OMAN Law and Practice Contributed by: Ahmed Said Al Jahwari, Idil I. Kaner and Al Muhalab Al Issai, Dr. Ahmed Said Al Jahwari & Partner Law Firm
Dr. Ahmed Said Al Jahwari & Partner Law Firm Al Khoud 7
Al Khoud Street Building No 788 PC 7942 Sultanate of Oman Tel: +968 21144333 Email: info@ajlo.om Web: www.ajlo.om
1. Private Credit Overview 1.1 Private Credit Market
cantly over the past six months, with total issuance of approximately OMR4.98 billion, representing a 15.6% year-on-year increase, compared to the private credit market. This growth is driven by recent banking regu - lations and government-led issuance of sovereign and sukuk bonds, including OMR75 million and OMR15 million development bonds, as well as OMR150 mil - lion sukuk. Trends indicate that large corporations typically access public debt, while SMEs continue to rely on private credit and crowdfunding alternatives. Given that the private credit market is in the early stag - es of development, banks and private credit funds cannot yet be described as competitors. On the con - trary, evidence suggests that banks are increasingly supporting the development of the private credit mar - ket by providing financing to private credit lenders. 1.3 Acquisition Finance Most acquisition financing over the past 12 months has continued to rely on traditional bank lending rather than private credit. Private credit has played a limited role, primarily in smaller or mid-market transactions where borrowers require flexible or bespoke financing solutions that banks may not provide. Overall, banks remain the preferred source of funding for large-scale acquisitions, while private credit is still emerging as an alternative in the market. See 1.1 Private Credit Market . 1.4 Challenges As the private credit market in Oman is in its early stages of development, there have been no major
The private credit market in Oman has shown mod - erate growth in the last 12 months, with activity by non-bank finance companies and private lenders increasing modestly, estimated at low single-digit growth (approximately 3–5% year-on-year). Growth has primarily tracked SME demand and asset-based financing rather than expansionary credit. Although the private credit market remains narrow, with private creditors representing only a small share of total credit, there is an increased appetite for alternative financing as companies face constraints accessing traditional sources. Recent economic and regulatory develop - ments, including measures to support SMEs and the ongoing implementation of Oman Vision 2040, have encouraged both borrowers and lenders to engage more actively in private credit transactions, shaping the pace and structure of deals over the past year. As the nation reforms its financial infrastructure to foster a more innovative, technology-forward ecosystem, the alternative financing sector is gaining momentum. Private credit lenders were active in the SME, logistics and transport, construction, and manufacturing and light sectors, particularly for asset, equipment, vehi - cle, and fleet finance, as well as short-term working capital facilities. 1.2 Interaction With Public Markets Banks remain the most prominent lenders in the Oma - ni market. Public debt markets have grown signifi -
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