$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.



$266 Mln Deal Boosts Liquidity in Saudi Housing Market

One of the projects under the Sakani program in Saudi Arabia (Asharq Al-Awsat)
One of the projects under the Sakani program in Saudi Arabia (Asharq Al-Awsat)
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$266 Mln Deal Boosts Liquidity in Saudi Housing Market

One of the projects under the Sakani program in Saudi Arabia (Asharq Al-Awsat)
One of the projects under the Sakani program in Saudi Arabia (Asharq Al-Awsat)

The Saudi Real Estate Refinance Company (SRC), owned by the Public Investment Fund, has signed a SAR 1 billion ($266.7 million) agreement with Bidaya Finance to buy a mortgage portfolio.
The deal is the largest of its kind, aimed at injecting liquidity into Saudi Arabia’s housing market.
The agreement, signed on Sunday, was attended by Housing Minister Majed Al-Hogail, who also chairs SRC, and Abdulaziz Al-Omair, Chairman of Bidaya Finance.
This move supports SRC’s efforts to grow the mortgage market and expand refinancing options, aligning with Vision 2030’s goal of increasing homeownership among Saudi citizens.
SRC CEO Majeed Al Abduljabbar said the deal will boost liquidity and stabilize the housing finance market, helping more Saudis own homes. He added that it builds on SRC’s plan to partner with key lenders and develop a strong secondary mortgage market.
“This agreement is a pivotal step toward achieving the strategic objectives of the Housing Program by increasing homeownership among citizens,” Abduljabbar noted.
“It also aligns with our strategy to forge strategic partnerships with leading financing institutions, fostering the development of an active secondary market for residential mortgages,” he added.
Bidaya Finance CEO Mahmoud Dahduli called the agreement a step forward in offering innovative financing solutions, enabling more citizens to achieve their housing goals and contributing to Vision 2030’s housing targets.
“This strategic collaboration with SRC reinforces our shared role in offering reliable, innovative financing solutions that empower citizens to realize their housing aspirations, aligning with the Housing Program’s goal of increasing homeownership,” Dahduli said.
Established in 2017 by the Public Investment Fund, SRC aims to make home financing more accessible by providing liquidity to lenders and supporting Saudi Arabia’s housing sector under the national transformation plan, Vision 2030.