The Export Credit Guarantee Agency S.A.O.C. (Credit Oman) started its export credit insurance, guarantee, and financing services in the Sultanate of Oman in 1991.
The closely held company, which operates as national export credit agency of Oman, is an independent legal entity fully funded by the government. This enables it to cover its financial needs and to build up the necessary reserves to fulfill its obligations. Credit Oman has played the role of a catalyst in the promotion of exports.
The Sultanate’s non-oil exports has grown substantially through the years from RO.79 million in 1991 to RO. 3727.8 million in 2018. Credit Oman has insured Omani exporters in diverse sectors to over 105 countries playing a key role in the promotion and growth of Omani non-oil exports.
The company has been providing export credit insurance protection and support to an ever-growing list of Omani exporters. It has paid claims to exporters for their buyers to such countries as the United States, the United Kingdom, Italy, France, South Africa, Greece, Holland, Germany, Saudi Arabia, the UAE, Qatar, Kuwait, Jordan and India.
The services of the agency are available to all Omani exporters irrespective of their size or service sector or the commodity bringing its invaluable and beneficial services to them.
The agency provides a range of facilities that include the following services:-
Export Credit Insurance providing cover to Omani exporters against commercial and non-commercial risks.
The services under this include: buyer’s insolvency/bankruptcy, buyer’s failure to pay, buyer rejection of delivery of goods, foreign exchange transfer delay, import bans or cancellation of import licence, payment moratorium, war, civil disorder, natural disasters.
Credit Oman’s guarantee minimizes the risk and maximizes the opportunities of exporters selling in foreign markets. The agency indemnifies exporters if they are not been paid by their buyers.
Domestic credit Insurance providing cover to Policy Holders against commercial risks domestically.
The services under this include buyer’s insolvency/bankruptcy, buyer’s failure to pay, and buyer refusing delivery of goods.
BUYERS RISKS
- buyer’s insolvency/bankruptcy,
- buyer’s failure to pay,
- buyer refusing delivery of goods.
COUNTRY RISKS
- Foreign exchange transfer delay,
- import bans or cancellation of import license,
- payment moratorium,
- war, civil disorder, natural disasters
Other benefits of services provided to credit insured exporters include post shipment financing through discounting of export bills by commercial banks at concessional rates of interest.