Tuesday, October 15, 2024 | Rabi' ath-thani 11, 1446 H
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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Oman Islamic banking assets reach RO 7.8 billion

Abdulsalam bin Mohammed al Murshidi, President of the Oman Investment Authority, presided over the event.
Abdulsalam bin Mohammed al Murshidi, President of the Oman Investment Authority, presided over the event.
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MUSCAT: The first Islamic banking meeting held yesterday in Muscat provided an insightful review of the Islamic banking experience in Oman. The event, titled "Islamic Financial Transactions and Economic Stability," examined the sector’s development, Sharia standards, and the role of Islamic banks in fostering monetary stability and economic growth. Abdulsalam bin Mohammed al Murshidi, President of the Oman Investment Authority, presided over the event.


Rashid bin Zayed al Ghassani, Deputy CEO of the Supervision and Regulation Sector at the Central Bank of Oman (CBO), noted that Oman’s Islamic banking sector has shown remarkable growth since its inception in 2012. Islamic banking assets have expanded by over 11% annually, with total assets reaching RO 7.8 billion by June 2024, making up 18% of the total banking sector. Additionally, financing in the sector has increased to RO 6.4 billion, up 10.5% year-on-year, while deposits have grown by 15%.


Al Ghassani highlighted the sector's financial stability, noting a capital adequacy ratio nearing 16% and revenues exceeding RO 63 million by the end of 2023. With 100 branches across Oman, Islamic banks provide a wide range of services, including digital payment solutions.


Looking forward, a comprehensive strategic plan (2024-2030) has been approved to further develop the Islamic banking sector. This includes regulatory changes that will enhance growth and introduce services like Islamic finance and leasing for small and medium-sized enterprises (SMEs). Additionally, a framework is being prepared to allow conventional banks to convert some of their branches into Islamic ones.


Khalid al Kayed, CEO of Bank Nizwa, emphasized the growing market share of Islamic banks in Oman and the broader GCC. He noted that the Omani Islamic banking market saw an 88-point annual increase, reflecting the sector’s efficiency and its contribution to long-term financial stability.


The meeting also included a presentation by Haitham bin Salem al Salmi, CEO of Muscat Stock Exchange, on Islamic investments, focusing on Sukuk, Waqf funds, and Islamic stocks. He discussed the Shariah index, which measures the performance of companies compliant with Islamic principles. — ONA


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