Meethaq marks 5 year partnership in development of Oman's economy

Meethaq, the pioneer of Islamic banking in Oman from Bank Muscat, highlighted its successful five-year journey contributing to the country’s progress and development at a special media event on Tuesday.

Sulaiman al Harthy, deputy chief executive officer – Islamic banking at Bank Muscat, led the senior Meethaq officials present on the occasion at the country’s unique and first-of-its-kind solarpowered bank branch in Al Khoud.

Within five years of operations, Meethaq has consolidated its leadership position with over RO1bn in assets accounting for 33 per cent market share.

Speaking a the event, Harthy said, “In a short span of five years, Meethaq is proud to record notable achievements supporting the country’s economic development and progress of the people. In the context of economic diver- sification, the launch of Islamic banking operations has contributed to sustainable development in Oman. Meethaq is positioned to address the requirements of all segments, ensuring innovative banking service benefiting communities across the sultanate.”

Meethaq maintains the leadership position in the Islamic banking industry in Oman in terms of financing receivables, branch network, products and services, IT infrastructure and human resources. Meethaq financing receivables rose to RO1.06bn at the end of June 30, 2018 compared to RO915mn in the same period in 2017, registering an increase of 16.1 per cent.

Committed to the objective of a home for every family, Meethaq extended a total of RO475mn home finance till the end of July 2018.

As part of its focus to expand operations across the sultanate and offer world-class Islamic banking experience to cus- tomers, Meethaq has widened its state-of-the-art branch network to 20.

Harthy said, “Meethaq is immensely grateful to the regulatory authorities for their support and guidance during the past five years. Going forward, Meethaq is committed to exceeding the expectations in innovative Islamic banking products and services, working together for the success of the nation and the people.”

The Meethaq operations are managed by an experienced team, separate from conventional banking. The bank has invested in staff, systems and controls to ensure the service is delivered in a professional, segregated and fully Sharia’a-compliant manner. Meethaq has succeeded in equipping a niche segment of human resources to handle Islamic banking operations.

Harthy said, “The banking sector in Oman is witnessing the consolidation of Islamic banking and Meethaq is focused on redefining Islamic banking operations in Oman. Meethaq recognises the immense investment prospects and potential that Oman offers and is committed to supporting the strategic national initiative aimed at attracting investments in line with Oman's Vision 2040 economic blueprint.”

Meethaq has many achievements contributing to the growth and development of the sultanate’s economy. The notable finance facilities offered by Meethaq include the refinancing of RO78mn signed with Oman Shipping Co for its three large crude carriers. Meethaq took another major stride as Oman’s first and only Sharia’a-based aircraft financier to the national carrier Oman Air for acquiring its second Boeing 787 Dreamliner.

Aimed at enhancing in-country value and sustainable development, Meethaq extended project finance for Sebacic Oman setting up the world’s largest plant for sebacic acid. Supporting food security of the country under Tanfeedh initiatives, Meethaq extended RO50mn project finance to A’ Namaa Poultry setting up the biggest poultry project in Oman.

Meethaq and Hydrocarbon Finder E&P LLC (HCF) signed an Islamic project financing facility for the development of oil and gas fields in Block 7 of Oman operated by HCF.

Meethaq and Muscat National Development and Investment Co (ASAAS) signed term finance agreements with a total value of RO16mn for an upscale three star hotel in Muscat and a crew reporting terminal at the airport.

Meethaq is the first Islamic banking entity to obtain the Capital Market Authority's approval for a sukuk issuance targeting retail investors in Oman.

The Meethaq sukuk programme evoked overwhelming response to its maiden RO25mn issuance, which was oversubscribed and increased to RO44.6mn. The issue has an indicative profit rate of five per cent per annum with a tenure of five years. Under the RO100mn programme, Meethaq has the mandate to issue sukuk in various tranches from time to time, to fund its growth plans and expansion of Islamic banking services across the sultanate.