Oman finally opens door to Islamic banks

MUSCAT, May 3 (Reuters): Oman will open the door to Islamic banks and also let conventional lenders run Sharia-compliant operations in a bid to grab a share of the rapidly growing Islamic finance business. A central bank official told the reporter Tuesday that applications were open for the creation of Oman's first standalone Islamic bank, after a decree from ruler Sultan Qaboos Bin Said. "His majesty approved the establishment of an Islamic bank and allowing the banks in the sultanate to open new branches if they wish so," a circular posted on Oman News Agency said. Existing banks will not be allowed to switch to become Islamic banks, the official added. Oman is the only state among the six Gulf Cooperation Council (GCC) members which until now has not set up a bank specifically offering products and services complying with Islamic law.