Iran Petrochemical Value Chain Summit Vienna , 6th & 7th July 2017

His Majesty Sultan Qaboos Bin Said Al Said Sultanate of Oman

OMAN IN A NUTSHELL Iran Area: 309,500 km² Coastline: 2,092 km Currency : Omani Rials ( OMR ) 1 OMR = 2.6 USD The Sultanate of Oman is a country in Southwest Asia, on the southeast coast of the Arabian Peninsula. It borders the United Arab Emirates in the northwest, Saudi Arabia in the west, and Yemen in the southwest. The coast is formed by the Arabian Sea in the south and east, and the Gulf of Oman in the northeast. Iran is across the Gulf of Oman located to the north of Oman at an air travel distance of 1,230 kilometers from the territory of Sultanate of Oman.

WORLD CLASS INFRASTRUCTURE YOUNG AND HEALTHY 4 INTERNATIONAL AND 3 DOMESTIC AIRPORTS MOBILE PENETRATION RATE 8 MAJOR SEA PORTS

Resources and land use Natural resources: petroleum, copper, asbestos, some marble, limestone, chromium, gypsum, natural gas, frankincense Oman Tourism Oman is known for its popular tourist attractions. Wadi's deserts, beaches, and mountains are areas which make Oman unique (Wadis in particular). Jebel Shams is Oman's tallest mountain, highest point, and is a popular destination for camping. Most of the major malls are located in Muscat, the capital. The largest mall in the country is the Muscat City Centre. Other popular tourist activities include sand skiing in the desert, mountain-climbing, camel racing, and camping.

FINANCIAL INSITUTION STRENGTH Banking : Total Number of Banks - Local : 7 Banks - State Owned Banks : 1 Housing & 1 Development - Foreign Banks : 10 Banks - Islamic Banks : 2 Full Fledge Banks , rest Islamic Windows Regulators : Central Bank of Oman ( CBO ) Other Regulators : Capital Market Authority Muscat Securities Market Public Authorities to Support Trade : The Public Authority For Investment Promotion and Export Development ( ITHRAA ) Export Credit Guarantee Agency Oman 7 Industrial Clusters and 3 free zone area’s

GROWING ECONOMY Oman’s Gross Domestic Product (GDP) has increased by a staggering 7.9% CAGR over the last 16 years to USD 66.21 billion from USD 19.51 billion in 2000. The GDP value of Oman represents 0.11 percent of the world economy. GDP in Oman averaged 17.72 USD Billion from 1960 until 2015, reaching an all time high of 81.03 USD Billion in 2014 and a record low of 0.04 USD Billion in 1960. The Gross Domestic Product per capita in Oman was last recorded at 15,000 US dollars in 2016. The GDP per Capita in Oman is equivalent to 126 percent of the world's average. GDP per capita in Oman averaged 12774.83 USD from 1960 until 2015, reaching an all time high of 20257.96 USD in 2009.

WORLD BANK RECOGNISES OMAN AS EMERGING COUNTRIES OF THE WORLD Source: GLOBAL ECONOMIC PROSPECTS, WORLD BANK REPORT- JUNE 2017

STRATEGIC PARTNERSHIPS INITATIVES THAT ARE BEARING FRUITS OMAN HAS TRACK RECORD OF CREATING VALUE WITH PARTNERSHIPS FOCUS ON MANUFATUCRING: AUTO ANCILLARY: The Gulf’s first ever bus assembly plant in Mudhaibi in Oman’s North Al Sharqiyah Governorate planned with th association of SIGIT from Europe where Oman Investment Fund has acquired 40% in SIGIT. STEEL INDUSTRY: Production of steel and aluminum has increased significantly over the past five years as new facilities have come on-line in the sultanate’s industrial estates. Among the most substantial facilities are Brazilian mining company Vale’s $1.36bn iron ore pellet plant, Moon Iron & Steel Company SAOC (MISCO), with an estiatmed investment of USD 377 million DOWNSTREAM PROJECTS: Liwa Plastics Industries Complex (LPIC) is a steam cracker project which will process light ends produced in Orpic’s Sohar Refinery and its Aromatics plant as well as optimize Natural Gas Liquids (NGLs) extracted from currently available natural gas supplies. Salalah Methanol Company LLC (SMC) operates a 3,000 metric tonnes per day natural gas-based plant located in the Salalah Free Zone since 2010. FOOD PROCESSING: Oman Sugar Refinery Company has planned to set up the first sugar refinery in Oman in the Port of Sohar.

YOUNG AND VIBRANT SOHAR FREE ZONE Facilities The zone affords easy access to the East African coast and the Indian subcontinent, and offers plentiful land on which to build units. The first 500-hectare phase of the zone has already been developed, with a further 4500 hectares planned. Benefits 100 per cent foreign ownership (minimum two shareholders); 10-year exemption from corporate tax; No customs duties; No restrictions on sales within the GCC; a standard 5 per cent GCC customs duty applies; Minimum Omanisation levels of 15 per cent; Single-window licensing procedure. The estate is home to 60 businesses, 35 units under construction and a further 55 are expected to come on stream in the near future. On the estate’s doorstep is Sohar Port, a large three-phase project which began late-1999. The Sohar Free Trade Zone has attracted 14 foreign companies, which have invested in metals, minerals and logistics. Other sectors covered include oil and gas, light manufacturing, chemicals and food processing. In May 2013, the zone announced it was expecting $450m in investments over the next year, with $250m from India. Sohar Asaphalt the first Bitumen refinery in Middle East viz, Sohar Asaphalt. This refinery is located at Sohar Port. Total Project cost is USD 382 million. Bank Sohar is the major financier to the project.

NEW AND EXCITING FREE ZONE DUQM DUQM DEVELOPMENTS: Strategically located, Duqm SEZ stretches over an area of 1,745 square metres alongside 70km of coastline on the Arabian Sea. Not only is it one of the largest economic zones in the Middle East and North Africa (MENA); but it is also among the largest and most significant in the world. Over 70 per cent of the world's seaborne petroleum is transported along the coast of the Sultanate of Oman through the Indian Ocean and on to the Pacific

DUQM FREE ZONE DETAILS Benefits No personal income tax; Long-term leases and reduced rates; No restrictions on foreign ownership; No minimum investment capital; Waivers and reduction of corporate tax and customs duties; 100 per cent repatriation of capital and profits. Industries Industrial estates; Warehousing and logistics villages; Tourist villages and resorts; Commercial, office and residential complexes.

INTERNATIONAL INTEREST SO FAR CHINA: Recently, foundation stone was laid for Chinese Industrial City in Duqm by the Special Economic Zone Authority in Duqm (SEZAD). The agreements include the development of about 1,172 hectares of land at SEZAD. The projects will include investments to start up light, medium & heavy industries, oil refineries, petrochemical complexes, logistic services, warehouses, transport, tourism complexes, real estate development, education and health services projects KUWAIT: Duqm Refinery, which is a 50:50 joint venture between Oman and Kuwait will be ready by 2021. Duqm Refinery will have 10 plants producing over 20 products. Duqm will also act as a platform for the future chemical industry. 65% of crude feedstock for the refinery will be from Kuwait, while the remaining 35% will be supplied by the Sultanate. KOREA: Port of Duqm has started the first shipment of limestone from the port’s commercial quay. According to Daewoo Shipbuilding, and Marine Engineering (DSME), operator of Duqm port, expects port's volumes to reach around three million TEUs of containers, 10 million tonnes of dry bulk and 25 million tonnes of liquid bulk by the year 2035.

Oman – Iran Relationship Oman and Iran share close diplomatic and economic ties. Oman has a tradition of cooperation with Iran dating back to the Shah of Iran’s regime and Oman. Oman’s leader His Majesty Sultan Qaboos traveled to Iran in 2009 for the first time since Iran’s 1979 revolution. Economic: In addition to strong diplomatic and political ties, Iran and Oman cooperate economically on several fronts, including energy and natural gas. In addition to these major economic projects, a memorandum of understanding has been signed for a potential joint multi billion dollar petrochemical project and both the countries financial institutions are eagerly awaiting to participate in this project as well as in the future projects. Trade Volume between two countries : Imports USD 800 mio and Export / Re-export USD 200 mio, expected in five years to touch USD 5 billion. ( Iran’s total import 2016 is around USD 41 billion).

CBO and Central Bank of Iran Sign MoU (26/03/2017) Pursuant to the distinguished relations between the Sultanate of Oman and the Islamic Republic of Iran, the Central Bank of Oman recently signed a Memorandum of Understanding (MoU) with the Central Bank of Iran. The MoU aims at strengthening the distinguished bilateral relations and enhancing mutual cooperation between the two countries. It also aims at supporting and developing banking, financial and economic operations for both the Sultanate of Oman and the Islamic Republic of Iran. In addition, the MoU also calls for mutual exchange of knowledge and expertise relating to the banking sector and cooperation between the two countries in promoting bilateral and international trade. The MoU also made reference to both parties' efforts to exchange visits among high officials, implement secondment programs for employees, and enhance training in this regard from the relevant institutions, such as the College of Banking and Financial Studies in the Sultanate of Oman.

BANK SOHAR SAOG BEST IN CLASS OFFERING Retail Banking Products : - Savings , Current , Call and Fixed Deposits - Consumer (personal) and Auto Loans - Debit / Credit cards Wholesale Banking Services / Products : - Funded facilities such as term loan and working capital including Import /Export discounting - Non funded facilities : various types of LC , BG, SBLC - Preloaded / Corporate credit cards - Remote Online Payment syu

BANK SOHAR SAOG – COVERAGE AND SPECIALIZED SERVICES - 30 branches across Oman - 5 Islamic branches - Full fledge Trade Finance Unit - Full fledge Treasury Unit providing all products and solutions - Full fledge Corporate Banking - Structured deals. - Project Finance Unit - Investment Banking - Wealth Management - Full Fledge Financial Institution Group, having RMA / Correspondent relationship with 300 banks / branches, having Trade Sells , Syndication and Risk Participation desk - Specialized EURO arrangements for Trade services - Nostro / Vostro accounts - Corporate and Trade Advisory services

THANK YOU Presented by: Mustafa Ali Mukhtar DGM & Acting Wholesale Banking Contact details : +968 – 99340036 E-mail : mustafa.ali@banksohar.net Website : www.banksohar.net Swift : BSHROMRU