Development Bank boosts small business financing to RO100mn

14/10/2025 05:14 AST

The Development Bank has announced that its loan portfolio for small enterprises has exceeded RO100mn by the end of September 2025. The bank has financed more than 20,000 small projects across production and service sectors in all governorates, reflecting balanced national development and growing entrepreneurship across the Sultanate.

The achievement aligns with the government's economic empowerment policies led by the Ministry of Finance and supports the objectives of Oman Vision 2040, which prioritises inclusive growth and self-employment. The bank continues to play a central role in enabling individuals and families to establish sustainable ventures that contribute to economic diversification and job creation.

According to the Ministry of Finance, the Development Bank was established as a national financing institution to serve as an executive arm of the government's empowerment policies. It supports productive and service-oriented projects, directs financing towards priority groups, and covers the cost of interest for those committed full-time to running their businesses.

By sector, the bank's micro-enterprise loans include 8,761 loans for the fisheries sector worth about RO38.5mn, 3,805 loans in agriculture and livestock representing 19% of the total, and 2,898 loans in crafts accounting for 10%. These sectors play a key role in food security and reflect Oman's traditional livelihoods, particularly in rural and coastal areas.

Mahmood al Aweini, Chairman of the Development Bank, said small enterprises remain vital to Oman's economic and social development, serving as a core engine for entrepreneurship and job creation. He said the bank offers interest-free loans to full-time entrepreneurs to help sustain operations and expand production.

Aweini added that small enterprises are the foundation of the national economy and that the bank is ready to continue supporting them, expand financing, and increase the number of beneficiaries. He stressed the importance of youth entrepreneurship and ongoing government commitment to sustainable empowerment.

The Development Bank provides flexible loan models, including interest-free loans of up to RO15,000 covering 90% of project costs for full-time entrepreneurs, and loans with a 3% interest rate for part-time operators covering up to 80%. The bank also offers working capital financing and flexible grace periods depending on project nature and cash flow.

In line with Oman's digital transformation goals, the bank has automated its services to enable online loan applications and tracking, improving accessibility to finance across governorates. The initiative has accelerated loan processing and enhanced service delivery for small business owners.

Muscat Daily