In line with the Government’s initiatives to boost the Small and Medium Enterprises (SME) sector in the Sultanate, Sohar Islamic has announced yet another significant addition to its product portfolio – SME Financing. This new product aims to provide a boost to entrepreneurs in Oman, while fully conforming to the precepts of Shari’ah law.
Sohar Islamic’s SME product provides financing solutions at competitive rates offering higher financing limit (up to 90% of the asset price) for a maximum tenure of 5 years. The product enables small and medium businesses to buy construction equipment and machinery and commercial vehicles in a shari’ah compliant manner. The product is underpinned by simple application and approval process thus ensuring quick turnaround time (TAT), tie ups with major dealers of equipment and commercial vehicles, collateral-free financing (financed asset constitutes the primary security), and Less documentation.
“At Sohar Islamic, it is a matter of priority for us to encourage all entrepreneurs and provide them with essential financial support through our network of branches spread across the Sultanate. With this new product, entrepreneurs can take advantage of the low down payment to add additional assets to grow and consolidate their business operations.
This product also is also expected to help create further job opportunities for Omanis” commented Mohammad Haris, AGM of Sohar Islamic.
He also mentioned, “As with all Sohar Islamic financial products, the SME finance product is also fully compliant with Islamic Shari’ah law and provides an attractive Islamic finance solution for small and medium businesses. We are proud to add yet another innovative product to Sohar Islamic’s portfolio.”
With the launch of this new product, Sohar Islamic is encouraging entrepreneurial Omanis to actively participate in the rapid growth of the SME sector, in line with the Royal directives of His Majesty Sultan Qaboos Bin Said and on the recommendations of the Central Bank of Oman, which has advised all Banks in the Sultanate to support and ease the processes for SME’s.
In addition to the SME finance, Sohar Islamic has a comprehensive range of banking solutions that cover a wide array of retail and corporate financing needs. The financial solutions include auto finance, term deposits, savings accounts and current accounts for the bank’s retail customers. For its business clients, Sohar Islamic offers asset finance, working capital finance, trade finance, treasury and investment products.
To ensure that all products and services offered by Sohar Islamic adhere to the highest level of Shari’ah-compliance, they were specifically designed to meet certain key criteria – a complete segregation of funds; stand alone and independent branches, separate sales staff, a strong Shari’ah supervisory board and Shari’ah audit and compliance unit; committed management; the world’s best Islamic banking software; and compliance with the standards of the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).