Development Bank portfolio reaches 509 educational loans totaling RO18.8mln by end of 2024
Muscat — Development Bank, a leading institution driving economic growth in Oman, had 509 active educational loans in its portfolio, totaling approximately RO18.8 million by the end of 2024. Backing a variety of initiatives across all governorates, the loans reinforce the bank's commitment to both strengthening and encouraging private sector investment in education.
Commenting on the emphasis Development Bank has always placed on all levels of the education sector, Yousef Al Aweini, Director, SME Project Financing said: 'As Oman works towards the goals and ambitions of Oman Vision 2040, Development Bank is proud to support the efforts of His Majesty's government in enhancing public education and expanding learning opportunities. And I'm pleased to say that the bank's subsidized benefits and flexible repayment terms play an active role in encouraging private sector investment in this all-important sector. These loans are an investment in the young people of Oman, reflecting the bank's confidence in their potential and as they grow in knowledge and capabilities, together, as a nation, we can all grow.'
According to Development Bank data, general secondary education received the largest share of the loan portfolio, amounting to approximately RO7 million across 34 loans. This was followed by university colleges with RO2.8 million for three loans, kindergartens with RO1.2 million for 101 loans alongside other educational activities. With a value of RO10.9 million, Muscat Governorate accounted for 58% of the total of this loan portfolio, followed by North Al Batinah with RO 3.2 million (17%) and Al Buraimi with RO 1.7 million (9%).
In 2024, the total approved loans for the education sector reached RO12.8 million. Of this, general secondary education received the highest allocation at RO3.6 million across 13 loans, next was university colleges with RO3.5 million for a single loan. Additionally, four loans worth RO588,000 were approved for training services while 26 loans amounting to RO257,000 were granted for kindergarten activities. The year saw Muscat Governorate lead in approved loan allocations with 65% of the total, valued at RO8.3 million. This was followed by North Al Sharqiyah with RO2.3 million (18%) and North Al Batinah with RO1.1 million (9%).
According to statistics from the National Centre for Statistics and Information the total number of private schools in Oman reached 994 end of the 2022/2023 academic year, accommodating 150,506 students and employing 13,607 teachers. Additionally, government expenditure on the education sector accounted for 16.5% of total public spending in 2023 with the average annual cost per student in public schools amounting to RO1,715.
To promote private sector investment in education and ease the burden on the government, Development Bank continues to finance educational projects that contribute to the advancement of learning across the governorates. This is can be seen, for example, in the 510 buses funded by the bank as part of phase one of the School Bus Replacement Initiative, a 1,000-bus project in collaboration with the Ministry of Education and Duqm-based Karwa Motors, an Omani-Qatari investment. Since the project's launch in 2024 the bank has allocated RO11.4 million for this initiative. In the preschool education sector, statistics indicate that private schools are the primary providers of these services, with 37% of all schools offering preschool education in the 2023/2024 academic year.
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