Abraj announces Sharia-compliant status

MUSCAT: Abraj Energy Services (Abraj), Oman’s leading oilfield services provider, recently celebrated its success in achieving Sharia compliance as per the rules prescribed by the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI).

The announcement came coinciding with the company’s general assembly meeting held on March 28, 2024 arising from a number of initiatives and conscious steps taken to reduce conventional debt to less than 30% of the company’s market capitalisation.

The announcement was made in the presence of delegates from MSX, the

Financial Services Authority, Abraj’s board and management, strategic stakeholders and media representatives.

This event highlighted Abraj’s commitment to upholding the highest standards to align with Sharia principles.

Eng Saif al Hamhami, CEO of Abraj Energy Services, stated that, “This achievement is a pivotal moment for Abraj, reflecting our steadfast commitment to lead from the front in the energy sector.

As we look into the future, we are excited about the opportunities this Sharia-compliant status will bring in, widening our investor base globally and contributing to our structured strategic growth.”

Ali bin Ahmed al Lawati, Assistant General Manager, Meethaq Corporate Banking from Bank Muscat, stated, “Meethaq has consistently remained at the forefront, making significant contributions to projects such as the ones carried out by Abraj Energy Services, which play a crucial role in Oman’s growing economy. This aligns with our vision to introduce Islamic Banking across all sectors and promote economic diversification within the country”.

In 2023, Abraj demonstrated positive financial performance, with total revenue reaching RO 144.3 million, a 5.3% increase from the previous year, and net profit standing at RO 16.6 million.

This financial growth is a testament to Abraj’s robust business model and operational excellence.