Development Bank has entered into a partnership with Bank Nizwa, the leading and most trusted Islamic bank in the Sultanate of Oman, to launch the Financing Guarantee Scheme.
The program will help creditworthy Omani corporates (mainly SMEs) secure bank finance by providing guarantees starting at 50 percent of the eligible Finances.
Depending on the nature and potential of the project, the guarantee can reach up to 80 percent on a case-by-case basis. The initiative is designed to advance Oman’s economic diversification by backing firms that create jobs, raise non-oil exports, and deepen in-country value with an initial focus on manufacturing, renewable energy, logistics, tourism, agriculture, and fisheries.
The agreement was formalized by Khalid Al Kayed, Chief Executive Officer of Bank Nizwa, and Hussain Ali Al Lawati, Chief Executive Officer of Development Bank.
This launch builds on the Development Bank’s growing support for local enterprise. In the first half of 2025, the Development Bank approved $283.6 million across 3,716 loans, up year-on-year in both value and volume, with notable momentum in service businesses and tourism-linked projects.
Working-capital approvals also increased, reflecting demand from smaller firms across the regions as they invest, hire, and expand capacity, as per the statement.
Khalid Al Kayed CEO – Bank Nizwa
“This partnership with Development Bank marks a significant step in Bank Nizwa’s journey to empower Omani businesses and support the nation’s broader economic transformation. As the Sultanate’s most trusted Islamic Bank, we are deeply committed to providing innovative, Sharia-compliant financial solutions that enable enterprises/ corporate (including SMEs) to grow, diversify, and create lasting impact across key sectors of the economy. By facilitating access to financing under the Financing Guarantee Program, we are reinforcing our role as a reliable financial partner while actively promoting entrepreneurship, job creation, and sustainable national development.”
Hussain Al Lawati, CEO, Development Bank, said that, “This is about confidence – confidence for entrepreneurs to invest, for banks to lend and for Oman to accelerate private-sector growth. By standing behind up to 80 percent of qualifying corporate Financing Opportunities, we are widening access to finance not only for exporters but for the enterprises that train young Omanis, buy locally, and build resilient supply chains.”
“When more Omani SMEs and other corporates can hire, upgrade operations and scale the gains, this will show up in sustainable jobs, stronger non-oil revenues and higher in-country value,” Al Lawati further added.
