Oman’s economy continues to grow, bolstered by non-oil activities, while the banking sector has recorded increases in both borrowings and deposits, according to recent data.
At the close of the second quarter of 2024, the sultanate’s nominal gross domestic product (GDP) grew by 2.6%, with real GDP increasing by 1.9%, driven primarily by the non-hydrocarbon sector, which expanded by 4.2%, as per preliminary data from the National Centre for Statistics and Information (NCSI) and the Central Bank of Oman.
Oman’s banking sector, comprising conventional and Islamic banks, reported a total of OMR 31.4 billion ($81.3 billion) in outstanding credit by the end of August 2024, marking a 3.3% increase year-on-year. Private sector credit rose by 2.8%, reaching OMR 26.3 billion ($68.1 billion). The largest share of this went to non-financial corporations (44.9%) and households (45.2%).
Financial corporations accounted for 6.4% of private sector credit, with the remaining 3.5% distributed across other sectors.
Deposits in Oman’s conventional and Islamic banks also surged, growing by 11.6% year-on-year to OMR 31.1 billion by August 2024. Private sector deposits increased by 11.7% to OMR 20.8 billion, led by households (49.5%), followed by non-financial corporations (30%), financial institutions (17.9%), and other sectors (2.6%).
