Ahlibank approves LoI for merger with Sohar Intl Bank
MUSCAT: In a significant move that could reshape Oman's banking landscape, ahlibank SAOG has formally accepted a Letter of Intent (LoI) from Sohar International Bank SAOG proposing a merger. This development follows the initial disclosure made on April 7, 2025, concerning the receipt of this proposal. On April 10, 2025, ahlibank's Board of Directors convened to evaluate the strategic implications and potential benefits of the merger.
After thorough deliberation, the Board resolved to proceed with the letter of intent, which outlines preliminary conditions for the merger. Central to the proposal is the structure of the merger, which is to be executed through incorporation. Under this structure, all assets and liabilities of ahlibank will be transferred to Sohar International, effectively consolidating both institutions by law on the merger's effective date.
The letter of intent further stipulates the consideration for ahlibank shareholders, who are expected to receive shares in Sohar International as part of the transaction. This agreement is subject to various conditions, including regulatory approvals and further shareholder consent.
This proposed merger is part of a broader trend of consolidation within the Gulf's banking sector, as financial institutions seek to enhance scale, reduce costs and improve competitiveness in a crowded market. In Oman, several smaller banks have explored partnerships in recent years to navigate tighter margins, rising compliance costs and economic shifts associated with energy transition efforts.
Notably, Sohar International completed a merger with HSBC Bank Oman in 2024, demonstrating its strategic intent to expand through consolidation. Additionally, ahlibank received interest from its domestic rival, Bank Dhofar, for a possible merger in 2023, indicating its openness to strategic partnerships.
As both banks move towards due diligence and final negotiations, market observers will be closely watching regulatory developments and stakeholder reactions. The successful completion of this deal could catalyse further strategic alignments within Oman's financial sector.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Times of Oman
8 hours ago
- Times of Oman
Oman bans government contracts for firms failing Omanisation targets
MUSCAT: In a sweeping move to tighten enforcement of its national employment policy, the Sultanate of Oman's Tender Board has made it mandatory for all private sector companies to comply with approved Omanisation rates in order to be eligible for government contracts. The directive, issued under Circular No. 2025/2, instructs all ministries and government entities governed by the Tender Law to refrain from awarding contracts to companies that fail to meet the stipulated Omanisation levels, marking a significant shift toward safeguarding jobs for Omani nationals. The circular, issued by the General Secretariat of the Tender Board, aims to ensure that the employment of Omani citizens becomes a non-negotiable requirement in public sector contracting. It instructs government bodies to include a clause related to Omanisation compliance in all tender documents before the tender is floated. This clause is to be inserted in accordance with the official format provided and must make clear that non-compliance with national workforce targets will result in disqualification from the bidding process. In a move that streamlines compliance and enhances transparency, the circular also mandates that government entities verify a company's adherence to Omanisation targets through the Esnad electronic tendering system. This verification is to be carried out prior to awarding any contract, with Esnad drawing real-time employment data directly from the Ministry of Labour. The integration of this digital system ensures that non-compliant companies are screened out at an early stage, minimising the possibility of circumvention. Further, the new rules extend to international companies and institutions that are not registered within the Sultanate but participate in tenders for large-scale or strategic government projects. While such companies may not be immediately subject to pre-award Omanisation verification, their compliance will be closely monitored post-award and during contract implementation. This oversight forms part of the broader local content strategy, which includes evaluating how effectively these companies contribute to Oman's workforce development and national economic goals throughout the lifecycle of a project. The Tender Board has called on all ministries and public sector units to fully comply with the provisions of the circular 'in the public interest,' underlining the importance of the directive in advancing national priorities. The move is aligned with the goals of Oman Vision 2040, which places a strong emphasis on empowering the national workforce, enhancing economic sustainability, and reducing dependence on expat labour in key sectors. The policy is expected to significantly impact the way private and foreign companies approach public tenders in Oman, compelling them to prioritise the recruitment, training, and retention of Omani nationals as part of their operational strategy. Industry analysts believe the move will not only create more job opportunities for Omanis but also push companies to invest in long-term human capital development within the country.
Times of Oman
8 hours ago
- Times of Oman
Trump's Tariffs are back
A US Federal Court has blocked President Donald Trump's tariff, a major setback to his trade policies. The Manhattan-based three-judge court of International Trade said the US Constitution gave Congress exclusive powers to regulate commerce with other nations, but did not give the President unilateral authority to impose tariffs on all countries. However, the US Court of Appeals granted a temporary stay of the order. Speaking to The Times of Oman, R. Madhusoodanan, a former SBI Official and a financial expert based in Muscat, said, the court ruling has cheered the financial markets; however, with the temporary stay, the tariffs are back now. Typically, such vital decisions like changes in tariffs need to be approved by the Congress, but were bypassed by the President, according to the petitioners. After taking office as President in January 2025, Trump announced his tariff plan against most countries of the world, citing that the US is being treated unfairly in global trade, creating an imbalance in tariffs. His stance was that if they charge us, we charge them. He said, the higher tariffs announcement has caused several economic, political, and strategic impacts on both Advanced Economies (AEs) and Emerging Market (EM) Economies of the world. It has disrupted the established supply chains and slowed economic growth. Despite the 90 days pause on the tariffs announced on 9th April 2025 for countries excepting China and China on 11th of May 2025, after the de-escalation of the trade tension meeting held in Geneva between the two countries, the Trump administration continued to fuel global economic uncertainty with its unpredictable trade policies. This was evidenced by the announcement of a 50% tariff on the European Union(EU) effective from June 1st and later shifted to July 9th 2025. Reports also indicated that he threatened a 25% tariff on Apple if it continued to manufacture iPhones overseas. R. Madhusoodanan said, no countries are insulated from the adverse impacts of the tariff threat. The global economy has been affected due to the tariffs and retaliatory tariffs announcements. There are signs of economic slowdown in the US, China, among other countries. The US is well aware of the long-term impact of the tariffs, i.e. a possible downturn in the GDP growth along with a slowdown in the US exports and consumption. If continued, it will push up inflation and hurt employment in the US. The Chinese economy has also been affected by the tariff war. Its export to US fell sharply, impacting the country's enormous manufacturing sector. China had to roll out fresh economic stimulus to the affected sectors. Large-scale incentives and subsidies were given to companies to make their products and services more competitive in the global markets. China also had to introduce many austerity measures to tide it over the situation arising out of this. The Emerging Market(EM) Economies are also affected, but have taken steps to reduce their dependency on the US and have formed new trading blocs, he said. Earlier, the US has made it clear that the tariff rates will soon return to a 'reciprocal ' level if countries don't reach trade agreements during the 90-day pause. The disruptive trade agenda will not help any country, for that matter. Now with the ruling of the US Court, I believe there remains a possibility of a mutually beneficial long-lasting resolution that can restore the stability of global trade, R. Madhusoodanan said.
Times of Oman
8 hours ago
- Times of Oman
First fully indoor, multi-range shooting complex opens
Muscat: A state-of-the-art indoor shooting complex — touted as the first-of-its kind not just in Oman but across the wider region —has officially opened its doors in Muscat, ushering in a new era for recreational and professional marksmanship in the Sultanate. Named Action Point, the facility offers a rare and highly specialised combination of 25-metre, 50-metre, and 100-metre shooting ranges along with a fully indoor shotgun skeet and trap range — an extraordinary setup made even more remarkable by the fact that all ranges are fully air-conditioned and housed under one roof. This unique private complex is located at the Active Oman Centre (Oman Automobile Association) and promises to cater to first-time shooters, seasoned enthusiasts, and tactical professionals in an environment that is immersive, safe and technologically advanced. The facility was inaugurated recently under the patronage of His Highness Sayyid Theyazin bin Haitham Al Said, Minister of Culture, Sports, and Youth. Developed and delivered by the Special Projects Division of Khimji Ramdas (KR) in partnership with Cubic Technologies Singapore PTE LTD — a global name in advanced defence training systems —Action Point marks a significant milestone for shooting sports and security training infrastructure in Oman. 'This is more than just a facility — it's an experience that combines adrenaline, precision, and professionalism,' said Col (Retd) Nasser bin Ali Al Amri, General Manager of Action Point. 'Through our collaboration with Khimji Ramdas and Cubic Defence, we've brought international-level shooting disciplines to Oman with the highest standards of safety and supervision. Our aim is to nurture responsible firearms sportsmanship and create an atmosphere where people feel both inspired and secure.' The sprawling complex includes two 25-metre pistol ranges equipped with retrievable targets for 9mm handguns, two 50-metre tactical ranges featuring advanced Location of Miss and Hit (LOMAH) systems, and a 100-metre rifle range tailored for 5.56mm calibre firearms. But what truly elevates Action Point to a class of its own is its fully indoor shotgun skeet and trap range — an exceedingly rare feature even by global standards. An air gun range is also under development, further expanding the facility's appeal to a broad spectrum of users. In terms of technology, each range is equipped with smart bullet traps that safely direct fired projectiles into specialised collection channels. Complementing these are electronic target systems that offer real-time feedback, enabling more accurate assessment and training. A specially engineered air purification system ensures that dust and gases generated during live firing are swiftly removed, maintaining a safe and clean indoor environment. The facility has been thoughtfully designed to cater to a diverse clientele. From beginners trying their hand at shooting for the first time to competitive marksmen training for international tournaments, Action Point offers tailored packages and supervised sessions. It also supports the tactical training needs of private security personnel and government agencies, ensuring wide-ranging utility. Every visitor is given a thorough safety briefing upon arrival and is continuously supervised by qualified instructors, reflecting the facility's unwavering focus on professionalism and best practices. Omani talent has been a central part of the project's success. In coordination with the Ministry of Labour, Action Point recruited and trained Omani jobseekers — men and women alike — who underwent intensive instruction from global experts. This localisation strategy has not only created jobs but also developed a skilled cadre of personnel capable of managing and operating a high-spec, internationally aligned shooting facility. Speaking at a recent media tour of the facilities, Varun Pankaj Khimji, Director of Khimji Ramdas LLC, said, 'We are proud to support Action Point's mission of enhancing responsible firearms sporting in the region. This project reflects our commitment to delivering turnkey, high-performance solutions that support national training infrastructure and innovation. The facility is another example of the vision and capability of our Special Projects Division.' Rajneesh Armugham, General Manager – Special Projects at Khimji Ramdas, said: 'We are proud to have delivered this sophisticated training facility that not only meets international safety and operational standards but also showcases our division's capability in managing complex, defence-aligned infrastructure projects. Our collaboration with Cubic Defence has brought cutting-edge technology into Oman, and we're confident Action Point will become a go-to destination for hobbyists, competition shooters, and private security agencies alike.' The KR Special Projects Division will also continue to support the facility over the next two years through a comprehensive technical support and maintenance contract, ensuring operational continuity and sustained quality through a dedicated in-house team. Open to individuals aged 16 and above, Action Point welcomes private enthusiasts, corporate teams, educational institutions, and government organisations with tailored offerings. The facility is expected to host regional tournaments in the near future, positioning Oman as a hub for competitive shooting and sport. With its exceptional mix of features, world-class equipment, and climate-controlled indoor design, Action Point is not just a first for Oman — it's a regional trailblazer in modern recreational shooting. The facility is open daily from 8:00am to 10:00pm, Sunday to Saturday.
