Oman’s Private Sector Credit Growth Drives Total Credit Balance to $80.9 Billion
As of May 2024, Oman’s total credit balance has reached 31.1 billion Omani rials ($80.9 billion), with a 3.2 percent annual increase driven by private sector credit growth, according to the latest data from the nation’s central bank.
Private Sector Takes the Lead
Credit to the private sector alone grew by 3.1 percent, reaching 26.1 billion Omani rials by the end of May 2024. Non-financial companies held the largest share of the credit balance at 45.4 percent, followed closely by the individual sector at 45.3 percent. Financial companies accounted for 5.7 percent, while other sectors comprised 3.6 percent of the total credit balance.
IMF’s Positive Outlook
The expansion of Oman’s banking sector aligns with the International Monetary Fund’s forecast that the country will maintain its economic resilience in the near future. Following a visit in May led by Cesar Serra, mission chief for Oman at the IMF, the fund concluded that the banking sector remains stable, supported by sufficient capital and liquidity buffers and high asset quality.
Robust Growth in Deposits
Total deposits in Oman’s banking sector increased by 9.2 percent, reaching 30 billion Omani rials by the end of May 2024. Private sector deposits played a significant role in this growth, rising by 14 percent to 20.4 billion Omani rials. The individual sector held the largest share of private sector deposits at 50.4 percent, followed by non-financial corporations at 29.4 percent, financial corporations at 17.4 percent, and other sectors at 2.8 percent.
Commercial Banks’ Credit Balance and Investments
The total credit balance granted by commercial banks rose by 1.3 percent, with private sector credit increasing by 1.1 percent to 20.3 billion Omani rials by the end of May 2024. Investment activities among traditional commercial banks also saw significant growth, with total investments in securities surging by 20.8 percent to approximately 5.6 billion Omani rials compared to the same month last year.
Liabilities and Deposits
Total deposits at conventional commercial banks rose by 7.1 percent to 23.9 billion Omani rials. Private sector deposits saw a notable increase of 9.9 percent, reaching 16.2 billion Omani rials and making up 67.8 percent of total deposits in conventional commercial banks. Government deposits with commercial banks decreased by 3.8 percent to about 5.2 billion Omani rials, and public sector institution deposits fell by 1.5 percent to 1.7 billion Omani rials.