Latest news with #CentralBankOman
Arab News
06-07-2025
- Business
- Arab News
Oman's banking sector strengthens with 8% credit growth
JEDDAH: Oman's banking sector showed robust growth by May, with total credit rising 8 percent to 33.6 billion Omani rials ($87.36 billion) and deposits increasing 7.9 percent, reflecting strong private sector activity and confidence. Data from the Central Bank of Oman revealed that credit extended to the private sector grew by 6.8 percent year on year to reach 27.9 billion rials by the end of May. Total deposits stood at 32.3 billion rials during the same period. Oman's banking sector remains resilient, supported by private sector engagement, expanding credit, and steady deposit growth. Regulatory reforms and growing confidence in financial institutions also continue to strengthen both conventional and Islamic banking. Non-financial corporations held the largest share of private sector credit at 46.4 percent, closely followed by households at 44.2 percent. Private sector deposits increased by 7.4 percent to 21.9 billion rials, with households accounting for nearly half of the total. The banking sectors of the Gulf Cooperation Council showed overall credit growth, highlighting regional economic resilience. Saudi Arabia's credit facilities rose 14.4 percent to SR2.96 trillion by the fourth quarter of 2024, while Qatar experienced a slight 0.2 percent decline to 1.4 trillion riyals, mainly due to reduced public sector and consumer lending. The combined balance sheet of conventional banks showed a 6.9 percent year-over-year increase in total outstanding credit. Credit to the private sector grew by 5.2 percent to 21.4 billion rials, while investments in securities fell 1.7 percent to 5.5 billion rials. Government bond investments increased 2.2 percent to 2 billion rials, whereas foreign securities declined by 11.9 percent, according to the CBO, which added that deposits with conventional banks rose 5.7 percent to 25.2 billion rials, with private sector deposits growing 5.8 percent to 17.1 billion rials. Islamic banking assets surged 17.5 percent to 9 billion rials, with financing increasing 12.3 percent and deposits rising 16.6 percent to 7 billion rials. According to the CBO, broad money supply rose 6.9 percent to 25.4 billion rials, driven by a 13.9 percent increase in narrow money and a 4.4 percent rise in quasi-money. Within M1, currency with the public fell 5.1 percent, while demand deposits grew 18.6 percent. Gas production Oman's total natural gas production and imports rose marginally by 0.5 percent year-on-year to 17.95 billion cubic meters by April, driven mainly by a 10.8 percent increase in associated gas production. Meanwhile, non-associated and imported gas volumes declined by 2.1 percent, according to the state's National Center for Statistics and Information. Industrial projects remained the largest consumers, using 9.32 billion cubic meters, followed by power generation stations, which used 4.33 billion cubic meters. Oil fields consumed 4.21 billion cubic meters, with industrial zones using 88 million cubic meters.
Khaleej Times
02-07-2025
- Business
- Khaleej Times
Oman revises rules for bank transfers, makes IBAN mandatory
The Central Bank of Oman had earlier announced that the International Bank Account Number (IBAN) will be mandatory for all domestic financial transactions From July 1, 2025, Oman has implemented a new requirement for all financial transfers. The Central Bank of Oman had earlier announced that the International Bank Account Number (IBAN) will be mandatory for all domestic financial transactions. It also added that international transactions will accepted without an IBAN now. The IBAN was made mandatory for international transfers on March 31, 2024. According to the Central Bank of Oman, this initiative has significantly improved transaction accuracy, reduced errors, and accelerated processing times for both local and international bank transfers. On the Emirates NBD app in the UAE, users have seen an awareness message that asks them to delete and re-add beneficiaries in Oman with their IBAN. The advisory says, "In line with new regulatory mandates, IBAN is now a mandatory requirement for all payments to Sultanate of Oman, starting from July,1 2025." It added: "Please delete and re-add your beneficiaries in Oman using their IBAN to avoid payment failures. Kindly note a cooling period of 4 hours will apply for newly added beneficiaries." What is IBAN? The IBAN or International Bank Account Number is a standardised way to identify any bank account anywhere in the world, designed to make sending money across borders much less of a headache. It's like a universal postal code for a bank account that includes the country (like "AE" for the UAE), some security digits, and regular account details all rolled into one. Earlier, before the system was created, delays and mix-ups were common as banks couldn't properly identify where payments should go. Now, with IBAN covering most of Europe, the Middle East, and parts of the Caribbean, money gets where it needs to go faster and with fewer costly errors. This number doesn't replace the regular account number – it's just an extra layer that helps banks around the world speak the same language when handling international payments.
Zawya
12-06-2025
- Business
- Zawya
Bank credit in Oman grows 9% to $85bln in April
Muscat – Oman's banking sector recorded robust credit growth of 9.0% during the first four months of 2025, while deposits surged by over 9.3% year-on-year, according to the latest data from the Central Bank of Oman (CBO). Total outstanding credit extended by the banking sector – comprising both conventional and Islamic banks – rose by nine per cent to RO33.6bn as of the end of April 2025, compared to the same period in the previous year, the CBO stated in its monthly statistical bulletin. Of the total credit extended, loans to the private sector grew by 7.0%, reaching RO27.8bn. Non-financial corporations received the largest share of private sector credit, accounting for approximately 46.6% of the total, followed by the household sector at 44.0%. Financial corporations held a 5.6% share, while other sectors made up the remaining 3.7%. In the conventional banking segment, total credit grew by 7.9% year-on-year as of April 2025. Credit extended to the private sector by conventional banks increased by 5.2% to RO21.3bn, while their investments in securities rose by 2.1% to RO5.8bn, according to CBO figures. Investments in government development bonds by conventional banks rose by 6.2% year-on-year to RO2bn in April 2025, while investments in foreign securities increased by 3.7% to RO2.1bn over the same period. Deposits surge 9.3% Deposits across Oman's banking sector grew significantly by 9.3%, reaching RO32.8bn at the end of April 2025. Private sector deposits increased by 7.1% to RO21.5bn. Within this category, household deposits contributed the largest share, accounting for 50.3% of the total, followed by non-financial corporations at 30.4%, financial corporations at 17.0%, and other sectors at 2.3%. Conventional banks saw aggregate deposits rise by 6.1% year-on-year to RO25.7bn by the end of April 2025. Government deposits with conventional banks increased by 6.2% to RO5.8bn, while deposits from public enterprises grew by 11.4% to RO2.2bn. Private sector deposits, which represent 65.2% of total deposits at conventional banks, rose by 4.5% to reach RO16.8bn. According to the CBO, the weighted average interest rate on Omani rial deposits with conventional banks rose slightly from 2.580% in April 2024 to 2.594% at the end of April 2025. Meanwhile, the weighted average lending rate for the Omani rial decreased from 5.604% to 5.555% over the same period. The overnight Omani rial domestic interbank lending rate declined to 4.392% in April 2025, down from 5.212% a year earlier. This decrease is attributed to the reduction in the average repo rate for liquidity injections by the CBO, which fell to 5.0% from 6.0%, in line with the monetary policy direction of the US Federal Reserve. Islamic banking grows by 18% Oman's Islamic banking sector continues to maintain its strong growth trajectory in 2025, with double-digit increases in both credit and deposits. The total assets of Islamic banks and windows grew by 18.1% year-on-year, reaching RO8.9bn by the end of April 2025. Islamic assets now represent approximately 19.6% of the total assets within Oman's banking system. Islamic banking entities provided financing totalling RO7.2bn by the end of April this year, reflecting a 13.5% increase compared to the previous year. Total deposits held by Islamic banks and windows also surged by 22.6%, reaching RO7.1bn in April 2025. © Apex Press and Publishing Provided by SyndiGate Media Inc. (
Zawya
04-06-2025
- Business
- Zawya
11 new financial institutions licensed in Oman last year
MUSCAT - A total of 11 new financial institutions were licensed by the Central Bank of Oman (CBO) to operate in the Sultanate of Oman in 2024 – a significant uptick that underscores the rapid growth and evolution of the country's banking and financial sector, the apex bank said. As many as 1,020 applications were received during the course of the year, seeking licenses and approvals for new financial institutions, establishments and branches, new products and services, and other licensing-related matters. The 81 per cent jump in requests can be attributed to the growth of financial institutions established, as well as the expansion of existing institutions, the Central Bank noted in a report on licensing statistics for 2024. 'This positive trend reflects the strengthening of Oman's financial sector, driven by favorable economic conditions, regulatory enhancements, and an overall increase in investor confidence. Additionally, the introduction of new financial products and services has further fueled the demand for licenses/approvals, contributing to the overall rise in requests/applications,' the Central Bank stated. Of the 11 financial institutions that received licenses were three foreign banks looking to establish branches in Oman. They are Gulf International Bank, HSBC Middle East, and Mashreq Bank. Additionally, one local investment bank was also established. 'Oman Investment Bank holds a prominent position as the first investment bank to be established in the country, offering a wide range of services such as corporate banking, asset management, and financial advisory. This establishment helps further diversify the banking sector, contributing to Oman's economic growth and financial stability,' the Central Bank noted. It add that two other applications are on hold, pending the completion of regulatory and procedural steps by the applicants. Of the remaining 7 successful applications, one – First Exchange LCC – received a license to operate as a Money Exchange Entity (MEE). Six others – Amwal Al Raqamia, Ooredoo Fintech, ONEIC Pay, Global Pay, OIFC (Khidmah) and FriendiPay – received licenses to operate as Payment Service Providers. In addition, Ahli Bank was given approval to open an overseas branch in the United Kingdom, while Bank Nizwa received the green light to open an overseas branch in Dubai International Financial Center. Hundreds of official requests were also received from commercial banks, as well as Money Exchange Entities, Finance & Leasing Companies, and Payment Service Providers, according to the report. 'The increase in requests across all categories — especially from banks and MEEs — reflects the growing demand for licensing and regulatory support as the financial sector in Oman continues to evolve. Compared to 2023, this upward trend can be attributed to several factors, including the expansion of financial services, the introduction of new regulatory frameworks, and the increasing complexity of the sector. This distribution highlights the varied needs of our stakeholders and underscores the CBO's ongoing efforts to manage and address the increasing volume and complexity of requests efficiently,' the Central Bank stated in its report. Affirming its commitment to transparency in application processing and approvals, the apex bank also announced the launch of a system to automate the branch licensing process for all financial institutions, including the issuance of certificates. 'The system is designed to replace the current manual process. It is currently in its final stages (testing phase) and is projected to go live by 2025,' it added. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Zawya
02-06-2025
- Business
- Zawya
The role of credit data in enhancing ICV in Oman
The Sultanate of Oman is undergoing a significant economic transformation, driven by its Vision 2040 strategy that emphasizes diversification, innovation, and sustainability. Central to this transformation is the concept of In-Country Value (ICV), a framework designed to maximize the retention of economic benefits within the national economy. ICV aims to stimulate local business development, enhance employment opportunities for Omanis, and build resilient supply chains across sectors. In parallel with these strategic goals, Oman has recognized the importance of robust digital and financial infrastructure. One key initiative in this domain is the establishment of Mala'a Credit Bureau. As the national credit registry, Mala'a plays a crucial role in strengthening the financial ecosystem by enhancing transparency, reducing lending risks, and promoting financial inclusion. This article explores the vital synergy between Mala'a Credit Bureau and the ICV strategy. It highlights how credit data intelligence, when effectively leveraged, can catalyze economic development, support local enterprises, and empower Omani citizens to participate actively in the nation's economic future. Mala'a Credit Bureau was established under the supervision of the Central Bank of Oman to provide a centralized platform for credit information sharing. Its core mandate is to collect, manage, and disseminate credit data from banks, financing companies, telecom providers, utilities, and other entities that offer credit services. Key functions of Mala'a include: Generating credit reports for individuals and companies, Offering credit scoring services, Providing credit monitoring and alerts, andEnabling data-driven decision-making for lenders Mala'a improves market efficiency by minimizing information asymmetry between borrowers and lenders. It promotes responsible borrowing and lending, which is critical for a stable and inclusive financial system. Importantly, it facilitates access to finance for previously underserved segments, including SMEs and startups. SYNERGIES BETWEEN MALA'A AND ICV GOALS The alignment between Mala'a Credit Bureau and ICV strategy is multifaceted. Both aim to empower local enterprises, increase economic resilience, and ensure long-term sustainability. Major areas of synergy include: • Data-driven supplier development: Mala'a provides credit histories and risk assessments that help identify financially sound local suppliers. This supports procurement teams in selecting reliable Omani vendors. • SME credit facilitation: SMEs often face challenges in securing financing due to lack of credit history. Mala'a enables the creation of digital financial footprints, allowing SMEs to access funding and participate in ICV-linked tenders. • Enhanced transparency: Credit data increases market discipline and builds trust among stakeholders, from investors to consumers. This is essential for the credibility and sustainability of ICV programs. Small and medium enterprises are the backbone of Oman's economic diversification efforts. However, limited access to finance remains a critical barrier. Mala'a addresses this by: Providing reliable credit data that lenders can use to assess SME risk profiles, Enabling SMEs to monitor and improve their credit standing, and Facilitating the creation of sector-specific financial products. Moreover, Mala'a's data infrastructure supports fintech innovation, enabling platforms that offer microloans, invoice financing, and peer-to-peer lending. These tools are particularly beneficial for entrepreneurs participating in ICV programs, allowing them to scale operations and meet procurement requirements. FACILITATING HUMAN CAPITAL DEVELOPMENT Human capital is a core component of ICV. Mala'a contributes indirectly to its development by: • Enabling educational and professional development loans based on individual credit profiles • Providing insights into population-level financial behaviors, helping policymakers identify gaps in financial literacy and inclusion • Supporting job creation in credit-related services such as fintech, risk analysis, and customer support By integrating credit data into national education and employment strategies, Oman can ensure a more financially capable and skilled workforce. IMPROVING FINANCIAL HEALTH Financial sustainability is essential for long-term ICV success. Mala'a helps local businesses achieve this by: Offering tools to monitor credit obligations and manage debt, Encouraging timely repayments and responsible financial behavior, and Supporting businesses in planning for expansion through credit analytics. This not only benefits individual companies but also strengthens entire value chains, reducing the risk of defaults and disruptions. INTEGRATING MALA'A WITH OTHER NATIONAL ICV PLATFORMS The effectiveness of Mala'a can be amplified through integration with other government platforms: • Procurement portals: Linking credit data with e-tendering platforms helps assess vendor reliability. • Tax and business registries: Streamlining data sharing supports due diligence and compliance monitoring. • Labour and training systems: Insights from Mala'a can inform targeted skills development initiatives. Advanced analytics, including artificial intelligence, can enhance predictive modeling for supplier performance, fraud detection, and credit risk. CHALLENGES AND OPPORTUNITIES Despite its benefits, the implementation of Mala'a and its integration with ICV is not without challenges: Data privacy (Ensuring data protection and compliance with privacy regulations is critical); Adoption rates (Encouraging SMEs and institutions to actively use Mala'a services requires ongoing awareness and incentives); and Data quality: The accuracy and completeness of data submissions must be maintained to ensure reliable outcomes. On the other hand, opportunities abound: • Regional expansion: Mala'a can serve as a model for credit bureaus across the Gulf Cooperation Council (GCC). • Investment attraction: A strong credit infrastructure increases investor confidence and enhances Oman's competitiveness. • Public-private collaboration: Partnerships with fintechs, banks, and training institutes can unlock new value streams. Mala'a Credit Bureau is a strategic enabler of Oman's ICV objectives. By improving access to credit, supporting SMEs, enhancing transparency, and facilitating data-driven policy making, Mala'a contributes to a more inclusive and sustainable economy. Key recommendations include: Promoting SME engagement through awareness and capacity building; Strengthening inter-agency data sharing protocols; Integrating Mala'a insights into national ICV reporting and evaluation frameworks; and Investing in cybersecurity and data governance As Oman continues its journey toward economic diversification and digital transformation, the alignment between credit infrastructure and local value creation will play a defining role in shaping the nation's prosperity. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
