Oman’s central bank has given the go-ahead for two new Islamic banks in the space of three months.They’ll represent the country’s first two fully Islamic banks, firmly placing it on the Islamic finance radar.
Al-Izz International Bank will set up its operation some time next year, while Nizwa Bank, which was given approval from the CBO in May, is planning to open in the first half of 2012 with initial capital of around $400 million.
They’ll operate under standard Omani banking law, rather than separate jurisdiction for Islamic finance as practiced in Bahrain and the UAE; potentially, a set-up that could pose problems, but with the advantage of allowing banks to be set up quickly.
It’s hoped Oman’s traditional ties with East Africa and India will help strengthen the development of Islamic finance between the GCC and the wider world.
