Best Islamic bank: Meethaq Islamic Banking
As Oman’s Islamic banking sector continues to mature, Meethaq Islamic Banking – Bank Muscat’s Islamic arm – has maintained its leadership position through a combination of scale, product innovation and investment in digital capabilities.
Meethaq has focused on expanding access to Shariah-compliant finance for individuals, small and medium-sized enterprises (SMEs) and large corporates, supported by the largest dedicated Islamic banking network in the sultanate. In 2025, the bank expanded its footprint with new branches in Sumail, Izki and Shinas, taking its network to 32 branches and 20 priority banking centres, complemented by more than 64 dedicated self-service machines and access to Bank Muscat’s wider ATM network.
Its 2025 performance reflected the strength of the franchise. Meethaq’s assets increased by 5% year-on-year to OMR2.09 billion, while customer deposits grew 7% to OMR1.69 billion and gross Islamic financing reached OMR1.76 billion. The bank maintained market shares of 24% in Islamic financing and 22% in Islamic deposits.
Retail banking remained a key driver of growth, with Meethaq introducing targeted Shariah-compliant solutions, including Hajj financing, retiree financing and Oman’s first Islamic medical finance product. The bank also continued to promote savings through products such as its premium savings account, children’s savings initiatives, the Neswa savings account for women and goal-based savings plans.
Digital transformation was another differentiator. Meethaq expanded digital onboarding, account opening, card management, payments and investment services, reaching more than 91,000 digital banking subscribers. Retail digital transactions grew 69%, while corporate digital transactions increased 126% during the review period.
Beyond retail, Meethaq strengthened its role in supporting Oman’s economy. SME financing grew 6.4%, while the bank supported major corporate transactions, including a OMR70 million Shariah-compliant facility for Oman Water & Wastewater Services Company. In Islamic capital markets, Meethaq became Oman’s first International Islamic Liquidity Management Corporation (IILM) primary dealer and acted as joint issue manager for sovereign sukuk issuances.
Through its combination of scale, innovation and Islamic finance expertise, Meethaq continues to set the benchmark for Shariah-compliant banking in Oman.
Best sukuk deal: Mashreq Al Islami
Oman $1 billion sukuk
Mashreq Al Islami acted as joint lead manager and bookrunner on the Government of the Sultanate of Oman’s $1 billion sovereign sukuk issuance in October 2025. The issuance marked Oman’s successful return to international bond and sukuk markets after a four-year absence, signalling renewed investor confidence in the sovereign.
The offering, which was listed on the main market of the London Stock Exchange, utilised an ijarah structure. With a yield of 4.525%, and pricing eight basis points inside the Saudi benchmark curve, the sukuk achieved Oman’s tightest ever spread. More than 100 global investors participated in the issuance, resulting in 2.5x oversubscription.
