Oman banking sector sees loan, liquidity growth as rates ease

Total loans and financing in the Sultanate of Oman increased to approximately RO34.733 billion (US$90.33 billion) by the end of October 2025, marking a 9 per cent rise compared with RO31.875 billion (US$82.9 billion) recorded during the same period in 2024, according to official data.

Figures released by the National Centre for Statistics and Information (NCSI) show that the expansion in credit was accompanied by growth in money supply and private sector deposits, pointing to continued momentum in financial and banking activity.

Narrow money (M1) rose by 7.3 per cent to RO7.505 billion by the end of October 2025, compared with RO6.996 billion a year earlier. Broad money (M2) also increased, climbing by 3.6 per cent to RO25.696 billion from RO24.808 billion over the same period.

The data indicated that broad money grew by around RO888 million year on year, reflecting an expansion in liquidity across the economy.

Private sector deposits recorded a notable increase, rising by 9.4 per cent to RO22.306 billion by the end of October 2025, up from RO20.384 billion during the corresponding period in 2024.

Foreign assets held by the Central Bank of Oman also edged higher. These assets rose by 0.6 per cent to RO7.253 billion by the end of October 2025, compared with RO7.209 billion a year earlier.

At the same time, borrowing costs declined. The average interest rate on total loans fell by 3.3 per cent to 5.44 per cent by the end of October 2025, down from 5.63 per cent during the same period last year.

Meanwhile, the effective exchange rate index of the Omani Rial remained unchanged at 116.4 points, indicating stability in the currency’s external value.

The latest data underline continued growth in Oman’s credit and banking indicators, supported by rising deposits, easing lending rates and stable monetary conditions.