The Government Projects, Tenders, and Local Content Authority has enabled small and medium enterprises (SMEs) to gain broader access to government contracts, in line with Oman's efforts to strengthen this vital sector, which serves as a cornerstone of the national economy, a source of job creation, and a driver for the development of national projects. This direction aligns with the goals of Oman Vision 2040.

Over the past period, growing attention has been given to supporting entrepreneurs, with the launch of various initiatives and legislations—most notably, incentive policies introduced by the Authority, which include exempting SMEs from registration and temporary insurance fees, reducing the cost of tender document purchases, and directly awarding part of government projects to these enterprises.

As a result, the number of SMEs benefiting from government contracts rose to 370 between 2022 and 2024, representing about 15% of all registered enterprises. Officials and entrepreneurs told Oman Daily that expanding SME participation in government contracts could increase GDP growth by 0.5% to 1.5% annually, while also enhancing competitiveness, reducing dependence on imports, and building integrated local supply chains that strengthen the resilience of the national economy against global challenges.

Government Facilitation

Eng. Ghalib bin Amer Al-Hinai, Head of the National Office for Local Content at the Authority, said that the institution is committed to empowering SMEs as a key contributor to the economy. Several incentive measures have been adopted over recent years to increase their opportunities to enter the market and compete for government contracts and tenders.

He explained that about 2,400 SMEs with Riyada Cards are registered with the Authority, including 1,600 micro-enterprises, 730 small enterprises, and 75 medium-sized enterprises. This reflects rising awareness among entrepreneurs about the importance of registration and the benefits of government support. These businesses have benefited from measures such as fee exemptions and reduced costs of tender documents, which have eased financial and administrative burdens and boosted competitiveness.

Al-Hinai added that government policies included directly awarding 10% of government projects to SMEs, with an additional 10% through subcontracting, raising the number of SMEs benefiting from government contracts to 370 between 2022 and 2024—about 15% of all registered enterprises.

He stressed that SMEs are viewed as a cornerstone of local value creation and job opportunities for Omanis. The Authority is also developing new regulatory tools such as the Local Content Certificate and the Mandatory List to ensure fair competition and stronger SME presence in government supply chains.

Empowering Enterprises

Al-Hinai noted that recent positive indicators prove the success of government efforts in integrating SMEs into projects and tenders. Micro-enterprises accounted for 230 beneficiaries (13.7% of total registered), while 130 small enterprises (17.8%) and medium enterprises (16.9%) also benefited.

He emphasized that support is not limited to traditional sectors such as contracting, construction, and maintenance, but extends to emerging strategic sectors such as electromechanical works, ICT, pipeline networks, and engineering consultancy—fields with rising demand in major national projects. The Authority is also encouraging entrepreneurs to utilize digital platforms, particularly Etimad (Esnad), which has become a central tool for tendering and project tracking.

Boosting GDP

Mazen bin Saif Al-Maawali, CEO of Ahlam Samad Trading & Contracting, stated that increasing SME participation in government tenders could raise GDP by 0.5% to 1.5% through economic growth, job creation, and innovation—especially with effective government support and enabling legislation.

He explained that broader SME involvement in government projects helps increase employment rates, as these enterprises tend to prioritize local hiring, thus reducing unemployment and enhancing national skills.

Al-Maawali added that SMEs also help reduce import dependency by offering locally produced alternatives, boosting self-sufficiency and reducing the trade deficit. They also foster innovation by developing new solutions, transferring knowledge, and adopting technologies suited to local needs.

He cited international examples: the U.S. requires 23% of government contracts to be allocated to SMEs, while Singapore provides financial and technical support to help SMEs participate in tenders—proving that supportive legislation and facilitation are essential to raising SME involvement in government projects.

Wider Economic Impact

Ahmed bin Said Al-Shanfari, CEO of Modern Development Trading & Contracting, said that raising SME participation in projects and tenders could directly increase their GDP contribution by up to 2% annually in the coming years, leading to broader economic benefits.

He added that this expansion creates jobs across multiple sectors, since SMEs often hire Omanis at higher rates, which helps integrate more young talent into the workforce.

Al-Shanfari emphasized that SMEs also reduce reliance on imports by producing goods and services locally, strengthening self-sufficiency and enabling competitive local industries. Their agility allows them to adopt innovations and technologies faster, boosting market innovation.

He pointed to South Korea and Singapore as successful models, where SMEs were integrated into large industries and government projects through consistent support, guidance, and training.

Horizons for National Contribution

Hilal bin Salem Al-Saadi, CEO of Qulaa Al-Malda Trading & Contracting, said that expanding government projects and tenders for SMEs opens wide horizons for boosting the national economy and raising income levels. He explained that SME growth strengthens fair competition and builds a balanced local economy.

Al-Saadi stressed that enabling SMEs in both government and private projects creates new job opportunities for citizens and fosters product and service diversification to meet rising local demand while increasing Oman's competitiveness in regional markets.

He concluded by emphasizing the importance of continuous financial and technical support for SMEs through funding programs and training initiatives to ensure sustainability, strengthen competitiveness, and advance Oman's Vision 2040 goals of building a diversified, knowledge-driven, and innovation-based economy.