IBAN rules for local and international transfers in Oman have changed: What you need to know

The Sultanate of Oman has announced that beginning July 1, 2025, the use of the International Bank Account Number (IBAN) will be mandatory for all domestic financial transactions. This change comes as part of the Central Bank of Oman’s efforts to enhance the efficiency, speed, and accuracy of financial operations within the country.

The mandate had already been implemented for international transfers earlier this year, and now it extends to transactions within Oman itself.

IBAN Requirement Extended to Domestic Transfers

The Central Bank of Oman had previously made IBAN compulsory for international transfers starting March 31, 2024, and the results have been positive.

According to a statement from the Central Bank of Oman, this move has already “significantly improved transaction accuracy, reduced errors, and accelerated processing times for both local and international bank transfers.”

Now, beginning July 1, 2025, all domestic financial transfers within Oman must include the IBAN. This means individuals and businesses making local payments between Omani banks will be required to use this standardized format.

In a key clarification, the Central Bank also confirmed that international transactions will still be accepted without an IBAN — a change from the previous requirement. This implies more flexibility for foreign entities transferring money into Oman.

Regional Banks Begin Issuing Guidance

The regulatory change has also prompted responses from financial institutions in neighboring countries. The Emirates NBD app, a major banking platform in the UAE, has started displaying an awareness message for users sending money to Oman.

The advisory on the app states:

"In line with new regulatory mandates, IBAN is now a mandatory requirement for all payments to Sultanate of Oman, starting from July 1, 2025."

To ensure compliance, Emirates NBD is urging customers to update beneficiary details. It added:

"Please delete and re-add your beneficiaries in Oman using their IBAN to avoid payment failures. Kindly note a cooling period of 4 hours will apply for newly added beneficiaries."

This practical advisory is a proactive step to avoid disruptions and failed transactions once the regulation comes into force.

What Is IBAN and Why It Matters

The International Bank Account Number (IBAN) is a globally standardized format for identifying bank accounts across countries. It’s designed to streamline cross-border payments and reduce the chance of errors.

Here’s what makes IBAN important:

• It includes country-specific codes (e.g., "AE" for the UAE or "OM" for Oman), check digits, and the traditional account number.
  
• It serves as a universal identifier, much like a postal code for bank accounts.
  
• It does not replace the local account number but works as an added layer for enhanced accuracy.

Before the implementation of the IBAN system, banking transactions especially international ones, were prone to delays and costly errors due to inconsistent formats and identifiers. Since its adoption in most of Europe, the Middle East, and parts of the Caribbean, IBAN has proven to be a reliable standard.

The Central Bank of Oman’s extension of the IBAN requirement to domestic transactions is expected to align the country further with global best practices, ensuring smoother and safer money transfers.