Oman’s Islamic Banking Sector Continues to Grow Supported by Increasing Awareness and High Retail Demand

The Islamic banking sector in the Sultanate of Oman (Oman) continues to expand rapidly, owing to rising consumer knowledge of Shariah-compliant products, high retail demand, and supporting laws. According to the Central Bank of Oman, on the 15th of May 2022, the country's Islamic banks and windows had total assets of OMR 6 billion (USD 15.6 billion) in the first quarter of 2022 (1Q 2022), up 10.7% year-on-year (YoY).

Why it Matters?

There are two fully-fledged Islamic banks in Oman, Bank Nizwa and Alizz Islamic Bank, as well as five Islamic banking windows at conventional banks, all of which were founded in 2012 and 2013. Following a slowdown in 2020 due to the COVID-19 pandemic and the drop in oil prices, Islamic banking witnessed an acceleration in asset...