Over the past few years, some small and medium enterprises (SMEs) in the country have faced various commercial and marketing challenges, which have led to difficulties in meeting their financial obligations to banking and financial institutions. At the same time, commercial banks, the Development Bank, and the Inma Fund have continued to finance SMEs to help them regain stability and achieve new successes.

SMEs around the world, including in the Sultanate of Oman, are considered among the most important drivers of economic growth. Bank financing provided by commercial banks, the Development Bank, and other institutions is a key element in strengthening their ability to sustain operations and expand. Such financing also represents a strategic tool for achieving the objectives of Oman Vision 2040, particularly in the areas of economic diversification, job creation, and strengthening the role of the private sector in sustainable development.

Available local indicators point to the continued expansion of developmental financing programmes for these enterprises through the launch of operational initiatives and enhancements to lending programmes across more than 55 development initiatives aimed at improving the sustainability of financing and supporting SMEs.

The Development Bank provides these enterprises with direct developmental financing at reduced interest rates of around 3%, along with appropriate grace periods for their projects under specialised financing programs.

Data from the Development Bank indicate that the financing portfolio for SMEs exceeded RO 100 million by the end of September 2025. Operational indicators also show that the bank continues on a path of financing expansion within the framework of Oman Vision 2040 programmes, with approximately RO 110–130 million expected to be disbursed during the first half of 2026 to finance sectors such as manufacturing, professional services, fisheries, agriculture, livestock, and mining. This financing policy reflects efforts to advance food security, industrial development, and economic diversification.

In addition, the Inma Fund (the SME Development Fund) allocated approximately RO 25 million in 2025 to finance SMEs, complementing the facilities and loans provided by the Development Bank and commercial banks in the country.

Regarding the value of loans provided by commercial banks to SMEs in Oman during 2025, total bank credit reached approximately RO 34.5 billion by September 2025. SME financing accounted for about 3.7% of the total banking loan portfolio, while the Central Bank of Oman aims to increase this share to 5% in the coming phase. Accordingly, the estimated financing provided to SMEs amounted to approximately RO 1.27 billion within commercial banks’ portfolios in 2025.

As is well known, loans directed to SMEs through the Development Bank and commercial banks serve several strategic goals under Oman Vision 2040, most notably diversifying the economy away from oil, given that SMEs represent a key pillar in strengthening non-oil sectors. These objectives also include supporting entrepreneurship and employment, directly contributing to job creation and the reintegration of laid-off workers and job-seeking youth into the workforce.

Additionally, they aim to increase the private sector’s contribution to GDP, enhance local value addition, and support innovation and economic transformation—particularly through financing directed toward technology projects, light industries, logistics, food security, tourism, and the green economy, all of which are priority sectors under Oman Vision 2040.

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