Friday 12 / June / 2026
Muscat: Containing the twin deficits and levels of public debt remain top priorities of the macroeconomic policy in Oman to preserve the macro-financial stability of the economy over the medium term in accordance with Vision Oman 2040, a new report said.
The Central Bank of Oman (CBO) said in its eighth issue of the Financial Stability Report (FSR) that risks to the financial stability in the Sultanate remained on the expected trajectory during 2019 and the confidence of market participants in the Omani financial system stayed high.
The report also signified that the risks elevated in 2020 due to the economic and financial impact created by the COVID-19 pandemic.
“While the nominal gross domestic product (GDP) declined during 2019 due to lower oil prices, Oman witnessed an uptick in the real economic activity measured at basic prices along with low inflation,” the FSR further indicated.
The report also highlights the strength of the domestic banking sector, which allowed sufficient policy space to CBO to counter the impact of the pandemic.
Omani banks entered the pandemic from a position of strength underpinned by healthy capital buffers, solid asset quality, and strong liquidity, the report said.
This enabled CBO to relax several regulatory capital requirements for the banks bolstering their capacity to support the real economy during the pandemic.
While acknowledging the challenges posed by COVID-19 pandemic and the collapse in oil prices, the FSR asserts that risks to financial stability are well-contained, considering the renewed efforts to keep the economy on track and the strong financial sector supporting the real economy.
