Oman's Ministry of Finance Enhances Support for SMEs with New Financial Circular

In a significant move aimed at bolstering the growth of small and medium enterprises (SMEs) within the Sultanate, the Ministry of Finance in Oman has issued an important directive. On February 16, 2025, Financial Circular No. (1/2025) was released, mandating all government-related entities to prioritize awarding tenders up to RO 25,000 to SMEs owned by Riyada cardholders.

A Closer Look at the Circular's Implications

This directive encompasses ministries, units, public authorities, institutions, and government companies. The decision underscores a strategic effort to enhance local entrepreneurship and ensure that SMEs are given due opportunities in national projects. This initiative is not only expected to foster economic diversification but also to empower local business owners.

Key Provisions of the Circular

1. Tender Awarding: All government-related entities must award tenders for supplies, works implementation, and service provision that do not exceed RO 25,000 to eligible SMEs.
2. Coordination Efforts: There is a call for improved coordination with the Follow-up Committee of the National Local Content System to address challenges in tender allocation processes.
3. Auditing and Compliance: Internal audit units across ministries and government entities are tasked with ensuring adherence to this new directive, reinforcing the importance of following established systems and laws.

Why This Matters for Oman's Economy

The emphasis on SMEs is a testament to Oman’s dedication towards nurturing homegrown businesses, which play an integral role in economic stability and growth. By mandating government contracts to be awarded to qualified local enterprises, the circular aims to strengthen the fabric of the Omani economy, encourage self-sufficiency, and create jobs within the country.

As Oman continues on its path toward economic diversification, initiatives like this demonstrate a clear commitment to supporting small businesses as key players in achieving sustainable growth. This is an exciting development for SME owners across the Sultanate who stand to benefit from increased access to government contracts.