FAQ

Essentially an entrepreneur is someone who starts a new business venture. However, we tend to think of entrepreneurs as people who have a talent for seeing opportunities and the abilities to develop these opportunities into a profit-making business.

Essentially an entrepreneur is someone who starts a new business venture. However, we tend to think of entrepreneurs as people who have a talent for seeing opportunities and the abilities to develop these opportunities into a profit-making business.

SMEs are much greater in number than large companies in most economies. They drive innovation and competition in many sectors, create jobs and are crucial in fostering national competitiveness.

In Oman, 90% of our businesses can be categorized as SMEs.

The Ministry of Commerce and Industry recently announced a revised definition for SMEs as per this table

Enterprise SizeHead CountAnnual Sales
MicroFewer than 5 workersLess than RO25,000
Small5-9 workersRO25,000–250,000
Medium10-99 workersRO250,000–1.5mn

Sharakah defines SMEs using similar criteria; however with more emphasis on the sectors

MicroSmallMedium
Service   
Employees1-56-2526-100
Capital
RO 10,000 maximum
RO 10,000 – 100,000
RO 100,000 – 500,000
Trading   
Employees1-56-2526-100
Capital
RO 10,000 maximum
RO 10,000 – 250,000
RO 250,000 – 1,000,000
Manufacturing   
Employees1-1011-5051—150
Capital
RO 20,000 maximum
RO 20,000 – 250,000
RO 250,000 – 2,000,000

Sharakah offers business development and consulting services for SMEs who are at startup or growth stage as well as financial support in three different schemes.

Sharakah believes that the first few years of any business are the most critical that is why we provide dedicated business development services to ensure the continuity, growth and sustainability of the business. This includes:

  • Guidance on developing the business plan.
  • Guidance on producing the market research and identifying the competitive advantages.
  • Guidance on developing the cash flow statements.
  • Support in developing the marketing strategy.
  • Liaising with relevant authorities.

We provide customized financial solutions to suit your business needs and we have three different schemes:

  • Loans : Assets based funding and working capital
  • Equity Finance : for high growth sectors
  • Bill Discounting : for short term requirements

Sharakah charges 5% as Interest rate and between 0 to 2% risk rate depending generally on (project viability, client`s capability and commitment).

Yes Sharakah allows a grace period and it varies between abusiness to another. However, on average it is expected between 3 months to 6 months.

The Bill Discounting scheme is offered for companies which have been operating for at least 18 months and have not been in default to banks / financial institutions. It aims to improve the cash flow and liquidity of SMEs by providing them with immediate cash against the goods sold and or services provided to large purchaser companies having good financial track record. The credit period shall not exceed 90 days. The rate of Interest is calculated as follow:

  • Upto 30 days 1%
  • 31 to 60 days 2%
  • 61 to 90 days 3%

In general, Bill Discounting is a short term financing for a period between 6 months to a year.

We target all SMEs in general but to be more specific those who fall within these criteria:

  • Total project cost (New or Existing) should not exceed RO 1 million.
  • Businesses that require financial assistance between RO 10,000 and RO 200,000.
  • Entrepreneurs with viable business plans.
  • Businesses that will provide employment opportunities and contribute to community development.
  • Entrepreneurs who have adequate skills to manage the business.
  • We support both Start-up and existing high growth companies.
  • Start-up companies who are willing to contribute 33% of the investment amount and 20% for existing businesses.
  • Projects that can attract Funding from other private investors, individuals or financial institutions if needed.
  • Projects that are able to produce products and services that have a competitive advantage and have potential for significant sales growth.
  • Projects that are able to generate capital gains through the sale of its shares within 6 years in the case of an equity partnership.

Omanis that have adequate skills to manage their business, have the commitment and courage, are ready to commit their time and are willing to contribute partial funding of the project. Indeed, Sharakah`s decision for sanctioning projects relies on these major criteria: The applicant`s capabilities; interest and readiness to start a business venture; commitment; and viability of the business.

Generally, Sharakah supports all sectors with a concentration on sectors that add value to the local economy and contribute to employment creation for locals. For a list of all activities that Sharakah supports visit our website.

Usually the process does not exceed 6 weeks, from the day we have received all required documents including a viable business plan, audited financials and else. For a detailed process flow chart of the pre-sanction stage, please visit our website.

Sharakah doesn`t support the following sectors:

  • Direct Trading.
  • Real Estate / Construction Project.
  • Buying out or taking over any personal loans.
  • Some Agriculture and Fishers projects.

For Loan and Bill Discounting schemes, Sharakah takes security but it does not have to be 100% of the required investment amount. The type of securities that Sharakah accepts vary and they can be Personal Guarantee, Third Party Guarantee, Security Cheque, Company Mortgage, Assignment of Receivables/ lease rentals, Properties including (Lands or Buildings), Equipment and others.

This really depends on the business type, location, size, market research, business owner and other factors. However, in general Sharakah requests the following documents:

  • A complete Business Plan/ Feasibility Study.
  • Audited Financial Statements (for existing businesses).
  • Owner(s) resume.

A detailed list of all requirements is explained in the process flow chart and that includes, checklists, forms, fees, duration, documents and else. Please visit our website for more information.

Sure, Sharakah does not have any restrictions in terms of employment status. Nevertheless, we encourage business owners who are willing to commit fully to the business.

There is a funding limit according to each scheme. Sharakah does not finance 100% of the project. In case of Equity scheme, Sharakah`s participation in the project will be minimum 25% and maximum 49%, and the assistance will be restricted between RO 10,000/- to RO 200,000/-. In Loan Scheme, Sharakah`s participation will be up to 80% for existing project cost and 67% for start-ups. The investment amount is also between RO 10,000/- to RO 200,000/-.

While one of Sharakah`s objectives is creating employment opportunities for locals, we do not impose any kind of restriction on Omanization level. However, projects that show more commitment to employ nationals have higher chances of being sanctioned.

Sharakah`s head office is located in Al Khuwair 33 near to Masjid (Jamee)Al Sultan Said Bin Taimoor.

For further information please phone (+968) 24479300 or send email to info@sharakah.om

No, Sharakah is a private organization.