The Saudi Development Fund is Supporting Oman's SMEs Through a $52 Million Agreement

The Saudi Development Fund is Supporting Oman's SMEs Through a $52 Million Agreement

By Staff Writer, 11 September 2023

A Joint Committee formed between Oman and Saudi Arabia has inked a financing deal worth RO20 million ($51.9 million) with Oman Development Bank (ODB) to bolster small and micro enterprises (SMEs) within Oman.

This financing arrangement aligns with ODB's goals of extending favorable loans for development initiatives spanning diverse sectors, as per the Oman News Agency.

Additionally, these bank loans will be advantageous for small, self-employed entrepreneurs and skilled artisans.

ODB has further emphasized that this agreement aligns with its objectives of creating job opportunities for Omani citizens by expanding the bank's lending portfolio.

The establishment of the Omani-Saudi Joint Committee stemmed from an agreement in the form of a memorandum of understanding (MoU) inked between Oman's Ministry of Finance and the Saudi Fund for Development (SDF) in February 2022.

Back in January, both organizations jointly announced that this committee would provide funding for the infrastructure development initiative within the Special Economic Zone located in Ad Dhahirah, Oman, with a total value of SAR 1.2 billion.

In addition to fostering collaboration between the two nations, this accord would facilitate trade, enhance economic partnerships, innovate new industrial solutions, and support sustainable economic growth. Furthermore, this cooperative effort would result in reduced production and export expenses for both countries, fostering economic efficiency within and across their borders.

The Oman News Agency reports that this collaboration is rooted in the objectives outlined in Oman Vision 2040 and Saudi Vision 2030. These visions encompass a wide range of investment prospects, serving as a collective platform for fostering economic diversification.

Source: Bindu Rai for Zawya

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