Oman bank credit growth accelerates to 13.8%, deposits grow 13%

26/10/2026 04:11 AST

Credit growth in Oman's banking sector accelerated sharply to 13.8% year-on-year at the end of August 2026, up from 8.6% a year earlier, as total outstanding credit reached RO38.2bn, according to the latest data released by the Central Bank of Oman (CBO).

The pace of credit expansion has strengthened considerably over the past two years, with total outstanding credit increasing from RO31.4bn at the end of August 2024 to RO34.1bn in August 2025 and RO38.2bn in August 2026.

Deposit growth has also strengthened, with total deposits across the banking sector rising by 13% year-on-year to RO37.6bn at the end of August 2026, compared with 7% growth, to RO33.3bn, a year earlier.

The simultaneous increase in lending and deposits points to a broad expansion in banking activity, with Oman's banks extending more credit while also attracting a larger deposit base.

Private sector credit increased by 11.4% year-on-year to RO31.2bn at the end of August 2026, while private sector deposits grew by 11.1% to RO24.8bn.

Conventional banks continued to record strong growth, with total outstanding credit increasing by 14.2% year-on-year in August 2026. Private sector lending by conventional banks rose by 11.8% to RO23.9bn, while investments in securities climbed by 20.8% to RO7.4bn.

Total deposits at conventional banks increased by 13.5% to RO29.4bn, with private sector deposits rising by 12% to RO19.5bn.

Islamic banking also maintained double-digit growth across its main indicators. Total assets rose by 11.6% year-on-year to RO10.2bn, accounting for approximately 19.2% of total banking system assets.

Islamic financing increased by 12.6% to RO8.2bn, while deposits grew by 13.2% to RO8.2bn. The expansion across both financing and deposits shows that Islamic banking continued to contribute to the overall growth of the banking sector.

The acceleration in credit and deposit growth, alongside the expansion in money supply, underscores the stronger pace of growth across Oman's banking sector in 2026.

Average interest rates in Oman were also lower than a year earlier. The weighted average interest rate on Omani rial deposits at conventional banks declined to 2.379% at the end of August 2026, from 2.535% a year earlier. The weighted average lending rate fell to 5.323% from 5.492%.

The overnight domestic interbank lending rate also declined to 3.734% in August from 4.012% a year earlier. The CBO's average repo rate applied to liquidity injections fell to 4.250% from 4.892%, in line with movements in US Federal Reserve rates.

Muscat Daily