Week ending 31 October 2026: Oman drops the 5% retention on government contracts

The Ministry of Finance and the Authority for Projects, Tenders and Local Content issued revised standard government contracts, reported by the Oman Observer on 27 October. The 5% retention, the slice of contract value previously withheld, is removed. A 5% project delay now requires a recovery plan, and at 15% the contractor’s eligibility for future government work can be reviewed.

Do this. If you hold or bid for Omani government work, ask for the revised contract terms and rebuild your cash flow forecast without the holdback. Tell your lender: a contract with no retention is easier to finance, but the delay triggers now matter more.

Speaking at the ninth World Investment Forum in Doha on 26 October, Salah Mohammed Al Jaidah, Middle East and North Africa Head and CEO of Deutsche Bank Qatar and a member of the Qatari Businessmen Association, proposed that main contractors on major projects give a fair share of eligible work to qualified local SMEs. He also said banks that finance main contractors should extend facilities to approved subcontractors, offer working capital against approved invoices for completed work, and use dedicated project accounts and direct payment where appropriate. He stressed spreading risk between governments, banks and development finance institutions, not permanent guarantees. No figures were given, and these are proposals, not policy.

Do this. If you subcontract on Qatari projects, ask your bank whether it will finance against invoices the main contractor has approved. Keep approval records, because that is the evidence a lender will want.

Peter Tavener, CEO of Beehive, told EnterpriseAM on 30 October that he expects about AED 150 million of UAE approvals in October, which could be a record. This is an expectation, not a reported result. He put the loan book at about AED 1.2 billion and lending since inception near AED 6 billion. Loans 5 to 30 days late have eased from about 6% in June and July to about 2.5%. Beehive remains cautious on trading companies and weak liquidity, and says overseas suppliers want money upfront while customers pay later.

Source status: reported from a single source; the original article could not be opened.

Do this. If you import and sell on credit, you are the borrower Beehive is cautious about. Show lenders your customer payment history and contracted orders before you ask.

The Ministry of Finance announced on 30 October a new Cabinet Decision replacing the previous e invoicing penalty framework. For failure to implement the system, the penalty is AED 5,000 initially, plus AED 5,000 for each continuing month or part month, capped at AED 50,000 over 12 consecutive months. The penalty for failing to notify a system failure is removed and duplicate penalties for the same violation are restricted. The first phase deadline to appoint an accredited service provider was 30 October 2026 for businesses with annual revenue of AED 50 million or more, with go live on 1 January 2027. Smaller in scope businesses appoint by 31 March 2027 and go live on 1 July 2027. E invoicing alone does not establish legal assignment, buyer acceptance or collectability.

Source status: based on the Ministry announcements as cited to us; we could not open the pages. Confirm on the Ministry of Finance site before acting.

Do this. Check your own phase date with your accountant now. Costs are more predictable, but the deadlines still bite.

Emirates Global Aluminium joined Khalifa Fund’s Abu Dhabi SME Champions Programme on 29 October, which gives it access to more than 2,800 SMEs registered with Khalifa Fund. EGA procures about AED 8 billion a year from UAE suppliers, over 40% of it local. No new contract award value has been announced under the programme. Earlier coverage shows the programme facilitated 650 plus deals worth AED 672 million in 2024.

Source status: the EGA release could not be opened.

Do this. If you supply equipment, maintenance, logistics or specialist services to heavy industry, register with the programme. Actual purchase orders and payment terms will decide what a lender can finance.

An MoU dated 29 October between ADI Foundation and Zamanat Advisors is reported to cover tokenised real world assets, including SME credit, trade receivables, maritime finance and sukuk, with an ambition of up to USD 150 million. ADI would provide infrastructure and access to assets; Zamanat would coordinate credit assessment, structuring and distribution. The first pilot concerns vessel financing. It is not a committed facility or evidence of funded loans. Separately, Zamanat announced in September a tokenised private credit fund of up to USD 100 million for GCC SMEs. We could not reconcile the two figures.

Source status: single source on the MoU; the September fund announcement is widely published.

Do this. Treat this as an idea to watch. Do not plan your working capital around it until a fund is open, regulated and pricing loans.

Between 28 and 30 October, LuLu Financial Holdings and Purpleplum announced an integration for LuLu Money Business, bringing together digital business accounts from ruya Islamic bank, cards, cross border payments, remittances and WPS payroll in one interface. Separately, Qashio launched Global Pay for overseas supplier invoices, with upfront FX pricing, payment visibility and integrated approvals. Botim introduced a Jaywan prepaid card for payroll linked workers, with an initial rollout targeting more than 200,000 people. None of these is a new lending portfolio.

Source status: single source (The Paypers, Qashio, Gulf Business as cited to us); not independently opened.

Do this. If you pay overseas suppliers, compare the FX price and visibility across providers before your next large invoice. Joined up payment data also makes you easier to lend to.

South Africa’s Absa Group opened a DIFC office on 29 October to connect Gulf institutions and corporates with African markets. The DFSA Category 4 branch can arrange and advise on credit and investments, drawing on the group’s banking network. Corridors named include agriculture, FMCG, logistics, energy and infrastructure. It is not a new trade finance fund or an automatic credit approval.

Source status: single source (Zawya press release as cited to us).

Do this. If you trade with Africa, ask Absa for an introduction. Bring contracts, buyer details and shipping terms, because that is what any cross border credit structure will start from.

Reuters reported on 30 October that a tanker identified by security sources as the Panama flagged Louise 1 was struck by two limpet mines near Khasab, Oman, on 29 October. The blasts caused an engine room fire and temporarily disabled the vessel. The crew was safe, the fire was extinguished and responsibility was not established.

Source status: single source (Reuters as cited to us); the article could not be opened.

Do this. If you import by sea, check your cargo and war risk cover, add delivery buffers and make sure your repayment dates allow for delays.

The Oman Observer reported on 26 October that 581 Riyada loans totalled OMR 51,477,208 from June 2022 to August 2026, reaching 2,173 Omanis, of whom 568 were business owners. The figures are cumulative over more than four years, not fresh October lending, and repayment and survival data were not given.

Do this. Omani founders should ask about Riyada eligibility before approaching commercial lenders, then use the track record to open bank credit.