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RIYADH: Oman’s banking sector experienced a 3.3 percent growth in total credit balance in August, reaching 31.4 billion Omani rials ($81.6 billion), according to official data from the Central Bank of Oman.
The private sector alone saw a 2.8 percent increase in credit, totaling 26.3 billion rials by the end of August.
The central bank’s figures indicated that non-financial companies accounted for the largest share of credit at 44.9 percent, closely followed by individuals at 45.2 percent.
Financial firms represented 6.4 percent, while other sectors made up the remaining 3.5 percent. This increase in credit reflects a robust and expanding economic environment in Oman, characterized by a greater flow of funds throughout the economy.
Total deposits in the banking sector also saw substantial growth, rising by 11.6 percent to reach 31.1 billion rials by the end of August 2024. Private sector deposits experienced an 11.7 percent increase, reaching 20.8 billion rials, as per the latest data.
Individuals held the largest share of these deposits at 49.5 percent, followed by non-financial companies at 30 percent and financial companies at 17.9 percent. The remaining 2.6 percent was distributed among various other sectors.
In conjunction with the strong performance of the banking sector, Oman’s private institutions also recorded significant growth in their economic contributions.
Preliminary figures from the National Center for Statistics and Information indicated that private institutions in the country generated added value exceeding 8.5 billion rials during the second quarter of 2024, as reported by the Oman News Agency.
The data showed that private institutions contributed approximately 81 percent to the country’s gross domestic product at current prices during the same period, reflecting a slight decline from 81.5 percent in 2023.
Large institutions played a crucial role, contributing 60.6 percent of the added value, or 6.38 billion rials, marking a 4 percent increase compared to the previous year.
Medium-sized institutions contributed 642.9 million rials, making up 6.1 percent of the total, with a year-on-year growth of 5.2 percent.
Small institutions added 673.3 million rials, accounting for 6.4 percent, while micro-institutions contributed 832 million rials, representing 7.9 percent of the added value, with a 1.9 percent year-on-year growth.
Oman’s private sector workforce also saw moderate expansion during this period. By the end of the second quarter of 2024, the number of employees in actively operating private institutions rose by 0.5 percent, totaling 1.78 million compared to 1.77 million in the same period of 2023.
Additionally, the number of private institutions in Oman grew significantly, reaching 252,312 by the end of the second quarter of 2024, reflecting a year-on-year increase of 10.9 percent. This growth further underscores the strength and resilience of Oman’s private sector.
These figures highlight the Sultanate’s ongoing economic resilience, driven by sustained growth across both its financial and private sectors. The rise in credit balances and deposits demonstrates robust consumer and business confidence, while the expanding contributions of private institutions play a critical role in the country’s broader economic development.