Muscat: The Royal Decrees regarding the formation of a new board for the Central Bank of Oman (CBO) and the appointment of its governor are designed to strengthen the legal and regulatory framework to meet the needs of a modern financial system.
Over the past two decades, Oman’s banking sector has witnessed significant growth, prompting the need for comprehensive revisions to the legislative systems. These revisions are intended to align with the rapid changes in banking and financial services and leverage digital innovation and technology in the sector.
The new banking law, which includes 241 articles, serves as a reflection of these developments, setting clear regulations for both the CBO and the broader banking sector. The law is divided into two main sections: one governing the CBO’s operations as part of the state’s administrative apparatus, and the other regulating banking and financial activities, including non-banking services.
The law addresses several key areas, starting with definitions and general provisions, followed by mechanisms for CBO operations, such as monetary policy and cash management. It also regulates the issuance of the national currency by the CBO and covers topics like attracting local and foreign investments, Islamic banking, digital banking, and financial technology. The law also emphasizes the protection of customer rights in the financial services sector.
Additionally, the Royal Decree No. 3/2025 outlines the governance and regulatory framework for the CBO, with Article 21 providing the legal structure for its operations. This decree aims to achieve cash stability, ensure the safety of financial institutions, and support Oman’s broader vision for sustainable economic development.
The provisions also detail the CBO’s responsibilities, such as issuing national currency, preserving currency value, setting cash policies, and supervising licensed financial and banking activities. Prior to these changes, Royal Decree No. 47/2024 established the law to protect banking deposits, adding an extra layer of security within the financial sector.
