MUSCAT : At the outset, expressing gratitude to The Arabian Stories (TAS), the conference organisers, Al Ghassani stated: “It gives me great pleasure to share with you some developments and indicators for the Islamic banking sector, which has been an important part of the banking and financial landscape in the Sultanate of Oman.”

He highlighted the impressive growth trajectory of Islamic banking in Oman, stating, “The assets of the Islamic banking sector are growing annually by more than 11 percent, reaching RO 7.8 billion last June, which represents 18 percent of the total assets of the banking sector.”

Al Ghassani emphasized the sector’s contribution to economic development, with total financing reaching RO 6.4 billion, marking a 10.5 percent increase compared to the previous year. “This strong performance indicates the keenness of Islamic banks to provide necessary financing for all different economic sectors,” he said.

Pointing out that a clear indication of public trust in the sector was illustrated by a 15 percent increase in deposits, attributed to the diverse savings instruments compliant with Islamic Sharia, Al Ghasani remarked: “The financial safety and stability indicators of this sector show a solid financial position, with the capital adequacy ratio approaching 16 percent at the end of 2023.”

Addressing future regulatory developments, Al Ghassani revealed a comprehensive strategic plan for the financial sector from 2024 to 2030. ‘’This plan includes initiatives and regulatory changes aimed at boosting growth in the Islamic banking and finance services sector,” he stated.

Al Ghassani also noted that a regulatory framework is being developed to allow finance and leasing companies to provide services compliant with Islamic banking. He added, “We are also developing a framework for the optional conversion of traditional branches into Islamic branches, responding to high demand for Sharia-compliant services.”

Highlighting the importance of international collaboration, Al Ghassani affirmed the Central Bank of Oman’s commitment to global regulatory dialogue, stating, “We have strengthened our relationship with the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) and the Islamic Development Bank.”

Further, affirming the importance of sustainability, he highlighted the need to integrate environmental considerations into banking practices. “We fully recognize the critical role that sustainability plays in ensuring economic development and societal well-being,” he said, noting that upcoming regulatory requirements would address climate-related risks.

Concluding his remarks, Al Ghassani expressed optimism for the future of Islamic banking in Oman. “The Islamic banking sector will continue to develop, prosper, and expand to meet the needs of its customers,” he stated. “All stakeholders must play their part to achieve the desired objectives.”

The conference set the stage for ongoing discussions about the role of Islamic banking in supporting Oman’s economic landscape, with attendees keenly anticipating the sector’s continued growth and innovation.

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