HBL Shuts Down Its Operations in Oman

Habib Bank Limited shut down its banking operations in the Sultanate of Oman, according to a Middle Eastern newspaper. According to a notice published in the Official Gazette No. 1,559, the closure of the bank’s Oman branch is in compliance with Article 84 of the Banking Law, as stipulated in Royal Decree No. 114/2000. The termination has been authorized by the Central Bank of Oman, which has also facilitated the process by publishing a formal notice regarding the end of the bank’s activities in the country. As part of this closure, Habib Bank Limited has requested all depositors and individuals with claims against the bank to submit their documentation and claims between August 18, 2024, and October 20, 2024. The decision aligns with Articles 82 and 84 of the Omani Banking Law, which govern the voluntary dissolution and liquidation of banking institutions. Article 82 permits banks to voluntarily terminate their operations with approval from the Central Bank of Oman, while Article 84 mandates notification to depositors and claimants with at least sixty days’ notice prior to the end of the claim submission period. Founded in Pakistan in 1974, Habib Bank Limited is one of the oldest commercial banks in the region. It has expanded globally, with over 1,728 branches worldwide. In 2004, the bank was privatized, with the Aga Khan Fund for Economic Development acquiring a majority stake. The remaining shares were sold by the Government of Pakistan. The decision to close operations in Oman follows a strategic shift by the bank to consolidate its operations and focus on the domestic market in Pakistan. This move is part of a broader strategy that has seen the bank also close branches in the United States, France, and Seychelles, and plans to shut down operations in Afghanistan, Lebanon, and Mauritius, the newspaper stated. HBL is focusing on local operations. It took various initiatives in recent years, including the establishment of HBL Konnect and HBL Zarai Services. The bank operates over 1,700 branches across the country.