National Bank of Oman, the first local bank and one of the
leading banks in the Sultanate of Oman, and QInvest,
Qatar’s leading investment bank and one of the most
prominent Islamic financial institutions in the world,
organized a Sukuk Seminar on January26, 2014 at Grand
Hyatt, Muscat. The seminar was organized under the
auspices of His Excellency Abdullah bin Salim Al Salmi,
Executive President of the Oman Capital Market Authority
and was well attended by representatives from the Oman
Capital Market Authority, Central Bank of Oman, the Oman
Ministry of Finance, Pension Funds and leading corporates
of Oman.
National Bank of Oman and QInvest provided the audience
with insightful perspectives into the Sukuk market and its
growing importance to issuers as well as investors in
today’s environment of increased awareness and
understanding of Islamic finance. The seminar covered
subjects related to the growth and evolution of the global
Sukuk market, Sukuk structuring and regulation, and the
use of Sukuk by a diverse group of issuers as an
alternative mode of financing. In addition, the seminar
covered the investor and demand dynamics of some of the
recent successful Sukuk transactions from the region.
Speaking on the occasion, Sayyid Wasfi Jamshid Al Said,
Deputy General Manager of National Bank of Oman commented:
“National Bank of Oman and QInvest are committed to
supporting local entities by providing advisory and other
solutions in relation to Sukuk issuance. There is inherent
demand for Sukuk in Oman and issuers will find this space
competitive compared to conventional bonds. Organisations
that have up to now relied solely on traditional bank
loans and conventional bonds will find that the Sukuk
markets offer a compelling way to diversify their sources
of financing in order to ensure the cost efficiency and
sustainability of their operations under various market
conditions."
Mr. Hani Ibrahim, Head of Debt Capital Markets at QInvest
said: “QInvest is proud to partner with National Bank of
Oman. We believe that this partnership will facilitate the
increased awareness of Sukuk as a financial instrument to
the Omani issuer and investor base. The combination of
National Bank of Oman’s entrenched local presence and
QInvest’s strong expertise in Sukuk positions use at the
forefront of the growth of Sukuk issuance in Oman”
The government of Oman has recently announced plans to
issue an OMR 200 million sovereign Sukuk on the domestic
market in 2014. The Capital Market Authority, Oman, had
issued Draft Sukuk Regulations last year to promote the
issuance of Sukuks in the Sultanate. The issuance of Sukuk
would provide Sharia’ compliant investment opportunities
to local investors while attracting foreign investors
seeking opportunities in Oman.
The first ever Sukuk was issued by Shell MDS in Malaysia
in 1990 and the first international sovereign Sukuk was
issued in 2001 by the Government of Bahrain, and marked
the advent of the GCC Islamic capital market.
The global Sukuk market has since grown, and marked a CAGR
of 40.5% between 2008 and 2013, with new issuances of
US$140.2bn and US$111.1bn in 2012 and 2013 respectively.
The growth is expected to continue in 2014 and beyond.
Several first-time issuers are likely to enter the Sukuk
market in 2014.According to Thomson Reuters Zawya Sukuk
Perceptions and Forecast Study 2014, Sukuk issuance would
continue to rise rapidly in the coming years and is
expected to reach US$ 237bnby 2018.