MUSCAT: The total assets of the Islamic banking sector as a share of the combined banking industry in the Sultanate of Oman has grown to 16.2 per cent as of September 30, 2022, the Executive President of the Central Bank of Oman, Tahir Salim al Amri, stated here on Tuesday.
Delivering the keynote address at the 1st Islamic Banking and Finance Forum 2022, organised by Alam Al Iktisaad magazine, he said the Islamic banking sector has come a long way since it was legalized in 2012.
Officials, experts and specialists in finance, Islamic banking and Takaful insurance from the Sultanate of Oman and abroad participated in the daylong forum, which was held under the auspices of His Highness Sayyid Fahr bin Fatik Al Said.
Islamic banking is now offered by two integrated Islamic banks and five Islamic windows affiliated to conventional banks, said the CBO Executive President. The share of Islamic banking institutions amounted to 16.2 per cent of the total assets of the banking sector, and the market share of total financing amounted to 18.9 per cent, while this share of total deposits amounted to 18.1 per cen, he said.
The annual pretax profits of Islamic banking institutions recorded an increase of 18.3 per cent over the first nine months of the year. The integrated Islamic banks, with a total asset share of 41 per cent, are working to increase their market share, he said
Islamic banking institutions are aso working to expand their operations in various governorates of Oman. In addition to about 100 branches around the country, Islamic banks and windows also offer banking services via telephone and other electronic channels. They aso provide their products to all major economic sectors, including the corporate sector, the retail sector, and small and medium enterprises. Oman currently ranks 15th among the largest Islamic banking markets around the world in terms of assets and market share, Al Amri stated.
In order to develop the sector and support its sustainable growth, the Central Bank of Oman is in the process of strengthening the entire ecosystem for this sector, focusing on five main pillars: maintaining the growth of Islamic banking activity, enhancing financial stability, expanding financial inclusion, building capabilities, developing talents, and promoting and spreading awareness.
The CBO will soon start launching liquidity tools that are compatible with Islamic law for Islamic banking institutions, which will gradually cover a range of products such as providing the necessary liquidity for emergency financing as a last resort for lending, and profits on deposits with the Central Bank of Oman. — ONA
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