The Central Bank of Oman (CBO) has taken a bold step toward financial modernization by launching a new regulatory framework for digital banks. This initiative aligns with Oman Vision 2040 and officially took effect on June 1, 2025.
This move positions Oman as a forward-thinking player in the region’s digital economy and aims to promote financial inclusion, innovation, and enhanced customer experience.
Two License Categories for Digital Banks
The framework allows digital banks to operate as either:
- Locally incorporated joint-stock companies (SAOC or SAOG)
- Branches of foreign banks, subject to home country regulatory approval
Two distinct license categories have been introduced:
- Category 1: Requires a minimum capital of OMR 30 million and grants full operational capacity
- Category 2: Requires OMR 10 million but comes with limitations on deposits, lending, and proprietary trading. These are waived for the first two years
Key Operating Conditions
All digital banks must have a physical head or registered office in Oman. While customer support offices are allowed, traditional branches are not. This digital-first model reflects global fintech trends and customer preferences.
- No physical branches required for transactions
- Only digital customer interaction and support centers
Ownership is also regulated:
- ✅ Individuals and affiliates: Max 15% of voting shares
- ✅ Corporate entities: Max 25%
- ✅ Holding companies: Max 35%
- ✅ Cross-ownership across multiple banks: Limited to 15%
Strategic Business Plans Required
Applicants must present a comprehensive five-year business plan that includes:
- ✅ Planned digital services and target customer segments
- ✅ Profitability and financial inclusion goals
- ✅ IT architecture, cybersecurity, and disaster recovery plans
- ✅ Adoption of modern technologies like AI, open banking, blockchain, and cloud computing
In addition, banks must meet Omanisation targets, starting at 50% in Year 1 and rising to 90% by Year 5, to ensure strong local workforce participation.
Exit Plans and Compliance Obligations
Each applicant must submit a clear exit strategy outlining:
- Conditions for voluntary exit
- Customer protection mechanisms
- Risk triggers and exit funding plans
- Zero reliance on regulatory bailouts
Digital banks will operate under Banking Law 02/2025, National Payment Systems Law 08/2018, and AML Law 30/2016. They must also comply with:
- ✅ Digital onboarding rules
- ✅ Cybersecurity frameworks
- ✅ Fraud prevention protocols
- ✅ Consumer protection standards
The CBO reserves the right to reject incomplete or inaccurate applications, and non-compliance could lead to license revocation.
Looking Ahead
This forward-looking framework aims to redefine Oman’s banking landscape. It supports a digital-first ecosystem, attracts tech-driven financial players, and aims to make banking more accessible, efficient, and secure.