Muscat: Under the astute leadership of His Majesty Sultan Haitham Bin Tarik, the Sultanate of Oman has emerged as a beacon of resilience within the GCC. The nation’s dedication to fiscal discipline, economic diversification, and sound financial management has laid a solid foundation for sustained economic growth, exemplified by S&P Global’s upgrade of Oman’s credit rating to investment grade in September 2024. This achievement has strengthened investor confidence, lowered borrowing costs, and opened doors to international capital markets. Additionally, Fitch Ratings revised Oman’s outlook to ‘Positive’ in December 2024, citing successful fiscal reforms and prudent debt management.

Amid this steady economic progress, Oman’s Islamic banking sector has played a pivotal role in shaping the financial landscape. Integrating Sharia principles with the evolving needs of a modern economy, Islamic banking assets in the Sultanate surpassed OMR 8.2 billion by the end of September 2024, accounting for 18.7% of total banking assets, recording an increase of 16.4% compared to the same period last year. Additionally, the total financing granted has grown by 13.8%, reaching approximately OMR 6.7 billion. Furthermore, deposits have increased by 24%, totalling around OMR 6.5 billion by the end of October 2024. This growth reflects a rising trend towards Sharia-compliant solutions. The sector’s financing portfolios and deposits also recorded substantial growth, reflecting the rising preference for Sharia-compliant solutions. As Oman’s first full-fledged Islamic bank, Bank Nizwa has been instrumental in this sector’s evolution.

Commenting on the same, Mr. Khaled Al Kayed, Chief Executive Officer of Bank Nizwa, said, “In the five years since His Majesty Sultan Haitham bin Tariq, may God protect him, ascended to the throne, the Sultanate of Oman has entered a distinguished era of renaissance. This transformative phase has yielded significant advancements across various economic sectors, thereby fostering comprehensive and sustainable development throughout the nation. Under the enlightened leadership of His Majesty, Oman is not only enhancing its economic framework but also establishing a solid foundation for a prosperous and resilient future for all its citizens.”

“Amid this renaissance, the Islamic finance sector in the Sultanate of Oman has witnessed significant growth, establishing itself as a vital contributor to the country's economic development. At Bank Nizwa, we take pride in our leadership in this sector by aligning our initiatives with Oman’s ambitious goals. Through our Sharia-compliant solutions, we continue our unwavering efforts to enhance economic empowerment and make a positive and meaningful contribution to the social and economic fabric of the nation,” he added.

Bank Nizwa’s financial performance in 2024 reflects its unwavering commitment to excellence, innovation, and customer-centricity. For the third quarter ending September 30, the bank reported a net profit of OMR 12,431 million, representing a 6% increase from the previous year. Total assets rose to OMR 1.770 billion, a 13% growth, while the financing portfolio expanded by 14% to OMR 1.507 billion. Customer deposits surged by 20%, reaching OMR 1.440 billion—a testament to the bank’s strong market positioning and its ability to meet dynamic customer demands.

Complementing its financial achievements, Bank Nizwa has played a transformative role in fostering Islamic financial literacy across the Sultanate. Through workshops, seminars, and digital initiatives, the bank has raised awareness about the benefits of Islamic finance, empowering individuals and businesses to actively participate in Oman’s economic progress. This commitment to education is part of the bank's larger goal to make ethical financial solutions available to everyone.

A key driver of Bank Nizwa’s impact lies in its tailored financing solutions, which have facilitated milestones in critical sectors. By supporting both SMEs and large-scale ventures, the bank has directly contributed to projects that contribute to Oman’s economic diversification agenda and Oman Vision 2040 goals.

Innovation continues to be central to Bank Nizwa’s strategy, as the bank integrates advanced technologies to enhance service delivery while maintaining the highest standards of Sharia compliance. This forward-looking approach underscores Bank Nizwa’s dedication to blending tradition with modernity, driving greater efficiency and accessibility in financial services.

A pioneer in promoting sustainable finance in Oman, Bank Nizwa has also led the introduction of green financing solutions and championed several sustainability-linked initiatives. These efforts align with Oman’s environmental objectives and demonstrate the bank’s commitment to cultivating a balanced, future-ready economy that prioritizes both prosperity and environmental stewardship.

Bank Nizwa's continuous innovation has earned it widespread recognition both regionally and internationally, with the bank recently receiving several prestigious awards. Notably, it was honoured with the ‘Strongest Islamic Retail Bank in Oman 2024’ at the Islamic Retail Banking Awards (IRBA). This accolade underscores Bank Nizwa's commitment to delivering innovative banking solutions that adhere to Islamic Sharia principles, while also meeting the evolving needs of its customers and maintaining the highest standards of service excellence.

Bank Nizwa is at the forefront of advancing tools for the Islamic financial industry, extending its leadership beyond the banking sector to also transform endowment institutions. Its efforts are focused on strengthening the endowment sector's capabilities, aligning with the ambitious goals of Oman Vision 2040. The bank’s record is filled with numerous strategic initiatives in the field of endowment, with one of the most prominent being the launch of the Ishraq Endowment Investment Fund in 2024. This fund was established in partnership between The Ministry of Endowments and Religious Affairs, the Sultan Qaboos Higher Centre for Culture and Science and Bank Nizwa, in cooperation with Oman National Investments Development Company (TANMIA). This ambitious initiative is a significant addition to the endowment sector and marks a major advancement in the development of Islamic financial tools.

As Oman progresses toward becoming a knowledge-driven and innovation-led economy, Bank Nizwa stands as a symbol of purpose and progress. By spearheading advancements in Islamic finance, the bank reinforces its leadership in the sector while driving Oman’s holistic economic development through the promotion of ethical finance that fosters inclusivity, responsibility, and long-term prosperity.