Oman’s banking sector credit grows 6.5% to OMR 30.3 billion by end June 2023

Muscat: The total outstanding credit extended by Other Depository Corporations (ODCs), which consist of conventional and Islamic banks in Oman, grew by 6.5 percent to RO 30.3 billion at the end of June 2023, with credit to the private sector demonstrating an increase of 7.0 percent (Y-o-Y) to reach RO 25.4 billion.

Non-financial corporations received the highest share of the total private sector credit at approximately 45.9 percent at end-June 2023, followed by household sector at 44.4 percent. The share of financial corporations was 6.0 percent while other sectors received the remaining 3.7 percent of total private sector credit as at end- June 2023.

Total deposits held with ODCs registered a Y-o-Y significant growth of 4.4 percent to reach RO 27.5 billion at the end of June 2023. Total private sector deposits increased by 2.7 percent to RO 18.0 billion.

In terms of sector-wise composition of private sector deposits, the biggest contribution was from household deposits at 51.8 percent, followed by non-financial corporations at 29.6 percent, financial corporations at 15.6 percent and other sectors at 2.9 percent.

The nominal GDP, as per the preliminary data released by National Centre for Statistics and Information (NCSI), showed an increase of 7.4 percent at end of the first quarter of 2023 over the same period of 2022. The expansion was driven by increase in output of the hydrocarbon sector by 6.1 percent and non-hydrocarbon sector by 6.7 percent.

As for the real GDP, it demonstrates an increase of 4.7 percent during the same period under discussion.

Similiarly, this expansion was driven by 3.5 percent of hydrocarbon sector and 4.6 percent of non-hydrocarbon sector.

The Omani oil average price at the end of June 2023 at $81.4 per barrel was lower by 10.0 percent than that in June 2022. The average daily oil production at 1057.2 thousand barrels as of June 2023 increased by 1.0 percent. – ONA