Muscat – Oman is rapidly reshaping its financial and economic landscape, driven by a clear governmental will to transform its funding ecosystem and enhance investment attraction. This shift is powered by intensive legislative and fiscal reforms that have redrawn the business environment and sent strong signals to global financial markets, culminating in the country’s return to investment-grade credit ratings for the first time in years.

The banking sector recorded notable growth, with total credit rising to more than RO 34 billion, supported by increasing deposits that reflect private-sector confidence, while digital payment systems reached record levels. With this continued momentum, Oman asserts itself as a rising economy with a stable and promising financing environment, preparing for broader expansion in attracting high-value investments in line with Oman Vision 2040 objectives.

The sustainability of the government’s fiscal performance has strengthened international confidence in the Omani economy. Standard & Poor’s Global Ratings (S&P) affirmed Oman’s credit rating at BBB- with a Stable Outlook, highlighting the strength of the fiscal position and the government’s efficient management of public debt. Meanwhile, Moody’s Investors Service upgraded Oman to investment grade (Baa3), reflecting fiscal resilience and a reduction in the debt-to-GDP ratio, which enhances the country’s ability to attract long-term foreign capital.

In terms of banking performance, recent data shows continued credit growth. Total credit extended by Oman’s banking sector increased by 8%, reaching RO 34.5 billion by the end of September 2025. According to data from the Central Bank of Oman (CBO), lending to the private sector grew by 5.7%, amounting to RO 28.2 billion by the end of the same period.

Total deposits in the banking sector grew by 4.7%, reaching RO 33.1 billion by the end of September 2025. Private-sector deposits rose by 7.5%, reaching RO 22.3 billion. Within this base of private-sector deposits, individuals accounted for the largest share at approximately 50%, followed by non-financial corporations (30.5%) and financial corporations (17.3%), while other sectors accounted for 2.2%. This reflects growing credit activity, increasing liquidity within the banking system, rising demand for financing, and expanded non-oil economic activity.

Alongside conventional banks, the Islamic finance sector has also witnessed substantial growth in credit and deposits, offering wider financing options for investors in commercial financing, asset financing, and SME funding. Initiatives by Islamic banks and finance companies have supported the provision of innovative products tailored to the needs of local and foreign investors.

SMEs accounted for 3.7% of total loan portfolios, and Oman, through the Central Bank of Oman, the SME Development Authority, and the banking sector, is pursuing a national strategy aimed at raising this share to 5%. The strategy includes easier credit assessments, reduced collateral requirements, and the establishment of specialized SME financing units within banks.

On the legislative front, Oman continues to modernize its financial regulatory framework. The new Banking Law represents a significant shift in regulating digital banking services, prohibiting shell banks, and strengthening governance and consumer protection standards. Additionally, the establishment of the Capital Market, Insurance, and Accounting Authority under Royal Decree No. 20/2024 has restructured the non-bank financial services sector, with oversight now covering the Muscat Stock Exchange (MSX), the insurance industry, and the accounting and auditing profession.

The Authority has launched an incentive program for MSX to encourage family-owned and private companies to convert to closed or public joint-stock companies and to establish a Promising Companies Market, designed to attract SMEs and startups. The program includes tax incentives and regulatory facilitation to support listings and enhance long-term financing opportunities.

Oman is also witnessing significant growth in modern financing tools. Since the launch of the first crowdfunding platform in 2022 until the end of Q2 2025, total crowdfunding volume has exceeded RO 14.9 million, reflecting the rising role of crowdfunding in supporting startups and SMEs by providing alternative non-bank financing channels.

In electronic payments, Oman has made major progress. The number of mobile payment transactions reached nearly 40 million annually, up from fewer than 5 million just three years earlier. This surge is supported by advanced national payment systems, including the Real-Time Gross Settlement System (RTGS), Automated Clearing House (ACH), and the Mobile Payment Clearing and Switching System (MPCSS). This transformation enhances business efficiency, reduces reliance on cash, and provides a faster and more secure operational environment.

Oman is also advancing financial technology (FinTech) through the Regulatory Sandbox, which allows startups to test innovative financial solutions prior to market rollout, along with the development of an Open Banking Framework that enables technology firms to provide advanced financial services based on secure data sharing.

The financing ecosystem is complemented by the enhancement of the national credit bureau system. Mala’a — Oman Credit and Financial Information Centre continues to expand its coverage by integrating comprehensive financial data for individuals and companies, improving credit scoring accuracy and providing foreign investors with reliable information to support lending and investment decisions.

Finally, Oman benefits from strong competitive factors—including political stability, a strategic location along global trade routes, and advanced logistics and industrial infrastructure in special economic and free zones, most notably the Special Economic Zone at Duqm (SEZAD), a promising industrial and logistics gateway linking Asian and African markets.