MUSCAT: The total credit balance extended by banks in Oman witnessed a growth of 2.7 percent, reaching RO 20.7 billion. This reflects a positive trajectory in the nation’s financial sector. Private sector credit also showed resilience with a modest rise of 1.8 percent, signaling sustained confidence among private entities in the local economy. These figures highlight the steady role of credit in supporting the economic activities within the Sultanate.
Investments by traditional banks also saw significant changes, with a remarkable 29.7 percent increase in securities investments, totaling RO 6.1 billion. Foreign securities led this growth with an astonishing 75.1 percent rise, amounting to RO 2.5 billion. Conversely, investments in government development bonds experienced a slight dip of 0.7 percent, settling at RO 1.9 billion. These investment patterns indicate banks’ strategic focus on diversifying their portfolios to optimize returns while balancing risk.
On the liabilities side, the banking sector recorded a substantial 10.4 percent growth in total deposits, which climbed to RO 25.4 billion. Government deposits rose by 1.8 percent to reach RO 5.3 billion, while public sector institution deposits saw an extraordinary 50.1 percent surge, totaling RO 2.8 billion. This sharp increase underscores the active role of public institutions in bolstering the banking sector’s deposit base.
Private sector deposits, a major contributor, grew by 5.3 percent, reaching RO 16 billion and accounting for 63.2 percent of total deposits. This steady growth in private sector deposits further highlights the trust and reliance placed by individuals and businesses in Oman’s banking system. Collectively, these developments illustrate a balanced growth trajectory in Oman’s banking sector, marked by strategic investments and robust deposit inflows.
