Overview
Oman’s economy is shaped by a dual structure: a small number of large enterprises dominate output, while a growing SME sector drives employment and entrepreneurship. Balancing support for both is essential for Vision 2040’s economic diversification goals.
SMEs in Oman
SMEs in Oman account for approximately 15 percent of GDP and employ a significant share of the national workforce. The government has established Riyada (the Authority for SME Development) and multiple support programmes including financing, incubation, and training. Key challenges include access to finance, limited market access, competition from larger firms and imports, and regulatory complexity. SMEs are concentrated in services, retail, construction, and food production.
Large Enterprises in Oman
Large enterprises, including state-owned entities like OQ Group, Omantel, and Bank Muscat, along with major family-owned conglomerates, dominate Oman’s economic output. These firms benefit from economies of scale, established relationships with government procurement, and access to international markets. Large enterprises are the primary participants in major infrastructure and industrial projects. They also serve as the main vehicles for foreign partnerships and technology transfer.
Key Differences
Large enterprises generate more output per employee and have greater access to capital and markets. SMEs create more jobs per unit of investment and offer more diverse career paths. Large enterprises are better positioned for international competition, while SMEs serve local markets and fill supply chain niches. Government procurement tends to favour large enterprises, though ICV policies are shifting this dynamic.
Verdict / Bottom Line
A healthy economy requires both. Oman should strengthen SME access to government procurement, improve financing mechanisms through credit guarantee schemes, and reduce regulatory burdens on small businesses. Simultaneously, large enterprises should be encouraged to develop local supply chains that incorporate SMEs, creating an integrated economic ecosystem.