Oman’s Bank Credit Growth Reaches 8.5%: Opportunities and Implications for Investors and Businesses
MUSCAT: By the end of November 2025, credit provided by conventional commercial banks in Oman saw an increase of 8.5%, indicating a robust growth in banking activities. Specifically, credit to the private sector rose by 5.8%, reaching RO 21.9 billion during the same timeframe.
In terms of investments, conventional commercial banks recorded a 7.4% rise in total investments in securities, amounting to approximately RO 6.4 billion by the end of November 2025. Notably, investments in government development bonds experienced a 9.5% year-on-year increase, totaling RO 2.2 billion. Conversely, investments in foreign securities dropped by 4.4%, settling at RO 2.3 billion over the same period.
On the liabilities side, total deposits with conventional commercial banks increased by 6.3%, reaching RO 26.4 billion by the end of November 2025. Government deposits rose by 7.6%, amounting to around RO 5.8 billion. However, deposits from public sector institutions decreased significantly by 25.6%, falling to approximately RO 1.9 billion during this period.
In contrast, private sector deposits demonstrated strong growth of 9.5%, reaching RO 17.8 billion in November 2025. These deposits now constitute 67.2% of the total deposits held by conventional commercial banks. — ONA
Special Analysis by Omanet | Navigate Oman’s Market
The 8.5% increase in credit extended by banks signals robust economic activity, presenting opportunities for businesses to leverage expanded financing for growth. However, declining investments in foreign securities hint at potential risks related to diversification, urging investors to consider localized assets. Smart investors should focus on the strong performance of private sector deposits, which indicate growing consumer confidence, while remaining vigilant about the fluctuating dynamics in public sector finances.
