Central Bank of Oman data show total banking sector assets climbed to OMR 44.6 billion by end-December 2025. That annual gain reflects stronger domestic credit demand and sustained economic activity across the Sultanate. The numbers place Oman firmly among the Gulf’s faster-growing banking markets.
Total credit reached OMR 35.3 billion by end-2025, recording annual growth of 8.8% over 2024, according to central bank figures. Loans now account for a large share of total assets. This positions the sector at the centre of financing for both private enterprise and public infrastructure.
Capital ratios hold firm as credit expands
Banks have preserved strong prudential buffers alongside this expansion. The capital adequacy ratio stood at 18.8% at end-2025, well above the regulatory minimum of 13.5%, per central bank data. By contrast with some regional systems where rapid credit growth has compressed capital, Oman’s numbers show a sector expanding while keeping buffers robust.
The macro backdrop supports further growth. Real GDP is projected to accelerate to around 4% in 2026, according to central bank macroeconomic projections. Fiscal and current account balances are expected to remain in surplus. As a result, credit and asset figures align with a picture of normalising growth, contained inflation, and healthy external positions.
One crisp way to read the trend: Oman’s asset growth now looks less like a short-term upswing and more like a steady re-rating of its banking system’s role in Gulf capital markets.
What does rising Islamic finance mean for investors?
Islamic banking continues to gain ground within the broader sector. Combined assets of Islamic banks and Islamic windows reached about OMR 9.8 billion (around US$25.5 billion) by end-May 2026, according to Central Bank of Oman data. That represents roughly 19% of total sector assets, also rising 9.2% year on year.
Double-digit growth in Islamic lending and deposits continues to attract Omani households and corporates alike. Individual institutions are adding meaningful scale. Meethaq Islamic Banking, the Islamic arm of Bank Muscat, reported total assets above OMR 2.08 billion by end-2025. Its net financing portfolio stood at OMR 1.658 billion and deposits reached OMR 1.69 billion.
Momentum extends into mid-2026
Short-term data confirm the upward trajectory. Central bank figures show total outstanding credit rose to around OMR 38.2 billion by June 2026, up by double digits year on year. Deposits increased to about OMR 37.3 billion over the same period.
The system enters the second half of 2026 with stronger balance sheets and firm credit demand. This trajectory also complements the broader Gulf story. GCC sovereign wealth funds have already topped US$5 trillion, and Oman’s deepening banking sector adds another layer to the region’s financial architecture.
The combination of 9.2% asset growth in 2025, expanding credit, and a rising Islamic share positions Oman’s banks as a more visible piece of Gulf liquidity flows. Over the next twelve months, investors and policymakers will watch how Oman banking assets respond to higher projected GDP growth, fiscal discipline, and any shift in regional funding costs — particularly as Omani lenders deepen their role in financing economic diversification and cross-border Gulf activity.
Quick answers
Oman banking assets rose 9.2% year on year to reach OMR 44.6 billion (around US$116 billion) by end-December 2025, according to Central Bank of Oman data.
The capital adequacy ratio for Oman’s banking sector stood at 18.8% at end-2025, well above the regulatory minimum of 13.5%, per central bank figures.
Islamic banks and Islamic windows held combined assets of about OMR 9.8 billion (around US$25.5 billion) by end-May 2026, representing roughly 19% of total Oman banking sector assets.
