The Banking Executive Issue - October 2025 Issue

Oman’s FinTech Market TO HIT $2.8BLN BY 2025 The Sultanate of Oman is on the cusp of a revolutionary change in its financial landscape, with the bur- geoning FinTech market projected to reach RO 1.1 billion by 2025. This staggering valuation represents an impressive 16% Compound Annual Growth Rate (CAGR), solidifying Oman’s commitment to becoming a regional hub for financial technology innovation. This comprehensive pic- ture of a sector in transition was pre- sented during the "Building a Future-Ready Bank" summit. This rapid expansion is no accident; it is the direct result of a proactive and strategic regulatory environment spearheaded by the Central Bank of Oman (CBO). The CBO has been central to accelerating the FinTech ecosystem by launching its Innova- tion Acceleration Programme, de- signed specifically to advance pilot projects and regulate technology testing through a dedicated sandbox. Most significantly, authorities have now unveiled a new digital-bank li- censing road map, introducing pro- gressive entry tiers linked to specific capital requirements and localisation commitments, a move designed to nurture a new, digitally-native bank- ing generation while protecting con- sumers. The impact of this regulatory clarity has been immediate and dramatic. The number of FinTech firms in Oman has surged from 26 to 42 in just one year, signalling robust entre- preneurial interest and greater confi- dence among investors. In 2025 alone, 16 FinTech licences were ap- proved, with a further 52 applica- tions currently under review by the CBO. To draw international invest- ment and expertise, the country has also actively promoted its Regulatory Sandbox, which functions as a low- risk testing ground specifically target- ing Foreign Direct Investment (FDI) from global FinTech players. Analysis of the 42 existing FinTechs reveals that the digital push is heavily concentrated in areas that modernise essential financial infrastructure and consumer access. The largest single segment is Payments, which ac- counts for 22% of all firms, reflecting the national priority to drive transac- tional ease and adoption of digital wallets. Payments are closely fol- lowed by a trio of equally significant segments, each claiming 19%: Per- sonal Finance, Digital Payments/PoS solutions, and Trading & Crowdfund- ing. This distribution highlights a concerted effort to deepen financial inclusion and democratise invest- ment, moving beyond simple bank- ing and into wealth management for the general populace. Furthermore, Oman’s digital ambi- tion is cemented by national policy frameworks. A national AI policy was rolled out in April 2025, strategically positioning the financial sector to leverage artificial intelligence in line with broader GCC ethics and Oman Vision 2040. The nation’s technolog- ical standing is already strong, hav- ing been ranked fourth globally among developing economies for ICT-related FDI. This commitment is underpinned by tangible financial support, including RO 25 million al- located via the Inma fund for Small and Medium Enterprises (SMEs) in 2025, which ensures that FinTech in- novation is integrated directly into the backbone of the private econ- omy. With digital transactions via OmanNet reaching 14.5 million in the first quarter of 2025, the data confirms that both regulators and consumers are embracing the new digital reality. the BANKING EXECUTIVE 72 ISSUE 202 OCTOBER 2025