To: All Licensed Banks operating in the Sultanate of Oman

Subject: Grant of Loans by Banks for Shares

After Compliments,

1. Attention of licensed banks is invited to Oman Central Bank Circular No. BM814/1997 dated June 7, 1997, stipulating, among other things, that banks shall arrange for subscriptions to Initial Public Offerings are financed for not more than 50% thereof and that a minimum of 50% of the cost of subscriptions is brought in by the borrowers.

2. It has since been decided that all the stipulations as regards financing IPOs shall remain in full force as contained in the above Circular and also that banks should not finance more than 50% of the cost of shares purchased through the primary or secondary market.

3. Banks shall not extend credit facilities against security of shares traded in Muscat Securities Market beyond 75% of the market value of the shares pledged as collaterals.