Oman’s financial sector demonstrates robust growth, with total loans and financing reaching approximately OMR34.733 billion by the end of October 2025. This represents a significant 9% increase compared to the OMR31.875 billion reported during the same period in 2024, according to the latest data from the National Centre for Statistics and Information (NCSI). This upward trend suggests a continuing positive momentum in the Omani economy and increased access to capital.
Strong Growth in Oman’s Lending Market
The NCSI data paints a picture of a thriving financial landscape in the Sultanate of Oman. Beyond the headline figure of OMR34.733 billion in total loans and financing, several key indicators reinforce this positive assessment. The increase signals confidence within both the private sector and financial institutions, driving investment and economic activity.
Monetary Aggregates on the Rise
Further analysis reveals substantial growth in monetary aggregates. Narrow money (M1) experienced a 7.3% increase, concluding October 2025 at OMR7.505 billion, compared to OMR6.996 billion a year prior. This indicates a greater circulation of readily available funds. Broad money (M2), a more comprehensive measure, saw a rise of 3.6% reaching OMR 25.696 billion, up from OMR 24.808 billion in October 2024.
The increase in M2, specifically around OMR888 million year-over-year, is particularly noteworthy as it reflects the health of both financial and credit activity within the country. This growth supports business expansion and consumer spending, all key ingredients for economic prosperity.
Increased Deposits and Central Bank Activity
The positive trends aren’t limited to lending; deposit levels have also seen significant growth. Private sector deposits climbed by 9.4% to OMR22.306 billion as of October 2025, a substantial jump from the OMR20.384 billion recorded in the previous year. This suggests increasing household and business savings, coupled with a sustained level of trust in financial institutions.
Additionally, the Central Bank of Oman (CBO) saw an increase in its foreign assets, albeit more moderate, rising by 0.6% to OMR7.253 billion, compared to OMR7.209 billion the year before. These reserves provide a buffer against external economic shocks and enhance the stability of the Omani Rial.
Favorable Interest Rate Environment
Interestingly, despite the surge in loans and financing, the average interest rate on total loans actually decreased by 3.3% to 5.44% by the end of October 2025. This is down from 5.63% in the same period in 2024. This decline in interest rates makes borrowing more affordable, potentially further stimulating demand for credit and driving economic growth.
This decreasing rate environment, alongside increased lending, presents a beneficial scenario for businesses looking to invest and expand, as well as for individuals seeking financing for major purchases like homes or vehicles. The competitiveness in the financial sector likely influenced this reduction.
Stable Currency
Complementing these developments, the effective exchange rate index of the Omani Rial remained remarkably stable, holding steady at 116.4 points. This stability is crucial for maintaining investor confidence and facilitating international trade. A stable currency minimizes risk for foreign investors and simplifies financial planning for businesses engaged in import and export activities. This consistent value provides a solid foundation for economic planning and further growth.
Implications for Oman’s Economy and Future Outlook
The data released by NCSI underscores a robust and expanding financial sector in Oman. The growth in loans and financing, coupled with rising deposits, a stable currency, and more affordable interest rates, paints a very encouraging picture. This suggests a proactive approach to economic development and a positive response to government initiatives aimed at diversifying the economy, which is particularly relevant as Oman pushes forward with its Vision 2040 plan.
The increase in credit availability is likely supporting key sectors such as real estate, manufacturing, and tourism, all of which are vital to Oman’s economic diversification strategy. Furthermore, the growth in private sector deposits indicates increased economic activity and confidence within the business community.
Looking ahead, continued monitoring of these trends is crucial. Analyzing the composition of loans – which sectors are driving the increase – and tracking the quality of assets (non-performing loans) will provide a more nuanced understanding of the financial sector’s health. However, the current trajectory suggests that Oman’s financial sector is well-positioned to support sustainable economic growth in the coming years. The ongoing positive movement in financial statistics will be key for attracting further foreign investment and solidifying Oman’s position as a stable and growing economy in the Gulf region.
