Islamic banking contributes to growth of overall banking deposits in Oman
Published: 03:12 PM,Dec 16,2023 | EDITED : 07:12 PM,Dec 16,2023
The Central Bank of Oman building.
MUSCAT: Islamic banking services in the Sultanate of Oman have proven their effectiveness during the past period by contributing significantly to the growth of total deposits, increasing national savings and investment, and using new modern technologies. This enabled it to be able to compete and provide high-quality and flexible services.
Tahir bin Salim al Amri, CEO of Central Bank of Oman, explained that the total assets of banks and Islamic windows amounted to about RO 7.2 billion at the end of September 2023, an increase of 12.7 per cent on an annual basis, and financing from Islamic banking entities amounted to RO 5.9 billion, while total deposits amounted to RO 5.4 billion, equivalent to a market share of 17.6 per cent of the banking sector’s total assets.
Al Amri said that the Islamic banking sector in the Sultanate of Oman grew at a compound annual rate of 25.8 per cent, which is nearly four times the growth rate in traditional banking services, stressing that the Islamic sector played a major role in driving new financing and deposit growth in the Sultanate of Oman.
He stated that additional financing for the economy in the past decade amounted to more than RO 14.6 billion, of which the Islamic banking sector contributed significantly by 36.6 per RO 5.364 billion, which confirms the effectiveness of the Islamic banking sector in financing economic activities.
Al Amri pointed out that the Islamic banking sector contributed about 40 per cent, or approximately RO 1.6 RO billion, of the additional deposits amounting to RO 4.1 billion resulting from the banking system from 2013 to June 2023.
He said the Sultanate of Oman ranked seventeenth in the field of Islamic financial technology in 2022. This indicates its presence and contribution to the global Islamic financial technology scene, indicating that the Global Islamic Financial Technology Report for 2022 focused on the fact that the Islamic financial technology market, measured by the volume of transactions, reached $ 79 billion and is expected to grow steadily by 18 per cent annually to reach about $179 billion by2026.
Al Amri said that there are no requests from the Central Bank to establish Islamic banks, but there are some requests for financial technology compatible with Islamic Shariah. —ONA
Tahir bin Salim al Amri, CEO of Central Bank of Oman, explained that the total assets of banks and Islamic windows amounted to about RO 7.2 billion at the end of September 2023, an increase of 12.7 per cent on an annual basis, and financing from Islamic banking entities amounted to RO 5.9 billion, while total deposits amounted to RO 5.4 billion, equivalent to a market share of 17.6 per cent of the banking sector’s total assets.
Al Amri said that the Islamic banking sector in the Sultanate of Oman grew at a compound annual rate of 25.8 per cent, which is nearly four times the growth rate in traditional banking services, stressing that the Islamic sector played a major role in driving new financing and deposit growth in the Sultanate of Oman.
He stated that additional financing for the economy in the past decade amounted to more than RO 14.6 billion, of which the Islamic banking sector contributed significantly by 36.6 per RO 5.364 billion, which confirms the effectiveness of the Islamic banking sector in financing economic activities.
Al Amri pointed out that the Islamic banking sector contributed about 40 per cent, or approximately RO 1.6 RO billion, of the additional deposits amounting to RO 4.1 billion resulting from the banking system from 2013 to June 2023.
He said the Sultanate of Oman ranked seventeenth in the field of Islamic financial technology in 2022. This indicates its presence and contribution to the global Islamic financial technology scene, indicating that the Global Islamic Financial Technology Report for 2022 focused on the fact that the Islamic financial technology market, measured by the volume of transactions, reached $ 79 billion and is expected to grow steadily by 18 per cent annually to reach about $179 billion by2026.
Al Amri said that there are no requests from the Central Bank to establish Islamic banks, but there are some requests for financial technology compatible with Islamic Shariah. —ONA