- AMJ advises on first sukuk issue in Oman
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Abdul Samad Al Maskari, CEO, Al Madina Investment.
AMJ advised on the Omani law aspects of a 50 million rial ($130 million) sukuk (Islamic debt capital market instruments) the first of its kind in Oman arranged by Al Madina Investment SAOG for Omani real estate developer Tilal Development Co SAOC.
The five-year sukuk, offering a profit rate of 5 percent and based on an ijara structure, a leasing arrangement commonly used in other Islamic markets, was privately placed with investors. Tilal, 40 percent-owned by sovereign wealth fund Qatar Investment Authority, will use proceeds from its sukuk to expand the Tilal Complex in Muscat which includes the Muscat Grand Mall as well as residential and office space. This pioneering corporate sukuk issue involved complex issues arising from the absence of a sukuk regulatory framework in Oman.
It comes as the Central Bank of Oman executive president, Hamoud Al Zadjali announced the formation of a panel to look into issuing a sovereign sukuk in the coming year.