Rising Commercial Bank Balances Signal Robust Credit Growth: Implications for Investors and Businesses in Oman
MUSCAT: Conventional commercial banks in Oman have continued to show a positive trend in lending, with the total credit balance increasing by 7.2% from June 2024 to June 2025.
Credit extended to the private sector saw a growth of 4.8%, reaching RO 21.5 billion by the end of June 2025.
On the investment front, total bank investments in securities rose by 1.3%, amounting to approximately RO 5.7 billion. Notably, investments in government development bonds surged by 5.1% to RO 2 billion, while investments in foreign securities decreased by 6%, totaling RO 2.1 billion.
In terms of liabilities, total deposits at conventional commercial banks grew by 4.7%, reaching RO 25.8 billion. Government deposits experienced a significant increase of 9.9%, rising to RO 5.9 billion. In contrast, public sector deposits fell by 7.3% to RO 1.7 billion. Meanwhile, private sector deposits increased by 4%, amounting to RO 17.1 billion, which represents 66.4% of the total deposits.
— ONA
Special Analysis by Omanet | Navigate Oman’s Market
The 7.2% rise in credit and a 4.8% increase in private sector lending signal a growing opportunity for businesses to secure financing, which could stimulate economic activity and expansion. However, the decline in foreign securities suggests potential risks for investors looking for diversification. Smart investors should focus on local sectors likely to benefit from increased lending, while closely monitoring government financial policies and market trends.
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