OMAN’S conventional commercial banks expanded credit by 8 per cent year on year by the end of July 2025, official data showed, reports the Arab News.
Private sector lending rose 4.6pc to 21.3 billion rials ($55.4bn), according to the Central Bank of Oman. Investments in securities fell 3.4pc to 5.8bn rials, with holdings of government development bonds climbing 6.3pc to 2bn rials, while foreign securities declined 15.7pc to 2.1bn rials.
The central bank’s 2025 Financial Stability Report pointed to strong capital buffers and high-quality assets, noting that Oman’s banking sector remains profitable and well-positioned to absorb external shocks.
“Private sector deposits increased 4.1pc to 17bn rials by the end of July, accounting for 66.3pc of total deposits with conventional commercial banks,” ONA reported, citing the report’s findings.
On the liabilities side, the recent official data noted that the total deposits with conventional commercial banks grew 3.6pc to 25.7bn rials by the end of July. It added that government deposits rose 7.1pc to 5.8bn rials, while deposits from public sector institutions fell 11pc to 1.7bn rials.
According to the National Centre for Statistics and Information, Oman’s total real estate transaction value reached 2.124bn rials by the end of August, marking a 9.9pc increase from 1.933bn rials in the same period last year.
Fees for legal transactions rose 81.7pc to 79 million rials. Similarly, sale contract values grew 16.1pc to 831m rials, despite a slight 1pc drop in the number of contracts to 43,971.
Meanwhile, mortgage contract values rose 6.4pc to 1.285bn rials, while exchange contract values declined 17.7pc to 7.6m rials. Additionally, property ownership transfers rose 2.6pc to 153,764, though transfers to GCC nationals fell 12.8pc to 859 ownerships.
The global financial rating agency S&P has affirmed Oman’s long-term foreign and local currency sovereign credit rating at ‘BBB-’ with a stable outlook, citing the government’s commitment to financial reforms and its ability to maintain economic stability despite oil price fluctuations.
“The report noted that the government’s reforms - including restructuring state-owned enterprises, diversifying income sources, and establishing the Oman Future Fund - have strengthened economic resilience and attracted foreign investment,” ONA reported.
The agency expects Oman’s real GDP growth to rise from 1.7pc in 2024 to over 2pc annually during 2025-2028, supported by non-oil sector expansion.
It forecasts Brent crude prices to climb from $60 per barrel in late 2025 to $65 in 2026-2028, with public debt falling from 36pc of GDP in 2024 to 33pc by 2028. Inflation is expected to average 1.5pc, government net assets to remain at 8pc, and non-oil growth to hold at 2.9pc annually.
S&P also noted a small fiscal deficit of 0.5pc of GDP in 2025, moving to a balanced budget by 2026, with an average current account deficit of 1.9pc of GDP.
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