Muscat –The Authority for Small and Medium Enterprises Development (Riyada) signed acooperation programme today in Muscat with a number of commercial banks in theSultanate of Oman. The programme aims to facilitate access to financing andprovide a comprehensive package of financial and non-financial solutions tosupport entrepreneurs and small and medium enterprises (SMEs), therebycontributing to their growth, expansion, and sustainability.

This initiative seeks to enhancethe business environment and support the growth of SMEs as part of integratedefforts between the government and banking sectors to broaden the scope ofsupport provided to entrepreneurs.

The signing ceremony was heldunder the patronage of Ahmed Jaafar Al Musalmi, Governor of the Central Bank ofOman (CBO). The agreement was signed by Halima RashidAl Zar'ee,Chairperson of Riyada, alongside the CEOs of the participatingcommercial banks.

The cooperation programme isdesigned to develop a more efficient and flexible financing ecosystem throughthe creation of tailored financial products that meet the needs of SMEs atvarious stages of their development. It also includes the provision of bankingincentives and facilities, the implementation of joint training and awarenessprogrammes, the promotion of financial literacy, and the exchange of expertisebetween the two parties. Furthermore, it aims to enhance guarantee mechanismsand co-financing arrangements, thereby helping to reduce risk and encourage theexpansion of financing for this vital sector.

This collaboration reflects thenational commitment to empowering SMEs as key drivers of economic growth. Thesector is witnessing increasing growth in the Sultanate of Oman, with over270,000 registered SMEs, of which more than 130,000 are registered with Riyada.Approximately 30,000 enterprises hold the "Riyada Card"(Entrepreneurship Card).

The signing of the programme alsocomes amid ongoing efforts by the banking sector, supported by the Central Bankof Oman, to increase the volume of financing directed to SMEs. A target hasbeen set to allocate no less than 5 percent of commercial banks’ loanportfolios to this sector, with outstanding financing currently amounting tonearly RO 1 billion. This reflects growing interest in supporting the sectorand enhancing its contribution to the national economy.

The programme is expected togenerate direct economic and social impact by helping create sustainableemployment opportunities for Omani nationals, boosting economic activity acrossthe various governorates of the Sultanate of Oman, increasing local value-addedcontent, localizing industries, facilitating knowledge transfer, and enablingSMEs to contribute effectively to building an innovation- and knowledge-driveneconomy.

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