Meethaq signs RO16mn term finance agreements with ASAAS
Meethaq, the pioneer of Islamic banking in Oman from Bank Muscat, and two subsidiary companies of Muscat National Development and Investment Company (ASAAS) signed term finance agreements with a total value of RO16mn for an upscale three star hotel in Muscat and a crew reporting terminal at the airport.
According to a press release, Sulaiman al Harthy, deputy CEO - Islamic banking at Bank Muscat and Eng Khalid bin Hilal al Yahmadi, CEO of ASAAS, signed the Sharia’a compliant term finance agreements at Hormuz Grand Hotel.
Meethaq signed the first agreement with Al Khuwair Hospitality and Investment Company for a term finance facility of RO10.63mn to part finance the three star hotel to be operated by Hilton Garden Inn. The second agreement was signed with Hasaad Real Estate Company to extend RO5.62mn term finance for the crew reporting terminal to be leased to Oman Air.
Yahmadi said, “ASAAS is proud to join hands with Meethaq for the term finance agreements which mark the first bank financing for ASAAS projects with a total value of RO16mn. ASAAS believes in the importance of co-operation and partnership between the public and private sectors to enhance the government’s efforts to achieve the desired economic diversification and we are committed to achieving this objective. The establishment of various projects by ASAAS is aimed at enhancing social and economic development in the sultanate.”
Harthy said, “Meethaq is proud to be associated with ASAAS projects as part of its commitment to promote investment opportunities in Oman.
As the pioneer of Islamic banking in Oman, Meethaq recognises the immense investment prospects and potential that Oman offers and is committed to supporting strategic development initiatives in line with Oman’s Vision 2040 economic blueprint. Within four years of operations, Meethaq has crossed a milestone of over RO1bn in assets and consolidated its leadership position, recording many achievements contributing to the growth and development of the sultanate’s economy.”
ASAAS is a closed joint stock company owned by the State General Reserve Fund, Oman National Investments Development Company, Ministry of Defence Pension Fund, Muscat Municipality, Sultan Special Force Pension Fund, the Royal Office Pension Fund and other state-owned entities. Founded in 2014 through the concerted efforts of ten key government entities, ASAAS aims to increase the contribution of non-oil and gas sectors by initiating and developing economically sustainable projects.