The Islamic banking assets of Oman reached approximately 9.2 billion Omani rials ($23.9 billion) by the end of October, and this highlights constant growth in the financial sector of the sultanate as credit growth continues to expand.
The Oman News Agency reported that assets of the Islamic banks and the Islamic windows took 19.5 percent of the total banking system, which is higher by 10.8 percent higher than the previous year.
The banking sector performance of Oman indicates stable growth towards the Vision 2040 that is based on economic diversification, development of the private sector, and financial stability.
The ONA reported, “As for the total financing provided by institutions engaged in this activity, it also rose by 10.4 percent, reaching around 7.4 billion Omani rials.” It also cited that deposits with Islamic banks and Islamic windows increased 11.9 percent to roughly 7.3 billion rials by the end of October.
The growth of credit, especially to non-financial corporates and households, is driving the growth of small and medium-sized firms and domestic investment in Oman, which is contributing to efforts of reducing hydrocarbon-dependence and develop an increasingly diversified economy.
In a statement issued in October, the Central Bank of Oman said, “Total deposits held with ODCs registered a Y-o-Y significant growth of 7 percent to reach 33.3 billion rials at the end of August 2025. Total private sector deposits increased by 7.5 percent to OMR 22.4 billion.”
Therefore, the broader banking industry also experienced strong credit growth in 2025. In the month of August, total credit among the commercial banks grew at 8.6 percent year-on-year to 34.1 billion rials, with most of it being lent to non-financial corporates and households, which constituted 46.7 percent and 44.7 percent of the total credit, respectively.
However, the lending by the private sector was increasing by 6.5 percent alone, which boosted SME operations and domestic investment. Gradually, aggregate deposits at conventional banks jumped 5.5 percent to 26.1 billion rials at the end of August, with private sector deposits accounting for 67 percent, or 17.5 billion rials, overall.
Islamic banking institutions followed suit, and the total financing amounted to 7.3 billion rials, and deposits reached 7.2 billion rials as of the end of August, which points to the consistent growth during 2025.
Islamic banking in Oman came first as the Central Bank of Oman published preliminary licensing principles in May 2011, permitting full-fledged Islamic banks and Islamic windows to operate with conventional banks.
It was formalized with a Royal Decree amending the Banking Law in December 2012, requiring Shariah supervisory boards and allowing the central bank to create a High Shariah Supervisory Authority.
