OES takes on financing from Alizz Islamic Bank to expand GUtech

Alizz Islamic Bank has signed an agreement with Oman Educational Services (OES) to finance the expansion of the German University of Technology in Oman (GUtech). OES is the owner company of GUtech.

The signing of this agreement is in line with Alizz Islamic Bank's strategy to support and finance projects in the sultanate and contribute to the growth of the economy, the bank said.

This is the first agreement of its kind in which OES acquires shari'ah-compliant financing. The agreement was executed by the project finance team at Alizz Islamic Bank, which has extensive experience in providing financial solutions that comply with the principles of shari'ah. The financing facilities will be used for the construction of an additional academic building at GUtech campus, a 400-room student on-campus accommodation building, completion works for the conference and exhibition centre, as well as the development of the Mahara research centre.

Al Shaksy said, "Backing the sultanate's educational institutions is an important part of our strategy and we are happy to be part of this initiative that will help this sector to grow and thrive. Alizz Islamic Bank is a strong example of how Islamic financial institutions can support the growth of the educational sector which is crucial for the development of the country.

Source: Alizz Islamic Bank. The agreement was signed on behalf of Alizz Islamic Bank by the Honorable Salaam bin Said Al Shaksy, CEO of Alizz Islamic Bank and by Dr Hussain bin Sulaiman Al Salmi, CEO of OES on behalf of GUtech.

"We have developed a variety of shari'ah-compliant banking products and services that meet all the financing needs of government and corporates operating in Oman."

Dr Hussain bin Sulaiman Al Salmi, CEO of Oman Educational Services said, "Alizz Islamic Bank offers the strategic financial solutions that our organisation requires and we are delighted to be affiliated with them. Partnering with Alizz Islamic Bank will help us fulfill our growth plans and boost facilities for our students and stakeholders to continue to their academic journey."

Alizz Islamic Bank launches revamped mobile app for Internet banking

Source: Alizz Islamic Bank. The app.

Alizz Islamic Bank has launched a newly-redesigned mobile banking app and Internet banking platform in line with its expanding role as a leader of customer experience in Oman. The bank was the first full-fledged Islamic bank to offer a mobile banking app in Oman.

The bilingual app is available for both Android and iOS devices and features advanced security capabilities as well as a self-registration system. Users can use a QR code to log in to web banking, funds transfers, utility bill payments and other transactions. The app is 3D Touch-enabled* and is the first mobile banking app in Oman to offer in app notifications for new transactions, and payment reminders.

Sadiq Al Lawati, Head of Digital and Card Business, Alizz Islamic Bank said, "At Alizz Islamic Bank our key focus is to provide the very best digital banking experience for our customers, whenever and wherever our customers need. Throughout the bank's history we have been at the forefront of digital banking in Oman and we are delighted to further reinforce this with the multitude of useful features offered to our customers via the Alizz mobile banking app and Internet banking platforms, which are available in both Arabic and English."

Source: Alizz Islamic Bank. Al Jadidi.

Moosa Al Jadidi, COO, Alizz Islamic Bank said the new mobile banking application and Internet banking platform reflect the exceptional customer experience and high standards that the bank strives to deliver every day.

"These platforms enhance our strong relationship with our customers and take our excellence in customer service to a whole new level. With an increasingly young population in Oman who prefer more technologically advanced banking solutions, our wide range of cutting edge digital banking solutions enable our customers to benefit from more convenient and secure self-service channels, 24 hours a day, 7 days a week," he said.

*3D Touch is pressure-sensitive touch technology found in iOS devices.

Alizz Islamic Bank enhances Bushra savings account

Reaffirming its leading role in providing innovative shari'ah-compliant services and products Alizz Islamic Bank has enhanced the incentives of the Bushra savings account and other accounts.

Amongst the benefits are instant issuance of the debit card within minutes of opening the account, and discounts at a number of retail and dining outlets across the Sultanate. Bushra Prize Savings Account customers also receive expected profit on their savings and the chance to enter the draws. The profit is given out on monthly basis while the draws occur regularly - daily, weekly, monthly, quarterly and annually.

Source: Alizz Islamic Bank. Al Jadidi.

The daily draw has a total prize value of RO500 distributed equally among five winners, while the weekly draw has the total value of RO3,000, divided equally among three winners. The monthly draw is worth RO25,000 to one winner and the quarterly draw is for RO50,000, also to one winner. The grand prize is worth RO100,000, for a single winner. All of the cash prizes are hiba (هبة gifts) from the shareholder's funds and all customers with a minimum balance of RO100 in their Bushra accounts are eligible for the draws.

The Bushra savings account is based on the shari'ah principle of mudarabah, whereby the bank invests customer savings in shari'ah-compliant financing in order to generate the best possible returns and profits. The customer acts as a capital provider while the bank takes up the role of mudarib (مضارب) or entrepreneur. All customer funds along with the bank's own capital will be pooled and invested in shari'ah-compliant modes of investment and the resulting profit is shared between the bank and the customer according to predetermined ratios.

Moosa Al Jadidi, COO, Alizz Islamic Bank, said: "The launch of the Bushra prize savings account comes as part of our plans to provide a wide range of carefully-designed financial products that meet all clients' needs. Thanks to the efforts of our team, we have been able to provide more than 24 shari'ah-compliant financial products so far.

"This account gives clients the ability to increase their wealth. We aim to provide our clients with low-risk high-yield investment and savings solutions, and we ensure that meeting all their needs, with utmost transparency, is made priority."

Alizz Islamic Bank sees new social media milestone

Alizz Islamic Bank has reached the milestone of 100,000 Facebook likes. The bank is the first and only Islamic bank and one of only two banks in Oman to experience such popularity on Facebook.

With a strong belief in the power of social media to improve customer service, Alizz Islamic Bank has significantly enhanced its overall social media presence in the past year. In addition to its Facebook achievements, the bank is the first and only Islamic bank in Oman to cross the 30,000-follower milestone on Instagram. 

Alizz Islamic Bank is now the second-most followed bank in Oman, ahead of many of the more established conventional banks and one of only two local banks that have a Snapchat presence.

Alizz Islamic Bank's strong social media presence on Twitter, Facebook, Instagram, YouTube, Snapchat and LinkedIn continues to stand out amongst local financial institutions by emphasising the significance of the 'human touch' to start a two-way conversation with the audience, engaging with them on topics of their interest, the bank said. By integrating social media into the banks existing campaigns or creating new ones that capitalize on the spirit of the Omani community, Alizz Islamic Bank has successfully raised the profile of its brand and said marketing using social media has brought solid results.

"We are dedicated to keeping our customers at the heart of everything we do and engaging with them on their platform of choice. Our social media channels give a sense of community with our social media followers; focusing on engagement and listening to what they want. Alizz Islamic Bank is proud to be at the forefront of digital tool adoption. As people rely more and more on social media to receive information and communicate, it is crucial that we as an organisation embrace digital strategies in marketing. Social media enables us to engage with customers more efficiently and with greater precision," said Moosa Al Jadidi, COO, Alizz Islamic Bank.

"Our social media channels are not just about advertising but rather about creating a connection with our customers and providing them with a plethora of channels to interact with us, as well as provide us with feedback and ask questions. We have the best online response time amongst local banks and this is what sets us apart from others and has been central to our success on every social media platform." 

Alizz Islamic Bank handles seven-year US dollar sukuk issue for Oman government

Source: Alizz Islamic Bank. Al Busaidi. 

Alizz Islamic Bank was selected to act as Joint Lead Manager for the recently-issued Government of Oman seven-year US dollar (USD) sukuk along with a syndicate of global banks which included Dubai Islamic Bank, HSBC, Standard Chartered, JP Morgan, GIB and Citibank. Alizz Islamic Bank was the only Omani bank to have been selected to lead the issue as part of the syndicate.

Ghalib Al Busaidi, DGM & Head of Wholesale Banking commented, "Our selection as Joint Lead Manager for the inaugural issue of seven-year USD sukuk is hugely significant and prestigious for Alizz Islamic Bank. The trust that has been placed in us by the government of Oman to deliver on a global stage is truly appreciated and the issue itself was a huge success despite the challenges associated with the recent credit downgrade by S&P which appears to have been brushed aside by the global investor community.

"It is clear that global investor confidence in the prospects for the Oman economy is high and this is evident in the significant oversubscription which resulted in a sizeable tightening in the spread against swaps (as a benchmark) from initial pricing thoughts (IPT)." 

The sukuk, structured based on ijarah (lease), carries a rental rate of 4.397% and maturity in May 2024. It was eventually oversubscribed over three times with institutional investors from Asia, the Middle East, Europe and US taking up the offer. The eventual size of the issue was US$2 billion as planned at the outset, which resulted in investors receiving a lower allocation than they required. 

Al Busaidi elaborated, "Having seen the huge success of the conventional bond issue earlier in the year where the government of Oman issued the five-year, 10-year and 30-year maturities which were four times oversubscribed, we were hopeful that the seven-year sukuk would be well received globally, and it certainly was. Unsurprisingly, the MENA region was the dominant category of investors with European investors also showing very healthy demand. The sukuk was not only confined to Islamic investors, with conventional accounts also constituting significant demand for the issue." 

"This deal heralds a new age for the Sultanate of Oman with the first publicly-placed sovereign international sukuk issuance," said Naveed Ali, Executive VP & Chief of Corporate Banking, Dubai Islamic Bank (DIB). "DIB has been a major player in the Islamic debt capital markets space since the inception of the sukuk product and has participated in most landmark Islamic bonds. The tremendous interest generated from across the globe by the Oman sovereign sukuk illustrated an excellent and balanced distribution emanating from the Middle East, US, Europe and Asia, clearly indicating a substantial demand for quality credits from across the globe. This is underpinned by the fact that the issuance was over-subscribed by nearly three times which allowed for the tightening of IPTs by 35 basis points (bps), thus demonstrating that the appetite for GCC sovereign credits remains strong even in these challenging times. I congratulate the Sultanate of Oman on this key successful milestone deal."

Al Busaidi further explained, "Most importantly however was the eventual pricing which was the biggest success at 235 bps over swaps (as a benchmark) resulting in a rental rate of 4.397%. I think this should give confidence to other government-related entities (GREs) and corporates considering their US dollar funding options as sukuk are a viable tool to raise funding."

Alizz Islamic Bank supports state entities and corporates wanting to tap the capital markets both locally in Omani rials as well as globally in US dollars through various shari'ah-compliant structures including sukuk and funds. 

Alizz Islamic Bank extends Islamic financing to Orpic

Source: Alizz Islamic Bank. The agreement was signed on behalf of Alizz Islamic Bank, by the Honorable Salaam bin Said Al Shaksy, CEO of Alizz Islamic Bank and by Ahmed Saleh Al Jahdhami, CEO of Orpic on behalf of Orpic. The signing ceremony was led by the project finance team at Alizz Islamic Bank, which has extensive experience in providing structured financing solutions that comply with the principles of Islamic shari'ah.

Alizz Islamic Bank has signed an agreement with Oman Oil Refineries and Petroleum Industries Company (Orpic) to provide Islamic financing facilities for the construction of a petroleum coke (petcoke) storage facility at the company's refinery complex in Sohar, Oman.

This is the first agreement of its kind, in which Orpic takes on shari’ah-compliant financing. Alizz Islamic Bank offers various structured financing solutions that are designed to meet the development requirements in various sectors such as in the oil and gas, energy, infrastructure (roads, ports, airports), communications, transport, contracting, machinery, equipment, manufacturing, education, healthcare, tourism and hospitality.

“On the other hand, Alizz Islamic Bank has recently received the license for investment banking services and is now actively arranging various sukuk transactions that provide an attractive opportunity for investors to finance projects in Oman. This step is a part of Alizz Islamic Bank’s commitment in providing the diversified banking solutions that supports the Sultanate’s economic strategy.

The Honourable Salaam bin Said Al Shaksy, CEO of Alizz Islamic bank, said: "We are delighted to partner with Orpic in building its petcoke storage project. The signing of this agreement is in line with Alizz Islamic Bank’s strategy to support and finance various projects in the Sultanate and contribute to the growth of the local economy. Islamic financial institutions have created a variety of banking products and services that meet all the financing needs of government owned entities and corporations operating in Oman.”

Al Shaksy added, “There are a number of projects that our project finance team is actively evaluating in various sectors including manufacturing, logistics, healthcare, mining, tourism, utilities, which are currently in the due diligence stage. All these projects are aligned with Alizz Islamic Bank’s financing strategy and gives us the flexibility to choose amongst the best of these projects. All these projects are of great economic importance to the bank as well as the Sultanate.”

Ahmed Bin Saleh Al Jahdhami, CEO of Orpic, said: "This agreement with Alizz Islamic Bank will provide us with the groundwork to continue our achievements in the construction of important national projects. Alizz Islamic Bank is one of the important local banks that offers strategic solutions and we are proud to strengthen our relationship with them and build a partnership for future project financing.”

Alizz Islamic Bank adds more winners for Hasalti scheme over Ramadhan

Source: Alizz Islamic Bank. Graphic for the Ramadhan Hasalti campaign.

As part of Alizz Islamic Bank's ongoing Sharing the Blessings of Ramadan campaign, the bank has increased the number of monthly winners in the Hasalti Children's Savings Account.

There are typically five cash prize draws a month; for Ramadhan, there will be 25 winners instead. The cash prizes are hiba (هيبة, gifts) from the shareholders' funds.

The Hasalti Children's Savings Account is based on the shari'ah principle of mudarabah, and the bank aims to educate children about the value of saving and planning ahead for the future in ways that are shari'ah-compliant. Accordingly, Alizz Islamic Bank invests the funds deposited in the Hasalti Children's Savings Account in shari'ah-compliant investment activities to create the best possible returns.

The minimum Hasalti deposit is OMR50 per month to make the account eligible for various benefits. The Hasalti Children's Savings Account is opened in the name of the child along with his/her guardian's name until the child reaches puberty, 18 years of age or 21 years of age for a child who has a legal guardian. Hasalti Children's Savings Account customers are eligible for a preferential rate on education financing when the account holder turns 18.

By maintaining a monthly balance of OMR50, all Hasalti Children's account holders are eligible to enter monthly draws, and get a chance to win cash prizes of OMR100 every month. The account holder receives a free Hasalti membership card when opening the account. The card provides access to special offers and discounts across Oman.

The principal account holder (guardian) receives free life takaful equal to twice the monthly balance available in the account, up to a maximum of OMR20,000.

Alizz Islamic Bank launches 2017 Ramadhan auto finance scheme

Source: Alizz Islamic Bank. Poster for
the Ramadhan auto finance scheme.

With the aim to help fulfill the dreams of the bank's customers to own a car during Ramadhan, Alizz Islamic Bank has announced the launch of its 2017 Ramadhan auto finance scheme, Sharing the Blessings of Ramadan.

The auto finance scheme features competitive profit rates and deferred payment of installments for two months after the purchase of the car. The shari'ah-compliant finance scheme is available for purchasing both new and used cars.

The scheme is based on the shari'ah principle of murabahah and offers an easy settlement period of up to 84 months and the availability of auto finance for both employees and business owners. In addition to this, financing is open to both Omanis and resident expatriates with up to 80% of the value of the car being financed.


Moosa Al Jadidi, COO, Alizz Islamic bank said, "We are proud to have an integrated and efficient team that has developed an efficient auto finance scheme where customers only need to visit the nearest branch to complete the procedures. Our products and services are not based on competition, but on being exclusive when compared to products from other banks. Our top priority is to make the dream of owning a car for our customer come true through a smooth and hassle-free process.

"Alizz Islamic bank is the only bank that offers 35 sharia'ah compliant products that meet the needs of individuals and companies. They are designed to meet requirements of the different segments of society. In addition, we launch outstanding products that add value to customers' lives and enhances their confidence moving forward. All customers can benefit from the products and services provided by Alizz Islamic bank during Ramadhan and throughout the year."

Interested?

Eligible individuals include public sector employees who earn a minimum salary of OMR300 and private sector employees who have a minimum salary of OMR350. Customers can apply for the finance scheme car by providing a quotation from the retailer on the chosen car. The application is addressed to Alizz Islamic Bank and the customer pledges to purchase the car from the bank after the due process is completed. Consequently, the bank buys the car from the retailer and takes possession, and later resells the car to the customer via 'murabahah' once the payment of installments is completed.

The bank has also dedicated its Wattayah branch as an Auto Finance hub during Ramadhan. The branch will be open from 9am to 1pm and from 8pm to 11pm.

Alizz Islamic Bank launches Alizz Iftar Sa'yim during Ramadhan

Source: Alizz Islamic Bank. Alizz Islamic Bank launches its 4th round of Alizz Iftar Sa'yim in the spirit of giving during Ramadhan. This year the bank distributed 400 boxes to under-privileged families across the country as part of its Alizz Iftar Say'im campaign.

Alizz Islamic Bank organises special campaigns during Ramadhan to give back to the community and encourage volunteerism and philanthropy in keeping with the charitable spirit of the month. In line with the spirit of giving during Ramadhan, Alizz Islamic Bank (AIB) has launched the Alizz Iftar Sa'yim initiative for the fourth year running.

The primary goal of the Ramadhan initiative is to support low-income families in preparing for Ramadhan with essential foods including rice, wheat, lentils, sugar, milk, and oil. A secondary goal is to encourage employee volunteerism, the bank said, which offers a tangible way for businesses to become more personally invested in undertaking social issues, strengthen employee skills and morale, and cultivate a more positive and productive business environment.

Implementing the Islamic principles and values of charity and volunteer work during the month, Alizz Islamic Bank distributed 400 food packages for low-income families throughout major cities in Oman. A large number of Alizz Islamic Bank staff volunteered to participate in the distribution. Over a week employees travelled from the head office in the central business district (CBD) area to assist other employee volunteers in key locations including Wattayah, Muttrah, Al Amerat, A'Seeb, Nizwa, Sohar, Barka and Salalah.

Moosa Al Jadidi, COO, Alizz Islamic Bank, said "Our Iftar Say'im initiative aims at promoting the spirit of solidarity and cooperation within the bank, employees and the larger community by providing necessity to low income families during the holy month of Ramadhan.

"This initiative also plays a significant role to further encourage the concept of volunteerism within the bank's work environment."

Alizz Islamic Bank inaugurates eighth branch, in Barka

Source: Alizz Islamic Bank. Alizz Islamic Bank opens branch in Barka. The launch was held under the patronage of HE Sheikh Hilal bin Said bin Hamdan Al Hajri, Governor of South Al Batinah, Oman and in the presence of the COO of Alizz Islamic Bank, Moosa Al Jadidi. 

Alizz Islamic Bank has launched its 8th branch under the patronage of HE Sheikh Hilal bin Said bin Hamdan Al Hajri, Governor of South Al Batinah, Oman. The new branch officially opened on May 11 and includes retail banking as well as wealth management services in its portfolio.

The Barka branch is opposite Grand Centrale Mall and near the Barka Halwa Factory. Branch Manager Abdullah Al Hadhrami will lead daily operations at the branch. A 24-hour ATM/CDM with exterior access, two teller windows and three customer service representative desks are available to customers. It will be open from Sunday to Thursday, from 8 am till noon.

Moosa Al Jadidi, COO, Alizz Islamic Bank said "Over the last three and a half years, reaching as many customers across the sultanate has been our primary focus. Each branch is strategically located to provide customers with the highest levels of accessibility and convenience. We will continue to remain committed to developing innovative ways to bring Islamic finance even closer to each and every one of our loyal customers. Our new presence in Wilayat Barka is critical to achieve the ultimate objective of providing our customers with cutting-edge products and services in order to make their banking needs more convenient.

"With Barka growing into an important business hub in the South of Al Batinah Governate, the branch is ideally positioned to provide Islamic finance solutions to customers in the surrounding and outlying areas as well. As part of our focus on the customer experience we have carefully studied and fabricated our in-branch design to create the friendly modern environment our customers and employees deserve." 

Al Osool Properties obtain forward ijarah financing from alizz islamic bank

Source: alizz islamic bank. Al Osool Properties signs a forward ijarah financing agreement with alizz islamic bank for The Pearl Muscat. The signing ceremony on 28 December 2015 was attended by Salaam Al Shaksy, CEO of alizz islamic bank (second from left) and Hassan Mohamed Juma Al Lawati, Managing Director of Al Osool Properties (third from left). The signing ceremony was also attended by Ehab Hashish, DGM-Head of Wholesale Banking of alizz islamic bank, alongside the proprietors of the The Pearl Muscat; Hilal Abdullah Al Hoqani and Ahmed Ali Khamis Al Mahrouqi. 

Alizz islamic bank has signed a financing agreement based on forward ijarah with pioneer real estate development and investment company Al Osool Properties for the development of its premium integrated tourism complex (ITC) project The Pearl Muscat. The Pearl Muscat is being developed on land in the Muscat Hills Commercial area. The project spreads over 6,911 sq m and will comprise a basement, ground floor plus six storeys and a penthouse.

The financing agreement marks an important milestone in the development of Oman's real estate sector and reiterates alizz islamic bank's commitment to strengthen institutional participation for real estate projects. Alizz islamic bank provides shari'ah compliant financial solutions for corporate, government and individual customers. In forward ijarah, the property is acquired by alizz islamic bank under an istisna sale contract with a developer upon customer's promise to lease. The property is accordingly leased and delivered to the bank's customer for the agreed term and rentals, after which the ownership is transferred to the customer.

Salaam Al Shaksy, Chief Executive Officer of alizz islamic bank said, "We are pleased to partner with Al Osool Properties for developing its premium project The Pearl Muscat. This is in line with our strategy to support the local tourism and development projects. The bank continues to demonstrate its commitment towards financing projects which contribute to the local economy."

Al Shaksy added that the entry of Islamic institutions has brought a range of shari'ah compliant products and services to meet the diverse financing needs of corporate and institutional clients in Oman.

Hassan Mohamed Juma Al Lawati, Managing Director of Al Osool Properties said that "the development agreement between Al Osool Properties and alizz islamic bank will provide a solid guarantee to our customers that their properties will be delivered within the stipulated deadline irrespective of the market dynamics."

Takaful Oman first to distribute motor takaful with an Islamic bank

Source: alizz islamic bank. Salaam Al Shaksy, Chief Executive Officer of alizz islamic bank, and Sayyidah Rawan Al Said, Vice Chairperson and Managing Director of Takaful Oman signed the MoU at a ceremony held in alizz islamic bank’s Head Office in Muscat, Oman. 

Alizz islamic bank has signed a Memorandum of Understanding (MoU) with Takaful Oman, the Sultanate's first full-fledged Islamic insurance provider, to provide its customers with motor takaful policies at special rates. Takaful Oman will also issue motor takaful policies from alizz islamic bank’s branches.


Salaam Al Shaksy noted, “Both alizz islamic bank and Takaful Oman are fairly young financial institutions offering shari'ah-compliant products to a growing base of customers in Oman. Our agreement with Takaful Oman marks the beginning of what we hope is a strong and successful business relationship that will provide our valued patrons with an unrivalled customer experience.”

Sayyidah Rawan Al Said commented, "We are delighted and excited about our new strategic partnership with alizz islamic bank and be the first takaful company in the Sultanate to distribute motor takaful through an Islamic bank. The partnership with alizz islamic bank is mutually beneficial for both as we are able to offer motor takaful to a wider audience through the bank’s distribution network and alizz customers get value added service in the form of having their vehicles insured through shari'ah-compliant means in the bank itself .’’

Wolters Kluwer to power asset and liability management for alizz islamic bank

Source: alizz islamic bank. Ghalib.

Alizz islamic bank has signed up to use Wolters Kluwer Financial Services’ OneSumX solution for Asset and Liability Management (ALM). The bank will use the risk solution for balance sheet modelling, risk measurement, risk management and regulatory compliance.

Alizz islamic bank, which provides retail and corporate finance services, will use Advanced Financial Solutions as its partner for the implementation of the Wolters Kluwer Financial Services offering. A subsidiary of Midis Group, Advanced Financial Solutions specialises in providing software solutions and consulting services for financial institutions in the Middle East, North Africa and Turkey.

“We spoke to several vendors and chose the Wolters Kluwer Financial solution, based on its ability to provide a suitably robust ALM framework for the bank,” said Ghalib Al Busaidi, Chief Financial Officer of alizz islamic bank.

“Furthermore, the reputation of Advanced Financial Solutions has been very good as the firm has successfully implemented several solutions for financial institutions over the years. We look forward to working with them to implement the OneSumX solution for ALM. This is an important investment for us and demonstrates our commitment to ensuring an effective and strong risk management culture.”