IDB ready to fund Oman’s Islamic banking sector

Islamic Development Bank (IDB), an international financial institution based in Jeddah, Saudi Arabia, is ready to provide equity capital to Oman’s upcoming Islamic banking industry, development projects in the sultanate and private-sector businesses.

IDB provides equity capital and loans for projects and enterprises in accordance with Sharia law, besides providing financial assistance to member countries for economic and social development.

Speaking to Muscat Daily on the sidelines of the Islamic Finance and Banking Conference, Dr Ahmed Mohammad Ali, IDB president and chairman of the board of executive directors, said the bank is willing to provide capital assistance in Oman.

He said, “We are at the disposal of both authorities and institutions to provide assistance in Oman. IDB has, from the start, been supporting the establishment of Islamic banks and financial institutions through equity participation.

“The option is open and depends on the needs of the industry, authorities and founders of Islamic banks in Oman. We are ready to provide equity capital to banks which are making a foray into Islamic banking.”

IDB, Dr Ali added, wishes to increasingly support development projects under Oman’s Eighth Five-Year Plan. “We will be happy to participate in development projects in different sectors, but all depends on the desire of the Oman government and institutions.”

Dr Ali said the Islamic Corporation for the Development of the Private Sector (ICD), the private-sector arm of IDB, is also looking to support Oman’s private-sector enterprises.

He said, “We are also ready to provide financing to private-sector enterprises. ICD would be willing to participate to support private sector enterprises in terms of equity capital.

“The CEO of ICD was in Oman recently and had discussions with local businessmen and we hope something will materialise in this direction in the near future. Oman is a founding member of  IDB and has always been supportive to its activities.”

The present membership of the bank consists of 56 countries. The basic condition for membership of IDB is that the prospective member country should be a member of Organisation of the Islamic Cooperation.-Source Courtes: