Oman's Export Credit Guarantee Agency (ECGA) plans to start providing letter of credit (L/C) guarantees for non-oil exporters looking to sell into risky but lucrative markets.

The Gulf state's non-oil exports to the US surged by 109 per cent in value in 2012 compared with 2011, and Oman is looking to reduce its reliance on hydrocarbon earnings and stimulate export-led growth in its economy.

Confirmations guaranteed

The ECGA plans to start providing guarantees to exporters' banks for adding their confirmation to L/Cs to issuing banks of the buyer's country against payment risks of export bills by guaranteeing confirmation to exporters' banks.

This would allow banks in Oman to support exporters to difficult but lucrative high risk markets as well as other markets.

Export growth

Oman's dramatic growth in US exports reflects the benefits it enjoys under the Free Trade Agreement with the US, which became operative at the beginning of 2009.

According to trade statistics for the first five months of 2013, Omani non-oil exports (excluding re-exports) registered significant growth, with exports up 22.1 per cent on the same period in 2012.

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