MUSCAT: The Sultanate of Oman’s banking sector has continued to demonstrate resilience and stability, with total assets projected to reach RO 47.8 billion by 2025, almost doubling from RO 25.8 billion in 2015, according to figures presented during the Building a Future-Ready Bank summit organised by Cedar-IBS Intelligence.
The report indicates that Oman’s banking industry has achieved a compound annual growth rate (CAGR) of 6.1 per cent over the past decade, underscoring sustained balance sheet expansion supported by prudent regulatory oversight and steady credit demand.
Despite this robust asset growth, deposits have increased modestly, rising from RO 17.3 billion to RO 18.1 billion — a CAGR of only 0.5 per cent. Analysts note that this reflects tight liquidity conditions, as…
MUSCAT: The Sultanate of Oman’s banking sector has continued to demonstrate resilience and stability, with total assets projected to reach RO 47.8 billion by 2025, almost doubling from RO 25.8 billion in 2015, according to figures presented during the Building a Future-Ready Bank summit organised by Cedar-IBS Intelligence.
The report indicates that Oman’s banking industry has achieved a compound annual growth rate (CAGR) of 6.1 per cent over the past decade, underscoring sustained balance sheet expansion supported by prudent regulatory oversight and steady credit demand.
Despite this robust asset growth, deposits have increased modestly, rising from RO 17.3 billion to RO 18.1 billion — a CAGR of only 0.5 per cent. Analysts note that this reflects tight liquidity conditions, as banks face limited deposit inflows but continue to maintain strong asset utilisation.
At the same time, profitability across the sector has improved. Net profits are expected to reach RO 620 million by 2025, compared to RO 350 million in 2015, representing a 6.5 per cent CAGR. Operating income rose from RO 920 million to RO 1.6 billion, while operating expenditure increased from RO 420 million to RO 690 million, reflecting greater operational efficiency and tighter cost management.
The presentation highlighted that Islamic banking now accounts for 19 per cent of total banking assets, equivalent to RO 8.6 billion, compared with 81 per cent, or RO 39.2 billion, held by conventional banks. This expansion marks a significant milestone for Sharia-compliant finance in Oman, which continues to gain momentum through product innovation and wider acceptance among customers.
Experts at the summit noted that Oman’s banking sector “reflects sustained growth momentum and balance sheet expansion”, while the moderation in deposits points to “tightening liquidity but efficient asset deployment”.
The Central Bank of Oman (CBO) continues to play a key role through conservative monetary management and targeted financial reforms, including digital bank licensing and fintech acceleration programmes. These initiatives aim to ensure financial stability while promoting innovation in line with Oman Vision 2040.
Industry participants said that as banks embrace digitalisation, the focus is shifting towards data-driven growth, AI-enabled decision-making and customer-centric transformation. One participant observed, “The next decade will be about quality, not just quantity — Oman’s banks are already positioning for that transition”.
Overall, the data suggest a banking system that is financially sound, technologically adaptive, and increasingly diversified — well placed to support Oman’s long-term economic ambitions even as liquidity conditions remain tight.
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