The National Bank of Oman (NBO) is the second largest bank in the Sultanate of Oman. Founded in 1973, the bank plays a vital role in the economic development of the Sultanate of Oman, and offers a broad range of services focused carefully around customer needs. Its customers benefit from NBOs’ very considerable experience of looking after the requirements of domestic banking customers in Oman and also abroad.
Overall, NBOs philosophy is to run a streamlined and highly cost-efficient operation in order to pursue its core philosophy of offering premium services to its customers at competitive prices. The bank provides a wide range of accounts and deposit services to retail customers, and is renowned throughout Oman for the quality and calibre of the banking services it offers small- and medium-sized companies. As NBOs CEO, Ahmed Al Musalmi says, “With the Omani economy growing, opportunities for small- and medium-sized companies have also increased.
“The impressive rise in trade between Oman, the rest of the Gulf and the world has led to more and more entrepreneurs in Oman setting up new businesses as well as expanding existing ones.”
For large corporations, NBOs Wholesale Banking Group offers a comprehensive portfolio of banking solutions. These corporate clients operate in a highly diverse range of industries and commercial sectors including trading, manufacturing, power, infrastructure, shipping, oil and gas (see Fig. 1), construction, hospitality services, real estate and financial services. The Wholesale Banking Group has teams covering trade finance, cash management, dedicated corporate branch and core centre, specialist treasury, and transaction banking. Naturally, the most obviously significant element in the story of the Omani economy over the past half-century is the significant investments that the government has made to boost economic diversification , enhance trade flows, and the establishment of free trade zones to attract foreign investments. The steady growth of the Omani economy was attributed to an increase in oil prices, growth of non-petroleum activities and domestic demand, and a sharpened focus on improving the investment environment.
The country encourages foreign investment, and foreign investors are likely to be drawn to many factors about the nation
Oman has been pursuing a programme of modernisation, and new and improved infrastructures and industrialisation. It has also been committed to its nationalisation agenda, which seeks to increase employment opportunities for Omani nationals.
Private and public healthcare benefits
From 2009 to 2014, the Sultanate’s GDP growth has remained steady at an estimated five percent growth per year. As Musalmi comments: “This period has allowed for budget surpluses and an accumulation of reserves which will act as stabilisers during periods of potential economic stress.” The population of approximately three million benefits from free education and healthcare for its citizens. The public healthcare system in Oman is of a global standard of excellence, although private healthcare options have greatly soared in recent years, especially due to the increasing requirement for private corporations to provide private medical insurance to their employees.
Growth in infrastructure has been strong with the building of new roads and bridges, as well as hotels and affordable housing projects. The Omani government pursued a concerted agenda to increase the range and variety of downstream activity and to create jobs for Oman’s comparatively young population. There is also an ongoing programme to build a new railway under the auspices of the Omani government’s railway project promoter Oman Rail.
The country encourages foreign investment, and foreign investors are likely to be drawn to many factors about the nation, particularly as Oman’s government continues to drive its diversification strategy forward, providing more opportunities for potential investors in the country. It’s also important to observe that Oman benefits geographically from its strategic location on the east-west trade route and as a gateway for Asia, serving as a port and a commercial centre.
Naturally, a bank which seeks to offer the very best kind of services to customers must operate in harmony with awareness of key economic developments in Oman, as well as be in tune with customers from individual retail customers to the largest corporate clients. NBO is adept at doing all this, and strongly positioned to play an integral part in Oman’s continued economic development.
Concise regulation
Credit growth in Oman’s banking sector has been strong and steady, and investors both inside Oman and beyond its borders enjoy the fact that the financial market there, like all Omani markets, tends to be very well regulated. Oman’s prudent regulatory framework has enabled the nation to be well insulated from the global financial and banking crisis.
So what kind of services does NBO offer investors? Its wholesale banking group provides the widest range of services and tailor-made financial solutions through its Investment Banking Treasury, Fixed Income Group, Corporate Banking and Transaction Banking divisions. NBO recently established a wholesale distribution network in different regions across the nation to serve a bigger market segment. The investment banking team at NBO consists of highly experienced and qualified relationship managers who offer advice and hands-on assistance with mergers and acquisitions, private equity placements, asset management, structured investment products, marketable securities and fixed income, proprietary investments and brokerage services.
The Global Treasury and Financial Markets group offers a wide range of financial products, services and solutions that meet customers’ financial requirements. These requirements cover forex, derivatives, money markets and sharia-compliant treasury products, and also include gold and commodities. NBO enjoys a strong brand image within Oman and has a reputation for understanding economic issues, for being seen to value its relationship with its clients and to be an enthusiastic business partner, protecting their interests.
In 2006 NBO won the accolade of being chosen as the Best Bank in Oman 2006 by The Banker magazine. The following year, the bank was awarded the Best Corporate Social Responsibility Award in World Finance’s 2007 Islamic Finance Awards. As Musalmi says: “Our energy, commitment to clients, knowledge of our local market and markets beyond Oman which are also of great interest to our customers, have given us a significant edge over our competitors.
“We believe that our wide range of products and financial solutions designed to meet our customers’ banking needs helps us to build strong and long-term relationships with our customers. We also believe that the banking service NBO offers in Oman brings the bank into a real and dynamic situation of partnership with our customers, and that we will continue to prosper and grow in harmony with them to achieve our vision – to be the bank of choice.”
