Latest news with #CentralBankOman
Zawya
6 days ago
- Business
- Zawya
11 new financial institutions licensed in Oman last year
MUSCAT - A total of 11 new financial institutions were licensed by the Central Bank of Oman (CBO) to operate in the Sultanate of Oman in 2024 – a significant uptick that underscores the rapid growth and evolution of the country's banking and financial sector, the apex bank said. As many as 1,020 applications were received during the course of the year, seeking licenses and approvals for new financial institutions, establishments and branches, new products and services, and other licensing-related matters. The 81 per cent jump in requests can be attributed to the growth of financial institutions established, as well as the expansion of existing institutions, the Central Bank noted in a report on licensing statistics for 2024. 'This positive trend reflects the strengthening of Oman's financial sector, driven by favorable economic conditions, regulatory enhancements, and an overall increase in investor confidence. Additionally, the introduction of new financial products and services has further fueled the demand for licenses/approvals, contributing to the overall rise in requests/applications,' the Central Bank stated. Of the 11 financial institutions that received licenses were three foreign banks looking to establish branches in Oman. They are Gulf International Bank, HSBC Middle East, and Mashreq Bank. Additionally, one local investment bank was also established. 'Oman Investment Bank holds a prominent position as the first investment bank to be established in the country, offering a wide range of services such as corporate banking, asset management, and financial advisory. This establishment helps further diversify the banking sector, contributing to Oman's economic growth and financial stability,' the Central Bank noted. It add that two other applications are on hold, pending the completion of regulatory and procedural steps by the applicants. Of the remaining 7 successful applications, one – First Exchange LCC – received a license to operate as a Money Exchange Entity (MEE). Six others – Amwal Al Raqamia, Ooredoo Fintech, ONEIC Pay, Global Pay, OIFC (Khidmah) and FriendiPay – received licenses to operate as Payment Service Providers. In addition, Ahli Bank was given approval to open an overseas branch in the United Kingdom, while Bank Nizwa received the green light to open an overseas branch in Dubai International Financial Center. Hundreds of official requests were also received from commercial banks, as well as Money Exchange Entities, Finance & Leasing Companies, and Payment Service Providers, according to the report. 'The increase in requests across all categories — especially from banks and MEEs — reflects the growing demand for licensing and regulatory support as the financial sector in Oman continues to evolve. Compared to 2023, this upward trend can be attributed to several factors, including the expansion of financial services, the introduction of new regulatory frameworks, and the increasing complexity of the sector. This distribution highlights the varied needs of our stakeholders and underscores the CBO's ongoing efforts to manage and address the increasing volume and complexity of requests efficiently,' the Central Bank stated in its report. Affirming its commitment to transparency in application processing and approvals, the apex bank also announced the launch of a system to automate the branch licensing process for all financial institutions, including the issuance of certificates. 'The system is designed to replace the current manual process. It is currently in its final stages (testing phase) and is projected to go live by 2025,' it added. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Zawya
02-06-2025
- Business
- Zawya
The role of credit data in enhancing ICV in Oman
The Sultanate of Oman is undergoing a significant economic transformation, driven by its Vision 2040 strategy that emphasizes diversification, innovation, and sustainability. Central to this transformation is the concept of In-Country Value (ICV), a framework designed to maximize the retention of economic benefits within the national economy. ICV aims to stimulate local business development, enhance employment opportunities for Omanis, and build resilient supply chains across sectors. In parallel with these strategic goals, Oman has recognized the importance of robust digital and financial infrastructure. One key initiative in this domain is the establishment of Mala'a Credit Bureau. As the national credit registry, Mala'a plays a crucial role in strengthening the financial ecosystem by enhancing transparency, reducing lending risks, and promoting financial inclusion. This article explores the vital synergy between Mala'a Credit Bureau and the ICV strategy. It highlights how credit data intelligence, when effectively leveraged, can catalyze economic development, support local enterprises, and empower Omani citizens to participate actively in the nation's economic future. Mala'a Credit Bureau was established under the supervision of the Central Bank of Oman to provide a centralized platform for credit information sharing. Its core mandate is to collect, manage, and disseminate credit data from banks, financing companies, telecom providers, utilities, and other entities that offer credit services. Key functions of Mala'a include: Generating credit reports for individuals and companies, Offering credit scoring services, Providing credit monitoring and alerts, andEnabling data-driven decision-making for lenders Mala'a improves market efficiency by minimizing information asymmetry between borrowers and lenders. It promotes responsible borrowing and lending, which is critical for a stable and inclusive financial system. Importantly, it facilitates access to finance for previously underserved segments, including SMEs and startups. SYNERGIES BETWEEN MALA'A AND ICV GOALS The alignment between Mala'a Credit Bureau and ICV strategy is multifaceted. Both aim to empower local enterprises, increase economic resilience, and ensure long-term sustainability. Major areas of synergy include: • Data-driven supplier development: Mala'a provides credit histories and risk assessments that help identify financially sound local suppliers. This supports procurement teams in selecting reliable Omani vendors. • SME credit facilitation: SMEs often face challenges in securing financing due to lack of credit history. Mala'a enables the creation of digital financial footprints, allowing SMEs to access funding and participate in ICV-linked tenders. • Enhanced transparency: Credit data increases market discipline and builds trust among stakeholders, from investors to consumers. This is essential for the credibility and sustainability of ICV programs. Small and medium enterprises are the backbone of Oman's economic diversification efforts. However, limited access to finance remains a critical barrier. Mala'a addresses this by: Providing reliable credit data that lenders can use to assess SME risk profiles, Enabling SMEs to monitor and improve their credit standing, and Facilitating the creation of sector-specific financial products. Moreover, Mala'a's data infrastructure supports fintech innovation, enabling platforms that offer microloans, invoice financing, and peer-to-peer lending. These tools are particularly beneficial for entrepreneurs participating in ICV programs, allowing them to scale operations and meet procurement requirements. FACILITATING HUMAN CAPITAL DEVELOPMENT Human capital is a core component of ICV. Mala'a contributes indirectly to its development by: • Enabling educational and professional development loans based on individual credit profiles • Providing insights into population-level financial behaviors, helping policymakers identify gaps in financial literacy and inclusion • Supporting job creation in credit-related services such as fintech, risk analysis, and customer support By integrating credit data into national education and employment strategies, Oman can ensure a more financially capable and skilled workforce. IMPROVING FINANCIAL HEALTH Financial sustainability is essential for long-term ICV success. Mala'a helps local businesses achieve this by: Offering tools to monitor credit obligations and manage debt, Encouraging timely repayments and responsible financial behavior, and Supporting businesses in planning for expansion through credit analytics. This not only benefits individual companies but also strengthens entire value chains, reducing the risk of defaults and disruptions. INTEGRATING MALA'A WITH OTHER NATIONAL ICV PLATFORMS The effectiveness of Mala'a can be amplified through integration with other government platforms: • Procurement portals: Linking credit data with e-tendering platforms helps assess vendor reliability. • Tax and business registries: Streamlining data sharing supports due diligence and compliance monitoring. • Labour and training systems: Insights from Mala'a can inform targeted skills development initiatives. Advanced analytics, including artificial intelligence, can enhance predictive modeling for supplier performance, fraud detection, and credit risk. CHALLENGES AND OPPORTUNITIES Despite its benefits, the implementation of Mala'a and its integration with ICV is not without challenges: Data privacy (Ensuring data protection and compliance with privacy regulations is critical); Adoption rates (Encouraging SMEs and institutions to actively use Mala'a services requires ongoing awareness and incentives); and Data quality: The accuracy and completeness of data submissions must be maintained to ensure reliable outcomes. On the other hand, opportunities abound: • Regional expansion: Mala'a can serve as a model for credit bureaus across the Gulf Cooperation Council (GCC). • Investment attraction: A strong credit infrastructure increases investor confidence and enhances Oman's competitiveness. • Public-private collaboration: Partnerships with fintechs, banks, and training institutes can unlock new value streams. Mala'a Credit Bureau is a strategic enabler of Oman's ICV objectives. By improving access to credit, supporting SMEs, enhancing transparency, and facilitating data-driven policy making, Mala'a contributes to a more inclusive and sustainable economy. Key recommendations include: Promoting SME engagement through awareness and capacity building; Strengthening inter-agency data sharing protocols; Integrating Mala'a insights into national ICV reporting and evaluation frameworks; and Investing in cybersecurity and data governance As Oman continues its journey toward economic diversification and digital transformation, the alignment between credit infrastructure and local value creation will play a defining role in shaping the nation's prosperity. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Times of Oman
31-05-2025
- Business
- Times of Oman
Credit granted by banks in Oman reaches OMR33.6bn
Muscat: The total credit granted by the Omani banking sector rose by 9 percent to OMR33.6 billion by the end of April 2025. Data issued by the Central Bank of Oman (CBO) indicated that credit granted to the private sector grew by 7 percent, reaching OMR27.8 billion by the end of April 2025. Data on its distribution across various sectors indicate that the non-financial corporate sector accounted for the largest share, representing 46.6 percent by the end of April 2025, followed by the individual sector at 44 percent. The remaining share was distributed between the financial corporate sector at 5.6 percent and other sectors at 3.7 percent. Total deposits in the Omani banking sector grew by 9.3 percent, reaching OMR32.8 billion by the end of April 2025. Within this total, private sector deposits in the banking system increased by 7.1 percent, reaching OMR21.5 billion by the end of April 2025. When looking at the distribution of the total private sector deposit base across various sectors, the figures indicate that the individual sector holds the largest share, amounting to approximately 50.3 percent, followed by the non-financial corporate sector and the financial corporate sector with shares amounting to 30.4 percent and 17.0 percent, respectively. The remaining percentage (2.3 percent) was distributed across other sectors. Domestic liquidity hits OMR25.1bn Domestic liquidity in the Sultanate of Oman registered a remarkable growth by the end of January 2025, reaching OMR25.61 billion, a 7.2 percent increase compared to the same period in 2024, when it reached OMR23.375 billion. Preliminary data released by the National Centre for Statistics and Information (NCSI) showed that total loans and financing provided by commercial banks and Islamic windows rose by 6.5 percent to OMR32.47 billion by the end of January 2025, compared to OMR30.48 billion by the end of January 2024. The average interest rate on total loans also rose by 1.1 percent to 5.608 percent by the end of the same period. In the same context, private sector deposits in commercial banks and Islamic windows increased by 7.2 percent to OMR20.967 billion by the end of January 2025 compared to OMR 19.559 billion by the end of January 2024. Total foreign assets at the Central Bank of Oman (CBO) also increased by 5.3 percent reaching OMR7.096 billion by the end of January 2025 compared to OMR6.741 billion during the same period in 2024. As for the narrow money supply (M1), which consists of total cash outside the banking system in addition to current accounts and demand deposits in local currency, it witnessed a significant increase of 15.5 percent reaching OMR7.32 billion compared to OMR6.90 billion at the end of January 2024. On the other hand, cash issued decreased by 8.3 percent to reach OMR1.44 billion by the end of January 2025 compared to OMR1.57 billion by the end of January of the previous year. The effective exchange rate of Omani riyal rose by 2.7 percent to reach 119.1 points, compared to 116 points at the end of January 2024.
Zawya
26-05-2025
- Business
- Zawya
Oman: SMEs, banks unite to make a stronger future
Muscat: In a continued effort to strengthen the business environment and promote synergy between the public and private sectors, the Small and Medium Enterprises Development Authority (SMEDA) recently organised a dialogue session under the theme 'Financing Small and Medium Enterprises.' The session explored ways to enhance banking services for SMEs, discussed regulatory frameworks and addressed the role of partnerships in fostering a more inclusive and dynamic entrepreneurial ecosystem. The session was held in the presence of Halima bint Rashid al Zariyah, Chairperson of the Small and Medium Enterprises Development Authority (SMEDA) and Rashid bin Zayed al Ghassani, Deputy CEO of the Supervision and Regulation Sector at the Central Bank of Oman (CBO), alongside representatives from government bodies, financial institutions and SME owners from across Oman. Key objectives of the session included reinforcing partnerships between SMEs and regulatory entities, improving the appeal of Oman's business climate and developing SME-centric policies. The Authority also emphasised the importance of innovation in driving economic sectors and encouraged entrepreneurs to bring forward transformative ideas. Several critical themes were addressed during the dialogue including policies and regulations, for SMEs to access to banking services, with proposals for simplifying licensing and compliance procedures, licensing and fees, access to finance, enablers and Incentives for SMEs. In her address, Halima reiterated that financial access is not merely a capital issue but a strategic enabler of growth. 'Financing must be part of an integrated framework that includes regulation, skills development and advisory services,' she said. During the session, Al Ghassani reaffirmed the Central Bank of Oman's support for SME financing, noting the importance of regulatory flexibility and digital innovation in banking. He also emphasised the central bank's strategic role in promoting financial inclusion through accessible banking products tailored to the needs of small businesses. The session concluded with several recommendations for stakeholders that include streamlining banking-related licenses and reducing associated fees, promoting alternative finance models, including venture capital and crowdfunding, expanding incubators and accelerators in partnership with academic and private sector institutions, developing a credit scoring system tailored for SMEs and organising financial literacy programmes for entrepreneurs. Participants agreed that the coming phase requires tangible partnerships between SMEs and financial institutions, alongside targeted incentives for priority economic sectors. Such efforts would position Oman's SMEs to compete locally and regionally, contributing meaningfully to the national economy. By organising sessions such as this, SMEDA continues to serve as a key enabler and facilitator for the growth of the SME sector, helping build a resilient and diversified economic future for Oman. According to updated statistics shared by SMEDA, the number of registered SMEs in Oman reached 276,111 by March 2025. Among these, 149,219 hold the official "Entrepreneurship Card." The highest concentration of SMEs is in the Al Dakhiliyah governorate (53,450), followed by Al Batinah North Governorate (21,872) and Al Sharqiyah North Governorate (18,119). Meanwhile, Muscat Governorate recorded over 10,000 enterprises. The breakdown by size category shows a dominance of micro-enterprises (129,706), followed by small (37,107) and medium-sized businesses (18,437), highlighting the sector's significant presence in the national economy. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Times of Oman
22-05-2025
- Business
- Times of Oman
IMF mission begins visit to Oman
Muscat: The 2025 International Monetary Fund (IMF) staff mission to the Sultanate of Oman today commenced and will continue through 29 May 2025. This visit is part of the IMF's regular Article IV consultations, conducted in accordance with its Articles of Agreement, and is hosted by the Central Bank of Oman (CBO) in cooperation with the Ministry of Finance. During this mission, the IMF team will hold a series of meetings with officials and specialists from the CBO, the Ministry of Finance, other government entities, and representatives from the private sector. These discussions will focus on recent economic, financial, and monetary developments, as well as medium-term prospects, particularly in light of growing global trends and trade dynamics. The meetings will also cover key issues such as fiscal and monetary policy and various socioeconomic developments and the implications of global oil price fluctuations on economic performance and trade, among other topics related to continued fiscal and economic reforms in Oman.
