Oman ahead in regulating Islamic finance, but vibrant capital market missing

Experts at the seminar of ‘Developing a sustainable Islamic banking industry in Oman’ have said that the demographic changes in the country and the rising employment level will bring a ‘huge potential’ for growth in the financial sector. Islamic banks will need to play an effective role in order to have their share of the cash. When it comes to the regulation of Islamic finance, particularly in liquidity and treasury management, Oman is one of the most advanced countries. However, the lack of a global Islamic capital market, particularly an Islamic interbank market, and the shortage of short-term, long-term, or highly tradable investments which will bring the capital risk, are the main issues concerning the development of Islamic banking.