Pioneering Oman's first hybrid Ijara-Wakala Sukuk

We acted as sole transaction counsel to Energy Development Oman (EDO) on the establishment of its Sukuk issuance programme and its inaugural issuance, working across Oman.

The transaction required an innovative approach. The Sukuk combines Ijara and Wakala arrangements, the first structure of its kind used in Oman. We developed bespoke documentation to reconcile Shari'ah principles with Omani securities regulation and the mechanics underpinning the programme.

Our mandate covered the full lifecycle of the project, including programme establishment, Shari'ah structuring, regulatory analysis and compliance, documentation design, and guidance through EDO's inaugural issuance. National Bank of Oman and Muzn Islamic Banking acted as issue managers.

By designing and delivering a new structure for the Omani market, our team helped EDO establish a significant new funding platform while creating a precedent for future Sukuk issuances in the jurisdiction. The transaction demonstrates our ability to bring together cross-border expertise to deliver complex Islamic capital markets structures for strategically important clients.

A first for Oman's capital markets

EDO's inaugural Sukuk was an OMR 50 million issuance under its OMR 1 billion programme. The three-year Sukuk carries a 4.40% profit rate and uses a combination of Ijara and Wakala arrangements, a first in Oman. EDO described the issuance as helping to develop the domestic capital market as the first government-related entity issuer. As Oman's national energy company, EDO manages and develops the country's oil and gas assets and pursues new growth opportunities in the energy sector, with its strategy aligned to Oman Vision 2040.