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JEDDAH: Oman’s conventional commercial banks expanded credit by 8 percent year on year by the end of July 2025, official data showed. 

Private sector lending rose 4.6 percent to 21.3 billion rials ($55.4 billion), according to the Central Bank of Oman. Investments in securities fell 3.4 percent to 5.8 billion rials, with holdings of government development bonds climbing 6.3 percent to 2 billion rials, while foreign securities declined 15.7 percent to 2.1 billion rials. 

The central bank’s 2025 Financial Stability Report pointed to strong capital buffers and high-quality assets, noting that Oman’s banking sector remains profitable and well-positioned to absorb external shocks. 

“Private sector deposits increased 4.1 percent to 17 billion rials by the end of July, accounting for 66.3 percent of total deposits with conventional commercial banks,” ONA reported, citing the report’s findings. 

On the liabilities side, the recent official data noted that the total deposits with conventional commercial banks grew 3.6 percent to 25.7 billion rials by the end of July. It added that government deposits rose 7.1 percent to 5.8 billion rials, while deposits from public sector institutions fell 11 percent to 1.7 billion rials. 

Real estate trade value hits 2.12bn rials    
According to the National Centre for Statistics and Information, Oman’s total real estate transaction value reached 2.124 billion rials by the end of August, marking a 9.9 percent increase from 1.933 billion rials in the same period last year. 

Fees for legal transactions rose 81.7 percent to 79 million rials. Similarly, sale contract values grew 16.1 percent to 831 million rials, despite a slight 1 percent drop in the number of contracts to 43,971. 

Meanwhile, mortgage contract values rose 6.4 percent to 1.285 billion rials, while exchange contract values declined 17.7 percent to 7.6 million rials. Additionally, property ownership transfers rose 2.6 percent to 153,764, though transfers to GCC nationals fell 12.8 percent to 859 ownerships. 

S&P affirms Oman’s BBB- rating 

The global financial rating agency S&P has affirmed Oman’s long-term foreign and local currency sovereign credit rating at “BBB-” with a stable outlook, citing the government’s commitment to financial reforms and its ability to maintain economic stability despite oil price fluctuations. 

“The report noted that the government’s reforms — including restructuring state-owned enterprises, diversifying income sources, and establishing the Oman Future Fund — have strengthened economic resilience and attracted foreign investment,” ONA reported. 

The agency expects Oman’s real GDP growth to rise from 1.7 percent in 2024 to over 2 percent annually during 2025–2028, supported by non-oil sector expansion. 

It forecasts Brent crude prices to climb from $60 per barrel in late 2025 to $65 in 2026–2028, with public debt falling from 36 percent of GDP in 2024 to 33 percent by 2028. Inflation is expected to average 1.5 percent, government net assets to remain at 8 percent, and non-oil growth to hold at 2.9 percent annually.  

S&P also noted a small fiscal deficit of 0.5 percent of GDP in 2025, moving to a balanced budget by 2026, with an average current account deficit of 1.9 percent of GDP. 

RIYADH: ������Ƶ’s foreign direct investment net inflows climbed 14.5 percent year on year to SR22.8 billion ($6.1 billion) in the second quarter, signaling a steady appetite for the Kingdom’s reform-driven economy.  

The figure, released by the General Authority for Statistics, compared with SR19.9 billion a year earlier. 

On a quarterly basis, net inflows dipped 3.5 percent from the SR23.7 billion recorded in the first three months of 2025, underscoring lingering global headwinds that continue to weigh on cross-border capital flows. 

The increase in net inflows reflects a broader effort by ������Ƶ to attract long-term foreign capital as part of its Vision 2030 strategy, which aims to diversify the economy beyond oil revenues.   

The Kingdom has been implementing regulatory reforms, opening up sectors such as tourism, renewable energy, and technology to international investors, and launching initiatives through the Ministry of Investment to position ������Ƶ as a regional hub for capital flows. 

In its release, GASTAT stated: “The volume of inflows amounted to about SR24.9 billion during the second quarter of 2025. It achieved a decrease of 11.5 percent compared to the second quarter of 2024, which was approximately SR28.2 billion.”  

It added: “While it recorded a decrease of 3.5 percent compared to the first quarter of 2025, which recorded SR26 billion.” 

Meanwhile, FDI outflows dropped sharply to SR2.1 billion, down 74.5 percent from SR8.2 billion a year earlier and 10.5 percent lower than SR2.3 billion in the previous quarter.   

While ������Ƶ continues to draw large-scale strategic investments, maintaining momentum will depend on investor confidence in regulatory stability and the pace of economic diversification projects.  

In the Gulf region, the UAE remains a leading competitor for FDI. In 2024, UAE inflows reached $45.6 billion, marking a 48 percent year-on-year increase and earning the country a top-10 global ranking in FDI recipients.   

Dubai, in particular, saw a 33 percent increase in FDI capital in 2024, attracting a record 1,117 greenfield projects.    

GASTAT defines foreign direct investment as cross-border transactions in which a foreign investor holds at least 10 percent of the voting power in a Saudi company.   

The net inflow figure represents the balance between total inflows and outflows, reflecting the extent of retained foreign investment in the Kingdom.  

������Ƶ has recently stepped up efforts to attract foreign capital through regulatory and market reforms.   

In June, the government issued 83 new industrial licenses and launched 58 factories worth SR 2.85 billion.   

Recent media reports also highlight that authorities are considering easing the 49-percent cap on foreign ownership in listed companies to boost equity market inflows, although no official announcements have been made.  

In parallel, global firms such as Macquarie Asset Management have signed preliminary agreements to establish a presence in the Kingdom, targeting infrastructure and energy sectors.