Oman may not be the first country that comes to mind when thinking about fintech in the Gulf, but that is changing. With a strong push for economic diversification under Vision 2040 and a growing appetite for digital financial services, the Sultanate is taking bold steps to modernise its financial sector.
Homegrown fintech firms are emerging, regulatory frameworks are evolving, and the demand for digital payments and alternative finance solutions is increasing.
Capital and financial hub: Muscat
Key economic development strategy: Oman Vision 2040
Economic, financial services and fintech overview:
Oman has a rich historical legacy, once boasting a powerful navy and expansive empire that reached the eastern shores of Africa. Despite starting later in the oil and gas game compared to its Gulf Cooperation Council (GCC) neighbours, Oman has successfully transformed its economy, aligning with the broader development trajectory of the Arabian Gulf region.
With a significant portion of its population under the age of 29 and a substantial expatriate community, Oman’s future lies in diversification and reducing reliance on oil. Although Oman may seem like a latecomer to fintech compared to its GCC counterparts, initiatives such as Vision 2040 and broader digital transformation efforts are driving economic development, including in the fintech sector, especially underscored by the pandemic’s emphasis on digitalisation.
Several homegrown fintech companies have emerged in Oman, reflecting this evolving landscape. Examples include Split X, offering a buy now pay later (BNPL) solution; TelyPay, providing a secure digital platform for individuals and businesses; and Wadiaa, focusing on crowdfunding and crowd-investing. Thawani made history in 2020 by becoming the first non-banking financial entity to receive a fintech licence from the CBO, marking a significant milestone in Oman’s fintech journey.
Key organisations:
■ Central Bank of Oman (CBO) – Country’s central bank
■ Capital Market Authority – Oman’s capital market authority
■ Oman Startup Hub (OSH) – A platform for startups, investors, advisors, and entrepreneurs
■ Oman Investment Authority – Country’s investment promotional agency
■ Sharakah – S closed-joint stock company incorporated by a Royal Decree in the Sultanate in 1998. Sharakah provides financial support and post-financial to SMEs in Oman
■ Oman Technology Fund – Aims to put Oman firmly on the map of knowledge leaders in the Middle East
■ Oman Banks Association (OBA) – A non-profile professional association for the country’s banking industry
Breakdown of sector:
Image Source: The Fintech Times
Timeline of key fintech highlights:
Oman has some key milestones pertaining to fintech as a whole:
2016 CBO launched the online payment getaway OmanNet, the central payment gateway in Oman
2018 Legal Framework of the National Payment Systems was issued by CBO
2019 Bank Muscat, the largest financial institution in Oman, announced a new $100million fintech investment programme
2020 CBO launched its Financial Regulatory Sandbox
2021 Financial Consumer Protection Regulatory Framework launched in December to protect those using FS 2022 Securities Law RD 46/2022 (the ‘Securities Law’) came into force and effect in June – Securities Law authorises the Capital Market Authority to regulate innovative financing, approval of fintech based apps and virtual investments
Image Source: The Fintech Times
Key statistics of the country:
Image Source: The Fintech Times
This is an excerpt from The Fintech Times: Middle East and Africa 2024 report.
Read The Fintech Times: Middle East and Africa 2024 report online
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