MUSCAT, Oman (AP) - The Central Bank of Oman (CBO) announced a rise in its foreign assets by the end of 2023, reaching $17.49 million according to their annual report released on Monday. While the exact figure from the previous year remains undisclosed, the bank did confirm this represents a significant increase.
This growth in foreign assets is likely attributable to a confluence of factors, including a rise in global oil prices and an increase in foreign investment in Oman. As a major oil producer, the Sultanate has benefitted from the recent surge in oil prices, bolstering its revenue stream.
The CBO is entrusted with managing Oman's foreign exchange reserves and guiding the country's monetary policy. The fortified foreign assets will provide the bank with a more substantial buffer to defend the Omani rial and ensure financial stability.
This development comes alongside positive news for Oman's domestic banking sector. Private sector deposits in commercial banks and Islamic windows witnessed a substantial increase of 10.6% by the end of 2023 compared to the same period in the previous year, reaching 19.2 million rials. This indicates growing confidence in the country's economic outlook.
The report also highlighted growth in Oman's hospitality industry. The revenues of 3-5 star hotels climbed by 17.1% at the end of January 2024, compared to the same period in 2023. This growth aligns with a rise in total hotel guests of 20.5%, reaching 215,660 by the end of January 2024. The hotel occupancy rate also registered a significant increase of 16.2% during the same period.
Oman's economic performance appears to be on an upward trajectory, bolstered by rising oil prices, increased foreign investment, and a thriving hospitality sector. The CBO's bolstered foreign assets provide a safety net to navigate potential economic challenges and promote financial stability.