Trowers & Hamlins advises Nakheel Oman Development Company SAOC on OMR10.4 million Musharakah financing made available by Bank Nizwa SAOG
Trowers & Hamlins has advised Nakheel Oman Development Company SAOC (Nakheel Oman) in relation to the Sharia compliant financing of up to OMR10.4 million made available by Bank Nizwa SAOG (Bank Nizwa).
Proceeds from the financing will be used by Nakheel Oman to finance the development and construction of a dates processing industrial complex in Nizwa. This follows from the announcement in 2009 of an initiative for one million date palm trees to be planted in Oman (Million Date Palm Plantation Project).
Nakheel Oman, a joint venture company incorporated between Oman National Investments Development Company "TANMIA" and the Diwan of Royal Court (represented by the Directorate General of Million Date Palm Plantation Project), was established in 2018 to invest in an array of endeavours related to date palm products to contribute to food security in the Sultanate of Oman and to enhance, by extension, the economic, social, cultural, and environmental resources in the Sultanate.
A signing ceremony was held in the Sultanate of Oman to commemorate the start of this relationship between Nakheel Oman and Bank Nizwa, which was attended by, among others, Khalid Al Khaili, Chairman of Bank Nizwa and Khalid al Kayed, CEO of Bank Nizwa and by Dr. Saif Rashid Saif Al Shaqsi, Chairman of Nakheel Oman and Rashid Saif Al Mardhoof al Saadi, Vice Chairman of Nakheel Oman and Ali Said Al Uraimi, General Manager of Nakheel Oman.
Al Khalili, Chairman of Bank Nizwa commented, “Bank Nizwa will continue to invest in projects that not only promise great returns but also positively impact the communities we operate in. The financing of Nakheel Oman Development Company is a testament to our commitment to the principles of Islamic finance, and Bank Nizwa will play a significant role in supporting the government’s diversification plan as well as its endeavors on food security.”
Dr. Al Shaqsi, Chairman of Nakheel Oman, commented, “The development of a national strategic framework on Date Palm Management and Sustainability is critical to the long-term economic and cultural vision of Oman. The project not only underpins economic growth, but also supports the people of Oman by preserving their culture, legacy, and generating employment opportunities.”
Elias Moubarak, the Trowers & Hamlins partner who led the team advising Nakheel Oman commented, "Congratulations to Nakheel Oman and Bank Nizwa on concluding the financing for this important project. Trowers and Hamlins has had a presence in Oman for over 40 years and we continue to be invested in promoting the success of the Sultanate. We are therefore proud and privileged to have been able to use our Islamic finance and Oman law expertise to support Nakheel Oman in relation to this strategically important project that will have a positive and lasting impact for the people of Oman."
The Trowers & Hamlins team who advised on this deal was led by partners Salman Ahmed and Elias Moubarak with support from senior associate, Nicol Ong and associates, Leanda Arul and Lydia Clatworthy.