Oman Arab Bank has an active presence in the Sultanate of Oman ever since it was established on 1st October, 1984 as a joint closed stock company. The bank started operations after acquiring the branches of Arab Bank Limited, Jordan that existed in the Sultanate since 1973.
In 1992, Oman Arab Bank expanded its operations by acquiring all branches of Omani European Bank and then merged together in 1994. Oman Arab Bank’s principal shareholders are Oman International Development and Investment Company (OMINVEST) with 51% share and Arab Bank Limited with a 49% share holding.
The bank also actively contributes to the major development in industrial and infrastructure projects in the Sultanate of Oman and is an active provider of both retail and investment banking products and services.
Financing Projects and Providing Services
The bank has kept its position as a leader in financing projects in various sectors such as infrastructure, industrial and petrochemical. It has supported many companies such as Oman Shipping Company’s vessel financing, and the expansion of Oman Cement Company.
It has also provided banking services for several companies in different projects such as Wastewater Treatment Station Project in Seeb, Duqum Port project (phase 2) and Dry Dock, Power and Water Desalination Station in Barka II, in additional to various infrastructure, industrial, and services projects.
Main Financial Indicators
The bank continue to achieved positive results such as a 26% growth in profits (RO 24.6 million as compared to RO 19.4 million), 39% growth in net loans and advances (RO 539 million compared to RO 389 million), and 15% growth in customer deposits (RO 611 million as compared to RO 533 million).
Total Shareholders’ Funds as at 31st December, 2008 was RO 110 million as compared to RO 88 million in the previous year. Return on Total Assets was 3.47%. As a result of the prudent lending policy, the non-performing loans reduced to 1.6% out of the total loans and the provision coverage increased to 169% of the non-performing loans.
Branches and Offices
Throughout the current year and last year, the bank has opened new branches in Shatti Al Qurum, Al Tarif in Sohar, Bowshar, Mabelah, Sumail, Nizwa Hospital and Quriyat. The bank has a total of 53 branches and offices across the Sultanate.
Investment Banking
Given the financial crisis which resulted in the bankruptcy of investment companies and banks globally, our Investment Management Group is still in the forefront in terms of developing investment products and services.
The investment group did not show negative effects, but instead of that it gained a higher share in the local trade and achieved 4th position in Muscat Securities Market in transactions by end of April 2009.
At the beginning of 2009, it has been agreed to establish the Investment stabilization Fund with a capital of RO 150 million where the government contributed 60%, while 40% was distributed on pension funds and the private sector represented by banks, investment companies, and securities companies. Our investment group (the investment banking arm of Oman Arab Bank) has been assigned as an investment manager to manage the fund’s assets in partnership with another local bank.
During the first half of this year, the bank will announce establishing Oman Al-Arabi Fund that will be completely managed by us. The fund will be investing 75% in MSM, and 25% in the GCC markets.
Marketing and Developing Banking Services
The bank is always striving to provide the best banking services and products for its clients to meet their financial needs. Some of the new initiatives launched by the bank are Markabati Auto Loan, Al Himaya Car Insurance, and Al Mustaqbal Education Loan. In addition, to the latest services launched by the bank such as Tawasul SMS Banking and Internet Banking.
Omanisation
The bank’s management gives prime importance to Omanisation as it focuses on developing the human resources.
This has led the bank to be the first bank to achieve the required Omanisation percentage of 90% in early 1996. The Omanisation percentage in the bank is now 92.19%.
E-Banking Services
Oman Arab Bank has worked relentlessly to cope with the rapid development in the e-services field.
The bank has also become a leader in providing high quality services through e-channels that enable the client to get the services without time or place constraints.
One can clearly observe the rapid progress of Oman Arab Bank in the e-services field in public and private projects across Oman. It demonstrates the bank’s commitment in developing its relationship with different sectors in the e-services field and e-payment.
