ASMED Dialogue Session Reviews SMEs Financing Rates.

Muscat: The Authority for Small and Medium Enterprises Development (ASMED) today organised a dialogue session to increase the ability of small and medium enterprises (SMEs)' access to financing options available in commercial banks. This would enable SMEs to grow and augment their contribution to the Gross Domestic Product (GDP). According to Oman News Agency, the session outlined the actual reality of SME financing through commercial banks, identified key challenges facing commercial banks in financing SMEs and proposed possible solutions to upgrade credit facilities. The meeting was a step forward in preparing a national strategy for SMEs, an issue undertaken by the 'Fiscal Sustainability and Financial Sector Development' programme "Estidamah" in cooperation with ASMED, the Central Bank of Oman (CBO), the banking sector and other parties. The strategy aims to set a roadmap for providing financing options for SMEs and launching initiatives to resolve current challenges in coordination with partners from t he public and private sectors. The session looked into difficulties involved in commercial banks' providing financing to SMEs at a rate of 5 percent of their total portfolios. It also explored the experience of a leading commercial bank in financing SMEs. According to data issued by the CBO, the percentage of SME financing, out of the total credit granted by commercial banks, stood at 3.5 percent during the first quarter of 2024. The percentage rose to 3.7 percent during the last quarter of 2024. The dialogue session was attended by representatives of Estidama, CEOs and their assistants at commercial banks and entrepreneurs who own SMEs.