MUSCAT: The Sultanate of Oman is accelerating reforms to modernise its financing system, enhance economic competitiveness, and attract high-quality foreign investment, in line with the objectives of Oman Vision 2040. These efforts are supported by strong banking performance, upgraded credit ratings, and an expanding legislative and regulatory framework.
Oman’s banking sector continues to demonstrate solid growth, with total credit rising 8 per cent to RO 34.5 billion by the end of September 2025. Credit to the private sector increased to RO 28.2 billion, reflecting rising demand across non-oil sectors. Total deposits grew 4.7 per cent to RO 33.1 billion, supported by increasing private sector confidence. Individuals hold roughly half of all private-sector deposits, while corporates and financial institutions account for the remainder.
Islamic finance has also expanded significantly, offering diversified instruments in trade, asset and SME financing. The share of SME lending has reached 3.7 per cent, with a national strategy underway to raise it to 5 per cent by streamlining credit assessments, easing collateral requirements, and developing specialised financing units within banks.
International confidence in Oman’s fiscal and financial stability continues to strengthen. Standard & Poor’s affirmed Oman’s credit rating at BBB– with a stable outlook, while Moody’s upgraded the rating to Baa3, supported by fiscal consolidation and a declining public debt-to-GDP ratio. These improvements enhance Oman’s appeal to long-term foreign investors.
Legislative reforms are also reshaping the financial landscape. The new Banking Law strengthens governance, regulates digital banking, and prohibits shell banks. Meanwhile, the establishment of the Financial Services Authority (FSA) has unified oversight of non-banking financial activities, including the Muscat Stock Exchange (MSX), insurance, accounting and auditing sectors.
The FSA has launched an incentive programme to encourage family-owned firms, private companies and high-growth SMEs to list on the MSX or convert to joint-stock entities.
Abdullah bin Salim al Salmi, Executive President of the Financial Services Authority, said the programme aims to promote stronger governance, broaden financing options, and deepen the capital market’s role in sustainable economic development. He noted that capital markets offer flexible medium- and long-term financing tools such as equities, bonds and sukuk, complementing bank lending and helping spread risk.
Oman is also expanding modern financing channels. Crowdfunding platforms have raised RO 14.9 million since 2022, providing alternative capital sources for SMEs and startups. Digital payment adoption has surged, with annual mobile payment transactions rising from fewer than 5 million to around 40 million in three years, supported by advanced national payment systems including RTGS, ECS and mobile platforms.
According to Mustafa bin Ahmed Salman, Board Member of the Oman Chamber of Commerce and Industry, the government’s efforts include launching the Capital Market Stimulus Programme, strengthening the Development Bank, and establishing Oman Investment Bank — the country’s first specialised investment bank. The Promising Companies Market has also been launched to support SMEs through simplified listing requirements and fiscal and operational incentives.
He emphasised that the Chamber is working closely with government entities to enhance Oman’s investment climate, attract foreign direct investment, and promote opportunities within governorates. Committees within the Chamber, including the Finance and Insurance Committee, are actively addressing sector challenges, proposing regulatory improvements, and organising awareness initiatives such as banking arbitration seminars.
Oman is also advancing its fintech ecosystem through a regulatory sandbox that enables innovators to test financial technologies, alongside the development of an open banking framework. The Mala’a Credit Information Centre continues to expand its database of individuals and companies, improving credit transparency and supporting informed investment decisions.
With political stability, a strategic geographic position, and world-class infrastructure — particularly in ports and special economic zones such as Duqm — Oman is consolidating its status as an emerging, investor-friendly economy ready to attract quality investments for long-term growth. — ONA
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