Bank Nizwa, a leading Islamic bank in Oman, has recently inked a financing agreement with logistics company ASYAD Group to provide sustainable finance to its subsidiary, Duqm Development Company (DDC).

This notable deal marks the first-of-its-kind sustainable finance agreement in Oman, with the financing terms tied to predefined key performance indicators (KPIs) that encompass various Environment, Social, and Governance (ESG) norms, Bank Nizwa said in a press statement.

The strategic partnership with Bank Nizwa is in line with ASYAD Group's focus on integrating sustainability elements across their diverse business operations and with Oman's ambitious vision of achieving carbon neutrality by 2050, the statement said, quoting Ibrahim Al Nadhairi, CEO of ASYAD Shipping and Drydock at ASYAD Group.

DDC has already completed the construction of the first phase of the Duqm Frontier Town Project, a mixed-use complex that includes residential units, apartments, villas, a clubhouse, retail area, sports amenities, and an operations and maintenance building.

DDC is currently working on an expansion plan for Duqm Frontier Town, aiming to increase the number and types of residential units.

(Writing by Marwa Abo Almajd; Editing by Anoop Menon)

(anoop.menon@lseg.com)