To: All Licensed Banks operating in the Sultanate of Oman

Subject: Prohibition on the Holding of Multiple Directorships in the Boards of Directors of Locally Incorporated Banks.

After Compliments,

Attention is drawn to Oman Central Bank Circular No. BM705/1995 dated October 25, 1995 conveying inter alia that pursuant to Article 4-6.06 (b) of Oman Law No. 7/1974 no locally incorporated bank shall appoint to its Board of Directors any person who is already a member of the Board of Directors of another bank.

The Central Bank of Oman was recently called upon to determine whether the above prohibition on directorships applies also in the case of persons appointed to the banks’ Boards on the basis of proxies issued by the shareholders owning significant equity stake in banks.