Muscat, Oman: Muzn Islamic Banking, the Islamic banking window of National Bank of Oman (NBO), has introduced a new Islamic Commercial Finance solution aimed at supporting Omani entrepreneurs and business owners through Shariah-compliant financing for business activities, commercial investments and small and medium-sized enterprises (SMEs).
The financing facility is designed for eligible salaried Omani nationals who own or invest in businesses. Salary assignment serves as the primary repayment source, while other eligible income may also be considered when assessing the applicant’s Debt Burden Ratio (DBR), subject to the bank’s requirements.
Commenting on the launch, Salima Obaid Issa Al Marzouqi, Assistant General Manager and Chief Islamic Banking Officer at NBO, highlighted the contribution of entrepreneurs and business owners to Oman’s economic growth and diversification. She explained that the new facility is intended to provide greater flexibility for customers seeking to strengthen working capital, acquire essential business assets or invest in commercial property.
The Islamic Commercial Finance solution covers both working capital requirements and long-term fixed asset investments through different Shariah-compliant financing structures.
Under Murabaha Working Capital Financing, eligible customers can obtain financing for stocks, inventory, raw materials, finished goods, machinery, equipment, commercial vehicles, boats and computer systems. The facility offers financing tenures of up to seven years, helping businesses manage operational requirements and support their day-to-day activities.
For longer-term investments, the bank offers Fixed Asset Financing to support the acquisition of commercial vehicles, plants and machinery. It also covers the purchase, construction and renovation of commercial properties, including offices, warehouses and other buildings.
This financing is available through Diminishing Musharakah and Forward Diminishing Musharakah structures, with repayment tenures extending up to 15 years. The facility is intended to help eligible business owners finance major assets and develop their commercial operations over the longer term.
The launch underscores Muzn Islamic Banking’s focus on expanding its Shariah-compliant financial offerings in response to the changing needs of businesses across the Sultanate of Oman. By providing eligible salaried Omani business owners and investors with access to financing assessed against salary and other qualifying income, the bank aims to facilitate commercial investment and encourage sustainable business development.
The initiative also supports the broader role of Islamic finance in providing Shariah-compliant funding options for entrepreneurs, SMEs and commercial ventures in Oman.