Initial tranche for Meethaq Sukuk Programme closes June 1

The debut issuance under the Meethaq Sukuk Programme, Series 1, closes on 1 June 2017.

Series 1 will be for OMR25 million with a green shoe option of a further OMR25 million, in case of oversubscription. It will have a tenor of five years - due 2022 - and will be issued through a public offer which will be open to Omani and non-Omani individuals as well as institutional investors.

Under the programme, Meethaq plans to issue sukuk certificates in several tranches up to a maximum amount of OMR100 million over a period of time which will be listed on the Bond and Sukuk market of Muscat Securities Market (MSM).

Advantages for the Meethaq Sukuk Programme include:

• Strong investment grade entity rating of Baa1 by Moody’s, BBB- by S&P and BBB by Fitch
• Market leader with 36% share in Islamic financing and 34% of total assets in Oman
• Strong Shari'ah Supervisory Board and Compliance Framework under the guidance of renowned shari'ah scholars.
• Shari'ah-compliant fixed income investment opportunity with stable returns and the backing of Meethaq Islamic Banking.
• Attractive return of 5% per annum payable semi-annually over a five-year period

Source: Meethaq website. Poster for Meethaq's sukuk programme.

Interested?

Read the FAQ or apply

The minimum application size is OMR1,002 per applicant for subscription of a minimum 1,000 certificates of OMR1.002 each (inclusive of offer expenses of 2 baisa per certificate) and thereafter in multiples of 100 certificates. Applications for the subscription of fewer than 1,000 certificates will not be accepted.

Meethaq launches Ramadhan vehicle finance offer

Meethaq, the pioneer of Islamic banking in Oman from Bank Muscat, has launched a vehicle finance promotion coinciding with Ramadhan. The Meethaq Ramadhan auto finance campaign is available at a 5% annual profit rate inclusive of life takaful during the full finance period. The limited period offer is valid till 31 July 2016.

The shari’ah-compliant Meethaq auto finance programme is based on the concept of murabahah, under which the cost of the vehicle and the profit is disclosed to the buyer. Meethaq purchases the vehicle on customer request, and sells it to them at a cost plus agreed profit.

The exclusive benefits of Meethaq auto finance include financing of up to 80% of the value of the vehicle, repayment tenure up to eight years and free life takaful coverage during the finance period. Financing is also available for purchasing used vehicles.

The bank does not charge any processing fee and offers competitive pricing. With minimal documentation and fast processing, Meethaq car finance is available for citizens and residents at all Meethaq branches.

Eleven Meethaq branches will be open with extended working hours, from 8.30pm to 11.30pm, during Ramadhan: Wattayah, Al Khoud, Barka, Saham, Sohar, Sur, Salalah, Buraimi, Ibri, Ibra and Nizwa.

Meethaq offers a full suite of Islamic banking products and services, including savings account, current account, home finance, auto finance, credit card, mobile banking and Internet banking. Meethaq has 18 branches across the Sultanate of Oman and plans to expand the network as well as launch new products and services to complement the Islamic banking experience.

Meethaq and Oman Property Development Company facilitate home finance for Ras Al Hamra home project

Meethaq, the pioneer of Islamic banking in Oman from Bank Muscat, and Oman Property Development company have signed a memorandum of understanding (MoU) to facilitate attractive Meethaq home finance for the Al Hamra Classic Home project in Ras Al Hamra. 

The move underlines the upward swing in the residential segment of the real estate sector in Oman in light of the growth in population as well as the developing economy. The deregulation granting property ownership rights to GCC nationals and expatriates has also attracted Oman as an investment destination. 

Sulaiman Al Harthy, Deputy Chief Executive Officer – Islamic Banking, Meethaq, said: “Committed to sustainable social and economic development, Meethaq is happy to be associated with Al Hamra project to provide innovative home finance in line with shari’ah principles. The real estate sector is a major component of the national economy and Meethaq Islamic Banking is committed to extending a helping hand for easy access to shari’ah based home finance.”

Abbas bin Abdullah Al Ajmi, Chairman of Oman Property Development company, said: “Oman Property Development company is proud to join hands with Meethaq Islamic Banking in extending attractive home deals. The co-operation between the two institutions will benefit citizens to fulfill their dream homes in Al Hamra project comprising 15 residential units.” 

Meethaq offers a full suite of Islamic banking products and services, including savings accounts, current accounts, home finance, auto finance, credit cards, mobile banking and Internet banking. Meethaq has 17 branches across the Sultanate and plans to expand the network as well as launch new products and services to complement the Islamic banking experience. 

Meethaq introduces Internet banking

Meethaq, the pioneer of Islamic banking in Oman from Bank Muscat, has launched Internet banking services for retail and corporate customers. The 24x7 service is available in English. 

Meethaq retail customers can make local fund transfers, access account balances, pay bills and manage standing instructions with Internet banking among other services. Corporate clients can also create workflows for validating access and authorisations. Corporate clients can further check the status of letters of credit, letters of guarantee and bills for collection.

Sulaiman Al Harthy, Deputy Chief Executive Officer – Islamic Banking, said: “Meethaq is proud to launch the Internet banking service featuring the latest technology as part of the bank’s strategy to empower customers to perform frequent transactions with convenience and security. Complementing the government's efforts in creating a digital society, the enhanced online banking service emphasises Meethaq commitment in providing secure electronic services which spell convenience to customers, thereby consolidating its position as the preferred Islamic banking service provider in the Sultanate.

“Meethaq is committed to invest on state-of-the-art technologies to further increase efficiency and improve customer service. With emphasis on competitive channels and new products to cater to various sectors, Meethaq aims to take the lead in technology-driven products and services, including electronic payment and web-based services, in tune with the banking requirements of Oman’s young and tech-savvy generation.”

Meethaq Internet banking ensures all transactions are secured with multiple validations.To access internet banking, Meethaq customers require their user ID and password using an on-screen keyboard; a captcha on the logon screen, as well as one-time password (OTPs) through SMS and a physical token. 

Meethaq offers a full suite of Islamic banking products and services, including savings and current accounts, home and auto finance, credit cards and mobile banking. 

Interested?

Retail customers can register online, without the need to fill forms or visit a branch. 

Oman Air acquires second Dreamliner with shari'ah based financing from Meethaq

Meethaq, the pioneer of Islamic banking in Oman from Bank Muscat, extended Oman’s first and only shari’ah based aircraft finance to the national carrier Oman Air for acquiring its second Boeing 787 Dreamliner. 

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.

Meethaq, Al Salam Bank Bahrain and BMI Bank sign MoU on Islamic banking

Meethaq Islamic Banking, the Islamic banking pioneer from Bank Muscat in Oman, has come together with Al Salam Bank Bahrain (ASBB) and Bahraini retail and commercial banking institution BMI Bank on a Memorandum of Understanding (MoU) to collectively pool expertise, technologies and resources and work together across a range of Islamic banking activities. 

Source: Meethaq. From left, Jamal Al Hazeem, Chief Executive Officer of BMI Bank; Sulaiman Al Harthy, Group General Manager – Meethaq Islamic Banking; and Yousif Taqi, Chief Executive Officer of Al Salam Bank Bahrain. 

The MoU was signed at BMI Bank's headquarters by Sulaiman Al Harthy, Group General Manager – Meethaq Islamic Banking, Yousif Taqi, Chief Executive Officer of Al Salam Bank, and Jamal Al Hazeem, Chief Executive Officer of BMI Bank.

Al Harthy said: "Meethaq is delighted to sign the MoU with Al Salam Bank and BMI Bank and we will work together to offer various Islamic finance products covering treasury, trade finance and capital market in Oman. Meethaq is working to strengthen its operations in the Sultanate which is witnessing substantial growth in Islamic banking industry and we consider our partnership with Al Salam Bank and BMI Bank a great advantage to maximise favourable opportunities and thereby expand our coverage."

Al Hazeem said: "Since its inception in 2013, Meethaq has emerged as a leading Islamic banking service provider in Oman and has enhanced its reputation within the region through its investments in staff, systems and controls along with the timely launch of several world-class shari'ah based products and services. Our organisations share mutual principles, values and expertise and are therefore pleased to sign this MoU and look forward to enhancing this partnership in the coming years."

Among the Islamic banking activities to be considered under the MoU are Islamic syndications, particularly those issued in Oman, treasury transactions, liquidity management products and Islamic trade finance transactions.