Two cooperation agreements inked to enable investment in health sector

Muscat: The Ministry of Health on Tuesday signed two memoranda of cooperation with the Development Bank and Sohar International, as part of the strategic direction to strengthen partnerships between the government sector and national financial institutions, and to enable investment in the health sector.The memoranda were signed on behalf of the Ministry by Dr. Hilal Ali Al Sabti, Minister of Health; on behalf of Development Bank by Mahmoud Abdullah Al Awaini, Secretary General of the Ministry of Finance and Chairman of the Board of Directors of the Development Bank; and on behalf of Sohar International by Abdul Wahid Mohammed Al Murshidi, Chief Executive Officer of the Bank. The Minister of Health affirmed that increasing local production rates of medical supplies and health products constitutes a core pillar for enhancing the resilience of the health sector and building specialised national capacities.He further stated that the Ministry seeks to attract sustainable investments that support domestic industry and ensure the security of medical supply chains. He noted that the two memoranda establish an institutional implementation framework for this strategic direction, without compromising the rigorous technical and commercial evaluation of submitted proposals, and support the objectives of Oman Vision 2040, particularly with regard to building a sustainable health system and expanding access to services.With respect to the partnership with the Development Bank, the memorandum provides for the enhancement of joint efforts to identify investment needs in the health sector and to familiarise project owners with financing requirements, thereby supporting projects that align with Oman's health priorities and meet the quality and licensing standards approved by the Ministry.This step comes amid growing health investment opportunities that extend beyond hospitals to encompass medical industries, outpatient care services, diagnostics, rehabilitation, long-term care, and digital health.On his turn, the Board Chairman of the Development Bank stated that the Bank has approved financing for 230 loans in the health sector during the period from 2023 through July 2026, which has provided the Bank with accumulated expertise in meeting the financing needs of this sector.He noted that the value added of the health sector recorded growth of 7.3 percent during the first quarter of 2026, affirming that this partnership complements the Bank's role in diversifying the national economy and achieving the objectives of Oman Vision 2040.With regard to the localisation of medical industries through the partnership with Sohar International, the memorandum aims to establish a framework for evaluating and referring projects eligible for financing. The partnership aspires to raise the share of locally manufactured health products to no less than 30 percent over the next three years, compared to the current level of approximately 9 percent across 20 existing factories, while imports currently account for 91 percent of market needs.The memorandum seeks to enable investors wishing to establish new factories or expand existing facilities. Under the agreement, the Ministry of Health conducts the preliminary feasibility assessment of projects, then refers applications that meet the criteria to the Bank for evaluation and financing decisions, in coordination with the Ministry.Regarding this partnership, the Chief Executive Officer of Sohar International stated that financing becomes more effective when directed toward building productive capacities that yield economic and social benefit—a principle embodied by the health industries.