CONRAD PRABHU
MUSCAT: Main world scores company Moody’s has revised the outlook for Oman’s banking sector (Baa3 strong) to strong from certain, mentioning expectancies that non-oil GDP enlargement will stay round 3.5% in 2026, which is predicted to maintain mortgage enlargement.
Financial job is predicted to be pushed via powerful sentiment, enlargement in tourism, and a pipeline of initiatives in production, transportation, and renewable power as a part of Oman’s nationwide financial diversification plan.
“We expect loan quality to continue improving as economic growth supports borrowers’ repayment capacity, while Omani banks maintain good profitability and solid capital buffers. Overreliance on government deposits remains a key risk, but deposit growth is likely to align with government and private-sector loan demand,” Moody’s stated on Wednesday. “Omani banks hold sufficient liquid resources to cover exposure to less stable funds. Our stable outlook also reflects the government’s capacity to support banks in a crisis,” the company added.
Upper oil manufacturing is predicted to raise Oman’s general actual GDP enlargement to three.7% in 2026, up from an estimated 2.6% in 2025, whilst enlargement of the non-oil financial system will power credit score call for and toughen higher diversification of banks’ mortgage portfolios. Degree 2 loans are anticipated to say no, and Degree 3 loans stay widely strong as a percentage of general lending, supported via debtors’ bettering compensation capability. Top provisioning protection, at 129% of downside loans, supplies a buffer in opposition to possible losses.
Home credit score call for is projected to widely fit deposit enlargement, and liquidity buffers stay sturdy, enough to hide confidence-sensitive marketplace investment. Government’ willingness and capability to toughen banks are powerful, bolstered via a discount in Oman’s debt burden and progressed debt affordability, scores company famous.
