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JEDDAH: Oman’s banking sector showed robust growth by May, with total credit rising 8 percent to 33.6 billion Omani rials ($87.36 billion) and deposits increasing 7.9 percent, reflecting strong private sector activity and confidence.

Data from the Central Bank of Oman revealed that credit extended to the private sector grew by 6.8 percent year on year to reach 27.9 billion rials by the end of May. Total deposits stood at 32.3 billion rials during the same period.

Oman’s banking sector remains resilient, supported by private sector engagement, expanding credit, and steady deposit growth. Regulatory reforms and growing confidence in financial institutions also continue to strengthen both conventional and Islamic banking.

Non-financial corporations held the largest share of private sector credit at 46.4 percent, closely followed by households at 44.2 percent. Private sector deposits increased by 7.4 percent to 21.9 billion rials, with households accounting for nearly half of the total.

The banking sectors of the Gulf Cooperation Council showed overall credit growth, highlighting regional economic resilience. ÂÜÀòÊÓƵ’s credit facilities rose 14.4 percent to SR2.96 trillion by the fourth quarter of 2024, while Qatar experienced a slight 0.2 percent decline to 1.4 trillion riyals, mainly due to reduced public sector and consumer lending.

The combined balance sheet of conventional banks showed a 6.9 percent year-over-year increase in total outstanding credit. Credit to the private sector grew by 5.2 percent to 21.4 billion rials, while investments in securities fell 1.7 percent to 5.5 billion rials.

Government bond investments increased 2.2 percent to 2 billion rials, whereas foreign securities declined by 11.9 percent, according to the CBO, which added that deposits with conventional banks rose 5.7 percent to 25.2 billion rials, with private sector deposits growing 5.8 percent to 17.1 billion rials.

Islamic banking assets surged 17.5 percent to 9 billion rials, with financing increasing 12.3 percent and deposits rising 16.6 percent to 7 billion rials.

According to the CBO, broad money supply rose 6.9 percent to 25.4 billion rials, driven by a 13.9 percent increase in narrow money and a 4.4 percent rise in quasi-money. Within M1, currency with the public fell 5.1 percent, while demand deposits grew 18.6 percent.

Gas production

Oman’s total natural gas production and imports rose marginally by 0.5 percent year-on-year to 17.95 billion cubic meters by April, driven mainly by a 10.8 percent increase in associated gas production.

Meanwhile, non-associated and imported gas volumes declined by 2.1 percent, according to the state’s National Center for Statistics and Information.

Industrial projects remained the largest consumers, using 9.32 billion cubic meters, followed by power generation stations, which used 4.33 billion cubic meters. Oil fields consumed 4.21 billion cubic meters, with industrial zones using 88 million cubic meters.