Home/Guides/Banking
Banking

Borrowing in Oman as a foreigner — who lends, and at what price

Yes, an expatriate can get a mortgage in Oman. The salary threshold is roughly three times the Omani one, and several banks do not lend to you at all. Here is who does, from the banks' own pages.

Published 2026-08-07 ✓ Figures verified 2026-08-07 19 min read

The question is usually asked as though the answer were legal. It is mostly commercial. Nothing in the material we could reach stops an Omani bank lending to a foreigner on residential property — but the banks that do it publish a higher salary floor, and at least one major bank publishes an eligibility rule that excludes you outright.

OMR 750
Bank Muscat's minimum salary for a non-Omani home loan
OMR 250
The Omani minimum at the same bank
25 years
Maximum housing loan tenor
None
Loan-to-value cap published by the Central Bank

Yes — at three times the Omani salary threshold

This is the most useful paragraph on the subject, so we will be specific. All of the following is from the banks' own product pages, read on 7 August 2026.

LenderLends to expatriates?Minimum salary
Bank Muscat (Baituna)Yes — non-Omani employees in the government sector and listed private companiesOMR 750 non-Omani, OMR 250 Omani
Meethaq (Bank Muscat Islamic)Yes — any Omani national or resident expatriateOMR 750 expatriate, OMR 250 Omani
National Bank of OmanNo — Omani nationals onlyOMR 300, Omanis
Sohar InternationalPublishes a product named Housing Finance for ExpatriatesNot retrievable
Sohar IslamicPublishes the same product on the Islamic sideNot retrievable

NBO's housing loan page states eligibility as Omani nationals with a monthly salary of OMR 300 and above, whose employer is on NBO's approved company list, aged 21 to 55 at application with the loan maturing by age 60. There is no expatriate variant on that page. Sohar International and Sohar Islamic both market a product explicitly named for expatriates, but neither page would load for us, so we can confirm the product exists and can tell you nothing about its terms.

What Bank Muscat's Baituna actually offers

Maximum loan OMR 500,000, tenor up to 25 years, rates advertised as starting from 4.5% per annum. Non-Omani applicants must supply passports alongside the usual valuation, krooki and mulkiya, sale agreement and salary assignment letter.

One nationality-linked restriction is spelled out: the financing covers property purchase, villas and apartments in residential or commercial projects, and renovation — but land purchase is for Omani nationals only.

Meethaq finances up to 80% of property value over up to 25 years, and covers purchase, construction and taking over a mortgage from another bank. It publishes no profit rate on the product page, pointing instead to a separate tariff.

The 6% cap you keep reading about is not your mortgage rate

Oman does cap interest. Article 80 of the Commercial Code, Royal Decree 55/1990, entitles a creditor to interest on a commercial loan or debt, determined by agreement "within such limits as the Ministry of Commerce & Industry shall set". The ministry has set that ceiling repeatedly and it has fallen over time — reported as 10% in 2001, 9% in 2006, 8% in 2008, and 6.5% under Ministerial Decision 172/2016 effective 20 July 2016.

The current instrument is Ministerial Decision 409/2025, on determining the return for obtaining a commercial debt or loan, which Chambers dates 2 October 2025 and reports as setting a maximum of 6% per annum. Its immediate predecessor, reported in late 2024, set the same 6% and carried the same crucial carve-out: the return "does not apply to loans provided by banks, finance companies, and asset leasing companies licensed by Oman's Central Bank", and may be exceeded in exceptional cases — long-term loans, developmental projects, high-risk loans — in coordination with the Oman Chamber of Commerce and Industry.

Do not price a mortgage off the 6% figure

The 6% ceiling is a Ministry of Commerce rule for non-bank commercial lending, and it expressly exempts banks, finance companies and leasing companies licensed by the Central Bank of Oman. It does not cap your mortgage, your car loan or your personal loan.

It does bite if you are borrowing from, or lending to, a party that is not a licensed financial institution — a shareholder loan, an inter-company advance, a supplier credit.

The circular we could not read, and why we are telling you

The Central Bank's circulars index lists BM 1213, "Master Circular on Personal Loan and Finance", dated 13 February 2025, together with an annexure of the same date. That is the authoritative document for the retail lending rules — any ceiling on bank personal-loan rates, any loan-to-value requirement, any age rule would live there. We could not retrieve it: every attempt at the Central Bank's document directory failed. So we cannot tell you whether the Central Bank separately caps bank personal-loan interest rates, and we are not going to guess. The document's number and date are citable; ask a bank to show you the relevant clause.

What the Central Bank actually limits

The Central Bank's regulatory framework page does publish hard numbers. Quoted as they appear on the page, read on 7 August 2026:

  • "Lending Ratio ceiling (net credit to deposit-base, consisting of customer deposits, own funds and net of money due to and from banks abroad) is 87.5%."
  • "Housing Loans of a bank are restricted to 15% of its total credit and other personal loans to 35% of total credit."
  • "Maximum tenors are 10 years and 25 years for non-housing personal loans and non-housing loans respectively."
  • "Debt Service Ratio cannot exceed 50% and 60%."
  • "Single obligator exposure limitation is 15% of the bank's net worth."
  • "Aggregate exposure to all connected and all related persons cannot exceed 600% of net worth."

Two of those sentences are not clean. The tenor sentence is internally garbled — it says "non-housing personal loans and non-housing loans", which cannot be right. Read against every bank product page we checked, which offer 25-year housing loans and 10-year personal loans, the intended meaning is 10 years for personal lending and 25 years for housing.

The debt service sentence gives two numbers and does not say which is which. The Central Bank has clarified separately, as reported in the regional press, that the maximum deduction from salary is 50% for a personal loan and 60% for a housing loan. That allocation is corroborated first-hand: NBO's own housing loan page states a debt burden ratio of 60%, excluding life insurance premiums.

One conflict to note. The framework page's 15% housing plus 35% other personal caps sum to 50% of total credit. Press reporting of the Central Bank's position instead describes personal loans as not exceeding 40% of the total value of bank credit. The two do not reconcile on the face of it and we are not going to invent a reading that makes them agree.

There is no published Omani loan-to-value cap

Nothing on the Central Bank's public pages sets a maximum loan-to-value ratio for housing loans. The 80% you will see quoted is what NBO and Meethaq each choose to lend, published as their own product terms.

If a source tells you Oman caps LTV at 80% for a first home and 85% for a national, that is the UAE central bank's rule and it has nothing to do with Oman. UAE mortgage material dominates search results for this question and is the single most common contamination in Omani property advice.

What arranging a mortgage costs

These are from the lenders' own published schedules. The pattern is more useful than any single figure: processing is about OMR 50 plus VAT, early settlement is about 1%, and valuation is charged at cost. That consistency holds across conventional and Islamic lenders.

ChargeAmountLender and schedule
Processing, housingOMR 52.500Bank Muscat; Bank Dhofar, January 2026
Processing, housingOMR 50 excluding VATNational Bank of Oman
Processing, property financeOMR 50 (52.500 with VAT)Bank Nizwa, 9 February 2026
Processing, personal loanOMR 26.250Bank Muscat; Bank Dhofar, January 2026
Prepayment1.05% of the amount prepaidBank Muscat
Early settlement1.05% of the foreclosed amount, minimum OMR 5.000Bank Dhofar, January 2026
Early settlementUp to 1% of outstanding principalBank Nizwa, 9 February 2026
Prepayment on transfer to another bank1% of outstandingNational Bank of Oman
ValuationActual cost plus OMR 10.500Bank Dhofar, January 2026
ValuationAs per actualsBank Nizwa, 9 February 2026
Mortgage creation, paid to the Ministry of Housing0.5%National Bank of Oman
Credit life insurance0.05% of the loan, minimum OMR 5.250, maximum OMR 78.750Bank Muscat
Late payment1% over the agreed interest rateBank Muscat

Note the one charge on that list that is not the bank's: NBO's 0.5% mortgage creation fee is paid to the Ministry of Housing, not retained by the lender. And note what is missing — a rate. Bank Muscat advertises "from 4.5% p.a."; NBO publishes no rate at all and tells you to call the branch; Meethaq publishes no profit rate on its product page. For most Omani mortgage products there is no published price, which is itself worth knowing before you assume you can compare lenders from your laptop.

Islamic home finance gives you a co-owner, not a lender

Meethaq structures home financing as diminishing musharaka. You and the bank become co-owners of the property. Your payments do two things at once: they buy units of the bank's share, and they pay rent on the portion the bank still owns. As your share grows the rent element shrinks. There is no interest, because there is no loan.

That is not a labelling difference. It changes what you own during the term and how you get out. Bank Nizwa's published schedule makes the exit explicit: for diminishing musharaka, "sale of the property to the customer will be at outstanding amount plus 1%" of that amount. You are buying the bank's remaining share, not discharging a charge over your own title.

What that means when you sell or refinance

Because the bank is a co-owner rather than a chargeholder, the exit is a sale transaction, with the 1% priced into it at Bank Nizwa, rather than a release of security.

Meethaq will finance taking over a mortgage from another bank, so moving between conventional and Islamic structures is a product they sell, not an anomaly.

Early settlement pricing is comparable either way — around 1% of the outstanding amount at every lender whose schedule we read.

Which property can an expatriate actually mortgage?

Foreign ownership of Omani real estate runs through Royal Decree 12/2006, the system of ownership of real estate by non-Omanis in integrated tourism complexes, published in Official Gazette 810 on 1 March 2006 and consolidated up to Royal Decree 76/2010. We confirmed the decree exists and what it is called. We could not read its articles — the consolidated text is behind a subscription — so we cannot quote what it says about mortgaging.

Our property guides state that usufruct property cannot be mortgaged, because banks require clear title. We were not able to re-verify that against the primary text in this research, so treat it as this site's existing position rather than something we have confirmed today. If it matters to your transaction, have the specific title checked before you apply for finance rather than after.

Now the striking part. No bank product page we read states that an expatriate mortgage must be over property in an integrated tourism complex. Bank Muscat's Baituna page lists its eligible uses — purchase, villas and apartments in residential or commercial projects, renovation — and the only nationality-linked property restriction it publishes is that land purchase is for Omani nationals only. The ITC condition, which every advisory article treats as the governing rule, does not appear in the lenders' own published terms.

An open question we are not going to fill in

Two readings are possible. Either the banks are silent because the ownership rules do the work upstream — an expatriate can only be buying something they may lawfully own — or the products are drafted more broadly than the advice suggests.

We cannot tell you which, and neither can any source we found. Ask the lender, in writing, what title types it will accept, before you pay a valuation fee.

Business lending: Sharakah publishes the only real numbers

For a foreign-owned Omani company looking for growth finance outside the commercial banks, Sharakah — the Fund for Development of Youth Projects — publishes the most transparent product terms in Omani SME finance. Read on 7 August 2026:

ProductAmountPricing and term
Term loanOMR 10,000 to 350,0005% base plus risk premium up to 3%; maximum 6 years including moratorium
Growth equityOMR 100,000 to 350,000Sharakah takes a 10% to 49% shareholding; exit within 6 years
Bill discountingOMR 25,000 to 200,0005%; up to 120 days
Invoice factoringOMR 100,000 to 500,0007.2% to 14.4%; up to 120 days
Sharakah VenturesOMR 10,000 to 50,000Pre-seed and seed equity
Sharia-compliant productsOMR 10,000 to 350,000Ijara, musharakah, murabaha, wakalah; up to 6 years
  • Term loan — promoter contribution of 33% for new projects and 20% for existing ones; total project cost must not exceed OMR 2 million; a viable business plan and employment generation.
  • Growth equity — 51% promoter contribution against Sharakah's 49%; operating for at least three years; a positive financial track record and a clear exit strategy.
  • Bill discounting — the business must have existed for at least one year, supply to large organisations, and produce audited financials.
  • Invoice factoring — seller at least one year old, previously profitable, no defaults; the purchaser must have turnover above OMR 5 million a year and a good payment record.
The condition Sharakah does not publish

None of Sharakah's published product pages states a nationality or Omani-ownership condition. Given the fund's name and mandate, that is far more likely to be an omission than an opening, and we are not going to read it as one.

Confirm before you build a plan on it: +968 24 47 93 00, info@sharakah.om. Ask specifically whether a company with foreign shareholders is eligible, and ask for the answer in writing.

State-backed finance: what we could not establish

Development Bank

The Central Bank lists Development Bank SAOC among the locally incorporated banks. Its mandate, per a company profile, is development financing across agriculture, fisheries, livestock, industry, information technology, education, health and tourism, acting as a government agent for soft loans. Its own website did not resolve on any address we tried, so its current programmes, ceilings, rates — and decisively, whether foreign-owned companies qualify — are unverified here.

Al Raffd Fund

Al Raffd Fund's public web presence no longer resolves. We could not reach the site at any address, and the legal databases returned nothing readable on its current status. It is widely said to have been folded into another institution. We are not going to repeat that, because we could not verify it. If a consultant tells you Al Raffd will fund your project, ask them to show you the fund's current application channel before you plan around it.

An SME credit guarantee scheme

We could not identify a national SME credit guarantee scheme in Oman from any official source. The nearest Central Bank instrument is a January 2025 circular setting sectoral lending targets with capital relief for the banks — reported as BM 1212, requiring targets by 31 December 2030 across agriculture and fisheries, renewable energy, technology, healthcare and education. That is an incentive aimed at bank balance sheets, not a guarantee offered to a borrower. If a guarantee scheme exists, it is not published where a business owner would find it.

Security and personal guarantees

No Omani bank published anything we could read about the collateral or personal guarantees it requires from a foreign-owned company. The business lending pages of the two largest banks either returned errors or showed navigation only. This is a real gap and we would rather say so than describe a market norm we have not sourced.

What we will say is what not to do: do not assume Omani practice from UAE or Saudi practice. The regulators are different, the security registration systems are different, and the enforcement route is different — Oman now has a dedicated Investment and Commerce Court, reported as operational from 1 October 2025 under Royal Decree 35/2025, with 90-day decision timelines. Any advice that arrives with a reference to the UAE central bank or a Saudi regulator has told you it is about somewhere else.

A stale document still live on a bank's own site

Bank Muscat's home loans offer PDF states eligibility as "Omanis only", with rates of 4.5% for government and quasi-government employees and 4.75% for approved private sector tier 1, over 300 months. It also says the offer is valid up to 31 December 2022. It is still on the bank's website. The live Baituna product page contradicts it and admits non-Omanis at OMR 750. This is exactly the kind of document that seeds wrong advice — a first-party bank PDF, findable in search, expired for years, and read by consultants who then tell foreigners they cannot get a mortgage in Oman. Check the date on any bank PDF before you believe it, including the ones we have cited.

Can an expat get a mortgage in Oman?
Yes, at some banks. Bank Muscat's Baituna home loan is open to non-Omani employees in the government sector and listed private companies with a minimum salary of OMR 750, against OMR 250 for Omanis, with a maximum loan of OMR 500,000 over up to 25 years and rates advertised from 4.5% per annum. Meethaq, Bank Muscat's Islamic arm, finances any Omani national or resident expatriate, also at OMR 750 for expatriates, up to 80% of property value over 25 years. The National Bank of Oman's published housing loan is for Omani nationals only. Sohar International and Sohar Islamic each market a product named housing finance for expatriates, but their pages could not be retrieved, so their terms are unknown.
Is there a 6% cap on loan interest rates in Oman?
There is a 6% ceiling, but it almost certainly does not apply to your loan. Article 80 of the Commercial Code, Royal Decree 55/1990, lets the Ministry of Commerce set a maximum return on commercial loans and debts, and the current instrument, Ministerial Decision 409/2025, sets it at 6% per annum. That decision expressly exempts loans provided by banks, finance companies and asset leasing companies licensed by the Central Bank of Oman. So it does not cap a mortgage, a car loan or a bank personal loan. It does apply to lending between parties that are not licensed financial institutions, such as shareholder or inter-company loans. Whether the Central Bank separately caps bank personal-loan rates could not be verified, because its Master Circular on Personal Loan and Finance, BM 1213 of 13 February 2025, could not be retrieved.
What is the maximum loan-to-value on a mortgage in Oman?
The Central Bank of Oman publishes no loan-to-value cap for housing loans on its public pages. The 80% figure commonly quoted is what individual banks choose: the National Bank of Oman states up to 80% of market value and Meethaq states up to 80% of property value, each as its own product term. Be careful with sources quoting 80% for a first home and 85% for a national — those are the UAE central bank's caps and do not apply in Oman. UAE mortgage material dominates search results on this question.
What does it cost to arrange a mortgage in Oman?
Processing is about OMR 50 plus VAT: OMR 52.500 at Bank Muscat and Bank Dhofar, OMR 50 excluding VAT at the National Bank of Oman, and OMR 50 or 52.500 with VAT at Bank Nizwa. Early settlement is about 1%: 1.05% of the amount prepaid at Bank Muscat, 1.05% of the foreclosed amount with a minimum of OMR 5.000 at Bank Dhofar, up to 1% of outstanding principal at Bank Nizwa, and 1% of outstanding at NBO if you transfer to another bank. Valuation is charged at cost, with Bank Dhofar adding OMR 10.500. NBO also charges a 0.5% mortgage creation fee that is paid to the Ministry of Housing rather than kept by the bank. Bank Muscat adds credit life insurance at 0.05% of the loan, minimum OMR 5.250 and maximum OMR 78.750.
How is Islamic home finance different in Oman in practice?
Under diminishing musharaka, which is what Meethaq uses, you and the bank become co-owners of the property rather than borrower and lender. Your payments buy units of the bank's share while you pay rent on the portion the bank still owns, so the rent element shrinks as your share grows. The practical consequence is at the exit: you buy the bank's remaining share rather than discharging a charge over your own title, and Bank Nizwa's published schedule prices that sale at the outstanding amount plus 1%. Costs are otherwise comparable, with processing around OMR 50 plus VAT and early settlement around 1% at conventional and Islamic lenders alike.
Can a foreign-owned company get a government-backed loan in Oman?
We could not establish that it can. Sharakah, the Fund for Development of Youth Projects, publishes detailed terms — term loans of OMR 10,000 to 350,000 at 5% plus a risk premium of up to 3% over a maximum of six years, growth equity, bill discounting and invoice factoring — but states no nationality or Omani-ownership condition on any of them, which given the fund's mandate is more likely an omission than an opening. Development Bank's website did not resolve, so its eligibility rules are unverified. Al Raffd Fund's public web presence no longer resolves and we will not repeat claims about what became of it. No national SME credit guarantee scheme could be identified from any official source. Confirm eligibility directly before planning around any of these.

Our office in Al Ghubra does not arrange finance and does not introduce lenders. What we do handle is the paperwork underneath an application — resident cards, salary and employment letters, attestations and translations of foreign documents, and the Ministry of Housing transactions that sit alongside a property purchase. If you are assembling a file for a bank, that is the part we can take off you.

Sources

  1. OFFICIALCentral Bank of Oman — regulatory framework (lending ratios, tenors, debt service)
  2. OFFICIALCentral Bank of Oman — circulars index (BM 1213, 13 February 2025)
  3. OFFICIALBank Muscat — loans, including the Baituna home loan
  4. OFFICIALNational Bank of Oman — housing loan
  5. OFFICIALMeethaq (Bank Muscat Islamic) — home financing
  6. OFFICIALBank Dhofar — tariff list, January 2026 (PDF)
  7. OFFICIALBank Nizwa — schedule of charges effective 9 February 2026 (PDF)
  8. OFFICIALSohar International — housing finance for expatriates
  9. OFFICIALRoyal Decree 12/2006 — ownership of real estate by non-Omanis in integrated tourism complexes
  10. OFFICIALMinisterial Decision 409/2025 — determining the return on a commercial debt or loan
  11. OFFICIALSharakah — financial solutions and terms
  12. SECONDARYCurtis, Oman Law Blog — the ceiling on charging interest (Article 80, Commercial Code)
  13. SECONDARYZawya — CBO clarifies on personal and housing loans
  14. SECONDARYLexis — MOCIIP issues decision on commercial loans
  15. SECONDARYChambers — Banking Regulation 2026, Oman: trends and developments

Need help with your transaction?

Our Sanad office in Al Ghubra, Muscat handles government transactions on your behalf — clear pricing, direct follow-up.

Message us on WhatsApp

This guide is for information only and is not legal or tax advice. Fees and rules in Oman change; always confirm with the relevant government authority before acting. The verification date is shown at the top of this page.