Banks in Oman

Overview of Banks in Oman

As per Moody’s Investors Services, the approach of the banking system in Oman has turned from stable to negative. Moody’s Investors Services believe that the creditworthiness of the banking system in Oman should evolve and they expect that in the next 12 to 18 months, it will drastically improve.

Another reason for which the approach of Oman’s banking system seems negative is that the real GDP growth is expected to decline. The real GDP growth in the year 2015 was 3.3% and Moody expects the growth to decline in 2016 and in 2017.

Structure of Banks in Oman

There are a total of 19 banks in Oman. The banking system can be divided into three particular sectors.

  • The first sector is the local commercial sector which most of the banks in Oman fall under.
  • The second sector is the foreign bank sector where the branches of different foreign banks have opened offices in Oman.
  • The third and the last one is a specialized sector that only two specialized banks lie under.

There are a total of 17 local commercial banks and foreign banks. And the local banking sector is controlled by the Central Bank of Oman which also regulates interest rates and issues bonds and notes.

In the year 2015, the total combined assets of the banks of Oman amounted to the US $73 billion which happened to be the smallest in the Gulf Cooperation Council (GCC).

List of Top 10 Banks in Oman

  1. Bank Muscat
  2. Bank Dhofar
  3. National Bank of Oman
  4. Alizz Islamic Bank
  5. Oman Arab Bank
  6. Bank Nizwa
  7. Ahli Bank
  8. Bank Sohar
  9. Beirut Oman Bank
  10. HSBC Oman

Let’s look at each of these most prominent banks in detail –

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#1. Bank Muscat:

It was established in the year 1982. The head-quarter is situated in Muscat. Around 3024 people work here. In the year 2016, the total assets of this bank were US $28.1 billion. In the same year, the revenue and the net income of this bank were US $1.4 billion and US $459 million respectively. The focus of this bank is on retail banking, treasury, investment banking, asset management, and private banking.

#2. Bank Dhofar:

It was founded in the year 1992. The head-quarter of this bank is situated in Muscat. In the year 2016, the total assets of this bank were US $9.4 billion. In the same year, the net income of this bank was US $121 million. The focus of this bank is on retail banking, treasury, investment banking, and corporate banking. This bank management around 58 branches of Bank Dhofar, 10 branches of Maisarah Islamic Banking, and also 127 ATMs, 49 CDMs, and 5 FFMs.

#3. National Bank of Oman:

It was established in the year 1972. The head-quarter of this bank is situated in Muscat. This bank is the first local bank of the Sultanate. Around 1500 people work here. In the year 2016, the total assets of this bank were US $8.5 billion. In the same year, the net income of this bank was US $156 million. The focus of this bank is on retail banking, commercial banking, funding center, and wholesale banking.

#4. Alizz Islamic Bank:

It was founded in the year 2012, just 5 years ago. The head-quarter of this bank is located in Ruwi. In the year 2016, the total assets of this bank were US $992 million. In the same year, the operating income of this bank was US $23 million. This is an Islamic bank. And the focus of this bank is on retail banking, treasury, and corporate banking. It manages a network of seven branches in Oman.

#5. Oman Arab Bank:

It was established in the year 1972. The head-quarter is situated in Al-Ghubra, Muscat. Around 1100 people work here. In the year 2016, the total assetsThe Year 2016, The Total AssetsTotal Assets is the sum of a company's current and noncurrent assets. Total assets also equals to the sum of total liabilities and total shareholder funds. Total Assets = Liabilities + Shareholder Equityread more of this bank were US $5363 million. In the same year, the total income of this bank was US $64 million. The focus of this bank is on four segments – retail banking, support, Islamic banking, and unallocated functions.

#6. Bank Nizwa:

It was founded in the year 2012. The head-quarter of this bank is located in Muscat. Around 330 employees work here. In the year 2016, the total assetsThe Year 2016, The Total AssetsTotal Assets is the sum of a company's current and noncurrent assets. Total assets also equals to the sum of total liabilities and total shareholder funds. Total Assets = Liabilities + Shareholder Equityread more of this bank were US $5363 million. In the same year, the net income of this bank was US $64 million. The focus of this bank is on three segments – retail bankingRetail BankingRetail banking or personal banking refers to the financial services offered by the financial institutions exclusively to the individual clients. The consumer banking provides personal loan, savings account, debit cards, credit cards, locker, etc.read more, corporate banking, and treasury & investment banking. The bank has a network of 11 branches across the Sultanate of Oman.

#7. Ahli Bank:

It was founded in the year 1983, around 34 years ago. The head-quarter of this Top bank in Oman is located in Muscat. Around 549 employees work here. In the year 2016, the total assets of this bank were US $4931 million. In the same year, the net income of this bank was US $77 million. The bank works in two segments – first in retail banking and then in corporate banking, treasury, and investments. The bank has a network of 20 branches across the Sultanate of Oman.

#8. Bank Sohar:

It was established in the year 2007, around 10 years ago. Around 700 employees work here. The head-quarter of this bank is situated in Muscat. In the year 2016, the total assets of this bank were US $6545 million. In the same year, the total income of this bank was US $49 million. The focus of this bank is on retail banking, wholesale banking, government and project financeProject FinanceProject Finance is long-term debt finance offered for large infrastructure projects depending upon their projected cash flows. Moreover, an investor has to form a Special Purpose Vehicle (SPV) to acquire the same. read more syndication, treasury, Islamic banking, and investments. It manages around 27 commercial banking branches and 5 Islamic banking branches.

#9. Beirut Oman Bank:

This is one of the top banks in Oman. It was established in the year 2006, around 11 years ago. It is a branch of Bank of Beirut, Lebanon. It has employed around 150 people. It manages four branches – Muscat, Sohar, Ghubrah, and The Wave. In the year 2016, the total assets of this bank were US $129 billion. In the same year, the total income of this bank was US $491 million.

#10. HSBC Oman:

It is one of the oldest foreign banks. It was founded in the year 1948, around 69 years ago. The head-quarter of this bank is located in Seeb. Around 900 employees work here. In the year 2016, the total assets of this bank were US $5854 million. In the same year, the net income of this bank was US $44 million. The bank works in four segments – commercial banking, retail banking and wealth management, and global banking & markets.

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