The draft rules exclude commodity Murabaha and Tawrruq, two common market tools.
"The Central Bank was careful to ensure Islamic finance is of high standards," Mohammad Haris, Head of Islamic banking at Bank Sohar is quoted by Reuters as saying. "Certain areas, we believe, are too stringent such as liquidity management."
Omani bankers are said to be arguing that Oman's Islamic money market will be too shallow and undeveloped for them to access conveniently without using Tawarruq.
Banks have been lobbying regulators, asking that Tawarruq be made temporarily permissible until the market can develop other solutions, Reuters reported bankers as saying.
Oman's Central Bank told Reuters that the Islamic banking law was still being drafted, and would not comment on Tawarruq.
Alfalah Consultingis NOT providing any kind of loan to finance project etc and asking for a fee. If you've received any email claiming to be fromAlfalah Consulting, offering loan to you, please ignore it or inform us for further actions. Our official email is email@example.com. If you've received an email from firstname.lastname@example.org, that's NOT from us. Be cautious!