Al-Omaniya Financial Services Company was established in 1997 by a group of 36 founders led by Bank Muscat to take over its local vehicle leasing operations. Demand for vehicles in the sultanate is estimated by Bank Muscat at 20,000-25,000 units a year worth RO 80 million ($208 million), with a growing trend.

About 60 per cent of vehicles are purchased on credit. Bank Muscat began auto financing in 1990 and by the end of 1996 had financed more than 8,000 vehicles.Al-Omaniya's competition comprises Muscat Finance Company, Oman Orix Leasing Company and United Finance Company.

In the period 16 January 1998-31 December 1998, the company recorded net profits of RO 622,165 ($1.6 million) on installment finance income of RO 2.3 million ($6 million). It had total assets at the end of the period of RO 15.

5 million ($40.2 million), of which RO 12.8 million ($33.2 million) was owed by installment finance debtors. Shareholders' equity was RO 3.3 million ($8.6 million). Figures for 1999 show that net installment income and net profit were down for the year.

Nevertheless, the firm is solidly profitable.