Entrepreneurship in Oman: Driving innovation and diversification

Over the last few years, Oman has adopted entrepreneurship as one of the most innovative means to grow the economy. Oman entrepreneurship has become a priority as the country attempts to diversify its economy away from dependence on oil and oil products. Oman has become a potential region for startups in the Gulf due to government initiatives on entrepreneurship, demographics, and accessibility to technology.

GOVERNMENT SUPPORT AND OMAN VISION 2040

The Oman Vision 2040 strategy focuses on economic diversification and fostering entrepreneurship in Oman. Government institutions, like the **Public Authority for Small and Medium Enterprises Development (Riyada) and the Small and Medium Enterprises Development Fund (SMEF), along with mentorship, training and entrepreneurship aid, provide financing. The business registration process has been simplified to support new business formations through government initiatives like Invest Easy.

Through collaborations with the private sector and universities, the government encourages entrepreneurship. Business incubators like SAS for Entrepreneurship and Sharakah provide startups with the vital components needed to launch and thrive, such as office space, funding and mentorship. These initiatives are aimed at equipping young businesses not just to survive, but to scale and overcome regional competition.

YOUTH AND INNOVATION

This entrepreneurial wave is led by Omani youth, as nearly half the population is under 25. Increasingly, young Omanis are eschewing the traditional public sector jobs for entrepreneurial pursuits, driven by the potential to innovate, generate employment and contribute to national progress. Technology and digital platforms have provided young entrepreneurs with opportunities to enter the e-commerce, fintech, renewable energy and tourism sectors.

eMushrif, which provides smart school bus solutions and Akeed Delivery, a food delivery service, are Omani startups that show local innovation and creativity. Their stories capture and inspire prospective entrepreneurs, illustrating the need for creativity and flexibility to thrive in an ever-evolving business environment.

CHALLENGES FACING ENTREPRENEURS

Oman’s entrepreneurs experience a series of challenges. Even for new businesses, a good source of cash flow/funding is very difficult to obtain. Most young entrepreneurs do not have the history of finances or collateral to get a loan and debt financing is difficult to get in the Middle East. Furthermore, a number of entrepreneurs do not have as many opportunities to engage with overseas markets and high-value migrants.

Cultural perceptions have not changed in Oman. For a long time, the society appreciated and rewarded employees with stable government positions than those with market risky opportunities. Nevertheless, there are changes where success in self-employment is appreciated due to success and promotion through state campaigns.

THE ROAD AHEAD

Entrepreneurship in Oman is characterised with a lot of promise for the future. As the nation grows, the education, innovation and digital infrastructure within the country will help create a next generation of successful entrepreneurs. The merging of digital innovation developed by the private sector with the country’s digital initiatives will help foster revolutionary changes to the entrepreneurial environment in the country.

Oman Vision 2040 goals will sustain the country’s entrepreneurial goals. The Sultanate of Oman will assist in the diversification of the local economy to assist for the new entrepreneurial goals. The Sultanate of Oman will help foster the new climate and culture of self-reliance and self-employment/entrepreneurship.

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