Oman’s Stability and Resilience: Key Insights from CBO Report for Investors and Entrepreneurs
The Central Bank of Oman (CBO) has released its 2025 Financial Stability Report, which provides an in-depth and forward-looking evaluation of the financial system in Oman. This report underscores the Bank’s dedication to transparency and accountability, going beyond merely identifying risks to showcase the resilience, adaptability, and developmental capacity of the financial sector.
The findings highlight the robustness of Oman’s financial foundations, trust in its institutions, and the nation’s ability to thrive amid local and global changes. It confirms Oman’s steady trajectory towards long-term stability, sustainable growth, and shared prosperity. Notably, despite ongoing global uncertainties, Oman’s financial stability has remained largely intact.
The Omani banking sector is well-positioned, benefitting from adequate capital reserves, high-quality assets, and sufficient liquidity. Stress tests conducted for financial solvency revealed that the sector is capable of withstanding significant financial shocks, with all banks able to absorb liquidity pressures while exceeding the regulatory minimum for liquidity coverage ratios.
Furthermore, the banking sector continues to be profitable, with non-banking financial institutions gradually expanding, thereby increasing their role in delivering financial services.
Positive trends were also seen in the composite financial stability index, driven by factors such as rising oil prices, improved debt sustainability, and enhancements in systemic risk indicators.
The report noted growing global confidence in Oman’s economic performance, as evidenced by the upgrades of Oman’s sovereign credit rating to investment grade by both Moody’s and Standard & Poor’s. This upgrade is primarily due to prudent financial management and improvements in public debt metrics.
The Systemic Risk Survey confirmed ongoing confidence in Oman’s financial system, while the Credit Conditions Survey indicated overall stability in lending trends, despite a slight easing in credit availability. These findings further reinforce stakeholders’ positive sentiment and continued trust in the sector’s stability.
In a separate initiative, the Central Bank conducted an evaluation of public financial awareness. The results indicated relatively high levels of financial literacy, with respondents demonstrating cautious money management behaviors.
Key legal reforms have also been introduced, including a new Banking Law, a revised Central Bank Law, and updates to the Deposit Protection Law. These measures are designed to enhance the legal and supervisory framework in response to the evolving financial landscape and ensure effective management of current financial system demands. The amended Deposit Protection Law aims to foster a more inclusive and flexible financial environment aligned with international standards.
The report reiterated the Central Bank of Oman’s commitment to fortifying the resilience of the national financial system through proactive monitoring, sound regulatory reforms, and sustainable finance initiatives. The Bank will continue to ensure financial stability and support sustainable economic growth by closely monitoring emerging risks and adapting monetary policy tools as necessary.
Since its inception in 2013, the Financial Stability Report has been a vital resource for stakeholders and professionals in the financial and economic sectors, providing comprehensive analysis of potential vulnerabilities and outlining strategic measures to address them.
Special Analysis by Omanet | Navigate Oman’s Market
The release of the 2025 Financial Stability Report by the Central Bank of Oman underscores a robust financial landscape, presenting opportunities for businesses to leverage the country’s growing economic resilience and stable banking sector. Investors should take note of the upgraded sovereign credit rating, as it signals a favorable environment for capital inflow and investment expansion. However, ongoing global uncertainties pose risks that necessitate vigilant risk management and strategic planning for those looking to establish or grow their ventures in Oman.
