• The main objectives of protecting bank deposits in Oman include encouraging savings, enhancing confidence in the banking sector, and minimizing systemic risks.
• The Bank Deposits Protection Law provides comprehensive protection for specific deposits, ensuring prompt compensation for depositors, particularly those with small savings.
•  It establishes two independent funds for Islamic and conventional banks, with management adhering to respective requirements, including Sharia compliance for Islamic funds.
• It applies to all banks licensed by the Central Bank of Oman, covering both conventional and Islamic banks. It automatically protects eligible deposits without requiring depositor registration and charges no fees. The law sets a maximum compensation of OMR 20,000 for deposits exceeding this amount, while deposits of OMR 20,000 or less are fully compensated. It covers various deposit types, including savings, current accounts, and government deposits. If a depositor has multiple accounts in the same bank, their total deposits are collected for compensation calculation. However, deposits in different banks are treated separately, allowing compensation up to OMR 20,000 per bank.
• Joint accounts are compensated based on individual shares.
• The Central Bank of Oman (CBO) supervises the system, ensuring timely compensation and handling depositor complaints.

The amendment to the previous Banking Deposits Insurance Scheme followed changes to the Banking Law under Royal Decree No. (114) of 2000 in Oman, allowing Islamic banking practices. This led to the licensing of Islamic banks and the establishment of Islamic banking windows in conventional banks. Consequently, there was a need to protect Islamic deposits to enhance public confidence and ensure fair competition with conventional banks, whose deposits were already protected.