The Sultanate of Oman is rolling out significant support for its small and medium-sized enterprises through a new strategy outlined in the Small and Medium Enterprises Development Authority (SMEDA)‘s 2026 Annual Plan. The initiative aims to bolster the nation’s entrepreneurial ecosystem by providing usufruct land rights and establishing 100 ready-made factories across various industrial zones.
The 2026 Vision For SME Growth
A key pillar of the new plan is the establishment of 100 ready-made factories in cooperation with entities including Madayn. This project is designed to provide entrepreneurs with immediate, turn-key industrial facilities, reducing initial setup costs and time to market.
Halima bint Rashid al Zaree, Chairperson of SMEDA, announced that the first model of this initiative, comprising 10 factories, is set to be inaugurated in the Wilayat of Nizwa. Following this pilot, the program will expand to include industrial zones in Al Rusayl, Al Suwaiq, and Musandam, among other governorates.
Lowering Barriers With Usufruct Land Rights
Alongside the factory initiative, SMEDA is granting usufruct land rights to SMEs holding an entrepreneurship card. This allows founders to utilize government land for industrial purposes for a nominal annual fee, enabling them to direct capital toward project infrastructure and operations rather than expensive land acquisition.
By the end of December 2025, SMEDA had already granted 395 usufruct land approvals for industrial use. An additional 877 plots were offered through the Ministry of Housing and Urban Planning’s Tatweer platform. Entrepreneurs benefit from flexible fees, grace periods to complete their projects based on clear business plans, and priority access to SMEDA’s financing, marketing, and training facilities.
Driving Oman Vision 2040
Alsayyid Mazen bin Saif bin Hamad al Busaidi, Deputy Chairperson of SMEDA, highlighted the critical role of SMEs as drivers of employment, innovation, and sustainable development. He emphasized that by lowering the barrier of high land costs, the usufruct rights initiative unlocks investment opportunities and promotes economic diversification, directly supporting the goals of Oman Vision 2040.
About The Small and Medium Enterprises Development Authority (SMEDA)
The Small and Medium Enterprises Development Authority (SMEDA), also known as Riyada, is the primary government body responsible for fostering the growth and development of the SME sector in the Sultanate of Oman. It provides a wide range of services, including financing, training, mentorship, and policy support to empower entrepreneurs and enhance the competitiveness of SMEs in the national economy.
Source: Zawya
