Credit across Oman’s banking system expanded at a double-digit pace in the year through June 2026, accompanied by similarly strong growth in deposits. Total outstanding credit provided by banks and other depository corporations rose 12.3% year over year to approximately $99.4 billion (OMR 38.2 billion), according to the Central Bank of Oman’s monthly banking statistics.
Total deposits increased 13% over the same period, reaching about $97 billion (OMR 37.3 billion). The figures represent balances recorded at the end of June rather than the cumulative value of loans and deposits generated throughout the first half. Their parallel growth suggests that an expanding deposit base continued to support increased lending activity across the financial system.
Private-sector companies and households remained central to credit demand. Lending to the private sector climbed 9.9% to around $80.1 billion (OMR 30.8 billion). Nonfinancial corporations accounted for 48.2% of that total, while households represented 43.2%. Financial companies held a 6% share, with other borrowers accounting for the remaining 2.5%, according to the Central Bank of Oman.
Conventional Banks Expand Their Balance Sheets
Conventional banks reported a 12.8% annual increase in outstanding credit at the end of June. Credit extended by these banks to private-sector borrowers grew 9.9% to approximately $61.4 billion (OMR 23.6 billion), reflecting lending activity across businesses and households rather than growth concentrated in a single borrower category.
Investment portfolios also expanded more rapidly than conventional-bank lending. Banks’ investments in securities rose 26.2% to about $18.7 billion (OMR 7.2 billion). Holdings of government development bonds increased 24.7% to roughly $6.5 billion (OMR 2.5 billion), while investments in foreign securities advanced 27.1% to approximately $6.8 billion (OMR 2.6 billion), the CBO data showed.
Deposit growth provided a broader funding base. Deposits held by conventional banks increased 14.2% to approximately $76.5 billion (OMR 29.4 billion). Private-sector deposits, which made up 65.5% of their total deposits, rose 12.6% to about $50.2 billion (OMR 19.3 billion). Government deposits grew 7% to approximately $16.4 billion (OMR 6.3 billion), while deposits from public enterprises climbed 72.3% to around $6.8 billion (OMR 2.6 billion).
Households Remain a Major Source Of Deposits
Across the banking system, private-sector deposits increased 11.8% from a year earlier to approximately $63.7 billion (OMR 24.5 billion). Household deposits accounted for 48.1% of that amount, making individuals the largest source of private-sector funding. Nonfinancial corporations held a 35.1% share, followed by financial companies at 15.1% and other depositors at 1.7%.
The composition provides context for the headline growth rate. Businesses were the largest recipients of private-sector credit, while households contributed the greatest share of private-sector deposits. Although the data indicate growth on both sides of bank balance sheets, they do not establish how much of the increase came from new customers, larger balances among existing customers or changes in specific lending products.
The sectoral breakdown shows how different groups interact with Oman’s banking system. Businesses held the largest share of private-sector credit, while households provided the largest portion of private-sector deposits. This placed companies at the center of financing demand and individuals at the center of deposit funding in June.
Islamic Banking Continues to Gain Scale
Oman’s Islamic banks and Islamic windows recorded further growth, although their expansion was slower than the rates reported for conventional banking during the period. Total Islamic banking assets rose 8.7% year over year to approximately $26 billion (OMR 10 billion), giving the segment about 18.9% of banking-system assets.
Sharia-compliant financing increased 10.5% to roughly $20.8 billion (OMR 8 billion), while deposits at Islamic banks and windows grew 9.7% to approximately $20.3 billion (OMR 7.8 billion). The relatively close level of financing and deposits shows the segment has developed a substantial domestic funding base alongside its growing share of Oman’s banking market.
Regulatory policy could influence the sector’s future structure. In June, the Central Bank of Oman approved a policy for converting Islamic windows operated by conventional banks into independent Islamic banks. The policy points toward clearer institutional separation between conventional and Sharia-compliant operations, although the June banking data do not show what effect the planned conversions may ultimately have on competition or market share.
