Wealth management in Oman: private banking, the stock exchange and Islamic finance

A private clientele mostly from Oman and the Gulf

Wealth management in Oman refers to the private banking, portfolio management and advisory services offered in Muscat by local banks and firms licensed by the Financial Services Authority, often in rials, dollars and Sharia-compliant products. It mainly serves Omani families, Gulf entrepreneurs and affluent expatriates, since local banks reserve private services for clients whose assets exceed a level set by each institution.

Omani wealth management mainly serves Omani families, Gulf entrepreneurs and affluent expatriates living in Muscat. Local banks reserve their private services for clients whose deposited or invested assets exceed a certain level set by each institution.

The Financial Services Authority since 2024

Created in 2024 to succeed the Capital Market Authority, the Financial Services Authority oversees securities markets, asset managers, brokers and insurance. Bank deposits, for their part, remain under Central Bank of Oman supervision.

Muscat Stock Exchange and Omani securities

The Muscat Stock Exchange lists banks, telecom, energy and utility companies, together with bonds and sukuk. A local manager can build a pocket of dividend-paying Omani shares there, held alongside positions on the main international markets.

Sukuk and Sharia-compliant mandates

Many clients of wealth management in Oman ask for Sharia-compliant management approved by a Sharia supervisory board. The portfolio then favours sovereign or corporate sukuk, screened equities and Islamic deposits, while excluding conventional interest-bearing investments such as ordinary bonds and term deposits.

A dollar-pegged rial and currency allocation

The rial's dollar peg makes dollar investments almost currency-neutral for an Oman resident. A client whose spending is in euros, however, must manage euro-dollar risk in the allocation, for instance by keeping a dedicated euro pocket.

No personal income tax before 2028

Until the end of 2027, an individual resident in Oman pays no tax on investment income. The 5% tax due from 2028 on income above 42,000 rials will lead affected clients to review their arrangements with a tax adviser.

Investor residence and moving wealth

Oman has launched a long-term residence programme for foreign investors, linked to investment in a company, property or government bonds. The bank checks the source of funds transferred for this purpose, as for any large inflow.

Private banking at Bank Muscat

Bank Muscat runs a private banking business offering investment advice, structured deposits, access to markets and Islamic solutions. Clients considering private banking in Oman should review the entry threshold, the type of mandate and the fee schedule before transferring any assets.

Fees, custody and manager reporting

Costs in Omani wealth management include management or advisory fees, brokerage, custody and sometimes performance fees. Clients check which custodian holds the assets, how often statements arrive and whether foreign securities are held in an omnibus account.

Omani wealth and the French tax authorities

A French tax resident keeping assets managed in Oman declares each bank or securities account on form 3916 and reports the income. Because Oman exchanges data under CRS, the French administration receives a record of it.

How to choose a provider for wealth management in Oman

Start by distinguishing the families of provider: local banks with a private banking arm, asset managers licensed by the Financial Services Authority, brokers who are members of the Muscat Stock Exchange and independent advisers. Check the provider's licence with the competent authority before any transfer of assets, because this simple check already rules out intermediaries who have no right to operate.

Next, examine the proposed investment policy: weight of Omani shares, bonds, sukuk and cash, permitted currencies, limits per issuer and investment horizon. Ask for a written document describing what the manager may do and what is forbidden. Compare several offers on those precise points, rather than on past performance, which never prejudges future results. A clear written policy also protects you if a disagreement arises later.

A client living outside the Sultanate should be able to reach an Oman wealth manager at suitable hours and obtain written answers kept in a clear history that can be consulted later.

Documents and information requested by private banking in Oman

A private bank applies detailed identity checks: passport, recent proof of address, resident card where the client lives in Oman, tax residence and tax identification number. A discrepancy between two documents is enough to delay the file by several weeks.

Prepare simple, verifiable items: statements of existing accounts, proof of the sale of a business or property, inheritance documents or evidence of accumulated income. For an investor residence plan, the evidence behind the transfer of funds to Oman will be examined with the same rigour as for any large inflow.

Answer frankly, because this questionnaire determines the strategy offered to you. If you want Sharia-compliant management, say so from the start so that the supervisory board can validate the approach chosen. Then the manager can propose a suitable approach to wealth management in Oman.

Common mistakes in Omani wealth management

The first mistake is to choose on the sole basis of the institution's prestige. Compare at least two offers of private banking in Oman and ask each for a worked example of annual cost for a portfolio similar to yours.

The second mistake is to neglect currency risk. The rial is pegged to the dollar, which simplifies dollar investments for an Oman resident, but a client whose spending is in euros keeps a euro-dollar risk. Build this into the allocation, possibly with a euro pocket, and ask the manager how this exposure is tracked in the reports. Ask for the currency exposure to be reported separately each quarter.

The third mistake is to ignore tax developments. No personal income tax exists yet in Oman, but the tax announced for 2028 may change the position of some clients. A French tax resident must also declare accounts on form 3916. Have the whole arrangement validated by a tax adviser before investing a large sum.

Questions to ask before entrusting assets to a manager

Ask simple questions and write down the answers: which licence do you hold, what exactly are your fees, who holds my securities, how are my foreign securities held, how often will I receive a report and how can I end the mandate? A serious professional answers directly and agrees to confirm in writing, which is already a good sign of quality.

Keep every reply on file.

Planning around the 2028 tax change and the residence programme

The absence of tax on investment income ends with 2027, and from 2028 a 5% tax applies above 42,000 rials. Ask the manager to project the yearly income of the portfolio, dividends from Muscat Stock Exchange shares and sukuk returns included, and to show how close it comes to that threshold. Your tax adviser, not the bank, then decides which items count. A client who expects to leave Oman before 2028 should still ask for this projection, because the allocation chosen now will still be in place when the rule starts.

The long-term residence programme offers three routes: a company, property or government bonds. Choose the route before moving money, since the bank examines the transfer in light of that purpose. Prepare the sale contract of the business or property that generated the funds, and ask whether the manager can hold government bonds in custody for you. Residence granted through investment does not replace the declarations of the country where you pay tax, so the CRS self-certification must still state your real tax residence.

For Sharia-compliant mandates, the exclusion of ordinary bonds and term deposits raises a practical question: where does idle cash wait between two purchases? Ask the manager which Islamic deposit is used, who at the supervisory board approved it and how the list of screened Omani equities is updated. Request the board’s approval in writing, with its date, so that any later change of approach can be compared with what you accepted at the start.