Oman’s debut sovereign sukuk sets precedent

Author: Lizzie Meager | Published: 28 Oct 2015

Oman’s debut sovereign sukuk sets precedent

The Omani government this week priced its first ever sovereign sukuk, sending a strong signal to its domestic market that it supports the development of Islamic finance.

The 200 million rial ($520 million) benchmark issuance took on an ijara structure – meaning it is backed by government-owned land – for a tenor of five years.

Jonathan Fried, head of Middle East capital markets at Linklaters who advised the government’s Ministry of Finance on the issuance, said its purpose is to incite both Oman’s capital markets and its Islamic finance industry.

This is something Shearman & Sterling’s Barry Cosgrave agrees with. "A...