RIYADH: Total outstanding credit extended by Oman’s banking sector, comprising both conventional and Islamic institutions, rose by 9 percent year-on-year to 33.6 billion Omani rials ($87.3 billion) at the end of April, according to new data.

According to the Central Bank of Oman, private sector credit rose by 7 percent to 27.8 billion rials. Non-financial corporations held the largest share at 46.6 percent, followed closely by the household sector at 44 percent.

Financial corporations held 5.6 percent, while other sectors represented the remaining 3.7 percent. 

Deposits across the banking system also showed robust growth. “Total deposits held with ODCs (other depository corporations) registered a YoY significant growth of 9.3 percent to reach 32.8 billion Omani rials at the end of April 2025,” the report stated. 

Of this, private sector deposits reached 21.5 billion rials, a 7.1 percent increase from the previous year. 

Household deposits contributed the largest share at 50.3 percent, followed by non-financial corporations at 30.4 percent, financial corporations at 17 percent, and other sectors at 2.3 percent. 

Credit extended by conventional banks grew by 7.9 percent to 21.3 billion rials, while their aggregate deposits increased by 6.1 percent to 25.7 billion rials. 

The banking sectors across the Gulf Cooperation Council countries have demonstrated credit growth, reflecting the region’s economic resilience and strategic investments. 

In Saudi Arabia, outstanding credit facilities reached SR2.96 trillion by the end of the fourth quarter of 2024, marking a 14.4 percent year-on-year increase. 

However, Qatar’s banking sector saw a slight contraction, with total credit facilities declining by 0.2 percent to 1.4 trillion Qatari riyals, primarily due to reduced lending to the public sector and consumption.

Oman’s private sector deposits with conventional banks rose 4.5 percent to 16.8 billion rials in April. 

Investments in government development bonds increased by 6.2 percent to 2 billion rials, whereas holdings in foreign securities declined by 3.7 percent to 2.1 billion rials. 

Islamic banks and windows also demonstrated strong performance. Their total assets increased by 18.1 percent to 8.9 billion rials, accounting for 19.6 percent of the total banking assets. 

Financing provided by these entities reached 7.2 billion rials, marking a 13.5 percent annual increase. Total deposits held by Islamic banks and windows increased by 22.6 percent to 7.1 billion rials. 

Broad money supply grew 7.5 percent to 25.4 billion rials, driven by a 12 percent rise in narrow money and a 6 percent increase in quasi-money components. 

Currency held by the public rose by 7.5 percent, while demand deposits expanded by 16.8 percent. 

Interest rate trends showed mixed movements. The weighted average interest rate on deposits with conventional banks rose to 2.594 percent in April, up from 2.580 percent a year earlier. 

Meanwhile, the weighted average lending rate fell to 5.555 percent from 5.604 percent. 

The overnight domestic interbank lending rate dropped to 4.392 percent, down from 5.212 percent the previous year, reflecting a decrease in the central bank’s repo rate to 5 percent in line with US monetary policy trends. 

Oman’s nominal gross domestic product increased by 1 percent year on year in the fourth quarter of 2024, driven by a 4.1 percent expansion in the non-hydrocarbon sector. 

Real GDP rose by 1.7 percent, supported by 3.9 percent growth in non-hydrocarbon activities. 

The average oil price stood at $75.9 per barrel at the end of April, 5.2 percent lower than a year earlier. 

Average daily oil production was 986,700 barrels, reflecting a 1 percent decline. Consumer price inflation remained subdued at 0.9 percent year on year as of April. 

RIYADH: Diriyah Co., backed by Saudi Arabia’s Public Investment Fund, has signed a memorandum of understanding with South Korea-based Kakao Mobility to enhance smart mobility infrastructure across the historic city of Diriyah.

Announced in a post on X, the agreement is designed to develop integrated transportation solutions to accommodate the 50 million annual visitors projected during the first phase of the Diriyah project.

The partnership will see Kakao Mobility contribute to the implementation of digital transport systems, seamless transit services, and smart parking infrastructure. The initiative aligns with Saudi Arabia’s broader push to diversify its economy and reduce its dependence on oil, as outlined in Vision 2030.

“Mobility to shape the future of urban mobility. This collaboration brings smart, sustainable solutions to life, enhancing the digital movement experience for over 50 million annual visits by 2030,” Diriyah Co. stated in its post on X.

The agreement marks the beginning of a phased rollout, starting with a smart parking pilot. The project also includes plans for a fully integrated prototype for smart parking and the deployment of advanced digital systems to streamline urban movement within Diriyah.

In addition to enhancing visitor mobility, the collaboration supports Saudi Arabia’s National Tourism Strategy, which aims to attract 150 million visitors annually by 2030.

The company emphasized that the digital platform under development will connect key destinations within Diriyah, contributing to sustainable urban mobility and reinforcing the Kingdom’s commitment to innovation and smart city solutions.

Once completed, the Diriyah development is expected to contribute SR18.6 billion ($4.96 billion) to the Kingdom’s gross domestic product and create approximately 178,000 jobs.

In April, Diriyah Co. awarded a contract worth SR5.1 billion for the construction of the Royal Diriyah Opera House — a major cultural project. The contract was granted to El-Seif Engineering Contracting, Midmac Contracting Co. W.L.L., and China State Construction Engineering Corp.