ABU DHABI,(Reuters) – Oman’s economy is expected to growth by 5 percent this year, and may issue sovereign debt of 200 million rials ($518 million), the Gulf Arab country’s central bank head Hamood Sangour al-Zadjali said on Wednesday.

Inflation was expect to range between 3.5 and 4 percent this year, the sultanate’s top banker told Reuters on the sidelines of a banking conference.

The planned merger of HSBC Holdings’ operations in Oman with local lender Oman International Bank, which the central bank approved two weeks ago, was expected to close in two to three months, Zadjali said.