Oman Fintech Market Size and Forecast by Type, End Users, Industry, and Transaction Types: 2019-2032

Oman Fintech Market Growth and Performance

• Estimated revenue for the Oman fintech market is to reach US$ 138.04 Billion by 2032, with an anticipated Compound Annual Growth Rate (CAGR) of 38.0% from 2024 to 2032.
• Among end users, the IT and Telecom sector in Oman amounted to US$ 2.08 Billion in 2023.
• By 2032, IT and Telecom end user is predicted to generate 25.6% of the total revenue in the Oman fintech market.

Oman Fintech Market Outlook

Oman fintech market is undergoing a transformative shift, driven by government-led digital initiatives, regulatory advancements, and growing consumer adoption of digital financial services. The Fintech Framework and Roadmap set forth by the Central Bank of Oman (CBO) aims to foster a dynamic and technology-driven financial ecosystem, encouraging competition, financial inclusion, and economic diversification.

The CBO’s strategic objective is to introduce progressive regulatory frameworks and fintech enablers that align with global financial technology trends. With a focus on strengthening digital payment infrastructure, open banking frameworks, and regulatory sandboxes, Oman is actively laying the foundation for a resilient fintech ecosystem that can support both local startups and international fintech players.

Key Growth Enablers in Oman Fintech Market

Several critical factors are accelerating fintech adoption in Oman:

• Resilient Banking Sector: Oman’s banking institutions are actively integrating fintech solutions, supporting seamless digital transactions and innovative banking models.
• Favorable Demographics: With nearly 50% of the population under the age of 29, digital-native consumers are driving the demand for fintech services.
• Government Digitalization Initiatives: The Omani government, under Vision 2040, is focused on enhancing digital financial services and reducing cash dependence.
• Fintech-Academia Collaboration: A national push towards fintech upskilling and research collaboration between universities and the private sector is fostering local fintech innovation.
• Expatriate Remittance Market: A significant expatriate workforce creates demand for cost-effective, digital cross-border payment solutions.

Rise of Digital Payments: Leading the Oman Fintech Revolution

The surge in digital payments is one of the most significant fintech trends in Oman. In 2023, the CBO introduced tokenization services, enabling secure mobile wallet transactions through platforms such as Apple Pay and Samsung Pay.

Key Milestones in Digital Payments:

• Paymob (Egypt-based fintech): Became the first international fintech firm to receive a Payment Service Provider (PSP) license from the CBO, marking a major step toward expanding cross-border fintech collaboration.
• National Bank of Oman (NBO) & PayMate Partnership: This partnership is transforming B2B payments, allowing for streamlined digital invoicing and transactions.
• Oman Digital Commerce Boom: A recent industry survey revealed that 65% of Omani retail merchants reported higher revenues and greater customer engagement after adopting digital payment solutions.

With a strong push for cashless transactions, Oman’s digital commerce market is poised for exponential growth, benefiting small businesses, retailers, and enterprises alike.

Competitive Landscape: Leading Fintech Players in Oman

Oman's fintech landscape continues to evolve with the emergence of several innovative homegrown companies. Notable examples include Split X, offering a Buy Now Pay Later (BNPL) solution; TelyPay, providing a secure digital platform for individuals and businesses; and Wadiaa, focusing on crowdfunding and crowd-investing. In 2020, Thawani became the first non-banking financial entity to receive a fintech license from the Central Bank of Oman (CBO), marking a significant milestone in the country's fintech journey. By 2024, Thawani further solidified its position by being ranked among the 50 most powerful fintech firms in the Middle East.

In 2023, Mamun, an Omani fintech firm, received a full crowdfunding license from the Capital Market Authority (CMA) and pre-approval for a Payment Service Provider (PSP) license from the CBO. This development underscores Mamun's commitment to providing cutting-edge fintech infrastructure to various third-party systems.

The Omani fintech ecosystem has also attracted international players. In January 2024, Egypt's Paymob became the first international fintech company to obtain a full PSP license from the CBO, enabling it to process both online and in-store payments across the Sultanate.

Additionally, in October 2024, QPay, a new BNPL provider in Oman, secured seed funding led by Cyfr Capital. This investment aims to enhance financial inclusion by offering interest-free installment services, contributing to the growth of Oman's digital economy..

Oman Fintech Sector in 2024 & Beyond

Oman fintech industry is at an inflection point, balancing regulatory oversight with accelerated digital transformation. Several key trends will shape the market’s trajectory:

• Expansion of Open Banking: The anticipated launch of open banking frameworks will drive API-led fintech innovation, fostering financial inclusion and customer-centric digital services.
• Rise of Digital Lending & Alternative Financing: SMEs will benefit from fintech-driven credit solutions, including peer-to-peer lending and AI-powered credit scoring models.
• Regtech & Cybersecurity Advancements: As digital transactions increase, Oman will witness greater investments in regulatory technology (RegTech) and cybersecurity solutions.
• Blockchain & Digital Identity Solutions: Emerging applications in blockchain-powered financial transactions and digital identity verification will enhance the security and efficiency of fintech services.

Oman Fintech Market Scope