IB’s market share in Oman set to touch 10% by 2018

Muscat—Oman’s Islamic financial institutions are showing robust growth with the value of gross assets touching OMR2.25 billion by the end of 2015, accounting for a 7.45 per cent market share of the total banking industry, said Hamoud Sangour Al Zadjali, executive president of the Central Bank of Oman (CBO). Islamic banks and window operations are expected to ramp up this market share to 10 per cent of the entire banking industry by 2018. Addressing the Islamic Finance News (IFN) seminar on Islamic finance here, the CBO chief said gross finance had also grown to touch OMR1.78 billion by 2015-end, indicating a market share of 8.86 per cent. All these achievements were reported within a short span of about three years, despite teething problems faced by these institutions.
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. “Eight more are in the process of being established.” Meanwhile, Abdullah Salim Al Salmi, executive president of the Capital Market Authority (CMA), said that takaful (Islamic insurance) institutions in Oman have reported a market share of 8.7 per cent. “This is a starting point and the future is positive,” added Al Salmi, while participating in a panel discussion on Islamic banking and finance in Oman. “Being a late entrant, we have had the opportunity to learn from the experience of other countries, which helped us to avoid the mistakes,” noted Al Salmi. The CBO chief noted that the Sultanate, being a late entrant, had benefited immensely from the experience of other countries.—Agencies

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