Development Bank Launches Loan
Guarantee Programme

Muscat, 17 Feb 2026 (ONA) — The Development
Bank today signed a strategic partnership memorandum of understanding (MoU) with Sohar Islamic Bank to
launch a loan guarantee programme. The initiative aligns with the Development
Bank’s role in empowering Omani companies and enhancing their access to financing
in line with the goals of Oman Vision 2040, which aims to build a diversified
economy driven by a competitive and sustainable private sector.

The loan guarantee programme targets
creditworthy Omani companies seeking to expand or implement new projects. Sohar
Islamic Bank will provide Sharia-compliant financing to eligible companies,
backed by a Development Bank guarantee ranging from 50% to 80% of the loan sum,
depending on the nature, volume and economic feasibility of the project. The
mechanism helps diminish risks for lenders and encourages them to raise the rate of lending to the private sector.

The MoU was signed by Hussein
Ali Al Lawati, CEO of the Development Bank, and Abdul Wahid Mohammed Al
Murshidi, CEO of Sohar International Bank.

The loan guarantee programme enables
Omani companies to proceed to more advanced stages of growth, said Al Lawati.
He explained that sharing risks with partner banks paves the way for supporting
a larger number of companies, empowering them to invest, provide jobs and consolidate
their presence in local and regional markets.

He added that collaboration with
Sohar Islamic Bank enhances the availability of Sharia-compliant financing and
expands access to financial services across the Sultanate of Oman.

For his part, Al Murshidi said, “Enabling
small and medium enterprises (SMEs) to achieve sustainable growth requires more
than just providing liquidity. It necessitates the availability of robust risk
management frameworks, effective institutional integration and prudent and
disciplined capital utilization.”

Al Murshidi pointed out that the
initiative contributes to the generation of jobs, enhancing in-country
value (ICV) and developing export capabilities. This, he observed, directly
aligns with the objectives of Oman Vision 2040 aimed to build a diversified,
more resilient private sector that is capable of competing regionally and
internationally.

— Ends/Bishara