Oman arab Bank was established on 1st October 1984, following the
acquisition of Arab Bank's branches in the country. OAB's principal shareholders are
OMINVEST (51%), a local investment company, and Arab Bank (49%). Arab Bank provides
technical and managerial assistance.
In the present economic environment, the increasing competition in the banking
sector is creating several challenges, the banks need to ensure that the business is based on a
high level of integrity, improved customer service and a wider range of products to meet the
customer needs. The banks must also focus on enhancing the employees' skills and maintain
the quality of the assets.
Ever since OAB was established in Oman, it has been committed to these principles
mentioned above, which has maintained the quality of its assets. OAB has participated in all major
infrastructural development and industrial projects in Oman. The bank has provided the best service to the customers
in managing their investments in the securities market. It has introduced products to meet the needs of
real estate financing and tourism projects in the country.
In doing all this, the bank has always followed the regulations of the international and
local authorities in all its activities. The bank is well capitalized with a capital adequacy ratio 17.73% as at
December 31 2006 and is well prepared to meet the capital requirements under the Basel II accord which is
mandatory from January 2007.
Contribution in Project Finance
The bank continued to be on top of the list of banks providing
project finance and related services in the country. The major recent
projects financed include Salalah Methanol, Sur IWP, Barka IWPP phase II,
Oman Shipping Company, Oman Aromatics and Sohar Aluminum. This is in addition
to the facilities granted to the EPC contractors of these projects. OAB has also
provided facilities to Sohar Port development 3rd phase, Salalah Port expansion, Oman Wastewater
project and many other international and local companies. This has also contributed to the increase on the total
assets of the bank with an impressive growth of 21% in the loans and 12% in personal loans. The customer
deposits recorded a growth of 17% during the year.
Retail Banking and Business Development
The bank has recently introduced various initiatives on the retail banking
front and has major ambitions to launch highly sophisticated products and
services to meet the increasing level of sophistication of its retail customers.
Some of the new products recently introduced by OAB include the Al Dar housing loan which
offers 80% finance with a top up of up to 20% finance through Al Madmoon loans, and Dhaman banccassurance
products providing protection, investment and insurance such as the education plan, saving plan, retirement plan,
life and accident coverage.
Development of Electronic Banking Services
The bank plays a leading role in developing e-banking services. As recognition of this, the Central
Bank of Oman (CBO) selected OAB as the best bank in the usage of the electronic payment system (RTGS/ACH) implemented
by CBO in 2006.
OAB is the only bank to introduce the Business to Business (B2B) system offering instant bill collection
services for telecom service providers Omantel, Oman Mobile and Nawras. The bank also used the Business to Government (B2G)
system to instantly collect the dues for ministries and government establishments. This has enabled the bank to establish
itself as a leading e-banking service provider to the government.
The bank is now offering services on the internet with high security standards.
In addition, the bank has recently launched the SMS banking services enabling customers to avail all basic
banking services including the payment of utility bills electronically.
Credit Ratings
Moody's Investors Service has upgraded the long-term and short-term foreign currency deposit rating
of Oman Arab Bank to A2/Prime-1 from A3/Prime 2. The outlook on these ratings has been changed from positive to stable,
showing the solid stability of Oman Arab Bank.
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