MUSCAT: In the third and final part of our interview series, Development Bank CEO Hussain Al Lawati discusses how Oman’s business environment is positioned to benefit from Economic Gardening. He outlines the bank’s track record in supporting SMEs and offers an invitation to Omani businesses looking to grow.

Excerpts from the interview: 

Does the business environment in Oman support this approach?

Absolutely. Community culture clearly influences economic vitality and Oman has several advantages here. We have a strong entrepreneurial spirit and robust government support for business which are essential foundations for Economic Gardening.

The public sector plays an important role by creating a favourableregulatory environment. From the Ministry of Commerce, Industry & Investment Promotion to organizations like Invest Oman, Special Economic Zone at Duqm, Madayn, OMRAN and Salalah Free Zone, we have effective ‘one-stop-shop’ approaches that streamline business procedures. And these efforts are producing results – in Q4 2024, we saw an 11.2% increase in the number of registered companies, with micro-businesses employing over 234,000, up 14% on the same period in 2023.

How does Development Bank support second-stage companies?

While we’re often associated with start-ups, we actually support companies throughout their growth journey. We recognize that second stage companies have specific needs and challenges that differ from start-ups or large corporations.

Our approach involves understanding their particular circumstances and crafting solutions that align with their business strategies and cash flow needs. This might mean customized financing options that match project timelines or advisory services for market expansion. By positioning ourselves as strategic partners rather than just financiers, we’re helping these companies fulfill their potential.

 We’re focused on sectors key to diversifying Oman’s economy, especially manufacturing, tourism, agriculture, fisheries, logistics and mining. These align directly with the economic goals outlined in Vision 2040.

 And the results speak for themselves. In 2024, we approved 767 loans to SMEs totaling US$100.8 million – an increase of 65% on 2023. Overall, our financing reached US$608 million last year, up 84% on 2023. Manufacturing received the largest support with US$236.8 million distributed across 1,317 loans, representing aloan amount increase of 150% on the previous year.

What would be your message to Omani businesses looking to grow?

If you are an Omani company looking to take your business to the next level, maybe eying the export market or perhaps planning to expand production we would like to hear what you have in mind and let us see how we can get ‘economic gardening’ and grow together.

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