MUSCAT: Credit extended to Oman’s private sector rose by 6.4 percent, reaching RO 27.9 billion, signaling sustained confidence in the non-banking financial markets. The distribution of credit highlights the dominance of the non-financial corporate sector, which accounted for 46.6 percent, closely followed by individuals at 44.8 percent. The financial corporate sector contributed 5.7 percent, while other smaller sectors made up the remaining 2.9 percent. This growth reflects ongoing demand for financing across corporate and personal segments, supporting economic activities in trade, industry, and services.
The Central Bank of Oman (CBO) also reported a notable increase in total banking sector deposits, which rose by 6.1 percent to reach RO 32.9 billion by the end of July 2025. This growth indicates strong liquidity in the financial system and a steady influx of savings from households and businesses. Private sector deposits mirrored this trend, climbing 5.8 percent to RO 21.9 billion, demonstrating the resilience of depositors’ confidence in Oman’s banking sector amid regional and global economic fluctuations.
Analyzing the composition of private sector deposits, the individual sector accounted for the largest share at 51.0 percent, reflecting continued household savings and investment activity. Non-financial corporate deposits represented 29.4 percent, indicating that businesses are maintaining significant cash reserves, possibly to support operational and expansion needs. Financial corporate sector deposits contributed 17.6 percent, while other sectors held 2.3 percent. This distribution underscores the balanced participation of households and corporate entities in Oman’s financial ecosystem.
The overall trends in credit and deposits point to a healthy banking environment and sustained economic momentum in Oman. Increased lending to private entities supports business growth and consumer spending, while strong deposit inflows enhance liquidity and stability. Analysts suggest that such dynamics are likely to foster further confidence in the financial system, encouraging continued investment and contributing to broader economic diversification objectives outlined in Oman Vision 2040.
