Oman money supply rises 6.4% to $68.6bn in November

26/01/2026 05:26 AST

Oman's money supply climbed 6.4 percent to 26.4 billion Omani rials ($68.6 billion) in November, signaling solid liquidity conditions and continued growth in bank deposits, official data showed.

The increase in broad money - a measure that includes cash in circulation and bank deposits - was driven by a 12.2 percent rise in cash and demand deposits, alongside a 4.1 percent increase in savings and time deposits, the Oman News Agency reported.

The latest reading follows steady gains earlier in 2025, with money supply up 6.1 percent in the three months through August. This was supported by a 6.9 percent rise in narrow money and a 5.8 percent increase in quasi-money. The trend reflects sustained liquidity conditions and stronger deposit growth across the banking system.

The expansion in monetary aggregates points to continued liquidity and policy support for private-sector lending, as Oman advances fiscal and economic reforms under its Vision 2040 strategy.

"During the same period, currency in circulation increased 1.9 percent, while demand deposits rose 14.1 percent," the ONA report stated.

At conventional commercial banks, the weighted average deposit rate in Omani rials declined to 2.50 percent in November from 2.73 percent a year earlier, while the weighted average lending rate eased to 5.45 percent from 5.67 percent over the same period.

The overnight interbank lending rate averaged 3.92 percent in November, down from 4.56 percent a year earlier, reflecting a decline in the weighted average repo rate to 4.5 percent from 5.30 percent, influenced by US Federal Reserve policy shifts.

Meanwhile, total assets of Islamic banks and windows reached about 9.3 billion Omani rials by the end of November, accounting for 19.4 percent of the Gulf state's total banking sector assets.

"This marks a 12.3 percent increase compared with the same period in 2024," ONA reported, citing data from the Central Bank of Oman.

Total financing by Islamic banking units rose 10.3 percent to around 7.5 billion rials, while deposits increased 10.9 percent to approximately 7.3 billion rials by the end of November.

The November data follows the International Monetary Fund's 2025 Article IV consultation report, released earlier this month, which highlighted the continued resilience of Oman's economy amid global uncertainty.

The IMF cited steady growth in non-hydrocarbon sectors, low inflation, and broadly sound fiscal and external positions, underscoring the effectiveness of Oman's coordinated economic and financial policies.