Omantribune
Oman Tribune
Omantribune
Omantribune Search News
Web Oman
    Google Search Button
      Tribune
- Oman
- Soccer World Cup
- Other Top Stories
- Middle East
- Business
- Sports
- India
- Pakistan
- Asia
- Europe
- Americas
- Columnists
- Editorial
- Oman Mirror
- Special Features
- Cinema
- PDF Pages
- Weather
- Travel
- Currency Rate
- Hospitals
- Pharmacies
- Services
- Flight Timings
- Museum Timings
Omantribune Home Omantribune About Us Omantribune Advertising Information Omantribune Archives Omantribune Subscribe-Form Omantribune Jobs Omantribune Contact Us
Tuesday, September 23, 2014  

Oman’s Islamic banking on growth path
Staff Reporter

MUSCAT Islamic banking services in the Sultanate will witness robust growth in the coming days as the central bank will develop general rules and regulations to ensure good governance in these banks, said HE Hamoud Bin Sangour Al Zadjali, Executive President of the Central Bank of Oman, while speaking at the Oman Islamic Economic Forum being held at Al Bustan Palace Hotel on Saturday.

However, Islamic banks should ensure that their banking transactions are sharia compliant, he added.

These banks need to follow assorted accounting standards in certain cases that are acceptable by the parties who are trading in the stock markets and are in line with international standards, he said.

The CBO will review regulatory issues at the legislations which came into force in the first quarter of 2011 and will revise the legislations from time to time based on the developments at the local and world markets.

While elaborating on the functioning of Islamic banking, he said these banks are not isolated from traditional banks and the central bank, the regulator of the banking sector, will keep a link between Islamic banks and other banks. However, it will be a real challenge now and in future.

While talking about the future of the Islamic banking, Prof. Humayan Dar, CEO, Edbiz Consulting and chairman of the Forum, said that the size of Islamic banking industry in the world is expected to touch around $1 trillion, a rise of 7 per cent, in near future. He said while traditional banks have been affected by the global financial crisis in the past two years, the Islamic banks managed to remain immune. 

Dr Abdul Aziz Mohammed Al Hinai, deputy chairman of the Islamic Bank for Development, said Islamic banks, which have witnessed robust growth since their launch, are facing challenges in developing a relationship among them, the central bank and other regulatory bodies. Creating a proper supervisory system for the Islamic financial industry, diversification of Fatwas issued by Sharia Audit authorities, lack of standard criteria for contact, lack of efficiencies and talent crunch are also posing major challenges to these banks, he added. 

HE Sheikh Dr Kahlan Bin Nabhan Al Kharousi, the Sultanate’s Grand Mufti, said that the Sultanate seeks to learn from other countries’ experience in Islamic banking to avoid shortcoming and help financial and Takaful insurance companies that provide sharia-compliant products. 

While talking about the establishment of legislative centres that will grant approval to Islamic banks, Al Kharousi said that banks need to fulfil three guidelines such as a legal framework, managing operations that ensure the provision of Sharia-compliant services and products and efficient and qualified human resources. 

The applications require three levels of audit and sharia advice, on top of which is the Central Sharia Authority that lay the general principles and bases for the different sharia compliant activities; this is equal to bonds in capital markets in the Sultanate, he added. 

Sharia committee will be in charge of developing details of daily transactions and ensure that they are compatible with the main restrictions. The Ifta house provides advice to decision-makers to ensure that the products are genuinely Sharia complaint. 

In response to a question about restructuring of debts in the Islamic way, he said that this may be offered by Islamic banks to help people get rid of usurious transactions. The Islamic windows which will be opened here seek profits, hence the services offered by these windows will be based on sharia contracts.

Tun Abudllah Bin Haji Ahmed Badawi, former prime minister of Malaysia, said that there is a need for global standards in Islamic banking and finance to help it emerge as an international alternative in the sector.

Various countries have their own standards of Islamic banking and financial system. But this creates lots of difficulty in its progress, he said.

Khalid Bin Hilal Al Yahmadi, chairman of Amjad Development Company, said that researches and studies conducted found that principles of transactions at the Islamic economy provide satisfactory and fair solutions for the society.

More than 2 billion rials (over $5 billion) are semi frozen money or interest free deposits. This amount accounts for one-third of the total deposits at local banks. He pointed out that one of the studies affirmed that two-third of the Omani society prefer to deal with financial solutions that are Sharia compliant. 

The two-day forum, organised by Amjad Group, was held under the auspices of HH Sayyid Shihab Bin Tariq Al Said and was attended by ministers, honoruable members of the State Council and Shura Council, undersecretaries, executive presidents of banks operating in the Sultanate and Islamic banking institutions from outside the Sultanate.

With inputs from ONA
NEWS UPDATES
Oman
Entrepreneurship symposium begins
State Council holds session to develop officials’ skills
Pacts to train 3,000 students inked
Marhoon reviews audit report of pension fund
Salalah forum seeks to boost e-transactions
100 varsities from 22 nations offer options at EduTraC expo
Sultanate takes part in genetic treaty meeting
First group of Omani Haj Mission heads for Makkah
Zubair SEC inks pact with Shell Intilaaqah
Other Top Stories
Iraq says no to foreign troops
India’s Mars mission closer to success
Thousands rally worldwide for climate action
Don’t impose travel bans on Ebola-hit nations: WHO
Nasa spacecraft begins to orbit Mars
India
BJP scales down seat demand in Maharashtra
Army tries to take control of ITBP along border with China
CBI probes PC’s role in Aircel-Maxis deal in 2006
NIA files supplementary indictment against 20 IM operatives
Panel set up to probe Jadavpur varsity molestation
Teen burnt alive after harassment
Mars probe engine wakes up, Isro mission closer to success
Odisha ex-AG arrested in Saradha scam
Court agrees to hear plea against CBI chief
Court pulls up CBI for filing vague report in coal scam
70 flood-hit army bases relocated
Flood devastates Kashmir carpet business
TNCC president seeks to resolve fishermen issue
Pakistan
Army chief’s close ally to head ISI, set to take charge in Oct.
Imran, Qadri face probe in ‘terror case’
23 militants killed in N. Waziristan airstrikes
Parents refuse polio jabs for 149 sick kids this year
Armed groups clash in Balochistan, 11 killed
Flood victims rally for compensation
Middle East
Fighting erupts near Libyan oilfield, UN readies for talks
Loopholes in intelligence aid IS recruitment
US’ delay in arming Syrian rebels spurs IS rise: Panetta
Turkey in fix as 130,000 Syrians fleeing IS offensive cross border
British-Iranian woman’s arrest ‘not linked to sports’
Asia
Multiple blasts in Xinjiang kill 2, many injured
Zia corruption case trial opens
Thousands of HK students boycott classes for democracy
Chinese militants get ‘terrorist training’ from IS rebels
Afghan unity government pact a US sham: Taliban
Displaced Muslims get Myanmar citizenship
Multiple blasts in Xinjiang kill 2, many injured
Zia corruption case trial opens
Thousands of HK students boycott classes for democracy
Chinese militants get ‘terrorist training’ from IS rebels
Afghan unity government pact a US sham: Taliban
Displaced Muslims get Myanmar citizenship
Business
NBO ropes in 4 banks ahead of bond issue
Sultanate, World Bank sign pact
Oil falls below $97 on weak demand
Apple breaks records in new iPhone sales
HTC to make Google’s new Nexus tablet
Al Maha Ceramics to pay 35% dividend
India state banks need $37b to meet Basel III norms
Trai seeks tweak in telecom M&A rules
India looks to cut down unnecessary imports
Falling oil prices may help India meet fiscal deficit target this year
Cyber attacks cost companies dear
Japan should go ahead with tax hike, says OECD
Infiniti cars to be built in China
EU banks, Europol join to combat cyber crime
Rockefellers, other philanthropies pledge $50b fossil fuel divestment
Siemens to buy US firm for $7.6b
Euro zone ‘should be given IMF seat’
Europe
Ukraine begins to pull back artillery from frontline
Cameron faces revolt in party over more powers for Scots
Scotland could still declare independence, says Salmond
EU exchange plan leads to birth of 1m babies
Britain’s N-deal to get EU nod
UK’s Labour pledges ministerial salary cuts to win over voters
Sports
Messi and Barca put on five-star show
Qatar will not host ’22 WC: Zwanziger
Al Harthy pleased with show
Lyon snatch late equaliser from PSG
Qualifiers get ready for WC
Playing less extended my career: Serena
Poland down Brazil to claim second world title
Federer replaces injured Nadal in IPTL
Hagino double lifts Japan in pool
Salmonella found in lunchboxes at Games
Olympic champ Bindra to give up full-time shooting
China’s men reach football knockouts, India ousted
Ghosal enters squash final as Dipika lifts bronze
Indian tennis teams knocked out
Raina blitz sets up Chennai win

Sports


International

© 2013 Oman Tribune. All rights reserved. Best viewed in 800 X 600 resolution