Energy Development Oman (EDO) has issued its debut domestic Sukuk, raising $130 million (OMR 50 million) in a strategic transaction designed to support the development of Oman’s domestic capital market.
The issuance marks the first local Sukuk by an Omani government-related entity (GRE), broadening the range of financing instruments available and establishing a benchmark for future issuances by other GREs.
The Sukuk attracted over $208 million (OMR 80 million) and was allocated to 29 investors, including conventional and Islamic banks, insurance companies, money market funds, official institutions, and high-net-worth individuals. This broad participation highlights EDO’s success in building a diversified domestic investor base.
The three-year Sukuk was issued via private placement at a profit rate of 4.40 percent and an average yield of 4.41 percent, achieved through an auction process. In comparison, Oman’s three-year Government Development Bond issued in July 2025 yielded 4.28 percent. The issuance falls under EDO’s $260 million (OMR 1 billion) Sukuk program and marks the first step in EDO’s initiative to develop Oman’s fixed income investor base.
Both the program and inaugural Sukuk issuance are listed on the Muscat Stock Exchange (MSX), with documentation approved by the Financial Services Authority (FSA) in line with international disclosure standards. EDO employed a hybrid Ijara-Wakala Islamic structure tailored to the Omani market. MCD is the Registrar, Certificate Holders Agent and Paying Agent.
National Bank of Oman (NBO) acted as Issue Manager, with Muzn Islamic Banking serving as Shari’a Advisor. Trowers and Hamlins acted as legal counsel, providing detailed advice on the Islamic structure and disclosure.
Sultan al Mamari CFO – EDO
“EDO is delighted with the success of this inaugural issuance, which sets a strong foundation for future transactions. Through our debut OMR Sukuk, we reaffirm our commitment to deepening and developing the local capital market. We extend our sincere appreciation to our investors, NBO, and all stakeholders whose support was instrumental in the success of this landmark transaction”.
Energy Development Oman (EDO), established by Royal Decree in December 2020, is Oman’s national energy company tasked with leading the nation’s energy sector to provide efficient, secure, and cost-effective energy aligned with Vision 2040’s economic goals.
EDO’s strategy includes optimizing government-owned energy assets, improving cash flow, and finding new income opportunities to strengthen Oman’s energy security and government revenue. EDO fosters collaboration with public and private sectors to create a regulatory framework supporting foreign investment in green energy, crucial for Oman’s 2050 net-zero ambitions and low-carbon future.
