First results on financial literacy in Oman
ISSN: 0307-4358
Article publication date: 28 March 2022
Issue publication date: 9 September 2022
Abstract
Purpose
This study aims to examine the financial literacy level among the Omani adults and investigate the determinants of financial literacy and its impact on savings and investment behavior.
Design/methodology/approach
The data were collected using a survey instrument adopted from Organisation for Economic Co-operation and Development (OECD) survey for financial literacy and composed of 310 individuals' responses. The authors used a multiple regression analysis to determine the impact of the socio-demographics variables on the financial literacy level.
Findings
The findings are three-fold: first, financial literacy score of Omanis is 10.5 out of 21, which is lower than OECD average. Interestingly, the attitude and behavior scores are in line with the OECD average. However, the knowledge score is drastically lower. Second, financial literacy level is found to be affected by age, gender and the monthly income. Third, individuals with a higher level of financial knowledge are more likely to have monthly savings and investment in stock and bond.
Research limitations/implications
The Gulf countries have started to modernize their economies. Governments that want to design effective economic reforms need to understand the financial skills of their citizens. The study may have implications for policymakers and financial educators in enhancing the financial knowledge programs for individuals.
Originality/value
The analysis reported in this study is unique because it provides the first systematic research on financial literacy in Oman. This paper contributes to the study of financial literacy from the perspective of emerging markets.
Keywords
Acknowledgements
The authors thank Greta Giese for assistance with the data collection and anonymous peer reviewers for comments that greatly improved the manuscript.
Citation
Mirzaei, M. and Buer, T. (2022), "First results on financial literacy in Oman", Managerial Finance, Vol. 48 No. 9/10, pp. 1413-1429. https://doi.org/10.1108/MF-09-2021-0456
Publisher
:Emerald Publishing Limited
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