Complex Made Simple

Oman is where SMEs currently thrive

There was a 27.8% increase in the number of micro, small and medium enterprises (MSMEs) in the Sultanate as of the end of October 2021.

The SMEs Development Authority recently signed an MoU with Oman Tourism Development Company Oman recently witnessed the launch of the $7 billion Liwa Plastics megaproject Development opportunities will be announced for 10 investment complexes

There was a 27.8% increase in the number of micro, small and medium enterprises (MSMEs) in the Sultanate as of the end of October 2021.

The total number of MSMEs registered reached 60,340, compared to 47,220 during the same period in 2020, according to data issued by the National Center for Statistics and Information.

Muscat Governorate ranked first in the number of MSMEs with 20,422 establishments, an increase of 29.2%, followed by the North Al Batinah Governorate with a total of 9,508 establishments, an increase of 27.5%, while Al Dakhiliyah Governorate ranked third with 7,382 establishments, an increase of 23.8%.

An SME MOU boost  

The SMEs Development Authority recently signed an MoU with Oman Tourism Development Company (Omran Group). The strategic collaboration aims at providing further opportunities for SMEs working in the tourism sector.

Image source: Times of Oman

The agreement also aims to provide impetus to the role of tourism incubators and areas related to operating facilities, as well as creating products and services that are viable for the SME ecosystem in this sector.  

Megaproject launch

Oman recently witnessed the launch of the $7 billion Liwa Plastics megaproject located at Sohar Industrial Port.

The successful completion of the complex is part of the government’s plans to diversify sources of national income and promote downstream manufacturing investment opportunities in the petrochemicals sector.

The project has the potential to stimulate investments in downstream industries and SMEs in a strategy to drive sustainable development.   

Image source: Times of Oman

The In-Country Value (ICV) generated by the project during its construction phase amounted to approximately $1.5 bn, which was spent on the procurement of local goods and services, as well as training and support for SMEs.

The project aims to strengthen the industrial sector by producing 880,000 tons annually of polyethylene (the basic raw material at the heart of about 40% of all types of plastics produced worldwide) and about 300,000 tons per year of polypropylene, which will increase Oman’s production of the two polymers to 1.4 million tons per year.

Launch of Madayn

Local and foreign companies can invest in Oman’s industrial and allied sectors, following the launch of the Madayn Investment Complexes Project.

The project enables investing companies to develop specialized industrial estate complexes and also offers an opportunity for SMEs to enter the industrial sector.

Development opportunities will be announced for 10 investment complexes in Sohar, Al Buraimi, Samail, and Sur industrial cities in a variety of sectors. The activities of the investment complexes will represent a variety of sectors including multi-industries, food, plastic, and logistics industries.

Incentives include exemption from rental value for a period of 2 years for all new projects, followed by a reduction in the rental value for a period of 3 years by 50% for contracts concluded from 2021 to 2024.

Located about 9 km away from Thumrait Air Base towards Marmul, the 4 million sqm area of Thumrait Industrial City will focus on mining industries such as gypsum and limestone industries, in addition to light industries related to building materials like cement products. Thumrait Industrial City will also be home to several support services such as vehicle maintenance workshops, cold and dry storage facilities, a fuel station and a truck weigh station.

Space has also been allocated for commercial projects such as car showrooms, cafes, rest houses, and workforce accommodation, which will be developed through partnerships with the private sector as investment opportunities.

Madayn is currently working on the infrastructure works of phase 1 at a cost of approximately $23.4 million in order to develop an area of about 3 million sqm of infrastructure.  

Also, work is in its final stages to award the tender for road and infrastructure construction of Mahas Industrial City on an area of 1 million sqm and at a cost of approximately $15.6 mn. The tender is expected to be awarded by the end of December this year.