1. Challenges
for Islamic Banking
in Oman

2. AGENDA Strength of Islamic Banking in Oman Legal Reforms
Products Development
Pioneer of Islamic Banking

3. Strength of Islamic Banking in Oman
CBO’s Objectives
Credible Banking Proposition
Customer Protection
Efficient Mobilization of Capital
Effective Regulatory Oversight
Inclusion of Shariah Sensitive Market Segment
Compliance with International Best Practices

4. Components of IBRF Licensing Requirements Capital Allocation
Set up/ Policy requirements
Sharia Governance Framework
SSB / Sharia Reviewer
Fit & Proper criteria
Window Model
Bank within bank
Direction for business, control & support units
Risk Management
Capital adequacy ratio
Liquidity Management
Accounting & Reporting Framework
AAOIFI standards
IFRS conflict disclosures

5. Challenges of Islamic Banking
in Oman

6. Funds Segregation Challenge
System and Controls
Funds Segregation Challenge
Fundamentals
Sharia Framework
IT System
Separate Book
Funds Segregation Policies
CBO Framework
Funds Segregation Assurance
IIFM, AAOIFI & IFSB
Business Ethics
Corporate Governance
ALM Guidelines
External/ Regulator’s Audit
Sharia Inspection

7. Challenge of Regulatory Reforms
Government patronage and regulatory reforms can play a pivotal role for the development of Islamic banking like taxation benefits
Provision in Commercial codes for Islamic Banking to ensure enforceability of contract in courts like trust laws, beneficial ownership
Level playing field between Islamic and conventional banks in term of products commercial viability e.g. double taxation issues
Sharia Compliance Re-assurance via Centralized Sharia Board

8. Challenges in Product Development
Need of standardization of contracts for Islamic products.
Public perception management
Lack of Research and Development efforts
Next Generation of Islamic banking products instead of mimicking conventional banking

9. Pioneer of Islamic Banking
in Oman

10. Meethaq Home Finance Started operations in 2008
First mortgage product of Oman
Total portfolio is over RO 90 Mio
Total Meethaq customers are over 2000
Majority of the customers are first time borrowers
Pioneer of Islamic Banking in Oman

11. Market Leadership Initiatives
Support to CBO/CMA Ifta Office
First Product in Oman
Public Awareness Programs/ Facebook
Initiatives on MM & CM

12. Thank You