Riyada Signs Strategic Pact with Commercial Banks: How This Boosts Business Financing Opportunities in Oman
MUSCAT, April 26, 2026 — The Small and Medium Enterprises Development Authority (Riyada) formalized a cooperation agreement on Sunday with multiple commercial banks across Oman. This initiative represents a collaborative effort between the government and the banking sector to broaden support for entrepreneurs.
The agreement aims to enhance the business environment and foster SME growth by improving access to finance and offering a comprehensive range of financial and non-financial services. These measures are designed to support entrepreneurs and SMEs in their growth, expansion, and sustainability.
The signing ceremony was held under the patronage of Ahmed bin Ja’afar bin Salim Al Musallami, Governor of the Central Bank of Oman. Also present were Halima bint Rashid Al Zari, Chairperson of Riyada, alongside CEOs of the participating banks and key stakeholders from the entrepreneurship ecosystem specializing in finance and investment.
Participating banks include Bank Muscat, Sohar International, National Bank of Oman, Bank Dhofar, Oman Arab Bank, Ahli Bank, Ahli Islamic Bank, Bank Nizwa, Alizz Islamic Bank, and Standard Chartered Bank (Oman).
Abdul Salam bin Mubarak Al Rawahi, Assistant Director of Finance at Riyada, highlighted that the authority, in partnership with these leading banks, has launched ten cooperation programs targeting the promotion of financial literacy among entrepreneurs, development of specialized training, and creation of tailored financing solutions to empower SMEs.
Rashid bin Zayed Al Ghassani, Head of the Financial Investment and Banking Supervision Sector at the Central Bank of Oman, emphasized that these memorandums are the culmination of significant banking sector efforts to support entrepreneurs. This initiative builds on previous mandates, including the allocation of 5% of total loan portfolios to the SME sector, underscoring the importance of SME development to the national economy.
Al Ghassani noted that the banking sector’s loan portfolio dedicated to SMEs now totals approximately RO 1.2 billion, supplemented by financing from companies, the Development Bank, and other entrepreneurial support funds, with steady annual growth.
Tariq bin Atiq, Acting CEO of Bank Nizwa, described the agreement as a vital step for both the banking sector and SMEs, with an emphasis on enhancing training and capacity-building for entrepreneurs.
The cooperation program is designed to create a more efficient and flexible financing system by developing customized financial products tailored to the diverse needs of SMEs. Key aspects of the program include offering incentives and banking facilities, joint training and awareness initiatives, promoting financial literacy, exchanging expertise, and establishing joint guarantee and financing mechanisms to mitigate risks and stimulate lending growth.
This collaboration aligns with Oman’s national strategy to empower SMEs as a major economic growth driver. The sector is expanding rapidly, with over 270,000 SMEs registered nationwide, including more than 130,000 registered with Riyada. Nearly 30,000 of these enterprises hold the Riyada Entrepreneurship Card, managed by owners who are actively engaged in their businesses.
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The strategic partnership between Riyada and Oman’s leading banks signals a new era of enhanced financial support and tailored services for SMEs, positioning them as pivotal drivers of economic growth in the Sultanate. For businesses and investors, this creates opportunities to leverage expanded financing options and capacity-building programs, while smart entrepreneurs should prioritize financial literacy and engage actively with these initiatives to maximize growth and sustainability.
