Central Bank of Oman (CBO)

#Tax provisions related to Islamic finance transactions

The Central Bank of #Oman and the Capital Market Authority allow Islamic financial institutions to follow the standards issued by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI). AAIOFI’s financial accounting standards differ from International Financial Reporting Standards (IFRS). The differences between AAOIFI and IFRS standards have necessitated specific tax provisions for Islamic Finance Transactions (IFTs). To achieve this, a new chapter has been inserted in the income tax law of 2009. The chapter provides a framework to determine the tax liabilities of parties to an IFT. According to the new tax chapter, income includes any sum received in lieu of interest. The tax provisions also clarify that any partnerships designed solely to comply with Sharia will be disregarded. The latest tax law states that the financial statements can be prepared based on IFRS or any other similar standards approved by the Secretary General of Taxation (SGT). Institutions who have prepared their financial statements based on AAOIFI standards will have to reconcile their tax returns with the SGT.

New vistas of growth

An issuance of a full-fledged Islamic Banking Regulatory Framework (IBRF) by the Central Bank of Oman (CBO) is expected in the very near future. Therefore, Oman is ready to dive into Islamic finance. By the end of 2015 a growth in Islamic finance assets of 20% of the total banking and insurance assets in the Sultanate is expected. Investment in research and innovation is encouraged in order to meet the needs of the increasing market appetite.

Oman finalises Islamic Banking rules

At this year's Oman Investment Forum 2012 the executive president of the Central Bank of Oman (CBO) announced that the regulatory framework for Islamic Banking has been finalised. Also, amendments to the Banking Law are being worked on. The local banks Bank Nizwa and Al Izz Islamic Bank received initial approvals to practice Islamic banking.

Read more on: http://www.zawya.com/story/Oman_finalises_Islamic_Banking_rules-GN_09102...

CBO formulating standards for Islamic banking sector

Central Bank of Oman is in the action of composing a central national committee for determining the legal regulations and standards for Islamic banking in the country.
H E Hamoud al Zadjali, CBO executive president, stated that coordination with Grand Mufti's Office has already begun. He added that the bank will pursue efforts for crystallising the Islamic banking sector within a legal regulatory environment.

Islamic banking has become a reality

Hamood bin Sangour al Zadjali, Executive President of the Central Bank of Oman (CBO), stated that a team of experts is analyzing the legislative requirements to bring forward integrated legislation for Islamic banking and make necessary adjustments to the provisions of the current banking law.
He added the fact that the introduction of Islamic banks in the country has become a reality since the issuance of approval by His Majesty for the practice of Islamic banking in the Sultanate to the CBO.

Oman: Green light for Islamic Financial Services

THE Omani government has embraced its doors to Islamic banking.
At the end of May, the Central Bank of Oman (CBO)’s board of governors had agreed upon the legislation for the establishment of sharia-compliant institutions and Islamic branches in conventional banks. The CBO also approved afterwards the creation of Bank Nizwa, which will be the first Islamic institution operating in the Sultanate.

Omani banks need expertise to deal with Islamic banking, say experts

Central Bank of Oman (CBO) arranged a seminar on Islamic banking in collaboration with Ernst & Young, Bahrain.
Speakers at the seminar were worried that the growth prospects for the banking sector would increase by 20% over the next decade, especially since the Islamic banking system was less affected by the recent global financial crisis compared to conventional banks.
The seminar was attended by a large number of chief executives and officials of commercial banks operating in the Sultanate.

Oman Heralds the Dawn of a New Era with the Introduction of Islamic Financing

Majesty Sultan Qaboos approved the creation of a new Islamic bank as well as the ability of conventional banks to open branches dedicated to Islamic financing. There has been multiple desires within the Omani and international community to do business in Oman in a Shari'ah compliant way. The announcement is seen as a significant milestone in promoting interstate investment and financing by the business community of Oman and the GCC member countries.
This development is important because a series of guidelines to be released by the Central Bank of Oman (CBO), outlining the change in policy towards Islamic financing is expected. This development will enable both local and international players to tap into new business opportunities.

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