The Small and Medium Enterprises Development Authority (Riyada) has signed a cooperation program with several commercial banks across the Sultanate of Oman.
This initiative aims to provide entrepreneurs and small and medium enterprises (SMEs) with access to financing, alongside an integrated package of financial and non-financial solutions.
The program is designed to foster the growth, expansion, and long-term sustainability of SMEs in Oman.
According to the statement, this step aims to enhance the business environment and support the growth of small and medium enterprises as part of integrated efforts between the government and banking sectors to expand the scope of support provided to entrepreneurs.
The cooperation program aims to create a more efficient and adaptable financing system by developing tailored financial products that cater to the diverse needs of small and medium enterprises at different stages of growth.
Additionally, the program will offer incentives and banking facilities, conduct joint training and awareness initiatives, promote financial literacy, foster knowledge exchange between partners, and establish shared guarantee and financing mechanisms to mitigate risks and stimulate increased funding for this vital sector.
The Riyada-Omani banks collaboration reflects the national focus on empowering small and medium enterprises (SMEs) as key drivers of economic growth. The SME sector in the Sultanate of Oman is experiencing significant expansion, with over 270,000 registered SMEs, including more than 130,000 registered with Riyada.
Additionally, nearly 30,000 enterprises have obtained the ‘Entrepreneurship’ card, highlighting the sector’s growing importance and the government’s support for its development.
The signing of the program follows ongoing efforts by the banking sector, supported by the Central Bank of Oman, to increase financing for SMEs. The goal is to allocate at least 5 percent of commercial banks’ portfolios to this sector.
Furthermore, this program by Riyada is expected to deliver significant economic and social benefits by supporting the creation of sustainable job opportunities for Omani citizens. It will enhance economic activity across various governorates of the Sultanate of Oman, while also increasing local added value, localizing industries, and facilitating knowledge transfer.
Moreover, the program will enable SMEs to play a crucial role in building an innovation-driven, knowledge-based economy, as per the statement.
