In a significant move to strengthen Oman's healthcare sovereignty, the Ministry of Health signed two landmark memoranda of understanding today (Tuesday) with Development Bank and Sohar International at the Innovation Center at the Ministry's headquarters. The agreements mark a strategic shift toward deepening public-private partnerships and unlocking sustainable investment in the Oman’s health sector.
His Excellency Dr. Hilal bin Ali Al-Sabti, Minister of Health, signed on behalf of the Ministry, alongside H.E. Mahmoud bin Abdullah Al-Awaini, Chairman of the Board of Directors of the Development Bank, and Abdulwahid bin Mohammed Al-Murshidi, CEO of Sohar International, in the presence of senior officials from all three entities.
Speaking on the occasion, H.E. Dr. Al-Sabti emphasized that boosting local production of medical supplies and health products stands as a cornerstone for enhancing the resilience of Oman's health system and building specialized medical capacities. The Minister stressed that the Ministry is actively pursuing sustainable investments that fortify national industry and safeguard medical supply chains.
"The MoUs establish an institutional framework to implement this direction without compromising the rigorous technical and commercial evaluation of proposals," Health Minister stated. He noted that the agreements directly support the objectives of Oman Vision 2040, particularly in building a sustainable health system and expanding access to services.
The Minister further highlighted that private investment can complement government health services, especially by broadening access to high-quality care. "These agreements provide a foundation for collaboration between the Ministry of Health and the banking sector to help suitable projects move forward in line with national priorities," he added.
Under the partnership with Development Bank, the MoU aims to identify investment needs within the health sector and educate project owners on financing requirements. This initiative supports ventures aligned with Oman's health priorities and the ministry's approved standards.
This step comes amid growing opportunities in health investment that extend beyond hospitals to encompass medical industries, outpatient care services, diagnostics, rehabilitation, long-term care, and digital health- sectors that are rapidly reshaping the landscape of healthcare delivery and economic diversification alike.
Al-Awaini revealed that Development Bank has already approved financing for 230 health-sector loans between 2023 and July 2026, giving the institution substantial accumulated expertise in meeting the sector's financial needs.
"We will help applicants understand financing procedures at early stages and prepare more complete applications and proposals," Al-Awaini said. "We look forward to seeing more Omani health projects transition from proposal to actual operation, which will expand patient options, open new horizons for national talent, and enhance the added economic value within the Sultanate."
The MoU with Sohar International establishes a framework for evaluating and referring eligible projects for financing, with an ambitious target: increasing the share of locally manufactured health products to at least 30% over the next three years — a significant leap from the current rate of just 9% across 20 existing factories, while imports currently cover 91% of market needs.
The MOU seeks to empower investors wishing to establish new factories or expand existing facilities. Under the terms, the Ministry of Health conducts preliminary feasibility assessments, then analyzes available data for companies that approach the bank, which subsequently studies and makes financing decisions in coordination with the ministry.
Al-Murshidi underscored that financing becomes most effective when it builds productive capacities that generate real economic and developmental returns — precisely what the health industries embody. "This MoU translates the convergence of government and banking efforts to create value-added investment opportunities," he explained. "It reflects Sohar International's vision to transcend the traditional role of banking toward building an integrated service and investment environment that enables companies to grow on sound commercial foundations and supports the sustainable development journey in Oman."
Notably, the added value of Oman's health sector recorded a growth of 7.3% during the first quarter of 2026, underscoring the sector's expanding economic significance and its complementary role in the national diversification strategy.
The signing of these MoUs comes as part of broader efforts to strengthen institutional cooperation and integration, supporting health projects and services with developmental and investment impact — all in alignment with Oman Vision 2040's mandate to maximize the role of the private sector and financial institutions in supporting the health system and providing innovative financing and development options.
