Oman's Authority for Small and Medium Enterprises Development (ASMED) hosted a dialogue session on November 3 to explore ways to improve SMEs' access to commercial bank financing and boost their contribution to GDP, Oman Daily Observer reported.

The session, part of efforts to develop a national SME strategy, examined current financing challenges and potential solutions to enhance credit facilities.

The initiative falls under the "Estidamah" fiscal sustainability programme, which involves the Central Bank of Oman (CBO), commercial banks, and other stakeholders.

Data from the CBO shows that SME financing represented 3.7% of total commercial bank credit in the fourth quarter of 2024, up from 3.5% in the first quarter, which is still below the targeted 5% portfolio allocation.

"The strategy aims to set a roadmap for providing financing options for SMEs and launching initiatives to resolve current challenges in coordination with public and private sector partners," ASMED said.

The meeting brought together Estidama officials, bank CEOs and entrepreneurs to examine obstacles facing commercial banks in meeting SME lending targets and to study successful financing models from leading banks.

The dialogue reflects Oman's broader efforts to diversify its economy by supporting small businesses, which officials see as crucial for job creation and reducing dependence on oil revenues.