Banking and finances in Oman
Oman's banking sector is characterized by a mix of well-established local banks, international bank branches, and a growing Islamic banking sector. The sector is supported by strict regulatory oversight from the Central Bank of Oman and is constantly evolving to meet the needs of a diverse and increasingly digitally savvy population.
Omani banks are increasing investments in digital banking platforms, mobile banking apps, and online services to improve the customer experience and operational efficiency. The Islamic banking sector is also expanding, leading to increased demand for Sharia-compliant products and services, while the Central Bank of Oman continues to update regulations to improve financial stability, including measures related to capital adequacy, risk management, and anti-money laundering compliance.
Opening a bank account in Oman
Opening a bank account in Oman is very easy once you have your resident card and your passport in hand, as long as you select a not-too-busy branch. Later on, banking transactions can be carried out online or at any branch of the same bank. Initially, they can also request a tenancy agreement as proof of a local address. It is also generally required to obtain a salary certificate from your employer, especially if you want banking facilities such as a credit card or if your salary will be transferred to this account. It is better to initially open an account with the same bank as your employer.
When you go to open your account, it can also be good to take this opportunity to open an account for the people you are sponsoring, such as your wife or parents.
It will be possible once you have settled in Oman for a while to open accounts with different banks based on your needs. It is also very important to check with various banks and negotiate rates.
Important:
You should remember to close all your accounts before leaving Oman for good, as non-residents are not allowed to have bank accounts in Oman.
Types of bank accounts in Oman
In Oman, banks offer a variety of account types to cater to the needs of individuals, businesses, and expatriates.
Savings accounts
Savings accounts in Oman typically offer interest on deposits, though the rates vary from bank to bank. Some banks may require a minimum balance to avoid fees. These accounts provide easy access to funds through ATMs, online banking, and mobile apps.
Current accounts
Current accounts usually do not offer interest on balances. These accounts are designed for daily transactions, offering unlimited withdrawals and deposits. Current account holders are often provided with checkbooks and debit cards for easy payments. They are suitable for both businesses and individuals who need frequent access to their funds.
Fixed deposit accounts
Fixed deposit accounts offer higher interest rates compared to savings accounts, but the funds are locked in for a fixed period (ranging from a few months to several years). These accounts require a fixed-term commitment, during which withdrawals may not be allowed or may incur penalties. They are ideal for individuals looking to save money over a fixed period to earn higher returns.
Joint accounts
Joint accounts are available for two or more individuals, typically family members or business partners. All account holders have access to the funds and can make transactions. Some joint accounts allow customization of access levels for each holder (e.g., one person can make withdrawals while the other cannot).
Student accounts
Banks in Oman offer specialized accounts for students, typically with no or low minimum balance requirements. These accounts often come with reduced fees and charges, helping students manage their finances while studying. Most student accounts come with a debit card and access to online and mobile banking services.
Salary accounts
Salary accounts are designed for individuals receiving regular salary payments. Salaries can also be transferred to a regular savings or current account. Some salary accounts do not require a minimum balance, making them convenient for employees. Many banks offer free services like debit cards, checkbooks, and online banking for salary accounts.
Offshore accounts
Some banks in Oman offer offshore accounts for expatriates and businesses engaged in international transactions. These accounts may be held in foreign currencies like US dollars, euros, or British pounds. Offshore accounts may offer certain tax advantages, though these depend on the account holder's tax residency status.
Good to know:
NRI accounts are offered by some banks to cater to Indian expatriates in Oman. These accounts are designed to make it easier for NRIs to transfer money to and from India.
Payment methods in Oman
Cash is still a widely used payment method in Oman, particularly in smaller shops, traditional markets (souqs), and some taxis. Cash withdrawals can be made from ATMs, which are available throughout the country, especially in cities and towns. Popular international debit and credit cards can be used at most ATMs.
Debit and credit cards are commonly accepted in Oman, particularly at larger retail stores, hotels, restaurants, and supermarkets. International card like Visa, Mastercard, and American Express are accepted at most places.
Mobile payment apps
Mobile payment apps are growing in popularity in Oman, with both local and international apps available. Thawani is a local mobile wallet that allows users to make payments using QR codes and supports a wide range of services ,such as bill payments and peer-to-peer transfers. OmanPay is the national payment gateway used for various types of transactions, including government services and merchant payments. Platforms like Apple Pay, Google Pay, and Samsung Pay are available for contactless payments at NFC-enabled terminals. This type of payment is becoming more common in Oman, particularly in urban areas.
Bank transfers
Interbank transfers between bank accounts are a common way to make payments in Oman, particularly for larger transactions such as rent, tuition fees, or business-related payments. Most banks in Oman offer mobile banking apps that allow users to transfer funds easily between accounts or pay bills. Expatriates in Oman often use wire transfers or remittance services (e.g., Western Union, Xpress Money) to send money to their home countries.
Good to know:
Checks are typically used for large business transactions, rent payments, or loan repayments. They are less commonly used for day-to-day purchases. Post-dated checks are often used for rental agreements or installment payments.
Online payments
The Omani government offers an online portal for citizens and residents to pay for government services such as visa renewals, traffic fines, utility bills, and more. Sahab is tagovernment service platform that facilitates online payments for public services using bank cards or online banking.
Online shopping is gaining popularity in Oman, with e-commerce platforms such as Amazon, Talabat (for food delivery), and others accepting payments via credit/debit cards, mobile wallets, and sometimes cash on delivery (COD). Online payments in Oman are secured by payment gateways that comply with international security standards (like 3D Secure).
Paying utility bills
Utilities such as electricity, water, and telecom services can be paid through mobile banking apps, payment kiosks, or via online portals offered by service providers. Bill payment kiosks are found in malls and major supermarkets, allowing users to pay their utility bills or top up mobile phone credit.
Good to know:
While cards are accepted in many places, having some cash is useful, especially when visiting more remote areas or small businesses. International cards may incur fees for transactions in Oman. So it's a good idea to check with your bank regarding foreign transaction fees.
Choosing a bank in Oman
All newcomers to Oman should research banks before deciding on a provider, as they have different service fees, rates, and saving options. Oman's banking sector is well-developed and consists of various types of financial institutions, including commercial banks, Islamic banks, specialized banks, and branches of foreign banks.
Regardless of the type of bank, all front-end employees speak excellent English, and all their forms and applications are also in English.
Good to know:
Banks are mainly open in the morning from 8 a.m. to 2 p.m. from Sunday to Thursday, so it is better to go as early as possible to avoid long queues.
Most companies and individuals have an account with Bank Muscat, so even if it isn't your first choice or if you don't intend to have your salary transferred to this bank account, it is highly recommended to have one with them so it will be easier and cheaper to send money locally.
Good to know:
In most banks, it is possible to open an account in OMR, in Euro, or in USD.
Commercial banks
Bank Muscat
Bank Muscat, which is the largest bank in Oman by assets and market share, offers a wide range of services, including retail banking, corporate banking, investment banking, and asset management. It has branches, ATMs, and CDMs all over the country. Its mobile application is continuously upgraded, making banking transactions very easy for customers. Their branches in Muscat are generally very busy, and it is difficult to find a parking space, so it is recommended to use online banking channels or to call the call center to make sure going to the bank is essential.
Bank Dhofar
Bank Dhofar is a leading bank in Oman that offers retail, financial, and investment banking services. It is known for its better customer service and has branches all over Oman. The bank keeps enhancing its online channels to deliver the best services to its customers. It is considered the second-largest bank in terms of distribution points, with more than 100 branches.
National Bank of Oman
The National Bank of Oman (NBO) is one of the oldest banks in Oman and offers a variety of banking services. They operate actively in five main segments: retail, corporate, investment, Treasury, international, and Islamic banking. Their branches are strategically located in Oman.
Oman Arab Bank
Oman Arab Bank (OAB) was established in 1984 with the acquisition of all Arab Bank branches in the Sultanate. In 1992, OAB expanded its operations by acquiring all the retail branches of Oman European Bank, with which it merged in 1994. Since then, it has been committed to providing innovative retail banking, corporate and project finance, and a comprehensive suite of trade financial solutions. In 2020, they completed the acquisition of Ali's Islamic Bank (AIB) and integrated their Islamic banking window with AIB. As of July 6, 2020, the Oman Arab Bank became a public company, and the shares are listed on the Muscat Stock Exchange (MSX). Currently, Oman Arab Bank Group operates a national network of 49 branches and 147 ATMs.
Ahli Bank
Ahli Bank was established as a full-fledged entity in 2007, and the bank has since expanded in size and status to become a leading bank in the regional banking sector.
Sohar International
Sohar International Bank SAOG, earlier known as SOHAR SAOG Bank, is a leading Oman bank that merged with HSBC Oman in 2023. It offers financial advice to individual customers and businesses. The bank operates through six operating segments: wholesale banking, retail banking, government and project finance, investments, treasury, and Islamic banking.
Foreign banks operating in Oman
There are also a few foreign banks operating in Oman that mainly focus on corporate banking and trade finance.
First Abu Dhabi Bank
FAB is a leading bank in the Middle East and one of the safest in the world. They are from Abu Dhabi, which gives them a deep understanding of the dynamics of the Arab region and its connections to global markets. Since its launch, the branch has facilitated business growth between Oman and the world, offering customers customized products to meet their individual banking needs. FAB Oman currently operates a network of distribution channels and branches covering both residential and commercial areas.
Standard Chartered
Standard Chartered is a leading international banking group with a presence in the most dynamic markets around the world. With over 86,000 employees and a presence in 60 countries and regions across Europe and America (E&A), Asia, the Middle East, and Africa, their network serves clients in approximately 150 markets worldwide. The bank provides many products and services in business and institutional banking cases with the quality of world-class services.
Bank of Beirut
Bank of Beirut recently opened a new head office in the Sultanate of Oman, a corporate office, and a fully-fledged branch in Gubrah Muscat. The Bank of Beirut Oman mainly operates from its head office located in Al Ghubrah.
Bank of Baroda
Bank of Baroda, India, has had a long and eventful journey spanning more than a century. The parent bank operates internationally, with 94 overseas branches across 17 countries. This bank is mainly used by the Indian expatriate community to have a second account dedicated to transactions with India.
Islamic banks
On the other hand, the number of Islamic banks in Oman is increasing significantly, and some banks provide products and services that are compatible with Sharia law.
Good to know:
Most of the traditional local banks also offer Islamic banking services.
Bank Nizwa
Bank Nizwa was the first dedicated Islamic bank in Oman. It offers a range of Sharia-compliant products, including savings accounts, financial products, and investment services. The bank provides a comprehensive portfolio of commercial banking services in accordance with licenses issued by the Central Bank of Oman (CBO) and the Banking Law promulgated by Royal Decree No. 114/2000. The bank currently has 23 branches and plans to significantly expand its branch network over the next five years as part of its strategic plan to grow it.
Alizz bank
Established in September 2013, Alizz Islamic Bank is recognized as one of Oman's first dedicated Islamic banks, offering innovative financial solutions and banking products that comply with Islamic Sharia law.
Other financial institutions in Oman
Oman also has banks and financial institutions that specialize in certain sectors or financial services. The Oman Development Bank (ODB) is a public bank that finances development projects, especially in the agricultural, fishing, industrial, and tourism sectors. The Housing Bank of Oman specializes in housing finance. Al Omaniya Financial Services is a non-banking financial company offering leasing, hire purchase, and other financial services. Finally, the Central Bank of Oman (CBO) is the regulatory authority responsible for overseeing the banking sector. It regulates monetary policy, supervises financial institutions, and ensures the stability and soundness of the financial system.
Applying for a credit card in Oman
Obtaining a credit card in Oman is a straightforward process, but it requires meeting certain eligibility criteria and providing the necessary documentation. Each bank offers different types of credit cards with varying benefits, such as cashback, travel rewards, shopping discounts, and interest rates. Compare the card features, annual fees, and credit limits before deciding.
Applicants must usually be at least 21 years old, but some banks may offer supplementary cards for those above 18.
To be eligible for a credit card in Oman, you must have a steady job, with some banks requiring proof of employment for at least 6 months. Most banks require a minimum monthly income. The salary threshold usually ranges from OMR 250 to OMR 500, depending on the type of credit card.
For expatriates, a passport and valid Omani resident card are required along with a salary certificate and, in some cases, a Non-Objection Certificate (NOC) from your employer. Foreigners also need to provide proof of residence, such as a tenancy agreement or utility bill in their name. The approval process typically takes 3 to 7 business days, depending on the bank. You can easily activate your card through online banking or the bank's mobile app.
International money transfers in Oman
Most Omani banks allow customers to send money abroad through international wire transfers, using the SWIFT network. You can either visit your bank branch or use online/mobile banking services if available. The bank will inform you of any fees and the exchange rate for the transfer. International bank transfers typically take 1-5 business days, depending on the destination country and the bank.
Several international money transfer companies operate in Oman, allowing for fast and secure transfers, such as Western Union, MoneyGram, and Xpress Money. The recipient can collect the money as cash from an agent or have it deposited into their bank account.
Oman has many exchange houses that specialize in remittances and international money transfers. These are particularly popular among expatriates sending money home. The most popular exchange houses in Oman include Al Jadeed Exchange, Musandam Exchange, Lulu Exchange, and Global Money Exchange.
Important:
Be aware of transfer limits, especially with online and mobile platforms.
Useful links:
First Abu Dhabi Bank (FAB) - Oman | Personal, Corporate & Investment Banking
