Oman News: Government Contract Awards Surge on Back of SME Growth

Oman experienced a significant expansion in government contract distribution during 2025, with the total value of tenders reaching $4.4 billion—double the previous year’s figure of $2.1 billion. This marked growth reflects a deliberate policy shift aimed at strengthening small and midsize enterprise (SME) participation in the sultanate’s procurement landscape, according to the Oman Tender Board (OTB).

Record Tender Value Reaches $4.4 Billion in 2025

The doubling of contract awards underscores Oman’s commitment to expanding economic opportunities through public procurement. A significant portion of this growth—58 percent of the total tender value—was specifically allocated to small and midsize enterprises, demonstrating the government’s strategic focus on building a more diversified business ecosystem.

Saeed Al Amri, director general of projects at the Oman Tender Board, noted that the awards to SMEs were concentrated in the minerals, oil and gas sectors, serving as a deliberate mechanism to “boost their businesses and compete with the established companies.” This sector-focused approach represents a shift in procurement priorities, with power generation, minerals extraction, renewable energy, and oil and gas development now commanding more tender value than traditional construction projects.

SMEs Capture Majority Share Across Key Sectors

The strategic distribution of contracts reflects broader economic trends. Oman’s SME sector comprises approximately 267,000 enterprises, collectively contributing $17 billion to gross domestic product in the third quarter of 2025. This represented a 6 percent increase compared to the same period in 2024, according to data from the National Center for Statistical Information, indicating accelerating momentum in the small business segment.

The growth trajectory suggests sustained expansion potential within Oman’s entrepreneurial landscape, particularly as larger infrastructure projects increasingly incorporate smaller contractors and specialized service providers.

Financing Support Fuels Small Business Expansion

Supporting this policy push, Oman’s state-owned Development Bank substantially increased lending to SMEs during the first half of 2025. Loan disbursements rose 13 percent year-on-year to $285 million, enabling the institution to extend financing to 3,716 individual enterprises.

Bank officials emphasized that enhanced financing aimed to “encourage more investments in the sultanate and capitalise on growth in support of startup businesses.” This coordinated approach—combining preferential procurement access with targeted financial support—demonstrates a comprehensive strategy to strengthen Oman’s small business sector and generate long-term economic diversification.