Bank Lending in Oman Jumps 7.3%: Key Insights on Strengthened Credit Growth for Investors and Entrepreneurs
MUSCAT: By the end of August 2025, the total credit provided by conventional commercial banks in Oman increased by 7.3%, indicating a sustained growth in lending to support private sector expansion. According to the latest statistics from the Central Bank of Oman (CBO), credit to the private sector rose by 4.5%, reaching RO 21.4 billion.
The data also revealed a 3.2% decline in total investments by conventional banks in securities, totaling approximately RO 6.1 billion. Notably, investments in government development bonds witnessed a 12% year-on-year increase, reaching RO 2.2 billion, while investments in foreign securities decreased by 7%, amounting to RO 2.3 billion.
On the liabilities side, total deposits in conventional commercial banks grew by 5.5%, reaching RO 26.1 billion by the end of August 2025. Government deposits surged by 9.6%, totaling around RO 5.9 billion, whereas deposits from public sector institutions decreased by 7.8%, standing at approximately RO 1.7 billion.
Private sector deposits rose by 6.1% to RO 17.5 billion, accounting for 67% of the total deposits held by conventional banks. These figures highlight the ongoing confidence in Oman’s banking sector and the robustness of credit growth despite changing economic conditions. — ONA
Special Analysis by Omanet | Navigate Oman’s Market
The 7.3% growth in credit extended by Omani banks signals a robust environment for private sector expansion, offering businesses exciting opportunities for investment and growth. However, the decrease in investments in securities, coupled with a rise in government bond investments, suggests potential risks in market diversification that investors should monitor closely. Smart investors and entrepreneurs should capitalize on this credit growth while also remaining cautious about shifting financial trends, positioning themselves to leverage emerging opportunities in both the local and government sectors.
