RIYADH: Oman’s banking sector surged in the first half of 2023 due to increased revenue growth, government spending and exports, Oman News Agency reported.

Local banks in the sultanate witnessed a 17.5 percent growth in their net profit, hitting a record high of 235.3 million Omani rials ($103 million) in the first half of 2023.   

In the first six months, the assets of the eight banks listed on the Muscat Stock Exchange increased to 39.9 billion rials, recording a growth of 4.6 percent.  

The surge in the net profits was due to the rise of several economic indicators, such as revenues, government spending and exports.   

In addition, the banking sector’s inclination to finance investment projects, private sector businesses, and small and medium enterprises also added to the rise in profits.   

Bank Muscat recorded the highest profits in the year’s first half, reaching 104.3 million rials.   

National Bank of Oman came second with 29.3 million rials, whereas Sohar International Bank ranked third with 23.6 million rials.   

However, Oman Arab Bank topped the list in growth rate as it surged by 64.2 percent in net profits in the first six months, followed by HSBC Bank Oman, which rose by 50 percent.   

Oman also continues to be one of the best-performing economies in the Gulf region, with its gross domestic product reaching 8.7 billion rials at constant prices in the first quarter of 2023, the latest official data showed earlier this month.   

According to data revealed by Oman’s National Center of Statistics and Information in July, the country registered a 4.7 percent increase in the GDP at the end of the first quarter against the same period last year.    

The report added that the increase was primarily driven by non-petroleum activities that recorded a 4.6 percent increase year on year to reach 6.07 billion rials in the first quarter of 2023.    

Oman is projected to become the fastest-growing economy in 2023 among the six Gulf Cooperation Council countries, according to a report by the World Bank published in April.   

“In the GCC, growth is expected to slow to 3.2 percent in 2023 and 3.1 percent in 2024. This comes after the GCC grew 7.3 percent in 2022. The fastest-growing economy within the GCC in 2023 is projected to be Oman, at 4.3 percent growth,” the report stated.