MUSCAT: Conventional commercial banks in Oman posted steady and positive growth between June 2024 and June 2025, reflecting the resilience and stability of the country’s banking sector. The latest data highlights a notable increase in credit balances, investments, and deposits, signaling sustained economic confidence among individuals, businesses, and institutions. This upward trend comes despite the challenging global financial landscape, underlining the sector’s ability to adapt and maintain momentum in line with Oman’s economic diversification and Vision 2040 goals.
The growth in credit balances suggests an expanding lending environment, supported by demand from both the corporate and retail sectors. Businesses are leveraging credit facilities for expansion and operational needs, while individuals continue to access financing for housing and personal purposes. This balanced credit activity reflects strong fundamentals within the banking system, enhanced by prudent risk management and effective regulatory oversight by the Central Bank of Oman. Analysts believe that this steady credit growth will contribute significantly to liquidity and stimulate private sector development in the medium term.
Investments by conventional banks also saw a measured increase, particularly in government securities and other low-risk instruments. This strategy indicates a focus on preserving financial stability while ensuring consistent returns, especially during periods of global market volatility. By maintaining a diversified investment portfolio, banks in Oman are reinforcing their resilience and safeguarding capital against external shocks. This trend aligns with broader efforts to strengthen the financial sector’s role in supporting sustainable economic development and infrastructure financing across the Sultanate.
Deposits recorded an upward trajectory, further strengthening the liquidity position of Omani banks. The increase in deposits reflects growing confidence among both individuals and institutions in the country’s financial system. This rise can be attributed to stable interest rate policies, enhanced banking services, and digital transformation initiatives that have improved customer experience. Higher deposits not only ensure strong liquidity buffers but also provide the necessary foundation for future lending growth, thereby fueling economic activity across various sectors in Oman’s evolving economy.
