MANAMA: Kuwait Finance House-Bahrain (KFH-Bahrain) and Meethaq Islamic Banking Group, the Islamic window of Bank Muscat, have signed a memorandum of understanding aimed at supporting joint business opportunities in Islamic banking.

This relates to areas of treasury transactions, trade finance and capital markets (sukuk and syndications in Oman).

In terms of interbank relationship, the MoU particularly addresses “WASI”, an overnight liquidity management product launched by KFH-Bahrain.

The MoU was signed by KFH-Bahrain managing director and chief executive Abdulhakeem Alkhayyat and Meethaq Islamic Banking Group general manager Sulaiman Al Harthy.

“We are happy to add Meethaq Islamic Banking to our growing list of partners who work with us to offer distinctive services and products,” Mr Alkhayyat said.

Mr Al Harthy said Oman expects to see substantial growth in the Islamic banking industry within the coming years.

“We consider our partnership with KFH-Bahrain a great advantage to maximise mutual favourable opportunities that lie ahead and expand our coverage.

“We will work with KFH-Bahrain to offer various Islamic finance products including treasury transactions, trade finance and capital markets business in Oman, with sukuk and syndications in particular,” he added.

“Oman has a growing Islamic banking industry with sound regulations, laws and transparency. The Meethaq Group is working to strengthen its presence in the sultanate by expanding its branches and offering various banking products and services that comply with Islamic law.”

Bank Muscat/Meethaq Islamic Banking Group is the first financial institution in the sultanate to get a licence from the Central Bank of Oman and the first to introduce Sharia-compliant products to the public.

Since beginning full-fledged Islamic banking operations in January last year, Meethaq Group has become the pioneer of Islamic banking in Oman.