Oman Sees Islamic Banking Growth

Since regulations were finalised in late 2012, Oman's Islamic banks have been the most dynamic part of the banking sector and are expected to take an ever more significant share of the overall market in the next few years. Mik Kabeya, analyst in the financial institutions group of Moody’s Investors Service estimates that the asset base of Oman’s Islamic banking sector grew by 68 per cent in 2014, compared to growth of 11 per cent in the conventional banking arena. Islamic banks could account for around 10 per cent of the banking sector’s asset base within 2-3 years, compared to around 6 per cent at the moment. Earlier this year the Muscat government also said that it would issue its first sovereign sukuk.