Omani bank Sohar International receives SAMA approval for Saudi expansion

Omani firms eyeing Saudi expansion will now find it easier to enter the thriving market, thanks to Sohar International obtaining a no-objection certificate from the Kingdom’s central bank.

The second-largest bank in Oman stated in a press release that this move aligns with its growth strategy, showcasing the ability to identify sustainable expansion opportunities.

The bank’s presence in the Saudi market positions it as a significant player in the region, offering opportunities for Omani corporates seeking to venture into the oil-rich country. Additionally, it anticipates a boost in cross-border trade, job creation, knowledge exchange, and skill development.

According to the CEO of Sohar International Ahmed Al-Musalmi, the entry into Saudi Arabia’s market signifies more than geographical expansion, strengthening connections between both countries and showcasing Oman’s economic strength and strategic financial initiatives.

He said: “This underscores the nation’s economic strength, resilience, and its pioneering take on strategic financial initiatives.”

Al-Musalmi added: “At the core of the bank’s strategic expansion lies a synthesis of personalized, customer-focused offerings and avant-garde services. These form the linchpin of the bank’s overarching strategy, aiming not only for growth but also for the sustained enhancement of the customer experience in an ever-evolving financial landscape.”

Sohar International’s commitment to innovation aims to provide Omani entrepreneurs with advanced tools and resources, keeping them at the forefront of market trends.

This step further reflects the Saudi Central Bank’s efforts to bolster the Kingdom’s finance sector. In a statement released in December, the central bank, also known as SAMA, emphasized the importance of exclusively dealing with authorized financial institutions.

SAMA has granted a license to Saudi fintech firm Smart Interaction to provide finance aggregation services in the Kingdom. With the central bank’s approval, the company became the third authorized firm in the country to offer such services.

In March 2023, SAMA issued a license to Creative Future for Digital Brokerage, enabling it to provide finance aggregation services in the country.

Subsequently, in September, the central bank also granted a license to Intelligent Solutions to offer finance aggregation services within the Kingdom.

SAMA is actively prioritizing the licensing of fintech companies, a critical step in realizing the objectives outlined in Saudi Arabia’s Financial Development Sector Strategy aligned with Vision 2030.

The plan sets ambitious targets, intending to elevate the total number of operational fintech companies to 150 by the end of 2023 and further expand to 525 by 2030.