Two Loan Agreements totaling KD 90 Million were signed between the Omani Government and the Arab Fund

Two loan agreements totaling KD 90 million and a guarantee agreement were signed in Muscat on the 16th of July 2019 to help finance two projects in the Sultanate of Oman.

The first loan agreement was signed by H.E. Mr. Naser Bin Khamis Bin Ali Al-Jashmi, Secretary General, Ministry of Finance. The second loan agreement was signed by the General Manager of Oman Housing Bank (S.A.O.C), while the guarantee agreement was signed by H.E. Mr. Naser Bin Khamis Bin Ali Al-Jashmi. H.E. Mr. Abdlatif Yousef Al-Hamad, Director General/ Chairman of the Board of Directors of the Arab Fund, signed all three agreements on behalf of the Arab Fund.

Below are the details of these loans and the projects they will help finance:

First Project: Development of the Second Part of Road 32 in the Special Economic Zone of Duqm (Supplementary Loan).

A loan agreement, valued at KD 30 million, was signed to help finance a project which aims at contributing to the improvement and development of land transportation services in the economic zone, and accommodating the increasing traffic, which will result from connecting the main components of the development projects within its borders, most notably the commercial port, the refinery, Duqm airport, and the areas allocated for heavy, medium and light manufacturing. The project will contribute to the improvement of the movement of goods between the investment projects in the economic zone and other parts of the Sultanate.

The project includes the following main components:

1. Civil Works.
2. Consultancy Services.

Second Project: Housing Program.

A loan agreement, valued at KD 60 million, was signed to help finance the Housing Program.

The project aims at alleviating the housing problem in Oman and meeting the needs of low and middle-income citizens for suitable housing, which will enable them to improve their living conditions and social situation. This will be accomplished through the provision of concessional loans to qualified citizens for the purchase or construction of housing units.

The program, which is expected to be completed by the end of 2022, consists of the provision of concessional loans by the Oman Housing Bank to qualified low and middle-income citizens for the purchase or construction of housing units. The amount of each loan cannot exceed 90% of the value of the housing unit, or 60 thousand Omani Riyals, whichever is lower, and the loan repayment period cannot exceed 25 years.

Each of the two loans will carry interest at 2.5% per annum, and will be repayable over 30 years including a 5 year grace period.

With the signing of these two loans, the Arab Fund’s total contribution to financing projects in the Sultanate of Oman now amounts to KD 801.5 Million.