Bank Credit in Oman Climbs 8.6%: What This Growth Means for Investors and Business Owners
MUSCAT — Total credit extended by conventional commercial banks in Oman grew by 8.6 percent by the end of October 2025, indicating steady expansion in banking activities, according to official data. Credit to the private sector rose by 4.4 percent year-on-year, reaching RO 21.6 billion, demonstrating ongoing lending support to both businesses and individuals.
Banks’ investments in securities also saw an increase of 5.9 percent, climbing to approximately RO 6.5 billion during the same period. Notably, investment in government development bonds surged by 10.6 percent to RO 2.1 billion, reflecting heightened bank exposure to domestic sovereign instruments. Conversely, investments in foreign securities declined by 3.9 percent, falling to RO 2.4 billion.
On the liabilities side, total deposits with conventional commercial banks grew by 1.4 percent, reaching RO 25.7 billion by the end of October 2025. Government deposits showed a significant rise of 9.8 percent, totaling around RO 5.9 billion, while deposits from public sector institutions sharply decreased by 44.7 percent to about RO 1.5 billion.
Private sector deposits increased by 8.4 percent, reaching RO 17.4 billion, and made up 67.5 percent of the total deposits, underscoring the vital role of households and businesses within Oman’s banking system. — ONA
Special Analysis by Omanet | Navigate Oman’s Market
The 8.6% growth in credit and the 4.4% rise in private sector lending indicate strong business and consumer confidence, presenting lucrative opportunities for entrepreneurs to access funding and expand. However, the sharp decline in public sector deposits signals potential liquidity shifts, posing a risk that banks may tighten credit availability unless they boost private sector engagement further. Smart investors should prioritize businesses aligned with government development projects and remain vigilant of sectoral liquidity dynamics to capitalize on Oman’s evolving financial landscape.
