During his presentation, Dr Soubra said, “Islamic banks aim to stimulate development, generate economic value-added and significantly contribute to the lives of people within the parameters of Sharia’a Law.
“The Islamic finance framework is designed based on the Musharaka system whereby investment risks are shared and long term beneficial partnerships are established between the institution and the individual to achieve these goals.”
He went on to highlight the main differences between conventional and Islamic banking and how instead of collecting interest against commercial activity, Islamic banks provide funding appropriate through Sharia’a compliant instruments such as Murabaha, Ijara (leasing) and Istisna. The attendees expressed great interest in the different options available and shared key SME financing concerns based on personal experience.
Since its inception, Bank Nizwa has continuously created opportunities for dialogue with the community in order to understand and cater to their diverse needs.
As a result, the bank has witnessed steady growth in its customer-base, recording a remarkable 349 per cent surge in its financing portfolio, a 204 per cent growth in deposits, a 49 per cent increase in assets and 216 per cent increase in operating income over the last 12 months period ending September.
Originally published on www.muscatdaily.com/