Muscat - Oman Arab Bank (OAB) plans to launch the operations of its Sharia banking unit in the first quarter of 2013.
This was revealed at the opening of the bank's Islamic banking unit, under the brand name 'Al Yusr,' on Wednesday.
Speaking to Muscat Daily on the sidelines of the event, OAB chief executive Abdul Kader Askalan said the bank plans to begin its Islamic operations in the first quarter of 2013 and open five dedicated branches across major cities in Oman this year.
"Following the release of the Islamic Banking Regulatory Framework (IBRF) by the Central Bank of Oman (CBO), we will be offering Sharia financing to individuals, corporates and projects. The unit will also focus on the SME segment of the market and will launch tailored products suitable to the needs of customers. There is healthy competition in the market with new Islamic banks and windows coming up, but the products that will be offered by the banks will be regulated by CBO."
The unit will be advised by a Sharia Supervisory Board (SSB), which will be headed by Sharia scholar Dr Essam Khalaf al Enezi with the support of Dr Ahmed Subhi Ahmed al Ayyadi and Dr Khalid Salim Hamad al Siyabi as members.
When asked about the market share the bank will target with its new unit, Askalan added, "First we want to examine the market to see how the people accept and react to the products. Market share will depend on the level of service that you provide and cost. People will be on the lookout for banks providing the cheapest products."
© Muscat Daily 2013
