4. programs like the Ministry of Social

4. Explain briefly a few institutional finances available in Oman.There are several financing options which can be classified into three sections including the government financing agencies, the community service finance funds, and the commercial banks. The first option is considered to be the safest financing option, and it also has the lowest interest rate. The third option is considered to be the most complex one for SMEs. Sanad is one of the Ministry of Manpower projects which is designed to help contractors. They have a role that all employees should be 100% Omanis. They guarantee a loan for Omani citizens, and they provide the feasibility study for the business. The Omani Development Bank is another financing option; it offers a number of financing products, but it does not provide more than 56% of the project’s value. In addition, it does not finance working capital which make many of its products unsuitable for many sectors. However, this bank gives a grace period to loan beneficiaries of up to five years. In case of a late pay up, the bank can restructure the project which make the lender somewhat reassured. This process may have a positive effect on the institution.There are also a number of government institutions which offer a number of financing programs like the Ministry of Social Development. This ministry provides a livelihood program to some specific groups of society. Another financing option is Oman Arab Bank which has been the leading finance provider in Oman for the last three decades. The Bank has made a major and well recognized contribution to the development of Oman’s economy through the financing of most of the development projects. These projects include airports, cement plants, water desalination plants, highways, ports, power plants, hospitals, etc. Another financing option is the Charter which provides a wide range of flexible and attractive financing solutions for projects. ¬†They help large companies and SMEs through financing them to meet their needs. The Charter has some Sharia-compliant financial solutions to help financing to build an industrial unit, get an office building, or expand any operations.Another financing option is Al Wathba from Bank Muscat which has an SME finance unit that provides credit facilities that can reach up to 250,000 Omani Riyals for medium-sized businesses with sales of 2 million Omani Riyals or less. The facilities in the bank are designed specifically to meet the financing needs of corporate clients. The department in the bank has a dedicated team of managers who are ready to help satisfying the needs of all SME banking customers. The Youth Projects Support Fund is also another financing option in Oman. It provides a project financing ratio that can reach up to 67% for the new projects and a higher percentage for the existing projects. Moreover, Intilaaqah is also a financing option which is funded by Shell. It is linked to Grooven International and LifeWire and offers several financing and advisory services. Furthermore, commercial banks are the last financing options that SMEs should go to. These banks require mostly guarantees of 200% which is very huge. In addition, these banks charge a cumulative interest rate that can reach up to 9% and more.

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