Oman Arab Bank’s Merger with Alizz Islamic Bank Gets a Step Closer

Oman Arab Bank (OAB) has received regulatory approval from the Central Bank of Oman to proceed with its merger with Alizz Islamic Bank (AIB). The deal is expected to give OAB a stake of about 81% in the merged entity.

OAB, which is a subsidiary of Oman International Development and Investment Company (Ominvest), inked a share swap agreement with Alizz Bank's Directors in January 2020. According to this agreement, AIB will become a fully-owned Islamic subsidiary of OAB, while the assets and liabilities of OAB’s own Islamic brand, Al Yusr, is expected to be transferred to AIB.

The merger is the latest in a series of recent deals involving Islamic lenders in the Gulf while the mer...