Combined total represented 11.4% of the sultanate’s total banking sector assets Islamic banking sector rose by 10.4%, amounting to around 6.4 billion rials RIYADH: The combined assets of Oman’s Islamic banks and windows reached around 7.8 billion Omani rials ($20.2 billion) by June, an 18.1 percent increase from the same period in 2023. According to data from the central bank, the combined total represented 11.4 percent of the sultanate’s total banking sector assets. The analysis showed that total financing provided by the Islamic banking sector rose by 10.4 percent, amounting to around 6.4 billion rials. Deposits in Islamic financial institutions and windows also grew by 14.7 percent, reaching nearly 6 billion rials by the end of June. The growth in Oman aligns with a broader regional trend. A report by Moody’s Investors Service predicts that Islamic financing across the Gulf Cooperation Council will outpace conventional banking, driven by increasing demand for Shariah-compliant financial products and the stability of Islamic banks’ net profit margins. Unlike conventional banks, Islamic institutions benefit from fixed-rate retail financing, insulating them from US Federal Reserve monetary policy shifts. As a result, GCC Islamic banks are expected to maintain superior returns on assets and a stronger net profit margin compared to conventional counterparts. Moody’s said that the profitability of Islamic financial institutions in the GCC will remain strong over the next 12 to 18 months, fueled by stable oil prices, ambitious economic diversification efforts, and strong business confidence. Globally, the sukuk market is also set to expand, with Moody’s projecting issuance to reach $200 to $210 billion in 2024, up from under $200 billion in 2023.