Khalid Jamal Al Kayed

Bank Nizwa is the largest and fastest-growing fully-fledged Islamic bank in Oman, using innovative Islamic financing solutions and focusing on providing excellent customer service.

Bank Nizwa recently won the “Best Performing Company” award, and you were also chosen as the “CEO of the Year–Islamic Banking” at the Alam Al Iktisaad Awards 2021. What are the key management decisions you have made that contributed to this success?

The recognition we get is a result of the productive work of the whole team of Bank Nizwa. They have worked tirelessly to ensure that we continue to provide quality in all of our activities, and although I am really honored to have earned these accolades, I would like to express my heartfelt gratitude to them. At Bank Nizwa, our focus has been on sustainable development whilst providing long-term benefits to our customers. Bank Nizwa is a global leader in providing sharia-compliant banking solutions and products for consumers and shareholders, as evidenced by our great financial success. In addition, we now have a number of accolades to our name. We will continue to promote the advantages of financing that complies with Shari’ah law as a pioneer in the Islamic banking industry. The five-year strategy roadmap for Bank Nizwa was established in 2020 and is centered on the five development pillars of financial performance, technical improvement, market share, team and culture, and being a forward-thinking organization. Whilst on this path, the bank was able to develop its operations and make outstanding performance improvements. Bank Nizwa has been paving the way for change as the largest and fastest-growing fully-fledged Islamic bank in Oman by using innovative Islamic financing solutions, focusing on providing excellent customer service and assisting the expansion of local businesses.

Bank Nizwa has also recorded outstanding performance in its financial results. How did you navigate the crisis resulting from the pandemic and what instruments did Bank Nizwa rely on to facilitate a quick and stable recovery?

In spite of economic concerns due to the pandemic, Oman’s banking industry remained strong. The sector maintained a positive trajectory because of abundant capital and a low percentage of non-performing assets. Though credit risk has been well-managed, credit growth has slowed along with the economic downturn. This was furthered by the Central Bank of Oman’s easing policies, which included decreased capital conversion buffers, raised loan ratios, and decreased interest rates on repo operations, among others. In addition, the CBO started a number of policy initiatives to support banks and the nation’s economic recovery. In addition, the project finance sections of Islamic banks provide coverage and funding for national economic priorities. During the pandemic, for instance, clients were assisted with cash flow management to the extent that policy measures implemented by the Central Bank of Oman permitted. Major cities including Muscat, Sohar, Salalah, and Duqm remained the important focus regions. In Duqm, the emphasis was on development efforts that fit with national objectives. Special consideration was given to infrastructure projects and national priority industries across the Sultanate, with the participation of all stakeholders in the creation of sharia-compliant solutions with high economic value. The enormous growth of Islamic banking in the Sultanate over a short period is quite promising. Looking to the future, we are confident in our capacity to establish new, high-quality industry standards and elevate Oman’s standing in the global Islamic banking market.

In which segments of the economy is the bank seeing the most growth and opportunity today?

As the largest and fastest-growing fully fledged Islamic bank in the Sultanate, Bank Nizwa has recorded stellar growth as reflected in its financial results. Dedicated to bringing about a positive change in the economic landscape, Bank Nizwa continues its strategic roadmap of shaping the future of Islamic finance in the country by continuously recording outstanding performance in its financial results. As a testament to its progress, Bank Nizwa has turned in a commendable financial performance by registering a 6% growth in net profit. The bank’s total assets also increased by 6% in 2022, reaching OMR1.5 billion in Dec 2022 from OMR1.4 billion in December 2022. The gross financing portfolio improved by 10% to OMR1.27 billion, whilst the total customer deposit portfolio rose by 7% to OMR1.2 billion. This increase in financing and deposit portfolio in retail and corporate businesses has supplied the bank with the impetus it needs to maintain its growth trajectory.