Oman’s Islamic finance industry is slated to hit $45 billion this year, up from $36 billion by the end of 2025, supported by favourable economic conditions, Fitch said in a report. Sukuk accounted for about 60% of US dollar debt issuance in 2025, down from 94.3%, with the rest in bonds. However, structural constraints persist, including a lack of Islamic treasury bills and derivatives, an underdeveloped Omani riyal sukuk and bond market, and the limited presence of Islamic non-bank financial institutions. Business conditions remain favourable for Omani Islamic and conventional banks, supported by high, but moderating, oil prices. Fitch expects loan growth of 6-7% in 2026, driven by higher demand in both the retail and corporate sectors.