Development Bank Launches New Corporate Financing Guarantee Programme: What It Means for Business Growth in Oman
MUSCAT: The Development Bank has partnered with Bank Nizwa to introduce the Financing Guarantee Scheme, aimed at assisting creditworthy Omani corporates, primarily SMEs, in securing bank financing. The scheme offers guarantees starting at 50% of eligible financing amounts, which can increase up to 80% depending on the project’s nature and potential, evaluated on a case-by-case basis.
This initiative seeks to support Oman’s economic diversification by promoting firms that generate employment, boost non-oil exports, and enhance in-country value. Initial focus sectors include manufacturing, renewable energy, logistics, tourism, agriculture, and fisheries. The agreement was signed by Khalid Al Kayed, CEO of Bank Nizwa, and Hussain Ali Al Lawati, CEO of the Development Bank.
The launch builds on the Development Bank’s expanding support for local enterprises. In the first half of 2025, the bank approved RO 109.5 million ($283.6 million) across 3,716 loans, marking year-on-year growth in both volume and value. There has been significant activity in service sectors and tourism-related projects. Additionally, approvals for working capital have risen, reflecting increased demand from smaller firms in various regions as they invest, hire, and expand capacity. This strong foundation supports the new scheme and helps generate early transactions through Bank Nizwa.
Hussain Al Lawati, CEO of the Development Bank, stated, “This is about confidence — confidence for entrepreneurs to invest, for banks to lend, and for Oman to accelerate private-sector growth. By backing up to 80% of qualifying corporate financing opportunities, we are broadening access to finance not only for exporters but also for enterprises that train young Omanis, source locally, and build resilient supply chains. When more Omani SMEs and corporates can hire, upgrade operations, and scale, this will translate into sustainable jobs, stronger non-oil revenues, and increased in-country value.”
Special Analysis by Omanet | Navigate Oman’s Market
The launch of the Financing Guarantee Scheme by Development Bank and Bank Nizwa marks a significant boost for Omani SMEs, enhancing their ability to secure substantial bank financing with guarantees covering up to 80%. This initiative lowers financial barriers, particularly in key sectors like manufacturing, renewable energy, and tourism, presenting strategic opportunities for entrepreneurs and investors to capitalize on Oman’s economic diversification goals. Smart investors should now focus on supporting scalable ventures that drive job creation, increase non-oil exports, and deepen local value chains to benefit from this favorable financing environment.
