Best bank: Sohar International Bank
Sohar International Bank is Euromoney’s best bank in Oman this year. The landmark merger with HSBC Bank Oman in 2023 has resulted in substantial growth in assets, market share, market presence and workforce.
Led by chief executive Ahmed Al Musalmi, the bank saw a 62% increase in its total assets in 2023 to $17.4 billion, from $10.7 billion in 2022, making it the second-largest bank in the sultanate by assets.
Its profit before tax almost doubled from $90.6 million in 2022 to $182.7 million in 2023.
The bank expanded its digital offering in the review period, launching a new corporate mobile banking app to improve its offering to business clients.
The bank also partnered with Indian fintech PayMate to digitize, automate and streamline business-to-business payments using bank-issued corporate credit cards.
The bank has secured board approval for its environmental, social and governance framework and has reaffirmed its commitment to corporate social responsibility and community engagement, partnering with the Athar Foundation for a medical centre and ambulance services in the country.
The bank also provides substantial support to the Royal Hospital, offering free MRI scans.
Sohar is focused on expanding operations into neighbouring Saudi Arabia and received a no-objection certificate from the Saudi Arabian Monetary Authority at the beginning of 2024 to expand there.
Best investment bank: Bank Muscat
Bank Muscat dominated investment banking in Oman last year, completing six transactions across debt, equity and M&A in the review period. Its transactions totalled more than $4.6 billion.
The firm acted as the financial adviser and issue manager for OQ Gas Network’s landmark $748 million IPO in October.
The transaction, which was the largest IPO in Oman’s history, was the first 144A equity offering from Oman and was the first shariah-compliant IPO listing in Oman. The deal was 14 times oversubscribed, with $10.5 billion worth of orders for $748 million worth of shares.
Other key transactions include Energy Development Oman’s debut international sukuk issuance in September – a $1 billion, 10-year deal. The final orderbook was again oversubscribed at $5.1 billion and the deal priced below sovereign secondary trading levels.
Bank Muscat acted as joint lead manager on the deal.
The bank, led by CEO Waleed Khamis Al Hashar, also acted as financial adviser and arranger for leading real-estate developer Saraya Bandar Jissah’s fundraising to expand its hospitality offering. This involved developing a sustainable financing plan.
The bank also acted as buy-side adviser to Oman Qatar Insurance’s $31 million merger with Vision Insurance.
Best digital bank: Ahli Bank
Ahli Bank became the first in Oman to introduce a digital IPO service this year using a mobile application that simplifies and enhances accessibility for investors.
It also streamlined its account-opening process, which has enabled new customers to set up accounts in under a minute via the mobile app.
A first-of-its-kind collaborative crowdfunding platform called Tamkeen has also been established for small and medium-sized enterprise clients in response to the capital market authority’s issuance of crowdfunding legislation.
Retail customers can now request instant loans and open fixed deposits directly through the mobile app. The loan booking process has also been automated to improve the speed and efficiency of credit underwriting and disbursement.
Best bank for SMEs: Bank Muscat
Bank Muscat is a well-established lender to small and medium-sized enterprises in Oman. Its Najahi unit was the first to offer collateral-free lending to SMEs in the country. It also provides non-financial services, such as monthly Najahi Talks seminars, to enhance community and develop skills among SMEs.
The bank delivers educational content through various programmes. It offers a free consultation and training programme involving online coaching sessions through another scheme called Irshad.
The bank’s Al Wathbah Academy has supported 237 Omani entrepreneurs to date.
Best bank for ESG: Sohar International Bank
Sohar International Bank has made good progress in integrating environmental, social and governance initiatives into its business. It has developed a comprehensive ESG framework and established a dedicated ESG division that reports directly to the CEO and the board.
The bank was a banking partner to the Green Hydrogen Summit Oman, which supports sustainable development and the green transition in the Sultanate.
Best bank for corporate responsibility: Bank Muscat
Bank Muscat has focused its corporate responsibility initiatives in social welfare, financial literacy and sports.
This is the 10th year of its Tadhamun programme in collaboration with the ministry of social development, which provides household appliances to over 200 families in receipt of social welfare scattered across different governorates.
The bank also participates in the Fak Kurba initiative led by the Oman Lawyers Association, which takes place during Ramadan. The programme focuses on securing the release of individuals imprisoned for financial default.
Meanwhile, the bank’s Green Sports programme supports 183 teams with over 50,000 members throughout the Sultanate.
Bank Muscat also offers free financial coaching and awareness initiatives through the Irshad financial coaching clinic and the Maliyat financial awareness programme.
Best bank for corporates: Bank Dhofar
Bank Dhofar has implemented several strategic initiatives this year while also building its non-funding activities.
It has 6,757 large corporate clients, from which net income rose by 39% to OR16.77 million ($43.6 million) last year.
Deals included a $70 million financing for raw material imports for one corporate client.
