As part of their plans to strengthen the capital adequacy, many Omani banks are planning right issues and private placement of shares in the coming quarters of the current financial year. The banking sector in the Sultanate has been witnessing an excellent uptrend mainly thanks to the prevailing conducive macro-economic environment in the country.
Economic liberalisation, rising economic diversification initiatives, rising government and private sector spending on infrastructure developments and healthy population growth are the major factors which contribute to this affluence. “Banks need additional capital to meet high demand for credit as several big ticket projects that were awarded towards the end of 2011 will reach implementation stage by early this year. As the level of disposable income increases there is likely to be good growth in the retail segment as well”, says Suresh Kumar, Head of Research, Al Maha Financial Services.
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