Oman Arab Bank (OAB) needs OMR 10 million to fund its Islamic banking operations, which it will raise through a rights issue.
The board of directors of Ominvest, which owns a 51 per cent stake in OAB, recently approved the proposed increase in OAB’s share capital by way of a rights issue, the money from which will be set apart for Islamic banking operations, reported the Muscat Daily. Ominvest’s contribution to OAB’s fresh capital requirements would be OMR 5.1 million.
The rights issue is being held in order to comply with the stipulated OMR 10 million minimum capital requirement to launch Islamic banking services.
The bank’s Chief Executive Officer, Abdul Kader Askalan, told the Muscat Daily, “We are working on the legal procedure of the rights issue which will be announced at an appropriate time. We are still awaiting CBO’s final regulations on Islamic banking without which we cannot proceed.”