Towards the end of this month Bank Muscat is expected to raise OMR23-30 million, which is the first tranche of Meethaq’s OMR100 million-sukuk programme. Meethaq is Bank Muscat’s pioneer Islamic banking window in Oman. The bank has already received an initial approval from stock market regulator Capital Market Authority (CMA). Bank Muscat's Deputy CEO Sulaiman Al Harthy said the sukuk programme starts with a small amount, maybe OMR25-30 million to test the market and see the market appetite. Al Harthy also noted that this year, Islamic financial institutions are expected to grow at a similar rate as seen last year. Meethaq Islamic financing receivables rose to OMR855 million by end-December 2016, compared to OMR635 million in the same period in 2015.
Central Bank of Oman (CBO) has given its final approval to the Islamic banking arm of Bank Muscat - Meethaq - to start full-fledged operations. The starting date of the bank's operations is January 21st. Meethaq will begin functioning as a bank with 150-million-rial capital at its disposal. The money is intended to be used to boost growth opportunities. A full suite of regulated Islamic banking products will be offered.