Call it Sharia euphoria. Anything in Oman with the words "Islamic bank" in the name has been selling like hot cakes recently.
The surge comes as the sultanate eases long-standing restrictions on the rapidly growing industry and investors plough in.
BankMuscat is the latest beneficiary. Its rights issue, completed yesterday, raised 96.7 million Omani rials. The rights issue was 127.49 per cent oversubscribed - all the more remarkable given the fact Dubai Group, the bank's second-biggest shareholder, did not participate. Dubai Group is an arm of Dubai Holding. The group owns a 14.7 per cent stake in BankMuscat.
The bank said the proceeds would be used for "financing growth resulting from the credit expansion and following general economic growth in Oman, capitalising the Islamic banking business and enhancing capital adequacy ratio to enable readiness for adoption of Basel III when introduced".
The Islamic bank is what is really exciting investors. Oman's largest lender would also start from an established position of strength, unlike newly established rivals.
Bank Nizwa attracted $1.77 billion in an initial public offering concluded in May, which is impressive, considering it has no branches, customers or operations to speak of. And bringing up the rear - but no less potent - is Al Izz Islamic Bank, which boasts support from Abu Dhabi's Aabar Investments and Tasameem Real Estate, two deep-pocketed investors with links to government.
Experience in other markets shows the establishment of Islamic banks has been a "key system growth driver", according to a recent report from Deutsche Bank.
Such lenders grow the size of the market by adding customers who shun bank accounts that bear interest, prohibited under Sharia law.
"We believe BankMuscat will be a key Islamic banking participant, reflecting its incumbent position, its superior distribution infrastructure and likely broad product suite," the report said.
[ ghunter@thenational.ae ]
The specs: Panamera Turbo E-Hybrid
Engine: 4.0-litre twin-turbo V8 hybrid
Power: 680hp
Torque: 930Nm
Transmission: Eight-speed dual-clutch auto
Price: From Dh749,000
On sale: Now
The specs: 2024 Panamera
Engine: 2.9-litre twin-turbo V6
Power: 353hp
Torque: 500Nm
Transmission: Eight-speed dual-clutch auto
Price: From Dh408,200
On sale: Now
TWISTERS
Director:+Lee+Isaac+Chung
Starring:+Glen+Powell,+Daisy+Edgar-Jones,+Anthony+Ramos
Rating:+2.5/5
Kill
Director: Nikhil Nagesh Bhat
Starring: Lakshya, Tanya Maniktala, Ashish Vidyarthi, Harsh Chhaya, Raghav Juyal
Rating: 4.5/5
The specs
Engine: 2.0-litre 4-cylturbo
Transmission: seven-speed DSG automatic
Power: 242bhp
Torque: 370Nm
Price: Dh136,814
PROFILE
Name: Enhance Fitness
Year started: 2018
Based: UAE
Employees: 200
Amount raised:+$3m
Investors: Global Ventures and angel investors
The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Confirmed bouts (more to be added)
Cory Sandhagen v Umar Nurmagomedov
Nick Diaz v Vicente Luque
Michael Chiesa v Tony Ferguson
Deiveson Figueiredo v Marlon Vera
Mackenzie Dern v Loopy Godinez
Tickets for the August 3 Fight Night, held in partnership with the Department of Culture and Tourism Abu Dhabi, went on sale earlier this month, through www.etihadarena.ae and www.ticketmaster.ae.
SPECS
Engine: 4-litre V8 twin-turbo
Power: 630hp
Torque: 850Nm
Transmission: 8-speed Tiptronic automatic
Price: From Dh599,000
On sale: Now
COMPANY PROFILE
Name: Xpanceo
Started: 2018
Founders: Roman Axelrod, Valentyn Volkov
Based: Dubai, UAE
Industry: Smart contact lenses, augmented/virtual reality
Funding: $40 million
Investor: Opportunity Venture (Asia)
Star Wars: Ahsoka
Director: Various
Starring: Rosario Dawson, Natasha Liu Bordizzo, Lars Mikkelsen
Rating: 4/5
The specs: 2018 Audi RS5
Price, base: Dh359,200
Engine: 2.9L twin-turbo V6
Transmission: Eight-speed automatic
Power: 450hp at 5,700rpm
Torque: 600Nm at 1,900rpm
Fuel economy, combined: 8.7L / 100km
EMIRATES'S REVISED A350 DEPLOYMENT SCHEDULE
Edinburgh: November 4 (unchanged)
Bahrain: November 15 (from September 15); second daily service from January 1
Kuwait: November 15 (from September 16)
Mumbai: January 1 (from October 27)
Ahmedabad: January 1 (from October 27)
Colombo: January 2 (from January 1)
Muscat: March 1 (from December 1)
Lyon: March 1 (from December 1)
Bologna: March 1 (from December 1)
Source: Emirates
COMPANY PROFILE
Company name: Revibe
Started: 2022
Founders: Hamza Iraqui and Abdessamad Ben Zakour
Based: UAE
Industry: Refurbished electronics
Funds raised so far: $10m
Investors: Flat6Labs, Resonance and various others
Know your Camel lingo
The bairaq is a competition for the best herd of 50 camels, named for the banner its winner takes home
Namoos - a word of congratulations reserved for falconry competitions, camel races and camel pageants. It best translates as 'the pride of victory' - and for competitors, it is priceless
Asayel camels - sleek, short-haired hound-like racers
Majahim - chocolate-brown camels that can grow to weigh two tonnes. They were only valued for milk until camel pageantry took off in the 1990s
Millions Street - the thoroughfare where camels are led and where white 4x4s throng throughout the festival
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
COMPANY PROFILE
Company name: Nomad Homes
Started: 2020
Founders: Helen Chen, Damien Drap, and Dan Piehler
Based: UAE and Europe
Industry: PropTech
Funds raised so far: $44m
Investors: Acrew Capital, 01 Advisors, HighSage Ventures, Abstract Ventures, Partech, Precursor Ventures, Potluck Ventures, Knollwood and several undisclosed hedge funds
COMPANY PROFILE
Name: SmartCrowd
Started: 2018
Founder: Siddiq Farid and Musfique Ahmed
Based: Dubai
Sector: FinTech / PropTech
Initial investment: $650,000
Current number of staff: 35
Investment stage: Series A
Investors: Various institutional investors and notable angel investors (500 MENA, Shurooq, Mada, Seedstar, Tricap)