Oman’s Islamic banks report 13.2 per cent asset growth
The broad money supply in Oman expanded by 12 per cent year-on-year
Dubai: Islamic banks in Oman end April with total assets amounting to $19.5 billion (Dh71.6 billion), marking a 13.2 per cent increase from the previous year.
This accounts for 17.7 per cent of the country's total banking sector capital, underscoring the growing prominence of Islamic finance in Oman, according to official data.
During the same period, Shariah-compliant units extended financing totalling $16.3 billion (Dh59.8 bilion), reflecting a 12 per cent annual increase, as reported by the Central Bank of Oman.
Deposits in these banks and windows also saw significant growth, rising by 15.9 per cent annually to approximately $15 billion (Dh55 billion).
The broad money supply in Oman expanded by 12 per cent year-on-year, reaching about $61.3 billion (Dh224 billion) by end of April.
This growth was driven by a 7 per cent increase in narrow money supply and a 13.9 per cent rise in quasi-money, encompassing savings, time deposits, certificates of deposit, margin accounts, and foreign currency deposits within the banking sector.
Despite these increases, cash held by the public decreased by 7 per cent, while demand deposits rose by 11.2 per cent during the same period.
The weighted average interest rate on riyal deposits at conventional commercial banks climbed from 2.19 per cent in April 2023 to 2.58 per cent by April 2024. Similarly, the weighted average interest rate on riyal loans increased from 5.36 per cent to 5.60 per cent over the same period.