Oman successfully adapts to Islamic finance

SALALAH, JULY 14 - Oman has successfully adapted to Islamic finance with a legal framework in force for this and some 82 channels already offering Islamic financial services. This was stated by Taher bin Salem al Omari, CEO of Central Bank of Oman, during the opening of the Salalah International Islamic Finance Conference on Sunday. “Since the start of Islamic banking in Oman we have achieved legal framework for this and there are 82 outlets which are offering Islamic services. The sultanate has the highest Islamic assets rates in and all the indicators for this are encouraging.” “We have secured deposits based on Islamic regulations and we are working hard to see initiatives in the future,” he said while admitting that the conference was an important initiative to achieve the set goals of Islamic banking. Islamic finance and economic diversification; contemporary issues in Islamic finance; and various types of Sukuk and their issuance procedures were highlights of the second edition of Salalah International Islamic Finance Conference. The conference attracted financial experts from many countries and establishments that deal in and deal with the concepts of Islamic finance. The three-day event of important financial significance, opened under the auspices of Shaikh Khalid bin Omar al Marhoon, Minister of Civil Service. The event organisers — Muscat Clearing and Depository Company in cooperation; Tawafuq Consultancy of Malaysia; and the Capital Market Authority (CMA) — brought reviewers for relevant sectors to discuss the issues of digital currencies, Takaful insurance, reinsurance, right governance of the Islamic financial institutions, and challenges being faced by the Islamic banks. The participants agreed that the sessions on Islamic finance addressed most of the issues prevailing in the sector and suggested the ‘Role of Islamic finance in building diversified and sustainable economy’, which also is the theme of the conference. The event, according to organisers, “is a continuous scientific platform specialised in Islamic finance that attracts leading speakers in all aspects of the Islamic finance to provide the best and latest studies, research and solutions related to the development of the sector and its products globally.” Many scientific papers were presented on the first day of the conference, while many others are lined up for Monday and Tuesday. Discussions and workshops have also been organised on the sidelines, as there are participants from all over the GCC countries and financial experts from Malaysia. Shaikh Ibrahim bin Nasir al Sawafi, Secretary at the Ifta Office of the Sultanate’s Ministry of Endowments and Religious Affairs and member of the Shariah Board of Bank Nizwa, gave one presentation on the ‘Current development of the Islamic finance in the Sultanate of Oman’ in which he touched upon various aspects including the challenges being faced by the sector. Dr Said bin Mubarak al Muharrami, Professor, Department of Economics and Finance, Collage of Economics and Political Science, Sultan Qaboos University, exhorted the Islamic finance institutions to play vital role in achieving the economic stability. Khalid Jamal al Kayed, CEO of Bank Nizwa, put stress on liquidity management in Islamic banks, while Dr Layachi Feddad, Senior Shariah Specialist at the Islamic Research and Training Institute (IRTI), Islamic Development Bank (IsDB), elucidated upon the role of Waqf in development of the finance sector. The participants remained focused on themes like ‘Islamic finance and economic diversification’ and ‘Contemporary issues in Islamic finance’ on day one of the conference, while Monday’s sessions would revolve around Sukuk and ‘Importance of the role of supporting organisations.’