Collaborative cross-border SME fund in the works (By IFN)

Collaborative cross-border SME fund in the works

Daily Cover

GLOBAL: The small and medium-sized enterprises (SMEs) sector has always been a driving force in propelling economies and global trade. A newly-inked cross-border MoU between Oman’s Al Madina Financial & Investment Services and ACA Amanie, a joint venture between Malaysia’s Amanie Advisors and government-backed Korea Finance Corporation (KoFC) for the establishment of a US$50 million Shariah compliant SME fund is a testament to the economic force of SMEs. The first of its kind, the fund will provide seed capital for SMEs in Oman, and is expected to be launched in the first quarter of 2013. KoFC and the Omani government will each fund 25% of the capital for each project, with the rest to be provided by a South Korean firm that will provide technology expertise for the SME project, according to Khalid Ali Saif Al Yahmadi, CEO of Al Madina, in an interview with local daily, Times of Oman. He also said that the SME fund is the first offering in what could be the beginning of cross-border funding to be launched by the joint venture, with plans to establish a fund for infrastructure projects.