Private-Sector Credit Hits RO 23.1 Billion: Key Opportunities and Implications for Oman’s Business Growth
MUSCAT: Credit extended by conventional commercial banks in Oman to the private sector reached RO 23.1 billion by the end of May 2026, marking an 8.2 percent increase, according to data from the Central Bank of Oman.
The total outstanding credit granted by conventional banks rose by 11.8 percent between May 2025 and May 2026, underscoring ongoing growth in domestic lending, the central bank reported in its monthly update.
Banks also expanded their securities portfolios significantly, with total investments climbing 29.8 percent year-on-year to approximately RO 7.1 billion by the end of May. Investments in government development bonds grew by 26.3 percent to RO 2.4 billion, while holdings of foreign securities surged 36.1 percent to RO 2.6 billion.
On the liabilities side, total deposits with conventional commercial banks rose by 13.7 percent, reaching RO 28.6 billion. Government deposits increased by 9 percent to about RO 6.3 billion, and public-sector institution deposits surged by 42.9 percent to nearly RO 2.4 billion. Deposits from the private sector also rose 11 percent, totaling RO 19 billion and representing 66.3 percent of the total deposits held by these banks at the end of May.
The growth in deposits, credit, and securities investments reflects continued expansion across the balance sheets of Oman’s conventional commercial banks over the past year. — ONA
Special Analysis by Omanet | Navigate Oman’s Market
The 8.2% rise in private sector credit alongside a 29.8% surge in banks’ securities investments signals strong confidence in Oman’s economic growth and financial stability. For businesses, this presents opportunities for greater access to financing and investment capital, while entrepreneurs and investors should consider leveraging this liquidity to expand or diversify amid an expanding banking sector. However, they must remain vigilant of potential credit risks as lending accelerates.
