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Oman has become the latest Middle Eastern country to introduce a regulatory framework for open banking, following in the footsteps of Bahrain, Saudi Arabia and the UAE.
Last week, the Central Bank of Oman (CBO) that its board of governors has approved the , an initiative that has been in the making since 2022.
The framework sets out the licensing criteria, application process and ongoing obligations for open banking service providers operating in Oman and targeting Omani customers.
Effective from the date of issuance, the framework establishes the rights and obligations of open banking service providers and their customers.
It imposes contractual arrangements that will allow account information service providers (AISPs) and payment initiation service providers (PISPs) to access customer data held by banks and payment services providers (PSPs).
Banks that are already licensed are deemed to be authorised to provide open banking services, whereas licensed PSPs have to apply to be exempted from open banking licensing and supervision requirements.
Other elements in the framework are similarly borrowed from existing regulatory frameworks. The 2023Â , for example, sets out standards for digital onboarding and electronic know your customer (KYC) procedures.
The CBO said its aim in authorising the framework is to ensure the safety, soundness and efficiency of open banking services in the country.
The CBO also said that the framework underscores Oman's ambitions to become a hub for payments innovation in the Middle East and North Africa region (MENA).
Oman joins MENA neighbours in open banking push
The number of jurisdictions in MENA that have implemented a regulatory framework for open banking is increasing rapidly.
In October 2020, Bahrain implemented its , becoming the first country in the region to do so.
In 2022, the Saudi Arabia Monetary Authority (SAMA) issued the first version of its Open Banking Framework, focused on establishing technical standards for the sharing of customer data.
This was followed, in September 2024, with a focused on delivering secure and reliable payment initiation services (PIS).
And in June 2024, the UAE implemented an , which incorporates both open banking and open insurance components.
