoting trade and economic activity.
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HE Yahya Said Abdullah Al Jabri, Chairman, Special Economic Zone Authority at Duqm (SEZAD)
TBY talks to HE Yahya Said Abdullah Al Jabri, Chairman of the Special Economic Zone Authority at Duqm (SEZAD), on the rise of the Duqm area, and the opportunities on offer for investors and businesses.
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HE Didier Reynders, Deputy Prime Minister and Minister, Foreign Affairs, Foreign Trade, European Affairs
TBY talks to HE Didier Reynders, Deputy Prime Minister and Minister of Foreign Affairs, Foreign Trade, and European Affairs of Belgium, on bilateral relations and maritime cooperation between the two states.
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Dr. Fuad Jaffer Al Sajwani, Minister of Agriculture and Fisheries Wealth, Sultanate of Oman
TBY talks to Dr. Fuad Jaffer Al Sajwani, Minister of Agriculture and Fisheries Wealth, on the sector's role in diversification, encouraging international investment, and ensuring stable prices.
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HE Hamed Said Al-Oufi, Undersecretary of Fisheries Wealth, Ministry of Agriculture & Fisheries Wealth
TBY talks to HE Hamed Said Al-Oufi, Undersecretary of Fisheries Wealth at the Ministry of Agriculture & Fisheries Wealth, on the role fisheries wealth can play in diversification and boosting the sector through technology.
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HE Dr. Rashid Bin Salim Al-Masroori, Executive President, Public Authority for Stores and Food Reserve
TBY talks to HE Dr. Rashid Bin Salim Al-Masroori, Executive President of the Public Authority for Stores and Food Reserve (PASFR), on the drive to ensure food security and boost local production in key sectors.
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