March 2017 – Meethaq, the pioneer of Islamic banking in Oman from Bank Muscat,
has received the initial approval of the Capital Market Authority (CMA) to
launch the first RO 100 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 RO 100
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.
Sulaiman Al Harthy,
Deputy Chief Executive Officer – Islamic Banking, said: “Meethaq Sukuk will transform the landscape
of Islamic banking in Oman. The proposed Shari’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 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 RO 855
million as of 31 December 2016 compared to RO 635 million in the same period of
2015. Islamic banking customer deposits amounted to RO 763 million as of 31
December 2016 compared to RO 625 million reported for the same period in
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 Shari’a compliance
certification by the Shari’a Supervisory Board and is created in line with the
guidelines of the Central Bank of Oman.