Initial approvals given for OMR300m sukuk issues

Muscat: Initial approvals for two sukuk programmes with a total size of OMR300 million have been given by the Capital Market Authority (CMA) recently, said Sheikh Abdullah bin Salim Al Salmi, executive president of the CMA.
He said these sukuk programmes will have various issuance amounts, profit rates and maturing periods by just using one base prospectus. “These issuances will also contribute towards building benchmark yield curves and hopefully spur further issuances in the market,” added the CMA chief. Bank Muscat said last week that the bank’s Islamic window Meetaq has received an initial approval for an OMR100 million sukuk programme, which will be floated in different tranches.
CMA is also in the process of issuing a dedicated regulation for a Real Estate Investment Trust (REIT) Fund to cater to both conventional and Sharia-complaint REITs and to provide more clarity to the market, said Sheikh Al Salmi. The regulatory authority allows real estate investment funds under the existing investment funds regulatory framework.
In addition, the development of the REITs industry, which was promoted by CMA, has been approved by the Oman government as one of the priority projects under Tanfeedh or the National Programme for Enhancing Economic Diversification. This is part of the government’s strategy in diversifying the economy, looking at alternative financing for economic development and to attract foreign investment into Oman.