BankMuscat: the after effects of the storm

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Don't get me started on banks. What an overcharging bunch of swindlers...

Steady on! This is a feelgood story. Oman's BankMuscat, which is considered the top bank in the Sultanate, is giving away US$7.8m to help rehabilitate victims of Cyclone Gonu across the country.

There's a surprise. Are they for real?!

Indeed they are. The sum will be divided between the Ministry of Social Development (US$5.2m) and the Oman Charitable Organisation (US$2.6m). The funds will be accessible to those entities with the next 12 months.

Why give the money to those bodies?

According to the chairman of BankMuscat, HH Sheikh Abdul Malik bin Abdullah Al Khalili, the Ministry of Social Development and the Oman Charitable Organisation have been putting a great effort into reaching out to people across the country. He also added that the bank is confident both entities will ensure the funds are put to the correct use, in order to reach those in the Sultanate who can benefit from it the most.

And it's the largest bank in Oman?

Yes, it has US$8.5bn worth of assets and is known for its presence in corporate banking, consumer banking, investment banking, treasury, private banking, project finance and asset management. It also has 100 branches and a presence in Dubai and Saudi Arabia.

It also owns stakes in banks abroad...

You're right. In addition to a 49% stake in BankMuscat International, it also has a strategic stake in Centurion Bank of Punjab, one of the largest private banks in India.

What about BankMuscat, was it directly affected by the cyclone?

Yes, it was reported that 10 of its branches had to temporarily close for repairs due to damages caused by strong winds and floods.

The bank's contribution will definitely help, but surely much more is needed to repair the damage?

You're absolutely right. Although the government of Oman hasn't released any official figures for losses yet, the estimated damage, according to Oman TV, is expected to exceed US$1bn. Although the damage is significant, Oman's main industries - oil and gas fields and refining plants - have not been drastically affected by the cyclone.

But apart from BankMuscat's help, how is Oman recovering from this natural disaster? After all, it's the worst to hit the country in 50 years...

It seems the country is depending on its own resources; so far the government has not asked for international aid and rejected the US Navy's offer of support. Hundreds of Omani troops have been dispatched on relief duty to the capital Muscat and the eastern provinces, affected most by the calamity.

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