Khalid Yousaf

Islamic finance to be demand-driven: KPMG

KPMG organised a seminar on Islamic Finance-Lessons Learnt from abroad & Challenges faced in Oman. The seminar was the latest in a series of Breakfast Seminars held by KPMG. At the seminar, a comparative analysis of Islamic Finance models which are implemented in different countries was made and pros and cons of the different approaches were discussed at length. A methodical approach for the development of Islamic Finance industry infrastructure was pointed out to be an optimal approach for best results in Oman.

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.

Banks in Oman to see cost benefit of offering Islamic banking services

According to KPMG Oman, conventional banks in Oman that do not offer any Islamic banking services will face the threat to lose numerous customers which will prefer a bank that offers Shari'ah-compliant financial services. Khalid Yousaf, Director of Islamic Finance Advisory Services, KPMG Oman, claims that opening an Islamic window operation is a safe strategy. As a reason he points out that it requires less capital while, at the same time, sharing a common cost base with additional business.

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