We have audited the accompanying balance sheet of Bank Muscat (SAOG) as of 31 December 2002, and the related statements of income, cash flows and changes in equity for the year then ended. These financial statements are the responsibility of bank's board of directors. Our responsibility is to express an opinion on these financial statements based on our audit.
 
We conducted our audit in accordance with International Standards on Auditing. Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements:

i) Present fairly, in all material respects, the financial position of the bank as of 31 December 2002 and the results of its operations and its cash flows for the year then ended in accordance with International Financial Reporting Standards.

ii) Comply, in all material respects, with the relevant disclosure requirements of the Commercial Companies Law of 1974, as amended, and the minimum disclosure requirements for Public Joint Stock Companies issued by the Capital Markets Authority.

13 March 2003
Muscat