Bond, sukuk issues in Oman surge ahead by 54% to OMR1.87b

Business Sunday 05/June/2016 17:53 PM
By: Times News Service
Bond, sukuk issues in Oman surge ahead by 54% to OMR1.87b

Muscat: Oman’s bond and sukuk issues grew substantially by 53.75 per cent or OMR653.62 million to OMR1.869 billion by the end of 2015, from OMR1.216 billion in the previous year.
“The Capital Market Authority (CMA) is continuously and putting in place the building blocks to ensure an effective and dynamic fixed income market in Oman. Some of our initiatives have begun to bear fruit,” said Abdullah bin Salem Al Salmi, executive president of CMA, while addressing a meeting to launch Oman chapter of Gulf Bond and Sukuk Association (GBSA).
The CMA fully supports the initiatives taken by the market players — as a vibrant fixed income market is essential to the development, financial stability and diversification of the regional economy, including Oman, he added.
“This is also an integral part of the overall strategy of the CMA to enable the capital market to play its vital role as an alternative fundraising platform for companies in the economic development of Oman.”
The chapter launch was timed to follow the release of the new Sukuk Regulation by the CMA and to support the growing interest among Oman companies to tap into capital market financing. An increasing number of companies are taking advantage of bonds and Sukuk to diversify their financing source away from the traditional banking sector. The new Sukuk Regulation provides more certainty and improve the prospects for companies to raise funding from the capital market.
The launch event was officiated by the CMA, and attended by representatives of Oman’s leading banks, investors, legal firms and private companies.
The Oman Chapter, consisting of key market players in Oman, will act as a resource for the Oman authorities to help grow the Oman market. This is in line with the GBSA’s purpose to be the collective voice of the region’s fixed income industry and to promote the growth of the fixed income market, while ensuring best practices, governed by the highest ethical and professional standards are in place.
Michael Grifferty, the president of the GBSA and Abdul Hakeem Omar Al Ojaili, the acting chief executive officer of BankDhofarwere also present. Kemal RizadiArbi, Expert/Advisor at the CMA had also attended the launch event.