Oman Arab Bank SAOC unit Investment Management Group will be acquired by Ubhar Capital SAOC, the bank said Dec. 20.

Oman Investment Fund, Oman International Development & Investment Co. SAOG and Arab Bank (Switzerland) Ltd. signed a memorandum of understanding with Oman Arab Bank to acquire Investment Management Group through their collaboration Ubhar Capital, a new Oman-based investment bank. Ubhar Capital, which will be operational in January 2017, will acquire Investment Management Group's systems, human resources, licenses, assets and liabilities.

Lo'ai Bataineh, head of Investment Management Group, will now head Ubhar Capital, Oman Arab Bank said.

Amin Al Husseini, CEO of Oman Arab Bank, said the sale of its asset management unit was part of the bank's strategy to improve its presence in other lines of business. Proceeds from the sale will be used to finance the bank's core strategic initiatives, Al Husseini added.

Oman Arab Bank is 50.99% owned by Oman International Development & Investment Co. and 49% owned by Arab Bank Plc.