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​​​Oman is in the process of offering a takaful-based Shari'ah compliant protection scheme for deposits, investment accounts and other funds collected by Islamic banks and windows. This will complement the existing deposit protection scheme for conventional deposits.

The availability of such deposit protection scheme serves following key objectives:

  • Ensuring that fund providers in Islamic banking have a safety net in case the bank encounters financial difficulties.
    1. Protecting depositors/fund providers and potentially preventing bank runs, contributing to a more stable financial system.
      1. Making Islamic banking a more attractive option for potential depositors/fund providers, fostering the growth of the Islamic finance sector.​

​​To establish the Fund for launching this scheme, Islamic banks and windows contribute an initial amount to the fund, based on donation (tabbaru') contract, which is further supported by CBO's voluntary contribution. In addition, Islamic banking entities pay annual contributions to the fund. The fund protects eligible deposits according to the contract terms. All Islamic banks and windows in Oman are required to be members of the fund.

The scheme protects all deposit types in Oman's Islamic banking system, including current accounts (qard hasan), investment accounts and term deposits. All the sums in Islamic Deposit Protection Fund are invested in Shari'ah compliant instruments, as per approved investment rules.  

A Shari'ah governance framework ensures the Fund operates according to Islamic law. This includes ongoing supervision by the High Shari'ah Supervisory Authority (HSSA) and annual Shari'ah audit by an independent external auditor.

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