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Weekly News
Oman
Opportunities
19 ~ 23 March 2017
Telegram: https://t.me/omanme
Omani rials dollar
peg safe, say
experts after Fed
rate hike
Gulf's industrial
sector employs
more than 1.6m
workersSix firms vying for
building water
project in Khasab
Transport cost
triggers Omans
inflation to 2.38
per cent in
February
Oman's $8 billion
Duqm superport
dream
Extra Oman Air
flight from Salalah
to Calicut in
Kerala
Police issue
warning after
scam uncovered
Muscat: Omans currency being tied to the US
dollar is sustainable and the government is in
good fiscal health, according to leading financial
analysts.
A report by credit ratings agency Moodys
suggested that Oman among other GCC states -
may face a rough patch against the strengthening
US dollar, just as the Sultanate starts to move
away from dependence on oil revenue and faces
up to falling oil prices.
Experts, however, say that Omans currency is
safe, thanks to the Sultanates increasing foreign
exchange reserves and strong supply of money.
The vote of confidence came as Hamood
Sangour Al Zadjali, Executive President of the
Central Bank of Oman, told Times of Oman in an
exclusive interview that no decision has yet been
taken on whether to raise interest rates after the
recent US hike.
And Fabio Scacciavillani, Chief Economist at
Oman Investment Fund, said the claim that the
dollar peg was in danger was grossly
overblown. He added: The Omani rial is
pegged to the US dollar and if anyone opens the
home page of the Central Bank of Oman he
would immediately verify that at the end of
December 2016 the Foreign Assets of the Central
Bank stood at OMR7,791m, while the money
supply (M1) totalled only OMR4,978.7.
In other words, the central bank can certainly
sustain the peg. Furthermore, the Omani public
sector holds conspicuous assets outside the
central bank and has obtained foreign credit that
can finance the current account deficit for the
foreseeable future, he added.
Muscat: Omans consumer inflation in February
rose by 2.38 per cent year-on-year, mainly due to
a 9.33 per cent price hike in the transport sub-
segment and a 2.05 per cent rise in the housing,
water, electricity, gas and other fuel sub-sector.
The foods and non-alcoholic beverages sub-
segment logged a price decline of 0.10 per cent,
while clothing and footwear prices fell 0.37 per
cent, according to a recent bulletin issued by the
National Centre for Statistics & Information
(NCSI).
The health and communication sub-segment too
recorded a price fall of 0.13 per cent and 3.02 per
cent, respectively in February, as against the
same month of 2016.
Doha: The labour force in manufacturing
industries in the Gulf has more than doubled
from 774,000 workers in 2005 to more than 1.6
million workers in 2015 registering a compound
annual growth rate (CAGR) of 7.8 per cent, a
new report reveals.
In its report on Labour Force and Productivity
of Manufacturing Industries in GCC Countries,
the Gulf Organisation for Industrial Consulting
(GOIC) also announced an increase in the
number of manufacturing factories in the Gulf
Cooperation Council (GCC).
According to GOIC labour plays a key role in
industrial production and form an added value
when coupled with the availability of raw
materials. Therefore, labour productivity is seen
as a criterion to measure industrial development
and the efficient use of the labour force. It also
sheds light on the strengths and weaknesses of
an industrial activity.
The labour force in manufacturing industry in
the GCC countries is a main pillar of industrial
production, particularly when it comes to small
and medium enterprises (SMEs). In fact, these
industries rely heavily on labour force and less
on capital, as their activities are mainly based on
human effort as opposed to big factories that rely
on machines and advanced technologies, the
GOIC said.
The prices of other CPI product baskets
registered a price increase. Tobacco products
saw prices rise of 23.23 per cent, while
furnishings, household equipment and routine
household maintenance set prices went up by
1.86 per cent.
Recreation and culture turned costlier by 0.50
per cent. Education as well as restaurants and
hotels sets experienced inflationary pressures of
2.85 per cent and 0.30 per cent, respectively.
Prices of miscellaneous goods and services went
up by 1.67 per cent during the month.
Muscat: As many as six firms have been pre-
qualified for developing an Independent Water
Project (IWP) in Khasab, with a desalination
capacity of 16,000 cubic metres per day.
The consortiums that have pre-qualified to
submit bids for building the project are the
ACWA Emirates-Sogex Oman consortium,
Utico, the Seven Seas-Aqua Venture Holdings
consortium, Veolia Middle East, GS Inima and
Tedagua.
The companies were pre-qualified after Oman
Power and Water Procurement Company
(OPWP) floated a request for a qualification
tender for developing the desalination project.
The winning company will develop it as a
private sector project, in close coordination with
OPWP. According to an earlier report, the
Khasab project, which is expected to be
completed by late 2019, will cater to growing
demand for water in the Musandam governorate.
Apart from Khasab, the Sultanate is also
developing independent water projects in
Salalah, Shaqiyah and Duqm, which will
Duqm: A small fishing port on the east coast of
Oman , Duqm i s unde rgo ing a ma jo r
transformation to become a superport of the
future.
Ambitious plans are underway to turn what was
once a fishing village of 10,000 people into one
of the Gulfs busiest seaports and tourism hubs.
With almost $8bn of investment on the horizon,
Duqm will transform into a 2,000 square
kilometre powerhouse zone driving Omans
economy forward, according to Ismail Al
Balushi, the Deputy Chief Operations Officer of
the Special Economic Zone at Duqm. He added
that the planned expansion in the port has the
potential to beat the best by 2020.
Plans are underway to complete the special
economic zone around Duqm by 2020, in
accordance with the governments economic
diversification plans, and Al Balushi says the
towns strategic location on the Arabian Sea is
what places it ahead of other cities in the region.
We want to give people a choice that is different
to Dubai and Abu Dhabi and Duqm could
definitely become that. Duqm is good news not
only for Oman, but the rest of the Middle East as
well, said Al Balushi, speaking exclusively to
the Times of Oman.
Muscat: An OMR85,000 fraud case was foiled
by the ROP, the police announced
Sunday.
An Omani national was allegedly conned by two
men of Arab African nationality, police reported.
The alleged scamsters alluded to a large
investment project for the Omani man to
participate in, only for the victim to discover that
he had been set up, after he had paid the men
OMR85,000.
The Omani national reported the fraud to the
Baushar Police Station, and after a detailed
investigation, the two perpetrators were caught
by the Baushar ROP. The case has been sent to
Public Prosecution for further investigation.
A source from the ROP has advised Omani
citizens and residents to exercise extreme
caution with regards to money transactions.
together add 52.8 million imperial gallons per
day (MIGD) of new capacity for the countrys
rapidly expanding domestic water generation
capacity. Demand for potable water in Omans
northern region, which includes the Muscat
governorate, is projected to grow by 6 per cent
per annum in the next five years, from 238
million cubic metres in 2013 to 349 million
cubic metres by 2020.
Muscat: Salalah and Calicut, the northern town
in the south Indian state of Kerala, will be
connected with an extra daily direct flight by
Oman Air from March 27, the airline said.
This is in addition to the service currently
operated by Oman Air between Muscat and
Calicut.
The three and a half hour flight will depart
Salalah at 01.10hrs and arrive in Calicut at
06.20hrs. The return flight will leave Calicut at
07.00hrs and arrive in Salalah at 09.15hrs (local
time). The daily service will be operated by a
Boeing 737-800. In addition the existing
frequencies between Muscat and Calicut have
been increased from one daily to twice daily
since February this year.
Oman Air is growing its weekly capacity to India
with frequencies increasing on five of the
airlines key Indian destinations. Bombay, Delhi
and Hyderabad increase from twice daily to
three times daily. Calicut increases from once
daily to three times daily and Lucknow increases
from once daily to twice daily.
Telegram: https://t.me/omanme
Even the Moodys report states Oman will be
able to sustain the currency peg for nearly a
decade, if oil stays above $50 a barrel and there
are no major economic hurdles.
Oman IS studying whether to raise the countrys
key interest rates, after the Federal Reserve
lifted their rates, the countrys central bank chief
told Times of Oman.
His Majesty Sultan
Qaboos issues
four Royal
Decrees
Lagarde calls for
strong policies to
sustain growth
momentum
Crimean-Congo
fever leaves three
dead in Oman
Oman plan to raise
tax on harmful
products this year
Central Bank of
O m a n t o r a i s e
capital to OMR1b
BPs gas project in
Oman expected to
deliver 1.5b cubic
feet of natural gas
per day
Madinat Al Irfan
design to save
energy in Oman
Crude oil to trade
below $60 this
year as high
CMA lowers
minimum share
offer of insurance
firms to 25 per
cent
Muscat: His Majesty Sultan Qaboos bin Said on
Sunday issued four Royal Decrees as follows:
Royal Decree No. 12/2017 endorses the oil
agreement between the Government of the
Sultanate of Oman and Oman Oil Company
Exploration and Production LLC for Bloc No.
48, signed on January 31, 2017.
Article (1) ratifies the aforementioned oil
agreement.
Article (2) says that this decree shall be published
in the Official Gazette and enforced on its date of
issue.
Royal Decree No. 13/2017 endorses the oil
agreement between the Government of the
Sultanate of Oman, Occidental Oman Inc., Oman
Oil Company Exploration and Production LLC,
and Mitsui E&P Middle East B.V for Bloc No. 9,
signed on January 23, 2017.
Article (1) ratifies the aforementioned
agreement.
Article (2) says that this decree shall be published
in the Official Gazette and enforced on its date of
issue.
Royal Decree No. 14/2017 endorses the revised
oil agreement between the Government of the
Sultanate of Oman, BP Exploration Epsilon
Limited and Makarim Gas Development LLC
for Bloc No. 61, signed on November 8, 2016.
Article (1) ratifies the aforementioned revised
agreement.
Article (2) says that this decree shall be published
in the Official Gazette and enforced on its date of
issue.
Royal Decree No. 15/2017 endorses DNO Oman
ASs conceding 75 per cent of its rights and
obligations in the oil agreement signed on August
10, 2011 for Bloc No. 36 to Allied Petroleum
Exploration Inc.
Article (1) ratifies DNO Oman A. S. conceding
75 per cent of its rights and obligations in the oil
agreement signed on August 10, 2011 for Bloc
No. 36 to Allied Petroleum Exploration Inc.
Article (2) says that this decree shall be published
Muscat: British Petroleum said that its newly
extended area within block 61, Ghazeer field, is
projected to deliver 0.5 billion cubic feet of
natural gas per day by 2020.
With Khazzan due to deliver a billion cubic feet a
day by the end of 2017, the two fields will
together eventually increase Omans natural gas
supply by around 40 per cent, according to a
company release. This will provide solid
foundations for Oman to diversify its industrial
base.
Field and well development plans are already
underway at Ghazeer and the first development
well has been drilled. Around 3.5 trillion cubic
feet of accessible gas are estimated to exist at
Ghazeer and 125 wells will be drilled over the
project lifetime to access it.
The amendment to the Oman Block 61
exploration and production sharing agreement
(EPSA) announced in 2016 was ratified, with the
issue of a Royal Decreeon March 19, 2017by His
Majesty Sultan Qaboos bin Said.
Dubai: An historic agreement between Opec
countries and other oil producers to reduce their
output would not be enough to nudge crude
prices above $60 a barrel this year, according to
energy lender Arab Petroleum Investment Corp.
Consumer countries have built up large
stockpiles of crude during nearly three years of
low prices, and US shale production is
rebounding as prices have recovered since Opec
reached the production deal in November. That
means the process of balancing the market will
take at least until the second half of this year, the
company known as Apicorp said on Monday in a
report. The inability to balance the market in the
first half of the year will mean the Organization
of Petroleum Exporting Countries should extend
the six-month deal, which took effect on January
1, for the rest of the year, it said. Opec meets in
Vienna on May 25."While oil prices are expected
to recover toward the end of the year, they will
remain in the $50-$60 band given the high level
of stocks, Apicorp said. "We expect Opec to
maintain the agreed production quota at around
32.5 million barrels a day for the rest of the year.
Brent crude was trading at about $51 a barrel at
10:26 a.m. in Dubai.
Opec will extend the deal if stockpiles are still
above their five-year average, Saudi Arabia
Energy Minister Khalid Al Falih said in an
interview with Bloomberg Television last week.
As Opecs largest producer, the Kingdom acts as
the groups de facto leader. Still, any deal or
measure needs the unanimous support of all
members to pass; the groups second- and third-
largest producers Iraq and Iran also carry
significant clout.
Muscat: Omans central bank has decided to raise
its capital to OMR1 billion from OMR760
million with effect from April 1, 2017, according
to a press release.
The decision was taken by the apex banks board
on Monday at its meeting chaired by Dr Ali bin
Mohammed Moosa, deputy chairman of the
bank.
The board also reviewed the actions taken by the
Central Bank of Oman and licensed banks
operating in Oman with regard to the financing of
small and medium enterprises.
In addition, the board endorsed the audited
accounts of Central Bank of Oman, Deposit
Insurance Fund and Pension Scheme of Central
Bank of Oman as at December 31, 2016. The
board also reviewed the management letter
report of external auditors and annual report of
the CBO Internal Audit Committee.
Muscat: Three people have died and another six
received treatment for Crimean-Congo
Haemorrhagic Fever (CCHF) during the first
months of 2017, the Ministry of Health has
revealed.
The ministry stated that the rise in CCHF cases is
notable compared to the same period in 2016
where only three cases were reported.
CCHF is a tick-borne virus which affects
animals such as cows, goats and sheep. Humans
are affected by the disease either by a tick sting
or direct contact with an infected animals blood
or organs during slaughter.
The disease also transfers from one person to
another as a result of direct contact with blood or
via other bodily fluids.
Muscat: Calls for global cooperation and strong
policies to sustain the growth momentum was
made by Christine Lagarde, Managing Director
of the International Monetary Fund (IMF).
In a press statement issued at the conclusion of
the Group of 20 (G20) finance ministers and
central bank governors meeting in Baden-
Baden, Germany, she said: Our meeting
showed once again that the G20 provides a
critical platform for major economies to work
together within an established framework. We
met at a time when growth is gaining momentum
around the world and there are signs that the
global economy has reached a turning point,
even though uncertainties remain.
Strong monetary, fiscal and structural policies
matter more than ever for what comes next.
Global cooperation and pursuing the right
policies can help achieve strong, sustained,
balanced, and inclusive growth, while the wrong
ones could stop the new momentum in its
tracks, she added.
in the Official Gazette and enforced on its date of
issue.
Telegram: https://t.me/omanme
Muscat: Omans stock market regulator, Capital
Market Authority (CMA), has approved a
request from national insurance companies to
offload a 25 per cent stake of promoters, instead
of the normal 40 per cent disinvestment in initial
public offerings.
At least five national insurance companies Al
Ahlia Insurance Company, National Life
Insurance, Oman and Qatar Insurance, Vision
Insurance and Falcon Insurance are expected
to float shares on the Muscat Securities Market
(MSM) before August 2017, in line with the
CMA regulation.
The recent mergers of some insurance
companies have reduced the number of firms
required to float shares on the local bourse,
Sheikh Abdullah bin Salim Al Salmi, executive
president of the CMA, told Times of Oman.
By Staff Reporter MUSCAT: March 19 The
German University of Technology in Oman
(GUtech) recently hosted a discussion on Smart
Cities for a group of students from the French
School Muscat. Generating energy from nature
to reduce the CO2 emissions and reducing
energy consumption will be important issues for
future cities, said Dr Oualid Ben Ali, Head of
the Training and Smart Solutions Centre at
G U t e c h a n d P r e s i d e n t o f
FutureCit iesCounci l .org . He has been
researching the topic for many years.
In his talk to the students, he referred to smart
cities with zero CO2 emissions like Masdar City
in Abu Dhabi. Dr Oualid suggested that smart
cities will offer many opportunities for new jobs
that do not exist today and that students should be
open and prepared for these challenges.
Muscat: Al Mina development, an Integrated
Tourism Complex (ITC), which is a part of Barr
Al Jissah, was launched on Monday.
We are going to start the construction of Al
Mina by the end of this year and it will be ready
in two and a half years, said Firas Matraji, chief
executive officer of Barr Al Jissah.
It is a development with these views, Matraji
said, pointing out to the beautiful Marina and
waterfront that the Al Mina homes will
overlook. The property also offers state-of-the-
art facilities and quality accommodation that is
new to the Oman market. We have villas at the
edge of the marina. We have duplexes,
apartments of different sizes and penthouses.
Penthouses and duplexes are something new in
Oman. We found there is a huge demand for
them.
Niche customer base
The property will target a niche customer base,
attracting tourism to the Sultanate. We are only
selling them to people, who are interested in the
lifestyle we are offering. We are offering
concierge services, access to the hotels,
chauffeurs, and a facility management team,
said Matraji.
Oman passengers
to be hit by US, UK
'electronics ban'
on MENA airlines
Duqm to help tap
Oman mineral
wealth riches
Dubai starts
desert solar plant
as part of world's
biggest park
Three-pronged
plan to boost
population in
Duqm
Omans total credit
grew 8.9% to
OMR22b in
January
20,000 jobs for Duqm, Omans
supercity of the
future
UK expats hope for best post Brexit
Muscat: Passengers flying to the United States
from Oman via the United Arab Emirates (UAE),
Qatar, Kuwait, and Saudi Arabia cannot carry
any electronic device larger than a cell phone
after new restrictions were imposed by the US
government.
UAE-based Emirates Airlines confirmed in an
email to the Times of Oman that the new security
directive issued by the US Transportation
Security Administration (TSA), states that
electronic devices larger than a cell phone/smart
phone, excluding medical devices, cannot be
carried in the cabin of the aircraft. The directive
comes into effect from Saturday (March 25,
2017), and is valid until October 14, 2017.
It is applicable to all US-bound passengers from
the Dubai International Airport, whether
originating or transiting through. Emirates
requests that all passengers travelling to the US
pack all electronic devices larger than a cell
phone/smart phone in their checked-in baggage,
the Emirates spokesperson said.
Pilot for the port.
Read here: 20,000 jobs seen in Duqm
Duqm is located out of the Strait of Hormuz
which is one of the most congested waterways in
the world and is therefore really well-placed to
connect the countries that lie to the East and West
of the Middle East, said the Belgian. Most
major shipping lanes only pass about 50
kilometres away from Duqm, which makes it just
a doorstep away from major international
markets.
Omans vast oil and gas reserves lie in Duqms
backyard, and to the south and the north, you
have very rich mineral deposits which can be
exported to the rest of the world, he added.
Companies can unload their heavy mining and
digging cargo here, instead of going all the way
up north and unloading their gear at Jebel Ali.
Mining companies are compelled to drop off
their diggers and earth movers at Jebel Ali in
Dubai, because the cargo is just too big to fit in
Port Sultan Qaboos, he added. The Port of Duqm
is therefore being built from the ground up to
accommodate such large machinery.
Muscat: Brexits finally happening with the
British governments announcement that it will
be invoking Article 50, and Britons in Oman are
only hoping for the best going forward.
Nearly nine months after the United Kingdom
voted to leave the European Union (EU), Article
50, which is a provision in the EUs treaty that
allows a member state to leave, will be invoked
and will trigger talks on the countrys exit from
the EU on March 29.
Maggie Jeans, an OBE (Order of the British
Empire) recipient, living in Oman for 26 years
thinks there is still uncertainty surrounding the
situation. I wanted to remain, as most people
living overseas and I never thought that Brexit
would happen. Its surrounded by total
uncertainty; I watched the coverage on the
television and in the newspaper, and it seems to
me nobody has any idea whats going to happen.
All sorts of figures are out and about, and no one
has a definitive answer. I think we just have to
watch the space and I hope the negotiations go
well.
Graham Leslie, a British resident in Oman, who
works in the hospitality sector, said, I think
Brexit was largely based on this new trend that
we are experiencing in Europe; it panders to a
section of society that is concerned about losing
its identity thats wrapped up in immigration and
obviously concerns of security, etc.
Dubai: Dubais government-owned utility
completed a 200-megawatt power plant one
month ahead of schedule as part of a plan to build
the worlds largest solar energy park by 2030.
The 1.2 billion dirham ($327 million) solar plant
in the Dubai desert, led by developer ACWA
Power International of Saudi Arabia, was
scheduled to be completed in April, said Saeed
Mohammed Al Tayer, chief executive officer of
the emirates utility. Al Tayer said Dubai
Electricity and Water Authority will buy power
from the plant for 5.6 cents per kilowatt-hour,
which was the lowest cost globally for solar
power at the time the project was awarded in
January 2015. Since then, DEWA has contracted
power at an even lower price of 2.99 cents for
another facility.
Dubai plans to have 5,000 megawatts of solar
capacity at the park by 2030 as it seeks to reduce
reliance on natural gas as the main source of
energy for electricity. The solar plant started on
Duqm: To increase Duqms population to a
100,000 by 2020, the citys Special Economic
Zone Authority (SEZAD) has employed a three-
pronged strategy aimed at making the town a
thriving metropolis in the future.
Read here: 20,000 jobs for Duqm, Omans
supercity of the future
In addition to constructing an extensive road
network in and around the city, SEZAD is also
working to expand Duqms airport by next year,
and is investing heavily in real estate to support
the population, which will be needed to run the
jobs generated by the special economic zone.
Twelve road construction and expansion
projects, which have been commissioned by
SEZAD, are underway, while another four are
currently in the pipeline. These projects have
been awarded to a host of construction and
design firms, including Parsons, Renardet,
Galfar, Al Hajjary Trading, Khaled Ahmed and
Sons, United Gulf Construction and Nespak.
Also Read: Duqm to help tap Oman mineral
wealth riches
We want to build the right infrastructure here in
the form of roads and public services so that
Duqm is easily accessible for people, and so that
once this is done, private investors can come in
and build houses, schools, supermarkets, clinics
etc. for the people who will be living here, said
Hussein Al Zadjali, head of building projects at
SEZAD.
Of the total credit extended to the private sector,
the household sector (mainly under personal
loans) stood at 46.2 percent, closely followed by
the non-financial corporate sector at 45.6 percent
and financial corporations at 5.1 per cent.
Total deposits at Omani banks registered a
growth of 6.7 per cent to OMR20.6 billion by the
end of January, over the same period of last year.
Private sector deposits in the banking system
rose by 5.3 per cent to OMR13.4 billion as of the
end of January. Sector-wise, the share of
households was 48.6 per cent of the total private
sector deposit base, followed by non-financial
corporations at 28.6 per cent, financial
corporations at 19.8 per cent and the other sectors
at 3 per cent, the CBO report said.
Monday will produce enough electricity for
50,000 homes. The United Arab Emirates, which
holds about 6 per cent of global crude reserves,
plans to spend 600 billion dirhams on renewable
energy by the middle of the century, Energy
Minister Suhail Al Mazrouei said in January.
Duqm developers.
Read also: Duqm to help tap Oman mineral
wealth riches
About 60 per cent of Omans population is
young, and everyone is looking for jobs these
days, so I believe this will add plenty of jobs to
the economy, which can be filled by the next
generation of job seekers, said Jalal Al Lawati,
Promotion Manager for SEZAD, the special
economic zone for the former fishing port now
being transformed into a supercity of the future.
Port, leisure and business Duqm forms an
integral part of Omans move away from its
reliance on oil and gas. The massive port, leisure
and business city will drive investment, create
employment and diversify the Sultanates
economy.
Oman has entered into a new joint-venture
partnership with China to build the China-Oman
Industrial Park which could generate up to
12,000 jobs for the Sultanate, according to a
senior official from the Special Economic Zone
Authority of Duqm (SEZAD).
As part of the development of the Special
Economic Zone in Duqm, SEZAD have
partnered with the Wanfang corporation to boost
the Sultanates economy, said Jalal Al Lawati,
Promotion Manager for SEZAD. We envision
this joint venture to generate about 12,000 more
jobs in Oman.
We have already begun construction of the
park, which will measure a total of 1,172
hectares, added Al Lawati. About 40 per cent
of this park will be completed by 2020, and it
will have manufacturing centres for heavy,
medium and light industries, as well as
commercial property, residences and a tourism
zone.
Expected to cost a total of about OMR3.85
billion in total, about 809 hectares have been
earmarked for heavy industries, with a further
353 to be split among medium and light
industries, as well as commercial and residential
buildings. A further 10 hectares are to be
dedicated to tourism.
Al Lawati was also optimistic to see this
partnership dovetail with the countrys Tanfeedh
initiative, which was launched last year to
spearhead Omans efforts towards economic
diversification and wean itself off fossil fuels as
a primary source of income.
Duqm: Omans supercity of the future will
create up to 20,000 jobs for young Omanis and
more than OMR700million has already been
committed to funding projects, according to
Telegram: https://t.me/omanme
Muscat: Total credit extended by Omani banks,
including Islamic financial institutions, grew by
8.9 per cent year-on-year to OMR22.1 billion by
the end of January this year.
Credit to the private sector alone increased by
10.6 per cent to OMR19.9 billion as of the end of
January, according to the latest monthly bulletin
released by the Central Bank of Oman on
Tuesday.
The banking sector remained resilient in
supporting the economic diversification
initiatives and credit needs, the CBO monthly
bulletin noted.
Duqm: Omans potential to tap the riches of its
mineral wealth could be unleashed once the Port
of Duqm is up and running, according to Captain
Wim Aertbelien, the Harbour Master and Chief
Oman well
positioned to
develop halal food
industry, say
India tries to fix
Iran trade
payments as
Trump hardens
line
Muscat: Oman has several advantages in tapping
the growing market for Islamic or Sharia-
compliant products and services across the
world, according to Islamic finance experts, who
attended a major conference here recently.
Islamic food or the halal industry is (valued at)
about $2 trillion a year, said Sulaiman Al
Harthy, deputy chief executive officer (Islamic
Banking Group) at Bank Muscat. If Oman can
get 5 per cent of the total halal food industry, it
will be enormous.
The Sultanates private sector can work with
experts in halal food manufacturing and become
an export base to meet growing demand from
across the world.
The experts also noted that Oman has several
advantages in attracting investment in Sharia-
compliant industries, which include state-of-the-
art infrastructure and incentives for investors.
The Sultanate is in a good position to take
advantage of the potential, noted Al Harthy,
while attending a panel discussion on driving
O m a n s e c o n o m i c d e v e l o p m e n t a n d
diversification plans through Islamic finance at
the IFN Oman Forum and Dialogue.
New Delhi: India is exploring setting up a new
payments mechanism for trade with Iran, after
its old sanctions workaround broke down, as
state banks remain fearful of handling payments
from Tehran in case the United States imposes a
fresh financial embargo.
US President Donald Trump has denounced an
agreement between Iran and major powers on its
nuclear programme as a bad deal, and his
administration has put Tehran "on notice" after
the test-firing of a ballistic missile.
Under previous Western sanctions, India had
devised a barter-like scheme acceptable to
Washington that allowed it to make some oil
payments to Tehran in rupees through a small
state bank, UCO Bank.
Indian companies were then able to receive
payments for goods exported to Iran using the oil
money held in non-convertible rupee balances at
UCO, maintaining a trade lifeline between two
countries with long historical ties.
But since sanctions were partly lifted early last
year the rupee account has been run down by
more than 90 per cent to just Rs20 billion ($305
million) because Indian refiners have resumed
paying for Iranian oil in euros.
Muscat IT Eng. & Trd. LLC
Services:
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Projects
progressing in
North Sharqiyah
Sultanate to work
on GCC Rail as
per plan
Jobs to be aplenty
for professionals
MUSCAT: Road projects in the Governorate of
North Al Sharqiyah constitute 11.6 per cent of
the total length of asphalt roads currently being
implemented by the Ministry of Transport and
Communications in a number of governorates.
The second part of the first phase of Bidbid-Sur
dual carriageway project is one of the most
p r o m i n e n t p r o j e c t s c u r r e n t l y b e i n g
implemented. In an interview with the Oman
News Agency (ONA), Salim bin Mohammed al
Nuaimi, Under-Secretary of the Ministry of
Transport and Communications for Transport,
said that some projects completed in 2016 and
others are still under way, pointing out that the
ongoing projects were included in the ministry
plan for this year.
He added that one of the most prominent
projects currently being implemented in the
North Al Sharqiyah is parts of the Bidbid-Sur
dual carriageway project. This project passes
by the Wilayats of Al Mudhaibi, Ibra and Al
Qabil, and some parts of it were opened for the
traffic. The project will be completed in 2017,
including 24 kilometres from the first phase of
the first part, 10 kilometres from the first phase
of the second part, 77 kilometres from the first
part of the second phase, and 56 kilometres from
the second phase in the second part, he
furthered.
By Staff Reporter MUSCAT: March 18
Oman Rail in an official statement on Saturday
said that it is ready to work on the GCC Railway
project as per an agreed common deadline
among the states. The statement denied an
official Saudi report that cited reasons for delays
and postponement of the GCC Railway project
until 2021. The GCC Railway as proposed is
expected to boost GCC economic development,
sustain growth at national and regional levels,
foster economic development, growth and
integration, enhance regional trade facilitation
and promote GCC supporting industries in the
neighbouring economies.
The GCC Railway was proposed to connect all
six member states with a total length of 2,177
km. Last year, the projects completion date has
been rescheduled for 2021. The planned GCC
railway would begin in Kuwait City, pass
through Dammam and Batha Port in Saudi
Arabia, Abu Dhabi and Al Ain in the UAE, and
then enter Oman through Sohar before
terminating at Muscat. From Dammam,
branches will link to Bahrain through the
proposed King Hamad Causeway and to Qatar
via Salwa port.
Eateries flouting
standards
Delegation of
Omani journalists
visits Iran
Introduction of VAT shall certainly provide
opportunities for accounting and IT companies
to assist businesses get ready for the
introduction of the VAT, he said.
Businesses will have to make sure that
introduction of VAT does not encroach upon
productivity, it is here IT solutions will be very
useful, Hamid said.
Many accounting firms are currently expanding
their teams as they look to assist or prepare
balance sheets for many small and big
companies.
Davis Kallukaran, Managing partner of Crowe
Horwath Oman, pointed that besides generating
additional revenues, the changes in tax law will
also create hundreds of jobs in accounting,
finance and tax within the government and
private sectors.
More jobs for professionals in the digital space
can also be expected. In particular, there will be
high demand for applicants on the more creative
side of information technology, he said.
By Samuel Kutty MUSCAT: MARCH 18
The outlook for professional job market in
Oman looks robust this year as most businesses
are expanding their teams to comply with the
rising needs. The largest number of jobs is
expected to be in sectors like financial services,
health, tourism, aviation, manufacturing and
construction. The implementation of the new
corporate income tax law and imminent
introduction of VAT are expected to be the
biggest drivers for employment creation in the
year ahead.
There will be an uptick in demand for
compliance professionals with tax, asset
management and information technology
experience as result of the new tax regime, said
Hamid Hamirani, Senior Economist at the
Ministry of Finance.
By Staff Reporter MUSCAT: March 18 To
ensure food safety standards at all levels, Muscat
Municipality has conducted regular checks on
restaurants and cafes across the capital. One
such raid has resulted in the closure of a few
restaurants and coffee shops for violations in
Muttrah. As per details provided by the civic
authority, inspection of over 100 coffee shops
recently, over 33 of them were fined for
violations and complete closure in some cases.
The civic body has started campaigns for the
employees of coffee shops and urged them to
attend courses at their time of convenience.
A senior official at Muscat Municipality earlier
told the Observer that food safety violations are
more serious with smaller restaurants and coffee
shops as their employees are not qualified
enough to carry out tasks entrusted to them. He
said efforts are on to find a solution to this
problem and make sure that all food handlers are
qualified enough to work in restaurants. He said
that while inspections are routine ones and we do
not want the situation to reach alarming levels in
the future. More importantly, it is very important
to keep food in a safe place and also develop a
food safety culture at all levels.
Telegram: https://t.me/omanme
Cigarette prices to
double from AprilBy Kabeer Yousuf MUSCAT: March 18
Come April, prices of cigarettes will almost
double across board as Oman is to impose
selective tax as part of revitalising non-oil
revenues, in concurrence with other GCC
countries, it is learnt. Accordingly, smokers will
have to shell out few more baisas for their
favourite brands, lest seriously mull over
stubbing the final butt for monetary sake if not
for health reasons. We were advised that prices
of premium brands of cigarettes will be higher as
a new tax on certain commodities such as
tobacco, alcohol and others is currently under
way. The rise is supposed to be almost double for
certain brands, a representative of a leading
cigarette agency said.
Last year too, prices of most of the brands had
shot up by 100 to 150 baisas, as is experienced in
most of the shops which sell cigarettes.
Accordingly, any cigarette pack sold at 700
baisas was sold at 900 baisas, while others too
saw an increase of 200 baisas. The measures as
per the decisions issued by government units
concerned are expected to improve and raise the
contribution of non-oil revenues such as
amending Income Tax Law that is expected to be
issued this year. The implications of such
amendment are, therefore, not incorporated in
the budget. Besides introducing selective tax on
luxury commodities including tobacco, alcohol
and others, the Sultanate has also announced
amending the fee for licences to bring foreign
workers, amending some fee for civil services
provided by the Royal Oman Police (ROP),
limiting tax exemptions granted for companies
and establishments, enhancing tax collection
efficiency, and activating monitoring and
follow-up measures, amending rules and
regulations pertaining to exemptions of customs
duties, implementing the revised tariffs for large
consumers of electricity for commercial,
industrial and government use, and amending
the regulations of lands allocation such as lands
of commercial, tourism, industrial and
agricultural use.
Beside the measures to help non-oil sources of
revenue, the government has been acting to cut
excessive use of tobacco and other allied
products in view of public health.
Sohar Port
expansion to pull
in $8bn in new
investments in
Oman
By Conrad Prabhu MUSCAT: MARCH 18
Sohar Port and Freezone (Sohar) is targeting $8
billion worth of new investments over the next
five years on the back of a new phase of
expansion and growth that the industrial port has
embarked upon. Part of this targeted inflow will
be generated by Sohars new reclamation
project, according to the hubs Chief Executive
Officer. To be officially named Sohar Port
South, the newly reclaimed land will allow the
industrial port to expand its portfolio of
companies and add more business to drive
growth within the Omani economy, said Mark
Geilenkirchen.
Sohar will build on the Port of Rotterdams
extensive experience with similar projects, like
the massive Maasvlakte 2 land reclamation in
the Netherlands, to achieve the best results
during construction, Geilenkirchen stated.
Maasvlakte 2 is a massive civil engineering
project involving the construction of a new port
and supporting infrastructure on reclaimed land
adjoining Maasvlakte. As an extension of the
Port of Rotterdam, the project offers around
2,000 hectares of newly reclaimed land for
container terminals and other investments the
difference being that the new ventures are
operated on the principles of sustainability.
Sohar Port South (known earlier as the Majees
Reclamation Project) is a key component of the
Sohar 2040 Masterplan, which is currently
under finalisation. When completed, it will give
a substantial boost to the ports ability to support
t h e S u l t a n a t e s a i m s t o i n c r e a s e i t s
diversification efforts, according to the CEO.
Significantly, part of the reclaimed land that will
form part of Sohar Port South has already been
leased to significant new tenants under
contracts signed last year, said Geilenkirchen.
Also expected to contribute to strong growth
trends at the port are investments in the food and
logistics clusters, he said. The port was
originally based around three industrial clusters:
logistics, metals and petrochemicals. We
recently added food as our fourth pillar with the
launch of Sohar Food Zone, the regions first
dedicated agro terminal, the CEO noted.
Earlier this year, Sohar Flour Mills revealed that
it was preparing to launch work on a new 500
tonnes a day milling facility in the Food Zone, a
new cluster coming up at the site of the now
vacated Container Terminal B. The new mill is a
joint venture between the UAEs Essa Al
Ghurair Investments and Aytab Investments of
the Sultanate. The facility is due to be completed
before the end of this year.
By Staff Reporter MUSCAT: March 18 To
ensure food safety standards at all levels, Muscat
Municipality has conducted regular checks on
restaurants and cafes across the capital. One such
raid has resulted in the closure of a few
restaurants and coffee shops for violations in
Muttrah. As per details provided by the civic
authority, inspection of over 100 coffee shops
recently, over 33 of them were fined for
violations and complete closure in some cases.
The civic body has started campaigns for the
employees of coffee shops and urged them to
attend courses at their time of convenience.
A senior official at Muscat Municipality earlier
told the Observer that food safety violations are
more serious with smaller restaurants and coffee
shops as their employees are not qualified
enough to carry out tasks entrusted to them. He
said efforts are on to find a solution to this
problem and make sure that all food handlers are
qualified enough to work in restaurants. He said
that while inspections are routine ones and we do
not want the situation to reach alarming levels in
the future. More importantly, it is very important
to keep food in a safe place and also develop a
food safety culture at all levels.
day of flared volumes for conversion into
electricity.
The eventual deployment of micro-turbine
technology across PDOs Block 6 concession
could see as much as 25 per cent of flared gas
estimated at around two million cubic metres per
day in 2015 recovered for power generation.
The resulting electricity output will go a long
way in meeting the companys substantial
requirement of energy to power its oilfield
operations.
By Conrad Prabhu MUSCAT: MARCH 18
Petroleum Development Oman (PDO) says it is
piloting the use of micro-turbine technology to
generate electricity from flared gas a move
that could help the nations leading oil and gas
producer potentially convert waste gas into
valuable energy.
A successful pilot could pave the way for the
broader rollout of this technology across its
concession area for the conversion of flared gas
into electricity, the majority-government-owned
company noted in a recent tweet.
The trial is underway at PDOs Anzauz
Production Station in the companys Oil South
Directorate. A fest facility established at
Anzauz currently generates around 180 195
kW of electricity by converting 1,000 cubic
metres per day of fuel gas that would otherwise
be flared.
According to details of the trial published in a
recent edition of PDOs in-house magazine,
only around five per cent of gas currently flared
at Anzauz is utilised by the test micro-turbine
unit to generate power. Based on the success of
this pilot, micro-turbines could potentially
recover an estimated 500,000 cubic metres per
By Conrad Prabhu MUSCAT: MARCH 19
Dutch firm Escher has secured a contract to
supply a total of five flare systems for the
multibillion dollar Liwa Plastics Industries
Complex (LPIC) currently under construction at
Suhar. Orpic, the Sultanates refining and
petrochemicals flagship, is investing $6.4
billion in the development of the giant
petrochemicals scheme within the industrial
port at Suhar, with a smaller upstream
component at Fahud as well. An integral part of
any refinery, petrochemicals or oilfield
processing plant, flare systems help in the safe
burning of excess hydrocarbon and purge gases
in an environmentally sound manner, as an
alternative to releasing these vapours directly
into the atmosphere.
Given the massive size of the LPIC project with
its multiple components, Escher Process
Modules, based in Alblasserdam in the
Netherlands, will fabricate and deliver five flare
systems in the third quarter of this year.
Three of the flares will be supported on one
common derrick structure towering above the
site at a height of about 170 metres. The other
two flare systems will be fitted atop a second
common derrick structure at a height of around
100 metres.
Ten Omani
projects win MEED
Quality Awards
By Samuel Kutty MUSCAT: MARCH 19
As part of its efforts in beefing up revenue
collection, the ministry of finance has warned
that corporate income tax be paid by the end of
this month. According to a directive issued by
the secretariat general of taxation at the ministry,
taxpayers whose financial year ended on
December 31, 2016, should submit their
provisional returns of income before March 31
and pay the tax due, if any of the basis of such
returns.
All tax payers are required to adhere to the
deadline to avoid penalties and punishments
stipulated in chapter seven of the income tax law
promulgated by Royal Decree no 28/2009 for
the failure to submit the return within the
By Business Reporter MUSCAT: MARCH 18
MUSCAT: Ten of Omans highest quality
projects have won national honours in the 2017
MEED Quality Awards for Projects. The
combined value of Omans winning projects is
estimated at $274 million. Now in its seventh
year, MEED Quality Awards for Projects
programme has become the leading stamp of
quality and achievement for top teams operating
in the GCC projects sector. The awards not only
recognise the construction element of project
delivery but also consider the value and quality
of a project throughout its entire life cycle, from
the design concept through to engineering and
construction and its wider contribution to society
and to the environment.
Omans national winners include Hoehler +
alSalmys Conference and Exhibition Hall at
GUtech Project (Building Project of the Year),
AWS Engineering LLCs BP Remediation
Project at Port of Salalah Project (Award for
Sustainability), Atelier Pod and Engineering
Innovation Design & Consultings Anantara Al
Jabal Al Akhdar Resort Project (Hotel Project of
the Year), Musstirs Al Baleed Resort Project
(Hotel Project of the Year), Larsen & Toubro
(Oman) LLCs Construction of New 400KV
Grid Station at Izki Project (Power Project of the
Year), Public Authority for Electricity & Waters
Construction of Extensions to the Water Supply
Network at Nizwa Project (Water Project of the
Year), AWS Engineering LLCs EPC for Sohar
Refinery Sea Water Cooling System Revamp
Project (Oil & Gas Project of the Year and Small
Project of the Year), Six Constructs Sohar
Industrial Port Project (Water Project of the
Year) and Larsen & Toubro (Oman) LLCs
Sultan
Qaboos Youth Complex Project (Social, Culture
& Heritage Project of the Year).
Corporate
taxpayers warned
against delay
prescribed date, the directive said.
The corporate income tax rate is the amount
collected from companies based on their net
income obtained while exercising their business
activity, normally during one business year.
The Omani government on February 26 last,
through Royal Decree 9/2017, gazetted broad
tax changes to the income tax law including
drastic rise in penalties and fines.
Notable aspects of the proposed tax reforms, for
tax years beginning on or after January 1, 2017,
include an increase of the general corporate
income tax rate from 12 per cent to 15 per cent
and the removal of the minimum taxable income
exemption of RO 30,000.
At the same time, the maximum penalty for
failure to file returns by the due date has been
amended to increase from RO 1,000 to RO
2,000.
The maximum penalty for failure to submit
information requested by the tax authority or to
attend scheduled hearings is raised from RO
2,500 to RO 5,000.
A penalty of up to RO 3,000 may be imposed for
fai lure to comply with the Executive
Regulations or administrative decisions.
Intentional refusal by a principal officer to
submit tax returns or other requested
information can result in imprisonment for a
period of 1 to 6 months and/or a fine from RO
500 to RO 20,000.
A second offense within 2 years increases the
period of imprisonment to 3 to 12 months and
the fine can from RO 2,000 to RO 30,000.
The intentional failure to submit accurate tax
returns or the intentional destruction or
concealment of documents and records can
result in imprisonment for a period from 6
months to 3 years and/or a fine of RO 5,000 to
RO 50,000.
Flared gas-to-
electricity
conversion on trial
in Oman
Dutch firm wins
Liwa Plastics flare
systems contract
in Oman
Omani, Iranian
Coast Guards
discuss
smuggling,
infiltration
MUSCAT: The 1st meeting of the commanders
of coast guard in the Sultanate and the Islamic
Republic of Iran on Sunday started at Crowne
Plaza hotel in Muscat and lasts for two days. The
Omani side at the meeting was chaired by
Brigadier Badr bin Khalfan al Zadjali,
Commander of Coast Guard of the Royal Oman
Police. The Iranian side was chaired by
Brigadier Galal Stara, Commander of the Coast
Guard Forces in the Islamic Republic of Iran.
The meeting discusses a number of issues
including means of enhancing cooperation and
coordination in security and police fields
especially those related to smuggling and
infiltration. ONA
Telegram: https://t.me/omanme
Bank Muscat,
ONEIC join hands
to promote
electronic
payment
MUSCAT: Bank Muscat, the flagship financial
services provider in the Sultanate, and Oman
National Engineering & Investment Company
(ONEIC) have signed an agreement to facilitate
PoS card payment across the network of ONEIC
outlets in Oman. Waleed al Hashar, Deputy
Chief Executive Officer of Bank Muscat, and Dr
Rashid Mohammad al Ghailani, Chief
Executive Officer of ONEIC, signed the
agreement at the banks head office.
ONEIC is a major bill collector in Oman
handling bill collections for water and electricity
companies in the interior regions of Oman. This
is the first time ONEIC will be accepting cards at
their outlets across the country. ONEIC has 77
outlets and will be installing over 200 Bank
Muscat PoS terminals at the outlets.
Waleed al Hashar said: In line with the
leadership position in Oman, Bank Muscat is
delighted to launch yet another value-added
service benefiting customers. The bank is
making all efforts to support merchants to adopt
electronic payment as a business model. The
in i t ia t ive is a imed a t complement ing
government efforts in making e-payment the
preferred mode of payment and motivating a
change in consumer behaviour that makes
payment by cards both a habit and preference
in view of convenience and security.
ONEIC is also launching a mobile application
known as Bill and Pay facility for which Bank
Muscat will provide the Internet payment
gateway. With the new agreement, Bank Muscat
customers can pay ONEIC bills using all Bank
Muscat channels, including online and mobile
banking.
Smart Cities to
open up new
employment
streams
By Staff Reporter MUSCAT: March 19 The
German University of Technology in Oman
(GUtech) recently hosted a discussion on Smart
Cities for a group of students from the French
School Muscat. Generating energy from nature
to reduce the CO2 emissions and reducing
energy consumption will be important issues for
future cities, said Dr Oualid Ben Ali, Head of
the Training and Smart Solutions Centre at
G U t e c h a n d P r e s i d e n t o f
FutureCit iesCouncil .org. He has been
researching the topic for many years.
In his talk to the students, he referred to smart
cities with zero CO2 emissions like Masdar City
in Abu Dhabi. Dr Oualid suggested that smart
cities will offer many opportunities for new jobs
that do not exist today and that students should
be open and prepared for these challenges.
Telegram: https://t.me/omanme
Belarus opens
consulate in
Muscat
Oman Shipping
Company seeks
partnerships with
mining industry
Omantel
introduces
Hayyakum
programme
MUSCAT: The Office of the Honorary Consul of
Belarus was opened on Monday in Al Azaibah
under the auspices of Belarus Foreign Affairs
Minister Vladimir Makei.
The minister said that the opening of the Office of
the Honorary Consul of Belarus in the Sultanate
is of great importance in the development of
bilateral relations between the two friendly
countries in various fields, praising the efforts
exerted by the Sultanate in this regard and all that
would develop relations between the two
countries.
He pointed out that during the visit he held
meetings with a number of senior officials in the
Sultanate to develop relations, stressing the
importance of the visit in increasing trade,
economic and investment exchange between the
two friendly countries.
Qais bin Mohammed al Yousuf, Honorary
Consul of Belarus in the Sultanate, and a number
of Foreign Ministry officials attended the
opening ceremony.
BOOSTING TIES: Oman, Belarus sign MoU in
tourism
Earlier, Yusuf bin Alawi bin Abdallah, Minister
Responsible for Foreign Affairs, received
Vladimir Makei and his delegation.
The meeting reviewed the existing friendship
relations in political, economic and commercial
fields and exchanged views towards a number of
regional and international issues of mutual
interest.
The Belarusian Foreign Affairs Ministers visit
to the Sultanate was crowned by signing at the
Foreign Ministrys premises a memorandum of
understanding (MoU) in tourism field.
The MoU was signed by Ahmed bin Nasser bin
Hamad al Mehrzi, Minister of Tourism, and
Vladimir Makei.
Oman Shipping Company (OSC), the wholly
g o v e r n m e n t - o w n e d m a r i t i m e f r e i g h t
transportation services provider, has pledged to
support the growth of the nations burgeoning
min ing indus t ry by fo rg ing mutua l ly
advantageous partnerships with local players to
enhance the competitiveness of Omani mineral
commodities in export markets.
A senior company executive urged local mining
firms to take advantage of OSCs well-
established capabilities in the dry bulk
transportation business, underpinned by its
expanding fleet of modern dry bulk carriers.
Kim Tae Kwon , Genera l Manager
Commercial Dry Bulk & Liner Services, said the
national maritime carrier of the Sultanate was
ideally positioned to serve as the shipping
department of local mining firms looking for a
competitive partner in the transportation of their
mineral commodities to markets around the
globe.
We can offer you a one-stop solution for your
freight requirements, said Kim. We can also
provide shipping consultancy services to
enhance the competitiveness of your mining
exports to world markets, he told mining
executives at an event held in the city recently.
Muscat-headquartered OSC is looking to
position itself as a pivotal player in the maritime
transportation of locally generated mineral
commodities. Exports surged over 12 million
tonnes last year, with Salalah Port accounting for
a dominant share. The company already plays a
major role in the import and export of dry bulk
volumes linked to a number of mega industrial
projects in operation in the Sultanate.Notable is
its part in the shipment of iron ore for the giant
pelletising plant of Vale Oman at Suhar. OSCs
wholly owned fleet of Very Large Ore Carriers
(VLOCs), each of a mammoth 400,000 tonne
capacity, has been deployed to transport the
feedstock from Brazil to the Sultanate.
By Staff Reporter MUSCAT: March 20
Omantel has launched the Hayyakum
programme that will classify Omantel
merchants based on their performance. The
programme is expected to strengthen Omantels
relationship with its dealers through unique
benefits and rebates. The objective of the
programme is to classify top Omantel merchants
through a tiering system that considers strategic
alignment, size of activations, activation
effectiveness levels and overall quality. The
Hayyakum programme is being carried out
along with Sale International the sole
distributor partner for Omantel in the Sultanate.
The programme will also allow merchants an
additional commission, contingent on meeting
targets and loyalty levels.
Iyad al Lawati Senior Manager Indirect
Channels, Omantel said: Our merchant is one
of our most important stakeholders and we are
very pleased to be able to launch the Hayyakum
programme to encourage and reward our
merchants across the Sultanate based on the
level and quality of overall performance.
Omantel has played a tremendous role in
positioning the Sultanate among the top 20
countries with the fastest 4G networks in the
world and our merchants have been a key part of
this success story.
Naser al Kharouf Country GM of SALE
International said: We are pleased to partner
with Omantel to introduce the Hayyakum
programme to Omantel merchants in the
Sultanate. The program will prove to be
extremely beneficial to monitor performance
across various categories. This will contribute to
enhancing the telecommunications landscape in
Oman.
OOC-owned Oxea
to build new
chemical unit
Gateway for
investors in
tourism
Oman Drydock to
tie up with major
services providerAlara Resources
inks deal with
Mining
Development
Oman
MUSCAT, MARCH 20
Oman Oil Company (OOC) owned Oxea, a
global manufacturer of oxo intermediates and
oxo derivatives, has announced the construction
of a major propanol unit adjoining its existing
complex in Texas, USA.
The world-scale plant, dubbed Propanol-2, will
boost Oxeas propanol production capacity by
around 100,000 metric tonnes/year, and its
propionaldehyde capacity by 40,000 mt/year.
Propanol is a key ingredient in the manufacture
of a range of products such as adhesives,
coatings, printing inks and pharmaceuticals
formulations. Propionaldehyde, on the other
hand, is used in the production of food
preservatives, plasticisers, plastics, rubber
chemicals and pharmaceutical.
Oman Oil Company, the wholly Omani
government owned energy and strategy
investment arm, acquired Oxea in December
2013. The acquisition of what is effectively the
worlds second largest producer of oxo
intermediates and oxo derivatives catapulted
Oman Oil Company into the ranks of the worlds
top chemicals producers.
Oxea operates a global network of plants offering
a total production capacity of over 1.3 million
tonnes per annum of oxo intermediates and oxo
derivatives, such as alcohols, polyols, carboxylic
acids, speciality esters, and amines. These
intermediate products are used in the production
of a wide array of products, including paints and
c o a t i n g s , l u b r i c a n t s , c o s m e t i c s a n d
pharmaceutical products.
State-owned Oman Drydock Company (ODC)
part of Oman Global Logistics Group (OGL)
is preparing to partner with a leading
international marine engineering services
provider aimed at adding a specialist market
segment to its diversified portfolio of ship repair
and maintenance services.
discussing the potential direction for the tourism
strategy. Impact of tourism on economy, Tourism
Strategy of Oman 2040, Oman Travel and
Tourism Competitiveness Report were the major
highlights of the morning session, while the
panel discussion looked into the overview of
tourism industry in Oman, key hospitality
projects in the Sultanate and perception of
international investments in tourism market.
961213The conference, which is the first of its
kind, serves as a platform for launching
investment in tourism, and came after
completing Oman Tourism Strategy which
identified the Sultanates vision for tourism
sector, said Ahmed bin Nasser al Mehrzi,
Minister of Tourism.
The ministry has initiated the tourism layout for
the Governorate of Dhofar and will soon float a
tender for layouts in Al Dakhiliyah, Musandam
and South Al Sharqiyah governorates, in addition
to Jabal Shams, he added.
Hayy Al Sharq in the Wilayat of Barka, which
stretches over 1.5 million square metres, will
cover the gap in the domestic tourism and will
help in attracting Arab tourists. The ministry has
also approved Yeti Tourism Project of Oman
Investment Fund and Yankit Project, which
stretches over 8 million square metres. The two
projects will be merged to be an integrated
tourism complex which includes hotels,
entertainment, water games and adventure
sports, he said.
Maitha bint Saif al Mahrouqiyah, Under-
Secretary of the Ministry of Tourism, said that
the number of inbound tourists to the Sultanate is
growing and that a number of hospitality projects
will be opened this year and during the next few
years.
The conference is organised by ASAAS.
According to Lulua al Araimi, the business
development analyst at ASAAS, the objective of
the conference is to create an annual major event
as a platform where all the stake holders can
come together. Our aim is to attract international
investors.
According to a key official of the Duqm-based
yard, five prominent marine engineering services
firms based in Europe and the Far East are
currently in contention for a partnership
arrangement with ODC.
We are looking at a long-term technical
cooperation agreement (with the selected
party), said Dr Ahmed al Abri (pictured),
Deputy CEO Operations, Oman Drydock
Company. Through th i s pa r tne r sh ip
arrangement, we aim to target a completely
different market segment of special sea vehicles,
such as subsea projects, semi submersibles,
offshore structures, vehicles for underwater
operations, and so on, he added.
The pact, set to be formalised next week, comes
on the heels of a landmark joint venture
agreement inked last November between ODC
and Babcock International Group, the leading
engineering support services organisation of the
United Kingdom. The JV will help enhance the
Duqm yards ability to provide a range of
superior marine engineering services to visiting
vessels from British and international naval
fleets.
According to Dr Al Abri, around 447 ships of
various types and sizes have so far been handled
at ODCs high-tech facilities for maintenance
and repairs since it was launched in 2011. We
hope to reach the landmark figure of 500 vessel
dry-dockings to date sometime this year, he
said, noting that the yard has delivered a 15 25
per cent improvement in its bottomline over the
2015-2016 timeframe.
Although dry-docking and refurbishment
contracts were numerically lower last year than
in 2015, the cumulative volume of business
generated at the yard was nevertheless
heartening, he said. This was primarily because
of a trio of major conversion jobs handled at the
yard. Conversions typically extend over a couple
of multiple months and take up much of the
yards labour resources, thus keeping the facility
busy, he explained.
By Lakshmi Kothaneth MUSCAT: March 21
The two-day Oman Tourism Investment
Conference (OTIC) brought into focus latest
projects and investment opportunities, while
Telegram: https://t.me/omanme
Australian minerals exploration company Alara
Resources Limited has signed a Memorandum of
U n d e r s t a n d i n g ( M o U ) w i t h M i n i n g
Development Oman (MDO), the Sultanates new
mining investment and development flagship.
The pact represents a major shot in the arm for the
Australian firm as its local joint venture prepares
to launch work on its ambitious Al Hadeetha
Copper Gold project, as well as pursuing other
mining initiatives in the Sultanate.
MDO is a new holding company established last
year to invest in, among other things, large-scale
commercial mining and downstream processing
schemes, as well as transport and logistics
infrastructure to underpin the growth of this
promising sector.
Sixty per cent of MDOs share capital of RO 100
million is owned by four government entities: the
State General Reserve Fund (SGRF), Oman
Investment Fund (OIF), Oman Oil Company
(OOC) and Oman National Investments
Development Company (TANMIA). The
balance 40 per cent is proposed to be offered for
public subscription via an Initial Public Offering
(IPO) on the Muscat Securities Market (MSM).
Ala ra and MDO have now s igned a
M e m o r a n d u m o f U n d e r s t a n d i n g a n d
Confidentiality Agreement in connection with
these objectives (the MoU), said Alara in its
statement. Alaras discussions with other
interested parties (including potential project
equity partners for
Oman) are continuing, subject to the terms of the
MoU. While Alara remains open to receiving
equity investment at the project level, this is not a
requirement for the Al Hadeetha Copper Gold
Project to proceed, it further noted.
Alara Resources plans to develop what is billed
as the Sultanates single largest copper resource
at Washihi, just outside Muscat Governorate,
which will open up a potentially rich local source
of supply for the nations domestic needs. Output
of copper concentrate from the Washihi deposits
is projected at around 350,000 tons over 10 years,
yielding approximately 80,000 tons of copper
metal if smelting is also undertaken locally.
planning than doing, which causes major
problems while rolling strategy to work. The
worst part is that leaders do not own the
execution process; instead, they delegate the task
of execution to people at lower lever, and very
often, without proper training and guidance.
Masirah Oil Limited and its partners have
announced that the drilling of exploration well
Karamah-1 in Block 50 Oman has commenced.
The prospect Karamah is targeted for a depth of
about 3 km, and is located on a structural closure
approximately 13 km away from the earlier
GAS-1 discovery well at a water depth of 23
metres. The well objective is to explore multiple
target horizons of the Early Tertiary and Late
Cretaceous formations, the company said in a
press statement.
The wells location was selected by integrating
mainly the geological understanding and the
proprietary multi-attribute Rex Virtual Drilling
technology. The well is being drilled using the
independent leg cantilever jack-up drilling rig
Aban VII which was also used in earlier Masirah
drilling campaigns.
The shareholders of Masirah are Rex Oman Ltd
at 85.15 per cent, Schroder & Co Banque SA at
5.00 per cent, Lime Petroleum Plc with effective
shareholding at 1.45 per cent and Petroci
Holdings at 8.39 per cent.
Oman-based consu l t ing f i rm Tanf idh
Management Consultants has once again taken
the lead in inviting international, regional and
local keynote speakers to Muscat to share their
transformation knowledge and expertise at the
Transformation Through Strategy Execution &
Innovation Conference and Post Conference
Workshops taking place at the Grand
Millennium Hotel, Muscat from March 27 to 30,
2017.
Tanfidh Management Consultants mainly
focuses on Strategy and Strategy Execution with
the use of proven methodologies like Strategy
Maps, Balanced Scorecard and OKRs.
No matter how best the strategy has been
developed, it is completely useless without
effective execution, say experts of Tanfidh.
Making Strategy Happen is increasingly
proving to be a key to organizational success.
With the current global economic downturn this
statement is true for all types of organizations be
they public, government, private or non-profit.
Most leaders, however, know a lot more about
strategy formulation than execution, according
to Tanfidh. They know much more about
E-visa must to
bring more
inbound visitors
Foreign exchange
position healthy
Duqm SEZ
contract awards
top RO 705m
Drilling of new
exploration well in
Block 50 starts
Conference on
Transformation
Through Strategy
Execution and
Innovation
Duqm flights to be
directly handled
by Oman Air
Local firm wins
Oman sebacic
acid project
contract
By Vinod Nair MUSCAT: March 22 The
country must have provisions for simplified e-
visas ready by the time the new Muscat
International Airport is operational later this
year, said CEOs of two national airlines at a panel
discussion on Wednesday.
Speaking at the panel discussion of Oman
Tourism Investment Conference, Paul
Gegrowich, Oman Air, CEO, said currently there
are constraints because the present airport was
built initially to cater to only four million
passengers a year and now it handles around 12
million passengers.
Visa procedures should be simplified and we
need e-visa services to be introduced in a big
way. Despite all efforts to stimulate tourism, we
are currently lacking in airport infrastructure and
procedures.
Franois Bouteiller, CEO, Salam Air, said: E-
visa is the key aspect to attract inbound tourists
and there should be some working groups formed
to address these aspects. We need to raise and
deal with these concerns through a specific
deadline. We should not have a beautiful terminal
but lag behind in services.
Stressing that aviation brings direct and indirect
employment, experts said that for every 30
travellers, there is one employment. Passengers
on the Salalah and Muscat sector have been
increasing and growth of traffic form Muscat has
been consistent at double digits, it was said.
It was also pointed out that there is enough room
for a budget carrier and 34 airlines are operating
out of Muscat. The market share for low-cost
carriers has been 15 per cent in the Middle East.
By Samuel Kutty MUSCAT: March 22 The
foreign exchange reserves in the balance sheet of
Central Bank of Oman (CBO) continue to remain
healthy. The bank maintains enough foreign
reserves and these help maintain monetary
stability in the country, said Hamoud bin
Sangour al Zadjali, CBO Executive President.
According to him, the monetary reserves at the
apex bank are satisfactory and enough to cover
the Omani rial, hence there is no question of
depreciation of the currency.
Referring to the recent decision to raise CBOs
capital from RO 760 million to RO 1 billion, al
Zadjali said that the move would support the
fiscal position and monetary stability.
The move will help enhance confidence in the
countrys financial system and help maintain
sufficient capital and reserves, he told the
Observer.
He affirmed that the CBO maintains enough
foreign reserves and adopts a monetary and
banking policy that ensures stability of the fixed
exchange rate of the Omani rial.
This in turn leads to maintaining its purchase
power against the different currencies, he said.
According to CBOs January bulletin, the foreign
exchange position is healthy.
Although the current account in the balance of
payments is facing pressure, the CBO ensured
that the foreign exchange reserves in its balance
sheet remained healthy, the report said.
Starting tomorrow (March 24), flight bookings to
Duqm in Al Wusta Governorate will be directly
handled by Oman Air, according to a circular
issued by the Travel City Group which has been
handling the bookings ever since the services
began in 2014. All passengers who have booked
with the travel conglomerate for travel after
625 million of the total, while consultancy firms
netted in excess of RO 30 million in contracts.
Projects awarded last month alone totalled
around 49 million in value, underscoring the
pace at which the Sultanates most ambitious
SEZ enterprise is being developed, said Eng
Hussain al Zadjali, Head of Building Projects at
SEZAD.
Speaking to journalists during a media tour of the
sprawling zone on Omans Al Wusta coast, Al
Zadjaii listed a number of prestigious contracts
that are currently under tender and due for award.
They include contracts for a service corridor to
the $6 billion Duqm Refinery, expansion of the
water distribution network, construction of new
roads and bridges, establishment of drainage
systems at Duqm Port, and various consultancy
services for various initiatives.
Several major developments are also ongoing at
a cost of several hundreds of millions of dollars,
he said. Notable are contracts for the
construction of the Jurf and Saay channels
designed to secure the SEZ against potential
flooding. The partnership of Serka Taaghhut and
Ajab is executing this package of infrastructure
works. Separately, Premier International
Projects is undertaking the construction of flood
protection dams upstream of these channels,
aimed at staving off destructive flood events in
the future. Both contracts are due for completion
in the second half of 2019.
Just south of the SEZ, Galfar Engineering &
Contracting is constructing the nations largest
fishery harbour, which will anchor an Industrial
Fisheries Hub planned as part of the SEZ. The
contract, comprising marine infrastructure and
road networks linking the facility to the SEZ, is
due for completion in Q2 2019.
Local contracting firm Al Duqm Global
Construction has been awarded the main contract
to undertake the construction of Omans first
sebacic acid plant at the Duqm Special Economic
Zone (SEZ). Total investment in the project,
promoted by Omani-Indian joint venture Sebacic
Oman, is estimated at RO 62.7 million.
Work on the facility, which represents the first
overseas industrial investment in the SEZ, is well
under way with civil works on track for
comple t ion we l l be fo re the p ro jec t s
commissioning targeted before the end of this
year.
Speaking to journalists during a site visit
organised by the SEZ Authority at Duqm
(SEZAD), Al Duqm Global representatives said
the foundations of the key components of the
project, notably the centrepiece sebacic acid
plant as well as dedicated facilities for the
production of octanol, sulphuric acid, glycerine
and dioctyl phthalate (DOP), were currently
being constructed in place.
Extracted from castor oil, sebacic is used in many
industries, such as chemicals, plastics, and
pharmaceuticals. I t is also used as an
intermediate ingredient in the manufacture of
detergents, paints and perfumes.
March 23 will be given full refund to enable them
to have a fresh booking with GDS.
We will no more be handling the bookings to
Duqm from March 24 and all can book tickets
online or log on to Oman Air web site to make a
booking. All passengers who have booked with
us for travel after March 23 will be given full
refund, a source at the agency said.
To facilitate ease of access for the investors and
residents of the Al Wusta Governorate and
Special Economic Zone Authority (SEZAD)
Oman, Duqm airport was opened in July 2014.
Oman Air, the national carrier of the country, has
been operating Embraer E175 aircrafts to this
future business hub which has been growing at a
rapid pace with investments from across the
world in its varied areas. Till now, Oman Air has
four flights per week to Duqm but as the demand
went high, service will be extended to daily,
according to the airline sources.
The Special Economic Zone Authority at Duqm
(SEZAD) has awarded contracts totalling RO
705 million to date a figure that is set to soar
on the back of a plethora of new infrastructure
and utility contracts due to be tendered out over
the coming 12-plus months.
According to a senior official of SEZAD,
construction contracts accounted for a hefty RO
Ten projects bag
GCC Meed quality
awards
Gold hallmarked in
Dhofar
MUSCAT
Ten Sultanate projects have won national
honours in the Meed quality awards.
The awards not only recognise the construction
element of project delivery but also consider the
value and quality of a project throughout its
entire life cycle, from the design to engineering
and construction and its wider contribution to
society and to the environment, according to a
statement.
The combined value of the 10 projects is
estimated at $274 million.
The award winners were Hoehler and Al
Salmys Conference and Exhibition Hall at
GUtech, AWS Engineerings BP Remediation
Project at Port of Salalah, Atelier Pod and
E n g i n e e r i n g I n n o v a t i o n D e s i g n a n d
Consultings Anantara Al Jebel Al Akhdar
Resort Project, Musstirs Al Baleed Resort
Project, Larsen & Toubros constructio