Benefits of Making Business in Oman | Buy & Sell Business

1. BENEFITS OF MAKING BUSINESS IN OMAN WWW.MERGERSCORP.COM

2. At MergersCorp M&A International we help our clients confidentially buy and sell privately held businesses, aligning the interests of all parties for mutual success and satisfaction. It is our goal to make the process of either buying a new business or selling your current business as smooth and efficient as possible. We know how important confidentiality is to our sellers and we treat it with the utmost importance. WWW.MERGERSCORP.COM

3. BENEFITS OF MAKING BUSINESS IN OMAN WWW.MERGERSCORP.COM

4. Country Overview Oman, country occupying the southeastern coast of the Arabian Peninsula at the confluence of the Persian Gulf and Arabian Sea. Much of the country’s interior falls within the sandy, treeless, and largely waterless region of the Arabian Peninsula known as the Rubʿ al-Khali. The region is still the domain of Bedouin nomads, although today it is also crisscrossed by oil and gas pipelines. In contrast to the stark interior, the coastal regions are much more hospitable. Oman’s lush northern coast lies between the sea and inland mountains. This verdant, fertile region is known for its grapes and other produce, as is the Dhofar region in the country’s south. The capital, Muscat, lies along the northern coast. Blending modern and traditional architecture, the city commands a view of the Gulf of Oman and serves as a port and commercial centre. Oman is a rural, agricultural country, and fishing and overseas trading are important to the coastal populations. Oil in commercial quantities was discovered in Oman in 1964 and was first exported in 1967.

5. Executive Summary Muscat is the capital and largest city of Oman. It is the seat of the Governorate of Muscat. Oman is the oldest independent state in the Arab world. By the 18th century, the Omani Empire stretched from present day Oman down the east coast of Africa. Muscat is located in the north of mainland Oman at the coast of the Gulf of Oman. The city is the seat of the Omani government. Destination Oman, a sultanate in the Middle East on the southeastern edge of the Arabian Peninsula, bordering the Arabian Sea, the Gulf of Oman, and the Persian Gulf. It is bordered by Saudi Arabia, the United Arab Emirates and Yemen, and it shares maritime borders with Iran and Pakistan. 71% of the population of Oman live in an urban area and there are many cities that these numbers are spread between. The largest city and capital is Muscat, with a population of around 800,000. Muscat is located along the country's coastline and serves as the main trading center.

6. Introduction – Doing business in Oman A well-built infrastructure, commercial connectivity, high security, property rights, and international networking steps taken forward by the Ministry of Foreign Affairs and Commerce of Oman provide a favourable climate for entrepreneurs to grab the investment opportunities, convert business ideas. Oman is an Arab country that is located in the Southwestern part of the Asian continent. Muscat is the capital and largest city of Oman. Oman shares borders with 5 countries and the countries are Saudi Arabia, United Arab Emirates, Yemen, Iran and Pakistan. Omani Arabic is the official language of Oman. Oman is classified as a high income economy despite the fact that it is not a top oil producing nation like its oil rich neighbors. The standard of living in Oman is high compared to other countries in the region where it belongs. Grain Farming, Vegetable Farming, Travels and Tours Business, Filling Station (petroleum, diesel, cooking gas and kerosene) with Convenience Store, Haulage Business, Perfume Shop, Electronics and Home Appliances Store, Facility Maintenance Company and so on business doing in Oman.

7. Conducting business in Oman To start a company in Oman, one may choose from the following legal entity types: 1. Limited Liability Company 2. Public Joint Stock Company 3. Private Joint Stock Company 4. Limited Partnership 5. Commercial Agency 6. Branch Office 7. Representative Office

8. Taxation in Oman Taxation in Oman is levied, broadly on taxable income at 15 percent, on businesses and companies. Companies engaged in petroleum operations are subject to tax at 55 percent. Withholding tax is levied at the rate of 10 percent on specified payments to the foreign persons including individuals. Although there are no individual income or capital gains taxes in Oman, citizens in the oil-rich country must contribute towards social security benefits. The income tax rate is 15% for all taxpayers other than Omani proprietorships and limited liability companies that fulfil the conditions of small and medium enterprises. The decision by the Supreme GCC Council to implement VAT in the six GCC countries was taken in 2016.

9. Trade Trade Crude oil, refined petroleum, and natural gas account for most exports, while imports consist mainly of machinery and transport equipment, basic manufactured goods, and foodstuffs. In 2000 Oman became a member of the World Trade Organization. Its top imports are Cars ($2.21B), Planes, Helicopters, and/or Spacecraft ($1.47B), Refined Petroleum ($1.42B), Gold ($768M) and Gas Turbines ($691M). The top export destinations of Oman are China ($12.1B), India ($2.87B), the United Arab Emirates ($2.25B), South Korea ($2.13B) and Japan ($1.71B). Expats will find the cost of living in Oman more reasonable than that of many of the neighbouring Gulf Cooperation Council (GCC) countries, and income is generally tax-free. Prices are highest in Muscat, but although costs can be lower outside of the city, choice is also more limited.

10. Banking in Oman Along with the Central Bank of Oman, trustworthy local banks include Bank Dhofar, Bank Muscat, National Bank of Oman and Oman Arab Bank. There are also a host of foreign banks with branches in Oman. National Bank of Oman was founded in 1972. National Bank of Oman is the 1st local bank of the Sultanate. Its headquarter is situated at Oman, Muscat. The bank operates through several business segments: Wholesale Banking, Commercial Banking, Retail Banking, and Funding Centre. It has handled around US$348.84 million of the total assets. National Bank of Oman had generated net interest income around US$234.78 million in the year 2017.

11. Our M&A Process NEGOTIATION & CLOSE POST MERGER INTEGRATION (PMI) INTEGRATION (PMI) POST MERGER TARGET APPRAISAL APPROACH DUE DILIGENCE Key Areas  Target & market analysis;  Initial assessment of synergies & value drivers;  Indicative valuation;  Go or No-Go decision;  Preparation of transaction documents (NDA – Non- disclosure Agreement/LOI- Letter of Intent);  Select Transaction team;  Appoint advisors;  Consider funding ability.  Initial approach letter;  Signing of NDA;  Prepare & share initial information requests;  Formulation of LOI (Letter of Intent) & possible negotiations;  Initial meeting and Q&A;  Circulate information on the Target to the Transaction team.  Set scope of due diligence;  Set up VDR (virtual data room);  Coordinating of due diligence, further meetings and Q&A sessions;  Consider points relevant to the Post-Merger (PMI) phase;  Revisit indicative valuation & prepare detailed valuation based on due diligence findings;  SPA negotiations with the seller;  Development of final structure (share/asset deal) and final valuation;  Approvals;  Signing of SPA & Close.  Consider the extent of integration;  Development of 100 Day PMI Plan;  Consider short & long term objectives;  Estimate requirements to capture synergies;  Determine resource needs & optimal allocation. Parties Involved  CFO;  Head of M&A;  Accountants;  Corporate finance advisors;  Consultants.  Senior management;  CEO, CFO, CTO;  Strategy director;  Head of M&A;  Head of Business Development;  Consultants.  Company general counsel;  Lawyers;  Senior management.  Company general counsel;  Lawyers;  Senior management/HR. 11 © Midaxo 2018 www.midaxo.com

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13. MergersCorp.com The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. Member firms of the MergersCorp network of independent firms are affiliated with MergersCorp International. MergersCorp International provides no client services. No member firm has any authority to obligate or bind MergersCorp International or any other member firm vis-à-vis third parties, nor does MergersCorp International have any such authority to obligate or bind any member firm. Copyright © 2020 MergersCorp International. All rights reserved. 13 © Midaxo 2018 www.midaxo.com