The total added value of private institutions in Oman reached RO 8.528 billion in the second quarter of 2024, according to preliminary figures released by the National Centre for Statistics and Information (NCSI). This reflects the significant contribution of the private sector to Oman’s economic landscape, accounting for 81% of the country’s GDP at current prices for the quarter.
However, this was a slight dip from the 81.5% recorded in the second quarter of 2023, pointing to a relatively stable private sector performance despite global and regional economic challenges.
Breaking down the figures, large enterprises led the way, contributing RO 6.380 billion to the total added value, which represented 60.6% of the overall figure. This segment of the private sector saw a healthy 4% year-on-year increase, underscoring the resilience and ongoing growth of large businesses in Oman. Key sectors such as oil and gas services, manufacturing, and construction were pivotal in driving this growth.
Medium enterprises followed with an added value of RO 642.900 million, accounting for 6.1% of the total, reflecting a robust 5.2% increase compared to the same quarter in 2023. This growth highlights the expanding role of medium-sized companies in Oman’s economic development, particularly in sectors such as retail, hospitality, and logistics, which have seen increased demand as the country’s population and business activities grow.
Small enterprises added RO 673.300 million, representing 6.4% of the total added value. Although their contribution grew by 1.6%, this segment faced more moderate growth as compared to their medium and large counterparts.
Small businesses, particularly in areas like tourism, small-scale manufacturing, and food services, continue to be integral to the economy, providing employment and fostering innovation in niche markets.
Micro enterprises, which include very small businesses and individual entrepreneurs, contributed RO 832 million, representing 7.9% of the total added value. This segment recorded a 1.9% year-on-year increase. Micro enterprises, often considered the backbone of local economies, play a critical role in providing services at the community level, especially in areas such as artisanal products, personal services, and small retail operations.
Employment in private institutions also saw a modest rise, with the number of employees increasing by 0.5% to reach 1,781,643 by the end of Q2 2024, compared to 1,772,582 in the same period of 2023. This indicates that private businesses are cautiously expanding their workforce despite global uncertainties. The private sector remains a vital engine for job creation in Oman, with sectors like construction, trade, and services being key employers.
The number of registered establishments in the private sector also grew significantly, reaching 252,312 by the end of the second quarter of 2024, marking a 10.9% increase compared to the same period in 2023.
This sharp rise in the number of businesses reflects an improving business environment, as well as the government’s support for entrepreneurship and small and medium enterprises (SMEs). The increase also highlights the growing interest in establishing new ventures, driven by reforms aimed at diversifying the economy and reducing dependency on oil revenues. — ONA
Source :Oman Observer