Oman’s Economy Strengthens with Rising Loans and Stable Growth Forecasts

Prime Highlights:

Oman’s private sector lending rose to 21.3 billion rials ($55.4 billion) by July 2025, showing steady growth in business financing.
S&P affirmed Oman’s economic stability, forecasting GDP growth above 2 percent annually, supported by non-oil sectors and ongoing reforms.

Key Facts:

Legal transaction fees jumped 81.7 percent to 79 million rials, while mortgage contracts rose 6.4 percent to 1.285 billion rials.
Public debt is expected to fall from 36 percent of GDP in 2024 to 33 percent by 2028, with the fiscal deficit dropping to 0.5 percent in 2025 and a balanced budget by 2026.

Key Background:

Oman’s private sector lending continued to rise, reaching 21.3 billion rials ($55.4 billion) by the end of July 2025, up 4.6 percent from last year, the Central Bank of Oman reported. The traditional commercial banks also saw an increase in total credit by 8 per cent, indicating a consistent growth in business lending.

The Central Banks‘ 2025 financial stability report indicated that banks have robust capital and quality assets and can deal with financial pressures. Private sector deposits grew 4.1 percent to 17 billion rials, making up 66.3 percent of total deposits in conventional banks. Total deposits rose 3.6 percent to 25.7 billion rials, with government deposits climbing 7.1 percent to 5.8 billion rials.

In the real estate sector, Oman recorded a total transaction value of 2.124 billion rials by the end of August, up 9.9 percent compared to the same period last year. Legal transaction fees jumped 81.7 percent to 79 million rials, while the value of sale contracts grew 16.1 percent to 831 million rials, even though the number of contracts slightly fell by 1 percent to 43,971. Mortgage contracts also went up 6.4 percent to 1.285 billion rials, showing continued demand for property financing. Property ownership transfers also increased 2.6 percent to 153,764, although transfers to GCC nationals declined 12.8 percent.

Global rating agency S&P reaffirmed Oman’s long-term foreign and local currency sovereign credit rating at “BBB-” with a stable outlook. The agency praised the government’s reforms, economic diversification, and the Oman Future Fund for boosting the economy and attracting investment.

S&P expects Oman’s GDP to grow over 2 percent per year from 2025 to 2028, led by non-oil sectors. It is expected that oil prices will increase to $65 in 2026 to 2028, starting at a high of $60 per barrel in late 2025. It is anticipated that in the year 2024, the public debt will be 36 percent of the GDP, which will reduce to 33 percent in the year 2028, whereas the inflation will remain at 1.5 percent. The fiscal deficit is expected to drop to 0.5 percent of GDP in 2025, with a balanced budget by 2026.