Muscat – Dhofar Islamic, the Islamic banking arm of BankDhofar, has announced the successful closing of its inaugural sukuk issuance under its newly established RO250mn Sukuk Al Musharaka Programme, marking a significant milestone in the institution’s expansion into Oman’s growing Islamic capital market landscape.

The first sukuk series, valued at RO5mn, has been privately placed. The sukuk will also be listed on the Muscat Stock Exchange, enhancing tradability, transparency and investor access in the secondary market, Dhofar Islamic said in a press statement.

It said the successful closing reflects growing investor confidence in Oman’s Islamic finance sector and increasing appetite for local-currency sukuk instruments offering stable medium-term returns.

The programme is expected to provide Dhofar Islamic with greater flexibility in accessing long-term funding, while supporting future financing growth and balance sheet optimisation.

The successful debut issuance is set to pave the way for additional sukuk series in the future, depending on market conditions and funding requirements, while further supporting the development of Oman’s domestic debt capital market.

Amor Said Mohamed al Amri, Chief Islamic Banking Officer, Dhofar Islamic, said, “The successful completion of our inaugural sukuk issuance under the Sukuk Al Musharaka Programme represents a major milestone for Dhofar Islamic and reflects the confidence that investors place in our Islamic banking platform and long-term growth strategy. It also underlines our commitment to delivering innovative Shariah-compliant investment solutions that contribute to the continued development of Oman’s Islamic finance ecosystem.”