04 January 2021

2020 MARKET REVIEW AND 2021 OUTLOOK

The year 2020 for financial markets can be summed up in two words: volatile and unpredictable. The world was taken by storm covid-19 pandemic. The global economy witnessed fastest ever economic slowdown, and in some cases recession, since at least the World War II (WWII). Covid-19, the disease caused by coronavirus, which as per the latest statistics has infected 80mn people worldwide and has caused more than 1.5mn casualties, dominated the year’s key events. Lockdowns, which started in China, quickly spread to Asia and then to Europe, and in the end in US, caused the global economy to come to a halt with global activity falling by over a quarter at its peak. Many top institutions succumbed to the pandemic, travel and tourism halted, oil price (Brent) went below USD 20/bbl., bankruptcies increased and millions of people lost their jobs.

This unprecedented economic halt kick started a massive policy response from world majors, with the US Federal Reserve (the Fed) swiftly cutting rates to zero and other central banks quickly following suit. The US Fed, ECB and other central banks expanded existing asset purchase programs and, in some cases, initiated new ones. Low interest rates and abundant liquidity in the markets because of trillions of dollars of stimulus led to a V-shaped recovery in most markets. Also, the markets across the globe witnessed a new wave of young and first-time investors, largely as a result of work- from-home situation fueling a desire to earn extra income during challenging times.

1968-1969 2009-10 2012-2020 Hong Kong flu Swine Flu MERS

1910 1920 1930 1940 1950 1960 1970 1980 1990 2000 2010 2020

1957-1958 2002-2003 2019-21 1918-1919 Spanish Flu Asian flu SARS Covid-19

2014-2016 Ebola

Pharmaceutical and biotech companies across the globe rushed to find an effective vaccine for covid-19, with some of them defying the long vaccination trial protocols and successfully delivering a vaccine with over 90% efficacy. While only a handful have received regulatory approvals, many companies are expected to roll out vaccines by the middle of next year.

Governments and central banks shelled out over USD 20 trillion since the corona-virus erupted to "put a floor under the world economy," according to the International Monetary Fund. Governments announced nearly USD 13 trillion in stimulus measures and central banks chipped in at least USD 8 trillion to soften the impact of the pandemic on their economies.

Almost similar policy response was witnessed in the GCC as well with rate cuts, stimulus and moratorium on loan repayments being the common response by all GCC countries. With this materializing, the GCC markets ended mix with some ending in green while some in red. Saudi Arabia led the GCC markets and ended at the top while Kuwait remained as the laggard ending the year most negative. Qatar also ended in green also largely led by expectations of thaw in relationship over the blockade which was introduced in 2017. While most stock markets were on fire post-Government announcements of unprecedented economic support packages, the MSM30 Index continued on its sideways pattern, staying roughly between the lowest level seen this year at 3383.54 and the highest level seen at 3780.75.

1 P.O.BOX 1137, PC 111 – CPO, Sultanate of Oman l CR No. 1279406 l Tel: +9682494 9000 l Fax: +9682494 9099 l Email: [email protected] l Web: www.u-capital.net

ASSET CLASS PERFORMANCE IN 2020

S&P 500 Index (SPX) Gold Price (USD per 100oz)

4000 2100 2000 3600 1900

3200 1800

2800 1700 1600 2400 1500

2000 1400

2-Jul-20

31-Jul-20

2-Jan-20

2-Jun-20

2-Oct-20

31-Jan-20

2-Feb-20 2-Apr-20

2-Sep-20

30-Jun-20

2-Dec-20

31-Oct-20

2-Aug-20

29-Feb-20 30-Apr-20

30-Sep-20

31-Dec-19 31-Dec-20 2-Nov-20

2-Mar-20

31-Aug-20

30-Nov-20

2-May-20

31-Mar-20 31-May-20

Bitcoin/USD Cross Rate Brent Crude (USD/barrel)

35000 70

28000 60

21000 50

14000 40

7000 30

0 20

2-Jul-20

2-Jan-20

2-Jun-20

2-Oct-20

1-Jul-20

2-Feb-20 2-Apr-20

2-Sep-20

2-Dec-20

2-Aug-20

2-Nov-20

1-Jan-20

2-Mar-20

1-Jun-20

1-Oct-20

2-May-20

1-Apr-20

1-Feb-20

1-Sep-20

1-Dec-20

1-Aug-20

1-Nov-20

1-Mar-20 1-May-20

S&P GCC Bond & Sukuk Index USD Index 160 105

150 100

140 95

130 90

120 85

110 80

31-Jul-20

31-Jul-20

31-Jan-20

30-Jun-20

31-Oct-20

31-Jan-20

29-Feb-20 30-Apr-20

30-Sep-20

30-Jun-20

31-Dec-19 31-Dec-20

31-Oct-20

31-Aug-20

29-Feb-20 30-Apr-20

30-Sep-20

31-Dec-19 31-Dec-20 30-Nov-20

31-Mar-20

31-Aug-20

30-Nov-20

31-Mar-20 31-May-20 31-May-20

Source: Bloomberg

2 P.O.BOX 1137, PC 111 – CPO, Sultanate of Oman l CR No. 1279406 l Tel: +9682494 9000 l Fax: +9682494 9099 l Email: [email protected] l Web: www.u-capital.net

EXPECTATIONS FOR 2021

 Vaccine: We believe many successful vaccines will be announced by pharmaceutical companies against COVID-19, which will aid the global markets in recovery. However, the logistics of delivery of the vaccine and vaccinating a mass population will be challenge which will continue not only in 2021 but in 2022. The International Air Transport Association (IATA) calls the process the “largest and most complex global logistics operation” ever undertaken, it will be up to governments to ensure the infrastructure and air routes are ready for this phase.  Global Growth: After a 4.4% decline in 2020, global GDP is projected to increase about 5.2% in 2021 as per IMF. Global economy will enter 2021 at a subdued growth rate and is expected to accelerate in the second half. Headwinds to robust near-term growth include COVID-19-related lockdowns in early 2021, new and stronger strains as seen in UK to put brakes, consumer sentiments to take time in picking up and the strains of rising public and private debt. Yet, the reopening of economies and the availability of vaccines will gradually unleash a new wave of spending on travel and services.  US: US economy is expected to start 2021 slowly and accelerate in the second half. The US economy has partially recovered from its worst downturn since the Great Depression. However, a new wave of COVID-19 infections, the possible re-imposition of lockdowns to contain the virus, and waning stimulus from pandemic relief measures enacted in 2020 threaten to undermine growth through early 2021. The US dollar is expected to weaken in 2021 in a lagged response to the Fed's sharp pivot to monetary accommodation in early 2020, an increase in investor risk tolerance, and a widening trade deficit.  Europe: The European economy is projected to contract by 7% in 2020 and rebound by 4.7% in 2021 as per IMF. Headline inflation is projected to soften to 2% in 2020 1 percentage point below its 2019 level. The outlook is exceptionally uncertain. The ongoing resurgence of infections across Europe presents perhaps the greatest downside risk at this stage.  China: China is among the few countries to actually have grown in 2020, unlike the rest of the world, which has been in recession throughout 2020. China is also on track to expand by more than 7% in 2021. We believe growth in china is instrumental for global economic growth and for broader and better equity market performance.  Oil: Oil prices are expected to average between USD 50-60/bbl in 2021, higher than the average of USD 43/bbl in 2020 mainly on the basis that capital expenditure to the tune of USD 400bn has been cut by the global oil producers which will lead to squeeze in supply.  GCC: GCC region is expected to do well compared to 2020. Better oil price outlook, cost control measures adopted by the government, focus on foreign investment and expectation of thaw in relationship between some of the aggrieved countries will prove beneficial to the region.  Equities: Equities continue to be best positioned to benefit from the economic recovery coupled with the continued low interest rate environment and supportive monetary and fiscal policy.  Tourism: Tourism is one of the key industries that suffered because of the pandemic. Coming into 2021, we believe revival of the industry, however we expect completely recovery in the industry to the levels of pre-pandemic not to be reached before 2022.  Fintech and Artificial Intelligence: Fintech and Artificial Intelligence led development which picked up pace in 2020 due to Covid-19, will accelerate rapidly going into 2021. We expect, individuals and corporate to increase spending on such measures to lower their costs in the long run.  Entrepreneurship: The pandemic will unleash a new wave of entrepreneurs. As seen historically, in last global financial crisis which set off a wave of entrepreneurialism, as high unemployment encouraged would-be business owners to pursue their great idea rather than rely on a turbulent job market. We can expect the same when the dust settles from this crisis.

3 P.O.BOX 1137, PC 111 – CPO, Sultanate of Oman l CR No. 1279406 l Tel: +9682494 9000 l Fax: +9682494 9099 l Email: [email protected] l Web: www.u-capital.net

EVENTS TO WATCH OUT FOR IN 2021

1Q21: 2Q21:  Joe Biden will be sworn in as the 46th US president on  IMF will issue its semi-annual world economic outlook January 20 2021. in April 2021.  41st GCC Summit that’s taking place in Saudi Arabia on  US Fed meetings in April and June. January 5, 2021.  EU is expected to propose legislation in June to expand  European Union will remove the twice-a-year custom its emissions-trading market to include carbon dioxide of changing the clocks by an hour in spring and from shipping. autumn by 2021.  Britain’s job-support program, which had been paying  US Fed meetings in Jan and March. 80% of wages for about 5 million workers, is scheduled  13th OPEC and non-OPEC Ministerial Meeting in to end in April 2021. January 2021.  Value Added Tax to be implemented in Oman in April  UK to complete its breakup from the European Union 2021. as per Brexit deal.  OPEC and its oil-producing allies to increase production by 500,000 barrels per day beginning in January.  Deadline for loan repayment and installments ends in March 2020 in almost all GCC countries.  Saudi Arabia will loosen restrictions on foreign workers, allowing them to change jobs or travel without their employer’s consent from March 2021.  Kuwait to issue result of bank stress results  Ending of No Objection Certificate (NOC) to take effect in Oman in January 2021.  Water and electricity charges to increase in Oman.

3Q21: 4Q21:  OECD aims to conclude talks on taxing global internet  The end of 2021 is the deadline to replace the London companies by mid-2021. interbank offered rate as a benchmark in financial  US Fed meetings in July and September. transactions.  European Central Bank is expected to present the  Oil-producing countries are scheduled to review their results of a strategic review following its summer agreement on petroleum production, which expires on break. It’s the first such exercise since 2003 and could April 30, 2022. enshrine climate goals in the bank’s monetary-policy  US Fed meetings in November and December. framework.  China’s domestic bonds will be included in the FTSE  Germany’s benchmark stock index, the DAX, will Russell flagship World Government Bond Index from expand to 40 members from 30 in the third quarter. October.  In November 2021, UN will hold Climate Change Conference where proposals will be floated to reduce carbon dioxide emissions and to transition away from reliance on fossil fuels.  IMF will issue its semi-annual world economic outlook in October 2021.  Dubai Expo 2021 to kick off starting Oct 2021 to March 2022.

4 P.O.BOX 1137, PC 111 – CPO, Sultanate of Oman l CR No. 1279406 l Tel: +9682494 9000 l Fax: +9682494 9099 l Email: [email protected] l Web: www.u-capital.net

GCC SUB INDICES PERFORMANCE IN 2020

DFM Consumer Staples -45% KW Consumer Service -24% DFM Banking -17% BAH Services -17% BAH Hotel and Tourism -16% KW Banks -15% ADX Banking -15% BAH Banks -15% Tadawul Commercial & Prof Serv. -15% KW Financial Services -14% QE All Share Insurance -12% KW Real Estate -10% DFM Real Estate & Construction -7% KW Health Care -7% QE All Share Consumer Goods & Srv -6% Tadawul Banks -6% DFM Industiral -5% KW Industrials -4% Tadawul RE Mgmt & Dev -3% KW Technology -2% KW Telecom -1% DFM Transportation -1% KW Basic Materials -1% Tadawul Energy 0% QE All Share Banks&Finac 1% Tadawul REITs 2% KW Oil and Gas 3% QE All Share Index 3% ADX Telecommunication 3% DFM Telecommunication 4% QE Total Return Index 5% Tadawul Utilities 5% QE All Share Industrials 6% DFM Investment and Financial 6% Tadawul Telecom 7% Tadawul Consumer Svc 7% QE Al Rayan Islamic 8% Tadawul Media 8% ADX Services 9% Tadawul Transportation 9% ADX Energy 10% Tadawul Retailing 11% Tadawul Materials 11% QE All Share Telecoms In 13% BAH Insurance 13% ADX Insurance 15% KW Consumer Goods 17% DFM Services 19% KW Insurance 21% DFM Insurance 21% BAH Industrial 22% QE All Share Real Estate 23% Tadawul Food & Beverages 24% ADX Industrials 25% BAH Investment 26% QE All Share Transprt In 29% Tadawul Insurance 34% Tadawul Diversified Fin 39% Tadawul Pharma, Biotech & Life Science 43% ADX Real Estate 45% Tadawul Health Care Equipment & Services 51% Tadawul Food & Staples Retailing 57% Tadawul Cons Dura & App 62% ADX Consumer Services 119% ADX Invst and Financial Services 125%

Source: Bloomberg

5 P.O.BOX 1137, PC 111 – CPO, Sultanate of Oman l CR No. 1279406 l Tel: +9682494 9000 l Fax: +9682494 9099 l Email: [email protected] l Web: www.u-capital.net

TOP – 25 BEST & WORST PERFORMING STOCKS IN THE GCC

AL-HASSAN ENGINEERING CO -72.0% EMIRATES REIT CEIC PLC -68.9% IFA HOTELS & RESORTS CO. K.S -64.5% ARABTEC HOLDING CO PJSC -58.9% UNITED POWER CO SAOG -58.7% MUSCAT INSURANCE CO SAOG -55.1% GULF INVESTMENTS SERVICES -51.0% INVEST BANK -50.5% DXB ENTERTAINMENTS PJSC -51.1% NATL ALUMINIUM PRODUCTS -49.4% AMLAK FINANCE -46.7% KUWAIT HOTELS SAK -42.8% DHOFAR CATTLEFEED -38.2% AL MASAKEN INTL REAL ESTATE -42.7% ALRAI MEDIA GROUP CO KSC -41.8% GALFAR ENGINEERING&CONTRACT -37.7% AL MAL INVESTMENT COMPANY -40.4% UNITED FINANCE CO -43.1% SHARQIYAH DESALINATION CO SA -38.9% NATIONAL INVESTOR CO/THE -38.5% BAHRAIN COMMERCIAL FACILITIE -39.5% RABIGH REFINING AND PETROCHE -35.5% JAZEERA AIRWAYS CO KSC -33.6% SOKOUK HOLDING CO SAK -31.8% MENA REAL ESTATE CO -33.6% ALLIED COOPERATIVE INSURANCE 131.3% TIHAMA ADVERTISING & PUBLIC 139.6% DEVELOPMENT WORKS FOOD CO 152.2% MALATH INSURANCE 138.6% TOURISM ENTERPRISE CO/ SHAMS 146.2% DUBAI ISLAMIC INSURANCE CO 151.8% WATANIYA INSURANCE CO 154.1% HALWANI BROS CO 159.0% INMA HOLDING COMPANY 170.0% AL MOAMMAR INFORMATION SYSTE 173.4% AL SAMAANI FACTORY FOR METAL 178.2% ABU DHABI NATIONAL ENERGY CO 170.6% ABDULLAH SAAD MOHAMMED ABO M 176.9% EZDAN HOLDING GROUP 191.4% DLALA HOLDING 196.6% AMANA COOPERATIVE INSURANCE 216.7% NATIONAL BUILDING AND MARKET 190.0% ANAAM INTERNATIONAL HOLDING 233.9% QATAR GERMAN CO FOR MEDICAL 284.9% ARAB SEA INFORMATION SYSTEMS 300.4% GULFA MINERAL WATER & PROCES 304.0% WAFRAH FOR INDUSTRY AND DEVE 335.2% SAUDI PAPER MANUFACTURING CO 384.7% INTL HOLDINGS CO PJSC 575.8% UNITED PROJECTS FOR AVIATION 1695.8%

Source: Bloomberg

6 P.O.BOX 1137, PC 111 – CPO, Sultanate of Oman l CR No. 1279406 l Tel: +9682494 9000 l Fax: +9682494 9099 l Email: [email protected] l Web: www.u-capital.net

GCC RECIEVES NET FOREIGN FLOWS OF ~USD 6.3bn

GCC Monthly Net Foreign Flows (USD mn) GCC Country Wise Net Foreign Flow (USD mn) - YTD 2,477 4,998 1,309 994 866 793 593 448 165 178 173 107 1,708

231 56 -1,870 -105

-655

Jan

Oct

Feb

Dec

July

Aug Nov

Mar Oman Saudi Arabia Kuwait Qatar Dubai Abu Dhabi

May

Sept

June April

COUNTRY WISE - FOREIGN FLOWS - 2020

Oman (USD mn) Saudi Arabia (USD mn)

7 1,317 2 839 660 752 643 532 421 533 248 -1 114 -5 -5 -9 -10 -151 -13 -16 -16 -16 -909 -22 Jan Feb Mar April May June July Aug Sept Oct Nov Dec Jan Feb Mar April May June July Aug Sept Oct Nov Dec

Kuwait (USD mn) Qatar (USD mn)

171 170 1,583 93

46 34 20 18 28

186 130 60 11 66 72 71 NA -37 -55 -96 -106 -370 -127 -127 Jan Feb Mar April May June July Aug Sept Oct Nov Dec Jan Feb Mar April May June July Aug Sept Oct Nov Dec

Dubai (USD mn) Abu Dhabi (USD mn)

114 153 87 80 129 67 51 56 28 6 8 10

-44 -70 -38 -103 -80 -100 -104 -101 -140 -166 -216 -227 Jan Feb Mar April May June July Aug Sept Oct Nov Dec Jan Feb Mar April May June July Aug Sept Oct Nov Dec Source: Bourse Websites

7 P.O.BOX 1137, PC 111 – CPO, Sultanate of Oman l CR No. 1279406 l Tel: +9682494 9000 l Fax: +9682494 9099 l Email: [email protected] l Web: www.u-capital.net

OMAN MARKET OUTLOOK 2021

 Oman government will continue to focus on implementing its Medium Term Fiscal Plan in true spirit. The Medium- Term Fiscal Plan (MTFP) 2020-2024 has been developed to reduce the primary and overall fiscal deficits as a percentage of GDP in the medium- term to sustainable levels in the mid-term period. The MTFP serves as the financial framework supporting Oman 2040 vision.  Government is expected to continue to utilize reserves, privatization proceeds, reduction in subsidies and cost cutting measures to keep the deficit in check and maintain its credit rating.  The government is currently engaged in ongoing efforts to strengthen taxation administration and collection efficiency to ensure all companies are adequately addressing their tax obligations under the law. The issuance of Royal Decree No 66/2019 established the Oman Tax Authority (TA). This move is intended to provide increased focus on capacity building and tax administrative efficiency  IPO market will remain slightly better than 2020. We expect 3-4 IPOs in the field of oil/gas, insurance, utilities and more REITs to materialize in 2021.  We might see introduction of new products in the markets such as exchange-traded funds (ETFs).  Expatriate exodus to lower consumption which will impact various sectors.  Increase in water and electricity charges to result in lower margins for industrial and services sector companies.  VAT implementation in April 2021 to aid the government in increasing its non-oil revenue and reduce its reliance on oil sector in the long run.  Consolidation in financial sector will continue and we might see companies getting acquired or merged in the sector.  Expectation of peace in Yemen is stronger in 2021, which would mean increasing reconstruction activity. Such proposition would be beneficial to local building material and construction companies.  Credit growth is expected to remain at a mid-single digit in 2021, assuming oil prices remain at current levels.  Fate of moratorium loans will be revealed after 1Q20, as CBO has extended the deadline until March 31, 2021.  Low US Fed policy rates are expected to provide respite to borrowers but will at the same time pressurize interest yields of banks.  Highly competitive environment continues to pressurize other operating income of banks, which constitutes (typically within c25-35% of total operating income of banks)  Current capital adequacy ratios for most banks are well-above the minimum regulatory requirements through continuous capital raising activities in prior years. However, some banks might raise capital in 2021 in order to further strengthen their balance sheets.  Oman’s leasing sector is expected to continue to face multiple challenges, from liquidity crunch to increasing defaults and delayed payments. Additionally, tough competition from commercial as well as Islamic banks will continue.  Mandatory health insurance for residents and nationals along with for tourists will be implemented in multiple phases which will be beneficial to the insurance sector of Oman.  In the cement sector, local and international expansion will increase the capital expenditure of the companies as multiple projects are being carried out. However, continued competition and overall moderate macro performance will result in relatively limited growth rates.  In telecom sector, we expect Vodafone to start operating in mid-2021 which will result in more competition locally. However, we do not expect an immediate impact on the existing operators in 2021 but will see erosion of market share of existing operators over the next 2-3 years.  Full impact of anti-dumping duty on the ceramic sector will be seen in 2021. Companies in Ceramic sector in Oman will continue to benefit out of this proposition.

8 P.O.BOX 1137, PC 111 – CPO, Sultanate of Oman l CR No. 1279406 l Tel: +9682494 9000 l Fax: +9682494 9099 l Email: [email protected] l Web: www.u-capital.net

2021 MUSCAT SECURITIES MARKET TECHNICAL FORECAST Muscat Securities Market Index during 2020 witnessed several fluctuations, in addition to several events during the last few months, including economic and geopolitical events affected by the fluctuations in oil prices that affected the region, either positively or negatively. For 2020, we will review the movement of the general index of the Muscat Securities Market in detail during each quarter:

During first quarter: The MSM30 index decreased during the period trying to rise even slightly to the level of 4,200 points (reaching its highest point in 2020) fluctuating in the movement above the level of 261.8% Fibonacci. While it slightly goes down to reach the level of 3,448 points.

During second quarter: With the beginning of the second quarter to the end during 2020, the Muscat Securities Market Index stabilized within a horizontal volatility forming an inverted head and shoulders. (in this quarter the lowest point reached during 2020 at 3,367 points).

During third quarter: During the third quarter of the year, the region's markets rebounded, supported by higher oil prices, which began to rise significantly in the quarter, MSM30 index during the period, continue its uptrend trying to rise, even slightly to the level of 3,782 points (the highest level in the second and third quarter) fluctuating in the movement above the level of 100% Fibonacci.

Finally, during the fourth quarter of the year, the Muscat Securities Market Index stabilized within a range of these level (3,535 & 3,676 points). The index will continue to decline in the beginning of the first half of 2021 level of 3,750 points.

Technically exposing the market in 2020 for corrective periods (the index crossed the 100-day moving average index with MSM index four times during the year).

In 2021, especially in the first half, we expect the Fibonacci level at 161.8% to remain at 3,778 (1st resistance). Once the index broke this level it will face the second resistance level at 3,800 points.

In terms of other technical indicators, we start with the Bollinger Band Index which is resisting the Mid-line at 3,600 points, and it is technically expected that the MSM index will cross up the above line of the Bollinger.

The MFI and the RSI are technically positive; the first stands at 39 degrees and it is technically excellent (above 50 degrees the risk is higher in this indicator) and the second stands at 55 degrees (above 70 degrees the risk will be increased).

In the performance of the moving averages index, during the year, especially in the last quarter, the index crossed up 50- day moving averages. We see that the index has an initial support at 3,460 points (second support at 3,380 points) and a first resistance at 3,778 points and second resistance at 4,000 points.

9 P.O.BOX 1137, PC 111 – CPO, Sultanate of Oman l CR No. 1279406 l Tel: +9682494 9000 l Fax: +9682494 9099 l Email: [email protected] l Web: www.u-capital.net

MSM MARKET REVIEW 2020

(a) Corporate financial results for FY19 (b) Ascension of His Majesty Sultan Haitham bin Tariq bin Taimur to the (a) Some economic (a) Increased local 4300.00throne activities resume like malls institutional support to (c) State General Budget a) Covid-19 declared as a pandemic by re-open leading stocks such as World Health Organization (b) Staggered increase in telecoms and banks (b) a) Overall cautious 4200.00 (b) First cases of covid-19 reported in workforce working from Strategic moves of fund sentiment (b) lack of Oman offices managers (c) oil price positive triggers (c) Infection rates climb in the region pick up 4100.00 (d) The US Fed cuts interest rates twice

4000.00 a) Overall cautious

a) 1Q Earnings sentiment (b) lack of Announcements negative triggers (c) b) S&P rating cut 3900.00 Earnings season for for Oman 3Q20

3800.00

(a) Oil prices fall 3700.00 dramatically with futures trading at sub- zero levels 3600.00 (a) Closure of land and air ports for 1 month 3500.00 (b) Rapid closure of economic activities (a) Fed announcement of commitment to support 3400.00 economy (b) oil price (a) Lockdown recovery on OPEC+ cuts news

3300.00

Jul-20

Jan-20

Jun-20

Oct-20

Feb-20

Apr-20

Sep-20

Dec-20

Aug-20

Nov-20

Mar-20 May-20

The early part of the year 2020 was a tumultuous time, not only for the Muscat Securities Market, but for almost all stock markets of the world. While most stock markets were on fire post-Government announcements of unprecedented economic support packages, the MSM30 Index continued on its sideways pattern, staying roughly between the lowest level seen this year at 3383.54 and the highest level seen at 3780.75 after corona virus-caused sickness “covid-19” was categorized as a pandemic by the World Health Organization (WHO).

It was an especially challenging year for the local stock market. The MSM30 Index closed 2020 down by 8.10% year-on- year (YoY) at 3658.77, while the MSM Total Return Index was down by 1.6% to close the year at 4175.48.

Amongst the sub-indices, the Industrial Index as the only one that closed up YoY by 2.13%. The Services Index closed down by 16.07% and the Financial Index closed down by 11.0%. The MSM Shariah Index ended down by 2.33%.

The Government of Oman’s quick response to the pandemic in its early stages was widely appreciated, as the country moved into a swift lockdown while many countries all over the world were still struggling to come to grasp with the enormity of the situation. The first two cases of corona virus were reported in Oman on the 24th of February, 2020. By that time, the MSM30 Index had already gained about 5.2% on year-to-date (YTD) basis. However, the index started falling from thereon (when the first cases were reported) and reached the year’s lowest point by Early-April.

10 P.O.BOX 1137, PC 111 – CPO, Sultanate of Oman l CR No. 1279406 l Tel: +9682494 9000 l Fax: +9682494 9099 l Email: [email protected] l Web: www.u-capital.net

Factors affecting MSM Performance – Quarterly

1Q20: 2Q20:

 Announcements of the State General Budget, listed  Oman reported 1st death due to corona virus on 1st April 2020. companies’ annual financial results for the previous  Locality shutdowns implemented in Muscat due to covid-19. year, and proposed dividends.  Movement between Governorates restricted  Uncertainties surrounding the early stages of covid-19  Corporate Dividend proposals pandemic  Oil Below Zero; Oil futures’ trade at historic sub-zero levels  Most economic activities were halted due to the  Banks placed on review for downgrade by Moody’s pandemic.  Further downgrades by Fitch and S&P  The Central Bank of Oman announced a support  Muscat lockdown between April 10 and April 22. package for banks and financial services 'consumers  Banks in Oman urged to postpone monthly loan payments worth OMR 8bn (USD 21bn)  The Capital Market Authority (CMA) extended the deadline for  US Fed policy rapid rate cuts. publicly listed companies to disclose their first quarter (Q1)  Oman cut repo rate by 75bps to 0.5% Financial Statements to June 30, 2020  Annual General Meetings of listed companies were  MSM Trading hours increased from two to three hours (with pre- delayed to 2Q20 trading session of 1hour)  IMF cut global growth forecast and its forecast for  Banks and leasing companies announced their exposure to Oman’s real GDP growth. troubled UAE’s NMC Healthcare  Oil price’s rapid decline amid Oil Price War  Oil price war ended; Oman joined OPEC+ in oil output cut  S&P, Fitch Ratings and Moody’s downgraded Oman’s  Oman ordered Government Agencies to cut spending by at least ratings on oil rout compounded by pandemic 10%  Imposition of travel restrictions  1Q20 financial results; Banks post increase in provisions for  Oman cut budget allocated to Government Agencies expected credit losses on pandemic-related fears  MSM reduced trading hours (28-March-2020)  Government announced packages to support the Private Sector  Oman Air ground all flights (29-March-2020)  The World Bank reduced Oman’s GDP growth forecasts  Banks allowed to close branches  Oman State Budget 2020 slashed by OMR 500mn (USD 1.3bn)  Corporate Dividend proposals  Muscat lockdown extended until May 8  Select commercial activities resumed in May  Oman Government ordered additional 5% budget cuts  Oman sold OMR 200mn of bonds due May 19, 2025 at 5.36%  CBO issued results of 64th Government Development Bond  Moody’s cut Oman’s ratings 3Q20: 4Q20:  Companies’ quarterly financial result disclosures  Oman opened dual-tranche bond sale, raises USD 500 million  Oman discloses the Public-Private Partnership  S&P cut Oman’s ratings for the second time this year legislation  Companies’ quarterly financial result disclosures  Company disclosures pertaining to awards of tenders  Covid-19 Vaccine approvals and plans to inoculate the most and other partnerships vulnerable population  Positive macroeconomic updates  His Majesty approved a medium-term fiscal plan to make  Oman announced delay in introduction of VAT to 2021 government finances sustainable  Government Development Bonds (Issue 65)  Oman set up a new state energy company called Energy  Curfew on movement during specified hours for 2 Development Oman (EDO), which will have a shareholding in weeks in August Petroleum Development Oman.  Airports’ re-opening announcements  Further opening of more economic activities  CMA Issues Regulations for Health Insurance Third Party Administrators  Mood’s and Fitch Ratings downgraded Oman banks and Telco sector on sovereign downgrade for the second time this year  Oman secured USD 2bn bridge loan

11 P.O.BOX 1137, PC 111 – CPO, Sultanate of Oman l CR No. 1279406 l Tel: +9682494 9000 l Fax: +9682494 9099 l Email: [email protected] l Web: www.u-capital.net

The year kicked off with the announcement of the State General Budget, resulting in slight support to the index followed by a volatile period. Corporate results, which were better in 2020 than in 2019, also provided respite to the market. During the1Q20, the MSM30 Index witnessed the effects of “The Great Lockdown”, when most economic activities came to a halt as the country and the world prepared itself for the effects of an unknown virus which was spreading like wildfire. The country announced full lockdown at the end of March, with suspension of passenger flights to and from Oman. Even though the market started the year on a positive note, it rapidly declined during March and closed the first quarter (1Q20) down by 13.8%.

The second quarter witnessed the lowest point of the Index for the year in Early-April. However, it began to see slight recovery on positive news like vaccine trials and Government initiatives to control the spread of the virus. Many companies, in a historic first move, held their delayed Annual General Meetings on online platforms during this quarter and moved on with dividend approvals that usually take place in March of each year for most companies. While the world struggled to understand the economic and social repercussions of nation lockdowns, the IMF came forth with its World Economic Outlook in April 2020, which slashed Oman’s GDP growth forecasts, as was true for many other countries given the pandemic situation. Multiple rating agencies downgraded or changed the outlook for Oman and its regional peers. This was further followed by a generally low-turnover season because of fewer working hours during the Holy month of Ramadan. Hence, the quarter saw limited movement in the stock market index, with the index improving 2.4% during the quarter.

In the third quarter, the MSM30 Index gained about 7.2% on the back of revival of trading activity and improvement in investor sentiment which materialize don vaccine trial announcements and re-opening of economic activities. Oman Arab Bank also completed takeover of Alizz Islamic Bank during the 3 quarter. Furthermore, Oman also announced intention to tap international bond markets for a USD 2bn loan. The country published its Public-Private Partnership legislation in order to attract foreign investment.

The fourth quarter saw an increase of about 2% in the index, mostly on lack of negative triggers. Mass inoculation procedures began in Oman in December, which proved slightly positive for the Index as a whole as sentiment improved, in general.

FOREIGN INFLOWS IN MSM

For the sixth year, foreigners continued to exit the market. Eight weeks out of the total in the year witnessed positive flows while the remaining ended in net foreign outflows. The year ended with net foreign outflows of approximately USD 105mn.

Net Foreign Flows (USD mn)

12.00 8.00 4.00 - -4.00 -8.00

-12.00

6 - 10 Dec 6 -

20 - 24 24 Dec 20 -

5-9 2020 Apr

3-7 May 3-7 2020 May

9-13 Feb 9-132020 Feb

29 Dec - 2 2 29 Jan-Dec

8-12 2020 Nov

26-30 Jan 202026-30 Jan 12-16 Jan 202012-16 Jan

11-15 Oct 202011-15 Oct

19-23 Apr 19-23 2020 Apr

13-17 Sep 2020 13-17 Sep 23-272020 Feb 27-292020 Sep

12-16 July 12-16 2020 July 26-30 2020 July

16-20 Aug 202016-20 Aug

22-24 Nov 22-24 2020 Nov

08-12 Mar 2020

17-21 May 17-21 2020 May

14-18 June 2020

25 - 28 28 Oct 2020 25 -

22 - 26 26 Mar 2020 22 -

28 Jun -2 Jul 28 2020 -2Jun

30 Aug - 2020 30 Aug3 Sep 31 May - 4 20204 Jun -31 May

Source: MSM

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IPO & LISTINGS DURING 2020

During the year only one IPO materialized which was Oman's first REIT i.e. Aman REIT. The IPO offered 50% of the OMR 20mn fund of the country’s first REIT, divided into 100 million investment units at a price of 100 Baizas per unit, plus Offer expenses of 2 Baizas per unit. Aman Reit IPO was undersubscribed and ultimately the Company was listed on 15th March 2020.

During the year, Oman Arab Bank (OAB) saw its transformation into a public joint-stock company by listing its shares on the Muscat Securities Market (MSM) on July 6, 2020.The total number of shares listed was 1.67bn, at a listing price equivalent to OMR 0.213 per share, with a total value equivalent to OMR 355.6mn.

GOVERNMENT DEVELOPMENT BONDS

During the year, there were three Government Development Bond listings, i.e. issue 63 to Issue 65 amounting to OMR 550mn, higher than the 3 bonds issued worth OMR 400mn in 2019. More details in the following table: Oman GDB Issues Issue Date Term Coupon Avg. Yield Amount Applied Amount Alloted Subscribed (Years) (%) (%) (OMR mn) (OMR mn) (x) GDB 63 20.02.20 7 5.25% 5.10% 218.05 150.0 1.45 GDB 64 27.05.20 5 5.00% 5.36% 266.92 200.0 1.33 GDB 65 18.08.20 7 5.50% 5.43% 239.02 200.0 1.20 Source: CBO / Reuters NA - Not Available

Oman also issued three Sukuk during the year worth OMR 433.1mn.

Oman Sukuk Issues Issue Date Term Coupon Amount Alloted (Years) (%) (OMR mn) SOVEREIGN SUKUK ISSUE 3 21.09.2020 6 5.25% 200.0 SOVEREIGN SUKUK ISSUE 4 11.11.20 5 5.75% 208.1 SOVEREIGN SUKUK ISSUE 5 24.11.2020 2 4.75% 25.0

CORPORATE BONDS AND SUKUK

The total issuance value of corporate bonds and Sukuk that got listed on the Muscat Securities Market in 2020 stood at OMR 4.2mn, down by about 98.20% compared to total issuance value of bonds and Sukuk in 2019. HADIQAH ALMADINA SUKUK formed the highest share at 72% of the total value.

Issue Listing Market Cap, OMR Instrument Value Date mn OMR mn As of 31 Dec ALOMANIYA FINANCIAL BONDS 2020 1.2 01-Apr-20 0.6 HADIQAH ALMADINA SUKUK 3.0 23-Nov-20 3.0 Total 4.2 3.6 Source: MSM

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KEY DISCLOSURES BY MSM COMPANIES

Listed companies’ disclosures covered various topics like mergers /acquisitions, establishing new companies, compensations, issuing bonds, selling assets as well as other news.  Oman Cables announced regarding the acquisition of entire share capital of the subsidiary company Oman Aluminum Processing Industries LLC (OAPIL), that it has finalized the process on 8th Jan 2020. The subsidiary is now 100% owned by Oman Cables compared to 51% earlier.  Al Hassan Engineering announced that Abu Dhabi judicial department has issued a judgment on 21st January 2020 ordering the liquidation of Al Hassan Engineering Company Abu Dhabi and appointing a liquidator to start the process.  Raysut Cement Company said it is in discussions to acquire a 75% shareholding in a cement terminal in Maldives. ‘Raysut Cement Company wishes to inform that it is in discussions with Cementia AG of Zurich to acquire their 75% shareholding in LH Maldives Ltd, a cement terminal located at Thilafushi Island, Maldives.  National Bank of Oman (NBO) has signed a credit facility agreement with Duqm Material Market to carry out the first phase of a strategic industrial project. The 72,000 sqm development is part of the Sino-Oman project, a first-of- its-kind building material market with workshops and warehouse facilities in Duqm. Jointly established by Oman Wanfang, Al Thabat Holding and Oman Company for the Development of Special Economic Zone at Al Duqm, the project is expected to be completed within 12 months.  Jabreen Capital has approved in its the sale of 17.95% shares of OMINVEST to an under formation Company.  Units of Aman Real Estate Investment Fund — the first Real Estate Investment Fund (REIF / REIT) in the Sultanate — will be listed on the MSM on Sunday, March 15. Subscriptions into the Fund had closed on March 1, 2020 after two sets of extensions to allow for customers to consider investing in the maiden REIT. Subscriptions covered 50% of the 100mn units offered for public subscription at a total value of OMR 10mn. Aman will distribute 90% of the net income to investors holding units in the fund at 7% dividend in two semi-annual payments. Aman offered 25% of the assets of Sandan Industrial Estate at Halban, which is owned by Sandan Development. The company agreed to the lease of the properties for five years.  ASYAD Group announced the integration of Oman Shipping Company (OSC) and Oman Drydock Company (ODC), in alignment with the Group’s strategy to offer integrated and highly efficient services — cementing its competitiveness across global markets and maximizing the returns of Oman’s logistics sector. The integration further connects the Sultanate’s shipping services in a comprehensive marine offering which meets the Group’s aspirations of providing global markets with end-to-end logistics solutions.  Bank Muscat closed a USD 650mn club loan facility, with a consortium of 20 banks from across the globe. The transaction originally launched for the USD 500mn, received commitments of over USD 1.2bn. In view of the oversubscription, Bank Muscat decided to scale the facility up to USD 650mn.  Oman Arab Bank (OAB) has announced that it has been given the green light by the Central Bank of Oman (CBO) to acquire Alizz Islamic Bank SAOG (AIB) and to eventually become a publicly listed entity. The revelation came in a filing by OAB’s majority shareholder, Oman International Development & Investment Co SAOG (OMINVEST), to the Capital Market Authority (CMA).  Bank Muscat announced that it has received in principle interest from SICO Bahrain to acquire a majority shareholding in Muscat Capital with a book value of SAR 80mn (OMR 8.2mn). As consideration for proposed transaction, Bank Muscat would be offered SICO shares held currently as treasury shares.  Bank Muscat completed an unsecured bilateral loan facility of USD 150mn, which has a 5-year tenure, with China Development Bank (CDB), a development finance institution of the People’s Republic of China. The closure of the USD 150mn bilateral loan follows the closure of a Club Loan for USD 650mn recently from a consortium of 20 relationship banks from around the globe.  Ubhar Capital acquired 100% stake in Gulf Baader Capital Market (100% subsidiary of Gulf Investment Services Holding) for an amount of OMR 2.136mn. Acquisition of the Gulf Baader Capital Market will position Ubhar Capital

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as one of the biggest investment company of Oman with combined asset under management of USD 1.3bn and a combined brokerage market share of 37.86% as of May 2020.  Celebrity National Financial Services Company announced that in a resolution passed in the EGM they have decided to dissolve and liquidate the company at a share capital of OMR 2mn, divided into 20mn shares i.e. 100 baiza per share. Last traded market price of the Company was OMR 0.024 per share.  Muscat Gases Company announced the establishment of the new commercial entity named Muscat Power Pioneers which builds a platform and infrastructure with the main purpose of bringing the value chain of the business to the market in terms of all kind of installation of gas and power without any limitation in weekends and official holidays  Alizz Islamic Bank announced the successful completion of the merger process with Oman Arab Bank's (OAB) Islamic banking window. Alizz Islamic Bank said it has successfully completed all the processes related to the integration of Al Yusr Islamic Banking within Alizz Islamic Bank. This includes the integration and transferring of customers, services, employees, assets, and liabilities from the Al Yusr Islamic Banking window to Alizz Islamic Bank's operating system. This merger, which is the first merger in the past eight years in Oman's banking sector, has led to the formation of a larger Islamic banking entity that can effectively compete in the market and meet the various financial services needs of the customers. The merger has received the unanimous support and endorsement from the boards of directors and Sharia'a supervisory bodies of both banks.  Raysut Cement Company S.A.O.G completion of its negotiation and officially Acquired 75% shares of Lafarge Holcim Maldives LTD, a cement terminal located at Thilafushi Island, Maldives, at a purchase value of USD 8mn.  Oman Investment & Finance Company received Central Bank of Oman approval to operate as a payment service provider (PSP). Accordingly, within six months, OIFC will be required to complete all legal requirements related to obtaining the final approval and required license in that regard.  Gulf Investment Services & Oman Investment and Finance Company are discussing potential merger. The transaction is subject to the outcome of the due diligence, approval of both company shareholders and obtaining other regulatory approvals. OIFC principal activities include: Investing in subsidiaries, associates, real estates, equity securities and other investments, Meter Reading, bill printing and bill delivery services, Supply of AMR Smart Meters and Communication Devices, Debt purchase and debt recovery services., Purchase and sale of prepaid and electronic re-charge cards, Sale of electronic re-charge cards for electricity companies etc. While, GIS principal activities include: investments in the financial services and real estate sectors. Gulf Investment Services equity post capital reduction and usage of legal reserve will be OMR 6.66mn while OIFC (Parent) equity stands at OMR 34.8mn as of June 2020.  Bank Muscat updated on SICO’s offer for majority stake in Muscat Capital (Saudi). Muscat Capital has a book value of approx. SAR 80mn (OMR 8.04mn) as at Jun’20-end. SICO will acquire 72.71% stake in Muscat Capital through transfer of all its treasury shares to Bank Muscat. This would result in Bank Muscat owning approx. 9% shareholding in SICO upon completion of the transaction. The transaction is subject to regulatory approvals in Oman, Bahrain and Saudi Arabia. SICO BSC had assets worth BHD 187.9mn as at the end of 9M20, and a share capital of BHD 56.61mn. Carried worth of treasury shares is BHD 5.32mn as at 9M’20-end.  Oman Telecommunication Co. is evaluating a number of offers for its tower network, which the state-owned firm expects could raise more than USD 500 million. Bids from “specialized companies” are undergoing technical, commercial and legal evaluation. The transaction is still at an evaluation stage, and it is not yet possible to ascertain its full financial impact on the company, the nation’s largest phone firm said.  Al Anwar Holding invited shareholders to attend EGM in order to study the proposal to amend the name of the company from Al Anwar Holding SAOG to Al Anwar Investments Company SAOG and to study a proposal to amend the objectives and activities of the company.

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KEY NEWS IN OMAN

1Q20  Oman Towers Company (OTC) and Oman Future Telecommunications Company (Vodafone Oman) has signed the main agreement to use the infrastructure of inactive telecommunication towers. As per the agreement, OTC will provide telecommunication towers for Vodafone Oman’s global mobile networks, in parallel with plans to deploy the mobile network for Oman Future Telecommunications Company. Vodafone Oman is expected to enter the local market during the second half of 2020.  Nine mega ventures currently in various stages of implementation with investments totaling in excess of USD 25bn have been affirmed by the Omani government as imperative to sustaining the Sultanate’s long-term socioeconomic development.  Wholly Omani-owned Oxea, announced its formal integration into OQ, the newly created brand symbolizing the Sultanate’s integrated energy powerhouse Oman Oil and Orpic Group. Oxea operates a global network of plants offering a total production capacity of over 1.3 million tons per annum of OXO intermediates and OXO derivatives. Last month, OQ launched an integration program to form one company from nine core assets.  An agreement was signed for the establishment of a local Omani company that will support the development and commercialization of hydrogen as a zero-emission energy source as well as feedstock for use in various industrial and petrochemical applications. Hydrogen Rise Oman LLC is a partnership of Hydrogen Rise AG, a prominent German firm specializing in hydrogen fuel technologies, and Oman Educational Services LLC. The hydrogen economy will support the growth of an ecosystem encompassing, among other opportunities, storage of hydrogen in deep caverns, pipeline systems, grid injection, and water management. The Sultanate has the potential to export USD 20bn worth of hydrogen annually by the year 2050.  Moody's Investors Service, downgraded the long-term issuer and senior unsecured ratings of the Government of Oman to Ba2 from Ba1 and changed the outlook to stable. The stable outlook reflects Moody's assessment that Oman's credit metrics are resilient to moderately negative fiscal and oil price shocks at the Ba2 rating level. The outlook also takes into account balanced risks around the implementation of the fiscal adjustment program.  Oman’s central bank announced to provide OMR 8bn ($20.8 billion) in extra liquidity to banks as one of several measures aimed at supporting the economy. The central bank has asked banks to cut banking fees, adjust their capital and credit ratios, and allow repayment postponements for up to six months amongst other measures.  The Ministry of Commerce and Industry will begin applying new guidelines for companies responsible for importing building materials, including cement, steel and dyes, as part of the efforts to ensure the quality of buildings constructed in Oman. The guidelines will be enforced from February. The ministry, in the recent past, seized large quantities of imported building and construction materials, including cement, dyes and paints for non-conformity with standard specifications.  Oman will introduce VAT "sometime during the beginning of the year 2021", the country's Minister of Commerce and Industry said. The introduction is "something that people don't like, but this is something that we have been lobbying for", he said in aninterview on the side-lines of the World Economic Forum in Davos last week. All six members of the Gulf Cooperation Council agreed in 2016 to introduce a 5% rate of VAT but so far only three states have done so. Saudi Arabia and the UAE both introduced the tax in January 2018 and Bahrain followed suit last year. Oman, whose economy witnessed slowdown in recent years following the collapse in oil prices in 2014, held off from introducing VAT so far despite calls from the International Monetary Fund to speed up its roll-out. The sultanate has been introducing a series of other reforms, including cuts to fuel and electricity subsidies.

2Q20  Oman’s finance ministry has told all government agencies to cut their operating budgets by at least 10% this year to counter a slide in oil prices, including by reviewing salaries and benefits. The move comes after the government cut the budget allocated to government agencies for 2020 by 5% last month in response to the financial challenges the oil-exporting nation faces. All operational budgets would be reviewed and exceptional bonuses for state employees

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would be halted, according to the finance ministry. It said the decision applied to all ministries, agencies and public entities, as well as security and military bodies.  PDO’s transition to Energy Development Oman was approved. Energy Development Oman centers on a vision to reposition PDO from an essentially fossil fuels-based producer to a “fully fledged energy company”. The strategy envisions PDO’s diversification into, among other areas, solar and alternative energy development, energy management, low-carbon technologies, oil and gas consultancy services, and water management.  Minister Responsible for Financial Affairs pointed out that the total financial effect of government procedures to tackle the situation is expected to stand at more than OMR 1 bn. As far as revenues are concerned, the financial effect is estimated to stand at OMR 300mn. Steps taken include but not limited to are: o 10% reduction of current expenses of civil, military and security units. o 10% reduction of liquidity allocated for the developmental budget. o A minimum of 10% reduction in operational and administrative expenses of government companies. o 50% reduction of subsidy allocated for government companies. o 50% reduction of bonuses and privilege dues of boards of directors of public authorities, public establishments and companies. o A minimum of 50% cut on financial provision for official missions at all civil, military and security units, as well as government companies. o Negotiation with owners of real estate properties leased by the government for a discount in rent by at least 10%. o Suspension of implementation of new capital projects of government departments and firms, in addition to rescheduling of existing obligations.  Oman is considering cutting its oil output in June by another 10,000 to 15,000 barrels per day, the Omani oil minister told Reuters, after Saudi Arabia, Kuwait and UAE also made additional cuts to reduce global glut. Oman earlier announced that it will cut its oil output by 200,000 barrels per day after OPEC producers and allies agreed a record oil deal to slash global output by about 10%.

3Q20  Pursuant to the Royal Directives of His Majesty the Sultan, to foster the sultanate’s sustainable and enhanced economic growth and development march, His Majesty Sultan Haitham Bin Tarik issued his Royal Orders to execute developmental projects to the tune of OMR 300mn.  The government of Oman has signed a one-year USD 2bn bridge loan with a group of international and regional banks, as per Reuters. The loan, which will be repaid with money raised from an international bond issuance, will bolster state coffers hit by low oil prices and the economic downturn caused by the corona virus crisis.  His Majesty Sultan Haitham Bin Tarik issued orders to authorizing a program of interest-free emergency loans to assist some segments of entrepreneurs whose businesses took the brunt of the pandemic, particularly holders of Riyada Card (for small and medium enterprises) and self-employed entrepreneurs, as well as beneficiaries of loans of Oman Development Bank and Al Raffd Fund. This is a great development on the part of HM and government of Oman to provide relief to the SMEs which are the backbone of the economy.  Oman Government’s continued support to organization in view of challenges faced because of low oil prices and COVID-19 announced new tax incentives. The new incentives include the suspension of additional tax resulting from the non-payment of the income tax due to be paid for the year ending December 31, 2019. The previously specified date extends for cases where a fiscal year ends at a later date for a maximum period of nine months from the date of the end of its fiscal year. The authority said that tax due for the year 2019 can be paid in installments while those from the previous years can be rescheduled. The Oman Tax Authority has suspended fines and penalties due to the failure to submit declarations and accounts for 2019 and any additional tax due from the original taxes payable for previous years from January 1 2020 to September 2020.  CMA Oman announced that Omanis above 60 years of age will have their loan repayment periods rescheduled to their benefit, while borrowers aged 70 and above will still be eligible for health insurance, because of the effects of

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the COVID-19 pandemic, the Capital Market Authority has announced. According to the circular, 70% of government employees were expected to retire after completion of 30 years of employment in the public sector.

4Q20  Oman has exempted 5% to some key sectors such as healthcare, education and finance from the value-added tax which will be levied over the next six months. In addition to financial services, provisions of healthcare and education and their related goods and services, other exemptions are undeveloped lands (bare lands); resale of residential properties; local passenger transport; and renting real estate for residential purposes. Import of investment gold, silver and platinum, supplies of international goods and passenger transport and related services; supply of rescue aircrafts, boats and auxiliary ships; supply of crude oil and its oil derivatives and natural gas; import of maritime, air and land transport vehicles for transport of goods for commercial purposes as well as import of related services; and supplies for the disabled and charity organization have been designated as zero rated. Supply of foodstuffs, medicines and medical equipment to be determined by the decision of the President, after coordination with the competent authorities. Some of the basic foodstuff will also be exempted from 5% VAT.  Oman REIT Fund is planning an initial public offering that could raise about USD 100mn, in what could be the biggest-ever listing of a property trust in the Gulf, people with knowledge of the matter said. The REIT, managed by Shumookh Fund Management LLC, plans to seek a valuation of USD 170mn or more, according to the people, who asked not to be identified because the information is private.  The Government of Oman represented by the Ministry of Finance (MoF) has announced the successful completion of Series 4 of the Omani Rial Sukuk issuance program. The sovereign Sukuk was issued for an amount in excess of OMR 200mn as against the issuance target of OMR 175mn following strong demand from local investors and oversubscribed order book of Circa OMR 220mn.  Oman plans to amend labor laws, introduce new taxation and end some "long-standing" subsidies while ensuring that low-income families are protected, Oman’s foreign minister said. HE SayyedBadr Al Busaidi told a Summit in Bahrain that significant changes to labor policy would include abolishing a requirement that expatriate workers need permission to transfer to a new employer, which is known as the no-objection certificate system.  Oman government has announced the formal establishment of a new corporate entity with a mandate to invest in conventional as well as renewable and alternative energy resources within the Sultanate’s borders and beyond. Energy Development Oman SAOC (EDO), set up by Royal Decree 128/2020 published in the Official Gazette, is envisioned as an Omani joint stock company that will, among other things, acquire a shareholding in majority government-owned Petroleum Development Oman (PDO), presently the largest producer of crude oil and natural gas in the Sultanate.  Oman’s Tax Authority has announced the imminent expiry of taxation incentives offered to private sector establishments for taxes due during 2020. The incentives were announced earlier by the Supreme Committee tasked with tackling developments resulting from corona virus (COVID-19) pandemic with a view to handling the economic impacts of the pandemic and the resumption of business activities. In a statement received by Oman News Agency (ONA), the Tax Authority urged all tax payers to submit their declarations and disclosure accounts of the fiscal year ending 31 December 2019 and any other accounting period or fiscal year ending after this date.

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KEY REGULATIONS / ADMINISTRATION DECISIONS DURING 2020 IN OMAN

1Q20  CBO issues directives to banks in Oman to give 12 months’ grace period to terminated Citizens. In a statement issued by the Government Communication (GC), the CBO has asked the financial institutions to give 12 months of grace period to repay the loan from the date of termination and reschedule their facilities when they get another job. This decision comes following complaints on social media platforms by citizens whose work contract was terminated by private sector companies.  Oman's ruler Sultan Haitham bin Tariq al-Said has issued a decree to set up a new tax administration system. No further details were announced about its mechanism. We believe government will sooner reduce some subsidies and implement new set of tariffs to counter with the current operating environment of low oil prices and subsequent low oil revenue.  Minister of Housing, issued two ministerial decisions. As per the decision, the fee for obtaining a three-year valid licence required for practicing real estate development activity has been set at OMR 750, the fee for initiating a real estate development project will be 0.1% of the total project’s value. Investors seeking to display properties for a period of three months inside the Sultanate will be required to pay OMR 500 in fees. The fees for the promotion of international properties will cost OMR 10,000.

2Q20  His Majesty Sultan Haitham Bin Tarik issued a Royal Decree, No 61/2020, on the establishment of Oman Investment Authority. o Article (1) stipulates that a state department to be named “Oman Investment Authority” shall be established and that it shall have a legal identity, enjoy financial and administrative autonomy and report to the Council of Ministers. o Article (2) states that Oman Investment Authority shall have a board of directors to be formed under a Royal order of His Majesty the Sultan. o Article (3) states that a Royal decree shall promulgate the system (law) of Oman Investment Authority. o Article (4) states that all specializations, allocations, rights, obligations, registers, assets and investments related to the State’s General Reserve Fund shall be transferred to Oman Investment Authority, and so shall Oman Investment Fund and the Directorate General of Investments at the Ministry of Finance. Also, all employees of the State’s General Reserve Fund and Oman Investment Fund shall be transferred to Oman Investment Authority, along with their current job status and financial dues. o Article (5) stipulates that the ownership of all government companies and investments shall be transferred from the Ministry of Finance to Oman Investment Authority, with the exception of Petroleum Development Oman Company  Insurers in Oman have been directed to pick up Covid-19 treatment tab by the CMA. Insurance companies have been requested to comply with the following instructions: o Coverage of the costs of the medical tests and treatment of insured infected with COVID-19 up to the annual benefit limits of their respective policies, when they receive treatment in any hospital. o Adoption of price list and the treatment guidelines approved by the ministry of health for the coverage of cost of medical tests and treatment of insured who have COVID-19 when they receive in any hospital. o Insurance companies shall bear the costs of medical tests and treatment of insured who are currently receiving treatment in any hospital, effective from the date of the issuance of the circular. o Insurance companies shall bear the cost of medical services for all insured who show symptoms of COVID-19 when receiving treatment in any hospital.

19 P.O.BOX 1137, PC 111 – CPO, Sultanate of Oman l CR No. 1279406 l Tel: +9682494 9000 l Fax: +9682494 9099 l Email: [email protected] l Web: www.u-capital.net

3Q20  Oman announced regulations for foreign capital investment in the Sultanate. Amongst many, some of the benefits are outlined below: o The council of ministers can approve investment project being set up in less developed governorates of the Sultanate and give it certain benefits like exemptions from the exemption from the rental value or return of the right to use the lands and real estate necessary for the investment project for a period not to exceeding five years and exclude them from Omanization for two years from the date of the actual operation of the project. o These projects can be exempted from all duties or some of them. The council of ministers can give other benefits also to the investment project provided they depend on foreign money remitted from abroad according to the rules made by the Central Bank of Oman. o It is also permissible to exempt investment projects from some of the prescribed customs and non- customs duties and fees, without prejudice to the provisions of the Common Customs Law for the states of the Gulf Cooperation Council. o It is also necessary that the products of the project are not less than 40% Omani if any. The project would export not less than 30% of its production outside the Sultanate. It also must help in the transfer of expertise, modern technology and knowledge to the Sultanate.

 The application of Bankruptcy Law, promulgated under Royal Decree No. 53/2019, took effect. The Bankruptcy Law aims to find a legal framework that enhances business climate through the restructuring of economic activity. This pertains to branches and agencies of foreign firms in the Sultanate. The law sets out a number of procedures, notably the legalization of statutes regulating bankruptcy in a manner that responds to complications facing business persons.  The CMA has issued licensing requirements for third party administrators (TPAs) in order to further strengthen the regulation of the health insurance sector in Oman. Decision 34 /2020 covering the licensing of TPAs will add to the readiness of the infrastructure of the insurance industry in the Omani market, improve quality of services related to health insurance and complete the legislative and regulatory framework of the health insurance scheme for the employees of the private sector, expatriates residing in Oman and the visitors.  With the third telecom operator expected to enter the Oman market in the coming days, the Telecom Regulatory Authority (TRA) has issued a decision that will help regulate the anti-competitive behavior in the sector. TRA issued decision 59/2020 amending some provisions of the earlier decision 70/2013, regarding the rules for post-market regulation (anti-competitive behavior).  Oman’s Ministry of Housing announced regulatory measures as per the decision to complete the transfer of non- Omani ownership of land and real estate in the prohibited areas by November 19, 2020.The regulations as per the ministerial decision 292/2020 are: o Land and Real Estate: The legal transfer of ownership of all land and real estate in the places limited to an Omani citizen no later than Thursday, November 19, 2020, with the possibility of extending the deadline for one year only after the approval of the ministry through the electronic form available on the website. o The legal disposal of ownership of the lands granted to non-Omanis by the state in the exclusion zones within two years from the date of losing the Omani nationality, revoking it or withdrawing it, subject to extension for one year only after the approval of the Minister of Housing – in vacant or occupied properties.  Expatriates can no longer be hired on sub-contracted roles, as the Ministry of Labor aims to prioritize these for Omani job seekers. The ministry will also device new policies to help hire researchers who can contribute their experience to those sectors that require them. During the meeting, plans were also aired to replace existing expatriate workers with local employees, with companies asked to train Omani nationals with the skills required to do their jobs properly.

20 P.O.BOX 1137, PC 111 – CPO, Sultanate of Oman l CR No. 1279406 l Tel: +9682494 9000 l Fax: +9682494 9099 l Email: [email protected] l Web: www.u-capital.net

 Beginning October 1, sweetened drinks will cost more in Oman as the government is all set to introduce a 50 per cent excise tax on these products. The decision issued by the Tax Authority on June 18 last included a list of products include juices, fruit drinks, energy or sport drinks, canned coffee and tea products. “Beverages containing added sugar or sweeteners that are ready-to-drink, concentrates, gels, powders, extracts, or any form that can be converted into sugar sweetened beverage, will be subject to a 50 percent excise tax from October 1, 2020”, says the decision issued by the Authority.

4Q20  Value Added Tax (VAT) will be imposed in the Sultanate within 180 days i.e. in April 2021 from the date of publication of Royal Decree No. 121/2020 in the Official Gazette. The VAT is expected to provide an additional source of support to the State’s general finance. It is also expected to ensure the quality of public services and enhance the realization of the Sultanate’s goals of diminishing dependence on oil and other hydrocarbon sectors as main sources of revenues. There are selected items that are not subject to the standard VAT rate of 5%, including: o Exports (zero-rated) o School fees set out in the regulations (exempt) o Certain healthcare services (zero-rated) o Sale of bare, (e.g. vacant land) (exempt) o Certain financial services, such as a life insurance policy (exempt)  implementation of Royal directives to consider the financial conditions undergone by public and private sector retirees, the Central Bank of Oman has launched the ‘Program of Amending Terms for the Repayment of Loans and Personal Finances Granted to Public and Private Sector Retirees’. The program will be applied to loans and personal and housing finances granted to retired employees according to the following terms: o The maximum loan deduction service must not exceed 30 percent of the monthly pension if it is equal to or less than OMR 1,500. If it is more than OMR 1,500 the maximum ceiling of deduction must be not more than 35 percent. o Licensed banks may extend the period of repayment of loans/finances till the retiree reaches the age of 70 years. o In case the licensed banks would not be able to get a repayment of the due balance of the loan/personal finance before the retiree reaches the age of 70 years, the banks may deduct a down payment (free of early payment fees) of not more than 25 percent of the sum of end of service gratuity if the monthly pension is equal to or less than RO 1,500 or 35 per cent of the sum of end of service gratuity if the monthly pension is more than RO 1,500.  A first-of-its-kind Unemployment Insurance Scheme, due to be launched next month on the Royal Directives of His Majesty Sultan Haitham bin Tarik, will help encourage Omanis to strongly consider risk-free employment in the private sector. The initiative, also known as the Employment Security Scheme, seeks to initially provide a safety net to Omanis being laid off amid the ongoing economic downturn triggered by low international oil prices and aggravated by the coronavirus pandemic. In the second stage of its implementation, the scope of the scheme will be expanded to cover Omani job-seekers in general. Instituted by Royal Decree on August 17, 2020, the Employment Security Scheme was established with an initial grant of OMR 10mn by His Majesty the Sultan. Further contributions will come from public and private sector employees who will be required to pitch in one per cent of their monthly income effective from January 1, 2021.  The Ministry of Housing and Urban Planning announced a major decision, which will boost the real estate sector in the Sultanate. As per the decision, No.357/2020 issued by Minister of Housing and Urban Planning, non-Omanis can purchase units in multi-storied commercial and residential buildings under the usufruct system. “There was a need to introduce a new product or policy to compensate for the decline that the real estate has been witnessing compared to last year,” the under-secretary at the ministry said. In the first phase, the decision is applicable to certain locations in Muscat, namely Bausher, Al Amerat, and Al Seeb. The places which are open for non-Omanis to buy properties are Bausher (1-3), Al Khuwair (2), Ghala Heights (1-2), Wattayah (1-2), and Misfah (2), Amerat, Hashiya (1), Mahajj (Area 1), Madinat al Nahdah (2-5), Seeb (South Mawelah 5), Al Khoud (2) and Mabelah South (7).

21 P.O.BOX 1137, PC 111 – CPO, Sultanate of Oman l CR No. 1279406 l Tel: +9682494 9000 l Fax: +9682494 9099 l Email: [email protected] l Web: www.u-capital.net

 The Ministry of Housing and Urban Planning has started implementing a package of measures to rejuvenate Oman’s real estate market. Accordingly, the real estate transaction fees have been reduced to 3 percent from 5 percent. Other steps to revive the real estate market are licensing of rent-to-own or instalment sales and allowing the addition of floors in buildings provided that an annual fee is paid on them and opening the door to non-Omanis to own residential real estate units in multi-story commercial residential buildings in specific areas.  Ministry of Finance (MOF) Oman has issued a financial circular on regulating financing instruments and means, whereby MOF instructed all Government units and companies to provide Debt Management Office (DMO) at MOF with their proposed annual financing plans by no later than 31 January of every year. MOF emphasized the importance of coordination with DMO before initiating any procedure to select local or foreign lenders for any form of borrowing, and also prior to liaising with the issue managers or financial advisors in relation to the bonds or Sukuk proposed to be issued. MOF stated that it is essential to obtain an approval from DMO for any proposed loan contracts before and after negotiating with the lenders. DMO approval must also be obtained for the details and Terms and Conditions of the bonds or Sukuk prior to the issuance.  The Capital Market Authority (CMA) has issued a new organizational regulation to organize the investment of the insurance companies’ assets and Takaful insurance. The executive director of the Capital Market Authority directed all the companies to work on conciliating its conditions according to the regulation’s requirements during one year. This regulation provided the Takaful insurance companies with the investment in new investment instruments that comply with the legal provisions like deeds and Islamic investment funds according to the specified percentages and terms whether inside or outside the Sultanate. This regulation also provided the companies with the necessity to organize the investments professionally through investments policies and plans annually certified in addition to the existence of committees that follow these policies and plans conditions. This organizational step will contribute to directing the investments toward safety and limit the impact of investment risks.  His Majesty Sultan Haitham bin Tarik gave directives for the establishment of two retirement funds one for the public and private sectors and the other for the military and security units. His Majesty also gave directives for amending the minimum years of service required for early retirement to 30 years of service. His Majesty gave directives to merge the Supreme Committee tasked with handling the developments resulting from the Covid-19 pandemic, and the committee entrusted with addressing the economic impacts of the pandemic.  As part of the initiatives to shore up government revenues, the Sultanate is all set to overhaul the subsidy on public service system in a phased manner during the next five-year period from January 2021 till 2025. Accordingly, the government has approved the removal of subsidies for electricity and water, which will eventually see prices gradually rising for all including citizens, expatriates, and large companies in the industrial sector.

22 P.O.BOX 1137, PC 111 – CPO, Sultanate of Oman l CR No. 1279406 l Tel: +9682494 9000 l Fax: +9682494 9099 l Email: [email protected] l Web: www.u-capital.net

MSM SNAPSHOT Market Summary Indicators

Current Previous YTD No. of Cos MSM 30 3,658.77 3,981.19 -8.10% Up Down MSM Total Return Index 4,175.48 4,243.79 -1.61% 25 63

Volume ('000) 2,307,004 3,896,838 -40.80% Value (OMR'000) 441,019 711,551 -38.02%

Sub-Indices Financial Sector 5,651.08 6,349.26 -11.00% Unchanged

Industry Sector 4,296.09 4,206.35 2.13% 10 Services Sector 1,591.82 1,896.58 -16.07%

MSM Shariah Index 523.60 536.07 -2.33%

MSM 30 Index (LHS) vs. Turnover (RHS)

4400 50.0

45.0 4200 40.0

4000 35.0

30.0 3800

25.0 Millions 3600 20.0

3400 15.0 10.0 3200 5.0

3000 0.0

Jul-20

Jan-20

Jun-20

Oct-20

Apr-20

Sep-20 Feb-20

Dec-20

Aug-20

Nov-20

Mar-20 May-20

Top Equity Gainers Price Chg Top Co. -Value Price Value Nationality Trading - Buy Companies OMR % Companies OMR OMR 'mn Value %

FINANCIAL SERVICES CO. 0.179 225.45% BANKMUSCAT SAOG 0.394 86.5 OMANIS 310,861,921.1 70%

ALOULA CO 0.076 100.00% OMINVEST 0.338 53.6 GCC 51,374,253.2 12%

AL-ANWAR CERAMIC TILES CO 0.258 90.30% OMAN TELECOMMUNICATIONS CO 0.716 23.2 ARABS 4,130,981.5 1%

AL JAZEERA SERVICES 0.234 55.33% OOREDOO 0.392 18.8 OTHERS 74,651,890.8 17%

MUSCAT GASES COMPANY SAOG 0.207 32.69% AL-ANWAR CERAMIC TILES CO 0.258 17.4

Top Equity Losers Price Chg Top Co. -Volume Price Volume Nationality Trading - Sell Companies OMR % Companies OMR '000 Value %

AL-HASSAN ENGINEERING CO 0.007 -72.00% BANKMUSCAT SAOG 0.394 230.2 OMANIS 347,195,622.8 79%

UNITED POWER CO SAOG 0.992 -58.67% OMINVEST 0.338 144.2 GCC 54,472,963.4 12%

GULF INVESTMENTS SERVICES 0.097 -51.09% BANK NIZWA 0.096 122.3 ARABS 5,120,342.3 1%

NATL ALUMINIUM PRODUCTS 0.086 -49.41% AL-ANWAR CERAMIC TILES CO 0.258 109.4 OTHERS 34,230,118.1 8%

UNITED FINANCE CO 0.044 -43.06% AL ANWAR HOLDINGS SAOG 0.061 92.9

BUY - OMR 000 SELL - OMR 000 Nationality Trading - Buy

OTHERS ARABS 16.9% 216,673 0.9% Construction 206,132Material Industry 0.035 B 1,700

Al Omaniya Financial Services 0.100 S 1,000 GCC OMANIS Sohar International 104,742 0.110 B 275 130,498 11.6% 70.5% Oman Investment and Finance SAOG 0.091 B 189 59,582 Source: Mubasher Excluding special deals, Source: Mubasher45,293 45,469 BUY - OMR mn 18,567SELL - OMR mn Nationality Trading - Sell 176 0 6,086 OTHERS 9,041 15,700 15,083 ARABS 7.8% 5,116 3,925 1.2% OMANIS OMANIS GCC ARABS FOREIGNERS OMANIS GCC ARABS FOREIGNERS GCC 12.4% 78.7% Individuals Institutions

Source: MSM, Bloomberg

23 P.O.BOX 1137, PC 111 – CPO, Sultanate of Oman l CR No. 1279406 l Tel: +9682494 9000 l Fax: +9682494 9099 l Email: [email protected] l Web: www.u-capital.net

GCC & INTERNATIONAL MARKET SNAPSHOT GCC Market Indices Current Close Previous Close Change YTD P/E TTM P/B

Index Index % X X

Muscat Securities Market 3,658.77 3,646.09 12.68 -8.10% 11.0 0.7

Saudi Stock Exchange 8,689.53 8,722.12 -32.59 4.06% 34.8 2.1

Kuwait Stock Exchange 5,546.04 5,412.16 133.88 -11.72% 35.4 1.4

Qatar Exchange 10,435.96 10,395.30 40.66 0.10% 17.8 1.5

Bahrain Bourse 1,489.78 1,482.05 7.73 -7.48% 14.5 1.0

Dubai Financial Market 2,491.97 2,419.60 72.37 -9.87% 11.6 0.9

Abu Dhabi Securities Exchange 5,045.32 4,964.94 80.38 -0.60% 20.6 1.4

Country Current Close Previous Close YTD Commodity Prices Price YTD

Europe Index Index % USD %

UK FTSE 100 6,460.52 6,384.73 -14.34% Brent Crude (per bbl) 51.80 -14.00%

Germany DAX 13,718.78 13,291.16 3.55% WTI Crude (per bbl) 48.52 -20.54%

France CAC 40 5,551.41 5,581.64 -7.14% Oman Crude Oil 51.45 -23.69%

United States Gold100 OZ (per oz) 1,898.67 0.23%

USA DJIA 30,606.48 29,823.92 7.25% Silver (per oz) 26.40 -1.00%

USA S&P 500 3,756.07 3,662.45 16.26% Platinum (per oz) 1,072.02 0.00%

USA NASDAQ 12,888.28 12,355.11 43.64% Copper, MT 7,766.00 25.79%

Asia Pacific Aluminium, MT 1,979.50 9.36%

Japan NIKKEI 225 27,444.17 26,433.62 16.01% Lead, MT 1,994.00 3.48%

HongKong HANG SENG 27,231.13 26,567.68 -3.40% Zinc, MT 2,751.00 21.08%

Arab Market Indices Nickel, MT 16,613.00 18.45%

Egypt The Egyptian Exchange 10,845.26 11,040.78 -22.32%

Jordan Amman Stock Exchange 1,657.22 1,572.67 -8.70% Cross Rate for Major Currencies

Palestine Palestine Sec. Exchange 471.26 467.98 -10.40% Currency Code USD/1 Unit Units/1 USD

Lebanon Blom Stock Index 763.81 600.48 -16.25% Euro EUR 1.222 0.819

MSCI British Pound GBP 1.367 0.731

Bahrain 93.18 98.47 -5.37% -15.33% Japanese Yen JPY 0.010 103.199

Kuwait 643.87 649.19 -0.82% -13.29% Chinese Renminbi CNH 0.154 6.502

MSCI Oman 496.31 487.55 1.80% -1.44% Indian Rupee INR 0.014 73.094

Qatar 785.15 791.94 -0.86% -6.66% Pakistani Rupee RUB 0.623 1.606

UAE 314.11 312.85 0.40% -6.71% Canadian Dollar CAD 0.786 1.273

GCC Countries 462.43 465.43 -0.64% -8.88% Australian Dollar AUD 0.769 1.300

GCC Market Performance Tracker -1Yr 110 105 100 95 90 85 80 75 70 65 60 Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20

Oman Saudi Arabia Kuwait Qatar Bahrain Dubai Abu Dhabi

24 P.O.BOX 1137, PC 111 – CPO, Sultanate of Oman l CR No. 1279406 l Tel: +9682494 9000 l Fax: +9682494 9099 l Email: [email protected] l Web: www.u-capital.net

RESEARCH TEAM

Hettish Karmani Head of Research [email protected] Ayisha Zia Research Analyst [email protected] Hafeedh Ghazali Research Analyst [email protected]

Ubhar Capital SAOC

Ominvest Business Centre Building no. 95 Way no. 501 Airport Heights Tel: +968 2494 9000 Fax: +968 2494 9099 Email: [email protected] Website: www.u-capital.net

Disclaimer: This report has been prepared by Ubhar Capital (U Capital) Research, and is provided for information purposes only. Under no circumstances is it to be used or considered as an offer to sell or solicitation of any offer to buy. While all reasonable care has been taken to ensure that the information contained therein is not untrue or misleading at the time of publication, we make no representation as to its accuracy or completeness and it should not be relied upon as such. The company accepts no responsibility whatsoever for any direct or indirect consequential loss arising from any use of this report or its contents. All opinions and estimates included in this document constitute U Capital Research team’s judgment as at the date of production of this report, and are subject to change without notice. This report may not be reproduced, distributed or published by any recipient for any other purpose.

25 P.O.BOX 1137, PC 111 – CPO, Sultanate of Oman l CR No. 1279406 l Tel: +9682494 9000 l Fax: +9682494 9099 l Email: [email protected] l Web: www.u-capital.net