OAB And Alizz Islamic Bank sign agreement to finalise the merger
By Edil Corneille
Oman Arab Bank (OAB) and Alizz Islamic Bank (AIB) have signed an agreement for the overall structure of the potential merger between the two banks. This is expected to pave the way for the successful finalisation of two-years of negotiations between both parties. The potential merger will witness the establishment of a major banking entity that will deliver conventional as well as Islamic banking services.
The agreement covered the overall structures and procedures that will be taken as part of the merger process. Oman Arab Bank agreed to submit an offer to the shareholders of Alizz Islamic Bank to acquire all shares, with the aim to make Alizz Islamic Bank a wholly-owned Islamic banking subsidiary and convert Alizz Islamic Bank into a closed joint-stock company (SAOC).
Rashad Al Zubair, Chairman, OAB said, “I believe that this is an important milestone in the distinguished history of OAB. We take pride in being part of this first-of-its-kind agreement, which will see the establishment of a robust banking entity. The same will enable both banks to expand their customer base and scale up their businesses a lot faster. We will continue to finance major projects in the public and private sector that will have a positive impact on the Sultanate’s development and will contribute positively in terms of job creation.”
Once this step is completed, the business of Al Yusr, the Islamic Banking window of Oman Arab Bank, will be integrated with Alizz Islamic Bank SAOC, creating a larger full-fledged and licensed Islamic bank. Following this, shares of OAB will be listed at the Muscat Securities Market (MSM), converting it into a public joint-stock company.
Saleh Al Araimi, Chairman, AIB said, “The Islamic banking sector in the Sultanate is one of the most promising sectors and through this merger with OAB, AIB will have the necessary capital to meet the regulatory requirements and enhanced abilities to finance new projects that contribute greatly to the local economy. Through the transfer of Al Yusr to AIB, the branch network will grow and complement our strong digital platforms as we continue to grow our presence. This will, in turn, enable us to better serve our existing customers and attract new customers, thanks to our comprehensive suite of Islamic Banking products and services. ”
Upon completion of the merger, Oman Arab Bank will continue its conventional banking business and operations, while Alizz Islamic Bank will remain fully Shari’a-compliant and continue to offer Islamic Banking products and services as a full-fledged Islamic bank. Both banks will proceed to complete the necessary formalities as stipulated in the applicable laws and regulations.
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November 08, 2024