JEDDAH: The Central Bank of Oman has approved a new Shariah-compliant regulatory framework for finance and financial leasing companies, reinforcing the country’ efforts to expand Islamic banking and attract fresh investment.
The approval was granted during the CBO’s sixth board meeting of the year, held on Dec. 29 at its headquarters in Muscat’s Commercial District, according to an official statement.
The move comes as Oman’s Islamic finance sector continues to gain momentum. In September, Fitch Ratings forecast that the country’s Islamic finance industry would surpass $40 billion between the second half of 2025 and 2026, supported by regulatory reforms and growing demand for Shariah-compliant financial products.
Fitch identified the newly approved framework as a key growth driver, noting that clearer regulations and stronger oversight are expected to enhance investor confidence and attract additional capital to the sector.
The broader Gulf region is also witnessing robust growth in Islamic finance. In the UAE, the industry’s assets exceeded $285 billion by the end of the first quarter of 2025, fueled by strong demand and an expanding sukuk market, Fitch said.
