Investments by Oman's insurance sector rose 10.3 percent year on year to 876.3 million Omani rials ($2.28 billion) at the end of the first quarter of 2026, driven by higher allocations to domestic assets, according to unaudited data from the Financial Services Authority (FSA) reported by the Oman News Agency (ONA).
Domestic and Foreign Insurers' Investment Breakdown
Domestic insurance companies accounted for approximately 588.8 million rials of the sector's total investments, while foreign insurers held around 287.5 million rials. The data showed that domestic insurers invested around 80 percent of their portfolios within Oman, while foreign insurers allocated approximately 85 percent locally, reflecting growing institutional confidence in the country's investment environment.
The increase reflects the insurance sector's growing role in supporting Oman's economy by investing its assets across diverse instruments, boosting capital markets and economic growth while maintaining prudent investment practices.
Regulatory Requirements and Asset Allocation
“The regulation also requires insurers to invest at least 70 percent of their total investments within Oman, while setting investment limits across various asset classes, including bank deposits, equities, bonds, and real estate,” ONA reported.
“Investments by national insurance companies were spread across several asset classes that directly support the domestic economy,” the ONA report said, adding that cash and bank deposits accounted for the largest share at 263.9 million rials, or about 45 percent of domestic insurers' total investments.
Commercial bonds accounted for around 87.2 million rials, followed by government bonds at approximately 79.4 million rials and listed equities at around 73.6 million Omani rials, helping support liquidity in the financial markets and strengthening local financing and investment instruments.
Strong Growth in Key Asset Classes
ONA said the data also showed strong growth in several domestic asset classes compared with the first quarter of 2025, noting that investments in listed equities rose 90.6 percent, while investment funds increased 78.4 percent. It added that commercial bonds grew 37.4 percent, and unlisted equities advanced 32 percent, reflecting greater diversification of insurance companies' investment portfolios and a focus on enhancing returns within a regulated and stable investment environment.
Top Insurers by Investment Size
The four largest insurers accounted for 44 percent of the sector's total investments, led by Gulf Insurance Group with approximately 106.8 million rials, followed by Dhofar Insurance with around 106.4 million rials, Liva Insurance with approximately 97.7 million rials, and Omani Qatari Insurance with total investments of 75 million rials.
According to ONA, the figures underscore the insurance sector's growing importance as an institutional investor, channeling capital into the domestic economy while supporting financial market stability, improving liquidity and contributing to sustainable economic development.
