Muscat – Saudi Arabia’s Cabinet has approved the licence for Sohar International Bank to open a branch in the kingdom, Saudi Press Agency (SPA) reported.

The Saudi Cabinet in its session on Tuesday approved licensing Sohar International Bank to open a branch to practice banking business in the kingdom.

The Cabinet also authorised the Saudi Minister of Finance to decide on any subsequent request to open other branches of Sohar International Bank across Saudi Arabia, according to the SPA report.

In July, Sohar International Bank announced that it was planning to open its first full-fledged overseas branch in Saudi Arabia and the bank submitted its application to the Saudi central bank to obtain the banking licence.

‘This step (opening a branch in Saudi Arabia) comes in line with Sohar International’s consistent endeavours to take the best of Oman to the world and bring the best of the world to Oman, while following its customers and their businesses wherever they go and to offer responsive services in this ever changing world,’ Sohar International Bank said in a disclosure to the Muscat Stock Exchange on July 11.

The board of directors of Sohar International Bank affirmed to the shareholders that the expansion into Saudi market comes in line with the bank’s strategy to support Oman Vision 2040.

‘The board believes that, with its capabilities and ownership structure, Sohar International is very well positioned to make this endeavour a success,’ the bank said in its disclosure.

Last week, Sohar International signed a memorandum of

understanding with Saudi Export-Import Bank to establish a framework of cooperation between the banks for the furtherance of their respective mandates.

The strategic alliance between Sohar International Bank and Saudi Export-Import Bank will look at co-financing, club deals and providing support to syndication projects which can be executed in both countries.