Oman Islamic Banking and Finance……..Part-2


       On his part, Ahmed bin Saleh al-Marhoon, MSM Director General said that banks play an important and major role in economic development as they are the basis of modern economic system and the main organizer of the relationship between depositors, stand for supply while borrowers stand for demand, indicating that banks are working to gather and mobilize national savings, organize their flow and utilize them in various investment activities that pour into the interests of economic development. .

     Al-Marhoon affirmed that the Islamic banks will help attract Omani migrant savings to the Sultanate and utilize them in the service of the local economy. As to the nature of the activity of Islamic banks is to find new economic projects through activities, such as the credit-sales, speculation and participating in supporting development and creation of new jobs.

     He added that Islamic finance tools will be one of the most important sources of financing economic projects, help marketing them and increase demand for Muscat Securities Market as an organization with strong legislations and sophisticated trading systems that facilitate and regulate the process of trading.

     MSM Director General said that the operation of Islamic banks in the Sultanate will create some sort of competition between conventional banks in customer service, which will be reflected positively on improving service delivery, reduce the cost and increase the sources of financing that are ultimately in the service of national economy. 

     He explained that the birth of Islamic banking and their trading tools will be reflected positively on the performance of the Muscat Securities Market, improve its liquidity and trading volumes, showing that MSM will help Islamic banks to obtain the necessary funding sources to finance its activities through putting into circulation Islamic finance tools, such as Islamic bonds and certificates of deposit and other tools that will be included in MSM.

     Ahmed Ba'abood, Executive Chairman of OITE said in his introductory speech that the conference will focus on building a growth path for Islamic banking and finance in the Sultanate,  improving regulation, innovation, standardization and best practices  and on shedding light on the regulatory and supervisory framework for Islamic banking institutions and other topics that contribute to the development of Islamic banking in the Sultanate.

     He added that there will be a panel discussion on the challenges, developments and future of Islamic banking and finance in the Sultanate, as well as opportunities in Islamic securities market and the technologies that would pave the way for successful Islamic banking.

     The sessions of working papers started after the inaugural session. The papers will discuss various topics related to Islamic banking and finance.

     A number of speakers' specialists in Islamic banking participate in the conference.