Contents

• Introduction 3
• PESTLE Analysis 4
• Current Scenario 7
• SWOT Analysis 10
• Challenges 12
• Theories 13
• Awareness 14
• Conclusion 15
• Recommendations 16
• References 19

Description

The financial system in Oman consists of an institutional framework, which includes Central Bank of Oman, Commercial Banks, non-banking finance, money exchange establishments and leasing companies. As observed by (Magd and McCoy, 2014) the Banks in Oman provides insurance, pension funds and capital market. The banks that accounts more than 90 percent of the entire assets or liability completely as a whole, dominates Oman’s financial statement. In Oman there are two banks that work in a specialized method, where one caters to the project development program, the other looks after providing mortgage loans. The banking system of Oman has a competitive environment and works in an unfamiliar manner. Banks in Oman provides an attractive policy regarding foreign investment. They also permit the operation of foreign banks locally and they have an open capital account. Banking sectors has recently adopted the policy of taxing both domestic and foreign companies uniformly, in order to enhance growth. In recent years, it has been observed that the banking industry is developing in Oman. The total assets of commercial banks increased from 4.9 to 14.2 billion at the end of 2009, leading to a development in the economy. But at the same time it has also been noticed that the fall in the price of oils is also bringing the economic growth down.
The first local bank of Oman is the National Bank of Oman (NBO), which was founded in 1973. NBO has played a major role in developing the local business of Oman and the economy of the nation in a large scale (National Bank of Oman, 2013). It is one of the largest banks in Oman which has a paid up capital of 110.8 million Omani Rials, which is equivalent to 288 million US$. According to (National Bank of Oman, 2013) their regulatory capital is 377.8 million Omani Rials which is almost equal to 981 million US$. National bank of Oman makes it mandatory to make banking experience more convenient and accessible and enjoyable for the customers. NBO provides all kinds of financial solutions keeping in mind the customer’s need and demand. It helps the local companies in conducting business within the country as well as abroad. Because of its developed international operations, NBO has a significant competitive advantage. The bank has 61 branches and 173 ATMs and Cash deposit machines. Moreover, as observed from a report of (National Bank of Oman, 2013) NBO has an international presence in UAE and Arab for more than 10 years. The main aim of the bank is to influence the society in a positive way by adopting and implementing advanced strategies.