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| Source: Meethaq. Al Harthy. |
Sulaiman Al Harthy, Deputy Chief Executive Officer – Islamic Banking, said: “Meethaq congratulates Oman Air on the arrival of its second Boeing 787 Dreamliner and is proud to successfully close the long-term financing facility. The closure of this complex transaction in terms of its shari’ah structure, legal documentation and accounting structure indicates that Meethaq is well placed to undertake large-scale complex transactions."
Al Harthy added that the successful closure of the financing facility for the national carrier is a stepping stone for Meethaq to diversify its assets mix. "Meethaq is focused on playing a prominent supportive role in projects that are of national importance and the association with Oman Air will further strengthen this approach. The financing agreement with Oman Air based on diminishing musharakah affirms the availability of viable shari’ah compliant solutions to cater to the banking and financing requirements of big projects in the Sultanate. Meethaq has in its portfolio all sectors, including tourism, agriculture, airline, shipping, manufacturing, commercial real estate, hospitals and education.”
In about three years of operations, Meethaq has attained a major position in the Islamic banking industry in the Sultanate in terms of financing receivables, branch network, products and services, IT infrastructure development and human resources. The bank is playing a key role in financing projects of national significance, thereby contributing to the growth and development of the economy.
Al Harthy said: “Meethaq Islamic Bank is contributing significantly to the growth and development of the Omani banking sector and we are witnessing an upswing in Islamic finance and investment compatible with the provisions of shari’ah laws. We see a growing interest among retail and corporate clients to take advantage of the new opportunities offered by Islamic banking and finance.”
As the leading Islamic financial services provider in the Sultanate, Meethaq has many achievements relating to financing major projects in various fields, thereby contributing to the growth and development of the Sultanate’s economy. The notable finance facilities offered by Meethaq include a refinancing facility of RO78 million signed with Oman Shipping Company for its three very large crude carriers (VLCCs).
Meethaq has adopted the best practices in Islamic banking and finance worldwide to combine a robust model which protects customers and complements the Islamic banking industry. Every Meethaq product goes through the process of shari’ah compliance certification by the Shari’a Supervisory Board and is created in line with the guidelines of the Central Bank of Oman.
The Meethaq branch network has grown to 13 facilities since inception of operations in 2013. The bank also recently launched Hafawa Priority Banking service for high saving Meethaq customers. Presently, the Hafawa network includes eight centres in Meethaq branches in Qurm, Al Khoud, Seeb, Saham, Ibra, Nizwa, Buraimi and Salalah.
As the pioneer of Islamic banking in Oman, Meethaq stands out for its independent Shari’a Supervisory Board, separate capital allocation from shareholders’ money, unique risk management tools, complete fund segregation, separate books of account, shari’ah based core banking system, standalone Islamic banking branches and proper profit distribution mechanism among investment account holders/depositors. It has also adopted Accounting & Auditing Organisation for Islamic Financial Institutions standards.