To: All Licensed Commercial Banks operating in the Sultanate of Oman

Subject: Investment in Shares and Securities in the International Markets

After Compliments,

Reference is invited to Oman Central Bank Circular No. BM876/1999 dated 23 October, 1999 on the above-mentioned subject.

1. The Central Bank of Oman has since decided that no stop-loss ceiling shall be imposed on banks’ equity related investments in International Stock Markets (still subject to the upper limit of Rial Omani 385,000 ($ (US) 1,000,000), provided,

   • i) the concerned banks exercise due diligence and ensure adequate provisioning in their year-end financials in the case of such marketable equity securities (the lower of cost and market value determined on a portfolio basis at prices prevailing at the end of the year), in full compliance with relevant International Accounting Standards and

   • ii) also incorporate adequate disclosures on the overall performance of such stocks in the Quarterly Reports being published by banks during a calendar year.

2. All other stipulations in the Circular, referred to, governing this specific activity of investment in International Stock Markets, shall remain unchanged.

3. Concerned banks are requested to comply, accordingly.