Accountants are poised to play a key role in expanding Oman’s SME sector, as the country explores economic diversification.
SMEs are seen as a significant potential source of domestic growth in Oman and an engine for private sector expansion, a key pillar of Oman Vision 2040. In December 2025, the Authority for the Development of Small and Medium Enterprises (Riyada) released its executive plan for the SME sector for 2026-30, which is intended to encourage a competitive business environment for SMEs, support innovation and entrepreneurship, and improve access to local and international markets.
The plan is built around several strategic pillars – developed collaboratively by government and private enterprises, using benchmarking and international best practice – including SME market access and value chains, financing and investment, and skills and innovation. The plan includes a wide variety of programmes targeted at different growth stages of SMEs, from incubators and entrepreneurship centres to the ability to scale-up and secure export sales.
‘Many businesses don’t have much knowledge of IFRS Standards’
Along with diversifying the economy, the new SME programme is aimed at providing meaningful employment for the younger generation, in line with Oman Vision 2040. Almost 60% of Oman’s population is under the age of 29.
Opportunity for accountants
Accountants could play a key role in this economic diversification, says Muhammad Ehsan, accountant and CEO of consulting firm FinSoul Network. Most of the entrepreneurs setting up SMEs are young, he notes: ‘These new entrants need advice and to have good consultants on board to make sure they have support to make the company grow. Having an accountant as an SME is a cost, but it is not about the money spent, but the advice given.’
Financing SMEs
Riyada’s initiatives include:
- a grants system to support innovative, technology-focused SMEs
- exploring ways in which family offices can act as angel investors
- loan facilities in partnership with the Oman Development Bank
- trade credit insurance through Credit Oman
- Oman Investment Authority’s Future Fund Oman, a growth fund focused on private sector non-hydrocarbon investments, allocates around 8% of its fund for SMEs
Other private sector funding initiatives include:
- collateral-free lending and other SME-focused products through Bank Muscat’s Al Wathbah programme
- the public-private SME Development Fund provides subsidised credit for asset acquisition and project financing
- crowdfunding platforms
Accounting firms are also playing a key role as smaller enterprises adopt the IFRS for SMEs Standard, following the government’s 2025 decision to allow Omani SMEs to use the simplified version of IFRS. ‘Many businesses don’t have much knowledge of IFRS Standards, and it can be complex for them, generally having just two or three people involved, likely not with an accounting background,’ says Ehsan.
Room for growth
More than 130,000 SMEs are currently registered with Riyada, allowing them to access its services and incentives. And there is room for more growth, according to an International Monetary Fund report, which says that SMEs generated 33% of Oman’s GDP outside hydrocarbons, well below the UAE’s 64%.
‘Omani-owned SMEs are given priority on government tenders, particularly smaller projects’
Omani SMEs are diverse, but there is a focus on construction, general services and IT-related services, says Ehsan. One area where accountants are providing key advice is for SMEs bidding for government tenders. ‘Omani-owned SMEs are given priority on government tenders, particularly smaller projects,’ he adds, which may require accounting support for the bidding process, as well as auditing to ensure transparency.
Economic power
The benefits available to registered SMEs under Riyada initiatives include training and development, digital transformation advice and a range of financing support (see box). ‘A key benefit is to get loan funding at very low interest rates, as commercial banks don’t really support start-ups or their expansion,’ says Ehsan. In 2025, Riyada supported 205 innovation-based startups, and this year aims to finance 200 projects.
Riyada itself provides SMEs with advice, last year providing general consultancy to 9,000 entrepreneurs, developing 5,939 feasibility studies, and enrolling 281 mentees in mentorship programmes. But accounting firms also provide support to SMEs for business planning, applying for loans and implementation. ‘It helps SMEs get ideas about what can be approved by Riyada, and they need advice in business management, financial literacy and auditing,’ says Ehsan.
The economic power of SMEs is no secret; worldwide, they generate 50% of global GDP and account for 70% of the workforce. With the guidance of experienced professional accountants and the extensive support offered by government, SMEs in Oman are well placed to prove their potential as the engine of economic diversification.
