Banking
From The Report: Oman 2015
View in Online Reader

The Omani banking sector once again posted solid growth in 2013 and the first half of 2014 as steadily growing demand for financial services continues to expand the sector. Government initiatives to boost entrepreneurship and the establishment of small and medium-sized enterprises (SMEs) has resulted in a Central Bank drive requiring local banks to increase lending to SMEs to at least 5% of their loan books by 2015. While this presents a challenge to the sector, the outlook remains positive, with deposits and credit issuance rising. Moreover, the emergence of the sharia-compliant segment presents strong growth potential for local banks. With 3.6% of total banking assets in the sultanate being held by sharia-compliant entities at the end of 2013, the sector, which in September 2014 comprised two Islamic banks and five Islamic “windows” operated by conventional banks, is expected to expand rapidly in the coming years. This chapter contains interviews with Hamood Al Zadjali, Executive President, Central Bank of Oman (CBO); and AbdulRazak Ali Issa, CEO, Bank Muscat.

Articles from this Chapter

Overview

The industry is increasingly integral to the economy
OBG
plus

The banking sector posted solid growth in 2013 and the first half of 2014, on the back of improving asset quality, coverage and capital adequacy, a burgeoning Islamic banking segment and significant expansion in the economy. The industry comprises 16 conventional commercial banks – including seven local and nine foreign institutions – as well as two sharia-compliant banks, two state-owned specialised credit banks and a handful of non-deposit-taking leasing companies. Prospects Taking…

Interview

Hamood Al Zadjali, Executive President, Central Bank of Oman (CBO): Interview
OBG
plus

Interview:Hamood Al Zadjali How can the CBO’s regulations best support the strategic goal of economic diversification? HAMOOD AL ZADJALI: In its capacity as the country’s monetary agency, as well as the supervisor and regulator of financial institutions, the CBO has undertaken a number of measures and adopted policies over the years to promote confidence in the banking sector and ensure uninterrupted credit flow to consumers and productive sectors of the economy. At the same time, the…

Analysis

Islamic financial services have tremendous growth potential
OBG
plus

The burgeoning Islamic financial services (IFS) industry in Oman is expected to have a major impact on the domestic banking sector and the economy as a whole in the coming years. Since the launch of the country’s first sharia-compliant bank in late 2012, the sector has grown rapidly. As of September 2014 the sultanate was home to two full-fledged Islamic banks, Bank Nizwa and alizz islamic bank, and six Islamic “windows”, which are owned and operated by conventional banks. “Islamic banking…

Interview

AbdulRazak Ali Issa, CEO, Bank Muscat: Interview
OBG
plus

Interview:AbdulRazak Ali Issa What can the recent strong growth in the banking sector predominantly be attributed to? ABDULRAZAH ALI ISSA: The banking and financial sector in Oman serves as a pillar of the national economy. Sound macroeconomic policies, a stable financial system and fine-tuned monetary policy measures have all supported the financial sector, which has in recent times witnessed considerable growth momentum and steps forward in technology use and transparency. The banking sector…