Government tenders key to sustaining Omani small businesses

In recent months, there have been increasing appeals from self-employed Omani business owners seeking access to some of the tenders issued by relevant government authorities. This comes at a time when many of them are experiencing a slump in business opportunities awarded by government entities, while also bearing the burden of various taxes and fees imposed on small businesses.
As a result, a number of self-employed individuals have been forced to close their businesses in recent years after struggling to maintain their operations, partly because of regulations requiring them to employ an Omani national even for relatively small-scale activities.
The lack of access to government tenders has been a recurring concern among self-employed individuals and entrepreneurs. However, this situation has recently begun to change with the issuance of Financial Circular No. 1 of 2026 by the Ministry of Finance. The circular directs ministries and other authorities to award certain specialised works and services valued at no more than RO 5,000 (approximately $13,000) to self-employed Omani nationals who are not employed elsewhere.
Self-employed individuals and small and medium-sized enterprises (SMEs) constitute an important component of economies around the world. We hope this will also become increasingly evident in Oman through policies that support, facilitate and stimulate the activities of these businesses. Many self-employed Omanis have created employment opportunities for themselves and contribute to stimulating local markets and broadening the country's private-sector base.
Therefore, it is important for the relevant authorities to establish a comprehensive set of policies and mechanisms to support these enterprises and enable them to register on the government tendering platform to compete for available opportunities. Current policies provide for allocating at least 10 per cent of the total value of various government purchases and tenders to SMEs, in addition to arrangements relating to exemptions from certain fees and temporary guarantees, as well as reductions in the cost of purchasing tender documents.
There is also a need to expand the geographical reach of government tender opportunities, while increasing their value and annual allocation, so that business owners can feel that the contracts awarded to them are sufficiently substantial to cover their annual operating expenses.
Success in this area would encourage entrepreneurs to organise and expand their commercial activities. Such measures could help stimulate their businesses in the future within the framework of Oman Vision 2040.
At the same time, these entrepreneurs need access to financing for raw materials, support for employees' wages, and assistance in obtaining vehicles and equipment. Consideration should also be given to transportation and operating costs, as well as ensuring that their financial dues are paid on time.
It is equally important not to overlook the impact of taxes and fees on self-employed individuals and small businesses. They should not be burdened with excessive responsibilities if they are expected to remain commercially viable. These businesses already have to meet rent, wage, electricity, insurance and other obligations, all of which represent significant fixed costs that can be difficult to sustain, particularly when additional fees and taxes are imposed.
These initiatives should be measured by a citizen's ability to establish a business, secure contracts, execute them successfully, receive payments on time and generate sufficient profit to remain operational and grow. The next phase therefore requires a shift from the concept of 'supporting the enterprise' to 'ensuring its ability to survive and grow.'