Iran to offer merchants loans to expand trade with Oman

Finance Materials 25 August 2022 11:12
Tehran, Iran Trend News Agency
Iran to offer merchants loans to expand trade with Oman

The National Development Fund of Iran is offering buyers' credit alongside sellers' credit to Iranian merchants for trade with Oman and re-export of its non-oil products, Mohsen Zarrabi the Chairman of Iran-Oman Joint Chamber of Commerce told Trend.

The National Development Fund is expected to sign a contract with two Iranian agent banks, Saman Bank and Middle East Bank, to provide credit to businessmen and suppliers that work with Oman, he said.

Buyers' credit is a loan extended to buyers or overseas employers (importers) to purchase Iranian commodities and services, he explained.

Sellers' credit is in form of working capital that aims to increase Iran's export, he stressed adding that the country plans to expand trade with Oman and requires financing to organize part of the production in Oman.

Referring to Iran's plan to complete the production supply chain in Oman he pointed out that Iranian producers who manufacture part of production in Oman could re-export the products based on the free trade agreement signed between Oman and 16 Arabian and African countries, the US, and four European countries.

According to Oman regulations, if 30 percent of a production process is carried out on Oman soil, the product is exempted from customs fees, he said indicated that Iranian manufacturers need small investments in Oman to produce and the Iranian government is offering loans to producers from the National Development Fund.

Iran can produce commodities such as agricultural products, food items, construction materials, and medical equipment in Oman and re-exported them to other markets, he noted.

Iranian producers can transfer semi-finished commodities to Oman for being processed and re-export the products to other countries.

According to the official, there is no cap on loans that will be offered by the National Development Fund and the sum will be based on projects.