Meethaq is the first Islamic banking entity in the sultanate to obtain CMA’s approval for the first ever Sukuk issuance targeting retail investors in Oman.
Under the RO100mn programme, Meethaq proposes to issue sukuk in various tranches from time to time, to fund its growth plans and expansion of Islamic banking services across the sultanate.
The sukuk will be listed on the bond and sukuk market of the Muscat Securities Market (MSM), thus offering liquidity, according to a press release issued by Bank Muscat.
Sulaiman al Harthy, deputy chief executive officer – Islamic banking at Bank Muscat, said that Meethaq sukuk programme will transform the landscape of Islamic banking in Oman.
“The proposed Sharia’a compliant Meethaq sukuk offers a good investment opportunity to investors who are looking for stability, growth and long-term prosperity. Most sukuk issued till date in the sultanate have been targeted at institutional investors. Reiterating the core Islamic banking values, Meethaq believes in spreading wealth for the progress and prosperity for all and hence we plan to open the issuance of sukuk to the general public.”
“We thank the CMA for their continued support and applaud their active role in the development of Islamic capital market in Oman. We also thank the Central Bank of Oman for its support and guidance throughout this process,” Harthy said.
Within four years of operations, Meethaq has attained the leading position in the Islamic banking industry in Oman. Its Islamic financing receivables rose to RO855mn as of December 31, 2016 compared to RO635mn in the same period of 2015. Islamic banking customer deposits amounted to RO763mn as of December 31, 2016 compared to RO625mn reported for the same period in 2015.
The banking sector in Oman is witnessing the consolidation of Islamic banking and Meethaq is focused on redefining Islamic banking operations. Meethaq says it has adopted the best practices in Islamic banking and finance worldwide to combine a robust model which protects customers and compliments the Islamic banking industry.