Oman appoints new central bank governor

Ahmed Al Musalmi is currently the chief executive of Sohar International Bank

Oman's economy continues to expand on diversification plans. Silvia Razgova / The National

Oman has appointed Ahmed Al Musalmi as the governor of its central bank, as the Gulf nation continues to focus on diversifying its economy.

The sultanate also appointed Sayyid bin Tariq Al Said as chairman of the board of directors of the banking regulator, the Oman News Agency reported on Wednesday, quoting royal decrees by Sultan Haitham.

Mr Al Musalmi replaces Tahir Al Amri, who took the helm of the Gulf state’s central bank in 2017.

Mr Al Musalmi is currently the chief executive of Oman's Sohar International Bank, a role he has been in since 2018, according to his biography on the bank's website.

A graduate of Harvard Business School and with a MBA degree from the University of Bedfordshire in the UK, Mr Al Musalmi is also the deputy chairman of Asyad Group, an Oman-based logistics provider.

He also worked as the chief executive of Oman National Bank, before joining the Sohar International.

The new announcements come as Oman’s economy continues to grow on diversification plans.

The sultanate's economy expanded by 1.9 per cent on an annual basis in the first half of 2024, from 1.2 per cent in the previous year, the International Monetary Fund said in November at the end of an official staff mission to the country.

Oman’s non-hydrocarbon sector, which grew by 1.8 per cent in 2023, jumped 3.8 per cent during the January-June period on the back of expansions in construction, manufacturing and services, the IMF said.

The multilateral lender noted the progress the sultanate made on strengthening social safety nets, increasing labour market flexibility, strengthening its business market, advancing climate and digitalisation priorities, and continuing its state-owned enterprise reforms.

The Gulf state is also considering the introduction of personal income tax on high earners in the sultanate to diversify its revenue.

In July, Oman's Shura Council revealed plans to forward a draft law on personal income tax to the State Council. Although the exact details are still being finalised, if passed, the sultanate’s personal income tax would be a first in the Gulf, with citizens taxed on net global income above $1 million and foreign residents on Oman-sourced income above $100,000.

The expected reported tax rates range between 5 per cent and 9 per cent for foreign nationals, with a flat rate of 5 per cent for Omanis above the specified threshold.