New classification to benefit more small and medium enterprises

Business Monday 25/January/2016 18:39 PM
By: Times News Service
New classification to benefit more small and medium enterprises

Muscat: More companies will benefit from a new classification introduced for micro, small and medium enterprises as it has broadened the scope of the SME sector, said a senior official.
The new classification has ‘widened the number of SMEs’ as the turnover cap is higher in the new categorisation, Khalifa Al Abri, chief executive officer of the Public Authority for SME Development (riyada), told Times of Oman.
The turnover cap was OMR1.5 million previously but is OMR3 million now, Al Abri said on the sidelines of an event held on Monday to announce a new SME mentorship programme of Daleel Petroleum.
The new classification will allow medium-sized companies to be part of the SME sector and that means they are going to benefit from the support provided to SMEs in Oman, the official noted.
According to Al Abri, all the organisations will be required to follow the new categorisation and this will help enhance coordination between various parties dealing with these businesses.
Recently, a decision was issued by Ali bin Masoud Al Sunaidy, minister of commerce and industry and chairman of riyada’s board of directors, amending the classification of SMEs based on the number of workers and annual sales, according to Oman News Agency (ONA).
New classification
It states that a micro enterprise has 1-5 workers and annual sales of less than OMR100,000; a small enterprise has 6-25 workers and annual sales of OMR100,000-500,000; and a medium enterprise has 26-99 workers and annual sales of OMR500,000-less than 3,000,000.
According to ONA, the decision to revise the classification of SMEs is based on the Royal Decree No 36/2013 on the establishment of riyada and riyada’s board of directors and on the decision of riyada’s board of directors at its third meeting held on October 6, 2015.
The decision came after taking into account the views and proposals of all parties concerned, including government agencies and private sector companies, commercial banks and entrepreneurs through a seminar organised by riyada in March 2015, as well as the recommendations of the consultant in charge of the preparation of riyada strategy.
The decision introduces the new classification of micro, small and medium enterprises to pave the way for further support of these institutions.
The previous classification was as follows: Micro enterprise with 1-4 workers and up to OMR25,000 annual sales; small enterprise with 5-9 workers and OMR25,000-250,000 annual sales, and medium enterprise with 10-99 workers and OMR250,000-1,500,000 annual sales.