Central Bank of Oman Approves Landmark Open Banking Regulatory Framework

The Central Bank of Oman's Board of Governors has officially approved the country's open banking regulatory framework, establishing the rules for secure API-based access to customer financial data by authorised third-party providers.

The framework, approved following an extensive consultation period, mandates that licensed banks in Oman provide standardised APIs to authorised fintech providers, enabling customers to share their financial data securely with services of their choosing. The regulation covers account information services, consent management, and security standards that all participants must follow.

The CBO's open banking initiative is expected to significantly accelerate fintech innovation in Oman by providing the regulated data-sharing infrastructure that fintech companies need to build new financial products and services. Use cases enabled by the framework include account aggregation, automated financial management tools, and data-driven lending products.

Oman's adoption of open banking follows similar frameworks already implemented in Bahrain and being developed across other Gulf states. The CBO said the framework was designed with reference to international best practices, including the UK's Open Banking Standard, while being adapted to Oman's specific market conditions and regulatory requirements.

The approval marks a significant step in Oman's financial sector modernisation, complementing other recent developments including the launch of mobile payment services, the growth of the fintech sector, and the government's broader economic diversification programme under Oman Vision 2040.

Banks are expected to begin implementing the required API infrastructure over a phased timeline set by the Central Bank.