Meethaq, the Islamic banking window of Bank Muscat, and two subsidiary companies of Muscat National Development and Investment Company (ASAAS) signed term finance agreements with a total value of RO16mn for an upscale 3 star hotel in Muscat and a crew reporting terminal at the airport. Sulaiman Al Harthy, Deputy Chief Executive Officer – Islamic Banking, and Eng. Khalid bin Hilal Al Yahmadi, Chief Executive Officer of ASAAS, signed the Shari’a compliant term finance agreements at Grand Hormuz Hotel.

Meethaq signed the first agreement with Al Khuwair Hospitality and Investment Company for term finance facility of RO 10.63 million to part finance the 3 star hotel to be operated by Hilton Garden Inn. The second agreement was signed with Hasaad Real Estate Company to extend RO 5.62 million term finance for the crew reporting terminal (CRT) to be leased to Oman Air.

Eng. Khalid bin Hilal Al Yahmadi said: “ASAAS is proud to join hands with Meethaq for the term finance agreements which mark the first bank financing for ASAAS projects with a total value of RO 16 million. ASAAS believes in the importance of co-operation and partnership between the public and private sectors to enhance the government’s efforts to achieve the desired economic diversification and we are committed to achieving this objective. The establishment of various projects by ASAAS is aimed at enhancing social and economic development in the Sultanate.”

Sulaiman Al Harthy said: “Meethaq is proud to be associated with ASAAS projects as part of its commitment to promote investment opportunities in Oman. As the pioneer of Islamic banking in Oman, Meethaq recognises the immense investment prospects and potential that Oman offers and is committed to supporting strategic development initiatives in line with Oman’s Vision 2040 economic blueprint. Within four years of operations, Meethaq has crossed a milestone of over RO 1 billion in assets and consolidated its leadership position, recording many achievements contributing to the growth and development of the Sultanate’s economy.”

ASAAS is a closed joint stock company owned by the State General Reserve Fund, Oman National Investments Development Company, Ministry of Defense Pension Fund, Muscat Municipality, Sultan Special Forces Pension Fund, the Royal Office Pension Fund and other state-owned entities. Founded in 2014 through the concerted efforts of 10 key government entities, ASAAS aims to increase the contribution of non-oil and gas sectors by initiating and developing economically sustainable projects.

Meethaq has adopted the best practices in Islamic banking and finance worldwide to combine a robust model which protects customers and complements the Islamic banking industry. Every Meethaq product goes through the process of Shari’a compliance certification by the Shari’a Supervisory Board and is created in line with the guidelines of the Central Bank of Oman.  Meethaq financing receivables rose to RO 970 million in 2017 compared to RO 855 million in 2016, recording an increase of 13.5 per cent.