In a move that exemplifies their commitment to driving business growth, fostering economic diversification

Muscat: Development Bank today announced a partnership with Bank Nizwa the leading and most trusted Islamic bank in the Sultanate of Oman to launch the Financing Guarantee Scheme. The program will help creditworthy Omani corporate s (mainly SMEs) secure bank finance by providing guarantees starting at 50% of eligible Finances. Depending on the nature and potential of the project, the guarantee can reach up to 80% on a case-by-case basis. The initiative is designed to advance Oman’s economic diversification by backing firms that create jobs, raise non-oil exports and deepen in-country value with an initial focus on manufacturing, renewable energy, logistics, tourism, agriculture and fisheries.  The agreement was formalized by Mr. Khalid Al Kayed, Chief Executive Officer of Bank Nizwa, and Mr. Hussain Ali Al Lawati, Chief Executive Officer of Development Bank.

This launch builds on Development Bank’s growing support for local enterprise. In the first half of 2025 the Development Bank approved RO109.5 million (US$283.6 million) across 3,716 loans, up year-on-year in both value and volume with notable momentum in service businesses and tourism-linked projects. Working-capital approvals also increased, reflecting demand from smaller firms across the regions as they invest, hire and expand capacity. That foundation underpins today’s announcement and provides a pipeline for early transactions through Bank Nizwa.

Bank Nizwa continues to demonstrate strong financial performance while actively underpinning Oman’s economic growth. Its financing portfolio increased from OMR 1.053 billion in December 2024 to OMR 1.075 billion by September 2025, reflecting rising economic activity and growing customer confidence, as well as a clear and accelerating demand for Sharia-compliant Islamic financing solutions across key sectors of the economy.

Hussain Al Lawati, CEO, Development Bank, said: “This is about confidence - confidence for entrepreneurs to invest, for banks to lend and for Oman to accelerate private-sector growth. By standing behind up to 80% of qualifying corporate Financing Opportunities, we are widening access to finance not only for exporters but for the enterprises that train young Omanis, buy locally and build resilient supply chains. When more Omani SMEs & other corporate can hire, upgrade operations and scale the gains, this will show up in sustainable jobs, stronger non-oil revenues and higher in-country value.”

Commenting on this, Mr. Khalid Al Kayed, stated, “This partnership with Development Bank marks a significant step in Bank Nizwa’s journey to empower Omani businesses and support the nation’s broader economic transformation. As the Sultanate’s most trusted Islamic Bank, we are deeply committed to providing innovative, Sharia-compliant financial solutions that enable enterprises/ corporate (including SMEs)to grow, diversify and create lasting impact across key sectors of the economy. By facilitating access to financing under the financing Guarantee Program, we are reinforcing our role as a reliable financial partner while actively promoting entrepreneurship, job creation, and sustainable national development.”

Comparable guarantee programs are used internationally to widen small-business lending while preserving borrower responsibility. Britain’s Growth Guarantee Scheme and Germany’s KfW StartGeld, both employ partial, lender-side backstops - typically 70% to 80% - to expand credit without weakening credit discipline. Oman’s model aligns risk-sharing with Islamic finance through Bank Nizwa and will initially prioritize employment-intensive, tradable sectors where upgrades in equipment, energy efficiency and compliance can translate quickly into competitiveness. The scheme remains open to all eligible SMEs/ corporate , subject to program criteria and the bank’s credit assessment.

As trade and investment partners raise quality and environmental demands, Omani SMEs will need finance to invest in cleaner production, traceability and modern logistics. By targeting manufacturing, renewables, logistics, tourism and fisheries, the partners intend the guarantee to accelerate that progress rather than merely increase financing counts.

Bank Nizwa will begin onboarding eligible clients immediately. The program is structured to extend to additional lenders as demand grows, creating a scalable framework to crowd in private capital and back ambition across Oman.

Media Enquiries
Mohammed Al Saqlawi
Marketing Department
Development Bank
PO Box 3077
Ruwi, 112
Tel: (+968) 92 29 26 99
m.saqlawi@db.om