Muscat: More than a year after signing a preliminary agreement, Alizz Islamic Bank’s board has approved a swap ratio offer proposed by Oman Arab Bank (OAB) in a potential merger between the two banks.
As per the swap ratio OAB will own 81 per cent of the combined entity, and Alizz shareholders the remaining 19 per cent.
According to 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.
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“They will now have a stronger fully licensed Sharia-compliant bank handling their every financial need,” said Al Shaksy.
“Customers will benefit from better-customised product and service offerings and better digital services as well,” he said.
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.
“This widespread geographical presence expanding from one end of the country to the other will prove to be an excellent complimentary factor that would lay the perfect platform for the creation of a strong Bank and provide our customers with services across Oman,” Shaksy explained.
“Since the banking sector is very competitive, with almost all banks offering similar products and services, the key distinguishing element is going to be the enhancement of our products and services such as enhanced mobile & internet banking platforms and investment and wealth management services to name a few. It will also increase our strength in larger trade deals and international transactions,” he pointed out.
Under this merger, Alizz Islamic Bank will be fully owned under Oman Arab Bank and will see the former continue to operate as an Islamic bank, with its services available to all existing customers, as well as OAB customers. The latter, however, will continue to function as a conventional bank.
