Banking
From The Report: Oman 2025
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Banking continues to be a key pillar of Oman’s financial sector, responsible for the majority of credit for individuals and institutions – both government-owned enterprises and the private sector. In recent years credit and deposits have expanded alongside the increasing reach of banking services and the overall advancement of the economy. The sector faces the challenges of enabling continued bottom-line growth while also tackling long-standing issues over expenditure. The adoption of more financial technology and greater consolidation are both helping with this, as are the sultanate’s overall development plans, with banking remaining a major force in Oman’s diversification strategy.

This chapter contains interviews with Sheikh Waleed Khamis Al Hashar, CEO, Bank Muscat; Khalid Jamal Al Kayed, CEO, Bank Nizwa; and Said Abdullah Al Hatmi, CEO, ahlibank.

Articles from this Chapter

Overview

Strategic approach: Update to the sector’s overarching legislation comes into effect amid increasing consolidation and digitalisation
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Banking continues to be a key pillar of Oman’s financial sector, responsible for the majority of credit for individuals and institutions – both government-owned enterprises and the private sector. Recent years have seen credit and deposit expansion, with these growing along with banking services and the overall economy. The sector faces the challenges of enabling continued bottom-line growth while also tackling long-standing issues over expenditure. The adoption of more financial technology (fintech) and greater consolidation are both helping with this, as are the sultanate’s overall development plans, with banking remaining a major force…

Interview

Branching out: Sheikh Waleed Khamis Al Hashar, CEO, Bank Muscat, on utilising new technology to widen the scope of service offerings
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Interview: Sheikh Waleed Khamis Al Hashar How is the banking sector adapting to promote economic diversification and sustainable growth? SHEIKH WALEED KHAMIS AL HASHAR: Banks in Oman are developing strategies to support the sultanate’s economic diversification and foster sustainable growth. This shift is driven by Oman Vision 2040, the long-term development strategy to create a more balanced and resilient economy. In addition, the efforts and directives of regulators have created a conducive…

Analysis

Progressive legislation: New sectoral regulations aim to establish a foundation for technological innovation and regional competitiveness
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Oman’s banking sector is undergoing a significant transformation, driven by the introduction of the new Oman Banking Law under Royal Decree No. 2 of 2025 and a regulatory framework for open banking. These initiatives reflect a proactive shift towards modernisation, aligning the sector with global standards and fostering a more dynamic, innovative financial landscape. Accelerating Modernisation The new Oman Banking Law, effective from January 1, 2025, replaces the longstanding 2000 framework and…

Analysis

Alternative investment: Decentralised financing could play an important role in GCC countries’ efforts to diversify their economies
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GCC countries are increasingly embracing decentralised finance (DeFi) and attracting cryptocurrency firms as they seek to harness financial technology (fintech) innovation, expand services and boost financial inclusion. DeFi, characterised by peer-to-peer financial services without central authorities, is seen as a means for economic diversification and the adoption of Web3 technologies like blockchain, the internet of things and artificial intelligence. Projections vary, but conservative estimates expect the global DeFi market to grow at a compound annual rate of 11% from 2025 to 2030, surpassing $87bn in value by 2030, according to a 2024 report…

Interview

Active collaboration: Khalid Jamal Al Kayed, CEO, Bank Nizwa, on the sector’s role in financing public infrastructure development priorities
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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…

Interview

Tailored approach: Said Abdullah Al Hatmi, CEO, ahlibank, on how financial service providers are adapting to customer needs and contributing to long-term economic diversification developments
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Interview: Said Abdullah Al Hatmi How do banks support the development of small and medium-sized enterprises (SMEs)? SAID ABDULLAH AL HATMI: Oman’s banking sector recognises SMEs as vital to the country’s economic growth and diversification efforts. Banks are taking steps to support SMEs by offering specialised financial products, mentorship programmes and bespoke advisory services. One development has been the digitalisation of financial services, which has made it easier for SMEs to access…

Analysis

Streamlined transactions: Digital payment platforms see growth in emerging markets due to higher consumer demand and increased remittances
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Despite the ongoing macroeconomic and geopolitical headwinds experienced by the global economy, one area of the international financial system that has shown steady progression is digital payments. Since the Covid-19 pandemic, they have been spurred by a jump in remittance flows, and the greater availability of digital infrastructure and services, as well as higher demand for fast and seamless non-physical transactions. The trend is even more notable across low- and middle-income countries. While non-cash retail payments climbed by 13% globally between 2018-21, they rose by 25% across emerging markets during that time. Decentralised Payments While…