Oman's first issue of sovereign Islamic bonds has piqued a strong interest from potential investors.
Oman's first issue of sovereign Islamic bonds has piqued a strong interest from potential investors.
The 200 million rial ($520 million), five-year sukuk issue with an ijara format drew 22 orders totaling 336 million rials during the subscription period showing demand higher than supply. Bank Muscat and Standard Chartered were the issuers.
The second sukuk issue in sultanate is planned on 2016.
The first issue is a big step towards developing Oman's Islamic finance industry and gives the government new opportunities to raise money.
The issue will give the country's Islamic banks, insurance firms and funds an aiding tool to manage their money more efficiently.
Oman launched Islamic finance, which follows religious rules such as a ban on interest payments, later than other Gulf Arab countries, granting licenses to two sharia-compliant banks, Al Izz Islamic and Bank Nizwa, in 2013. Today, Islamic bank and Islamic banking windows has a 5% share of total banking assets.
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