Al Raffd Fund signs agreement with Sandan to support 20 young entrepreneurs

September 16, 2017 | 11:30 AM

The selected 20 SMEs will get soft loan with special terms and conditions and the projects include automobile showrooms for used cars, workshops and warehouses. – Ismail Al Farsi/Times of Oman


Muscat: A cooperation agreement was signed by Al Raffd Fund with Sandan Development Company to provide financial support to 20 small and medium enterprises, which are starting their business within Sandan Light Industries Park.

The selected 20 SMEs will get soft loan with special terms and conditions and the projects include automobile showrooms for used cars, workshops and warehouses.

“The SME sector plays an important role in developing various sectors and creating jobs for Omani youth,” said Tarek Al Farsi, chief executive officer of Al Raffd Fund. He added that Sandan project is a first of its kind in the Sultanate to support development of small and medium enterprises.

Both Sandan and Al Raffd Fund have a common vision in supporting and encouraging small and medium enterprises, said Eng. Saeed bin Nasser Al Rashdi, chief executive officer of Sandan Development Company.

Al Farsi said that his fund would extend financial support to more units that are coming up at Sandan premises in the second phase of development as well.

“This confirms that we are in the right direction and this requires more effort in the next phase in close cooperation between various parties,” added Eng. Al Rashdi. “We recognise that small and medium enterprises have an important and strategic position in the national economy.”

Small and medium enterprises, which play an important role in the development of national economy, help in achieving economic diversification. Further, these projects provide thousands of job opportunities for Omanis.

SME sector constitutes 90 per cent of all economic activity and 60 per cent of workforce across the world.

Al Raffd Fund aims at developing entrepreneurship among youths, strengthen economic diversification and crate job opportunities for local youths.

The fund targets those who aspire to start their own business, including job seekers, rural women, artisans and professionals.

Al Raffd Fund provides soft loan at an interest not exceeding 2 per cent, besides offering training programmes on accounting and administration.

The agreement was signed by Al Farsi from Al Raffd Fund and Al Rashdi from Sandan Development Company and the event was attended by several entrepreneurs and journalists.

Eng. Al Rashdi said that the light industries park, which is a unique project in Oman that is coming up at Mabela, will be ready by the third quarter of 2018. The integrated light industries park houses purpose-built vehicle showrooms, workshops, offices, building material outlets and accommodation for workers, all on par with international standards. With three front line entry and ten exits, the project is ideally located for customers coming from Muscat or Batinah and ensures the smooth flow of traffic.

Sandan Light Industries Park opens a window of promising investments and development through the small and medium enterprise sector for dynamic young entrepreneurs to build a wide range of projects. The park has an area of 250,000 square meters and will accommodate 2,400 vehicle showrooms for used cars, workshops and building material showrooms. Further, it will have 4,500 offices and 1,800 residential units.

The automobile units include used car showrooms, spare parts units, garages, auto electricians, tyre vendors and accessory units, while construction related units include sanitaryware shops, ceramic tile shops and carpentry and aluminium workshops. The industrial park will have the largest number of used car showrooms in a siingle location in Oman. There will be around 56 used car showrooms, which will be able to sell 1,100 cars at the same time. Further, there will be other facilities like banks, money exchanges and restaurants.

When the project is completed, the park can accommodate 10,000 people with services ensuring a comfortable living environment with a mosque, hypermarket, hospital, shopping centers, banks, travel offices, restaurants and many other amenities.

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