Friday 10 / May / 2024
Muscat: Oman Investment Authority (OIA)signed a Memorandum of Cooperation (MoC)with the SMEs Development Authority, as part of the efforts made by OIA and its entities to enhance the local content and In-country Value (ICV).
The cooperation programme involves launching a financing scheme managed by the SMEs Development Authority. It is directed to SMEs that are awarded contracts (tenders, procurements, or business opportunities) by OIA’s entities, whereby they are funded by 80 per cent (i.e. a maximum of OMR 250,000) of the contract/tender’s value.
To ensure that the financing product meets its objectives, the SMEs Development Authority put some criteria in place for submitting a funding application. This includes passing the Entrepreneur Readiness Programme, an intensive training programme seeking to develop technical and entrepreneurial skills to keep up with the rapid changes in entrepreneurship, in addition to enhancing technical and technological practices that contribute to the sustainability of projects, whether in project establishment and development or management of crises that may have a direct or indirect impact on the continuity of the project.
Halima Al-Zari, Chairperson of the SMEs Development Authority, commented, "This agreement is a valuable opportunity to strengthen our strategic partnership with OIA and to continue providing incentives and facilities to SMEs through ICV programmes through contracts, tenders, and business opportunities by OIA Entities. This programme rather reflects OIA’s commitment to supporting SMEs and enhancing their sustainability and contributions to the national economy. Given the recent aspirations and the attention given to amendment of regulations and legislation to ensure the provision of business opportunities and assignment of procurement and tenders to entrepreneurs, this partnership will contribute to creating more business opportunities for SMEs and increasing available information about the future needs of industries, supplies and services, particularly as local supplier development programs require that entrepreneurs have specialised skills that we will enhance over the coming period through various programs that meet the standards and requirements set by OIA entities in various economic sectors.”
Sheikh Nasser Al-Harthy, Deputy President of Operations at OIA, said: “In line with the Royal directives on enhancing the local content, the programme contributes to the efforts aiming to localise domestic industries and enhance the role of SMEs in developing the national economy, in addition to encouraging national services and products and promoting them in the markets instead of importing them from abroad. This will ultimately contribute to the efforts made by OIA and its entities with regard to empowering the private sector and supporting the national economy.”
In addition to creating business opportunities for SMEs through ICV programmes by OIA Entities, the programme seeks to provide information and data on the future needs of industries, supplies, and related services that can be localised or developed locally. As a result, SMEs will have greater opportunities to compete and benefit from wide business opportunities, which create direct and indirect job opportunities for the national workforce.
