Muscat – Recent figures indicate that financing for SMEs from commercial banks accounted for only 3.5 percent of total credit in Q1 2024, increasing slightly to 3.7 percent by Q4 2024.

The session, under the topic ‘Raising the Percentage of Financing Small and Medium Enterprises from Total Commercial Loans’, aimed to enhance SMEs’ access to available financing options, enabling their growth and contribution to the national economy. Participants engaged in discussions to evaluate the existing challenges faced by commercial banks in providing adequate financing and proposed solutions to boost credit facilities for SMEs.

The review session is part of a broader effort to formulate a national strategy for SME financing, led by the National Programme for Fiscal Sustainability and Financial Sector Development (Estidamah) in collaboration with ASMED, the Central Bank of Oman, and the banking sector. The strategy seeks to develop a roadmap for financing options and to launch supportive initiatives to address existing challenges in coordination with both public and private sector partners.

Key topics included the current rate of 5 percent of total bank portfolios allocated to SME financing, with proposals aimed at stimulating this sector further. H.E. Tahir Salim Al Amri, Executive President of the Central Bank of Oman, emphasized the importance of collaboration among banks and financial institutions to provide the necessary support for SMEs.

H.E. Halima Rashid Al Zar’ai, Chairperson of ASMED, highlighted the critical role of the financing system in supporting entrepreneurship. She noted that the Authority is actively working with banks to identify challenges faced by SMEs and to enhance the preparedness of entrepreneurs, thereby reducing credit risks associated with loans.

The session was attended by representatives from the National Programme for Fiscal Sustainability and Financial Sector Development, CEOs of commercial banks, and numerous entrepreneurs, all focused on fostering a more conducive environment for SME growth in the Sultanate of Oman.