Tradition of Smart Planning to Boost Economic Diversification

#Oman Our World Tuesday, November 18, 2014 OMAN Tradition of smart planning to boost economic diversification

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While the hydrocarbon industry remains as a strong backbone to the Omani economy, the sultanate is promoting other sectors and industries as well as bolstering the education system to prepare young Omanis for a future characterized by a larger private sector and more diversified economic base

here’s a revolution long-term plan to move away and other sectors to break the According to Mr. Hvidt, more under way in the from oil. economic dependence on oil. than half of total spending Middle East, and it’s Economic diversification On the tourism front, the in the current five-year plan, not characterized by away from oil has been at the government is touting Oman’s which runs until 2015, is ear- mass demonstrations, upheav- heart of Oman’s series of five- diverse geography and un- marked for the construction alT and government overthrows. year plans since they were start- expected beauty. The third- and modernization of airports, It’s in the Sultanate of Oman, ed in the 1970s. Under the first largest country on the Arabian roads and other transportation and has been going on quietly plan, the government invest- Peninsula offers unusual land- means. Another 26% is allocat- for decades. Under the lead- ed heavily in projects to devel- scapes for the Middle East, with ed to developing seaports, wa- ership of His Majesty Sultan op industry, mining, farming fjords and sometimes snow- ter supply systems and housing. Qaboos bin Said al Said, the and fishing. Oman is now in its capped mountains punctuat- International consortia, main- Gulf nation is steadily reinvent- eighth five-year plan, which is ing desert vistas. Overlooking ly from Europe and Asia, have ing itself and, slowly but sure- part of a broader strategy called the Persian Gulf, Gulf of qualified to bid on a project to ly, moving its economy away Vision 2020 to build a more Oman and the Arabian Sea, build a 1,400-mile-long high- from dependence on oil to one diverse, sustainable economy Oman also offers unspoilt speed rail network, the first that generates income and jobs that creates jobs for Omanis. beaches, and its capital, Muscat, phase of which is expected to in fields ranging from tourism The plan aims, by the year combines cosmopolitan charm be operational in 2018. and industry to mining, farm- 2020, to boost private sector with Middle Eastern traditions. Oman has already seen some ing, and more. activity and educate Oman’s Attracting foreign inves- success in cutting its depen- Unlike most of its neighbors workforce so that they have the tors is key to Oman’s diver- dence on petroleum. – the exception is Saudi Arabia skills to fill the jobs that are cre- sification drive, and in that Oil’s share of total export – Oman has a long tradition of ated. Education levels and skill light, the sultanate has been revenues have dropped from economic planning. H.M. Sultan sets in Oman are low at pres- easing the rules on foreign 90% to about 65% since 1990, Qaboos and his government ent, and many jobs are filled by property ownership and for- French bank BNP Paribas re- launched the first five-year plan foreign labor. “I am working for Oman – eign-owned businesses. Since ported last year. That compares for development in 1976. But under Vision 2020 and the country and its people… 2006, foreigners have been al- favorably to four other member That plan was driven by the the plan that will succeed it for me it is a delight to see my lowed to buy freehold prop- states of the Gulf Cooperation knowledge that Oman’s oil re- – Vision 2040 – Oman is re- country and my people in the erty in certain parts of Oman, Council – Bahrain, Saudi serves are neither infinite nor vamping its education system and the laws of the investor’s Arabia, Qatar and Kuwait – the biggest in the region. In to focus on science, technol- situation I imagined from the country of origin dictates who where there have been no ma- fact, Oman is a minnow in oil ogy, engineering and mathe- very first day I assumed power. inherits that property. jor changes in 20 years in oil terms. It sits on proven reserves matics. The aim is to prepare I feel that I am a man with a Furthermore, property own- export revenues. of an estimated 5.5 billion bar- Oman’s large youth popula- ers and their immediate family BNP Paribas also praised rels, or around 0.4% of global tion to take on the jobs that mission rather than a man are given residency in Oman. Oman for the “spectacular” oil reserves, and experts have H.M. Sultan Qaboos’ vision- with authority” Oman also allows some busi- leap in contributions from the predicted Oman’s wells will ary plans will create, and to nesses to be 100% foreign- non-oil sector to GDP since run dry in less than 20 years. give employers the skilled lo- H.M. SULTAN QABOOS BIN SAID AL SAID owned, if the investment is 1990. In Gulf countries as a The sultanate reached peak cal workforce they need. deemed to be in the interest whole, the non-oil sector’s oil production of around In a report for the London term aim of a productive and reserves, that’s well within of the country. Most business- share of GDP grew from 54% 960,000 barrels per day (bpd) School of Economics, Martin diversified economy.” the realm of possibility. es can only be 70% foreign- in 1990 to 72% in 2010, while in 2001, before falling to a low Hvidt, an associate profes- Among its goals are re- H.M. Sultan Qaboos’ gov- owned, however. in Oman, it rose by 10 percent- of 710,000 bpd in 2007. By har- sor at the University of ducing the oil sector’s con- ernment is also seeking to Developing the sultan- age points more – from 43% to nessing enhanced oil recovery Southern Denmark’s Center tribution to GDP to 9% by boost tourism, education, in- ate’s infrastructure is another 71% – in the same period. A techniques and because of new for Contemporary Middle 2020 from its current share formation technology, mining key element in Vision 2020. spectacular rise, indeed. discoveries, Oman has bumped East Studies, summarized of 40%. The plan also aims production back up to nearly Vision 2020 as aiming to to increase natural gas’ con- A UNITED WORLD SUPPLEMENT PRODUCED BY: 960,000 bpd, where the govern- bring “diversification, indus- tribution to GDP from 1.5% Pablo Delcassó, Karla Arteaga, Lucas Nuttall ment is hoping to sustain it for trialization, privatization and ‘in 1995 to 10% when Vision and Andrew Machaj. Special thanks to National the next five years. increased integration into the 2020 reaches its final year. Ferries Company and to Dr. Raman and Dr. Arul Yet that does not mean global economy” to Oman, With an estimated 34.6 tril- Shanmugam from Al Hayat International Hospital it is backing away from its “in order to achieve the long- lion cubic feet of proven gas

Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content 2 Distributed by USA TODAY OMAN Bilateral trade on the rise, as is variety of Omani exports A free trade agreement between the two nations has boosted two-way trade. Ithraa, Oman’s investment promotion agency, supports the government’s economic diversification efforts by “I am grateful endorsing the country’s for all the non-oil exports U.S. has given to Oman, .S.-Omani relations particularly are nearly as old as in... transfer of the Constitution. technology to Ties were forged the young people between the two countries un- in Oman“ Uder the presidency of George Washington when, in 1790, a Dr. Yusuf bin alawi bin brig ship called the Rambler, abdullah, captained by Robert Folger and Minister of Foreign Affairs sailing out of Boston, dropped anchor in the port of Muscat. Five years later, another brig, the Cadet, which sailed out of Salem with Charles Derby at the helm, reached Muscat. Der- by sailed back to Massachusetts with a cargo of coffee, mark- ing the beginning of a thriving trade between the merchants of Salem and Muscat. Since those early days, the two countries have signed several treaties, and established formal diplomatic relations in 1972. In 1980, Muscat and Washington U.S Secretary of State John Kerry speaks to staff of U.S. Embassy Muscat, Oman on May 22, 2013 (State Department Photo/Public Domain) inked a military cooperation agreement, which was renewed Omani exports to the with Omani companies and portation network,” the State age is quite interesting,” he says. and revised in 2010. And since U.s. have increased tap their local expertise. Department says. Efforts to diversify the econ- 2009, they have had a free trade by 60% and U.S. The State Department Minister of Foreign Af- omy, and move it away from agreement (FTA). exports to Oman are describes Oman in glowing fairs Dr. Yusuf Bin Alawi Bin oil-only, have also helped to “President According to the U.S. Em- up by more than 26% terms: the country with a mod- Abdullah underscores the sul- open Oman to outside invest- Obama and bassy in Muscat, Omani ex- ern business law framework; tanate’s successful efforts, as ment. Middle East research the United ports to the United States have since the FTA went respect for free markets, con- well, saying: “I think we have company Info-Prod Ltd. says into effect in 2009 States are very increased by 60% and U.S. ex- tracts, and property rights; low been able to create a feeling Oman is “actively seeking pri- grateful for the ports to Oman are up by more taxes and an easily navigable among world institutions that vate foreign investors, putting role that Oman than 26% since the FTA was business registration process. the environment in Oman is specific emphasis in the in- signed. Trade between the two iron and steel products going in Oman also offers expatriates suitable to invest in because dustrial field. Those investors plays in the countries consist chiefly of ma- the other direction. “an excellent quality of life: is a of stability and confidence of who allow technology transfer region as an chinery, vehicles, aircraft, agri- Among the perks given to safe, modern, friendly, and sce- these financial institutions, and provide employment and important force cultural products, and optical American investors by the nic country, with outstanding companies, banks, that the sta- training for Omanis are par- for peace and and medical instruments that FTA is the right to wholly international schools, widely- bility is sustainable stability.” ticularly welcome.” stability“ are imported to Oman from own companies in Oman, available consumer goods, Oman is actively wooing for- Ithraa is actively involved in the United States, and crude oil, although many foreign com- modern infrastructure, and a eign investors through Ithraa, helping Oman to move away john kerry, jewelry, plastics, fertilizers, and panies still choose to partner convenient and growing trans- the government’s investment from oil and branch out into U.S. Secretary of State promotion agency, which be- other sectors. The agency de- gan life in 1997, when it was fines what it calls “thrust prod- known as the Omani Center for ucts” to promote, based on Investment Promotion & Ex- predicted volume of sales and port Development (OCIPED). exports. “We started with about Ithraa’s main mission is to 14 products and now we have smooth the way for investors over 40,” H.H. Al Said says. “We in Oman and grow exports spend a lot of time to see what of Omani goods and services. exporters are doing and try to The agency works closely with assist them to venture into new other government entities to markets with extensive market ensure Oman is competitive research and surveys.” and is seen as “the best place to Ithraa’s export development conduct business” in the Gulf department identifies “key neighborhood and beyond. exhibitions and conferences Ithraa – the Arabic word for where we take our exporters, “enrichment” – has represen- for example food products, tatives around the world who food-processing, marble etc,” help businesses get a foothold H.H. Al Said continues. in Oman and to stay there and At those conferences, Omani enjoy commercial success. producers are not only intro- The country itself makes duced to potential clients, but “we look Ithraa’s job an easy one, says the country’s logistics, agri- forward to His Highness Sayyid Faisal culture, food, infrastructure, having a Bin Turki Al Said, the Direc- transport, nascent IT and phar- meaningful FDI tor General of Media and maceutical sectors are also pre- law that will Marketing at Ithraa. sented to the business world. place Oman on “We have most of the ingre- For foreign businesses look- the map in the dients in place,” he explains. ing to set up shop in Oman, region“ “Oman has been working ag- Ithraa provides an extensive, gressively on the legal frame- free and confidential package h.h. sayyid faisal bin turki al work and, from a judicial point of assistance to help identify said, Director General of Media of view, protecting investments the full range of hard and soft and Marketing at Ithraa and whatever rights the inves- benefits of choosing Oman as a tors have. The incentive pack- business location.

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“The backbone of our healthcare system is primary healthcare. Primary Muscat Pharmacy is one of Oman’s oldest pharmacies, and today boasts 66 retail outlets throughout the country healthcare is affordable, accessible, and provides universal Healthcare embraces private sector coverage“ Life expectancy is way up and infant and child mortality rates are down. Now the Ministry of Health looks to private players to further improve Dr. Ahmed Mohammed Al-Saidi, quality and standard of care in the healthcare sector, thereby opening up new investment opportunities Minister of Health

ver the last 44 years, for Omanis was only 49 years pectancy for Omanis jumped and affordable way. The back- care system from a public one healthcare in the for men and 50 for women.” to 74 years. Over that same pe- bone of our healthcare system to a mixed public and private Sultanate of Oman Since then, Dr. Al-Saidi says riod, infant mortality dropped is primary healthcare,” which sector system. This will create has exploded from that almost every health out- from 118 deaths per 1,000 ba- Dr. Al-Saidi says is “afford- a multitude of new investment a dozen hospital beds to dozens come has improved. bies, to only 10.5. Child mor- able, accessible, and provides opportunities as the healthcare ofO hospitals. And the progress Bakul Mehta, CEO of Mus- tality plummeted from 181 universal coverage.” At this sector diversifies. Dr. Al-Saidi shows no signs of slowing. cat Pharmacy and Stores – the deaths per 1,000 children be- point the objective is to have says that welcoming private Dr. Ahmed Mohammed biggest supplier of medicines low age of five, to just 9.5. This a healthcare center for every healthcare companies with Al-Saidi, Oman’s Minister of and health equipment for is largely due to more than 10,000 people, even in sparsely high standards will only im- Health, says, “In 1970 we had hospitals in the country, estab- 7,000 doctors and 15,000 nurs- populated rural areas. “I have prove the sector in Oman. 12 hospital beds in the whole lished in 1968 – agrees, saying, es practicing in Oman. Today, health centers serving popu- “What I’m looking for,” he country, a few expatriate mis- “The government has made a an impressive 97% of Omanis lations of less than 700 indi- says, is for the private sector “to sionary doctors, and not more tremendous progress in health- have access to healthcare. viduals,” explains the minister, compete with us. I want them than 30 nurses for the whole care infrastructure.” Dr. Al-Saidi credits these pointing out that proximity to to be strong,” he continues, country. The health services The results of this progress successes to his predecessors a city should not determine with a “quality and standard of were very, very primitive. In have been dramatic. In less in the Ministry of Health, who someone’s access to quality care that is, if not better, then the 1970s the life expectancy than three decades, the life ex- “started healthcare the right healthcare. at least matching what we are Mr. Mehta notes that in providing free of charge.” Oman today, “everywhere in Mr. Mehta agrees that pri- the country where healthcare is vate foreign investment can “through our required, there are health cen- be of great benefit to Oman. In three logistic ters, polyclinics or hospitals.” fact, he credits the sultanate’s centers we supply Investing in minds and ideas There are plans for a new handling of foreign invest- not only our medical city in Muscat as a ment with much of Oman’s own pharmacies, response to the area’s growing sustained GDP growth over but within that to promote an inclusive population. “The expansion is the last 20 years. “The real area we also huge,” Dr. Al-Saidi says about recipe for success in Oman,” supply to other the new facilities. The 1,235- he says, “is that the country customers, knowledge-based vision acre medical city will be about has very transparent sys- clinics, hospitals 30 miles from Muscat Inter- tem as far as the investment and pharmacies “ Oman targets innovation and R&D to enhance national capability and competitiveness national Airport. And while is concerned from abroad.” in a transformative vision centered on its human resources healthcare will still be free of Oman aims to continue this bakul mehta, Managing Director charge for Omanis in Oman, tradition as new opportuni- of Muscat Pharmacy Oman is a small country with links to academia, business ten produces a cascade of re- the new facility will shift the ties for foreign investment a great vision, a country with and industry. lated research. For example, structure of the Omani health- open up in the medical field. relatively few natural resourc- His Highness Dr. Fahad enhanced oil recovery (EOR) es but which has progressed Al Julanda Al Said, Assistant techniques, important to through investing in the de- Secretary General for Innova- Oman and with tremendous velopment of its people. For tion Development, calls IPM commercial potential world- Dr. Hilal Ali Zaher Al Hinai, “a cornerstone in Oman’s in- wide, require a great deal of Secretary General of The Re- novation ecosystem” that will treated water which leads on search Council (TRC), “hu- “serve the innovation support to research into seawater de- man resources constitute the programs that are being de- salination, also a market with capital of Oman” and he sees veloped to provide the frame- very great potential. Steam in- the work of TRC as key in the jection is used in EOR and so next step, one of investing in research into using solar ener- innovation and research and “we are creating gy to power that process may development so as to allow the ecosystem also be commercially fruit- the potential of the country’s to support and ful. Investment is thus being human genius to flourish and produce ideas cleverly targeted to achieve a through that to foster national and products for maximum multiplier effect. economic prosperity. commercialization Dr. Al Hinai emphasizes Dr. Al Hinai sees two main within a future the partnership philosophy building blocks in this pro- knowledge-based underlying IPM’s concept, cess, the first being “research, saying, “If you work with part- the generation of knowledge”, economy” ners to capture the value from and the second being “in- the knowledge and provide a novation, the capturing of Dr. Abdulbaqi, platform for those technolo- value from that knowledge”, Director of Science and gies, then it is always a win- focusing investment on areas Technology Parks at win situation.” where Oman has either par- The Research Council Dr. Abdulbaqi, Director ticular needs or strengths that of Science and Technology can be built on. work and a sense of innova- Parks within TRC, confirms A key next stage is the tion culture in the sultanate.” this, saying, “we are creating development of Innovation IPM will be a place “where the ecosystem to support and Park Muscat (IPM) to pro- researchers can develop new produce ideas and products vide a catalyzing, dynamic ideas while investors seek out for commercialization within and productive environment opportunities to collaborate a future knowledge-based for researchers and innova- within this community.” economy” – a key part of tors, combined with strong Focus on specific areas of- Oman’s Vision 2020.

Dr. Abdulbaqi, Director of Science and Dr. Hilal Ali Zaher Al Hinai, H.H. Dr. Fahad Al Julanda Al Said, Technology Parks at TRC Secretary General of TRC Assistant Secretary General for Innovation Development at TRC

Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content 4 Distributed by USA TODAY OMAN Investment laws and infrastructure to attract FDI Low income tax, free exemptions and availability of “Oman has zones, 100% foreign gas,” Dr. Al Sunaidy says. “This a very good ownership of businesses is the package of incentives and of course an excellent legal system for we have offered and they find commercial law. geographic location it quite attractive.” make Oman a top It is clear and investment destination effective“ Low taxes Dr. Al Sunaidy notes that Prem Maker, ttracting foreign in- Oman’s low income tax rate Executive Director of AVOD vestors is one of the is also a draw for foreign in- linchpins of Oman’s vestors. “It still stands at a Vision 2020 devel- very low 12%, which makes opment plan. The government it attractive for people to Aof His Majesty Sultan Qaboos produce goods and services bin Said al Said has long rec- within Oman,” he says. ognized this and has taken Oman also offers tax numerous steps towards mak- breaks on machinery and ing Oman a prime destination raw material needed for for outsiders. manufacturing, he adds. In the World Bank’s Ease Special economic of Doing Business rankings, ‘free zones’ Oman ranked ninth for pay- Special economic zones, ing taxes. The United States called free zones, were es- ranked 64th. “if you look at tablished by Royal Decree businesses in in 2002. Their raison d’être Developing SMEs Oman, the most is mainly to attract foreign The government of H.M. successful ones investment by creating busi- Sultan Qaboos believes that have diversified“ ness-friendly areas in Oman. getting Omanis to start their Currently, Oman has four own businesses will also help Hamed Al Harrassy, free zones: Salalah, Sohar, Al to reshape the economy and Founder and Chairman Mazunah and Al Duqm. Each bring in more outside invest- of Teejan Group provides companies that set ment. It encourages Oma- up businesses in their bound- nis to team up with foreign aries with certain rights and investors when they set up incentives, and in return, the their new ventures. Strategically located companies provide the infra- “We think that there has Oman’s strategic location structure and materials need- been a change in the skills and – between two continents ed to run their business. initiative of Omanis to own and on three seas – and its Outside the four free Income tax in Oman is very low, at 12%. The World Bank’s Ease of Doing Business index ranks the country ninth for paying taxes and run their own businesses, efforts to develop its infra- zones, foreigners can have so we have made a package of structure are also attracting an interest of up to 70% in a units, manufacturing and as- Oman currently dustrial and free zones, try- incentives for SMEs,” Dr. Al foreign investment. business venture in Oman, semblage undertakings, logis- has four special ing to attract gas-intensive Sunaidy explains. PET plastics manufac- with the remainder held by tics and distribution centers, industries,” Dr. Al Sunaidy The incentives, which are turer Octal, which has a economic zones – an Omani national. and companies that provide says. Among multinationals aimed at getting Omanis to factory in the Salalah Free According to Oman’s Com- services to any of those enti- in Salalah, Sohar, that have taken advantage leave government jobs and Zone in the south of Oman, merce and Industry Minister, ties. Each free zone is set up Al Mazunah and of the free zones and their strike out as entrepreneurs, “can get a container from Dr. Ali bin Masoud Al Suna- by a separate Royal Decree by Al Duqm – where perks are metals company include a year’s salary from there to New York in 14 idy, inside free zones, foreign H.M. Sultan Qaboos and each foreigners can Vale S.A. of Brazil and India’s their public sector job. days, which is nothing,” Dr. investors can own up to 100% specifies the types of business own up to 100% of Jindal Steel. “That is coupled with a Al Sunaidy claims. of a business. that can be registered inside a business “These international busi- new policy to give at least “I think people are discov- The businesses that can be the free zone. ness giants have found a loca- 10% of government contracts ering that downstream man- set up in free zones include “We have made available tion which is transparent, with to local SMEs,” Dr. Al Suna- ufacturing is something they industrial and processing gas and water in these in- ease of use and regulations, idy adds. can do in Oman,” he states.

Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content Distributed by USA TODAY 5 OMAN Homespun companies identify with local needs Companies like AVOD and Teejan are attentive to the needs of the markets, and successfully grow their activity base and product lines accordingly

is Majesty Sultan Qaboos bin Said Al Said’s long- term development plans have spawned homespunH success stories, including the Teejan Group and Areej Vegetable Oils & Derivatives (AVOD). Since it was founded as a trading and services company in 1974, Teejan has grown to be one of the leading groups in Oman, with construction its strategic business base. It began building schools (to date more than 150), hospitals and health centers, and then widened its portfolio to include industrial projects. “Later on we built malls, factories in Sohar, a power plant in Salalah, and other Although Teejan’s flagship business line is construction, it is also active in engineering, food and beverage, cleaning and equipments, furnishing and information technology, among others buildings – iconic buildings,” Hamed Al Harrassy, founder Like Oman, Teejan’s suc- Areej Vegetable Oils and tralia to the United States. finding that consumers were ing, and is free of trans fatty and Chairman of Teejan, cess is based on diversifica- Derivatives (AVOD) is an- Global foods giant Unilever not satisfied with the results acids, or trans fats. says, citing the example of the tion. “If you look at businesses other Omani success story. sources its vegetable ghee, they got from frying with Mr. Maker emphasizes cruise ship terminal on Mus- in Oman, the most successful Founded 30 years ago, AVOD corn oil and frying solutions different oils. After numer- that AVOD stays abreast of cat’s Muttrah corniche. ones have diversified,” says the exports high-quality cooking from AVOD. ous tests and countless fried Oman’s, and the region’s, Wholly Omani-owned, firm’s chairman. “They see this oils, ghee, margarine, spe- Three of AVOD’s products chicken fillet dinners, AVOD needs. “You have to lever- Teejan has grown over the country as a small market so cialty fats, and butter prod- – Khafeef light frying oil and found that a blend of corn oil age yourself with what the years into a diversified con- they have to create an oppor- ucts around the world from Minara and Sohar cooking and super palm olein – from country needs and where it glomerate, doing business tunity to spread their sources Oman, with clients from oils – won the prestigious palm fruit – worked best. is going. We are in the fast- not only in construction, of income in case one doesn’t Azerbaijan to Zambia, Aus- “Superbrands” title in 2013, “It took a few years to de- moving consumer goods but also in different fields of work out. It is the vision of the and Khafeef was named velop the technology inter- business and so we focus on engineering, the food and government and the vision of Brand of the Year last year at nally,” Mr. Maker says. brands that create value, and beverage sector, and infor- the companies as well.” AVOD’s products an event in Muscat. The Su- Khafeef is at the cutting on constant innovation,” he mation technology. Mr. Al Harrassy also attri- can be seen on perbrands award recognizes edge of what could be called says. “We are in the process “We are gold partners with butes the success of Teejan shelves as far away a product for its marketing, food technology. Dr. Wafaa of launching another brand Microsoft to license the gov- and its contemporaries to the quality and exceptionality. Hilmi Ayesh, the head of for the GCC, and hope to as the U.S., canada ernment and big institutions stable economy, made pos- Participation in Superbrands Clinical Nutrition at Rashid make it a Superbrand.” – and we have been success- sible in large part to H.M. Sul- and New Zealand. is by invitation only, and of- Hospital in the United Arab Not only does AVOD ful in that. We have another tan Qaboos’ leadership. “The In total, the fered to the most outstand- Emirates, says Khafeef con- address consumer needs, partnership with a company economy has always been well company exports to ing brands in their field. tains more anti-oxidants and the company also adds to called EON, from Silicon Val- looked after and good plan- 30 countries AVOD Executive Director Vitamin E than any other Oman’s skills set through ley,” Mr. Al Harrassy says with ning has benefited the coun- Prem Maker says the compa- frying oil, doesn’t become its in-house technical train- justifiable pride. try and the people,” he says. ny developed Khafeef after thick and sticky during frying programs.

Our World Insert is produced by United World. USA Today did not participate in its preparation and is not responsible for its content 6 Distributed by USA TODAY OMAN Coming soon: a multi-modal, integrated transport network The government is believe that in the the dynamics of logistics. It’s now developing ports, future that transport cheaper for shipping lines actu- railways, roads and and logistics will be ally to drop all their containers airports in such a one of the economic in Oman, basically in Salalah way that they will sectors that the country can or Duqm, and then shift them conveniently link up “Irely on to be one of the replace- by railway.” Owned by the state to move cargo and ments for the oil,” Dr. Ahmed and by Oman Oil Company, passengers seamlessly Mohammed Salem Al-Futaisi, Oman Shipping Company Oman’s Minister of Transport mainly focuses on the import and Communications, boldly and export of oil and gas prod- states. And rightly so. With its ucts (especially liquefied natu- prime location on the Strait of ral gas, or LNG) and ore. Hormuz and the Arabian Sea, Passengers who wish to Oman is a natural, and histori- travel along Oman’s coast can cal, logistical base. do so with the National Ferries Add to this the ambitious and Company, which runs services visionary plans the government to Oman’s enclave governorate, has embarked on to develop a Musandam, as well as to the is- solid, integrated transport in- land of Masirah from Muscat. frastructure network, and it is Oman Shipping Company specializes in the transport of liquefied natural gas as well as mineral ore The company’s CEO, Mehdi bin clear that Oman is well on its Mohammed Al Abdwani, also way to building a strong logistic creasingly important and as points to investment opportu- Two existing ports that will ex- underscores the importance of chain that will be the envy of its Oman develops its infrastruc- nities for the supply of services, perience a complete change connecting the country’s modes neighbors. “We are really start- ture and transport links I’m concessions, and contracts for in format are those at Muscat of transport. “In Oman, land “we think that ing to look strategically at how sure that it will grow massively.” operation of commercial activi- and Sohar. Due to constraints and sea transport is inextricably to integrate roads, airports, Oman is currently develop- ties. New regional airports mean, to expansion, and not to men- linked so having an integrated the railway ports and the planned railways,” ing a network of five regional of course, more convenient ac- tion the beautiful setting, adds system linking the cities to the project will be a says Mr. Al-Futaisi. airports – in Salalah, Sohar, Ras cess for passengers to the far Minister Al-Futaisi, Muscat ports is essential,” he says. game changer Vic Allen, former acting Al Hadd, Duqm and Muscat. reaches of the Arabian country. Port will be transformed into a Perhaps the most ambitious in the whole CEO of Oman Airports Man- The latter will soon have a new “Domestic services have tourism port of call, complete and far-reaching of Oman’s logistic system agement Company (OAMC), terminal with capacity for 12 already received a boost with with cafés, restaurants and transport infrastructure plans in the region“ believes that the multi-modal million passengers per annum the increase in frequencies be- shops, while Sohar will take on is the railway project. Construc- logistics hub idea has “huge po- after phase one is completed. tween Muscat and Salalah and Muscat’s commercial activities. tion will begin next year on the dr. Ahmed Mohammed Salem tential for strategic reasons”. “To If demand deems it necessary, the launch of our new service to “I think it serves to show railroad, which will not only Al-Futaisi, Minister of Transport be south or outside the Straits three subsequent phases will Duqm,” says the CEO of Oman just how much tourism is be- interlink the sultanate’s port cit- and Communications of Hormuz is a huge strategic expand capacity ultimately to Air. “However, the opening of coming an important factor in ies, but will also connect to the advantage,” he says. “As time 40 million. According to Paul more new airports in Sohar, Oman,” states Tarik Al Junaidi, $15.5 billion, 1,400-mile GCC goes on, that will become in- Gregorowitsch, CEO of Oman Adam and Ras Al Hadd will acting CEO of Oman Shipping rail project, which will run Air, once the new terminal has enable Oman Air to easy and Company. “Especially between through all six GCC countries opened, “it will offer 96 check-in affordable air travel around the November and March, you see – Oman, Saudi Arabia, UAE, counters, 29 passenger board- Sultanate for both Omani citi- people from the huge cruise Qatar, Bahrain and Kuwait. ing bridges, 30 aircraft remote zens and overseas visitors.” ships heading down to the souq stands, and will be able to pro- In terms of its ports, there are area, walk around and go back.” cess up to 5,500 bags per hour.” six under development, three of Speaking about the plan A brand new runway, now which will be special economic to link Oman’s ports with the in its test phase, will soon take zones (Salalah, Duqm and So- planned 435-mile national rail- over in place of the 40-year old har) that will have convenient way network, Mr. Al Junaidi one currently in use, which will access to their adjacent airports. says, “It will definitely change in turn be upgraded next year so as to afford the international airport with two runways in the near future. The country’s five airports will The new Muscat airport will have capacity for 12 million passengers per annum be state-of-the-art, and Mr. Allen New shipping hub emerges in central Oman Duqm is home to a Special Economic Zone, complete with world-class infrastructure, including a port, which will serve the area’s mining and other associated activities

Oman is a country rich with natural resources, which means that much of its economy is based on the drilling for oil and gas, and on the mining of minerals buried deep be- neath the earth’s surface. And yet the extent to which these activities can benefit Oman’s exports is largely dependent on the transportation industry. That’s where the Port of Duqm, in the mineral-rich Al Wusta governorate, comes in. Duqm is comprised of world-class infrastructure and state-of-the-art technology, which will allow this port to grow into an increasingly sig- In the near future, the Port of Duqm will also have links to a new international nificant part of the economic airport and the national railway landscape for Oman. Its location is also extremely advan- lation behind it like Sohar,” to open-minded trade. This tageous. Rien Van de Ven, the he says. Indeed, there are just trade brings cultures together CEO of Port of Duqm Com- over 11,000 people in Duqm, and has developed a liberal pany says, “If you look at the compared to over 100,000 in mind. Oman is wide open to trading lines on a map, they all Sohar. “Duqm is not meant international activities.” pass by Duqm so Duqm will to be an end destination but a But while Duqm’s most be an excellent trans-shipment starting point,” he says. important purpose at the hub.” It would seem that Duqm The sultanate of Oman has moment is facilitating the is poised to become the new experienced sustained GDP transportation of oil, Mr. Middle Eastern center for in- growth over the last 20 years. Van de Ven says it ultimately dustry, business and shipping. Mr. Van de Ven says this has a serves an even more sig- Mr. Van de Ven clarifies, lot to do with Oman’s interna- nificant purpose. “There will however, that Duqm is not tional outlook, which is facili- come a time when the use of meant to compete with Sa- tated by its ports. “Oman has oil will change, therefore you lalah or Sohar – transport always been a natural trading need other things to fuel the hubs already thriving in other country with old trade routes economy and keep people parts of Oman. “Duqm itself and a rich maritime history,” working. So Duqm is a post- doesn’t have the same popu- he says. “The people are used oil development plan.”

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FACTS & FIGURES Foreign oil & gas firms

n Oman is the largest oil and gas producer capitalize on the sultanate’s friendly outside the OPEC. n New oil and and welcoming environment gas code: 2011 guidelines include The heads of foreign companies Daleel Petroleum and CCED attribute their companies’ success in Oman to the government’s provisions for health, enabling legislation, which in turn has opened the way for a potential investment of $110 billion over the next decade safety, security and the preservation of ne of Oman’s archeological sites. chief exports is oil, sending more than 790,000 bar- n Oman boasts a rels per day abroad in 2013. transparent and OWhile there was a multi-year regulatory fiscal decline in oil production in the early 2000s, enhanced environment for new oil recovery techniques like private investors in steam injection and miscible this sector. injection have caused a re- bound in the industry. With 5.5 billion barrels, Oman “Oman has n Oil and gas ranks seventh in the Middle worked to production continue East and 21st in the world for create an attractive to drive development proved oil reserves. Numerous foreign coun- investment as foreign tries have benefited from environment partnerships help to investing in Oman’s oil and and focused on build local capacity. gas industry. Among them priorities with is CC Energy Development The hydrocarbon a sustainable (CCED), a Lebanese regis- balance“ industry continues to tered company that set up play a central role. its office in Oman in 2008. In Gong Changli, 2009 it began exploration and CEO of Daleel Petroleum LLC drilled two back-to-back suc- n While much of the Enhanced oil CCED will have recovery (EOR) invested $800 CCED became the fourth largest producer of hydrocarbon in Oman in less than three years of operation technology being million by the end of this year in used in Oman has Formed in the second half Oman’s oil and He also credits the country’s ful factors in Oman are the strategic position and its stabil- high standards of the market, of 2002, Daleel Petroleum is been developed gas industry, with abroad, the sultanate ity. “The most important issue transparency of the system today one of the leading oil an additional $900 for any investor is stability and and process.” producing companies in the is building up million earmarked fortunately, Oman is a very sta- “Oman has worked to cre- sultanate of Oman. It is a 50/50 substantial local through to 2017 ble country and His Majesty is ate an attractive investment joint venture between Mezoon expertise in its use. a visionary,” he highlights. environment and focused on Petrogas SAOC (a subsidiary cessful wells. The following “He is avoiding animosity priorities with a sustainable of MB Holding) and Mezoon Resulting knowledge year, it brought these wells with any other country near- balance,” he continues, and il- Petrogas BVI (a subsidiary of transfer to Omanis on stream into production, by and he’s friendly. Under his lustrates this balance by citing China National Petroleum and local firms could and today is producing about leadership, a lot of these devel- Oman’s diversifying economy, Corporation). Daleel Petro- help them to gain 25,000 barrels a day. CCED opments have gone through. with sectors like agriculture leum is involved in the explo- has set the goal to produce When you come to the oil and tourism slowly but surely ration, appraisal and produc- “The most work on EOR projects 30,000 by the end of 2014. industry, Oman has still a lot catching up to oil. tion of hydrocarbon reserves important abroad in the future. Shahrokh Etebar, CEO of areas to be explored and as located onshore in Oman’s issue for any of CCED, says that though I was saying, Oman is stable Raoul Restucci Block 5, roughly 280 miles investor is n A U.S.-based the company is still work- and a good place for oil com- of Petroleum northwest of Muscat. stability and ing in primary and second- panies to invest.” Development Oman Despite the positive sce- global oilfield fortunately, ary exploration and ex- Gong Changli, CEO of an- warns that new nario Oman has developed Oman is a very technologies firm is ploitation, they’re making other successful foreign firm discoveries will be for oil and gas investors, stable country planning to build an continual progress. operating in Oman, Daleel increasingly more there are still some challeng- and His Majesty advanced oilfield “We have a reservoir – we Petroleum LLC, also points challenging to find es. Raoul Restucci, Managing is a visionary“ call it semi-unconventional out the country’s strong suits: Director of Petroleum Devel- chemistry production and exploit – which requires potentially “In my view, the most success- opment Oman (PDO), says, Shahrokh Etebar, facility and an R&D horizontal well drilling and “We are getting into more CEO of CC Energy Development laboratory in Oman. hydraulic fracking,” he says. complex oil. Easy oil is gone, “We also have some areas that if it was ever there.” n contain bitumen, and they are Mr. Etebar agrees, saying, In September at a depth of 1,000 meters, “The reservoirs in Oman are the facilities and so on, are all 2013, Oman and Iran so they are very challenging, not like the huge reservoirs contributing to the increase in signed an agreement but we have started looking in [other parts of] the Middle operating cost,” he says. that will see the at these for the future, maybe East. They are more challeng- And yet the CEO is confi- 10-20 years off.” ing to find, but they are there. It dent his company will contin- development of a Mr. Etebar has an explana- requires patience and knowl- ue to expand. “Daleel is still in new submarine gas tion for his firm’s success: “I edge; different technologies.” a position to grow in terms of pipeline connecting have lots of experience living Another challenge, Mr. production and investment. and working in the Middle Changli explains, is that it is We are recruiting more peo- the two countries as East and I find Oman to be becoming increasingly costly ple and implementing more part of a 25-year, very friendly and coopera- to operate. “Health care en- activities to produce more oil $60bn deal. tive, and the Ministry of Oil hancement, manpower costs, for the country. Daleel will be and Gas has been helpful material costs, and mainte- very busy in the coming five with our progress.” In 2013, Daleel produced some 40,700 bpd, and targets 50,000 bpd for 2015 nance costs for the integrity of years,” he says.

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The Sultan Qaboos Grand Mosque in Muscat “Beauty was inaugurated in 2001 has an address” and it’s Oman Despite its stunning landscapes and rich culture, Oman is only just now becoming a tourism hotspot in the Middle East

ith a popula- One of the most impressive a dramatic mountain back- nation with a sizable residential ly recognized for its cleanliness tion that hov- facilities is Al Bustan Palace, a drop, and offers 200 acres of component. But CEO Hawa- and for its healthy marine life. Its ers around 4 Ritz Carlton hotel since 2011. lush green gardens and a pri- zen Esber says this “is only 40% location makes it a prime stop- million, Oman The 26-year-old resort with vate beach, one kilometer long, of the story”. The Wave, Muscat over hub to the Mediterranean; welcomed 2.2 million tour- a rich history for entertaining overlooking the Gulf of Oman. will also serve as a new hub for as such it didn’t take long to start istsW in 2013, which was 9.8% royalty and heads of state was In 2015, one of Oman’s tourism, leisure, entertainment, attracting yachts. higher than the previous year. originally built to host the Gulf most stunning property de- education, business and culture. While the sultanate of Oman This growth is thanks in part Cooperation Council (GCC) velopments, The Wave, Mus- “My focus is on bridging maintains its own distinct to a successful marketing cam- Summit in 1985, and at the time cat, will open two new hotels: these different components culture, with no intention of paign from the Ministry of “set the standard for the region,” Kempinski The Wave and Vil- with the residential to create a becoming the next Dubai, its Tourism, as well as the increas- according to the hotel’s General lage Plaza Hotel. vibrant waterfront community,” proximity to the United Arab ing number of upscale hotels to Manager, Bernard Viola. The Wave, Muscat is a large Mr. Esber says. Emirates has certainly been accommodate foreign guests. Al Bustan Palace is set against freehold title waterfront desti- While many similar build- helpful in developing Oman’s budding tourism industry. Mr. “I want to focus under the motto Esber says, “Dubai’s growth as a on what Oman “Beauty has an world-class tourism city has had has to offer, address”, oman a major positive impact on how tourists view and understand not only as a is working to the Middle East region.” product as a build country Moreover, Oman, Dubai country, but our brand awareness, and Qatar have an agreement people and our especially in the U.S. whereby visitors can travel hospitality“ and Europe among the three states with the same visa. This, coupled with Maitha Al Mahrouqi , the special 48-hour stopover Undersecretary of Tourism sightseeing packages that the ing projects were put on hold Omani Ministry of Tourism or scrapped entirely in light began promoting in 2012, have of the 2008 financial crisis, helped turned this must-see Mr. Esber says, “Investors and destination into a viable option stakeholders of The Wave, for tourists hailing from as far Muscat charted their own path away as Australia and the U.S. and invested heavily in deliver- “Building our branding ing the core public assets such awareness, this is the major task as the golf course, marina and at hand,” highlights Maitha Al breakwater, which provided Mahrouqi, Undersecretary of The Wave, Muscat’s marina was the first in the region to be awarded the international Clean Marina rating for cleanliness and marine life the confidence for residential Tourism. “We have an interna- investors to return quickly tional brand and our motto is because of the reliability of ‘Beauty has an address’.” the developer to deliver.” As of She adds that Oman’s beauty now, The Wave, Muscat is on is a mighty natural resource schedule to be completed in that, once the Omani popula- “Omanis are the next five years. tion fully comes to understand dedicated to The parts that have been its importance, can help bolster developing their completed are already making the national economy and in a country through waves in Middle Eastern tour- highly sustainable way. ism. Just two years old, the golf traditional course has already been award- values, and that ed the Gold Award for “Best is a prime asset Golf Course in the Region” at that needs to be the MENA Travel Awards, and marketed“ it is home to the annual National Bank of Oman PGA Challenge Hawazen Esber, Tour Golf Classic. The marina CEO of The Wave, Muscat at The Wave, Muscat is the first Al Bustan Palace boasts a stunning location between the Al Hajar mountains and the Sea of Oman in the region to be international-

history, culture and nature...oman has it all

The peninsula’s culturally Teeing up and dressing Beautiful, diverse natural authentic travel destination up, all in a day’s rest landscapes

n If you thought a trip to Dubai could give you a n Visitors can dive and snorkel in the Gulf of n For nature lovers, Oman is likely to be an ideal sense of Middle Eastern tourism as a whole, think Oman, or play golf at the two-year-old, award destination. It is home to such beautiful sights as again. Oman has a rich culture all its own. Hawazen winning golf course at The Wave, Muscat. At the Jebel Shams, a 9,800-foot high peak overlooking the Esber, CEO of The Wave, Muscat, says, “Oman right time of year, whale watching can also be a canyons of the Al Hajar range and located just 150 has an authentic history and culture and Omanis terrific activity for tourists to take part in. miles from Muscat. Then there is the town of Bandar are dedicated to developing their country through Maitha Al Mahrouqi, Oman’s Undersecretary of Khayran, with its clear blue waters, filled with coral traditional values.” This, in turn, affords travelers Tourism, says, “We are so blessed by God to have reefs perfect for snorkeling. Finally, there are the with a culturally authentic travel experience. this nature. We have the potential of adventure beautiful and fertile wadis (valleys), where rivers and Oman’s history goes back more than 10,000 tourism, we have a massive potential in medical streams cut their way through rocky gorges, creating years to the Stone Age. Modern archeological tourism. We have 1,000 types of tourism. But lush oases with palm trees and green grasses. discoveries suggest that that’s when Al Wattih, in our main focus is definitely built on culture and “People will get tired of going to Dubai – the traffic, Muscat governorate, was first settled. This makes it heritage,” she says. noise, the size,” remarks Bernard Viola, General one of the world’s very first cities. From there, the Visitors may also be interested in a night at the Manager of Al Bustan Palace. “People won’t escape history only becomes more fascinating. Al Midhmar Royal Opera House. Ms. Al Mahrouqi boasts that from New York, Tokyo, and Hong Kong and come Mosque, one of the world’s oldest mosques, still the opera house in Muscat is “one of the best opera to Dubai for the same thing. Here in Oman, the stands in Wilayt Samail. houses in the world”. beauty is here, but the word is not out yet.”

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