Muscat: Oman Arab Bank (OAB) has announced plans to raise its authorised capital from RO 200 million to RO 500 million, alongside a RO 50 million increase in paid-in capital through a shareholder-underwritten rights issue, subject to regulatory approvals. This capital enhancement aims to strengthen the bank’s capital adequacy, expand lending to priority economic sectors, and accelerate digital innovation, thereby supporting financial stability and long-term growth.
Sulaiman al Harthi, CEO of Oman Arab Bank, highlighted that the capital increase will significantly enhance the bank’s ability to finance projects of all scales and improve its financial standing and credit rating. He noted that these improvements will position the bank to attract funding from international institutions and support future capital increases.
The move will boost the bank’s capacity for retail and corporate lending and provide greater flexibility to invest in digital banking technologies, furthering its vision of growth through innovation.
A key beneficiary will be small and medium enterprises (SMEs), which are vital to Oman’s private sector. With increased lending capability, Oman Arab Bank will offer larger credit facilities and targeted financial solutions to SMEs, addressing their typical funding challenges. Enhanced digital banking services will streamline operations and promote financial inclusion for emerging businesses, contributing directly to Oman’s economic diversification goals under Vision 2040.
The capital increase via the rights issue will allow existing shareholders to subscribe on a pro-rata basis, with the record date to be determined. Raising authorised capital offers long-term flexibility for future equity issuance aligned with market developments.
This strategic capital boost underlines Oman Arab Bank’s commitment to national economic growth, financial prudence, and innovation. It positions the bank to support Oman’s evolving economic landscape with strengthened lending capacity and advanced digital services.
