The banking sector in the Sultanate of Oman has seen a significant increase in credit balances, with a 3.2 percent growth to reach OMR31.1 billion by the end of May 2024. Credit granted to the private sector also saw a 3.1 percent increase to reach OMR26.1 billion. Non-financial companies accounted for the largest share of the credit balance at 45.4 percent, followed closely by the individual sector at 45.3 percent. The financial companies sector accounted for 5.7 percent, with other sectors making up 3.6 percent of the total credit balance.
Total deposits in the banking sector also recorded growth, increasing by 9.2 percent to reach about OMR30 billion by the end of May 2024. Private sector deposits saw a significant rise of 14 percent to reach OMR20.4 billion. The individual sector accounted for the largest share of the total deposit base for the private sector at 50.4 percent, followed by the non-financial corporate sector at 29.4 percent, and the financial corporate sector at 17.4 percent. Other sectors made up the remaining 2.8 percent.
Commercial banks in Oman have also seen continued growth in credit activities. The total credit balance granted by commercial banks increased by 1.3 percent, with credit granted to the private sector growing by 1.1 percent to reach OMR20.3 billion by the end of May 2024. Investments in securities by traditional commercial banks jumped by 20.8 percent to reach about OMR5.6 billion, while investment in government development bonds decreased by 9 percent to reach OMR1.9 billion. Commercial banks’ investments in foreign securities surged by 80.6 percent to reach OMR2.2 billion.
On the liabilities side, total deposits at conventional commercial banks increased by 7.1 percent to reach OMR23.9 billion by the end of May 2024. Government deposits decreased by 3.8 percent to reach OMR5.2 billion, while deposits of public sector institutions decreased by 1.5 percent to reach OMR1.7 billion. Private sector deposits, however, increased by 9.9 percent to reach OMR16.2 billion, making up 67.8 percent of total deposits in conventional commercial banks.
Overall, the banking sector in the Sultanate of Oman is experiencing positive growth, with both credit balances and deposits on the rise. The increased credit and investment activities are indicators of a healthy financial environment. The private sector is also showing strong participation in depositing funds, showcasing confidence in the banking sector. With continued growth and stability, the banking sector in Oman is poised for further development and expansion in the future.
