MUSCAT : The agreements were signed by His Excellency Dr. Hilal bin Ali Al Sabti, Minister of Health; His Excellency Mahmoud bin Abdullah Al Awaini, Chairman of the Board of Directors of the Development Bank; and Abdul Wahid bin Mohammed Al Murshidi, CEO of Sohar International.

The Ministry said the agreements form part of its strategic drive to strengthen cooperation between the government and national financial institutions while creating a stronger investment environment for healthcare projects.

H.E. Dr. Al Sabti said increasing the local production of health supplies and products is a major priority for improving the resilience of Oman’s healthcare sector and developing specialised national capabilities.

He said the Ministry is working to attract sustainable investments that support national industries and strengthen the security of medical supply chains. The agreements, he added, establish an institutional framework for advancing such projects while maintaining strict technical and commercial evaluation standards.

The initiative also supports Oman Vision 2040, particularly its objectives of creating a sustainable healthcare system, expanding access to services and increasing private-sector participation.

Under the memorandum with the Development Bank, both sides will work together to identify investment requirements in the healthcare sector and help project owners understand financing procedures and eligibility requirements.

The cooperation is expected to support projects aligned with Oman’s healthcare priorities and compliant with quality and licensing standards approved by the Ministry.

Investment opportunities are increasingly extending beyond hospitals to medical manufacturing, outpatient services, diagnostics, rehabilitation, long-term care and digital health.

H.E. Al Awaini said the Development Bank approved financing for 230 health-sector loans between 2023 and July 2026, giving the institution considerable experience in financing healthcare projects.

He said the agreement would enable investors to better understand financing requirements at an early stage and prepare stronger proposals, helping more Omani healthcare projects progress from the planning stage into actual operation.

Such investments, he added, could expand options for patients, create opportunities for national talent and increase economic value within the Sultanate.

H.E. Al Awaini also highlighted that the added value of Oman’s health sector grew by 7.3 per cent during the first quarter of 2026, saying the partnership complements the Development Bank’s wider role in economic diversification and Oman Vision 2040.

Meanwhile, the agreement between the Ministry of Health and Sohar International places a major emphasis on the localisation of medical industries.

The partnership aims to increase the share of locally manufactured health products to at least 30 per cent over the next three years, compared with the current level of no more than 9 per cent.

Oman currently has around 20 medical manufacturing facilities, while imports account for approximately 91 per cent of the market’s requirements.

The agreement seeks to support investors planning to establish new factories or expand existing facilities. The Ministry will conduct an initial feasibility assessment of proposed projects before referring eligible applications to Sohar International for financing evaluation and decisions in coordination with the Ministry.

Al Murshidi said financing can deliver greater economic and social impact when directed towards building productive capacity, with healthcare industries offering significant potential in this regard.

He said the agreement reflects joint efforts by the government and banking sector to create value-added investment opportunities and demonstrates Sohar International’s ambition to move beyond traditional banking towards developing an integrated investment and service ecosystem for businesses.

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