Role of women in Oman’s bold economic shift
Empowering rural women is crucial for Oman’s economic growth under Vision 2040
As Oman continues its journey towards economic diversification under Vision 2040, one vital yet underutilised resource remains rural women entrepreneurs. These women are key drivers of economic growth and social progress, particularly in the country’s rural areas, where they operate small-scale businesses in sectors such as handicrafts, agriculture, and food processing.
However, despite their potential, rural women entrepreneurs face several challenges that hinder their full participation in Oman’s economy.
The barriers faced by rural women entrepreneurs in Oman are multifaceted and deeply rooted in sociocultural and structural challenges. Limited access to finance is one of the biggest obstacles. Many rural women lack the necessary collateral or formal financial histories to secure traditional loans.
Microfinance institutions and alternative lending mechanisms tailored specifically to the needs of rural women are essential. Establishing low-interest loan programs through public-private partnerships could enable these women to invest in their businesses and expand their market reach.
Furthermore, rural women often struggle to access essential business resources such as training, mentorship, and networks. In a rapidly changing global economy, entrepreneurs need more than just financial capital to succeed. One of the most significant opportunities for rural women entrepreneurs lies in the digital economy.
With the rise of e-commerce and digital platforms, rural women have the chance to overcome geographic limitations and reach a broader customer base, both locally and internationally. However, this potential can only be unlocked if women are equipped with the necessary digital skills.
“Digital Oman Strategy”
Government policies must focus on improving digital literacy in rural areas, ensuring that women entrepreneurs are trained in using online platforms to promote and sell their products. Initiatives such as the Omani government’s “Digital Oman Strategy” (e-Oman) should include specific provisions for training rural women entrepreneurs in e-commerce, social media marketing, and online payment systems. By doing so, these women can tap into growing global demand for unique, handmade, and culturally significant products, which aligns well with Oman’s rich heritage in handicrafts and traditional goods.
Access to capital remains a critical barrier to growth for rural women entrepreneurs. Traditional banks often have stringent lending criteria, making it difficult for women without formal business documentation or credit history to secure loans.
To bridge this gap, Oman should consider expanding microfinance programs specifically tailored to rural women. Microfinance has been a proven model in many developing economies, enabling women to access small loans with flexible repayment options.
The government could also incentivise financial institutions to offer women-friendly loan products, providing guarantees or subsidies to reduce the risks for banks. Additionally, mobile banking services should be expanded to rural areas, allowing women to manage their finances remotely and conveniently. Financial literacy programs, paired with these services, will ensure that women can make informed decisions about borrowing and managing funds.
Many rural women operate in the informal economy, running small businesses that are not formally registered. While these businesses contribute significantly to local economies, their informal status limits access to credit, government support programs, and market opportunities. Encouraging rural women to formalise their businesses is a critical step toward unlocking their full economic potential.
However, the process of formalising a business can be daunting, particularly for women with limited education or administrative experience. The government should streamline business registration processes and reduce associated costs, particularly for women-led enterprises in rural areas. Offering tax incentives and simplified regulatory frameworks for small businesses could also encourage more women to formalise their operations.
Establishing partnerships
In addition, rural women need better access to markets, both within Oman and internationally. Government policies should focus on creating linkages between rural businesses and larger supply chains. This could be achieved through public procurement policies that prioritise products made by rural women, or by establishing partnerships with private companies that source locally produced goods.
Furthermore, rural women could benefit from greater participation in international trade fairs and exhibitions, where they can showcase their unique products to global buyers.
As Oman and the rest of the world move towards greener economies, rural women entrepreneurs are uniquely positioned to lead in sustainable business practices.
Many of these women already operate in sectors such as handicrafts, textiles, and agriculture, which are deeply connected to Oman’s natural and cultural heritage. With the right support, these businesses could be transformed into eco-friendly enterprises that promote sustainability and cultural preservation.
Government policies should promote the adoption of sustainable practices among rural women entrepreneurs, such as using eco-friendly materials, reducing waste, and conserving water in agricultural ventures.
Providing technical support and incentives for green innovation, such as grants for adopting renewable energy sources, could further empower these women to become leaders in Oman’s green economy. Additionally, integrating these businesses into Oman’s growing tourism sector could create synergies between sustainable tourism and rural entrepreneurship.
To truly unlock the potential of rural women entrepreneurs, Oman needs a comprehensive national strategy that aligns with Vision 2040.
This strategy should prioritise: Targeted training and education, financial inclusion, market access and formalisation and encouraging business formalisation through streamlined registration processes and tax incentives, while connecting rural businesses to larger supply chains and international markets.
Dr Suhail Mohammad Ghouse is an Associate Professor in Marketing and Entrepreneurship at Dhofar University