Oman Issues Comprehensive Regulatory Framework for Digital Banks, Effective June 2025

The Central Bank of Oman has introduced a comprehensive regulatory framework governing the licensing and operation of digital banks in the Sultanate, effective from 1 June 2025.

The framework defines two licence categories for digital banking entrants. Category 1 licences permit full banking operations with a minimum capital requirement of OMR 30 million, while Category 2 licences allow more limited operations with minimum capital of OMR 10 million. The tiered approach enables the CBO to accommodate different scales of digital banking ambition while maintaining proportionate regulatory oversight.

Licensed digital banks must maintain a physical presence in Oman, comply with the country's e-KYC framework for digital identity verification, meet cybersecurity standards, and adhere to AML and counter-terrorism financing requirements. The framework explicitly prohibits shell banking operations, requiring all licensed entities to maintain substantive operations within the Sultanate.

The regulatory framework follows the CBO's earlier approval of an open banking framework and reflects the regulator's systematic approach to modernising Oman's financial sector infrastructure. By establishing clear rules for digital banking before applications are received, the CBO provides prospective entrants with regulatory certainty.

Oman's digital banking framework draws on approaches adopted by other Gulf regulators, including Qatar's recently issued digital banking regulations and Saudi Arabia's SAMA licensing process. The framework positions Oman to attract digital banking applicants that could expand financial services access across the Sultanate.

The CBO is expected to begin accepting licence applications following the framework's effective date.