$16b Total Assets of Oman’s Islamic Banking Sector

The headquarters of the Central Bank of Oman in the capital, Muscat. (Getty Images)
The headquarters of the Central Bank of Oman in the capital, Muscat. (Getty Images)
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$16b Total Assets of Oman’s Islamic Banking Sector

The headquarters of the Central Bank of Oman in the capital, Muscat. (Getty Images)
The headquarters of the Central Bank of Oman in the capital, Muscat. (Getty Images)

The total assets of Oman’s Islamic banking sector, including Islamic banks and windows operating in the sultanate, jumped by 9.1 percent year-on-year to reach at RO6.4 billion ($16.6 billion) by late September 2022.

Oman’s Islamic banking assets now account for 16.2 percent of the country’s total banking system assets, according to latest data released by the Central Bank of Oman (CBO).

According to Oman’s official news agency ONA, the total balance of financing granted by the sector also increased by 11.8 percent to about RO5.3 billion ($13.7 billion).

The total deposits held with Islamic banks and windows also increased by 12.5 percent to RO4.8 billion ($12.5 billion) in September.

Meanwhile, Standard and Poor’s (S&P) upgraded the country’s credit rating from “BB-”to “BB”, with stable future outlook due to its improved fiscal performance.

The rating agency underlined in its credit rating report on Saturday the sultanate’s improved performance in the balance of payments, measures undertaken by the government within the Medium Term Fiscal Plan (MTFP) and a rise in oil prices as factors projecting positive outlook, coupled with the improvement in the net asset position in 2023.

It expected a decline in the public debt rate vis-à-vis the Gross Domestic Product (GDP) from 61% in 2021 to 44% in 2022.

The agency also projected a rise in Oman’s revenues over the next two years, along with sustained fiscal surplus in its budget for 2024, which will enhance levels of the country’s financial reserves and achieve a 5.8% financial surplus over the GDP in 2022.

It expected the sultanate’s current account to post a 5.2% surplus vis-à-vis the GDP, compared to deficits of 4.9% and 16.2% in 2021 and 2020, respectively.

It said that economic growth in Oman will be supplemented by a projected rise in hydrocarbon production, improved investment rates and government measures directed at supporting society and the private sector.

S&P further expected Oman’s GDP to pick up by about 4% in 2022 and 3% in 2023.

Meanwhile, non-oil activities are scheduled to be the prime motivator of growth over the coming years, according to S&P, which projects a private sector growth of 1.8% in 2022 and 2.5% over the period 2024-2025.

The international agency commended the government’s tangible efforts in consolidating the principle of transparency and disclosure of financial statements and GDP data through the publication of regular circulars.

S&P noted that Oman’s credit rating may persist in its upward trend, provided measures to enhance the State’s financial position are maintained by channeling more financial surplus into the public debt reduction course and augmenting fiscal flexibility to help address any unexpected crises or upheavals.



Saudi Arabia: Over 16% Growth in Mortgage Financing for Housing Support Beneficiaries in 2024

The Real Estate Development Fund’s pavilion at the Future of Real Estate Forum 2023 in Riyadh. (Real Estate Development Fund)
The Real Estate Development Fund’s pavilion at the Future of Real Estate Forum 2023 in Riyadh. (Real Estate Development Fund)
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Saudi Arabia: Over 16% Growth in Mortgage Financing for Housing Support Beneficiaries in 2024

The Real Estate Development Fund’s pavilion at the Future of Real Estate Forum 2023 in Riyadh. (Real Estate Development Fund)
The Real Estate Development Fund’s pavilion at the Future of Real Estate Forum 2023 in Riyadh. (Real Estate Development Fund)

The Saudi Real Estate Development Fund (REDF) announced on Monday a 16.4% increase in mortgage financing for beneficiaries of housing support programs in 2024, with total financing reaching SAR 62.9 billion ($16.7 billion). This marks a significant rise compared to SAR 54 billion ($14.4 billion) in 2023.

According to the Saudi Press Agency (SPA), December 2024 saw a notable 44% increase in the value of mortgage financing, reaching SAR 9.4 billion ($2.5 billion), compared to SAR 6.5 billion ($1.73 billion) in December 2023. This represents a growth of SAR 2.85 billion ($760 million). Additionally, the number of financing contracts surged by 52% during the same period.

Mansour bin Madi, CEO of the REDF, stated that the total financing in 2024 supported 89,000 financing contracts, compared to 74,000 in 2023—an increase of 15,000 contracts, or 20%.

Bin Madi highlighted that the REDF, in collaboration with the housing ecosystem and strategic partnerships with financing entities and real estate development sectors, is working to enhance homeownership opportunities by offering suitable housing products in the real estate market.

The self-construction product accounted for 14% of the total mortgage financing for beneficiaries of housing support programs. Meanwhile, under-construction housing units comprised 29%, and ready-to-move-in housing units made up 57%.

Bin Madi noted that December 2024 recorded the highest volume of mortgage financing for the year, with SAR 9.38 billion ($2.5 billion), financing approximately 12,340 contracts.

He reaffirmed the REDF’s commitment to strengthening its role in the mortgage financing market by providing diverse housing and financing solutions.

These efforts aim to meet beneficiaries’ preferences, facilitate easier homeownership for “Sakani” program beneficiaries, and align with Saudi Arabia’s Housing Program, he underlined. The program seeks to raise the homeownership rate among citizens to 70% by 2030.