Interview: Khalid Jamal Al Kayed
How do you see the banking sector’s role evolving to support the long-term economic diversification efforts outlined in Oman Vision 2040?
KHALID JAMAL AL KAYED: The sector plays an important role in supporting the realisation of Oman Vision 2040 by mobilising resources and providing financial solutions for sectors such as logistics, tourism, manufacturing and renewables. We have seen an increased emphasis on financing small and medium-sized enterprises, which are central to diversifying the sultanate’s economy and fostering job creation. Additionally, banks are aligning their strategies with the infrastructure development priorities of the government by facilitating funding for projects in ports, transport and industrial zones. Collaboration between financial institutions and policymakers ensures that financing mechanisms align with economic goals, enabling sustainable growth across a diverse array of sectors.
In what ways is the sector adapting to increasing demands for digital and financial technology (fintech) solutions, and how will this trend shape the future of financial services in the sultanate?
AL KAYED: The banking sector is undergoing a digital transformation to cater to the growing demand for fintech solutions. Investment in mobile banking platforms, artificial intelligence-driven customer service tools and blockchain for secure transactions is becoming increasingly common. This trend is driven by a young, tech-savvy population as well as a national push towards digital inclusion. Bodies like the Central Bank of Oman are fostering innovation by introducing fintech-specific frameworks and sandboxes, encouraging experimentation while maintaining oversight. Looking ahead, with Oman’s unbanked population at its lowest level, it is expected that fintech will play a major role in enhancing financial inclusion and streamlining processes such as financing and payments, as well as wealth management.
What role can the sector play in facilitating green financing and supporting environmentally responsible investment within the sultanate?
AL KAYED: The sector is well-positioned to facilitate green financing as it transitions to a more sustainable economy. We have observed growing interest in renewable energy projects, particularly solar and wind, and banks are stepping up to provide financing solutions tailored to these renewable initiatives. Additionally, green bonds and sustainable sukuk (Islamic bonds) are emerging as viable financial instruments to fund environmentally responsible projects. Beyond financing, the sector is actively collaborating with entities in both the public and private sector in order to integrate environmental, social and governance criteria into investment decisions. This not only supports sustainability goals, but also aligns the sultanate’s financial ecosystem with global trends in responsible investing.
How are banks positioning themselves to remain competitive and resilient in the face of global economic uncertainty, given the increasing integration of regional and international markets?
AL KAYED: Banks in Oman are focusing on strengthening their operational efficiency and diversifying their portfolios to enhance resilience. With regional economic integration increasing, cross-border collaborations and syndicated financing for large-scale projects are gaining traction. Furthermore, adopting advanced risk management frameworks is helping Omani banks navigate global uncertainties, such as fluctuating energy prices or geopolitical challenges. Enhancing technological capabilities has allowed financial institutions to remain agile and competitive on the digital front. These efforts are supported by the sector’s strong regulatory oversight, which ensures stability while enabling innovation to meet the demands of an interconnected global economy.
