Arab News
Arab news,
Tue, Oct 14, 2025 | Rabi al-Thani 22, 1447
Oman backs entrepreneurs with record $260m in small project financing
Oman:
Oman Development Bank has financed more than
20,000 small projects across the country, with total lending surpassing 100
million Omani rials ($260 million) by the end of September, it has been
revealed.
The fisheries sector led the portfolio with 8,761
loans worth about 38.5 million rials, followed by agriculture and livestock with
3,805 loans, representing 19 percent of the total, and handicrafts with 2,898
loans, or 10 percent, the Oman News Agency reported.
These sectors are prioritized due to their role in
national food security and cultural heritage, providing sustainable income,
particularly in rural and coastal areas.
The milestone underscores the bank’s role in
supporting small enterprises as part of the government’s broader effort to
foster balanced development and self-employment under Oman Vision 2040.
Mahmoud bin Abdullah Al-Owaini, chairman of
the development bank, said the government prioritizes small projects as a means
to enhance economic and social development, empower citizens, and ensure
household stability.
“He noted that the bank offers interest-free loans
for full-time entrepreneurs to support continued production, and highlighted
initiatives that create employment, increase production, and contribute to
self-sufficiency,” the news agency reported, citing Al-Owaini.
The chairperson noted that small projects form the
nucleus of the economy and are a driver of development, serving as the
foundation of entrepreneurship.
“He emphasized the government’s direct support and
sustainable empowerment of beneficiary groups, highlighting the importance of
economic enablement for priority groups, such as youth seeking opportunities to
build their professional futures,” the ONA report added.
The bank operates under the supervision of the
Ministry of Finance, which covers interest costs for full-time entrepreneurs and
guides lending policies toward priority sectors.
It offers flexible and accessible financing
models, including interest-free loans of up to 15,000 rials covering 90 percent
of project costs for full-time entrepreneurs, accounting for 68 percent of the
portfolio.
The financial organization also provides loans at
3 percent interest for part-time entrepreneurs, covering up to 80 percent of
project costs and representing 32 percent of the portfolio.
Additionally, working capital financing is
available for up to 20 percent of the loan value, with flexible grace periods
depending on the nature of the project and its cash flows.