Royal Decree to restructuring Oman Development Bank reflects government’s keenness to support business sector

Madayn's industrial cities
Madayn's industrial cities

Muscat: The Board of Directors of the Oman Development Bank (ODB) explained that the issuance of the Royal Decree to restructuring the bank and change its name; It comes to enhance the bank’s role in comprehensive economic growth in light of the renewed renaissance led by His Majesty Sultan Haitham bin Tarik

The honorable Engineer Muhammad bin Abu Bakr Al-Ghassani, Chairman of the Bank’s Board of Directors, said: The new system of the bank and raising its capital to RO 500 million comes as a translation of the government’s keenness to support the business sector, especially the promising economic sectors, and to facilitate all means for the success of value-added investment projects for business owners, male and female. Which contributes to raising the pace of economic diversification and the growth of the Sultanate of Oman’s gross domestic product.

The Chairman of the Board of Directors of the Development Bank stressed that the Board of Directors will work to translate the texts and contents of the Royal Decree and work to accelerate the approval of the internal regulations required by the bank’s work areas to ensure the achievement of its objectives.

The Oman Development Bank’s system included enhancing the bank’s capital to be RO 500 million and setting the amount of financing provided to the borrower at RO 5 million for each project, with the possibility of increasing it to RO 7.5 million for some specific projects, in addition to the soft loans provided by the bank without any return. Small investors, provided that loans are provided for the purpose of financing projects in areas related to economic sectors and activities related to development plans.

According to its new system, the Development Bank will continue to provide soft loans to companies wholly owned by Omanis registered in the Sultanate of Oman, in accordance with the controls contained in the bylaws and internal regulations of the bank, and the possibility of providing soft loans to Omani companies, providing soft loans to Omani individuals exempt from registration in the commercial registry, and guaranteeing the loans it provides.

Other financial institutions and banks, and managing government grants and loans programs provided to target groups in accordance with what is agreed upon with the relevant donors or lenders, in addition to managing international grants and loans provided by financial institutions and specialized banks to the Bank.

The new system enables the bank to accept demand or term deposits, savings deposits and long-term borrowing from the local market, financial institutions and specialized international banks, whether in the form of direct borrowing or issuing bonds offered for public subscription in accordance with the conditions determined by the bank’s general assembly, and providing advisory services to companies and institutions and practicing necessary banking.   – ONA

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