ODB provided loans worth RO 320m

By: Zainab al Nassri

MUSCAT: The Oman Development Bank (ODB) has provided 40,584 loans at an average of 4,584 loans every year, to the tune of RO 320 million. The annual average of loan amount stands at RO 32 million. This was revealed during the ‘Bestowal Fruits’ ceremony, presided over by Shaikh Al Fadhl bin Mohamed al Harthy, Secretary-General of the Council of Ministers, yesterday at Hormuz Grand Hotel.

During the ceremony, Shaikh Al Harthy launched the “Success Stories” book, which recounts the stories of 36 projects financed by ODB and achieved great success in their fields. In addition, the proprietors of such projects; started with small initial stages till they became big and sustainable projects that succeeded in providing many job opportunities and providing new services and products for the citizens in the governorates, were honoured.

Hamad bin Salim al Harthy, Acting General Manager of ODB, said: “We have reviewed some programmes that show the achievements of the bank during the past stages through which we confirm that ODB has kept pace with the government’s plans aiming to diversify the sources of income and providing opportunities for the Omani youth to be involved in business and investment sectors.”

He said that the main objective of ODB is to contribute to the development of the national

economy by financing, developing and expanding the economic

projects till they become big economic entities.

He explained that the bank takes pride in making such achievements made the big projects and companies has it financed.

During the ceremony, Talal al Zedjali, Director of ODB’s branch in Seeb, gave a presentation on the size of loans provided by the bank during the last ten years.

Al Zedjali said that the highest value of loans was granted in 2013 logging RO 51 million; while the lowest value of loans was given in 2005 logging RO 6 million.

The agriculture, livestock and fisheries sectors got 78 per cent of the total value of such projects and the default rate has not exceeded 9 per cent by the end of 2014.

He indicated that the highest number of loans granted by the bank was in 2008 and reached 5,888 loans; while the lowest number was granted in 2005 and reached 1,525 loans.

The data explained that the fisheries sector got the lion’s share of the loans in terms of the number. The sector received about 25,000 loans with a total amount of RO 72.3 million. It was followed by agriculture and livestock sector with 10,000 and 480 loans in total amounting to RO 55.6 million.

Education and health services sector received 632 loans in total amounting to RO 19.3 million; while tourism, professional and public services sector received 1,835 loans in total amounting to RO 45.3 million.

The industry, mining and building materials sector obtained 1,373 loans amounting to RO 52.1 million; while the chemicals, petrochemicals and petroleum industries received 902 loans amounting to RO 17 million.

The other industries got 4,371 loans with a total value of RO 85.3 million.

The data indicated that the fisheries sector has acquired 52 per cent of the loans and 23 per cent of their value.

It was followed by the agriculture and livestock sector with 26 per cent of the loans and 18 per cent of their value.

The other industries sector came third with 11 per cent and 18 per cent respectively.

As for the tourism services sector, it obtained 4 per cent of the number and 14 per cent of their value.

The mining and building materials sector received 3 per cent and 16 per cent respectively.

The statistics indicated that the Governorate of Muscat got the largest loans in terms of the value during the last ten years with 2,845 loans amounting RO 77.2 million; while the Governorate of Musandam got the lowest numbers with 2,527 loans amounting to RO 11.6 million.

As for the number of loans; the Governorate of Sharqiyah South received the highest number with 22 per cent; while the Governorate of Al Buraimi received the lowest with 2 per cent of the loans only.

Al Zedjali indicated that a big segment of the local investors has benefited from the loans provided by the bank

which are distributed according to the nature and characteristics of the governorates and the wilayats or according to the economic activity prevailing in them.

SOURCE: OMAN DAILY OBSERVER

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