National Bank of Oman (NBO), the sultanate's third-largest lender by assets, is expecting to increase lending by between 10 per cent and 12 per cent this year, its chief executive was quoted as saying by the Oman Tribune.

Ahmed Al-Musalmi, chief executive officer, told the paper that lending growth would be sustained by higher spending on infrastructure projects thanks to the government's proposal to boost funding for development, as well as an increasingly vibrant consumer credit market.

In spite of reduced oil revenue because of the drop in the price of crude, last month's state budget predicted a 4.5 per cent rise in government spending this year to RO14.1 billion ($36.63 billion).

NBO's total lending grew by 12 per cent last year, it said in a results filing last month. - Reuters