Riyada gives impetus to SMEs

The Sultanate of Oman has a well-strategised model for supporting Small and Medium Enterprises (SMEs) and has revolutionised the offers and incentives to these startups and other small scale industries.

Recently, the Authority for Small and Medium Enterprises Development (Riyada), Oman’s arm for the development of SMEs, issued a detailed statement on incentives offered to owners of small and medium enterprises (SMEs) to write off the SME licence fees.

The incentives targeted SMEs operating in agriculture and fisheries, manufacturing industries, services, logistics and related activities, as is mentioned in the rating by the ‘Invest Easy’ portal specified by the Ministry of Commerce, Industry and Investment Promotion (MoCIIP).

Riyada is part of the executive, legislative, and other general government support industries. It aims at strengthening SME’s contribution to the local economy through a wide range of business advisory services and training programmes.

Riyada, as part of supporting the micro, small and medium enterprises with an entrepreneurship card, has revised, in accordance with the Ministry of Labour Decision 12/2021, the fees for issuing and renewing permits of the expatriate workforce which is considered to be a milestone in the course of supports to the SME.

Accordingly, the new fees for issuing and renewing permits of the expatriate workforce would be RO101 if the request is for one to five workers.

The fee will be RO151 if the application is for 6 to 10 workers and with the requirement to recruit at least one Omani.

RO1,001 will be charged for licensing the practice of work and recording the data of the worker to occupy the professions specified in the annex related to the decision.

Riyada has also initiated taking into account that 50 per cent discount will be given to establishments applying Omanisation rates, and 25 per cent discount for establishments that employ at least one Omani in accordance with the economic stimulus plan.

training programmes

As for training the local workforce in various areas, Riyada has successfully completed scores of training programmes, and recently, on-the-job training for as many as 160 Omanis has been approved by Riyada.

It has also stipulated that the Ministry of Labour will pay 100 per cent of the salary in the first year. However, the classification is such that RO 500 per month will be paid for graduates, RO 400 for university diploma holders, and RO 300 for general diploma holders. In the second year, 50 per cent of the salary will be paid.

There were 1,035 applications, of which 875 are under review, and those applications that meet the conditions will be approved soon. Riyada aims to train 3,000 job seekers for jobs, which will improve the competitiveness of the SME’s in the country.