Oman Digital Banking 2025: Licensing, Shareholding & Market Entry Guide

28 May 2025

Gandhi AlMinaj

Oman's new Banking Law, enacted in early 2025 under Sultani Decree No. 2/2025, officially recognizes and regulates digital banks. The Central Bank of Oman (CBO) is responsible for regulating these digital banks, as per Article 9 of the new law. This indicates a significant shift in the regulatory landscape, adapting to the rise of digital banking within the country's financial sector. The new law introduces substantial changes to the framework governing banking and financial institutions. This regulatory update provides a structured environment for digital banks to operate.

Muscat: Oman’s Central Bank (CBO) has released Decision 25 of 2025, the kingdom’s first comprehensive regulatory framework for “digital banks.” Under the new Banking Law, digital banks—licensed institutions that operate solely via online and mobile channels—must comply with bespoke rules on capital, ownership, governance, Omanisation and consumer safeguards being effective on 1 June 2025. Below is a concise roadmap to the regime’s core requirements.

1.     License Categories & Capital Requirements

Both categories must meet phased Omanisation targets (50% staff Year 1 up to 90% Year 5).

2.     Shareholding Caps & Cross-Bank Limits

3.     Licensing Prerequisites

Applicants must demonstrate

·        Industry & Tech Expertise: Proven fintech/banking track record and IT capabilities

·        Fit & Proper Owners/Board/Management: CBO vetting on integrity and competence

·        Corporate Documentation: Draft Articles, UBO details, sanctions-screening certificates

·        Solid Business Plan: Including financial-inclusion strategy, IT architecture, capital-adequacy assessment, profitability path, and customer-support framework

·        Foreign-Branch Approvals: Home-country regulator sign-off and no-objection for CBO’s joint supervision

4. Application Process & Timeline

·        Pre-Submission Consultation: Engage CBO early to validate your business concept and capital plan

·        Formal Filing: Submit full application with required documents

·        CBO Decision: Within 90 days of “complete” application—silence equals approval

·        In-Principle Approval Validity: 12 months to satisfy incorporation and licence-issuance steps (extensions possible)

5. Mandatory Exit Plan

All applicants must include a 5-year exit strategy covering:

·        Management triggers for wind-down

·        Customer-fund safeguarding and service-continuity steps

·        Liquidity sources for an orderly exit (excluding CBO emergency support)

·        Identified impediments and mitigation measures

6. Who Should Act Now?

·        Global and GCC Digital Banks: Seeking GCC market entry without physical-branch costs

·        Fintech Investors: Targeting Oman’s underbanked segments via mobile-first services

·        Existing Omani Banks: Exploring digital-only subsidiaries or spin-outs

Conclusion

Oman’s new digital-banking framework is more than a regulatory milestone—it’s a catalyst for economic transformation. By lowering barriers to entry, promoting fintech innovation and expanding digital financial services, the regime will drive greater competition, deepen financial inclusion and unlock capital flows into underserved segments of the economy. As digital banks harness cutting-edge technology to serve businesses and consumers more efficiently, they will spur job creation, bolster MSME growth and strengthen Oman’s position as a regional fintech hub.

In embracing a digitally driven banking sector, Oman is laying the foundation for a more resilient, diversified and future-ready economy—one in which innovation thrives, financial services are universally accessible, and sustainable growth becomes the norm.

ALKETBI TOUCH

Oman’s digital-banking regime offers a fast track to fully licensed, tech-driven banking operations—if you meet its stringent capital, ownership and governance tests. Our Banking & Finance team may assist you with: (a) Pre-application strategy and CBO consultations, (b) Drafting and vetting business plans, governance manuals and exit plans, (c) Preparing fit-and-proper submissions and Omanisation roadmaps, (d) Liaising with CBO on application reviews, queries and licence issuance.

Contact us today to map your digital-bank entry into Oman’s burgeoning online-banking market.