Sohar Bank Eyes Global Expansion with Hong Kong Footprint

Oman’s leading financial institution, Sohar International Bank, has secured regulatory green light to establish a representative office in Hong Kong, marking a significant step in the lender’s international growth strategy. The approval from Oman’s central bank was announced on December 25, signaling the bank’s commitment to broadening its presence across major Asia-Pacific financial hubs.

The move represents Sohar International’s broader ambition to position both the bank and Oman as competitive players in the global financial landscape. By establishing operations in Hong Kong, the institution aims to tap into one of Asia’s most dynamic trading and investment centers, facilitating cross-border transactions and strengthening client relationships in the region.

However, the expansion plans come as the bank navigates mixed financial performance. For the nine-month period ending September, Sohar International reported a net profit of OMR71 million ($185 million), reflecting a 7 percent decline year-over-year. Despite this headwind, investor confidence remains relatively steady, with the bank’s share price appreciating 24 percent over the past twelve months since its December 2024 listing on the Muscat Securities Market.

The regulatory approval carries conditions, requiring Sohar International to secure additional clearances and licenses from Hong Kong authorities and ensure full compliance with both jurisdictions’ regulatory frameworks. The bank had previously indicated in September that it was evaluating either Hong Kong or mainland China as its entry point into East Asia, ultimately opting for Hong Kong’s more established financial ecosystem.

This strategic move underscores Oman’s emerging role in connecting Middle Eastern capital with Asian markets, as domestic financial institutions increasingly look to international markets for growth opportunities amid competitive pressures at home.