To: All Licensed Banks operating in the Sultanate of Oman

After Compliments,

Re: Minimum Capital Requirement

1. Pursuant to Article 60 of Oman Sultani Decree No. 114/2000, the Banking Law and in order to strengthen the financial position of licensed banks and enable them to face competition, finance large projects and increase business, the Board of Governors of the Central Bank of Oman reviewed and determined that locally incorporated banks shall have and at all times maintain a paid up capital of not less than Rial Omani Fifty Millions and that branches of Foreign banks shall have and at all times maintain assigned capital of not less than Rial Omani Ten Millions.

2. While all new banks shall comply with the above requirement ab initio, licensed banks, already operating and falling short of the above, should ensure compliance within a grace period of three years viz., before the end of December 2008. They are encouraged to meet at least one third of the shortfall every year.

3. Specialized banks are exempted from the enhanced requirement.