Dhofar Islamic Launches OMR250 millions Sukuk Programme
Dhofar Islamic has announced the successful closing of its inaugural sukuk issuance under its newly established OMR250 million Sukuk Al Musharaka Programme, marking a significant milestone in the institution’s expansion into Oman’s growing Islamic capital market landscape.
The Islamic banking arm of BankDhofar said the first sukuk series, valued at OMR 5 million has been privately placed. The sukuk will also be listed on the Muscat Stock Exchange, enhancing tradability, transparency and investor access in the secondary market.ِ
The successful closing is a reflection of growing investor confidence in Oman’s Islamic finance sector and increasing appetite for local-currency sukuk instruments offering stable, medium-term returns. The structure of the issuance is also noteworthy because Musharaka-based sukuk are regarded as being closely aligned with the core Islamic finance principle of risk-sharing, where investors participate in the returns generated by underlying assets or ventures.
The issuance comes amid sustained expansion in Oman’s Islamic banking industry, which has become an increasingly important pillar of the Sultanate’s financial sector over the past decade. Islamic banks and banking windows have steadily turned to sukuk issuances as a means of diversifying funding sources, strengthening liquidity management and supporting financing activities linked to economic diversification and infrastructure development under Oman Vision 2040.
Commenting on the successful closing, Amor Said Mohamed al Amri, Chief Islamic Banking Officer, said: “The successful completion of our inaugural sukuk issuance under the Sukuk Al Musharaka Programme represents a major milestone for Dhofar Islamic and reflects the confidence that investors place in our Islamic banking platform and long-term growth strategy. It also underlines our commitment to delivering innovative Shariah-compliant investment solutions that contribute to the continued development of Oman’s Islamic finance ecosystem.”
The sukuk programme is expected to provide Dhofar Islamic with greater flexibility in accessing long-term funding while supporting future financing growth and balance-sheet optimisation.
The successful debut issuance is set to pave the way for additional sukuk series in the future, depending on market conditions and funding requirements, while further supporting the development of Oman’s domestic debt capital market.
