Role of Commercial Banks in Financing SMEs: A case study of Oman

Abstract

Oman is an oil-producing country and now it is trying to find other ways for generating further income. In the last few years, the Oman government has recognized the importance of SMEs in improving the national economy. Small and medium enterprise plays a key role in the growth and development of a country. This study covers and focused on the role of commercial banks in financing SMEs in Sultanate of Oman in Dhofar banks and Bank Muscat and barriers they face in financing SMEs. This study's findings show the role of Omani banks in providing financial facilities and government support in designing a good structure that enhances the importance of small and medium scale in national economies and provides encouragement and support to them. Each commercial bank should have a specific department responsible only for dealing with small and medium enterprises clients with appropriate methods that suit stated by the bank. Financial support should always be available for SMEs and applying and lending loan process must be easier and more appropriate for the individual.