(MENAFN- Muscat Daily) Easing norms for SMEs the government has announced that new businesses will be exempt from Omanisation under certain conditions.
SMEs that are fully-owned and run by Omanis will not be required to hire any nationals for the first two years of their operations H E Dr Ali bin Masoud bin Ali al Sunaidy Ministry of Commerce and Industry said on Wednesday the concluding day of the SMEs symposium at Sultan Qaboos University.
H E Dr Sunaidy said these exemptions which reflect the government's 'maturity' should be considered as easing of the policy and not its abandonment. "Omanisation remains" he said.
The new decisions seen as complementary to the 14 taken at the Seih al Shamikhat meet in 2013 were announced to continued applause from the audience.
"The dialogue now is different.... There is more maturity also from the government institutions that have said 'Fine let's ease Omanisation'. If the person is totally dedicated fully an owner an integral part of his company and works day and night for his company we'll give him relief."
H E Dr Sunaidy stressed that one of the primary aims of SMEs is to create jobs for Omanis. "If they can't add to the economy and can't employ Omanis at some point then we haven't done our work. So it's easing but not going back on Omanisation."
One of the rules also requires the government bodies contracting work to SMEs to pay them within 28 days.
An SME law is expected to be in force from 2016. Other measures state that all ministries must issue periodic reports detailing projects and tenders awarded to SMEs.
Companies with at least 40 per cent government stake will be encouraged to set aside a portion of purchases and tenders for SMEs. Priority will also be given to entrepreneurs looking to set up services facilities in government buildings.
The new rules also allow government employees to avail a four-year unpaid break to pursue their own businesses.
A percentage of land specified for commerce industry and tourism across the country must be given to SMEs the measures state and call for fast tracking legal cases involving SMEs.
H E Dr Hamad al Oufi Undersecretary in the Ministry of Agriculture and Fisheries and an Al Raffd Fund board member said he was confident that the new measures would be fully implemented.
An earlier rule which stipulates that ten per cent of all government contracts be awarded to SMEs was not implemented last year H E Dr Oufi said adding that there would now be a database listing all specific products that ministries must buy from SMEs. "We feel we are in a different positive atmosphere an enabling environment for SMEs. We need to keep the momentum" he said.
H E Dr Sunaidy said he was impressed with the developments in the SMEs sector over the past two years. Since the 2013 symposium Omani small business owners have transitioned from modest work such as selling handicrafts from their homes to becoming influential contributors to the economy in their own right he said.
"They are becoming bigger and more integrated with the economy and they seem to be now becoming more demanding in terms of ancillaries" he said on the sidelines of the SQU symposium.
Moving on from basic concerns like funding "Their interest is to go further into becoming a more integrated businessperson and I think that's a sign of maturity". He contrasted small businesses that traditionally focused on products like frankincense and dates with advanced entrepreneurs who engage in fields like film-making and IT. 'We did not hear these things at Seih al Shamikhat. As a society we have matured.' The minister said that while this was a sign of progress the desired level has not been achieved yet.
"Are we done Of course not. Because if we look at the 14 decisions [from Seih al Shamikhat] two of them still haven't been implemented. So we are a long way from being done."
Sana al Humaidi an artist who owns a small business was happy with the outcome of the three-day symposium.
"They've found the problem with SMEs" she said.
She was particularly impressed with the rule requiring the government to pay SMEs within 28 days "which earlier would take months".
"The minister got the point of what SMEs need. All what he said is good...very good."
The three-day symposium saw the ministers of oil and gas manpower education among others hold discussions with entrepreneurs.
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