1. Panel 2: The Road Ahead for Omani Banking 13 April 2008

2. Banking Sector in OmanPage 2 Oman Banking Sector Structure Central Bank of Oman (CBO)  7 Local Commercial Banks  9 Foreign Banks  2 Specialised Banks ► Strong attractiveness in the Omani banking industry as more foreign banks are getting banking licenses into the Sultanate. ► In 2007, Standard & Poor’s ranked Oman as the best performing GCC market in funds management. ► In 2007, Moody’s upgraded the Bank Financial Strength Rate (BFSR) of the majority of the Omani banks. 48 Money Exchange Establishments 6 Finance & Leasing Companies Banking Institutions

3. Banking Sector in OmanPage 3 Oman Banking Regulatory Overview CBO Major Lending Requirements ► Total loans, discounts, advances, and overdrafts extended by a bank should not exceed 87.5% of its total deposits and capital ► Personal loans are capped at 40% of total loans ► Interest rate ceiling on personal loans set at 9% per year ► Housing loans are capped at 5 % of total loans ► Limit on corporate loans to any one project set at 15% of net worth Minimum Capital Requirements for New Banks Local BanksRO 100 million Foreign BanksRO 20 million

4. Banking Sector in OmanPage 4 Oman Banking Sector Performance Historical Total Credit and Profitability of the Omani Banking Sector Source: Annual Reports, Central Bank of Oman

5. Banking Sector in OmanPage 5 Characteristics of the Omani Banking Sector Improving economic and demographic environment Aggressive investment plan by the Government and Private sector Strong Tourism and Real Estate growth Stable Earnings Well regulated and protected sector Emerging opportunities:  Project Finance  Housing Finance