Oman Banking Institutions Guide
Oman’s banking sector comprises local commercial banks, Islamic banks, foreign bank branches, and specialised development finance institutions. The sector is well-capitalised, adequately regulated by the Central Bank of Oman, and plays a crucial role in financing Vision 2040 economic transformation.
Key Facts
| Indicator | Value |
|---|---|
| Local Commercial Banks | 7 |
| Islamic Banks | 2 (full service) |
| Foreign Bank Branches | 9 |
| Total Banking Assets | ~OMR 35 billion |
| Capital Adequacy Ratio | >16% (sector average) |
Major Commercial Banks
Bank Muscat is the largest bank in Oman by assets, market capitalisation, and branch network. Bank Dhofar, National Bank of Oman, Ahli Bank, HSBC Oman, Sohar International Bank, and Oman Arab Bank complete the local commercial banking sector. These banks offer retail, corporate, and private banking services.
Islamic Banks
Bank Nizwa, established in 2012, was Oman’s first full-service Islamic bank offering Sharia-compliant products including Murabaha, Ijara, and Musharaka. Alizz Islamic Bank is the second full-service Islamic bank. Additionally, most conventional banks operate Islamic windows offering Sharia-compliant alternatives.
Development Finance
The Oman Development Bank provides long-term financing for SMEs and development projects. Al Raffd Fund offers micro-financing for entrepreneurs and startups. The Export Credit Guarantee Agency supports Omani exporters with credit insurance and guarantees.
Foreign Banks
International banks operating branches in Oman include Standard Chartered, Habib Bank, Bank of Beirut, and Bank Melli Iran. These branches primarily serve corporate clients and trade finance operations, complementing the local banking sector.
Digital Banking
Omani banks are investing heavily in digital transformation. Mobile banking penetration has increased significantly, contactless payments are widespread, and the Central Bank has established frameworks for open banking and fintech collaboration.