Oman banking posted strong growth by the end of July 2025, showing resilience and stability in the sector. Conventional commercial banks expanded credit by 8 percent year on year, reflecting confidence in the economy and ongoing reforms.
The Central Bank of Oman reported that private sector lending rose 4.6 percent to 21.3 billion rials ($55.4 billion). At the same time, investors reduced holdings in securities by 3.4 percent to 5.8 billion rials. Government development bond holdings increased 6.3 percent to 2 billion rials, while investors cut foreign securities by 15.7 percent to 2.1 billion rials.
The Central Bank’s 2025 Financial Stability Report highlighted strong capital buffers and high-quality assets. Analysts said Oman banking maintains profitability and can withstand external shocks efficiently.
Private sector deposits grew 4.1 percent to 17 billion rials, representing 66.3 percent of total deposits. Total deposits with conventional banks rose 3.6 percent to 25.7 billion rials by July. Government deposits increased 7.1 percent to 5.8 billion rials, while public sector deposits fell 11 percent to 1.7 billion rials.
Oman’s real estate market gained momentum. Total transaction value reached 2.124 billion rials by the end of August, up 9.9 percent from last year. Legal transaction fees jumped 81.7 percent to 79 million rials. Sale contract values climbed 16.1 percent to 831 million rials, despite a 1 percent drop in contract numbers.
Mortgage contract values rose 6.4 percent to 1.285 billion rials. Exchange contract values fell 17.7 percent to 7.6 million rials. Property ownership transfers increased 2.6 percent to 153,764, while transfers to GCC nationals fell 12.8 percent to 859.
S&P affirmed Oman’s long-term foreign and local currency sovereign rating at “BBB-” with a stable outlook. The agency praised financial reforms, noting the government restructured state-owned enterprises, diversified revenue sources, and established the Oman Future Fund.
S&P expects Oman’s real GDP growth to exceed 2 percent annually from 2025 to 2028, primarily driven by non-oil sector expansion. Furthermore, Brent crude prices are projected to rise from $60 per barrel in late 2025 to $65 by 2026–2028. Meanwhile, public debt could decline from 36 percent of GDP in 2024 to 33 percent by 2028, while inflation is expected to average 1.5 percent. Overall, these factors together support stronger economic stability and sustained growth.
The agency projects a small fiscal deficit of 0.5 percent in 2025, moving to a balanced budget in 2026. Analysts said Oman banking, combined with government reforms, strengthens long-term economic resilience and boosts investor confidence.
