Alizz Islamic Bank SAOG's board of directors has approved a proposed merger with Oman Arab Bank SAOC.

At the end of December 2019, the Oman International Development & Investment Co. SAOG unit offered to carry out a merger through a share swap at a ratio of 81% to 19% for shareholders of Oman Arab Bank and Alizz Islamic Bank, respectively. The actual swap ratio will be based on the net asset value as of Dec. 31, 2019.

The deal is subject to shareholders and regulatory approvals.

If the merger is completed, Oman Arab Bank will be a listed holding company and Alizz Islamic Bank will be a closed joint stock company. The banks initially signed a memorandum of understanding for a potential deal in October 2018.