Oman Orix Leasing Company (“OOLC” or “the Company”) commenced operations in 1994 as a pioneer leasing company in Oman, providing medium to long-term financing of moveable assets to individuals and small and medium enterprises (“SMEs”). Over the past 3 years, the Company has been very successful maintaining a stable growth trend of around 32% per annum and also in sourcing a diversified funding base from local banks to finance its operations. As of December 2008, SMEs (consisting of 5,334 companies for $96.5 million outstanding), represented 53% of OOLC’s lease portfolio, increasing from 48% in 2007, thus demonstrating a strong commitment to the SME sector. The proposed project aims at supporting a good portfolio client, with whom IFC has a long term relationship, in maintaining its growth trajectory in a temporary difficult macroeconomic context. Moreover, due to its strong commitment to the SME sector, the proposed investment is also in line with the World Bank Group strategic priorities in Oman. According to estimates, SMEs generate 10-20% of employment in Oman, hence through indirect support to the sector, this project will help in employment generation in the private sector. Moreover, support to SMEs will also contribute to Oman’s diversification from oil related industries into other sectors.