Oman-based Islamic Bank, Bank Nizwa, has signed a strategic partnership with MSA Green Projects LLC (MSA Green), extending sustainability-linked financing to support its mangrove plantation endeavour in collaboration with the Oman Environment Authority, it has announced.
It was shared that the financial assistance will enable MSA Green to effectively carry out its mandate of planting 100 million mangrove trees across 20,000 hectares of land in Shanna, Al-Najdah, Film and Dharf-Hitam over the next 27 years.
The two explained that the extensive planting of mangroves along coastal areas, especially in storm-prone regions, serves as a “crucial strategy” to reduce erosion and safeguard biodiversity.
Moreover, the parties noted that mangroves play a key role in blue carbon ecosystems, with one hectare of mangroves sequestering five times more carbon than an equivalent area of forest.
The project will generate income through the sale of carbon credits, it was shared, and according to the two parties will stimulate growth in the fisheries sector by creating opportunities for local fishermen.
Commenting on the agreement for sustainability-linked financing, Azzan bin Abdul Amir Al Saleh, Assistant General Manager SME Banking at Bank Nizwa, said: “The Islamic finance sector serves as a cornerstone in expediting the Sultanate’s green transition. Bank Nizwa, a prominent contributor to the nation’s sustainability initiatives, assumes a leadership role by empowering organisations that resonate with its ethos and are steadfast in their pursuit of promoting sustainable ventures. Therefore, our collaboration with MSA Green in their decarbonisation endeavour stands as a testament to our dedication to propelling the journey towards a low-carbon economy.”
Manbhupinder Singh Atwal, CEO of MSA Green, added: “It is with great pride we have undertaken this ambitious initiative, an endeavour that underscores our dedication to environmental stewardship. Collaborating with Bank Nizwa, an esteemed institution renowned for its leadership in sustainable efforts, bolsters our determination to enact meaningful change for our environment. Together, we are committed to forging a path towards a sustainable future for generations to come.”
This agreement was formalised during the Oman Sustainability Week and signed on behalf of the bank by Azzan Al Saleh and Manbhupinder Singh Atwal.