Oman opportunities

Weekly News

Oman

Opportunities

19 ~ 23 March 2017

Telegram: https://t.me/omanme

Omani rials dollar

peg safe, say

experts after Fed

rate hike

Gulf's industrial

sector employs

more than 1.6m

workersSix firms vying for

building water

project in Khasab

Transport cost

triggers Omans

inflation to 2.38

per cent in

February

Oman's $8 billion

Duqm superport

dream

Extra Oman Air

flight from Salalah

to Calicut in

Kerala

Police issue

warning after

scam uncovered

Muscat: Omans currency being tied to the US

dollar is sustainable and the government is in

good fiscal health, according to leading financial

analysts.

A report by credit ratings agency Moodys

suggested that Oman among other GCC states -

may face a rough patch against the strengthening

US dollar, just as the Sultanate starts to move

away from dependence on oil revenue and faces

up to falling oil prices.

Experts, however, say that Omans currency is

safe, thanks to the Sultanates increasing foreign

exchange reserves and strong supply of money.

The vote of confidence came as Hamood

Sangour Al Zadjali, Executive President of the

Central Bank of Oman, told Times of Oman in an

exclusive interview that no decision has yet been

taken on whether to raise interest rates after the

recent US hike.

And Fabio Scacciavillani, Chief Economist at

Oman Investment Fund, said the claim that the

dollar peg was in danger was grossly

overblown. He added: The Omani rial is

pegged to the US dollar and if anyone opens the

home page of the Central Bank of Oman he

would immediately verify that at the end of

December 2016 the Foreign Assets of the Central

Bank stood at OMR7,791m, while the money

supply (M1) totalled only OMR4,978.7.

In other words, the central bank can certainly

sustain the peg. Furthermore, the Omani public

sector holds conspicuous assets outside the

central bank and has obtained foreign credit that

can finance the current account deficit for the

foreseeable future, he added.

Muscat: Omans consumer inflation in February

rose by 2.38 per cent year-on-year, mainly due to

a 9.33 per cent price hike in the transport sub-

segment and a 2.05 per cent rise in the housing,

water, electricity, gas and other fuel sub-sector.

The foods and non-alcoholic beverages sub-

segment logged a price decline of 0.10 per cent,

while clothing and footwear prices fell 0.37 per

cent, according to a recent bulletin issued by the

National Centre for Statistics & Information

(NCSI).

The health and communication sub-segment too

recorded a price fall of 0.13 per cent and 3.02 per

cent, respectively in February, as against the

same month of 2016.

Doha: The labour force in manufacturing

industries in the Gulf has more than doubled

from 774,000 workers in 2005 to more than 1.6

million workers in 2015 registering a compound

annual growth rate (CAGR) of 7.8 per cent, a

new report reveals.

In its report on Labour Force and Productivity

of Manufacturing Industries in GCC Countries,

the Gulf Organisation for Industrial Consulting

(GOIC) also announced an increase in the

number of manufacturing factories in the Gulf

Cooperation Council (GCC).

According to GOIC labour plays a key role in

industrial production and form an added value

when coupled with the availability of raw

materials. Therefore, labour productivity is seen

as a criterion to measure industrial development

and the efficient use of the labour force. It also

sheds light on the strengths and weaknesses of

an industrial activity.

The labour force in manufacturing industry in

the GCC countries is a main pillar of industrial

production, particularly when it comes to small

and medium enterprises (SMEs). In fact, these

industries rely heavily on labour force and less

on capital, as their activities are mainly based on

human effort as opposed to big factories that rely

on machines and advanced technologies, the

GOIC said.

The prices of other CPI product baskets

registered a price increase. Tobacco products

saw prices rise of 23.23 per cent, while

furnishings, household equipment and routine

household maintenance set prices went up by

1.86 per cent.

Recreation and culture turned costlier by 0.50

per cent. Education as well as restaurants and

hotels sets experienced inflationary pressures of

2.85 per cent and 0.30 per cent, respectively.

Prices of miscellaneous goods and services went

up by 1.67 per cent during the month.

Muscat: As many as six firms have been pre-

qualified for developing an Independent Water

Project (IWP) in Khasab, with a desalination

capacity of 16,000 cubic metres per day.

The consortiums that have pre-qualified to

submit bids for building the project are the

ACWA Emirates-Sogex Oman consortium,

Utico, the Seven Seas-Aqua Venture Holdings

consortium, Veolia Middle East, GS Inima and

Tedagua.

The companies were pre-qualified after Oman

Power and Water Procurement Company

(OPWP) floated a request for a qualification

tender for developing the desalination project.

The winning company will develop it as a

private sector project, in close coordination with

OPWP. According to an earlier report, the

Khasab project, which is expected to be

completed by late 2019, will cater to growing

demand for water in the Musandam governorate.

Apart from Khasab, the Sultanate is also

developing independent water projects in

Salalah, Shaqiyah and Duqm, which will

Duqm: A small fishing port on the east coast of

Oman , Duqm i s unde rgo ing a ma jo r

transformation to become a superport of the

future.

Ambitious plans are underway to turn what was

once a fishing village of 10,000 people into one

of the Gulfs busiest seaports and tourism hubs.

With almost $8bn of investment on the horizon,

Duqm will transform into a 2,000 square

kilometre powerhouse zone driving Omans

economy forward, according to Ismail Al

Balushi, the Deputy Chief Operations Officer of

the Special Economic Zone at Duqm. He added

that the planned expansion in the port has the

potential to beat the best by 2020.

Plans are underway to complete the special

economic zone around Duqm by 2020, in

accordance with the governments economic

diversification plans, and Al Balushi says the

towns strategic location on the Arabian Sea is

what places it ahead of other cities in the region.

We want to give people a choice that is different

to Dubai and Abu Dhabi and Duqm could

definitely become that. Duqm is good news not

only for Oman, but the rest of the Middle East as

well, said Al Balushi, speaking exclusively to

the Times of Oman.

Muscat: An OMR85,000 fraud case was foiled

by the ROP, the police announced

Sunday.

An Omani national was allegedly conned by two

men of Arab African nationality, police reported.

The alleged scamsters alluded to a large

investment project for the Omani man to

participate in, only for the victim to discover that

he had been set up, after he had paid the men

OMR85,000.

The Omani national reported the fraud to the

Baushar Police Station, and after a detailed

investigation, the two perpetrators were caught

by the Baushar ROP. The case has been sent to

Public Prosecution for further investigation.

A source from the ROP has advised Omani

citizens and residents to exercise extreme

caution with regards to money transactions.

together add 52.8 million imperial gallons per

day (MIGD) of new capacity for the countrys

rapidly expanding domestic water generation

capacity. Demand for potable water in Omans

northern region, which includes the Muscat

governorate, is projected to grow by 6 per cent

per annum in the next five years, from 238

million cubic metres in 2013 to 349 million

cubic metres by 2020.

Muscat: Salalah and Calicut, the northern town

in the south Indian state of Kerala, will be

connected with an extra daily direct flight by

Oman Air from March 27, the airline said.

This is in addition to the service currently

operated by Oman Air between Muscat and

Calicut.

The three and a half hour flight will depart

Salalah at 01.10hrs and arrive in Calicut at

06.20hrs. The return flight will leave Calicut at

07.00hrs and arrive in Salalah at 09.15hrs (local

time). The daily service will be operated by a

Boeing 737-800. In addition the existing

frequencies between Muscat and Calicut have

been increased from one daily to twice daily

since February this year.

Oman Air is growing its weekly capacity to India

with frequencies increasing on five of the

airlines key Indian destinations. Bombay, Delhi

and Hyderabad increase from twice daily to

three times daily. Calicut increases from once

daily to three times daily and Lucknow increases

from once daily to twice daily.


Even the Moodys report states Oman will be

able to sustain the currency peg for nearly a

decade, if oil stays above $50 a barrel and there

are no major economic hurdles.

Oman IS studying whether to raise the countrys

key interest rates, after the Federal Reserve

lifted their rates, the countrys central bank chief

told Times of Oman.

His Majesty Sultan

Qaboos issues

four Royal

Decrees

Lagarde calls for

strong policies to

sustain growth

momentum

Crimean-Congo

fever leaves three

dead in Oman

Oman plan to raise

tax on harmful

products this year

Central Bank of

O m a n t o r a i s e

capital to OMR1b

BPs gas project in

Oman expected to

deliver 1.5b cubic

feet of natural gas

per day

Madinat Al Irfan

design to save

energy in Oman

Crude oil to trade

below $60 this

year as high

CMA lowers

minimum share

offer of insurance

firms to 25 per

cent

Muscat: His Majesty Sultan Qaboos bin Said on

Sunday issued four Royal Decrees as follows:

Royal Decree No. 12/2017 endorses the oil

agreement between the Government of the

Sultanate of Oman and Oman Oil Company

Exploration and Production LLC for Bloc No.

48, signed on January 31, 2017.

Article (1) ratifies the aforementioned oil

agreement.

Article (2) says that this decree shall be published

in the Official Gazette and enforced on its date of

issue.

Royal Decree No. 13/2017 endorses the oil

agreement between the Government of the

Sultanate of Oman, Occidental Oman Inc., Oman

Oil Company Exploration and Production LLC,

and Mitsui E&P Middle East B.V for Bloc No. 9,

signed on January 23, 2017.

Article (1) ratifies the aforementioned

agreement.



issue.

Royal Decree No. 14/2017 endorses the revised

oil agreement between the Government of the

Sultanate of Oman, BP Exploration Epsilon

Limited and Makarim Gas Development LLC

for Bloc No. 61, signed on November 8, 2016.

Article (1) ratifies the aforementioned revised

agreement.



issue.

Royal Decree No. 15/2017 endorses DNO Oman

ASs conceding 75 per cent of its rights and

obligations in the oil agreement signed on August

10, 2011 for Bloc No. 36 to Allied Petroleum

Exploration Inc.

Article (1) ratifies DNO Oman A. S. conceding

75 per cent of its rights and obligations in the oil

agreement signed on August 10, 2011 for Bloc

No. 36 to Allied Petroleum Exploration Inc.


Muscat: British Petroleum said that its newly

extended area within block 61, Ghazeer field, is

projected to deliver 0.5 billion cubic feet of

natural gas per day by 2020.

With Khazzan due to deliver a billion cubic feet a

day by the end of 2017, the two fields will

together eventually increase Omans natural gas

supply by around 40 per cent, according to a

company release. This will provide solid

foundations for Oman to diversify its industrial

base.

Field and well development plans are already

underway at Ghazeer and the first development

well has been drilled. Around 3.5 trillion cubic

feet of accessible gas are estimated to exist at

Ghazeer and 125 wells will be drilled over the

project lifetime to access it.

The amendment to the Oman Block 61

exploration and production sharing agreement

(EPSA) announced in 2016 was ratified, with the

issue of a Royal Decreeon March 19, 2017by His

Majesty Sultan Qaboos bin Said.

Dubai: An historic agreement between Opec

countries and other oil producers to reduce their

output would not be enough to nudge crude

prices above $60 a barrel this year, according to

energy lender Arab Petroleum Investment Corp.

Consumer countries have built up large

stockpiles of crude during nearly three years of

low prices, and US shale production is

rebounding as prices have recovered since Opec

reached the production deal in November. That

means the process of balancing the market will

take at least until the second half of this year, the

company known as Apicorp said on Monday in a

report. The inability to balance the market in the

first half of the year will mean the Organization

of Petroleum Exporting Countries should extend

the six-month deal, which took effect on January

1, for the rest of the year, it said. Opec meets in

Vienna on May 25."While oil prices are expected

to recover toward the end of the year, they will

remain in the $50-$60 band given the high level

of stocks, Apicorp said. "We expect Opec to

maintain the agreed production quota at around

32.5 million barrels a day for the rest of the year.

Brent crude was trading at about $51 a barrel at

10:26 a.m. in Dubai.

Opec will extend the deal if stockpiles are still

above their five-year average, Saudi Arabia

Energy Minister Khalid Al Falih said in an

interview with Bloomberg Television last week.

As Opecs largest producer, the Kingdom acts as

the groups de facto leader. Still, any deal or

measure needs the unanimous support of all

members to pass; the groups second- and third-

largest producers Iraq and Iran also carry

significant clout.

Muscat: Omans central bank has decided to raise

its capital to OMR1 billion from OMR760

million with effect from April 1, 2017, according

to a press release.

The decision was taken by the apex banks board

on Monday at its meeting chaired by Dr Ali bin

Mohammed Moosa, deputy chairman of the

bank.

The board also reviewed the actions taken by the

Central Bank of Oman and licensed banks

operating in Oman with regard to the financing of

small and medium enterprises.

In addition, the board endorsed the audited

accounts of Central Bank of Oman, Deposit

Insurance Fund and Pension Scheme of Central

Bank of Oman as at December 31, 2016. The

board also reviewed the management letter

report of external auditors and annual report of

the CBO Internal Audit Committee.

Muscat: Three people have died and another six

received treatment for Crimean-Congo

Haemorrhagic Fever (CCHF) during the first

months of 2017, the Ministry of Health has

revealed.

The ministry stated that the rise in CCHF cases is

notable compared to the same period in 2016

where only three cases were reported.

CCHF is a tick-borne virus which affects

animals such as cows, goats and sheep. Humans

are affected by the disease either by a tick sting

or direct contact with an infected animals blood

or organs during slaughter.

The disease also transfers from one person to

another as a result of direct contact with blood or

via other bodily fluids.

Muscat: Calls for global cooperation and strong

policies to sustain the growth momentum was

made by Christine Lagarde, Managing Director

of the International Monetary Fund (IMF).

In a press statement issued at the conclusion of

the Group of 20 (G20) finance ministers and

central bank governors meeting in Baden-

Baden, Germany, she said: Our meeting

showed once again that the G20 provides a

critical platform for major economies to work

together within an established framework. We

met at a time when growth is gaining momentum

around the world and there are signs that the

global economy has reached a turning point,

even though uncertainties remain.

Strong monetary, fiscal and structural policies

matter more than ever for what comes next.

Global cooperation and pursuing the right

policies can help achieve strong, sustained,

balanced, and inclusive growth, while the wrong

ones could stop the new momentum in its

tracks, she added.


issue.


Muscat: Omans stock market regulator, Capital

Market Authority (CMA), has approved a

request from national insurance companies to

offload a 25 per cent stake of promoters, instead

of the normal 40 per cent disinvestment in initial

public offerings.

At least five national insurance companies Al

Ahlia Insurance Company, National Life

Insurance, Oman and Qatar Insurance, Vision

Insurance and Falcon Insurance are expected

to float shares on the Muscat Securities Market

(MSM) before August 2017, in line with the

CMA regulation.

The recent mergers of some insurance

companies have reduced the number of firms

required to float shares on the local bourse,

Sheikh Abdullah bin Salim Al Salmi, executive

president of the CMA, told Times of Oman.

By Staff Reporter MUSCAT: March 19 The

German University of Technology in Oman

(GUtech) recently hosted a discussion on Smart

Cities for a group of students from the French

School Muscat. Generating energy from nature

to reduce the CO2 emissions and reducing

energy consumption will be important issues for

future cities, said Dr Oualid Ben Ali, Head of

the Training and Smart Solutions Centre at

G U t e c h a n d P r e s i d e n t o f

FutureCit iesCounci l .org . He has been

researching the topic for many years.

In his talk to the students, he referred to smart

cities with zero CO2 emissions like Masdar City

in Abu Dhabi. Dr Oualid suggested that smart

cities will offer many opportunities for new jobs

that do not exist today and that students should be

open and prepared for these challenges.

Muscat: Al Mina development, an Integrated

Tourism Complex (ITC), which is a part of Barr

Al Jissah, was launched on Monday.

We are going to start the construction of Al

Mina by the end of this year and it will be ready

in two and a half years, said Firas Matraji, chief

executive officer of Barr Al Jissah.

It is a development with these views, Matraji

said, pointing out to the beautiful Marina and

waterfront that the Al Mina homes will

overlook. The property also offers state-of-the-

art facilities and quality accommodation that is

new to the Oman market. We have villas at the

edge of the marina. We have duplexes,

apartments of different sizes and penthouses.

Penthouses and duplexes are something new in

Oman. We found there is a huge demand for

them.

Niche customer base

The property will target a niche customer base,

attracting tourism to the Sultanate. We are only

selling them to people, who are interested in the

lifestyle we are offering. We are offering

concierge services, access to the hotels,

chauffeurs, and a facility management team,

said Matraji.

Oman passengers

to be hit by US, UK

'electronics ban'

on MENA airlines

Duqm to help tap

Oman mineral

wealth riches

Dubai starts

desert solar plant

as part of world's

biggest park

Three-pronged

plan to boost

population in

Duqm

Omans total credit

grew 8.9% to

OMR22b in

January

20,000 jobs for Duqm, Omans

supercity of the

future

UK expats hope for best post Brexit

Muscat: Passengers flying to the United States

from Oman via the United Arab Emirates (UAE),

Qatar, Kuwait, and Saudi Arabia cannot carry

any electronic device larger than a cell phone

after new restrictions were imposed by the US

government.

UAE-based Emirates Airlines confirmed in an

email to the Times of Oman that the new security

directive issued by the US Transportation

Security Administration (TSA), states that

electronic devices larger than a cell phone/smart

phone, excluding medical devices, cannot be

carried in the cabin of the aircraft. The directive

comes into effect from Saturday (March 25,

2017), and is valid until October 14, 2017.

It is applicable to all US-bound passengers from

the Dubai International Airport, whether

originating or transiting through. Emirates

requests that all passengers travelling to the US

pack all electronic devices larger than a cell

phone/smart phone in their checked-in baggage,

the Emirates spokesperson said.

Pilot for the port.

Read here: 20,000 jobs seen in Duqm

Duqm is located out of the Strait of Hormuz

which is one of the most congested waterways in

the world and is therefore really well-placed to

connect the countries that lie to the East and West

of the Middle East, said the Belgian. Most

major shipping lanes only pass about 50

kilometres away from Duqm, which makes it just

a doorstep away from major international

markets.

Omans vast oil and gas reserves lie in Duqms

backyard, and to the south and the north, you

have very rich mineral deposits which can be

exported to the rest of the world, he added.

Companies can unload their heavy mining and

digging cargo here, instead of going all the way

up north and unloading their gear at Jebel Ali.

Mining companies are compelled to drop off

their diggers and earth movers at Jebel Ali in

Dubai, because the cargo is just too big to fit in

Port Sultan Qaboos, he added. The Port of Duqm

is therefore being built from the ground up to

accommodate such large machinery.

Muscat: Brexits finally happening with the

British governments announcement that it will

be invoking Article 50, and Britons in Oman are

only hoping for the best going forward.

Nearly nine months after the United Kingdom

voted to leave the European Union (EU), Article

50, which is a provision in the EUs treaty that

allows a member state to leave, will be invoked

and will trigger talks on the countrys exit from

the EU on March 29.

Maggie Jeans, an OBE (Order of the British

Empire) recipient, living in Oman for 26 years

thinks there is still uncertainty surrounding the

situation. I wanted to remain, as most people

living overseas and I never thought that Brexit

would happen. Its surrounded by total

uncertainty; I watched the coverage on the

television and in the newspaper, and it seems to

me nobody has any idea whats going to happen.

All sorts of figures are out and about, and no one

has a definitive answer. I think we just have to

watch the space and I hope the negotiations go

well.

Graham Leslie, a British resident in Oman, who

works in the hospitality sector, said, I think

Brexit was largely based on this new trend that

we are experiencing in Europe; it panders to a

section of society that is concerned about losing

its identity thats wrapped up in immigration and

obviously concerns of security, etc.

Dubai: Dubais government-owned utility

completed a 200-megawatt power plant one

month ahead of schedule as part of a plan to build

the worlds largest solar energy park by 2030.

The 1.2 billion dirham ($327 million) solar plant

in the Dubai desert, led by developer ACWA

Power International of Saudi Arabia, was

scheduled to be completed in April, said Saeed

Mohammed Al Tayer, chief executive officer of

the emirates utility. Al Tayer said Dubai

Electricity and Water Authority will buy power

from the plant for 5.6 cents per kilowatt-hour,

which was the lowest cost globally for solar

power at the time the project was awarded in

January 2015. Since then, DEWA has contracted

power at an even lower price of 2.99 cents for

another facility.

Dubai plans to have 5,000 megawatts of solar

capacity at the park by 2030 as it seeks to reduce

reliance on natural gas as the main source of

energy for electricity. The solar plant started on

Duqm: To increase Duqms population to a

100,000 by 2020, the citys Special Economic

Zone Authority (SEZAD) has employed a three-

pronged strategy aimed at making the town a

thriving metropolis in the future.

Read here: 20,000 jobs for Duqm, Omans

supercity of the future

In addition to constructing an extensive road

network in and around the city, SEZAD is also

working to expand Duqms airport by next year,

and is investing heavily in real estate to support

the population, which will be needed to run the

jobs generated by the special economic zone.

Twelve road construction and expansion

projects, which have been commissioned by

SEZAD, are underway, while another four are

currently in the pipeline. These projects have

been awarded to a host of construction and

design firms, including Parsons, Renardet,

Galfar, Al Hajjary Trading, Khaled Ahmed and

Sons, United Gulf Construction and Nespak.

Also Read: Duqm to help tap Oman mineral

wealth riches

We want to build the right infrastructure here in

the form of roads and public services so that

Duqm is easily accessible for people, and so that

once this is done, private investors can come in

and build houses, schools, supermarkets, clinics

etc. for the people who will be living here, said

Hussein Al Zadjali, head of building projects at

SEZAD.

Of the total credit extended to the private sector,

the household sector (mainly under personal

loans) stood at 46.2 percent, closely followed by

the non-financial corporate sector at 45.6 percent

and financial corporations at 5.1 per cent.

Total deposits at Omani banks registered a

growth of 6.7 per cent to OMR20.6 billion by the

end of January, over the same period of last year.

Private sector deposits in the banking system

rose by 5.3 per cent to OMR13.4 billion as of the

end of January. Sector-wise, the share of

households was 48.6 per cent of the total private

sector deposit base, followed by non-financial

corporations at 28.6 per cent, financial

corporations at 19.8 per cent and the other sectors

at 3 per cent, the CBO report said.

Monday will produce enough electricity for

50,000 homes. The United Arab Emirates, which

holds about 6 per cent of global crude reserves,

plans to spend 600 billion dirhams on renewable

energy by the middle of the century, Energy

Minister Suhail Al Mazrouei said in January.

Duqm developers.

Read also: Duqm to help tap Oman mineral

wealth riches

About 60 per cent of Omans population is

young, and everyone is looking for jobs these

days, so I believe this will add plenty of jobs to

the economy, which can be filled by the next

generation of job seekers, said Jalal Al Lawati,

Promotion Manager for SEZAD, the special

economic zone for the former fishing port now

being transformed into a supercity of the future.

Port, leisure and business Duqm forms an

integral part of Omans move away from its

reliance on oil and gas. The massive port, leisure

and business city will drive investment, create

employment and diversify the Sultanates

economy.

Oman has entered into a new joint-venture

partnership with China to build the China-Oman

Industrial Park which could generate up to

12,000 jobs for the Sultanate, according to a

senior official from the Special Economic Zone

Authority of Duqm (SEZAD).

As part of the development of the Special

Economic Zone in Duqm, SEZAD have

partnered with the Wanfang corporation to boost

the Sultanates economy, said Jalal Al Lawati,

Promotion Manager for SEZAD. We envision

this joint venture to generate about 12,000 more

jobs in Oman.

We have already begun construction of the

park, which will measure a total of 1,172

hectares, added Al Lawati. About 40 per cent

of this park will be completed by 2020, and it

will have manufacturing centres for heavy,

medium and light industries, as well as

commercial property, residences and a tourism

zone.

Expected to cost a total of about OMR3.85

billion in total, about 809 hectares have been

earmarked for heavy industries, with a further

353 to be split among medium and light

industries, as well as commercial and residential

buildings. A further 10 hectares are to be

dedicated to tourism.

Al Lawati was also optimistic to see this

partnership dovetail with the countrys Tanfeedh

initiative, which was launched last year to

spearhead Omans efforts towards economic

diversification and wean itself off fossil fuels as

a primary source of income.

Duqm: Omans supercity of the future will

create up to 20,000 jobs for young Omanis and

more than OMR700million has already been

committed to funding projects, according to


Muscat: Total credit extended by Omani banks,

including Islamic financial institutions, grew by

8.9 per cent year-on-year to OMR22.1 billion by

the end of January this year.

Credit to the private sector alone increased by

10.6 per cent to OMR19.9 billion as of the end of

January, according to the latest monthly bulletin

released by the Central Bank of Oman on

Tuesday.

The banking sector remained resilient in

supporting the economic diversification

initiatives and credit needs, the CBO monthly

bulletin noted.

Duqm: Omans potential to tap the riches of its

mineral wealth could be unleashed once the Port

of Duqm is up and running, according to Captain

Wim Aertbelien, the Harbour Master and Chief

Oman well

positioned to

develop halal food

industry, say

India tries to fix

Iran trade

payments as

Trump hardens

line

Muscat: Oman has several advantages in tapping

the growing market for Islamic or Sharia-

compliant products and services across the

world, according to Islamic finance experts, who

attended a major conference here recently.

Islamic food or the halal industry is (valued at)

about $2 trillion a year, said Sulaiman Al

Harthy, deputy chief executive officer (Islamic

Banking Group) at Bank Muscat. If Oman can

get 5 per cent of the total halal food industry, it

will be enormous.

The Sultanates private sector can work with

experts in halal food manufacturing and become

an export base to meet growing demand from

across the world.

The experts also noted that Oman has several

advantages in attracting investment in Sharia-

compliant industries, which include state-of-the-

art infrastructure and incentives for investors.

The Sultanate is in a good position to take

advantage of the potential, noted Al Harthy,

while attending a panel discussion on driving

O m a n s e c o n o m i c d e v e l o p m e n t a n d

diversification plans through Islamic finance at

the IFN Oman Forum and Dialogue.

New Delhi: India is exploring setting up a new

payments mechanism for trade with Iran, after

its old sanctions workaround broke down, as

state banks remain fearful of handling payments

from Tehran in case the United States imposes a

fresh financial embargo.

US President Donald Trump has denounced an

agreement between Iran and major powers on its

nuclear programme as a bad deal, and his

administration has put Tehran "on notice" after

the test-firing of a ballistic missile.

Under previous Western sanctions, India had

devised a barter-like scheme acceptable to

Washington that allowed it to make some oil

payments to Tehran in rupees through a small

state bank, UCO Bank.

Indian companies were then able to receive

payments for goods exported to Iran using the oil

money held in non-convertible rupee balances at

UCO, maintaining a trade lifeline between two

countries with long historical ties.

But since sanctions were partly lifted early last

year the rupee account has been run down by

more than 90 per cent to just Rs20 billion ($305

million) because Indian refiners have resumed

paying for Iranian oil in euros.

Muscat IT Eng. & Trd. LLC

Services:


Registration & Investment ConsultantsParticipation in Investments ProjectsIntroducing interested Omani investorsMarketing & Sale ServicesDeferred payment LCsFacilities for getting loansRe-Export / Re-ImportVisa

GSM & WhatsApp: +968 917 43 [email protected]


Projects

progressing in

North Sharqiyah

Sultanate to work

on GCC Rail as

per plan

Jobs to be aplenty

for professionals

MUSCAT: Road projects in the Governorate of

North Al Sharqiyah constitute 11.6 per cent of

the total length of asphalt roads currently being

implemented by the Ministry of Transport and

Communications in a number of governorates.

The second part of the first phase of Bidbid-Sur

dual carriageway project is one of the most

p r o m i n e n t p r o j e c t s c u r r e n t l y b e i n g

implemented. In an interview with the Oman

News Agency (ONA), Salim bin Mohammed al

Nuaimi, Under-Secretary of the Ministry of

Transport and Communications for Transport,

said that some projects completed in 2016 and

others are still under way, pointing out that the

ongoing projects were included in the ministry

plan for this year.

He added that one of the most prominent

projects currently being implemented in the

North Al Sharqiyah is parts of the Bidbid-Sur

dual carriageway project. This project passes

by the Wilayats of Al Mudhaibi, Ibra and Al

Qabil, and some parts of it were opened for the

traffic. The project will be completed in 2017,

including 24 kilometres from the first phase of

the first part, 10 kilometres from the first phase

of the second part, 77 kilometres from the first

part of the second phase, and 56 kilometres from

the second phase in the second part, he

furthered.

By Staff Reporter MUSCAT: March 18

Oman Rail in an official statement on Saturday

said that it is ready to work on the GCC Railway

project as per an agreed common deadline

among the states. The statement denied an

official Saudi report that cited reasons for delays

and postponement of the GCC Railway project

until 2021. The GCC Railway as proposed is

expected to boost GCC economic development,

sustain growth at national and regional levels,

foster economic development, growth and

integration, enhance regional trade facilitation

and promote GCC supporting industries in the

neighbouring economies.

The GCC Railway was proposed to connect all

six member states with a total length of 2,177

km. Last year, the projects completion date has

been rescheduled for 2021. The planned GCC

railway would begin in Kuwait City, pass

through Dammam and Batha Port in Saudi

Arabia, Abu Dhabi and Al Ain in the UAE, and

then enter Oman through Sohar before

terminating at Muscat. From Dammam,

branches will link to Bahrain through the

proposed King Hamad Causeway and to Qatar

via Salwa port.

Eateries flouting

standards

Delegation of

Omani journalists

visits Iran

Introduction of VAT shall certainly provide

opportunities for accounting and IT companies

to assist businesses get ready for the

introduction of the VAT, he said.

Businesses will have to make sure that

introduction of VAT does not encroach upon

productivity, it is here IT solutions will be very

useful, Hamid said.

Many accounting firms are currently expanding

their teams as they look to assist or prepare

balance sheets for many small and big

companies.

Davis Kallukaran, Managing partner of Crowe

Horwath Oman, pointed that besides generating

additional revenues, the changes in tax law will

also create hundreds of jobs in accounting,

finance and tax within the government and

private sectors.

More jobs for professionals in the digital space

can also be expected. In particular, there will be

high demand for applicants on the more creative

side of information technology, he said.

By Samuel Kutty MUSCAT: MARCH 18

The outlook for professional job market in

Oman looks robust this year as most businesses

are expanding their teams to comply with the

rising needs. The largest number of jobs is

expected to be in sectors like financial services,

health, tourism, aviation, manufacturing and

construction. The implementation of the new

corporate income tax law and imminent

introduction of VAT are expected to be the

biggest drivers for employment creation in the

year ahead.

There will be an uptick in demand for

compliance professionals with tax, asset

management and information technology

experience as result of the new tax regime, said

Hamid Hamirani, Senior Economist at the

Ministry of Finance.

By Staff Reporter MUSCAT: March 18 To

ensure food safety standards at all levels, Muscat

Municipality has conducted regular checks on

restaurants and cafes across the capital. One

such raid has resulted in the closure of a few

restaurants and coffee shops for violations in

Muttrah. As per details provided by the civic

authority, inspection of over 100 coffee shops

recently, over 33 of them were fined for

violations and complete closure in some cases.

The civic body has started campaigns for the

employees of coffee shops and urged them to

attend courses at their time of convenience.

A senior official at Muscat Municipality earlier

told the Observer that food safety violations are

more serious with smaller restaurants and coffee

shops as their employees are not qualified

enough to carry out tasks entrusted to them. He

said efforts are on to find a solution to this

problem and make sure that all food handlers are

qualified enough to work in restaurants. He said

that while inspections are routine ones and we do

not want the situation to reach alarming levels in

the future. More importantly, it is very important

to keep food in a safe place and also develop a

food safety culture at all levels.


Cigarette prices to

double from AprilBy Kabeer Yousuf MUSCAT: March 18

Come April, prices of cigarettes will almost

double across board as Oman is to impose

selective tax as part of revitalising non-oil

revenues, in concurrence with other GCC

countries, it is learnt. Accordingly, smokers will

have to shell out few more baisas for their

favourite brands, lest seriously mull over

stubbing the final butt for monetary sake if not

for health reasons. We were advised that prices

of premium brands of cigarettes will be higher as

a new tax on certain commodities such as

tobacco, alcohol and others is currently under

way. The rise is supposed to be almost double for

certain brands, a representative of a leading

cigarette agency said.

Last year too, prices of most of the brands had

shot up by 100 to 150 baisas, as is experienced in

most of the shops which sell cigarettes.

Accordingly, any cigarette pack sold at 700

baisas was sold at 900 baisas, while others too

saw an increase of 200 baisas. The measures as

per the decisions issued by government units

concerned are expected to improve and raise the

contribution of non-oil revenues such as

amending Income Tax Law that is expected to be

issued this year. The implications of such

amendment are, therefore, not incorporated in

the budget. Besides introducing selective tax on

luxury commodities including tobacco, alcohol

and others, the Sultanate has also announced

amending the fee for licences to bring foreign

workers, amending some fee for civil services

provided by the Royal Oman Police (ROP),

limiting tax exemptions granted for companies

and establishments, enhancing tax collection

efficiency, and activating monitoring and

follow-up measures, amending rules and

regulations pertaining to exemptions of customs

duties, implementing the revised tariffs for large

consumers of electricity for commercial,

industrial and government use, and amending

the regulations of lands allocation such as lands

of commercial, tourism, industrial and

agricultural use.

Beside the measures to help non-oil sources of

revenue, the government has been acting to cut

excessive use of tobacco and other allied

products in view of public health.

Sohar Port

expansion to pull

in $8bn in new

investments in

Oman

By Conrad Prabhu MUSCAT: MARCH 18

Sohar Port and Freezone (Sohar) is targeting $8

billion worth of new investments over the next

five years on the back of a new phase of

expansion and growth that the industrial port has

embarked upon. Part of this targeted inflow will

be generated by Sohars new reclamation

project, according to the hubs Chief Executive

Officer. To be officially named Sohar Port

South, the newly reclaimed land will allow the

industrial port to expand its portfolio of

companies and add more business to drive

growth within the Omani economy, said Mark

Geilenkirchen.

Sohar will build on the Port of Rotterdams

extensive experience with similar projects, like

the massive Maasvlakte 2 land reclamation in

the Netherlands, to achieve the best results

during construction, Geilenkirchen stated.

Maasvlakte 2 is a massive civil engineering

project involving the construction of a new port

and supporting infrastructure on reclaimed land

adjoining Maasvlakte. As an extension of the

Port of Rotterdam, the project offers around

2,000 hectares of newly reclaimed land for

container terminals and other investments the

difference being that the new ventures are

operated on the principles of sustainability.

Sohar Port South (known earlier as the Majees

Reclamation Project) is a key component of the

Sohar 2040 Masterplan, which is currently

under finalisation. When completed, it will give

a substantial boost to the ports ability to support

t h e S u l t a n a t e s a i m s t o i n c r e a s e i t s

diversification efforts, according to the CEO.

Significantly, part of the reclaimed land that will

form part of Sohar Port South has already been

leased to significant new tenants under

contracts signed last year, said Geilenkirchen.

Also expected to contribute to strong growth

trends at the port are investments in the food and

logistics clusters, he said. The port was

originally based around three industrial clusters:

logistics, metals and petrochemicals. We

recently added food as our fourth pillar with the

launch of Sohar Food Zone, the regions first

dedicated agro terminal, the CEO noted.

Earlier this year, Sohar Flour Mills revealed that

it was preparing to launch work on a new 500

tonnes a day milling facility in the Food Zone, a

new cluster coming up at the site of the now

vacated Container Terminal B. The new mill is a

joint venture between the UAEs Essa Al

Ghurair Investments and Aytab Investments of

the Sultanate. The facility is due to be completed

before the end of this year.

By Staff Reporter MUSCAT: March 18 To

ensure food safety standards at all levels, Muscat

Municipality has conducted regular checks on

restaurants and cafes across the capital. One such

raid has resulted in the closure of a few

restaurants and coffee shops for violations in

Muttrah. As per details provided by the civic

authority, inspection of over 100 coffee shops

recently, over 33 of them were fined for

violations and complete closure in some cases.

The civic body has started campaigns for the

employees of coffee shops and urged them to

attend courses at their time of convenience.

A senior official at Muscat Municipality earlier

told the Observer that food safety violations are

more serious with smaller restaurants and coffee

shops as their employees are not qualified

enough to carry out tasks entrusted to them. He

said efforts are on to find a solution to this

problem and make sure that all food handlers are

qualified enough to work in restaurants. He said

that while inspections are routine ones and we do

not want the situation to reach alarming levels in

the future. More importantly, it is very important

to keep food in a safe place and also develop a

food safety culture at all levels.

day of flared volumes for conversion into

electricity.

The eventual deployment of micro-turbine

technology across PDOs Block 6 concession

could see as much as 25 per cent of flared gas

estimated at around two million cubic metres per

day in 2015 recovered for power generation.

The resulting electricity output will go a long

way in meeting the companys substantial

requirement of energy to power its oilfield

operations.


Petroleum Development Oman (PDO) says it is

piloting the use of micro-turbine technology to

generate electricity from flared gas a move

that could help the nations leading oil and gas

producer potentially convert waste gas into

valuable energy.

A successful pilot could pave the way for the

broader rollout of this technology across its

concession area for the conversion of flared gas

into electricity, the majority-government-owned

company noted in a recent tweet.

The trial is underway at PDOs Anzauz

Production Station in the companys Oil South

Directorate. A fest facility established at

Anzauz currently generates around 180 195

kW of electricity by converting 1,000 cubic

metres per day of fuel gas that would otherwise

be flared.

According to details of the trial published in a

recent edition of PDOs in-house magazine,

only around five per cent of gas currently flared

at Anzauz is utilised by the test micro-turbine

unit to generate power. Based on the success of

this pilot, micro-turbines could potentially

recover an estimated 500,000 cubic metres per


Dutch firm Escher has secured a contract to

supply a total of five flare systems for the

multibillion dollar Liwa Plastics Industries

Complex (LPIC) currently under construction at

Suhar. Orpic, the Sultanates refining and

petrochemicals flagship, is investing $6.4

billion in the development of the giant

petrochemicals scheme within the industrial

port at Suhar, with a smaller upstream

component at Fahud as well. An integral part of

any refinery, petrochemicals or oilfield

processing plant, flare systems help in the safe

burning of excess hydrocarbon and purge gases

in an environmentally sound manner, as an

alternative to releasing these vapours directly

into the atmosphere.

Given the massive size of the LPIC project with

its multiple components, Escher Process

Modules, based in Alblasserdam in the

Netherlands, will fabricate and deliver five flare

systems in the third quarter of this year.

Three of the flares will be supported on one

common derrick structure towering above the

site at a height of about 170 metres. The other

two flare systems will be fitted atop a second

common derrick structure at a height of around

100 metres.

Ten Omani

projects win MEED

Quality Awards

By Samuel Kutty MUSCAT: MARCH 19

As part of its efforts in beefing up revenue

collection, the ministry of finance has warned

that corporate income tax be paid by the end of

this month. According to a directive issued by

the secretariat general of taxation at the ministry,

taxpayers whose financial year ended on

December 31, 2016, should submit their

provisional returns of income before March 31

and pay the tax due, if any of the basis of such

returns.

All tax payers are required to adhere to the

deadline to avoid penalties and punishments

stipulated in chapter seven of the income tax law

promulgated by Royal Decree no 28/2009 for

the failure to submit the return within the

By Business Reporter MUSCAT: MARCH 18

MUSCAT: Ten of Omans highest quality

projects have won national honours in the 2017

MEED Quality Awards for Projects. The

combined value of Omans winning projects is

estimated at $274 million. Now in its seventh

year, MEED Quality Awards for Projects

programme has become the leading stamp of

quality and achievement for top teams operating

in the GCC projects sector. The awards not only

recognise the construction element of project

delivery but also consider the value and quality

of a project throughout its entire life cycle, from

the design concept through to engineering and

construction and its wider contribution to society

and to the environment.

Omans national winners include Hoehler +

alSalmys Conference and Exhibition Hall at

GUtech Project (Building Project of the Year),

AWS Engineering LLCs BP Remediation

Project at Port of Salalah Project (Award for

Sustainability), Atelier Pod and Engineering

Innovation Design & Consultings Anantara Al

Jabal Al Akhdar Resort Project (Hotel Project of

the Year), Musstirs Al Baleed Resort Project

(Hotel Project of the Year), Larsen & Toubro

(Oman) LLCs Construction of New 400KV

Grid Station at Izki Project (Power Project of the

Year), Public Authority for Electricity & Waters

Construction of Extensions to the Water Supply

Network at Nizwa Project (Water Project of the

Year), AWS Engineering LLCs EPC for Sohar

Refinery Sea Water Cooling System Revamp

Project (Oil & Gas Project of the Year and Small

Project of the Year), Six Constructs Sohar

Industrial Port Project (Water Project of the

Year) and Larsen & Toubro (Oman) LLCs

Sultan

Qaboos Youth Complex Project (Social, Culture

& Heritage Project of the Year).

Corporate

taxpayers warned

against delay

prescribed date, the directive said.

The corporate income tax rate is the amount

collected from companies based on their net

income obtained while exercising their business

activity, normally during one business year.

The Omani government on February 26 last,

through Royal Decree 9/2017, gazetted broad

tax changes to the income tax law including

drastic rise in penalties and fines.

Notable aspects of the proposed tax reforms, for

tax years beginning on or after January 1, 2017,

include an increase of the general corporate

income tax rate from 12 per cent to 15 per cent

and the removal of the minimum taxable income

exemption of RO 30,000.

At the same time, the maximum penalty for

failure to file returns by the due date has been

amended to increase from RO 1,000 to RO

2,000.

The maximum penalty for failure to submit

information requested by the tax authority or to

attend scheduled hearings is raised from RO

2,500 to RO 5,000.

A penalty of up to RO 3,000 may be imposed for

fai lure to comply with the Executive

Regulations or administrative decisions.

Intentional refusal by a principal officer to

submit tax returns or other requested

information can result in imprisonment for a

period of 1 to 6 months and/or a fine from RO

500 to RO 20,000.

A second offense within 2 years increases the

period of imprisonment to 3 to 12 months and

the fine can from RO 2,000 to RO 30,000.

The intentional failure to submit accurate tax

returns or the intentional destruction or

concealment of documents and records can

result in imprisonment for a period from 6

months to 3 years and/or a fine of RO 5,000 to

RO 50,000.

Flared gas-to-

electricity

conversion on trial

in Oman

Dutch firm wins

Liwa Plastics flare

systems contract

in Oman

Omani, Iranian

Coast Guards

discuss

smuggling,

infiltration

MUSCAT: The 1st meeting of the commanders

of coast guard in the Sultanate and the Islamic

Republic of Iran on Sunday started at Crowne

Plaza hotel in Muscat and lasts for two days. The

Omani side at the meeting was chaired by

Brigadier Badr bin Khalfan al Zadjali,

Commander of Coast Guard of the Royal Oman

Police. The Iranian side was chaired by

Brigadier Galal Stara, Commander of the Coast

Guard Forces in the Islamic Republic of Iran.

The meeting discusses a number of issues

including means of enhancing cooperation and

coordination in security and police fields

especially those related to smuggling and

infiltration. ONA


Bank Muscat,

ONEIC join hands

to promote

electronic

payment

MUSCAT: Bank Muscat, the flagship financial

services provider in the Sultanate, and Oman

National Engineering & Investment Company

(ONEIC) have signed an agreement to facilitate

PoS card payment across the network of ONEIC

outlets in Oman. Waleed al Hashar, Deputy

Chief Executive Officer of Bank Muscat, and Dr

Rashid Mohammad al Ghailani, Chief

Executive Officer of ONEIC, signed the

agreement at the banks head office.

ONEIC is a major bill collector in Oman

handling bill collections for water and electricity

companies in the interior regions of Oman. This

is the first time ONEIC will be accepting cards at

their outlets across the country. ONEIC has 77

outlets and will be installing over 200 Bank

Muscat PoS terminals at the outlets.

Waleed al Hashar said: In line with the

leadership position in Oman, Bank Muscat is

delighted to launch yet another value-added

service benefiting customers. The bank is

making all efforts to support merchants to adopt

electronic payment as a business model. The

in i t ia t ive is a imed a t complement ing

government efforts in making e-payment the

preferred mode of payment and motivating a

change in consumer behaviour that makes

payment by cards both a habit and preference

in view of convenience and security.

ONEIC is also launching a mobile application

known as Bill and Pay facility for which Bank

Muscat will provide the Internet payment

gateway. With the new agreement, Bank Muscat

customers can pay ONEIC bills using all Bank

Muscat channels, including online and mobile

banking.

Smart Cities to

open up new

employment

streams

By Staff Reporter MUSCAT: March 19 The

German University of Technology in Oman

(GUtech) recently hosted a discussion on Smart

Cities for a group of students from the French

School Muscat. Generating energy from nature

to reduce the CO2 emissions and reducing

energy consumption will be important issues for

future cities, said Dr Oualid Ben Ali, Head of

the Training and Smart Solutions Centre at

G U t e c h a n d P r e s i d e n t o f

FutureCit iesCouncil .org. He has been

researching the topic for many years.

In his talk to the students, he referred to smart

cities with zero CO2 emissions like Masdar City

in Abu Dhabi. Dr Oualid suggested that smart

cities will offer many opportunities for new jobs

that do not exist today and that students should

be open and prepared for these challenges.


Belarus opens

consulate in

Muscat

Oman Shipping

Company seeks

partnerships with

mining industry

Omantel

introduces

Hayyakum

programme

MUSCAT: The Office of the Honorary Consul of

Belarus was opened on Monday in Al Azaibah

under the auspices of Belarus Foreign Affairs

Minister Vladimir Makei.

The minister said that the opening of the Office of

the Honorary Consul of Belarus in the Sultanate

is of great importance in the development of

bilateral relations between the two friendly

countries in various fields, praising the efforts

exerted by the Sultanate in this regard and all that

would develop relations between the two

countries.

He pointed out that during the visit he held

meetings with a number of senior officials in the

Sultanate to develop relations, stressing the

importance of the visit in increasing trade,

economic and investment exchange between the

two friendly countries.

Qais bin Mohammed al Yousuf, Honorary

Consul of Belarus in the Sultanate, and a number

of Foreign Ministry officials attended the

opening ceremony.

BOOSTING TIES: Oman, Belarus sign MoU in

tourism

Earlier, Yusuf bin Alawi bin Abdallah, Minister

Responsible for Foreign Affairs, received

Vladimir Makei and his delegation.

The meeting reviewed the existing friendship

relations in political, economic and commercial

fields and exchanged views towards a number of

regional and international issues of mutual

interest.

The Belarusian Foreign Affairs Ministers visit

to the Sultanate was crowned by signing at the

Foreign Ministrys premises a memorandum of

understanding (MoU) in tourism field.

The MoU was signed by Ahmed bin Nasser bin

Hamad al Mehrzi, Minister of Tourism, and

Vladimir Makei.

Oman Shipping Company (OSC), the wholly

g o v e r n m e n t - o w n e d m a r i t i m e f r e i g h t

transportation services provider, has pledged to

support the growth of the nations burgeoning

min ing indus t ry by fo rg ing mutua l ly

advantageous partnerships with local players to

enhance the competitiveness of Omani mineral

commodities in export markets.

A senior company executive urged local mining

firms to take advantage of OSCs well-

established capabilities in the dry bulk

transportation business, underpinned by its

expanding fleet of modern dry bulk carriers.

Kim Tae Kwon , Genera l Manager

Commercial Dry Bulk & Liner Services, said the

national maritime carrier of the Sultanate was

ideally positioned to serve as the shipping

department of local mining firms looking for a

competitive partner in the transportation of their

mineral commodities to markets around the

globe.

We can offer you a one-stop solution for your

freight requirements, said Kim. We can also

provide shipping consultancy services to

enhance the competitiveness of your mining

exports to world markets, he told mining

executives at an event held in the city recently.

Muscat-headquartered OSC is looking to

position itself as a pivotal player in the maritime

transportation of locally generated mineral

commodities. Exports surged over 12 million

tonnes last year, with Salalah Port accounting for

a dominant share. The company already plays a

major role in the import and export of dry bulk

volumes linked to a number of mega industrial

projects in operation in the Sultanate.Notable is

its part in the shipment of iron ore for the giant

pelletising plant of Vale Oman at Suhar. OSCs

wholly owned fleet of Very Large Ore Carriers

(VLOCs), each of a mammoth 400,000 tonne

capacity, has been deployed to transport the

feedstock from Brazil to the Sultanate.

By Staff Reporter MUSCAT: March 20

Omantel has launched the Hayyakum

programme that will classify Omantel

merchants based on their performance. The

programme is expected to strengthen Omantels

relationship with its dealers through unique

benefits and rebates. The objective of the

programme is to classify top Omantel merchants

through a tiering system that considers strategic

alignment, size of activations, activation

effectiveness levels and overall quality. The

Hayyakum programme is being carried out

along with Sale International the sole

distributor partner for Omantel in the Sultanate.

The programme will also allow merchants an

additional commission, contingent on meeting

targets and loyalty levels.

Iyad al Lawati Senior Manager Indirect

Channels, Omantel said: Our merchant is one

of our most important stakeholders and we are

very pleased to be able to launch the Hayyakum

programme to encourage and reward our

merchants across the Sultanate based on the

level and quality of overall performance.

Omantel has played a tremendous role in

positioning the Sultanate among the top 20

countries with the fastest 4G networks in the

world and our merchants have been a key part of

this success story.

Naser al Kharouf Country GM of SALE

International said: We are pleased to partner

with Omantel to introduce the Hayyakum

programme to Omantel merchants in the

Sultanate. The program will prove to be

extremely beneficial to monitor performance

across various categories. This will contribute to

enhancing the telecommunications landscape in

Oman.

OOC-owned Oxea

to build new

chemical unit

Gateway for

investors in

tourism

Oman Drydock to

tie up with major

services providerAlara Resources

inks deal with

Mining

Development

Oman

MUSCAT, MARCH 20

Oman Oil Company (OOC) owned Oxea, a

global manufacturer of oxo intermediates and

oxo derivatives, has announced the construction

of a major propanol unit adjoining its existing

complex in Texas, USA.

The world-scale plant, dubbed Propanol-2, will

boost Oxeas propanol production capacity by

around 100,000 metric tonnes/year, and its

propionaldehyde capacity by 40,000 mt/year.

Propanol is a key ingredient in the manufacture

of a range of products such as adhesives,

coatings, printing inks and pharmaceuticals

formulations. Propionaldehyde, on the other

hand, is used in the production of food

preservatives, plasticisers, plastics, rubber

chemicals and pharmaceutical.

Oman Oil Company, the wholly Omani

government owned energy and strategy

investment arm, acquired Oxea in December

2013. The acquisition of what is effectively the

worlds second largest producer of oxo

intermediates and oxo derivatives catapulted

Oman Oil Company into the ranks of the worlds

top chemicals producers.

Oxea operates a global network of plants offering

a total production capacity of over 1.3 million

tonnes per annum of oxo intermediates and oxo

derivatives, such as alcohols, polyols, carboxylic

acids, speciality esters, and amines. These

intermediate products are used in the production

of a wide array of products, including paints and

c o a t i n g s , l u b r i c a n t s , c o s m e t i c s a n d

pharmaceutical products.

State-owned Oman Drydock Company (ODC)

part of Oman Global Logistics Group (OGL)

is preparing to partner with a leading

international marine engineering services

provider aimed at adding a specialist market

segment to its diversified portfolio of ship repair

and maintenance services.

discussing the potential direction for the tourism

strategy. Impact of tourism on economy, Tourism

Strategy of Oman 2040, Oman Travel and

Tourism Competitiveness Report were the major

highlights of the morning session, while the

panel discussion looked into the overview of

tourism industry in Oman, key hospitality

projects in the Sultanate and perception of

international investments in tourism market.

961213The conference, which is the first of its

kind, serves as a platform for launching

investment in tourism, and came after

completing Oman Tourism Strategy which

identified the Sultanates vision for tourism

sector, said Ahmed bin Nasser al Mehrzi,

Minister of Tourism.

The ministry has initiated the tourism layout for

the Governorate of Dhofar and will soon float a

tender for layouts in Al Dakhiliyah, Musandam

and South Al Sharqiyah governorates, in addition

to Jabal Shams, he added.

Hayy Al Sharq in the Wilayat of Barka, which

stretches over 1.5 million square metres, will

cover the gap in the domestic tourism and will

help in attracting Arab tourists. The ministry has

also approved Yeti Tourism Project of Oman

Investment Fund and Yankit Project, which

stretches over 8 million square metres. The two

projects will be merged to be an integrated

tourism complex which includes hotels,

entertainment, water games and adventure

sports, he said.

Maitha bint Saif al Mahrouqiyah, Under-

Secretary of the Ministry of Tourism, said that

the number of inbound tourists to the Sultanate is

growing and that a number of hospitality projects

will be opened this year and during the next few

years.

The conference is organised by ASAAS.

According to Lulua al Araimi, the business

development analyst at ASAAS, the objective of

the conference is to create an annual major event

as a platform where all the stake holders can

come together. Our aim is to attract international

investors.

According to a key official of the Duqm-based

yard, five prominent marine engineering services

firms based in Europe and the Far East are

currently in contention for a partnership

arrangement with ODC.

We are looking at a long-term technical

cooperation agreement (with the selected

party), said Dr Ahmed al Abri (pictured),

Deputy CEO Operations, Oman Drydock

Company. Through th i s pa r tne r sh ip

arrangement, we aim to target a completely

different market segment of special sea vehicles,

such as subsea projects, semi submersibles,

offshore structures, vehicles for underwater

operations, and so on, he added.

The pact, set to be formalised next week, comes

on the heels of a landmark joint venture

agreement inked last November between ODC

and Babcock International Group, the leading

engineering support services organisation of the

United Kingdom. The JV will help enhance the

Duqm yards ability to provide a range of

superior marine engineering services to visiting

vessels from British and international naval

fleets.

According to Dr Al Abri, around 447 ships of

various types and sizes have so far been handled

at ODCs high-tech facilities for maintenance

and repairs since it was launched in 2011. We

hope to reach the landmark figure of 500 vessel

dry-dockings to date sometime this year, he

said, noting that the yard has delivered a 15 25

per cent improvement in its bottomline over the

2015-2016 timeframe.

Although dry-docking and refurbishment

contracts were numerically lower last year than

in 2015, the cumulative volume of business

generated at the yard was nevertheless

heartening, he said. This was primarily because

of a trio of major conversion jobs handled at the

yard. Conversions typically extend over a couple

of multiple months and take up much of the

yards labour resources, thus keeping the facility

busy, he explained.

By Lakshmi Kothaneth MUSCAT: March 21

The two-day Oman Tourism Investment

Conference (OTIC) brought into focus latest

projects and investment opportunities, while


Australian minerals exploration company Alara

Resources Limited has signed a Memorandum of

U n d e r s t a n d i n g ( M o U ) w i t h M i n i n g

Development Oman (MDO), the Sultanates new

mining investment and development flagship.

The pact represents a major shot in the arm for the

Australian firm as its local joint venture prepares

to launch work on its ambitious Al Hadeetha

Copper Gold project, as well as pursuing other

mining initiatives in the Sultanate.

MDO is a new holding company established last

year to invest in, among other things, large-scale

commercial mining and downstream processing

schemes, as well as transport and logistics

infrastructure to underpin the growth of this

promising sector.

Sixty per cent of MDOs share capital of RO 100

million is owned by four government entities: the

State General Reserve Fund (SGRF), Oman

Investment Fund (OIF), Oman Oil Company

(OOC) and Oman National Investments

Development Company (TANMIA). The

balance 40 per cent is proposed to be offered for

public subscription via an Initial Public Offering

(IPO) on the Muscat Securities Market (MSM).

Ala ra and MDO have now s igned a

M e m o r a n d u m o f U n d e r s t a n d i n g a n d

Confidentiality Agreement in connection with

these objectives (the MoU), said Alara in its

statement. Alaras discussions with other

interested parties (including potential project

equity partners for

Oman) are continuing, subject to the terms of the

MoU. While Alara remains open to receiving

equity investment at the project level, this is not a

requirement for the Al Hadeetha Copper Gold

Project to proceed, it further noted.

Alara Resources plans to develop what is billed

as the Sultanates single largest copper resource

at Washihi, just outside Muscat Governorate,

which will open up a potentially rich local source

of supply for the nations domestic needs. Output

of copper concentrate from the Washihi deposits

is projected at around 350,000 tons over 10 years,

yielding approximately 80,000 tons of copper

metal if smelting is also undertaken locally.

planning than doing, which causes major

problems while rolling strategy to work. The

worst part is that leaders do not own the

execution process; instead, they delegate the task

of execution to people at lower lever, and very

often, without proper training and guidance.

Masirah Oil Limited and its partners have

announced that the drilling of exploration well

Karamah-1 in Block 50 Oman has commenced.

The prospect Karamah is targeted for a depth of

about 3 km, and is located on a structural closure

approximately 13 km away from the earlier

GAS-1 discovery well at a water depth of 23

metres. The well objective is to explore multiple

target horizons of the Early Tertiary and Late

Cretaceous formations, the company said in a

press statement.

The wells location was selected by integrating

mainly the geological understanding and the

proprietary multi-attribute Rex Virtual Drilling

technology. The well is being drilled using the

independent leg cantilever jack-up drilling rig

Aban VII which was also used in earlier Masirah

drilling campaigns.

The shareholders of Masirah are Rex Oman Ltd

at 85.15 per cent, Schroder & Co Banque SA at

5.00 per cent, Lime Petroleum Plc with effective

shareholding at 1.45 per cent and Petroci

Holdings at 8.39 per cent.

Oman-based consu l t ing f i rm Tanf idh

Management Consultants has once again taken

the lead in inviting international, regional and

local keynote speakers to Muscat to share their

transformation knowledge and expertise at the

Transformation Through Strategy Execution &

Innovation Conference and Post Conference

Workshops taking place at the Grand

Millennium Hotel, Muscat from March 27 to 30,

2017.

Tanfidh Management Consultants mainly

focuses on Strategy and Strategy Execution with

the use of proven methodologies like Strategy

Maps, Balanced Scorecard and OKRs.

No matter how best the strategy has been

developed, it is completely useless without

effective execution, say experts of Tanfidh.

Making Strategy Happen is increasingly

proving to be a key to organizational success.

With the current global economic downturn this

statement is true for all types of organizations be

they public, government, private or non-profit.

Most leaders, however, know a lot more about

strategy formulation than execution, according

to Tanfidh. They know much more about

E-visa must to

bring more

inbound visitors

Foreign exchange

position healthy

Duqm SEZ

contract awards

top RO 705m

Drilling of new

exploration well in

Block 50 starts

Conference on

Transformation

Through Strategy

Execution and

Innovation

Duqm flights to be

directly handled

by Oman Air

Local firm wins

Oman sebacic

acid project

contract

By Vinod Nair MUSCAT: March 22 The

country must have provisions for simplified e-

visas ready by the time the new Muscat

International Airport is operational later this

year, said CEOs of two national airlines at a panel

discussion on Wednesday.

Speaking at the panel discussion of Oman

Tourism Investment Conference, Paul

Gegrowich, Oman Air, CEO, said currently there

are constraints because the present airport was

built initially to cater to only four million

passengers a year and now it handles around 12

million passengers.

Visa procedures should be simplified and we

need e-visa services to be introduced in a big

way. Despite all efforts to stimulate tourism, we

are currently lacking in airport infrastructure and

procedures.

Franois Bouteiller, CEO, Salam Air, said: E-

visa is the key aspect to attract inbound tourists

and there should be some working groups formed

to address these aspects. We need to raise and

deal with these concerns through a specific

deadline. We should not have a beautiful terminal

but lag behind in services.

Stressing that aviation brings direct and indirect

employment, experts said that for every 30

travellers, there is one employment. Passengers

on the Salalah and Muscat sector have been

increasing and growth of traffic form Muscat has

been consistent at double digits, it was said.

It was also pointed out that there is enough room

for a budget carrier and 34 airlines are operating

out of Muscat. The market share for low-cost

carriers has been 15 per cent in the Middle East.

By Samuel Kutty MUSCAT: March 22 The

foreign exchange reserves in the balance sheet of

Central Bank of Oman (CBO) continue to remain

healthy. The bank maintains enough foreign

reserves and these help maintain monetary

stability in the country, said Hamoud bin

Sangour al Zadjali, CBO Executive President.

According to him, the monetary reserves at the

apex bank are satisfactory and enough to cover

the Omani rial, hence there is no question of

depreciation of the currency.

Referring to the recent decision to raise CBOs

capital from RO 760 million to RO 1 billion, al

Zadjali said that the move would support the

fiscal position and monetary stability.

The move will help enhance confidence in the

countrys financial system and help maintain

sufficient capital and reserves, he told the

Observer.

He affirmed that the CBO maintains enough

foreign reserves and adopts a monetary and

banking policy that ensures stability of the fixed

exchange rate of the Omani rial.

This in turn leads to maintaining its purchase

power against the different currencies, he said.

According to CBOs January bulletin, the foreign

exchange position is healthy.

Although the current account in the balance of

payments is facing pressure, the CBO ensured

that the foreign exchange reserves in its balance

sheet remained healthy, the report said.

Starting tomorrow (March 24), flight bookings to

Duqm in Al Wusta Governorate will be directly

handled by Oman Air, according to a circular

issued by the Travel City Group which has been

handling the bookings ever since the services

began in 2014. All passengers who have booked

with the travel conglomerate for travel after

625 million of the total, while consultancy firms

netted in excess of RO 30 million in contracts.

Projects awarded last month alone totalled

around 49 million in value, underscoring the

pace at which the Sultanates most ambitious

SEZ enterprise is being developed, said Eng

Hussain al Zadjali, Head of Building Projects at

SEZAD.

Speaking to journalists during a media tour of the

sprawling zone on Omans Al Wusta coast, Al

Zadjaii listed a number of prestigious contracts

that are currently under tender and due for award.

They include contracts for a service corridor to

the $6 billion Duqm Refinery, expansion of the

water distribution network, construction of new

roads and bridges, establishment of drainage

systems at Duqm Port, and various consultancy

services for various initiatives.

Several major developments are also ongoing at

a cost of several hundreds of millions of dollars,

he said. Notable are contracts for the

construction of the Jurf and Saay channels

designed to secure the SEZ against potential

flooding. The partnership of Serka Taaghhut and

Ajab is executing this package of infrastructure

works. Separately, Premier International

Projects is undertaking the construction of flood

protection dams upstream of these channels,

aimed at staving off destructive flood events in

the future. Both contracts are due for completion

in the second half of 2019.

Just south of the SEZ, Galfar Engineering &

Contracting is constructing the nations largest

fishery harbour, which will anchor an Industrial

Fisheries Hub planned as part of the SEZ. The

contract, comprising marine infrastructure and

road networks linking the facility to the SEZ, is

due for completion in Q2 2019.

Local contracting firm Al Duqm Global

Construction has been awarded the main contract

to undertake the construction of Omans first

sebacic acid plant at the Duqm Special Economic

Zone (SEZ). Total investment in the project,

promoted by Omani-Indian joint venture Sebacic

Oman, is estimated at RO 62.7 million.

Work on the facility, which represents the first

overseas industrial investment in the SEZ, is well

under way with civil works on track for

comple t ion we l l be fo re the p ro jec t s

commissioning targeted before the end of this

year.

Speaking to journalists during a site visit

organised by the SEZ Authority at Duqm

(SEZAD), Al Duqm Global representatives said

the foundations of the key components of the

project, notably the centrepiece sebacic acid

plant as well as dedicated facilities for the

production of octanol, sulphuric acid, glycerine

and dioctyl phthalate (DOP), were currently

being constructed in place.

Extracted from castor oil, sebacic is used in many

industries, such as chemicals, plastics, and

pharmaceuticals. I t is also used as an

intermediate ingredient in the manufacture of

detergents, paints and perfumes.

March 23 will be given full refund to enable them

to have a fresh booking with GDS.

We will no more be handling the bookings to

Duqm from March 24 and all can book tickets

online or log on to Oman Air web site to make a

booking. All passengers who have booked with

us for travel after March 23 will be given full

refund, a source at the agency said.

To facilitate ease of access for the investors and

residents of the Al Wusta Governorate and

Special Economic Zone Authority (SEZAD)

Oman, Duqm airport was opened in July 2014.

Oman Air, the national carrier of the country, has

been operating Embraer E175 aircrafts to this

future business hub which has been growing at a

rapid pace with investments from across the

world in its varied areas. Till now, Oman Air has

four flights per week to Duqm but as the demand

went high, service will be extended to daily,

according to the airline sources.

The Special Economic Zone Authority at Duqm

(SEZAD) has awarded contracts totalling RO

705 million to date a figure that is set to soar

on the back of a plethora of new infrastructure

and utility contracts due to be tendered out over

the coming 12-plus months.

According to a senior official of SEZAD,

construction contracts accounted for a hefty RO

Ten projects bag

GCC Meed quality

awards

Gold hallmarked in

Dhofar

MUSCAT

Ten Sultanate projects have won national

honours in the Meed quality awards.

The awards not only recognise the construction

element of project delivery but also consider the

value and quality of a project throughout its

entire life cycle, from the design to engineering

and construction and its wider contribution to

society and to the environment, according to a

statement.

The combined value of the 10 projects is

estimated at $274 million.

The award winners were Hoehler and Al

Salmys Conference and Exhibition Hall at

GUtech, AWS Engineerings BP Remediation

Project at Port of Salalah, Atelier Pod and

E n g i n e e r i n g I n n o v a t i o n D e s i g n a n d

Consultings Anantara Al Jebel Al Akhdar

Resort Project, Musstirs Al Baleed Resort

Project, Larsen & Toubros constructio

News & Politics

Oman opportunities