Oman Financial Services Guide
Oman’s financial services sector plays a critical role in supporting economic diversification under Vision 2040. The sector encompasses commercial banking, Islamic banking, insurance, capital markets, and emerging fintech services. The Central Bank of Oman and the Capital Market Authority provide robust regulatory oversight.
Key Facts
| Indicator | Value |
|---|---|
| Commercial Banks | 7 local, 9 foreign branches |
| Islamic Banks | 2 full-service, 6 windows |
| Insurance Companies | 22 |
| Muscat Securities Market Listed Companies | ~115 |
| Total Banking Assets | ~OMR 35 billion |
Banking Sector
Bank Muscat is the largest commercial bank by assets, followed by Bank Dhofar, National Bank of Oman, and Ahli Bank. The sector maintains strong capitalisation ratios above Basel III requirements, with non-performing loan ratios remaining manageable. Digital banking adoption has accelerated following regulatory support for electronic payment systems.
Islamic Finance
Islamic banking has grown rapidly since its introduction in 2012. Bank Nizwa and Alizz Islamic Bank operate as full-service Islamic banks, while most conventional banks offer Sharia-compliant windows. Islamic finance assets represent approximately 15 percent of total banking assets and continue to grow at double-digit rates.
Capital Markets
The Muscat Securities Market (MSM) operates under the Capital Market Authority’s supervision. The market comprises the MSM 30 Index covering the top listed companies. Recent reforms have improved market infrastructure, including central counterparty clearing and enhanced disclosure requirements.
Insurance Sector
The insurance sector is regulated by the Capital Market Authority and comprises 22 companies offering life, general, and Takaful products. Motor and health insurance represent the largest segments. Compulsory health insurance for expatriate workers has expanded the market significantly.
Fintech Development
The Central Bank of Oman launched a regulatory sandbox for fintech companies, enabling innovation in payments, lending, and insurance technology. The national e-payment gateway Thawani has gained significant adoption, and several digital wallet providers now operate in the market.