A larger Islamic lender
Bank Nizwa wants to acquire the entire issued share capital of Alizz Islamic Bank from Oman Arab Bank. The offer is based on an indicative valuation of 1.2 times book value.
If completed, the deal would fold Alizz into Bank Nizwa’s operations and create a larger lender with broader scale. The proposal was disclosed through the Muscat Stock Exchange and remains non-binding. It still needs due diligence, negotiation and approvals from regulators and shareholders.
The financing structure would include new Bank Nizwa shares and perpetual Additional Tier 1 sukuk. However, the companies did not disclose the transaction value, Ominvest’s investment amount or the planned sukuk size.
Ominvest’s role
Ominvest has approved participation in the funding structure. If the deal closes, it could hold up to 20% of Bank Nizwa through newly issued shares.
That would give the investment company a direct stake in the enlarged Islamic bank. It would also add capital support to the transaction at a time when Gulf banks continue to seek scale and stronger balance sheets.
Alizz Islamic Bank is currently a wholly owned subsidiary of Oman Arab Bank after its takeover in 2020. That earlier transaction made Alizz part of a larger banking group and reshaped Oman’s Islamic banking structure. This latest proposal would take the market another step further by combining Alizz with Bank Nizwa.
For investors, the key question is execution. The Bank Nizwa Alizz merger has strategic logic, but the next stage depends on approvals, final terms and capital-market support. Watch for disclosure on valuation, funding mix and regulatory sign-off, as those details will determine how quickly Oman’s Islamic banking sector can consolidate further.
