Oman’s Small and Medium Enterprises Development Authority (Riyada) has signed a significant cooperation agreement with ten of the Sultanate’s leading commercial banks, signaling a coordinated push to improve access to capital and support for the country’s growing SME sector. The deal, announced on April 26, aims to create a more flexible financing system and provide a comprehensive package of financial and non-financial solutions for entrepreneurs.
Quick Facts
- Pact signed with 10 Omani commercial banks.
- Total SME loan portfolio currently at RO 1.2 billion.
- Over 270,000 SMEs are registered in Oman.
A Unified Front for SME Growth
The initiative brings together key players in Oman’s financial ecosystem to streamline support for small and medium-sized enterprises. The signing event was held under the patronage of Ahmed bin Ja’afar bin Salim Al Musallami, Governor of the Central Bank of Oman (CBO), and attended by Halima bint Rashid Al Zari, Chairperson of Riyada.
The participating financial institutions include Bank Muscat, Sohar International, National Bank of Oman, Bank Dhofar, Oman Arab Bank, Ahli Bank, Ahli Islamic Bank, Bank Nizwa, Alizz Islamic Bank, and Standard Chartered Bank (Oman). The collaboration is designed to design customized financing products that better meet the needs of SMEs across various sectors.
Beyond Capital: A Focus on Financial Literacy
The program extends beyond just providing capital. A key component is enhancing the capabilities of entrepreneurs through training and improved financial literacy, ensuring that businesses are better equipped to manage their growth and finances sustainably.
Abdul Salam bin Mubarak al Rawahi, Assistant Director of the Finance Department at Riyada, stated, “The Authority, in partnership with leading commercial banks, has signed ten cooperation programmes focusing on promoting financial literacy among entrepreneurs, developing training programmes, and designing tailored financing programmes to support them and contribute to the empowerment of small and medium enterprises.”
Building on a RO 1.2 Billion Foundation
This new pact builds on existing efforts by Oman’s banking sector to support local businesses. Rashid bin Zayed al Ghassani, Head of the Financial Investment and Banking Supervision Sector at the CBO, highlighted the sector’s prior commitments.
“The signing of these memoranda with commercial banks is a culmination of the banks’ efforts in supporting entrepreneurs… This began with allocating 5% of the total loan portfolio to finance the SME sector,” Al Ghassani noted. “The total loan portfolio allocated to this sector by the banking sector alone has reached approximately RO 1.2 billion… The lending portfolio grows annually at a steady pace.”
The cooperation aims to develop joint guarantee and financing mechanisms to reduce risks for lenders and stimulate the expansion of financing available to what is considered a vital driver of Oman’s national economy.
About Riyada
The Small and Medium Enterprises Development Authority (Riyada) is the primary government body in the Sultanate of Oman responsible for developing and nurturing SMEs. It provides support, training, and resources to foster entrepreneurship and help small and medium-sized businesses grow, contributing to economic diversification and job creation in the country.
Source: Zawya
