MUSCAT: Oman’s commercial banks have achieved a robust 8.39 per cent growth in total credit at OMR18.32 billion for 2015, from OMR16.90 billion for the previous year, according to the latest monthly statistics released by Central Bank of Oman. The incremental credit growth in 2015 was OMR1,418 million, which was a reasonable growth considering the prevailing low oil prices.
“The credit growth is relatively strong, despite the (difficult) economic environment,” said KanagaSundar, head of research at Gulf Baader Capital Markets.
The pipeline of credit was strong, but this growth is expected to continue at a slower pace this year. There will be an anticipated demand for credit from both government and quasi-government entities towards project funding. There was a robust retail demand for credit last year, which may slowdown this year.
The demand for credit from the corporate sector is mostly for funding projects, which are either state-owned entities like Oman Oil Refineries and Petroleum Industries Company (Orpic) or semi-government-related entities.
Orpic has already signed major deals for funding its $6.4 billion-Liwa Plastics Industries Complex with international, regional and local banks. Major real estate projects, including hotels and resorts, are also driving demand for credit.