Tourism infrastructure development gives afacelift to Oman Dossier Oil&Gas SUPPLEMENT Shopping Transforming TECHNOLOGY Abdullah AlAmri HE Tahir binSalim INTERVIEW

/ OER_Oman @omaneconomicreview www.oeronline.com July 2018 Be connected to your business We understand the challenges of the corporate world when it comes to staying productive. Let us partner with you by supporting your efforts to ‘Be digital’ so that together, we can help your business be more efficient with the innovative solutions offered through digitalisation. Be Digital

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No 216 July 2018

EDITOR’S DESK

EDITORIAL Editor-in-chief Said Masoud Almashani Group Editor & Director-Business Operations Destination Mayank Singh Associate Editor Oommen John P Assistant Editor Muhammed Nafie Oman

DESIGN Creative Director Sandesh S. Rangnekar ravel and tourism remains one of the vital sectors to contribute to Senior Designer M. Balagopalan the GDP. The growth of global tourism industry is instrumental in Principal Photographer creating jobs, driving economic growth and generating prosperity Rajesh Rajan Cover concept across the world. Chanjeet Singh T

Senior Production Manager – According to the World Travel and Tourism Council’s annual Economic Impact Print & Digital Research report 2018, the sector was responsible for the creation of seven Ramesh Govindaraj million new jobs worldwide, and grew 4.6 per cent in 2017 – 50 per cent faster MARKETING than the global economy as a whole. This will be the seventh consecutive year Assistant General Manager – Sales & Marketing Avi Titus that the sector has outperformed the economy, and in 2017 proved itself to be Business Head the fastest growing broad economic sector globally. Shivkumar Gaitonde Advertising Manager Ranabir Das Oman – the hidden jewel of Arabia has set its sights on making tourism one of Assistant Manager – Business Support Radha Kumar the most dynamic sectors of its economy. The government is making tourism a central plank of its economic strategy, as the country braces itself for a post- CORPORATE Chief Executive Officer oil future pursuing its diversification drive with a renewed sense of urgency. Atulya Sharma Political stability, a peaceful and tolerant culture and beautiful landscapes Executive Vice President Alpana Roy rich in history bode well for the future of Oman’s tourism sector.

OER PRESENTATIONS The 2040 Tourism Strategy is a clearly defined and structured road map aimed at making tourism one of the most significant income generators in the Sultanate. The strategy aims to generate more than 500,000 jobs by the end of 2040, with the total investment in the sector

Distribution expected to touch RO19bn of which only 12 United Media Services LLC per cent will be by the public sector. The

Published by contribution of tourism sector to the GDP United Press & Publishing LLC would range between 6 to 10 per cent by PO Box 3305, Ruwi, Postal Code - 112 Muscat, Sultanate of Oman 2040. OER’s cover story takes an in-depth Tel: (968) 24700896, Fax: (968) 24707939 Website: www.umsoman.com look at the trends, strategies and targets of To receive weekly the tourism sector in Oman. WhatsApp business All rights reserved. No part of this publication may updates from be reproduced without the written permission of the publisher. The publisher does not accept OER - Oman's No. 1 responsibility for any loss occasioned to any person Business magazine or organisation acting or refraining as a result send us a WhatsApp of material in this publication. OER accepts no message with the responsibility for advertising content. word "OER" followed Copyright © 2018 United Press & Publishing LLC by your name on Printed by Oman Printers & Stationers Ltd. Co. LLC 91242930 Correspondence should be sent to: Oman Economic Review United Media Services PO Box 3305, Ruwi 112, Sultanate of Oman Fax: (968)24707939 Email: [email protected] Website: www.oeronline.com For editorial enquiries: 99884854 For advertising enquiries: 99868035

2 July 2018 AMAZING IN MOTION ALWAYS LEADING THE WAY The flagship that launched a brand and challenged the industry is reimagined to do it all once again. The LS pushes boundaries to elevate experiences – a new dimension in luxury.

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65 companies shortlisted for AIWA Awards ome August 7, Oman will witness as lifetime achievement, excellence the most high-profile event of its in corporate leadership, CEO of the Ckind targeted primarily at the top year, young business leader, most echelons of the business community innovative start-up, excellence in in the Sultanate. Setting up new SME development, most promising benchmarks in the industry, corporates entrepreneur and innovation and in Oman will be felicitated based on a technology. highly qualitative performance survey. A networker’s dream, the event will be To recognise the top achievers in attended by the who’s who of Muscat Oman’s corporate world, Alam al- corporate world. The premium event Iktisaad Wal A’mal (AIWA) had will attract more than 150 top business instituted the annual Awards for leaders, CEOs and senior government Oman’s Best Performing Companies in officials from a cross-section of 2011. AIWA, published by United Media industries, ministries and government Services, is Oman’s leading Arabic bodies. It will witness the congregation business magazine. This year marks the of the key decision-makers who are eighth edition of the AIWA Awards. driving the country’s business and economy. In a red carpet awards evening at Hotel Sheraton, Muscat, AIWA will Gulf Baader Capital Markets (GBCM) is felicitate the top performing listed the knowledge partner whereas KPMG companies in Oman during the last 7 August 2018 i sherAton omAn hoteL is the validation partner for the ranking financial year. As many as 65 companies process used for the awards. Times of from banking, finance, insurance, Oman and Al Shabiba are the media manufacturing, telecom, power & top ranking companies will receive the partners. water, oil & gas, logistics, contracting, coveted trophy across three categories. education & training, fisheries and Furthermore, special awards will For more details on the AIWA Awards, food & beverages sectors have been be presented for achievements that contact Navneet on +968 99210688 or shortlisted for the awards. Overall 15 go beyond the balance sheet such [email protected].

omAn’s top performing businesses wiLL be honoured soon. MAIL The 8th Edition of AIWA Awards, is gearing up to recognise the MSM-listed Small Cap, Mid Cap & Large Cap enterprises who have delivered an inspirational performance in 2017, and Omani Corporate role models for the next generation. THE CHALLENGE OF JOB adverse effects of subsidy reform For partnership enquiries, please contact Navneet on 99210688 or [email protected] CREATION on vulnerable households. The In January 2018, the authorities most recent ILO estimate of launched an initiative to provide unemployment was 17 per cent in 25,000 new jobs in the private sector 2017, while youth unemployment

VALIDATIONand PAR stoppedTNER issuingKNOWLEDGE visas PAtoRTNER expats for PRINT PARTNERis approximately 49 per cent – a certain professions. pressing challenge in Oman where over 40 per cent of the population is The government announced mitigation under the age of 25. measures to support the vulnerable population in 2018. It will allocate Saleem Ahmed, Al Khuwair RO100mn to support needy households, a new fuel subsidy scheme where households with an income below RO600 will receive 200 litres of petrol per month at a subsidised rate.

The main social concern for Write to us with your comments/ Oman is the lack of jobs and the feedback at: [email protected]

4 July 2018 INSIDE

COVER STORY 26 SHIFTING

62 LANDSCAPE AUTO TALK STANDING OUT FROM THE CROWD The update for the MINI 3 door, the MINI 5 door and the MINI Convertible includes fresh design accentuations, innovations in the field of drive technology and additional customisation options

17 20 IN THE NEWS BY INVITATION COMPELLING SURGING NON-OIL INVESTMENT EXPORTS OPPORTUNITY A major recovery in energy prices The IPO of Dhofar Generating indirectly helped the country Company which opened for to strengthen its non-oil export subscription on July 1, 2018 revenue. In addition, prices of and will close on July 30, 2018 several petrochemical products represents an offer of 40 per cent gained immensely from a rise in of the share capital of the company oil prices

Editorial 2 www.oeronline.com Business Briefs 6

Exective Movements 16 ECONOMY COMPANIES INDUSTRY LEADERS SPEAK SPECIAL REPORTS JOBS Search…

In the News 17 Banking & Finance | Energy | Real Estate | Retail | Personal Finance | Travel | Lifestyle | In Pictures | Oer-tv | Contact | Events

By Invitation 20

Interview 22 Sezad seeks more Omani investments in Duqm Officials from Special Economic Zone Authority at Duqm (Sezad) wants to get local communities more involved in Luxury 48 Duqm, besides drawing in more Omani investment CSR 49

Logistics 52 Dhofar Generating IPO opens for subscription The Dhofar Generating Company (DGC-under transformation) announced that it was opening its Initial Public HR 53 Offering (IPO) for subscription Technology 54

Event 57 Meethaq concludes ‘Little Investor’ programme training Meethaq, the Islamic banking window of Bank Muscat, successfully concluded the 2018 ‘Little Investor’ Billboard 58 programme for school students in all governorates in the Sultanate Auto News 60

Auto Talk 62 BUSINESS BRIEFS

Oman LNG signs contracts to build new gas engine power plant Oman LNG has signed two contracts to build a new gas-driven engine power plant at its facilities in Qalhat, Sur. The contracts are essential for the delivery of Oman LNG’s gas engine power plant, the first of its kind for liquefied natural gas (LNG) applications in Oman.

The move to introduce the gas engine power plant is a part of the plans to conserve natural gas and reduce CO2 emissions. Gas savings accumulated through this project are aimed at producing power for Oman LNG’s facility with less natural gas by optimising gas resources and yielding a reduction in environmental emissions. the specific requirements of Oman LNG, while in dealing with such complex projects. KBR is building on a well-proven engine platform. a global provider of differentiated professional The first contract inked with MAN Diesel and services and technologies across the asset and Turbo will deliver the highest quality of gas The second contract is a project management programme lifecycle within the government engine scope, design, manufacturing and supply consultancy (PMC) services contract awarded services and hydrocarbons sectors. of equipment. MAN Diesel and Turbo is one of to KBR. KBR will act as an extension to Oman the world’s leading suppliers of large diesel LNG’s project team and help manage the overall The signing ceremony was held under the and gas engines, as well as engine technology execution of the project, including the management patronage of Dr Mohammed Al Rumhy, Minister covering a wide range of decentralised power of the supply of the Gas Engines Generators of Oil and Gas and chairman of Oman LNG. The plant applications up to 300 megawatts (MW), Packages, and ensure all areas of compliance and contracts were inked by Harib Al Kitani, CEO using liquid fuel, gaseous fuel or dual-fuel safety are adhered to. The contract, additionally, of Oman LNG, Wayne Jones, chief sales officer solutions. For the new power plant, MAN Diesel underpins Oman LNG’s robust commitment towards of MAN Diesel and Turbo, and Jay Ibrahim, and Turbo provides a tailored solution to suit knowledge sharing and boosting staff competency president EMEA and APAC for KBR. Triangle Engineering set to manufacture 960 tonnes of scaffolding by Petroleum Development ISFU accelerated the provision of electricity Oman (PDO) as the approved infrastructure to the project with the support of manufacturer of scaffolding Majan Electricity. products and is in PDO’s vendors list. The manufacture With a lot of construction activity going on around of scaffolding materials and Sohar, the company comprehends that there will be the provision of professional be a great demand for scaffolding. The 2017 report scaffolding services was one by Implementation Support and Follow-up Unit of the opportunities identified (ISFU) said that setting up of the manufacturing in the in-country value (ICV) unit would reduce Oman’s dependency on the oil and gas industry Blueprint import of scaffolding equipment, especially given Strategy unveiled in 2013. It the construction boom. is one of a large number of Triangle Engineering, a new factory backed by industry opportunities that PDO has been leading The effect of producing the scaffoldings locally Petroleum Development Oman and specialising in recent years. will result in investment opportunities in the in providing scaffolding products and services fields of specialised services that are related to Omani industry, is set to manufacture 960 The plan has been built at Phase 7 of Sohar to scaffolding. The production of scaffolding at tonnes of scaffolding equipment this year. Industrial Area, in close proximity to the 10 per cent of the plant’s annual capacity is the The scaffolding plant was constructed and the Sohar Free Zone and the Sohar Port. When the final milestone to be achieved. This proportion is commissioning has been completed, according project faced electricity connection challenges, equivalent to 960 tonnes, which is aimed to be to a report. Triangle Engineering was accepted the Ministry of Commerce and Industry and produced in 2018.

6 July 2018

BUSINESS BRIEFS

Pact signed for building material market in Duqm Wanfang will invest 51 per will also benefit from the construction material cent, while Al Thabat and market being established on the coast of Duqm. Tatweer will hold 34 per cent and 15 per cent equity The project is located within Phase 1 of the respectively. China-Oman (Duqm) Light Industry Park, a proposed industrial city. Of the total land area The Building Material allocated to the Building Material Market Project, Market Project comprises approximately 250,000sqm will comprise retail/ the development of land, commercial space, warehousing/logistics space and basic warehousing and land area for utilities and infrastructure. The and retail space for third first phase of the project is expected to begin party building material construction by 2018-end. Oman Wanfang, Oman Wanfang, the developer and operator of companies to showcase and store their products. which has signed a usufruct agreement for the the China-Oman (Duqm) Industrial Park, signed a This project will enable various companies development of an industrial park and tourist shareholders’ agreement with Al Thabat Holding around the world to come to Duqm and make zone in Duqm, is taking up several projects in and Oman Company for the Development of a Duqm a base for marketing and selling their Duqm with the support of Chinese investments. Special Economic Zone at Duqm (Tatweer) for products related to the construction industry. Al Thabat Holding is an investment company, the development of a Building Material Market instrumental in dealing with infrastructure Project in Duqm. Given the advantage in location of Duqm, this activities within Oman. Tatweer (Oman Company initiative is expected to bring about logistics for the Development of a Special Economic Zone The project will be developed under a joint venture efficiency for the sector, and not only Oman, at Duqm) is a 100 per cent subsidiary of the company, Duqm Material Market, where Oman other countries in the Middle East and East Africa Special Economic Zone Authority at Duqm.

Duqm Refinery issues formal NTP to the contractors Following the groundbreaking ceremony of Duqm Refinery held at the project site on April 26, officials have now formally issued a “notice to proceed” (NTP) to the contractors of the three EPC packages worth $5.75bn. The formal issuance of the NTP signifies the start of the construction work of the 230,000bpd refinery project. The project is expected to be completed and be ready to begin operations 42 months from the issuance of the NTP. Initially, the contractors will allocate resources to complete detailed engineering design work at their home offices where they will be joined by staff from the Duqm Refinery.

Jacobus Nieuwenhuijze, project director of Duqm Refinery, said: “This truly is an exciting and important milestone for all of us, since it not only signifies the start of the construction work but also culminates the efforts put in by stakeholders to have the project reach this stage.” He added: “The contractors and the project team have prepared themselves thoroughly to ensure a solid start to the project activities.” the process units of the refinery, while EPC 2 The contractors for the three EPC packages are : The commencement of the construction work of consists of the utilities and offsite facilities. EPC Joint Venture of Técnicas Reunidas and Daewoo this key project will also trigger other direct and 3 includes the product export terminal at Duqm Engineering & Construction Co; Joint Venture indirect benefits to Duqm and the region. Duqm Port, the Duqm Refinery-dedicated crude storage of Petrofac International Limited and Samsung Refinery’s EPC scope of work is divided into three tanks in Ras Markaz and the 80km interconnecting Engineering Co., and Joint Venture of Saipem SpA separate packages. The scope of EPC 1 includes pipeline from these crude tanks to Duqm Refinery. and CB&I.

8 July 2018 Al Araimi Walk to open in September 2020 Raid Abdullah Al Araimi, vice chairman, of the Al Raid Group said, “Having a sprawling tree-lined promenade, a high-tech digital park, gourmet restaurants, world-class designer brands and a lot more, each and every aspect of Al Araimi Walk will exemplify and reflect the essence of refined taste, and the innovative spirit of the Al Raid Group.”

He added, “Through the launch of Al Araimi Walk it is our endeavor to become the nation’s number one destination for families, tourists and shoppers; where they can spend joyful moments exploring retail outlets, gathering at a wide selection of cafés and restaurants; and enjoying the several entertainment attractions that will be a part of our magnum opus property. That’s not all – through Al Raid Group has recently launched the nation’s snow village, ice-skating rink, virtual reality zone, Al Araimi Walk, it is our goal to offer retailers the first outlet mall and largest retailtainment and cliff climbing adventure facility. choice of selecting a strategic partner who will destination – ‘Al Araimi Walk’ in Barka. The iconic bring them ‘closer to the consumer’.” 240,000 sqm development project will set a new With this delightful conflux of world-class retail benchmark as the nation’s first ever retailtainment outlets and exciting entertainment options, Omanis A brand new retail concept – Al Araimi Walk will destination; and will feature 164 retail outlets, 42 will be able to look forward to a fun-filled day cater to a community that previously had to travel food and beverage outlets, 7 entertainment hubs, a of shopping and recreation with their friends miles to shop and dine and no other mall will hypermarket, and IMAX cinema. and families. Ensuring varied shopping and come close to delivering such a unique exciting commercial experiences that enhance and support shopping and entertainment experience. The mall Apart from offering shopping and family-oriented community life; construction on Al Araimi Walk is will also help create jobs in the region, and serve experiences – some of the highlights of the mall scheduled to begin in July 2018, and the property as an ideal platform for entrepreneurs who want to include: an indoor waterpark, trampoline park, will open its doors by September 2020. start their businesses at a world-class destination.

Oman’s third cement factory to start operations this year The construction of Suhar Cement, Oman’s third cement mill jointly developed by Sohar Cement and UAE-based Fujairah Cement Co, is nearing completion and the plant is expected to start operations later this year. Sohar Cement has 70 per cent stake in the company, while Fujairah Cement Co owns the remaining 30 per cent. Muscat-based Oman Cement and Salalah-based Raysut Cement are the two existing players in this vital sector, and the Sultanate is currently importing over half of its cement demand.

Suhar Cement, being developed within Phase 7 of Suhar Industrial Estate and equipped with 240-tonne per-hour grinding unit, coupled with several new cement projects coming up in Duqm Special Economic Zone, is expected to reduce Oman’s construction sector’s dependence on imported cement. in the first quarter of 2018, the project was delayed Implementation Support and Follow-up Unit (ISFU) due to the lack of power supply and paved road to – a special task force of the Diwan of Royal Court, Although the plant was expected to start operations the site of the plant. However the intervention of helped the company address these impediments. BUSINESS BRIEFS

PDO donates more than RO5mn to Cyclone Mekunu victims Petroleum Development Oman (PDO) is donating rebuild their lives and homes. I also applaud RO5mn to support victims of Cyclone Mekunu PDO’s staff for donating money to the cause and the ongoing recovery efforts in the wake and once again showing their compassion and of the recent tropical storm which hit Dhofar concern for those in need.” and Al Wusta Governorates. The company has also launched a staff appeal in the immediate And PDO managing director Raoul Restucci said: aftermath of the natural disaster. All of the money “PDO is deeply concerned for the communities will be used to rebuild homes in the affected in which we operate and those beyond our areas and PDO’s concession area and support boundaries which were seriously impacted other relief efforts. by the devastating cyclone. There was a huge groundswell of support and sympathy for the HE Dr Mohammed bin Hamad Al Rumhy, Minister victims from our staff and contractors, some of Oil and Gas and chairman of the PDO board of whom were caught up in the disaster. They was able to safely evacuate more than 19,000 of directors, said: “PDO is a good corporate wanted to do everything they could to help and staff and contractors from the affected areas citizen which is strongly committed to the safety, have responded magnificently with the relief and and give vital support to local communities, empowerment and success of the communities recovery efforts and raising money for those who providing shelter, food and water, facilitating the where it works. I am happy that the company is bore the brunt of the storm.” re-connection of electricity services, opening able to make this substantial contribution to the roads, and supplying municipal offices with fuel disaster relief efforts and help those affected to Despite the challenging weather conditions, PDO and satellite phones.

BankDhofar contributes RO1mn to Mekunu-hit families The board of directors of BankDhofar the Sultanate including cyclone decided to contribute RO1mn Gonu. As we all know that cyclone to support the families affected Mekunu left damages on properties, by cyclone Mekunu which hit the board of directors contributed governorates of Dhofar and Al Wusta RO1mn in demonstration of our recently. Abdul Hakeem Omar Al support to the citizens in Dhofar and Ojaili, CEO of BankDhofar said. “This Wusta Governorates and to repair the initiative highlights BankDhofar’s damages in their properties.” leading role in lending support of various social and economic The amount will be managed in cases. The bank provided support coordination with Oman Charity during previous cyclones that hit Organisation. Within the same context, BankDhofar has announced earlier loan installment deferments for customers in Dhofar Governorate in translation of its support to the affected families. BankDhofar has always been at the forefront in providing support to the community. The bank continues to deliver on its commitment by innovating strategic sustainable CSR initiatives, to ensure lasting positive benefits aimed at strengthening ties with the local community.

10 July 2018

BUSINESS BRIEFS

Oman India Joint Investment Fund to invest $15mn in India’s Divgi-TTS Oman India Joint Investment Fund (OIJIF), a joint vehicle systems as well as BS-VI technology. venture of the Sultanate’s sovereign wealth fund, Divgi-TTS makes automotive drivetrain systems and the State General Reserve Fund (SGRF), and the components, transfer cases, torque couplers and State Bank of India, has announced an investment auto-locking hubs, according to its website. OIJIF, of Rs 100 crore ($15mn approximately) set up in 2010, has completed investments worth automobile component maker Divgi TorqTransfer $100mn from its first fund. Beneficiaries include Systems (Divgi-TTS) based in Pune in the sports footwear retailer SSIPL, National Commodity western state of Maharashtra. and Derivatives Exchange (NCDEX), defence electronics maker Indus Teqsite, battery maker HBL According to a report in The Economic Times, OIJIF Power and agro chemicals firm GSP Crop Science. had recently announced the second close of its part maker’s capacity expansion and diversification second fund, with commitments of $230mn. The into new product categories, the report said. In March 2017, the fund had sold its stake in second fund, which has a target corpus of $300mn, Kotak Mahindra Bank. Besides Kotak Mahindra had hit first close at $220mn in January 2017. The According to the report, the auto part maker is Bank, OIJIF also exited Solar Industries India and investment, made in April, will be used for the auto eyeing emerging growth in electric and hybrid partly exited Beaver Engineering.

GlassPoint partners with Napco local contractors. Once installed, the mirrors automatically track the sun throughout the day, focusing sunlight on steel pipes filled with water. The heat from the sun boils the water to produce high-pressure steam that is injected into the reservoir to help extract heavy oil.

Moss added, “GlassPoint no longer needs to import all the aluminium materials from Europe or Asia and is actively working with Napco to qualify them for additional components. We are increasingly looking for opportunities to build national capacities and maximise the project’s supply and manufacturing here in Oman. As we expand in the region, these Omani-made materials could be exported for use in future projects.”

Ihab Mouallem, CEO at Napco, said, “Collaborating with GlassPoint, we have Through its partnership with the National and contractors is part of our growth strategy expanded our opportunity to provide them with Aluminum Products Company (Napco), Oman’s within the Sultanate. Together with our partners, aluminium materials used throughout their solar largest aluminium provider, GlassPoint Solar, we are working to establish Oman as an industrial thermal technology. The partnership between continues to generate sustainable in-country hub for renewable energy,” said Steven Moss, us has not only created jobs but has positively value (ICV) within the Sultanate. Building the GlassPoint’s CEO. impacted Oman when it comes to growing the Miraah solar plant with Petroleum Development manufacturing sector and adding long-lasting Oman (PDO), GlassPoint is committed to Since breaking ground on Miraah, GlassPoint value to the country.” developing a solar hub in Oman and contributing has been working to qualify Omani suppliers to the country’s economic diversification. for elements of the project, including the large GlassPoint has met all its ICV commitments curved structures that support the mirrors. These since breaking ground on Miraah in 2015. “We are proud to be partnering with Napco in structures are built from aluminium extrusions The company continues to seek opportunities developing our ‘Made in Oman’ solar supply made with precision machining at Napco’s to expand beyond these targets and deliver chain. Creating opportunities for local companies facility and assembled at the project site by sustained value to the Sultanate.

12 July 2018 Oman to resume copper production after 14 years Oman is resuming its copper production after a gap of 14 years, with the launch of a copper mining project in the wilayat of Mudhaibi by Al Hadeetha copper project. Oman had stopped the exploration and production of copper in 2004.

Eng Hilal bin Mohammed al Busaidi, CEO Public Authority for Mining (PAM), apex body for mining activities in Oman, said, “Oman is starting copper production after a gap of 14 years, and the development confirms the economic importance of copper in the Sultanate. The copper mining project comes as a result of strong cooperation, and there will be a lot of similar projects in the future.”

Al Hadeetha copper project is being operated by Al Hadeetha Resources, a joint venture between Alara Resources and Al Hadeetha Investments. The joint venture was formed in 2011 for the purpose of exploration and development mineral zones in the sultanate.

According to Hadeetha Resources officials, the concession area of the project site is estimated at about 39sqkm, and the mning license area is largest single copper resource in the Sultanate. The total investment in the project would be about 3sqkm based on the PAM mining license. “The project will have a life-span of around ten around $340mn, including investment that Justin Richard, CEO at Alara Resources said the years, which can be extended with exploration has already been made. Total earnings from total resources estimated as per international from adjoining areas. Once operational, the the project at current prices would be around acceptable standards is expected to be in excess project will create more than 100 new job $500mn.The government will earn around $60mn of 16 million tonnes of copper. This is one of the opportunities for Omanis,” Richard said. from royalty and taxes from the project.

Nama Group posts RO1.12bn in revenue conference, Eng Omar bin Khalfan Al Wahaibi, increased by 7 per cent to 32.277 Giga Watt. CEO of Nama Group, said, “Nama Group Nama Group has also invested RO469.70mn continued to record considerable growth in in the electricity distribution and transmission 2017 by enhancing the assets of transmission networks compared to RO448.9mn in 2016,” Al and distribution networks. The group has Wahaibi added. increased its reach covering more customers and new geographic areas as a result of the new Nama Group recorded an increase of 2 per cent connections to serve all customers.” in total operating revenue reaching RO1.123bn compared to RO1.121bn in 2016. Customer The number of customers had increased by 6.7 meter reading reached 88.6 per cent in 2017, per cent and units of electricity sold had risen as a result of the group’s continuous efforts to by 7 per cent. Moreover, demand of electricity enhance meter readings and customer billing. has increased by 6.4 per cent in the main interconnected system and 5 per cent in the The group invested heavily in capital Dhofar System. The total financing of the group’s expenditure to expand and develop its networks capital expenditure had reached RO1.60bn since and systems to satisfy the requirements Nama Group has announced that its revenue the beginning of its “Lamar” financing project. and demands of the market. The company had reached RO1.12bn in 2017 while the highlighted Lamar Project, which was launched group’s total investments in the development “The number of customers reached 1,147,401 in 2014. Nama Group, led by Nama Holding, of transmission and distribution networks had in 2017, which is an increase of 6.7 per cent has successfully raised funds of RO1.6bn touched RO469.70mn. Speaking at a press compared to 2016. The units sold to customers across various funding sources and tenors. BUSINESS BRIEFS

Banks post 7.7 per cent credit growth till April 2018 The Sultanate’s financial institutions, including Islamic banks, have achieved a robust credit growth in the first four months of 2018. The Omani banks have achieved a year-on-year growth of 7.7 per cent in total credit at RO24.13bn by the end of April 2018. The average interest rate on total credit grow by 3.3 per cent to 5.1 per cent by April-end of 2018, from 4.9 per cent for the same period of last year, according to the latest monthly statistics released by the National Centre for Statistics and Information (NCSI).

Deposits of private sector in Omani financial institutions grew by 1.8 per cent to RO14.08bn at the end of April 2018, from RO13.82bn for the same period of last year. A growth in private sector deposits show that the financial institutions have ample liquidity.

The NCSI report also said that the Central Bank of Oman (CBO) has issued currencies to the tune of RO1,639.50mn at the end of April 2018, marginally up by 1.3 per cent from the same of narrow money and short-term deposits, rose The NCSI report also said that the Effective period of last year. However, narrow money year-on-year by one per cent to RO16,236.10mn Exchange Rate Index of Omani Rial marginally supply, which mainly consists of currency, at the end of April 2018. The incremental growth declined by 0.8 per cent to 101.7 by April-end demand deposits and other liquid assets, edged in broad money supply was RO168mn for the of 2018, from 102.5 for the same period up by 1.2 per cent to RO5,272.50mn from last 12-month period. The foreign assets of of 2017. A growth in the index indicates a RO5,211.90mn during the period under review. Central Bank of Oman fell by 10.2 per cent purchasing power increase for Omani Rial to RO6,587.20mn at the end of April 2018, while a fall indicates a decline in purchasing Likewise, broad money, which mainly consists compared to the same period of 2017. power of Omani Rial.

Oman’s FDI rises 15 per cent for Statistics and Information (NCSI).

The United Kingdom (UK) was followed by the United Arab Emirates (UAE) with an investment of RO1.02bn, Kuwait with RO416.5mn, Qatar at RO388mn, Bahrain with RO337.3mn, the United States at RO293.9mn, India with RO280.6mn and Switzerland at RO277.1mn). Further, the flow of foreign direct investment from other countries was RO1.61bn in 2017.

The oil and gas sector attracted the maximum foreign investment of RO5.16bn in 2017, against RO3.98bn for the previous year, noted the NCSI report. The flow of foreign direct investment to the financial sector was RO1.41bn, against RO1.43bn in 2016, Foreign Direct Investment (FDI) in the Sultanate the list of investors in the Sultanate, with direct while manufacturing and real estate sectors rose by 15 per cent, to RO9.34bn in 2017, from investment of RO4.45bn in 2017, against attracted foreign investment of RO1.04bn and RO8.09bn in the fourth quarter in 2016. Among RO3.50bn in the previous year, according RO651.5mn in 2017, against RO1.05bn and various countries, the United Kingdom topped to statistics released by the National Centre RO618.8mn, respectively, in 2016.

14 July 2018

EXECUTIVE MOVEMENTS

Bank Muscat’s board of directors announced The bank has been working on plans to Gulf College has appointed the appointment of Sheikh Waleed K Al develop Omani cadres and provide them with Dr Rima Al Zadjali as the dean of the Hashar as CEO of the bank commencing opportunities to take several responsibilities college. Dr Rima is a graduate of Sultan January 1, 2019. This comes in line with to prepare them to commence higher roles Qaboos University (SQU). She has an MA in the senior management succession plan in the coming future. The bank today has Language Testing and Programme Evaluation endorsed by the board in 2015. AbdulRazak competent and qualified young Omani cadres from the University of Essex, UK and a PhD Ali Issa, current chief executive and Ahmed in executive management that can lead the degree in Applied Linguistics from the Al Abri, chief operating officer will retire bank to accomplish more achievements University of Lancaster, UK. She comes with from their positions on December 31, 2018 that will enhance the bank’s position in the rich knowledge and expertise in areas of quality after more than 30 years of service with the financial sector, wishing Waleed Al Hashar, the assurance, accreditation, policy development bank. AbdulRazak Ali Issa and the executive management team and the employees all the and performance management, that she has management will oversee the completion of the success during the next stage”. amassed in her several years of experience in transition in the upcoming months. the capacity of deputy director for academic On this occasion, Sheikh Waleed bin Khamis affairs and community service at SQU. Prior to Sheikh Khalid bin Mustahail Al Mashani, Al Hashar expressed his thanks and gratitude this, she has served as the deputy director for chairman, Bank Muscat, on behalf of the board to the board of directors and the executive assessment at the Language Centre, SQU. of directors expressed his sincere gratitude and management for their trust and support appreciation to AbdulRazak Ali Issa and Ahmed stressing the current executive management She is a prominent member of external reviewers Al Abri for their outstanding contributions made great efforts during the past years and from the Oman Academic Accreditation Authority towards the bank’s success and position as achieved many successes and achievements (OAAA). She has served as an executive officer the leading bank in Oman. “The board would that we are proud of and praised by everyone. during her secondment at the OAAA in 2012 and also like to express its great confidence in the Sheikh Waleed added, “We will continue the as a member of the executive committee of Oman capabilities and expertise of the new CEO and successful journey achieving more growth Quality Network in higher education. She is an the management team to maintain the bank’s and progress in all areas, to maintain the avid researcher, a passionate academician and a position as the flagship financial services achievements of the past years by exerting transformational leader. provider in the Sultanate.” Sheikh Khalid added. more efforts, and enhancing cooperation with The board of directors has also approved a various economic sectors”. Dr Rima said that her main focus would be to aid revised organisational structure in line with its Gulf College to achieve national accreditation strategic plan and trust in Omani potential and Sheikh Waleed Al Hashar is deputy CEO at and while doing so uplift the standards of capabilities. The appointment of the new CEO Bank Muscat. He is also a member of the board teaching and learning to ensure that the college and organisational structure are subject to CBO of directors of Oman Tourism Development fulfils its strategic objectives and serves its approval. Co (Omran), the Oman Center for Governance mission to offer internationally recognised and and Sustainability, The College of Banking innovative academic qualifications that are AbdulRazak Ali Issa, chief executive, Bank and Financial Studies and the Oman Banks appropriate to the needs of the students, job Muscat, has expressed his appreciation to Association. Al Hashar has over 26 years’ market and national priorities. the board of directors for their continuous experience in banking as well as the oil and gas support to him personally and the executive sectors. Before joining Bank Muscat, he held She stated that the college would work closely management in the last few years. AbdulRazak, senior positions in a number of firms in these with its partner universities (both Cardiff added, “The bank’s achievements and sectors. He holds a postgraduate diploma in Metropolitan and Staffordshire), in order to successes contributing to the national economy general management from Harvard Business maintain the highest academic standards offered and society are attributable to the efforts and School and also holds a BSC and Masters in by the two prestigious universities alongside skills of employees who serve with a sense Business Administration from California State other stakeholders such as MoHE, employers, of belonging to the institution as one family. University in Sacramento, USA. industries, alumni and wider community.

16 July 2018 IN THE NEWS

he Dhofar Generating Company (DGC-under transformation) has announced that it is opening its Initial Public Compelling TOffering (IPO) for subscription. The company owns and operates the Salalah II IPP project and is currently the largest power supplier in the Dhofar investment governorate. Its founding shareholders are selling their shares to the public to comply with their obligations under the project founders’ agreement, which they opportunity signed with the government of Oman.

DGC is offering 88,896,000 shares The IPO of Dhofar Generating Company which at a price of 259 baisas per share, opened for subscription on July 1, 2018 and will comprising a nominal value of 100 baisas, a premium of 157 baisas, and close on July 30, 2018 represents an offer of 40 per offer expenses of 2 baisas per share. The cent of the share capital of the company IPO represents an offer of 40 per cent of the share capital of the company.

The IPO opened for subscription on July 1, 2018, and will close on July 30, 2018. Both Omani and non-Omani investors, including individual and institutional investors, are allowed to purchase shares during the offer. The company has reserved 65 per cent of the shares for subscription investors applying for a minimum of 1,000 shares and a maximum of 100,000 shares, while 35 per cent of the shares have been reserved for investors applying for a minimum of 100,001 shares up to a maximum of 8,889,600 shares. of 718MW. The original plant, which Company – are well-reputed global commenced commercial operations leaders with established track records From the IPO price, the company in 2003, has a contracted capacity of in the global and regional power offers an average projected dividend 273MW. The founding shareholders industry. yield of 7 per cent for the first five acquired DGC in June 2015, and a second years, excluding issue expenses. The 445MW plant developed by DGC began “The DGC IPO is a compelling first dividend of 18 baisas per share commercial operations on schedule on investment opportunity in a company is expected to be paid in February January 1, 2018. that is powering Dhofar, one of the 2019 and twice yearly thereafter. largest governorates of the Sultanate,” The company also offers investors an The company is now the largest power said Naif Alawaid, CEO of DGC, at the internal rate of return (IRR) of 11 per supplier in the Dhofar Governorate, opening of the IPO. “It also promises to cent to 13 per cent from the offer price. with its total contracted power capacity take DGC to the next level of success.” supplying approximately 61.74 per cent Bank Dhofar–investment banking of the total contracted capacity of the “The company benefits from a marquee division will serve as issue manager, Dhofar Power System. The company has shareholder group, robust agreements while EFG Hermes UAE Limited will a world class safety record with zero with the government including OPWP, act as the global coordinator and LTIs recorded since its acquisition. It and the umbrella of the AER, with stable Bookrunner for the transaction. has also undergone stable and efficient and predictable cash flows that support growth, while achieving 69.2 per cent the strong investment case,” he added. Two power plants Omanisation. The company also benefits from fully- DGC’s Salalah II IPP project consists of operating assets, with no construction two power generation plants in Raysut in The founders of the company – Mitsui, and commissioning risk, and a strong the Dhofar Governorate of the Sultanate ACWA Power, and Dhofar International track record of safety, reliability and with a combined contracted capacity Development & Investment Holding localisation. IN THE NEWS

After successful completion of Tranche 1 and 2 of long-term fund raising programme, Nama Group has commenced preparations to launch Tranche 3 of Lamar Project by floating an open tender Nama Group to float open tender for Lamar Project

ama Group has commenced 1 is the organising of short term progress in Lamar Project since its preparations to launch loans; phase 2 is the ‘advisory’ phase launch in 2014. Nama Group, led by tranche 3 of Lamar Project and phase 3 is the ‘arrangement/ Nama Holding, has successfully so far (funding programme) by implementation’ phase, including the raised funds worth RO1.72bn across Nfloating an open tender. This is limited hedging advisory and execution for various funding sources and tenors. to established local and international the associated fund raising. Diversification of sources, optimisation banking institutes for organising of rates and hedging of the interest long-term funding to support the The companies for which funding rates have helped the group achieve its capital expenditure programme will be used are Oman Electricity target financial cost metrics efficiently of transmission and distribution Transmission Company (OETC), within their allowed price control companies. Mazoon Electricity Company (MZEC), returns, while meeting the electricity Muscat Electricity Distribution security standards. The group has taken this initiative after Company (MEDC), Majan Electricity successful completion of tranche 1 and Company (MJEC), Dhofar Power Nama Group consists of several joint 2 of long-term fund raising programme. Company (DPC) and Rural Areas stock companies registered in the The objective of floating the open Electricity Company (Raeco). Nama Sultanate of Oman. These include tender is to appoint a mandated lead Group is in its growth phase as among others, Mazoon Electricity arranger (MLA) to raise an amount continues to plays a very significant Company (MZEC), Muscat Electricity of RO453mn approximately for 2019- role in the development of nation’s Distribution Company (MEDC), 2021. The funds raised by the long term economy. The group has invested Majan Electricity Company (MJECO), funding arrangements would be used heavily in capital assets to expand and Dhofar Power Company (DPC), Rural to meet the capital expenditure needs develop its networks and systems to Areas Electricity Company (Raeco), for expansion and enhancement of the satisfy the requirements and demands Oman Electricity Transmission transmission and distribution networks of the market. Availability of capital Company (OETC), Gubrah Power and and refinancing of short term loans. funding is critical to the successful Desalination Company (GPDC), Wadi achievement of Nama Group objectives. Jizzi Power Company (WAJPC), and The company said that there are Oman Power and Water Procurement three phases under tranche 3. Phase The group has made significant Company (OPWP).

18 July 2018 SHELL V-POWER LAUNCHED IN OMAN

hell Oman emphasised its Motorists in Oman can now join fuels in extreme conditions; providing commitment to providing the millions of other consumers in over 65 us with a better understanding of what latest in fuel innovation by other countries around the world to will deliver our best performance launching Shell V-Power. experience the benefit of this globally and efficiency fuel, with DYNAFLEX S renowned fuel. Shell V-Power with Technology.” The all-new Shell V-Power, launched DYNAFLEX Technology has a cleaning for the first time in the Middle power and friction-reducing technology Dr Mohammed Mahmood Al Balushi, East, is a result of years of research that helps engines be more efficient CEO, Shell Oman Marketing Company and development (R&D) by Shell’s decreasing energy waste, because said the launch of Shell V-Power is international team of fuel scientists, the efficiency and performance go hand in expected to contribute significantly to same scientists that have developed the hand. Shell V-Power is meant to help the retail business growth in Oman. Shell V-Power race fuels for Scuderia both new and older engines. Ferrari. Helping make motorists’ life Shell has more than a century of journeys better - Shell V-Power is “Our customers appreciate the quality experience in fuels innovation and designed to offer customers in Oman of Shell fuels, and we are now offering development, with approximately 170 Shell’s best performance and efficiency them Shell V-Power as a premium fuels scientists and specialists across the fuel, with DYNAFLEX Technology. performance fuel in addition to Mogas globe working on it. 91, Mogas 95 and Diesel,” added Khalid. Speaking at the launch, Khalid Al The launch of Shell V-Power in Oman Shell’s technical partnership with Ferrari Awaisi, retail country manager at Shell will begin with 10 service stations in assists Shell in developing Shell V-Power Oman Marketing Company said, “Shell Muscat; with network expansion phases fuels to meet the highest possible V-Power is our very best fuel offering planned for outside Muscat throughout standards. Shell V-Power contains 99 per for cars across the Sultanate. As the 2018 and 2019. cent of the same types of compounds leader in fuels technology, Shell works found in the Shell V-Power race fuel closely with Ferrari in R&D to constantly Mae Ascan, senior fuels scientist for Asia being used by Scuderia Ferrari in the innovate and produce the best fuel region, Shell Projects and Technology Formula One World Championship. formulations for all vehicles. said, “Shell V-Power is designed for use in all types of petrol engine vehicles, Also endorsed by other premium With 60 years of downstream business whether it is old or new. Shell V-Power vehicle brands like BMW M, Shell operations in Oman, we are committed has gone through rigorous testing both in V-Power is the result of over 60 years to sharing our global cutting-edge the lab and at the track, before making of inspiration, innovation and shared technology reach and technical expertise its way to the market. Shell’s technical passion for the best performance with our customers in the Sultanate, to partnership with Ferrari has given us and efficiency with Ferrari in the help make their life journeys better.” the environment to test Shell V-Power motorsports arena. BY INVITATION

By M R Raghu

Surging non-oil exports A major recovery in energy prices indirectly helped the country to strengthen its non-oil export revenue. In addition, prices of several petrochemical products gained immensely from a rise in oil prices

man´s economy is highly (cyclic hydrocarbons, polycarboxylic dependent on oil and gas acids, phenols etc). exports which constitute 69 per cent of its total Key partnering countries Oexports. However, over the years, GCC and Asia are the two largest export there has been a substantial increase markets for Oman. The two regions in the contribution non-oil exports together make up approximately 79 to the national GDP. Some of the key per cent of Oman’s total non-oil export points addressed in this article are and re-export market. At the end of about the recent trends in non-oil December 2017, drastic growth in exports, historical data analysis, major non-oil exports to some of its major contributing partners, and the reasons trading partner countries such as behind the surge in non-oil exports. Qatar by 160.3 per cent to $546mn from $210mn during the same period Products in 2016. Also, the re-exports of non- As per a recent report, the non-oil oil to Iran alone increased by 129.1 export value during the year 2017 stood per cent ($581mn), Pakistan by 70.7 at $6,764mn, a surge of 28.2 per cent per cent ($387mn) and Yemen by 56.1 from $5,274mn registered in the same per cent ($301mn). Increase in Iran’s period of previous year. A strong and infrastructure investment has led to healthy growth was observed in the increase in Oman’s re-exports. Iran has export of minerals, plastics and rubber, strong dependency on Omani market base metals and chemical products, as for construction materials, steel, copper per the latest monthly statistics released cathode, agro and food products, sweets, by the National Centre for Statistics chocolates, nuts, fish and shrimp. and Information (NCSI). Among the Again, in Pakistan, with the advent non-oil product categories in 2017, of China Pakistan Economic Corridor exports of mineral products went up by (CPEC), the imported inputs are used 51.5 per cent ($1,662mn) and exports for the development of transportation of chemical products rose by 41.9 per networks which contribute towards cent ($1,585mn) from the previous year. industrial growth and therefore quality Again, export revenue from rubber and is very crucial. Imported inputs number plastics and basic metals also increased increased as domestic inputs were by 43.5 per cent ($388mn) and 35.8 per either unavailable or of a sub-standard cent ($1,228mn), respectively. Oman quality. The author is Managing Director of Marmore exports represent 1 per cent of mineral Mena Intelligence, a research house focused on oil, fuels and products of world exports. Increase in commodity prices conducting Mena-specific business, economic Oman contributes to 0.3 per cent of A major recovery in energy prices and capital market research. World Organic Chemicals Exports indirectly helped the country to

20 July 2018 strengthen its non-oil export revenue. rates, reduction in utility charges and competitive risk-adjusted return on Again, prices of several petrochemical exemptions from taxes have boosted investment compared globally. The products gained immensely from a rise the non-oil production volume thereby Sultanate ranks in the top 30 countries in oil prices. increasing the exports number. As a worldwide in terms of non-tariff part of the country’s diversification trade liberalisation and third in GCC; The Sultanate has emerged as leading programme, Oman is busy promoting this means investors will face fewer global exporter of gypsum for as many various initiatives and conducting barriers such as quotas, restrictions as 15 countries primarily in Asia continuous research on courses of action and licensing issues. For instance, and Africa. Although the Sultanate to strengthen its export base of non-oil UAE biggest importer of Oman’s fish contributes only 2 per cent of total products, including the mineral sector. stated that it finds it cost-effective and global gypsum output, it still caters convenient to transport by land than by to roughly 20 per cent of the world’s Increased participation of private sector other means. traded gypsum. Exports for fiscal 2017 was observed owing to stable economy, are 7.30 million tonnes, up from 5.65 wise governmental policies and trading Conclusion million tonnes achieved a year ago. partners’ confidence in the economy. This is a positive sign for Oman’s For instance, customs rolled out at the economy as non-oil exports serve as a Aluminium prices on the London Metal Port of Sohar an electronic “Bayan,” source of additional revenue, creating a Exchange (LME) touched a three-year or “single window” customs system to scope for expansion for new economy. peak of $2,246 a tonne in December quicken processing. As of now, the most demanded export 2017 than that of previous year. There products are from petrochemical and is increase in exports as cost of alumina Ithraa, country’s export promotion mineral industries. However, focus is because of inputs like petroleum coke agency which is known for conducting to diversify it to other segments as well. and coal tar act as cost push factor. market surveys of export markets, Trend indicates that non-oil products Aluminium and its products account for also participated in global exhibitions, are mostly demanded by neighbouring 0.4 per cent of its world exports. organised regular B2B meetings to gulf countries owning to lesser promote Omani products and thereby transport costs and increase in number Policy measures contributing to the growth of non-oil of infrastructure development projects. In the framework of Oman’s seventh exports. An annual visit programme Oman is researching on various ways to Five-Year Development Plan (2016-20), conducted for Omani manufacturers in raise its non-oil exports, concentrating the government intends to make big order to identify any export problems especially on untapped African changes by putting non-oil trade on top encountered by companies facilitated markets. The forecast of higher price of of its agenda to diversify the economy. better movement of goods and oil indicates that the country will look payments. forward to utilising this opportunity to The Sultanate’s focus has been to mobilise the additional surplus to fund increase non-oil export and to support Oman’s trade tariffs are the lowest the development of non-oil production this ambition they have taken measures among the GCC countries, providing industries, as well as channelising such as providing an array of incentives inward investors with a low-cost investments in enhanced oil recovery – provision of land at affordable trade environment. Investors enjoyed methods. INTERVIEW

HE Tahir bin Salim Al Amri, Executive President of Central Bank of Oman, talks to OER about the initiatives and policy measures to strengthen Oman’s banking ON A sector. Excerpts from an interview SOLID FOOTING

What are the new policy measures during 2017 despite the challenging taken by the Central Bank of Oman operating conditions. Provisional data to strengthen the banking sector and shows that total assets of the banking make it compliant with international sector stood at RO 31.5bn at the end best practices and standards? of 2017, registering a growth of 5.3 The Central Bank of Oman (CBO) per cent during 2017, while the credit continues to make significant inroads portfolio of banks grew by 6.4 per cent to ensure that its regulatory framework during the year to reach RO23. 6bn at and policies continue to cater to the the end of 2017. Similarly, the deposits changing operating conditions in Oman, rose to RO21.6bn at the end of 2017 while at the same time remaining registering a growth of 5.6 per cent compliant with the international best during the year. These growth rates are practices and standards. Some of lower than those of the previous year’s the new policies introduced over the rates, but remain commensurate with past few years include guidelines on the economic growth. sound compensation practices and correspondent banking relationships, The stability of the banking sector instructions on fraud risk management, 2109. Furthermore, Net Stable Funding remained intact as the banks remained policies to improve financial inclusion, Ratio (NSFR) standard is effective from well capitalised, profitable and fairly adoption of IFRS 9, a framework January 1, 2018 with the requirement liquid with low infection ratio. The to identify and deal with domestic set at a minimum of 100 per cent. non-performing loans (NPLs) of banks systematically important banks (D-SIBs), remained low, with an NPL ratio of only implementation of Basel III capital and Recently, a National Payment System 1.88 per cent reflecting strong asset qual- liquidity standards. Law has been promulgated which is all ity. The capital to risk-weighted asset ra- set to strengthen the payment system in tio (CRAR) of the banking sector was 17.9 Additionally, CBO has also issued Oman. A review of the extra regulations at the end of 2017 as compared to CBO’S guidelines on Regulatory Capital and is underway while the Banking Law is requirements of 13.25 per cent and Basel Composition of Capital Disclosure being reviewed to ensure that banking III requirements of 9.25 per cent. The Requirements under Basel III in sector is guided by legislation, which profitability of the banking sector also November 2013. Licensed banks in sufficiently reckons the changes in improved slightly with profit before tax the Sultanate are advised to maintain the financial sector landscape and of RO450mn during 2017, corresponding a capital to Risk Weighted Assets emerging challenges. Moreover, CBO is to return on assets of 1.47 percent and Ratio (CRAR) of at least 11 per cent in the process of finalising a ‘Resolution return on equity of 9.8 per cent. on an ongoing basis. In addition, Framework for Oman’ in line with they are required to maintain Capital recommendations of Financial Stability The policy and overnight rates in Oman Conservation Buffer (CCB) which is Board for handling episodes of orderly moved in line with the Fed Fund rates; being implemented in phases and would resolution of financial institutions however, liquidity in the banking sector reach 2.5 per cent when fully phased licensed by CBO. remained fairly comfortable with banks in. Liquidity Coverage Ratio (LCR) complying with both LCR and NSFR of Framework has been implemented. The How was the banking sector’s 215.9 per cent (CBO requirement: 80 per minimum required level of LCR which performance in Oman during 2017? cent) and 116 2 per cent (effective 2018: is 90 per cent at present will reach The banking sector in Oman has 100 per cent) respectively. Moreover, 100 per cent with effect from January continued to grow reasonably well the banks also maintained excess

22 July 2018 reserves of over RO590mn during 2017. consolidation, crude prices have risen inclusion, corporate governance, and The recent Eurobond issue of $6.5bn is from their lows of previous years and risk management. It is envisaged to expected to further support liquidity in have remained stable hovering around continue to keep abreast of global the banking sector. $60/barrel since December 2016. The developments and to fine-tune our new oil price range which is now better existing regulatory and suspensory How have Islamic banks and windows understood has allowed better fiscal norms. It is also envisaged that strengthened the banking sector in planning by the government. we shall continue to evaluate the Oman? appropriateness of adopting new Islamic banking operations began in Despite rising interest rates and standards that are introduced by Oman in December 2012. Required challenging macroeconomic conditions global standard setting bodies such amendments were made to banking law in view of the lower oil prices, the as Bank of International Settlements, and a comprehensive Islamic Banking banking sector in Oman is faring well, Financial Stability Board, Islamic Regulatory Framework (IBRF) was registering continued growth with Financial Services Board, Accounting issued to facilitate this new component strong capital, satisfactory asset quality and Auditing Organisation for Islamic of banking system. and robust profitability. Financial Institutions and International Accounting Standard Board etc. The differentiating feature of IBRF in The banking sector in Oman appears Oman is its focus on effective Sharia- to withstand the current operating In order to address the emerging compliance in all aspects, with the challenges. Our stress testing exercises challenges and to be in sync with the overall objective of creating true have indicated that the banks operating changing landscape of the financial Sharia-compliance perception among in Oman have remained resilient to sector, we have embarked on the process all stakeholders. Hence, CBO has paid a battery of rigorous solvency and of revising the banking law. Moreover, due attention to appropriate Sharia liquidity stress scenarios. in view of the current macroeconomic governance framework requirements in environment, we have reviewed the a comprehensive manner so that Sharia- extant prudential regulations governing compliance can be ensured effectively. the banking sector to ensure that The stability of the the regulations remain relevant the Being asset and real economic activities changing needs of the economy. After based, Islamic banking adds to real banking sector a thorough review, in March 2018, we economic development and helps in issued an array of circulars with a view financial inclusion by attracting faith remained intact as to strike the right balance between sensitive customers who rely on Islamic the banks remained growth and stability. These changes are banking’s Sharia-compliant practices. meant to streamline the regulations well capitalised, and to provide more room for banks to Islamic banking and finance products contribute to the diversifications efforts. are mainly asset or service-based and profitable and fairly It is expected that banks would positively the system relies, overall, on the idea of respond to these changes and access to profit-loss and risk sharing, on both the liquid finance will not be an impediment to the liability and asset side. Islamic banking growth of the real sector. activities, by virtue of their design, create closer link between various Please share your thoughts on the As mentioned earlier, we are at an economic activities that generate value initiatives planned by the CBO for the advanced stage of finalising a bank and facilitate economic development banking sector in 2018? resolution framework for orderly while fostering financial stability. The promotion of a dynamic and resolution of banks and in particular Performance of Islamic banking entities resilient financial sector that the identified D-SIBs. The existing over the past five years in Oman supports sustainable growth without Prompt Corrective Action Framework underlines the important role played compromising financial stability, a will be refined to work in tandem with by them in strengthening the banking robust payment and settlement system, the resolution framework. sector in the country. and prudent regulatory and supervisory architecture that inculcates good We also intend to further our work Has the challenging macroeconomic corporate governance standards and on feasible Sharia-compliant liquidity environment of the last couple of practices, is at the centre of the financial management tools, and a Sharia- years had an impact on Oman’s sector policy of CBO. compliant deposit insurance (takaful) banking sector? scheme for depositors of Islamic Well, as indicated earlier, the banking In this backdrop, CBO has been banking entities. Moreover, we are also sector in Oman continues to be resilient introducing several policy reforms for looking in to the aspect of facilitating despite challenging economic conditions. the banking sector, particularly in the the use of emerging technologies in Although the twin deficit persisted while areas of capital adequacy, liquidity, the financial sector by developing a the government is moving towards fiscal accounting standards, financial regulatory framework for FinTech.

COVER STORY

Shifting Landscape Oman’s tourism sector is getting a facelift with significant investment in hospitality infrastructure, prudent policy measures and effective international campaigns, in line with government’s 2040 strategy. Muhammed Nafie reports

BOX TO SHOW ONLY PLACEMENT AREA OF STICKER

NOT TO BE PRINTED 26 July 2018 country of breathtaking Middle East has been the largest source natural beauty interwoven market for Oman, with arrivals from with a kaleidoscope of the region growing at an annual rate history, legends and of 20 per cent between 2012 and 2017. adventures, the Sultanate The latest data shows that the growth in Aof Oman has tourism destinations that visitor numbers to Oman will continue, suit the taste of different categories of supported by strategic investment from tourists and visitors. At a time when the government as it turns to tourism to the country is bracing itself for a post- diversify its revenue streams. oil future, pursuing its diversification drives with a renewed sense of urgency, According to the Ministry of Tourism, the government is making tourism a the Sultanate experienced a 4.7 per cent central plank of its economic strategy, growth in the number of international with mega plans to enhance its appeal visitors in 2017, testament to the efforts among tourists from across the globe of the government to boost non-oil with a series of initiatives such as sectors as part of the Vision 2040. The better air connectivity, airport facility, Sultanate’s tourism revenue exceeded hotels and resorts, and e-visa facility. RO1.2bn in 2017, with a large share The whole idea is to help the country of the revenue coming from domestic mature from being an ‘emerging’ tourists. Says HE Maitha Saif Al Mahrou- tourism market into an established one qi, undersecretary of the Ministry of with a high-volume of repeat guests and Tourism, “The tourism sector in the a diverse range of feeder markets. The tourism sector Sultanate is witnessing a remarkable annual growth with statistical indica- An ambitious stride towards making in the Sultanate tors pointing out the increase in the tourism one of the most significant is witnessing a number of tourists and visitors; as well income generators in the Sultanate has as the launch of new tourism projects been the 2040 Tourism Strategy which remarkable annual and hotel facilities around the Sultanate provides a comprehensive blueprint reinforced by the governmental efforts for tourism development in Oman growth with in further developing the vital proj- and outlines a series of targets for the ects and the infrastructures related to country’s tourism sector. The strategy statistical indicators tourism, in addition to facilitating and unveiled by the Ministry of Tourism creating tourism related initiatives. This is a clearly defined and structured pointing out the comes as a part of the Ministry’s efforts road map for future growth aimed increase in the in implementing the first phase of the at making tourism one of the most tourism strategy in addition to inte- important economic pillars for the number of tourists grating and cooperating with different country’s future. The implementation sectors and institutes that are working of tourism strategy would avail more and visitors directly or indirectly with th ministry than 500,000 jobs by the end of 2040, – HE Maitha Saif Al Mahrouqi from within the tourism sector and with the total investment in the sector Undersecretary of the Ministry of Tourism other sectors as well.” expected to touch RO19bn of which only 12 per cent will be by the public HE Maitha adds that the ministry sector. The contribution of tourism has always been keen to participate sector to the GDP would range between between 2018 and 2021, which will be annually in international travel 6 to 10 per cent. driven by visitors from across the Gulf and tourism events where major region, which accounted for 48 per cent organisations and investors from all The country is investing heavily in its of guests in 2017. In addition, arrivals around the world gather in one spot to tourism and hospitality infrastructure from India (10 per cent), Germany exchange knowledge, experiences and as it aims to host seven million tourists (6 per cent), the United Kingdom (5 build bridges of common interests. by 2040, including 2.7 million in Muscat. per cent) and the Philippines (3 per According to a projection by Colliers cent) are also expected to contribute A fillip to the aviation International, tourism arrivals to Oman immensely to the growth, supported The recent opening of Oman’s most will increase at a compound annual by easy visa procedures and improved modern Muscat International Airport growth rate (CAGR) of 13 per cent flight connections. Historically, the is expected to further strengthen the COVER STORY

growth of aviation sector in the country. come, Madinat Al Irfan will have The state-of-the-art airport has a major positive national implications, capacity to handle 40 flights per hour contributing approximately RO400mn to with 86 check-in counters, 40 gates, the local economy. and 29 aircraft stands with passenger boarding bridges, as well as a new The eastern area (phase 1) currently control tower. being developed by Omran sits alongside Wadi Park just minutes from the newly Out of ten carousels for bag handling, opened Muscat International Airport. eight will be used for international It is a multi-use district adjoining flights. The decision to build a new the Oman Convention & Exhibition airport was taken after studies found Centre (OCEC), a world- class venue for that there could be a 40 per cent growth international conferences, trade shows in number of visitors to Oman by 2019. and concerts. Talking to OER about the current status of the phase 1, Peter The new terminal has a capacity to Walichnowski, CEO of Omran, says: handle 12 million passengers per “We have different projects going on annum, which can be scaled up to simultaneously. The first project is the 24 million, 36 million and 48 million Oman Convection and Exhibition Centre in different phases if needed. The (OCEC), which is currently 90 per cent new terminal will have the capacity finished. The construction of OCEC will to handle large aircraft such as the be finished 100 per cent by the end of Airbus A380 and the Boeing 747. The In the years to 2018. This will allow us to fully open existing terminal will be used for low- up to the international MICE market. cost carrier operations. The number come, Madinat We completed Crowne Plaza Hotel in of passengers at Muscat International 2017 and this year we will complete Airport exceeded 14 million in 2017, a Al Irfan will the Marriott Hotel which will support robust growth of 17 per cent over the the exhibition centre. We have recently previous year. have major signed a management agreement with AccorHotels to open the first ibis Styles Similarly, Salalah International Airport positive national in Oman.” also broke its record with a 24 per cent growth at 1.5 million passengers as a implications, He adds,“From a construction point of result of an increase in both domestic contributing view, we have finished 50 per cent of and international travel. Presently, the the phase 1. And the first building in Muscat International Airport is ranked approximately our business park, the headquarters in the top 10 airports in the Middle East, of Omantel, is under construction. We with an average annual growth forecast RO400mn to the are also talking to other companies to of 8 per cent. have their headquarters here. And we local economy hope the business park will begin to fill Apart from international airports up over the next couple of years. We – Peter Walichnowski in two major cities, there is a move CEO of Omran also have some pockets of residential, to attract tourists to the interior mix-use developments in between. regions by building airports and other We are talking to Omani developers infrastructure in Duqm and Sohar. and investors to participate in this as Among the planned regional airports, development of the tourism sector, has partners.” Duqm and Sohar airports have started been entrusted with strengthening and operations and the terminal buildings diversifying the national economy to Recently, Omran and Majid Al Futtaim are progressing well (detailed report on support Oman’s Vision 2040 through announced a strategic partnership to page 38). pioneering tourism infrastructure develop the western area (phase 2) of and lifestyle development across the Madinat Al Irfan. The joint venture A modern downtown Sultanate. Madinat Al Irfan is the will see the development of a vibrant Oman Tourism Development Sultanate’s largest urban development mixed-use community that will serve as Company (Omran), the executive arm project and is set to contribute to the new urban centre for Muscat. This of the government of Oman for the Oman Vision 2040. In the years to new partnership plays a major role in

28 July 2018 Oman national economic diversification the rapid development of the local locally, but across the region .It will agenda and reflects Omran’s strategic tourism industry and economy as a create a new urban lifestyle not yet seen role as a catalyst of investment that whole,” says Walichnowski. “We are in the Sultanate. forges solid partnerships with trusted already seeing this positive impact developers like Majid Al Futtaim to at Madinat Al Irfan, with the Oman Promoting Oman as a create sustainable urban destinations Exhibition and Conference Centre MICE destination and significant socio-economic benefits precinct, which is now making a With the opening of one of the largest to the Sultanate. vital contribution to Oman’s MICE convention centres in the region, the sector, serving as a centerpiece government is also strengthening the The new mixed-use community is for wide range of major local and country’s position as a leading MICE located at the western area of Madinat international events. “Working with (meetings, incentives, conferences and Al Irfan and spans over 4.5 million sqm. the Majid Al Futtaim team I have exhibitions) destination. The joint venture project investment no doubt we will create a fantastic value is estimated at RO5bn over a array of world-class experiences for Says Trevor McCartney, general man- period of 20 years and is anticipated the benefit of locals, residents and ager, Oman Convention & Exhibition to create more than 30,000 direct and international visitors alike”. Centre, “International conferences indirect jobs in the country. Centrally bring enormous benefit to a country located in Muscat’s urban corridor, the Upon completion in three key stages, which is why every destination in the development will become the gateway Madinat Al Irfan will feature more than world wants them and bidding is high- to Oman; creating a modern downtown 11,000 residential units comprising ly competitive - besides the economic for residents, businesses and visitors. villas, townhouses and apartments, impact and expenditure on accommo- 100,000 sqm of retail space, 700,000 dation, restaurants, airlines, ground “Our partnership with Majid Al sqm of office space, as well as a number transportation, visitor attraction etc., Futtaim is a clear demonstration of cultural and lifestyle offerings. The the economic benefits of hosting such of how Omran’s public-private development will serve as an integrated, events are often far outweighed by strategic partnership approach is sustainable and inclusive community, the resulting broader community and successfully bringing together the true to the values of Omani society. It strategic development.” highest standards of expertise and will cater to all segments of the local quality with local knowledge and community, providing a model for He adds, “Conference attendees are passion, which is now resulting in future urban developments, not just high on the list of visitors that Oman COVER STORY

wishes to attract as typically, they bring OCEC offers 1,100 hotel rooms while the in the coming season we will have an 2-3 times more economic value to a addition of new hotels – including the increase to nine weekly flights coming country than leisure travellers and they Anantara in Salalah and Jebel Akhdar- from European countries, primarily leave with a positive impression often is expected to add significantly to the Germany, Italy, Poland, Slovakia, resulting in return visits with their Sultanate’s room inventory by 2020. France and Russia. That didn’t exist families, colleagues or friends.” (Full five years ago, and we are continually interview on page 34). Other planned hotels include Muscat’s exerting efforts to introduce Salalah as first Novotel; and the 304-room JW a tourism destination to new European International conferences and Marriott, all located near the Oman markets, as seen with new French exhibitions also bring the opportunity Exhibition & Convention Centre. and Russian tourism in 2018.” (Full to showcase Oman to the world and lead Further, Starwood is developing a five- interview on page 44). to knowledge transfer and exchange, star W Hotel, as part of ongoing work at future investment potential, creation of Muscat’s Royal Opera House. Mina Qaboos Waterfront business to business opportunities, job Complementing its hotel pipeline, the creation and SME development. Besides, leading tourism infrastructure Sultanate has made significant invest- developer, Oman Hotels and Tourism, ments in other tourism infrastructure The rising number of internationally has committed to build 10 hotels across facilities. In yet another major initia- accredited hotels and beachside the country by 2021. tive, Mina Qaboos Waterfront project resorts is also testament to the sector’s planned in Muscat port will usher in a growing success. A number of major Transforming Salalah new concept in port developments in chains have recently announced new Muriya is adding an additional 175 the Sultanate. The new port concept is a hotels in Oman, driving the 12 per cent hotel rooms in Hawana Salalah by the kind of waterfront port catering to cruise compounded annual rate of growth end of 2018. The company has already ships, as well as investments in hotels, (CARG) over the next three years – from opened almost 1, 000 hotel rooms restaurants, cafes and so on. Omran 10,924 rooms in 2017 to 16,866 in 2021. between its Hawana Salalah and Jebel and Dubai-based DAMAC International, Hotel supply in Muscat more than Sifah (Muscat) destinations. Through inked a landmark agreement to redevel- tripled from approximately 2,900 to its partnership with the Ministry op Muscat Port into a world-class mix 9,600 rooms between 2005 and 2016. of Tourism, Muriya is transforming use waterfront destination. The capital This pace of expansion is also expected Salalah into a year-round tourism expenditure of the project is estimated at to be maintained moving forward, destination. Says CEO, Ahmed $1 billion. The old commercial harbour with almost 3,400 rooms currently Dabbous “Tourism in Salalah during is proposed to be transformed into an under construction and expected to winter was rather small and limited. integrated tourist port and lifestyle des- be operational by 2018, with a further Through our fruitful relations with tination that includes hotels, residences, 9,000 new rooms to open by 2021, international tour operators, Muriya as well as a dining, retail, leisure and depending on the pace of planned and has helped attract direct as well as community facilities designed to position on-hold projects. indirect flights from Europe, where Muscat as a top waterfront destination

30 July 2018 in the governorate. The proposed Mina history and modernity, of cultural tourism sector.” He adds, “The new Sultan Qaboos Waterfront project will heritage and urban infrastructure and Muscat International Airport, Oman include berths for cruise ships, a marina of natural beauty and best-in-class Convention & Exhibition centre are for super yachts and leisure ports, 4 and services is what makes today’s Oman one of the biggest boosts for the 5-star marina hotels, hotel-operated a tourism destination of choice for tourism sectors. The opening of the branded residential apartments, water- international travellers. airport allowed the airlines to open side restaurants, cafes and boutiques, more flight destinations which means conference and banquet facilities, However, although Oman has one more guests to us and more visitors entertainment and cultural facilities, of the most diverse environments in to Oman while the opening of Oman fisherman’s wharf, and historic souq. the Gulf region with various tourist Convention & Exhibition Centre has a The government is planning similar attractions and is particularly well sizeable impact on Oman’s economy developments in two other locations – known for cultural tourism, the and the MICE segment in particular. Khasab and Shinas. Sultanate must adapt to a constantly The relaxation of visa requirements changing world. Says David Faull, is encouraging longer stays, and Khasab features a modest-size port general manager of the newly opened visits to multiple regions and that already attracts growing numbers Sundus Rotana Muscat, “When it attractions. Other developments under of cruise ships. Shinas, on the other comes to our tourism and hospitality construction across Oman include hand, has a jetty that primarily caters to sector there are many things like adventure destinations and parks and fishing boats and dhows. visa restrictions, direct flights, entertainment centres.” (Full interview Omanisation rates, infrastructure that on page 46) Upgrading the system are considered the key challenges Oman relied a lot on domestic facing the growth. Oman’s Ministry In short, major upgrades and projects tourism recently but this is of Tourism has identified these and are definitely the way to go and Oman changing as we see more and more other important challenges and is working on the tools needed to international travellers visiting the are working hard hand in hand fulfil the future goals to boost tourism Sultanate. An exquisite blend of with all of us to develop further the growth. NOT ALL BUSINESS PLANS ARE PREPARED FOR DISRUPTIONS. 10 SEP 2018 I Oman Ballroom, Sheraton Oman

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Placing Oman in international spotlight Since opening its doors in October 2016, Oman Convention & Exhibition Centre (OCEC) has hosted over 200 local, regional and international events. Excerpts from an interview with General Manager, Trevor McCartney

Can you talk about the operations and major milestones of OCEC since opening its doors in October 2016? Since opening its doors in October 2016, Oman Convention & Exhibition Centre (OCEC) has hosted over 200 local, regional and international events. Last year alone, we hosted 143 events including the first international event, ACI Airport Exchange 2017, which brought the world’s airport community to the Gulf for the largest event in the Airport Council International’s calendar, and just ahead of the anticipated In addition to attracting regional and another example of a home grown opening of the new Muscat International international events OCEC has a role to event that returned for its second Airport. The Second UNWTO/UNESCO cultivate events for the local community edition this year. Several vibrant World Conference on Tourism and and a major event was introduced in activities attracted visitors such as: an Culture closely followed, placing Oman’s December last year, when the creation indoor football field, table tennis and rich heritage in the world’s spotlight of a festive themed “Winter Village” PlayStation championships for Sports with over 45 ministers from around was implemented in conjunction Layali; a dedicated area for kids with a the globe in attendance. This year, we with Omran. The entire outdoor fun zone and “Food Layali” with OCEC anticipate 270 events which comprise garden was transformed into a festive transformed into a food festival in a variety of exhibitions, weddings, scene complete with wooden chalets partnership with local restauranteurs. meetings, conferences and live events. supporting local vendors, realistic looking “snow” on all the landscaping, How are you growing your exhibition A key purpose of OCEC is job creation children’s activities of snowball fights portfolio to attract more regional and in addition to having 65 permanent and games, an ice rink, musical shows, and international conventions? What staff members of which 78 per cent are and winter specialities to eat. were the major international events Omani, many of our activities create OCEC hosted since its opening? opportunities for a myriad of other Layali Ramadan, “The Place to Eat, We have a very strong working organisations and stakeholders in Oman. Shop and Rejoice this Ramadan” is relationship with the Ministry of

34 July 2018 Tourism and in particular, the Oman five exhibition halls that feature 22,396 296 keys, five dining outlets, a fitness Convention Bureau and we work closely square metres of column-free exhibition centre, an outdoor pool with views with them to implement a range of space and 10 hospitality suites as well a overlooking a Wadi (a natural waterway) collaborative initiatives specifically multi-storey car park with a capacity for and its very own Wadi bar for guests targeting the regional and global 4,000 vehicles. These new multi-purpose to enjoy an end-of-day beverage while conventions, exhibitions and the spaces are ideal for plenary sessions, looking over the nature reserve that is a meetings industry. conferences, concerts, performances haven for Oman’s exotic birdlife. and gala dinners. With the new areas We make face-to-face sales visits to a spanning 4,576 square metres, the total Please elaborate on OCEC’s targeted and qualified database – locally, current event space has now reached campaigns and initiatives to promote regionally (GCC) and internationally; 48,632 square metres. MICE in Oman? attend Business Events Trade Shows The team at OCEC together with around the world e.g. IMEX and IBTM OCB has spent some time already in World and undertake industry partner- working with and helping to develop ship activities with key international the local association market in Oman bodies such as ICCA, PCMA and UFI. A key purpose and have encouraged leaders and subject matter experts to bid for the We work in close association with local, of OCEC is job international association conferences international and regional associations creation and in in their field. Oman is lucky in that the and develop local counterparts in local association market is very strong preparation for bidding to host these addition to having especially in the fields of healthcare, prestigious events. In addition, we heritage, culture and tourism, work with and nurture relationships 65 permanent staff infrastructure and logistics. with local, international and regional exhibition organisers and Live Event members of which Persistent promotional activities and Companies to grow existing business strong Omani leaders in their respective and secure future exhibitions and live 78 per cent are fields has led to our recently winning 18 events for the centre. Omani, many of regional and international association conferences with a total economic When will the final stage of OCEC be our activities create impact the country of RO22.5mn. completed? What is the current status of the project? opportunities for The number of association meetings Oman’s business tourism product has in Oman has doubled in 2017 as just been enhanced with the recent a myriad of other recorded by the International Congress opening of The Oman Convention & and Convention Association’s (ICCA’s) Exhibition Centre (OCEC)’s convention organisations and recently released statistics and Oman facilities. Part of the new Madinat Al is now placed 2nd in the Middle East Irfan urban development in Muscat, stakeholders in and 86th in the world for the number of the purpose built centre now offers Oman international meetings hosted in 2017. two ballrooms (including the largest ballroom in Oman), a 456 tiered- On the exhibition side, we have just seat theatre and 22 meeting rooms won the UFI Global Congress for 2020 in addition to the already opened In a few months’ time, the final part and will be bringing many of the global Exhibition Centre. of the jigsaw; the stunning 3,200-seat exhibition organisers to see Oman and theatre will open its doors for the first the potential for future exhibitions for The Junior Ballroom can accommodate performance. themselves. UFI is the leading global 540 guests for a banquet or 1,000 guests association of the world’s tradeshow theatre style while the Grand Ballroom The Precinct provides the entire and exhibition organisers and selected can seat 1,200 people for a sumptuous infrastructure necessary to host partners of the exhibition industry. The dinner or be split into seven breakout successful international, regional and event brings together more than 500 areas for a convention. Both ballrooms local events and includes a JW Marriott industry professionals from more than feature a column-free space with subtle Hotel (five star) linked directly to OCEC 50 countries. This year, it will be hosted Omani design details as well as the very and the newly opened Crowne Plaza in St. Petersburg, Russia, followed latest in audio-visual support. These OCEC that opened last November. The by Bangkok, Thailand in 2019 before new areas complement the existing four-star Crowne Plaza OCEC features coming to Oman in 2020! COVER STORY

Oman Tourism College attaches great importance to making the academia more INDUSTRY- compatible with the industry requirements. Excerpts from an interview with Dean, FOCUSSED Dr Abdulkarim Al Mughairi. Muhammed Nafie reports

Tourism is one of the vital sectors in Oman’s economic diversification plans. The government has outlined an ambitious tourism development strategy. How are your college’s vision and mission aligning with the objectives of the government’s strategy? Our college’s vision and mission are very much aligned with the govern- ment’s Tourism Strategy 2040. We are working very closely with all relevant stakeholders towards achieving the goals of this strategy. We have been equipping our college with the right tools, procedures and facilities as well reviewing programmes required to meet the objectives set by the govern- ment. We are focussed on bringing out skilled and qualified young Omanis who can compete with expatriate profession- als in the job market.

Can you talk about the various measures taken to enhance students’ learning experiences and your partnership with foreign countries? REDglobal Foundation, etc. Right now, we have teamed up with For our academic programme, we have various tour operators as well as the tied-up with Dublin Institute of Technol- The college is running from time to time hotel industry who have committed ogy. We offer diploma and bachelor’s various short courses related to the hos- themselves to hire our students on degree in three different specialisations: pitality sector and the tourism industry completing various short courses. We tourism marketing, tourism & hospitali- in general. The duration of these courses offer tour guide training focusing on ty management and event management. range from one week to eight months to different languages such as English, For our vocational and professional one year, covering a wide range of areas German, French etc. We have also programmes, we have partnered with such as front office, culinary, food safety, partnered with international training various international awarding bodies air ticketing, tour guide etc. providers and are open to do some of such as High Field, Lobster Ink, The the training outside Oman, if required.

36 July 2018 Is the local tourism market big to the occupational standards and guest lecturers, and a lot of other enough to employ all your graduates? the requirements of the employers functions which provide our students Oman has got a fast growing tourism and approved by the Ministry of the needed exposure and the industry industry and the demand for talented Manpower. In summary, there are a set expectations. These actions ensure that workforce is also on the rise. The 2040 of criteria that we have to demonstrate the college meets the industry needs Tourism Strategy aims to create 500,000 to the Ministry of Higher Education for as well provide the graduates with jobs. Tanfeedh aims to create 21,000 academic programmes or the Ministry of the skillset and the needed industry jobs by 2020 of which 11,000 are for Manpower for vocational programmes exposure. Omanis. All these job opportunities in order to obtain approvals. need educated, well-trained and Can you talk about your tourism qualified Omani candidates. Oman awareness programme and how Tourism College and other training effective has it been in encouraging providers in the country are required Oman has got youngsters in taking a career in to play their role in providing education tourism? and training. The local market is big a fast growing The number of the students who attend- enough to absorb graduates from our ed our awareness programmes is a clear college but also graduates from other tourism industry indication that there is a willingness to education and training providers learn and know more about the sector that are existing in Oman. We at OTC, and the demand for both from the students and the schools. strive to develop students’ knowledge talented workforce However, it is too early to talk about the and skills in order to be successful effectiveness of these events. professionals in a rapidly changing is also on the rise. global tourism market. What are the challenges facing your The 2040 Tourism college? There has always been a mismatch In Oman, Oman Tourism College is between the requirements of Strategy aims to the only college which is 100 per cent the industry and the skillsets of dedicated to offer tourism and hospi- the students coming out of the create 500,000 jobs. tality programmes. In order to provide universities and colleges? How are Tanfeedh aims to education and training for candidates you going to address this concern? according to the number of job op- How are you making the academia create 21,000 jobs by portunities projected in the Tourism more compatible with the market? Strategy 2040 or Tanfeedh programme, Matching the skillsets required by 2020 of which 11,000 then we definitely need to improve the the employers with those taught in facilities and increase the number of educational institutions is extremely are for Omanis programmes offered in order to meet important. We at OTC are consulting the growing demands. The process of stakeholders, whenever we are in the developing new programmes is time-de- process of developing or reviewing our Can you talk about the measures manding. This may require affiliation academic programmes and the various taken to make education more with international institution of higher long and short-term courses. We have industry-centric? education specialised in tourism and always been in full consultation with It all has to do with engaging the hospitality. This means additional finan- the employers, in particular when various stakeholders which involves cial burdens on the college. developing new programmes. We also several stages. First, in terms of consult other stakeholders and relevant programme offered, they should meets Another challenge is to make tourism government entities. the requirements of either the Ministry jobs more attractive in terms of pay for of Higher Education (for academic our graduates, in comparison to other Our academic programmes are approved programmes) or the requirements of the sectors such as oil and gas or banking. by the Ministry of Higher Education, only Ministry of Manpower (for vocational/ Generally speaking, if the employers if they meet their requirements and if all short courses training programmes). are not willing to offer good packages, the relevant stakeholders are consulted, We involve the subject matter experts, tourism graduates will migrate to other such as employers and parents. Accurate in particular the potential employers, lucrative sectors. This issue cannot data are provided in terms of the from the private sector. Secondly, in be addressed by the college only. We number of job opportunities. For the terms of delivery of the programmes, need to have collective efforts by the vocational and short training courses, we are involving the employers through government and stakeholders to find a they should be developed according internship, on-job training, industry solution to it. COVER STORY

WINGING ITS WAY FORWARD The recent opening of Oman’s most modern per cent, where the cargo volumes in 2017 exceeded 200,000 tonnes com- Muscat International Airport is expected to pared to 162,000 tonnes in 2016. The growth was mainly due to an increase further strengthen the growth of aviation in transfer traffic cargo. sector in the country Salalah has a favourable geographic position as the second busiest sea port mani airports have achieved Transit passengers at Muscat in the Middle-East and it is expected a robust growth in both International Airport increased by that by enhanced collaboration with passenger traffic and flight 33 per cent, exceeding 6.44 million cargo stakeholders to develop sea-air movement in 2017, which passengers that strengthened the transportation services, airfreight Owere in line with the three-pronged airport’s hub strategy. The biggest volume will be on growth path in the aviation strategy of the government. markets to and from Oman are GCC coming years. Reflecting the trend, the number of countries representing 35 per cent, passengers at Muscat International Indian subcontinent 35 per cent and In fact, the recent opening of Oman’s Airport exceeded 14 million in 2017, a Europe by nearly 10 per cent. In most modern Muscat International robust growth of 17 per cent over the addition to Oman Air’s rapid growth Airport is expected to further previous year. especially in transit passengers, major strengthen the growth of aviation foreign carriers showed positive sector in the country. The state-of-the- Similarly, Salalah International Airport growth numbers. Qatar Airways added art airport has a capacity to handle also broke its record with a 24 per cent frequencies to both Muscat and Salalah 40 flights per hour with 86 check-in growth at 1.5 million passengers as a as well as the airline made a connection counters, 40 gates, and 29 aircraft result of an increase in both domestic with Sohar Airport providing a link to stands with passenger boarding bridges, and international travel. Additionally, and from Doha. The third airline that as well as a new control tower. Out of flight movements increased to double connected with Sohar Airport season ten carousels for bag handling, eight digits in Muscat International Airport was Air Arabia. will be used for international flights. at 11 per cent exceeding 114,000 movement, while Salalah International Freight transport at Muscat Internation- The decision to build a new airport Airport had 14,381 flight movement. al Airport enjoyed positive growth of 24 was taken after studies found that

38 July 2018 there could be a 40 per cent growth in In fact, the heavy investments in has grown exponentially, among number of visitors to Oman by 2019. both Oman Air fleet and airport business and leisure passengers, not Planning for the new $1.8bn airport infrastructure are in line with the only increasing tourism traffic and has spanned almost a decade but country’s ambition to catch up with revenue but also promoting vital trade the first phase of construction began neighbouring Dubai or Qatar to attract a agreements between the two countries. in December 2014, which included large number of transit passengers from In 2016, the air services agreement a modern terminal building, a new across the world. between the governments of Oman and runway, air traffic control tower and India was revised, when the number civil aviation building. National carrier of weekly seats was increased by 6,258 National carrier Oman Air is currently seats per week to 27,405 seats for both The new terminal has a capacity to embarking on a fleet and network countries. handle 12 million passengers per expansion programme, which will see annum, which can be scaled up to 24 the airline operate up to 62 aircraft The national airline is also in talks million, 36 million and 48 million in to around 60 destinations by 2022. with planemakers Airbus and Boeing different phases if needed. The new The airline is committed to constantly to expand its wide-body fleet to 25 terminal will have the capacity to improving its product, while undergoing jets. The airline currently has 16 handle large aircraft such as the Airbus its dynamic fleet and network wide-body planes – six Boeing 787 A380 and the Boeing 747. The existing expansion, developing its brand Dreamliners and 10 Airbus A330 – but terminal will be used for low-cost and offering its guests an unrivalled hope to increase that number to 25. carrier operations. experience as part of its mission to This will involve replacement of some become the best. existing Airbus planes, and adding Attracting transit passengers nine more new jets. Presently, the Muscat International Airport is ranked in the top 10 airports With the opening of the new airport, in the Middle East, with an average Oman Air has enough airport facilities annual growth forecast of 8 per cent. With the opening at Muscat and Salalah, which will help The government is looking at attracting it offer additional flights and right airlines not only to Muscat, but also of the new airport, connections. Apart from fleet and for local travel as regional airports Oman Air has new destination, the national airline need activity and Oman Air alone will is investing in products on board, not be able to operate all the routes. enough airport infrastructure, information technology Among the planned regional airports, systems, and for training people. Duqm and Sohar airports have started facilities at Muscat operations and the terminal buildings Besides, the newly established budget are progressing well. and Salalah, airline – Salam Air – started its operation in 2017, mainly focusing on The Duqm airport’s modern passenger which will help it the domestic sector connecting Salalah terminal building, built by Larsen & Tou- offer additional and Muscat, as well as international bro, will have a capacity of 500,000 pas- routes to the UAE, Saudi Arabia and sengers per year. The airport will have flights and right Pakistan. Salam Air was also the a 37 meter high air traffic control tower first airline to enter to Sohar Airport and an air cargo terminal equipped connections connecting Salalah and Sohar. As per to handle 25,000 tonnes of cargo per the plan, Salam Air will operate as annum. With Qatar Airways launching many as 12 Airbus A320 narrow body several services to Sohar recently, the jets by 2020, as it aims for profitability airport activity started picking up. Oman Air plans to launch three new by the end of 2018. routes this year to Istanbul (Turkey) Like the Duqm regional airport, the in June, Casablanca (Morocco) in July, It plans to increase its fleet to between terminal building (which can handle and Moscow (Russia) in October. The 10 and 12 A320s by 2020 from the half-a-million passengers per annum) new routes will also enable Oman three it has leased from Chile’s LATAM at Sohar airport is progressing well. The Air’s passengers to explore three of the Airlines. Promoted by Muscat National state-owned Oman Airports Manage- world’s most exciting cities. Besides, Development and Investment Company ment Company operates and manages there are plans to expand routes to (ASAAS), an investment holding firm five airports – Muscat International Indian cities from Muscat. Oman of Oman government, Salam Air was Airport, Salalah Airport, Sohar Airport, Air first launched flights to India in formed to meet Oman’s rapidly growing Khasab Airport and Duqm Airport. the 1990s and the demand for seats demand for air traffic. Brilliant Performance Deserves a Star-Rating

AIWA SPECIAL AWARDS MOST INNOVATIVE START-UP EXCELLENCE IN SME DEVELOPMENT MOST PROMISING ENTREPRENEUR EXCELLENCE IN BUILDING NATIONAL TALENT EXCELLENCE IN CORPORATE SOCIAL RESPONSIBILITY EXCELLENCE IN CORPORATE LEADERSHIP INNOVATION & TECHNOLOGY AWARD CEO OF THE YEAR YOUNG BUSINESS LEADER LIFETIME ACHIEVEMENT 7 August 2018 i sherAton omAn hoteL

omAn’s top performing businesses wiLL be honoured soon. The 8th Edition of AIWA Awards, is gearing up to recognise the MSM-listed Small Cap, Mid Cap & Large Cap enterprises who have delivered an inspirational performance in 2017, and Omani Corporate role models for the next generation.

For partnership enquiries, please contact Navneet on 99210688 or [email protected]

VALIDATION PARTNER KNOWLEDGE PARTNER PRINT

www.alamaliktisaad.com alamaliktisaad alamaliktisaad COVER STORY

Could you talk about Salam Air’s operations, performance and major milestones since its launch? SalamAir has in its short lifespan of one and a half years flown over half a million passengers to various Small is big destinations within the country and abroad as well. This year we hope to cross the one million mark. On many of As a no-frills, low budget airline, Salam our routes that we have opened up, for Air has proved beyond doubt that to excel, example Sohar-Salalah, we have created a niche market with our flights and to the sky is not the limit. Excerpts from an many of the other GCC countries. interview with CEO, Capt Mohammed As of now, the performance of the company can be termed as extremely Ahmed. David Solomon reports dynamic. Sometimes market forces bring about contrary results, not really what you expect. flying three times a week to Tbilisi and Our fleet expansion is going ahead as Let’s take for instance fuel prices. The thrice a week to Baku directly from per our schedule and by August this general impression that gains ground Muscat. The SalamAir network now year we intend to add another two when fuel prices go down is that you consists of 13 destinations including aircraft to our fleet. lower your major cost, so it’s good for Muscat, Salalah, Suhar, Dubai, Doha, the airlines. When fuel prices drop, Jeddah, Karachi, Multan, Sialkot, and Regarding Omanisation, despite being the economy actually slows down. It Shiraz. For our GCC network, we such a young and fledging airline, we may bring in a measure of short term currently fly twice a day to Dubai, daily have already achieved 64 per cent of happiness. But that is all. In truth, lower to Doha, and daily to Jeddah. Omanisation. As part of our ongoing fuel prices have a detrimental impact on policy, we are also trying to attract every aspect of the economy. About Flights to other countries outside and induct more Omanis into the of the GCC, SalamAir is now flying to workforce. Apart from that, we have On the contrary, when fuel prices go three destinations in Pakistan, including spared no effort to ensure that the up, people at large are most likely to Karachi, Sialkot and Multan with twice best qualified experts from among the complain and grumble about the higher a week to Karachi, twice a week to expatriates are recruited by us. But, prices they have to pay for fuel. But Sailkot, and twice a week to Multan our number one priority has always in the long term, higher prices bring respectively. been to attract as many young Omanis in higher remittances and the extra as possible. income in general does a lot of good to We plan to open up a flight to Dhaka, the economy. the capital of Bangladesh very soon. We What is SalamAir doing to promote are already flying three times a week to Oman as an international travel This is something that we are really Shiraz, Iran and are now looking into destination? proud of. I think we have managed the possibility of adding flights to Iraq The opening of the new airport has to maintain a competitive edge and and Sudan. Basically, what we are doing opened up many possibilities. It advantage with the number of flights is that we are trying to open up and tap has made it all the more important we operate within the Sultanate and to into markets that have not been looked for all of us to use the state-of-the- various destinations abroad. at before. We have to encourage people art infrastructure in a capable and from there to come here as well. responsible manner, to improve Give us a brief on your expansion our functioning and to ensure that plans (fleet, routes, people and A lot of work has to be done on the passengers derive the maximum benefit infrastructure)? infrastructural front. But we are from it all. We have recently launched our latest tackling one thing at a time, which in destinations to Tbilisi in Georgia and my opinion is the smartest way to move The National Tourism Strategy 2040 Baku in Azerbaijan. SalamAir will be ahead and move up. is looking to double the number of

42 July 2018 international visitors to 5 million. opportunities with an open mind and complement each other in the jobs we How is SalamAir, Oman’s first low- work in a constructive and positive both do on the ground and in the air. cost airline going to contribute to manner towards our goals. The tourism achieve these objectives? potential in the Sultanate has not been We are in business so we like to Low budget airlines can carry larger tapped properly yet. But all the players do good for the business and for volumes of passenger and therefore in this field have to work together the country. The infrastructure is making a direct impact on revenue in a spirit of true competition and growing. I hope we can meet and generation. We have to go where camaraderie. exceed those targets. people would be attracted to go. At the same time, we have to market Oman What are the major challenges facing With regards to pricing, we have to as a prime tourist destination. Despite you? How are low-cost airlines faring work much harder to change the the fact that we are a ‘No-frills Airline’ in the Omani and regional markets, people’s mindset with regard to last we have managed to create a niche in compared to legacy players? minute purchase of tickets and how this the market. But we still have a long Competition is a good thing because radically affects the price configuration. way to go. it brings out the best in all. We are In any case, what we have been trying sometimes compared with legacy to stress at all times is that our prices We have to look at challenges and carriers as competitors, yet mostly we are market-competitive. COVER STORY

The National Tourism Strategy 2040 is looking to double the number of international visitors to 5 million, create 500,000 job opportunities and increase the contribution of tourism sector to 10 per cent of GDP. How On the cusp is Muriya, one of Oman’s leading real estate and tourism developers, going to contribute to achieve these objectives? With over ten years of solid presence of change and almost 1000 hotel rooms opened between both our Hawana Salalah and Jebel Sifah destinations, Muriya takes Through a solid partnership with Oman’s pride in being the largest single private Ministry of Tourism, Muriya has succeeded sector contributor to four and five-star hotels in the last five years. in transforming Salalah into a year-round

Our efforts extended beyond benefitting tourism destination, as opposed to a seasonal our own destinations. We are not destination during the months of Khareef. only building hotel rooms to expand Oman’s tourism sector, but through a Excerpt from an interview with CEO, Ahmed solid partnership with Oman’s Ministry of Tourism, we have succeeded in Dabbous transforming Salalah into a year-round tourism destination, as opposed to a seasonal destination that was primarily expanding and improving in the communities with the economic an attraction to Gulf citizens during the standard of offerings. As such, we are benefits the sector has delivered. Our months of Khareef. continuously contributing to the overall projects due to their developmental tourism growth of Salalah at large. nature, are contributing to job creation Tourism in Salalah during winter was well beyond the direct employment rather small and limited. Through our The strong, uninterrupted growth in within our companies and hotels. fruitful relations with international tour tourism which Salalah has enjoyed Omani entrepreneurs, armed with operators, Muriya has helped attract year-on-year is a clear indicator that smart ideas, are developing flourishing direct as well as indirect flights from our efforts are bearing fruit, spurring medium size businesses in our projects. Europe, where in the coming season we job creation, creating opportunities As we continue to grow, we look will have an increase to nine weekly for SMEs and empowering local forward to adding more local SME flights coming from European countries, partnerships and helping the growth of primarily Germany, Italy, Poland, existing ones. Slovakia, France and Russia. That didn’t exist five years ago, and we are Could you give us an overview of continually exerting efforts to introduce Our focus is largely Muriya’s investments for developing Salalah as a tourism destination to new the various tourism projects in European markets, as seen with new on investing in Muscat and Salalah? French and Russian tourism in 2018. Our focus is largely on investing in the the Sultanate and Sultanate and supporting its growth into This influx of European tourists is not a major hub for tourism in the MENA only benefitting the 900+ hotel rooms supporting its region. That has been our target from in our Hawana Salalah destination, growth into a major the outset and through the $650mn but more than half of those flights we have invested, we are continually that we started negotiations with are hub for tourism in striving to work alongside Oman’s carrying tourists to other 4 and 5-star government. hotels in Salalah. In light of this, the the MENA region hotel capacity in Salalah is continually Needless to mention that this progress,

44 July 2018 and continued financial investment by our shareholders, Orascom Development Holding and OMRAN, occurred during a difficult international economic climate, which witnessed the economic crisis, the Arab Spring and the regional oil crisis. This has made Muriya one of the few investors in Oman’s tourism that continued to invest during these difficult times. For us to succeed in continuing to achieve is in itself something that we are proud of. Our investments have enabled us to operate 1000 hotel rooms, welcome hundreds of thousands of hotel guests annually, and empower thousands of direct and indirect jobs that continue to grow with the growth of our tourism destinations.

What are the major challenges facing Oman’s tourism sector? Oman’s government has been following a strategic diversification plan, something that Muriya has been committed to since our establishment. Following this vision, Oman’s infrastructure, innovation and investment in tourism, has, and will continue to reach new heights, and the government’s role is a fundamental pillar of the private sector’s success in catering to the burgeoning tourism industry. As such we are confident that Oman’s government will continue efforts in ensuring that the tourist experience is up to par with international tourism destinations from the onset, including visa issuing, flight bookings, on-arrival airport experiences and infrastructure support.

What is Muriya’s future outlook? We are adding an additional 175 hotel rooms in Hawana Salalah by the end of 2018. Additionally there are sub-developers and investors who believe in the success of our destinations and are investing in the tourism offerings of our projects. On the real estate front, we are launching new residential neighbourhoods in both our Hawana Salalah and Jebel Sifah projects. COVER STORY

Unlocking Oman’s tourism potential Sundus Rotana Muscat has mapped out its future with focus on creating employment opportunities for Omanis and contributing to the Sultanate’s 2040 tourism strategy, says General Manager, David Faull

Sundus Rotana opened its door in late 2017. Could you talk about the operations and some of the unique offerings of the hotel? Sundus Rotana is part of Rotana, one of the leading hospitality management companies in the Middle East, Africa and Turkey. The hotel is located minutes away from the new Muscat International Airport and offers its guests unforgettable experiences. Characterised by modern architecture and cutting-edge facilities, Sundus Rotana includes 215 stylish rooms and suites, six flexible meeting and conference rooms, in addition to an elegant ballroom and Bodylines Fitness & Wellness Club fully equipped with a gymnasium, swimming pool and steam rooms. Fulfilling the Rotana legacy of culinary excellence, the property also features three signature restaurants including the Lobby Lounge café, Ginger All-Day Dining serving an international buffet complemented by an à la carte menu and a well-known Taste of Rotana Friday Brunch. The hotel’s signature restaurant is the award-winning, Teatro restaurant which brings the best flavours of Japan, Italy, India, Thailand and China to Muscat. Just recently, the hotel added Fumo By Ginger – a stylish tent by the pool area serving food, drinks, shisha and currently streaming live the World Cup on a large screen.

What is Sundus Rotana’s future outlook? Sundus Rotana is a corporate/leisure hotel and we expect to do well in both sectors. Our proximity to the airport is a great benefit for us as it is convenient for transit passengers. The hotel has some great components to feed all markets. We are a great stopover for large tourist groups who will be

46 July 2018 staying over in Muscat. With the existing that are considered the key challenges Rotana’s current objective is to ballroom and meeting rooms, the hotel facing the growth. Oman’s Ministry of expand its customer base and increase is hosting many Meetings, Incentives, Tourism has identified these and other occupancy levels by introducing Conventions, and Events (MICE) activities important challenges and are working facilities that connect our guests as well as social events like weddings, hard hand in hand with all of us to to Muscat. Drawing on the brand’s birthdays etc. We are launching an develop further the tourism sector. The expertise, we have mapped out Explore Muscat tour with beach access new Muscat International Airport, Oman the property’s future with more for our guests. This way the guests will Convention & Exhibition centre are one employment opportunities for Omanis have an opportunity to see Muscat’s of the biggest boosts for the tourism as well as the introduction of award- main landmarks and spend a day on the sectors. The opening of the airport winning services that will raise our beach while staying with us. Our strategy allowed the airlines to open more flight contribution to the Sultanate’s 2040 will focus on cementing Sundus Rotana’s destinations which means more guests tourism strategy. To that end, we are position as the ideal host in the Omani to us and more visitors to Oman while already making headway raising market through debuting compelling the opening of Oman Convention & Omanisation levels, nurturing the concepts and creating the perfect Exhibition Centre has a sizeable impact growth of high-potential Omanis, experiences for our guests. on Oman’s economy and the MICE and creating a pool of hospitality segment in particular. The relaxation of professionals who will support the What are the major challenges facing visa requirements is encouraging longer industry’s development. We also see a Oman’s tourism and hospitality stays, and visits to multiple regions and surge in traffic with the recent opening sector? attractions. Other developments under of the new Muscat International Oman has one of the most diverse construction across Oman include Airport. This terminal unlocks further environments in the Gulf region with adventure destinations and parks and Oman’s tourism value and leads to an various tourist attractions and is entertainment centres. Major upgrades increase in visitor numbers. Such an particularly well known for cultural and projects are definitely the way to infrastructural milestone is boosting tourism. However, as every country, go and Oman is working on the tools traffic to successful events such as Oman must adapt to a constantly needed to fulfil the future goals boost the NBO Golf Classic Grand Final, changing world. Oman relied a lot on tourism growth. the Marathon, Tour of Oman, etc. domestic tourism recently but this is which successfully accommodated. changing and we see more and more How is Sundus Rotana going to boost Our strategy will focus on cementing international travellers visiting the the Sultanate’s tourism prospects Sundus Rotana’s position as the ideal Sultanate. When it comes to our tourism and contribute towards enhancing host in the Omani market through and hospitality sector there are many the capacity of the tourism sector in debuting compelling concepts and things like visa restrictions, direct general? creating the perfect experiences for flights, Omanisation rates, infrastructure Like any new property, Sundus our guests. LUXURY PERSONALISED SERVICES Barr Al Jissah has recently launched a host transforming the industry and setting a of exclusive lifestyle services for home benchmark for what a home owner can expect of an ITC as luxurious as Barr Al owners at its integrated tourism complex Jissah.”

The new luxury lifestyle service is available for all current and future home owners at Barr Al Jissah. The 24- hour assistance will offer services from grocery shopping, housekeeping and transportation to outdoor adventure and event planning handled by a dedicated team from Barr Al Jissah. Furthermore, the services will be available via a secure and personalised mobile application accessible by every home owner.

In addition to the lifestyle services, purchasing a home at Barr Al Jissah also comes with a host of other exclusive and exceptional lifestyle benefits. These include direct access to the luxury amenities provided by Shangri-La Barr Al Jissah Resort & Spa and Shangri-La Al Husn Resort & Spa with special rates, as well as access to the exclusive marina facilities of Barr Al Jissah. The latter also includes access to the members-only Al Mina Yacht Club and its facilities. The Yacht Club, which is currently under construction, will include a new dive and sailing centre, private beach, two saltwater infinity pools and a unique beachfront zone. Al Mina Waterfront Residential Development will also feature a one-of- a-kind upscale marina-side boardwalk with boutique retail outlets and al- fresco dining. Firas Matraji, CEO, Barr Al Jissah “Further adding to the exclusivity of being a home owner at Barr Al Jissah, arr Al Jissah recently Commenting on the new service, we have recently signed a partnership announced the launch of its Firas Matraji, CEO of Barr Al Jissah with Oman Arab Bank to offer its exclusive lifestyle services said, “Barr Al Jissah is not just about range of exclusive ‘Elite’ private for home owners living at the the homes and the destination, it is banking services, which includes a Bluxury integrated tourism complex also about the exceptionally exclusive dedicated relationship manager and (ITC). With a dedicated inhouse team experience and lifestyle that we offer. free for life Elite Visa Infinite Credit from Barr Al Jissah, the lifestyle services Being able to deliver a personalised and Card to all Barr Al Jissah home and will be amongst the most exclusive in individualised service such as this will yacht owners should they choose to Oman and one of the most customisable help us take these lifestyle experience avail of the opportunity,” concludes in the Middle East. for our Home Owners to the next level; Firas Matraji.

48 July 2018 CSR SOCIAL INVESTMENT Oman LNG, which allocates 1.5 per cent of its net of CSR practices, thorough standards of review and implementation, the income after tax to various social investment and foundation has been recognised sustainable programmes, celebrates three years of locally and globally. Most recently, the Foundation was honoured in 2017 its CSR initiative as the Best Company in CSR through “His Majesty Sultan Qaboos Award for Voluntary Work”, the highest achievement for CSR attainable in the Sultanate. The company was also recognised regionally as the Best Company in Social Investment in the Arab World in the “Arab Best” competition.

Since inception, the unique CSR model has been showcased worldwide, representing Oman at key events and extraordinary engagements, such as the Arab League and the World Gas Conference, both of which took place this year.

“We are pleased with the achievements of Oman LNG Development Foundation within a short period since it was launched. Such success reflects the desired strategic objectives anticipated man LNG celebrated the independent legal entity back in 2009. from our shareholder, Oman LNG, third anniversary of the July 1, 2015, marked the operational and the community. The Foundation establishment of Oman LNG start-up of ODF. promotes CSR and In-country value,” Development Foundation said Sheikh Khalid Al Massan, CEO of O(ODF). The first of July marks the start of Oman LNG has an ambitious vision Oman LNG Development Foundation. the foundation’s pioneering Corporate and dedication towards CSR through Social Responsibility (CSR). the Oman LNG Development “We thank Oman LNG for its robust Foundation. The foundation addresses support to the foundation, helping us CSR has been an integral part of Oman four key pillars of sustainable social serve the local communities across the LNG with a focused objective: to deliver development: the first pillar being CSR Sultanate. The foundation also provides tangible value to Oman and its people delivered through a Community Fund the necessary expertise to effectively through social investment. Oman targeting initiatives related to the Sur manage large projects and investments LNG annually allocates 1.5 per cent community, where its world-class, to ensure the sustainability of the of its net income after tax to various three-train liquefaction plant is located, foundation for generations to come,” social investment and sustainable a National Fund that covers social he added. programmes, a commitment set when development programmes across the the company was founded. Even before nation, and a Reserve Fund to provide At present, the company’s social the first cargoes left the Liquefied CSR continuity and sustainability; the investment programmes span the length Natural Gas (LNG) plant in early 2000, second pillar helps deliver value for and breadth of the country with over the company invested in sustainable Oman LNG; the third secures the future 6,000 projects ranging from education projects for the community. through collaborations and investments; and healthcare to preserving the and finally, the fourth, a centre of environment and road safety covering To further strengthen its robust excellence, enables others to develop all wilayats, reflecting the foundation’s CSR efforts with more focus and CSR initiatives. sincere interest to embed the principles prominence, Oman LNG’s board of of social responsibility as part of its core directors decided to establish an Attesting to the company’s high degree existence. It is time to build new opportunities again. 2018

24 OCT 2018 I SHERATON OMAN

Introducing the 6th edition of Dossier Construction’s Infrastructure Awards & Summit (DCIAS) 2018. The unique event will bring together senior policymakers, government officials, business leaders and top executives for incisive knowledge sharing and networking sessions. Among the key topics at the Summit are the latest possibilities in tourism, real estate, power & water, oil & gas, logistics and infrastructure sectors in Oman – and beyond. Headlining it all, is the glittering DCIAS 2018 Awards presentation for companies, teams and individuals that have raised the benchmark of excellence in construction and allied sectors. UMS C.R. No 1278223 UMS C.R.

For sponsorships, contact [email protected] 99267159 / [email protected] 99 279 359 LOGISTICS Leading the way A joint venture between Marafi and Qatar-based Dolphin Integrated to develop an aggregate terminal at Sohar Port is expected to provide extra impetus to Asyad’s ambitious plans to reach 32 million dry bulk by 2023

syad Group subsidiary given that a significant number Marafi and Qatar-based of quarries are operating in the company Dolphin northern part of the Sultanate Integrated signed within close proximity to Sohar aA shareholders’ agreement to Port. We are confident that our develop an aggregate terminal combined vision, expertise and at Sohar Port. The proposed experience will enable us to fulfil terminal with a loading capacity the objectives of this project. of approximately eight million We will deliver a terminal of the tonnes per year will enable highest standard that will create large volume export of gabbro, a demand for jobs and help boost a coarse-grained rock used in the growth of the country”. asphalt and other minerals. The project will be developed in Ghanem Al Khayarin, chairman two phases: the hybrid phase, which The agreement is expected to provide of Dolphin Integrated said, “We are will facilitate aggregate exports by extra impetus to Asyad’s ambitious looking forward to developing the the end of 2018 and with a capacity plans to reach 32 million dry bulk terminal that will give a boost to the of eight million metric tonnes per by 2023. “There are tremendous aggregate market in Oman. This signing annum followed by the permanent opportunities to be secured from this enhances the avenues of existing phase equipped with state-of- the-art project,” confirmed Marafi acting CEO cooperation between Qatar and Oman. stacker-reclaimer system, conveyor Dr Ahmed Al Abri. “We have no doubt We will focus on maximising value and semi-automated ship loaders to be that our partnership with Dolphin will for both countries. We hope that commissioned in 2020. open new horizons for the growth of developing an aggregate terminal would gabbro, limestone and minerals sector contribute in enabling Oman’s plan The capacity will be increased after the to increase exports and international completion of the permanent phase to competitiveness while meeting the 12 million metric tonnes per annum. needs of gabbro import markets”. Marafi acting CEO, Dr Ahmed Al Abri signed the agreement with Dolphin The proposed The terminal, which has a potential to Integrated chairman, Ghanem Al become an international hub owing Khayarin, in Doha, Qatar. terminal with a to its strategic location, is expected to loading capacity of benefit a wide spectrum of stakeholders Asyad Group’s CEO, Eng Abdulrahman including local quarries owners, logistic bin Salim Al Hatmi stated, “We have approximately eight companies, and businesses operating established this joint venture to in the minerals and aggregate business, accelerate the roll-out of a landmark million tonnes per in addition to gabbro and limestone aggregate terminal in Oman. We are import countries. particularly proud of the partnership. year will enable The signing of this agreement indicates This agreement is pursuant to the pact confidence in the strength and resilience large volume export signed on May 23 , 2018 between Marafi- of the Oman economy, which continues Sohar and Sohar Port and Freezone to register a healthy growth”. Eng Al of gabbro, a coarse- to develop and operate a new high- Hatmi emphasised that the terminal will grained rock used capacity mineral aggregate terminal at pave the way for enhanced aggregates Sohar Port. The objective of the newly export capabilities from Oman. “Apart in asphalt and other established Marafi is to grow Oman from attracting foreign investments to into a top 10 Global Logistics Hub. It the country, it will also lead to increase minerals also seeks to develop the port and forge job opportunities,” he said. global business relationships.

52 July 2018 HR

By Benita Stafford-Smith, MCC

You are your leadership brand Your values are embedded in your activities, both online and offline, your expertise and experience, and in your communities

our brand is unique to you. childhood and build a media empire It is the experiences and on the philosophy of inspiring women challenges that have shaped to live their best lives. She rejected the you. One of the best ways typical tabloid style entertainment in toY communicate this is through story favor of promoting self esteem and self telling. People enjoy hearing stories and development. often remember them for a long time. You live your brand every day, it Your brand is also your values and must be authentic. It is vital today to principles. It is who you are, plus remember that we have a physical what you have done. What you have presence and a virtual presence done is part of your brand but more via social media. Authenticity and importantly your brand is you. congruence across communication platforms is essential to your brand. Suzanne Bates in her book “Discover your CEO Brand” gives us very good When looking for a leader, examples to help understand this. Here organisations look for skills, but more are a couple of them: importantly they look at a person’s values. These. Walt Disney’s love of nature, family and community inspired the Disney World Just for fun try this exercise: Think and Disneyland amusement parks. His of a leader you really admire, can optimism and creativity were behind you identify their brand in three his Hollywood success in animated words? Your brand is more than feature films. three words but it is a good starting point to identify your personal Charles Merrill, co-found of Merrill leadership brand. Lynch, had a goal of helping the average investor navigate the markets. His belief in creating value for investors, and in the idea that everyone should know how to invest, made Merrill Lynch the largest brokerage in the USA. The author is Senior Manager, Coaching Oprah Winfrey survived an abusive Practice at Takatuf TECHNOLOGY

Revolutionising shopping and rewards system Based on blockchain, augmented reality, geodrop technology and social gamification, SUBAJ Global Network is going to completely transform the shopping and rewards system for the customers and merchants, says Adebayo Surakatu, Founder & CEO of the Germany based SUBAJ GmbH. Excerpts from an interview

What are the inherent issues in the traditional shopping and rewards system from the merchant and customer’s perspective? Well, as per my understanding, the traditional shopping and rewards system has been more of a calm ocean to navigate lately. It’s really getting outdated and is currently full of flaws that needs to be eradicated once and for all. More or less, the rewards have lost their true meaning and customers barely even use them. It’s not just the customers, even the merchants are not getting any significant benefits from the traditional reward system.

First things first, let’s talk about the problems faced by the customers due to traditional reward system.

The customers are now tired of the absurd offers that are barely of any use to them. They are tired of overspending just for the sake of little returns or no returns at all on their shopping. One major problem is that every merchant or retailer today is offering his own loyalty card programme which is redeemable only at one retail store. For example, getting some reward points at a fitness club won’t buy you bread at the local bakery store. So the point is, it of the customers don’t even use their a large sum of money in terms of imposes restrictions upon the customers reward coupons and they just expire. bank fees on PoS devices, credit card and limits their profitability. Apart acceptance fees etc. Then, there are from that, there’s a lack of transparency This was about the customers. But all sorts of marketing fees involved between the customers and the it turns out, even the merchants are for printing and distributing flyers, merchants as there is no robust means suffering when it comes to traditional leaflets, media, newspaper and radio of two-way communication between the reward system. To attract new advertisements. Besides, the merchants two. As a matter of fact, over 70 per cent customers, they usually have to pay also face a cut-throat competition

54 July 2018 from the local shopping malls, retail of Augmented Reality brings a new of building a data-science model that conglomerates, online e-commerce and dimension to the shopping world. drives highly relevant product offerings now mobile commerce. Although there It creates an interactive experience to consumers across the social web and can be an effective mobile solution of a real-world environment where its becoming the retail sector’s next big to control all these different types of products, rewards, goods or services digital shopping experience. costs but most of the merchants and are augmented and directly over layed businesses refrain from adopting on a mixed reality platform. Customers Through SUBAJ you promise to mobile solutions. The reasons are no longer need to query or search revamp the shopping experience of simple. The costs of developing an extensively for the product information billions of customers from across the app are exorbitant and there’s also an and locations of their availability. They globe and disrupted the traditional intense competition from the mobile can now see it popping up on their approach of using a point-based commerce giants. But imagine if you camera enabled mobile phone app reward system. What’s your game can list your business on a mainstream as they walk through the streets. The plan to achieve your stated objective? shopping and rewards app with a customers can engage and interact with Being active in the loyalty rewards and massive user base and backed by the merchants in a transparent manner fintech space for over 10 years, I have thousands of other merchants? Things and are informed in real-time of exactly experienced a tremendous change are going to be pretty easy right? when they will be needing merchant in the needs of both customers and That’s the difference SUBAJ is going to offers and services. merchants. SUBAJ aims to bring a real bring into the lives of merchants and value backed loyalty programme to customers. While customers enjoy these new and the customers each time they shop. easy shopping experiences, Artificial The customers need to see the value of How these issues could be addressed Intelligence as a technology is necessary what they are getting back as loyalty. with the application of technologies No more unnecessary points, now including blockchain, AR and AI? they get crypto tokens with real value. What really is the technology? With SUBAJ tokens, we offer a real According to me, the technology is tradeable asset to the customers for essentially an adoption of a service free. Our goal is to build the biggest or platform to ease the way things global shopping network of retailers, work and to improve the efficiency merchants, businesses and companies and workflow of a business. And it’s (both online and offline) so that the about enhancing the impact of these customers can enjoy the benefits each business processes on our everyday time they shop. They can also trade or life. In the past few decades, technology exchange the rewards tokens they get has changed the way shopping was for further goods and services at any done and it’s still progressing every other merchant store. Interconnecting year. We have moved from Aunty all merchants together creates a shared corner stores to supermarkets to mega economy for the retail industry. Tokens malls to e-commerce and now to received from the aviation company mobile commerce. Shopping is a major can be used at the bakery store to constant thing which everybody does. redeem food. We are forming a global Whether it’s the need to purchase foods community of merchants where SBJ and beverages or to shop for gifts and is the centralized token that powers amenities, it’s a daily consumption to study the pattern, search, click the entire ecosystem. This drives more necessity for everyone. and buying habits of the customers value into SUBAJ token and hence as well as the merchants. With smart greater benefits to all participants. Our The blockchain technology is heavily AI algorithms, customers’ predictive plan is to use the latest technology of disrupting the way shopping is done. shopping pattern can be monitored blockchain, augmented reality, geodrop Usually, customers go and look for and their interest in certain products technology and social gamification to what they need; they search, compare, depending on several factors can unravel a new shopping experience evaluate and then decide whether they be mapped out intelligently. Using for the customers. With the launch of want to buy this or not. However, the Lead Semantic Matching technology, SUBAJ App (slated for July 2019), we aim advent of blockchain technology has implementing AI techniques into retail at connecting our platform to millions greatly streamlined the process. Now commerce is the next big game changer of merchants and businesses. instead of customers searching for their in the shopping world. Based on the products, the products are reaching images, words search, products clicked What are going to be the tangible the customers based on the customers’ or items bought, embedding artificial benefits to the merchants and specific needs, demographics and intelligence into digital-image marketing customers? preferences. Elevating the interaction will change the future of Shopping. AI- Let’s start with the merchants. of customers to products, the use image search is central to its ambitions Merchants are always put in a bad light TECHNOLOGY

in the retail chain. They not only cut world. Most importantly, the customers By July 2019, we’ll complete the whole down on costs to attract customers but can redeem loyalty reward points platform by launching the geodrop also pay heavily each time they use received from one merchant at any technology, merchant token creation services from third parties. With SUBAJ, other merchant or retail store. platform. Go LIVE starts from August merchants will enjoy better services 2019 and we’ll start a global movement which not only aids them in generating What progress has been made so in each country worldwide. We have more revenue but they also get rewards far to create and build the partners not only the required experience and each time they use our blockchain network? execution capabilities, we also have platform. SUBAJ provides a full mobile SUBAJ is continuously building and a strong diligent team of developers, strategy to the merchants; they can expanding its business ties with many advisors, business analysts, marketing be seen by millions of customers corporate organizations in rewards strategists, brand developers, legal on the SUBAJ app which brings a and loyalty industry. We currently have counsellors and experts working closely global awareness to the merchants. partnership with major groups giving with us in making this a reality. As we Moreover, merchants can use the us access to hundreds of thousands of continue development, we will increase SUBAJ patented geodrop technology merchants and millions of customers our team to bring in more and more to target and offer their products, from across the globe. We have solution driven experts and establish services, rewards, coupons and offer mapped out our targeting partners and more collaborations onto building the them to the customer within a specific discussions are on the way. SUBAJ project. geographical zone. Merchants can launch various offers that appear on Our goal is to have hundreds of You have also inbuilt social the SUBAJ’s augmented reality app and millions of customers downloading the investment proposition in Subaj. How is visible to any customer within 100m SUBAJ app with millions of merchants does it work? zone radius. With the value of SUBAJ connected through the SUBAJ platform. Yes, this is in fact the only mission and token increasing rapidly, merchants can Working closely with fast food chains, vision of SUBAJ project. Having seen also accept SUBAJ coin as a payment retail conglomerates, e-commerce what crisis we still face in our modern method and elevate the extra fees on giants, financial institutions and day world, it’s important that we do transactions processes. For the first other service providers, SUBAJ aims our part to the society as well. Despite time, small merchants can accept tokens at building a global (online/offline) the access to the high end technology, of big retail companies and participate marketplace for everyone. SUBAJ still many children don’t have clean in the holistic shopping ecosystem of the finds it necessary to collaborate with water to drink, don’t have vaccines customers. industry leaders and we prioritize to stay healthy and can’t afford get this relationship through events like education. SUBAJ has established the The merchants can save immensely Global Blockchain Congress or New SUBAJ Charity Foundation, a non profit on effective real time advertisements. Age Banking Summit, which are very NGO that uses the SUBAJ technology They can easily analyse their customers’ helpful towards meeting targeted platform to help the less privileged and choices, preferences and shopping partners and service providers. SUBAJ is deprived children of the world. Ten behaviour which will further help them official blockchain partner or sponsor of percent of the free tokens received by in effectively targeting different groups these events. a customer goes into the SUBAJ Charity of customers. The solution will help them Foundation where these funds will be in attracting more customers, cutting What is the road map you have set for used to provide clean drinkable water, down their expenses and maximizing Subaj? What gives you the confidence medical vaccines, better education and their profits. They will get an active that you will achieve your goals? even the Internet accessibility in rural support from a global community of SUBAJ will be operational from 18 and remote areas of the world. thousands of merchants, retailers, June 2018 with our official Pre-ICO companies, clubs and businesses. launch of the SUBAJ token. The Pre- Technology can also impact the social ICO is scheduled to take place at the life and welfare of people if properly If we talk about the benefits to the New Age Banking Summit Europe in used and tailored to benefit others. customers, they don’t need to carry Warsaw, Poland. The crowdsale follows Charity donations should not wait until 6-10 loyalty cards, just download immediately after 19 July 2018 and will a disaster happens. In fact, every second the SUBAJ app and manage all your go on till 1 August 2018. On November is a disaster when a poor child dies of loyalty coupons at one place. There 2018, we will showcase the SUBAJ coin hunger or can’t afford clean water. Let’s are instant real time offers, discounts, development and get listings done on all make the world a more meaningful and coupons everywhere; free SUBAJ exchange platforms. The SUBAJ app and better place. tokens with lots of social experience exchange platform will be launched in through gamification for them. They December 2018. SUBAJ is using blockchain technology get a transparent system where they to impact the social welfare of the less can easily interact with the merchants In June 2019, we will launch the SUBAJ privileged. We urge all industry players in their area or anywhere across the Global Marketplace and Merchant POS. to join us in this movement.

56 July 2018 EVENT

Disrupting technologies

Top bankers in Oman attend Masterclass on Blockchain for financial institutions, organised by UMS Conferences in association with Blockchain Academy, South Africa, at Sheraton Oman Hotel, Muscat

he digital revolution has The Blockchain Academy was Alpana Roy, executive vice-president at completely transformed the established in 2015 and is the first UMS Group said the initiative is aimed finance industry, with some of its kind in South Africa and has at equipping the finance sector with of the biggest changes and provided training in several countries. the knowledge of latest technologies. Tdisruption being led by the blockchain Entrepreneurs, developers and “UMS Conferences has always aimed to technology. This technology is institutions from many different provide premium knowledge sharing challenging traditional players and industries attend their training and and networking platforms in order to forcing them to re-examine their role consulting sessions to learn about the facilitate adoption of latest technologies. in the payment ecosystem. Distributed innovative potential of blockchain BFSI is one of the key sectors being ledgers, or blockchains, have the technology and cryptocurrencies such impacted by digitisation and blockchain potential to significantly impact as bitcoin. has now become more than just a business models, reduce risks and save buzzword. With our New Age Banking cost and capital. The first masterclass was recently Summit and Finsec series, we have organised at Sheraton Oman Hotel, highlighted the latest fintech trends In such a scenario, it becomes Muscat. Carel de Jager, the trainer for the region, such as AI, Blockchain, imperative to stay aware of what from the Blockchain Academy, Biometrics, etc. This masterclass is financial institutions are currently dwelled into topics such as centralised another step in the direction”. doing with this technology and the vs. decentralized blockchains, use possible use cases and case studies of cases and opportunities for financial “In coming months, we plan to execute this innovative technology specifically institutions, bitcoin compliance and more master classes on blockchain and for financial institutions. In an effort regulation, etc. It was attended by some other key topics for the region”, she to facilitate the successful adoption of the leading financial institutions in continued. and integration this technology, UMS Oman such as Central Bank of Oman, Conferences, in association with Ahli Bank, Alizz Islamic Bank, Bank For more information on the Blockchain Academy, South Africa has Muscat, Meethaq Islamic Banking next masterclass, contact launched a Masterclass on Blockchain and Al Shirawi Group UAE (Oasis [email protected] for Financial Institutions. Investments) among others. or +968 99823050 BILLBOARD

Meethaq launches loyalty programme New fashion and beauty brands mobile application open at MGM Muscat Grand Mall (MGM) announced the opening of new outlets for various well-known brands. The new outlets consist of retail of clothing for men, women and children, and other outlets for well-renowned brands of beauty products. Some brands, such as Riva Kids, are making their first appearance in the Sultanate and becoming unique additions to the existing brands. There are also fashion brands specifically for women such as the stunning Pastel and Choice; and the prestigious brand of Jorindo for men. Additionally, the Belgian brand of LeSoie now opens its doors for beauty product enthusiasts. All mall visitors will enjoy a rich collection of healthcare products at the recently opened Omani brand, Latafa, which is famous for its natural and organic beauty products. Latafa is also a distributer for products of global brands, such as Puro Bio and Organic Shop. Defacto, the long awaited Turkish clothing brand is also expected to open soon.

Meethaq, the Islamic banking window of Bank Muscat, has launched “Mukafat Meethaq” a loyalty programme application that will make the banking experience highly rewarding for the bank’s customers. The new loyalty programme app from Meethaq is packed with the latest features that simplifies ‘24/7 anytime, anywhere’ Islamic banking service. The smart mobile app, which is quick and easy to download, provides a convenient 24/7 access to latest offers on the bank’s debit/ credit cards. The new app has number of features such as viewing discount offers across various segments, viewing locations of the offers and merchants in the Sultanate. The innovative app includes Omani graduates contribute to the feature of searching for the merchants across various categories, the ability to redeem coupons at selected merchants and notifications BP Khazzan’s success on the merchants’ offers. Through the app, customers can track their Over 100 of Oman’s graduates are now making a tangible contribution to savings, view the locations of Meethaq branches, ATMs and CDMs. BP’s $16bn Khazzan Project. Launched in 2012, BP Oman’s Technicians Development Programme is a pioneering scheme in Oman. Candidates are graduates from technical colleges and universities across the Sultanate and Dhofar Insurance selects complete a four-year programme, including 18 months working towards an Beyontec Suite NVQ (National Vocational Qualification). The most recent group of 20 trainee technicians joined the programme in early April 2018, commencing their Beyontec, a global journey to join the diverse group of individuals that have already completed insurance information the training programme. Over 80 local graduates are already playing their and technology part at Khazzan to help deliver a significant proportion of Oman’s gas solutions provider, needs. Yousuf al Ojaili, BP Oman President, said: “It’s really pleasing to announced that it has see our graduates making a valuable contribution to Khazzan operations. been chosen by Dhofar BP is committed to developing its people, as it is key to our success. The Insurance Company to future is bright, we are strengthening employability of skilled Omani’s and implement the I’m really excited to welcome our latest group of trainee technicians.” Beyontec Suite, its core solution, across all major lines of business. After a thorough due diligence across solutions and vendors, Dhofar Insurance chose Beyontec, which specialises in configurable technology solutions for the global insurance industry, as its technology partner. The company will implement its award winning insurance solution, the Beyontec Suite, a workflow-driven insurance system that caters to the growing and changing needs of the insurance industry in Oman. Beyontec’s proven delivery proposition and deep industry experience will provide Dhofar Insurance the agility to respond to market needs by releasing new products more quickly and deploying them in a way that’s compliant with both regulatory mandates as well as customer needs.

58 July 2018 businessgateways obtains ISO Quality OAB conducts job interviews Management Certification in Musandam Oman Arab Bank (OAB), in collaboration with the Ministry of Manpower, recently organised a series of job interviews for locals in Musandam; a select few of which will soon join the bank’s team in the governorate. Adil Al Rahbi, head of human resources division, commented on the reasons of conducting such interviews in the Governorate of Musandam saying, “Usually job seekers travel from their residences in the Wilayats to attend job interviews at a corporates’ headquarters in Muscat, with considerable effort and costs involved; while others who cannot afford to travel and stay in the capital, show reluctance in attending such interviews. Therefore, we at Oman Arab Bank launched this initiative to conduct job interviews, evaluations, and appointments directly within Musandam for vacant positions at the bank’s branches in the Governorate.”

businessgateways International (BGI), an IT organisation based in Oman implementing national online platforms, has been awarded ISO 9001:2015 certification for its commitment to meeting the requirements of an increasing portfolio of customers and stakeholders. The award certifies that businessgateways has put in place an internationally recognised Quality Management System (QMS) designed to ensure the delivery of high-quality and consistently superior services. businessgateways had also recently obtained the important ISO 27001:2013 certification for Information Security Management System (ISMS) Standard for IT Data Management Security. The new ISO 9001:2015 certification reinforces businessgateways’ management and operational capabilities as the company positions itself for a new phase of robust growth as a leading enabler of e-services for the business community. PDO celebrates graduation of Ooredoo’s dedicated B2B app 30th batch of scholars Ooredoo’s new Business App is Petroleum Development Oman (PDO) celebrated the graduation of 93 proving a huge hit, offering of its sponsored scholars who successfully completed their academic business-to-business studies at prestigious universities at home and abroad. The batch, the 30th customers more control over in PDO’s history, included 17 women and 76 men who studied a wide their accounts through a wide variety of subjects as part of PDO’s Scholarship Programme. In total, more array of services and features. than 2,000 students have graduated through the scheme since its launch The innovative service is the in the 1980s. This year, eight staff graduated with PhD degrees, 42 with first of its kind in Oman in the Master’s degrees and telco market and puts its full 43 with Bachelor of portfolio of business-oriented Science (BSc) degrees. products one click away. Sultan The scholarships bin Ahmed Al Wahaibi, chief of included overseas business and wholesale officer and domestic studies, at Ooredoo, said: “As the distance learning, Sultanate’s digital partner of part-time studies choice, our aim is to provide our customers with a way to really ‘Be Digital’, and scholarships with an all-new way to access to our services. Our business oriented sponsored by other products have redefined the operating models of organisations; by providing parties such as His the tools that are required to excel in today’s fast-paced market”. Our Majesty’s Postgraduate Business App was designed to provide our customers with seamless digital Studies Scholarships solutions to manage their telecoms accounts from their handsets, initiative and the on-the-go, so that they can make the right business decisions and stay Ministry of Higher ahead of the curve whenever and wherever”. Education. AUTO NEWS

CADILLAC INTRODUCES FIRST-EVER TWIN-TURBO V-8 ENGINE Cadillac begins a new chapter in its high- “With the new and exclusive 4.2L Twin Turbo performance legacy with the introduction of V-8, we present to our Middle East customers a the brand’s first-ever twin-turbo V-8 engine. new, higher level driving experience, one that’s Set to be available in the Middle East by even more exhilarating than what they usually 2019, the new engine will be the centerpiece expect to get from Cadillac,” said Christian of the new CT6 V-Sport, an engaging sports Soemmer, managing director, Cadillac Middle sedan infused with DNA of Cadillac’s world- East. “Since the launch of our first V-series renowned motorsports programme. model in the region, we have received great feedback from our customers, confirming Developed as a small-displacement V-8 in the their interest in high-performance cars and classic vein and offering exceptional power density felt their enthusiasm for a high-adrenaline of 131 hp (98 kW) per litre, this new Cadillac- driving experience which embodies Cadillac exclusive 4.2L Twin Turbo V-8 – GM estimated at performance on and off the racetrack.” 550 horsepower (410 kW) and 627 lb-ft of torque (850 Nm) – elevates the CT6’s performance to The new Cadillac Twin Turbo V-8 is a clean- a new plateau and offers drivers an unparalleled sheet design that also introduces unique design experience behind the wheel. An optional elements developed to balance performance and 500-horsepower version will also be available. efficiency with compact, mass-efficient packaging.

AUDI Q8 COMES TO ME IN AUTUMN 2018 The Audi Q8 combines the of nearly 3.00 meters, it offers a elegance of a four-door luxury spacious interior that beats of its coupé with the practical versatility direct competitors in most relevant of a large SUV. Richly equipped, dimensions, including interior comprehensively connected and length and headroom. There is tough enough for off-road duty, a three-seat system in the rear it is a confident companion for with longitudinally adjusting upon business and leisure. The Audi request. With the seatbacks folded Q8 launches on the Middle East down, the luggage compartment markets in autumn 2018. under the power rear hatch holds up to 1,755 liters. With the imposing The Audi Q8 exudes sporty Singleframe in octagonal design, BMW GROUP DELIVERS OVER dynamics and upscale prestige the Audi Q8 is the new face of 1 MILLION VEHICLES IN FIRST FIVE like no other SUV from the brand the Q family. The brawny radiator MONTHS OF 2018 with the four rings. 4.99 meters grille stands upright and, together long, 2.00 meters wide and 1.71 with the spoiler that has been The BMW Group has sold more by this point in the year is a real meters tall, the SUV coupe is drawn toward the front and the vehicles than ever before in the milestone,” said Pieter Nota, BMW wider, shorter and lower than its large, highly contoured air inlets, first five months of the year: AG management board member Q7 sister model. With a wheelbase emphasises the self-confident look. more than a million customers responsible for sales and brand worldwide have already taken BMW. “We’re particularly pleased delivery of their new BMW, MINI to see that our X vehicles are more or Rolls-Royce vehicle in 2018 popular with our customers than (1,003,573 / +1.6 per cent). ever, with record sales figures This record result was achieved despite the lack of X3 availability despite the ongoing global ramp- in China. In the second half of the up of BMW X3 production and year, the X3 will once again become volatility in China due to changes fully available worldwide, bringing in import duties. These factors increased sales momentum in contributed to a slight decrease in the third and fourth quarters. the company’s monthly sales in Meanwhile, sales of our electrified May (204,041 / -2.1 per cent). vehicles are growing really strongly, with customer deliveries up by over “To have sold over a million cars 40 per cent,” Nota continued.

60 July 2018 ALFA ROMEO GIULIA WINS “COMPASSO D’ORO ADI” AWARD The Alfa Romeo Giulia has won Giulia, like every Alfa Romeo, the 25th edition of the “Compasso springs from the perfect balance d’Oro ADI”, the most prestigious of heritage, speed and beauty that world design award. Created makes it the highest expression of in 1954, the Compasso d’Oro Italian style in the automotive world. ADI Award is assigned on the It incorporates all the distinguishing basis of a pre-selection made features of quintessential Italian by the ADI (Italian Industrial style and unique Alfa Romeo Design Association) Osservatorio elements: an impeccable sense Permanente del Design, which of proportions, simplicity and consists of a committee of experts, superior surface quality finish, designers, critics, historians for an innovative design that is and specialist journalists, all faithful to a universally appreciated ALL-NEW DODGE DURANGO SRT continuously working, year by tradition. Proportions are based For the first time ever, SRT power is transmission was specifically year, to gather information and on the technical architecture of now available in the Dodge Durango. calibrated for the Dodge Durango assess the best products. the entire car and are a direct The 2018 Dodge Durango SRT is SRT to optimise shift points and powered by the potent 392-cubic- deliver maximum torque to all inch HEMI V8 engine with fuel four wheels. Durango SRT also saver technology that delivers 475 features the SRT seven-mode drive horsepower at 6,000 rpm and 470 system, which provides the driver lb.-ft. of torque at 4,300 rpm – the ability to precisely adjust drive providing America’s best horsepower settings to maximise performance and torque ratings that make it the or comfort. Suspension, torque world’s fastest, most powerful and distribution, shift points, stability most capable three-row SUV in its control and engine mapping are class. The 2018 Dodge Durango all controlled through this system. SRT provides enhanced shift quality When placed in Sport Mode, the and performance drivability, as transmission reduces shift times well as optimised fuel economy by up to 50 per cent versus auto through its TorqueFlite eight-speed mode and delivers 65 per cent of the automatic transmission. This proven engine’s torque to the rear wheels.

THE NEW BMW Z4 Long bonnet, short overhangs, low centre of gravity, soft top: the sporty two-seater doing its laps at the BMW test centre in Miramas in the south of France is instantly recognisable as a purebred roadster. The new BMW Z4 is currently undergoing another particularly important stage of the process towards serial production maturity, in this case involving driving dynamics testing of a heavily disguised prototype. This roads. Trials at the Autodrome de performance is embodied by the an M sports brake system and an will provide key insights into the Miramas are focusing on fine- BMW Z4 M40i. A new, extremely electronically controlled lock in the performance properties of the new tuning of all drive and suspension powerful in-line 6-cylinder engine, rear axle differential create an overall model, whose genuine roadster systems – the basis for the sporty a lowered sports suspension with package that sees the BMW M characteristics, pure driving driving experience offered by the electronically controlled dampers, Performance model setting a whole pleasure and captivating sporty new BMW Z4. The most intense a newly developed front axle, M new benchmark for driving pleasure flair will soon go out on public form of new dynamic roadster light alloy wheels with mixed tyres, in the roadster segment. AUTO TALK STANDING OUT FROM THE CROWD

The update for the MINI 3 door, the MINI 5 door and the MINI Convertible includes fresh design accentuations, innovations in the field of drive technology and additional customisation options. Muhammed Nafie gets behind the wheel of the reinvented MINI hatch range to explore the corners of Dubai

he British premium automobile charisma of MINI, which in its current model headlights, a striking accentuation is added by manufacturer strengthens the generation is now available for the first time means of a black panel. In the LED headlights progressive character and appeal of with three body types for hallmark driving fun available as optional equipment items, the Tits models in the small car segment in urban traffic. This is due to such elements high-quality technology is underscored by with a stylishly refined visual appearance as the new engine-transmission combinations, means of an entirely newly design of the and extensive technological advancements. an extended range of standard features, newly light sources. The latest generation of the The update for the MINI 3 door, the MINI designed headlights and rear lights, additional LED modules for low and high beam offers 5 door and the MINI Convertible includes body finishes and cutting-edge connectivity increased brightness. The LED daytime driving fresh design accentuations, innovations in technology for convenience and infotainment. light and the turn indicator light are generated the field of drive technology and additional by a ring which surrounds the entire contour of customisation options. A modified design for the characteristic the headlight. circular headlights make the hallmark front The upgrading of the original product view of the new MINI 3 door, the new MINI 5 Likewise optionally available, the adaptive substance in the premium segment of small door and the new MINI Convertible even more LED headlights automatically adjust their cars highlights the mature yet distinctive powerfully expressive. In the standard halogen brightness to the situation on the road.

62 July 2018 When driving through a city or in the event of limited visibility due to the weather, it MINI 3 door, MINI 5 door, MINI Convertible: New features is possible to add in the dimmed turning light so as to intensify illumination of the LED headlights with Matrix function for Multifunction steering wheel and radio side section of the roadway. Meanwhile a the high beam with 6.5-inch colour screen, USB and specifically increased range of the low beam Bluetooth interface as standard ensures optimum illumination of the road LED rear lights in Union Jack design Further developed engines with when driving on the motorway. New MINI logo, new body finishes, enhanced efficiency as well as Piano Black exterior The rear lights also feature a new design in increased capacity and torque for MINI conjunction with the LED headlights and the New light alloy wheels One and MINI One First adaptive LED headlights. As a clear reference to the brand‘s British origins, the upright light Extended range of leather trim, interior 7-speed Steptronic transmission with units at the rear of the new MINI 3 door, the surfaces and Colour Lines double clutch, 8-speed Steptronic transmission new MINI 5 door and the new MINI Convertible Unique individualisation with MINI now appear in a Union Jack design. Yours Customised Telephony with wireless charging The striking flag motif is recreated in the Optional radio and navigation systems MINI logo projection from the exterior structure of the light functions. The turn with touchscreen monitor mirror on the driver‘s side indicators are horizontally arranged and the brake lights are vertically aligned, with the tail light additionally representing the diagonal lines of the British flag. In order to ensure a particularly harmonious lighting effect, all light sources forming the Union Jack graphic use LED technology.

Increased driving fun, reduced weight A detailed revision of the engines offered for the new MINI 3 door, the new MINI 5 door and the new MINI Convertible mainly benefits driving fun. It also leads to a reduction in fuel consumption and CO2 figures by as much as five per cent, as well as optimising emissions so as to be able to comply with the more rigorous exhaust emission standards of the future. Further development has been applied across the board, including the basic engine, MINI TwinPower Turbo Technology, engine electronics, oil supply, intake air ducting, the cooling system and the exhaust systems. It was also possible to reduce the weight of the drive units. The engine covers are made of carbon fibre reinforced plastic (CFRP), so they are now lighter, too. The material used to make them is carbon fibre recyclate generated in the production of BMW i automobiles.

The 3-cylinder petrol engines of the MINI One First and the MINI One now draw their power from a capacity of 1.5 litres. This increases maximum torque by 10 Nm, taking it to 160 and 190 Nm respectively. In addition, all petrol engines feature petrol direct injection with the maximum pressure increased from 200 to 350 bar and turbocharger blades made of highly heat-resilient material. AUTO TALK

7-speed Steptronic transmission function. Navigation and front camera data via Bluetooth. The Control Display offers a with double clutch can now be incorporated in the control of the touchscreen function in conjunction with As an alternative to the standard 6-speed latter, too. If the vehicle is fitted accordingly, the optional Radio MINI Visual Boost and a manual transmission, a 7-speed Steptronic this allows situations to be identified in which navigation. transmission with double clutch is optionally it is better not to switch off the engine: for available for the models MINI One, MINI example when stopping briefly before making Telephony with wireless charging Cooper and MINI Cooper S. The new a turn or entering a roundabout, or if the traffic The innovative optional equipment for the transmission type is characterised by very ahead has started moving again. new MINI 3 door, the new MINI 5 door and fast gearshifts, enabling extremely sporty the new MINI Convertible includes telephony acceleration manoeuvres without torque The newly designed three-spoke steering with wireless charging option. A storage interrupt. It is operated using a newly designed wheel in the MINI 3 door, MINI 5 door and compartment integrated in the centre electronic gear selector lever. A 7-speed MINI Convertible now features multifunction armrest enables wireless charging of mobile Steptronic sports transmission with double buttons. On the left-hand control panel it is phones which offer this capability. This clutch is also available for the MINI Cooper possible to activate the Speed Limit Device option also includes a second USB socket in S. This includes shift paddles at the steering to set a maximum speed, while the audio the front section of the centre console. The wheel for particularly spontaneous manual and communication controls are on the optional MINI Excitement Package now also intervention in the choice of gear. right-hand side. A sports leather steering includes the MINI logo projection on the wheel, a MINI Yours sports leather steering driver‘s side. When the vehicle is opened All Steptronic transmissions available for the wheel and a John Cooper Works leather and closed, the new MINI logo is projected new MINI 3 door, the new MINI 5 door and the steering wheel are optionally available. The onto the ground in front of the door from a new MINI Convertible allow use of the coasting standard trim also includes an audio system light source in the exterior mirror and can be function in MID and GREEN mode as well as with 6.5-inch colour screen in the central seen there for 20 seconds, or permanently if the latest generation of the auto start/stop instrument and mobile phone integration the door is left open.

64 July 2018

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