The role of credit data in enhancing ICV in Oman

Observer

31-05-2025

The Sultanate of Oman is undergoing a significant economic transformation, driven by its Vision 2040 strategy that emphasizes diversification, innovation, and sustainability. Central to this transformation is the concept of In-Country Value (ICV), a framework designed to maximize the retention of economic benefits within the national economy. ICV aims to stimulate local business development, enhance employment opportunities for Omanis, and build resilient supply chains across sectors.
In parallel with these strategic goals, Oman has recognized the importance of robust digital and financial infrastructure. One key initiative in this domain is the establishment of Mala'a Credit Bureau. As the national credit registry, Mala'a plays a crucial role in strengthening the financial ecosystem by enhancing transparency, reducing lending risks, and promoting financial inclusion.
This article explores the vital synergy between Mala'a Credit Bureau and the ICV strategy. It highlights how credit data intelligence, when effectively leveraged, can catalyze economic development, support local enterprises, and empower Omani citizens to participate actively in the nation's economic future.
Mala'a Credit Bureau was established under the supervision of the Central Bank of Oman to provide a centralized platform for credit information sharing. Its core mandate is to collect, manage, and disseminate credit data from banks, financing companies, telecom providers, utilities, and other entities that offer credit services.
Key functions of Mala'a include: Generating credit reports for individuals and companies, Offering credit scoring services, Providing credit monitoring and alerts, andEnabling data-driven decision-making for lenders
Mala'a improves market efficiency by minimizing information asymmetry between borrowers and lenders. It promotes responsible borrowing and lending, which is critical for a stable and inclusive financial system. Importantly, it facilitates access to finance for previously underserved segments, including SMEs and startups.
SYNERGIES BETWEEN MALA'A AND ICV GOALS
The alignment between Mala'a Credit Bureau and ICV strategy is multifaceted. Both aim to empower local enterprises, increase economic resilience, and ensure long-term sustainability.
Major areas of synergy include:
• Data-driven supplier development: Mala'a provides credit histories and risk assessments that help identify financially sound local suppliers. This supports procurement teams in selecting reliable Omani vendors.
• SME credit facilitation: SMEs often face challenges in securing financing due to lack of credit history. Mala'a enables the creation of digital financial footprints, allowing SMEs to access funding and participate in ICV-linked tenders.
• Enhanced transparency: Credit data increases market discipline and builds trust among stakeholders, from investors to consumers. This is essential for the credibility and sustainability of ICV programs.
Small and medium enterprises are the backbone of Oman's economic diversification efforts. However, limited access to finance remains a critical barrier. Mala'a addresses this by: Providing reliable credit data that lenders can use to assess SME risk profiles, Enabling SMEs to monitor and improve their credit standing, and Facilitating the creation of sector-specific financial products.
Moreover, Mala'a's data infrastructure supports fintech innovation, enabling platforms that offer microloans, invoice financing, and peer-to-peer lending. These tools are particularly beneficial for entrepreneurs participating in ICV programs, allowing them to scale operations and meet procurement requirements.
FACILITATING HUMAN CAPITAL DEVELOPMENT
Human capital is a core component of ICV. Mala'a contributes indirectly to its development by:
• Enabling educational and professional development loans based on individual credit profiles
• Providing insights into population-level financial behaviors, helping policymakers identify gaps in financial literacy and inclusion
• Supporting job creation in credit-related services such as fintech, risk analysis, and customer support
By integrating credit data into national education and employment strategies, Oman can ensure a more financially capable and skilled workforce.
IMPROVING FINANCIAL HEALTH
Financial sustainability is essential for long-term ICV success. Mala'a helps local businesses achieve this by: Offering tools to monitor credit obligations and manage debt, Encouraging timely repayments and responsible financial behavior, and Supporting businesses in planning for expansion through credit analytics.
This not only benefits individual companies but also strengthens entire value chains, reducing the risk of defaults and disruptions.
INTEGRATING MALA'A WITH OTHER NATIONAL ICV PLATFORMS
The effectiveness of Mala'a can be amplified through integration with other government platforms:
• Procurement portals: Linking credit data with e-tendering platforms helps assess vendor reliability.
• Tax and business registries: Streamlining data sharing supports due diligence and compliance monitoring.
• Labour and training systems: Insights from Mala'a can inform targeted skills development initiatives.
Advanced analytics, including artificial intelligence, can enhance predictive modeling for supplier performance, fraud detection, and credit risk.
CHALLENGES AND OPPORTUNITIES
Despite its benefits, the implementation of Mala'a and its integration with ICV is not without challenges: Data privacy (Ensuring data protection and compliance with privacy regulations is critical); Adoption rates (Encouraging SMEs and institutions to actively use Mala'a services requires ongoing awareness and incentives); and Data quality: The accuracy and completeness of data submissions must be maintained to ensure reliable outcomes.
On the other hand, opportunities abound:
• Regional expansion: Mala'a can serve as a model for credit bureaus across the Gulf Cooperation Council (GCC).
• Investment attraction: A strong credit infrastructure increases investor confidence and enhances Oman's competitiveness.
• Public-private collaboration: Partnerships with fintechs, banks, and training institutes can unlock new value streams.
Mala'a Credit Bureau is a strategic enabler of Oman's ICV objectives. By improving access to credit, supporting SMEs, enhancing transparency, and facilitating data-driven policy making, Mala'a contributes to a more inclusive and sustainable economy.
Key recommendations include: Promoting SME engagement through awareness and capacity building; Strengthening inter-agency data sharing protocols; Integrating Mala'a insights into national ICV reporting and evaluation frameworks; and Investing in cybersecurity and data governance
As Oman continues its journey toward economic diversification and digital transformation, the alignment between credit infrastructure and local value creation will play a defining role in shaping the nation's prosperity.