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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Oman crude price average jumps 27pc in Jan-Aug

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Oman crude oil prices averaged $65.4 per barrel during the first eight months of 2018 (January – August), up from $51.6 per barrel during the corresponding period of last year, according to the latest monthly report of the Central Bank of Oman (CBO) released here yesterday.


As a result of the 27 per cent uptick in crude prices, among other uptrends, revenues jumped 24.4 per cent during this period.


Expenditure also increased 4.5 per cent during the first eight months of the year versus a decline of 5.7 per cent during the corresponding period of 2017, the apex bank stated.


As a result, the fiscal deficit dropped sharply to RO 1.8 billion as of August 31, 2018, down from RO 2.8 billion as of August 31, 2017, the report said.


Nominal GDP increased 6.5 per cent during the first quarter of 2018 compared to 15.8 per cent during the corresponding period of 2017, the Central Bank said.


“The disaggregated information reveals that both hydrocarbon and non-hydrocarbon activities grew at a decelerated pace of 16.5 per cent and 2.0 per cent, respectively, during Q1 of 2018 as compared to 29.5 per cent and 10.4 per cent, respectively, in the same period of 2017,” according to the banking industry regulator.


“Among non-hydrocarbon activities, agriculture & fishing, manufacturing, and services recorded a growth of 7.6 per cent, 17.8 per cent and 1.5 per cent, respectively during this period.”


Reviewing banking sector developments over the first eight months of the year, the Central Bank noted the sector continued to “witness reasonable growth in both credit and deposits”.


The total outstanding credit extended by conventional and Islamic banks in the Sultanate stood at RO 24.7 billion as of August 31, 2018, entailing a growth of 7.6 per cent over the corresponding figure for 2017.


Credit to the private sector increased 5.4 per cent to RO 21.9 billion this year, with the non-financial corporate sector obtaining 46.2 per cent of the total, followed closely by the household sector (mainly under personal loans) at 45.4 per cent. Financial corporations and other sectors received 5.3 per cent and 3.1 per cent respectively.


Total deposits climbed to RO 22.2 billion, representing a “decelerated growth” of 2.8 per cent as compared to 4.5 per cent recorded during the same period last year, the CBO report said. Private sector deposits, which represented 63.5 per cent of the total deposits, grew by 2.2 per cent to RO 14.1 billion by August 2018.


Sector-wise, the contribution of households towards total private sector deposits was 48.5 per cent, followed by nonfinancial corporations (30.9 per cent), financial corporations (18.1 per cent), and the other sectors


(2.5 per cent).


Islamic banks and windows extended RO 3.4 billion in finance during the first eight months of this year, an increase of 17.2 per cent over 2017, the regulator said.


Total deposits held with Islamic banks and windows climbed to RO 3.1 billion this year, up from RO 2.8 billion at the end of August 2017. Total assets of Islamic banks and windows combined amounted to RO 4.2 billion, boosting their share to 12.7 per cent of banking system assets.


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