Bank Nizwa signs pact with Raysut Cement Co.
The agreement is part of Bank Nizwa’s commitment to contribute to Oman’s economic diversification strategy
MUSCAT: Bank Nizwa, Oman’s Islamic financial institution, signed an OMR 19.5 million agreement for Sharia-compliant financing facilities with Raysut Cement Company (RCC), the Sultanate’s largest cement manufacturer.
The facilities consist of longterm financing of OMR 12 million, working capital of OMR 3 million to RCC at Salalah and OMR 4.5 million for construction and expansion of Sohar Cement Factory at Sohar. The agreement is part of Bank Nizwa’s commitment to contribute to Oman’s economic diversification strategy and feed into private and public sectors’ growth with focus on the manufacturing industry.
The agreement was signed by Sheikh Khalid Abdullah Al Khalili, Chairman of Bank Nizwa, and Sheikh Abdul Hafidh Salim Al Barami, Vice Chairman of RCC. The signing was also attended by Bank Nizwa CEO, Khalid Al Kayed, General Manager of Wholesale Banking, R. Narasimhan and senior team members from both parties. Bank Nizwa will offer RCC and its group of companies’ access to its full suite of Sharia-compliant products and services. These include Sharia-compliant solutions for the employees, Islamic trade finance products, vendors’ support and the entire range of treasury and cash management products.
“Raysut Cement Company is utilising our Islamic financing solutions in a clear indication on how Islamic banking can spur more private sector growth in manufacturing and across a multitude of other industries, contributing to Oman’s economic diversification. We aim to always be the trusted partner of choice for businesses looking for a competitive alternative to conventional financing solutions,” said Sheikh Khalid Abdullah Al Khalili, Chairman of Bank Nizwa. “With our successful track record over the past six years of raising awareness over the benefits of Islamic finance, corporate customers have been increasingly exploring and utilising Sharia-compliant products and services.”
Raysut Cement Company is one of the reputed cement companies in Oman. The company is based in Salalah and holds a 40% market share in the market. Sheikh Abdul Hafidh Salim Al Barami, Vice Chairman of RCC, said: “Bank Nizwa and Raysut Cement Company are two powerhouses in their respective sectors. We are confident this collaboration will positively impact our businesses. The secured Sharia-compliant banking facilities will set us for stronger and rapid growth and help us solidify our position as the largest cement manufacturer in the Sultanate.” He added, “Islamic finance is becoming a competitive solution in the marketplace and very appealing given the fact that it substantially raises the share of equity and profit-loss-sharing.”
Since inception, Bank Nizwa has been at the forefront of Islamic banking and finance in the Sultanate, providing innovative corporate and retail Shari’a-compliant banking and finance propositions. Contributing to the economic diversification efforts led by the Omani Government, the bank expanded its services to cater to SMEs, corporate and commercial customers, while providing tailored services across diverse local market segments and industries.