Muscat: The Central Bank of Oman (CBO) has introduced a series of innovative regulatory measures aimed at bolstering the Sultanate of Oman’s economic diversification initiatives in line with the National Development Strategy and national objectives.
These forward-thinking actions—including targeted lending strategies, capital relief initiatives, and the enhancement of liquidity and interest rate risk management systems—are set to redefine the banking sector's contribution to fostering sustainable economic development.
The initiatives are designed to channel capital into key non-oil sectors, providing banks with improved capital reserves to facilitate growth while effectively managing associated risks. This strategic framework could enable banks to potentially finance upwards of US$25 billion in the next five years, significantly contributing to non-oil GDP expansion and creating thousands of job opportunities for Omanis by 2030. The focus sectors include tourism, renewable energy, logistics, mining, agriculture, fisheries, education, healthcare, and technology.
Additionally, the CBO has empowered banks with sophisticated liquidity management tools, enhancing their ability to adapt to market fluctuations. By improving interest rate risk management practices, banks can refine their funding strategies, offer competitive rates, and support the long-term development of Oman’s financial landscape.
