The Central Bank of Oman (CBO) has issued a regulatory framework governing the licensing and operation of digital banks.  

The framework, effective 1 June 2025, applies to digital banks operating in the Sultanate of Oman and introduces regulatory relaxations along with certain business restrictions.  

It stipulates that applicants must take the form of either a locally incorporated joint-stock company (SAOC or SAOG) or a branch of a foreign bank that is subject to regulatory oversight in its home jurisdiction. 

Two categories of licences are defined, with Category 1 permitting banking operations without business limitations and requiring a minimum paid-up capital of OR30m. 

Category 2 allows limited operations and requires a minimum paid-up capital of OR10m, with capital requirements in both cases to be determined by the CBO Governor. 

Applicants must have experience in the fintech industry and possess the financial capacity to establish a digital bank.  

They must also maintain a team with adequate expertise, while all relevant individuals, including ultimate beneficial owners, board members and senior management, must meet the CBO’s fit and proper criteria. 

In the case of foreign digital bank branches, applicants must obtain approval from their home supervisory authority and receive a no-objection to joint supervision from the same, while shell banks are explicitly prohibited. 

A licensed digital bank is required to establish a physical presence in Oman either as its principal place of business or, in the case of a foreign branch, as a registered office.  

Licensed digital banks must comply with all applicable laws and frameworks, including those related to anti-money laundering and terrorism financing in a fully digitalised environment.  

They must also adhere to frameworks for financial consumer protection, cybersecurity and resilience, digital onboarding and e-KYC, anti-fraud measures, and outsourcing rules, including the use of cloud services.