Interview: Khaled Al Balushi
In what ways have financial technology (fintech) and digital banking trends influenced opportunities for investors within financial services?
KHALED AL BALUSHI: The financial sector is undergoing a significant digital transformation, driven by a fintech framework designed by the Central Bank of Oman (CBO) to foster innovation. One key indicator of this shift is the sultanate’s high digital adoption rate — banks now conduct 87% of their transactions digitally, surpassing many global counterparts. This rapid digitalisation presents many investment opportunities, particularly in digital payments, mobile banking and cybersecurity subsectors.
Fintech is becoming a key enabler of financial inclusion and efficiency as Oman Vision 2040, the long-term economic diversification plan, advances. We have seen success stories emerge in this space. Thawani, the first fintech company approved by the CBO, has demonstrated the potential for homegrown digital financial solutions. Mamun is another example, along with other start-ups that are gaining traction. Oman’s evolving fintech landscape provides an attractive entry point for first-time investors in the GCC, offering opportunities to tap into a growing market with strong regulatory support.
How is the emphasis on environmental, social and governance (ESG) principles shaping Oman’s investment in the financial services sector?
AL BALUSHI: Oman is actively integrating ESG principles into its financial sector. The Muscat Stock Exchange has introduced ESG disclosure guidelines, with mandatory reporting effective end-March 2025. This regulatory shift enhances transparency and accountability, making Omani companies more attractive to foreign investors seeking sustainable investment opportunities. Beyond regulatory compliance, adopting ESG principles also reshapes investment strategies. Institutional investors are progressively factoring in ESG performance when making decisions, and Omani firms that align with these standards will be better positioned to attract long-term capital. Additionally, ESG-focused investment, particularly in renewable energy, sustainable infrastructure and social impact initiatives, are gaining traction. Strategic partnerships with international financial institutions and environmentally-conscious funds can further bolster capital inflows, strengthening Oman’s financial markets. In private equity, ESG considerations are playing a progressively important role, drawing a new set of investors that prioritise sustainable business models.
What is your assessment of Oman’s environment for private equity and venture capital in the technology, logistics and renewable energy sectors?
AL BALUSHI: A major catalyst in fostering a dynamic environment for various sectors in this space is Future Fund Oman (FFO), launched by the Oman Investment Authority in January 2024 with $5.2bn in capital. This fund is designed to accelerate economic diversification, with a significant portion dedicated to strategic sectors that drive both innovation and long-term growth. Notably, 7% of FFO’s capital is allocated to small and medium-sized enterprises, while 3% is directed towards start-ups — both critical for fostering entrepreneurship and innovation.
TANMIA, through its growth private equity portfolio, plays a key role in providing tailored financial products that support the expansion of high-potential businesses. These initiatives are creating greater maturity within the investment ecosystem in Oman. Multiple investment products are available in the market for the first time, marking an important milestone in the sultanate’s financial evolution. This shift makes Oman an increasingly attractive destination for private equity and venture capital firms that are seeking opportunities in a rapidly growing economy.
