Oman has initiated a five-year strategy to increase its small and medium-sized enterprise sector, aiming to strengthen further private-sector development as the sultanate redoubles recent fiscal benefits and regains investment-grade status.
Oman News Agency reported that the SME Sector Implementation Plan 2026-2030, which has been announced by the Small and Medium Enterprises Development Authority, or Riyada, is aiming to assist the SMEs in gaining easier access to markets, enhance their competitiveness, and increase the contribution brought to the economy by the sector.
Oman News Agency indicated that the plan promotes innovation and entrepreneurship, coupled with encouraging the shift in the economy to a knowledge-based economy.
The initiative is a part of the Oman Vision 2040 and the Eleventh Five-Year Development Plan, which emphasize the development of the private-sector, diversification, and creation of new jobs.
This will be launched after Fitch Ratings upgraded Oman to investment-grade status earlier this month, increasing the long-term foreign-currency rating of the country to BBB- rather than BB+. Fitch referred to more robust government finances, a greater cut in government debt, and a better external position.
The ONA report stated, “The implementation plan is based on several key strategic pillars, most notably: market access and value chains, financing and investment, enhancing local content, and developing a culture of entrepreneurship, skills, and innovation.”
It added that “These pillars were developed through a participatory approach with contributions from several government and private entities supporting the SME sector, and are based on studies, benchmarking, and international best practices.”
It is also planned to implement a set of specific programs and initiatives that address various stages of SME development.
These are the efforts to enhance expansion and export preparedness, combined financing programs, initiatives to boost handicrafts and the creative economy, and the establishment of a network of entrepreneurship centers across the governorates of Oman.
Riyada indicated that with the plan in place, there would be enhanced sustainability of SMEs, generation of quality job opportunities, and empowerment of entrepreneurs to develop viable and scalable businesses, which would boost the competitiveness of the national economy.
Oman has gone a long way to enhance fiscal discipline, which has helped lower government debt to approximately 36 percent of the GDP in 2025 compared to approximately 68 percent in 2020.
As the prospects are stable, Fitch projects the budget deficit to remain at a manageable level of about 1 percent of GDP in 2026 and 2027, expecting an average Brent crude price of $63 per barrel. The fiscal breakeven oil price is projected to be approximately $67 per barrel during the same period.
