MUSCAT: The Oman Development Bank achieved high growth rates in credit performance during Q1 2023, as the value of approved loans of various categories amounted to RO 26.7 million, an increase of 77 per cent compared to RO 15 million in Q1 2022.
The manufacturing sector is the biggest beneficiary of Oman Development Bank with a total amount of RO 8.4 million distributed over 485 loans, including light workshop projects of an industrial nature.
The total approved financing for the tourism sector amounted to RO 4.9 million, benefiting 78 projects, with a growth rate of 386 per cent compared to the same period in 2022 with RO 1 million.
The approved loans for the fisheries sector also achieved a slight increase by 10 per cent compared to last year, bringing the value of financing to the sector to RO 4.3 million, distributed over 586 fish loans of various sizes. The loans from professional and general services ranked fourth, with a loan value of RO 3.1 million, distributed over 299 loans.
The approved loans for the agricultural and livestock sector increased by nearly 100 per cent in terms of value and the number of beneficiary loans with and 311 loan approvals with a total value of about RO 2.7 million.
Approved loans to the health sector accounted for the highest growth rate in terms of value, amounting to 509 per cent compared to the first quarter of last year, bringing the total approved amount to RO 1.8 million distributed over 14 loans, while the total approved amounts last year amounted to RO 300,000.
The educational sector achieved a slight growth of 3 per cent, bringing the total value of loans approved for the sector to RO 1.4 million, distributed over 32 educational loans.
Meanwhile, ODB financed a mining project with a total value of RO 100,000 and seeks to increase its contribution to financing this promising economic sector, especially in mining projects that constitute inputs for the localisation of industries and projects based on innovation in converting primary raw materials into high-value products that are in highly in-demand in local and global market.
The Muscat Governorate had the highest value in terms of amount of approved loans during Q1 with approximately RO 5.5 million, followed by the Governorate of South A’Sharqiyah, with a total value of RO 4.9 million distributed over 415 loans. North Al Batinah Governorate on the other hand, has a total value of RO 3.4 million and 257 loans, Al Buraimi Governorate with RO 2.6 million, then Dhofar Governorate with a total value of RO 2.4 million.
The total amounts approved for loans in the Governorate of South Al Batinah reached RO 2 million, followed by the Dhahirah Governorate with a total value of RO 1.5 million, the Dakhiliyah Governorate with a total value of RO 1.4 million, and then Al Wusta Governorate with a total value of RO 1.2 million, the governorates of Musandam and North Al Sharqiyah with to RO 900,000 each, with the bank seeking to expand financing projects that enjoy high added value in the governorates.
Hamad bin Salem al Harthy, Acting CEO of Oman Development Bank, stressed that the bank seeks to be an important contributor to the national economy and to increasing value-added projects, explaining that the bank targets high growth rates during its short-term operational plan (2023-2025). The bank hopes that it will reach the size of the lending portfolio and will reach RO 300 million, with an annual increase of more than 15 per cent.
He said that the royal directives and legislation that the bank is working on, in cooperation with the relevant government agencies, will accelerate the achievement of the targeted numbers and increase the bank's contribution to achieving the goals of Oman's Vision 2040, especially in economic diversification and governorate development.
He pointed out that the bank has worked to enhance the services provided by its branches spread across all governorates of the Sultanate of Oman to receive all categories of micro, small and medium financing and corporate loans, with a lending volume of up to RO 7.5 million for qualitative projects implemented outside Muscat Governorate. — ONA
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