Oman Future Fund Launches SME Lending Portfolio

Oman is taking a decisive step toward strengthening its entrepreneurial ecosystem with the launch of a dedicated SME lending portfolio by the Future Fund of Oman, managed under the Oman Investment Authority (OIA). The initiative aims to bridge one of the most persistent gaps in the economy: the limited access of small and medium-sized enterprises (SMEs) to reliable and timely financing (WAYA).

Why SMEs Matter for Oman’s Economy

Globally, SMEs account for more than 90 percent of all businesses and contribute significantly to GDP and employment. In Oman, SMEs are seen as key drivers of the country’s Vision 2040 diversification strategy. Yet, despite their importance, many SMEs face barriers in accessing capital from traditional banks, due to high collateral requirements, strict credit checks, and lengthy approval processes.

The new portfolio directly addresses these challenges by offering fast-track financing within two weeks of application, alongside flexible repayment plans designed to ease the operational burden on entrepreneurs. By reducing bureaucratic delays and improving financial inclusion, the program is expected to inject dynamism into Oman’s private sector and support long-term sustainable growth.

Beehive Partnership and AI-Driven Evaluation

The lending portfolio is managed by Beehive, a regional fintech platform that has been pioneering peer-to-peer and SME financing solutions since 2014. Beehive employs artificial intelligence (AI)-based assessment tools to evaluate loan applications. Instead of relying solely on traditional financial statements, the system analyzes a wide range of data points, from transaction histories to business performance indicators, allowing for more accurate and fair risk assessments.

This approach speeds up the process and expands financing opportunities to businesses that might otherwise be overlooked by conventional banks. Beehive’s involvement also represents the first time a fintech financing provider has been fully integrated into the Future Fund’s ecosystem.

Building on Oman’s Investment Momentum

Since its establishment in January 2024, the Future Fund has already invested in 45 projects across 10 different sectors, committing 1.249 billion Omani rials (OMR). Of this, 885 million OMR has come from foreign direct investment, with 333 million OMR contributed directly by the Fund. These projects have collectively created over 1,600 jobs and are helping diversify Oman’s economy away from oil dependence.

The SME portfolio is seen as a natural extension of this strategy, ensuring that not only large-scale projects but also grassroots businesses receive the support they need to thrive. By empowering SMEs, the Fund is contributing to a more inclusive model of economic growth that distributes opportunity across the private sector.

Voices from the Ground

Rashid bin Sultan al-Hashmi, Senior Director at the Future Fund, highlighted how the new initiative emerged from direct engagement with entrepreneurs during nationwide roadshows. “We listened to what business owners needed most. Time and again, we heard that access to credit for operational expenses was the biggest challenge. This portfolio is designed as a practical solution to keep businesses moving forward,” he said.

Peter Tavener, Co-founder and CFO of Beehive, emphasized the significance of the partnership. “This collaboration validates our model and underscores the importance of fintech innovation in solving regional financing challenges. By combining Beehive’s technology with the Future Fund’s mission, we are in a stronger position to meet SME lending demand and contribute to Oman’s sustainable development”.

Supporting Vision 2040 Goals

Oman’s Vision 2040 is centered on creating a knowledge-based economy that reduces reliance on hydrocarbons, promotes private sector leadership, and fosters innovation. SMEs and startups are central to this transformation. By improving access to capital, the Future Fund is aligning with several key Vision 2040 pillars:

• Human capital development: enabling entrepreneurs to grow their businesses and create jobs for Omani youth.

• Economic diversification: reducing dependence on oil by supporting companies across technology, services, manufacturing, and green energy.

• Private sector empowerment: positioning SMEs as engines of growth and innovation.

As Oman faces a competitive regional environment, with Saudi Arabia and the UAE also scaling SME financing initiatives, this move helps ensure the country remains an attractive destination for both domestic and foreign investors.

The Regional Context: Gulf States Betting on SMEs

Across the GCC, governments are accelerating SME-focused policies. Saudi Arabia has been offering financial packages under its Vision 2030 strategy, while the UAE has developed a supportive regulatory framework for startups and fintechs. Oman’s new portfolio demonstrates that it, too, is committed to empowering entrepreneurs, ensuring SMEs can access not just capital but also networks, mentorship, and growth opportunities.

By leveraging fintech platforms like Beehive, Oman is positioning itself at the cutting edge of regional innovation. The use of AI in credit assessment, in particular, reflects a global trend where alternative data is increasingly used to support underserved businesses.

Long-Term Impact and Future Prospects

The success of the SME lending portfolio could pave the way for additional tools and products tailored to entrepreneurs, including digital banking solutions, micro-lending schemes, and venture capital initiatives. Analysts suggest that if the portfolio achieves wide adoption, it could significantly boost Oman’s ranking in global ease-of-doing-business indexes, while also fostering a stronger entrepreneurial culture.

Moreover, as global investors increasingly seek emerging markets with strong fintech infrastructure, Oman’s proactive measures could attract greater foreign investment into the SME space.