Dubai Islamic Bank’s (DIB) said its Sharia consultancy and advisory unit, Dar Al Sharia Legal & Financial Consultancy, has reached an agreement to provide consultancy services to Bank Sohar, the fourth largest bank in Oman.

The Bank Sohar move comes following last year’s decision by the Central Bank of Oman to allow banks in the Sultanate to offer dedicated Islamic banking windows.

Dar Al Sharia said it will help Bank Sohar to bring authentic Sharia-compliant banking products and services to customers in Oman.

Under the agreement, Dar Al Sharia will advise Bank Sohar on the development of Sharia-compliant products, as well as on matters concerning Sharia governance and documentation.

Bank Sohar has identified three key areas to ensure that its Islamic window is genuine and authentic, namely, the proper training and development of staff; a certified Islamic banking system of operations; and products that are fully grounded in Sharia Law and supported by Fatawa from respected scholars.

Dr Hussain Hamed Hassan, the managing director of Dar Al Sharia, a renowned Sharia scholar and chairman of DIB Sharia Board said: 'The move by Bank Sohar to begin Islamic banking operations is well timed, given the significant efforts of the Central Bank of Oman towards promoting the Islamic finance industry in the Sultanate.'

'I am confident that the combination of Bank Sohar’s service excellence and Dar Al Sharia’s unrivalled expertise and experience will succeed in providing the people of Oman with best-in-class Islamic banking products,' he stated.

Dr Mohamed Abdulaziz Kalmoor, CEO of Bank Sohar, said: “We are pleased to partner with Dar Al Sharia, a reputed Sharia consultancy, to make sure that there is no compromise in the development of Sharia-compliant products, processes and systems, and to also make sure that employees are trained by experts from the region.”-TradeArabia News Service