The MoU sets out a broad framework for the merger process, wherein Alizz Islamic Bank will continue to operate as an independent Islamic banking institution under the supervision of an independent management team, but operating under the umbrella of the newly merged entity. The MoU also encompassed an agreement between both parties to appoint legal and financial advisors to conduct due diligence reviews of both entities, paving the way for the proposed merger.
The memorandum was signed by Saleh bin Nasser al Araimi, a member of the board of directors of Alizz Islamic Bank, and Salaam bin Said al Shaksy, chief executive officer of Alizz Islamic Bank, on behalf of Alizz Islamic Bank, and was signed by Abdulaziz al Balushi, a member of the OAB board of directors, and Rashad Ali al Musafir, chief executive officer of OAB, on behalf of OAB. The signing ceremony was held at OAB’s head office in the presence of other senior executives from both institutions.
H H Sayyid Taimur A al Said, chairman of Alizz Islamic Bank, said, “Since the announcement of the planned merger in May, both banks have made good progress towards developing a mutually beneficial framework for the intended merger. This is with the objective of bringing together the best talents from OAB and Alizz Islamic Bank to create a market-leading Islamic bank that will continue its operations as an independent Islamic banking institution.”
Rashad al Zubair, chairman of OAB said, “The success of the merger between the two institutions will result in the formation of a new financial entity that will be more competitive, both locally and regionally, and will be in a position to promote the development of the financial sector in the sultanate in line with the latest international standards. The proposed merger will offer a number of synergies as the banks currently have complementary products, systems, technologies, and customer segments.”
OAB currently operates a nationwide network of 58 branches and representative offices, together with seven Islamic banking windows, operating under the ‘Al Yusr’ name, spread across the country.
Alizz Islamic Bank is one of the first full-fledged Islamic banks in Oman. The bank operates ten branches across the sultanate and continues to reinforce its position as Oman’s most dynamic and innovative Islamic banking institution.