The government of Oman has signed two loan agreements over $357 mn with the Arab Fund for Economic and Social Development (AFESD) to finance infrastructure projects, reported Trade Arabia.

The first agreement over $163 mn is set to finance road projects in the governorates of Al Batinah South and Dhofar. Meanwhile, the second loan of $194 mn is earmarked for water transport projects from Al Ghubrah station to Al Seeb and from Barka station to Ad Dakhiliyah governorate.

The loans will be running for thirty years at an annual interest rate of 2.5%. Oman has recently launched several programs to diversify its economy and improve its infrastructure in order to counter the recent oil price crisis.