Analysts say that the banking industry in Oman can look forward to taking advantage of the 'potential' of Islamic finance after it was approved by His Majesty Sultan Qaboos bin Said.
With existing banks now able to provide Islamic banking products, the sultanate will be able to take its share of an industry estimated to be currently worth US$20bn worldwide.
Along with the decision to allow Islamic finance products, the green light was also given to set up an Islamic bank in the sultanate. However, bankers feel that a new standalone Islamic bank in the sultanate would take shape only after the Central Bank of Oman (CBO) comes out with a new set of regulations.