Banking
From The Report: Oman 2023
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As a cornerstone of the economy, Oman’s banking sector experienced significant growth and development between 2012 and 2022. While the disruption caused by the Covid-19 pandemic – and in particular its knock-on effects on global energy markets, supply chains and inflation – has weighed on the pace of expansion, Omani banks’ strong performance and stability in the years preceding the health crisis have allowed the sector to weather the multiple global economic headwinds since 2020. One of the key strengths of the banking sector is its well-regulated environment, which is overseen by the Central Bank of Oman (CBO). The CBO has implemented strict regulations to ensure that banks operate in a safe and sound manner, which has helped to maintain the stability of the wider financial system. It has also implemented measures to promote financial inclusion, such as the introduction of mobile banking and the expansion of branch networks to reach underserved areas.

This chapter contains an interviews with Tahir bin Salim Al Amri, Executive President, Central Bank of Oman; and Sheikh Waleed Khamis Al Hashar, CEO, Bank Muscat.

Articles from this Chapter

Overview

Secure funds: Economic recovery and supportive policies unlock growth and innovation among conventional and Islamic lenders
OBG
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As a cornerstone of the economy, Oman’s banking sector experienced significant growth and development between 2012 and 2022. While the disruption of the Covid-19 pandemic – and in particular its knock-on effects on global energy markets, supply chains and inflation – has weighed on the pace of expansion, Omani banks’ strong performance and stability in the years preceding the health crisis have allowed the sector to weather the multiple global economic headwinds since 2020. Structure &…

Interview

Creative finance: Tahir bin Salim Al Amri, Executive President, Central Bank of Oman (CBO), on economic projections and financial innovation
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Interview: Tahir bin Salim Al Amri What are the expectations for inflation in Oman? TAHIR BIN SALIM AL AMRI: Inflation has remained benign despite a sharp increase in prices globally, mainly due to the exchange rate peg, a cap on retail oil prices and tax exemptions on key items. Overall, we expect inflationary pressure to remain low, notwithstanding some risks from commodity price volatility caused by recent geopolitical developments. Potential inflationary risk would be linked to the US Federal…

Analysis

Consistent expansion: Regulatory framework provides a backbone for the growth of sharia-compliant financing, indicating further development
OBG
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In December 2022 Oman marked 10 years since its establishment as a burgeoning destination for sharia-compliant banking and investment. The sultanate has successfully pushed for the development of a robust and supportive governance framework since the regulation of its Islamic finance segment began with Royal Decree No. 69 of 2012, which added a chapter dedicated to Islamic banking. This process culminated in the issuance of the Islamic Banking Regulatory Framework (IBRF) in December 2012, which…

Interview

Technological advantage: Sheikh Waleed Khamis Al Hashar, CEO, Bank Muscat, on supporting diversification through funding and innovation
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Interview: Sheikh Waleed Khamis Al Hashar In what ways is the banking sector supporting economic diversification in line with Oman Vision 2040? SHEIKH WALEED KHAMIS AL HASHAR: Oman’s medium-term fiscal strategy continues to deliver results while economic diversification plans are gaining further traction with sustained focus on strategic sectors like manufacturing, tourism, transport and logistics, mining, renewables, and agriculture and fisheries. Overall, the banking sector is well aligned to…

Analysis

Tie-up trend: GCC banks consolidate to boost resilience against future crises
OBG
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The Gulf banking sector has witnessed an increase in mergers and acquisitions (M&A) in recent years, as lenders continue to deal with the economic headwinds associated with the Covid-19 pandemic. At the outset of the pandemic, in the first quarter of 2020, it was anticipated that the economic slowdown and the associated fall in oil prices would accelerate the M&A trend among banks in the region, with most institutions expecting constrained profitability despite performing well on risk indicators. Pandemic…