Bank Nizwa highlights promising Islamic finance potential

Bank Nizwa participated in a special session held at Majlis Al-Shura to discuss the challenges and future growth of Islamic finance. Representing the bank, Dr. Ashraf Al Nabhani, General Manager Corporate Support, stressed the importance of reflecting on the Sultanate’s successful journey to date in this emerging industry and identifying measures to further enhance its performance. The session was attended by top banking officials representing all Islamic banks and windows and members of the Majlis. 

Dr. Ashraf called for the financial regulations to protect the organic growth of the Islamic finance industry, which is still in its infancy in Oman. He explained that for the industry to continue growing, all stakeholders must focus on overcoming operational and industry challenges, citing the competition in the market from the windows in the conventional banks as ‘unequal’ with the already in place resources and infrastructure of traditional banks. He explained, “We need collective efforts to overcome constraints in liquidity management, lack of standardization in products and services, availability of qualified professionals, as well as the limitations posed by the relatively low levels of customer awareness on the industry.” 

Since its inception in 2013, Bank Nizwa has been at the forefront of introducing, developing and enhancing the industry in the Sultanate. The bank’s gross financing portfolio stands at 318 Million Omani Rials, representing an 80% growth since its launch, while the Bank’s Customers’ deposit portfolio reached 218 Million Omani Rials registering a 102% growth as of March 2016. Renowned for its Shari’a-compliant range of progressive and efficient financial solutions, the bank has quickly grown to be the ambassador of Islamic finance in Oman.