Board of Directors' Report

The three quarters of 2022 have been very positive for Oman and there is much to look forward to. S&P has upgraded Oman’s credit ratings to BB- from B+ with a stable outlook. The various initiatives taken by the government to curb spending and reduce the budget deficit have been successful. The high oil prices have helped, and so has the clear direction given by His Majesty Sultan Haitham bin Tariq Al-Said that the surpluses from the oil prices will be used to reduce the country’s debt, rather than any additional spending. This has buoyed both the Omani government bonds as well as the stock markets. Public debt to GDP ratio is expected to reduce from 63% in 2021 to less than 48% by the end of 2022, and real GDP is expected to grow by 4.4% in 2022.

United Finance Company SAOG has earned Installment Finance Income of RO 5.56 million for the period ended September 2022 compared to RO 5.16 million for the same period in the previous year. The Company recorded a net profit of RO 1.05M as against RO 601K for the corresponding period last year. The Net Debtors portfolio stood at RO 85.4 million as at 30th September 2022 as against RO 78.5 million in September 2021. We expect the increase in loan portfolio will continue in Q4 2022 as well. We are also being careful on who we lend to, and our capital adequacy ratio is in excess of 50%.


The company has provided RO 563,861 as provision during first three quarters of 2022 taking the total provisions of the company to over RO 18.94 million, and we continue to maintain one of the highest provisions against non-performing loans amongst FLCs. In addition, the Company also maintains a special reserve of RO 2.37 million to guard against unforeseen delinquencies.

We thank His Majesty Sultan Haitham bin Tariq Al Said, His Government, Central Bank of Oman, Capital Market Authority and other regulatory authorities for their support and guidance during the quarter. We also thank our bankers, dealers and customers for their continued trust, confidence and support. We also extend our thanks to the management and staff of the company for their continued support and hard work.