New regulations for Bonds and Islamic Sukuk

Oman’s Financial Services Authority Announces Groundbreaking Bonds and Sukuk Regulation. New Framework Introduces Green and Sustainable Financing Options to Boost Private Sector Investment.

The Sultanate of Oman’s Financial Services Authority (FSA) has taken a decisive step to revitalize the Sultanate’s debt market with the introduction of new bonds and Sukuk regulations. By repealing the old Sukuk regulations No 3-2016 and introducing a comprehensive framework Bonds and Sukuk Regulation No. 21-2024, the FSA aims to enhance the diversity and sustainability of financing options available in Oman’s capital market.

The newly enacted regulations signify a pivotal move towards broadening the scope of financial instruments in Oman, encouraging innovative and sustainable investment solutions. Among the highlights of this regulatory overhaul are the provisions for Green and Sustainable Bonds and Sukuk, Waqf Sukuk, and special types of bonds and Sukuk tailored to meet the unique financing needs of both investors and issuers.

This reform is part of the FSA’s ongoing efforts to modernize the Sultanate’s financial services and provide robust support for new investments and existing projects within the private sector. The inclusion of a dedicated chapter on disclosure rules, particularly for green and sustainable bonds and Sukuk, underscores the FSA’s commitment to transparency and integrity in the capital market. Issuers of such securities are now obliged to adhere to stringent disclosure standards, paving the way for a more informed and sustainable investment landscape.

The introduction of these regulations marks a significant milestone in Oman’s journey towards fostering a dynamic and sustainable financial ecosystem. By enabling the structuring of diversified financing products, the FSA not only meets the current needs of the market but also anticipates future trends in global finance, including the growing importance of environmental, social, and governance criteria among investors.