Bank Muscat is negotiating the possibility of raising a loan a small group of lenders, Reuters cited sources with knowledge of the matter saying, as Oman’s largest lender becomes the latest Gulf bank to hunt for fresh funds to combat a liquidity squeeze in markets.

In recent months, financial institutions in the Gulf have been progressively approaching the loan and bond markets for funds, as the lower oil prices environment compels governments to withdraw cash placed on deposit to meet budget shortfalls.

Bank Muscat is speaking to around 4-5 lenders about raising a loan, according to three sources who spoke on condition of anonymity as the information isn’t public.

While details including the size, tenor and pricing of the loan are still to be determined, it was expected to be in the range of $250 million and $300 million and would last for between two and three years.

Bank Muscat declined to comment.

Other lenders currently in the market for finance include Sharjah Islamic Bank, which is seeking a $200 million sharia-compliant loan, and Dubai Islamic Bank, which began meeting fixed income investors on Monday ahead of a potential dollar-denominated sukuk issue.