The Oman Development Bank was established by Royal Decree 7 18/9 to carry out the activities of two banks: Oman Development Bank (established in 1976) and Oman Agriculture and Fisheries Bank (established in 1981). The bank works to provide financing services and support the private sector in alignment with the Sultanate’s Vision 2040.
The bank offers a package of services, including: (microproject financing, small and medium enterprise financing, and corporate financing), and we will discuss the other two services in some detail:
(A) Financing small and medium-sized enterprises:
With an interest rate not exceeding 3% and a loan period extending up to 10 years, the Oman Development Bank offers short and long-term developmental loans. The financing program includes funding for fixed assets and working capital, with a maximum financing limit of 250,000 Omani Riyals.
The terms:
The grace period does not exceed half of the set payment period.
Providing suitable guarantees to cover project risks.
(b) Corporate financing:
The financing program includes financing for fixed assets and working capital, with a financing cap of one million Omani rials. It is noted that the bank finances 50% of the total project cost if the project is within Muscat, and 56% if the project is located outside the boundaries of Muscat.
The terms:
The grace period does not exceed half of the set payment period.
Providing suitable guarantees to cover project risks.
