Thursday 14 / November / 2024
Muscat: An interest subsidy refund cheque was handed over to Al Safwa Trading Company (ASTCL) at a special event. The refund money was given to Warith Al Kharusi, chairman, ASTCL by Raphael V Parambi, CEO of SME Development Fund (SMEF).
The function was attended by representatives of both the companies. Eligible small and medium enterprises (SMEs) are offered finance at subsidised interest rate. Subsidised interest refunds are made to customers at the end of every 12th month. The net interest paid by eligible SMEs is a very attractive four per cent, on a reducing balance basis.
ASTCL is a SME focused on logistics and facilities management for big corporates notably in the oil and gas area. The company has been set up by Warith Kharusi, an Omani professional with over 20 years of senior level experience in these areas in PDO. The company had approached SME Fund for its financial and business support for setting up staff accommodation and logistics in Barka.
Since the support was extended, a year ago, ASTCL has made rapid strides, more than doubling the accommodation facility from 400 to 1,100 head capacity. It has also created an integrated pallet handling yard within the premises to cater to the requirements of the logistic sector developing in the area.
The company follows the philosophy of recruiting high potential Omani youth and grooming them with on-job training to handle various aspects of their business and has steadily increased its Omanisation from 16 per cent to 50 per cent at end of December, 2015.
Grow in stature
Speaking on the occasion, Warith Kharusi stated that the sound accounting processes, set up with the help of SMEF, and their monitoring and guidance had helped the firm grow in stature and confidence.
The company is already in the process of planning the next stage of growth and was confident of contributing to economic diversification and enhanced in-country value accretion in the Sultanate.
He encouraged SMEs to avail of the integrated services provided by the Fund and seek to grow and to strengthen their balance sheet.
Parambi, appreciated the rapid growth and professional approach of ASTCL which today has won the confidence of blue chip clients like Bahwan Engineering Company, PZ International Constructions and Global Source Technical Solutions.
SMEF’s nurturing service, comprising accounting support, free software, monitoring & mentoring is aimed at helping other SMEs to achieve similar growth trajectories.
Therefore the four point plan linked payment of interest subsidy to the compliance of borrowers to the nurturing programme. SMEs, were gradually realising the importance of maintaining books of accounts and adhering to financial discipline and we were gratified that many of our SMEs like ASTCL had indeed grown as a consequence and been able to win the confidence and business of the best corporates in the country.
The SME Development Fund (SMEF) has been established under the Sultanate’s offset program, with the objective of developing entrepreneurship and financing small and medium enterprises in the Sultanate.
It was launched in March 2014 and commenced operations in April 2014.
SMEF’s objectives are the financing and supporting of growing SMEs and the ‘creation’ of new entrepreneurs. Creating entrepreneurship, funding, nurturing and legitimising are the Four Point Plan of SMEF.
Under the Nurturing Plan, the Fund supports entrepreneurs with accounting, software, monitoring and mentoring. Accounting support is provided by top accounting firms.
