Fuelled by oil prices and rising gas revenues, Muscat is waking up after a difficult period when scandals and bad management decisions affected the performance of several major banks. Consolidation driven by the Central Bank of Oman (CBO) is no longer the dominant theme in Oman’s banking sector.
Healthy bank profits, the prospect of more foreign competition as Oman awaits ratification of its free trade agreement with the US, an ambitious economic diversification drive and a new real estate market are among factors forcing change through the industry. In this traditionally quiet banking market, there is talk of increased competition while local banks are extending their horizons to take on big-ticket financings outside the region.