MUSCAT: In a major move to address the growing demand for affordable housing, the Central Bank of Oman (CBO) has introduced significant reforms in the country’s mortgage lending regulations. This initiative is part of a broader set of reforms aimed at improving access to homeownership for Omani families. The reforms will allow licensed banks to offer competitive interest rates, making it easier for citizens to secure financing for their homes.
The CBO’s Governor, Ahmed Al Musalmi, highlighted that these reforms will unlock over RO 4.5 billion in lending capacity, which will directly address the increasing demand for affordable homes. This shift is particularly important as it supports Omani families in achieving homeownership while maintaining financial stability. By offering lower interest rates, the CBO aims to empower families to secure homes that provide both dignity and security.
These regulatory changes are in alignment with Oman Vision 2040, which focuses on creating a more prosperous and stable society. The emphasis on mortgage lending is a key component of this vision, and it supports the broader goals of His Majesty Sultan Haitham bin Tarik’s vision for improving the quality of life for Omani citizens. The reforms will also contribute to the long-term goal of economic diversification, ensuring that Oman’s financial landscape remains strong and resilient.
In addition to housing, the CBO is also focusing on economic diversification and job creation. Over the next five years, the central bank plans to allocate over $25 billion from bank loan portfolios to support key non-oil sectors such as tourism, manufacturing, renewable energy, and healthcare. These efforts will help reduce the country’s dependence on oil and create more opportunities for sustainable economic growth.
