Oman reverse mortgage market report size, share, growth drivers, trends, opportunities & forecast 2025–2030

Oman Reverse Mortgage Market Overview

• The Oman Reverse Mortgage Market is valued at OMR 140 million, based on a five-year historical analysis. This growth is primarily driven by the increasing aging population, rising property values, and the need for financial solutions that allow seniors to access their home equity without selling their properties. The market is also supported by growing awareness of reverse mortgage products among potential borrowers, as well as the expansion of financial literacy initiatives and the introduction of more flexible product offerings tailored to retirees’ needs .
• Muscat, the capital city, dominates the market due to its higher concentration of senior citizens and urban development. Other significant regions include Dhofar and Al Batinah, where the demand for reverse mortgages is growing as more residents seek financial independence in retirement. The urbanization and economic development in these areas contribute to the increasing acceptance of reverse mortgage products. The trend is further supported by the government’s focus on enhancing retirement security and the increasing participation of financial institutions in these regions .
• The Central Bank of Oman issued the “Mortgage Finance Regulatory Framework, 2023” to enhance consumer protection in the mortgage and reverse mortgage sector. This regulation mandates comprehensive disclosures about loan terms and conditions, standardized documentation, and clear communication of borrower obligations. The framework requires all mortgage providers to comply with minimum capital adequacy, risk management, and transparency standards, thereby promoting trust and encouraging wider adoption of reverse mortgage products among seniors .

Oman Reverse Mortgage Market Segmentation

By Type:The reverse mortgage market can be segmented into various types, including Home Equity Conversion Mortgages (HECMs), Proprietary Reverse Mortgages, Sharia-Compliant Reverse Mortgages, and Single-Purpose Reverse Mortgages. Among these, Home Equity Conversion Mortgages (HECMs) are gaining traction due to their flexibility and government backing, making them a preferred choice for many seniors. Proprietary Reverse Mortgages are also emerging as a popular option, particularly for homeowners with higher-value properties, while Sharia-Compliant options cater to the local population's religious preferences. Recent trends indicate an increasing interest in Sharia-Compliant and single-purpose products as financial institutions tailor offerings to meet diverse retirement needs .

By End-User:The end-user segmentation includes Senior Citizens (60+ Years), Financial Institutions & Banks, Real Estate Developers, and Government and Public Sector Entities. Senior citizens represent the largest segment, driven by the increasing need for financial solutions that allow them to maintain their lifestyle in retirement. Financial institutions are also significant players, providing the necessary funding and support for reverse mortgage products, while real estate developers are increasingly recognizing the potential of these products to enhance property sales. The government and public sector entities are involved in promoting financial literacy and supporting regulatory frameworks .

Oman Reverse Mortgage Market Competitive Landscape

The Oman Reverse Mortgage Market is characterized by a dynamic mix of regional and international players. Leading participants such as Bank Muscat, Oman Housing Bank, National Bank of Oman, Bank Dhofar, Oman Arab Bank, Alizz Islamic Bank, Sohar International, Muscat Finance, Oman Investment and Finance Company (OIFC), Dhofar International Development & Investment Holding Company (DIDIC), Oman United Insurance Company, Al Izz Islamic Bank, Oman National Engineering & Investment Company (ONEIC), Taageer Finance Company, United Finance Company contribute to innovation, geographic expansion, and service delivery in this space.

Oman Reverse Mortgage Market Industry Analysis

Growth Drivers

• Increasing Aging Population:The aging population in Oman is projected to reach 1.5 million in future, representing approximately 15% of the total population. This demographic shift is driving demand for reverse mortgages as older adults seek to leverage their home equity for financial stability. With life expectancy increasing to 78 years, many retirees are looking for ways to supplement their income, making reverse mortgages an attractive option for financial security in retirement.
• Rising Property Values:Oman’s real estate market has seen property values increase by 10% annually, with the average home price reaching OMR 110,000 in future. This rise in property values enhances the equity available to homeowners, making reverse mortgages more appealing. As homeowners recognize the potential to access cash from their appreciating assets, the demand for reverse mortgage products is expected to grow significantly, providing financial flexibility for retirees.
• Demand for Financial Security in Retirement:With approximately 65% of Omani citizens expressing concerns about financial security in retirement, the demand for reverse mortgages is on the rise. Many retirees are looking for ways to maintain their lifestyle without depleting their savings. The average monthly pension in Oman is around OMR 600, which is often insufficient for comfortable living, thus increasing interest in reverse mortgage options to supplement income and ensure financial stability.

Market Challenges

• Lack of Awareness Among Consumers:Despite the potential benefits, awareness of reverse mortgage products remains low, with only 30% of the population familiar with them. This lack of understanding hinders market growth, as many potential customers are unaware of how reverse mortgages can provide financial support. Educational initiatives are necessary to inform consumers about the advantages and workings of these financial products to stimulate demand.
• Regulatory Hurdles:The reverse mortgage market in Oman faces significant regulatory challenges, including stringent licensing requirements for lenders. Currently, only 20 licensed institutions offer reverse mortgage products, limiting consumer access. Additionally, the lack of clear consumer protection laws creates uncertainty for both lenders and borrowers, which can deter investment and innovation in the market, stifling growth opportunities.

Oman Reverse Mortgage Market Future Outlook

The future of the Oman reverse mortgage market appears promising, driven by demographic shifts and increasing property values. As the aging population grows, financial institutions are likely to innovate and expand their offerings to meet the needs of retirees. Additionally, the integration of technology in financial services will enhance accessibility and streamline the application process, making reverse mortgages more attractive to potential borrowers. Increased government support could further bolster market growth, creating a more favorable environment for reverse mortgage products.

Market Opportunities

• Development of Innovative Financial Products:There is a significant opportunity for financial institutions to develop tailored reverse mortgage products that cater to the unique needs of Omani retirees. By offering flexible terms and conditions, lenders can attract a broader customer base, enhancing market penetration and customer satisfaction.
• Partnerships with Financial Institutions:Collaborations between banks and insurance companies can create comprehensive financial solutions for retirees. By bundling reverse mortgages with other financial products, such as life insurance or investment plans, institutions can provide holistic services that address the diverse needs of older adults, fostering trust and encouraging uptake.