Oman’s wealthy investors look closer to home as demand grows for Shariah compliant wealth solutions

For years, wealthy investors from Oman have relied on international financial centers to manage their fortunes. Demand for local Shariah compliant wealth management solutions, however, is gradually increasing, signaling a shift in how investors approach wealth preservation, IFN Investor finds out.  

“If we compare ourselves to markets like the UAE or Saudi Arabia, they have made much stronger progress in Islamic banking and wealth management products; that said, demand is increasing,” observed Mohsin Shaik Sehu Mohamed, head of investment banking and capital markets at Dhofar Islamic, Bank Dhofar.

Mohsin noted that Omani Islamic investors are looking for structured portfolios, global diversification and wealth preservation planning.

The gap is reflected in market size. Fitch Ratings estimated that Oman’s Islamic finance industry reached approximately US$36 billion as of late 2025, highlighting steady growth since its introduction just over a decade ago. However, this remains modest compared with the UAE, where Fitch estimates this sector alone surpassed US$285 billion by early 2025. The difference underscores both Oman’s smaller market scale and its potential for future expansion.

While the Islamic finance sector continues to mature, investor preferences remain clear. “Shariah compliant investors generally prefer capital preservation and predictability in terms of income,” Mohsin said. “That naturally leads them to fixed income-type instruments, where they know the maturity date and expected returns.”

Liquidity management is equally important. Money market funds have gained traction, allowing investors to maintain flexibility while preserving capital. This ability to access funds without long lock-in periods makes such instruments attractive for managing both short- and long-term needs.

Equities and real estate also play a role in diversified portfolios, though income visibility remains a key consideration. Many investors favor income-focused funds over pure growth strategies, while real estate continues to attract strong interest due to its familiarity and perceived stability.

Despite growing domestic demand, many ultra-high-net-worth Omanis continue to diversify internationally to access broader product offerings and specialized expertise. Strengthening local capabilities will be essential to retaining more of this capital.

The establishment of the International Financial Centre of Oman represents a key step in this direction. Regulatory clarity, tax certainty, efficient licensing and strong dispute resolution frameworks will be critical to attracting institutions and talent.

As Oman continues to develop its Islamic wealth management ecosystem, rising demand for local Shariah compliant solutions suggests the foundations are being laid for more wealth to remain onshore.