Omran's 2nd Sustainability Report

CREATING A SUSTAINABLETOURISM DESTINATION

2nd SustainabilityReport

ContentsTable of

This Year‘s Report

5

Our Environmental Impact

51

Our Cultural Heritage

65

Our Social Impact

39

13

Our Economic Impact

29

About Omran

Appendices 75

2nd Sustainability Report | 4 - 5

This Year‘s ReportSection 1

Taking a closer look at Oman’s natural assets.

Sustainability management makes good business sense, and is becoming increasingly important for Omran.


Be it young or old Omanis, our objective is to tap their skills, experience and aspirations to create a happier, more secure Oman.


About this Report

2013 At a GlanceThis is Omran’s second Sustainability Report.

It covers performance on material issues relevant

to our main stakeholders for the four years leading

up to 2013. The report is written in accordance with

the Global Reporting Initiative (GRI) G3.1 guidelines

for sustainability reporting, the leading standard used

by two-thirds of the world’s sustainability reporters.i

Our report is self-declared Level B and has received

an independent GRI level check (page 92).

The 2013 report has more information than ever on our

developments and hospitality assets. These indicators

and qualitative disclosures give a more holistic overview

of the environmental, social and economic impacts at

Omran. They send a strong signal that our company is

serious about taking ownership over the full extent of

our operations.

134SMEs supported

Omran makes a point of trying to help Small & Medium-Sized Enterprises (SMEs) through financial contributions, mentorship, and responsible procurement practices. In 2013, we supported 235% more SMEs than 2012. Read more about our different strategies for helping entrepreneurs on pages 35 and 37.

82mnOMR awarded in OCEC tenders

The Oman Convention and Exhibition Centre (OCEC) is Omran’s biggest development, slated to bring in 200-240 million Omani Riyals to the national economy by 2030. Discover the full economic impact of this flagship project on page 36.

-27% Reduction in GHG emissions

Omran reduced its office greenhouse gases (GHG) generated by 27% in 2013. To show that we are serious about the environment, we have taken the bold step of tracking and reporting on the environmental performance of our hotel assets. Learn about our environmental performance on page 51.

1,028 Available rooms

Omran has come a long way in just a few years with regard to hospitality asset management. We are significantly increasing our hotel capacity (26% growth in available rooms in 2013) and welcoming more guests all over Oman (399 per day in 2013). Learn about our hospitality assets on pages 18 and 80.

72% Omanization

Omran believes that the tourism economy can be a major driver of national employment. In 2013, we employed 86 Omanis at our head office, 353 at our Hospitality Assets, and 126 at our developments. Read more about our approach to human capital development on page 44.

9LEED projects

Omran is the first company in the Sultanate to have gained membership of the U.S. Green Building Council. Nine of our developments are pursuing the coveted LEED certification—the most trusted global standard for green building. More on page 55.

32% Domestic occupancy

Omran builds tourism infrastructure for foreign and Omani travellers alike. Omran’s domestic occupancy rate is up significantly from historical rates (11% in 2010), indicating Omanis are becoming increasingly avid participants of their own tourism economy. More on page 35.

0Injuries

With more than 9.3 million man-hours logged across our developments, we managed to avoid having a single lost-time incident in 2013. We believe that being honest and transparent about our Health & Safety performance is integral to success, and we encourage you read about our practices on page 45.

0Fatalities

Cautionary StatementThis report contains certain “forward-looking statements” that express the way in which Omran intends to conduct its activities. Many of these statements are based on the plans and assessments of our executive management team, which are meant to add value to the report by giving our stakeholders a better overview of our collective impact. Words such as “anticipate,” “believe,” “expect,” “estimate,” “forecast,” “intend,” “plan,” “project” and similar expressions which indicate future events and trends may identify forward-looking statements. Although we make efforts to ensure the report is as accurate and truthful as possible, such statements are based on assumptions made using currently available information that is subject to a range of uncertainties that could cause actual results to differ materially from these projected or implied statements. The forward-looking statements contained in the following pages are therefore not promises or guarantees of future conduct or policy, and Omran assumes no obligation to publicly update any statements made in this sustainability report.

More than communications, sustainability reporting

is an exercise in accountability to our stakeholders.

We invite all our readers to provide their feedback

to us so that we can continue to be Oman’s most

transparent developer.

Contact InformationFor questions and feedback on this report as well

as general information on sustainability programs

at Omran, please contact our sustainability team

at [email protected]


CEO’s Message

“ Tourism is expanding at a rapid pace in Oman. Recent government figures indicate that the number of inbound tourists grew by 50% compared to 2012.ii Growth projections for Travel and Tourism (T&T) look equally promising: the World Travel and Tourism Commission (WTTC) estimates that the sector will contribute a total of 3.7 billion OMR to the Sultanate in 2023.iii With such positive outlooks, the need for robust tourism infrastructure is clearer now than ever.”

The sustainable development goals outlined in

the Oman Economic Vision 2020 emphasize the

importance of economic diversification and human

capital development. Through our efforts to catalyse

growth within Oman’s tourism sector, Omran

continues to make a strong contribution to the

Sultanate’s vision for sustainable development. Since

its establishment in 2005, Omran has developed and

managed—independently and jointly— a portfolio of 23

different assets. Though these impacts are impressive

in their own right, it is the indirect factors that make

tourism’s contribution truly remarkable. Whereas

the tourism and travel sector’s direct economic share

of Gross Domestic Product (GDP) stood at 3.0% in

2013, the full contribution was closer to 6.4% when

considering the multiplier effect of tourism.iv These

figures demonstrate the many indirect benefits of

public spending in tourism infrastructure.

Sustainability management makes good business

sense, and has started becoming increasingly important

for Omran. A study by the Harvard Business School

finds that companies that embrace it “significantly

outperform their counterparts over the long—term,

both in terms of stock market as well as accounting

performance.” v Strengthening our sustainability

management practices is therefore vital to long term

success. On this front, the 2013 Omran sustainability

report has made important new advances. First, we

have expanded our scope with the inclusion of 25 fully

reported GRI performance indicators. We also continue

to use the Global Reporting Initiative 3.1 standard to

guide our reporting, but have started transitioning to

reporting on the basis of topics identified as important

to our stakeholders. And finally, the boundary of

reporting is wider this year, with key indicators on

our hospitality assets. By showing this leadership

in sustainability reporting, our aim is to continue

to be the most transparent developer in Oman.

Omran has had some big successes in 2013. Major

projects such as the Oman Convention and Exhibition

Center are on schedule, and several developments

such as the Alila Jabal Akhdar resort and Atana

Musandam resort slated to open in Q2 2014. Studies

are showing that our properties will bring in millions

of Omani riyals to the economy. We are proud to

have completed nearly 10 million man hours without

a single lost time injury. And on the environmental

front, nine developments are pursuing LEED green

building certifications. We have also reduced per

capita waste, energy, and greenhouse gas emissions.

Our mandate to build tourism infrastructure, though

no small task is one that will bring invaluable growth

to our economy. As we near our ten year anniversary,

we celebrate our successes and continue to look to new

opportunities to contribute to the national economy.

Sustainability will continue to guide our focus and actions,

putting us squarely on the path to long term success

for Omran and the Sultanate of Oman. Eng. Wael Al LawatiCEO


As a government investment arm for the Sultanate’s tourism industry,Omran develops, invests in, and manages tourism assets.

About OmranSection 2

By combining human and naturalresources, we create distinctiveand sustainable destinations.


Our approach to sustainability takes into account the economic, social and environmental factors while promoting Omani heritage in the industry.


Our Company

The Oman Tourism Development Company (Omran)

was established by the Government of Oman as part

of a wider vision to diversify the economy. Oman Vision

2020 outlines the vision for the Sultanate’s economic

and social development and emphasizes economic

diversification and human capital development as top

priorities for the next decade. Omran exists to support

the Sultanate’s economic and social development by

catalyzing growth within the tourism sector.

HeadquartersAl Khuwair

Building number 3203

Way number 3341

Phone: +968 24 391111

Fax: +968 24 391112

Email: [email protected]

Post P.O.Box 991, P.C.130, Al Athaiba.

Website: www.omran.om

As a government investment arm for the Sultanate’s

tourism industry, Omran develops, invests in, and

manages tourism assets. A central part of our remit

is to develop new tourism destinations in the country

and stimulate private sector investment in tourism

destinations. With projects from Musandam to

Dhofar, our company operates exclusively in the

Sultanate and is proud to contribute to Oman’s

national development.


Sultanate of

Oman

Salalah

Khasab

Dibba

Sea of OmanSohar

Al SifahQuriyat

SurNizwa

Uwaifiya

MussanahMuscat

Ras Al Jinz

Masira Island

Duqm

15

21 9

20

147 10

812

16

11

18

19

17165

3

2413

Omran’s Activities

Omran operations are classified in three

general categories:

Investments: Omran supports tourism by dedicating resources

to investment opportunities that enhance the private

sector’s role in the sector’s development. By seeking

out joint ventures, we stretch the potential of our

resources while simultaneously creating an enterprising

and participatory market. Omran currently has

a portfolio of 6 investments that include stand-alone

projects as well as larger Integrated Tourism

Complexes (ITCs).

Developments: Omran supports tourism by planning and building new

projects across the Sultanate. As a government-owned

entity, Omran is in a position to build assets

of strategic interest and capitalize on its size to

undertake large projects. As of 2013, Omran had 7

developments underway.

Hospitality Assets: Omran supports tourism by managing its own set

of hotels, resorts, and tourism destinations. Whilst a

few assets are managed by Omran on behalf of others,

Omran has begun running properties of its own and

developing its own brand of hospitality. By showing

leadership in responsible tourism and championing

Omani hospitality across 8 hotels and resorts, Omran

is setting a standard for others in the Sultanate.

Sustainable Tourism in Oman

Our country is quickly being positioned as one of the

most attractive destinations in the Middle East. The

LonelyPlanet guide recently ranked Oman as the No. 2

tourism destination globally, and Muscat was named

as Arab Tourism capital in 2012. United Nations World

Tourism Organization (UNWTO) estimates project

tourists visiting the Middle East to more than double,vi

the outlook for the industry is extremely positive.

In such times of expansion and change for the

industry, it is important for sector participants to take

a deliberate, long-term perspective towards industry

growth and development. Omran’s development

strategy is rooted in the conviction that development

should generate wealth for Omanis, preserve the

natural assets for our children, and strengthen our

cultural identity. Omran’s sustainability framework

is a visual representation of these goals.

Sustainability FrameworkOur approach to sustainability takes into account

the economic, social, environmental factors while

promoting Omani heritage in the industry.

Economic Society

Environment Cultural Heritage

ResponsibleTourism in

Oman

Investments Developments Hospitality Asset Management

1. Jebel Sifah 7. Oman Convention & Exhibition Centre 14. Intercontinental Muscat

2. Salalah Beach 8. Alila Jabal Akhdar Resort 15. Millennium Resort Mussanah

3. As Sodah Island 9. Atana Musandam Resort 16. Crowne Plaza Duqm

4. Al Baleed Resort 10. Fort Hotel 17. Duqm City Hotel

5. Duqm Frontier Town 11. W Hotel 18. Ras Al Jinz Scientific Centre

6. Saraya Bandar Jissah 12. Quriyat Sur Rest Area 19. Masira Island Resort

13. Al Baleed Restaurant 20. Golden Tulip Dibba Resort

21. Atana Khasab Resort

1 As the Ras Al Jinz Scientific Centre is not owned by Omran and is governed by a different management agreement, it falls outside of the boundary of this report. It is not included in aggregate figures for Hospitality Assets.


Our Values Our Stakeholders

Know-how: Omran believes in know-how, which is built from the spirit of being an Omani company and the knowledge this gives us. We understand the people, government, heritage and environment, knowing how to get the most out of everything and everyone we work with.

Respect: Omran believes in Respect, which is built from the respectful spirit that is inherent in the Omani people. We respect not just our own people but also the communities in which we work. While we support Oman’s goal to have tourism as a key economic driver, we also endeavor to preserve traditional Omani skills, crafts, and a lifestyles.

As a company with a remit to develop public-benefit

infrastructure projects, the impact that we have on

communities is paramount to the way we do business.

We engage with local communities either through

specific initiatives to be implemented in the region

where our project is located, or through general

initiatives that touch a wide range of benefits for

community members. Our sustainability strategy,

Corporate Social Responsibility (CSR) programs, and

public relations are a further step towards closer

communication and engagement with communities

about our projects, activities, and plans.Beyond: Omran believes in beyond, which comes from our passion for the future, which is shared by many young Omanis. We exist to push the boundaries of what is expected and what can be achieved. We develop communities, people and skills, and we do it all to help develop a new and better Oman.

Our CommitmentsIn 2012, we committed ourselves to four key objectives:

1. All future Omran major developments will be LEED certified.

2. All future Omran properties will ensure domestic tourism is promoted.

3. All future Omran properties will have interiors that are the ‘modern expression of Omani architecture’ and will be decorated with art from Omani artists.

4. Omran developments will include environmental stewardship initiatives that increase awareness and good housekeeping on-site during construction.


For the full Materiality Matrix see Appendix D

Materiality at Omran

In order to create a more focused sustainability program, Omran conducts a yearly review of issues that are of concern

to the company and interested parties. By writing a publication that focuses on topics that matter to stakeholders and

have the greatest impact on our operations, we strengthen our credibility and social license to operate.

The outcome of the 2013 assessment draws attention to indirect economic impacts, local communities, and employee

satisfaction as top priorities for Omran. Accordingly, we dedicate a considerable amount of time describing the full range

of impacts for these focus areas in this report.

Omran’s Top 15 priorities:

Topic / Aspect More Information

1 Indirect Economic Impacts See Indirect Economic Impact on page 35

2 Employee Satisfaction See Our Workforce on page 43

3 Local Communities See Spending Local on page 35 and Community Investment and Sponsorship on page 46

4 Preservation of Heritage See Our Cultural Heritage page 68

5 Employment See Our Workforce on page 43

6 Procurement Practices See Spending Local on page 35

7 Occupational Health and Safety See Contractor Relations on page 46

8 Products and Services See About Omran on page 13

9 Constructing LEED Certified Buildings See LEED Building at Omran on page 55

10 Overall Environmental Spending Omran plans to report on this in 2014

11 Materials Reported to a limited extent on page 57

12 Corporate Communications Omran plans to report on this in 2014

13 Corporate Governance See Governance on page 23

14 Energy See Energy Consumption on page 59

15 Anti-corruption See Ethical Conduct and Anti-Corruption on page 26

* Page 43 provides more exhaustive details on Omran’s materiality assessment.** The GRI logo above indicates that a topic is a prescribed aspect of the new G4 voluntary guidelines. Although the 2013 report uses 3.1 guidelines, Omran is already in the process of transitioning to the new standard.

1. Oman Society of Engineers

2. Oman Society of Contractors

3. Oman Real Estate Association

4. Oman Green Building Association

5. Oman Chamber of Commerce and Industry

Omran is 100% owned by the Government of Oman. The

Oman Ministry of Finance acts as the official shareholder

for governance and operational activities.

Omran’s structure ensures robust checks and balances

are in place between different entities such as the Chief

Internal Auditor, HC Committee and Audit Committee.

Pending a review of Omran’s mission and direction by

the board, the organizational structure is slated to be

updated in Q1 2014 to align with the upcoming changes.

Our senior management and legal teams are responsible

for ensuring that Omran is in full compliance with Omani

laws. Our governance philosophy is to set an example

of best practice in Oman by exceeding basic governance

and business management standards. We have achieved

several voluntary certifications, including ISO9001 for

Quality Management, ISO14001 for Environmental

Management, and OHSAS18001 for Occupational Health

and Safety. In addition, our assets are pursuing LEED

certifications for green building performance.

The organization does not subscribe to or endorse any

externally developed economic, environmental, and

social charters, principles, or other initiatives. Omran

does, however, have memberships in associations

where this is seen as strategic:

Governance

CHAIRMANOF BOARD

BOARDADVISOR

CEO HCCOMMITTEE

AUDITCOMMITTEE

TENDERCOMMITTEE

CHIEF INTERNAL

EDITOR

The Integrated Management SystemOmran has been awarded with internationally

acclaimed certifications after passing its second

Integrated Management System (IMS) Audit conducted

by Germany’s TÜV SÜD, a global provider of testing

and certification services. By effectively integrating

three previously certified systems under one integrated

platform, Omran’s IMS achieved ISO 9001:2008 for

Quality Management System, ISO 14001:2004 for

Environmental Management System and OHSAS

18001:2007 for Occupational Health and Safety

Management System.

Demonstrating the company’s systematic and

process-driven approach to quality performance,

product delivery and service consistency, the IMS will

meet the needs of stakeholders, manage employees’

needs, monitor risks and hazards, reduce inefficiencies

and maximize resources. Omran proved it has robust

checks and balances in place ensuring that all

decisions are based on recorded data, potential

problems are identified and corrected, and the end

product always meets the required standard.


Board of Directors Executive Management TeamOmran’s highest governing body is made up of seven members who review performance and provide direction to the company. These individuals are appointed by the Cabinet of Ministers. Other than receiving a sitting fee for each meeting attended, directors are not compensated for their work and have no personal financial interests in the company. Directors and employees are required to comply with our Code of Conduct, which outlines the ethical standards and expectations to exercise good judgment. Employees can provide recommendations or direction to the highest governance body through their line managers. As of December 31st, 2013, the Board of Directors was made up of seven members:

Day-to-day operations are managed by an executive team of six individuals. Compensation for these executives is tied to economic performance and scorecard achievement, which includes economic, environmental, and social indicators.As of December 31st, 2013, senior management was made up of the following individuals:

Eng. Said Al QasmiChief Project Officer, Oman Convention & Exhibition Centre

Eng. Abdul Wahid Al FarsiVice President, External Affairs

Eng. Ali Al RasbiVice President, Corporate Support

Eng. Wael Bin Ahmed Al LawatiChief Executive Officer (CEO)

Ms. Lubna Al Kharusi Chief Financial Officer (CFO)

Eng. Nasser Al MaqbaliChief Operations Officer (COO)

Eng. Abdul Qawi Bin Abdullah Al-Yafai MemberDG of Town Planning & Survey; Ministry of Housing

Mr. Khalid Bin Saeed Al-ShuaibiMemberDG of Organization and Commercial Relations; Ministry of Commerce & Industry

Sk. Sultan Bin Mohammed Al-MahrouqiMemberDG of Administrative & Financial Affairs; Ministry of Finance

Eng. Khalid Bin Hilal Al-YahmadiMemberPrivate Business

H.E. Nasser Bin Khamis Al Jashmi ChairmanUndersecretary of Ministry of Finance

Mr. Hassan Bin Mohammed Al-LawatiDeputy Chairman DG of Archaeology & Museums; Ministry of Heritage & Culture

Mr. Harib Bin Abdullah Al-KitaniMemberCEO of Oman LNG Co.

The composition of the Board of Directors changed on June 1st, 2014, for a list of current Directors, please visit: www.omran.om


Ethical Conduct and Anti-Corruption

Millennium Resort Mussanah Trip Advisor Certificate of Excellence

Crowne Plaza Duqm Sewage Treatment PlantConstruction Week AwardsSustainability Initiative of the Year

Crowne Plaza Duqm Sewage Treatment PlantMEED Quality AwardsWater and Water Reuse Project

Omran WebsiteOman Web AwardsSilver

Alila Jabal Akhdar ResortDossier Construction Awards and SummitBest Project Design

Salma’s ChocolatePR Ragan AwardsEmployee Communication Awards

Masira Island ResortTrip AdvisorRecommendation

Team Leader of Zaree Iman Al Salti Travelex Oman Tourism Ambassador AwardsBest Tourism Ambassador for Al Batinah and Musandam

ZareeAsia’s CSR Best Practice AwardWomen Empowerment Award

ZareeAl Roya Youth AwardsEntrepreneurship Award

“ Managers are expected to exemplify the highest standards of ethical business behaviour and conduct creating a work environment that promotes honest and ethical behavior”Excerpt from Omran’s Code of Business Conduct

Business ethics continue to be a material concern

for all companies in Oman. In line with a national

directive to combat corruption and serious fraud,

Omran developed a set of internal policies and

measures, including various types of audits that are

conducted throughout the year. All employees and

board members must sign declarations yearly that

they have read and understood the company’s code

of business conduct. This ensures collective

responsibility and accountability to the people

of Omran. Thanks to these proactive measures,

Omran has not faced any issues of corruption in

the past five years.

Anti-Competitive BehaviorOmran complies with all laws concerning

anti-competitive behavior. Our position as

a government-owned company allows us to

go beyond simple calculations of financial returns,

and to consider the full range of economic multiplier

effects that future projects will have for Omani society.

The development of assets in Duqm and the creation

of the OCEC are prime examples of undertakings

that will generate significant indirect economic

benefits, while not immediately generating direct

economic returns. As such, Omran’s role is to catalyze

development by undertaking projects that break

new ground and, on the basis of risk and immediate

economic returns, may not be executed by

other developers.

Awards and Accolades


Our Economic ImpactSection 3

Ensuring that the economic wealth of the nation stays and circulates within our borders is an important consideration for Omran.

Omran plays a prominent role in the development of the tourism sector by developing, managing, and investing in tourism projects.


Job creation is one of the most tangible impacts of tourism development.


2,079million OMR

The tourism industry’s total contribution to Oman’s GDP in 2013, in Omani Rials

(including indirect and induced impacts)

295million OMR

Amount of local spending projected to result

from the Oman Convention and Exhibition Centre

Total contribution tourism in Oman has had to employment in 2013

(including wider effects from investment, the supply chain, and induced income)

6.4%

Number of SMEs

supported in 2013

134

Direct Economic Impact of Investment

The travel and tourism sector plays an increasingly

significant role in Oman’s economy. In 2013, the sector

directly contributed 3.0% (OMR 982.8mn) to Oman’s

GDP, a relative share that is forecasted to jump to

5.4% per annum over the next decade.vii Visitor exports

surpassed seven hundred million Omani Rials for the

first time in 2013, with 1,660,000 international tourist

arrivals projected for the next year. viii This has helped

Oman rank 3rd globally for its 2014 projected real

growth in direct contribution to GDP, as well as third

for its direct contribution to employment.ix

Omran plays a prominent role in the development

of the tourism sector by developing, managing, and

investing in tourism projects. In 2013, the total amount

of the infrastructure investment estimated at a net

total of 30.5 million OMR. The asset base has grown

to include 8 hotels and resorts, 7 developments under

development, and 11 joint-ventures and investments.

Highlights

Joint-Ventures & Investments

9

2010

10

2011

11

2012

11

2013

Development Projects

7 78

6

2010 2011 2012

Hospitality Assets Managed

2013

“ Oman is currently perceived as offering extremely attractive investment opportunities for hotel groups and other tourist-related industries, largely due to rising domestic tourism and regional tourism, supported by an increase in higher disposable incomes.” - Oxford Business Group, Oman Report 2012

10 810 8

2010 2011 2012 2013

Our Economic Contribution 2010 2011 2012 2013

Total infrastructure investment (OMR) 52,134,853 15,641,469 33,973,217 30,485,101

Number of ongoing development projects 6 7 8 7

Number of tourism assets managed 10 10 8 8

Number of Joint-Ventures & Investments 9 10 11 11

*some figures above are restated from the previous sustainability report


Economic Performance of Hospitality Assets

As a part of its mission to stimulate the industry,

Omran manages and invests in a number of hotels

and resorts. Increases in the capacity and occupancy

of these hospitality assets is an indication that

a greater number of visitors are experiencing Oman

and that Omran is meeting its goal of stimulating the

tourism economy. In 2013, our aggregate capacity grew

significantly to 1,028 rooms across Oman, with an

average of 399 sold per day during the year. Occupancy

rates have remained relatively unchanged over the past

three years, despite the adverse effect of adding newer

properties to our asset base in emerging and non-urban

markets. The economic performance of long-standing

assets has remained fairly steady; however, the addition

of new hotels has had the effect of lowering aggregate

averages for economic indicators such as revenue per

available room (RevPAR) and Average Daily Rate (ADR).

As is the trend in the industry, the profitability of these

new hotels is slated to increase year-over-year and

grow annually in terms of its economic contribution

to the nation.

Local Procurement 2011 2012 2013

% of procurement spending on locally-based suppliers

Oman Convention & Exhibition Centre* 10% 73% 49%

All other operations (Omran offices, developments, and hospitality assets managed by Omran) 10% 32% 31%

Hospitality Assets Total Guest Nights (Annual)

2010 2011 2012 2013

198.3k

160.6k

116.9k134.9k

Hospitality Assets Omani Occupancy Rate

2010 2011 2012 2013

32%28%

21%

11%

Hospitality Assets Total Occupancy Rate

2010 2011 2012 2013

59.0%

38.9% 43.5% 41.4%

Hospitality Assets Available Rooms (Daily)

2010 2011 2012 2013

1,028815698394

2010 2011 2012 2013

Hospitality Assets Average Number of Rooms Sold Daily

399303260231

Indirect Economic Impact

The indirect impact of tourism is one of the more

important factors contributing to Oman’s future

prosperity. The WTTC estimates that the total

contribution of Travel & Tourism to Oman’s gross

national product is twice as large as its direct

contribution. With a government mandate to develop

the tourism industry, a fundamental approach of

Omran is to look beyond the direct company returns

and consider the full economic value that will be

generated by prospective investments. Our business

development strategy includes considerations related

to developing new geographies with untapped

potential, developing complexes that will generate

opportunity for the tertiary sector, and pursuing

mega-projects in niches that remain untouched

by the private sector.

Job creation is one of the most tangible impacts

of tourism development. Long-term growth prospects

position Oman in the top twenty countries which

will offer the best employment growth rates in the

coming decade, with a projected 3.8% growth in total

employment for Oman until 2024.x This equates to

a total employment contribution of 116,000 jobs per

year.xi Omran contributes to this by creating direct

employment for Omran staff, contractors, and hotel

operators, as well as indirect employment for the

private retail and service industry.

Wider Tourism Industry Contribution to Sector GDP 2012

45.6%54.4% Domestic Tourists

Source WTTC

International Tourists

Hospitality Assets Economic Performance (OMR)

ADR

2010 2011 2012 2013

64.070.578.7

85.1

26.5

50.3

30.6 30.7RevPAR

Spending Local

Ensuring that the economic wealth of the nation stays

and circulates within our borders is an important

consideration for Omran. Our In-Country Value (ICV)

initiatives prioritize local contractors and suppliers

for materials and other services for our hotels,

developments, and office operations.

Omran also believes that a healthy tourism sector

is one where Omanis are themselves spending within

the industry. The WTTC reports that domestic travel

spending represents 53.8% of direct sector GDP in 2013,

with growth of 11.1% for 2013.xii Omran’s own figures

show that domestic occupancy at Omran’s hotels

has increased significantly in past years and currently

stands at 32% of all guests. Omran is building new

properties, such as the largest mall in Oman, which will

attract many Omanis and promote economic activity in

the service sector.

Amounts Awarded to Local Contractors (OMR)

Alila Jabal Akhdar Musandam Resort

14 million

12 million


Supporting Omani Entrepreneurs Omran is keen to help Omani entrepreneurs and

provide support to projects that will generate new

tourism-related business. In 2013, we supported 134

small-to-medium enterprises (SMEs). As part of this

strategy, Omran awards important hotel projects to

local firms wherever possible. Since the hotel industry

often relies on overseas expertise due to a limited local

market, developing Omani experienced companies is

of high interest to Omran. For this reason, extra efforts

are made to consider local entrepreneurs that have less

experience than major bidders. In 2013 Fareeda Battashi

started delivering the interior design services for the

Khasab Resort.

The local firm was familiar with the Omani style but

had less experience with green building design. The

strategic decision helped channel 150,000 Omani Rials

to the domestic company, and served as a key learning

platform for the firm to gain experience in sustainable

tourism. Fareeda Battashi selected a number of water-

efficient fixtures and sanitary wares for the project,

used low-energy bulbs, and procured sustainable

porcelain flooring. Toxin-free fixtures were chosen to

promote good indoor air quality, as well as water

and energy-efficient devices and recyclable furniture.

The relationship with Fareeda Battashi has since grown.

The company was awarded with the lead consultancy

services for the refurbishment of the Khasab Hotel.

This project will draw upon the crafts of local artisans

to transform the Golden Tulip property to look

more ‘Omani’ as part of the new Atana brand.

The mentorship thereby gave this local supplier the

chance to integrate green building and heritage into

the services she offers to become a stronger player

in the sustainable tourism market.

Projected to start hosting events in 2016, the Oman

Convention and Exhibition Center (OCEC) is Omran’s

flagship tourism project. Conveniently located next

to the airport, the complex will be a major venue for

regional and international events. The Master Plan

includes a Convention and Exhibition Centre, four

hotels, a business park, the largest shopping mall in

Oman, and hotel apartments.

OCEC will create between 15-18,000 permanent jobs and contribute 200-240 million Omani Riyals to the national economy by 2030.

With a capacity of accommodating 3200 people in the

auditorium, the complex will generate major economic

activity once open. OCEC will create between 15-18,000

permanent jobs and will generate an annual 200-240

million Omani Riyals to the national economy by 2030.

The construction of the OCEC is also a significant

source of economic opportunity in its own right.

When construction reaches its peak in 2015, the site

Case Study: Generating Economic Opportunity with the Oman Convention & Exhibition Centre (OCEC)

will require 12,000 construction workers. Third party

studies forecast that the project will generate

295 million OMR in the local development stage

spending alone which amounts to more than 55%

of total construction spending. In 2013, more than

82 million Omani Riyals was tendered and awarded,

and 66 million Omani Riyals of new consultancy

and construction tenders were issued. OCEC looks

to Omani suppliers for equipment rentals, facilities

management, hotel suppliers, car rentals, retails and

destination management services.

Though much of the economic value is fed back into

the national economy naturally, Omran is proactive

in following initiatives that support the retention of

in-country value (ICV). We have a preferred status

policy for Omani enterprises in the tendering process

in order to support small and medium businesses.

For example, in 2013, we elected to deviate from the

common practice of importing precast concrete slabs

from abroad and used cast-in-situ concrete instead.

This channelled more, resulting in channelling more

than OMR 5 million to local contractors and suppliers.

This also meant diverting more than 1000 trucks off our

roads in order to make them safer for motorists.

Bringing the Message of Sustainability

To Our VendorsDeveloping local companies is high in Omran’s agenda.

When it comes to seeking experienced contractors

locally, there are very few whom are capable of

carrying out and delivering complex and remote

projects. Dawood Contracting, an Omani company

that was established in 1998, showed an unparalleled

keenness towards working with Omran. Despite

lacking large-scale experience, the decision was

taken to recommend Dawood Contracting for the

construction of Alila Jabal Al Akhdar resort. Although

it meant extra efforts, guidance and close monitoring,

Omran chose to support the domestic market by

awarding the bid to this local player. Since then,

Dawood Contracting have excelled in obtaining all

necessary initial approvals, setting up the site facilities

in accordance to Omran’s stringent QHSSE policies,

and continually demonstrating the highest levels of

HSE, workmanship and overall project management.

Omran considers this a success story as we have

helped a local company to enter the league of

internationally renowned contractors. Thanks to the

experience, Dawood Contracting has gained enough

confidence to bid on high-end projects in the country.

Omran awards important hotel projects to local firms wherever possible. Since the hotel industry often relies on overseas expertise due to a limited local market, developing Omani experienced companies is of high interest to Omran. For this reason, extra efforts are made to consider local entrepreneurs that have less experience than major bidders.

Local Procurement 2010 2011 2012 2013

Number of Small-to-Medium Enterprises (SMEs) supported - - 40 134


Our SocialImpactSection 4

Omran plans to have community investment focus in SMEs for tourism-related projects in 2014.

Omran is dedicated to investing in social initiatives that align with the company’s sustainability framework.


True to its corporate image, Omran contributes positively to the environmental, socio-economic and cultural spheres of the localities it works in.


Highlights Our Workforce

Job creation is an important component of tourism’s

tangible impact. The WTTC estimates that 72,000

direct and indirect jobs were attributable to the sector

in 2013, and projects growth in this figure of 10.6%

(ranking 2nd in the world for projected growth on this

metric).xiii Omran contributes to job creation by hiring

staff on its payroll, contracting work to suppliers, and

creating new jobs in hotel assets.

As of December 31st, 2013, Omran had 120 full time

employees and 781 staff who worked at hotels and

resorts owned or managed by Omran. Omran staff

were not covered by collective bargaining agreements,

but did have the chance to communicate feedback and

concerns to management through participation in

the values committee.

Though employee turnover has remained relatively

unchanged, the company has identified employee

satisfaction as an important area for improvements.

Accordingly, we have put in place new policies and

hired external contractors to adopt best practices in

talent management in 2014.

72%Omanization rate

0Lost time injuries or fatalities across all

of Omran’s developments

Total community contributions

OMR50,ooo

Omran’s female employment rate

27%Direct and indirect jobs attributable to the wider

tourism industry in Oman in 2013 (WTTC figures)

72,000Staff Retention 2010 2011 2012 2013

Total employees that left the organization 6 16 13 11

Employee Turnover Rate 10% 18% 12% 9%

Our Workforce 2010 2011 2012 2013

18-30 16 17 31 26

31-50 61 76 73 82

>50 2 9 8 12

Total Workforce 79 102 112 120

* All staff are full-time employees

Number of Employees, By Age Category

18-30 31-50 >50

2010 2011 2012 2013

2

12

82

26

61

16


Workplace Diversity

Female Workforce

24%26%

31%27%

4% 6% 7%21%

2010 2011 2012 2013

Youth Workforce (30 and Under)

2010 2011 2012 2013

20%17%

28%

22%

As % of all managersAs % of total workforce As % of total workforce

Hiring Omanis at our Hospitality AssetsInterContinental Muscat 216

Millennium 71

Atana Khasab 14

City Hotel Duqm 12

Crowne Plaza Duqm 19

Golden Tulip Dibba 10

Masira Island Resort 11

Total (Hospitality Assets) 353

Hiring Omanis at our Developments:Atana Musandam Resort 56

OCEC 50

Alila Jabal Akhdar Resort 20

Total (Developments) 126

The diversity of our employees is an asset to our

success. In 2013, 27% of our staff were women—up 5

percentage points from 2010—and as of 2013, we had

the first woman appointed to our executive team.

The company maintains a compensation structure with

Omani Workforce

2010 2011 2012 2013

As % of Executive ManagementAs % of total workforce

100%90%90%90%

76% 67% 71% 72%

a 1:1 ratio between of men and women. Omran has also

empowered women through external initiatives that

includes women’s day staff gatherings, the springboard

female entrepreneurship training program, and tourism

micro-enterprise support for women in Khasab.

Youth are another key target segment for our human

resources department. With a population that is 70%

composed of individuals under the age of 30,xiv the

national economy is in need of many new jobs for

fresh graduates. Whereas the number of youth hires

only stood at 4 individuals in 2009, more than 1 out

of 5 Omran employees were in the 18-30 age bracket.

Hiring Omanis is another important component of

Omran’s HR strategy. The government of Oman seeks

to promote employment of Omani workers in certain

sectors and job functions as part of its initiative to

up skill the Omani workforce. Omani nationals are

given priority for all positions where they possess the

necessary skills and qualifications.

Omran’s Omanization efforts are not limited to staff

hiring. As part of our commitment to national capacity

building, Omran established a mentoring program

within the OCEC construction supervision team to

allow the largest number of Omani engineers from

various disciplines gain on-the-job exposure to different

stages of construction. Our legal staff have included

a set of criteria for tenders that evaluate initiatives

undertaken by contractors to promote local Omani

employment. And finally, many CSR initiatives similarly

target young Omanis and projects that support the

employment of Omanis in indirect ways through

entrepreneurship and SMEs.

Workplace Diversity 2010 2011 2012 2013

Female workforce

As % of executive management 0% 0% 0% 16%

As % of all managers 4% 6% 7% 15%

As % of total workforce 24% 26% 31% 27%

Omani workforceAs % of executive management 90% 90% 90% 100%


Youth workforce (30 and under)As % of executive management 0% 0% 0% 0%


Training and Development 2010 2011 2012 2013

Total number of training for total workforce (Hours) 3,432 5,460 1,646 3,846

Average hours of training per year per employee 43 54 23 33

Total cost of training (OMR) 30,870 93,720 122,674 135,196

Average cost of training per individual (OMR) 391 928 989 1,146

Workforce receiving regular performance and career development review

% Of female 100%

% Of male 100%

% Of total workforce 100%

Employee Training & Development Omran invests significantly in staff development.

The amount we have spent in training is the highest yet

at 1,146 OMR per employee. In 2013, we held 70 training

courses and 15 conferences, amounting to 33 hours of

contact time on average per person. Over the year, 92%

of Omran employees received training.

Our development program also includes regular

performance and career development reviews, for

which 100% of male and female employees participate.

Training Figures Per Employee

43hrs 54hrs 23hrs 33hrs

2010 2011 2012 2013

OMR1,146OMR

989OMR928

OMR391


Creating a Respectful Environment Omran is strict about upholding its Code of Conduct and maintains a zero-tolerance approach to discrimination and harassment of any kind. Thanks to proactive yearly training, we have not faced any reported incidents of rights violations in the past 5 years. In order to strengthen our fair treatment implementation mechanisms, Omran has a strict non-reprisal policy in place to protect potential victims and encourage them to come forward.

Community Investment and Sponsorship The Corporate Social Responsibility (CSR) department at Omran is dedicated to investing in social initiatives that align with the company’s sustainability framework. The four priority areas that guide our work include education, skills development, economic growth, and community empowerment. These categories steer our social outreach in a way that sustainably enhances the quality of life for different communities around Oman. We always look for innovative ways to meet these objectives, and consider prospective initiatives on a set of criteria that weight benefits to the local community, Omran’s staff, and partners.

Community Sponsorship

2010 2011 2012 2013

OMR 50,000.00 OMR 41,240.00

OMR 70,000.00 OMR 50,000.00

Employee Health & Safety 2011 2012 2013

Number of work-related fatalities 0 1 0

Total number of man-hours (Millions) 16.5 5.5 9.3

Number of lost-time injuries 0 1 0

Lost-time injury rate (LTIR) 0.00 0.04 0.00

Number of fire drills 4 6 18

Contractor Relations 2010 2011 2012 2013

Number of significant suppliers, contractors, and other business partners that have undergone human rights Screening 5% 10% 0% 0%

Significant suppliers identified as having significant risk for incidents of child labor 0 0 0 0

Significant suppliers identified as having significant risk for incidents of forced or compulsory labor 0 0 0 0

“ Omran is committed to playing a significant role in the localities where it operates and in partnership with its stakeholders to ensure that its business operations positively contribute to the environmental, socio-economic and cultural spheres of these localities and reflect positively on its corporate image.”Omran’s CSR Statement

Contractor RelationsContractors are an integral part of the work we do, and even though they fall largely outside of the bounds of our day-to-day management, we seek to work with contractors who embody the same values, environmental standards, and ethical outlook as Omran. The OCEC is a key illustration of this. Omran has invested heavily in training and mentorship for contractors to ensure that they follow Omran’s high level QHSE standards and operate in accordance with our code of conduct.

Creating a Safe Environment Omran places health and safety at the top of our list of priorities, and we have a target of attaining zero lost-time injuries per year across all our operations and sites. All employees are responsible for following safety rules

and precautions as required by their job function, as mandated by their operational areas. Managers on their part are responsible for providing the required safety training and regular monitoring to ensuring safe working conditions.

Omran achieved 9.3 million man-hours with zero lost-time incidents or fatalities across all of our developments.


Community Impact 2010 2011 2012 2013

Total amount spent on community investments (OMR) 50,000 70,000 41,240 50,000

Total amount spent on environmental sponsorship (OMR) 5,000 7,026 11,800 5,573

• Capturing the Beauty: In 2013, Omran collaborated with the Photographic Society of Oman and supported a group of 22 photographers from the Mussandam and Al Jabel Al Akhdar where the photographers captured the beauty of their villages through their lenses. Special courses in photography were conducted by three famous Omani photographers: Rashad Al Wahaibi, Ahmed Al Kindi and Ahmed Al Toqi. The initiative was called “Capturing the Beauty”. To promote the photographers, a special corporate gift was designed and presented to Omran’s stakeholders which was an Omani Mandoos that had different Omani flavoured chocolates, presenting photos from the photographers. The Mandoos was made by Mansoor bin Rashid Al Nabhani, an Omani

craftsman who has been working for over 45 years in this field, where he learnt and inherited the skill from his father. Mansour uses different types of wood such as Mahogany and Teak and decorates them with original brass pins and nails.

The chocolates in the Mandoos were from an Omani SME “Tamrah”, a premium brand that produces exquisite Omani dates and sweets. Tamrah products received great admiration and demand since its establishment in 2011. The brand aspires to maintain its reputation for providing fine authentic Omani dates and associated products of splendid taste and quality.

Community Investment and Sponsorship (continued)

Community investment highlights for 2013 include:• Zaree: Zaree is one of Omran’s most successful

support projects in 2013. The word Zaree means an even thread in Arabic, usually made of fine gold or silver and used in brocade work. The project is a tourism-related micro-enterprise initiative for women. Piloted at the end of 2012, Omran gave the means for six local women of Khasab to welcome groups of female tourists for authentic Omani cultural experiences. Since then, the program has worked with some 24 cruises to serve over 700 female passengers and bring a taste of Omani life to the world. The program has expanded to cater to all genders and is now an established activity on tourism itineraries of tourists passing through Khasab. Since its first year, Omran partnered with the SME development organization Sharakah to provide ongoing support in delineating a five year business continuity strategy for the women.

• Masarra: Run in collaboration with the Ministry of Agriculture and Fisheries (Rural Women Department), “Masarra” is a new brand for rural women’s products that is created, financed, and supervised by Omran. Masarra is a woman’s name that comes from the Arabic word for happiness. The initiative acts to provide a link between hotels, local farmers, and rural women to create new economic opportunity in non-urban areas. The project capitalizes on the combined potential of having a single brand identity and a basket of traditional merchandise to achieve greater marketing potential for the women. The brand seeks to help them increase sales and show the nation’s non-urban products to Omanis and the world.

• Intajee: Intajee is Omran’s flagship program for new micro-business development. The name, which means “My Product” in Arabic, captures the essence of the initiative’s philosophy: to empower Omani entrepreneurs to take something of their own and transform it into sustainable business. Omran is proud to count Salma and Aisha Al Hajri among those supported in 2012. Their business, Salma’s Chocolates, is today a recognized company that operates on its own and is taking the chocolate business to new levels.

• Anti-littering Campaign: Environmental campaigns that engage businesses, community groups, schools, governments and individuals to clean up and conserve their environment. These campaigns include clean up events, plantation, recycling programs, and educational campaigns.

• Springboard: A four-week self-development programme for women facilitated by the British Council, the Springboard Programme consists of a series of workshops which are run by trainers from the region by using materials which have been specially developed for the programme. The workshop’s aims include, setting goals according to values and taking practical steps towards them, assertiveness and presenting a positive image.

• Injaz Oman: Injaz Oman is a non-profit organization (NPO) that fosters strategic partnerships with Oman’s business and education sectors. With the help of qualified and dedicated volunteers, Injaz has partnered with Omran to deliver educational programs on entrepreneurial and leadership skills.

• Musahamatee (“My Contribution”): Omran has worked with Non-Governmental Organizations (NGOs) and the Ministry of Social Development to facilitate the making of charitable donations directly from dining and accommodation bills at hotels. These funds have been channelled to a number of charitable causes by the non-profit Dar Al Atta’a foundation. Eight of Omran’s hotels and resorts currently participate in this philanthropic initiative for hotel patrons.


Our Environmental ImpactSection 5

The company is getting better every year at understanding its environmental footprint and putting in place measures to minimize its impact.

On the whole, Omran saw many improvements in company and asset environmental performance from 2012-13.


Omran has implemented an environmental management system that is certified under ISO: 14001 for adherence to international standards for environmental management.


Highlights Environmental Management at Omran

Environmental management begins with the

implementation of strong measurement and reporting

mechanisms to track environmental performance

over time. Since 2009, Omran has implemented an

environmental management system that is certified

under ISO: 14001 for adherence to international

standards for environmental management.

As a result of our environmental management systems

and a strong commitment from management to

improve environmental performance, we have pursued

many projects to improve efficiency and reduce waste

through educational programs, facilities upgrades,

and employee programs towards building a culture

of environmental stewardship. These programs have

yielded strong results such as improved energy and

water efficiency and a reduction in waste from our

office building.

On the whole, Omran saw many improvements

in company and asset environmental performance

from 2012-2013. The company’s total greenhouse gas

emissions are down 27% (and 29% per employee),

and Omran is performing better in waste management

and water consumption per office employee compared

to 2012.2 A similar story runs along our hospitality

assets. Per capita figures show that greenhouse gas,

waste, and water consumption are all following

a downward trend since 2011.

Environmental responsibility is not only an ethical imperative for the tourism sector, it is something that has real consequences on our bottom line. Global warming, extreme weather, environmental degradation-these factors can shorten peak seasons and strip Oman of the natural beauty upon which tourism depends. At Omran, we are becoming better every year at understanding our environmental footprint and putting in place measures to minimize its impact.

LEED Building at OmranIn 2012, Omran committed itself to making future

buildings to the LEED green building standard

(Leadership in Energy and Environmental Design).

Today, all nine of our development projects are

pursuing this certification.3 The standard recognizes

our investment in environmental management and

efficient use of resources in our developments. Omran

was the first company in Oman to pursue the LEED

building certification and the first in the Sultanate

to obtain USGBC membership.

Our commitment to both LEED and the principles

of sustainability extends to our staff and project

managers. Ammar Al Kharusi is the first Omani

to earn the LEED AP (Accredited Professional)

certification. As site manager for the Alila Jabal Akdar

Resort, Ammar has been instrumental in applying

green building principles and increasing the local skill

base for green buildings and sustainability in Oman.

32%Reduction in Greenhouse Gas Emissions

30%Waste recycled in 2013

LEED projects under development

9

Number of Leed Projects

2010 2011 2012 2013

57

9

5

Year-Over-Year Reductions per Employee

GHG Waste Water

-3% -4%

-29%

2As a greater number of employees now work in the field, relative figures for office operations use an estimate of average daily number of staff working out of our offices, rather than the total count of staff on payroll. This results in per capita figures for water, waste, and GHG which are more accurate and representative. For 2013, Omran estimates that 116 individuals worked as “office employees” per day.

3Our Khasab and Jabal Akhdar projects are currently completed and have LEED applications pending. The remaining 7 projects are still underway and will be submitting applications upon completion.


LEED Building at Omran (continued)

Still, pursuing LEED has not come without challenges.

The relative newness of LEED and sustainability in

Oman means Omran needs to be creative in finding

solutions to environmental challenges. As recycling

facilities are far and few between, sites such as the

Atana Musandam Resort have had to find their own

approaches in recycling waste. In the case of Khasab,

the hotel segregates waste into concrete waste, steel

waste, food waste, wood, plastics, and paper. Some

of these wastes were either re-used or recycled.

Although the lack of specific services, materials,

and know-how continues to be among the

challenges faced, Omran is gaining increasing

experience in green-building which it will continue

to apply to future projects.

“ Any vision of sustainable development must recognize that the environment must be protected to preserve & provide for the wellbeing of our future generations. Sustainable development cannot come from policies only, but must be taken as a principle guiding the choices we take. We are happy to see that not only has Omran been the pioneer of this initiative in Oman to reduce the negative impact of its development, but is also taking serious efforts to ensure that all their developments meet the stringent regulations required for the internationally recognized LEED certification.”- Dawood Contracting Company

Case Study: Green Building at Jabal Akhdar

Atop a breathtaking cliff at Jabal Akhdar mountain,

Omran is developing a resort slated to welcome its

first guests in 2014. The unique combination of natural

landscape, misty mountains, and year-round pleasant

weather make this the perfect location for an 86-

room luxury resort. To keep the natural attractiveness

of the secluded location, quiet surroundings and vast

natural landscape, our approach has been to make

environmental considerations the hallmark of this

project. Omran has designed and built this resort with

immense care and attention to details. In line with our

commitment to minimizing the environmental impact

of our assets, Jabal Akhdar resort is pursuing LEED Gold

certification for green buildings.

Omran is proud to partner with Alila, who will take

over the day to day operations and bring their global

experience and leadership in sustainable tourism to

the property.

A truly green building requires not only that our resort

is environmentally friendly, but also that that the

construction process is undertaken responsibly. Aiming

to achieve LEED Gold certification, we have built the

Jabal Akdar resort to some of the highest environmental

standards of excellence:

Waste ManagementA minimal amount of waste will be sent to landfills by:

• Segregating and diverting rubbish

Ecosystem ProtectionJabal Akhdar’s natural heritage will be protected through:

• Site designs that prevent sedimentation, erosion and

storm water runoff, and maximize open space for

local habitat

• Plantation of indigenous and adaptive flora

• The use of local materials, architecture and layout that

blend the resort into its natural surroundings

Water ConservationThe resort will generate 35% annual water savings from:

• Water efficient landscaping that uses adaptive plants

• Low flow fixtures that reduce water consumption

• An on-site sewage treatment plant that provides 60%

of irrigation requirements

Energy ConservationThe building will reduce energy use by 22% and generate

8% of energy needs from renewable sources

This is thanks to:

• Roof materials and hard landscape materials chosen

to reflect heat

• Solar panels for HWS that will provide renewable energy

• Energy efficient HVAC, well-insulated envelope, and

smart and controllable lighting

• Fuel efficient vehicles for operations


Energy ConsumptionGHG Emissions

Smart energy usage begins at two points for

a company: 1) building employee energy awareness,

and 2) investing in energy-saving devices and materials.

At Omran, we pursue both approaches.

Communicating the value and importance of energy is

a basic and necessary step to improve environmental

performance. Omran achieved a 31% reduction in total

energy use in the past year. This is mainly thanks to

electricity savings achieved through energy awareness

and a reduction of staff working inside our offices on

any given day. Increased carpooling and vehicle fuel

efficiency have also lowered our fuel usage.

Investing in energy efficient materials and devices has

further led to improvement in our energy performance.

Small actions have decreased our energy consumption

Greenhouse gases (GHG) created by mankind are the

biggest contributors to climate change. For our industry,

the majority of these emissions come from the indirect

emissions created through electricity generation and

fuel use for vehicles. Globally, five per cent of global

carbon emissions come from the tourism sector, with

approximately 1% of the total from accommodation

alone.xv As a major developer and manager of tourism

assets, Omran is transparent on the impact of its

properties on climate change.

The absolute and relative Greenhouse Gas (GHG)

emissions associated with Omran’s office operations

are down to 832 tonnes of CO2 equivalent in 2013.

The relative impact of carbon at our hotels and resorts

has also continued to decline from its high in 2011. Given

our carbon footprint results primarily from purchased

electricity, much of the relative decoupling comes from

energy savings and efficiency gains at our main office

and hotels.

and supported employee awareness of energy usage.

In addition, we have also compressed our business

working hours to 7:30am – 3:30pm by eliminating the

lunch hour. This has lowered electricity usage for our

office to an annual 51.0 GJ per office employee.

Investing in energy efficiency is central to our assets

and developments. Thanks to the LEED framework,

our developments have taken a number of steps to

ensure that energy efficiency is built into our projects

at every turn, from design to usage.

The Khasab hotel achieves energy savings of 80 % by using compact florescent lamps and investing in new solar water heaters.

* The boundary of the figures in the table is limited to operations at Omran’s headquarters. Calculations use an employee count based on the estimated number of individuals within offices on any given workday. For Hospitality Assets, see page 46

GHG Emissions (tonnes of CO2 Equivalent) 2010 2011 2012 2013

Direct ghg emissions

Total scope 1 - i.e. Emissions from sources that are owned or controlled by the reporting entity. 254 378 468 302

Indirect ghg emissions

Total scope 2 - i.e. Indirect ghg emissions from consumption of purchased electricity, heat or steam 477 540 668 530

Total greenhouse gas emissions 730 918 1,136 832

Ghg emissions per office employee* 7.4 9.0 10.1 7.2* The boundary of the figures in the table exclude Omran’s Investments, Projects, and Hotel Assets. Omran does not use Diesel fuel in its operations.

Fuel Consumption 2010 2011 2012 2013

Vehicle fuel consumption – gasoline (L) 39,525 139,800 172,976 111,851

Energy Consumption (GJ) 2010 2011 2012 2013

Direct energy 3,097 4,616 5,712 3,693

Indirect energy 2,002 2,266 2,807 2,224

Total energy (direct + indirect) 5,099 6,882 8,519 5,917

Energy consumption per office employee* 64.5 67.5 76.1 51.0

* The boundary of the figures in the table is limited to operations at Omran’s headquarters. Calculations use an employee count based on the estimated number of individuals within offices on any given workday. For Hospitality Assets, see page 46. Due to a clerical error in the 2012 report, figures above are restated

Omran Offices & StaffGreenhouse Gas Emission ( Tonnes of CO2e)

Omran’s Hospitality AssetsGHG per Guest Night (kg CO2e)

2010 2011 2012 2013

* Hospitality asset figures are detailed on p. 46

2010 2011 2012 2013

Omran Offices & StaffOmran Office Total Energy (GJ)

Hospitality AssetsElectricity per Guest Night (kWh)

* Hospitality asset figures are detailed on p. 74

2010 2011 2012 2013

2010 2011 2012 2013

5, 099

6,882

8,519

5,917 128161 143

120

730

918832

1,136

112

137

156

122


Water Consumption

Water is a very precious resource for a region where

supplies are small and often depletable. Oman is

fortunate to have renewable water, the majority

of which comes from the ground.xvi However, Oman

Water Society projects that the demand on the nation’s

limited supply will increase in coming decades to create

a large water deficit.xvii This makes water conservation

a highly salient and pressing priority.

Water at our office is used for cleaning, washrooms

and maintenance. Although net water use has increased

over years, this is the result of a larger workforce.

Consumption levels per employee have remained fairly

steady and continue to be at approximately half the

typical international rate for office environments.

Water Consumption (cubic meters) 2010 2011 2012 2013

Water consumption from municipal water supplies or other water utilities 626 617 718 716

Water consumption from other sources 0 0 0 0

Water consumption per office employee* 7.9 6.0 6.4 6.2

* The boundary of the figures in the table is limited to operations at Omran’s headquarters. Calculations use an employee count based on the estimated number of individuals within offices on any given workday. For Hospitality Assets, see page 46.

There is acute water shortage in Khasab, making

responsible use imperative necessity rather than an

option. In order to overcome this, the Atana Musandam

Resort has had to create its own desalination plant to

generate potable water. As this is a challenging process,

our hotel has invested in water minimization measures

and technologies. Aerators in taps and flushing tanks

have minimized consumption levels, and plumbing for

washrooms provides maximum force using minimum

water. The facility also has a sewerage treatment plant

that recycles grey water for irrigation.

Case Study: Saving Water in Khasab

Omran Offices & StaffOmran Company Water Consumption (m3)

“ Sustainability was the way of life of our ancestors: because falaj systems use gravity flow, water use never exceeded water supply. The Sultanate’s traditional methods of water management provide important lessons for the future. Using water fairly in times of plenty and times of scarcity is one of these lessons. Matching water use to water availability, a fundamental characteristic of the falaj system, is an essential element in planning water management in Oman’s climatic conditions.”- Oman Water Society publication

Omran’s Hospitality Assets excluding GT KhasabWater Consumption per Guest Night (Litres)

2010 2011 2012 2013

.4k

1.6k 1.4k

1.1k

2010 2011 2012 2013

626617

718 716

Consumption levels per employee have remained fairly steady and continue to be at approximately half the typical international rate for office environments.

Water at our hotel assets is used for landscaping, guest

accommodations, and cleaning. We are more effective

at making savings and have brought levels down to 1.1

cubic meters per occupant. The majority of our LEED

developments are also making water savings

an integral part of building plans.


Waste Management

Omran produces waste at its offices, developments, and

hospitality assets. Our printers minimize paper and ink

usage by having a double-sided printing and black and

white cartilage default setting. Our office operations do

not produce significant amounts of waste and yearly per

capita levels remain relatively constant at approximately

6 kilograms per employee. This is largely due to

employees taking a shorter workday at the office that

excludes a lunch break. Omran also continues to recycle

approximately 30% of its desk waste, mainly paper.

Omran has worked on waste reduction in its properties

and developments. Relative levels of waste per occupant

are down to 12.2 kg for our hospitality assets. At our

developments, materials are sorted on sight and recycled

wherever possible. And we have worked with the local

community in Jabal Akhdar on an anti-littering campaign

that drew in some 200 volunteers.

Waste (kilograms & Percentage) 2010 2011 2012 2013

Total waste produced (kg) 150 150 200 200

Total waste recycled (%) 10% 20% 30% 30%

Project-produced wastes being recycled (%) 50%

Waste produced per office employee (kg)* 1.9 1.5 1.8 1.7

Waste recycled per office employee (kg)* 0.19 0.29 0.54 0.50

* The boundary of the figures in the table is limited to operations at Omran’s headquarters. Calculations use an employee count based on the estimated number of individuals within offices on any given workday. For Hospitality Assets, see page 46

Omran Offices & StaffOmran: Waste & Recycling

Hospitality AssetsWaste per Guest Night (kg)

* Hospitality asset figures are detailed on page 74

2013

2012

2011

2010

30% 200 kg

200 kg

150 kg

150 kg

30%

20%

10%

Waste recycled Waste sent to landfills

7.1

12.2 13.112.2

2010 2011 2012 2013


Our Cultural HeritageSection 6

A key way of celebrating our heritage is to engage with it actively in the present-day.

Omran makes the preservation and strengthening of Omani heritage one of the four elements of its sustainable tourism strategy.


Engaging with our heritage ensures that our work has one foot grounded in the past, and one in the present.


Oman’s heritage is filled with distinctive history, arts, and architecture that cannot be found anywhere else in the world. This cultural richness represents the foundation upon which our growing tourism industry is built. Recognizing the importance of this connection, Omran makes the preservation and strengthening of Omani heritage one of the four elements of its sustainable tourism strategy. In practical terms, this means anything from using arts and crafts throughout hotels, to building developments with traditional architectural features. Although the approach varies by project, the purpose is always the same: To provide an authentic, Omani experience for guests.

A key way of celebrating our heritage is to engage with

it actively in the present-day. We often use traditional

designs and patterns from our forefathers, but equally

encourage newer work by Omani artists. Our initiatives

such as Capturing the Beauty (our training programs for

photographers) promote engaging with Omani heritage

by engaging with the culture through contemporary

mediums. This ensures that our work has one foot

grounded in the past, and one in the present.

Incorporating Heritage in Hospitality Assets

Arts and crafts represent a key way in which hotel

guests experience Omani culture. Accordingly, we

look to incorporate traditional elements at every turn

when choosing articles for use in our hospitality assets.

Our hotels showcase works of art made exclusively by

Omani artists, national artifacts, and traditional crafts.

Architecture and interior design are other element

of the guest experience that express the distinctive

Omani style. The Atana Mussandam Resort in Khasab

is a good example: guests are immediately struck by

a distinctive Omani ceiling in the dining room, painted

beams resembling Omani fortified residences, and light

fixtures made of clay and wood. Even simple things,

such as silverware, convey subtle expressions

of Oman’s heritage.

The Atana Musandam Resort is designed with a number

of features that highlight Oman’s culture and heritage.

Its external stone facade is modelled after the Bait

Al Quful site. Structurally, the built form is low-rise

and spread out to resemble the local architecture and

planning of the peninsula. The finish on the timber

doors and window emulate the rough, heavy and

unfinished look that is found in forts and old buildings.

These elements are bound using ropes in the traditional

manner and finished by traditional hand-made iron

fittings. Other elements, like flooring and paving, are

further being treated using natural stone pavers, flag

stones, and cobbles. A rough plaster finish is used on

block walls to give the hotel a rustic Omani look.

The property has been designed to give guests a truly cultural experience. The overall landscape concept was inspired by the traditional countryside, and made up of elements seen in traditional Omani farmsteads. An adaptation of a traditional Omani well was installed as a focal feature, containing interpretative historical information for hotel guests. The property also took into consideration the cultural traditions for domestic occupants: private clusters were designed to accommodate large Omani families and kept in mind their privacy and comfort.

Our Cultural Heritage Case Study: Incorporating Heritage in Khasab


Incorporating Heritage in Developments

Omran is continually seeking to create developments that use traditional features of Omani architecture. At the Alila Jabal Al Akhdar property, we are modeling the building’s external façade on elements found in the nearby Al Sarrab village. Only few kilometers away, this abandoned housing community is entirely constructed from local mountain stones, and remains standing to this day. Omran takes inspiration from this old style, and all buildings at the resort mirror its character. The architecture also draws on elements from old Omani homes such as arches, niches and timber structural elements, which take precedence over all else.

What’s in a Name?Names give us a sense of identity. A sense of belonging.

At Omran, we celebrate our diverse cultural heritage

by naming our initiatives after concepts that are Omani

through and through. Our micro-enterprise project

for women, Zaree, is a great example. Its name comes

from the decorative thread in the Omani attire, turned

into to a successful and sustainable business idea for

tourists visiting Khasab. Other CSR initiatives such as

Musahamtee (my contribution) and Intajee (my product)

similarly use traditional Arabic to give a sense

of common Omani identity and responsibility.

Our developments and properties also draw on tradition.

The rest area development is named Aber after the

Arabic world for bypasser, and the new Atana Spa will

be named Galo after the time-honored pre-wedding

ritual for brides. All these brand names communicate

important ideas. They touch people’s hearts, preserve our

heritage, share the country’s natural beauty, and send

a message that we celebrate our culture.

The interior design and landscaping of Alila Jabal Akhdar

draws on a number of elements that celebrate Omran’s

diverse heritage. The landscaping reflects the typical

orchards watered through a Falaj system associated

with the Hajar Mountain Range. The landscaping also

makes extensive use of rosebushes - an allusion to

Jabal Akhdar’s local rosewater industry. The site also

features over 400 traditional pieces of pottery, all

made in nearby Bahla. Mural paintings by Omani artists

Saud Al Hanini and Jumah Al Harthi were chosen to

reflect traditional Pomegranate twigs found in Jabreen

Castle. Inside the hotel, furnishings use textiles and

fabrics for cushions, rugs and wall hangings made by

many weavers throughout the Sultanate, and palm leaf

baskets can be found in every guestroom. Traditional

cloth bags made of woven “Wizar” (cloth worn by

Omani men) fabric from Samail additionally adorn

different guest appliances. Together, this art, pottery,

textile, and basketwork melds into a guest experience

with a distinctly Omani feel.


Atana

Atana’s Vision‘’To be a regional leader in the hotel industry, by promoting the Omani hospitality experience and culture while being sustainable’’

Despite having a culturally rich and diverse nation,

many hotels and resorts in the country do not provide

a guest experience that emphasizes Oman’s

uniqueness. Omran’s response to this is to create

the first hospitality brand in the GCC dedicated

specifically to national cultural heritage. By forming

an independent subsidiary and trademark with the

name “Atana,” a dedicated team will bring an authentic

Omani experience to the hotel industry. The Atana

corporate staff in Muscat will work full time to gain

specialization in this profitable and growing niche

market to become a hotel operator for a range of

properties around the Sultanate.

Omran has already soft launched Atana in some

of its properties. The brand has brought diverse

richness of Oman’s culture by incorporating crafts

into hotels, infusing traditional art into interior design,

and interlacing Omani culture into every service

opportunity. To link the past to the present, the brand

has combined traditional and contemporary elements

of our culture. By providing a consistent level of 4 star

hotel service, the brand is positioning Omani hospitality

as one of elegance and quality.

As many of Omran’s assets are in non-urban locations,

sustainable development of local communities is

central to Atana’s work. The geographic spread is an

opportunity for Atatna to showcase local skills and to

recruit, develop and retain top quality employees from

all corners of Oman. The Atana approach is therefore

destination driven; every Omani hospitality experience

will be focused unique to the location of the hotel.

Properties will not exceed 150 keys to keep a local

and personalized feel.

Interview with an Omran EmployeeOmran talks to Dalida Abdulnour about Atana

Q: What does Atana mean to you?D: The proposition of the [Atana] brand is ‘Shades of

Oman.’ The word Atana is an Arabic word meaning:

he came to us – leveraging on hospitality being a

second nature to Omani’s, and the guests choice to visit

an Omani establishment. With this brand, we want to

celebrate the diversity of our culture, the differences

from North to South, East to West, old and new.

Q: How did the idea for Atana come about?D: In my opinion, we could have created a brand that

is just like any other 4 star brand in the world – easy

to do and a piece of cake! But the question was: as an

Omani company, taking part in shaping the tourism

sector in Oman: what can we do to contribute to the

country? To our heritage? To our culture? The answer

came through creating the whole brand of Atana to be

based on one clear foundation: Omani. Indeed, this took

a lot of effort and digging deep into our Omani roots to

pick and select the best foundations to form the base of

Atana. These roots are historical yet contemporary and

were known for generations: The Omani Hospitality.

The Oman Today.

Q: What is the objective-if any-behind the brand experience? How is this achieved?D: We want to educate people about our culture. We

love it and are proud of it. It is rich and vivid and we

want to celebrate this through Atana, within Oman

and the whole world. We decided that some major

Arabic phrases used in all our collaterals should be

written with Omani Arabic dialect from all over

Oman- you can’t believe how diverse just this part

is. Walking into an Atana, you should feel like you’re

walking into an Omani home. The key areas in

the hotel such as lobby (majlis), reception (rozna),

room (hojra), gym (tamreen), restaurant (mawra:

kitchen) and mini fridge (thalaja) are all named after

the rooms in a typical Omani home. We even

introduced ‘Rashid & Mayya’, which are our kids corner,

and are growing into shaping their own personality,

with kids menus and activities shaped around them.

Also, two of my favorite brand experiences are working

with local businesses and celebrating Omani Talent:

for example, we sourced all our toiletries from an

Omani SME and made our laundry bags through the

Omani Women association in Khasab for our 1st two

properties- on the Omani Talent, we partnered with

Chef Issa Al Lamki, a celebrity chef, to create our

Mawra concepts and menu, and with Salah Al Zadjali,

a talented musician, for all our Atana music such as

lounge music. All of this is to give the guest the feeling

of walking into an Omani home, reflect the Omani

hospitality and embrace the greeting rituals that usually

take place with an Omani family, and experience

Oman in its many shades. This is our way of saying:

You are most welcome.

Dalida AbdulnourBrand Manager


Appendices

The report is written in accordance with the Global Reporting Initiative (GRI) G3.1 guidelines for sustainability reporting.

This section presents the bigger picture of the impact we have on our community.


The indicators and disclosures in this report send a strong signal that our company is serious about taking ownership over the full extent of our operations.


Appendix A: Reporting Approach and Parameters

Report BoundaryFor the purposes of our GRI check, the boundary for

this report is limited to quantitative performance

at our main office in Muscat. The GRI 3.1 disclosures

falling within these boundaries are clearly indicated

throughout this report (“Omran Offices & Staff”), and

summarized on page 81. However, as the full impact in

asset development, management, and investment is

not captured by this limited boundary, we choose to

make select disclosures that go beyond our head office

operations. Covering information on our hotels and

construction projects presents the bigger picture of the

impact we have on our community.

Readers will notice results in a more transparent report

than ever. For our hospitality assets, we have selected

30 indicators that focus on the environment and

economic performance (summarized on page. 82).

For construction projects, we continue to focus

on health and safety performance and planned

environmental impact, as these are the main concern

for our developments. Our investments fall outside

of the boundary of our reporting, as we typically

play the role of silent investors and exert almost no

day-to-day control.

Our Approach to DataIn order to present a fair and complete picture of the

company’s impact, Omran collects data on operations

that are not limited to activities at the head offices in

Muscat. This includes information on Hospitality Assets

and Developments.

As our different projects operate on different scales

and realities, caution needs to be applied in aggregating

data. For instance, it would be misleading in most cases

to present averages of a large project such as the Oman

Convention and Exhibition Centre with a much smaller

entity such as the Salalah Seafood Restaurant. For this

reason, our approach make use of weighted averages

rather than a simple arithmetic mean. Our report also

presents relative figures (for instance, per capita figures

by employee or by hotel occupant). These allow for

a fairer and normalized comparison over time and

across operations of different sizes. Information

presented in this report has not received third

party assurance.

Appendix B: Glossary and Acronyms

AP Accredited Professional

CEO Chief Executive Officer

CFO Chief Financial Officer

COO Chief Operating Officer

CO2e Carbon Dioxide Equivalent

CSR Corporate Social Responsibility

DG Director General

GCC Gulf Cooperation Council

GDP Gross Domestic Product

GHG Greenhouse Gas

GRI Global Reporting Initiative

HC Human Capital

HR Human Resources

HSE Health, Safety, and the Environment

HVAC Heating, Ventilation, and Air Conditioning

HWS Hot Water Systems

ICV In-Country Value

ISO International Organization for Standardization

ITCs Integrated Tourism Complexes

LEED Leadership in Energy and Environmental Design

LNG Liquefied Natural Gas

LTIR Lost-Time Injury Rate

NGO Non-Governmental Organization

NPO Non-Profit Organization

OCEC Oman Convention & Exhibition Center

OMR Omani Rials

Q1 First Quarter (January 1 – March 31)

Q2 Second Quarter (April 1 – June 30)

RevPAR Revenue per Available Room

SMEs Small and Medium Enterprises

T&T Travel and Tourism

UNWTO United Nations World Tourism Organization

USGBC U.S. Green Building Council

WTTC World Travel and Tourism Commission

Appendix C: Management Committees

Fortnightly

Chair: ECO, Dep:CFO, Secretary:

Hd BP

Membership: COO,CPO, VP AM, VP CS,

VP EA

Implementation of Corporate Objectives

Monthly

Chair: ECO, Dep:COO, Sec: Planning

Coordinator

Membership: CPO,AM, VP BS, RCM,

VP CA

Project Review and Best Practise

Sharing

Fortnightly

Chair: ECO, Sec:AM Coordinator

Membership: CFO,AM

Asset Performance review

Fortnightly

Chair: ECO, Sec:AM Coordinator

Membership: CFO,Inv Manager

JV Status Review

On invitation

Chair: VC Chairperson Sec:

VC Member

Membership: VCMembers

Review of Initiatives & Issues

On invitation

Chair: CPO Sec: HR Manager

Membership:

HR Matters for Level B9 to E18

Management Developments Asset Management Investment Values HR


Appendix D: Materiality Assessment

Omran’s materiality assessment guides the content of the sustainability report by identifying high-impact topics that are

of high concern to interested parties. To improve credibility and utility of this framework, Omran plans to engage a greater

number of its stakeholders participate in the assessment process in the future. Top areas include indirect economic impacts,

employee satisfaction, and local communities.

Appendix E: Summary Table of Key Performance IndicatorsThe following table summarizes Omran’s performance on 30 different indicators.

Unit Reporting Boundary* 2010 2011 2012 2013

Economic

1. Total Infrastructure Investment OMR 7,241,703 15,641,469 33,973,217 30,485,101

2. Number of Ongoing Development Projects # 6 7 8 7

3. Number of Tourism Assets Managed # 10 10 8 8

4. Number of Joint-Venture Investments # 9 10 11 11

5. Local ProcurementOCEC % 10% 73% 49%

Other Operations % 10% 32% 31%

6. Number of SMEs Supported # 40 134

7. Total Amount Spent on Community Investments OMR 50,000 70,000 41,240 50,000

Workforce & Human Capital Development

8. Total Workforce # 79 102 112 120

9. Employee Turnover Rate Ratio 10% 18% 12% 9%

10. Female Workforce

As % of Executive Management % 0% 0% 0% 16%

As % of all managers % 4% 6% 7% 15%

As % of total workforce % 24% 26% 31% 27%

11. Omani Workforce



12. Youth Workforce (30 & under)



13. Hours of Employee Training

Total Workforce # 3,432 5,460 1,646 3,846

Per employee # 43 54 23 33

14. Cost of Employee Training

Total Workforce OMR 30,870 93,720 122,674 135,196

Per employee OMR 391 928 989 1,146

Contractor Relations and Health & Safety

15. Number of work-related fatalities # 0 1 0

16. Total number of man-hours (millions) # 16.5 5.5 9.3

17. Number of Lost-Time Injuries # 0 1 0

18. Lost-time injury rate (LTIR) Ratio 0.00 0.04 0.00

19. Number of Fire Drills # 4 6 18

20. Number of significant suppliers, contractors, and other business partners that have undergone human rights Screening

# 5% 10% 0% 0%

21. Significant suppliers identified as having significant risk for incidents of child labor

# 0 0 0 0

22. Significant suppliers identified as having significant risk for incidents of forced or compulsory labor

# 0 0 0 0

Material Matrix Omran (2013)

12

3

4

5

67

8

9

10

11

12

1314

1516

17

18

19

20

21

22

23

24

25

26

2728

29

30

31

32

34

35

36

37

38

39

40

41

42

43

44

45

4748

49

50

46

33

Significance of Impacts

Influ

ence

on

Stak

ehol

der A

sses

smen

ts a

nd D

ecis

ionsLeast Material

Somewhat Material

Very Material

1 - Indirect Economic Impacts

2 - Employee Satisfaction

3 - Local Communities

5 - Preservation of Heritage

6 - Employment

7 - Procurement Practices

4 - Occupational Health and Safety

8 - Products and Services

9 - Constructing LEED Certified Buildings

10 - Overall Environmental Spending

11 - Materials

12 - Corporate Communications

13 - Corporate Governance

14 - Energy

15 - Anti-corruption

16 - Emissions

17 - Compliance

18 - Diversity and Equal Opportunity

19 - Supplier Environmental Assessment

20 - Supplier Assessment for Impacts on Society

21 - Anti-competitive Behaviour

22 - Non-discrimination

23 - Effluents and Waste

24 - Training and Education

25 - Compliance

26 - Water

27 - Transport

28 - Biodiversity

29 - Supplier Assessment for Labour Practices

30 - Economic Performance

31 - Investment Agreements

32 - Supplier Human Rights Assessment

33 - Customer Health and Safety

34 - Labour Practice Grievance Mechanisms

35 - Grievance Mechanisms for Impacts on Society

36 - Environmental Grievance Mechanisms

37 - Assessment

38 - Compliance

39 - Security Practices

40 - Customer Privacy

41 - Forced of Compulsory Labor

42 - Market Presence

43 - Human Rights Grievance Mechanisms

44 - Equal Remunerations for Men and Women

45 - Labor/Management Relations

46 - Child Labour

47 - Freedom of Association and Collective Bargaining

48 - Product and Service Labeling

49 - Public Policy

50 - Indigenous Rights* = Omran Head Office; = Hospitality Assets; = Developments; = Investments. NB: As an administrative entity, the Omran head office has a number of staff on its payroll that work on for the company’s hospitality assets, Developments, and Investments. Projects and properties falling under each category as listed on page 18


2,3722,037

1,586

803

* = Omran Head Office; = Hospitality Assets; = Developments; = Investments. NB: As an administrative entity, the Omran head office has a number of staff on its payroll that work on for the company’s hospitality assets, Developments, and Investments. Projects and properties falling under each category as listed on page 18

Appendix E: Summary Table of Key Performance Indicators (continued)

Unit Reporting Boundary* 2010 2011 2012 2013

Environment

23. Greenhouse Gas Emissions (CO2e)

Direct (Scope 1) Tonnes 254 378 468 302

Indirect (Scope 2) Tonnes 477 540 668 530

Total Tonnes 730 918 1,136 832

24. Vehicle FuelConsumption

Gasoline Litres 39,525 139,800 172,976 111,851

Diesel Litres 0 0 0 0

25. Energy Consumption

Direct GJ 3,097 4,616 5,712 3,693

indirect GJ 2,002 2,266 2,807 2,224

Total GJ 5,099 6,882 8,519 5,917

26. Water Consumption m3 626 617 718 716

27. Total Waste Produced kg 150 150 200 200

28. Total Waste Recycled % 10% 20% 30% 30%

29. Number of LEED Projects # 5 5 7 9

30. Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations

OMR 0 0 0 0

2010 2011 2012 20132010 2011 2012 2013

1,3821,4331,580

973

64.4k

44.7k

28.6k

12.4k

2010 2011 2012 2013

21.8k

2010 2011 2012 20132010 2011 2012 2013

Hospitality AssetsOmani Employment Rate

Hospitality AssetsOmani Occupancy Rate

Hospitality AssetsGHG per Guest Night (kg of CO2e)

2010 2011 2012 2013

44%

11%

21%

28%32%

41%

34% 30%

GHG

Hospitality AssetsTotal GHG (Tonnes of CO2e)

Domestic Occupants

Hospitality AssetsTotal Number of Omani Guest Nights

Omanisation

Hospitality AssetsTotal Omani Employment

Appendix F: Summary Performance of Hospitality Assets

21.4k20.4k

13.8k

112137

156

122

Occupancy

Hospitality AssetsAverage Number of Rooms Sold Daily

2010 2011 2012 2013

Assets

Hospitality AssetsNumber of Operating Assets

2010 2011 2012 2013

45 5

7

231 260 303 399

Hospitality AssetsTotal Occupancy Rate

Hospitality AssetsEconomic Performance (OMR)

Hospitality AssetsAvailable Rooms (Daily)

2010 2011 2012 2013 2010 2011 2012 2013

59.0%

1,028

815698

39438.9%

43.5% 41.4%

Water

Hospitality AssetsTotal Water Consumption (m3)

2010 2011 2012 2013

1.2m 1.2m 1.3m 23.722.921.8

15.00.9m

2010 2011 2012 2013 2010 2011 2012 2013

Hospitality AssetsWater Consumption per Guest Night (Litres)

Hospitality AssetsWaste per Guest Night (kg)

Hospitality AssetsElectricity per Guest Night (kWh)

2010 2011 2012 2013

10.6K

7.1

13.112.212.2

8.6K

4.8K

8.0K

2010 2011 2012 20132010 2011 2012 2013

128161 143

120

Waste

Hospitality AssetsTotal Waste Disposed (Tonnes)

Energy

Hospitality AssetsTotal Electricity Consumption (kwh)

2010 2011 2012 2013

85.1

50.3

30.6 30.7 26.5

78.770.5

64.0ADR

RevPAR


Appendix G: GRI Index

Disclosure Level Location/Commentary

STANDARD DISCLOSURES PART I: Profile Disclosures

1. Strategy and Analysis

1.1 Statement from the most senior decision-maker of the organization.

Fully CEO’s Message on page 10

1.2 Description of key impacts, risks, and opportunities. Partially CEO’s Message on page 10 and Governance on page 23

2. Organizational Profile

2.1 Name of the organization. Fully Our Company on page 16.

2.2 Primary brands, products, and/or services. Fully Our Company on pages 16-17 and Atana on page 72.

2.3 Operational structure of the organization, including main divisions, operating companies, subsidiaries, and joint ventures.

Fully Governance on page 22 and Management Committees on page 78. For a list of Omran’s Developments, Hospitality Assets, and Investments, see pages 18 and 19.

2.4 Location of organization’s headquarters. Fully Headquarters on page 16.

2.5 Number of countries where the organization operates.

Fully Our Company on pages 16 and 17.

2.6 Nature of ownership and legal form. Fully Our Company on pages 16 and 17.

2.7 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries).

Fully Omran exclusively serves the Oman tourism market. It customers/beneficiaries include hotel operators, guests, the general public, and development partners. See page 18 for a geographic breakdown of operations.

2.8 Scale of the reporting organization. Partially Reporting Approach and Parameters on page 78 and Omran’s Activities on page 18.

2.9 Significant changes during the reporting period regarding size, structure, or ownership.

Fully The future direction, structure, and ownership is being review by the Board of Directors. However, no significant changes have yet been made to Omran. For a year-on-year overview of Omran’s Developments, Hospitality Assets, and Investments, see page 19.

2.10 Awards received in the reporting period. Fully Awards and Accolades on page 27.

3. Report Parameters

3.1 Reporting period (e.g., fiscal/calendar year) for information provided.

Fully Omran reports on the basis of a calendar year.

3.2 Date of most recent previous report Fully About this Report on page 8.

3.3 Reporting cycle Fully Omran reports on an annual basis.

3.4 Contact point for questions regarding the report or its contents.

Fully Contact Information on page 8.

3.5 Process for defining report content. Fully Materiality at Omran on page 22 and Materiality Assessment on page 80.


3. Report Parameters (continued)

3.6 Boundary of the report Fully Report Boundary on page 78, Omran’s Activities on page 18, and Summary Table on page 81.

3.7 State any specific limitations on the scope or boundary of the report

Fully Report Boundary on page 78, Omran’s Activities on page 18, and Summary Table on page 81.

3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other entities that can significantly affect comparability from period to period and/or between organizations.

Fully Report Boundary on page 78 and Omran’s Activities on page 18.

3.9 Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the Indicators and other information in the report.

Fully Our Approach to Data on page 78.

3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement.

Fully Minor changes have been made in figures for our total infrastructure investment (see footnotes on pages 16). Due to conversion errors in the 2013 report, figures for GHG and energy have been corrected in this report (indicators #23, #24, and #25 in Appendix E).

3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.

Fully Reporting Approach and Parameters on page 78.

3.12 Table identifying the location of the Standard Disclosures in the report.

Fully GRI Index on page 84-91.

3.13 Policy and current practice with regard to seeking external assurance for the report.

Fully Omran’s sustainability reports are not currently assured by third parties.

4. Governance, Commitments, and Engagement

4.1 Governance structure of the organization Fully Governance on page 23 and Workplace Diversity on page 44.

4.2 Indicate whether the Chair of the highest governance body is also an executive officer.

Fully Board of Directors on page 24.

4.3 For organizations that have a unitary board structure, state the number and gender of members of the highest governance body that are independent and/or non-executive members.

Fully Omran has a two-tier board structure. For more information, see Board of Directors on page 24.

4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest governance body.

Fully Board of Directors on page 24. As the sole shareholder, the government can relay direction to the board and appoint/remove any member of the Board.

4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives, and the organization’s performance.

Fully Board of Directors on page 24 and Executive Management Team on page 25.

4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided.

Fully Ethical Conduct and Anti-Corruption on page 26 and Board of Directors on page 24.

4.7 Process for determining the composition, qualifications, and expertise of the members of the highest governance body and its committees, including any consideration of gender and other indicators of diversity.

Fully See Board of Directors on page 24. As appointments/removals to the highest governance body are determined in a closed manner by the sole shareholder (the government), Omran does not take part in determining process for consideration of candidates to the Board.



STANDARD DISCLOSURES PART I: Profile Disclosures

4. Governance, Commitments, and Engagement (continued)

4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to economic, environmental, and social performance and the status of their implementation.

Fully Our Values on page 20 and Ethical Conduct and Anti-Corruption on page 26.

4.9 Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental, and social performance.

Partially Board of Directors on page 24.

4.10 Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance.

Fully Executive Management Team on page 25.

4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organization.

Fully Omran conducts environmental impact assessments for all its prospective projects. These assessments weigh known and unknown risks for a consideration that allows for a precautionary approach to new construction projects.

4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses.

Fully Governance on page 23.

4.13 Memberships in associations and/or national/international advocacy organizations in which the organization.

Fully Governance on page 23.

4.14 List of stakeholder groups engaged by the organization.

Fully Omran has engaged the stakeholders listed in Our Stakeholders on page 21.

4.15 Basis for identification and selection of stakeholders with whom to engage.

Fully The list of stakeholders is identified by the communications department and is reviewed annually. Over the course of time, and as Omran’s sustainability program matures towards the new G4 standard, the company will look to identify more rigorous approaches to engaging key stakeholders.

4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group.

Fully For the purposes of the 2013 sustainability report, Omran has engaged employees and individuals from the hospitality, construction, and tourism industries. Omran plan to increase this engagement to occur more frequently than on an annual basis.

4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting.

Fully Materiality at Omran on page 22 and Materiality Assessment on page 80.


STANDARD DISCLOSURES PART II: Disclosures on Management Approach (DMAs)

Disclosure on Management Approach (EC)

Asp

ects

Economic performance Fully Direct Economic Impact of Investment on page 33.

Market presence Fully Direct Economic Impact of Investment on page 33.

Market presence Fully Indirect Economic Impact on page 35.

Disclosure on Management Approach (EN)

Asp

ects

Materials Fully LEED Building at Omran on page 55.

Energy Fully Energy Consumption 59 and Energy Conservation on page 57.

Water Fully Water Consumption on pages 60 and 61

Biodiversity Fully Ecosystem Protection on page 57.

Emissions, effluents and waste Fully GHG Emissions on page 58, and Waste Management on pages 30 and 35.

Products and services Fully About Omran on page 12.

Compliance Fully Governance on page 23.

Transport Fully Environmental risks related to transport are not identified as being material to Omran’s operations.

Overall Fully Environmental Management at Omran on pages 55.

Disclosure on Management Approach (LA)

Asp

ects

Employment Fully Our Workforce on pages 43, 44, and 45

Labor/management relations Fully Our Workforce on page 43.

Occupational health and safety Fully Creating a Safe Environment on page 45.

Training and education Fully Employee Training & Development on page 45.

Diversity and equal opportunity Fully Workplace Diversity on page 44.

Equal remuneration for women and men Fully Workplace Diversity on page 44.

Disclosure on Management Approach (HR)

Asp

ects

Investment and procurement practices Fully Spending Local on page 35.

Non-discrimination Fully Creating a Respectful Environment on page 46.

Freedom of association and collective bargaining Fully Workplace Diversity on page 44.

Child labor Fully The risk of child labor is not identified as a significant to Omran’s operations.

Prevention of forced and compulsory labor Fully The risk of forced and compulsory labor is not identified as a significant to Omran’s operations.

Appendix G: GRI Index (continued)


Appendix G: GRI Index (continued) Disclosure Level Location/Commentary

STANDARD DISCLOSURES PART III: Performance Indicators

Economic

Market presence

EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation.

Fully Spending Local on page 35 and Supporting Omani Entrepreneurs on page 36.

EC7 Procedures for local hiring and proportion of senior management hired from the local community at significant locations of operation.

Fully Workplace Diversity on page 44.

Indirect economic impacts

EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts.

Fully Indirect Economic Impact on page 35.

Environmental

Energy

EN3 Direct energy consumption by primary energy source.

Fully Energy Consumption on page 58 and Case Study: Green Building at Jabal Akhdar on page 57.

EN4 Indirect energy consumption by primary source. Fully Energy Consumption on page 58.

EN6 Initiatives to provide energy-efficient or renewable energy based products and services.

Partially LEED Building at Omran on page 55.

Water

EN8 Total water withdrawal by source. Fully Water Consumption on page 60 and Case Study: Green Building at Jabal Akhdar on page 57.

Emissions, effluents and waste

EN16 Total direct and indirect greenhouse gas emissions by weight.

Fully GHG Emissions on page 58.

EN22 Total weight of waste by type and disposal method. Fully Waste Management on page 62.

Overall

EN30 Total environmental protection expenditures and investments by type.

Partially Community Investment and Sponsorship on page 46

Social: Labor Practices and Decent Work

Employment

LA1 Total workforce by employment type, employment contract, and region, broken down by gender.

Fully Our Workforce on pages and 42 and 43.

LA2 Total number and rate of new employee hires and employee turnover by age group, gender, and region.

Fully Our Workforce on pages and 42 and 43.

LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations.

Fully Not Applicable. Omran does not hire on a part-time basis.


Disclosure on Management Approach (HR) (continued)

Asp

ects

Security practices Fully Omran has a number of policies and dedicated staff to ensure the highest level of security for all employees and persons conducting business with Omran.

Indigenous rights Fully Not applicable. Oman does not have indigenous peoples. For information on Omran’s interaction with local populations, see DMA on Local communities below.

Assessment Fully A number of procedures for investigations and manager vigilance are detailed Omran’s code of Conduct to ensure continual assessment and awareness of incidents of misconduct.

Remediation Fully A number of procedures for corrective action are detailed in in response to misconduct within Omran’s code of Conduct.

Disclosure on Management Approach (SO)

Asp

ects

Local communities Fully Our Stakeholders on page 21 and Community Investment and Sponsorship on page 46.

Corruption Fully Ethical Conduct and Anti-Corruption on page 26.

Public policy Fully Anti-Competitive Behavior on page 26.

Anti-competitive behavior Fully Anti-Competitive Behavior on page 26.

Compliance Fully Board of Directors on page 24

Disclosure on Management Approach (PR)

Asp

ects

Customer health and safety Fully As Omran does not have many customer-facing operations, customer health and safety is not identified as a significant to Omran’s operations.

Product and service labelling Fully Product and service labelling is not identified as a significant to Omran’s operations.

Marketing communications Fully Atana on page 72.

Customer privacy Fully Not applicable to Omran.

Compliance Fully Omran’s legal team works to ensure continual compliance with laws and regulations in the Sultanate.


Appendix G: GRI Index (continued)


Labor/management relations

LA4 Percentage of employees covered by collective bargaining agreements.

Fully None of Omran’s employees are covered by collective bargaining agreements. Employees have the opportunity to raise concerns and recommendations via the Values Committee.

LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities by region and by gender.

Fully Creating a Safe Environment on page 45 and Contractor Relations on page 46.

Training and education

LA10 Average hours of training per year per employee by gender, and by employee category.

Fully Employee Training & Development on page 45.

Diversity and equal opportunity

LA13 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity.

Fully Workplace Diversity on page 44.

Equal remuneration for women and men

LA14 Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation.

Fully Omran has a salary and remuneration ratio of 1:1 for all staff on its payroll.

Social: Human Rights

Investment and procurement practices

HR2 Percentage of significant suppliers, contractors and other business partners that have undergone human rights screening, and actions taken.

Fully Contractor Relations on page 46.

Non-discrimination

HR4 Total number of incidents of discrimination and corrective actions taken.

Fully Creating a Respectful Environment on page 46.

Child labor

HR6 Operations and significant suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor.

Fully Contractor Relations on page 46

Social: Society

Corruption

SO3 Percentage of employees trained in organization’s anti-corruption policies and procedures.

Fully Ethical Conduct and Anti-Corruption on page 26.

SO4 Actions taken in response to incidents of corruption. Fully Not Applicable. There were no reported incidences of corruption during the year.


Compliance

SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations.

Fully Omran paid no fines or sanctions for non-compliance with laws and regulations in 2013.

Social: Product Responsibility

Marketing communications

PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes

Fully Omran faced no incidents for non-compliance with laws and regulations concerning marketing communications in 2013.

Construction and Real Estate Sector Supplement

CRE8 Type and number of sustainability certification, rating and labeling schemes for new construction, management, occupation and redevelopment.

Fully Nine of Omran’s developments are pursuing LEED certification. As of the end of 2013, the status of the certification applications for the Jabal Akhdar and Khasab resorts were still pending. For more information, see LEED Building at Omran on page 55.


Appendix I: References

i “Value of sustainability Reporting: A study by

EY and Boston College Center for Corporate

Citizenship,” (paper, 2014), 4, ED 0114,

http://www.ey.com/Publication/vwLUAssets/EY_-_

Value_of_sustainability_reporting/$FILE/EY-Value-of-

Sustainability-Reporting.pdf (accessed March 11th, 2014).

ii Andrew Jeffreys and Peter Grimsditch, ed., The Report: Oman 2014 (UK: Oxford Business Group, 2014), 242.

iii World Travel & Tourism Council, WTTC Travel & Tourism Economic Impact 2013: Oman (World Travel & Tourism Council, 2013), 3.

iv Ibid., 11.

v Robert G. Eccles, Ioannis Ioannou, and George

Serafeim, “The Impact of Corporate Sustainability

on Organizational Processes and Performance”

(working paper, July 29, 2013), 1, ED 12-035,

http://papers.ssrn.com/sol3/papers.cfm?abstract_

id=1964011 (accessed March 11th, 2014).

vi World Tourism Organization (UNWTO),

“UNWTO Tourism Highlights: 2012 Edition,” http://mkt.unwto.org/sites/all/files/docpdf/

unwtohighlights12enhr.pdf (accessed March 11th, 2014).

vii World Travel & Tourism Council, WTTC Travel & Tourism Economic Impact 2014: Oman (World Travel

& Tourism Council, 2014), 1.

viii Ibid., 10.

ix Ibid., 9.

x Ibid., 11.

xi Ibid.

xii Ibid.

xiii Ibid., 1.

xiv Bertelsmann Stiftung, BTI 2014 - Oman Country Report. Gütersloh: Bertelsmann Stiftung, 2014.

xv World Tourism Organization, “Tourism and Climate

Change,” (Online Brochure, December 2011),

http://dtxtq4w60xqpw.cloudfront.net/sites/all/files/

docpdf/climatechange.pdf (accessed on March 12, 2014).

xvi Oman Water Society, “About Oman,”

http://www.omanws.org.om/about-oman.php

(accessed March 12, 2014).

xvii Ibid.

Appendix H: GRI Level Check

In line with Omran’s sustainability policy, the paper

we have used for this report is Lenzing Impact. It is

recycled paper produced from 100% recovered fibre.

Manufactured without optical brightening agents and

chlorine bleaching.

High whiteness is achieved thanks to a special

converting process for recovered fibre.

Phone: +968 24 391111, Fax: +968 24 391112

www.omran.om

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Omran's 2nd Sustainability Report