PlaNet Finance United Arab Emirates (PlaNet Finance UAE), a unit of the France-based microfinance support organization the PlaNet Finance Group, plans to launch a microfinance institution (MFI) in the Sultanate of Oman. The MFI, a joint stock company, is also supported by the Oman-based Ajit Khimji Group, MB Holding Company, and the private philanthropist Mr. Samir Fancy. The Omani Ministry of Social Development is also supporting the project. The as-yet-unnamed MFI is currently referred to by PlaNet Finance as the “Greenfield MFI”, “Greenfield” being the generic term for new business ventures. Information on the ownership of the MFI is not yet available. PlaNet Finance UAE is currently working on the legal structure of the MFI. The MFI needs an initial investment fof USD 3.4 million and a USD 15 million concessionary and commercial loan for three to five years to finance portfolio growh. There are donors who have approved the business plan of the new MFI, but amount of current investment and the amount committed by each donor is not publicized. Once established, the MFI will offer one-year loans between USD 800 and USD 4,000.
PlaNet Finance UAE initiated its three year program for Oman in 2005, with support from the Ajit Khimji Group and Samir Fancy. PlaNet Finance conducted a feasibility survey in 2006 and a market study in 2007. Results of the market study, conducted on 700 households in six regions, reveal that about 66,000 households in Oman earn income through micro or small enterprises (MSEs) and 27,720 of these households are receptive to microfinance loans. Bank Muscat, the Ajit Khimji Group, and Mr. Samir Fancy financed the study. In 2008, PlaNet Finance finalized the new MFI´s business plan. MicroCapital has reported on PlaNet Finance UAE´s 2008 golf tournament to raise awareness about microfinance in the country.
According to the CIA World Factbook, Oman reported a GDP of USD 67 billion and a GDP per capita of USD 20,200 in 2008. Services constituted 60.7 percent of the GDP. The unemployment rate was reported as 15 percent in 2004. In 2007, the commercial bank prime lending rate was 7.29 percent. MIX Market, the microfinance information clearinghouse, does not report any MFIs based in Oman.
PlaNet Finance UAE is one of the three offices of PlaNet Finance Middle East, the other offices being located in Egypt and the Palestinian Territories. PlaNet Finance Middle East is a member of PlaNet Finance Advisory Services, itself a member of the PlaNet Finance Group. PlaNet Finance Advisory Services is a non-profit organization that offers consultancy services to the microfinance industry. PlaNet Finance UAE has held the first Dubai Microfinance Forum with partners including IFC and Grameen and with financing from Visa and the Mohammed Bin Rashid Establishment for Young Business Leaders. As of 2008, PlaNet Finance Advisory Services supports 115 MFIs that cumulatively serve 4.7 million clients.
Other members of the PlaNet Finance Group include the microfinance rating agency Planet Rating, the investment company MicroCred, the insurance unit Planet Guarantee, the venture capital company FinanCites, the software division MicroFit, and the training center Planet University. Since its founding in 1998, PlaNet Finance has supported 1,500 microfinance institutions that serve 9 million clients. In 2007, the most recent year of financial reporting, PlaNet Finance raised USD 10.8 million in donations and granted USD 559,000 via direct cash to its MFI partners. However, 2007 saw a net déficit of USD 458,000. A interview with PlaNet Finance co-founder and Vice President Arnaud Ventura was published in the May 2009 issue of the MicroCapital Monitor. Mr. Ventura reports that at the end of 2008, PlaNet Finance Group employed 700 staff and was active in 80 countries.
The Ajit Khimji Group is an investment company and conglomerate whose subsidiary, the Asha Group, is involved in the tourism, media, restaurant, and finance industry. Financial information for the company is not available. MB Holding Company is a multinational corporation involved in oilfield drilling, oil and gas production, investments, engineering, manufacturing, and mining. MB Holding Company reports an annual turnover of USD 640 million, total assets of USD 970 million, and net profits of USD 100 million for 2007. Mr. Samir Fancy is the Chairman and founder of the Tawoos Group, a family owned company. The Tawoos Group includes companies in the agriculture, education, pharmaceutical, oil, media, entertainment, software, and shipping industries.
Additional Resources:
“UAE firm to launch first microfinance unit in Oman”, by VM Sathish, Published by Emirates Business 24/7, May 2009
PlaNet Finance Middle East: Home
PlaNet Finance Group: Home
Ajit Khimji Group
Tawoos Group
MB Holding Company
CIA World Factbook: Oman
“Meet the Boss: Arnaud Ventura”, Published in MicroCapital Monitor, May 2009
By Goda Thangada, Research Assistant
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