Bank Nizwa Plans Merger with Alizz Islamic Bank, Backed by Ominvest

Jul 17, 2026

61 min

Jul 17, 2026 12:31

Bank Nizwa proposes Alizz Islamic Bank merger backed by Ominvest investment

## Major Merger in Oman's Islamic Banking

Bank Nizwa has announced a proposal to acquire Alizz Islamic Bank, marking a significant development in Oman's Islamic finance sector. This merger aims to create a larger banking entity with enhanced customer reach and capital strength.

## Ominvest's Strategic Role

The merger plan includes bringing Oman International Development and Investment Company (Ominvest) on board as a strategic shareholder. Ominvest could potentially acquire up to a 20% stake in the merged entity through the subscription of new shares.

## Financial Details and Funding

Bank Nizwa intends to purchase Alizz Islamic Bank's entire issued share capital from Oman Arab Bank at a valuation of 1.2 times book value. To support this acquisition, Bank Nizwa plans to issue perpetual Additional Tier 1 sukuk to raise additional funds.

## Approval and Next Steps

The merger proposal is currently non-binding and will require further negotiations, due diligence, and approvals from relevant authorities and stakeholders. Alizz Islamic Bank, currently a subsidiary of Oman Arab Bank, was acquired by the latter in 2020.

## Implications for the Market

If successful, this merger would reshape the landscape of Oman's Islamic banking sector by creating a more substantial institution with increased market influence.

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