Muscat – With the Authority for Small and Medium Enterprises Development (ASMED) working to boost financing options for SMEs, the share of commercial banks’ lending to small businesses rose from 3.5% in the first quarter of 2024 to 3.7% in the third.

The figures were announcement at a dialogue session on commercial loans for SMEs organised by ASMED on Sunday. The session aimed to broaden SME access to financing from commercial banks, a move seen as critical to supporting business growth and increasing the contribution of small businesses to Oman’s gross domestic product.

Discussions centred on the current SME financing landscape, challenges faced by commercial banks and potential solutions to improve access to credit. The session was part of a broader national strategy for SME financing developed in collaboration with the National Sustainability Programme, Central Bank of Oman (CBO), the banking sector and other stakeholders. The strategy focuses on setting a 5% SME financing target within commercial bank portfolios and exploring strategies to drive credit growth for small businesses.

On the occasion, Tahir Salim Abdullah al Amri, Executive President of CBO, underscored the need for cooperation between the apex bank and ASMED to support SMEs, while describing commercial banks and financial institutions as key to developing financing solutions. He highlighted CBO’s directives for banks to establish specialised SME financing units, and offering training and ongoing support to businesses.

Halima bint Rashid al Zaria, Chairperson of ASMED, emphasised the pivotal role of Oman’s financial sector in fostering entrepreneurship, with the authority working alongside banks to identify financing challenges. She informed that ASMED is exploring alternative financing models and initiatives to equip entrepreneurs with business management skills and lower credit risks associated with commercial loans.

With the current focus on SME financing, Oman’s business community is optimistic that such initiatives will open new doors for small businesses, helping them grow and contribute more significantly to the economy.

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