Oman Proposes New Bonds and Sukuk Regulation

Oman’s Financial Services Authority has issued a public consultation on new Bonds and Sukuk Regulation. If approved, this regulation will govern the Sultanate’s long-term debt market, offering flexibility in structuring diversified financing products such as Green and Sustainable Bonds and Sukuk, and Waqf Sukuk.

The regulation includes a chapter on disclosure rules, particularly those related to green and sustainable bonds and sukuk. Issuers will be required to adhere to these disclosure rules and terms to enhance the integrity of the capital market and attract conventional investors and those interested in sustainability.

The Bonds and Sukuk Regulation, along with the Commercial Companies Law (Oman Sultani Decree No. 18/2019) and the Securities Law (Oman Sultani Decree No. 46/2022), aims to align the national market with the latest global practices and standards.

The regulation is proposed in line with three strategic objectives: providing resilient and innovative financial instruments, issuing flexible legislation, and promoting the sustainable use and investment of resources and natural wealth.

The regulation will also allow the issuance of conventional bonds and Sukuk. It will incentivise Waqf Sukuk to aid the development of the Waqf sector, specifically in terms of activating monetary Waqf and the development of Waqf institutions, whether civil or charity institutions.

The aim is to broaden the base of subscribers and participants in Waqf activity. Bonds and Sukuk can be issued in Oman in any convertible currency, and the Authority will accept prospectuses in English for private placement.

The Regulations also contain provisions on special purpose companies, financial trusts, Sharia compliance, agents of beneficiaries or issuers, and general meetings.

Sultan bin Salim bin Said al-Habsi (pictured) is the Minister of Finance of Oman. He is also the chairman of Oman Investment Authority