IslamicFinance.de

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%.

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.

Alizz islamic bank recently celebrated the launch of the Tharwa Wealth Management Segment. Tharwa offers an array of financial services led by a team of seasoned relationship managers. Tharwa customers benefit from a selection of exclusive privileges including access to special discounts on travel, accommodation, restaurants, entertainment and various VIP services. Furthermore, Tharwa customers can enjoy the privacy of the Tharwa lounges in conducting their banking transactions, as well as the MasterCard World Credit Card. Tharwa customers also have the flexibility to manage their money through the Izdihar sweep savings account, which adheres to the Islamic principle of unrestricted Mudarabah.

#Oman is preparing an international bond sale, as the country seeks to plug a budget deficit caused by low oil prices. The sultanate has sent invitations to banks to arrange the sale of a dollar or Islamic bond and responses are due this week. A fresh sale would be the latest in a series of issues by the oil-producing state. The sultanate sold US$2.5bn worth of bonds in June last year and tapped the bonds for an additional US$1.5bn in September. It was reported to have raised US$1bn from the international loan market last January and will get RO600mn from local debt in 2017. Oman is also seeking to reduce expenditure and from this month will impose new tariffs on its biggest electricity consumers. The state’s budget deficit is estimated by the International Monetary Fund to narrow to 10.3% of gross domestic product this year, from 13.5% in 2016.

Helped by growing awareness of Sharia’a-compliant banking services and increasing number of branches, the Islamic banking sector in the sultanate recorded robust growth during the first half of 2015. The combined assets of the sector surged 64 per cent to RO1.83bn as of June 30, 2015 against RO1.11bn a year ago. Islamic banking now accounts for 6.3 per cent of the total banking assets in Oman. Total financing by Islamic banks and windows jumped by 85 per cent to RO1.38bn from RO745mn. Oman's Islamic banking sector comprises two fully-fledged Islamic banks (Bank Nizwa and alizz islamic bank) and six Islamic banking windows of locally incorporated commercial banks.

Alizz islamic bank has begun its local community engagement in Dakhliyah governorate with generous support towards Al Noor Association in Burkat al Mooz. Salaam bin Said al Shaksy, chief executive officer of alizz islamic bank and other senior executives from the bank planned a surprise visit to the association after the successful launch of alizz islamic bank’s official launch of Nizwa Branch in Firq. The association serves the interest of blind and visually impaired in social, economic, welfare, education, health, training, placement and teaching of brail. The centre in Burkat al Mooz represents interests of the blind covering the Dakhliyah region.

Central Bank of Oman's (CBO) board of governors has made a revision of the legal framework of Oman's banking system. The goal of the revision is to implement Islamic banking activities in the sultanate. In a recent statement, the board made its decision to introduce amendments to the existing banking law concerning Islamic banking public. The issued last week Royal Decree made amendments to provisions of the banking law in order to allow for the inclusion of Islamic banking as a licensed banking activity. Specialized banks as well as independent windows at existing commercial banks can be used for this purpose.