BankMuscat Signs Sale And Purchase Agreement With ABN Amro Bank 
NV For Acquisition Of Branch In Bahrain

BankMuscat (SAOG) and ABN Amro Bank NV today signed the agreement for the acquisition by BankMuscat of the Full Commercial Branch and Offshore Banking Unit of ABN Amro in Bahrain.

The agreement paves the way for an expected handing over of the Bahraini banking operations in January 2002, subject to the parties obtaining final approvals from the Central Bank of Oman and the Bahrain Monetary Agency.

The expansion of its banking presence to the Bahraini market forms part of the strategy of BankMuscat to find growth into new markets within the region. The State of Bahrain was identified some time back as a suitable market for expansion within the GCC, and when the opportunity to acquire an existing banking infrastructure and management team from the highly reputable ABN Amro Banking group came up, BankMuscat immediately took up the opportunity.

Substantial planning for the transition of the well established banking operations has been underway for some months, to ensure that the transition of the bank into the BankMuscat fold will be smooth and without disruption of operations, staff or customer relationships. ABN Amro established the Bahrain branch in the mid 1970s.

The banking operations in Bahrain comprise a full commercial banking branch located in the Batelco centre in the central business area of Manama, with a banking hall located in the shopping mall within the same centre. The treasury, relationship management and operations divisions of the bank occupy two full floors of the Batelco office tower. The branch employs 56 staff, and the range of banking services extends to the full range of corporate, private and retail banking products.

2.12.2000