20 March 2014
MUSCAT -- The Omani youth need to seize the moment by taking full advantage of a number of financing schemes that are now available for the small and medium enterprises.
This was stated by speakers at the concluding day of Oman Economic Forum here yesterday.
Khalifa bin Said al Abri, Acting CEO, Public Authority for SME Development, said in most countries the SMEs are the main provider of new job opportunities and an important contributor to innovation. About 95 per cent of the total number of companies are SMEs accounting for 60-70 per cent of the total employment, including 40-80 per cent in the manufacturing sector and about 80-90 per cent in the construction sector.
The SMEs contribute between 30-70 per cent of the added value and the ratio varies between states and the economic sectors. For example, in the export sector the SMEs account for 15-50 per cent of exports including 25-35 per cent of the exports of the manufacturing sector in the world.
Among the challenges faced by SMEs generally include the fact that banks hesitate to lend to them and ask the SMEs to provide too many documents to obtain loans. Low spending on R&D and innovation activities, being labour-intensive in nature and not going in for modern technology are among other challenges facing the SMEs.
Weak planning and management, limited use of modern technologies and risk aversion are still other challenges, said Al Abri.
What support the SMEs need? Al Abri says the SMEs need easy access to knowledge and skills; funding' resources; business opportunities; and access to markets.
As per the Loan Guarantee Programme, SMEs get loans without collateral from commercial banks up to a maximum RO 250,000. Tarqi Sulaiman al Farsi, CEO, Al Rafd Fund said, "Our programme "Resource "
provides under the Social Security loans RO 10,000 without the administrative and technical fees. Loans in this category previously did not exceed RO 3,000. The "Establishment" programmes is aimed at job-seekers, including innovators wishing to establish new projects with loans not exceeding RO 20,000 without requiring personal contribution in financing the project.
Yet another programme called "Entrepreneurship" for the benefit of various target groups from the Raffd Fund generally, including the owners of innovation projects with loans of up to RO 100,000.
Mohsin Shaikh Sehu Mohamed, Head of Islamic Finance, Al Madina Investments, says the new definition of SMEs given by the Ministry of Commerce and Industry is good for the country.
MUSCAT -- The Omani youth need to seize the moment by taking full advantage of a number of financing schemes that are now available for the small and medium enterprises.
This was stated by speakers at the concluding day of Oman Economic Forum here yesterday.
Khalifa bin Said al Abri, Acting CEO, Public Authority for SME Development, said in most countries the SMEs are the main provider of new job opportunities and an important contributor to innovation. About 95 per cent of the total number of companies are SMEs accounting for 60-70 per cent of the total employment, including 40-80 per cent in the manufacturing sector and about 80-90 per cent in the construction sector.
The SMEs contribute between 30-70 per cent of the added value and the ratio varies between states and the economic sectors. For example, in the export sector the SMEs account for 15-50 per cent of exports including 25-35 per cent of the exports of the manufacturing sector in the world.
Among the challenges faced by SMEs generally include the fact that banks hesitate to lend to them and ask the SMEs to provide too many documents to obtain loans. Low spending on R&D and innovation activities, being labour-intensive in nature and not going in for modern technology are among other challenges facing the SMEs.
Weak planning and management, limited use of modern technologies and risk aversion are still other challenges, said Al Abri.
What support the SMEs need? Al Abri says the SMEs need easy access to knowledge and skills; funding' resources; business opportunities; and access to markets.
As per the Loan Guarantee Programme, SMEs get loans without collateral from commercial banks up to a maximum RO 250,000. Tarqi Sulaiman al Farsi, CEO, Al Rafd Fund said, "Our programme "Resource "
provides under the Social Security loans RO 10,000 without the administrative and technical fees. Loans in this category previously did not exceed RO 3,000. The "Establishment" programmes is aimed at job-seekers, including innovators wishing to establish new projects with loans not exceeding RO 20,000 without requiring personal contribution in financing the project.
Yet another programme called "Entrepreneurship" for the benefit of various target groups from the Raffd Fund generally, including the owners of innovation projects with loans of up to RO 100,000.
Mohsin Shaikh Sehu Mohamed, Head of Islamic Finance, Al Madina Investments, says the new definition of SMEs given by the Ministry of Commerce and Industry is good for the country.
© Oman Daily Observer 2014
