Subject: Depreciation of Real Estate Owned by Licensed Banks

At its meeting on 10th October 1982, the Board of Governors of the Central Bank of Oman have decided to issue the following Circular:

In order that licensed banks adopt a broadly uniform approach for the depreciation of real estate and real property, which they own, and commencing with the financial year ending December 1982, banks shall adopt the following practice:

1. • a) Property owned and used for business purposes shall be depreciated over a period which shall be not less than 10 years and not more than 20 years.

   • b) Property owned and used for residential purposes shall be depreciated over a period of not more than 10 years.

   • c) Property owned which is predominantly used for business purposes but which contains residential units shall be regarded as business property and shall be depreciated over a period which is not less than 10 years and not more than 20 years.