Partial sale of the Government of the Sultanate of Oman's shareholding in Omantel

Statement from the Secretary General of the Ministry of Finance

The Government of the Sultanate of Oman (the "Government") embarked on a privatization scheme in the 1990s with the objective of establishing a favourable climate for investment into the Sultanate of Oman ("Oman"). This approach saw a number of policies and measures adopted to promote the country's private sector, including the implementation of a privatization programme.

Privatization is a way to equip national companies with the expertise and capabilities they need to become world-class, international players. Through the successful implementation of such a programme, the Government aims to benefit the Omani people, the companies being privatized, their employees and customers, and the strategic partners that invest in such companies.

One of Oman's largest and most successful companies is Oman Telecommunications Co. ("Omantel"). Omantel operates within a dynamic, growing telecommunications market. As Oman's only provider of fixed line and fixed internet services, as well as the leader in the mobile segment, Omantel is one of the most prominent companies in Oman. Omantel underwent partial privatization in 2005 when it was listed on the Muscat Securities Market. The Government currently retains a 70% stake with the remainder of the shares publicly listed.

In line with the Government's privatization objectives, the Ministry of Finance is pleased to be conducting a further privatization of Omantel via the sale of a 25% interest in the Company to a suitable strategic partner. We expect to conclude the sale before the end of 2008.

The purpose of this website is to provide interested parties with a range of information that is relevant to the sale process. It will be updated throughout the sale process. We hope you find it helpful.

Yours faithfully,

H.E. Darwish Ismail Al Bulushi
The Secretary General of the Ministry Of Finance