According to official data, Islamic banking in Oman continued its explosive growth in 2024, with total assets by December 2024 totalling 8.6 billion Omani rials (USD 22.3 billion), a 16.6% increase from the year before.
The Central Bank of Oman’s data revealed that the segment currently represents 19.2% of Oman’s total banking assets. The amount of money given by Islamic banks increased by 14.2% to about 7 billion rials.
Furthermore, by the end of December, deposits at Islamic banks and windows had increased by 21.3% to almost 60.7 billion rials.
According to CBO, the Islamic banking sector in Oman has been steadily growing, which is indicative of the growing demand for financial services that adhere to Shariah and its role in the nation’s banking sector.
The banking sector in Oman offers both traditional and Islamic banking services. Both independent financial institutions and special branches of traditional banks—which may be domestic or foreign organisations with Omani licenses—offer Islamic banking.
The CBO released initial guidelines in May 2011 to establish Islamic banking in the Sultanate. This framework allows traditional financial institutions to coexist with fully functional Islamic banks and Islamic windows.
A Royal Decree amending the Banking Law in December 2012 formally established the initiative by requiring Islamic banks and windows to create their own Shariah supervisory boards.
Additionally, it permitted the establishment of a central High Shariah Supervisory Authority by the CBO. In response to these developments, CBO released the Islamic Banking Regulatory Framework and rules pertaining to the Hawala Settlement and Safeguard Account in December 2012.
This programme promoted financial inclusion, economic diversification, and responsible financial practices, all of which were in line with Oman’s overarching economic strategy. Since its establishment, Islamic banking in Oman has been instrumental in furthering Oman Vision 2040’s goals.
“This sector has played a vital role in augmenting national savings and investment, contributing to the development of a more diversified investment base and availability of a wider range of financial products and services for consumers and businesses,” CBO concluded.