To: All Foreign Banks operating in the Sultanate of Oman

After Compliments,

Re: Minimum Capital Requirement

1. Pursuant to Article 60(b) of Oman Sultani Decree No. 114/2000, the Banking Law, the Board of Governors of the Central Bank of Oman have reviewed and determined that the minimum (assigned) capital requirement of branches of foreign banks in Oman shall be Rial Omani 5 million.

2. While all foreign banks establishing branch(es) in Oman in future shall assign a minimum capital of RO 5 million, foreign banks already having branches in Oman and not having the above amount, shall arrange compliance on or before 31 December 2005. While they shall raise the assigned capital to at least RO 4 million by 31 December 2004, it shall be not less than RO 5 million by 31 December 2005. Existing foreign bank branches shall arrange accordingly, by evidencing the above in the respective audited financials and subsequently.

3. All other relative provisions, including those relating to capital deposits as stated in Article 61(c) of Oman Sultani Decree No. 114/2000, the Banking Law, remain unchanged.