To: All Licensed Banks operating in the Sultanate of Oman

Subject: Reorganisation in the Control of Shareholding in Locally Incorporated Banks

After Compliments,

1. Attention of banks is invited to Oman Central Bank Circular No. BM807/1997 dated February 4, 1997, conveying the contents of Oman Regulation No. BM/REG/40/1996 published in the Official Gazette No. 592 dated February 1, 1997, on the above-mentioned subject.

2. In response to clarification sought, the banks are hereby advised as under:

   • i) The Regulation to be operative with effect from March 3, 1997 (i.e after 30 days from its publication in the Official Gazette, as mentioned in the Regulation), shall apply to subsequent transactions in the shares of locally incorporated banks. The shareholdings which exist prior to that date shall not be affected.

   • ii) The aggregate ceiling in holdings mentioned in Articles 1, 2 and 3 in the Regulation applies to holdings in a locally incorporated bank and not to the total holdings in all the banks.