Oman FSA drives digital and sustainable finance growth

By Vriti Gothi

The Financial Services Authority (FSA) of Oman is advancing the nation’s digital and sustainable finance agenda through a series of strategic initiatives designed to strengthen inclusion, innovation and regulatory resilience. Working in close collaboration with the Central Bank of Oman, the Ministry of Finance, and the Oman Investment Authority, the FSA is positioning FinTech as a key driver of economic diversification and financial accessibility.

Abdullah bin Salim al Salmi, Executive President of the FSA, underscored the sector’s rapid momentum, highlighting crowdfunding platforms as a tangible example of how digital finance is reshaping market access. “Crowdfunding platforms have financed over RO 14.9 million since 2022, recording 81% growth between Q2-2024 and Q2-2025, clear evidence that fast-moving digital channels can complement banks and meet SME funding needs within minutes,” he said in an exclusive interview.

At the centre of this transformation is a collaborative regulatory framework aimed at nurturing innovation while maintaining financial stability. A joint national sandbox, developed with the Central Bank of Oman, a dedicated FinTech desk at Invest Oman, and the introduction of temporary licences under Royal Decree 20/2024, enable the testing of new models in a controlled environment. These initiatives, Al Salmi noted, are designed to safeguard the public interest through proportionate regulation, while encouraging international participation and positioning Oman as a regional hub for digital finance.

Beyond FinTech, the FSA is expanding access to capital for small and medium-sized enterprises (SMEs). The Authority is supporting the introduction of sukuk wadi‘ah investment certificates based on the Shariah principle of wadi‘ah, or safe custody, offering investors secure and ethical instruments aligned with Islamic finance values. Additionally, the creation of the Alternative Investment Market (AIM) provides high-growth SMEs with a lighter-touch listing segment that fosters transparency and market discipline, serving as a springboard to the main market on the Muscat Stock Exchange (MSX). Cross-border Memoranda of Understanding are also opening pathways for mutual funds and, in select cases, exchange-traded funds (ETFs), offering foreign investors structured access to Omani investment opportunities.

Oman’s insurance landscape is evolving in parallel, with the health segment now emerging as the largest line of business, expanding at nearly 30% annually. The FSA is embedding risk-based supervision, enhancing actuarial capacity, and increasing oversight of climate and catastrophe risks across both conventional and takaful portfolios. New focus areas include life and professional indemnity insurance, reflecting the regulator’s broader ambition to foster resilience and innovation across the sector.