A number of challenges have confronted Oman’s banking sector over recent years: a structural shake-up in the form of a new Islamic segment has increased competition levels; declining oil prices have constricted lending opportunities in some segments and compelled the regulator to encourage greater credit extension to others; and uncertainty...
Oman is taking steps to attract investors to the sultanate in a bid to diversify its economy away from a reliance on hydrocarbons. These include updating the legal framework for investment while continuing to stress the value of the country’s free zones and economic zones. Foreign direct investment (FDI) inflows to Oman grew to an estimated $822m in 2015, up from $739m in 2014...
It is nearly a decade since banking sector liquidity was last a significant concern in the GCC, but the precipitous decline of crude oil prices that began in the summer of 2014 has brought the issue to the fore once again. The major role played by the hydrocarbons industry in regional economies means that large alterations to spot prices and...
Having endured low oil prices for the entire year, countries across the resource-rich GCC saw their balance sheets constrained in 2015. In Oman’s case, lower revenues from the petroleum sector led to a nominal GDP contraction of 13.8% and the country’s largest deficit in more than a decade. Closing the fiscal gap is a top priority for the...
Parliament’s vote to raise corporate taxes in May 2016 is among the most significant financial developments in Oman in recent years. A low-tax environment is a key incentive to invest across the GCC, and the tension between drawing growth-promoting investment and maintaining state revenues has made such increases a contentious issue for...
A combination of factors has led to a rise in bond issuance from GCC members in 2016. Over the year, bonds and sukuk (Islamic bonds) issued in the GCC hit $66.5bn, more than doubling the $27.6bn total recorded in 2015, and rivalled only by the $60.9bn issued during 2009. A $17.5bn historic bond sale from Saudi Arabia accounted...
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