Oman central bank renews call for supporting SMEs
The Central Bank of Oman (CBO) has urged licensed banks operating in the Sultanate to show more interest in financing small and medium enterprises (SMEs).
Hamood bin Sangour Al Zadjali, Executive President of the CBO, affirmed in a circular that was sent to licensed and operating banks in the Sultanate that in all countries, the SMEs play an important role in the economy.
They ensure growth by increasing the added value in the GDP, generating job opportunities and contributing to enhancing the optimum use of national resources.
He added that in light of the Royal directives of His Majesty Sultan Qaboos bin Said, and in implementation of the decisions made at SMEs Symposium which was held at Saih Al Shamikhat in the wilayat of Bahla, the CBO directed licensed local and foreign banks in the Sultanate to increase the credit facilities for the SMEs.
They were required to dedicate five per cent of the total banking credit facilities to these institutions no later than the end of December 2014.
He pointed out at the circular that this rate is the minimum rate that should be met and that banks should exceed this limit so that they can effectively contribute to the development of SMEs by providing credit at low interest rates and less costs.
- Why Saudi's latest announcement to open up the stock market to foreign investors is a good move
- Saudi expected to emerge as seventh largest capital market and it's a very big deal!
- Time for some serious contemplation: Middle East firms face $91bn refinancing needs
- What's really holding Islamic Banking back?
- The rise of the Chinese renminbi: an unmatched opportunity for Qatar?