https://arab.news/cs7pv
RIYADH: Oman’s Bank Muscat has secured regulatory approval to invest 150 million Omani rials ($390 million) in the Gulf region.
The mandate of the systematic investment plan involves a strategic interest in various listed banks within the region.
With the in-principle approval from the Central Bank of Oman in hand, the institution also plans to build the investment portfolio progressively over the next few years, according to an official statement.
Bank Muscat said it “will invest in various listed banks in the GCC (Gulf Cooperation Council) with the aim of benefiting from the general growth trajectory of the GCC banking sector.”
It added: “The bank endeavors to build this portfolio gradually over the next few years depending on opportunities available in the market.”
Bank Muscat’s strategic decision to venture into a wholly owned investment portfolio underscores its commitment to long-term sustainability and adaptability to market dynamics.
Its approach is rooted in tactical financial planning and ensuring a prudent and measured approach to investment, mitigating risks and optimizing returns for its shareholders.
This comes days after the second-largest bank in Oman, Sohar International, obtained a no-objection certificate from Saudi Arabia's central bank, making it easier for Omani firms eyeing expansion in the Kingdom to enter the sector.
The institution’s presence in the regional market positions it as a significant player, offering opportunities for Omani corporates seeking to venture into Saudi Arabia.
The Kingdom and Oman have continually discussed ways to enhance cooperation between the two nations.
In October, deliberations took place between the Secretary-General of the Saudi Economic Cities and Special Zones Authority Nabil Khoja and Ali Al-Sunaidy, his Omani counterpart and the chairman of the Public Authority for Special Economic Zones and Free Zones. These discussions aimed to enhance collaborations in free zones and economic cities, seeking to advance trade relations.
The two countries have established a committee dedicated to overseeing the development of the integrated economic zone in Al Dhahirah.
The board is responsible for crafting a comprehensive plan for the division’s development, execution, and management in Oman, as well as monitoring the implementation of all related programs and initiatives.