Muscat: Ministry of Finance (MoF) has issued Financial Circular 1/2025 directing all ministries, public authorities and government entities to award tenders for supplies, services and works valued  up to RO25,000 to small and medium enterprises (SMEs), who own a Riyada card.

The circular aims to strengthen the role of SMEs in the Omani economy, encouraging their participation in government tenders. In addition, the ministry stressed the importance of collaborating with the Follow-up Committee of the National Local Content System to address challenges related to the tender process. It also urged ministries, government agencies and state-run companies to liaise with internal audit units to ensure compliance with the circular.

H E Said bin Mohammed al Saqri, Minister of Economy and Chairman of Tender Board, highlighted the significant impact of local content programmes. “These programmes play a vital role in supporting the private sector, localising national industries and ensuring optimal use of public funds. One of the main objectives is to stimulate SMEs and the entrepreneurship sector, increasing their share of government tenders,” he said.

He noted the tangible growth in SMEs and their expanding presence in various sectors, including economic diversification and innovation. The new move, he explained, aligns with Oman’s broader social and economic priorities, fostering youth participation and entrepreneurship, ultimately contributing to a diversified and sustainable economy.

The decision to raise the tender value to RO25,000 further supports the National Policy for Local Content, a key initiative aimed at economic diversification and job creation. “By expanding government tender opportunities to SMEs, we continue to enhance the entrepreneurial sector’s role in driving innovation and sustainable growth,” H E Saqri added.

According to the Ministry of Economy, there are 145,750 SMEs registered with Authority for Small and Medium Enterprises Development and employ 192,714 workers from the national workforce. However, despite their significant number, SMEs currently receive only 12% of government contracts. This policy shift is expected to increase their share in the coming years.

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