MUSCAT: Oman Arab Bank (OAB), a subsidiary of Omani conglomerate OMINVEST, has acquired the Muscat-listed Alizz Islamic Bank (AIB), more than a year after signing a preliminary agreement to explore a merger.

On Tuesday, the Central Bank of Oman approved merger proposal between OAB and AIB. In a statement disclosed to the Muscat Securities Market, OMINVEST said AIB will become a fully owned Islamic Banking subsidiary of OAB. “The assets and liabilities of Al Yusr Islamic Window of OAB will be transferred to AIB S.A.O.C,” the statement said.

“We would like to disclose that OAB has received regulatory approval on the proposed transaction from the Central Bank of Oman,and is in the process of obtaining further regulatory approvals from the Capital Market Authority and other regulatory bodies,” the statement added.

As per the merger, Al Yusr Islamic Banking – Oman Arab Bank’s Islamic window with all its branches and staff will become part of Alizz Islamic which will remain as a fully licensed Islamic bank.

The Alizz Islamic Bank branch network will grow to 17 Branches – Alizz Islamic Bank currently has 10 branches and Al Yusr Islamic Banking has seven.

In a statement issued to the media earlier, Salaam Al Shaksy, the CEO of Alizz Islamic Bank, the merger between the two banks will provide customers with better services and more outlets across the country, leading to better convenience.

“They will now have a stronger fully licensed Sharia-compliant bank handling their every financial need,” added Al Shaksy.