To: All Banks operating in the Sultanate of Oman

Subject: Investments by Licensed Banks

After Compliments,

1. In pursuance of Article 4-4.02(d) of the Banking Law and Article 4-7 of Oman Regulation No. BM/REG/38/4/1994 the Investment Banking Regulation the Board of Governors of the Central Bank of Oman have resolved to vest licensed banks with additional powers for investments, as stated below.

2. In addition to investments authorized under Article 4-4.02(b)(4) of Oman Law No. 7/1974, licensed banks may invest in shares of other banks and financial institutions on the following terms and conditions:

   • i) All such investments shall require the prior approval of the Board of Governors. The investing banks shall satisfy the Central Bank of Oman, among other things, that the laws of relevant jurisdictions do not pose undue responsibilities/liabilities on the investing banks- beyond the amounts invested.

   • ii) Such investments shall be subjected to careful scrutiny with reference to all applicable laws, regulations and practices and of various risks and other relevant considerations on investment decisions, including conflict of interests.