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Economics, politics spur Islamic banking in Oman

Economics, politics spur Islamic banking in Oman

With its foray into Islamic Banking just this May, Oman could potentially take a big chunk out of the $1 trillion-industry. But will the global expertise be there?

September 15, 2011 1:40 by

…come in line with the rest of the region and allow Islamic finance,” said George Sanders, partner at international law firm SNR Denton in Muscat.

“We’ve come across transactions that were held up or modified because investors had been hoping to use Islamic finance and had to rethink the deal because Oman didn’t have it.”

Sanders said he expected large commercial financings to be the first Islamic deals in Oman, pending the opening of other Islamic banking services. Islamic bonds, or sukuk, have gained momentum in the region and could be a new source of funding for Omani companies.

Oman’s Capital Markets Authority “is in the process of coming up with new rules and regulations for (the sukuk) market”, said Yahya al-Jabri, executive president of the authority. “Beyond doubt, the sukuk plays a significant positive role in the development of the market.” (By Martina Fuchs and Shaheen Pasha)

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