Bank Muscat, Oman's biggest lender by assets, will set up a strategic investment fund to invest upto 150 million riyals ($390 million) in various GCC banks over the next few years to diversify earnings.

The lender said in a statement on the Muscat Stock Exchange on Monday that it has won the in-principle approval from the Central Bank of Oman to set up the wholly-owned Strategic Investment Portfolio (SIP).

The bank will invest in various listed GCC banks with the "aim of benefiting from the general growth trajectory of the GCC banking sector", it said

(Writing by Brinda Darasha; editing by Seban Scaria)