Oman's developing economy has relied heavily on hydraulics for its expenditure since the early 1970s. However, due to the current business environment and the new direction of the country; the 2020 and 2040 vision tends to focus on transforming the country into an economy which relies on new sector development, new entrepreneurial business startups and SMEs. Entrepreneurial startups and SMEs are significant factors in the development of sustainable growth of a national economy and it is expected that entrepreneurship in Oman will contribute greatly in its economic development and sustainability. This is since using SMEs to increase diversification in the economy, consequently, results in an increase of job opportunities. A startup entity tends to face several hurdles and challenges during the various stages of development such as rigid labor regulations, business knowledge, networks, attracting market segmentation, raising funds, procuring and operations, people management, policies and regulations and social culture. These challenges tend to arise because there is a lack of support for both business and for an existing entrepreneurial ecosystem. Business incubators can play a crucial role in developing an effective and supportive entrepreneurial ecosystem to support entrepreneurs in building their startups at different stages. The introduction of business incubators has the potential to help foster entrepreneurial talent as well as creating an environment for entrepreneurship; this is reflective of business incubators being tools at both the micro and macro level. Therefore, Business Incubation is viewed as a combination of business development processes, infrastructure and knowledgeable business experts-designed to nurture and grow startups.