Muscat: Sharakah, Oman’s leading SME development company, has introduced a diverse range of Shariah-compliant financial solutions tailored to small and medium-sized enterprises (SMEs). As the first SME-focused fund entity in Oman to offer such products, Sharakah is reinforcing its commitment to ethical, sustainable, and impactful financing while addressing the growing demand for Sharia-compliant financial solutions.
Sharakah’s vision has long been rooted in supporting entrepreneurs with innovative, responsible, and sustainable financial offerings. Recognising a significant market demand for Islamic funding options, Sharakah has designed its new financial solutions to empower SMEs while ensuring full adherence to Islamic principles.
Unlike the current market, where only commercial Islamic banks or Islamic windows provide such offerings, Sharakah’s entry into the space fills a major gap in the SME funding ecosystem., Sharakah is stepping into an untapped market with strategic timing.
Commenting on the launch, Ali bin Ahmed Muqaibal, CEO Sharakah stated, “This launch marks a transformative shift in SME financing in Oman. By bridging the gap between Islamic financial principles and SME funding needs, we are fostering a more inclusive and ethical financial ecosystem. Many SMEs were at risk of being left behind due to the lack of Shariah-compliant options. To address this, we conducted a thorough market analysis, identifying key gaps and developing tailored solutions that empower SMEs to grow while adhering to Islamic financial principles. As the first SME-focused entity to introduce these products in Oman, we take pride in offering a unique and competitive advantage that enables businesses to thrive without compromising their commitment to Shariah-compliant financial practices.”
Sharakah’s Shariah-compliant financial products have been rigorously evaluated and certified by M/s Eltizam Sharia Financial Consultancy, a specialist in Sharia-compliant financial solutions. This certification ensures that all financing structures comply with Islamic guidelines, providing SMEs with a credible and ethical alternative to conventional funding. The groundwork for this initiative was laid through an earlier Memorandum of Understanding (MoU) between Sharakah and Eltizam, reinforcing the company’s strategic commitment to expanding its Islamic finance portfolio.
Eltizam’s role extends beyond certification. It includes reviewing and structuring Sharakah’s contracts, verifying compliance with Shariah standards across legal, technical, and operational procedures, and offering continuous Shariah consultation. Eltizam also provides employee training through a series of workshops to ensure internal alignment with Shariah principles.
The newly introduced Shariah-compliant financial solutions cater to diverse business needs, offering flexibility, ownership opportunities, and investment management while ensuring compliance with Islamic finance principles. Among these offerings is Ijara Muntahia Bittamleek, a lease-to-own model that enables businesses to acquire assets through a structured leasing plan, providing financial stability and a clear path to ownership. Similarly, Musharakah Muntahia Bittamleek operates as an equity partnership, where Sharakah co-invests in SMEs and gradually transfers full ownership to them, fostering shared success and long-term sustainability.
For businesses seeking Shariah-compliant investment management, Wakala Bil Istithmar is a structured investment agreement where SMEs manage funds entrusted by Sharakah, generating returns while ensuring full adherence to Islamic financial principles. Additionally, Murabaha, a cost-plus financing model, offers an ethical alternative to traditional loans by allowing SMEs to purchase assets at a pre-agreed profit margin instead of incurring interest.
These offerings are designed to accommodate both short-term and long-term funding needs, with varied repayment structures. They provide a much-needed alternative for SMEs that prefer Islamic financial products due to religious beliefs or ethical considerations. Importantly, Shariah-compliant funding also protects businesses from interest-on-interest charges in cases where a project fails for genuine reasons, an additional safeguard for entrepreneurs.
Sharakah’s deep-rooted expertise in SME lending and its strong support framework, often described as handholding, sets it apart in the market. This unique positioning allows the organisation to provide funding and also guide SMEs through their development journey, enhancing the chances of sustainable success.
About Sharakah
Sharakah, among Oman’s first SME development initiatives has been fostering the entrepreneurial spirit since 1998 when it was incorporated by Royal Decree No. (76/98). Since its inception, Sharakah has provided support to a substantial number of projects in different sectors through awareness, training programs, financial support, consultation services and more. Playing a strategic role in the SMEs ecosystem in the Sultanate and making a positive impact is Sharakah’s vision, and its strategies revolve around the objectives of benefitting the Omani SME sector.