Muscat: Oman’s Islamic finance business, which reached a price of about $36 billion on the finish of closing yr, is projected to balloon to $45 billion in 2026, underscoring the robust enlargement trajectory of Sharia-compliant finance within the Sultanate of Oman.
In step with Fitch Scores, the field is anticipated to witness double-digit enlargement this yr, strengthened through “favourable economic conditions, the continued importance of sukuk as a funding and policy tool, government initiatives and bottom-up public demand for Sharia-compliant products”.
“We estimate that the Omani Islamic finance industry reached about $36 billion at end-2025 and could approach $45 billion in 2026. Islamic banking assets represent about two-thirds of the total, followed by outstanding sukuk (about 32 per cent). The wider ecosystem remains nascent: takaful and Islamic asset management are small, together accounting for about 2.5 per cent”, the world rankings company stated.
Considerably, the marketplace proportion of Islamic banks and Islamic home windows of standard banks rose to about 20 according to cent of banking sector belongings at end-November 2025, up from 19.2 according to cent a yr previous. Overall Islamic banking belongings climbed to $24.1 billion, with enlargement exceeding that of standard banks. Islamic home windows operated through six standard banks managed over 60 according to cent of Islamic banking belongings in 2025, leveraging their dad or mum establishments’ established franchises and infrastructure.
Boding neatly for the expansion of the field are tasks and measures rolled out lately through the Central Financial institution of Oman (CBO). Notable amongst those is the release of an digital machine offering Sharia-compliant liquidity control equipment for Islamic banks. Previous, the CBO authorized a regulatory framework for Sharia-compliant finance and fiscal leasing firms.
In its commentary, alternatively, Fitch drew consideration to the “structural constraints” that wish to be addressed. Those come with a loss of Islamic treasury expenses and derivatives, an underdeveloped Rial Omani sukuk and bond marketplace; and the restricted presence of Islamic non-bank monetary establishments.
“Clear regulation and stronger oversight could create an enabling environment, raise investor and stakeholder confidence and attract capital”, the company identified.
Likewise, the Monetary Products and services Authority (FSA) established the Splendid Sharia Supervisory Authority in 2025, which has since reviewed the draft insurance coverage legislation. Property underneath control in Islamic finances stay modest, status at round $575 million as of January 2026, whilst the takaful sector accounted for an 18 according to cent proportion of gross direct premiums at end-2024.
Nonetheless, the industry atmosphere stays extensively upbeat for each Islamic and standard banks, underpinned through average oil costs, Fitch stated. Maintaining this momentum is the continued force to diversify the financial system consistent with Oman Imaginative and prescient 2040, unlocking additional alternatives for the banking sector.
Moreover, sukuk accounted for almost all of all US buck debt issuance in 2025 at about 60 according to cent, with bonds making up the remaining. As well as, various Omani sukuk had been upgraded following Oman’s December sovereign improve to ‘BBB-’.
In general, Fitch rated about $6.5 billion of remarkable Omani sukuk at end-2025, with 88 according to cent rated ‘BBB-’ and 12 according to cent rated ‘BB+’, all issuers on Strong Outlooks and no defaults.
“Demand for sukuk is supported by GCC Islamic and conventional banks. Oman Electricity Transmission Company issued Oman’s first green sukuk (BB+) in 2025. No ESG bond has been issued to date. Oman’s first Islamic commercial paper was also issued in 2025”, Fitch added.
