VIII. TRADE AND PROJECT FINANCING Oman's banking sector consists of 21 local and foreign commercial banks, three specialized banks and three investment banks. Most of the local banks have significant foreign shareholders closely involved in management, with many expatriates in senior positions. The banks are generally in good financial condition due largely to relatively close supervision by the Central Bank of Oman (CBO). The CBO raised the minimum capital requirements which forced several bank mergers. Consumer lending accounts for 33 percent of total credits. Omanization is a major focus of the CBO and by the end of 1995, 90 percent of a bank's staff must be Omani. The banks operating in Oman, in descending order of asset size, are: -the British Bank of the Middle East -Standard Chartered Bank -Habib Bank -Citibank -ANZ Grindlays Bank -Habib Bank AG Zurich -Bank of Baroda -Bank Melli Iran -Banque de L'Orient Arabe -National Bank of Abu Dhabi -Banque Saderat Iran The local banks, also in descending order of asset size, are: -Oman International Bank -National Bank of Oman -Bank of Muscat -Bank of Oman, Bahrain and Kuwait -Oman Arab Bank -Al Bank Al Ahli Al Omani -Commercial Bank of Oman -Bank Dhofar Al Omani Al Fransi -Omani European Bank -Oman Banking Corporation In addition to the commercial banks, the Oman Housing Bank, the Oman Development Bank and the Oman Bank for Agriculture and Fisheries serve as specialized government banks to serve specific sectors. There are also several institutions engaged in investment banking on behalf of the Omani government. Their activities range from investing and underwriting to advisory services and fund management for private investors. There are also several non-bank financial companies which provide medium-term asset financing to corporate customers mainly for leasing. However, the total combined capital of these companies is only R.O. 4 million (USD 10.4 million). Eximbank has been involved in Oman in the past, but neither Exim nor the Overseas Private Investment Corporation has been active recently. There are additional possibilities for project financing from the World Bank, Arab development and financial institutions and bilateral aid programs of other GCC members and some European and Japanese development organizations. Mulitlateral Development Banks: 1. The International Bank for Reconstruction and Development (IBRD), a member of the World Bank group makes long-term loans at market- related rates primarily to developing nations. The International Development Agency (IDA), the soft loan window of the World Bank, lends to the poorest of the development countries. Both the IBRD and IDA work to promote broadly based economic growth and frequently focuses on structural adjustment, sectoral reform and individual project lending and operate under the same set of procurement guidelines. Typically the World Bank does not finance the entire cost of a project. Rather, it finances the components of a project purchased with foreign exchange, which on average is about 40 per cent of the total project cost. Each project may cover a wide variety of sectors and can involve anywhere from one to hundreds of separate contracts providing export business opportunities for suppliers worldwide. CONTACTS: U.S. Department of Commerce Liaison to the U.S. Executive Directors Office International Bank for Reconstruction and Development 1818 H. St., NW Washington D.C. 20433 Tele: (202) 458-0118 Fax: (202) 477-2967 Office of Multilateral Development Banks U.S. Foreign Commercial Service U.S. Department of Commerce Room H-1107 Washington D.C. 20230 Tele: (202) 482-3399 Fax: (202) 273-0927 2. The African Development Bank (AFDB), headquartered in Abidjan, Cote d'Ivoire, is an international financial institution created by Africans in 1963 to promote the economic and social development of its member African countries. Founded with initial capital resources of USD 250 million, it has authorized capital today of over USD 22.3 billion. The bank belongs to the African Development Bank Group (ADBG) which also includes the African Development Fund (ADF) and the Nigerian Trust Fund (NTF). The AFDB makes loans to development projects in 51 countries in Africa. The ADB provides development financing on concessionary terms to the poorer African member countries. The NTF was established by the Government of Nigeria in 1976 to assist in the development efforts of the poorer ADB members. The ADFB has 21 non-regional members. The United States joined in 1982. CONTACTS: U.S. Department of Commerce Liaison Office to the U.S. Executive Directors Office African Development Bank Ave. Joseph Anoma 01 B.P. 1387 Abidjan 01, Cote D'Ivoire Tele: (225) 21-46-16 Fax: (225) 22-24-37 Office of Multilateral Development Banks U.S. & Foreign Commercial Service U.S. Department of Commerce Room H-1107 Washington, D.C. 20230 Tele: (202) 482-3399 Fax: (202) 273-0927