It covers payment methods and information on, banking systems, foreign exchange controls, and U.S. and correspondent banking.
The U.S. Export-Import (EXIM) Bank is actively pursuing export and project financing opportunities in Oman. U.S. companies should consider EXIM products for potential deals in Oman, especially those that advance U.S. foreign policy objectives. EXIM and the Omani government announced their mutual support for a memorandum of understanding to enhance trade and economic cooperation between the two countries in January 2021.
Methods of Payment
The most common method of business payment in Oman is a bank letter of credit. Several law firms undertake debt collection, and the U.S. Embassy’s Consular Section can provide a list upon request. There are no credit rating agencies or bureaus in Oman. For more information about the methods of payment or other trade finance options, please refer to the Department of Commerce’s Trade Finance Guide.
Oman’s banking sector consists of 16 licensed local and foreign commercial banks, two specialized banks and eight Islamic commercial banks. Banks are subject to supervision by the Central Bank of Oman, which regulates and licenses private banks, monitors interest rates, and issues development bonds and notes. Oman’s banks are generally well capitalized with low non-performing loan rates. The Central Bank has operated a Financial Stability Unit since 2013.
Foreign Exchange Controls
The Omani rial is fully convertible and is pegged to the U.S. dollar (OMR 1 = USD 2.60). There is no restriction on the repatriation of capital from Oman.
U.S. Banks & Local Correspondent Banks
Local banks in Oman maintain U.S correspondents. Bank Muscat has a correspondent banking relationship with J.P. Morgan Chase; National Bank of Oman with Wells Fargo; and Bank Dhofar with Wells Fargo and J.P. Morgan Chase. There are no U.S. banks operating in Oman, although Citibank remains active in the Omani market through its Dubai office.