Primed for Growth

AMJ partnered with IFN on the inaugural Oman Seminar and Dialogue 2016 to discuss the future of Islamic Finance in Oman and its role in diversifying the economy of the country.

Al Busaidy Mansoor Jamal & Co. (AMJ) partnered the IFN, a leading online industry journal, in organising the inaugural Islamic Finance News Oman Seminar and Dialogue 2016 at the Grand Hyatt, Muscat on March 8, 2016. The event brought together around 170 industry leaders, banks, investors, issuers, legal experts and other key stakeholders in the Islamic finance industry in Oman and the UAE. 

Strongly supported by the regulators, the seminar opened with a keynote address from His Excellency Hamoud Sangour Al Zadjali, the executive president of the Central Bank of Oman (CBO), in which he highlighted the successes of Oman’s Islamic financial institutions in achieving, within a short span of three years, OMR2.25 billion (USD582.25 billion) in gross assets and a market share of 7.75 per cent as of December 2015. Al Zadjali, who delivered the key note address, said two full-fledged Islamic banks and six Islamic banking windows have been established, which have a combined network of 60 branches spread across the country and eight more are in the process of being established. Overall, Islamic banks and window operations are expected to ramp up market share to 10 per cent of the banking industry by 2018.

  
The CBO chief noted that the Sultanate, being a late entrant, had benefited immensely from the experience of other countries. “The hallmarks of our approach have been adopting of accounting standards of Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) and guidance by Islamic Financial Services Board (IFSB) standards in the beginning.”He went on to emphasise the importance of encouraging and supporting the industry and removing obstacles to growth without sacrificing the need for rigorous Islamic financial prudence; and highlighted the healthy growth of the takaful sector as well as his hope that growth in sukuk issuance would enable the private sector to play “a greater role in economic diversification”. He concluded with the need for “a greater emphasis on financial inclusion and SME empowerment”.

Featuring a series of panel discussions, case studies and presentations, the event highlighted the opportunities available in the fast-growing Omani Islamic market for both capital-raising and investment. The first panel discussion, entitled “Islamic Banking and Finance in Oman: An Industry Roadmap,” focused on Oman’s changing financial landscape and its outlook within five years featured His Excellency Abdullah Salim Al-Salmi, executive president of the CMA among other industry experts. Al-Salmi expressed optimism over the progress made in the Islamic finance segment. Already the two takaful institutions licensed in 2013, have acquired a market share of 8.7 per cent. “This is a starting point and the future is positive,” added Al Salmi, noting that Oman’s long-awaited Takaful Insurance Law had been issued two days earlier.

AMJ’s managing partner, Mansoor took part in a panel discussion on recent developments that will shape the Omani Islamic Capital Markets. His role advising on Islamic finance regulatory frameworks, licensing of banks, takaful operators and Oman’s sukuk issuances enabled him to contribute valuable insights into the regulatory and legal considerations in structuring transactions and how current obstacles can be sidestepped. Senior associate, Asad Qayyum, participated in an 'invitation only' closed afternoon session of experts to discuss a roadmap for the further expansion and development of industry in Oman.

Summarising the event, Malik commented, "This groundbreaking seminar provided an excellent opportunity for market players and regulators to exchange ideas and best practices. It also highlighted the need for reform and balanced regulation in order to maintain growth and  to support a strategic and implementable roadmap for the future.His Excellency Mohammed Jawad Hassan, the advisor to the Ministry of Finance and chairman of the Oman Government Sukuk Committee, during the Seminar confirmed plans to issue a second sovereign sukuk  by the second quarter of 2016.

For more information , contact bernadette.millard@amjoman.com