Dhofar Islamic expands Shariah advisory role with OQBI post-IPO
In a significant endorsement of its growing stature in the Islamic finance domain, Dhofar Islamic – the Islamic banking window of BankDhofar – has been appointed as Independent Shariah Advisor to OQ Base Industries (OQBI), a leading player in Oman’s petrochemical sector .Under the terms of this new mandate, Dhofar Islamic will conduct quarterly Shariah screening of OQBI’s business and financial activities, based on the company’s published financial statements.
Commenting on the appointment, Amor Said Mohamed Al Amri, Chief Islamic Banking Officer at Dhofar Islamic, said: “We are honored to continue supporting OQ Base Industries in its growth journey by ensuring alignment with Islamic finance principles. This appointment reflects the confidence major corporates have in our Shariah expertise and underscores our commitment to fostering ethical, transparent, and Shariah-compliant financial practices across Oman’s industrial and capital markets landscape.”
Following the assessment, Dhofar Islamic will issue a Shariah Compliance Certificate endorsed by its Shariah Supervisory Board (SSB). This certification will be used by OQBI for submission to the Muscat Stock Exchange (MSX) and shared with investors and stakeholders as confirmation of the company’s adherence to Islamic finance principles.
The appointment builds on Dhofar Islamic’s earlier engagement with OQBI during its highly successful Initial Public Offering (IPO) on the Muscat Stock Exchange in December 2024. In its role as Shariah Advisor for the IPO, Dhofar Islamic provided comprehensive advisory services to ensure the offering met Islamic finance requirements, culminating in the issuance of a formal fatwa certifying the IPO’s Shariah compliance. The IPO raised USD 490 million through the sale of 49 per cent of OQBI’s equity, marking a pivotal moment in the company’s transformation from a wholly state-owned enterprise to a publicly listed entity.
Since then, Dhofar Islamic has continued to provide Shariah-compliant banking services to OQBI, including facilitating several deposit placements from the company. This ongoing collaboration highlights Dhofar Islamic’s position as a trusted partner for large corporate clients navigating the intersection of ethical finance and commercial growth.
OQ Base Industries, located in the Salalah Free Zone, operates an integrated petrochemical complex that produces methanol, ammonia, and liquefied petroleum gas (LPG), including propane, butane, and condensate. With a total production capacity of approximately 1.8 million tonnes annually, OQBI exports its products to more than 15 countries across three continents, underlining its robust global presence. The company is 51 per cent owned by OQ Group, a wholly government-owned enterprise under the Oman Investment Authority (OIA).
Following its public listing, OQBI reported total revenue of approximately USD 510 million for 2024, supported by an adjusted EBITDA margin of 43.1 per cent. Its estimated market valuation currently stands at around USD 1 billion.
It is worth noting that Dhofar Islamic recently expanded its branch network to include 30 branches across all governorates of the Sultanate of Oman, offering its products to all segments of society, from children and minors to youth and women, to meet their diverse banking needs. It is constantly keen to keep pace with the numerous developments taking place in the Islamic banking sector to provide innovative banking solutions that comply with the highest standards. Quality and compliance with the provisions of Islamic Sharia.
