Dubai: Islamic banking in Oman is growing at a faster rate than conventional banking segment, with Islamic banking assets up more than 62 per cent year on year, according to a recent report issued by the Central Bank of Oman (CBO).
Total assets held by Islamic banks and the Islamic banking windows of conventional lenders in February 2017 amounted to 3.27 billion Omani riyals (Dh31.2 billion), compared to 2.43 billion riyals a year earlier. This took the Islamic banking’s market share from 5.1 per cent of the banking system’s overall assets in 2015 to 10.8 per cent by February 2017.
Banking sector analysts say teething problems of newly established Islamic banks appear to be over and they are on a strong growth trajectory.“We expect both Bank Nizwa (BKNZ) and 14 per cent Alizz Islamic Bank (BKIZ) to curtail any upward pressure on their costs in a tight operating environment, especially now that their initial investments in infrastructure an human resource development appear to be over,” said Hettish Karmani, Head of Research of U Capital.
Analysts expect these banks to be able to sequentially bring their operating cost-to-income ratio down to the likes of other Omani banks to about 40 per cent, resulting in operating profits to increase at a compounded annual growth rate (CAGR) of 10 per cent for BKNZ and 14 per cent ABKIZ during the forecast period (2017-2021).
Originally published on www.gulfnews.com
Muscat: Alizz Islamic Bank has expressed an interest in a merger with the United Finance Company, which is subject to due diligence of the latter institution.
International law firm Clifford Chance has advised the Government of the Sultanate of Oman on its return to the international debt capital markets with the establishment of an unlimited sukuk-al-ijara trust certificate issuance programme and a drawdown of $2 billion trust certificates due 2024 thereunder.
Muscat: Alizz Islamic Bank signed an agreement with Oman Oil Refineries and Petroleum Industries Company (Orpic) to provide Islamic financing facilities for the construction of a petroleum coke (petcoke) storage facility at the company’s refinery complex in Sohar.
Meethaq Islamic financing receivables rose to OMR 902 million of 31 March 2017 compared to OMR 665 million in the same period of 2016. Islamic banking customer deposits amounted to OMR 780 million as of 31 March 2017 compared to OMR 678 million reported for the same period in 2016.
Oman plans to sell $2 billion of Islamic bonds this month as it seeks to trim a large budget deficit caused by lower oil revenue, Finance Minister Darwish Al Balushi said.
Muscat: Bank Muscat’s Meethaq Islamic financing receivables rose to OMR902 million, as of March 31, 2017, compared with the OMR665 million in the same period last year. Islamic banking customer deposits reached OMR780 million as of March 31, 2017, compared with OMR678 million reported for the same period in 2016.
Muscat – In line with its core values of supporting the community in the sultanate and developing employment opportunities for Omani youth, Sohar Islamic, Bank Sohar’s Islamic banking window, recently participated in the third Intercollegiate Career Fair.
Bank Nizwa announced the appointment of Dr. Mansour Ali Muhammad Alqudah as its new Head of Shari’a compliance. In his new role, Alqudah will be overseeing the bank’s implementation of Shari’a-compliant operations. He will also be working closely with the bank’s Shari’a Supervisory Board to streamline the most transparent practices across the bank’s portfolio of products and services.
Bank Nizwa launched the 2017 edition of its ‘Islamic Finance Knowledge Series’ with several workshops in the Governorates of Al Dhahirah, North Al Sharqiyah and South Al Sharqiyah as part of its longstanding dedication to share the benefits of Shari’ah-compliant banking with local communities. The bank reached out to a number of segments throughout the beginning of this year’s campaign, targeting public sector employees, students and faculty members of higher educational institutions.