Speaking at the Islamic Finance News (IFN) Forum Oman 2017 organised by RFI Foundation and Al Busaidy, Mansoor Jamal & Co at Grand Millennium Hotel on Tuesday, H E Hamoud Sangour al Zadjali, executive president of the Central Bank of Oman, said the successful launch of Oman’s first government sukuk paved the way for future issuances. “Sukuk issuances will help to provide liquidity management tool for Islamic banking sector, while having a positive impact on Oman’s capital market.”
Meethaq, the Islamic banking window of Bank Muscat, last week received the initial approval from the CMA to launch the first RO100mn sukuk programme.
H E Abdullah al Salmi, executive president of the CMA, noted that the value of Islamic capital market products reached RO3.91bn as of June 30, 2016. This value of Sharia’a-compliant capital market products represents 22.64 per cent of Oman’s total capital market value, he said.
The CMA is also currently in the midst of issuing a dedicated regulation for the Real Estate Investment Trust (REIT) funds to cater for both conventional and Sharia’a-compliant REITs.
“The development of REITs industry has been approved by the Oman government as one of the priority projects under Tanfeedh programme to look at the alternative financing for economic development and attracting foreign investments into Oman,” H E Salmi said.
During the panel discussion on Tuesday, many panelists were of the opinion that the RO14bn investment slated to be raised from the private sector for the Tanfeedh programme would generate many more opportunities for Sharia’a-compliant financing in the years ahead, giving a further boost to the growing market.