Banking & IFS
From The Report: Oman 2017
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A number of challenges have confronted Oman’s banking sector in recent years: a structural shake-up in the form of a new Islamic segment has increased competition levels; declining oil prices, which have constricted lending opportunities in some segments and compelled the regulator to encourage greater credit extension to others; and uncertainty surrounding the growth of regional economies, which further clouds the sector’s growth prospects in the short term. Nonetheless, the sector has continued to produce robust results, and is well positioned to weather the current economic turbulence. This chapter contains interviews with Hamood Sangour Al Zadjali, Executive President, Central Bank of Oman; and AbdulRazak Ali Issa, CEO, Bank Muscat.

Articles from this Chapter

Overview

Solid performance: Sector records rises in assets, lending and deposits, as the central bank keeps tabs on liquidity
OBG
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A number of challenges have confronted Oman’s banking sector over recent years: a structural shake-up in the form of a new Islamic segment has increased competition levels; declining oil prices have constricted lending opportunities in some segments and compelled the regulator to encourage greater credit extension to others; and uncertainty surrounding the growth of regional economies adds a further question mark to the sector’s growth prospects in the short term. Nevertheless, the sector has…

Interview

Fine tuning: Hamood Sangour Al Zadjali, Executive President, Central Bank of Oman (CBO), on ensuring stability and encouraging growth
OBG
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Interview: Hamood Sangour Al Zadjali What steps is the CBO taking to support liquidity within the banking system? AL ZADJALI: With a view to augmenting liquidity and encouraging investment, it was decided to permit banks to invest in unencumbered Treasury bills, government development bonds and Oman government sukuk (Islamic bonds) as part of eligible reserves up to a maximum of 2% of deposits, effective April 1, 2016. The reserve requirements remain unchanged, at 5%. It is envisaged that this…

Interview

New opportunities: AbdulRazak Ali Issa, CEO, Bank Muscat, on developments in the banking and financial sectors
OBG
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Interview: AbdulRazak Ali Issa What opportunities do you see for synergy between the financial sectors of Oman and Iran? ABDULRAZAK ALI ISSA: Bank Muscat views the trade outlook and bilateral investment between Oman and Iran as positive and is keen on seizing this opportunity for growth. Oman’s modern infrastructure and global investment environment serve as incentives to foreign investors, backed by supportive legislation to regulate and protect investment. The strategic geographic location…

Overview

Effective tools: The central bank is taking measures to increase liquidity
OBG
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It is nearly a decade since banking sector liquidity was last a significant concern in the GCC, but the precipitous decline of crude oil prices that began in the summer of 2014 has brought the issue to the fore once again. The major role played by the hydrocarbons industry in regional economies means that large alterations to spot prices and futures have the potential to significantly affect the liquidity position, and therefore the lending ability, of banks. Drying Up Generous oil revenues over…