Pinsent Masons advises IFC on landmark Islamic green financing for The Sustainable City - Yiti in Oman

The transaction supports the delivery of the Plaza District, the commercial and social centre of The Sustainable City - Yiti, a pioneering sustainable urban development designed to become a net-zero emissions community by 2040. The wider development is expected to accommodate more than 10,000 residents and create approximately 2,200 direct and indirect jobs.

Pinsent Masons acted as lead counsel to IFC on the structuring and documentation of the Sharia-compliant green financing. The transaction involved a sophisticated financing structure aligned with Green Loan Principles and required coordination across multiple stakeholders and jurisdictions.

The Plaza District will comprise a mix of residential, retail and commercial offerings, while the broader master development will feature essential community infrastructure, including schools, education centers, healthcare, and public amenity facilities. Designed with sustainability at its core, the development incorporates renewable energy systems, water recycling initiatives, sustainable transport solutions and climate-resilient infrastructure, contributing to Oman's long-term sustainability goals and economic diversification agenda.

The transaction demonstrates Pinsent Masons' ability to advise on complex financings at the intersection of Islamic finance, sustainable finance, real estate, infrastructure, and development. It also reflects the firm's continued role advising leading international financial institutions, sponsors and developers on projects supporting sustainable growth across the Middle East.

The Pinsent Masons team was led by Seya Rahnema and supported by Albert Kromm, Hala Abdulghani and Haya El Halteh.

Commenting on the transaction, Seya Rahnema, Partner at Pinsent Masons, said: "We are delighted to have advised IFC on this significant financing. The transaction demonstrates how innovative Islamic finance structures can support sustainable development while delivering meaningful economic, social, and environmental outcomes.

"This is an important project for Oman and the wider region, and this financing reflects the growing alignment between Islamic finance, sustainable investment and the development of resilient, future-focused communities across the Middle East."

The transaction further strengthens Pinsent Masons' position as a leading adviser on Islamic finance and sustainable finance matters in the Middle East, supporting clients on projects contributing to the region's sustainability, infrastructure and economic development objectives.