Muscat: The Central Bank of Oman (CBO) has unveiled its 2025 Financial Stability Report (FSR), offering a comprehensive and forward-looking assessment of Oman’s financial system. The report reflects the strength of Oman’s financial foundations, the confidence of its institutions, and the nation’s capacity to thrive amid evolving domestic and global dynamics, reaffirming Oman’s steady path toward long-term stability, growth, and prosperity.
According to Oman News Agency, the report notes that despite the ongoing global uncertainty, ‘financial stability in Oman remains broadly intact.’ Oman’s banking sector continued to demonstrate resilience, supported by strong capital buffers, sound asset quality, and ample liquidity. The solvency stress tests confirmed its capacity to absorb severe macro-financial shocks. The sector remained profitable, and on the liquidity front, all banks reported Liquidity Coverage Ratios above the minimum regulatory requirement, with recent stress tests reaffirming their readiness to absorb potential liquidity pressures.
Besides, while the banking sector has maintained profitability, non-bank financial institutions have also been expanding gradually, reflecting their increasing role in providing financial services. The report underscores the continued strength of the Omani financial system, as reflected in the Composite Financial Stability Indicator (CFSI), which showed positive trends, primarily supported by favorable factors such as higher oil prices, enhanced debt sustainability, and improved systemic risk indicators.
The report also highlights increased external confidence in Oman’s economic and financial resilience, demonstrated by recent upgrades of its sovereign credit ratings to investment-grade status by Moody’s and S and P. This progress is largely attributed to Oman’s prudent fiscal and economic management and stronger debt metrics. The FSR further presents findings from two key tools of macro-financial surveillance: The Systemic Risk Survey, which indicated sustained confidence in the Omani financial system, and the Credit Conditions Survey, which reflected broadly stable lending conditions, despite slight easing in credit availability. Together, these indicators reinforce positive sentiment and support continued financial sector stability.
As part of its broader focus to strengthen financial awareness, the CBO conducted a national survey to assess public attitudes and behaviors toward financial matters. The findings indicate rising levels of financial literacy and a more cautious approach to money management among households. Alongside these efforts, several key regulatory and legal reforms took place, including the issuance of CBO statutes, enactment of the new banking law to modernize the legal framework in line with the evolving financial sector, and the revised deposit protection law, ensuring a more responsive and resilient financial system aligned with international standards.
Looking ahead, the CBO remains committed to strengthening the resilience of Oman’s financial system through proactive surveillance, sound regulatory reforms, and sustainable finance initiatives. By closely monitoring emerging risks and adapting its policy tools accordingly, the CBO aims to preserve financial stability and support sustainable economic growth in Oman. The 2025 Financial Stability Report serves as a key reference of the macro-financial surveillance system for stakeholders, offering insights into potential vulnerabilities and the strategic responses since its first publication in 2013.