Omani Bank Credit Jumps 13.8% to 38.2 Billion Rials at End-August

Key Facts

Credit growth in Oman’s banking sector accelerated to 13.8% year on year at the end of August 2026, with total outstanding balances reaching 38.2 billion Omani rials, according to the Muscat Daily. That was up from growth of 8.6% in the same period a year earlier, marking a clear acceleration in bank financing. Credit expansion coincided with an increase in deposits, reflecting broader activity across the banking sector. Deposit growth reached 13% year on year, slightly outpacing credit growth. The figures show increases in both financing and deposited funds through the end of August.

Bank deposits rose to 37.6 billion rials at the end of August 2026, compared with growth of 7% and a balance of 33.3 billion rials in the same period last year, according to the Muscat Daily. This represents an acceleration in deposit growth of 6 percentage points between the two periods. On the credit side, financing to the private sector rose 11.4% year on year to 31.2 billion rials at the end of August. Private-sector deposits grew 11.1% to 24.8 billion rials. Private-sector financing growth thus came close to the pace of private-sector deposit growth, exceeding it by a narrow margin.

Data for conventional banks showed annual growth in total outstanding credit of 14.2% in August 2026, the newspaper reported. Their lending to the private sector rose 11.8% to 23.9 billion rials, while their investments in securities increased 20.8% to 7.4 billion rials. The breakdown indicates that conventional credit expanded through higher private-sector lending and an even larger increase in securities investments. On the financing side, private-sector credit across the banking sector as a whole rose to 31.2 billion rials, placing conventional-bank financing within a broader total that also includes Islamic banks. The reported growth rates and balances refer to the end of August or the month itself, according to the period specified for each indicator.

Deposits at conventional banks rose 13.5% to 29.4 billion rials, while their private-sector deposits increased 12% to 19.5 billion rials, according to data cited by the Muscat Daily. Growth in private-sector deposits at conventional banks exceeded the 11.1% rate recorded for private-sector deposits across the banking sector as a whole. Total bank deposits reached 37.6 billion rials, placing conventional-bank deposits within a total that also includes deposits at Islamic banks. These figures show deposit growth across the sector and at conventional banks in particular. They also provide a comparison between overall deposit growth and private-sector deposit growth at this type of bank.

At Islamic banks, assets rose 11.6% year on year to 10.2 billion rials, equivalent to about 19.2% of the banking system’s total assets, according to the Muscat Daily. Islamic financing increased 12.6% to 8.2 billion rials, while deposits grew 13.2% to 8.2 billion rials. The roughly 19.2% share of assets places Islamic banks among the components of Oman’s banking system, alongside conventional banks. Financing and deposit growth at Islamic banks were at similar rates, with deposit growth higher. These indicators add to the picture of overall credit and deposit growth, with expansion rates varying across the sector’s components.

Data published by the Central Bank of Oman in its monthly statistical bulletins show that credit growth at other depository corporations, which include conventional and Islamic banks, had also accelerated in previous months. Growth stood at 8.8% to 35.3 billion rials at the end of December 2025, then 10.5% to 37.1 billion rials at the end of April 2026, and 11.5% to 37.4 billion rials at the end of May. The August reading of 13.8% and a balance of 38.2 billion rials followed those levels, continuing the acceleration in growth over the periods cited. Comparisons with the end of last year and the ends of April and May provide a timeline for the increase recorded in August. They also show that the credit balance grew as its annual growth rate rose.

Against the backdrop of financing conditions, the Central Bank of Oman said in its 2025 Financial Stability Report that all banks maintained liquidity coverage ratios above the regulatory minimum of 100%. The report described the system as capable of withstanding a range of adverse macroeconomic and financial shocks. The 2025 Credit Conditions Survey also showed that household demand for credit declined during 2024, while demand from companies and small and medium-sized enterprises remained strong. The survey said participants expected lending to expand in mining, transport and manufacturing. These findings provide context on differences in demand across borrower groups and sectors, while the August data record actual credit growth across the system and in the private sector.

The Central Bank of Oman allows banks to use repurchase facilities to obtain short-term financing against eligible collateral for up to 26 days, according to its description of money-market operations. The interest rate on these facilities is announced weekly. The mechanism is among the short-term financing tools available to banks, alongside deposits and other funding sources. The latest credit and deposit figures in the report cover the end of August 2026 and do not specify a date for the next reading. The next comparison will depend on the release of the central bank’s upcoming monthly banking data.