Oman’s Domestic Liquidity Surges by RO 1.8 Billion: Implications for Investors and Businesses
MUSCAT: The Sultanate of Oman has experienced a significant increase in domestic liquidity as of the end of April 2025, according to recent data from the National Centre for Statistics and Information (NCSI). Domestic liquidity rose to RO 25.369 billion, representing a 7.5% increase from RO 23.589 billion recorded in the same period of 2024.
In contrast, the total currency in circulation saw a decline of 7.7%, falling to RO 1.540 billion from RO 1.669 billion the previous year. Meanwhile, the narrow money supply demonstrated strong growth, rising by 12% to RO 6.977 billion, an increase from RO 6.231 billion at the end of April 2020.
Private sector deposits in commercial banks and Islamic banking windows also witnessed a rise of 7.1%, totaling RO 21.516 billion compared to RO 20.866 billion in April 2024. Additionally, the total loans and financing extended by commercial banks and Islamic institutions increased by 9% to reach RO 33.590 billion, up from RO 30.810 billion during the same period last year. The average interest rate on all loans saw a slight decrease, falling to 5.555% from 5.604%.
Oman’s net foreign assets rose by 3.2%, reaching RO 6.987 billion, compared to RO 6.773 billion at the end of April 2024. The effective exchange rate index for the Omani Rial remained steady at 118.4 points, indicating its resilience amid global economic fluctuations. — ONA
Special Analysis by Omanet | Navigate Oman’s Market
The recent 7.5% growth in domestic liquidity presents substantial opportunities for businesses in Oman, as increased liquidity can enhance consumer spending and stimulate economic activity. However, the decline in currency circulation and only moderate growth in loans suggest potential liquidity management challenges, alongside a need for careful planning in financial strategies. Smart investors should consider leveraging the growing private sector deposits and declining interest rates to explore investment avenues, particularly in the expansion of lending services to capitalize on emerging demand.
