Sohar Islamic, the Islamic banking window of Sohar International, has signed a Memorandum of Understanding (MoU) with the Islamic International Rating Agency (IIRA) to enhance Islamic banking practices.
The collaboration highlights the bank’s commitment to aligning with global benchmarks in governance. The MoU was signed by Fahad Akbar Al Zadjali, Head of Sohar Islamic, marking a key step in Sohar Islamic’s journey toward cultivating an innovative Islamic banking ecosystem.
Fahad Akbar Al Zadjali Head – Sohar Islamic
“Islamic finance continues to gain traction, reflecting a growing appreciation for value-based, principled financial models. In this evolving landscape, it becomes imperative for institutions to ensure that every layer of operations—whether structural, procedural, or strategic—remains anchored in uncompromising integrity, rigorous oversight, and enduring authenticity. At Sohar Islamic, this extends beyond a regulatory imperative; it represents a core ethos that defines who we are and how we operate. Partnering with a distinguished institution such as IIRA represents a deliberate and forward-thinking step. Their deep specialization in analytical ratings and assessments offers a refined perspective that will enhance our internal frameworks, enabling us to deepen stakeholder trust, sharpen performance metrics, and create measurable long-term value. This collaboration also serves as a platform for knowledge exchange, enabling us to benchmark against best practices and pursues ever-higher standards as we continue to shape the future of Islamic finance.”
IIRA plays a crucial role in fostering financial stability and stakeholder confidence within Islamic financial institutions. IIRA bridges the gap between market expectations and institutional conduct and strengthen industry-wide discipline by providing independent ratings, evaluations, and research services tailored to Sharia-compliant entities.
The bank’s strategic alliance with IIRA reflects its commitment to enhancing institutional resilience and long-term sustainability. Over the years, the bank has launched several initiatives aimed at strengthening its Islamic banking proposition.
Through this move, Sohar Islamic is set to enhance its market position by adopting data-driven assessments and embracing prudent risk management practices, ensuring closer synergy with globally recognized Islamic finance norms.
Furthermore, the MoU also reaffirms Sohar Islamic’s dedication to supporting Oman’s national objectives, particularly in building a resilient and diversified financial sector rooted in ethical finance. As Islamic banking evolves to cater to the needs of a new generation of clients and investors, the bank remains focused on cultivating purposeful collaborations that deliver lasting socio-economic value.
