A Thailand-headquartered holding company announced a move to acquire equity stake in an Omani financial services provider, with the aim of boosting the Sultanate’s Islamic home financing landscape. NESSREEN TAMANO writes.
BCIB Holding Co, which focuses on financial services and investment banking and the parent company of Bastion Commonwealth Investment Bank (BCIB) in the UK, made a move to acquire a 20% equity stake in Amwalus Finance, a Delaware-incorporated company operating in Oman and specializing in Shariah compliant, asset-backed financing for affordable housing, infrastructure and sustainable community development across the GCC.
The deal is supported by a US$5 billion medium-term note issued by BCIB Holding Co, and marks a strategic alliance aiming to accelerate the development and Shariah compliant financing of affordable housing, first in Oman and then in the broader GCC region.
“This strategic investment, backed by institutional financing through BCIB, underscores our dedication to fostering inclusive and sustainable development in the region,” said Low Chun Keong, the managing director of BCIB Holding Co.
“With this collaboration, and the support of BCIB, we are well-positioned to scale our impact across the GCC and meet the growing demand for ethical, inclusive housing solutions,” added Wassem Mesto, the managing director of Amwalus Finance.
BCIB Holding has partnerships across Asia, Europe and the Americas, while its subsidiary BCIB specializes in sovereign finance, ESG and Islamic finance and digital financial infrastructure. Amwalus Finance meanwhile partners with governments and developers to provide capital through Sukuk, medium-term notes and Islamic project financing.
The two entities’ partnership supports Oman’s national housing and sustainability goals, which saw significant development with the January 2024 launch of the Iskan program – a government-backed initiative featuring a robust Shariah compliant segment designed to accelerate and expand access to affordable housing finance for Omani citizens. The program, supported by a lending portfolio of OMR1.9 billion (US$4.94 billion), is a collaboration between Oman Housing Bank, the Ministry of Housing and Urban Planning, the Ministry of Finance and a consortium of local Islamic and conventional banks
