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In 1993, Bank Muscat was among the smallest banks in the Sultanate of Oman, but over the last decade has grown to be the largest, with a 40% market share in 2013. This increase in terms of market relevance has been driven by both organic growth and external factors. In 2014, Franco Alvarez, a foreign consultant, is trying to help Bank Muscat build a comprehensive innovation model. His first step is focused on understanding the current state of innovation within the bank. The ‘Ibda (Innovation) competition organised by the bank offers him a first glance of how internal innovation could be fostered in the bank. In this case, a simple and innovative way of dealing with a problem in the retail area has been found by a staff member working in the back office. A second clue about how to innovate in Muscat Bank is provided by Meethaq (Alliance), the new business unit focused on Islamic Finance. Meethaq, which operates as a separate unit and works with total independence of the bank, emerged as a result of identifying uncovered needs by a specific group of customers who wanted sharia-compliant financial services. Francisco Alvarez sees how important the Meetaq case could be in terms of providing a model for market-driven, or external, innovation in the bank. Francisco Alvarez’s second step is to understand Bank Muscat’s competitive strategy. He has learnt that the formal strategy is based on being customer oriented, people-centered, and cutting-edge technology. Besides, informal strategy is rooted in several values permeating every team, unit, and person within Bank Muscat. With this in mind, Franco Alvarez defines several questions. The answer to each of them will define Muscat Bank’s innovation model.