In May 2011, Oman issued directives authorising the introduction of Islamic banking services for the first time in
the country’s history. The decree also approved the establishment of Oman’s first standalone Islamic bank, Bank Nizwa, which opened its doors to the public in January 2013.
Established as a retail bank with a capital of $389m, Bank Nizwa is looking to tap the demand for sharia-compliant products and services that is currently being met by Oman’s neighbouring countries, resulting in a liquidity transfer from the country to other centres in the Gulf. It is estimated that the equivalent of $11bn in local currency (Omani rials) is currently deposited in Islamic banks across the Gulf Co-operation Council countries.
