The Sultanate of Oman is intensifying its support for small and medium enterprises (SMEs) through a multi-pronged financing strategy, positioning them as a cornerstone of its Oman Vision 2040 economic diversification goals. Government-backed institutions like the Development Bank and the Inma Fund, alongside the nation’s commercial banks, are channeling significant capital to help startups and SMEs overcome financial hurdles and scale their operations.
Quick Facts
- Over RO 1.39 billion in combined 2025 SME financing.
- Development Bank offers subsidized loans at 3% interest.
- Central Bank aims for 5% SME share of total bank lending.
Development Bank and Inma Fund Lead the Charge
Government-led financing is playing a critical role in this push. The Development Bank’s financing portfolio for SMEs surpassed RO 100 million by the end of September 2025. The institution plans to inject an additional RO 110–130 million during the first half of 2026, targeting key sectors like manufacturing, fisheries, agriculture, and mining to bolster food security and industrial growth.
Complementing these efforts, the Inma Fund (the SME Development Fund) allocated approximately RO 25 million in 2025 to finance SMEs, providing another crucial source of capital for early-stage and growing businesses. These initiatives offer favorable terms, including reduced interest rates of around 3% and grace periods designed to give new projects a stable start.
Commercial Banks Scale Up SME Lending
Oman’s commercial banking sector is also stepping up its contribution. In 2025, total bank credit to SMEs from commercial banks reached an estimated RO 1.27 billion. This figure represents about 3.7% of the total banking loan portfolio as of September 2025.
The Central Bank of Oman is actively encouraging this trend, setting a target to increase the share of SME financing to 5% of total bank credit. This policy signals a clear directive for private financial institutions to play a larger part in nurturing the country’s entrepreneurial ecosystem.
Strategic Alignment with Oman Vision 2040
This coordinated financing push is directly tied to the strategic objectives of Oman Vision 2040. By strengthening SMEs, Oman aims to diversify its economy away from a reliance on oil, create sustainable jobs for its youth, and increase the private sector’s overall contribution to the national GDP.
The financing programs prioritize sectors that are central to this transformation, including technology, logistics, food security, tourism, and the green economy. This targeted approach ensures that capital is flowing to businesses that can drive innovation and build a more resilient and varied economic base for the Sultanate.
About Oman Vision 2040
Oman Vision 2040 is the Sultanate’s national strategic plan for long-term development. It provides a comprehensive framework for economic and social progress, focusing on diversifying the economy, enhancing the role of the private sector, promoting innovation, and ensuring sustainable development for future generations.
Source: Zawya
