Does Financial Competition AffectProfitability: A case study of Banks in Oman

Globally the banking sector is considered one of the most important and sensitive sectors of the economy. The banking sector makes a direct impact on an economy which can be seen reflected in the volume and quality of economic activities. On the contrary, the kind of financial services provided by commercial banks during a certain time cannot be an indicator to measure banks’ efficiency or performance. Through this study, researchers investigate the impact of financial competition on the profitability of banks operating in the Sultanate of Oman. To reach the proposed adjectives, two variables were conducted; one was an independent variable named “Financial Competition” and one was a dependent variable named “Bank Profitability”. Hence, it is necessary to analyze and know the market share of the bank to identify the extent of its ability to compete in the banking sector and then determine its efficiency in the financial market. These motivated researchers to analyze the impact of market share as an indicator of financial competition on the profitability of banks in the Sultanate. The research was conducted quantitative research using financial ratio analysis.The banking industry is a competitive environment in the financial domain, so most banks seek to be the best among their competitors.