Oman Development Financing Set to Hit RO 214 Million in 2025: What This Means for Investors and Entrepreneurs
MUSCAT: Development financing in Oman reached RO 213.8 million in 2025, supporting 7,106 projects, marking a decrease of approximately 9 percent compared to RO 234.9 million allocated to 7,398 projects in 2024, according to the 2026 Statistical Yearbook published by the National Centre for Statistics and Information (NCSI).
The industrial sector remained the largest beneficiary, receiving RO 71 million, which accounts for 33.2 percent of total development financing. This was followed by the tourism, professional, and public services sector, which secured RO 66.3 million (31 percent), while the fisheries sector obtained RO 31.6 million, representing 14.8 percent.
The mining sector experienced significant growth, increasing its share of total lending from 0.7 percent in 2024 to 4.8 percent in 2025, equivalent to over RO 10.3 million, reflecting heightened investment activity.
Regionally, North and South Al Batinah collectively received the largest portion of development loans, amounting to RO 53.3 million for 1,617 projects, or 24.9 percent of the total. Muscat followed closely with RO 50.2 million across 762 projects, while North and South Al Sharqiyah obtained RO 35.5 million. Al Dakhiliyah and Dhofar also recorded substantial funding allocations.
Al Wusta demonstrated notable growth in development financing, with its share rising from 3.6 percent in 2024 to 6.5 percent in 2025. In contrast, Al Buraimi held the smallest share at 1.8 percent.
Despite the overall decline in development financing, housing loans continued to expand, rising 4.6 percent to RO 151.8 million from RO 145.1 million in 2024. The number of housing loan beneficiaries also increased slightly to 3,277 from 3,250.
South Al Batinah led in housing finance, receiving RO 40.4 million distributed through 902 loans, followed closely by Muscat with RO 41.7 million across 842 loans. North Al Batinah ranked third, ahead of Al Dakhiliyah, while Musandam received the smallest share.
The yearbook highlighted that borrowers with monthly incomes between RO 701 and RO 1,000 accounted for the largest portion of Oman Housing Bank loans, obtaining RO 115 million, or 75.8 percent of total housing finance, through 2,456 loans. Borrowers earning up to RO 400 represented 16.8 percent of lending, while those with incomes above RO 1,000 made up 6.7 percent. — ONA
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The 2025 decline in overall development financing by 9% highlights a cautious investment climate, yet robust funding in industry, tourism, and mining sectors signals targeted growth opportunities. Regional shifts, such as the rising share of lending in Al Wusta and North/South Al Batinah, alongside expanding housing finance especially among middle-income earners, suggest smart investors should focus on diversified regional development and affordable housing markets to capitalize on emerging demand. Businesses must adapt to sector-specific dynamics, while entrepreneurs can leverage growing mining and tourism investments for strategic market entry.
