Regional and sectoral wise disbursement of small and medium scale loans in Oman Development Bank
| Date | 01 April 2011 |
| Pages | 17-25 |
| DOI | https://doi.org/10.1108/20425961201000027 |
| Published date | 01 April 2011 |
| Author | S. Hemavathy Nithyanandhan |
| Subject Matter | Public policy & environmental management |
Copyright © 2011 WASD 17
*Corresponding author: Mazoon College, Sultanate of Oman; e-mail: hema.nithyanandhan@gmail.com
Regional and SectoRal wiSe
diSbuRSement of Small and
medium Scale loanS in oman
development bank
World Journal of Entrepreneurship, Management and Sustainable Development, Vol. 7, No. 1, 2011
S. Hemavathy Nithyanandhan*
Mazoon College, Sultanate of Oman
Abstract: The Oman Development Bank (ODB) was established in the year 1976 under
the Royal Decree No 31/76. The ODB is the first specialised development bank started
in Sultanate for the purpose of contributing to the economic and social development
in the country. ODB is attracted by more local and foreign investments created many
investment opportunities in development projects by providing the funds, technical
support and advice to its clients especially in the establishments of Small and Medium
Scale Enterprises (SMEs). The objective of this study is to analyse the role of ODB in
financing the small and medium scale industries with the aid of qualitative data. The
study analyses the approved loans in region wise. To study the effectiveness of ODB in
financing small and medium scale industries in sector wise. The study period is from
2006 to 2009. The analysis and findings of this study provide useful information for
bankers, policy makers and to the customers who seek to start SMEs in Sultanate.
Keywords: Sultanate; Oman Development Bank; ODB; Small and Medium scale Enterprises;
SMEs.
intRoduction
The Oman economy has grown strongly
over recent decades, with oil at the heart
of this growth story. Real GDP has seen
a high growth rate since 1980, regularly
out-pacing world averages. From 2000
to 2008, average real GDP growth was
5.5%. On the prevailing higher oil pric-
es, robust domestic demand, increased
non-oil exports and investment climate,
the preliminary estimates of the national
accounts indicate a Financial Year 2008,
GDP growth at current prices at about
40%. This could result in a nominal
GDP of RO 22.4 billion.This is achieved
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