Broad Money Supply in Oman Rises 6.4%: What This Means for Investors and Business Growth Opportunities
MUSCAT: The broad money supply in Oman increased by 6.4 percent year-on-year, reaching RO 26.4 billion by the end of November 2025. This growth was primarily driven by a 12.2 percent rise in narrow money and a 4.1 percent increase in quasi-money, which encompasses savings and time deposits in Rials Omani, bank-issued certificates of deposit, margin accounts, and all foreign currency deposits held within the banking sector.
During the same period, currency in circulation grew by 1.9 percent, while demand deposits surged by 14.1 percent.
Regarding interest rates at conventional commercial banks, the weighted average rate on Rial Omani deposits declined from 2.733 percent in November 2024 to 2.498 percent in November 2025. Similarly, the weighted average interest rate on Rial Omani loans decreased from 5.667 percent to 5.446 percent over the same timeframe.
The average overnight interbank lending rate also dropped to 3.917 percent in November 2025, down from 4.563 percent in November 2024. This reduction was largely influenced by a decrease in the weighted average interest rate on repurchase agreements to 4.500 percent, compared to 5.308 percent a year earlier, aligning with the US Federal Reserve’s monetary policy. — ONA
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The 6.4% rise in Oman’s broad money supply, coupled with falling interest rates, signals increased liquidity and borrowing potential for businesses, fostering expansion opportunities. However, smart investors should monitor the declining deposit rates, which may encourage shifts toward higher-yield investments or riskier assets. Entrepreneurs and financial institutions must strategically leverage this environment to capitalize on affordable credit while navigating potential inflationary pressures.
