Al Hilal Islamic Banking Services (the ‘Bank’) segments the market of Oman for its business into the following:

1. Deposits Side

  • Investors/Depositors
    • Giving opportunity to savers Sharia compliant investment avenues to invest with the Bank and earn competitive returns.
    • The target market is all entities such as individuals, companies, firms, societies, government organizations, statutory bodies, public and private institutions and etc.
    • The Bank has Savings and Investment Term Deposit Accounts.
    • By investing in the Bank’s savings account the depositor (Rabb ul-Mal) authorized the Bank (Mudarib) to invest his/her funds under the unrestricted Mudaraba contract. The Bank invests these deposits in its Mudaraba pool along with other deposits and the equity. The profit on the Mudarabah pool is distributed amongst the investors, taking into consideration the tenor, amount of the depot and profit payment frequency for the account.
    • By investing in the Bank’s Investment Term Deposit the depositor (Rabb ul-Mal) authorized the Bank (Mudarib) to invest his/her funds under the unrestricted Mudaraba contract. The Bank invests these deposits in its Mudaraba pool along with other deposits and the equity. The profit on the Mudaraba pool is distributed amongst the investors, taking into consideration the tenor, amount of the depot and profit payment frequency for the account.
  • Deposits who wants to keep their money safe with the Bank
    • The Bank’s current account is a non-remunerative checking account designed for individuals who need to transact frequently though their accounts. It specifically appeals to businessmen and salaried individuals who need to make frequent payments and deposits and hence require a low-cost transactional account.
    • The Bank’s current account is based on the principle of Qard. Where by the depositor allows the Bank to use its capital in a halal way, but the bank does not pay any profit on such account. However, the bank endures safe-custody of all depicted capital and makes the capital available, when it is required.
    • The target market is all entities such as individuals, companies, firms, societies, government organizations, statutory bodies, public and private institutions and etc.


2. Financing Side

On financing side the Bank shall offer innovative products for retail, SME and corporate banking customers. Following are the asset side products and their description:

  • Retail BankingIn retail banking the Bank will offer housing finance, auto finance and credit card to consumer banking customers. The customers can be salaried and business individuals.
  • Housing FinanceThe Bank’s House finance is a Sharia compliant, affordable and hassle free banking product. Al Hilal Islamic is committed to meet customer’s needs in a Sharia complianct manner with excellent services. Our House Finance gives you an opportunity to own a house in halal way that is free from any interest.
  • StructureHouse finance product of the Bank is structured on Murabaha, Musharaka cum Ijara, Ijara Muntahiya Bit Tamleek and Istisna mode of shariah principles.
    Customer interested in house finance approaches the Bank with a request, which could be to finance a ready property, semi constructed, purchase of land with the plans of construction.
  • Ready PropertyThe product is based on the principle of Ijara Muntahiya Bil Tamleek. On the request of the customer, the Bank purchases the property and signs an Ijara agreement with the customer. The customer pays the monthly/periodical rent to the Bank.
    The customer at the end of the rental period purchases the property through a separate sale agreement and by surrendering the security deposit as the residual cost of the property.
  • ConstructionThe Bank signs the Musharaka agreement with the customer. The customer has to make the equity participation either by contributing in the purchase of property or by assigning the land (if the land on which the customer has requested for construction is in his ownership) as a share in partnership. The Bank authorizes the partner to complete the construction work.
    Simultaneously the Bank also signs a forward Ijara with the customer where the customer undertakes to take the same property on rent once completed. The rentals mentioned therein are only indicative. The forward Ijara converts into Ijara once the construction completes. Other processes are same as are in the financing of ready property.
  • Auto FinanceAl Hilal Islamic Auto finance product is based on Murabaha principle. It is Oman’s first interest free auto financing product that is ideally launched for individuals looking for auto financing while avoiding an interest based transaction.According to the product the customer submits application for auto finance for his/her desired vehicle. The Bank purchases the vehicle from a third party on spot payment basis and sells to the customer on cost plus profit basis that may be paid by the customer on instalments.


3. Credit Card

Visa Islamic Credit Cards

To cater to the need of customers, Al Hilal Islamic Services has developed first of its kind Shari’a based Credit card product. The Credit Card, which is based on the principle of Ujra, is the first ‘Socially Responsible’, credit card in the Sultanate of Oman, which gives flexibility to a cardholder to utilize card limit for any Shari’a compliant purposes and pay certain fee against the availed services. The product is designed in such a way that it is free of any ambiguity and interest. As per Shari’a rules, Al Hilal Islamic cannot charge customers with any interest amount on the amount withdrawn through the card and in cases cardholder delays in making timely payment, the cardholder undertakes to certain amount as charity, which is not considered as an income of Al Hilal Islamic Banking Services, rather that is spent for charity purposes. The product entails two variants:

  • Visa Signature Credit Card
  • Visa Platinum Credit Card


Features and Benefits:

  • Tie up with Charity Organizations in Oman. Al Hilal Islamic Banking Services contributes 0.50% to charity organization every time the cardholder uses his/her card on purchase transaction
  • Objective is to promote ‘Social Responsibility’. Every time the card is used at POS, the cardholder will have a feel of contributing to charity.
  • Providing flexibility to cardholder to select the Card Type, Credit limit and Monthly fee which he/she wishes to pay.
  • Sharia compliant –  Concept of charging  monthly fees
  • Usage blockage in non-Sharia compliant areas such as alcohol, pork related products, gambling, casinos etc.
  • Takaful insurance coverage on the Card.
  • SMS Alert, Purchase protection, ID theft protection on Card.


Value Added Services for Visa Signature Card

–       Free Unlimited Access to Over 500 Airport Lounges Globally

–       Free 24 Hours Concierge Services

–       Up to 25% Discount on Fine Dining Restaurants

–       Multi Trip Insurance Up to USD 500,000 – Medical, Personal and Travel Insurance

–       Travel Insurance Coverage – Multi Trip Travel Insurance, Baggage Delay, Baggage Loss, Documents Loss

–       Purchase Protection – Theft / Damage

–       1 Year Extended Warranty – Above Manufacturer’s Warranty

–       Concierge Services


4. Corporate Banking

Islamic Banking:

Islamic banking is banking or banking activity that is consistent with the principles of sharia (Islamic law) and its practical application through the development of Islamic economics. As such, a more correct term for Islamic banking is sharia compliant finance. The Qur’an has forbidden the charging of interest in exchange for a loan or riba by clearly declaring it illegal for Muslims.

How banking can be structured under islamic banking?

Islam is a complete religion covering all aspects of economic and social aspect. Islamic Banking is an ongoing effort to align general banking needs with the sharia guidelines based out on the Principles of Sharia & Quran. It is pertinent to mention that Islamic banking not only prohibits the collection and payment of interest but it also restricts from investments in businesses that are considered unlawful in Islam, such as production of alcohol, supply of pork, or media entertainment channels.
At present Islamic banking is one of the fastest-growing segments of the worldwide financial system,
extending across the Middle East, South East Asia, Africa and Europe. It promotes, develops and
applies Islamic principles, law and traditions to financial, banking and business transactions and
encourages investment companies to operate in line with Sharia’s guidelines.
Introduced in the Sultanate of Oman in late 2012, Islamic banking segment has matured rapidly with customers keen to avail or convert their banking requirements.

Islamic banking at Al Hilal:

Objectives for Corporate & SME business segments

1) Facilitate the customer to operate their business under Sharia Principles by way of providing wide array of Sharia-based financial products.
2) To ensure highest level of service standards with focus on “Partnering” instead of financing with customer.
3) To provide professional feedback to customer on their business operations to ensure their development.


Al Hilal Products:

We are currently offering following products to our Corporate & SME customers, which is fulfilling their business requirements.

1) Al Namaa Islamic Savings Account

Al Namaa Islamic Savings Account is a great investment avenue for depositors who wish to earn high returns on their investments.

By investing in the Bank’s Al Namaa Islamic Savings Account,  the  depositor  (Rabb  ul-Mal)  authorizes  the Bank (Mudarib) to invest his/her funds under the unrestricted Mudaraba contract. The bank collects these deposits in its Mudaraba pool along with equity of shareholders and invests the capital into profitable business in sharia compliant high networth business avenues. The  profit on the  Mudaraba pool is distributed amongst investors, taking into consideration the tenor, amount of the  deposit and  profit payment frequency for the account.

Unique Features and Benefits:

  • High profit on every Riyal invested!
  • High profit weightages; based on tiers
  • Profit distributed on monthly basis
  • Profit payment on average balance basis
  • Debit card and cheque book facilities
  • Free ATM withdrawals across Oman
  • Free Internet Banking, Mobile Banking and SMS Alert

Average Monthly

Balance (OMR)



Expected Profit Rate

 100 – 2,499



 2,500 – 49,999



 50,000 – 499,999







2) Murabaha

Murabaha is a sale transaction wherein the first party (Bank) sells a Sharia-compliant asset/ good to the customer for cost plus a pre-agreed profit.

3) IJARA Muntahiya Bil Tamleek (Ijara MBT)

Ijara MBT or financial lease is a rental arrangement, whereby owner of the asset allows use of the asset against specified rentals. It includes a promise from the lessor to transfer to the lessee the title of the leased asset at the end of the lease term through a sale for an agreed price. During the entire tenor of financial lease, bank must retain the ownership of the asset along with relevant risk & rewards.

4) Diminishing Musharaka

Diminishing Musharaka (DM) is a form of co-ownership in which two or more persons take ownership of a tangible asset in an agreed proportion and one of the co-owners undertakes to buy in periodic installments the proportionate share of the other co-owner until the title of asset is completely transferred to the purchasing co-owner. Furthermore during the entire tenor of facility, one of the co-owners can rent out its undivided share in the asset to the other co-owner.

5) Trade Services

Apart from financing products, we are also offering complete array of trade services to our corporate & SME customers. Services include Letter of Credit, All forms of Guarantees, and Business Remittance solutions.


5. Treasury 

As one of Oman’s leading Islamic financial institutions, Al Hilal Islamic Banking Services, Ahlibank SAOG professional and experienced Treasury team, provides a comprehensive package of services in both Treasury & investment products to the corporate, commercial and government institutions.

Along with our strategic partner Ahli United Group; we offer state of the art Islamic Treasury Solutions to our clients.

Alhilal Islamic Treasury division is poised to offer best in class services to clients by providing them with unparalleled access to the local Omani Market and access to markets in which our strategic partner AUB operates as well.

Delivering everyday banking needs effectively and efficiently, is critical to our success. With a Treasury team that understands your business needs and ambitions, and our award-winning service and solutions we are committed to helping your business succeed today and in the future by working in close partnership with you.

Alhilal Islamic Banking Treasury Services

  • Foreign Exchange solutions

Spot, FX Waad (promise transactions/outright), (in all major international and Gulf currencies)

  • Wakala Deposit
  • Money Market solutions

Wakala Deposits across currencies in varying tenors


6. SSB Fatawa / Certificates