Bank Muscat and IFC to Support Small Businesses

Bank Muscat and IFC to Support Small Businesses

Bank Muscat and IFC have signed an agreement to facilitate financing access to small and medium enterprises (SMEs) to expand business and create jobs. As per the agreement, IFC will advise the bank to launch new products and services aimed at micro, small and medium enterprises. bank muscat will also offer support to women entrepreneurs to become more active players in the Omani economy, the bank said in a press release.

There are over 100,000 small businesses in Oman and IFC will help Bank Muscat develop a new model for reaching out to these enterprises, offering businesses not only loans, but also advisory services. AbdulRazak Ali Issa, CEO?of Bank Muscat, said: “Small businesses are a vital part of the Omani economy. the bank is proud to sign this agreement with IFC which will help entrepreneurs address challenges faced by SME business and provide an environment critical to SME success.”

“In many ways, Oman’s banking system can serve as a model for other countries in the Middle East and North Africa,” said Rashad Kaldany, IFC vice-president of global industries. “This agreement will help show that supporting smaller businesses not only encourages economic development, but that it also makes financial sense for banks.”

Bank Muscat has taken several strategic steps to strengthen the SME sector in Oman. Al Wathbah, Bank Muscat’s SME department, has been very dynamic in financing businesses and strengthening the SME foundation in Oman. Aimed at strengthening the SME sector, Bank Muscat is offering a comprehensive suite of tailor-made finance solutions. Early this year, the bank partnered with the Ministry of Commerce & Industry to launch the government guaranteed loan programme in support of SMEs. The bank also recently launched the first-of-its-kind Al Wathbah Business Zone, a unique facility that addresses a long-felt need of entrepreneurs in Oman.

The Bank Muscat-IFC agreement marks the consolidation of partnership between the two organisations. In late 2011, IFC provided Bank Muscat with a $170 million loan to boost lending to small businesses. The initiative is part of IFC’s efforts in the Middle East and North Africa to support those firms.

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