Omani Banks Receive Fitch Ratings Upgrade; A Positive Turn for the Banking Sector
Fitch Ratings has recently upgraded five major Omani banks’ long-term issuer default ratings (IDRs). Bank Muscat, BankDhofar, NBO, Ahlibank, and Sohar International Bank have improved their ratings, signalling growing confidence in Oman’s banking sector. This move follows Oman’s sovereign rating upgrade in September 2023, reflecting the improved likelihood of government support for these banks. The upgrades also indicate that the banks’ overall business conditions are on a positive trajectory, with Oman’s authorities displaying a strong commitment to supporting the nation’s banking sector despite certain limitations in financial flexibility.
Oman’s Economic Growth, Financial Wealth Projected to Reach $141 Billion by 2027
Oman’s financial wealth is poised for robust growth, with a projected CAGR of 4.7%, reaching $141 billion by 2027, according to a report by Boston Consulting Group. This growth signifies Oman’s economic resilience and strength. Ultra high-net-worth individuals play a significant role in contributing to the nation’s wealth, with their share expected to rise. Real assets in Oman, though experiencing a recent decline, are anticipated to rebound, while liabilities are set to grow, reflecting Oman’s calculated risk-taking. Wealth managers are advised to embrace technology and strategic cost management for sustainable profitability.
