JEDDAH: Oman’s Islamic banking assets climbed to about 9.2 billion Omani rials ($23.9 billion) by the end of October, underscoring steady expansion in the sultanate’s financial sector as credit growth remains robust. 

Assets held by Islamic banks and Islamic windows accounted for 19.5 percent of Oman’s total banking system, up 10.8 percent from a year earlier, the Oman News Agency reported. 

Oman’s banking sector performance reflects steady progress toward Vision 2040, which prioritizes economic diversification, private sector growth, and financial resilience. 

“As for the total financing provided by institutions engaged in this activity, it also rose by 10.4 percent, reaching around 7.4 billion Omani rials,” the ONA reported, adding that deposits with Islamic banks and Islamic windows grew 11.9 percent to roughly 7.3 billion rials by the end of October. 

Rising credit flows, particularly to non-financial corporates and households, are fueling the development of small and medium-sized enterprises and domestic investment in Oman, supporting efforts to reduce reliance on hydrocarbons and build a more diversified economy. 

“Total deposits held with ODCs registered a Y-o-Y significant growth of 7 percent to reach 33.3 billion rials at the end of August 2025. Total private sector deposits increased by 7.5 percent to OMR 22.4 billion,” the Central Bank of Oman said in a statement issued in October. 

The broader banking sector also saw solid credit growth in 2025. By the end of August, total credit across commercial banks increased by 8.6 percent year on year to 34.1 billion rials, driven mainly by lending to non-financial corporates and households, which accounted for 46.7 percent and 44.7 percent of total credit, respectively. 

Private sector lending alone rose by 6.5 percent, supporting SME activity and domestic investment. 

Meanwhile, aggregate deposits at conventional banks climbed 5.5 percent to 26.1 billion rials at the end of August, with private sector deposits accounting for 67 percent, or 17.5 billion rials, of the total. 

Islamic banking entities mirrored this momentum, with total financing reaching 7.3 billion rials and deposits standing at 7.2 billion rials by the end of August, underscoring steady expansion throughout 2025. 

Islamic banking in Oman was introduced after the Central Bank of Oman issued preliminary licensing guidelines in May 2011, allowing full-fledged Islamic banks and Islamic windows to operate alongside conventional institutions. 

The framework was formalized in December 2012 through a Royal Decree amending the Banking Law, mandating Shariah supervisory boards and authorizing the central bank to establish a High Shariah Supervisory Authority.