The Ministry of Commerce and Industry has specified new criteria for defining what constitutes small and medium enterprises (SMEs), according to a circular issued by Commerce and Industry Minister Ali bin Masoud al Sunaidy. The step goes in line with the provisions of Royal Decree No 19/2007 which promulgated the Director General for the Development of Small and Medium Industries. The classification is based on the number of workers and the annual sales of an establishment.

Accordingly, establishments employing less than 5 workers and having annual sales of less than RO 25,000 are designated “very small” or micro-enterprises. Establishments with 5 to 9 workers and annual sales of RO 25,000 to RO 250,000 are considered as “small enterprises”. Establishments with 10 to 99 workers and annual sales of RO 250,000 to 1.5 million are considered as “medium enterprises”.

The circular indicates that the sales of an establishment will be specified in accordance with the last audited closing accounts if the establishment is existing, and, in case the establishment is new, the calculations should be based on preliminary estimates by the management.