Islamic Banking in Oman Anticipated to Continue its Positive Trajectory

The Sultanate of Oman’s (Oman) Islamic banking sector’s positive trajectory is expected to continue in the short-to-medium term, despite structural challenges, according to Fitch Ratings (Fitch).

Why it Matters?

Oman’s Islamic banking sector remains in its infancy and accordingly faces a number of persisting key challenges including gaps in the distribution channels, limited product offerings, a regulatory framework that is still developing, a small capital base, limited options for Sukuk investment and insufficient Islamic liquidity management products. The projected growth is anticipated on the back of rising awareness, strong retail demand for Islamic products, supportive regulations, and a push from the Islamic windows of convention...