The Central Bank of Oman has launched an electronic system to provide Shari’a-compliant OMR liquidity management instruments for Islamic Banking Entities (IBEs) in the Sultanate, effective from 26 August 2025. The Islamic liquidity management products and related contracts have been reviewed and approved by the High Shari’a Supervisory Authority at the Central Bank of Oman. At this stage, the system offers two liquidity provision instruments, Qard Hassan and Restricted Mudaraba. Liquidity is provided against IBEs’ holdings of acceptable Shari’a-compliant securities as collateral, with Qard Hassan designed to provide intraday liquidity and Restricted Mudaraba structured as short-term liquidity where the Central Bank of Oman acts as Rab Al-Mal and IBEs act as Mudarib for investment in Shari’a-compliant transactions. The platform also supports the issuance of Shari’a-compliant government securities such as Islamic Treasury Bills and Sukuk, and is intended to accommodate additional liquidity absorption instruments at a later stage. The system is integrated with national financial market infrastructure, including the Real Time Gross Settlement system and the Muscat Clearing & Depository systems.
Central Bank of Oman 2025-09-10
Central Bank of Oman launches electronic system for Shari’a-compliant liquidity management and introduces Qard Hassan and Restricted Mudaraba
The Central Bank of Oman has launched an electronic system for Shari’a-compliant OMR liquidity management instruments for Islamic Banking Entities, effective 26 August 2025. The system offers Qard Hassan for intraday liquidity and Restricted Mudaraba for short-term liquidity, with collateralized Shari’a-compliant securities. It also supports the issuance of Islamic Treasury Bills and Sukuk, integrated with national financial market infrastructure.