The Regulatory Framework For Digital Banks In Oman

At the start of 2025, Oman made sweeping changes to modernise its banking law, which included the promulgation of a new Banking Law. One of the key changes introduced was the concept of "digital banks", defined under the new Banking Law as a "Licensed Bank to conduct Banking through digital platforms or channels using modern technological techniques". Article 9 of the new Banking Law provides that the Central Bank of Oman (CBO) will regulate digital banks in accordance with rules and provisions specified. The CBO has, on 1 June 2025, issued the regulatory framework (CBO Decision 25 of 2025) for digital banks ("Regulatory Framework"), which will be the key framework by which digital banks can operate in Oman. Digital banks will also be regulated by, amongst other laws, the new Banking Law in respect of any penalties or enforcement actions.