MUSCAT -- Since issuing a decree to establish an Islamic financial services sector in May, Oman has seen a flurry of activity as banks have started gearing up to move into the new market. As well as the establishment of new Islamic banks, the sector is also seeing an upsurge of sharia-compliant services at convention institutions as well as movements in other financial services to offer Islamic products. Bank Nizwa was the first institution to be granted a licence from the Central Bank of Oman (CBO) to become a fully-fledged Islamic bank. In mid-August, Bank Al Izz, which had been granted a conventional licence in September 2010, followed suit and decided to pursue an Islamic licence instead. Ali Hamdan al Raisi, vice-president of Oman's central bank, expects the banks to open in one or two years.

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