Bank Nizwa seeks relaxation for investing funds overseas
Bank Nizwa is going to request the Central Bank of Oman (CBO) for allowing the bank to get relaxation in deploying funds in overseas markets for a certain period, until Sharia-compliant products are available within the domestic market. Dr Jamil Jaroudi, Chief Executive Officer of Bank Nizwa said there are restrictions in the new law that do not allow Islamic banks to achieve their full potential. The law for sukuk and takaful need to be issued, and the banking regulations have to be adjusted in order to attract Islamic investment, he added. The CBO needs to frame regulation for short-term instruments, which will allow Islamic banks to deploy their excess liquidity.