Yeah, University of Alabama does provide scholarships based on merit. Here are some of them:

Presidential Elite Scholar (In-State Merit Scholarships)
Total Worth: Value of tuition for up to four years for degree-seeking undergraduate and graduate or law studies
One year of on-campus housing at regular room rate
$1,000 per year stipend for four years
$2,000 one-time allowance for use in summer research or international study (after completing one year of study at UA)
$2,000 book scholarship ($500 per year for four years)
Eligibility: Value of tuition for up to four years for degree-seeking undergraduate and graduate or law studies
One year of on-campus housing at regular room rate
$1,000 per year stipend for four years
$2,000 one-time allowance for use in summer research or international study (after completing one year of study at UA)
$2,000 book scholarship ($500 per year for four years)
Minimum Criteria: 4.0 GPA and a 36 ACT or 1600 SAT
Application deadline: December 15

Presidential Elite (Out-of-State Merit Scholarships)
Total Worth: Value of tuition for up to four years for degree-seeking undergraduate and graduate or law studies
One year of on-campus housing at regular room rate
$1,000 per year stipend for four years
$2,000 one-time allowance for use in summer research or international study (after completing one year of study at UA)
$2,000 book scholarship ($500 per year for four years)
Eligibility: Value of tuition for up to four years for degree-seeking undergraduate and graduate or law studies
One year of on-campus housing at regular room rate
$1,000 per year stipend for four years
$2,000 one-time allowance for use in summer research or international study (after completing one year of study at UA)
$2,000 book scholarship ($500 per year for four years)
Minimum Criteria: 4.0 GPA and a 36 ACT or 1600 SAT
Application deadline: December 15

National Alumni Association Crimson Scholarships
Total Worth: Value of in-state or out-of-state tuition for 4 years
Plus an additional $3,500 per year for 4 years
$300 book grant each year for 4 years
$2,000 study abroad or summer research (to be used after one full academic year at UA)
Eligibility: Value of in-state or out-of-state tuition for 4 years
Plus an additional $3,500 per year for 4 years
$300 book grant each year for 4 years
$2,000 study abroad or summer research (to be used after one full academic year at UA)
Minimum Criteria: A minimum 3.8 cumulative GPA (4.0 scale), a minimum 32 ACT or 1450 SAT [evidence based reading and writing plus math] for in-state and 33 ACT or 1490 SAT [evidence based reading and writing plus math] for out-of-state applicants, and demonstrate extensive leadership. While not a requirement, we prefer an applicant is ranked in the top 2% of their high school graduating class.
Separate application needed: Yes
Application deadline: December 15

University of Alabama provides aids at an average of 15376 per student meeting 58% of students need. 97% of students with need receive financial aid at an average of 13777 need-based grant. They also provide other scholarships including Alumni Heritage Scholarship.