Oman's financial system consists primarily of banks, finance and leasing companies, money exchange establishments, and other financial institutions. The banking sector operates under a dual banking system comprising both Islamic and conventional banks.
Islamic banking sector in Oman was formally introduced in 2012 through Royal Decree 69/2012, which amended the Banking Law 114/2000 by adding a new Title Six (Islamic Banking), Articles 121 to 126. The amendments, among others, required Islamic banks and windows to establish their own Shari'ah supervisory boards and Central Bank of Oman (CBO) to establish a central High Shari'ah Supervisory Authority (HSSA).
Following these changes, the CBO issued the Islamic Banking Regulatory Framework (IBRF) in December 2012, providing a comprehensive regulatory framework for Islamic banking operations. This move aligned with Oman's economic goals, which included promoting financial inclusion, diversification, and responsible financial practices.
Since its inception in 2012, the Islamic banking sector in the Sultanate of Oman has achieved remarkable growth and secured a significant share of the banking sector's assets. Islamic banking assets increased to approximately OMR 9.156 billion by the end of December 2025, representing around 20% of the total assets of the banking sector. Oman has also become one of the world's 16 largest Islamic finance markets, which collectively account for approximately 93% of global Islamic banking assets.