Oman

Bank Nizwa Discusses Growth of Islamic Finace With Local Treasury Dealers and Financial Institutions

Oman's Bank Nizwa recently hosted a special dinner event for local Treasury Dealers and Financial Institution managers. With over 60 guests the gathering was a networking opportunity for industry professionals to share views and discuss the latest trends of Islamic finance. Islamic banking in Oman has shown robust growth with Islamic banking entities providing financing to a record of RO 4 billion by the end of 2019, a growth of 11%. Since its initiation in December 2012, Islamic banking now constitutes 13.9% of the overall Oman banking system assets. Bank Nizwa has been organizing such events to clients with other participant banks and financial institutions on a variety of important topics. The bank has partnered with IFN and Takaful Oman to raise awareness over Islamic finance services by organizing specialized forums and seminars across Oman.

$26mln Islamic financing for #Oman copper-gold project

The Omani-Australian partnership Al Hadeetha Resources has secured funding to the tune of RO 10 million from Alizz Islamic Bank, which will support the financing of the formers copper-gold project. Australian-based mining firm Alara Resources is a majority investor in the project, which centres on the commercialization of an estimated 16 million tons of copper. These new financing arrangements signify another key milestone for the flagship Al Hadeetha Copper-Gold project in Oman. The funds will be used to procure major equipment for the copper processing plant at Washihi. Meanwhile, Al Hadeetha Resources has named Chinese state-owned enterprise China National Geological & Mining Corporation (CGM) as its Engineering Procurement Construction contractor. The project is expected to come into operation by Q1 2021.

Alizz-OAB #merger to provide customers with better services

The upcoming proposed merger between Alizz Islamic Bank and Oman Arab Bank (OAB) will provide customers with better services and more outlets. Al Yusr Islamic Banking, Oman Arab Bank’s Islamic window with all its branches and staff will become part of Alizz Islamic, which will remain as a fully licensed Islamic bank. Under this merger, Alizz Islamic Bank will be fully owned under Oman Arab Bank and will see the former continue to operate as an Islamic bank, with its services available to all existing customers, as well as OAB customers. The latter, however, will continue to function as a conventional bank.

Alizz Islamic Bank approves share swap for proposed merger with OAB

Alizz Islamic Bank’s Board of Directors has approved a share swap ratio for its proposed merger with Oman Arab Bank (OAB). The share swap ratio is around 81%: 19% for the shareholders of OAB and Alizz Islamic Bank respectively. The proposed merger and the indicative swap ration will remain subject to the approval of the shareholders. On completion of the merger, Alizz Islamic Bank will continue to operate as a dedicated Islamic banking franchise with management autonomy.

#Oman hires local banks for domestic #sukuk programme

Oman has hired local lenders Bank Muscat, Bank Nizwa and Alizz Islamic Bank to set up a sukuk issuance programme. It plans to issue five-year and seven-year Omani rial denominated sukuk, which will be open for subscriptions starting from Monday until Dec. 8.

#Oman to introduce bankruptcy and insolvency law in July 2020

Oman’s Ministry of Commerce and Industry said that the Sultanate’s new bankruptcy and insolvency law will come into effect from July 2020 and it will help companies to get out of the financial turmoil. The bankruptcy law allows the debtor to request a protective settlement if their financial business is disturbed which would lead to suspension of payment of debts. Heirs to the business may apply for protective reconciliation if they decide to continue trading. The debtor continues to manage his funds during the implementation phase of the restructuring plan and remains responsible for any obligations arising prior to or after the date of the adoption of the restructuring plan. Similarly, the bankruptcy law grants the right of every trader to file for bankruptcy, in case they stop paying their commercial debts following the disruption of business activities. A bankruptcy case shall not arise except by a court ruling.

Al Madina #Takaful names new CEO

#Oman's Al Madina Takaful announced the appointment of Usama Al Barwani as chief executive officer (CEO). Al Barwani was the acting CEO. He was one of the key people involved in transforming the company from a traditional insurance company into Oman’s first takaful insurance company. With a strong track-record of success, the company was recently awarded the Best Arab Company in the insurance category and he was also the recipient of the Best Arabian 100 CEO Award. Al Barwani has a degree in Strategic Management and Leadership ED (CMI) and has a Post Graduate Diploma in HRM in Information System Management and Education (CABA, Canada).

CMA approves Golden Group's RO200mn #sukuk issuance

Oman's Capital Market Authority (CMA) has recently approved a plan by Golden Group to issue sukuk worth OMR200 million. The sukuk will be issued in different tranches and the first issuance will be for OMR50 million by way of a private placement. The first issuance is with a tenor of five years, it matures in 2022, and has a profit rate of 6.5%.

Mazoon Electricity raises $500m from debut #sukuk issue

#Oman's Mazoon Electricity Company successfully priced its debut $500 million 10-year Sukuk offering. The Sharia-compliant Ijara structure was adopted for issue of the Sukuk Certificates and the profit rate was set 5.20%. The final order book had $5 billion from 300 orders, representing more than 10 times oversubscription. The final order book distribution by geography comprised of 47% from the Mena region, 17% Asian investors, 23% from European investors and 13% from US investors. The transaction marks the first international corporate Sukuk issue out of the Sultanate. The issuance is rated Baa2 (Negative) by Moody’s and BBB (Negative) by Fitch. A comprehensive global roadshow was conducted in Asia, UAE, London, Boston and New York. Mazoon CEO Zahir Abdulla Al Abri attributes the success of the Sukuk to the regulatory mechanism, support of the Government and consistent growth of the company.

Mazoon #Sukuk receives Fitch rating

Fitch Ratings has assigned Mazoon Electricity Company's Sukuk an expected rating of 'BBB'. The expected rating is in line with Mazoon Electricity’s Issuer Default Rating (IDR) of 'BBB', which has a negative outlook. Mazoon Assets Company’s is the issuer of the certificates and trustee and is a closed joint stock company in accordance with the laws of the Sultanate. The trustee has been incorporated solely for the purpose of participating in the transactions contemplated by the transaction documents. Earlier, Moody’s Investors Service assigned a Baa2 rating to Mazoon’s Sukuk certificates. The outlook on all ratings is negative.

#Mergers among smaller Islamic banking industry likely in GCC

There are several rumors about possible mergers of the smaller Islamic banks in the GCC region. According to UCapital, the relatively small size of Islamic banks is one of the compelling reasons for them to consider consolidation. However there is no compelling reason for a big number of regional banks to rush into merger deals. Banks across the region are facing pressure on profitability and tighter liquidity. The UAE, Bahrain and Oman would benefit from consolidation as many banks in these countries lack sufficient scale. A proposed merger of Kuwait Finance House and Ahli United Bank is expected to result in second biggest Islamic Bank in the GCC. Merger of Qatari banks Masraf Al Rayan, Barwa Bank and International Bank of Qatar which was announced last year is progressing and is expected to complete by end of the year.

Here’s How #Oman Is Helping Young Omanis Become Future Investors

At the beginning of the new school year, Meethaq Islamic Bank along with the Ministry of Education and Injaz Oman has started a financial literacy program called Little Investor. It covers over 4,000 students in Muscat, Batinah, and Dhofar. The aim of the initiative is to broaden the early financial education among Oman’s kids, to help them create healthy savings habits and to motivate them to develop their entrepreneurial skills. As an example of a successful public-private partnership, the initiative aims to unite the nation and make the people give back to their country. The four pillars of the program include financial literacy, sustainable tourism, green environment and enriched lifestyle. Injaz Oman is a non-profit organization working towards improving young people's leadership and entrepreneurial skills. Meethaq Bank confirmed it would stick to its social responsibility initiatives and would keep investing in the sustainable development of Oman.

MSM okays 35 Sharia compliant firms

Muscat Securities Market (MSM) adopted a list of Sharia compliant companies for the second quarter of 2017. The list of companies includes 35 public shareholding companies: Al Saffa Food, Al Anwar Ceramic Tiles, Al Izz Islamic Bank, Al Jazeera Services, Al Kamil Power, Al Madina Takaful, Al Maha Ceramics, Bank Nizwa, Computer Stationery Industry, Dhofar Beverages and Food Stuff, Gulf International Chemicals, Gulf Mushrooms Products, Gulf Quarries, Majan Glass, Muscat Gases, Muscat Thread Mills, National Biscuit Industries, National Real Estate Development, Oman Cables Industry, Oman Cement, Oman Fisheries, Oman Flour Mills, Oman International Marketing, Oman Packaging, Oman Refreshments, Omani Telecommunications, Ooredoo, Port Services Corporation, Raysut Cement, Salalah Port Services, Shell Oman Marketing, Takaful Oman Insurance, United Power, and Voltamp Energy. The list is reviewed every three months by adding standards-compliant companies and eliminating those that lost their eligibility.

#Bank #Nizwa #launches Sharia-compliant #wealth #management service

Oman‘s Bank Nizwa just launched its new wealth management services in order to provide high net worth clients with the most effective Islamic financial solutions to grow funds. The banks customers will have access to a full range of tailored products and services to cater to their exclusive needs, amongst them direct access to a relationship manager, Mudaraba Investment Options, and other value-added benefits.

Islamic finance overcomes teething problems in #Oman

According to a recent report issued by the Central Bank of Oman (CBO), the Islamic banking industry is growing at a faster rate than conventional banking, with Islamic banking assets up more than 62% year on year. Total assets held by Islamic banks and Islamic banking windows in February 2017 amounted to 3.27 billion Omani riyals (Dh31.2 billion), compared to 2.43 billion riyals a year earlier. This took Islamic banking’s market share from 5.1% in 2015 to 10.8% by February 2017. Islamic banking has a sizeable market share of more than 25% in the GCC. Saudi Arabia dominates the region with an Islamic banking market share of 51.2% in terms of total banking assets, followed by Kuwait at 45.2%. In UAE, Qatar and Bahrain Islamic banks’ market share stood between 20-30% of gross assets. In Oman, within a span of four years from introduction, the Islamic banking segment has reached OMR 3.07 billion in gross assets with a market share of 10.8% as of February 2017. The two main players in Oman are Bank Nizwa (BKNZ) and Alizz Islamic Bank (BKIZ).

BRIEF-Al Izz Islamic Bank expresses interest in #merger with United Finance

Alizz Islamic Bank has expressed interest in the possibility of strategic merger with United Finance subject to conducting due diligence. No legally binding commitment has been made and the transaction remains subject to approval by the regulators and other stakeholders.

Oman's $2bn international #sukuk oversubscribed more than three times

Oman's inaugural US2bn international sukuk issuance witnessed a strong investor interest with an orderbook of US6.9bn and over 300 participating accounts. Oman entered the international public sukuk markets via a US2bn seven year sukuk issuance on May 23. The current sukuk follows a US5bn multi-tranche bond priced earlier this year. According to a press release, the final order book represented an oversubscription of nearly three times. The issuance was coordinated by a lead manager group comprising of alizz islamic bank, Citi, Dubai Islamic Bank, Gulf International Bank, JP Morgan, HSBC and Standard Chartered Bank. With this issuance the sultanate has now met significant portion of the funding requirements tied to its anticipated budget deficit for 2017.

#Oman's Islamic banking assets reach RO3.3bn

Total assets of Islamic banks and windows in Oman reached to RO3.3bn at the end of March 2017. This accounts for 10.8% of total banking system assets in the country. According to Central Bank of Oman (CBO) statistics, Islamic banking entities provided total financing of RO2.6bn as at the end of March 2017 compared to RO1.9bn a year ago. Total deposits held with Islamic banks and windows also registered a strong growth to reach RO2.4bn in March 2017 from RO1.7bn in March 2016. The statistical bulletin said the financial position of the banks in Oman in terms of asset quality, provision coverage, capital adequacy and profitability remained sound. The gross non-performing loans as a proportion of total loans and advances stood at 2.1% at the end of December 2016. Private sector deposits, which accounted for 66.1% of total deposits with conventional banks, increased by 4.6% to RO12.6bn in March 2017 from RO12bn a year ago.

#Oman tightens price on $2bn #sukuk amid rush of orders

Oman's $2bn sukuk sale lured orders for more than three times the issue size. The sultanate set final terms on its seven year sukuk at 235 basis points over the mid-swap rate, from initial guidance of about 270 basis points. Landesbank Berlin Investor Lutz Roehmeyer said there was a good demand and now a rush to get an allocation with accepting even less yield. Alizz islamic bank, Citigroup, Dubai Islamic Bank, Gulf International Bank, HSBC Holdings, JPMorgan Chase and Standard Chartered are managing the deal. The country's last foray into international debt markets was a $5bn three part offering of dollar bonds in March.

#Oman starts marketing seven-year US dollar #sukuk

The Sultanate of Oman has started marketing a seven-year US dollar benchmark-sized sukuk offering at 270bp area over mid-swaps. Books are open for pricing via Alizz Islamic Bank, Citigroup, Dubai Islamic Bank, Gulf International Bank, HSBC, JP Morgan and Standard Chartered. The sovereign had signalled the possibility of an additional 12-year sukuk in its mandate. Expected issue ratings are Baa1 by Moody's and BBB by Fitch.

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