HSBC Bank Oman has launched an international growth fund, committing OMR20m to Oman’s international and internationally aspirant SMEs.
The Fund is open to new and existing customers with cross border trading requirements or those that aspire to grow internationally, and which have an annual turnover of OMR 1 million and above.
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Announcing the launch, Andrew Long, Chief Executive Officer, HSBC Bank Oman said: "Today we are delighted to announce the launch of our International Growth Fund, for which we have allocated 20 million rials. SMEs are critical to the future of Oman’s economy and at HSBC Bank Oman we are committed to Oman and the businesses that support the ongoing growth, modernisation and diversification of the country’s economy.
"The International Growth Fund is aimed at supporting those businesses in Oman who have international requirements and those that aspire to trade internationally – this is where we believe we can add most value, using our local knowledge and expertise combined with HSBC Group’s international connectivity. We continue to work closely with relevant government authorities and key working groups to ensure that this segment flourishes and grows, in recognition of the importance of SMEs to the national agenda of Oman."
"The International Growth Fund is new for HSBC Bank Oman. The Fund is based on an existing formula that has already been successfully launched in other countries, including the UAE and Egypt. In fact, HSBC was the first bank in the UAE to launch a fund like this in 2010 and has renewed the fund annually since then. In 2013, HSBC also launched the International Growth Fund in Egypt."
International and internationally aspirant SMEs play an important role and have a unique opportunity to increase their contribution to the Oman economy. HSBC Bank Oman actively seeks to support them in this ambition. SMEs represent over 90% of the total number of registered firms in Oman but the combined contribution to GDP is only around 15%. This, combined with the fact that 78% of firms in Oman employ five people or fewer and therefore account for less than 10% of total employment nationwide, demonstrates the opportunity that these businesses have to make a material contribution to the growth and diversification of the economy in Oman.
H.E Dr. Ali bin Masoud Al Sunaidi said, "We are delighted to see further contributions from the private sector to support the important SME segment in Oman. The Fund launched today by HSBC Bank Oman complements the efforts of the government in this regard and demonstrates the Bank’s continuing commitment to support SMEs across the Sultanate. We hope to see many SMEs benefit from this Fund, leveraging the local and global expertise that HSBC Bank Oman can provide."
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By GlobalDataLooking at the international SME landscape, confidence that export and import trade volumes will increase over the next 12 months is strongly positive. With continued GDP growth of c. 3-4% and over USD 100 billion worth of major projects planned in the country, there is significant opportunity for SMEs to capture.
The fund will be administered by HSBC Bank Oman’s Business Banking team. Daniel Felton, Head of Middle Market & Business Banking for HSBC Bank Oman added, "The SME sector is very important to Oman’s economy, both from an employment perspective and for the role these businesses play in both the traditional oil & gas industries, as well as the industries contributing to the diversification of the Oman economy, such as tourism, professional services, health care and logistics.
"HSBC research suggests that in the medium- to long-term, the fastest growing exports will be to emerging markets such as Vietnam, China, India, Malaysia and Indonesia. The UAE, Turkey, Egypt and neighbouring Saudi Arabia will also become increasingly important sources of demand. We will see similar trends on the import side. Although developed countries are currently some of the fast-growing importers to Oman, by 2030, emerging markets such as Vietnam, India and China will become increasingly prominent.
"It is clear that businesses, large and small, need to position themselves to make the most of international opportunities – taking advantage of international trading corridors – in order to continue to grow and succeed. The Middle East is a historic trading hub for East to West trade flows, and alongside the ongoing infrastructure development in country, Oman is becoming well placed to take advantage of these.
"We believe that international and internationally aspirant SMEs will truly benefit from the International Growth Fund in this regard and look forward to speaking to both new and existing customers in the coming days on how best we can support the ongoing growth of their business."
