Oman’s Money Supply Rises, Signaling Strong Liquidity and Bank Deposit Growth

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, which 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. Narrow money, consisting mainly of cash and demand deposits, rose 6.9 percent, while quasi-money, which includes longer-term deposits, increased 5.8 percent. Analysts said the trend reflects sustained liquidity conditions and stronger deposit growth across the banking system.

The expansion in monetary aggregates points to continued support for private-sector lending as Oman advances fiscal and economic reforms under its Vision 2040 strategy. During November, currency in circulation increased 1.9 percent, while demand deposits rose 14.1 percent, according to the Oman News Agency.

At conventional commercial banks, the weighted average deposit rate in Omani rials fell to 2.50 percent in November from 2.73 percent a year earlier. Lending rates also eased, with the weighted average dropping to 5.45 percent from 5.67 percent over the same period. The overnight interbank lending rate averaged 3.92 percent, 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 recent shifts in U.S. Federal Reserve policy.

Islamic banking in Oman also showed notable growth. Total assets of Islamic banks and windows reached about 9.3 billion rials by the end of November, accounting for 19.4 percent of the country’s total banking sector assets. “This marks a 12.3 percent increase compared with the same period in 2024,” the Oman News Agency reported, citing Central Bank data. Total financing by Islamic banks rose 10.3 percent to around 7.5 billion rials, while deposits increased 10.9 percent to approximately 7.3 billion rials.

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 noted steady growth in non-hydrocarbon sectors, low inflation, and broadly sound fiscal and external positions, emphasizing the effectiveness of Oman’s coordinated economic and financial policies.

The increase in money supply and bank deposits underscores a healthy banking environment and strong liquidity, offering a foundation for continued private-sector growth and investment in Oman’s economy.