Group 1 Oman Politicla Factor

7/29/2019 Group 1 Oman Politicla Factor

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Presented To: MRS. BHAVIKA BATRAPresented By: KAVAN BHATT

KEYUR PATELDARSHAN PANDYARUPAK PANCHALJITESH VACHETARIDHI DARJI

Global Institute of Management-technical Campus

Uvarsad Road, Moti Adaraj, Gandhinagar.2/16/2013

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Agriculture and Fishing

Bank and Finance

Financial Services IT and Telecommunication

Natural Gas and LNG

Oil Sector Tourisms

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Meaning:

◦ An activity which is related to government policy and its administrative

practices that can have affected on somewhat, most of business operators

will keep watchful eye on a political factor such as new legislation or

regulatory shifts which could have considerable impact on how their

company or industry will work through top to bottom line.

◦ The country Oman has no democracy all powers are in hands of

SULTAN Qaboos ibn said. The country has limited freedom to speech

whatever thing.

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Oman has no constitution, yet the sultan rules and regulation based on theadvice from called cabinet, and a council made up of 59 representatives

members from same regions of Oman.

Politics of Oman situated in a structure of an absolute monarchy whereby

the Sultan of Oman is only head of state and government.

THE COUNCIL OF OMAN (MAJLIS OMAN)

THE STATE COUNCIL (MAJLIS A ‘DAWALA’)

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Basic View:- The Industrial sector is cornerstone of the Sultanate of Omani

long term development plan. Industry is not only one of the main sectors of

diversifying the source of national income. It also helps to meet the Omansocial development needs and generates the greater value of source and income

point of Oman.

Under its policy government also aims to develop the Information and

Technology and also telecommunication Industries. The IT infrastructure is

already in place.

Knowledge Oasis of Muscat:- It is the special economic zone of Oman

where the most of it and telecommunication company established there

and set up their business. It is 20,000 square meter yard technology park

at the Muscat international airport.

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Omantel:- very first and only the company who provide telecom service in

Oman with land line service. Established in 1980.

Omantel concentrate 30% shares and listed on the Muscat Securities Market .

As the major shareholder, the government of Oman holds a 70% part in Oman-

tel. In 2004, the company established a sub part company called Oman Mobile

Telecommunications Co. to carry out its mobile telecom services.

As a result of liberalization from the region, the MENA telecom sector

witnessed continually growth in the number of service providers, specifically

in the mobile sector, which increased to 44% in 2008 to 65% in 2011. Council of Oman And Sultan foreign relation will more affect because country

has strong relation with America, Brittan and France. So Oman invite the

foreign company of telecom to established there business here.

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the country‟s total mobile users reached 3.31 million by February-2009, an increase of

3.0% from December 2008. Post-paid and pre-paid subscribers stood at 330,552 and

2,984,298, in that order. The number of Internet users increased to 91,201, while land

line telephone subscribers stood at 274,303. Meanwhile, given the moderately low

internet usage across the MENA region with an internet saturation of 12.16%, internet

via mobile would be an more and more lucrative section offering enormous growth probable for the regional telecoms.

Recent Development:-In a bid to give new data services and technologies, the company

given away plans to invest more in advanced technologies by expanding its 2G and 3.5G

network coverage. In the first week of April, Oman Mobile ventured with BellTel to

offer a various of compatible 3G handsets. On February 19, 2010-11, Omantel appointed

a MoU with Muscat Golf Project to provide telecom infrastructure services and mixing

technology networks. This service consists of the three performing operating services it

will consist of broadband Internet, fixed voice and IPTV services.2/16/2013 7



Information Technology Authority(ITA):- Established by Royal Decree in 31st may

2006. it will implementing and examine all national IT projects and support the IT

firms to established their business in Oman. Its all project will be based on e-

Governance and Oman digital policy. It can also polishing ICT(Information and

Communication Technology).

The Sultanate has launched a number of projects and initiatives in its intensive drive

to create a “Knowledge Society” through the Digital Oman and E-government

strategy which the Information Technology Authority (ITA) is striving to

establish. This strategy has given birth to the Digital Oman initiative, which

aims to enlist information technology (IT) and telecommunications in support

of government services, bolster the business sector and enable members of the

community to operate within a digital context.

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The Sultanate has won international recognition for its efforts in the IT field.

Oman was ranked thirteenth internationally on the Net- worked Readiness

Index (NRI) in the 2010-2011 annual report on competitiveness in the IT

sector issued by the World Economic Forum in conjunction with various

institutes of economics and business around the world.

the Sultanate came eighteenth internationally in the category of government

competence in the use of IT and telecommunications. The Sultanate also rise47

points on the Individual Readiness Index, jumping from 87th internationally in the

2009-2010 report to 40th in the 2010-2011 report, reflecting the

transformation Omani society is undergoing with respect to computer and internet

use and other modern technology

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The Pan Arab Web Award Academy named Dr. Salim bin Sultan al Ruzaiqi,

Executive President of the Information Technology Authority (ITA), „IT Man of

the Year‟ at a ceremony held in the Lebanese capital Beirut. Dr. al Ruzaiqi was

.singularly selected for his outstanding achievements promoting the Arab digital

world and for his unwavering commitment to the e-Oman strategy and

developing the IT industry in Oman.

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Meaning:- Financial service are the economic service provided by the finance

industry, which encompasses the broad range of the organizations that manage

money, including credit unions, bank, insurance company, banking finance,

stock market, government sponsored enterprise.

Banking Service:- keep money safe, providing loans, issuing the government

bond, providing capital fund for business, credit card and debit card facility.

Allowing internet banking and financial transaction on internet.

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OMAN capital market set up under the rules and regulation of the royal

decree as the given name The Capital Market Authority. Which is the

government authority and responsible for the organizing and overseas

issues and trading of securities in the Sultanate Oman. And the stock Exchange named is Muscat Securities Market. Due to oil price and large

liquid availability in Oman will attract foreign industry to invest and

trading in domestic market with the help from legislation of the Oman 2/16/2013 12



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MUSCAT CLEARING & DEPOSITORY CO:- It was established by Royal Decree of

Oman. The organization of a closed joint stock company as the only provider, in the Sultanate

Oman of the facility of registration and transfer of ownership of securities and safe keeping of

ownership document. This company is related in the course of an electronic system to the

MSM for easy data transfer.



FOREGIN EXCHANGE SERVICE

INSURANCE SERVICES

TRADE

SPONCERED ENTERPRISE

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OMAN has Tourist Places which are as under.

1. Muscat :

2. Nisswa :

3. Shalala :4. Kasha

As we can see the tourist places mentioned

above have their own unique thing in its self.



Tax policy :---

Tax policy : (Direct Taxes & Indirect Tax, Sources of

Tax Law, Tax Administration)

Labor law:----

Payroll tax and employee benefits(Availability of skilled workers, Required levels of Omani

employment)



Some of the Aggressive advertising campaigns

The sultanate of Oman has achieved these following

orders of knighthood.

The order of al-said in1913. The order of Oman, civil and military1970.

The order of the renaissance of Oman in1972.

The order of merit of sultan qaboos “sahab” in 1977.



1. Development of the Tourism Industry

2. Oman‟s Chief Sites

3. Oman is efficiently prepared for Tourism expansion

4. Oman‟s Political steadiness Makes Tourism potential

5. Oman Maintains worldwide relations



1. Central Bank of Oman

The depository agency for the Government of the Sultanate

of Oman.

The bank administers loans on account of the Government.

It approaches credit to local banks and appoints ininvestment activities through the purchase and sale of

financial instruments.

It actuates discount rates and rediscount rates.



2. National Bank of Oman (NBO)

National Bank of Oman is the first local bank which was founded

in 1973.

Attached to accomplish the financial wants of its customers.

It provides term loans, working capital facilities, import and export

financing, asset and project financing plus comprehensive cashmanagement services.

Cutting-edge financial clarifications, created to keep clip with

businesses as well as tailor-made to meet personal needs.

3 O A b B k



3. Oman Arab Bank

Oman Arab Bank acquired the branches of Arab Bank

on 1st October 1984 in the Sultanate of Oman.

Retail BankingLoans, Current account, Fixed deposit, Growth

account, E-Banking, Credit card, Smart card, Visa

card.

Corporate Banking

Trade finance, Project finance, SME Business

banking.

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4. Arab Bank of Oman

With Headquarters in Amman, Jordan, the Arab Bank

comprises the first private sector financial institution in the Arab.

Arab Bank has a unique Global Arab branch arrangement with

600 branches connecting 30 countries in 5 continents.

Consumer Banking, Corporate and Institutional Banking(CIB), and Treasury. These are created to provide the necessity

of individuals, corporations, government agencies and other

international financial institutions.

5 B k M k t



5. Bank Muskat

Our Quality Policy is to achieve and sustain a reputation for

quality in the national and international markets by offering

products and services that exceed the requirements of our customers.

Quality management system in the Bank

Reviewing our products and services, feedback from

employees (internal customers) and our customers. Excellent service, innovative products and value-added

banking

Disciplined growth and reasonable profitability.

6 B k Dh f



6. Bank Dhofar

The bank started as Bank Dhofar al Omani al Fransi in January

1990, with a paid up capital of 5 million Omani Rials.

Personal BankingSaving Accounts, Current Accounts, Term Deposits, Loans,

Cards.

Priority Banking

Special Investment & Advisory Services, Exclusive Benefits,

Banking Services, Cards.

Wholesale Banking

Government Relations, Corporate Banking, Project Finance &Syndication.



HISTORY

IN 1937 Sultan granted a 75 years acknowledgement to the Iraq

Petroleum Company. The investigation for oil was underway in Oman.

On 27 July 1967, the first exporting of Omani oil came to a destination.

At present Oman has reserved 5.5 billion barrels oil.

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Duties and Responsibilities of the Ministry of

Oil & Gas of Oman

Continuous development and of plans, policies and studies.

Making proposals of legislation, laws and regulations.

Keeping eyes on all oil and gas Exploration and Production

activities in Oman.

Setting up “Petroleum Agreements” with the Oil and Gascompanies.

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Petroleum Development Oman (PDO) has more than 90 percent of

Oman's oil inventory and is liable for 85 percent of its total production.

All final decisions on policies and investment is controlled by Sultan of Oman.

In 2011, Oman consumed approximately 98,000bbl/d of petroleum

products.

Study the oil and gas trend in world market situation for the purpose of

using it in preparing policies of marketing the Sultanate‟s crude oil and

natural gas.

Studying the present available sources of petroleum in the Sultanate

and accomplish the necessary economic studies for optimal utilization.

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The tax rate for tax payers appointed in petroleum exploration

shall be 55% of the taxable income in relation of any gain earned

from the sale of petroleum.

There are 52 articles formed with the rules regulations and

laws related to Oil sector in Oman, which must be followed by

all Oil companies in Oman.

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In 1990,More than one-half land of the country are educate land

for farming.

They mostly use the FALAJ system for obtained the water for

farming.

Due to good climate for farming, country mostly grow apricots,

grapes, peaches, and walnuts.

In now some problem of water for farming, labor force of oman

is doing rural-urban migration, for grab high wages in industry

and also perform work in the government sector.



Fisheries industry endow with good employment and

good food for the omani citizens.

The total value of fish landings in 2010 is estimated

at US $ 210 million, equivalent to 0.9 percent of GDP.

2.4% state labor-force depended on the fisheries

industry in oman.

Tuna, kingfish, large jacks, sardine, Indian mackerel,

emperors, sea breams, groupers these are different

type of fishes which are catch by this industry.



Government make the strategy for fisheries industry like, it

will contribute 2% in GDP growth in the year 2020.

Government make Exclusive Economic Zone (EEZ) for

providing great benefit to the country and future generations.

Government also merge traditional experiences and self-

interested fishermen, for developing fisheries sectors.

Government promote scientific fisheries research too.



The Gulf Cooperation Council, other Arabian countries,

European countries and east Asian countries are the most

valuable trade partners for Omani fish.

Omani fish provide at least 60 percent of the supply to the

central Dubai market, implying that this market depends on

Omani fish to meet demand in Dubai.

The Saudi Arabian and Qatar markets are also considered to

be important markets for Omani fish.



Fisheries industry provide local employment opportunities,

rural stability especially in the coastal area.

The number of fishermen increased in the last five years,

from 28,576 to 35,543.

The importance of fisheries includes job creation in the

secondary sector, estimated at about 3,250 jobs in fish

transportation and some 1,300 in fish retailing businesses.



Liquefied Natural Gas (LNG) is the by-product natural gas

liquids.

Oman Liquefied Natural Gas (LNG) was establishing in 1994 and

in Oman.

Oman LNG Plant spread around 360 kilometers.

Oman develops into a component of the World Trade Organization

(WTO) in October 2000. In current, On 15 November 2012 Oman Liquefied Natural Gas was

presents 8th Asia Gas Congress in Japan 2012.



Oman has signed a mutual trade project agreements to

extract study and upgrading behavior.

Oman Government covered 51% share of Oman Liquefied

Natural Gas Company.(OLNGC)

Oman Government takes 6.6-million ton gas for each year

of liquefaction deposit it is located at Qalhat.

Japan and Korea are big customers of OMAN LNG and

government make exceptional policy for these two country.



Japan and Korea these are 2 large countries for LNG export by

Oman.

India also do superior import as compare to Japan and Korea for

LNG.

Japan's Osaka Gas Company is one more consumer, and collects

700,000 tons per year since last 25 years.

Others such as France, Turkey and Italy, enclose use equally

pipeline import as well as LNG for their market and will likely

continue to make use of both option.



In the year 2011, the revenues jumped 26.5%. It was $ 3.963

billion as of $ 3.131billion a year earlier 2010.

Government express in report that “international energy prices

averaging $101.68* in 2011 against $77.42* during 2010, it wouldnoticeable improvement toward profit for LNG sector”

Government also predicate that “In the current scenario the

population of middle east is swiftly growing up, for fulfill their

requirement Oman need more production in LNG sector.”

* Price Per Barrel



Transportation vehicle purchase and hiring.

Manpower supply.

Information and Technology tools and linked services.

Training and Human resource enlargement.

Basic Amenities (Building, Transportation).

All-purpose business safeguarding.



THANK YOU

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Group 1 Oman Politicla Factor