Oxford Business Group (OBG) has commended the Sultanate’s support to small and medium enterprises, an action described by OBG as a measure to foster economic diversification.
In its recent 2020 report, OBG quoted the example of Oman’s support to startups. In this direction, the British economic research institution said that the Omani government set up entrepreneurship financing instruments like Al Rafd Fund, which lends support to SMEs alongside the Public Authority for Small and Medium Enterprises, Riyada, which proved to have played a significant role in enhancing small businesses and supplementing economic growth.
OBG pointed out that this strategy yields fruit, noting that, according to data of the National Centre for Statistics and Information, the number of SMEs registered with Riyada rose by the end of May 2020 to 44,197 as against 39,473 by the end of May 2019.
The British research institution also noted amendments made to the Tax Law in the Sultanate as a means of alleviating financial burdens on SMEs, which, it said, will eventually enhance economic growth.
OBG stressed that small and medium enterprises are a prime mover of economic growth and employment worldwide. SMEs provide 33% of Gross Domestic Product (GDP) and employ 45% of manpower in high-income countries, while, in developing economies, SMEs provide 60% of GDP and employ 70% of manpower, according to OBG.
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