MUSCAT : The initiative forms part of the Development Bank’s broader strategy to introduce innovative financing tools that address challenges faced by promising companies, particularly during expansion phases. The program establishes a risk-sharing mechanism with partner banks to enhance credit confidence and support sustainable private sector growth.
Under the scheme, Sohar Islamic will provide Sharia-compliant financing to eligible Omani companies seeking to expand operations or implement new projects in priority productive and service sectors. The Development Bank will guarantee at least 50 percent of the financing value that meets the programme’s criteria, with guarantees potentially rising to 80 percent depending on the project’s size, nature, and economic feasibility. The arrangement is expected to reduce lending risks and encourage greater financing flows to the private sector.
The agreement was signed by Hussein bin Ali Al Lawati, CEO of the Development Bank, and Abdul Wahid bin Mohammed Al Murshidi, CEO of Sohar International.
Al Lawati said the programme would enable Omani companies to move into advanced growth stages, noting that risk-sharing with partner banks allows support for a larger number of enterprises, fostering investment, job creation, and stronger local and regional market presence. He added that cooperation with Sohar Islamic enhances access to Sharia-compliant financing across various governorates.
Al Murshidi emphasised that empowering small and medium enterprises requires more than liquidity, highlighting the importance of robust risk management frameworks and disciplined capital allocation. He described the partnership as a strategic step toward strengthening confidence in SME financing and expanding opportunities for promising projects in priority sectors.
He added that the initiative is expected to stimulate employment, increase local added value, and enhance export capabilities, directly supporting national goals of economic diversification and private sector competitiveness.
The loan guarantee programme has been designed as a scalable model, allowing future expansion to additional banking partners. Officials said the initiative will help companies transition from planning to implementation, stimulate investment, promote non-oil exports, and reinforce Oman’s diversified and resilient economic framework.
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