Muscat – The number of active private sector establishments in Oman declined marginally during the first quarter of 2026, although medium and small enterprises continued to expand and strengthen their contribution to business activity, according to data released by the National Centre for Statistics and Information (NCSI).

The number of active establishments fell 0.8% year-on-year to 265,918, compared with 268,033 in the corresponding period of 2025.

Medium-sized enterprises posted the strongest growth, rising 6.7% to 1,987 establishments. Small enterprises increased 4.8% to 31,369, while the number of large enterprises grew 4.5% to 762. In contrast, micro-enterprises, which account for the majority of businesses in Oman, declined 1.6% to 231,800.

The combined gross value added (GVA) generated by private sector establishments fell 1.7% to RO8.11bn in the first quarter from RO8.25bn a year earlier.

Oman’s gross domestic product (GDP) also contracted 2% year-on-year to RO10.29bn, compared with RO10.5bn in the first quarter of 2025.

Despite the overall decline in GVA, smaller businesses continued to improve their economic contribution. Micro-enterprises recorded the highest increase in value added, rising 6.2% to RO841.2mn. Small enterprises followed with 5.2% growth to RO702.2mn, while medium-sized enterprises recorded a 3.1% increase, taking their value added to RO654.9mn.

By comparison, value added generated by large enterprises declined 4% to RO5.91bn from RO6.15bn a year earlier.

Private sector employment continued to grow despite the slight decline in the number of active businesses. Total employment rose 0.9% to 1.82mn workers during the first quarter, compared with 1.81mn in the same period of 2025.

Medium-sized enterprises recorded the fastest employment growth, with their workforce increasing 7.9% to 165,195 employees. Employment in small enterprises rose 6.3% to 570,663, while large enterprises added 3.5%, taking their workforce to 453,708.

Employment in micro-enterprises, however, declined 6.7% to 632,751 workers.

The latest figures indicate a gradual shift in Oman’s private sector, with medium and small enterprises continuing to strengthen their role in business activity, employment and economic diversification, even as the overall number of active establishments edged lower.