Oman Unveils Five-Year Plan to Boost Small Businesses as Economy Regains Investment-Grade Status
Oman has launched a five-year strategy aimed at expanding its small and medium-sized enterprise (SME) sector, seeking to accelerate private-sector growth as the sultanate builds on recent fiscal improvements and its return to investment-grade credit status.
The 2026–2030 SME Sector Implementation Plan, announced by the Small and Medium Enterprises Development Authority (Riyada), focuses on improving market access, strengthening competitiveness and increasing the contribution of SMEs to the national economy, according to the Oman News Agency.
The plan emphasizes innovation, entrepreneurship and the transition toward a knowledge-based economy. It aligns with Oman Vision 2040 and the country’s Eleventh Five-Year Development Plan, which prioritize economic diversification, private-sector expansion and job creation.
The announcement comes shortly after Fitch Ratings upgraded Oman’s long-term foreign-currency credit rating to investment grade, raising it to BBB- from BB+. Fitch cited stronger public finances, a significant reduction in government debt and an improved external position.
According to Riyada, the strategy is built around several key pillars, including expanding market access and value chains, improving financing and investment opportunities, enhancing local content, and fostering entrepreneurship, skills development and innovation.
The authority said the plan was developed through broad consultation with government bodies and private-sector stakeholders, drawing on international best practices, benchmarking and sector studies.
The strategy also includes targeted programs for different stages of SME growth. These range from initiatives to prepare businesses for expansion and exports to integrated financing schemes, support for handicrafts and the creative economy, and the establishment of entrepreneurship centers across Oman’s governorates.
Riyada said the plan is expected to improve the long-term sustainability of SMEs, create high-quality jobs and enable entrepreneurs to build scalable and competitive businesses, strengthening the overall economy.
Oman has made notable progress in restoring fiscal discipline, cutting government debt to about 36% of GDP in 2025 from roughly 68% in 2020. Fitch projects the budget deficit will remain manageable at around 1% of GDP in 2026 and 2027, assuming average Brent crude prices of $63 per barrel, with the fiscal breakeven oil price estimated at about $67 per barrel over the same period.
