Engineer Ali bin Masoud bin Ali Al Sunaidy, Minster of Sports Affairs says, “A thriving SME sector is crucial for the development of the national economy and growth in job opportunities”. Urges the youth to seriously consider entrepreneurship.
Muscat 11 December 2005: In cognizance of the importance of a robust small and medium scale sector in any developing economy, BankMuscat (SAOG), the nation’s leading bank, launched Al Wathbah (a big leap for small business) its comprehensive suite of programme lending solutions for the small and medium scale sector in the capital recently.
HE Engineer Ali bin Masoud bin Ali Al Sunaidy, Minster of Sports Affairs who graced the launch occasion had earlier said:
“A thriving SME sector is crucial for the development of the national economy and the continued growth of job opportunities in the Sultanate. I would urge each and every enterprising member of the community to seriously consider entrepreneurship as an option to employment. The nation today offers a wealth of opportunity to those who are ready to seize the moment and strive ahead. With government initiatives such as Sanad and the Youth Fund and private sector initiatives such as Intillaqah and now Al Wathbah at their disposal, our youth should work toward turning their dreams into reality. That is what will help our country take the ‘leap’ into the future.”
Economists world over aver that a strong domestic small and medium scale sector plays a crucial role in underpinning the growth and all round development of any national economy. Besides contributing to the GDP of a nation they also are a valuable source of employment creation. This is all the more important in a developing country such as Oman, which is currently in the midst of socio-economic and industrial transformation. According to a recent World Bank report on the subject, the number of active Small and Medium scale enterprises in the Sultanate ranges between 15,000 and 20,000 and is growing at 1.5% per annum, which is considerably lower than what it should be.
Speaking on the occasion, AbdulRazak Ali Issa, chief executive of BankMuscat said:
“A recent World Business Environment Survey covering 4000 firms in 54 countries has found that SMEs cited inadequate access to finance as their primary constraint to growth. Al Wathbah should be seen as our contribution to
the valuable efforts of the Ministry of Commerce and Industry, Minister of Manpower and the Central Bank of Oman to develop and nurture the small and medium scale sector in the country. We are hopeful that our programme-lending solutions will help many upcoming businesses in the Sultanate take the leap into the future.”
Thanking the Minister of Sports Affairs for kindly consenting to be present on the occasion and setting things in motion he added:
“ We are especially grateful of HE Engineer Ali bin Masoud bin Ali Al Sunaidy for agreeing to be with us here.. His Excellency, as we all know, is himself an example of what the younger generation in Oman can hope to achieve. With his blessings and support, we are sure that the youth of today will gather the inspiration to set higher benchmarks and excel.”
To be initially offered across 6 product categories – Working Capital Finance, Equipment Finance, Receivables Finance, Import Finance, Contract Finance and Credit Card Receivables Finance, Al Wathbah will in time replace the bank’s existing discretionary lending facilities in this area.
Explaining why the bank has chosen to adopt this approach, Mr AbdulRazak said:
“Our experience in this segment over the years has confirmed our belief that a formal programme lending approach will lead to definite advantages being passed on to this sector, especially with regard to ease of application, assessment, disbursement and monitoring of loans and other financing facilities. Al Wathbah programme lending solutions will be offered through specialized Account Relationship Managers across the length and breadth of the country and will use the latest credit risk rating models to access all client requests.”
To be offered to small commercial establishments with an annual turnover less than RO 250,000 that are looking to grow their businesses, Al Wathbah will offer up to RO 100,000 in terms of funding. To provide a further fillip to the sector, the bank also plans to introduce enhanced advisory services whereby the bank will offer professional advise to the sector on their businesses, the economy and various financial options.
The bank will also help facilitate tie-ups with third party business associates for each of these businesses in the areas of accounting software, business strategy and business line specific consultations and solutions.
About BankMuscat
With assets worth over US $ 4.8 billion, BankMuscat (SAOG) is the largest bank in Oman today with a strong presence in Corporate Banking, Retail Banking, Investment Banking, Treasury, Private Banking and Asset Management. The Bank has a network of 90 branches in Oman and a representative office in Dubai (UAE). BankMuscat also has a strategic stake in Centurion Bank, a private sector bank in India and has recently set up BankMuscat International (BMI) an independent Banking entity that will be focused on becoming a truly GCC regional bank.
The international financial and banking community has lauded BankMuscat’s performance and pioneering efforts at setting new standards of excellence in the Banking industry in Oman and in the countries in which it operates across the region for several years now. BankMuscat holds the rare distinction of being voted the ‘Best Bank in Oman’ three times in a row by The Banker, FT London, five times by Euromoney and Global Finance Inc. The Bank was awarded the People Development Award at Oman Awards for Excellence, in 2003 and 2004. Earlier this year, the Bank also won the prestigious Gulf Excellence Award for Oman.
