Islamic finance poised for growth boasting a unique model in Oman
Times News Service
MUSCAT: In line with its strategy to provide access to Islamic finance, banking and investment for all, Bank Nizwa CEO Khalid Al Kayed highlighted the prospects for Islamic finance to grow in Oman supported by the unique model adopted in the Sultanate.
As the largest and fastest growing full-fledged Islamic Bank in the Sultanate, Bank Nizwa is leading the sector’s growth by diversifying its portfolio into a multitude of industries. The bank’s investment portfolio is now divided 5050 between retail and wholesale banking. Since inception in 2013, Bank Nizwa has been the go-to reference for Islamic finance taking the lead in raising awareness about this novel concept and the benefits it offers to both individuals and corporations.
According to Thomson Reuters’ projections, Islamic finance assets are projected to grow to $3.2 trillion by 2020, with Islamic banking reaching $2.6 trillion globally.
The Bank Nizwa CEO emphasised the fact that the Islamic finance sector in Oman has been punching above its weight since introduced to the market.
Al Kayed said, “The Oman model when it comes to Islamic finance has its own character when compared to even more experienced markets. The Central Bank of Oman (CBO) and other regulatory authorities have been enabling this sector to grow with a realistic and balanced approach that takes into account the chal- lenges and opportunities alike.” “A key strong proposition for the industry in Oman is the standardisation of Sharia-compliant solutions offered in the market in line with the requirements of the National Sharia Board,” he added.
During 2018, the bank was able to lead the segment’s market share, successfully demonstrating strong resilience and performance across all its departments. It recorded the highest growth rate in the Sultanate’s banking industry with OMR7.5 million in net profit representing a 98 per cent growth after tax for the period ended on December 31, 2018. In addition, the bank’s total assets grew by 25 per cent to reach OMR873 million compared to OMR697 million last year, while its total customer deposit portfolio reached OMR712 million achieving a growth of 35 per cent year-on-year.
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