Banking - Oman

Oman

In 2024, the projected Net Interest Income in the Banking market in Oman is expected to reach US$2.65bn.
Traditional Banks are expected to dominate this market segment, with a projected market volume of US$2.65bn in 2024.
Looking ahead, the Net Interest Income is anticipated to exhibit an annual growth rate (CAGR 2024-2028) of 4.58%, resulting in a market volume of US$3.17bn by 2028.
It is worth noting that in a global comparison, in China is expected to generate the highest Net Interest Income, reaching US$5,659.0bn in 2024.
Oman's banking sector is experiencing a surge in digital banking services, as more customers embrace online and mobile banking platforms.

Key regions: United States, China, Japan, Brazil, United Kingdom

Definition:

The Banking market refers to the financial services sector providing financial products and services to individuals and businesses. Retail banking focuses on offering financial services to individual consumers, such as personal loans, savings and checking accounts, credit cards, and mortgages. Commercial banking, on the other hand, provides financial services to small and large businesses, including loans, lines of credit, and other financial products designed specifically for businesses.

Structure:

The market consists of two segments:
- The Traditional Banking market refers to the financial services sector that provides a range of financial products and services to individuals and businesses through store-based branches and other traditional channels.
- The Digital Banking market refers to the emerging market for digital-only banks that offer financial services through online and mobile platforms.

The market data comprises Net Interest Income, Bank Account Penetration rate, the value of Deposits, the number of depositors, the value of Loans, the number of borrowers, Credit Card Interest Income, the number of ATMs as well as the number of Bank Branches.

Additional information:

The Banking market is highly competitive and characterized by the presence of large global players as well as regional and local banks. Banks are continually seeking ways to improve their offerings and remain competitive by leveraging technology and offering innovative financial products and services. Additionally, changes in regulations and the growing trend toward digitalization are shaping the Retail & Commercial banking market, creating opportunities for new entrants, and forcing existing players to adapt.
Key players in this market are companies such as the Industrial and Commercial Bank of China Ltd., JPMorgan Chase & Co., and HSBC Holdings.

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Analyst Opinion

Over the past few years, the Banking market in Oman has been experiencing notable developments and trends that are shaping the industry landscape.

Customer preferences: Customers in Oman are increasingly leaning towards digital banking solutions, seeking convenience and efficiency in their financial transactions. Mobile banking and online services are gaining popularity, reflecting a global trend towards digitalization in the banking sector.

Trends in the market: One of the key trends in the Banking market in Oman is the growing focus on Islamic banking products and services. With a significant Muslim population in the country, Islamic banking has been witnessing steady growth, offering Sharia-compliant financial solutions to meet the needs of customers who prefer Islamic finance principles.

Local special circumstances: Oman's banking sector is heavily influenced by government policies and regulations, with the Central Bank of Oman playing a crucial role in overseeing the industry. The country's stable political environment and efforts to diversify the economy have created a conducive atmosphere for banking sector growth and innovation.

Underlying macroeconomic factors: The economic diversification efforts in Oman, driven by initiatives such as Vision 2040, are impacting the banking sector by creating new opportunities for investment and lending. As the country seeks to reduce its reliance on oil revenues, banks are playing a vital role in supporting economic growth through financing various projects across different sectors. Additionally, Oman's strategic location and ongoing infrastructure developments are attracting foreign investments, further fueling the expansion of the banking market in the country.

Methodology

Data coverage:

Data encompasses B2B and B2C enterprises. Figures are based on Net Interest Income, Bank Account Penetration rate, the value of Deposits, the number of depositors, the value of Loans, the number of borrowers, Credit Card Interest Income, the number of ATMs as well as the number of Bank Branches.

Modeling approach / Market size:

Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data provided by the IMF, World Bank and the annual reports of the top 1000 Banks by asset size. Next we use relevant key market indicators and data from country-specific associations such as GDP, deposit interest rates, lending interest rates or bank account penetration rates. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, the S-curve function and exponential trend smoothing are well suited to forecast financial services for digital as well as traditional products and services.

Additional Notes:

The market is updated twice per year in case market dynamics change.