Dubai’s Mashreq expands into Oman’s thriving banking market

The lender will focus on the Gulf state’s corporate and public sectors

Mashreq, the UAE’s fifth-largest bank by assets, has commenced operations in Oman, marking a strategic step to support the sultanate’s economic diversification agenda.

Since 2013, Oman’s banking sector has more than doubled in size, but experts highlighted to AGBI last October that it may lack the scale to meet state financing demands, with loan-to-deposit ratios already under pressure.

These challenges appear to have prompted Mashreq, which reported AED254 billion ($69 billion) in assets as of September 30, to enter the Omani market.

The bank will prioritize serving Oman’s corporate and public sectors, rather than retail customers, according to its statement.

«Our goal is to unlock value in key sectors such as tourism, logistics, manufacturing, and renewable energy, aligning with Oman’s economic priorities,» the statement noted.

Based in Dubai, Mashreq plans to deliver a comprehensive range of banking services, including treasury, global transaction banking, and sustainable finance solutions.

The UAE is Oman’s largest source of imports and the second-largest market for Omani exports, according to AGBI research.

«Oman’s strategic location and vibrant economic environment are integral to Mashreq’s international growth strategy,» said CEO Ahmed Abdelaal in the statement.

Oman has received multiple credit rating upgrades in recent years after successfully reducing the debt of government-related entities (GREs).

The sultanate’s banking sector includes six domestic commercial banks, one Islamic bank, and seven licensed foreign commercial banks, such as First Abu Dhabi Bank, Qatar National Bank, Standard Chartered, and two Iranian banks, as listed on the central bank’s website.