MUSCAT : Oman’s economy grew 4.7% in nominal terms in the first quarter of 2025 from a year earlier, driven by a 6.8% expansion in non-hydrocarbon industries, according to preliminary data from the National Centre for Statistics and Information. Hydrocarbon output rose 4.1%.
Real GDP increased 2.5%, with non-oil sectors advancing 4.4%. Average Omani crude prices stood at $72.5 a barrel at the end of July, down 12.1% year-on-year, while average daily oil production eased 0.4% to 991,100 barrels. Inflation, measured by the consumer price index, rose 0.8% in July.
Banking sector
Credit by other depository corporations, which include conventional and Islamic banks, climbed 8.9% to 34.1 billion rials ($88.6 billion) in July. Private sector lending grew 6.4% to 27.9 billion rials, with non-financial corporations accounting for 46.6% and households for 44.8%.
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Deposits rose 6.1% to 32.9 billion rials, led by a 5.8% increase in private deposits to 21.9 billion rials. Household deposits made up 51% of the total.
Conventional banks
Outstanding credit at conventional banks rose 8% to 21.3 billion rials. Investment portfolios shrank 3.4% to 5.8 billion rials, with government bond holdings rising 6.3% while foreign securities dropped 15.7%. Aggregate deposits grew 3.6% to 25.7 billion rials, with government deposits up 7.1% and public enterprise deposits down 11%.
Islamic finance
Assets at Islamic banks and windows jumped 16.8% to 9.1 billion rials, accounting for nearly a fifth of the banking system. Islamic financing rose 12.5% to 7.2 billion rials, while deposits increased 16.1% to 7.2 billion rials.
Monetary indicators
Broad money supply (M2) expanded 5.2% to 25.5 billion rials, supported by a 10.2% rise in narrow money (M1). Currency with the public fell 4.3%, while demand deposits surged 13.4%.
The weighted average deposit rate at conventional banks slipped to 2.576% from 2.705% a year earlier. Lending rates eased to 5.51% from 5.59%. The overnight interbank rate fell to 4.148% from 5.317%, reflecting a decline in the repo rate to 5% from 6%, in line with the U.S. Federal Reserve.
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