Oman's Banking Sector Sees Significant Credit and Deposit Growth

Oman's banking sector experienced significant expansion in May 2026, demonstrating strong growth in both lending and deposits. Total credit granted by conventional and Islamic banks across the Sultanate rose by 11.5 percent, reaching a substantial OMR37.4 billion by the end of the month. This upward trend shows the dynamic financial activity within the nation. Concurrently, total deposits within the banking sector in the Sultanate of Oman also grew considerably, increasing by 13.1 percent to reach OMR36.5 billion by the end of the same month. These figures highlight a period of sustained financial health and increased public and corporate engagement with the banking system.

Credit Expansion Details

Credit granted to the private sector in Oman recorded an 8.7 percent growth, reaching OMR30.3 billion by the end of May 2026. This expansion reflects continued lending activity within the Sultanate's banking institutions, indicating a healthy demand for financing across various economic segments. The overall growth in credit suggests confidence in the Omani economy and an active role for financial institutions in supporting development.

Within the allocation of credit, the retail sector, encompassing personal loans, acquired the largest share, accounting for 43.4 percent of total credit by the end of May 2026. This indicates a significant portion of banking sector lending is directed towards individual consumers, supporting household spending and personal investments. This substantial allocation to the retail sector shows its importance in driving economic activity.

The non-financial corporate sector also played a key role in the credit landscape, acquiring the largest share of credit among all sectors. It accounted for 48.1 percent of the total credit extended by the end of May 2026. This significant proportion indicates that a substantial amount of lending activity is directed towards businesses operating outside of the financial industry, supporting their operations, expansion, and investment initiatives. This focus on non-financial corporations is key for broader economic development and diversification.

Meanwhile, the financial corporate sector secured a notable 6 percent of the total credit extended during the same period. This indicates lending activities supporting other financial institutions, which can include interbank lending or financing for investment companies. Other sectors collectively received 2.5 percent of the total credit extended by the end of the same period. These figures provide a detailed breakdown of how banking credit is distributed across different segments of the Omani economy. The detailed allocation notes the various areas benefiting from the overall growth in credit within the Sultanate's financial system, illustrating the diverse needs met by the banking sector.

Deposit Growth Trends

Private sector deposits with Oman's banking system increased by an impressive 10.7 percent, reaching OMR24.2 billion by the end of May 2026. This growth in deposits reflects an expanded financial base within the private sector, signifying increased savings and liquidity held by individuals and businesses. The consistent rise in private sector deposits points to a growing trust in the banking system and an accumulation of wealth within the economy.

The retail sector secured the largest portion of the total private sector deposit base, accounting for approximately 49.5 percent. This indicates a significant concentration of individual savings and personal funds within the banking system, noting the importance of household deposits to the overall financial stability. This substantial contribution from the retail sector shows the financial prudence of individual citizens and residents.

The non-financial corporate sector held 33.4 percent of the total private sector deposit base by the end of May 2026, contributing significantly to the overall deposit expansion. This reflects the financial health and liquidity of businesses outside the financial services industry, indicating their ability to generate and retain funds within the banking system. This segment's strong deposit base supports their operational continuity and future investments.

The financial corporate sector also played a role in the deposit landscape, holding