Saudi Fund for Development signs agreement to support SMEs in Oman

Saudi Fund for Development signs $67M agreement with Oman Development Bank to support SMEs and boost economic growth in Oman, strengthening ties between the two countries.

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Saudi Fund for Development signs agreement to support SMEs in Oman

Saudi Fund for Development Signs $67 Million Agreement with Oman Development Bank

The Saudi Fund for Development (SFD) signed a $67 million development financing agreement with the Oman Development Bank (ODB) to support medium and small enterprises and enhance social and economic growth in Oman. The agreement is part of a $150 million support program provided by the Saudi government to Oman through the SFD.

The agreement was signed by representatives from both the Saudi and Omani sides of the joint committee for the management of the program to support small and medium enterprises (SMEs). "The agreement aims to support the ODB's initiatives in financing SMEs' activities, enhance social and economic growth, and create jobs in various states and governorates of Oman," said Saeed Al-Qahtani from the SFD, who co-chaired the joint committee along with Zahir Al-Abri and Hussein Al Lawati from the ODB.

The signing ceremony took place at the ODB headquarters in Muscat, Oman. This agreement builds on a previous $53.33 million pact signed in September 2023, reflecting the long-standing partnership between Saudi Arabia and Oman that spans more than four decades.

Why this matters: The development financing agreement between the SFD and ODB highlights the strong economic ties and cooperation between Saudi Arabia and Oman. By supporting SMEs and promoting job creation, this initiative seeks to encourage sustainable economic growth and social development in Oman.

Earlier this year, the SFD also signed a Memorandum of Understanding with Oman to finance the infrastructure development project of the Special Economic Zone in Ad Dhahirah, further strengthening cooperation between the two countries. "The Joint Committee is responsible for financing institutions that provide financing services to MSMEs in Oman and for assessing financing portfolios to ensure optimal use of the fiscal support and maintain the sustainability of the MSMEs," stated Zahir Marhoon Al Abri, Director General of Treasury and Accounts at the Ministry of Finance and Head of the Omani side at the Joint Committee.

Key Takeaways

  • Saudi Fund for Development signed $67M agreement with Oman Development Bank to support SMEs.
  • Agreement aims to enhance social, economic growth, and job creation in Oman.
  • This builds on a previous $53.33M pact signed in 2023, reflecting strong Saudi-Oman ties.
  • SFD also signed MoU to finance infrastructure development in Oman's Special Economic Zone.
  • Joint committee responsible for financing and assessing portfolios to ensure sustainability of MSMEs.