Muscat – The Authority for Small and Medium Enterprises Development (ASMED) has unveiled key amendments to regulations concerning financing for SMEs and craftsmen.

These changes are expected to spur local and international entrepreneurial initiatives, persuade potential entrepreneurs to commence and nurture their businesses, bolster the GDP, and subsequently enhance the national economy, ASMED stated.

One of the changes announced is raising of the loan ceiling from RO5,000 to RO20,000. Another noteworthy modification is in the maximum age limit of applicants, introducing specific age criteria for different financing programmes. Additionally, Article 14 of the previous regulation, which limited financing to 50% of the project value, has been annulled.

The new rules also offer a more adaptable approach, enabling financing for projects not previously funded. To ensure transparency and clarity of roles, the regulation separates the responsibilities and accountabilities of ASMED and Oman Development Bank. It further stipulates the prerequisites for prospective entrepreneurs and craftsmen seeking financing.

For those keen on applying, there is a designated portal with a checklist of mandatory documents and details. Notably, the new regulations commit to a decision-making period of 60 days post application completion. Other highlights include a grace period for due instalments, disbursement mechanism and financing beneficiary obligations.

Recent data released by ASMED shows that 170 financing requests have been approved – valued at RO15,777,431 – till August 10. These are across four distinct programmes with the most being for industrial and service projects, which saw 110 applications being financed to the tune of RO11,490,905.

Muscat governorate led in the number of applications; 63 approved valued at RO4,996,762.

This was closely trailed by North Batinah and South Batinah, with projects approved worth RO3,209,869 and RO1,667,800 respectively.

Other governorates – Dhofar (RO1,280,950), South Sharqiyah (RO1,141,800), Dhahirah (RO1,105,250), Dakhliyah (RO1,038,000), North Sharqiyah (RO414,000), Musandam (RO371,000), Buraimi (RO294,000) and Al Wusta (RO258,000) – also benefitted from this financing initiative, reinforcing ASMED’s commitment to the growth and development of the SME sector nationwide.