Like the rest of the economy, Oman's financial services sector is dealing with the impact of low oil prices, weighing onthe industry's short-term growth and development prospects. The banking industry and stock market in particular are expected tosuffer the most, although credit growth has improved in the past year. Nonetheless, efforts to diversify and upgrade the country'sfinancial infrastructure should reap longer-term benefits, with strong potential for growth particularly in the relatively undevelopedinsurance and Islamic finance markets. The banking sector dominates the industry now, and will do over the forecast period, withthe strength of large local groups - alongside the government's 'Omanisation' programme - likely to remain a barrier to entry forforeign players. The asset management sector and insurance markets are relatively small and underdeveloped, while the stockmarket is far from realizing its potential.