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
Friday, April 18, 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
HM receives credentials of ambassadors
French official hails Muscat landmarks
Ma’awali receives Kenyan military college delegation
SME owners seek deals in China visit
Rehabilitation centre on track
Other Top Stories
Questions mount as scores still traceless
Captain tenders apology, faces criminal probe
‘My room is tilting about 45 degrees, my mobile is not working well’
115 schoolgirls ‘still in Nigeria rebel custody’
China remains a key partner despite maritime disputes: Abe
Palestinians, Israel to hold talks with US envoy
Brahimi urges talks to end Homs siege
India
NDA will provide jobs: Modi
Moderate to high turnout marks fifth phase of polling held in 12 states
Modi a common candidate for corporates: Karat
BJP wants to divide India into 2: Rahul
Kejriwal admits Delhi ‘mistake’, begins campaign
CAG can audit telecom firms: Court
Dhowan takes over as chief of naval staff, vows to avoid accidents
Wife of Saradha scam accused in custody
Technology comes to aid of tourists
Pakistan
Islamabad to continue TTP talks despite end of ceasefire
4 mobile operators qualify for 3G, 4G auction
Army to take over security of anti-polio teams in KP
Drive aims at enrolling 4m kids to school
Power cuts lead to closure of Punjab textile units
Middle East
Bouteflika set to win re-election
21 killed in Iraq, cop dies in bid to save recruits
Displaced Syrians dream of going home
Asia
Xinjiang teen dies after clash with cops at checkpost
No trace of MH370 as robotic sub completes first full mission
Lawmaker who defended Anwar killed in car crash
China frees blogger, jails another in crackdown on ‘online rumour’
Australia captain loses post over Indonesia incursion
16pc of China soil remains ‘polluted’
Business
India growth to hit 5.5% this fiscal, says IMF
Iran crude shipments fall in March
World economy expected to grow 3.4%, China growth risks remain
Bank Dhofar posts Q1 net of 10.22m rials
Sensex soars 351 points, ends 3-day losing streak
Wipro Q4 net rises 29% to $368m
HCL Q3 profit zooms 59% to $269m, revenue jumps
Oman United Insurance net up 1.7m rials
RBI likely to tighten rates to tame inflation: HSBC
Piramal to buy stake in Shriram Capital
EU car sales in top gear, rise 10.6% in March
GSK mulls new sales model post bribery charges
Low inflation bigger threat to US economy than price rise: Yellen
Japan’s top steelmaker to ship longest rail tracks
Europe
Three separatists killed after attack on Ukraine guard base
Majority of party deputies back Erdogan poll bid
30 years on, Britain vows to catch killer of policewoman
‘Rape convictions rare’ in Germany
Church must be a refuge for poor, homeless: Pope
Sports
Bale steals show in Ronaldo’s absence
Real’s ‘Prince of Wales’ Bale sets sights on three crowns
Ronaldo is recovering well, but is a doubt for Bayern game
City’s title hopes dented after draw
S. Korea’s Pohang first to storm into last 16
Bayern rout Kaiserslautern 5-1
Monaco bow out to lowly Guingamp
Durant late dunk earns Thunder win
Pak shares LPGA lead with Ryu, Kim
Al Hail CT MRI Cricket Tournament draw held
Nadal racks up 300th clay court victory
Westwood fires 8 birdies to take lead in Malaysia
RCB beat Delhi by eight wickets
Cibulkova strolls into quarters in Malaysia Open
Americas
Obama, GOP spar over immigration reform legislation
Pakistani immigrant in ‘Jihad Jane’ case sentenced to 5 years in prison
Brazil names 46 suspects in graft, drug probe
Wisconsin passes law to limit private custody transfers of children
Texas executes man for murders
Killer Utah mom gave birth at home: Police

Sports


International

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