The joint committee between the Oman’s Ministry of Finance and the Saudi Fund for Development (SFD) for managing the Medium, Small and Micro Enterprises (MSME) Support Program has signed a financing agreement in Muscat worth $39 million (RO 15 million) with the Development Bank.
The agreement to fund MSMEs was signed on behalf of the joint committee by Zahir Marhoon Al Abri, Director General of Treasury and Accounts at the Ministry of Finance and Omani side chair, and Said Mohammed Al Qahtani, Director General of Financial Operations at the Saudi Fund for Development and Saudi side chair.
Hussein Ali Al Lawati, Chief Executive Officer of the Development Bank, signed on behalf of the bank. The agreement forms part of ongoing efforts to support economic and social development in the Sultanate of Oman.
The financing agreement aims to contribute to the Sultanate’s social and economic development tracks by providing the necessary liquidity and financial resources to support the growth, sustainability, and operational needs of MSMEs across various sectors.
Key features of the agreement include providing accessible and flexible financing for developmental projects across a wide range of economic sectors, supporting small investors who are dedicated to growing their businesses, and assisting artisans to ensure long-term growth, stability, and sustainability.
The agreement also supports the Development Bank’s strategic goal to expand its lending portfolio by approximately 10 percent this year, increasing it to over $104 million (RO 400 million).
The joint committee managing the MSME Support Program was established in 2022. Since its inception, it has provided a total of $11.7 million (RO 45 million) in funding to the Development Bank, highlighting the strengthening partnership between Oman and Saudi Arabia in promoting a robust and sustainable entrepreneurial ecosystem.
