Bank Muscat's Meethaq gets approval for OMR100m Sukuk issue

Meethaq, the pioneer of Islamic banking in Oman from Bank Muscat, has received the initial approval from the Capital Market Authority (CMA) to launch the first OMR100 million Sukuk programme.

Meethaq is the first Islamic banking entity in the Sultanate to obtain CMA approval for the first ever Sukuk issuance targeting retail investors in Oman. 

Under the OMR100 million 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 Muscat Securities Market (MSM), thus offering liquidity, said a press release.

Sulaiman Al Harthy, deputy chief executive officer – Islamic Banking, said; “Meethaq Sukuk will transform the landscape of Islamic banking in Oman. The proposed Sharia 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 Meethaq Sukuk to the general public. We thank CMA for their continued support and applaud their active role in the development of Islamic capital market in Oman. We also thank CBO for its support and guidance throughout this process.”

Within just four years of operations, Meethaq has attained the leading position in the Islamic banking industry in Oman. Meethaq Islamic financing receivables rose to OMR855 million as of December 31, 2016 compared to OMR635 million in the same period of 2015. Islamic banking customer deposits amounted to OMR763 million as of December 31, 2016 compared to OMR625 million 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 in Oman. As the leading Islamic financial services provider in the Sultanate, Meethaq has many achievements contributing to the growth and development of the Sultanate’s economy.

Meethaq 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. Every Meethaq product goes through the process of Sharia compliance certification by the Sharia Supervisory Board and is created in line with the guidelines of the Central Bank of Oman.

Source :Times Of Oman