To: All Licensed Banks Operating in the Sultanate of Oman

After Compliments,

Re: Quantitative Ceiling on Housing Loans

1. Reference is invited to Oman Central Bank Circular No. BM1001/2006 dated 16th April 2006.

2. Based upon requests from many banks and to address issues arising from demand-supply asymmetry presently and prospectively, Central Bank of Oman has decided to raise quantitative ceiling, on commercial banks, of housing loans from 5% to 10% of total credit.

3. Central Bank has, separately, advised the banks of the reduction of ceiling interest rate on personal loans (including housing loans) to 8% p.a. (for all loans extended from 14th June 2008).

   All other instructions (including the advice to banks to build prudent and risk-managed portfolio and address such issues of risk management like building up matching long term – stable deposits) remain in force.