Oman - Sharakah and Muscat Finance have signed a Memorandum of Understanding (MoU) to empower small and medium enterprises (SME) growth and foster impact investment in Oman. Ali bin Ahmed Muqaibal, CEO of Sharakah, and Hussain Al Lawati, CEO of Muscat Finance, signed the MoU.

By harnessing their combined expertise and resources, the two entities aim to facilitate the expansion of small and medium-sized enterprises while driving sustainable development across the Oman in Green initiatives and projects.

The MoU outlines a comprehensive framework for collaboration, encompassing various key areas. These include joint efforts in co-funding impactful sustainability projects, implementing referral schemes to facilitate equity funding, partnering in co-sponsoring programmes for SME development, and establishing a dedicated think tank for the SME sector in green initiatives.

Co-funding scheme

The MoU sets forth several primary objectives to be pursued by the companies. Primarily, its purpose is to establish a dedicated co-funding scheme aimed at supporting impact investing and sustainability projects, with a particular focus on the renewable energy sector.

It also outlines the creation of a referral scheme for equity funding, whereby Muscat Finance will refer clients seeking equity funding to Sharakah. In reciprocation, Sharakah will provide these clients with comprehensive smart funding and support services, subject to mutually agreed-upon terms and conditions.

The parties will also collaborate on the development of programmes that facilitate the advancement of strategic initiatives, including in-country value (ICV) and sustainable projects, with an emphasis on renewable energy and green initiatives.

Capacity building

Muqaibal said: “Sharakah always aims to tap into its pillars by actively engaging in capacity building and fostering corporate partnerships, all while promoting an entrepreneurial culture. We are excited to collaborate with Muscat Finance in developing a co-funding opportunity for impact investing and sustainability projects, particularly in the renewable energy sector.

“This partnership will enable us to support Omani entrepreneurs and potential entrepreneurs by providing them with access to funding and development programmes. We look forward to leveraging our expertise and resources to co-sponsor SME development programmes and initiatives, driving the growth of the sector.”

Al Lawati said: “Our collaboration with Sharakah holds great potential for the green initiatives. By jointly identifying and supporting Omani entrepreneurs through the co-funding scheme and development programmes, we aim to foster a conducive environment for their growth. Additionally, acting as a think tank alongside Sharakah, we will exchange ideas, share best practices, and promote the development of the SME sector in Oman. Together, we will conduct studies to identify projects that will have a significant impact on the business environment for SMEs.”

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