Bank Muscat, the flagship financial services provider in the Sultanate, and IFC, a member of the World Bank Group, signed an agreement to facilitate financing access to small and medium enterprises (SMEs) to help them expand and create jobs.
The agreement will see IFC advice the bank as it launches new products and services aimed at micro, small, and medium enterprises. Bank Muscat will also offer support to women-owned businesses, helping them become more active players in the Omani economy.
There are over 100,000 small businesses in Oman and IFC will help Bank Muscat develop a new model for reaching out to these enterprises, offering businesses not only loans, but also advisory services.
AbdulRazak Ali Issa, chief executive of Bank Muscat, said: “Small businesses are a vital part of the Omani economy. Bank Muscat is proud to sign this agreement with IFC which will help entrepreneurs to address the challenges faced by SME business and provide an environment critical to small and medium enterprises’ success.-
“In many ways, Oman’s banking system can serve as a model for other countries in the Middle East and North Africa,- said Rashad Kaldany, IFC vice-president of Global Industries.
“This agreement will help show that supporting smaller businesses not only encourages economic development, but that it also makes financial sense for banks.-
Over the years, Bank Muscat has taken several strategic steps to strengthen the SME sector in Oman. Al Wathbah, Bank Muscat’s small and medium enterprise (SME) department, has been dynamic in financing businesses and strengthening the SME foundation in Oman. Aimed at strengthening the SME sector, Bank Muscat offers a comprehensive suite of tailor-made finance solutions.
Early this year, the bank partnered with the Ministry of Commerce & Industry to launch the government guaranteed loan programme in support of SMEs. The bank also recently launched the first-of-its-kind Al Wathbah Business Zone, a unique facility that addresses a long-felt need of entrepreneurs in Oman.
The Bank Muscat- IFC agreement marks the consolidation of partnership between the two organisations. In late 2011, IFC provided Bank Muscat with a $170 million loan to boost lending to small businesses. The initiative is part of IFC’s efforts in the Middle East and North Africa to support those firms. During the 2012 fiscal year, which ended in June, IFC facilitated the disbursement of 325,000 loans worth $672 million to micro, small, and medium enterprises.
Timesofoman
