Muscat: Omani financial technology company mamun has raised $3 million in seed funding to expand trade finance between the Gulf and Asia, building on nearly $20 million in financing facilitated since it began operations in the fourth quarter of 2023.
The Muscat-founded company has financed more than 175 facilities for 84 businesses, including 78 Omani companies, according to updated figures provided exclusively to the Oman Observer by its co-founder and chief executive, Saleh Al Tamami.
The funding round was led by Phaze Ventures through its Oman Fund, backed by Future Fund Oman, an investment vehicle of the Oman Investment Authority. Abu Dhabi-based Jasoor Ventures also participated. The company did not disclose how much each investor contributed.
In written responses to the Observer, Al Tamami said around 40 per cent of the platform’s trade finance activity by value was linked to Hong Kong, China’s Greater Bay Area and mainland China, with transactions settled through Hong Kong-based financial institutions and businesses.
Most of these transactions involve Omani companies purchasing components and other materials from Chinese suppliers, importing finished goods for domestic distribution or bringing products into Oman for re-export to other Gulf markets. Other transactions involve Omani exporters selling goods to buyers in the region.“Hong Kong is where those counterparties invoice and settle, whether the factory is in Shenzhen, Guangzhou or further inland,” Al Tamami said.
The company established Mamun Hong Kong Limited in February to strengthen its presence along the Gulf-Asia trade corridor. The expansion comes as Oman and China seek closer financial and commercial ties following His Majesty Sultan Haitham bin Tarik’s recent state visit to China.
Al Tamami identified the currency swap agreement between the Central Bank of Oman and the People’s Bank of China as a potentially important development for businesses trading between the two countries.“Part of why Oman–China trade has been financed through third currencies and third-country banks is settlement risk and FX cost; a rial–renminbi line changes that over time,” he said.
However, he confirmed that mamun had not secured any contracts directly resulting from the agreements announced during the visit. The practical benefits will depend on how the agreements are implemented and whether businesses gain access to more efficient settlement and financing arrangements.
For smaller Omani businesses, access to working capital can be difficult, particularly when exporters must wait 60 to 90 days to receive payment after shipping goods. Mamun seeks to address this gap by assessing individual commercial transactions rather than relying primarily on a company’s financial history.“The business brings us a transaction, not just a balance sheet,” Al Tamami said.
The platform examines purchase orders, buyers, shipping documents and previous dealings between trading partners to assess financing applications. Al Tamami said financing decisions could be made within days once the required documents were complete, compared with the longer approval periods businesses may face through conventional banking channels.
Mamun operates under the crowdfunding framework regulated by Oman’s Financial Services Authority. Investors provide the capital for approved transactions, while the company assesses and structures the financing using Sharia-compliant arrangements. The company does not publish a direct comparison of its financing costs with bank lending, noting that the products are structured differently.
The new investment will support three areas of expansion: identifying potential trade finance transactions, improving artificial intelligence-based risk assessment, and strengthening the monitoring and collection processes that follow financing.
Beyond trade finance, mamun also supplies the technology behind Iskan, Oman Housing Bank’s digital financing platform.Al Tamami said Iskan had processed more than RO 400 million in housing financing. He clarified that Oman Housing Bank provided the financing, while mamun supplied the technology supporting the process.
The company also reported that investors representing more than 55 nationalities across over 25 countries had participated in financing businesses through its platform. Al Tamami said the company intends to build on its presence in Hong Kong to develop further business opportunities along the Gulf-Asia corridor.
Its Hong Kong team plans to attend the Asian Logistics, Maritime and Aviation Conference later this month to explore potential transactions following the recent Oman-China agreements. The company has not disclosed its targets for additional trade financing following the investment.
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