Report: Was Oman's banking sector resilient enough to support economic stability during the pandemic?

Oman’s economy was heavily reliant on hydrocarbons when the pandemic began, creating fiscal pressures as demand and prices fell. However, the country was able to rely on a well-capitalised and regulated financial services system to maintain macroeconomic stability, and years of sustained investment in the public health system helped it cope with the sudden demands of a medical crisis. Looking ahead, Oman’s policymakers are considering bold measures to address twin deficits, alongside efforts to accelerate economic diversification to strengthen resilience to future shocks and disperse risk across a broad range of productive sectors. The prospects for Islamic banking look bright as favourable demographics, regulatory support and a growing appetite for alternative financing should help sharia-compliant financial institutions claim greater market share in the recovery phase.
 

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