Sohar International’s Strategic Consideration of China or Hong Kong: What It Means for Investors and Business Growth in Oman
MUSCAT, AUG 29 — Sohar International Bank SAOG, a leading Omani banking institution, is considering establishing a representative office in either Hong Kong or mainland China to enhance its access to Asia’s trade and capital markets.
This initiative is currently in the preliminary phase and will proceed only after thorough internal evaluation, obtaining regulatory approvals from both Oman and the host country, and ensuring full compliance with relevant laws, according to a market disclosure signed by CEO Abdul Wahid bin Mohamed al Murshidi.
The bank highlighted the strategic importance of the Asia-Pacific region, particularly Hong Kong and China, as a major hub for cross-border investment, trade facilitation, and collaboration with Asian financial institutions. The proposed representative office would focus primarily on relationship-building, business origination, and market liaison, rather than on deposit-taking or lending activities.
Sohar International has committed to informing the market of any significant developments in accordance with disclosure regulations.
This Asian expansion complements the bank’s recent aggressive regional growth across the Gulf Cooperation Council (GCC) countries. Notably, Sohar International has expanded into Saudi Arabia to strengthen connections with corporates, investors, and financial entities. It has also signed a non-binding agreement to acquire up to 55% of Saudi-based Neo Group Limited, pending due diligence and regulatory approvals, to enhance its advisory and investment services within the Kingdom.
Domestically, Sohar International is pursuing a full acquisition of Insurance House LLC (Bima), Oman’s fully digital insurance marketplace. This transaction remains in the early stages and is dependent on regulatory clearances and customary conditions. The bank views digital distribution and embedded financial services as key growth opportunities for retail and SME customers.
In addition to geographic and product expansion, Sohar International is broadening its presence across capital markets and the real economy. Recent initiatives include providing a consolidated loan facility to Liva Group to support its regional insurance operations and signing a memorandum of understanding for credit facilities with Al Mouj Muscat to advance strategic real estate projects. The bank has also forged a strategic partnership with BNY Mellon to enhance custody and securities services, and supported the launch of Google Pay in Oman as part of its broader digital payments strategy.
For Oman, increased financial connectivity with Asia aligns with the objectives of Oman Vision 2040 by attracting foreign investment, boosting non-oil exports, and integrating local companies into global value chains. Establishing a presence in Hong Kong or mainland China would reduce the distance between Omani clients and Asian counterparts, while the GCC expansion and targeted acquisitions aim to broaden opportunities in trade finance, advisory, and investment products.
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Sohar International’s strategic push into Asia and regional GCC expansion signals growing financial connectivity and diversification for Oman’s economy, aligning with Oman Vision 2040. Businesses should view this as an opportunity to leverage enhanced access to Asian trade and investment flows, while investors could capitalize on the bank’s emphasis on digital transformation and cross-border M&A. Smart entrepreneurs and investors must now consider the rising importance of integrated financial services and strategic partnerships in expanding Oman’s global market footprint.
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