gulfnews : Omani banks warned on overexposure

Oman's banking system relies too heavily on oil wealth and is overly exposed to the construction and real estate sectors, a report has claimed.

Moody's Investor Services said yesterday that while the country continued to rely on revenue from the oil and hydrocarbon sectors, banks would continue to suffer the effects of volatile global markets.

"A key structural weakness is Omani banks' limited geographic diversification and high dependence on the domestic economy, which in turn relies on the volatile oil sector," the report stated.

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