Oman Munition Production Company (OMPC), set up by the Ministry of Defence in 2011, has signed a financing deal with Meethaq, the Islamic banking arm of Bank Muscat, to fund the expansion of its ammunition production facilities.
Mohammed Bin Nasser Bin Mohammed Al Rasbi, chairman of OMPC, and Sulaiman Bin Mohammed Al Yahyai, vice chairman of Bank Muscat, signed the agreement at the bank’s head office in the presence of dignitaries, senior government and Bank Muscat officials led by Abdul Razak Ali Issa, chief executive of Bank Muscat.
The value of the deal was not disclosed.
The OMPC factory, which meets NATO standards, is located in Samail in Al Dakhaliyah in northern Oman. It manufactures a range of bullets for the police and military.
“The project will lay a solid foundation for the country’s defence capabilities and for localised ammunition production and contribute to Oman’s GDP by reducing imports and creating employment,” said Al Rasbi.
“Meethaq is delighted to partner with OMPC contributing to the Sultanate’s defence capabilities. The financing agreement with OMPC further reiterates the bank’s capabilities to handle complex Islamic finance requirements,” commented Al Yahyai.
Since its inception four years ago, Meethaq has extended financial partnership to a number of projects in various fields, mainly construction and infrastructure development.