Muscat – Energy Development Oman (EDO) has successfully issued its debut domestic Sukuk, raising OMR 50 million in a strategic transaction designed to support the development of Oman’s domestic capital market. The issuance marks the first local Sukuk by an Omani government-related entity (GRE), broadening the range of financing instruments available and establishing a benchmark for future issuances by other GREs.

The Sukuk attracted over OMR 80 million and was allocated to 29 investors, spanning conventional and Islamic banks, insurance companies, money market funds, official institutions, and high-net-worth individuals. This broad participation reflects EDO’s success in establishing a diversified domestic investor base.

The three-year Sukuk was issued via private placement at a profit rate of 4.40% and an average yield of 4.41%, achieved through an auction process. In comparison, the Oman’s three-year Government Development Bond issued in July 2025 yielded 4.28%. The issuance was documented under EDO’s OMR 1 billion Sukuk programme and marks the first step in EDO’s initiative to develop Oman’s fixed income investor base.

Both the programme and inaugural Sukuk issuance are listed on the Muscat Stock Exchange (MSX), with documentation approved by the Financial Services Authority (FSA) in line with international disclosure standards. EDO employed a hybrid Ijara–Wakala Islamic structure tailored to the Omani market.  MCD is the Registrar, Certificate Holders Agent and Paying Agent.

National Bank of Oman (NBO) acted as Issue Manager, with Muzn Islamic Banking serving as Shari’a Advisor. Trowers & Hamlins acted as legal counsel, providing detailed advice on the Islamic structure and disclosure.

Sultan al Mamari, CFO of EDO, commented: “EDO is delighted with the success of this inaugural issuance, which sets a strong foundation for future transactions. Through our debut OMR Sukuk, we reaffirm our commitment to deepening and developing the local capital market. We extend our sincere appreciation to our investors, NBO, and all stakeholders whose support was instrumental in the success of this landmark transaction”.

About EDO

Energy Development Oman (EDO) was established by Royal Decree in December 2020, becoming Oman’s national energy company.  Tasked with leading the nation’s energy sector, its core objective is to ensure efficient, secure, and cost-effective energy for national prosperity in line with Vision 2040’s economic growth goals.

EDO’s mandate is to optimise the commercial potential of Block 6 where it holds a 60% stake in the oil concession and 100% ownership of the gas concession.  A key enabler in Oman’s energy transition journey, EDO aims to balance the reliance on traditional hydrocarbons with renewable energy, including solar and wind.  

EDO’s current strategy encompasses the oversight of government owned energy assets in Block 6, optimising its operating models and the consolidation of its procurement and supply chain processes. EDO is focused on the management of the assets to improve cash-flow as well as identifying and structuring new income-generating opportunities.  With these initiatives, EDO is bolstering Oman’s energy security and providing a steady revenue stream for the government.

Fostering a supportive ecosystem for the energy industry, EDO works closely with the public and private sector to establish an enabling regulatory and business framework for foreign investment in green energy initiatives. This collective effort is instrumental in achieving the nation’s 2050 net-zero goals and building a low-carbon future.

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