24-07-2025
Non-bank financing spurs Oman's private sector growth
MUSCAT: The alternative financing sector is gaining traction in Oman, emerging as a key catalyst for private sector development, according to Olivier Karno, Global Editor-in-Chief at Oxford Business Group.
In a televised interview with CNBC Arabia, Karno emphasised the increasing role of non-bank financial solutions, 'In addition to traditional bank loans and credit facilities, the main sources [of funding] are linked to an increase in finance and leasing from the non-banking sector,' he shared.
'This area is essential because it frees up cash and allows companies to reduce the direct cost of obtaining credit and financing.
So, if you're in an industry that needs capital — for example, in mining, where the equipment needed to start operations is expensive — instead of turning to traditional lenders, using finance and leasing becomes a flexible and essential solution.
It requires a lower volume of initial capital.'
Karno noted that these solutions are valuable especially for start-ups and SMES, which often face barriers to accessing traditional financing, 'This is critical for start-ups and for small and medium-sized enterprises, especially in line with Oman Vision 2040.
These companies can now access new types and forms of financing.'
According to the analyst, alternative financing not only aligns with Oman's economic transformation, but also represents an emerging sector of finance.
'What's important about this sector is that it not only aligns with the growth recorded in Oman in terms of strategy, industrialisation, renewable energy and technology, but also because it represents a fast-changing, dynamic and emerging area of finance.
Without a doubt, this is essential for the growth of the private sector, and also for overall economic growth in the Sultanate of Oman.'
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