Bank Nizwa, Oman’s first Islamic bank, signed a 19.5 million Omani rials ($51.08 million) financing deal with Raysut Cement Company (RCC) to fund its operations, expansion plans.
The facilities consist long-term financing of OMR 12 million, working capital of OMR 3 million to Raysut Cement Company at Salalah and OMR 4.5 million for construction and expansion of Sohar Cement Factory at Sohar, Bank Nizwa said in a statement.
“Raysut Cement Company is utilizing our Islamic financing solutions in a clear indication on how Islamic banking can spur more private sector growth in manufacturing and across a multitude of other industries, contributing to Oman’s economic diversification,” Sheikh Khalid Abdullah Al Khalili, Chairman of Bank Nizwa said.
Salalah-based Raysut Cement is the Sultanate’s largest cement manufacturer with a 40 percent market share.
Sheikh Abdul Hafidh Salim Al Barami, Vice Chairman of RCC, said: “The secured Shari’a-compliant banking facilities will set us for stronger and rapid growth and help us solidify our position as the largest cement manufacturer in the Sultanate.”
“Islamic finance is becoming a competitive solution in the marketplace and very appealing given the fact that it substantially raises the share of equity and profit-loss-sharing,” he added.
(Writing by Gerard Aoun, editing by Seban Scaria)
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