30 Apr Interview with Sheikh Waleed K. Al-Hashar, CEO of Bank Muscat, Oman
Bank Muscat has been pivotal in supporting the country’s economic growth and national development initiatives. How does Bank Muscat align its banking strategies with Oman’s Vision 2040, and what key initiatives is the bank undertaking to support national economic development?
Bank Muscat plays a crucial role in supporting the Sultanate of Oman’s economic growth and aligning its strategies with Oman Vision 2040. It stands as a pillar of financial strength and innovation in the industry, proudly managing assets exceeding US $36 billion. Supported by a network of 190 branches and a 34% market share, the Bank’s footprint is extensive and ensures accessibility and personalized service across the region. Furthermore, the Bank is committed to enhance In-Country Value (ICV) and integrating this concept into its operations, with over 80% of its suppliers being local. This not only supports domestic economic development but also contributes to economic diversification, a core goal of Vision 2040. The Bank also focuses on expanding financial inclusion, by enhancing accessibility to banking services. It has expanded its network of branches and service centers nationwide, complemented by nearly 900 devices, including ATMs, CDMs and self-service kiosks. This expansion signifies wider accessibility to the Bank’s services and solutions for customers, thereby fostering financial growth.
The Bank supports micro, small and medium-sized enterprises (MSMEs), and provides them with consulting and technical services to enhance project sustainability and competitiveness. In this context, the Bank launched Al-Wathbah Academy which aims to impart the required skills and guidance for entrepreneurs. We are proud to say that this unique programme complements government efforts in strengthening the role of SMEs in the economic development of Oman, noting that the total number of participants in the Academy currently stands at 258, with several success stories underscoring its impact.
The development and growth of its workforce continues to be a vital pillar for the Bank. The Bank’s success over the years is rooted in the skill, talent and dedication of its workforce. Through its learning & development arm “Jadara Academy”, the Bank offers training opportunities for staff professional growth. Furthermore, women comprise 47% of the Bank’s workforce across all levels and in leadership roles and positions.
Looking ahead, Bank Muscat remains dedicated to supporting Oman’s Vision 2040 through ongoing strategic initiatives that promote economic diversification, innovation, and human capital development.
As Oman’s leading financial institution, Bank Muscat offers a wide range of services, from corporate and personal banking to investment and Islamic banking. How have Bank Muscat’s diverse services performed recently, and what key achievements or trends have you observed across corporate, personal, and Islamic banking?
Bank Muscat has consistently demonstrated leadership in the financial sector by offering a diverse range of innovative products and services tailored to meet the evolving needs of customers. In 2024, Bank Muscat expanded its branch network with five new locations and inauguration of seven Asalah priority banking Centers. The Bank’s digital services have seen remarkable growth, with a 44.1% rise in transaction volumes.
At the corporate banking level, the Bank caters to diverse customer segments, including SMEs, corporates, and government entities, by providing tailored solutions in lending, transaction banking, and working capital management. Strategic partnerships and the introduction of digital solutions, including e-mandate services for Direct Debits, strengthened its service offerings.
Consequently, Bank Muscat has been honoured for excellence in these fields and rated among Forbes’ 30 most valuable banks in the Middle East for 2024. The Bank was also named the Best Private Bank and the Best Corporate Digital Bank in Oman by Global Finance, the Best Domestic Private Bank by Euromoney, and the Best Bank for Trade Finance by the Digital Banker.
At the same time, Meethaq Islamic Banking from Bank Muscat has solidified its status as the leading Islamic services provider in Oman, with the largest branch network expanding to 32 branches.
The financial sector is rapidly evolving, with digital banking and fintech innovations reshaping customer expectations. Bank Muscat has invested heavily in electronic channels to provide seamless banking services. What are Bank Muscat’s key digital transformation initiatives, and how is the bank leveraging fintech to enhance customer experience and operational efficiency?
The Bank has been at the forefront of digital transformation, leveraging cutting-edge fintech solutions to redefine the customer experience. By integrating innovative technologies, the Bank has streamlined its services, providing customers with seamless, efficient, and secure banking solutions, making digital convenience a priority and allowing customers to manage their banking needs at any time and from anywhere. This commitment to digital excellence enhances convenience and further empowers customers with greater control over their financial decisions, making banking with Bank Muscat an unparalleled experience in today’s fast-paced digital world. The Bank has streamlined corporate banking services by enabling seamless integration through use of APIs and leveraged automation and artificial intelligence to optimize back-office operations, enhance customer service efficiency, and improve security measures. Similarly, the Bank actively engages with both local and international FinTech to explore emerging technologies and innovations. This includes corporate accelerator programs for prototype development, participating in tech expos, and making strategic FinTech investments.
SMEs are the backbone of Oman’s economy. Bank Muscat plays a vital role in supporting entrepreneurs and small businesses through tailored financial solutions. What are Bank Muscat’s key initiatives to support SMEs, and how does the bank ensure financial inclusion for underserved segments in Oman?
Sustainable economic growth is a key element in our mission and our contribution to Oman Vision 2040. An important part of this is the Bank’s support for micro, small and medium-sized enterprises (MSMEs). Through initiatives such as Bank Muscat’s Al-Wathbah Academy, we continue to support the development of entrepreneurs, enabling them to access the skills, knowledge, and practical support to help their businesses grow and prosper. The Bank has developed innovative products and services to incorporate MSMEs into its financial inclusion framework. In recognition of these efforts, the Bank won the Best Bank for SMEs Award from Euromoney, alongside a number of other international and local accolades.
To advance financial inclusion, Bank Muscat has in place a comprehensive development plan to offer diverse services and facilities tailored to all customers, including those with hearing, visual, and physical disabilities. Besides branches dedicated for the disabled, the Bank strives to equip all its branches with the appropriate facilities to help easy access for people with disabilities to various banking services. In addition, the Bank implemented training programmes for staff in sign language. Bank Muscat also offers free online financial literacy courses branded as “Maliyat” and tailored for the local community, including those with hearing and visual disabilities. The platform includes digital tools and sign language to facilitate access to essential financial management skills and informed spending decisions.
Bank Muscat’s renewed partnership with the Ministry of Education highlights its commitment to financial literacy for students. How does this collaboration support financial inclusion and empower the next generation in Oman?
The Bank believes that Financial Literacy is one of the basic skills that individuals require, especially in light of increasing economic challenges and rapid changes in financial markets. We have partnered with the Ministry of Education under the umbrella of the “Maliyat Academy” Programme, targeting students aged between 13 to 16 and training groups of life skills teachers, vocational guidance specialists, who are assigned to train students in schools across Oman, making essential economic knowledge accessible to a broader audience. Through this collaboration, we aim to enable individuals to make wise decisions about their money, manage their finances confidently, foster long-term economic resilience and responsible financial behavior. Ultimately, bolstering the financial autonomy of participants, especially youth and students, in alignment with Oman’s developmental trajectory. As a result of these efforts, during the year 2023 – 2024, more than 23,000 students across 395 schools covering various governorates in Oman benefited from this programme. It involved 488 trainers in cooperation with the Ministry of Education.
Overall, this collaboration not only addresses immediate financial literacy needs, but also lays the groundwork for a more financially inclusive future, empowering young individuals to thrive in a complex economic environment.
Bank Muscat has expanded beyond Oman, with branches in Saudi Arabia and Kuwait and representative offices in Dubai, Iran, and Singapore. What is Bank Muscat’s strategy for regional and international expansion particularly in facilitating trade, investment, and financial services between the two nations?
The presence of the Banks’ branches and representative offices overseas is increasingly vital as these entities serve as strategic gateways that facilitate cross-border transactions, enhance customer service, and expand market reach. Bank Muscat’s Riyadh branch continues to demonstrate a positive performance in accordance with its growth strategy. The branch remains committed to prioritizing the origination of secure credit exposures, ensuring asset quality, and sustaining a positive trend in profitability. It supports Omani customers who would like to enter into the Saudi market. However, we are continuously seeking to explore opportunities in the sector both within and outside Oman, fostering beneficial partnership that support economic growth and development.
Do you have any closing remarks for our readers who are considering visiting or investing in Oman?
The investment scene in Oman is promising and the country’s unique culture with abundance of natural resources and economic opportunities make it an attractive destination for both visitors and investors. Launched in 2021, Oman Vision 2040 focuses on six main themes, one of which is sustainable development aimed at balancing economic growth and social well-being. The long-term strategy emphasizes economic diversification with local to global growth, moving to reduce reliance on oil and promote other sectors such as tourism, logistics and renewable energy. Oman’s strategic position in the GCC, close to growing markets in Asia and Africa, combined with its world-class infrastructure, make it well-suited to access these markets. Moreover, The World Bank ranks Oman among the most cost-effective countries in the Middle East for business, considering factors like labor, financing costs and facilities. The Omani banking sector is known for its resilience, stability and customer centric services. The Central Bank of Oman provides a robust regulatory framework that ensures soundness of this sector.
When considering the long-term outcomes, these factors present a very encouraging outlook for Oman’s position in the near future.