Strong Growth in Oman’s Domestic Liquidity, Private Deposits Rise, and Foreign Reserves Strengthen

Oman’s domestic liquidity rose by 8.1% to OMR 24.87 billion (~USD 64.6 billion) by the end of December 2024, according to preliminary data from the National Centre for Statistics and Information (NCSI). This increase, amounting to OMR 1.8 billion (~USD 4.7 billion) over the previous year, reflects rising monetary activity and growing trust in the financial system.

Private Sector Deposits and Lending on the Rise

• Deposits by the private sector in both commercial banks and Islamic windows climbed by 8.5%, reaching OMR 20.83 billion (~USD 54.2 billion).
• Total loans and financing increased by 6.7% to OMR 32.5 billion (~USD 84.5 billion).

The average interest rate on total loans reached 5.644%, reflecting a 2.4% increase, indicating a tighter lending environment.

Rise in Foreign Assets and Omani Rial Value

• The Central Bank of Oman’s foreign assets rose by 5% to OMR 7.07 billion (~USD 18.4 billion).
• The effective exchange rate index of the Omani Rial strengthened by 4.1%, reaching 119 points, reflecting the currency’s improved purchasing power.

Other Highlights

• Narrow money supply (cash outside banks and demand deposits) surged by 18.6% to OMR 7.09 billion (~USD 18.4 billion).
• Total currency in circulation declined by 10.1% to OMR 1.43 billion (~USD 3.7 billion).