1.    Introduction

This Dividend Distribution Policy (the “Policy”) is issued in accordance with Muscat Stock Exchange (“MSX”) Circular (3/2025) and the MSX Dividend Distribution Policy Guidelines for Listed Companies.  The Policy aligns with the Banking Law of Oman, the Central Bank of Oman regulations, Financial Services Authority regulations, Muscat Stock Exchange requirements and Commercial Companies Law. It aims to enhance transparency, ensure consistency in disclosure practices, and support shareholders in making well‑informed investment decisions.

2.    Purpose

The purpose of this Policy is to define the principles, procedures, and governance standards applicable to dividend distributions, in alignment with applicable laws, MSX requirements, and recognized international best practices.

3.    Scope and Applicability

This Policy applies to the Board of Directors, Executive Management, Investor Relations, Compliance teams, and the Board Secretary. It covers all activities related to the planning, recommendation, approval, declaration, payment, and disclosure of dividends to shareholders.

4.    Regulatory Framework and Standards

Dividend distributions shall be undertaken in accordance with:

·        MSX Circular (3/2025) and related MSX guidelines.

·        The Commercial Companies Law of the Sultanate of Oman and its implementing regulations.

·        Applicable corporate governance rules and listing requirements.

Dividend decisions are subject to the recommendation of the Board of Directors and require the approval of the Central Bank of Oman as well as the shareholders.

5.    Roles and Responsibilities

a.    Board of Directors: The Board has ultimate authority to approve / recommend this Policy.

b.    Executive Management: Responsible for assessing the Bank’s financial performance, capital needs, cash flow position, and sustainability considerations, and for preparing dividend recommendations in compliance with this Policy.

c.    Investor Relations / Compliance / Board Secretary: Ensure timely disclosure, investor communication, and publication on MSX.

6.    Dividend Distribution Framework

a.      Authority and Approval: Decisions recommended by Boar and approved by theCentral Bank of Oman and shareholders.

b.      Dividend Intent and Discretion:  Dividend distribution decisions shall consider the Bank’s financial position, including but not limited to net profit and retained earnings as reported in audited financial statements, paid‑up capital, capital adequacy ratio (CAR) and other regulatory capital ratios, the Bank’s liquidity and funding requirements, and compliance with statutory reserve requirements and any applicable financial covenants.

c.       Forms: Cash, bonus shares, or combination. 

d.      Announcement Requirements: Must include declaration dateand the amount.

e.      Disclosure Channels: Bank website and MSX.

f.       Policy Rationale: The objective of this Policy is to provide shareholders with sustainable and predictable returns while maintaining financial flexibility for the Bank.

g.      Legal Conditions:  The Policy shall adhere to all relevant Omani laws, regulations, and directives issued by regulatory authorities. Dividend distributions will be made in accordance with the Bank’s Articles of Association, shareholder agreements, and applicable corporate legislation.

h.      Amendments: This Policy may be amended at the discretion of the Board of Directors. Any material changes shall be disclosed in accordance with Financial Services Authority regulations.

7.    Disclaimer and Forward-Looking Statements

Dividend payments subject to performance, legal requirements and required approvals. Historical dividends not a guarantee. Forward‑looking statements subject to risks.

8.    Shareholder Communication

Shareholders may direct any inquiries regarding dividends to the Investor Relations department through the Bank’s official communication channels.

9.    Board Oversight and Review

The Board shall monitor the effectiveness and implementation of this Policy as part of its broader governance and risk‑management responsibilities.

10.          Contact Information

For further information, please contact:

Investor Relation Officer: Hilal Al Yarabi

Email: [email protected]

Mobile: +968 2265 2546