The National Program for Fiscal Sustainability and Financial Sector Development "Estidamah"
Overall
Objective
Further emphasis on reinforcing the state's general budget and turning the financial sector into a key tool for achieving Oman Vision 2040 targets through boosting sector competitiveness, offering suitable financing options for different groups, and growing the financing market's size to accommodate impending changes in the investment and economy.
Program Streams
The program is divided into two streams
First stream centered on completing and supervising the implementation of public fiscal sustainability initiatives such as reviewing financial policies and rules, enhancing the efficiency of government spending, improving the social protection system, bolstering financial management, and increasing non-oil revenues.
The second stream, on the other hand, focuses on developing the financial sector, including both the banking sector and the capital market sector. To do this, initiatives that provide financing options for SMEs, direct funding to the targeted sectors, activate the role of the capital market, enhance the attractiveness of foreign investments, in addition to activating the role of the insurance sector and developing the green/sustainable financing system are implemented.
The program also includes a number of enabling initiatives such as strengthening the judicial and legislative system, empowering cadres, developing the fintech services, and promoting financial culture.
Key Initiatives and Projects
Enhancing the efficiency of government spending
In order to boost the effectiveness of expenditures at the level of providing government services to citizens, this initiative focuses on analyzing the financial statements of expenditures and identifying opportunities to bolster spending efficiency in the relevant entities.
Promoting the role of the Development Bank in financing SMEs
This initiative involves working with the Development Bank and relevant entities to find appropriate mechanisms for effectively directing government funding to finance development projects for small and medium-sized enterprises that have economic impact and added local value.
Promoting financial culture
Through awareness-raising, effective communication, education in practice and entertainment, along with encouraging behavioral change, and combining the efforts of entities to achieve financial stability of the Omani family, the initiative seeks to promote financial culture and instill the principles of financial management, savings, and investment in society.
Using solvency as a criterion to determine who is eligible for financing options, both for individuals and entities
This initiative seeks to develop the system of Oman Credit and Financial Information Centre (Mala'a), in addition to accelerating the implementation of integrated services to enable financial institutions to lend targeted groups based on creditworthiness.
The establishment of a venture capital fund for various groups with contributions from banks
This initiative aims to establish a specialized investment fund supported by banks operating in the Sultanate of Oman, to enhance growth opportunities for small and medium-sized enterprises. “Estidamah” program is studying and evaluating successful global financing models for private sector funding. A memorandum of cooperation has been signed to study the idea of establishing the Omani Growth Fund, with the participation of several commercial banks operating in Oman.
The establishment of a market for promising companies
This initiative aims to establish a market with flexible requirements and conditions tailored for qualified investors, targeting various types of institutions: startups, small and medium-sized enterprises, closed joint-stock companies, and family businesses, in order to activate the capital market to provide additional financing options for these institutions.
