Al Hilal Islamic Banking services join hands with Bank Nizwa

Muscat: Oman’s first Islamic bank, Bank Nizwa and Al Hilal Islamic Banking Services from Ahli Bank, have entered into a Wakala Agreement which will facilitate Interbank placements between the two banks.

The agreement is an important first step by the two banks to develop Oman into one of the frontrunners in the international Islamic Banking space. Al Hilal Islamic Banking Services becomes the first Islamic bank to enter into such an agreement with Bank Nizwa.

The Wakala Agreement signed by the two banks is Shari’a compliant and follows the widely accepted AAOIFI (“Accounting and Auditing Organization for Islamic Financial Institutions”) standards making it easier for Omani banks to also engage with international Islamic banks for their interbank liquidity management.

The two banks emphasised their commitment to develop the local Islamic interbank market through mutual co-operation and thus set a precedent for other Islamic banks to sign similar agreements and to eventually develop a seamless Islamic banking infrastructure in the Sultanate.