Ubhar Capital SAOC (U Capital) has announced the completion of the merger between U Capital and GBCM. The merged entity has started to operate as Ubhar Capital SAOC. The merger brings together two leading investment services firms in Oman with combined assets under management and custody of $1.2 billion and U Capital will continue to be the leading broker in the Muscat Securities Market.
U Capital is owned by strong shareholders, comprising: Oman International Development & Investment Company SAOG (Ominvest), Arab Bank (Switzerland) Ltd and Jabreen Capital with an ownership pattern of (36 per cent), (34 per cent) and (30 per cent) respectively.
The merged entity will continue to focus on key business segments of Asset Management, Corporate Finance, Wealth Management, Brokerage/Research and Custody Services.
The highly complementary investment banking capabilities of Ubhar Capital and GBCM will strengthen the combined organisation’s ability to provide services to an expanded number of clients in Oman, the region and around the globe.

As the Sultanate of Oman celebrates 20 years as a member of the World Trade Organization (WTO), Qais bin Mohammed al Yousuf, Minister of Commerce, Industry and Investment Promotion recently delivered an online presentation at a WTO, Arab Monetary Fund and Islamic Development Bank organised event.
Alongside Al Yousuf was Hilda al Hinai, Deputy Permanent Representative of the Sultanate of Oman to the WTO Office in Geneva, and Maqbool Ali Sultan, who headed the erstwhile Ministry of Commerce and Industry.
The World Trade Organization’s General Council approved the accession of Oman to the WTO in October 2000. Following the General Council’s approval, Maqbool Ali Sultan, Minister of Commerce and Industry at that time, along with WTO Director-General Mike Moore signed the Protocol of Accession thereby completing the process and Oman became the 139th Member of the WTO on November 9, 2000.

Oman Tourism Development Company (Omran), the Sultanate’s executive arm for tourism development, plans to roll out a nationwide chain of integrated tourism service stations at key locations along leading carriageways across Oman.
The first of these facilities — operating under the ‘Aber Service Stations’ brand — has come up on the Qurayat-Sur coastal road.
As with all outlets, Qurayat-Sur Travellers Oasis — Omran’s maiden project under the Aber brand — will serve as a one-stop for visitors, tourists and travellers, while offering them the opportunity to refuel, rest, relax or enjoy a snack or meal.
“As part of its strategic role as a catalyst of growth in the tourism sector across the Sultanate, Omran Group has developed the first integrated rest area ‘Aber’ on Qurayat-Sur highway to serve and enhance domestic tourism and provide visitors, tourists and travellers all the essential public services,” the country’s tourism development flagship said in a recent announcement on the Aber project.

Sohar Port and Freezone says it weighing plans to support the development of a floating solar power plant — a novel venture that underscores growing interest in Oman’s renewables based potential.
According to a top official of the industrial and commercial hub, the initiative is currently in the exploratory phase and involves collaborations with local and international universities. It also underlines Sohar Port’s ambitions to reduce its dependence on fossil fuel based energy resources and switch to renewables, notably solar and green hydrogen, in a bid to support its transition towards a clean energy future.
Mark Geilenkirchen (pictured), CEO, said the port is working with Sohar University and Delft University of Technology, the oldest and largest Dutch public technological university, to “unlock the potential for a floating solar power plant”. He made the announcement in a white paper outlining Sohar Port’s plans to create the first green hydrogen hub in the Sultanate.
Significantly, the proposed floating solar power project will add to an impressive portfolio of ‘green initiatives’ currently in various stages of implementation at the port and freezone.

After a significant contraction in 2020, the Sultanate’s economy is anticipated to make a positive recovery over the next two years, buoyed by an uptick in local consumption and the roll-out of Value-Added Tax (VAT), according to the World Bank. The US headquartered financial institution said in its latest update that Oman’s economy is expected to eke out an average four per cent of growth over the 2021-2022 timeframe, if an anticipated recovery gets under way. It partly credited this positive outlook to new natural gas volumes from the newly launched Ghazeer gas field in central Oman, which is expected to sustain strong energy demand and potentially fuel new investments as well.
“If conditions ease, growth in Oman is projected to gradually pick up to an average of 4 per cent in 2021-22, but very backloaded to 2022, partly due to a spike from the second phase of the Khazzan field,” said the World Bank in its update for October 2020. “Gas field development has been critical to meet growing domestic and global demand, but it is not on a scale that is transformative in its own right,” it noted however. Earlier this month, energy major BP brought into operation the Ghazeer gas field, representing the second phase of its signature Khazzan development in Block 61.

2020 has certainly been the year of Tax Reform in Oman with several significant enhancements being announced to the fiscal tools available to the government. The most impactful of these announcements will certainly be the introduction of Value Added Tax (“VAT”) starting from April 2021 at a rate of 5 percent.

The concept of VAT is relatively new within the GGC region, with the Kingdom of Saudi Arabia and the United Arab Emirates implementing VAT on January 1, 2018, with the Kingdom of Bahrain adopting VAT the following year. Though we are less than 3 years into the GCC VAT regime we have already seen a VAT rate increase in the KSA from 5 percent to 15 percent which is indicative of the pace of change we are currently seeing in the regional tax landscape.

The Oman government’s decision to roll out Value Added Tax (VAT) with effect from April 2021 will not only buoy the country’s constrained fiscals but perhaps just as importantly, it will have beneficial and far-reaching socio-economic impacts as well.

For one, VAT implementation will contribute to a gradual, but significant, reduction in the government’s interest cost burden in financing its sizable debt. Secondly, the introduction of a new tax regime in the country will create potentially thousands of jobs for Omanis in a variety of accounting and tax-related fields.

According to Muscat-based tax expert Alkesh Joshi, the benefits accruing to the national economy as a result of VAT implementation will far outweigh the cost burden on consumers once the new 5 per cent levy – one of the lowest VAT rates in the world – comes into force on goods and services next April.

“VAT implementation will unleash a number of beneficial spinoffs – direct and indirect – with positive ramifications for the wider Omani economy,” Joshi, Partner, Oman Tax Leader, MENA Energy Tax Leader at EY, said.

The Special Economic Zone at Duqm (SEZAD) handed over the buildings of the Customs Station at the Port of Duqm, including vehicles registration building and One-Stop-Shop building after completing their construction as part of the port’s infrastructure projects.

This move comes ahead of the start of operations of the Customs Station at the Port of Duqm. The buildings were handed over in the presences of a number of officials from SEZAD, Port of Duqm Company, and Oman Company for the Development of the Special Economic Zone at Duqm (Tatweer). The handover process included an inspection tour to the buildings to ensure the readiness of all facilities before starting actual operations.

Eng Yahiya bin Khamis al Zadjali, In-Charge of Managing the Operations of the Special Economic Zone at Duqm, said the facilities handed over include buildings for Customs, agriculture, fisheries and water resources, and the clinic of the Ministry of Health.

Oman’s decision to exempt a number of basic goods and services from the purview of Value Added Tax (VAT), slated to come into force with effect from April 2021, has been hailed as a reflection of the government’s commitment to minimising the financial impact of the new levy on the general population of the Sultanate.

Basic foodstuff, healthcare, medicines, education and local passenger transportation are among an array of goods and services either zero-rated for VAT or made entirely exempt from the application of the new tax. They are among 16 different categories of goods, services and activities that will not attract the new five per cent levy announced vide Royal Decree 121/2020 promulgated by His Majesty Sultan Haitham bin Tariq on Monday.

The Omani government’s recent RO 200 million sukuk issuance incorporated several novel features that distinguished it from previous issuances, according to the bond’s legal advisers.
The transaction involved the issuance of a third tranche of sukuk under the Government of Oman’s local sukuk issuance programme which followed the establishment of the programme and the issuance of the first two tranches of sukuk in late 2019.
Leading Omani law firm AMJ was sole legal counsel to the Government of Oman (as obligor), Oman Sovereign Sukuk Company SAOC (as issuer) and Bank Muscat and its Islamic window, Meethaq Islamic Banking, (as issue manager and lead manager) on the update of the Government of Oman’s Omani Rial unlimited value sukuk issuance programme and the issuance of sukuk aggregating RO 200 million ($519 million).
The issuance was undertaken in a single tranche of RO 200 million sukuk with a tenure of six years and a profit rate of 5.25 per cent per annum. The issuance closed on September 21, 2020 and was listed on the Muscat Securities Market.

The Central Bank of Oman (CBO) is formulating a robust and comprehensive strategy to support the growth and adoption of financial technology (fintech) services in the Sultanate — a move designed to launch Oman into a burgeoning global industry projected to hit a market value of $300 billion by 2025. Oman’s fintech strategy, according to the Central Bank’s Executive President, has the potential to fuel, among other things, the roll-out of innovative banking and financial products, promote venture capitalism, drive entrepreneurship and employment generation, and spur economic development in general.
“Recognising the significance of technological relevance and its necessity in the arena of banking, the CBO has been playing a proactive catalytic role in providing and creating an enabling environment to facilitate the growth of fintech in the Sultanate’’, Tahir bin Salim al Amri said.

The launch of Oman’s national credit bureau (Mala’a) exemplifies efforts by the Central Bank, as well as the Omani government, to strengthen financial inclusion: Tahir al Amri, CBO Executive President

The Oman Credit and Financial Information Centre (Mala’a) — the country’s ?rst National Databank — will formally come online on November 18, 2020, coinciding with the Sultanate’s 50th National Day.
Its operationalisation will help address the financial sector’s longstanding need for timely access to credit and ?nancial data, which is indispensable for enhanced decision-making and credit assessment.
An announcement to this effect was made by the Executive President of the Central Bank of Oman (CBO), under whose auspices the national databank centre operates, at a forum held at the Sheraton Oman Hotel on Tuesday.

The Sultanate’s payment system architecture — billed as the digital backbone of the country’s financial system — is being progressively upgraded to position it among the most modern in the Arabian Gulf.
According to Tahir Salim al Amri, Executive President of the Central Bank of Oman (CBO), the technological enhancements will, among other benefits, modernise the wholesale payment system, boost efficiencies in mobile payments, enable the entry of new payment service providers, and facilitate person-to-person payments.
Delivering the keynote address at the 5th New Age Banking Summit 2020, an annual forum held at the Sheraton Oman Hotel on Tuesday and live-streamed to a virtual audience as well, Al Amri said a robust regulatory framework continues to provide solid underpinnings for the growth and development of the country’s payment infrastructure. At the heart of this regulatory framework is the National Payment System Law (NPSL), issued vide Royal Decree 8/2018, and backed up by executive regulations issued in early 2019.
“It paves the way for licensing new types of non-banking entities — payment services providers — which are essentially start-ups or innovators’’, said the Executive President.

Oman Environmental Services Holding Company (be’ah) — the Sultanate’s solid waste management flagship — says it has finalised a feasibility study into Waste-to-Energy (WTE) options aimed at generating high pressure steam for the Enhanced Oil Recovery (EOR) operations of Petroleum Development Oman (PDO).
The study envisions multiple scenarios for utilising power and steam recovered from incinerating an estimated 960,000 tonnes of waste per annum, wholly government-run be’ah stated in its 2019 Annual Report.
“This project will help PDO meet its requirement for high-pressure steam to be used for its Enhanced Oil Recovery (EOR) activities,” said be’ah.
“Upon a final decision from PDO on the preferred scenario, be’ah and PDO will enter into an agreement to commence RFQ (Request for Qualifications) and RFP (Request for Proposals) processes for tendering out the project on BOOT basis: Build, Own, Operate and Transfer,” it noted. be’ah has been exploring waste-to-energy options to deal with various kinds of waste. Its signature waste-to-energy project at Barka, centring on the development of Oman’s first such scheme for electricity generation, has been temporarily put on hold due to a slump in power demand growth. Oman’s power authorities have promised to revive the project once market conditions are conducive for its implementation.

Government revenues slumped 12.4 per cent to RO 4.830 billion during the first six months of 2020, resulting in a deficit of RO 827 million for the period, the National Centre for Statistics and Information (NCSI) revealed in its latest monthly bulletin. Contributing to the decline were lower oil and gas export revenues, as well as significant shortfalls in customs duties and corporate income tax, according to the report. Net oil revenue fell 16.3 per cent to RO 2.572 billion during the six months to June 30, 2020, down from RO 3.074 billion during the same period of 2019.
The disparity is primarily attributable to the downtrend in international oil prices witnessed over the course of this year, combined with an output cut agreed by Oman in line with its commitment to the Opec+ grouping to help shore up global oil prices.
LNG export revenues too fell 21.2 per cent to RO 740 million this year, down from RO 934 million last year.
Citing Ministry of Finance data, the bulletin also noted a steep 33 per cent drop in corporate income tax, which tumbled to RO 351 million this year, down from RO 524 million during the first half of 2019.
An assortment of ‘Other Revenues’ registered a 26.4 per cent uptick to RO 1.066 billion, up from RO 843 million last year.

Wholly government owned Space Communication Technologies Company (SCT) has signed a multi-year contract with Oman Broadband (OB) for the Universal Service Obligation project as part of the national initiative by Telecommunication Regularity Authority (TRA) to provide communications and Internet services to around 598 remote villages and residential areas in Oman, as SCT considered the government investment arm in the field of space technologies. The signing of the contract took place in the headquarters of Oman Broadband. Eng Salim al Alawi, Managing Director of SCT, signed the contract along with Eng Bader a Zeidi, acting CEO of OB.
SCT will be providing and running the full satellite communication infrastructure to cover the whole Sultanate of Oman, including Multiple government institutions that exceed 100 schools and health centres, while Oman Broadband will coordinate with the local fixed line Internet service providers in the Sultanate of Oman to accommodate the need of users in the designated areas as per the initiative
The infrastructure Satellite communication services provided by SCT with the Latest technologies using High Throughput Satellites (HTS) on Ka-Band. This will allow the users to benefit from the multiple online service and communications such as E-government services, online streaming services, online education tools, and so on.

Swedish-based international upstream energy firm Maha Energy AB has announced that it has been selected by Oman’s Ministry of Energy and Minerals to explore for hydrocarbons in Block 70, a new block that contains the potentially prolific Mafraq heavy oilfield.
An Exploration and Production Sharing Agreement (EPSA) is scheduled to be signed with the Omani government on October 1, 2020, according to the Stockholm-headquartered company. The pact will mark Maha Energy’s maiden investment in Oman’s upstream sector, and follows on the heels of a similar EPSA deal signed recently by the Sultanate with US energy firm EOG Resources Inc, for Block 36, just over a week ago.
Block 70 is one of six Oil & Gas blocks that were tendered out by the ministry as part of the 2019 Oman Licensing Round. Along with 58, 73, 74, 75 and 76, Block 70 was previously part of the prolific Block 6 currently operated by majority-government-owned Petroleum Development Oman (PDO).

In a significant move, the Tax Authority has abolished the longstanding practice requiring taxpayers to file a provisional return of income within three months and an annual return of income within six months from the end of the accounting year.
Instead, taxpayers are now mandated to file only one tax return within four months from the end of the tax year.
It follows the promulgation of Royal Decree 118/2020 amending the Income Tax Law, which was published earlier this week in the Official Gazette.
“The amended tax law has, with effect from tax years beginning on or after January 1, 2020, removed the requirement to file a provisional return of income and settle taxes on the estimated income within three months from the end of the relevant tax year or accounting period,” said leading audit, tax and advisory services firm KPMG.
“Taxpayers are required to file only one tax return within a period of four months from the end of the relevant tax year or accounting period. Tax is also now required to be paid within this period of four months. Previously, the time period for filing the final return and paying the balance tax was six months,” the firm stated in an advisory circulated to clients and the general public.

Despite an abundance of fossil fuels and the impact of the coronavirus pandemic, countries in the Middle East are still forging ahead with international and local renewables projects.
The oil-rich Gulf region is among the areas benefiting most from the global appetite for these projects. The UAE, Saudi Arabia, Qatar and Oman are the four countries in the six-member Gulf Cooperation Council that have developed renewables projects over the last few years.
Saudi Arabia, the world’s largest oil exporter, is expected to lead the push in the Middle East in the next few years, having launched several renewables projects, including its first wind farm, to free up crude burned in power plants for export.
The country’s third renewables round to add 1.2 GW of solar capacity is advancing after 49 companies pre-qualified for lead roles. The kingdom announced it would “very soon” announce a solar energy project with the lowest electricity cost per kilowatt-hour in the world.
Record-low tariffs and plans to reduce dependence on crude oil and natural gas as feedstock for power and energy-intensive water desalination plants are the main factors behind the rapid development of renewables in the region.

The Sultanate’s biggest petrochemicals investment to date — the giant Liwa Plastics Industrial Complex (LPIC) – is on track to commence commercial production later this year, according to a high-level official associated with this signature project.
Ahmed Saleh al Jahdhami, Chief Executive Officer (Downstream) at OQ, the Sultanate’s integrated energy group (formerly Oman Oil and Orpic Group), said the massive venture set up with an investment of $6.7 billion, will optimise value generation from Oman’s hydrocarbon resources.
“We are establishing a state-of-the-art, integrated refinery and petrochemical facility combination”, said Al Jahdhami. “With LPIC coming online, we are one step closer to realising our vision for diversifying our Downstream portfolio in Oman. This transformational project will firmly put the Sultanate on the global petrochemicals map and enhance OQ contribution to the national GDP,” he added in an interview published by the Anglo-Omani Society (AOS), a UK-based charitable organisation committed to sustaining close ties between the Sultanate and Britain.

The Central Bank of Oman (CBO) has directed commercial banks, as well as finance and leasing companies (FLCs), operating in the Sultanate to begin scrupulously implementing the provisions of the Multilateral Competent Authority Agreement on the Exchange of Financial Information – an international convention that seeks to, among other things, combat offshore tax evasion.
A recent circular signed by CBO Executive President Tahir Salim al Amri has called on all banking and financial institutions to comply with the requirements of the Common Reporting Standard (CRS), which forms the centrepiece of the agreement.
The Common Reporting Standard (CRS) is described as a global standard developed by the Organisation for Economic Cooperation and Development (OECD) to support the automatic exchange of financial account information.

The Sultanate’s longstanding ambitions to add oxo chemicals — intermediate chemicals used in the manufacture of a wide array of products of everyday use — to its domestic production capabilities are set to become a reality.
It follows a decision by OQ (formerly Oman Oil &Orpic Group), the wholly Omani government-owned integrated energy flagship of the Sultanate, to licence the domestic production of oxo chemicals for the first time in Oman.
Oxo intermediates and oxo derivatives encompass a range of alcohols, polyols, carboxylic acids, specialty esters, and amines — ingredients used in the manufacture of, among other products, high-quality coatings, lubricants, cosmetics and pharmaceutical products, flavourings and fragrances, printing inks and plastics. Many of these chemicals are an integral part of the global construction, automotive and Original Equipment Manufacturing (OEM) economies.

Qais bin Mohammed al Yousuf, Minister of Commerce, Industry and Investment Promotion, met on Wednesday with industrialists and investors at Al Rusayl Industrial City. The meeting was attended by Dr Saleh bin Said Masan, Under-Secretary of the Ministry of Commerce, Industry and Investment Promotion for Commerce and Industry, Eng Ridha bin Juma al Saleh, Chairman of the Board of Directors of Oman Chamber of Commerce and Industry (OCCI), Hilal bin Hamad al Hasani, Chief Executive Officer of the Public Establishment for Industrial Estates (Madayn), and Eng Said bin Nasser al Rashdi, Chief Executive Officer of Oman Manufacturers Association.

ناقشت لجنة الخدمات والتنمية الاجتماعية بمجلس الشورى أمس الاثنين خلال اجتماعها الدوري الثاني عشر لدور الانعقاد السنوي الأول من الفترة التاسعة “2019 ـ 2023م” موضوع تأخر طلبات قروض الإسكان والمساعدات السكنية في وزارة الإسكان والتخطيط العمراني واشتراطات الحصول عليها، وقررت اللجنة عقد اجتماع خاص لمناقشة هذا الموضوع بعد توفر كافة البيانات والإحصاءات المتعلقة به للخروج ببعض المقترحات لاستكمال دراسة الموضوع من كافة جوانبه.
وفي موضوع آخر ناقش الاجتماع أهم التحديات التي تواجه الصيادين وناقلي الأسماك بولاية بوشر من أجل وضع الحلول المناسبة لهم جراء منع مزاولتهم لبيع الأسماك في بعض الأماكن العامة بالولاية من قبل بعض الجهات مما أثر ذلك على مصدر دخلهم.

Oman Environmental Services Holding Company SAOC (be’ah), the sole entity overseeing the management of solid waste in the Sultanate, says it working on a strategy to segregate the prodigious amounts of plastic waste currently ending up in landfills around the country.
According to the government-run agency, plastic waste – which it dubs “the biggest threat to our environment” – makes up 21 per cent by weight and 50 per cent by volume of the engineered landfills set up across the length and breadth of the country.
“Volume is the main issue in landfills because all landfills are designed and structured to hold specific capacities,” said be’ah, warning that the massive quantities of plastic waste generated around the Sultanate threaten to overwhelm these dumpsites.

Oman Aviation Group (OAG) has announced a strategic partnership with global logistics giant DHL to support the development of air logistics at Muscat Airport City.
The announcement came at an official press conference held at Muscat’s Kempinski Hotel and attended by representatives of both organisations, Group CEO of Oman Aviation Group, Mustafa al Hinai, and Country Manager of DHL Oman, Moustafa Osman.
Attracting international investors and leading logistics players to Oman is a key component of Oman’s National Aviation Strategy 2030, and the partnership agreement comes as part of a joint understanding of the companies’ mutual investment in air cargo as an essential building block for the future.
With COVID-19 underscoring the importance of air cargo in recent months, especially for the movement of essential goods and specialised medical equipment —the agreement further strengthens Oman’s attractiveness as a hub on strategic East-West trade corridors.

National Development and Investment Company (ASAAS) announced the signing of a usufruct agreement with the Office of the Minister of State and Governor of Musandam to develop the Bassah Beach site in the Wilayat of Khasab, Musandam Governorate.
This will add further momentum to the company’s ambition to help in diversifying the national economy by forging strong partnerships and aligning with the government’s vision to boost tourism contribution to the national GDP while also offering career opportunities for locals.

A protracted liquidity crisis coupled with a dwindling pipeline of projects is imperilling Oman’s beleaguered construction sector amid the pandemic and the on-going economic downturn, a leading representative of the industry has warned.
Shahswar al Balushi, former CEO of the erstwhile Oman Society of Contractors (OSC), also appealed to the Central Bank of Oman (CBO) and commercial banks to provide much-needed succour to the embattled industry by providing access to liquidity and restructuring debts racked up by individual companies.
“Construction companies are now facing quite a challenge in terms of liquidity because of the delay in receivables from the clients’ side, and also the unavailability of credit facilities from banks”, said Al Balushi. “Most of them are trying to sustain themselves through the COVID-19 situation, although a decline in projects since 2016 has affected their ability to access liquidity; some of them have exceeded their credit facility, and restructuring these facilities is costing them a substantial amount as well’’.

Wakud International LLC, the Omani-led joint venture behind the planned development of the country’s first biofuels project, has signed a partnership agreement with Modern Arabian Projects LLC for the collection of used cooking oils in Oman for conversion into biodiesel.
Modern Arabian has been collecting used cooking oils in the Sultanate for over 14 years and is the largest collector covering all of the country. Wakud is building a biofuels plant in Khazaen Economic City which can convert used cooking oils into biodiesel.
Commenting on the partnership, Talal Hasan, Chairman of Wakud, said: “We are humbled to have Modern Arabian as a partner. There has recently been a misconception that commercial establishments throw away their used cooking oil. This is not true and it’s thanks to the silent work of Modern Arabian which has contributed significantly to maintaining Oman’s natural environment by collecting this feedstock for over a decade.”

Shura Council discussed on Tuesday recommendations of the joint committee of State and Shura councils regarding the articles subject to the discrepancy that relates to draft value-added tax (VAT) law referred by the Council of Ministers as a matter of urgency. The Council agreed with these recommendations and returned the draft law to the State Council to complete the followed procedures.

The VAT is expected to be applied in the second half of 2021. It is the second tax planned to be applied after the selective tax which was imposed 100 per cent on products such as tobacco, pork, alcohol and energy drinks, in addition to a 50 per cent on soft drinks. However, the tax on alcohol was later reduced to 50 per cent.

The Economic and Financial Committee of the Shura Council previously proposed the application of VAT only in the event of achieving an economic growth rate of not less than 3 per cent provided that social security families and those with limited or low income to be taken into account.

Leading real estate advisory services firm Savills says it expects to see increasing challenges for the Sultanate’s real estate sector stemming from difficult economic conditions and the exodus of expatriates. Ihsan Kharouf, Head of Savills Oman, said in the company’s latest market report that the reduction in the expatriate population, which declined by 17.6 per cent between 2016 to Q1 2020, will be accelerated by the economic downturn and the pandemic. “Expatriates play a significant role in influencing demand for real estate’’, said Kharouf. “Market conditions in both the residential and office space rental sectors in Muscat were already in slowdown/recession prior to the COVID-19 pandemic as a result of slow economic growth and negligible net population growth.

Iran exported commodities worth US$110mn to Oman during the first four months of the current Iranian calendar year (March 20 - July 21), the secretary of Iran’s Trade Promotion Organization’s (TPO) desk on trade with Oman announced as reported by Tehran Times.

Soheila Rasoulinejad said that Iran’s exports to Oman during the four months period include construction materials, agricultural products and foodstuffs, as well as gas condensate.

The Tehran Times report said that Iran is replacing some of its previous strategic trading partners such as the UAE with Oman, considering the sultanate as an economic and trade hub. Over the past year, there have been many meetings between trade and economic officials from the state-run and private sectors of the two countries with the aim of strengthening and expanding bilateral trade ties, the report said.

According to the report, Iran-Oman Joint Chamber of Commerce and Iran Mine House (IMH) signed a memorandum of understanding (MoU) on cooperation for the expansion of Iranian private sector’s presence in Oman earlier this month.

Galfar Engineering & Contracting Co suffered more than RO11mn in losses for the first half of 2020 due to delays and cost overruns in company’s major projects and impact of COVID-19 situation.

The group incurred net losses of RO11.116mn in the first six months of this year compared to a net profit of RO2.48mn reported in the same period of 2019.

Galfar’s consolidated revenues dropped by nearly 13 per cent to RO110.761mn in the first half of 2020 as projects progress was also impacted by COVID-19 situation and the lockdowns and measures taken to control the pandemic, the company said in its report submitted to the Muscat Securities Market on Thursday.

Galfar said that the company continues to sustain heavy interest cost due to delayed payment of receivables. ‘The parent company has certified overdue receivables of more than RO42mn as of date from the government and its related entities. The delay in receiving the overdue receivable has caused a strain on the company’s cash flow, which resulted in suboptimal execution of certain projects and delay in completion of others.’

Oman Aviation Group (OAG), which is overseeing the development of a thriving aviation sector suitably aligned with the country’s tourism and logistics growth strategies, says it is exploring opportunities for investment in ‘Sea-to-Air’ logistics and cargo transportation centring on the Sultanate’s international airports in Sohar and Salalah. Sea-to-Air logistics are part of an ambitious portfolio of initiatives being pursued by the state-owned umbrella organisation in a bid to leverage the country’s already well-developed airport and aviation infrastructure to catalyse investments in, among other areas, air-freight, e-commerce and airport-related free zones.
But while Muscat International Airport is already being positioned as the hub of a far-reaching national aviation ecosystem, key roles are being envisaged for Sohar and Salalah airports as well. Details of Oman Aviation Group’s vision for Sohar and Salalah airports, in addition to Muscat International Airport, were shared during an ‘InvestinOman’ webinar held recently.

Omani gypsum exports surpassed 1 million metric tons (MT) per month for the first time last month, reinforcing the Sultanate’s dominant position as the world’s biggest exporter of the industrial mineral.

Exports from the Port of Salalah, the principal outlet for exports of locally mined gypsum, surged to 1.14 million MT in July. The corresponding figure for July 2019 was 885,000 MT, representing an increase of 28 per cent over the year.

“This is the first time in the history of Oman’s increasingly important mining sector that gypsum exports have soared above 1 million MT per month,” said Ramachandran, CEO – Zawawi Minerals LLC, a leading producer and exporter of Omani gypsum. “This milestone, coming despite the challenges posed by the pandemic, bodes well for an exponential increase in Omani gypsum production and exports in the face of rising global demand growth and declining supplies from traditional exporting countries.”

Fresh and frozen fish landings at numerous locations along the Sultanate’s lengthy coastline totaled 580,240 tons in 2019, up from 279,160 tons in 2016 – representing an increase of 107 percent over the intervening five years.

The dramatic growth in fisheries output is a reflection of the increasing importance of the sector to Oman’s economic development and GDP growth, as well as the result of ongoing investments in new and upgraded fishery harbors, modern coastal fishing fleets, cold chain logistics and infrastructure, state-of-the-art wholesale auction platforms, retail souks, and the growth of overseas markets for fresh Omani fish.

According to newly published figures issued by the National Centre for Statistics and Information (NCSI), fisheries production has increased year-on-year over the past five years. It soared to 553,445 tons in 2018, up from 347,541 tons a year earlier.

the newly integrated identity of Oman National Transport Company (Mwasalat) and National Ferries Company (NFC) – says it is gearing up to unveil its much-heralded Intelligent Transportation System (ITS), an initiative designed to enhance safety, efficiency and comfort levels across the Sultanate’s public transportation network.

The Intelligent Transportation System — an integrated platform comprising, among other features, a passenger information system, vehicle information system, app for passengers, e-ticketing services, and live tracking and monitoring of buses and coaches — is proposed to be launched in stages as part of Mwasalat’s plan for the “reactivation” of services following the current suspension that came into effect at the start of the pandemic in March.

Details about Mwasalat’s reactivation plan and the imminent rollout of the Intelligent Transportation System were shared by a senior company executive during a webinar organised recently by Muscat University College.

Local and international investors looking to set up operations at the Special Economic Zone (SEZ) in Duqm can now register their new businesses in under 15 minutes – as opposed to around five days until recently – under revamped and modernised procedures that have been introduced by the SEZ Authority (SEZAD).

The streamlined procedures, unveiled by the Authority recently, are aimed at positioning the SEZ as an investment destination and integrated hub anchored by a modern city that offers the highest living standards, according to Dr Ismail Ahmed al Balushi, CEO – SEZAD.

In an interview featured in Duqm Economist, he stated that the digitisation of registration procedures has contributed to a dramatic reduction in the time required to process and approve all manner of applications.

“The digital transformation plan being currently implemented by SEZAD has contributed to reducing the time required for completing investor applications,” said Dr Al Balushi. “In addition, investors can get their business licenses from SEZAD in just one day without the need to approach other entities once all required documents are submitted. This will ensure that projects can start their economic activities in a speedy and flexible manner.”

Economic assistance doled out by the Omani government to help fund the cost of providing subsidised services to the general population, as well as financial support to economically weaker sections of society, soared to RO 1.031 billion last year, up from RO 937.9 million a year earlier, according to figures released by the National Centre for Statistics and Information (NCSI).

The uptick, notwithstanding far-reaching efforts by the government to reduce spending in response to a steep slump in oil export revenues, contributed partly to an overall fiscal deficit totalling RO 2.622 billion in 2019, the Centre indicated in its newly published 2019 Statistical Report.

In fact, the subsidy burden on the government has been on the uptrend over the last four years, the report suggests. After reaching a high of RO 1.22 billion in 2015, it nearly halved to RO 660 million a year later following a landmark decision by the government to roll back longstanding subsidy on refined fuels. The total subsidy bill climbed to RO 700.3 million a year later in 2016.

Oman’s exports declined 7.7 per cent in value terms to RO 3.53 billion during the first three months of this year (January – March), down from RO3.82 billion for the same period of 2019, according to the National Centre for Statistics and Information (NCSI).

Oil and gas exports recorded a fall of 5.5 per cent to reach RO 2.34 billion this year, largely on account of a drop in oil prices. While RO 1.72 billion came from oil exports, liquefied natural gas (LNG) exports accounted for RO 415.1 million.

Non-oil exports also fell 27.6 per cent to reach RO 722.2 million until the end of March 2020, from RO997.4 million for the same period of 2019. Mineral products accounted for RO 68.8 million in export revenue while chemicals and base metals and articles contributed RO123.1 million and RO224.4 million, respectively.

In addition, the value of total re-exports rose 33 per cent to RO 463.4 million this year, against RO 348.5 million during the same period last year.

Abdullah bin Salim al Salmi, Executive President of the Capital Market Authority (CMA), said the issuance of licensing requirements for third party administrators (TPAs) will further strengthen the regulation of the health insurance sector in Oman.

TPAs play an important role in the ecosystem, by providing outsourced post-sales administrative services to insurance companies by facilitating cost-effective claims operations with high efficiency and quality while ensuring a seamless and pleasant consumer experience to the insured policyholders when seeking covered treatment from health service providers.

Decision 34 /2020 covering the licensing of TPAs will add to the readiness of the infrastructure of the insurance industry in the Omani market, improve quality of services related to health insurance and complete the legislative and regulatory framework of the health insurance scheme for the employees of the private sector, expatriates residing in Oman and the visitors.

Construction work on Oman’s biggest breeder poultry project – an investment that seeks to eliminate the country’s longstanding dependence on imported hatching eggs for its rapidly expanding poultry industry – is nearing completion at Haima in the desert heartland of the Sultanate.

Osool Poultry, a project conceived as part of a government-driven strategy to develop and strengthen the country’s food security, is dedicated to the production of hatching eggs – the source of baby chicks for poultry farms proliferating around the Sultanate.

Annual output at full capacity is envisioned at a world-scale 150 million fertilised eggs per annum – a target set to be achieved by 2040. At this capacity, Oman is set to be more than self-sufficient in meeting its domestic requirement of hatching eggs, and will also have surplus volumes to supply overseas regional markets.

Osool Poultry was first unveiled in 2015 with the backing of key stakeholders, including A’Namaa Poultry, a subsidiary of Oman Food Investment Holding Company, which is developing the Sultanate’s biggest white meat project at Ibri in Dhahirah Governorate. The list of promoters include A’saffa Foods, Sohar Poultry, Delmon Poultry as well as multilateral organisations Gulf Investment Corporation (GIC) and the Arab Authority for Agricultural Investment and Development (AAAID).

Oman Drydock Company (ODC), which owns and operates one of the region’s largest ship repair and maintenance yards at Duqm, is preparing to add an important capability to its expanding portfolio of services: shipbuilding.

The move marks an important step for the wholly government-owned company in achieving its longer-term objective of adding shipbuilding to its varied offerings. It also comes on the 10th anniversary of its launch in 2011 as a dry-docking maintenance and ship repair yard.

“Oman DryDock Company announces its readiness to fulfill new-build requests for small and medium vessels including fishing vessels and tugboats (up to 100 metres) for all private and governmental marine sectors,” said ODC – part of Asyad Group – in a tweet.

ODC Chief Executive Officer Said bin Hamoud al Maawali had told the Observer in an interview published last year that the yard plans to make the transition towards shipbuilding in gradual steps with the goal of becoming a full-fledged shipyard by 2023.

“Shipbuilding has always been part of our long-term plan. We will start on a modest scale with the construction of relatively simple ships, but after 2023, our plan is to target shipbuilding projects that are quite significant,” Al Maawali had stated.

The globally renowned British Standards Institution (BSI), which has played a key role in the drafting of national and international standards for industry products and services for over a century, has been roped in by Oman to help with the formulation of a National Building Code for the Sultanate.

Plans for the introduction of a set of modern, standardised building regulations for the Sultanate are in line with a broader effort to support the development of energy-efficient building construction. Energy efficiency and energy conservation are key priorities for the Omani government in light of the unsustainable cost associated with keeping buildings suitably air-conditioned particularly during the hot summer season.

The Supreme Committee for Planning is overseeing the formulation of a National Building Code – a set of regulations governing the design and construction of constructed objects, choice of materials used, and so on. Building codes are designed not only to safeguard the health and well-being of occupants and the general public, but also prescribe guidelines to be kept in mind by designers and contractors from the architectural, aesthetics, construction integrity, and energy efficiency standpoints.

Government funding support for Oman’s electricity sector is estimated at RO 605.2 million in 2020, representing a marginal increase over the actual subsidy of RO 601.9 million paid to the sector in 2019.

The modest uptick bucks a trend in sharply increasing subsidy allocations to the power sector witnessed in past years. In 2018, it rose a hefty 23 per cent to reach RO 536.29 million, up from RO 456 million 2017.

It comes as demand growth for electricity, which has long averaged annual double-digit growth over the past decade, is moving into negative territory possibly for the first time in the history of the sector – the result of an economic downturn aggravated by the pandemic.

Relief measures unveiled recently by Oman’s Tax Authority offer a measure of welcome respite to businesses hit hard by the pandemic, as well as the accompanying economic downturn.

They are the latest in a series of gestures announced by the Supreme Committee designed to offer much-needed succor to private sector firms, as well as various sections of the general population, weighed down by the punishing effects of the ongoing pandemic.

“The measures (…) come as a welcome move by the Tax Authority to provide relief to taxpayers who have not already filed their returns, and who are adversely impacted by the current COVID-19 pandemic,” said KPMG, professional services provider, in an advisory to clients.

The Sultanate has deposited its instrument of ratification of the Multilateral Convention (MLI), thereby formally affirming its commitment to a global effort to combat tax avoidance by multinational corporations.

The announcement was made by the Organisation for Economic Cooperation and Development (OECD), an intergovernmental economic organisation, currently with 37 member countries, founded in 1961 to stimulate economic progress and world trade.

The Organisation had spearheaded the drafting of the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (Multilateral Instrument or MLI), a landmark initiative by countries to reduce any effort by multinational enterprises to engage in tax avoidance. The Convention entered into force on July 1, 2018.

The Public Authority for Water (Diam) is weighing the potential to harness solar energy for water desalination in line with a strategy to embrace renewables, as well as innovation and energy efficiency in the delivery of its services.

The state-owned utility, which is responsible for potable water distribution across the Sultanate, says it is exploring desalination via solar evaporation to help sustain supplies to remote communities located beyond the reach of the country’s water distribution grids.

“Diam is working with a partner to develop a solar desalination plant, where the solar energy is harnessed directly to produce fresh water through evaporation. A number of sites are being assessed to enable the development of this innovative technology,” said the company in its 2019 Annual Report issued recently.

For the third consecutive year, Oman maintained its dominant position as the world’s biggest exporter of gypsum – shipping approximately 9.01 million tons of the commodity last year primarily to the ASEAN countries, Japan, India, Bangladesh, and South/East African countries.

The Sultanate outperformed Thailand – long the leading exporter of gypsum globally – which saw its tally slump to 6.40 million tons last year. Iran with exports of 5.31 million tons, was the next big player, while Pakistan, Bhutan, Australia, and Mexico accounted for around 0.99 million tons between themselves,.

But with demand soaring from Asia and South/East African countries for gypsum – a key raw material in cement production as well as gypsum plasterboard – the Sultanate is well-placed to capitalise on this demand growth by harnessing its prodigious deposits of this industrial mineral, according to a Muscat-based industry expert.

Salalah Free Zone has signed an agreement with an investor in the United Arab Emirates for the establishment of a Technology City with an investment of around $350 million. A Memorandum of Understanding (MoU) signed to this effect envisages a Technology City for innovation and fourth-generation (4G) technologies, said Ali bin Mohammed Tabouk, CEO of Salalah Free Zone. The City will feature a Data Park, technology academy and support facilities covering an area of 500,000 square metres.

It is the latest in a string of recent investments that have underscored the free zone’s robust investment appeal. “We signed so far seven investment agreements during the first half of this year, taking the total number of projects signed to date in Salalah Free Zone (SFZ) to 88, representing around RO 3.3 billion ($8.7 billion) in total investments, with the potential to create more than 8,000 direct jobs,” said Tabouk.

Shaikh Mohammed bin Said al Kalbani, Minister of Social Development, praised the Directives of His Majesty the Sultan regarding providing health care to all citizens and residents without discrimination during the outbreak of COVID-19, as health services were available in various health centers and hospitals for everyone in the Sultanate. Many medical examination centers were also opened in various governorates to receive COVID-19 cases with no exception.

The Social Development Minister made this statement during the Sultanate’s virtual participation in the emergency summit of the Council of Arab Social Affairs Ministers on Sunday.

“Since the beginning of the year, the Sultanate has followed the developments of the pandemic and dealt with it with caution. A Supreme Committee was formed to study the mechanism to deal with the developments resulting from the spread of this virus, in light of the emerging health data and indicators issued by the WHO.

Petroleum Development Oman (PDO) and Ithraa, the sultanate’s inward investment and export development agency, have signed a Memorandum of Cooperation (MoC) on Tuesday.

Capitalising on Ithraa’s investment and export expertise and leveraging PDO’s global energy network and pioneering work in renewables, the agreement is designed to enhance the competitiveness of Oman’s business ecosystem.

Speaking at the signing, PDO External Affairs and Value Creation director Abdul Amir al Ajmi, said, “PDO is delighted to sign this agreement with Ithraa to share knowledge and experiences as well as promote research and development.”

He added, “By combining Ithraa’s experience in attracting foreign investment to the sultanate as well as promoting local goods and services overseas with PDO’s energy expertise and impressive ICV track record, we’re creating a platform that can help meet the objectives of Vision 2040 in fostering home-grown climate and clean technology industries. Indeed, we look forward to putting today’s MoC into action.”

Commenting on the agreement, Azzan al Busaidi, CEO, Ithraa, said, “Oman’s green economy is evolving rapidly and really does have great growth potential. So, we’re delighted to be working alongside PDO, who will help us drive this exciting and fast moving sector. By working together, we’ll be able to identify opportunities to collaborate and create a stronger voice to encourage further foreign investment in delivering a more prosperous, equitable and greener future for Oman.”

With the winter tourist season wiped out due to the spread of COVID-19, the hospitality sector has incurred huge losses. Not only was there a massive drop (41.2%) in hotel guests in the first quarter of 2020, the three to four star hotels also saw their revenues fall by over RO40mn.

According to the National Centre for Statistics and Information’s main indicators for hotels with a rating of three to five stars, revenues from hotels in the sultanate by the end of April reached

His Majesty Sultan Haitham bin Tarik has issued Royal Orders to adopt an emergency interest-free loan programme to help businesses most affected by COVID-19 pandemic.

In a statement, the Government Communication Center (GCC) said, ‘In the context of the supreme interest in the repercussions of the COVID-19 pandemic on the economic situation in the sultanate, His Majesty Sultan Haitham bin

Al Madina Logistics Services Company, represented by Mazunah Dry Port and in coordination with Al Mazunah Free Zone which pertains to the Public Establishment for Industrial Estates (Madayn) and other related government bodies, has launched the operations related to container handling, refrigerated containers, and incoming and outgoing consignments which are re-exported through Mazunah Dry Port.

Inspection, clearance, handling and release operations will take place at the assigned inspection areas at the dry port, and all the consignments must pass through the port to complete these operations.

The company will welcome all the importers, exporters and traders at an assigned hall at the dry port according to the procedures followed in this context. It is worthwhile to mention that the service fees collected from importers, exporters and others will be through the use of an electronic payment system using bank cards approved by the Omani banks and the approved international credit cards.

With regard to customs clearance operations, the small and medium enterprises (SMEs) which are approved by the Directorate General of Customs and Al Mazunah Free Zone will provide services related to customs clearance in accordance with the procedures followed in this regard.

The Sultanate is moving towards abolishing the No-objection Certificate (NOC) which stipulated employer’s written consent for the transfer of workers under their sponsorship to another employer, with effect from January 2021. The move is aimed at addressing the situation of the labour market and boosting its competitiveness and attractiveness.

The decision stems from the economic and social principles stated by the Basic Statute of the State as the Sultanate joined the International Covenant on Economic, Social and Cultural Rights on April 7 this year as per the Royal Decree No 46/2020.

It is hoped that the decision will have several advantages for the employers including the adoption of labour contract principle which regulates the contractual relational between employers and workers in a manner that ensures the rights and duties of both parties. Besides, the labour contracts protects the rights of employers in terms of protecting the confidentiality of their information and the information of the parties dealing with them.

While healthcare providers and scientists around the world are trying to find treatment for COVID-19, the use hydroxychloroquine as a treatment of COVID-19 in ‘some’ patients has come under intense scrutiny. However, experts in Oman say they have not seen any serious complications associated with its use.

“Around 326 patients with COVID-19 in Oman were administered hydroxychloroquine and we have not seen any serious complications in their condition,” Dr Feryal bint Ali al Lawati, senior consultant of the Communicable Disease Control Unit at The Royal Hospital, said.

She affirmed that no deaths associated directly with the intake of this medicine have been recorded. In Oman, a different dose is taken compared to doses revealed by the studies that warn about this drug,” she said.

Recently, the World Health Organization (WHO) resumed its trial of hydroxychloroquine after temporarily halting research over safety concerns.

Petroleum Development Oman (PDO ) has started commercial operation of the world’s first utility scale solar project to have an oil and gas company as the sole buyer of electricity.

The landmark 100MWt Amin Photovoltaic Power Plant has now achieved a key milestone with the start of its commercial operations, having been successfully commissioned three months ahead of schedule and passing the acceptance test procedures, the company stated.

The Independent Power Producer (IPP) renewable energy project, located near Nimr, which lies approximately 300km north east of Salalah, has been providing power to PDO`s Interior operations.

The US$94mn facility covers an area of 4sqm and produces up to 100MW of electricity directly from sunlight, through solar panels. The generated energy is sufficient to power 15,000 homes, and could result in an annual CO2 emission reduction of more than 225,000 tonnes – the equivalent to taking 23,000 cars off the road.

Benchmark Oman crude oil trading on the Dubai Mercantile Exchange traded above US$40 per barrel on Monday, for the first time in almost three months, making it the first internationally traded crude oil futures contract to break the US$40/b mark since the oil price recovery started in early May.

Front-month August DME Oman traded at a high of US$40.09/b, up US$0.30/b from Friday’s settlement price of US$39.79/b. Oman last traded above US$40/b on March 6.

The Sultanate’s capital market witnessed a significant uptick in listed debt instruments in 2019, underscoring the increasingly expanding role of debt in facilitating economic growth in the country, in parallel with the equity side of the capital market.

New issuances ranged from corporate bonds and corporate sukuk to government bonds and sovereign sukuk.

According to the newly published 2019 Annual Report of the Capital Market Authority (CMA), there were as many as four corporate bond issuances (Sohar International Bank Perpetual Bonds, Al Omaniya Financial Services Bonus Stock Bonds, Ahli Bank Perpetual Bonds, and DIDIH Unsecured Subordinated Non-Convertible Bonds) in 2019 totalling RO 146.5 million in value. The sole sukuk issuance (Meethaq Sukuk Series 2) raised RO 45.6 million.

Despite the decision to allow commercial activities in the country, there will be restrictions in Muscat city, which is still under lockdown.

Muscat Municipality issued a clarification, which said the activities allowed to reopen will not include shops located in the commercial centres (malls), Muttrah, and the industrial area of Wadi Kabir.

Barber and tailoring shops will remain closed while laundries can operate only if they have contracts with government and commercial agencies. Also, only automatic washing and steam-ironing only will be allowed.

Marble, granite, and ceramic shops are allowed to reopen provided they follow rules of social distancing.

Women’s garments, including those selling abayas, beauty kits, perfumes, and watches have been allowed to open and use online services and home deliveries.

In a bid to tighten budget control measures and limit excess spend in ministries and government units, the Ministry of Finance (MoF) issued another circular on Wednesday. The order mandates an additional reduction of five per cent in the approved budget for all civilian, military and security units for the year 2020, taking the total cuts to 10 per cent.

Since the beginning of 2020, the MoF has issued 16 financial circulars and a set of directives to the government units to cut down on spending from their respective shares of the 2020 state budget.
The ministry had issued a circular to implement a five per cent reduction in allocations approved for civil, military and security departments on March 19. The latest circular adds an additional five per cent budget cut on top of the earlier one announced.

Oman Logistics Center (OLC) is leading the digital transformation of the logistics sector in the sultanate through implementing innovative and smart solutions while adopting best international practice.

OLC’s success in 2019 has continued into 2020 with expanded services and additional support made available through an online web portal and mobile app.

Only last month, OLC formally announced The MEA Hub www.themeahub.com which provides a full spectrum of logistics innovative services as well as technical support and expertise in the logistics sector.

Tech Try facilitates the piloting and adoption of emerging logistics technologies. This programme was recently responsible for the testing of underwater and aerial drones at the Port of Sultan Qaboos (PSQ) and the Port of Sohar. Tech Try recently conducted trials of drone delivery for cargo in Muscat and Nizwa, and tested drones in warehouse operations.

Tech Scan analyses feedback from logistics providers and service users generating comprehensive industry insights. This scanning element also identifies global emerging trends and technology developments ripe for adoption.

Renaissance Services SAOG has hosted its quarterly meeting with investors and analysts to discuss the company’s first quarter performance.

Responding to questions following the publication of results, group CFO Vishal Goenka acknowledged the company’s positive performance in Q1, but confirmed the Covid lockdown will impact Q2 and profitability will be lower. “We have a strong balance sheet and liquidity position to meet all our financial obligations throughout this crisis. The current crisis also stress tested our systems and processes which are again proving robust during these trying times.”

Commenting on the company’s ‘In Service of the Nation’ programme, providing meals free-of-cost to quarantine, support and outbreak centres throughout the country, the CFO advised “We have provided well over 100,000 free meals and continuing. It is important we play our part to support the government and the Nation. The lockdown is crucial to saving lives. As soon as we get through this period, we can all turn our attention to re-starting the full economy and preserving jobs and livelihoods.”

The Omani government has ratified Swedish energy firm Tethys Oil’s farm-in into Block 56, an onshore concession located in the southeastern part of the Sultanate.

The Stockholm-headquartered upstream Oil & Gas company, which has a number of operated and non-operated assets in Oman’s upstream sector, said Omani authorities have endorsed its acquisition of a 20 per cent interest in the Block.

Last October, Tethys Oil, through its wholly owned subsidiary Tethys Oil Oman Onshore Limited, announced that it had entered into an agreement with Biyaq Oil Field Services, an investor in the license, to acquire a 20 per cent interest in the Exploration and Production license covering Block 56.

Following the successful completion of the transaction, Tethys Oil now holds a 20 per cent interest in Block 56 with Biyaq holding 5 per cent. Other investors are Intaj LLC with 25 per cent and Medco Arabia Ltd, the operator with the remaining 50 per cent.

The Ministry of Education is urging public and private schools, pre-school education, bilingual schools, monolingual schools and international schools with the exception of community schools to abide by the decision issued by the Supreme Committee vs Covid-19 on Tuesday, May 5, 2020.

The Supreme Committee decision specified May 7 as the last date of the school year for the aforementioned educational institutions.

A statement from the Ministry of Education said that it has been noticed that some private schools have addressed parents regarding the continuation of online classes in a violation of the Supreme Committee’s resolution.

The Ministry of Education stresses the importance of following this decision especially for all private schools.

The statement said that private schools may provide remote enrichment programmes provided that they obtain an approval from the ministry confirming that these programmes must be optional and not mandatory.

Khazaen Economic City, the newest economic city in the sultanate, which is being developed on an area of 51mn sqm in the Wilayat of Barka, has announced a set of promotional incentives for local and foreign investors. This offer comes parallel to the progress achieved to deliver the first infrastructure package which is planned to be completed before the end of this year.

The incentives package includes exemption from annual lease for the first year, 50 per cent waiver on annual lease for the second and third years, 50 per cent discount on service charges for a period of two years, and an exemption from registration and the land Krookie fees. Investors and companies interested in investing in Khazaen have the opportunity to avail these benefits until the end of 2020.

"We are proud of the continuous progress being made in implementing the infrastructure works for the city. The advancements made reflect our commitment to build a modern and integrated economic city that meets the needs of various investors. It also reflects our efforts towards supporting economic diversification initiatives in the sultanate,” said Khalid al Balushi, CEO, Khazaen Economic City.

Bank Muscat has received a bid from Bahrain-based SICO BSC bank to acquire a majority shareholding in its wholly-owned subsidiary Muscat Capital for OR8.2mn.

In a statement, Bank Muscat notified Muscat Securities Market that it received in-principle interest from SICO BSC, a Bahrain based regional asset manager and investment bank licensed as a conventional wholesale bank by Central Bank of Bahrain, to acquire a majority shareholding in Muscat Capital LLC with a book value of approximately SAR 80mn (OR8.2mn).

Muscat Capital is a Saudi Single Shareholder Closed Joint Stock Company, licensed by the Saudi Capital Market Authority and wholly-owned subsidiary of Bank Muscat.

‘As consideration for the proposed transaction, Bank Muscat would be offered SICO’s shares held currently as treasury shares,’ Bank Muscat stated.

The Board of Directors of Bank Muscat at its meeting held on April 28, discussed the proposed transaction and agreed to explore the opportunity, subject to completion of satisfactory due diligence and obtaining the requisite internal and external approval.

Following the establishment of the direct shipping lines from India and other important ports in the Gulf region, the sultanate’s flagship goods carrier Oman Shipping Company (OSC) has transported over 22,000 containers to Oman and neighbouring countries.

On its official twitter handle OSC said, ‘Since it began operating direct lines from the ports of India, more than 15,000 containers shipped for the sultanate and more than 7,000 containers to the Gulf ports during the past month.’

The management team at Sohar Port and Freezone affirms the continuation of its business operations, despite the current health crisis surrounding the outbreak of the Novel Coronavirus (COVID-19). Sohar Port team has increased efforts to ensure an uninterrupted flow of operations and a continued supply to the local market.

Sohar Port has activated its business continuity plan, while also adhering to the health and safety directives mandated by the Supreme Committee, throughout all its Port and Freezone facilities, according to a press statement.

Highlighting the importance of the plan, Batti bin Mohamed al Shibli, Harbour Master at Sohar Port said, “We are truly facing a difficult time during the current situation, but have been able to overcome certain challenges by having a plan in place to enhance the activities of the Marine Department. This strategy supports the efficient and effective handling of shipping goods and operations, allowing for a smooth flow of logistic operations while continuing to supply the markets with its required needs.”

Sohar Port announced that it has received a giant ship Pacific Mariner carrying 400,000 tonnes of iron ore for Sohar-based Vale.

In a tweet posted on its official twitter handle Sohar Port and Freezone said, ‘Sohar Port receives the Pacific Mariner vessel, which is set to discharge 400,000 tonnes of iron ore at the Vale pier.’

Pacific Mariner, which operates under Hong Kong flag is counted among one of the largest ore carriers globally, having around 360m in length and 60m of width.

‘Vale imports millions of tonnes of crude annually to pellet it and re-export it, taking advantage of the pioneering infrastructure at Sohar Port,’ the tweet said.

Vale started its operations in the sultanate in 2007 through a joint-venture with Oman Oil.

As result of the direct impact of COVID-19 pandemic on families of social security and SMEs, Nama Group has established a fund with an initial contribution of RO300,000 to cover electricity bill payments for those affected categories.

The initiative is a result of the Group’s cooperation with the Ministry of Social Development, relevant NGOs, Riyada and Al Rafd Fund to facilitate the process; which will be finalised next month.

Commenting on the initiative, Eng. Omar bin Khalfan Al Wahaibi, CEO of Nama Group, said, “In spite of the imminent financial difficulties created by the pandemic and drop in oil prices, which will affect the government`s ability to provide the subsidy outlined by the Law for the Regulation and Privatisation of the Electricity and Related Water Sector, we still believe that it is our national duty to support these categories and help them overcome this by establishing a fund that everyone can participate in.”

As part of the Group’s vision to participate actively in developing and growing the national economy and society, ‘For Lasting Prosperity’ campaign was launched to support the Government’s initiatives to mitigate the social and economic impacts of COVID-19.

The listed companies and investment funds in Oman will be able to hold their general meetings online during the COVID-19 pandemic under new rules issued by the Capital Market Authority (CMA).

The CMA on Thursday issued new rules on convening general meetings of the public joint stock companies and investment funds through electronic means. The new rules set the stage to launch a system to convene and hold general meetings online. A new CMA circular explained the procedures to be followed in organising such online general meetings.

According to a press statement issued by the CMA, this is the first time in the region where the general meeting agenda will be submitted to and approved by the CMA electronically, and the agenda and notice can be viewed by shareholders online and shareholders can remotely vote on the meeting resolution.

Muscat Clearing and Depository Company (MCDC) has, in collaboration with Omantel and Blockchain Solutions and Services (BSS), developed a secure local electronic platform to facilitate the process of convening and administering general meetings of the companies and investment funds.

Port of Duqm announced that it has achieved another milestone by handling a very heavy cargo discharge for the multi billion-dollar Duqm Refinery project at the adjoining Special Economic Zone in Duqm (SEZD).

In a statement posted on its website, the port said, “Port of Duqm is proud to facilitate the construction of this key anchor project for the Duqm development and continuously prove its readiness and capabilities to all relevant stakeholders by successfully managing the discharge operations for such landmark projects.”

SAL Heavy Lift vessel M.V.AnneSofie carrying over-dimensional shipments for the flagship Duqm Refinery project was received at the Port of Duqm.

Revealing more about the shipment, the statement said, ‘The highlight of the shipment is the discharge of one single heavy lift piece weighing almost 800 metric tonnes and measuring 73m in length, a width of 12.6m and a height of 13m.’

Mammoet, a global market leader in heavy lift transportation, will take care of the safe pickup and delivery to Duqm Refinery, Port of Duqm said.

Port of Duqm announced that it has achieved another milestone by handling a very heavy cargo discharge for the multi billion-dollar Duqm Refinery project at the adjoining Special Economic Zone in Duqm (SEZD).

In a statement posted on its website, the port said, “Port of Duqm is proud to facilitate the construction of this key anchor project for the Duqm development and continuously prove its readiness and capabilities to all relevant stakeholders by successfully managing the discharge operations for such landmark projects.”

SAL Heavy Lift vessel M.V.AnneSofie carrying over-dimensional shipments for the flagship Duqm Refinery project was received at the Port of Duqm.

Revealing more about the shipment, the statement said, ‘The highlight of the shipment is the discharge of one single heavy lift piece weighing almost 800 metric tonnes and measuring 73m in length, a width of 12.6m and a height of 13m.’

A day after HSBC Bank Oman revealed its exposure to Abu Dhabi-based troubled NMC Healthcare, Sohar International Bank and Taageer Finance Company also on Monday disclosed RO3.45mn and RO1.23mn exposures, respectively, to the Middle East’s largest hospital operator.

“This is to inform the market that Sohar International has direct exposure to NMC Healthcare with an outstanding amount of RO3.45mn in the form of syndicated facility, sanctioned on May 10, 2018,” Ahmed al Musalmi, CEO of Sohar International, said in a disclosure to the Muscat Securities Market (MSM).

During 2019, Sohar International had rejected multiple requests from NMC Healthcare for additional credit facilities worth RO43mn, including rejecting to roll-over the maturing loan, which was instead paid in December 2019, Musalmi said. “The prudent and diligent measures taken by the bank not only significantly reduced the exposure, but also avoided a substantial increase of exposure to this company.”

Musalmi said that Sohar International is considering all options and measures available to it, including enforcement of legal rights, to ensure realisation of the outstanding amount of RO3.45mn, which is 0.1 per cent of the bank’s total assets.

Oman Power and Water Procurement Co’s (OPWP) CEO YaqoobSaif al Kiyumi has said that the gas-fired power plants whose contracts will expire by the end of 2021 are still competing to produce the specified capacities.

In a statement on Oman News Agency, Kiyumi said so far it has not been decided which power generation plants will be decommissioned during the first phase of 2021.

He said that determining the final required capacity will be closely associated with the growth or decline in power demand, adding that the capacities and bids are likely to be finalised during the second half of this year.

Speaking about the proposed new renewable energy projects, Kiyumi said the tenders for Manah solar power project and waste-to-energy project have not been floated yet. While Manah solar power project is under the stage of qualification of developers, the waste-to-energy project is still under feasibility study phase in the backdrop of a slump in electricity demand due to economic slowdown.

The Muscat Securities Market (MSM) has announced the extension of trading time on the bourse by one hour from Sunday April 12.

Earlier on March 29, the MSM had temporarily reduced the trading time to two hours from four hours to comply with the directives of the government agencies to control the spread of COVID-19 in the country.

In a tweet posted by its official twitter handle, the MSM said that following the directive by the government agencies it has now decided to extend the trading.

The Ministry of Manpower (MoM), in a decision made Sunday, has allowed some companies to hire expatriate workers provided that they meet a set of criteria outlined for the sector.

Sheikh Abdullah bin Nasser al Bakri, Minister of Manpower, issued decision 127/2020 regulating the recruitment of expatriate workers for the construction sector and brick factories. The exception is made to small and medium enterprises (SMEs) who are full-time employers and are registered with the Public Authority for Small and Medium Enterprises Development and insured with the Public Authority for Social Insurance.

The Ministry also clarified that excluded from this decision are the establishments managing government projects, Excellent grade companies and firms that employ 100 or more workers.

Omani steel maker Jindal Shadeed Iron & Steel (JSIS) has announced that fiscal 2019-2020 was a banner year for its integrated steel complex located within Sohar Port, with the company notching several production records notwithstanding the constrained regional economic environment.

The Sohar complex is a key source of hot briquetted iron (HBI), steel billets and rebars for the infrastructure, construction and hydrocarbon industries in Oman and the wider region.

“We are happy to report that 2019-20 was a record-breaking year when it came to our production units,” said Jindal Shadeed in a series of tweets over the weekend. “All three of our production units performed at their highest ever annual capacities — better than their nameplate production capacities for the month of March 2020,” it noted. The company’s financial year runs from April 1 to March 31.

The Ministry of Commerce and Industry has successfully produced medical equipment using 3-D printing technology as part of the national efforts to combat Covid-19 coronavirus outbreak.

The project is carried out by the ministry of commerce and industry in cooperation with the Public Establishment for Industrial Estates (Madayn), Oman Technology Fund (OTF) and a number of small and mid-sized enterprises specializing in 3-D printing technology.

Additionally, the ministry of commerce and industry has coordinated with a plastic production factory to provide plastic materials to produce protective gear as per the standards stipulated by the ministry of health and the Directorate General for Standards and Metrology (DGSM).

The ministry of commerce and industry welcomes all initiatives that would serve the health sector in particular and other sectors in general under the current situation. ONA

Continuing its investment-driven growth model, Al Hosn Investment Company (HIC) has announced that it would target key sectors like oil & gas, tourism and health care during the course of this year.
As a closed joint stock company, HIC’s focus has always been on vital economic sectors, and the investment agenda for 2020 follows suit. In tune with its larger objective of covering healthcare, education, food security, real estate, industrial, manufacturing, and technology.
However, HIC is not limited or restricted in its operational network by the specified sectors, as its basic premise is to manage investments on a case-to-case basis. Pointing out that the main focus is on private equity and venture capital investments, HIC CEO Osama Mariam said, “For 2020, our intent is to place stake in economically viable ventures that will boost the diversification of the local economy. We have identified key sectors like oil and gas, healthcare, and tourism. We believe the market is conducive for sustainable enterprises in these sectors.

In a major shot in the arm for Oman’s nascent ambitions to foster the growth of a ‘green hydrogen’ economy in the Sultanate, a Belgium firm and its local partners have unveiled plans to set up a large-scale ‘green hydrogen’ project in the Special Economic Zone (SEZ) in Duqm.
The main promoter is DEME Group, a Belgian headquartered conglomerate with international interests in dredging and reclamation, marine engineering, environmental remediation and of late, in renewable energy development.
DEME Concessions, a subsidiary of the Group, announced on Tuesday an “exclusive partnership” with Omani investors to support the development of a “world-leading” green hydrogen plant in Duqm. With a proposed electrolyser capacity estimated between 250 and 500 megawatts (MW), the project will rank among the largest of its kind in the Middle East.

An estimated five million people will be covered by the Mandatory Health Insurance System (Dhamani) when it is fully rolled out across the Sultanate over the next couple of years, top officials of the Capital Market Authority (CMA) announced here on Tuesday. Of this number, roughly two million will be private sector employees — Omanis and expatriates – and their respective families, while the balance will comprise tourists and visitors whose numbers have been soaring in recent years.

His Majesty Sultan Haitham bin Tarik on Sunday issued 10 Royal Decrees.
Royal Decree No 4/2020 on the promulgation of the Internal Security Service Law.
Article (1) stipulates that the provisions of the law attached to this Decree shall apply to Internal Security Service. Article (2) states that the Head of the Internal Security Service shall issue regulations/bylaws and decisions necessary for the implementation of the Law attached to this Decree. Till then, the existing regulations, bylaws and decisions shall continue to be enforced without prejudice to its provisions.
Article (3) cancels the system of service for the Internal Security Service employees issued under Royal Decree No 9/98. It also cancels all that contradicts this Decree or attached law or contravenes their provisions.
Article (4) says that this Decree shall be published in the Official Gazette and enforced from the day following its date of publishing.
Royal Decree No 5/2020 introduces some amendments to the Civil Defence Law promulgated by Royal Decree No 76/91.

The Oman Chamber of Commerce and Industry (OCCI) exhorted banks and financial institutions in the Sultanate to show greater flexibility and consideration to the plight of private businesses, as well as small and medium enterprises (SMEs), weighed down by outstanding loans, liquidity challenges and steep funding costs.
The considerable woes of the private sector were laid bare at an ‘Economic Evening’ hosted by the OCCI at Majan University College on Wednesday. It was held under the auspices of Shaikh Abdullah bin Salim al Salmi, Executive President of the Capital Market Authority (CMA), while the panellists comprised Taher bin Salim al Amri, Executive President of the Central Bank of Oman (CBO); Ahmed bin Ali al Maamari, Vice President for Insurance, CMA; Murtadha bin Mohammed al Jamalani, Chairman of OCCI’ s Financial & Insurance Committee; Ali Hassan Moosa, CEO — Oman Banks Association; and Shaikh Salim al Siyabi, Chairman —Al Siyabi Group. The deliberations were moderated by Dr Ahmed Said al Kashoob, Chairman — Omani Securities Association.
Setting the tone for the evening’s discussion, which focused on the theme, ‘The Omani Banking Sector’s Role in Economic Stimulus’, Badr bin Saif al Aufi, Economic Adviser at the OCCI, urged local banks to come to the aid of private companies and SMEs that are saddled with non-performing loans and other challenges amid the ongoing economic downturn.

Italian energy giant Eni has started drilling the first deepwater well as part of its exploration programme in Block 52, a sprawling concession that extends off Oman’s southern and south-eastern seaboard. Speaking to mediapersons on the sidelines of an event organised to announce Oman Petroleum & Energy Show, Eni Oman’s managing director Salvatore Giammetti said, “We started drilling well on February 10.

The depth of water, where drilling is taking place, is around 880m. It is for the first time in the country that a well is being drilled at such a depth.” Giammetti said that the 2010- built drillship Pacific Bora was awarded the well contract from Eni in Oman.

Eni’s local Omani subsidiary Eni Oman BV is the operator of Block 52, which covers a massive 90,790sq km concession area. Eni has 55 per cent stake in the block, while Qatar Petroleum holds a 30 per cent interest and Oman Oil Company Exploration & Production (OOCEP) owns the remaining 15 per cent.

The Spanish infrastructure, energy and telecommunications group, Elecnor announced that it has been awarded a contract to carry out one of the largest efficient water transmission and supply projects in Oman.

The contract, valued at €192mn (approximately US$212mn), was awarded by the Public Authority for Water (Diam) in a hard-fought international call for tender, Elecnor said in a statement on its website. It said that Elecnor was awarded the contract in a joint venture agreement with Omani company, Target.

The new infrastructure will double the water transportation capacity from desalination plants located in Barka and Sohar to the drinking water network, bolstering the supply in the Batinah region, one of the sultanate’s most populous areas.

Port of Duqm is facilitating Duqm Refinery’s cargo for the discharge of nine massive LPG storage tanks (bullets), under the agency of Khimji Ramdas Shipping, according to a press statement. These nine bullets will be loaded on a barge and transported in three different shipments to Port of Duqm. They are fabricated and loaded at Larsen & Toubro LLC (Oman) facility in Sohar and towed on barge to Port of Duqm.

Saudi Arabia’s Rezayat Logistics Group announced that it has signed an agreement with Port of Duqm for investing around US$15mn in setting up a base near the port, which will be used to serve ongoing projects in the area.

In a press statement, the Saudi-based firm explained that it has identified Duqm as an area of interest in 2018. And now, they have decdiced to lease four hectares of land inside Port of Duqm’s logistic hub.

The initial investment of US$15mn will be primarily used in providing services such as temperature-controlled, chilled, frozen and general warehousing, heavy transportation, equipment rental, crane rental, and general transport which will expand its extensive GCC network and fleet.

The Qatari promoters of a distinctive tourism and heritage project planned at Al Seeb in Muscat Governorate have invited contractors to submit their credentials ahead of the start of a competitive tender for the iconic development.
Doha-based Bin Al Sheikh Holding Group, a well-diversified Qatari business conglomerate, was selected by Oman’s Ministry of Tourism to invest in a signature mixed use development integrating traditional Omani heritage elements with upscale tourist and leisure components on a beachfront stretch overlooking the Sea of Oman.

The Public Establishment for Industrial Estates (Madayn), represented by Suhar Industrial City, organised on Wednesday an investment meet with business owners and industrialists in Suhar.
The meeting, which was held at Majan Hall in the Wilayat of Suhar, aimed at highlighting current and future projects in Suhar Industrial City, Madayn Industrial Academy and Masar Investment Window. The meeting also highlighted the events of the upcoming Oman Industry Week 2020.

Oman Oil and Orpic Group, which has been rebranded to OQ last week, will undertake a readiness programme for next 12-18 months before considering the privatisation or stake sale options to raise money for future projects, according to a senior OQ official.

Speaking to reporters at a press conference to announce the new brand identity of the group, Nazar al Lawati, chief financial officer of OQ and a member of the integration leadership team, said that the shareholders earlier this year gave the directive that the group should be looking at some sort of privatisation or stake sell in the future. “We have carried out an exercise to study a number of options available to us to maximise the value for shareholders as well as other stakeholders,” he said.

One of the first steps before going for privatisation or raising money through stake sale is to go through a readiness programme, Lawati said. “The readiness programme will evaluate lots of aspects of the group post integration such as whether the right corporate governance practice is in place or not and also to look at whether right policies are in place or not.” “To do this, we have decided in agreement with our board that we are going to spend next 12-to-18 months focussing on the readiness programme. So, any privatisation transaction is going to happen only after 12 months period,” Lawati said.

Occidental Oman signed two new multi-year contracts with Gulf Triangle Industries & Services and Muscat National Petrochemicals & Supplies, as part of its in-country value (ICV) strategy to support locally manufactured materials and maximise expenditure on goods and services made in Oman.

Both companies will supply Occidental Oman with dolomitic lime for Occidental Oman’s Mukhaizna field operations, according to a press release.

The signing ceremony was held at Occidental Oman’s headquarters in Muscat.

The agreement was signed by Stephen Kelly, president and general manager of Occidental Oman; Younis al Amri, chief executive officer of Gulf Triangle Industries & Services; and Abdul Hamid al Shanfari, CEO of Muscat National Petrochemicals & Supplies. Abdulkarim al Ghassani, vice president for supply chain, and other senior executives of Occidental Oman were also present at the event.

“The contracts reaffirm our wide-ranging commitment to enhance the collaborative efforts of the oil and gas industry to efficiently develop a competitive Omani supply chain. We believe that this will increase investment in the country and support diversification of its economy. We look forward to new collaborative opportunities with local manufacturers,” said Kelly.

“We highly appreciate the trust that Occidental Oman has placed on us by awarding this contract, and look forward to grow our operations to produce dolomitic lime, and to provide products of the highest standards,” said Amri.

Occidental Oman signed two new multi-year contracts with Gulf Triangle Industries & Services and Muscat National Petrochemicals & Supplies, as part of its in-country value (ICV) strategy to support locally manufactured materials and maximise expenditure on goods and services made in Oman.

Both companies will supply Occidental Oman with dolomitic lime for Occidental Oman’s Mukhaizna field operations, according to a press release.

The signing ceremony was held at Occidental Oman’s headquarters in Muscat.

The agreement was signed by Stephen Kelly, president and general manager of Occidental Oman; Younis al Amri, chief executive officer of Gulf Triangle Industries & Services; and Abdul Hamid al Shanfari, CEO of Muscat National Petrochemicals & Supplies. Abdulkarim al Ghassani, vice president for supply chain, and other senior executives of Occidental Oman were also present at the event.

“The contracts reaffirm our wide-ranging commitment to enhance the collaborative efforts of the oil and gas industry to efficiently develop a competitive Omani supply chain. We believe that this will increase investment in the country and support diversification of its economy. We look forward to new collaborative opportunities with local manufacturers,” said Kelly.

The Ministry of Technology and Communications (MTC) has signed a memorandum of understanding (MoU) with Wipro Limited, a leading global IT, consulting and business process services company, to launch a Center of Excellence (CoE) for open source technologies in Oman.

The MoU was signed by Dr Salim bin Sultan Alruzaiqi, chief executive officer of MTC and SanjeevTayal, vice president and business head, Middle East at Wipro Limited.

As per the agreement, MTC and Wipro will collaborate to build, deploy and sustain the CoE as well as accelerate adoption of open source technologies in the public and private sectors of Oman and the GCC region, according to a press statement.

The CoE will focus on building a talent base of information and communication technologies (ICT) graduates specialising in open source capabilities through comprehensive training and skill development programmes.

The global oil prices are likely to remain under pressure in 2020 as the prevailing oversupply in the international market may continue next year, according to a senior official of the Ministry of Oil and Gas.

Speaking at the inauguration of 9th edition of the Middle East Artificial Lift Forum (MEALF), H E Salim bin Nasser al Aufi, Undersecretary of the Ministry of Oil and Gas, said, “Unfortunately or fortunately, which way you look at, there is going to be an oversupply in the global market in 2020.”

He added that the higher supplies might impact oil prices in the backdrop of no significant improvement in demand. “The message which we are getting, from recently concluded OPEC+ meeting in Vienna to discuss supply and demand scenario for the next year, is clear that we will have probably another year of oversupply. Oversupply potentially translates into lower oil prices or, at best, prices may stay at this level for probably another one or two years,” H E Aufi said.

According to H E Aufi, the oversupply will be mainly due to higher production by non-OPEC producers. Though, OPEC and other countries not complying with potential production cuts are also going to contribute to the oversupply.

Occupational Standards Centre (OSC) under the Ministry of Manpower on Sunday issued a license to Oman Society for Petroleum Services (OPAL) for establishing a first-of-its-kind sector skills unit (SSU) for the oil and gas sector in Oman.

The license was issued at a ceremony held at Ministry of Manpower premises, OSC said in a press statement.

The ceremony was attended by representatives from the Ministry of Manpower, Ministry of Oil and Gas, Tanfeedh committee members, industry experts from leading oil and gas companies and officials from the OSC and OPAL.

“This license is the first-of-its-kind in the sultanate, and aims to prepare the entities establishing stage, representative of the various economic sectors, to assume responsibility for monitoring the structure and needs of the labour market in each sector, and translating them into knowledge products that align education and training outcomes with these needs,” the statement said.

The Public Authority for Water (Diam) is exploring the potential to deploy ‘Water from Air’ technology as a new source of drinking water supply to remote communities in the Sultanate.
The move, according to a high-level official, is one of two novel initiatives which will be trialled by the Authority in a bid to support sustainable potable water supplies to far-flung areas based on clean energy and low-cost technologies.
‘Water from Air’ systems — also known as Atmospheric Water Generators — produce pure water from air in low quantities, said Abdullah al Naimi (pictured), General Manager (Operations) at Diam. “This technology is aimed for remote locations with low water demand and non-availability of power supply,” he stated in a presentation to delegates at the ‘Water for Agriculture’ forum organised by MEDRC on Tuesday.

Contrary to the notion that plug-in type Electric Vehicles (EV) can only be charged at dedicated public charging stations – long seen as one of the barriers to speedy EV adoption – owners in the Sultanate can now safely and conveniently charge their environmental-friendly ‘green’ vehicles at home, according to Oman’s power sector regulator.
“Most of the charging can be done at home,” stressed Qais bin Saud al Zakwani, Executive Director – Authority for Electricity Regulation (AER), clarifying the mistaken “public perception” that public charging infrastructure needs to be in place for the adoption of Electric Vehicles in the Sultanate.
“What we have noticed through our study is that most charging can be done at home before the (motorist) sets out. There are also different types of facilities emerging with regard to charging, particularly developments in DC (Direct Current) fast charging, which could reduce wait times; so we are looking at some extremely fast charging mechanisms that have been adopted (elsewhere around the world),” he remarked.
Home-charging partly addresses one of the biggest barriers to EV adoption: ‘range anxiety’

Oman’s fledgling, yet eminently ground-breaking, bid to convert the prodigious quantities of plastic waste being generated annually around the country into commercially valuable fuel has potentially game-changing benefits for the Sultanate — economically and environmentally.
According to a key researcher engaged in this landmark endeavour, success in the eventual commercialisation of this technological process will not only provide an effective and sustainable solution to the scourge of plastic waste imperilling the natural environmental, but crucially, it will also open up new commercial opportunities and revenue streams for the Omani economy.
Equally, the technology has the potential to support the growth of a circular economy around plastics, while positioning the Sultanate as a pioneer in plastic waste management globally, says Prof Dr Najah al Mhanna, Head of the Engineering Department at German University of Technology in Oman (GUtech).
“Leading petrochemical and plastic manufacturing is the goal of many oil producing countries. Therefore, finding a circular solution for the plastic waste will enable Oman to set an example in waste management as a key factor in mitigating the adverse effects of landfilling and the emission from incineration,” said the researcher.

Ithraa, Oman’s investment promotion and export development agency, unveiled the Invest in Oman portal on Monday at a ceremony held at the Implementation Support & Follow-up Unit (ISFU) in Muscat.
The first and only investment platform dedicated to driving and facilitating foreign investment into the Sultanate, Invest in Oman has been designed specifically to enable local companies and entrepreneurs showcase their projects and connect them with investors worldwide. For potential international investors, the portal provides a wealth of information and guidance including details on the Sultanate’s pro-business environment, industry trends, workforce, intellectual capital, incentives, tax and available land. Importantly, it also provides guidance on the steps involved in investing in and setting up operations in Oman.

Crypto-currencies, which reportedly have generated fabulous returns — and losses as well — for investors elsewhere around the world, do not currently pose any risk to the Sultanate’s financial sector, according to the Central Bank of Oman (CBO).
The apex bank stated in its 2019 Financial Stability Report, issued here recently, that its strong advocacy of modern technology and trends in the development of Oman’s banking and financial services industry, does not signal an automatic endorsement of inadequately regulated crypto-currencies and other such financial technology (fintech) based products.
It explained: “The CBO supports the use of cutting-edge technology by the banking sector to make provision of financial services more efficient, user friendly, and cost effective. While it facilitates the use of advancements in technology by issuing the necessary frameworks, approvals, and regulations, CBO does not endorse crypto-currencies or other fintech-based assets that have weak governance or are speculative in nature. Due to this cautious approach, crypto-currencies lack the volume to pose any risk to the Omani financial sector.”
From the standpoint of Oman’s regulatory authorities, investments in crypto-currencies are neither authorised nor illegal at the current juncture in the Sultanate. Investors bear sole responsibility for their investment decisions related to such products, say market experts.

Crypto-currencies, which reportedly have generated fabulous returns — and losses as well — for investors elsewhere around the world, do not currently pose any risk to the Sultanate’s financial sector, according to the Central Bank of Oman (CBO).
The apex bank stated in its 2019 Financial Stability Report, issued here recently, that its strong advocacy of modern technology and trends in the development of Oman’s banking and financial services industry, does not signal an automatic endorsement of inadequately regulated crypto-currencies and other such financial technology (fintech) based products.
It explained: “The CBO supports the use of cutting-edge technology by the banking sector to make provision of financial services more efficient, user friendly, and cost effective. While it facilitates the use of advancements in technology by issuing the necessary frameworks, approvals, and regulations, CBO does not endorse crypto-currencies or other fintech-based assets that have weak governance or are speculative in nature. Due to this cautious approach, crypto-currencies lack the volume to pose any risk to the Omani financial sector.”
From the standpoint of Oman’s regulatory authorities, investments in crypto-currencies are neither authorised nor illegal at the current juncture in the Sultanate. Investors bear sole responsibility for their investment decisions related to such products, say market experts.

Licensed banks in the Sultanate are prohibited from offering any prizes, gifts or other such inducements to entice customers into buying their personal loans or other financing products, according to the Central Bank of Oman (CBO).
The warning came in a Master Circular issued by the apex bank last week, revising the guidelines regulating promotional campaigns, competitions, merchant discount schemes and loyalty programmes of banks.
In essence, the circular dispenses with the long-standing requirement for licensed banks, including Islamic Banking Entities (IBEs), to first obtain a ‘No Objection’ from the CBO before undertaking any promotional campaign, competition or discount scheme.
The waiver applies to all types of “promotional campaigns, competitions, merchant discount schemes, loyalty programmes and other initiatives of a similar type/nature, including those relating to deposits, personal loans / financing (including credit cards), debit / prepaid cards and mobile wallets”, the circular noted.
However, it reaffirmed the continuing ban on inducements in the form of prizes and gifts to lure customers into opting for the personal loan or financing products of a licensed bank.

The European Union (EU) sees promising potential for amped up trade and economic ties with the Gulf Cooperation Council (GCC) and with the Sultanate of Oman in particular, according to top EU official. Vazil Hudak, Vice President of the European Investment Bank (EIB), cited Oman’s “strengths” — as revealed by a survey of potential EU investors — that bode well for enhanced investment inflows into the Sultanate, provided, of course, a list of “challenges and barriers” are suitably ironed out as well. “Opportunities here are huge,” Hudak remarked. “We believe Europe could be a strong partner for Oman and for GCC,” he stated during an international investor forum held in Muscat recently. The European Investment Bank is billed at the world’s largest financial institution with assets of over 600 billion euro.

Jointly owned by the 28 member states of the EU, the Bank lends around 70 billion euro annually, he said. Presenting on the theme, ‘Oman’s Positioning with Respect to Global FDI Trends’, the top EU banker addressed a gathering that included high-level Omani government officials, public and private sector decision-makers, and prospective international investors. According to the official, the framework for economic and political cooperation between the EU and the GCC states, including Oman, is set out in the 1988 EU-GCC Cooperation Agreement, which seeks to “improve trade relations and stability in a strategic part of Europe’s neighbourhood”. The agreement led to the creation of a joint council, as well as joint cooperation committee that meets annually, he said.

The newly established Investment Services Centre (ISC), set up with mandate to enhance the business environment in the Sultanate, plans to integrate as many as 75 government agencies and private sector service providers into its Invest Easy portal by 2020.
ISC Chief Executive Officer Eng Ibrahim bin Said al Maamari, (pictured) said the majority of these entities will be linked up electronically by the end of this current year, with the balance due to be connected during the course of 2020.
Speaking at a forum held in the city recently, he said the portal will ultimately serve as the single window for the entire lifecycle of a business — from the moment it seeks a Commercial Registration (CR) to its closure (if and when that happens).
Overseeing the Invest Easy portal is the Investment Services Centre, which has been established under the purview of the Ministry of Commerce and Industry to serve as a “national single window for local and foreign investors”, said Al Maamari.
This mandate, the CEO said, is enshrined in the Foreign Capital Investment Law, promulgated via Royal Decree 50/2019. Citing Article 5 of the Law, he said: “The Centre shall register the foreign investor, facilitate and simplify the procedures for the extraction of all approvals, permits and licenses necessary for its investment project.”

Oman’s central bank raised OMR45 million by way of allotting treasury bills on Tuesday.

The treasury bills are for a maturity period of 182 days, from October 30, 2019, until April 29, 2020.

The average accepted price reached 99.043 for every OMR100, and the minimum accepted price arrived at 99.040 per OMR100. Whereas the average discount rate and the average yield reached 1.91970 per cent and 1.93826 per cent, respectively.

The interest rate on the Repo operations with CBO is 2.300 per cent for the period from October 29, 2019, to November 4, 2019, while the discount rate on the Treasury Bills Discounting Facility with CBO is 3.050 per cent, for the same period.

Sohar Port and Freezone signed a land lease agreement for the establishing a quartz manufacturing plant with Madhav Surfaces, a joint venture between Al Khanjar Commercial Agencies, a subsidiary of Khimji Ramdas, and Madhav Ashok Ventures Private Limited (MAVPL) based in India.

The agreement was signed between Dr Mohammed Nasser Al Zaabi, chairman of the Board of Sohar Port and Freezone and Nailesh Khimji, chairman of the Board of Directors of Madhav Surfaces, representing Al Khanjar Commercial Agencies.

This project is a continuation of the efforts of Sohar Freezone to achieve its objectives by attracting various value-added projects that contribute to increasing the economic returns and diversifying technology to drive sustainable development in the Sultanate. The plant will see a total capital investment of over OMR 3.8 million (USD 10 million) and will take up an area of 20,000 m2 at Sohar Freezone. The facility will be primarily used for the manufacturing of quartz slabs and other quartz products using chrome ore and calcined lime from the local market, to be exported to the USA and Europe, alongside the polishing of quartz slabs.

Nailesh Khimji commented, “This agreement marks a new step in the success journey of our investments in the Sultanate, which enjoys a reputation as a stable country for potential projects and investments. The introduction of the new quartz plant will contribute towards the efforts of promoting the export of high-quality Omani products into international markets.”

Oman’s non-oil exports reached US$9.7 billion in 2018, which is higher from the US$8.2 billion reported in 2017, and have successfully provided employment to over 240,000 people, a senior Ithraa official said.

“Oman’s manufacturers play a crucial role in communities right across the Sultanate, creating new and sustainable jobs, which have helped accelerate Oman’s ambitious economic plans,” said Nasima Al Balushi, director general, Investment & Export at Ithraa.

“We’re living in a digital age, where borders no longer matter. In fact, the word multi-national has long been associated with the world’s largest companies. But today, that label no longer carries the same meaning,” Al Balushi pointed out that.

The multibillion dollar petrochemicals complex envisaged downstream of the Duqm Refinery in Duqm’s Special Economic Zone (SEZ) will position the Sultanate as a leading producer of niche commodities for the global market, according to a key official of Oman Oil & Orpic Group, which is major investor in the mammoth refinery and petchem development.
Hilal al Kharusi (pictured), Executive Managing Director – Oman Oil Duqm Development Company, said the petrochemicals scheme will also unlock further value from Oman’s natural resources and open up the potential for investments in value-added processing industries, thereby driving employment and economic growth as well.
“When we started our petrochemicals industry back in 2006, we were producing 6 – 7 different commodities, which were distributed across the world, mainly to markets in Asia and Europe, with some products reaching the United States as well,” said Al Kharusi.

Public and private sector participants came together to share information and experiences on new instruments on trade facilitation that have been brought available recently to make international trade and logistics faster and cheaper for practitioners.
These include enhancements that allow legitimate trade to flow with minimal regulatory interference but also new services for greater visibility and management of trade flows. The event was organised by Oman Logistics Centre as part of the implementation of the National Logistics Strategy SOLS 2040.
The Directorate General of Customs announced relaxation of the requirement of presenting original trade documents at submission of customs declaration. This decision was made to support traders in expediting their goods flows through borders and especially to encourage early reporting to Customs.
Pre-arrival clearance of shipments saves time and cost when import shipments are already released for free circulation at arrival.

The operation of Oman’s first Industrial City at Rusayl in Muscat Governorate will be placed in private hands under a Public Private Partnership (PPP) arrangement within two years, according to the head of the Public Establishment for Industrial Estates (Madayn).
Hilal bin Hamad al Hasani (pictured), Chief Executive Officer, said the initiative is part of a broader effort by the government-owned operator of the nation’s network of industrial cities, among other assets, to attract private investment and engagement in this key sector.
“We are working on the transformation to a PPP model with Rusayl Industrial City being the first industrial park that will be transformed into a company,” said the CEO. “Although presently owned and operated by Madayn, sometime soon — within the next two years — we will float 49 per cent of the equity for private sector investment.”
Al Hasani made the announcement at the Oman Economic, Industrial & Free Zone Summit 2019 (OEFZS), which was held at the Oman Convention and Exhibition Centre on Monday. The two-day event has been organised by Ihraa Oman, with the support of Free Zone Watch.

Oman’s Ministry of Oil and Gas (MOG) sold a cargo of Oman blend crude via DME Auctions, achieving once again a premium above the Official Selling Price (OSP) that reflects the current market in the Middle East and Asia.
The 2-million-barrel cargo of December-loading Oman Blend crude was awarded at a premium of $0.25 per barrel over the December OSP.
The DME Auction platform saw 14 participants with 17 active bids placed during the 2-minute period. The Oman OSP is calculated on a volume-weighted average of daily DME Oman Crude Oil (OQD) Marker Prices over the month.
Raid al Salami, Managing Director, DME, said: “Once again DME auctions proved to be the ideal platform and the most transparent mechanism to buy and sell spot cargoes.

Mazoon Dairy, the first of an array of government-backed investments in support of the nation’s food security goals, rolls out its brand of ‘Made in Oman’ dairy products today, targeting markets in Muscat and Sohar before distribution is progressively ramped up to cover the entire Sultanate.
Mazoon Dairy CEO Dr Arjun Subramanian (pictured) said the launch represents an historic day for Oman’s blossoming food industry, as well as for the government’s goal of supporting a self-sufficient economy.
“This is a milestone event in Mazoon’s history and in the history of Oman,” said Dr Subramanian. “As the flagship dairy company of the Sultanate, our goal is to fulfill the national goal for economic development by establishing a self-sufficient economy. Today, we are a step closer to fulfilling this vision. With the launch of Mazoon, the people of Oman will have access to milk and dairy products, which will significantly contribute to reducing imports. This will ensure long term food security and create employment and development opportunities for Omanis in the private sector.”

Musandam Power Company (MPC), which owns and operates the first gas-powered power plant in Musandam Governorate, will offer 40 per cent of its share capital in the form of an Initial Public Offering (IPO) via a listing on the Muscat Securities Market next month.
It follows a decision by the Capital Market Authority (CMA) approving MPC’s prospectus for the IPO, which will be offered in two stages as part of a ‘book building’ process – the first time it has been deployed in an IPO issued on the Muscat bourse, according to a Muscat-based market analyst.
“What makes the IPO particularly unprecedented and interesting is the application of the ‘book-building’ mechanism for the first time in a public offering on the MSM,” said Hettish Karmani, Head of Research at U Capital, the Sultanate’s leading investment banking platform.

The Ministry of Oil and Gas has proposed the setting up of a working group to jumpstart the development of a low-carbon and sustainable hydrogen economy in the Sultanate.
Salim bin Nasser al Aufi, Under-Secretary, said the working group, initially led by the ministry, will seek to bring together all of the stakeholders — government, academic institutions, R&D organisations, Oil & Gas operators, industries and petrochemical companies — thereby paving the way for the creation of a Hydrogen Centre or hub to spearhead the development of a hydrogen economy for the Sultanate.
The official made the announcement in closing remarks at the conclusion of the 1st Oman Hydrogen Symposium which was held on Wednesday, October 9, under the auspices of Dr Ahmed bin Mohammed al Futaisi, Minister of Transport and Communications, at the Halban campus of the German University of Technology in Oman (GUtech).

Oman’s Ministry of Agriculture and Fisheries has identified nine locations along the Sultanate’s coast for the establishment of fishery harbours via the Public Private Partnership (PPP) route.
A snapshot of the initiative was presented at the PPP Oman Forum 2019, which opened at the Oman Convention and Exhibition Centre on Monday.
“We are inviting private investors to support the development of major fishery harbours under long-term lease agreements,” said an official of the Ministry’s Operations Department, which is driving its PPP strategy.
“These projects are envisioned as multipurpose fishery harbours that offer integrated facilities designed to catalyse investment in fisheries, tourism, and commercial activities, as well as cater to the requirements of government support institutions.”

The Executive President of the Capital Market Authority (CMA) has issued the regulations underpinning the Health Insurance Scheme (Dhamani) due to be rolled out in the Sultanate. Decision 78/2019, enshrined the guidelines for Health Insurance in Oman, were compiled in collaboration with the concerned entities tasked with preparing the legislative and regulatory infrastructure for the Dhamani health insurance scheme for employees of the private sector, the residents and visitors to Oman, said the Authority in press statement. Abdullah Salim al Salmi, (pictured) Executive President of the Capital Market Authority, said the issuance of the decision represents an advanced step in the preparedness of the legislative infrastructure and legal framework and one of the five steps identified by CMA in the preparatory phase of implementation of Dhamani scheme.

Royalties paid by telecom companies operating across various classes in the Sultanate jumped 45 per cent to RO 78.3 million in 2018, up from RO 53.9 million a year earlier, according to figures published by the Telecommunications Regulatory Authority (TRA).
The uptick is partly driven by an increase in the royalty rate set by the Omani government with effect from January 1, 2017 to 12 per cent of revenues, up from 7 per cent previously.
Royalties paid by Omantel and Ooredoo, the biggest telecom operators in the Sultanate, accounted for around 97 per cent of the total. The remainder was contributed by Awasr (Class I Fixed), Connecti Arabia and TeO (Class I International Gateway, Majan (Renna) and Friendi Mobile (Class II Mobile Resellers), and Rignet and Azyan Telecom (Class III Private Networks).

An ambitious food security strategy spearheaded by the Omani government over the past several years has led to significant improvements in domestic food production capacities, according to a report compiled by the Supreme Council for Planning.
The contribution of the local agriculture, livestock and fisheries sectors — in value terms — accounted for 49 per cent of the total value of food supply available for consumption in the Sultanate last year, up from 36 per cent in 2011.
Overall self-sufficiency in local food production versus food imports stood at 79 per cent in 2018, while locally produced foodstuff accounted for 58 per cent of total food items available for consumption last year, the report noted.
“The Sultanate devotes utmost attention to the issue of food security and food supply and has developed a wide array of plans and programmes focused on the security and sustainability of food supply for nationals and expatriates,” said the National Committee for Achieving Sustainable Development Goals, a task force operating under the auspices of the Supreme Council for Planning.
According to the National Committee, the Sultanate has developed a comprehensive food security strategy (2020-2040) that sets out a number of objectives aimed at enhancing Oman’s food security apparatus in terms of production, import, storage, and distribution. This strategy has three broad pillars: food demand, local food production and securing imports.

Wholly government-owned Minerals Development Oman (MDO), which is rapidly emerging as one of the foremost players in the Sultanate’s mining and mineral processing sectors, has announced plans to develop a huge solar salt project at Mahout in Al Wusta Governorate.
To this end, it has sought approvals for a concession covering an area of 122 sq kilometres, which will be largest of its kind in the Sultanate. The giant solar salt scheme will harness the governorate’s prodigious natural sea-salt generating potential for various oilfield, petrochemical and industrial applications.
Fahad al Adi, Head of Corporate Support at MDO, said the proposed concession covers an area extending from Mahout all the way to Duqm.
Speaking at the OER Business Summit that took place in Muscat last week, Al Adi said the mega solar salt scheme has the potential to open up opportunities for downstream investments in the Special Economic Zone (SEZ) at Duqm.

Oman Aviation Academy (OCA) signed a contract with Dawood Contracting Company LLC for the development and construction of the Academy’s facilities at Suhar Airport.
The signing ceremony was held at Kempinski Hotel where Captain Abdullah Murad al Bulushi, CEO, signed on behalf of the Academy, while Talal Ahmed al Shizawi, CEO, signed on behalf of Dawood Contracting Company.
As per the contract, the contractor will develop a total built-up area of approximately 35,000-square metres which comprises the Academy’s main building, aircraft maintenance hangar, taxiway, apron, campus accommodation and other facilities. The fully integrated facility will be built to meet the state-of-the-art aviation academies and will be equipped with the latest aviation training equipment.
Captain Abdullah al Bulushi, CEO of the Academy stated: “OAA is the first aviation training academy in the Sultanate of Oman that aims to provide the highest international standards for civil aviation in the Middle East and Africa region. Signing this contract is one of the major milestones of the Academy.

Ithraa Chairman, Yahya Al Jabri will lead a high profile Omani trade delegation to Yinchuan next week to participate at the China - Arab States Expo and hold talks with Chinese business leaders on trade, investment and participation in the Belt and Road Initiative.

Oman’s attendance at the Yinchuan Expo aims to boost Omani-Sino links in logistics, tourism, manufacturing, mining and fisheries. The event will see Al Jabri speak alongside senior Chinese business figures, and will also provide the opportunity for members of the delegation to pitch projects to potential investors.

Remarking on the China visit, Nasima Al Balushi, Ithraa’s Director-General for Investment & Exports said: “We believe there are significant opportunities for joint investment projects and partnership. Our strengths, particularly in manufacturing, logistics, fisheries, mining and tourism make us a very attractive proposition for Chinese investors. We are committed to driving growth across the Sultanate by connecting it to the world’s most important markets.”

A better performing economy has improved Oman’s financial standing in the first half of 2019, according to the Government Communications centre (GC).

In a positive sign for Oman`s economy, the government announced that the Sultanate had witnessed a 53 percent drop in the state budget deficit in the first half of 2019. According to Government Communication (GC) data, the budget deficit stood at OMR 0.66 billion (660 million) compared to OMR1.4 billion for the same period in 2018.

The centre released a statement to convey that Oman’s financial health and the shrinking deficit thanks to the government’s efforts, which it labelled as “necessary”.

Oman’s central bank raised OMR55 million by way of allotting treasury bills on Tuesday.

The treasury bills are for a maturity period of 91 days, from Wednesday until November 20, 2019.

The average accepted price reached 99.469 for every OMR100, and the minimum accepted price arrived at 99.465 per OMR100. Whereas the average discount rate and the average yield reached 2.13129 per cent and 2.14268 per cent, respectively.

The interest rate on the Repo operations with CBO is 2.669 per cent for the period from November 20, 2019 to November 26, 2019 while the discount rate on the Treasury Bills Discounting Facility with CBO is 3.419 per cent, for the same period.

The Sultanate’s crude oil and condensates production stood at 30,091,142 barrels during July 2019 with a daily average of 970,682 barrels.

The monthly report issued by the Ministry of Oil and Gas pointed out that the total exported quantities of the Omani crude oil during July 2019 reached 21,329,021 barrels, with a daily average of 688,051 barrels.

China`s imports of the Omani oil registered a rise for the second consecutive month by 7.98 % of the total imports during July 2019, to reach 78.04% of the total exports of the Omani crude oil compared with the previous month (June 2019).

Raysut Industrial City, an industrial city pertaining to the Public Establishment for Industrial Estates – Madayn, has witnessed growing investment activity during the past period.

Hamad bin Hamoud Al Qasabi, Director General of Raysut Industrial City, informed that a total of 32 investment applications of industrial, commercial and service activities were received during the first half of 2019. “Among these 32 applications, nine projects have been localised. The study and analysis process of the remaining applications is underway before contracts get signed. Besides, many of the existing projects at Raysut Industrial City have received additional space and they are currently working to expand their businesses and introduce new production lines,” Al Qasabi pointed out.

Occidental Oman signed two new multi-year contracts with Gulf Triangle Industries & Services and Muscat National Petrochemicals & Supplies, as part of its in-country value (ICV) strategy to support locally manufactured materials and maximise expenditure on goods and services made in Oman.

Both companies will supply Occidental Oman with dolomitic lime for Occidental Oman’s Mukhaizna field operations, according to a press release.

The signing ceremony was held at Occidental Oman’s headquarters in Muscat.

The agreement was signed by Stephen Kelly, president and general manager of Occidental Oman; Younis al Amri, chief executive officer of Gulf Triangle Industries & Services; and Abdul Hamid al Shanfari, CEO of Muscat National Petrochemicals & Supplies. Abdulkarim al Ghassani, vice president for supply chain, and other senior executives of Occidental Oman were also present at the event.

“The contracts reaffirm our wide-ranging commitment to enhance the collaborative efforts of the oil and gas industry to efficiently develop a competitive Omani supply chain. We believe that this will increase investment in the country and support diversification of its economy. We look forward to new collaborative opportunities with local manufacturers,” said Kelly.

“We highly appreciate the trust that Occidental Oman has placed on us by awarding this contract, and look forward to grow our operations to produce dolomitic lime, and to provide products of the highest standards,” said Amri.

The Port of Salalah, Oman’s major regional gateway port and transshipment hub on the Arabian Sea, set another record in productivity with a delivering 412.97 Port Moves per Hour (PMPH) on vessel Cap San Tainaro handling 3,820 moves in a port stay of 9.25 hours. This is the highest productivity delivered by any port in the region to date.

Mark Hardiman, Chief Executive Officer of the Port of Salalah stated: “We are delighted to have reached this new record in productivity. This milestone could not have been achieved without the close coordination and outstanding teamwork between the teams in Maersk Regional Operations Cluster in Dubai, the Global Stowage Center and Port of Salalah."

The Sultanate’s nominal Gross Domestic Product (GDP) “continues to expand at a robust pace and grew by 12 per cent during 2018 as against 7.3 per cent in the previous year,” the Central Bank of Oman (CBO) revealed here yesterday.
The nation’s petroleum and non-petroleum sectors grew in nominal terms by 37.1 per cent and 2.9 per cent respectively, during this period, the apex bank stated in its ‘Review of Banking and Monetary Developments for April 2019’, which was issued yesterday.
“The contribution of the hydrocarbon sector to nominal GDP jumped to 35.5 per cent in 2018 from 29.0 per cent during 2017 mainly due to surge in oil prices. On the other hand, the share of non-hydrocarbon sector declined to 68.4 per cent from 74.4 per cent during this period.
The government and other stake holders are consistently making efforts to promote diversification away from the hydrocarbon sector to reduce dependence on oil sector and ensure sustainable development over medium to long run,” the report stated.

The Salalah Free Zone (SFZ) signed a usufruct subcontract agreement for two additional projects in the Salalah Free Zone in the food, import and export trade sectors with an investment of $19 million with an area of 26,000 square metres and 70 direct jobs.
The first project is the establishment of a carbon beverage plant which will be the exclusive distributor of Aqua Europe. The second project is the establishment of warehouses and stores to support the import and export trade in Salalah Free Zone.
The agreement was signed by Ali bin Mohammed Tabuk, Acting CEO of SFZ and the manager in charge of each project in the investing company.
Ali Tabuk said, “Salalah Free Zone is working on more than one direction to attract foreign investments to the Sultanate and we have seven new initiatives expected to achieve positive results in the coming period. A new package of foreign direct investments will also be announced, along with the opening of factories and facilities for investors in the region.”

A first-of-its-kind Mineral Railway contemplated by Asyad Group — the end-to-end-logistics services flagship of the Sultanate of Oman — for implementation in the mineral rich areas of Al Wusta and Dhofar governorates, will also double as an alternative to road-based transportation in the movement of oilfield, industrial, commercial and agricultural goods in these areas.
Studies by Oman Rail — a subsidiary of Asyad Group tasked with exploring a Public-Private-Partnership (PPP) based framework for the delivery of the ambitious project — suggest that sizeable quantities of non-mineral based commodities can also be transported to businesses and communities operating in the proximity of the proposed Mineral Railway Line.

Ubhar Capital was conferred the Brokerage Excellence Award of the Muscat Securities Market (MSM) and was also ranked at the top in the field of investment services and Omanisation. The MSM Awards ceremony took place last week. Lo’ai Bataineh, CEO of Ubhar Capital, said: “We are honoured to get this award. This is the result of our hard working and dedicated team of young professionals providing top notch services to our local and foreign clients. We would like to thank our esteemed clients and true partners for choosing us as their service provider and giving us the opportunity to grow. None of our achievements would have been possible without you and your unwavering support.” Commenting on MSM’s recognition of the company’s Omanisation efforts, the CEO added: “Omanisation is an integral part of our company’s mission to serve the community in which we operate, which includes recruiting, training and development of local talent.”

Sayyid Fahd bin Mahmoud al Said, Deputy Prime Minister for the Council of Ministers on Sunday received Dr Hossam bin Abdul Mohsen al Anqari, President of the General Auditing Bureau (GAB) of the Kingdom of Saudi Arabia (KSA).

The guest conveyed greetings of the Custodian of the Two Holy Mosques King Salman bin Abdulaziz al Saud of the KSA to His Majesty Sultan Qaboos Bin Said.

After Sayyid Fahd welcomed the guest, he expressed the Sultanate’s satisfaction over the progress of the strong bilateral relations between the two brotherly countries, thanks to the care accorded to such relations by the leaderships of both countries.

Sayyid Fahd highlighted the importance of auditing institutions and their role in coordination and cooperation with all state institutions for the public interest.

Conversation during the meeting touched on means of promoting the existing cooperation between the two sides, as well as reviewing several current issues at the regional and international arenas.

On his turn, Dr Hossam bin Abdul Mohsen al Anqari, President of the GAB expressed his gratitude of this visit and the good opportunity it provided to view the Omani experience in areas of financial and administrative audit.

Investments in an expanding portfolio of upstream, midstream and downstream projects slated for implementation in Oman’s Oil & Gas sector over the next several years could potentially swell to staggering $40 billion if a string of newly announced strategic ventures linked to an ambitious integrated gas development are factored in as well, according to a high level official of Oman Oil & Orpic Group.
Dr Salim al Huthaili (pictured), CEO of Duqm Refinery — part of the newly integrated energy powerhouse — said the Group currently has a substantial pipeline of projects worth an estimated $28 billion in various stages of implementation. But the size of this investment is expected to balloon to around $40 billion if a Gas-to-Liquids (GTL) scheme as well as LNG bunkering terminal, both linked to the monetisation of natural gas resources of the Greater Barik area, are taken into account as well.

Shumookh Investment and Services (SIS), the investment arm of the wholly Omani government-owned Public Establishment for Industrial Estates (Madayn), says it is exploring plans to establish a world-scale refinery and petrochemicals complex in Sur Industrial City in Oman’s South Al Sharqiyah Governorate.
The proposed refinery and petrochemical complex is expected to have a processing capacity of 300,000 barrels per day, surpassing that of the 230,000 bpd Duqm Refinery project currently in the early stages of implementation in the Special Economic Zone (SEZ) in Duqm on Oman’s Wusta coast. The cost of the proposed mega venture in Sur is a ballpark $10 billion.

Marking a key milestone in its privatisation drive, the Omani government-owned Nama Holding has announced that it has received as many as 25 Expressions of Interest (EoIs) from international investors for a pair of flagship power subsidiaries — Oman Electricity Transmission Company (OETC) and Muscat Electricity Distribution Company (MEDC).
Both OETC and MEDC are among a total of five subsidiaries lined up for partial privatisation as part of the government’s strategy to attract strategic investors to help support the ongoing expansion and modernisation of the Sultanate’s critical power infrastructure. The remaining three Distribution & Supply entities — Majan Electricity Company, Mazoon Electricity Company and Dhofar Power Company — are also being prepped for privatisation as part of a phased process targeted for completion by mid-2020.
Giving an update on the keenly-anticipated privatisation process at a press conference held here on Monday, top Nama Group officials said the provisional offers were received during an EoI Phase that began on October 8, 2018.

A three per cent tax on the French revenue of large Internet companies could yield 500 million euros (£568.5 million) per year, French Finance Minister Bruno Le Maire said on Sunday. Le Maire told Le Parisien newspaper the tax is aimed at companies with worldwide digital revenue of at least 750 million and French revenue of more than 25 million euros.
He said the tax would target some 30 companies, mostly American, but also Chinese, German, Spanish and British, as well as one French firm and several firms with French origins that have been bought by foreign companies.
The paper listed Google, Amazon, Facebook and Apple (the four so-called “GAFA” companies) but also Uber, Airbnb, Booking and French online advertising specialist Criteo as targets.

Majis Industrial Services (MIS), a wholly Omani government-owned water services utility, yesterday signed a facility agreement with Ahlibank Oman covering a RO 45 million term loan to finance the purchase of a minority stake in leading UAE-based utility Utico, as well to drive its growth ambitions. The agreement was inked at a ceremony held at Hormuz Grand Muscat Hotel yesterday. The parties were represented by Eng Ahmed Saif al Mazruai, CEO — Majis Industrial Services, and Saif Abdullah al Hatmi, CEO — Ahlibank. Also present at the signing were high level officials representing Utico and Oman Investment Fund (a sovereign wealth fund of the Sultanate of Oman that owns Majis Industrial Services).

Oman’s tax authorities are expected to shortly commence the process of issuing Tax Cards for all corporate entities operating in the Sultanate, according to a Muscat-based tax advisory services expert.
Tax Cards have been mandatory for corporates under the amended Income Tax Law (ITL) promulgated last year. Following the gazetting, earlier this week, of the Executive Regulations clarifying certain provisions of the Income Tax Law, procedures for the roll-out of the Tax Card scheme are expected to be unveiled soon, said Alkesh Joshi (pictured), Tax Partner at EY Oman,

Majid Al Futtaim, the leading shopping mall, communities, retail and leisure pioneer across the Middle East, Africa and Asia, on Wednesday said that the work on its Mall of Oman project in the sultanate is progressing well.

An expert at the Diwan of Royal Court has called for a “rebalancing” of the relationship between the private sector and the Omani government, which he characterised as fraught with “miscomprehensions” on both sides.
Dr Julio C Saavedra, Senior Policy Adviser at the Office of the Adviser for Studies and Research at the Diwan, stressed the need for the private sector to be suitably empowered and strengthened in order to fulfil its role as the motor of the Omani economy.
Speaking on the ‘Role of the Private Sector in Achieving Oman’s 2040 Vision’ here yesterday, Dr Saavedra said the time has come for the private sector to reduce its excessive dependence on the government for business and contracting opportunities.
“The private sector built the (nation’s) infrastructure, but always as a contractor of the government,” the expert said, noting that this model has been embraced by many economists because it has worked wonders, particularly in countries blessed with wise leaderships.

A wide range of products made from dates and sesame seeds, halawa al-narjil, rahash, gourds and milk biscuits has been generating interest among the visitors.

Oman’s Telecommunications Regulatory Authority (TRA) is preparing the initial groundwork for the formulation of a regulatory groundwork that will enable telecom users — individuals, businesses and organisations — to harness the transformative power of the Internet of Things (IoT) to drive efficiency and automation, enhance convenience and service delivery, and fuel economic growth across all sectors on an exponential scale.
As a first step, the Authority has announced a public consultation designed to elicit feedback from various stakeholders on the regulatory steps it would need to take in order to facilitate the uptake of IoT in the Sultanate.
The Internet of Things is essentially a network that allows all manner of smart devices — any tangible item that has sensors and software — to communicate with each other and share data that can be harnessed to deliver all kinds of benefits. These devices can range from microwave ovens to cars, buildings and even aeroplanes.
In value terms, these benefits potentially translate into several trillions of dollars in new economic activity, GDP growth and wealth generation for the global economy over the next decade, according to pundits. Almost every facet of life and professional discipline has the potential to be transformed with IoT adoption, it is stressed.

The German University of Technology in Oman (GUtech) was the official Academic Partner of the eMobility Forum, which was held in Muscat on Sunday. The day-long event, organised by GlobalEVRT, brought together various stakeholders from the public and private sectors in a collective bid to push forward the adoption of clean fuels in the transportation and logistics industry.
The electrification of the transport system is seen as one of the best ways to improve the overall quality of the environment, increase air quality and lower global CO2 emissions.
Dr Oualid Ali (pictured), Director of Training and Smart Solutions Centre (TSSC) at GUtech and Founder and President of the Future Cities Council, gave a keynote speech titled: ‘Electric Vehicles for Future Smart and Sustainable Cities: Opportunities and Challenges for Oman’. In his talk he mentioned some of the challenges facing Oman, such as the implementation of governmental regulations, the transition of electric vehicles, and the need for charging infrastructure to be set up all over the country.

The Authority for Electricity Regulation Oman (AER) has pledged to work with key stakeholders in the formulation of a regulatory and commercial framework that will make it attractive for private investors to deliver the charging infrastructure necessary to support and sustain the introduction of private Electric Vehicles (EV) in the Sultanate.
The Authority’s Executive Director, Qais Saud al Zakwani (pictured), said the private sector was ideally positioned to invest in charging facilities and the support infrastructure necessary to fuel the adoption of Electric Vehicles. He cited in this regard an understandable reluctance by the government to subsidize the Electric Vehicle space, given the already substantial subsidy enjoyed by the electricity sector in the Sultanate.
“We want the private sector to lead most of the development and we want that not only as a result of the need to reduce the burden on public funds, we want it because we believe that the private sector is better equipped to make decisions as to which types of infrastructure customers will want (and be prepared to pay for),” said the official.

The Board of Directors of Oman Information Technology and Communications Group (OITCG) held its first meeting under the chair of Sayyid Kamil bin Fahd al Said.

The Group’s Board discussed the agreement on the main objectives for which the Group was established, the mechanism of its work, how to manage the companies under the Group, and means to achieve integration and efficiency by seeking to unify the efforts in order to reduce the costs and speed in the completion of works.

The OITCG Board emphasized the need for a unified strategy that is consistent and aligned with the strategy of information and communication technology (ICT), which is currently being prepared by the Ministry of Transport and Communications and other strategies in the Sultanate, considering that the Group is an investment and executive arm for the initiatives of these strategies.

Promoting entrepreneurship and small business development in the construction industry — a major employment generator albeit dominated by blue-collar expat workers — is pivotal to enabling Omanis to harnessing the business and economic potential of this sector, according to prominent industry figure.
Khalid al Mahrooqi, Vice Chairman of the Oman Green Building Council, said Omani SMEs hold the key to creating entrepreneurial and employment opportunities for nationals in this critically important sector of the Omani economy.
He told a construction forum held in the city recently that the SME-driven approach has a better chance of sparking the growth of financially rewarding and professionally fulfilling jobs for Omanis than the conventional approach of Omanising blue-collar jobs.
According to figures released by the Oman Society of Contractors (OSC), Omanis currently account for a mere 8 per cent (56,000) of the estimated 650,000 workers in the construction sector. Efforts to bolster Omanisation in this key sector have failed to gain traction primarily because of the relatively unattractive pay packages for blue collar workers coupled with the challenging workplace conditions especially during the hot summer months of the year.

Camps have seen massive tourist influx from within and outside the Sultanate. They have emerged as one of the most attractive products for tourists.

Statistics show that the occupancy level during the winter season, beginning from October till the end of April every year, has been between 60 per cent and 70 per cent.

The Ministry of Tourism is encouraging tourist camps as an import product, which increases the volume of accommodation facility of the tourism sector of the country. The statistics indicate that the number of beds provided by the camps reached 313 in 175 rooms of ten camps.

Some owners of the tourism companies, camps and diverse tourist resorts said that there was huge tourist influx in Al Sharqiyah deserts. They said that this was an indication of the diversity of tourism resorts of the area.

The camps also showed that diversity of tourism programmes and their richness. They are sufficient to attract various categories of tourists.

A partnership between Al Morooj Dairy Company and Indian Dairy Machinery Company Ltd (IDMC) has all the potential of a dairy movement in Oman, which can boost dairy production in Dhofar and provide sustainability to the livestock population in the governorate.
A partnership agreement was signed between newly formed Al Marooj Dairy Company and IDMC at Hilton Salalah Resort Salalah on Sunday under the auspices of Sayyid Mohammed bin Sultan bin Hamoud al Busaidy, Minister of State and Governor of Dhofar.
The project has an ambitious plan of collecting cow and camel milk, initially from the mountain villages of Dhofar, and then from all over Dhofar through milk collection centres.
The idea behind the project is to channelise the milk production by the villagers and offer them proper market at their doorstep.

Shaikh Abdullah bin Nasser al Bakri, Minister of Manpower received at the General Diwan of the ministry today Maudline Cyrus Castico, Minister of Labour, Empowerment, Elderly, Youth, Women and Children of Zanzibar and her accompanying delegation, currently visiting the Sultanate.

The two sides reviewed aspects of cooperation and technical coordination in the field of labour, besides reviewing the importance of benefiting from expertise and enhancing technical cooperation in related fields.

The meeting was attended by the Undersecretary of the Ministry of Manpower for Labour and specialists. –ONA

The Sultanate’s penchant for big cars could be a potential barrier to the rapid adoption of Electric Vehicles (EV), according to a newly published report by Oman’s electricity regulator outlining international best practices to support the growth of a domestic EV market.
The issue tops a list of potential barriers that the Sultanate would need to overcome in order to facilitate the early and sustained roll-out of Electric Vehicles as part of a wider transition from conventional hydrocarbon-based fuels as a source of energy to renewable and sustainable resources.
The report was compiled by the San Francisco-based consultancy firm, Energy and Environmental Economics, Inc (E3) who, along with its subcontractor, London-headquartered Baringa Partners, were commissioned by the Authority to study the groundwork necessary for the full-scale adoption of plug-in light-duty electric vehicles (PEV) in the Sultanate.

Oman’s Ministry of Oil & Gas says it will open up its ultra-heavy oilfield at Habhab in south Oman to investment and development by international players with the technological and financial wherewithal to unlock the field’s promising, but technically challenging, resources.
Habhab, a large, heavy and very viscous oil accumulation that currently forms part of the Block 6 concession of Petroleum Development Oman (PDO), is proposed to be carved out and offered up to international energy firms with the knowhow to harness the reservoir’s almost bitumen-like hydrocarbons.
According to Dr Salman bin Mohammed al Shidi, Director General of Management of Petroleum Investments at the Ministry, Habhab will be “packaged separately” to companies that have the technical capabilities to handle heavy oil resources. “We will be open to companies that have the technical might and the investment, firstly to study the reservoir and then to put together a proposal to unlock its heavy oil,” the official said.
Earlier this month, the ministry announced that Habhab would be marketed in conjunction with the Oman Licensing Bid Round 2019 due to be launched in the first quarter of next year. In all, six oil and gas blocks — newly labelled as Blocks 70, 73, 74, 75, 76 and 58 and distributed across the Sultanate — will be offered under Exploration & Production Sharing Agreements (EPSA) as part of the bid round.

The Authority for Electricity Regulation (AER) publishes a report on international best practices for electrical vehicles and recommendations as Oman prepares for electric vehicle penetration.
The report highlighted key developments in the market for electric vehicles that have an impact on the future design of the electricity sector regulatory frameworks as well as prioritised modifications for other sectors. The report also revealed observations on tariff evolution that might better enable the development of EVs in Oman and their potential impacts on government subsidy levels to the electricity sector.

Muscat Municipality has been testing an intelligent central control system for the street lights network in Muscat to reduce costs and improve control.
“This system has many advantages such as that it allows timing of lighting, which helps the control staff to change the schedule using the program. They can adjust switch-on/off the lights as per the season and sunset/sunrise timings. They can also extract the status reports of the lighting network across the network,” the report said.
The Directorate General of Projects has been carrying out a number of projects related to the lighting of streets, roads, in addition to supervising traffic signals for maintenance as per the traffic density.

The Governorate of Al Dakhiliyah is witnessing a huge influx of tourists during winter season. New investments and projects are strengthening the tourism elements of the governorate. Mountain heights and tracks, heritage sites and ancient lanes are some of the most diverse, multiple and unique experiences and options for tourists visiting Al Dakhiliyah.

Khalil bin Saif al Tobi, Director of Tourism in the Governorate of Al Dakhiliyah said that there are more than 30 tourist establishments in the governorate. They include seven tourist resorts, 15 hotel inns, two high-level tourist camps, a heritage accommodation built on the original Omani privacy standards and specifications, four guesthouses and two Green Inns.

The work is underway on a number of tourism projects. They are expected to be completed soon. There is Green Cliff Resort in Seih Qitna, which includes chalets, rooms, gymnasium and other facilities which are a distinctive addition. There is also a tourist resort project in Wilayat of Nizwa, as well as other projects, which are expected to be implemented in the future on government lands of the governorate. There are also other accommodation and services projects to be built.

Three cruise ships arrived today at Sultan Qaboos Port, including Horizon Pullmantur, which visits that the Sultanate for the first time with 1200 tourists and 611 crew members on board.

The Ministry of Tourism prepared a reception program for the tourists including exhibition for craft industries, traditional arts performances, Bedouin tent and other recreational activities to raise the tourists’ awareness of the Omani culture and promote the tourism and cultural potentials of the Sultanate.

It should be noted that Sultan Qaboos Port received 19 vessels in November 2018.  The total number of visitors stood at 35,600. –ONA

Duqm Refinery announced its project’s financial close at a gala dinner held at the Intercontinental Hotel Muscat. Achieving a multi-source project financing for the Duqm Refinery project was a major milestone for the project.
Speaking on the occasion, the President of Kuwait Petroleum International and Chairman of Duqm Refinery, Nabil Bourisli, said: This achievement reflects the strength and stability of the Omani and Kuwaiti economies.
It also reflects the trust and confidence of local, regional and international financial institutions in our economic ties that are deeply rooted in history. He added, “Our Vision is aiming at maximizing the value of our natural resources and driving the two countries toward expanding their economic potential that leads to balanced economic growth.”

Oman’s offshore basin represents a new frontier fraught with significant exploration challenges but with promising upside potential as well, according to a high-level executive of Italian energy super-major Eni.
Fabrizio Bolondi (pictured), Vice-President — Middle East Region, voiced optimism about the hydrocarbon potential of the Sultanate’s deep-water basin, particularly off the Sultanate’s southern seaboard where Eni is the operator of the sprawling Block 52 offshore concession.

Madayn brandmark was launched at the 25th anniversary ceremony of PEIE. As Oman diversifies its economy, the Madayn brandmark is a statement of confidence and pride according to the officials.

Meaning small cities, the name Madayn has been chosen to represent the Sultanate’s thriving nationwide network of world-class business hubs. And inspired by the imposing architecture of Oman’s historic towns and vibrant cities, the brandmark’s trifecta of stylised meems highlights the important urban and social aspect of Madayn’s identity – its infrastructure of welcoming communities offering attractive places to live, raise a family, and build a career. Further to this, the interconnected meems emphasise the multi-faceted character of Madayn, reminding us that these burgeoning centres are the home of industry, business and technology in the Sultanate while also alluding to their local, regional and international prospects as well as their significance for domestic entrepreneurship, innovation and business incubation.

Oman Aviation Group — the government’s aviation sector investment flagship — plans to establish a first-of-its-kind free zone for air-cargo and logistics at Muscat International Airport. The ambitious initiative, which is envisaged on vacant land adjoining the newly launched Air Cargo Terminal and elsewhere around the airport complex, is proposed to include temperature-controlled warehouses catering to the storage, processing, value-addition and distribution of a wide array of products suitable for air logistics. The objective, according to a high-level official associated with this endeavour, is to support the development of Muscat International Airport as a logistics gateway catering to the wider GCC region, Middle East and Africa.
“Oman Aviation Group is looking to develop Muscat into an air logistics hub,” said Tan Siang Tang (pictured), Chief Executive Officer – Oman Air SATS Cargo LLC, which operates the Cargo Services Terminal at Muscat International Airport. “As the enabler of investment and development in the aviation sector, we see the need for support infrastructure that will attract more players to this business and stimulate the growth of air cargo volumes.”

The MENA region raised $349.9m through four IPOs, in Q3 2018, according to the latest EY MENA IPO Eye report. Compared to Q3 2017, IPO value saw an increase year-on-year by 21.9 per cent, while activity declined by 33.3 per cent. Phil Gandier, MENA Transactions Leader, EY, says: “In light of fluctuating oil prices and headwinds in the economy, IPO activity in the MENA region has been slow from Q1 to Q3 2018. However it is positive to see that IPO value increased year-on-year in Q3, especially when we’ve seen several entities across MENA delaying their plans for IPOs in 2018 due to various factors including (but not limited to) regulatory and global trade concerns and uncertain market conditions in a rising interest rate environment.”
According to the report, Saudi Arabia led the MENA IPO activity in Q3 with the IPO of Leejam Sports Company on the Saudi Stock Exchange, which raised $220.6m, making it the biggest IPO in the third quarter. In the previous quarter, four companies went public, three of which were REIT listings on the Tadawul. Additionally, in the GCC region, Oman’s Muscat Securities Market (MSM) had a single IPO listing for Dhofar Generating Company in the power and utilities sector raising $52.0m.

The Omani Products Exhibition (OPEX 2018) will conclude today (Thursday) at Kenyatta International Convention Centre in Nairobi, Kenya. The four-day exhibition offered an ideal platform to explore potential opportunities to boost business relations between the Sultanate and Kenya. The event has successfully attracted Kenyan businessmen and investors who got familiarised with a variety of Omani products. B2B meetings took place on the sidelines of the exhibition between the Omani businessmen and their Kenyan counterparts to highlight investment opportunities and discuss ways to strengthen partnerships and business cooperation.
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Omar Muqaibal, Director General of Marketing and Media at the Public Establishment for Industrial Estates (PEIE) and member of OPEX committee, stated that the promotional campaign that was organised prior to the event has played a great role in attracting significant number of visitors including businessmen, investors and consumers from Kenya’s various cities. “The visitors got acquainted with a lineup of featured Omani products in the expo,” Muqaibal said, adding: “The exhibition also offers a great opportunity to raise awareness on the investment opportunities available in the industrial estates that fall under the umbrella of PEIE. Besides, PEIE officials have highlighted the recently announced new incentives offered by PEIE to the investors in order to attract major investments to the Sultanate.”

The foundation stone of Barka Marina development project was laid today in the Wilayat of Barka, along with the announcement of the actual commencement of the project.

The ceremony was sponsored by Shaikh Hilal bin Said al Hajri, Governor of South Al Batinah, in the presence of Dr Hamad bin Said al Oufi, Undersecretary of the Ministry of Agriculture and Fisheries, and a number of excellencies and officials.

Nasser bin Salim al Siyabi, Executive Vice President of Falcon Investments, said that the investment cost of the project is RO50 million, adding that 70 per cent of the project’s deep foundations were completed in the commercial area. He added that the project consists of different stages, to be implemented and opened over four years, as the project includes many service, commercial, tourism and entertainment facilities.

The ceremony included a presentation of the three stages of the project. It also included honouring of the sponsor of the event to honour a number of collaborators in the project and laying of its foundation stone.

It is worth mentioning that the project is located on a total area of 1.336,213 square meters. The actual area of the project is 115,200 square meters. The building area is 105.000 square meters. The leasable area is 40.000 square meters and the number of commercial units is 450 units.

Oman Oil Company Exploration and Production (OOCEP) — the upstream subsidiary of Oman Oil Company (OOC) — has agreed to sell a 10 per cent stake from the total value of Block 61 Khazzan, onshore Oman, to PC Oman Ventures Limited, a wholly owned subsidiary of Malaysian company Petroliam Nasional Berhad (Petronas). OOCEP, through its subsidiary Makarim Gas Development LLC, currently holds a 40 per cent stake in Block 61, whereas, the operator BP Oman bears the remaining 60 per cent. The completion of the transaction is subject to approval from the Sultanate of Oman’s government and other closing conditions. Block 61 is one of the largest unconventional gas projects, aiming to produce around 1.5 billion cubic feet of gas daily by 2020.

Petroleum Development Oman (PDO), the biggest producer of oil and gas in the Sultanate, says it is continuing to make headway in unlocking the gas potential of the Khulud gas field – billed as one of the deepest tight gas accumulations in the world.

Oman’s Ministry of Oil & Gas has urged the energy industry to strongly explore opportunities for localising the supply chain surrounding the use of fracking (or fraccing) — a technique that is set to play an increasingly pivotal role in sustaining Oman’s hydrocarbon output over the long term.
The appeal was made by Salim bin Nasser al Aufi, Ministry Under-Secretary, while addressing the SPE International Hydraulic Fracturing Technology Conference and Exhibition that began at the Sheraton Oman Hotel yesterday. The 3-day forum has been organised by the Society of Petroleum Engineers (SPE) with the support of the Ministry of Oil & Gas, Petroleum Development Oman (PDO) and BP.
Hydraulic fracturing — commonly referred to as fracking in the global energy sector — is a technique used to fracture the tight rock of the reservoir in which gas or oil is trapped in tiny pores. The process involves the high-pressure injection of fracking fluid (typically water containing sand or other proppants) into the wellbore to create cracks in the rock formation several kilometres below the surface. The cracks, held open by the sand, enable the natural gas or crude to escape into the production well.

A portfolio of large-scale solar-based renewable energy projects planned for implementation at key locations in the Sultanate will attract investments to the tune of around RO 616 million ($1.6 billion) over the next five years, according to Oman’s energy authorities.
These commercial utility-scale solar photovoltaic (PV) based schemes are key to accelerating Oman’s transition away from gas-based electricity generation, said a report by the Implementation Support & Follow-up Unit (ISFU), a task force operating under the auspices of the Diwan of Royal Court with the mandate to drive the Sultanate’s economic diversification strategy.
“In order to achieve the goal of a power source mix away from conventional fuel, the Sultanate can leverage on its solar energy as one of the main resources to generate power. Studies conducted by the Public Authority for Electricity and Water (PAEW) have proven the feasibility of executing such projects, as the rate of abundance of solar energy in the Sultanate is among the highest rates in the world,” ISFU stated in its report.
According to ISFU, four utility-scale solar based projects offering a total capacity reaching 1600 MW are proposed to be developed over the next five years.

Oman’s nascent transition towards renewable and alternative energy sources needs to go beyond the current focus on power generation if the country has to deal with the growing carbon footprint associated with escalating national energy demand, according to an Omani researcher.
Dr Aisha al Sarihi, a visiting scholar at the Arab Gulf States Institute in Washington (AGSIW), a well-known think-tank, said in a newly published research paper, that the Sultanate must also weigh a wider mix of alternative, yet sustainable, energy sources if it has to address the “dual challenge of energy security and climate change”.
Greenhouse gas emissions (GHG), blamed for global warming and climate change, have been on the uptick in the Sultanate, fuelled by a strong uptrend in domestic energy demand, which is predominantly based on oil and gas, the researcher noted.
Total greenhouse gas emissions have grown 452 per cent between 1970 and 2012 and are projected to grow by an average five per cent per year. “The energy sector accounted for 90 per cent of greenhouse gas emissions in 2014, followed by emissions sourced from bunker fuels, industrial activities, agriculture, and waste,” Dr Al Sarihi stated in her paper, titled ‘Facing the Dual Challenge of Energy Security and Climate Change: The Oman Example’.

Nama Holding, a government-owned company, has announced the launch of the privatisation programme for Nama Group’s electricity transmission and distribution companies. The announcement was made through the inauguration of the first stage of privatisation at a press conference held by Nama Holding in London on Sunday. The event was chaired by Shaikh Dr Mansoor bin Taleb al Hinai, Vice-President — Distribution and Supply at Nama Group.
During the press conference, Shaikh Dr Mansoor al Hinai announced the partial privatisation of the transmission company and one of the distribution companies through international strategic partner. He announced the sale of up to 49 per cent of Nama Holding shares in Oman Electricity Transmission Company (OETC), and the sale up to 70 per cent of Nama Holding shares in its distribution and supply companies respectively: Muscat Electricity Distribution Company (MEDC), Majan Electricity Distribution Company (MJEC), Mazoon Electricity Distribution Company (MZEC), and Dhofar Power Company (DPC).

The average price of Oman crude jumped a significant 26.7 per cent to $65.4 per barrel during the January- July period of 2018, the Central Bank of Oman stated in a review of banking and monetary developments during the month of July this year. This compares with an average of $51.6 per barrel for the corresponding period of 2017, it said.
GDP growth at current prices stood at 6.5 per cent during the first quarter of 2018 as against 15.8 per cent during Q1 2017, the apex bank said, citing preliminary data for the Sultanate’s national account.
Inflationary pressures in the Sultanate remained generally benign, it noted. The average annual inflation rate based on the consumer price index was about 0.8 per cent during January-July 2018 versus 1.8 per cent in the same period of last year.
The consolidated balance sheet for the banking sector, encompassing conventional and Islamic banks and windows, showed an increase in the credit balance to RO 24.3 billion by the end of July 2018, entailing a growth of 6.3 per cent over the same period last year, the Central Bank said.
Total credit granted to the private sector increased 5.4 per cent to RO 21.7 billion at the end of July 2018. Total deposits of the banking sector grew 3.4 per cent to RO 22.3 billion, with private sector deposits increasing 2.6 per cent to reach RO 14.1 billion.

The average price of Oman crude jumped a significant 26.7 per cent to $65.4 per barrel during the January- July period of 2018, the Central Bank of Oman stated in a review of banking and monetary developments during the month of July this year. This compares with an average of $51.6 per barrel for the corresponding period of 2017, it said.
GDP growth at current prices stood at 6.5 per cent during the first quarter of 2018 as against 15.8 per cent during Q1 2017, the apex bank said, citing preliminary data for the Sultanate’s national account.
Inflationary pressures in the Sultanate remained generally benign, it noted. The average annual inflation rate based on the consumer price index was about 0.8 per cent during January-July 2018 versus 1.8 per cent in the same period of last year.
The consolidated balance sheet for the banking sector, encompassing conventional and Islamic banks and windows, showed an increase in the credit balance to RO 24.3 billion by the end of July 2018, entailing a growth of 6.3 per cent over the same period last year, the Central Bank said.
Total credit granted to the private sector increased 5.4 per cent to RO 21.7 billion at the end of July 2018. Total deposits of the banking sector grew 3.4 per cent to RO 22.3 billion, with private sector deposits increasing 2.6 per cent to reach RO 14.1 billion.

Nama Group has announced the commencement of the live operation of their centrally implemented Automatic Meter Reading (AMR) project designed for high value customers in the electricity sector in Oman.
The ground-breaking project was carried out by a professional team of Omani experts from the electricity distribution companies in Nama Group in partnership with CESI Middle East FZE, a subsidiary of CESI, a world-leading technical consulting and engineering company and WIPRO Limited as the system integrator. The AMR system is a central standard smart metering system that will enable electricity companies to obtain accurate, hourly meter readings from high value customers and collect their consumption in an automated manner.
Nama Group CEO Omar al Wahaibi stated, “The AMR is another milestone in our continuous efforts to drive the electricity sector to enhance efficiencies, reduce electricity losses and provide better services to our customers. Moreover, this project sets a strong basis for providing more advanced services to our customers and helps us to be more effective in serving their needs in an efficient manner, in our quest to realise Nama’s vision of becoming a leading reference for utility service excellence by 2022.”

Oman Oil Duqm Development Company — a key vertical of the wholly government-owned Oman Oil Company (OOC) —has reported further headway in the implementation of a mega petrochemical complex downstream to Duqm Refinery currently under construction at the Special Economic Zone (SEZ) in Duqm. According to a high-level official, the petrochemicals complex — estimated to cost between $8 — $10 billion — is set to be the biggest industrial investment in the Sultanate, surpassing in scope and size the Liwa Plastics petrochemical scheme under development in Suhar.
“This will be the largest project in the country — even bigger than Duqm Refinery,” said Hilal bin Ali al Kharousi (pictured), Executive Managing Director of Oman Oil Duqm Development Company. “We will have a natural gas liquids (NGL) extraction plant in central Oman, connected via an NGL pipeline to a steam cracker in Duqm, similar to Liwa Plastics, except that the project size is far bigger.”
Speaking to the Observer, Al Kharousi said feasibility studies linked to the establishment of the petrochemicals complex have been completed with the company currently focused on the next steps for the implementation of the ambitious scheme.

A new fuel pricing structure adopted by Omani authorities earlier this year has negatively impacted the bottom-lines of fuel marketing companies operating in the Sultanate, according to a key industry executive. David Kalife, CEO of Oman Oil Marketing Company — wholly owned subsidiary of Oman Oil Company — said the reduced margins offered on motor fuels supplied from the new fuel logistics terminal at Al Jifnain have made a significant dent in the profitability of all three marketing companies.
“There’s a decrease in our profits,” Kalife said. Asked to quantify the extent of the impact, he added: “It’s a big one; we are not talking about a few percentage points; it’s impacting our bottom-line.”
The executive made the comments at a media roundtable hosted by the company to unveil its roadmap for growth over the next seven years through to 2025.

The Sultanate is making pace with global upgrade in aviation sector and trying to emerge as a major air cargo handler in the region. To achieve this aspiration, the stake holding authorities are working on development of cargo villages at all possible locations with state-of-the-art facilities and services. This was stated by Dr Ahmed bin Mohammed al Futaisi, (pictured) Minister of Transport and Communications, during his stay in Salalah where he launched the newly built air cargo terminal at the Salalah Airport and reviewed other ongoing projects.

Phase 1 of an ambitious effort to expand the waterfront capacity of Sohar Port and Free Zone (Sohar) has commenced, according to the industrial port’s Chief Executive Officer.
Mark Geilenkirchen (pictured) said Phase 1 of the Sohar Port South Development — as the expansion is dubbed — will add around 50 hectares to the industrial port’s current capacity of 2,000 hectares. A further 210 hectares will be added in Phase 2, effectively boosting the port’s capacity by around 10 per cent.
“Completion of Phase 1 is targeted in January 2019, while the Phase 2 capacity will be completed two years later,” said Geilenkirchen, adding that work is currently focused on moving sand accumulating on the coast into the sea where the expansion is envisioned. This will be followed by the dredging phase, the official told the Observer.

Oman LNG, the nation’s gas liquefaction flagship, is weighing a major debottlenecking of its Qalhat plant – a move that could potentially boost its LNG output by 1.5 million tonnes per year (tpy), according to a news report published by the Middle East Economic Survey (MEES). The weekly newsletter, focusing on Middle East Oil & Gas, among other topics, quoted Oman’s Minister of Oil & Gas, Dr Mohammed bin Hamed al Rumhy (pictured), as stating that a “serious increase” in majority-government owned Oman LNG’s output is in the works once the plant is suitably debottlenecked.

Petroleum Development Oman (PDO), the nation’s largest oil and gas producer, says it is pressing ahead with its Enhanced Oil Recovery (EOR) programme notwithstanding ongoing fiscal challenges posed by the constrained economic environment.
The programme, targeting difficult reservoirs that cannot be produced through primary and secondary means, involves the use of a range of commercial-scale technologies, including chemical EOR, miscible gas injection (MGI) and thermal applications. The goal is to boost the contribution from EOR-based production to more than 23 per cent of PDO’s total output by the year 2025, the majority government-owned oil and gas firm said in its 2017 Sustainability Report.
At the same time, PDO is also investigating a number of “novel EOR technologies” for their efficacy in unlocking difficult hydrocarbon resources. “This is being done through a series of dedicated laboratory and field testing programmes,” the company stated.
Notable among PDO’s chemical EOR initiatives in the Marmul Polymer project, Phase 1 of which came into operation more than seven years ago, delivering around 13.7 million barrels of oil since then. The second phase, centring on the injection of polymer into 19 additional wells starting in 2015, has delivered 840,000 barrels of oil to date. Both phases have contributed an average production of 5,755 barrels per day (bpd) of oil in 2017.

The State General Reserve Fund, Shell Gas and Power Developments BV (Shell) and EnerTech Holding Company signed an MoU yesterday to explore opportunities and to seek collaboration in development of various renewable energy projects in Oman and potential select geographies outside Oman. The MoU was signed at the Ministry of Oil & Gas premises in the attendance of Dr Mohammed bin Hamad al Rumhi, Minister of Oil & Gas, Mulham al Jarf, Chief Investment Officer signed on behalf of State General Reserve Fund (SGRF), while Maartin Wetselaar, Director & Executive Committee Member, signed on behalf of Shell, and EnerTech was represented by Abdullah al Mutairi, CEO.
The agreement covers upstream gas exploration and development, gas-to-liquids (GTL), liquefied natural gas (LNG) and renewable energies.
“The State General Reserve Fund is seeking to continue to diversify its portfolio, and aspires to contribute to the development of Omani capability in development of power projects in Oman,” the sovereign wealth fund said in a statement. “Through its New Energy’s division, Shell is growing its business portfolio and capabilities to deliver low carbon energy solutions including the pursuit of renewable energy projects.”
EnerTech, a wholly owned entity of the Kuwait Investment Authority, aims to promote renewable energy and energy efficiency technologies adoption throughout the region.
“Together, the parties shall identify structures in which the parties would jointly develop, invest in, construct, operate and maintain renewable projects and promote investment in cutting edge, cost competitive and commercially viable projects,” the wealth fund added.

Khazaen Economic City (KEC) LLC, the master developer of new integrated economic city in South Al Batinah Governorate, has announced that four international firms have submitted their proposals for the Economic City of Khazaen’s master planning and design work.
The short listed bidders are Atkins, Parsons International, KEO International Consultants and F & M Middle East Consulting Engineers.
Eng Kalat al Bulooshi, Chairman of Khazaen Economic City (KEC) LLC, said that the tendered contract includes the integrated urban planning of the city covering 51 million square metres, consultancy and engineering designs for infrastructures and utilities, preparation of tenders, analysis of construction proposals for vaious infrastructure work of the city.
The scope of work also includes supervising the implementation of the first phase of the infrastructure of the Khazaen.

Highlighting the growing emphasis on national food security, Sohar Port and Freezone have signed an agreement with Sohar Flour Mills (SFM) for the lease of a 10-hectare plot within the Port area for the construction and management of 12 grain storage silos, each boasting a storage capacity of 13,000 tonnes. Under the terms of the agreement, Sohar Flour Mill will also oversee the construction and development of a new agro bulk terminal and deep water berth which will be dedicated to handling the rapidly growing volumes of agro commodities moving through Sohar Port.
The Sub-usufruct Agreement (SUA) was signed on April 11 at a ceremony held at Sohar Port and Freezone offices. Signing the agreement on behalf of Sohar was the CEO, Mark Geilenkirchen & DCEO, Jamal Aziz; while Sohar Flour Mills were represented by Khamis Abdullah al Farsi, the Chairman of the Board, and Director, Ali Habaj.

Freezones and the economic zone of Duqm, the industrial cities and the main ports of Suhar, Salalah and Duqm posses great potential for huge foreign investments and are all poised to be sources of major national income in future, according to Yahya bin Saeed al Jabri (pictured), Chairman of the Special Economic Zone at Duqm (SEZAD).

Muscat Securities Market (MSM) and London-based Hayat Capital signed a memorandum of understanding (MoU) to provide advisory services for the development of the capital market sector in the Sultanate.
Ahmed bin Saleh al Marhoon, Director-General of the Muscat Securities Market, signed the agreement on behalf of MSM and Asif Malik on behalf of Hayat Capital.
The MoU aims to take initiatives to develop the capital market sector in the Sultanate, attract local and regional companies to be listed on the Muscat Securities Market, and promote the Elite training programme adopted by the London Stock Exchange.
The frameworks of public shareholding companies and the activation of their governance principles, as well as cooperation with relevant institutions and various financial institutions to develop the stock market.
Ahmed al Marhoon, Director- General of Muscat Securities Market, stressed the importance of the MoU in activating various aspects related to the development of the stock market. The company is one of the world’s leading institutions and has a par experience in securities. Thus serving the development of our markets.
He described Elite as one of the most advanced training programmes featuring a series of topics related to the development of human competencies in running SMEs as well as family businesses.

BP announced yesterday that, together with its partner the Oman Oil Company Exploration & Production, has approved the development of Ghazeer, the second phase of the giant Khazzan gas field in Oman.
The final investment decision (FID) for Ghazeer follows the successful start-up of Khazzan’s first phase of development in September 2017. This project, which started production ahead of schedule and under budget, is now producing at design capacity of around 1 billion cubic feet of gas a day (bcf/d) and around 35,000 barrels a day of condensate.
Yousuf al Ojaili, President of BP Oman said: “Following the successful startup of Khazzan, we are pleased to announce the sanction of Ghazeer, BP’s first project FID of 2018.
Through the transfer of industry-leading skills and technology from BP’s global portfolio, we look forward to further developing this gas field that is expected to support Oman’s energy needs for many decades to come.”
The Ghazeer project is expected to come on-stream in 2021 and deliver an additional 0.5 bcf/d and over 15,000 bpd condensate production. Drilling on the first three development wells has begun, following appraisal drilling on Ghazeer last year.

Landmark Group, one of the largest retail and hospitality conglomerates in the Middle East, Africa and India, has announced the expansion of Oasis Mall into Suhar and Salalah.
With over 7 malls across the GCC and another 4 in the pipeline, Oasis Mall, the leading neighbourhood shopping destination in the region, is set to open in end-2018 in Al Waqiba (Suhar) and Square G, New Industrial Area (Salalah), home to numerous hotels, restaurants, flats, and villas.
Built over a combined area of 33,000 square metres in Suhar and 35,000 square metres in Salalah, the malls are supported by Landmark Group’s vast history of creating innovative businesses, and utilising rich experience and expertise.
The upcoming malls will be located in vibrant communities and deliver an enjoyable experience to customers.
Oasis Mall will enhance its capabilities and cement its position as the market leader across the retail sector as a leisure and entertainment destination which will include over 90 outlets in Suhar and 43 outlets in Salalah.
Mark Ruffley, Business Head —Oasis Malls, said: “We are excited as we expand Oasis Mall in the historic cities of Suhar and Salalah in Oman. With malls across the region which are very unique because of their positioning and location, the bar is now raised as we look to enhance the experiential factor for consumers. Our mall will further expand the offerings and will be able to generate jobs in retail, food and entertainment. The expansion will not only contribute to Oman’s retail sector but also to the country’s overall economy.”

A Memorandum of Understanding (MoU) was signed between Sohar Port and Freezone and Netherlands-based Strukton International for the development of a revolutionary waste water treatment plant at the port.

The agreement was signed on the sidelines of the visit of Sigrid Kaag, Minister of Foreign Affairs and Minister for Foreign Trade and Development for the Netherlands, and Laetitia van Asch, Ambassador of the Netherlands to Oman.

The proposed treatment plant uses the new Verdygo modular technology for efficient and environmentally responsible waste water treatment. The new technology allows the treatment plant to rapidly scale operational capacity and deliver sustainable options for waste water reuse for industry or greenhouses, making a considerable reduction in traditional water and energy demands at the port and free zone.

Adding to the flurry of copper-gold projects that have made headway in their development in recent weeks, Australian mineral exploration firm Alara Resources has announced that it has been granted a key licence for its Al Hadeetha Copper Gold Project, which brings it a step closer in its longstanding quest to commence commercial mining activities in Oman. In an update issued over the weekend, Alara said its local joint venture company, Al Hadeetha Resources LLC, was issued an ‘Economic Activities Licence’ authorizing the mining of non-ferrous metal ores, including copper.
It follows a meeting, held at the Tanfeedh Office earlier in the week, involving representatives from the Ministry of Commerce and Industry and Ministry of Environment and Climate Affairs aimed at resolving licensing bottlenecks, among other issues. Alara and its local joint venture partner Al Hadeetha Resources are planning to construct a 1 million tonnes per annum (mtpa) copper concentration plant to process the massive quantities of copper deposits, with associated gold ore, uncovered at Washihi in North Al Sharqiyah Governorate.
Latest probable reserves at Washihi — the first of several mines being eyed for development in joint venture with its partners — are estimated at 9.7 million tonnes of copper deposits with a concentration of 0.88 per cent of copper and 0.22 gram/tonne of gold.

A master plan for developinig Sur Industrial Estate was completed by the Public Establishment for Industries Estates (PEIE), even as plans are afoot to establish four other industrial estates in different governorates.

Addressing the media, Hilal bin Hamad Al Hasani, Chief Executive Officer of the Public Establishment for Industrial Estates (PEIE), said that Sur Industrial Estate is expected to attract $2 billion investment, mainly from heavy industries. “A tender will be announced for the development of Nizwa and Sur Industrial Estates.”

Also, new industrial estates are planned in Thumrait, Musandam, Sinaw and Al Mudhaibi. These development plans are under feasibility studies.

Under the patronage of Salim bin Nasser al Aufi, Under-Secretary of the Ministry of Oil and Gas, Petroleum Development Oman (PDO) and GlassPoint Solar have inaugurated the Miraah solar plant yesterday. Miraah, located at the Amal oilfield in the south of the Sultanate, will be among the world’s largest solar projects when completed. Four blocks of the plant have now been constructed safely, on time and on budget with steam production integrated with the Amal network. The event also marked the official opening of the Miraah Visitor Centre with more than 200 guests in attendance, including representatives from both the public and private sectors.
“Today marks an important milestone for Oman as it further cements its position as the regional leader in energy convergence, uniting renewable and conventional energy industries. Deploying solar on Oman’s oilfields to reduce the industry’s natural gas consumption has a significant and lasting economic benefit for the Sultanate,” Al Aufi said.
Miraah will generate real In-Country Value (ICV) and create job opportunities for Omanis, largely from future supply chain development and gas savings directed to other industries. Al Aufi added, “The project, which stands to be among the largest solar projects in the world, has contributed to developing local Omani talent in the renewable energy field and created job opportunities for local companies. We look forward to exporting our knowledge and expertise to the rest of the world as other progressive oil and gas producers follow in PDO’s footsteps.”

Oman’s Public Authority for Mining (PAM) has announced that it is making headway in the delivery of its keenly-awaited initiative to offer ‘investment-ready’ mining concessions that — for the first time — will come bundled with all of the requisite government permits and clearances. Hilal bin Mohammed al Busaidy (pictured), Chief Executive Officer, said the first phase of the landmark initiative — aimed at pinpointing the presence of commercially exploitable mineral resources in the different parts of the country — has now been completed. “This is an initiative that the Public Authority for Mining is proud of,” said Al Busaidy. “We launched this project about a year ago in terms of defining blocks for every type of mineral across the country. We have completed the first stage, which is to determine the distribution of minerals in the different (governorates). This data has been communicated to the relevant government bodies to ensure there is no conflicting projects in those particular areas before they take us into confidence.”

Oman will play host to a high-level meeting of the various Islamic banking, finance and investment experts from across the world brainstorming on the diverse principles, products and applications of the noble banking system on March 14, 2018. Key personalities in the field will descend down on Oman as part of the conference aiming to share expertise with the local banks and other financial institutions here. Dr Salah Almajthoob, Managing Director, Jeyad Advisory WLL, and Noranuar Sajari Head of Shariah Structuring Bank Nizwa have been confirmed speakers in this one-day event.
According to Islamic Finance Development Indicator, Oman is currently in fourth place behind only Malaysia, Bahrain and UAE, even though it was the most recent country to adopt Islamic finance in GCC. Omani regulators have guided Islamic finance to growth and sustainability through effective legislation such as the Islamic Finance Regulatory Framework, published in 2015 by the Central Bank of Oman, which covers all aspects of Islamic banking. The framework has been well received internationally and is considered among the most stringent to govern Shariah compliant financing. Islamic banking professionals will lead the way to excel in the sectors of finance and investments to the next level by examining different products to cater the diverse needs of customers and also to look at key legal, documentation and Shariah non-compliance issues faced by Oman.

Mawarid Mining, one of Oman’s largest independent mining firms, envisions a potential investment of as much as $100 million in the development of copper deposits in its Block 1 and 2 concessions in North Al Batinah Governorate. The two blocks — part of Mawarid Mining’s portfolio of mineral assets in the Sultanate — were the subject of a joint venture partnership agreement signed by the company with Minerals Development Oman (MDO), a new national mining investment flagship, on Wednesday. The JV has committed to assessing and developing the copper reserves potential of the two blocks.
In remarks to the Observer, Tariq al Barwani, CEO of Mawarid Mining, a 60 per cent partner in the JV, said investments by the partnership will be based on a ‘stage-gate’ process typical of any project of this kind. “Stage 1 will entail an investment of around $1 million in exploration, and provided this stage is successful — and God willing it will be — we will then make a further investment of $5 million in detailed engineering, detailed design and detailed feasibility. Based on the success of this stage, we will go into mining operations, and that will mean a $50-100 million investment jointly by the partners.”

Bank Nizwa signed a financing agreement with Duqm Development Company LLC (DDC), a member of the Asyad Group (Asyad), to finance Phase 1 of the Duqm Frontier Town project. The project covers 23 hectares and comprises retail shops, recreational facilities and luxury units, of which 250 are residential apartments and 94 villas. The partnership comes as part of the bank’s strategy to diversify its expanding portfolio of corporate clients.
Commenting on the agreement, Khalid al Kayed, CEO of Bank Nizwa said, “At Bank Nizwa, we are committed to support the Government’s efforts by providing financing to projects of strategic importance in SEZAD. Collaborating with the DDC to finance this project highlights our commitment and provides an opportunity to expand the bank’s growing portfolio of corporate clients through offering alternative Sharia-compliant financing. As the trusted partner, this agreement further demonstrates our expertise in supporting the growth of key sectors in Oman. We are fully dedicated to provide our customers and stakeholders not only with value and personalised services, but mutually beneficial long term partnerships.”

Local Omani firm Elixir United Investment LLC, a subsidiary of the well-diversified business enterprise Al Jazeera International Group, is partnering with an Italian investment fund to develop a specialty hospital in Muscat Governorate at a cost of around RO 100 million.
This was revealed by Dr Amal al Ghailani, Project Manager — Elixir Investment, during the signing of an agreement between Elixir United Investment LLC and Italian engineering consultancy Sering International LLC [Oman Unit], for the conceptual design of the new specialty hospital project.
Signing on behalf of Elixir was its Vice-Chairman Mohammed bin Nasser al Hashar, while Sering International was represented by Sergio Di Maio, CEO & General-Manager of Sering International.

Driving tourism growth in the South Al Batinah Governorate, Millennium Resort Musannah by Omran, Oman’s Tourism Management Company, joined hands with Oman National Transport Company ‘Mwasalat’ to link the award-winning property to the Sultanate’s growing public bus network.

Despite volatility in the global maritime sector, Sohar Port and Freezone once again posted a year of consistent growth with an average of over one million tonnes of cargo handled by the port every week in 2017. Container traffic was up by 36 per cent compared to 2016, dry bulk throughput increased by 25 per cent year-on-year. Sohar Port received 3,075 vessel calls in 2017, marking a significant increase of 17 per cent, despite the continued global trend towards consolidation and larger ships. Details about the port and free zone’s stellar 2017 performance were revealed at Sohar Port’s annual Business Reception at The Chedi in Muscat last week.
One of the major highlights for Sohar Port in 2017 was the establishment of a 40-hectare food cluster at the port which will include a major flour mill, a world-class sugar refinery, and a grain silo complex. The former, operated by Sohar Flour Mills will have a capacity of 500 tonnes per day, while the planned sugar refinery, owned and operated by the Oman Sugar Refinery Company, will boast a production capacity of one-million tonnes per annum. Suhar now operates a terminal at the port dedicated exclusively for the food cluster.

An agreement was signed here yesterday between state-owned entities Oman Mining Company (OMCO) and Minerals Development Oman (MDO), with international mining investment firm EXO, for the exploration and development of copper and gold reserves in Block 10 near Yanqul in ِAl Dhahirah Governorate. The agreement was signed by Abdulsattar al Murshidi, Chairman of Oman Mining Company; Nasser Saif al Maqbali, Deputy CEO – Minerals Development Oman; and Kari J R Haataja, CEO & Managing Partner, EXO Mining. It will pave the way for investments of over $100 million over an initial three-year period targeting just 10 per cent of the potentially mineral-rich Block. According to Al Murshidi of OMCO, equity in the Yanqul project company will be shared as follows: OMCO — 29 per cent, MDO — 20 per cent, and EXO — 51 per cent.

The OPEC / Non-OPEC Joint Ministerial Monitoring Committee (JMMC) wrapped up its 7th meeting in Muscat here yesterday with a commitment to keeping in place an agreement to cut global oil production for the entirety of 2018. That agreement is enshrined in the ‘Declaration of Cooperation’ at which 24 OPEC and non-OPEC producers, including the Sultanate of Oman, pledged to cut a total of 1.8 million barrels per day (bpd) of crude from their aggregate production — a step that has helped accelerate the stabilisation of the global oil market. Just over 12 months since the landmark pact went into effect, compliance with the ‘voluntary production adjustments’ agreed by the 24 signatories averaged a remarkable 107 per cent per month in 2017, the JMMC — the high-level monitoring panel — announced here yesterday. The conformity level for December 2017 was a record-breaking 129 per cent — the highest since the Joint Ministerial Monitoring Committee was set up a year ago. Addressing international and local journalists at the conclusion of the daylong JMMC meeting, Saudi Energy Minister Khalid al Falih, who is Co-Chair of the Committee, said the high compliance levels boded well for efforts to drain the huge global inventories of crude built up in previous years — stockpiles that have held back a strong rally in international oil prices.

Muscat Securities Market (MSM) ended the year 2017 on negative note with the index declining by 11.82 per cent to close at 5099.28 compared to 5,782.71 at the end of December 2016. The MSM30 reached its highest level close during the year on February 22 at 5867.46 while the lowest level close touched was 4889.28 on August 17. Values closed up 3.5 per cent to RO 0.992 billion while the volumes dropped by 7.7 per cent at RO 4.27 billion. The MSM Shariah Index ended down by 17.88 per cent at 713.64. With respect to the number of trading days, there were 247 days in 2017 against 246 in 2016.
Sector wise all the indices closed down led by services index which closed down by 13.58 per cent at 2643.43 followed by Industrial Index which closed down by 7.75 per cent to close at 6833.39.
Financial Index dropped the least at -2.58 per cent at 7474.16. The market capitalization increased by 3.9 per cent during 2017 (i.e. RO 0.67 billion) to RO 17.95 billion.
During the year amongst the brokerage houses in Oman, Ubhar Capital closed the year as the number one brokerage house amongst 17 companies with a market share of 21.55 per cent.

Majority government-owned oil and gas producer Petroleum Development Oman (PDO) has revealed that a levy, amounting to 1.2 per cent of the value of every contract awarded by the company to contractors and vendors, is helping creating employment and training opportunities for Omanis. The levy applies to contracts raised after April 1, 2016, as well as request-for-quote purchase orders — an initiative stemming from the slump in international oil prices, the company stated in its monthly newsletter ‘Al Fahal’.
“The initiative means that contractors and vendors are now mandated to contribute 1.2 per cent of the gross invoiced value to the fund to sustain job creation and training support for Omanis in the oil and gas industry and beyond,” the company said, adding that the deduction occurs during the invoice processing stage.
Significantly, the 1.2 per cent deduction from the value of every contract will help fund PDO’s flagship National Objectives Programme — an initiative launched in 2011 in response to His Majesty’s call for the creation of jobs for Omani nationals. The programme has created as many as 35,000 employment and training opportunities across the Oil & Gas industry in Oman, according to PDO.
Exempted from the levy are contracts with government entities, ministries and public authorities. So too are company shareholders (such as the government, Shell, Total, Partex, and so on), and non-government organisations such as the Oman Society of Petroleum Services (OPAL). Real estate rental contracts also do not come within the purview of the measure.

The awards were organised by Apex Press and Publishing and winners were chosen by the general public. The award categories were expanded from ten to 26 for the 2017 edition and Omantel won in the telecom category for the second consecutive year.

The event was held under the auspices of H H Sayyid Tarik bin Shabib bin Taimur al Said and patronage of H E Dr Ali bin Masoud bin Ali al Sunaidi, Minister of Commerce and Industry.

In a press release, Said Salim al Shanfari, general manager - marketing communications and performance at Omantel, said, “We feel deeply proud and honoured to be voted as the most trusted telecom brand in Oman. Winning this award for the second year in a row displays the trust our customers have instilled in us. Customer centricity is at the core of Omantel’s offerings and customers have rewarded us with their loyalty. Our customers’ trust means a lot to us and Omantel will continue to provide them with valuable offerings and superior service to maintain this meaningful relationship.”

The Central Bank of Oman (CBO), as the administrator of the Bank Deposits Insurance Scheme (BDIS), yesterday conducted a presentation to the undergraduate students of the Sultan Qaboos University (SQU) and College of Banking and Financial Studies (CBFS) December 12, 2017.
The BDIS, which came into operation in 1995 through a Royal Decree is part of the “Financial Safety Net” and contributes to ensuring the stability of the financial sector in adverse situations. It is provided free of charge to depositors and shifts the burden of reimbursement in case of a Bank(s) failure from the Government to an independent system.
The key objectives of BDIS are: to provide comprehensive insurance coverage on specific deposits with banks operating in the Sultanate to encourage public savings; to boost and enhance the confidence of the public in the financial soundness of the banking system in Oman; and to minimise the impact of traditional risks in the operations of the banking system.
The BDIS Administration Committee planned and launched a two pronged Public Awareness Campaign, in order to educate the depositors as well as the general public about the presence and services of BDIS in 2012.

The Salalah Sanitary Drainage Services Company (SSDC) signed a loan agreement with Bank Dhofar on Wednesday to finance the rehabilitation project for its Raysut treatment plant, which aims to raise the average capacity of the main treatment plant from existing 35 thousand cubic metres per day to 53 thousand cubic metres with an ambitious processing target of 106 thousand cubic metres of water.
The signatories to the RO 14 million agreement were Shaikh Abdullah bin Aqeel al Ibrahim, acting Deputy Governor of Dhofar and Kamal Hassan Abdullah al Murazza, General Manager and Chief Wholesale Baning Manager of Bank Dhofar. Al Ibrahim signed the agreement in the capacity of the Chairman of the SSDC. The project is expected to be completed by the middle of 2019.
Ghali Almasashli, CEO of the SSDC, called it an “ambitious project of the fully government owned company, which aims to cover 95 per cent of the Salalah city by 2020.”
“Achieving 85 per cent Omanisation is one of our major achievements along with 900 km length of sewerage network and setting up of 31 main and sub pumping stations. The sewer service coverage ratio reached 90 per cent of the concession area in Salalah City as well as 70 per cent of the developed charts.
All these works could be completed in two phases at Raysut with a capacity of 35,000 cubic metres of water per day. The work at Jarziz had to be completed on a priority basis due to underground reservoir that feeds drinking water to Salalah city.

The Capital Market Authority (CMA) has announced the approval of the prospectus of the Sukuk Programme (Wakalah) of Golden Sukuk Company LLC to finance the undertakings of Golden Group Holding LLC for the issuance of sukuk at RO 200 million.
The subscription, planned in phases, will open with an initial issuance offering of 50 million Sukuk at RO 50 million by way of private placement. The prospectus states the term of the first series Sukuk is five years with a maturity in 2022 at a profit rate of 6.5 per cent for each Sukuk.
The Authority has also approved the prospectus for the capital increase of Bank Dhofar SAOG by offering 216 million shares by way of a rights issue (for the existing shareholders) at an issue price of 185 baisas per share comprising 100 baisas as nominal value, 83 baisas issue share premium and two baisas as issue expenses. More prospectuses are under considerations and will be finalised shortly, the Authority added.
Significantly, the IPO market in the Sultanate has witnessed considerable activity in 2017, with 12 approval of prospectus of a total value of RO 392.4 million in 2017.

In celebration of Oman’s 47th National Day, Ahmed bin Abdullah al Shuhi, Minister of Regional Municipalities and Water Resources, laid foundation stones for two key projects funded by Oman LNG in Sur. The projects include establishing a fishermen loading jetty at Al Barr and constructing a protection wall and walkway at Al Aijah.

Muscat City Desalination Company (MCDC), which is opening its initial public offering on Sunday, said the company plans to offer a projected dividend yield of 8.3 per cent for the first five years, considering the offer price of 116 baisas.

This compares with the average dividend yield of 5.9 per cent for the other power and water companies listed on the Muscat Securities Market (MSM). The shares will be listed on the MSM on January 2, 2018.

“The company benefits from stable and predictable cash flows. This is on account of the revenues being contracted on an availability basis with OPWP, which is owned by the Government, pursuant to a long-term Water Purchase Agreement (WPA) until 2034,” said Subrina Thiagarajah, CEO of MCDC. “It is also worth noting that a long-term offtake agreement for 20 years term is longer than the 15 years term typically prevalent for power companies in Oman. This would translate into cash flow visibility for a longer period for MCDC shareholders,” she added. The strong contractual framework for the sector has enabled MCDC to offer a steady and attractive dividend yield to investors.

Oman Telecommunications (Omantel) has won the bid to acquire 12.1 per cent of the issued share capital in Mobile Telecommunications Company (Zain), making Omantel the second largest shareholder in Zain Group, with a 21.9 per cent stake.

The acquisition creates a new digital telecom powerhouse, capable of leading digital transformation across the Mena region, said an Omantel release. The new group will be the third largest combined telecoms group in the Mena region, with 52 million customers.

“This is an historical moment for Omantel and Zain. Together, we have created a new regional telecoms group that will drive the digitisation of Oman and the wider region. Our new scale and diversification will allow us to focus on digital transformation, to generate further revenue growth and accelerate the introduction of innovative products and services that will enable our region to digitize,” said Talal Said Mahroon Al Mamari, chief executive officer of Omantel.

Petroleum Development Oman (PDO) and members of the Oman Chamber of Commerce and Industry (OCCI) have held a kick-off meeting to explore ways of boosting employment opportunities for Omanis.
The workshop examined possible ways of collaboration with business leaders representing a number of sectors of the economy including services, construction, tourism, logistics, investment, real estate, and the automotive industry.
PDO Managing Director Raoul Restucci gave around 20 senior executives, led by OCCI chairman Saeed Saleh Saeed al Kiyoumi, an overview of the Company’s activities, not least the goal of creating 50,000 job and training opportunities for nationals outside oil and gas from 2017-2019.
Restucci said: “PDO has strong relationships with the Omani business community and it is incumbent on all of us to work together to support His Majesty’s Government in addressing the key national priorities of creating employment for nationals while diversifying the economy.
“We have already generated thousands of job and training opportunities with key partners in a variety of industries but the private sector will need to continue to step up if we are to create meaningful and rewarding jobs for more than 40,000 young Omanis graduating or leaving education each year.”
Saeed Saleh Saeed al Kiyoumi said: “We are pleased to visit PDO, the largest oil and gas exploration and production company in the Sultanate of Oman. It is a leading company in supporting and qualifying the Omani cadres and has a long

Oman Development Bank (ODB) in association with Ministry of Agriculture and Fisheries organised a seminar on the bank’s role in investing on developing agriculture. The seminar focused on the benefits farmers can avail from agricultural loans provided by the bank, in addition to the facilitations provided for developmental loans to enhance agricultural production.
Mounir bin Salem al Hanaa’y, Manager in the Department of Seasonal Loans, presented a paper on the seasonal agricultural loans (Mawsimi) provided by the bank, pointing out that the bank gives high importance to loans for the promotion of agriculture as it is the pillar supporting the food security of the Sultanate of Oman. Moreover, this loan facility will help achieve self-sufficiency to maintain the agriculture crops and livestock, and help establishing and sustaining agriculture with added value and increase production.
The bank provides subsidised developmental loans for the agricultural sector in many fields; for example, establishing new farms, irrigation systems, expansion and development of farms; developing and maintaining farms, drilling wells for agricultural purposes and beekeeping.

Oman and China are strategic partners in developing both countries, according to China’s ambassador to Oman.

China and Oman trade annually is touching OMR8 billion, ambassador Yu Fulong revealed to Times of Oman, adding that the Chinese government had already pledged an extra OMR5b to Oman’s ambitious Duqm project

“China has, I think, already invested about two billion dollars in Oman, and we have much more planned for the future as well,” said Yu Fulong.

Oman LNG is embarking on further improvement at its plant, which will enable it to receive and process additional feed gas volumes in case such an opportunity arises.

A contract for the Front-End Engine Design (FEED) for the project was awarded to the US-based consultancy firm KBR few months ago.

“Additionally, due to differences in feed gas forms, such as in BP Khazzan, there are some upgrades required to the plant, which would allow it to run smoothly,” said Harib Al Kitani, chief executive officer of Oman LNG. KBR, which has expertise in developing LNG facilities, will also manage the project.

Oman Wanfang LLC, the developer and operator of the China-Oman Industrial Park under implementation at Duqm Special Economic Zone (SEZ), says it is in discussion with the Ministry of Oil & Gas for the gas requirements of the multibillion-dollar industrial investments planned at the Park.

In today’s competitive market place, it is universally recognised that the “Customer is King.” Sales and marketing teams, (and in some strong companies, the entire organisation) go out of their way to satisfy all their stated needs. However, is aiming for customer satisfaction good enough? Or should the goal be something larger, such as customer delight or to paraphrase Ken Blanchard, to create customers who are “raving fans?” And what exactly is the difference between customer satisfaction and customer delight?

Simply put, satisfaction is about meeting customer expectations; delight involves surpassing mere satisfaction and taking the experience to an emotional level.Keiningham and Vavra’s study on customer delight found a critical difference between satisfied customers and delighted customers.

Delighted customers were 86 per cent more likely to buy again as compared with 29 per cent that were merely satisfied. Delighting customers provides the brand with a competitive advantage, as well as increased sales and profits. A study by Reichheld and Sasser estimated that a 5 per cent increase in customer loyalty can produce an increase in profits ranging from 25 per cent to 85 per cent. The question is, how do you create delighted customers?

An action plan for the expansion and modernisation of Salalah Port, a key maritime and logistics hub on the Indian Ocean, is being firmed by Tanfeedh — the National Programme for Enhancing Economic Diversification in the Sultanate.
The Implementation Support & Follow-up Unit (ISFU) of Tanfeedh met last week to discuss the initiative, along with other proposals designed to strengthen the Sultanate’s capabilities as a regional logistics hub.
Officials representing a number of maritime and logistics stakeholders deliberated on the ongoing expansion and development of the General Cargo Terminal at Salalah Port, as well as initiatives to boost the cargo handling capabilities of the hub.
“Options were examined to enable the implementation agency to submit an integrated plan of action to increase the volume of goods,” said Tanfeedh in a tweet in reference to the expansion and development of the General Cargo Terminal.
As for the Salalah Port Expansion Initiative, the agency added: “It was agreed that the private sector would increase (cargo handling capabilities) by replacing the cranes with larger ones to cope with (the requirements of international ships calling at the port)”.

State-owned refining and petrochemicals flagship Orpic announced yesterday the launch of commercial operations of its Muscat Suhar Product Pipeline (MSPP) — a $320 million strategic investment that will deliver more than 50 per cent of Oman’s fuel via a state-of-the-art central fuel terminal and storage facility at Al Jifnain, just outside Muscat.
A tanker truck loading facility at Al Jifnain Terminal was brought operation yesterday, serving tankers operated by local fuel marketing companies. Fuels to the terminal are supplied by pipeline connecting Al Jifnain with Orpic’s Suhar Refinery.
“Al Jifnain Terminal will serve as new hub for fuel supply to local marketing companies. The terminal will start to commercially supply Aviation Fuel by the year end through a direct pipeline to support the requirements of Muscat International Airport,” said Orpic in a press statement.

National Life and General Insurance (NLGIC), which is floating its OMR21 million initial public offering (IPO) on October 22, plans to strengthen its footprint in less penetrated insurance market in the Gulf region, a top-level company official said here on Sunday.

Subscription for the IPO, one of the largest in Oman in recent years, will close on November 20, and officials stated that growth figures from the company balance sheets will help investor confidence.

The company is offering 66.25 million shares at an offer price of 320 baisas per share in accordance to the Capital Market Authority’s mandate. Also, 65 per cent of the IPO is reserved for retail investors and 35 per cent is reserved for institutional investors.

“We have achieved continuously rising growth trajectory over the past decade and have done very well in 2017. We have excelled in Gulf Cooperation Council (GCC) markets and now we are ready to penetrate into Kuwait insurance market,” S Venkatachalam, CEO of National Life and General Insurance said.

Wholly Omani-owned Oxea, one of the world largest manufacturers of oxo chemicals, has announced the successful conclusion of a refinancing deal that promises to position the company for stronger growth going forward. Monheim am Rhein (Germany) headquartered Oxea, which is 100 per cent owned by Oman Oil Company — the energy and strategic investment arm of the Omani government — is a global manufacturer of oxo intermediates and oxo derivatives, such as industrial alcohols, polyols, carboxylic acids, specialty esters, and amines. These products are used in the manufacture of a wide range of high-quality coatings, lubricants, cosmetics and pharmaceutical products, flavourings and fragrances, printing inks and plastics.
A statement issued at the weekend said that Oxea successfully closed a €900 million euro equivalent ‘first lien term loan’ comprises a €475 million euro-denominated tranche and a $500 million dollar-denominated tranche, both due 2024. The new term loan extends Oxea’s debt maturity profile and reduces the overall cost of debt, said the company. At the same time, Oxea also inked an agreement for an upsized €137.5 million six-year revolving credit facility.
Oxea CEO Dr Salim al Huthaili said the term loan and revolving credit facility would help the company achieve its strategic business and growth objectives. “The successful refinancing reflects the success of our forward-thinking risk management and the support from our board. With sustained momentum in performance and continued support from our shareholder Oman Oil Company, we now have a clear runway and great flexibility to implement our strategy underpinned by innovation, growth, and optimisation. Oxea will continue to generate strong cash flows and is well positioned for the next phase of its growth,” he said.

Oil prices rose for a third day on Wednesday on signs that markets are gradually tightening after years of oversupply, though the outlook for 2018 remained less certain.

Brent crude futures, the international benchmark for oil prices, were trading at $56.94 per barrel at 0948 GMT, up 33 cents. Brent closed 2 per cent higher the previous day.

US West Texas Intermediate (WTI) crude futures were at $51.37 a barrel, up 45 cents from their last settlement. WTI also closed 2 per cent higher on Tuesday.

"We have finally shifted fundamentally from build mode to draw mode," Barclays said in a note. "For now, inventory draws will continue to leave room for a geopolitical risk premium to reemerge."

New restrictions on the loading of trucks carrying mineral commodities from quarries in Dhofar Governorate to Salalah Port, among a general uptick in levies and logistics costs, are threatening to hurt the bottom-lines of mineral producers and exporters operating in the south of the country.
Some of these concerned were highlighted on the second day of the Mining Investment Middle East & Central Asia conference organised by Spire Events yesterday.
On average, around 10 million tonnes of mineral commodities — chiefly gypsum and limestone — are ferried by thousands of heavy trucks from quarries in and around Thamrait to Salalah Port every year. These numbers are projected to spike once new limits on the weight of trucks come into effect, a top industry executive has warned.
Dean Cunningham, CEO of Kunooz Oman Holding — one of the largest mining sector firms in the Sultanate, said the new guidelines announced by the Royal Oman Police reduce the volumes that may be trucked by road from 50 tonnes presently to 40 tonnes going forward. This would likely result in the registration of only 16-metre tippers in the future, as opposed to the 18-metre tippers that can presently be operated, he said.
“There is no clarity on when that rule will come into play, but it will have a distinct impact on our cost structure. The logistics nightmare just got worse,” he remarked at the Sheraton Oman Hotel yesterday.
Trucks make around 220,000 trips to move an estimated 10 million tonnes of mineral commodities from quarries to Salalah Port annually, according to the executive. This corresponds to 705 trucks plying on the main route to the port daily, while consuming around 23 million litres of diesel annually. With the reduction in truck sizes from 50 to 40 tonnes, the number of trips required to ferry the same quantity of minerals will rise significantly, while also adding 22 per cent to the logistics costs of mining firms when the new curbs come into force, he warned.

A pilot project to produce potash, which will be developed by Gulf Mining Group, is expected to start operation next year.

Gulf Mining Group is looking at a pilot plant to produce 20-40 tonnes of premium grade potash, similar to one of the peer groups in Australia.

“The capital expenditure for the pilot project is around $20 million to $40 million and we are looking at engaging Amec Foster Wheeler to conduct a feasibility study for the pilot plant in Oman,” Thomas Sinclair, managing director of Gulf Mining Group, said on the sidelines of second annual conference on Mining Investment Middle East & Central Asia.

Sinclair said that the company has to conduct a feasibility study for starting fully fledged commercial project, which is expected in 2022. The company has conducted a study on the project few years ago

Broad based profit taking impacted the MSM30 Index, which closed at 5,168.12 points, down by 0.87 per cent. The MSM Sharia Index ended at 755.94 points, down by 0.80 per cent. Bank Muscat was the most active in terms of both volume and turnover. The top gainer was Oman National Engineering, up by 1.42 per cent, while Construction Materials was the top loser, down by 12.90 per cent.

A total number of 356 trades were executed on Sunday, generating turnover of OMR1.50 million with 7.49 million shares changing hands. Out of 33 traded securities, 2 advanced, 19 declined and 12 remained unchanged. Omani investors were net buyers of OMR137,000 followed by GCC and Arab investors for OMR10,000 while foreign investors were net sellers for OMR147,000 worth of shares.

Expansion plans are under study by the board of Sohar Aluminum to increase capacity in line with Tanfeedh’s recommendations along with a strategy to grow downstream Aluminum sector in the Sultanate.

Oman`s National Plan for Economic Diversification, Tanfeedh, recommended a multimillion rial investment to increase the current production capacity of Sohar Aluminium that can establish more industrial activities while creating additional jobs in the capital-intensive industry.

“As Sohar Aluminum, we are proposing to expand our plant but this will require shareholder appetite to invest. It is under discussion in Tanfeedh as well. We are always hoping to expand, because the plant itself was designed from day one to have more than 1 pot line,” Said Mohammed Al Masoudi, CEO of Sohar Aluminum said in an interview with Times of Oman.

The average Middle East organisation faces high risk of ransomware attacks, which could cost nearly $1 million, industry experts commented on Wednesday on the results of a report released ahead of GITEX Technology Week in Dubai. Since the summer, hundreds of thousands of computers worldwide have been infected by the WannaCry ransomware, a malware that encrypts data and demands ransomware payment via Bitcoin currency, and the Petya ransomware, which encrypts the hard drive.
Worldwide, 30 per cent of companies have had ransomware infections, causing massive costs in sales and productivity, according to a recent survey by Imperva for security firm RSA. Data loss costs an average business $914,000, according to Dell EMC. News reports saying one recent cyberattack cost a shipping company $300 million.
Cybersecurity experts label malware an “arms race”, as hackers develop increasingly complex malware, and security vendors counter with stronger technology defences. “WannaCry and Petya malware attacks are not isolated incidents — every Middle East CIO needs to be prepared for malware attacks increasing in quantity and complexity, or risk massive losses,” said Savitha Bhaskar, COO at UAE-based IT infrastructure and information management consultancy and solutions provider Condo Protego.

Oman Gas Company (OGC), long the operator of the nation’s gas transportation system, has been positioned to take on a substantially enlarged mandate at the helm of newly restructured Oman Oil Company’s (OOC) Energy Infrastructure vertical.
A vision-strategy adopted by OOC for the new vertical envisions a significantly expanded remit for OGC, envisioning not only responsibility for the group’s midstream gas infrastructure business, but also its burgeoning oil and power infrastructure business streams as well, a top official said.

Oman`s insurance companies have achieved a 3 per cent growth in gross direct premium at OMR134.7 million in the first quarter of 2017, against OMR131 million for the same period of last year.

The Omani insurance market continued recording reasonable growth rates compared to the economic situation despite the financial measures undertaken to mitigate the impact of the falling oil prices which had impact on the projects executed by the government and activities of the private sector, according to a press release from Capital Market Authority (CMA).

An engineering, procurement and construction (EPC) contract to build Duqm’s first large-scale natural gas-fired power-cum-water desalination project is expected to be awarded in the first quarter of 2018.

The new project, which will have a ‘contracted capacity’ to generate 183 megawatts (MW) of power, along with a 9.5 million imperial gallons of water per day-capacity desalination plant, is being developed by Marafiq—the Sultanate’s first centralised utilities provider catering initially to the industrial zones.

The deadline for submitting bids by pre-qualified companies has been extended to September 15 from an earlier deadline of August 1. As many as eight pre-qualified companies are expected to submit their bids for building the power and water project, which will take three years to complete.

A delegation from Duqm Refinery recently visited the National Business Centre (NBC) at Knowledge Oasis Muscat (KOM) to get acquainted with the services and incentives offered by NBC.

Officials at NBC briefed the visitors on the vision of the centre, which is recognised as a milestone project for entrepreneurs in Oman that was launched by the Public Establishment for Industrial Estates (PEIE) in 2013 to offer promising Omani entrepreneurs a platform to develop their business ideas and advance them into growing ventures.

The centre offers an apt platform for Omani entrepreneurs by providing business development support and guidance, training and mentoring, access to markets and industry experts, and state-of-the-art and fully equipped office space, meeting rooms and presentation facilities.

NBC officials explained that the services of NBC are divided into three phases, comprising the pre-incubation, incubation phase, and acceleration phase. The centre seeks to facilitate and support the growth of investable ideas into successful businesses; build entrepreneurial skills through dedicated and focused training, coaching and mentoring; and provide business support facilities from office space, administrative support, financial support and consultancy services that are crucial in ensuring the success and survival of new ventures.

BankDhofar plans to float a rights issue worth OMR40 million to enhance the bank’s equity capital (tier I).

The decision was taken by the board at its meeting last week.

The bank said additional details about the rights issue of ordinary shares will be revealed when it is available.

Earlier this month, Bank Dhofar had said its consolidated net profit for the first half of 2017 stood lower at OMR22.69 million, down from OMR26.17 million, for the same period of last year.

The bank’s net loans and advances grew by 9.57 per cent to OMR3,113.21 million from OMR2,841.41 million during the period under review. Likewise, customer deposits registered a growth of 8.45 per cent to touch OMR2,977 million.

The bank’s operating income declined by 7.57 per cent to OMR62.20 million, from OMR67.29 million, and operating expenses were down by 6.15 per cent to OMR29.23 million, according to a disclosure statement posted on the Muscat Securities Market (MSM) website.

Bank Dhofar said its total assets grew by 4.77 per cent to OMR3,976.44 million by June-end 2017, from OMR3,795.42 million for the same period of the previous year.

Bank interest rates in Oman have increased in view of the tight liquidity situation and increased competition among banks for deposit mobilisation.

The weighted average interest rate on total deposits—both rial Omani and foreign currency deposits—rose to 1.423 per cent by the end of 2016, from 0.931 per cent in the same period of the previous year.

“While the average interest rate on foreign currency designated deposits remained more or less unchanged, marginally edging up from 0.894 per cent in December 2015 to 0.895 per cent at end-December 2016, interest rates on rial Omani deposits went up from 0.936 per cent to 1.493 per cent during this period,” the Central Bank of Oman (CBO) said in its annual report.

A unique system for mobile payment clearing and switching (MpClear) was launched on Sunday, said the Central Bank of Oman (CBO) in a statement. This will enhance the payment infrastructure of the country.

With the launch of this system, Oman is the first country within the GCC countries to implement such system under the Central Bank leadership.

It will also help attain one more milestone in providing a safe and secure fund transfer mechanism through the medium of mobile by just using a mobile number to complete the payment transfer instantly. This is expected to provide ease of use, convenience and further promote electronic payments in the Sultanate of Oman.

Galfar Engineering and Contracting Company, the Sultanate’s biggest contracting firm, said the company has bagged contract valued at OMR26.24 million for works related to traffic opening at Al Batinah Expressway project (package three). The contract was awarded by the Ministry of Transport and Communications, according to a disclosure statement posted on MSM website. The Ministry of Finance has accepted the contract signed between the company and the Ministry of Transport and Communications.

The completion period of the contract is 426 days in addition to 30 days for mobilisation.

Meanwhile, Galfar Engineering early this week said the group’s net profit for the first half of 2017 stood at OMR6,000 against OMR540,000 posted for the same period of 2016.

The group’s total revenue for the January-June 2017 period stood at OMR152.90 million, against OMR174.18 million for the same period of last year, while total expenses were pegged at OMR152.49 million, down from OMR173.23 million during the period under review.

National oil company Petroleum Development Oman (PDO) has made significant progress in developing the Bahja-Rima cluster field, which has more than seven billion barrels of oil in place.

This is expected to record a growth rate of 45 per cent in production to reach a level of 94,000 barrels of oil equivalent per day (boepd) by 2021 from conventional, low unit technical cost projects, said the Central Bank of Oman (CBO) in its annual report.

“Also, considerable developments have been made in the Bahja North and South fields, which contain oil-in-place in excess of 1.7 billion barrels,” the report noted.

The small fields provide an elevated opportunity to drive growth in a mature, low cost per barrel cluster. This is a very significant step, especially in the current challenging, and capital-constrained environment, the CBO report said.

Oman’s economy is expected to witness a slowdown in 2017, but the country is well placed to deal with the challenges posed by the economic slowdown in the short term, the Central Bank of Oman (CBO) said in its annual report released on Sunday.

The government has been proactive in undertaking various measures to address the macroeconomic challenges over the medium-term.

“Although oil prices are expected to further recover somewhat, Oman oil price would remain much lower than the external breakeven level. At the same time, planned fiscal consolidation is expected to slow down the growth of the non-hydrocarbon sector,” the report noted.

Lower hydrocarbon prices continued to weigh on the overall macroeconomic scenario in Oman, notwithstanding various reform measures undertaken by the authorities to improve fiscal balance, and promote economic diversification to reduce dependence on the oil sector.

Both the current account balance and fiscal balance remained in large deficit for the second consecutive year in 2016. The output in hydrocarbon sector declined significantly, while non-hydrocarbon sector output grew marginally in 2016.

Muscat City Desalination Company plans to float an Initial Public Offering (IPO) on the Muscat Securities Market (MSM) in the third quarter of this year.

Muscat City Desalination Company (MCDC), which owns and operates the 42 million imperial gallons per day (MIGD) capacity Al Ghubra independent water project, has to divest a stake in the favour of the investing public as per an agreement with the Oman government.

The company, according to highly placed sources at the Capital Market Authority, has sought approval for floating shares on MSM.

MCDC, which started operation in February 2016, was jointly promoted by Malaysia’s Malakoff International, Sumitomo Corp of Japan and Cadagua of Spain.

Oman’s total fish production grew by 5.4 per cent to 270,863 tonnes last year, from 257,001 tonnes in 2015, thanks to a robust growth in the catch of traditional fishermen.

The contribution of the traditional sector in fish catch grew by 5.2 per cent to 267,981 tonnes last year, up from 254,767 tonnes in the previous year. In terms of value, the traditional segment brought in OMR199.65 million in 2016, against OMR169.42 million for the previous year.

Coastal fishing constituted 2,721 tonnes, registering a growth of 34.5 per cent over the previous year.

According to earlier reports, the Sultanate’s fish catch, including production through aquaculture, is expected to double to touch 500,000 tonnes per annum by 2020.

Oman’s primary market will get a shot in the arm with three more insurance companies planning to open their share offer for subscription next month, close on the heels of Al Ahlia Insurance and Vision Insurance opening their Initial Public Offerings (IPOs) recently.

National Life and General Insurance, Oman and Qatar Insurance and Arabia Falcon Insurance are planning to open share offer subscriptions in August, according to reliable sources.

All insurance companies are offering 25 per cent of their paid-up capital to the investing public and institutions in one-month subscription.

According to sources, the three firms that are planning to float IPOs in August are awaiting approvals for their prospectus from the market regulator, which is expected soon. The issue manager for all the three issues is Ubhar Capital (U Capital).

Al Maha Petroleum Products Marketing Company has bagged two contracts valued at OMR91 million for supplying gas oil to Rural Areas Electricity Company (Raeco) and to build and operate a new fuel station for national transport company Mwasalat at its headquarters.

The first contract, valued at OMR73 million, is for supplying 380 million litres of gas oil to Raeco for a two-year period starting on September 1, 2017, Al Maha said in a disclosure statement posted on the Muscat Securities Market website.

The second contract, valued at OMR18 million, is for design, built, operate and maintaining a new fuel station for Mwasalat at its headquarters and also to supply fuel for all the buses, starting from May 31, 2017 for a period of 10 years or 100 million litres, whichever comes first.

The Special Economic Zone Authority at Duqm (Sezad) has granted Oman Tank Terminal Company (OTTCO) a usufruct right to construct Ras Markaz crude oil storage terminal.

OTTCO is one of Oman Oil Company’s subsidiaries, the investment arm for the Sultanate of Oman in the field of oil and gas industry.

The agreement was executed on behalf of Sezad by Yahia bin Said bin Abdullah Al Jabri in his capacity as the chairman of the board and on behalf of Oman Tank Terminal Company by Eng. Isam bin Saud Al Zadjali, CEO of Oman Oil Company and Said bin Hamoud Al Maawali as the director of OTTCO

The establishment of Ras Markaz crude oil storage terminal falls under the Sultanate`s promising plan for economic diversification and maintaining a crude oil storage terminal for Oman and as an endeavour to make Oman become an international centre for the storage of crude oil and its derivatives leveraging its geographic location alongside the Indian Ocean.

Ooredoo Oman has announced that from the second quarter of 2017 it will be issuing a consolidated group financial statement, combining its standalone financial statement and that of Duqm Data Centre SAOC (D2C) CRN 1222701, in which Ooredoo Oman has a 51 per cent shareholding.

D2C is a joint venture with Navlink, OHI and the Ministry of Defence Pension Fund (MoDPF) created to reinforce Ooredoo Oman’s data leadership position and to support the fast-paced digital transformation of the Sultanate.

This future-focused new company provides a complete cutting-edge portfolio of essential core data services. These include co-location hosting; managed and advanced hosting; business continuity and disaster recovery; managed storage, security and LAN; infrastructure and software as a service; consulting in systems and network integration.

Already operational and benefiting from the state-of-the-art digital infrastructure of Ooredoo and its partners, D2C has plans in place for a network of purpose built next generation data centres in strategic locations across Oman.

Octal has announced that its recycling capacity for polyethylene terephthalate (PET) resin, bottles, pre-form and sheet flakes will exceed 90,000 metric tonnes per annum by the end of 2017.

To achieve this milestone, the company’s Salalah and Cincinnati plants will raise their processing of PET to over 10,500 kilograms (kg) every hour, returning the product to its original condition and creating an uncompromised sustainable material that can be used in the fabrication of PET packaging.

“Our innovative proprietary recycling and treatment technology is making it possible for us to recycle PET at this rate, while generating a prime product that exceeds all minimum direct food contact requirements for PET packaging,” said Sean Brown, director of Operations Salalah at Octal.

“This breakthrough not only took the quality of the recycled PET material to a new level of purity but has raised the capacity of Octal’s two on-site Vacurema recycling units in Salalah from 3,450 kg per hour to 6,450 kg per hour, paving the way for this year’s achievement.”

The market revenue for materials handling equipment in the GCC, which was worth $3.78 billion in 2014, is set to maintain a compound annual growth rate (CAGR) of over 4 per cent while reaching an estimated $4.8-5 billion in revenues by 2020, according to research by analysts Frost & Sullivan.

Saudi Arabia, with about 46 per cent and the UAE with 35 per cent, make up the largest markets in the region and are expected to continue to spearhead market expansion going forward, the report said.

Key drivers for the continued expansion in demand for materials handling equipment, continues to be the ongoing focus of the Gulf Cooperation Council (GCC) countries in large-scale infrastructural and logistics development, including that of key transport and shipping hubs, export processing and free zones as well as the high dependence of many of these countries on imports of goods and services that calls for increased reliance on materials handling and logistics facilities.

In the present dynamic tax environment, KPMG in Oman continues its initiative to provide its insights into important tax developments to the public at large, through a fortnightly series of articles contributed to the Times of Oman. In this article, we delve into some of the amendments made by Royal Decree 9/2017 (‘RD 9/2017’) in various timelines provided under the Income Tax Law promulgated under Royal Decree 28/2009 (‘the Tax Law’).

Adapting to changes in the economic environment and being in line with market demand, the Fund for Development of Youth Projects (Sharakah) announced on its social media accounts, some updates related to their regulations and norms.

Starting from July 1, 2017, Sharakah will increase its fund limit from OMR200,000 to OMR350,000. Few other changes have also been introduced, including a reduction in the interest rate for the Bill Discounting Scheme and increase in the credit period.

Abdullah Al Jufaili, general manager, Sharakah said, “Every year, we conduct a survey that is distributed to all our clients, where we assess their level of satisfaction to the services offered to them. We always invite them to suggest areas for improvement. The changes that we are introducing now are in response to those suggestions; changes in the market and to be in line with our long-term objectives.”

The MSM30 Index decreased 0.54 per cent to close at 5,220.94 points. The MSM Sharia Index ended at 771.57 points, down 0.39 per cent. Al Madina Investment remained the most active in terms of volume while Bank Muscat led in terms of turnover. Up 3.85 per cent, Voltamp Energy was the top gainer while Sembcorp Salalah was the top loser, down 4.35 per cent.

A total number of 459 trades were executed on Monday, generating a turnover of OMR3.16 million with 17.6 million shares changing hands. Out of 35 traded securities, 6 advanced, 15 declined, and 14 remained unchanged. At the session close, GCC & Arab Investors stayed net buyers for OMR492,000 while Omani Investors remained net sellers for OMR333,000 followed by Foreign Investors for OMR159,000 worth of shares.

Oman’s benchmark MSM30 Index opened the week on a stable note and closed at 5,249.24 points, up 0.02 per cent. The MSM Sharia Index increased 0.13 per cent to end at 774.59 points. Al Madina Investment was the most active in terms of volume while Bank Muscat led in terms of turnover. The top gainer was Gulf Investment Services, up 3.53 per cent while Bank Muscat was the top loser, down 1.02 per cent.

A total number of 351 trades were executed on Sunday, generating a turnover of OMR2.25 million with 11.2 million shares changing hands. Out of 32 traded securities, 6 advanced, 2 declined, and 24 remained unchanged. At the session close, GCC & Arab Investors stayed net buyers for OMR73,000 while Omani Investors remained net sellers for OMR54,000 followed by Foreign Investors for OMR19,000 worth of shares.

Financial Index ended at 7,890.74 points, up 0.09 per cent. Gulf Investment Services, Oman United Insurance and Oman & Emirates Holding lost 3.53 per cent, 2.41 per cent and 0.93 per cent respectively. Bank Muscat, down 1.02 per cent, was the sole sector loser.

Roughly a third of Oman’s total natural gas supply was utilised in oilfield-related operations in 2016, primarily as a fuel resource and also for re-injection into oil wells as part of enhanced oil recovery (EOR) projects, according to the Ministry of Oil & Gas.
Figures published by the ministry placed the oilfield sector high on a list of major gas consumers of the year. Around 12.44 billion cubic metres (bcm) of gas, representing 30 per cent of the total supply (locally produced and imported volumes) of 40.85 bcm, was devoted to oilfield operations and related uses. In some oilfield areas, significant volumes of gas are used for generating steam necessary for thermal EOR projects.
But topping the list of consumers was the three-train liquefied natural gas (LNG) plant operated by Oman LNG at Qalhat near Sur. The company, which has long-term commitments to supply LNG to key markets in Europe and the Far East, accounted for 12.98 bcm of gas, representing 32 per cent of total supply. In its liquefied form, the gas yielded around 8.5 million tonnes of LNG in addition to some 254,000 tonnes of condensates.
Ranked third in order of demand was the nation’s burgeoning power generation and water desalination sector, accounting for 20 per cent of total gas consumption (8 bcm) in 2016. A close fourth was the heavy industrial and petrochemicals sector, distributed around Suhar, Sur and Salalah (6.8 bcm). Industrial parks administered by the Public Establishment for Industrial Estates (PEIE) consumed a mere 0.65 bcm of gas last year, representing one per cent of the total.

State-owned coastal maritime transportation services provider National Ferries Company (NFC) has urged Omani businesses to make the most of its world-class, high-speed ferries to enhance trade and commercial links with destinations along its expanding network. The appeal came at a forum held under the patronage of Dr Ahmed bin Mohammed al Futaisi, Minister of Transport and Communications, at the Cultural Club in Qurum on Monday night. A panel discussion on Public Transport featured representatives from Mwasalat, National Ferries, and the Ministry of Transport and Communications.

The Special Economic Zone Authority in Duqm (SEZAD) has issued new regulations to enhance the participation of small and medium enterprises (SMEs) in the development of the SEZ. This is in accordance with the recommendations of the SME Development Symposium held in Seeh Al Shamikhat in January 2013, the Authority said in a statement.
The new guidelines, which came into force earlier this week, tasks the newly established Department of Partnership and Development (DPD) with ensuring that Omani SMEs benefit from government contracts and projects implemented within the SEZ.
Under the new regulations, contractors are obliged to place advertisements in local daily newspapers featuring details of the subcontracts earmarked exclusively for SME contractors and vendors. The Partnership and Development Department, for its part, will work in coordination with the consultant and project manager of each project to ensure that contracting opportunities reserved for SMEs are suitably publicised during the implementation phase.
Additionally, contractors are obligated to source their requirement of construction machinery and equipment solely by Omani citizens in line with SEZAD regulations. In this regard, priority shall be given to local inhabitants of the Wilayat of Al Duqm, followed by those of other Wilayats in Wusta Governorate. Likewise, equipment and machinery required for any contract may be procured from the local market. If unavailable locally, imports will be permitted only in coordination with the Partnership and Development Department.

Bank Sohar successfully closed a $250 million three-year syndicated term loan facility in line with current strategies to maintain good credit capacity.The facility will be used for general funding purposes and to extend maturities of liabilities profile. Acting as the sole book runner and coordinating bank is Bahrain-based Bank ABC.
Prior to general syndication, Abu Dhabi Commercial Bank PJSC, Axis Bank Limited and Commerzbank Aktiengesellschaft joined the facility as Initial Mandated Lead Arrangers. The Facility was significantly oversubscribed with a total of 13 banks participating from the GCC, Europe and Asia.
Commenting on this strategic association, Sasi Kumar, Acting CEO of Bank Sohar said, “As part of our strategy to continue seeking new opportunities for growth and utilising our liquidity in the most efficient and effective manner, it gives us great pleasure to be one of the participating banks in this syndicated loan.
The success of the syndication is evidence that the bank maintains good credit capacity despite the local and regional market liquidity challenges. As one of the prominent banks within the country, we have also managed to successfully attract new investors to the loan facility.
Syndicated loans offer flexibility in structure and pricing. Borrowers have a variety of options in shaping their syndicated loan, including multi-currency options.

Following a successful roadshow which covered core fixed income investors in the US and UK, Oman Electricity Transmission Company (OETC) announced that it has raised a $500 million from the international bond market recently.
The bonds are listed on the Irish Stock Exchange and the issuance was managed by OETC and Nama Holding along with JP Morgan and Bank Muscat; acting as Joint Bookrunners. The bonds, which will expire in 2027, are a 10-year Reg S/144A bond issued at a fixed interest rate of 5.196 per cent. The issuance is rated Baa1 (stable) by Moody’s and BBB (stable) by Fitch.
Given the strong indications of interest received from the market after the Initial Price Thoughts at Mid-swap plus 300 bps, the bond received an oversubscription of eight times, and therefore, the pricing was tightened by 15 bps to Mid-swaps + 285 bps. At the issuance stage it was oversubscribed by 6.5 times with an order book of 326 accounts, reflecting the positive market perception for OETC’s credit and the Government of Sultanate of Oman.
“We are delighted with this achievement and the strong interest from the international markets which reflects the investor confidence in OETC, the sector and the Sultanate,” said Eng Ali al Hadabi, CEO of OETC.
The final order book comprised of 31 per cent Asian investors, 24 per cent European investors, 16 per cent UK investors, 14 per cent US investors and 14 per cent from the MENA region. The composition of the investors was 46 per cent Fund Managers and 49 per cent private and public banks while Insurance funds, pension funds and agencies formed the balance 5 per cent.

Oman Drydock Company (ODC), which owns and operates a major ship repair yard at Duqm, is set to join hands with a trio of prominent international marine engineering services providers in an ambitious bid to add new market segments to its portfolio of ship repair and maintenance services. While two of the companies in question are based in Singapore, a global hub for ship repair and marine engineering services, the third is headquartered in the Far West, said Dr Ahmed al Abri (pictured), ODC Deputy CEO — Operations.

The Government of the Sultanate of Oman made its inaugural foray international public Sukuk markets via a $2 billion 7-year Sukuk issuance on May 23, 2017. The Sukuk follows the Sultanate’s $5.0bn multi-tranche bond priced earlier this year. The transaction witnessed strong investor interest with the orderbook peaking at approximately $6.9 billion, with over 300 participating accounts.
The transaction was noteworthy in a number of ways and was able to fulfil several of the Sultanate’s key objectives: (I) Establishing a tight and liquid Sukuk benchmark; (II) Funding a significant part of the expected 2017 fiscal deficit; and (iii) Investor Diversification — this transaction was able to achieve sizeable well diversified investor interest across investor types and geographies with approximately 50 per cent distribution into Islamic investors and 72 per cent of the deal being sold into Asia and the MENA region.
Despite coming close on the heels of a credit rating downgrade by S&P from ‘BBB-/Negative’ to ‘BB+/Negative’ the transaction saw significant demand from a global investor base, reaffirming investors’ continued confidence in the Sultanate’s long-term credit fundamentals.

Rural Areas Electricity Company (Raeco) is planning a gas-fired independent power project (IPP) with a generation capacity of 78 megawatt (MW) in the Musandam governorate of Oman, according to a seven-year outlook statement from the Oman Power and Water Procurement Company (OPWP).

“The current plan is to bring these units online once total demand (in Musandam) increases beyond 100 megawatt, which, as per Raeco’s demand forecast, is expected to be in 2019,” added the seven-year outlook.

A private developer, who wins the concession agreement through a competitive tender, will build the project for selling electricity to Raeco. The capital expenditure for the project is not known.

Peak demand

Oman Drydock Company (ODC) has invited potential supply partners to its Duqm facility to outline its approach to blasting and painting activities, which are essential to deliver services to ship owners across the world.

The event, which was hosted by Andrew Chapell, ODC’s head of supply chain, was attended by senior representatives of regional and local suppliers. Chapell was supported by a team drawn from across the business, which had been instrumental in ensuring that the company’s needs were fully captured, according to a company release.

Chapell welcomed the delegates and provided them with an overview of the plans for the development of Duqm’s special economic zone. With ODC being seen as the key to regional success, he emphasised the broader business opportunities that would be created with the growth of the Al Wusta region.

Oman`s insurance companies have achieved a 3 per cent growth in gross direct premium at OMR134.7 million in the first quarter of 2017, against OMR131 million for the same period of last year.

The Omani insurance market continued recording reasonable growth rates compared to the economic situation despite the financial measures undertaken to mitigate the impact of the falling oil prices which had impact on the projects executed by the government and activities of the private sector, according to a press release from Capital Market Authority (CMA).

The increase in insurance premiums was spurred by positive turnout for individual life insurance products and health insurance and other insurance products, which increased by 15 per cent. Individual life insurance topped all insurance schemes with a 30 per cent growth in the first quarter, continuing a growth process started in 2016. This was due to option given to borrowers for insuring their bank loans.

Oman’s central bank has raised OMR47.27 million by way of issuing government treasury bills.

The total value of the allotted treasury bills amounted to OMR47.27 million, for a maturity period of 91 days, from May 31 to August 30, 2017.

The average accepted price reached 99.729 for every OMR100 while the minimum accepted price arrived at 99.725 per OMR100. The average discount rate and the average yield reached 1.08654 per cent and 1.08950 per cent, respectively.

The interest rate on the Repo operations with Central Bank of Oman (CBO) is 1.545 per cent for the period from May 30, 2017 to June 5, 2017 while the discount rate on the treasury bills discounting facility with CBO is 2.295 per cent for the same period.

The treasury bills are short-term highly secured financial instruments issued by the CBO on behalf of the Government, which helps the licensed commercial banks to gainfully invest their surplus funds, with added advantage of ready liquidity through discounting and repurchase facilities (Repo) offered by the Central Bank.

Shares on the Muscat bourse edged down on listless trading. The MSM 30 Index was relatively stable and closed at 5,385.21 points, down 0.03 per cent. The MSM Sharia Index gained 0.21 per cent to end at 791.35 points. Al Madina Investment was the most active in terms of volume while Bank Muscat led in terms of turnover. Al Izz Bank was the top gainer, up 2.50 per cent, while Al Anwar Holding was Monday’s top loser, down 0.98 per cent.

A total number of 543 trades were executed on Monday, generating a turnover of OMR2.93 million with 19.26 million shares changing hands. Out of 35 traded securities, 5 advanced, 8 declined, and 22 remained unchanged. At the session close, GCC & Arab Investors switched to net buyers for OMR296,000 while Omani Investors were net sellers for OMR206,000 followed by Foreign Investors for OMR90,000 worth of shares.

Al Baraka Oilfield Services has one of the most impressive in-country value (ICV) and corporate social responsibility (CSR) portfolios in the Sultanate.

The firm is one of Oman’s leading Super Local Community Contractors (SLCC) for the south of the Sultanate offering innovative and reliable oil field services.

The company`s annual in-country procurement stands at OMR4.3 million and has awarded sub-contracts worth OMR1.5 million per annum to many of the 147 registered LCCs so far.

On the CSR front, Al Baraka allocates tens of thousands of Omani riyals per annum for various CSR activities. To promote education, the company has instituted the School Excellence award in coordination with the Ministry of Education for the best schools in the Wilayat of Shaleem and Juzur Al Halaniyat. Further, the company has sponsored 10 Sultan Qaboos University students for the Injaz Oman competition, and has also sponsored many projects of this nature.

Oman plans to build a mobile desalination project, with a capacity to produce 100,000 cubic metres of water per day (22 million imperial gallons per day or MIGD) to meet temporary shortages for potable water in different parts of the country.

The country’s Public Authority for Electricity and Water (PAEW) has requested Oman Power and Water Procurement Company (OPWP) to start ground work for the water desalination project, which will be mounted either on land transport vehicles or sea-faring barges, providing mobility to various sites according to water demand, said a seven-year outlook statement released by OPWP.

Such plants may be modular in nature and can be mounted either on land transport vehicles or sea-faring barges.

“PAEW is awaiting government approval prior to authorising OPWP to issue a tender. If PAEW receives the Ministry of Finance’s approval, OPWP may begin procurement in 2017,” added the seven-year outlook.

Oman Hotels and Tourism Company plans to invest OMR100 million in building 10 three-star and four star-hotels over the next five years, which will have a total of 2,000 hotel rooms.

Addressing the media to announce the massive expansion programmes, Mohammed bin Abdullah Al Khonji, chairman of Oman Hotels and Tourism Company, said the agreements for two hotel projects—a four star-hotel with 220 rooms at Al Khuwair, and a three-star hotel with 200 rooms in Duqm—will be signed within two months. The Al Khuwair hotel will have an investment of OMR13 million, while the Duqm hotel will cost OMR7 million.

The new hotels, which are planned for Muscat and other cities, will cater to the growing demand for additional hotels rooms from tourists and business travellers. According to a study conducted by KPMG, the inflow of foreign tourists will increase to 11 million by 2040, from 1.4 million now.

“Tourism will be the second major sector, after oil. Oman is ready for attracting tourists and the private sector has to undertake the initiative and risk,” added Al Khonji.

The new hotels, which are part of the listed company’s five-year business plan, will be developed in close cooperation with international brands.

Opec will likely agree to extend production cuts for another nine months, delegates said on Tuesday as the oil producer group meets this week to debate how to tackle a global glut of crude.

Opec`s leading producer, Saudi Arabia, favours extending the output curbs by nine months rather than the initially planned six months, as it seeks to speed up market rebalancing and prevent oil prices from sliding back below $50 per barrel.

On Monday, Saudi Energy Minister Khalid Al Falih won support from Opec`s second-biggest and fastest-growing producer, Iraq, for a nine-month extension and said he expected no objections from anyone else.

Saudi Arabia`s Gulf ally Kuwait said on Tuesday not every Opec member was on board for an extension to March 2018, from the initial cut-off of June this year, but most delegates in Vienna said they expected a fairly painless meeting on Thursday.

Several Independent Power Projects (IPP), which are completing their contractual period in the next few years, will be renegotiated for new contract terms by the Oman Power and Water Procurement Company (OPWP).

These power projects include the Al Kamil independent power project and the Barka independent water and power project. Last year, OPWP had finalised negotiations with the owners of Al Kamil IPP (280 megawatt) and Barka IWPP (388 megawatt) for extending the contracts to 2021, which are subject to final government approval.

OPWP is currently developing a new capacity procurement methodology that will allow existing generators and those near their contract expiration, to compete for new long-term contracts.

For planning purposes, their current capacity is nominally assumed to be what may be offered for extension.

“All these plants are currently expected to compete for new power and water purchase agreement contracts,” OPWP said in its seven-year outlook statement.

Shares on the Muscat bourse edged down on selling pressure towards the end of the session. The MSM30 Index closed at 5,407.74 points, down by 0.14 per cent. The MSM Sharia Index ended at 791.24 points, down by 0.01 per cent. Al Madina Takaful remained the most active in terms of volume while Oman Telecommunications Company (Omantel) led in terms of turnover. Takaful Oman, up by 1.18 per cent, was the top gainer while Taageer Finance was the top loser, down by 4.35 per cent.

As many as 417 trades were executed on Sunday, generating a turnover of OMR1.53 million with 7.6 million shares changing hands. Out of 39 traded securities, five advanced, 13 declined, and 21 remained unchanged. GCC and Arab investors were net buyers for OMR235,000 while foreign investors were net sellers for OMR209,000 followed by Omani investors for OMR26,000 worth of shares.

Oman’s natural gas production and imports edged down by 1 per cent to 13,532 million cubic metres (MNCM) for the first four months of 2017, compared with 13,670 MNCM in the same January to April period of last year.

Natural gas production is expected to increase substantially once BP starts commercial production from its Khazaan tight gas project, which is expected in the fourth quarter of this year.

Of this, non-associated gas and imports eased by 0.4 per cent to 11,261 MNCM, while associated gas production fell by 4 per cent to 2,271 MNCM, according to the latest statistics released by the National Centre for Statistics and Information (NCSI).

A sizeable portion of natural gas in Oman is used by various mega-industrial projects. During the January to April period of this year, it stood at 8,173 MNCM, slipping from 8,179 MNCM for the same period of last year. Natural gas is also used in oilfields, either as fuel or for re-injection.

Oman’s first integrated light industries park, Sandan, has achieved tremendous progress in building the facility near Mabela, which will open for customers in the third quarter of 2018.

Around 70 per cent of the structural works at the industrial park, which will cater to automobile and building material businesses, is complete now, Said Nasser Al Rashdi, chief executive officer of Sandan Development, told journalists on Wednesday.

More than 1,000 units are undergoing finishing activities to ensure the timely delivery of the project, said Mohamed bin Sulaiman Al Kindi, chairman of Sandan Development.

The purpose-built shops are mainly for automobile and building material industrial shops and the total cost of the project in the first phase is estimated at OMR60 million, while the total cost for two phases will be around OMR100 million.

The industrial park, which will have more than 250,000 square meters of space, will accommodate 2,200 workshops and showrooms for building materials and automobiles, 400 offices and 1,800 residential units for workers. “The residential units are designed in studio-apartment style to accommodate people working in workshops and other shops,” said Al Rashdi.

The automobile units include used car showrooms, spare parts units, garages, auto electricians, tyre vendors and accessory units, while construction related units include sanitaryware shops, ceramic tile shops and carpentry and aluminium workshops.

“The industrial park will have the largest number of used car showrooms, in a siingle location in Oman. There will be around 56 used car showrooms, which will be able to sell 1,100 cars at the same time,” he added.

Oman Orix Leasing Company’s shares touched their maximum ceiling during a single trading session for the second consecutive session in a row on Tuesday, following an attractive cash buyout proposal from National Finance at a price of approximately 173 baisas per share.

This is part of the merger proposal between the National Finance Company and Oman Orix Leasing Company.

Oman Orix Leasing shares surged by 10 per cent (the upper ceiling permitted by the Muscat Securities Market, which is also a circuit breaker) to touch 143 baisas amid 190,800 shares changing hands on Tuesday. The company’s shares touched its upper ceiling on Monday as well, after National Finance announced its cash buyout plan.

Oman Orix on Sunday said the company’s board has agreed ‘in principle’ to the cash offer, which equates to a price of 1.2 multiples of the closing book value of Oman Orix Leasing by the end of the first quarter of 2017.

The proposed cash offer is subject to approvals from the shareholders of both National Finance and Oman Orix Leasing and from relevant regulatory authorities.

Oman fully supports a proposal by Saudi Arabia and Russia to extend a global oil supply cut until the first quarter of 2018, its oil minister Mohammed bin Hamad Al Rumhy said on Monday.

Saudi Arabia and Russia, the world`s two top oil producers, agreed on Monday on the need to extend oil output cuts for a further nine months until March, 2018 to rein in a global crude glut, pushing up prices.

Organisation of Petroleum Exporting Countries (Opec) and non-Opec countries last year decided to cut daily production by 1.8 million barrels for the first six months of 2017. As part of the deal, Oman decided to slash its output by 45,000 barrels per day until June this year.

Oman plans to limit its crude oil production to 970,000 barrels per day (bpd) this year instead of an original plan of 1,001,000 barrels a day, if the ongoing capping on output continues for the rest of the year. This was against last year’s average oil production of 1,004,300 barrels per day.

In partnership with the Ajit Khimji Group from Oman, WHSmith has won three tenders to run a total of seven stores in the new Muscat International Airport passenger terminal. This important move cements WHSmith’s market-leading status for News, Books and Convenience (NBC) format stores in airports across the Middle East. WHSmith already has airport stores in the UAE, Qatar, Jordan, Saudi Arabia, Kuwait and Oman, with the current Oman store being located in the existing Muscat airport terminal.
These seven stores will add 5,972 square feet to WHSmith’s footprint outside the UK, with this consisting of five NBC stores, one Landside Express by WHSmith convenience store and one Memories of Oman souvenir store. The souvenir store will be the first of WHSmith’s new look and feel ‘Memories Of’ store in the region. The WHSmith Express store will also be the first of its format to open in the Middle East.

Two of Oman’s cement producers—Raysut Cement Company and Oman Cement Company—have formed a new cement firm.

The new joint venture company, Alwasta Cement Company, proposes to set up a new cement project in the near future, subject to a detailed feasibility study, Raysut Cement said in its first quarter report posted on the Muscat Securities Market (MSM) on Tuesday.

Another joint venture promoted by Al Anwar Holding and an Iranian firm is also planning to build a cement project in Duqm.

Although cement producers in the Sultanate are facing tough competition from the neighbouring United Arab Emirates (UAE), demand for cement in the Al Wusta region is expected to grow substantially due to proposed infrastructure and industrial projects in the Duqm free zone and adjoining areas.

Since transportation cost is high for cement, Duqm is an ideal location for cement producers to meet the requirements of the Al Wusta region.

The construction sector in Duqm, which is getting a boost from several projects, including a refinery, a petrochemical complex, China’s industrial zone, fisheries zone and roads, is expected to drive demand for cement in the coming years.

Al Anwar Holdings last week said it had entered into a shareholder’s agreement with Iran-based Hormozgan Cement Co. (HCC) for building a green field cement grinding unit in the special economic zone in Duqm with a capacity of 0.6 to 1 million tonnes per annum (mtpa).

HCC is a well-known Iran-based cement producer, with an established capacity of 2 mtpa and is listed on the Tehran Stock Exchange. Total investment for the project is expected to be OMR10.5 million, with optimal debt and an equity mix. However, commissioning for the project is subject to receiving approvals from relevant regulatory authorities and required funding from banking institutions in Oman.

Oman Wanfang, which is the master developer of the China Oman Industrial Park in Duqm, plans to invest OMR400 million in the next five to seven years for developing basic infrastructure within the industrial park.

Oman Wanfang, which is a consortium of six Chinese private firms, manages 1,172 hectares of land, which will house Chinese industries in Duqm. A foundation stone for building the industrial zone was laid last month.

Also, in a major push for the ambitious development programme for the Duqm free zone, 10 Chinese firms signed land lease agreements last month for building various projects, totalling an investment of $3.06 billion.

Petroleum Development Oman (PDO) has awarded two key contracts, valued at around OMR300 million, to Omani businesses for work in the north of its operations in the Sultanate.

Under the terms of the deals, off- plot mechanical work will be carried out by local community contractor (LCC) Seeh Al Sarya Engineering at PDO oil fields at Fahud, Lekhwair and Yibal, and by Galfar Engineering and Contracting at Qarn Alam.

Both companies have pledged to uphold PDO’s rigorous standards on safety, quality project delivery and ICV, including the development and Omanisation of other LCCs and small and medium enterprises (SMEs).

“We are committed supporters of building local companies which are capable of competing locally, regionally and internationally,” said PDO managing director Raoul Restucci.

“Local companies play an instrumental role in supporting and diversifying the country’s economic growth, and PDO is delighted to support Omani companies which are staffed with committed professionals and are able to deliver great work in our fields, safely and efficiently.”

The contracts, which were signed at a ceremony at PDO’s Mina Al Fahal headquarters in Muscat, will run for four years, with options to extend into the future.

Seeh Al Sarya Engineering and Galfar Engineering & Contracting will largely be responsible for providing off-plot mechanical work. Working closely with PDO’s national objectives programme, both contracts will provide some 700 job opportunities for Omanis, who will be trained and developed to international standards. They will also provide business opportunities to LCCs and SMEs via or beyond the minimum ring fence scope of the contracts.

Port of Salalah has signed a memorandum of understanding (MoU) with SASCO International for Logistics Services to develop comprehensive logistics solution for enhancing bilateral trade with Yemen via Mazyunah.

SASCO group, one of the leading companies in Yemen, has set up an office in Salalah to offer logistics solutions for the growing trade to and from Yemen via Salalah. It has also laid the foundation stone for a dry port in Mazyunah Free Zone, which has attracted strong interest from a diverse group of investors, according to a press release.

The cooperation agreement with Port of Salalah aims at leveraging the network connectivity, transit time advantages available at Salalah and the expertise of SASCO to provide a compelling value proposition to the Yemeni trade.

The MoU laying out the framework of cooperation was signed by David Gledhill (CEO) of Salalah Port Services Co. and Mohammed Thabit, the chief executive officer of SASCO International for Logistics Services.

“Yemen is a strategic hinterland for Port of Salalah. We believe that the proximity and excellent connectivity combined with the dry port in Mazyunah can provide a very cost effective and efficient logistics chain for the trade to Yemen. Such cooperation will facilitate anchoring a wider customer base in Salalah and provide new business opportunities for local businesses. We continue to engage all the stakeholders to ensure a smooth supply chain for the Yemeni customers via Salalah,” said David Gledhill, chief executive officer of Port of Salalah.

Port of Salalah is operated by APM Terminals as part of the APM Terminals Global Terminal Network, and APM Terminals holds a 30 per cent share. The Port of Salalah is one of the biggest integrated ports in the region with a container capacity of 5 million TEU, dry bulk capacity to 20 million tonnes and liquid bulk capacity to 6 million tonnes.

A major conference on the real estate sector – Oman Real Estate Conference – will be held on May 15 and 16 at Hotel Grand Millennium. The conference is organised by Oman Real Estate Association (OREA).

“We want to create a constructive platform for the real estate sector where the relevant stakeholders, including the policymakers, regulators, real estate developers, real estate management and broking companies along with the allied sector can work together for the sustainable growth of the industry by exchanging knowledge on best practices, optimizing emerging business opportunities, and finding solutions to challenges,” said Eng. Mohammed Salim Khalifa Al Busaidi, chairman of OREA.

Oman Real Estate Conference has been patronised by the key government bodies and private sector players for the improvement of the real estate industry. The event will be attended by a cross-section of the top officials from the relevant ministries, public and private sector enterprises, and industry bodies.

Al Anwar Holdings has entered into a shareholder’s agreement with Hormozgan Cement Co. (HCC), Iran to establish Hormuz Al Anwar Cement SAOC for building a greenfield cement grinding unit in the special economic zone, Duqm with capacity of 600,000-1,000,000 tonnes per annum(TPA), according to a disclosure statement posted on MSM website.

HCC is a well-known Iran based cement producer with established capacity of 2 million TPA and listed on the Tehran Stock Exchange (SHZG1).

Total investment for the project is expected to be OMR10.5 million with optimal debt and equity mix. Commissioning of the project is subject to receiving approvals from relevant regulatory authorities and required funding from banking institutions in Oman. “This is a strategic investment for Al Anwar in the industrial sector in Oman and we expect to create value for shareholders in the long term from the investment,” said the statement.

A Chinese firm is joining hands with an Omani investment fund to build a large solar panel project in Duqm, which will have a capacity to manufacture panels for power plants to generate 1,000 megawatt (MW) energy per annum.

Ningxia Zhongke Jiaye New Energy and Technology Management Co. has signed a memorandum of understanding (MoU) with Oman Investment Fund to build the $94 million-solar panel venture in Duqm free zone. Ningxia Zhongke will have a 51 per cent stake, while the remaining 49 per cent ownership will be held by Oman Investment Fund, the president of Ningxia Zhongke, Li Li, told Times of Oman.

Crowe Horwath Oman, an auditing and accounting firm, has called for creating effective corporate governance practices, especially in view of the economic slowdown and reductions in budget expenditures.

Addressing the Corporate Governance and Fraud Deterrence event organised by Crowe Horwath Oman at the Al Bustan Palace Hotel last Wednesday, the firm’s managing partner, Davis Kallukaran, said, “Under the current tight situation, expenditure on effective internal controls is the first to be curtailed. However, it is the duty of the people in charge to ensure that effective corporate governance practices are established across the company. Effective corporate governance is the need of the day to prevent fraud.”

Also speaking at the event, Mubeen Khan, advisor at the Capital Market Authority, , explained, “World over, about 5 per cent of global GDP is lost to fraud every year. The Capital Market Authority is keen to empower the directors by creating awareness on the effectiveness of best practices in corporate governance.”

Oman Oil Refineries and Petroleum Industries Company (Orpic) on Thursday laid the foundation stone for its $688 million-natural gas liquids extraction plant in Fahud, which is part of the $6.4 billion-Liwa Plastics Industries Complex (LPIC).

The natural gas extraction unit, which is the third engineering, procurement and construction contract (EPC 3) for building the whole project, is located in Fahud in the Al Dahirah governorate.

Orpic had already started work on LPIC’s $2.8 billion steam cracker unit (EPC 1) and $888 million polypropylene and polyethylene units (EPC 2) last year in Sohar.

The ground breaking ceremony was held under the auspices of Sultan bin Salim Al Habsi, secretary-general of the Supreme Council for Planning and chairman of Orpic’s Board of Directors, in the presence of a number of officials and community members from the Wilayate of Ibri, Orpic’s Chief Executive Officer (CEO) and top management, as well as representatives from the contracting companies GS Engineering and Construction, and Mitsui & Co. Ltd.

“We are delighted to celebrate the ground breaking of the LPIC EPC 3 to build a state-of-the-art Natural Gas Liquids (NGL) extraction plant. LPIC is a key project for developing the downstream industry in Oman in order to enhance the petrochemicals industry and keep pace with the growing demand for plastics in the Sultanate and the region,” said Al Habsi.

Oman Oil Company Exploration and Production (OOCEP) and Shell Exploration have signed a Heads of Agreement (HoA) to collaborate on Oman Block 42.

Under the agreement, an initial aerial study will be carried out, before potentially undertaking further and more focused activities in the block, according to a press release.

This cooperation in Block 42 is the first such project between OOCEP and Shell in Oman.

The two companies are already partners in the Pearls joint venture in Kazakhstan. Block 42 comprises an area of about 25,600 square kilometres, which could hold hydrocarbon potential in several geological plays.

The agreement was signed for OOCEP by Isam bin Saud Al Zadjali, chief executive officer at Oman Oil Company, and for Shell by Chris Breeze, Shell’s country chairman in Oman.

“We are pleased to join up with Shell to further assess the exploration potential of Block 42. I see the signing of today’s HoA as creating an important platform with a world-renowned international upstream company like Shell. OOCEP has been very successful in its exploration programmes and I trust this success will continue,” Al Zadjali said.

Oman’s neighbouring country, the United Arab Emirates (UAE), retained its position as the main destination of the country’s non-oil exports in the first eleven months of 2016.

The Sultanate’s non-oil exports to the UAE touched OMR559.7 million, which constitutes 24.95 per cent of the total OMR2,243.1 million non-oil exports of the country in the first eleven months ending November, according to the latest statistics from National Centre for Statistics and Information (NCSI).

However, Oman’s exports to the UAE showed a decline of 2.4 per cent in the first eleven months of 2015, compared to the same period of previous year.

According to NCSI, India is the second largest importer of Omani products, followed by Saudi Arabia, China and Yemen.

Oman’s gross domestic product (GDP)at market prices fell by 5.1 per cent to OMR25,489.8 million in 2016 from OMR26,850.3 million in the previous year, according to preliminary data released by the National Centre for Statistics and Information (NCSI) on Sunday. The fall in economic activity (or the fall in value of goods and services produced in the country) was mainly due to a drastic drop in crude oil prices in the international markets.

“The major reason for this fall is obviously a decline in oil prices in 2016. Average price of Oman Crude was $40.1 per barrel last year,” said S Suresh Kumar, head of research at Al Maha Financial Services.

As a result, petroleum activities slumped by 23.7 per cent to OMR6,988.8 million in 2016 from OMR9,157.3 million in the previous year. Among the hydrocarbon sector, crude oil activities dropped by 27.5 per cent to OMR5,799.2 million from OMR7,999, while natural gas revenue edged up by 2.7 per cent to OMR1,189.6 million, according to NCSI.

Muscat-Sohar Pipeline project (MSPP) has achieved an important safety milestone by recording 10 million human hours without Lost Time Injury (LTI).

This project is one of the most important strategic and investment growth projects for a company in its location in Al-Jifnain.

Andres Suarez, general manager, Orpic Logistics, Orpic, said, “Safety is our number one priority. We have a diligent and experienced team, which is committed to ensuring the construction and future operation of this project is achieved to its highest standards. We believe that all incidents can be avoided. We have a wide range of tools to help us but it all starts with our attention and commitment. We believe that tomorrow is our reward for working safely today.”

The Muscat-Sohar pipeline project (MSPP) is expected to be fully completed by the fourth quarter of 2017. It project will deliver numerous social, economic and environmental benefits, including: providing job opportunities for Omanis and improving road safety, reducing pollution by reducing truck traffic by 70 per cent; and support the Muscat International Airport’s expansion. In addition, many more flow-on benefits in economic and strategic terms for the Sultanate will also be realised.

Omani investors are eagerly waiting for Initial Public Offerings (IPOs) of four insurance companies, which are expected within the next three to four months.

According to sources, Oman and Qatar Insurance, Falcon Insurance, National Life Insurance and Al Ahlia Insurance Company are getting ready to come out with their IPOs in line with a Central Market Authority (CMA) regulation.

In fact, CMA has approved a request from insurance firms to offload a minimum of 25 per cent stake of promoters, instead of the normal 40 per cent disinvestment carried out in IPOs.

Most of the insurance companies have already appointed issue managers and the share offers will be floated one after the other.

Market sources said there is enough liquidity in the market and the investment funds are waiting for suitable investment avenues.

An integrated, mix-use project in Al Mawaleh—Mazaya Residence—was launched here by the promoters of Al Mazaya Holding on Tuesday.

The first phase of the residential-cum-commercial project will have 120 residential units and 28 shops.

“Sprawled over a total space of 23,194 square metres and divided into 12 commercial-cum-residential plots, the project boasts residential units, including one-bedroom, two-bedroom, and three-bedroom flats and shops of varying sizes with high-end amenities and landscaped areas and nature,” said Ibrahim Al Soqabi, chief executive officer (CEO) of Al Mazaya Holding.

The company will develop the project over different phases, the first of which was announced under the name ‘Zone 1.’

The project is strategically located near key shopping malls and trade centres in Muscat, including City Centre, which is located only a few minutes away. The amenities of the residential project include swimming pools, health clubs and tennis playgrounds. The project stands out as an attractive opportunity for investment or housing.

The International Facility Management Association (IFMA) in collaboration with the Royal Institution of Chartered Surveyors (RICS) is bringing the World Workplace Forum to Dubai for the first time.

World Workplace Forum: Middle East will bring together senior level FM experts, strategies and solutions in an interactive, one-day learning and networking event at the Shangri-La, Dubai on May 18, 2017.

The theme of the event is “Dispelling the Myth: Strategic Facility Management vs traditional Facilities Maintenance.” Attracting an international delegation of high profile senior professionals, FM experts and decision makers, the event will explore how international best practices can influence asset management strategies in the region.

An increase in corporate income tax to 15 per cent, from 12 per cent has started hitting the net earnings of companies in the first quarter of this year.

Companies that have announced their financial results for the first quarter of 2017 said they have taken into consideration the revised tax rates. As many as 47 listed companies, including major banks, such as Bank Muscat, Bank Dhofar, National Bank of Oman, Bank Sohar and ahlibank, which are listed on the Muscat bourse, have announced financial results for the first quarter so far.

The increase in tax rate will have a negative impact on dividend distribution as well from this year. Withholding tax on dividends to non-residents might affect the distribution policy of power utilities as the majority shareholders of these companies are foreign non-resident entities.

Out of the OMR452 million collected as corporate income tax in 2015, 28.5 per cent was contributed by the Muscat Securities Market-listed companies.

The Tender Board on Wednesday held its 3rd meeting under the chairmanship of Dr Rasheed bin Al Safi al Huraibi, Chairman of the Tender Board, and approved RO 21,816,075 million worth of tenders for the following projects:
1 Providing technicians for operation and maintenance of equipment at Ibra Hospital and health institutions in the Governorate of North Al Sharqiyah for a period of five years at RO 3,568,297.
2 Renewal of leasing contract of the building of the National Centre for Statistics and Information in the Wilayat of Bausher in the Governorate of Muscat at RO 530,399.
3 Renewal of leasing contract of the building of the Public Authority for Consumer Protection in the Wilayat of Bausher in the Governorate of Muscat at RO 458,730.
4 Renewal of leasing contract of the building of the directorates of the Ministry of Awqaf and Religious Affairs in the Wilayat of Bausher in the Governorate of Muscat at RO 367,200.
5 Renewal of leasing contract of the building of the Secretariat-General of the Administrative Affairs Council for Judiciary at RO 334,286.

National Life & General Insurance Company plans to offer 25 per cent of its shares to the investing public through an initial public offering (IPO) before August this year.

The company has already initiated a process to float the share offer by forming a committee and people are working on it, S Venkatachalam, chief executive officer of National Life & General Insurance, told the Times of Oman.

The IPO is in line with a government stipulation for national insurance firms in Oman to float shares before August this year. And the Sultanate’s market regulator Capital Market Authority (CMA) had recently approved a request from national insurance companies to offload a 25 per cent stake of promoters, instead of the normal 40 per cent disinvestment made during such IPOs.

Apart from National Life & General Insurance, four other insurance firms—Al Ahlia Company, Oman and Qatar Insurance, Vision Insurance and Arabia Falcon Insurance Co. (which was earlier known as Falcon Insurance)—are expected to float shares on the Muscat Securities Market (MSM) within four to five months.

Duqm Refinery, a 50:50 joint venture between the Sultanate’s state-owned Oman Oil Company and Kuwait Petroleum International, is seeking 65 per cent of its $7 billion capital expenditure for building the refinery from international and local lending institutions, a top-level official of the Kuwaiti firm told journalists. He was talking to journalists after signing a joint venture agreement for building the 230,000 barrels per day capacity refinery here

Oman Air’s contribution to the national economy was estimated at about RO 600 million in 2016, as the national carrier continued to leverage its expanding network to drive tourist traffic to the Sultanate as well as facilitate business travel, the Chairman of the airline’s Board of Directors said. Darwish bin Ismaeel al Balushi, who is also Minister Responsible for Financial Affairs, noted that the establishment of a modern airport in Muscat is set to position the Sultanate for stronger growth in the air travel and aviation business.
“As a national carrier, one of our mandates is to contribute to the economic growth of the Sultanate by creating ‘air bridges’ with brotherly and friendly countries to bring tourists from abroad, which is supporting tourism, and creating business opportunities between national businessmen in Oman and abroad,” al Balushi said.
“The infrastructure to do this is now practically fully available; Muscat’s new airport is nearing completion after the opening of the new passenger terminal in Muscat, meaning that the home base for Oman Air will be state of the art,” he added in an overview of Oman Air’s annual financial report for the year ended December 31, 2016.

A foundation stone laying ceremony for the Sino-Omani Industrial City will be conducted in the Special Economic Zone of Duqm on April 19.

The ceremony will be attended by Wang Heshan, deputy governor of Ningxia Province, Yahya bin Said Al Jabri, chairman of the Special Economic Zone Authority of Duqm (Sezad) and officials from the Sultanate and China.

Oman Wanfang LLC is the main investor in the project, which will come up in an area of about 1,172 hectares. During the ceremony, Wanfang Oman will sign agreements with several Chinese companies to carry out various projects, including methanol, diesel, and a tourism projects.

According to an earlier report,the proposed industrial city in Duqm is expected to attract as much as $10 billion worth in investments by 2022.

Oman plans to start work on a state-of-the-art refinery with a capacity to refine 230,000 barrels per day of crude oil towards the end of the year, a top-level official at the Ministry of Oil and Gas told the Times of Oman.

Duqm Refinery, which is a 50:50 joint venture between Oman and Kuwait, is expected to take four years to complete the work, said Salim bin Nasser Al Aufi, undersecretary at the Ministry of Oil and Gas, on the sidelines of Oman Downstream Exhibition and Conference here on Tuesday.

Ready by 2021

“I assume that it will take four years (to complete the work), which means the refinery will be ready by 2021.”

The undersecretary said the government is now evaluating EPC (Engineering, Procurement and Construction) bids submitted by potential contractors for building the refinery in Duqm.

The winning company will be announced after careful evaluation of the bids.

As much as 65 per cent of crude feedstock for the refinery will be from Kuwait, while the remaining 35 per cent will be supplied by the Sultanate.

Oman’s cabinet will study a proposal to partially compensate poor families who are unable to afford rising petrol prices after the government eliminated subsidy on petroleum products early this year. This follows suggestions for supporting such families.

A cap on petrol M91 grade price will continue until the Cabinet takes a final decision, said Al Aufi.

“They (the Cabinet) need more information,” he added.

However, he declined to give details of the proposal.

Al Aufi said that removal of fuel subsidy early this year will save OMR250 million for the government this year.

The undersecretary said that the ministry has taken several initiatives to redeploy local workers who lost their jobs.

“We are trying to find job opportunities for Omanis within the oil and gas industry or outside.”

With the commissioning of expanded refining facility at Sohar refinery, the crude oil consumption within Oman will increase to 27 per cent of total production. This will result in a reduction in export of crude oil.

An expansion project to double chicken meat capacity at A’Saffa Foods will be completed by the end of 2018.

A’Saffa Foods plans to raise production capacity to 40,000 tonnes from 20,000 tonnes with a capital expenditure of OMR45 million, the company said in its annual report. The expansion programme is aimed at meeting growing demand for A’Saffa products.

The company’s net profit for 2016 was OMR4.45 million, down from OMR5.79 million in the previous year, owing to an increase in land lease rental and difference is feed subsidy of OMR0.719 million in 2016, compared with the previous year.

The company’s board has proposed a cash dividend of 20 per cent for 2016, which is subject to an approval by shareholders at the annual general meeting scheduled to be held on March 29.

A’Saffa Foods, in its directors’ report, also said there is a huge influx of cheap imported meat products in the market. However, the company has maintained its market share inspite of the cheap imported products in the market and spike in input costs.

A whopping investment of $1 billion is being planned by Oman’s state investment arm, Oman Oil Company, and its subsidiaries to build various projects this year, according to a top-level official of the state-owned firm.

These projects include various upstream and downstream oil and gas projects across the country.

The major projects of Oman Oil Company (OOC), which are in different stages of planning and implementation, include Salalah LPG project, an ammonia project (expansion of Salalah Methanol unit), Duqm gas pipeline, Sohar-Wadi Al Jissi gas pipeline, a mega crude storage facility at Ras Al Markaz (near Duqm) and several other projects in Duqm free zone.

“Salalah LPG project has already been approved by the board and we are negotiating with banks for a financial closure in the next few weeks. We are also going to recommend to our board an ammonia project, which is a (downstream) expansion of Salalah Methanol project,” Isam Al Zadjali, chief executive officer of Oman Oil Company, told journalists on the sidelines of an event to sign a production sharing agreement for developing block 48 oil field.

All major works at the Duqm port will be completed by the last quarter of 2019, paving the way for it to become operational as a full-fledged port at by the beginning of 2020. With all major remaining packages awarded in recent months and the award of a contract for a liquid berth expected soon, the port is on track to become a fully-functional facility by the said date. The contracts awarded recently include gates, superstructure, remaining work at terminals, buildings for the port and dredging work.

“With the authority awarding several packages for building the port, foreign investors are confident that they will now be connected to the rest of the world. Lately, there has been a growing interest among foreign investors about the port,” Reggy Vermeulen, chief executive officer of the Port of Duqm, told the Times of Oman. “We have set a base for the flow of investment.”

Oman’s Khazzan tight gas project is on schedule to start first natural gas production on commercial basis in the fourth quarter of this year, according to a top-level official at the Ministry of Oil and Gas.

Located on a previously undeveloped desert site 350 kilometres south of Muscat, work on the Khazzan tight gas project began in 2014 and the completed development will eventually contribute roughly a third of Oman’s natural gas supply.

“All wells are being drilled. Hopefully by June, we will start commissioning of the plant and in August, one of the gas processing trains will start operation and the second one will follow suit,” said Salim Al Aufi, undersecretary at the Ministry of Oil and Gas, while addressing the fourth Argus Middle East Crude Conference here last week.

Although the plan is to drill 50 wells initially to start commercial production, more than 300 wells will eventually be drilled over the lifetime of the project. BP has plans in place with extensions for contributing 1.5 billion cubic feet of gas per day to the Omani economy.

Muscat-based listed firm Oman Refreshment Company SAOG (ORC) yesterday announced the launch of a new line of ‘ready to eat’ bakery products in the Sultanate.
The new range, marketed under the brand name ‘Eurocake’, includes croissants, cupcakes, chocolate chip brownies, muffins and pound cakes.
Youssef Ezzikhe, Chief Executive Officer, stated that the company is “selectively diversifying its product portfolio to meet the discerning tastes and preferences of its valuable consumers, with high quality products that are competitively priced”.
Leveraging on the Company’s logistics and distribution strengths, the company expanded its food products range into the bakery product category with the addition of ‘Eurocake’ bakery items.
Oman Refreshment owns franchise rights for the PepsiCo range of beverages for the Sultanate of Oman. The company presently has seven production lines that churn out various beverages in cans, PET bottles, non-returnable glass bottles and Tetrapak juices. It also trades in various consumer packaged goods such as snack foods, potato chips, oat cookies, pasta and soups.
ORC achieved a net profit after tax of RO 7.81 million on a turnover of RO 59.07 million during the nine month period ended on September 30, 2016 compared to a net profit after tax of RO 7.05 million on a turnover of RO 58.28 million for the corresponding period of last year. Revenue increased by 1.4 per cent during the nine month period of 2016 compared to the corresponding period in 2015.

Oman’s Ministry of Environment and Climate Affairs (MECA) has initiated steps to revamp its environmental licensing and permitting procedures with a view to making them more “facilitatory” to mining development and mineral processing investment in the Sultanate.
The move, according to a high-level official, is the centrepiece of a new policy framework that aims to address a broad swathe of environment-related issues associated with mining and extractive industrial activities in the Sultanate.
On the anvil is an all-encompassing regulatory framework underpinned by, among other things, amendments to existing environmental legislations, potentially new statutes, planning controls, a new liability regime, and greater clarity on the roles and responsibilities of stakeholder agencies, said Prof Steve Halls, Senior Environmental Expert, MECA.
“It is clear that the challenges the mining industry faces, particularly from the standpoint of the approvals and permitting processes, have perhaps not impeded, but neither have been facilitatory in moving projects forward. At MECA, we are trying to adopt a different approach; we are trying to be more pragmatic and find solutions by working together with the industry to address the environmental challenges that may arise as a result of mining projects,” the expert stated.
Speaking at the Oman Mining & Minerals Exhibition & Conference last week, Prof Halls said the proposed regulatory framework will stipulate measures to prevent pollution and contamination of land, as well as guidelines for the closure and rehabilitation of mines. Additionally, it will set out mechanisms to identify, record, investigate, manage, remediate and report on pollution, he pointed out.
Importantly, the credo ‘The Polluter Pays’ will remain a key guiding principle of MECA’s approach to environmental conservation and safety, the expert stressed.

Removing the fuel subsidy early last year has resulted in a marked decline in demand for both petrol (gasoline) and diesel as the culture of consumption has undergone a drastic change, according to a top-level official at the Ministry of Oil and Gas.

The demand for gasoline fell by 3-4 per cent last year, which is against an average annual growth of 7-8 per cent prior to the subsidy cut. Similarly, consumption of diesel declined by 6-7 per cent, after the subsidy was cut. Oman government completely eliminated subsidy on petroleum products on January 15, 2016.

Bank interest rates have shown a substantial yearly increase, in view of the tight liquidity situation within the financial system.

According to the latest monthly statistics released by the Central Bank of Oman, the weighted average interest rate of deposits in Omani rial increased from 0.904 per cent to 1.443 per cent in November 2015 and November 2016 period. During the same period, the weighted average of the lending rate grew from 4.763 percent to 5.081 per cent.

Debt issues

The Omani government recently raised extra funds from the domestic market by issuing development bonds and sovereign sukuk, in order to partially ease its budget deficit. These measures had the effect of reducing liquidity within the financial system, with the banking sector being especially affected.

The market value of Sukuk and securities on the Muscat Securities Market touched 2.283 billion rials, an increase of 270.8 million in 2016. However, the number and value of traded securities and Sukuk declined.

The 47th Issue of Government Development Bond was the highest in terms of market value with 301.2 million rials. There has been no trading on these bonds during the past year. The nominal value of each bond is 100 rials. The first issue of the sovereign fund came second with 250 million rials. The nominal value of each Sukuk is 1 rial. Four transactions have been completed with the value of each Sukuk ranging between 988 baisas to 1.05 rials. The closing price at the end of 2016 stood at 1 rials, which is 5 baisas less than the price during the year 2016.

The Government Development Bonds account for 72.8 per cent of the total market value of the securities and Sukuk and stood at 1.662 billion rials. 12 issues of government development bonds (from issue No.39 to issue No.50) were listed on MSM, but no trading were made on them.

Seven new issues worth of more than 306.2 million rials were listed, the most notable of which were the issues 48th, 49th and 50th of the Government Development Bonds, 3 million bonds worth of 300 million rials with the nominal value for each bond 100 rials.

Al Anwar Holding and thirteen other minority stake holders of Falcon Insurance Company (FIC) have decided to sell their stake in FIC to Arabian Insurance Company (AIC) and Lawrence Investment. Both parties have entered into an agreement for sale and purchase of shares for divesting the stake.

According to the agreement, Al Anwar Holding will be selling 20.35 per cent stake, at a price of OMR1.876 per share, according to a disclosure statement posted by Al Anwar Holding on the MSM website.

The share purchase transaction is however, subject to FIC simultaneously acquiring business, assets and liabilities of Arabia Insurance Company S A L (Oman branch), in accordance with the terms of a business transfer agreement signed by FIC with Arabia Insurance Company and Arabia Holding.

Also, FIC and AIC have to obtain approval for the transaction from the Capital Market Authority, the court, under article 39 of the Insurance Law and other regulatory authorities, as applicable.

A huge untapped potential remains in the Sultanate’s tourism sector as the revenue share of foreign visitors remains at 23 per cent, according to the latest statistics.

Figures released on Tuesday by the National Centre for Statistics and Information indicate that 77 per cent of the total revenue of 1.26 billion rials generated by the sector in 2015 came from domestic tourists.

Among the visitors from abroad, those from the Gulf Co-operation Council countries accounted for 45.5 per cent.

The Ninth Five-Year Plan (2016 – 2020) has accorded a great attention to this sector as it can not only attract foreign investment but also generate employment.

The sector’s contribution to the Gross Domestic Product in 2015 was 2.8 per cent when it was 2.2 per cent the previous year.

A new mining law, drafted by the Public Authority for Mining (PAM), is expected to be announced in the first half of this year.

The law will focus on making Oman’s mining environment more attractive to investors and develop industry in Oman using extracted minerals and metals to cater before being exported, according to a top-level official at PAM. “We are expecting to have the law passed by mid of this year,” said Ali Al Rajahi, Director General of Research and Geological surveys.

“The law will focus on several areas, which include developing the local community and environment of mining. A very important factor is changing the people’s mentality towards mining sector. We will work to help local communities develop through mining activities,” he added.

“We have progressed very satisfactorily so far. The proposed law was finalised by all reviewing parties and now it is with the Council of Ministers and it will be send to Majlis Al’Shura,” said Hilal Al Busaidi, chief executive officer of Public Authority for Mining (PAM). The proposed law is also expected to streamline the presently tedious process of obtaining licence for mining. The licence period will also extend from one year to five years.

In a major development that bodes well for a strong uptick in Omani gypsum exports, top executives of all the leading gypsum mining companies have unanimously endorsed new regulations issued by the Public Authority for Mining (PAM) prescribing a minimum export price for gypsum. The endorsement came at a meeting of company chief executives held earlier this month. Also at the meeting, the attendees agreed to establish the ‘Oman Gypsum Association (OGA)’, a non-profit pan-industry grouping that advocates for, among other things, the best practice in gypsum mining, community support initiatives, and minimum Free-on-Board (FOB) pricing limits that take into account global demand and supply, and other measures aimed at supporting the growth of the domestic gypsum industry.
Alarmed by a downtrend in gypsum export prices, attributed to unhealthy undercutting by some players, PAM stepped in last month to fix a minimum export FOB price for raw gypsum at $12.50 per tonne with effect from December 2016.
Consequently, Omani gypsum exporters are barred from exporting raw gypsum below this designated price. Those found in breach of this regulation will be denied export permits, while repeat offenders are liable to have their mining licenses cancelled altogether. Welcoming these latest developments, and their beneficial implications for the positive development of the gypsum mining sector, Ramachandran, Director of USG Boral Zawawi Group, one of the key player in the industry, commented: “His Majesty Sultan Qaboos has attached great importance to economic diversification aimed at developing the non-oil sectors. Gypsum exports have the potential to drive GDP growth through enhanced non-oil exports. The Oman Gypsum Association’s main mission is to promote the Omani gypsum mining industry, which has the potential to fuel long-term economic growth by boosting the sector’s contribution to GDP through heightened exports.”

A substantial fall in investment income of Oman government is expected this year, mainly due to a drop in yield and drawing on reserves in recent years to meet budget deficits.

According to the state budget, income from government investment is expected to fall by 60 per cent to OMR200 million this year, from as high as OMR500 million in the proposed 2016 budget.

Although a large portion of deficit financing is coming from borrowings, there are withdrawals from sovereign wealth funds, as well. “So, this is resulting in a significant decline in income from government investments,” said Ashok Hariharan, Partner and Head of Tax for KPMG in the Lower Gulf.

In response to the projected deficit of OMR3 billion for 2017, the Omani government plans to borrow OMR2.1 billion from overseas markets, OMR400 million from the domestic market and OMR500 million by way of drawing on the sovereign fund.

A special team studying the feasibility of agricultural insurance in Oman recently discussed the requirements of insurance firms and the mechanism for farmers’s coverage, before implementing the scheme.

The team also looked at alternative measures to protect farmers and fishermen from natural calamities and plant diseases, according to a press release.

The team was formed after a seminar on agricultural insurance held at the premises of Capital Market Authority in the first half of 2016 with members from the Ministry of Agriculture and Fisheries and Oman Chamber for Commerce and Industry (OCCI).

Several representatives

The team is chaired by Capital Market Authority and includes representatives from the Ministry of Agriculture and Fisheries, OCCI, Oman Reinsurance Company and representatives of insurance companies.

UK-based international oil services contractor Petrofac has been awarded a contract to construct a major liquefied petroleum gas (LPG) extraction plant at the Salalah Free Zone at a cost of around $600 million.
The client is Salalah LPG SFZCO LLC (SLPG), a wholly owned subsidiary of Oman Oil Facilities Development Company LLC (OOFDC), which itself is part of the government’s energy and strategic investment firm Oman Oil Company SAOC. Petrofac will undertake the engineering, procurement and construction (EPC) of its Salalah LPG extraction project in the free zone.
Under the terms of the 36-month lump sum EPC contract, which will be triggered when SLPG’s issues to Petrofac the Notice To Proceed (NTP), Petrofac’s scope of work will include construction of the liquefied petroleum gas (LPG) unit and associated facilities, including tie-ins to existing pipeline infrastructure, together with LPG storage and jetty facilities at the Port of Salalah.
Marwan Chedid, Petrofac Group Chief Operating Officer, commented: “This contract is our eleventh in the Sultanate and reinforces our commitment to Oman where we have been present since 1988.
“This project will further support our commitment to increase in-country value. We will continue to maintain strong focus on this aspect of our delivery, particularly by engaging the local supply chain and recruiting local resources. We are very much looking forward to growing and strengthening our team working alongside OOFDC to deliver this project.”

Sharakah, credited with pioneering Omani entrepreneurship and small business development in the Sultanate, has pledged to prioritise funding support for Omani start-ups that revolve around manufacturing and related production activities. This is in line with a broader strategic national effort, spearheaded by the government, to accelerate the pace of economic diversification by encouraging investments in non-oil sectors, chiefly manufacturing, minerals and so on.
“We have decided that in 2017 our priority will be on manufacturing projects because we believe that in order to create a strong and sustainable economy, the manufacturing sector has to be really empowered,” said Sharakah General-Manager Abdullah al Jufaili (pictured). “We have to encourage utilisation of local resources to produce locally made goods that can be eventually exported to regional and international countries,” he added in comments to the Observer.
The award-winning agency, which has invested millions of Omani rials in dozens of small businesses across the Sultanate, is making a strategic shift from an hitherto predominant focus on food and beverage related projects.
“The majority of projects supported by Sharakah typically pertain to the food and beverage sector — not by choice but because majority of applications coming to us related to food and beverages. This will change in 2017. Currently we have 12 new applications in hand, all of them pertaining to industrial projects,” said Al Jufaili.

Masirah Oil Limited (MOL), the operator and 100 per cent owner of Block 50 offshore Oman’s east coast, has received a fresh capital injection that it says will aid its drilling activities and other operations centring on this hugely promising concession.
The cash infusion of $8 million came from Rex Oman, an indirect wholly owned unit of Singapore-based Rex International Holdings, following a subscription of new shares of Masirah Oil (MOL).
“The Capital Injection was necessary to allow (Masirah Oil Limited) to pursue its drilling activities and continue its operations in Oman, as well as for general working capital requirements; and was fully satisfied in cash by Rex Oman,” said Rex International Holdings in a statement.
“The Board considers the Capital Injection to be in the interest of and beneficial to the Group as (Masirah Oil) is the operator and holds 100 per cent ownership in the close to 17,000 sq km Block 50 Oman concession, which has been identified as one of the Group’s main focus going forward. The Board is of the view that Masirah Oil has high potential for growth, as the discovery made in the concession in early 2014 was the first offshore discovery east of Oman, after 30 years of exploration activity in the area,” it added.
The move comes as Masirah Oil prepares to drill another exploration well in Block 50. Dubbed Karamah-1, the well is the second of a multi-well programme and will be drilled from the Aban VII jack-up rig.

Oman’s long term foreign and local currency issuer default rating (IDR) has been placed at ‘BBB’ with a stable outlook, thanks to low public and external debt and high per capital income, according to Fitch Ratings.

Fitch has also published the country ceiling of `A-`, and short-term foreign and local currency IDRs of `F2`.

The Sultanate’s ratings reflect its low public and external debt, strong balance sheet and high per capita income, balanced against its double-digit fiscal deficit and a very hydrocarbon-dependent budget and economy.

Fitch forecasts the government`s net domestic assets (mostly bank deposits minus local debt) will remain above 10 per cent of GDP. At those levels, the government would still have a stronger balance sheet than most countries in the `BBB` rating category.

The earlier sharp fall in oil and gas prices has hit Oman hard. “We expect hydrocarbon revenues to fall by 22 per cent in 2016, after a 41 per cent drop in 2015, but they will still make up around 70 per cent of government revenue. We expect current spending to fall by 5 per cent in 2016, after a 15 per cent cut in 2015, mostly due to a drop in subsidy expenditure as a result of lower oil prices and the removal of subsidies,” said the Fitch statement.

Ample job opportunities are available for Omanis in the private sector as the government warns public sector recruitment will be ‘very limited’ in 2017. That is the view of Shaswar Al Balushi, the head of the Tanfeedh labour market lab, who said thousands of positions currently occupied by expats should go to Omanis, provided they were ready for the challenge of working in the private sector. Al Balushi, who is also the chief executive of Oman Society of Contractors, told Times of Oman, “There are around 1.5 million expatriate workers in the private sector. Simply, there are 1.5 million job opportunities available in Oman without any investment” “Now, if we avoid half of the low level jobs from the 1.5 million, then we have 700,000 jobs available. Even if we take 10 per cent of this, there are 70,000 jobs. Only thing is that Omanis have to be productive and positive so that businessmen will give them preference,” the CEO added. Watch: Tanfeedh labour leader says NOC shouldn`t be scrapped completely As the government seeks to increase the role of the private sector

The government’s plan to gradually cut back on the hundreds of millions of rials it pays every year in subsidies to support Oman’s population have been supported by economic experts.

Cost reflective tariffs (CRT) come into effect today for an estimated 10,000 government, commercial and industrial customers across the Sultanate, identified by electricity authorities as “large” power consumers. This is in line with a decision by the Council of Ministers to lift longstanding subsidy on power supplied to major customers consuming more than 150 megawatt-hours (MWh) per annum. The landmark move was unveiled at a media briefing convened by the Authority for Electricity Regulation Oman (AER) in October.
The step underscores efforts by the government to roll back subsidies on certain utilities and services and thereby narrow the yawning gap between revenues and expenditure resulting from the steep fall in oil prices two years ago. This cost-cutting trend, among other austerity measures, is expected to be further reinforced when the 2017 State Budget is unveiled this week, say experts.
Importantly, the new Cost Reflective Tariff regime that comes into force today does not automatically translate into higher costs for these organisations, according to the Executive Director of the Authority for Electricity Regulation Oman.
The new tariff will be different for every hour of the day, thereby providing the targeted government, commercial and industrial customers with strong incentives to reduce overall consumption, Qais Saud al Zakwani said.

Muscat-based oil and gas exploration and production firm Daleel Petroleum is leading the way in harnessing the hydrocarbon potential of ultra-thin carbonate reservoirs to help boost the reserves potential of its Block 5 concession in the northwest of the Sultanate.
The groundbreaking technique fashioned by Daleel to profitably produce oil from reservoirs barely 1- 3 metres thick was showcased at the 2016 Best Practice Awards event hosted recently by Oman Society for Petroleum Services (OPAL), the umbrella organisation representing the nation’s oil and gas industry.
Speaking at the event, a key executive outlined the ‘geo-steering’ technique pioneered by Daleel Petroleum to drill wells tapping so-called ‘ultra-thin’ reservoirs located at depths of 1,500 metres.
“Ultra-thin reservoirs, varying between one and three metres in thickness, are found scattered in some satellite fields around the Block, and not in all of the fields,” said Talal al Abdali (pictured), Production Geologist.

Majority government-owned Petroleum Development Oman (PDO), which accounts for much of the nation’s crude oil output as well as almost all of its gas production, says it is accelerating early development of its promising Tayseer gas field in southern Oman.
Tayseer is one of a substantial portfolio of small and large projects that will make headway in the coming year in line with PDO’s strategy to sustain hydrocarbon production, most notably natural gas seen as pivotal to fuelling the Sultanate’s economic development.
“Tayseer is a very nice development, for which we are mobilising the early development facilities very quickly,” PDO Managing Director Raoul Restucci said. “We have done the exploration appraisal, and we are at the moment accelerating early development facilities.”
“We have already started to invite tenders on this, so you are going to see a very accelerated development programme for testing surface, and that will help us determine how many development wells are needed,” Restucci added.
Discovered barely two years in November 2014, Tayseer is an example of PDO’s award-winning strategy to achieve the early magnetisation of new hydrocarbon discoveries through modest investments in early development facilities. Designed to help mitigate the effects of the current crisis unleashed by relatively low oil prices, early monetisation helps drive cash flow and generate revenues for the company.
Located around 35 km north of PDO’s Budour NE fields and 20km west of al Noor Production Station, the Tayseer gas field flowed rich gas at the rate of around 1.3 million cubic metres per day (MMm3/day) and condensate of around 900 m3/day during the successful testing of the TY-1 well. The well proved a gas-initially-in-place (GIIP) volume of around 12.6 billion cubic metres (BCM) and condensate-initially-in-place (CIIP) volume of 8.8 MMm3.

Port Services Corporation (PSC) has stressed that it will accede to the government’s request for the continued operation and management of Muscat’s Port Sultan Qaboos only if the current concession is extended by 12 months, and not the three-month term currently on the table. The conditional offer was issued at the end of an emergency meeting of PSC’s Board of Directors which met last week to study the request of Dr Ahmed al Futaisi, Minister of Transport and Communications, urging the Corporation to oversee the operation of the gateway for a further three months beyond the expiry of its current license on December 31, 2016.

“After lengthy discussion and deliberations and taking into consideration the previous board resolutions and decisions taken by the shareholders in the 2nd Extra Ordinary General Meeting (EGM) held on December 7, 2016, it was agreed by the majority of the Board of Directors as follows: To extend the concession agreement to manage and operate Port Sultan Qaboos, with the same terms and conditions, for a period of 1 year up to December 31, 2017 and not 3 months as requested,” Company Secretary Mohammed Osman El Hag Yousif said in a filing to the Capital Market Authority (CMA) yesterday.

Petroleum Development Oman (PDO) projects investments of around $20 billion being ploughed into its oil and gas operations over the next five years, although capital expenditure is anticipated to be curtailed further in 2017 and beyond, a top official said here yesterday.
Raoul Restucci (pictured), Managing Director, said the majority state-owned company will continue to run a lean and efficiency operation going into 2017, while however keeping activity levels at full tilt.
“As far as the outlook for 2017 is concerned, you are going to see a company performing as well as in 2016 and before,” Restucci said. “We will be focusing on minimising capital requirements, improving efficiency, finding self-reliant ways of funding ourselves, continuing with our LEAN programmes, continuing with our ICV programmes, and so on. So we stay the course on all the key foundations. We are very much excited, and we have a number of opportunities, which we are continuing to progress and deliver.”
Cuts in capital expenditure are expected to mirror those in 2016, the Managing Director said. “We are doing are best obviously to reduce (capex), not only for 2017 but also 2018. But there will be very high levels of activity, and very high levels of drilling. We drilled more than 600 wells in 2016 and we are going doing the same in 2017. So activity wise, we are continuing very strongly!” Commenting on PDO’s share of the 45,000 barrels per day (bpd) output cut that Oman has pledged as part of a global deal to bolster oil prices, Restucci stated: “We will take an equitable percentage; we will review the timing and deliver what the Ministry of Oil & Gas seeks in this regard.”

Ubhar Capital (U-Capital), which aims to become Oman’s leading independent investment banking platform, announced on Monday that it has agreed to acquire Investment Management Group of Oman Arab Bank (OAB).

In March 2016, Oman Investment Fund (OIF), Oman International Development and Investment Company (Ominvest) and Arab Bank (Switzerland) (ABS) entered into a Memorandum of Understanding (MOU) to acquire Oman Arab Bank’s (OAB) Investment Management Group business.

A leading name in the investment sector in Oman, Investment Management Group has, over the past two decades established itself as one of the largest asset managers and a leading stock broker in the Sultanate and has executed some of the most notable corporate finance deals including initial public offerings (IPO’s), debt placements and other advisory mandates.

The acquisition will encompass the entire existing Investment Management Group platform, including systems, human resources, licenses, assets and liabilities.

U-Capital has also been granted Regulatory Approvals to acquire Investment Management Group from OAB and will provide significant strategic support to U-Capital to further develop and build its underlying lines of business.

Consultants for advising the Sultanate’s government on the country’s first large-scale solar project are expected to be selected by the Oman Power and Water Procurement Company (OPWP) this month.

State-owned Oman Power and Water Procurement Company had floated a request for proposal (RfP) in October, inviting bids from consultants for conducting a technical and economic study for the proposed project, which will be based on an independent power project model. The last date for submitting bids was November 27.

A tender process for selecting an IPP developer for the project, with a capacity to generate 100 to 200 megawatt electricity, is expected to start by the middle of next year, Eng. Khalil Ibrahim Al Zeidi, acting manager of renewable energy at the Public Authority for Electricity and Water (PAEW) told the Times of Oman on the sidelines of fifth Arab-Indian Partnership Conference.

Sohar based TMK Gulf International Pipe Industry (TMK GIPI) has revealed that it has been awarded contracts to supply hundreds of kilometres of oil and gas pipelines to a number of Oman based upstream energy producers. The largest of these clients is Petroleum Development Oman (PDO), which has awarded a pair of contracts for 33,200 metric tonnes of six-inch flow lines. As part of the two contracts, TMK GIPI will deliver pipes extended a total distance of around 1,600 kilometres.

Last month, the pipe manufacturer said it had inked a four-year deal with PDO worth $200 million to produce and supply a variety of pipes of diameter ranging from 6 to 24 inches. As the only manufacturer of high-pressure electric resistance welding steel pipes in the Sultanate, TMK GIPI has been beneficiary from PDO’s commitment to procuring, to the extent possible, goods and services that are locally produced and supplied in line with its In-Country Value (ICV) development strategy. Delivery of pipes to PDO will commence this month, the company said in a statement.

Oman Food Investment Holding Company, which is developing a major OMR37 million-red meat project jointly with Oman National Livestock Development Company, is in the process of acquiring land for the proposed project at Thumrait in Dhofar region.

Planning stage

“We are in the planning stage. Land is to be acquired soon in Thumrait and water drilling permit will also be acquired,” Saleh M Al Shanfari, chief executive officer of the Oman Food Investment Holding, told the Times of Oman.

New joint venture

The new joint venture, called Al Bashayer Meat Co, will import livestock, fatten them, slaughter in a state-of-the-art abattoir to offer as branded quality red meat to the retail and institutional customers in Oman and other potential export markets.

Oman Chamber of Commerce and Industry (OCCI), the apex trade body that represents private sector in the Sultanate, plans to open a representative office in India, according to Saeed Saleh Al Kiyumi, chairman of OCCI.

Al Kimuyi also said that the union of Arab countries is also planning to open a trade office in India, similar to Arab-UK and Arab-Germany trade bodies. Arab League has strength of 23 countries and a trade office in India will help to share information on trade and investment between the two parties.

Projections of an oil price uptrend rebounding to as much as $60 per barrel on the back of last week’s historic deal by non-Opec producers to cut output, bode well for a somewhat brighter economic outlook for the Sultanate in 2017, according to a leading Oman-based economist.
Dr Fabio Scacciavillani, Chief Economist of the Oman Investment Fund, a sovereign wealth fund of the Sultanate, stressed however the wisdom of continued fiscal prudence going into 2017, keeping in mind that the global agreement reached by Opec and non-Opec producers might display its full effects over a few months.
“Prudent macroeconomic policy hinges on the premise that bad news should be considered permanent while good news should be considered temporary. Maintaining a prudent stance is definitely a wise approach,” he added in comments to the Observer.
The economist was commenting on local reports suggesting that Oman’s 2017 budget would likely be based on an assumed oil price of $45 per barrel.
With current prices of Oman crude prevailing well above $50 per barrel in the wake of last week’s groundbreaking deal, the $45 price forecast — if indeed true — is an appropriate benchmark upon which the national budget is being based, he said.
Despite the roughly 10 per cent spike in Oman crude prices in the aftermath of the global deal to cut oil produce, fiscal prudence does require some degree of “belt-tightening” in the 2017 budget, although these measures are unlikely to match those of 2017, he noted.

Oman’s conventional banks have achieved a robust year-on-year growth of 9 per cent in aggregate personal loans or consumer loan portfolios, which stood at OMR7,805.11 million by the end of September 2016.

The growth in personal loan was attributed to the tendency of more and more customers taking loan to generate additional funds to meet their high-value purchases at a time when organisations are resorting to a cut in bonuses and other perks due to a slowdown in economic activity.

“Low income levels could be one of the contributing factors for a better demand for consumer loan. The public and private sectors have already taken away several perks and bonuses. But people find it difficult to cut their expenditure in the short run,” said an economist, who does not want to be named.

Also, bank customers believe that the interest rates are likely to increase next year, which also partially aided a growth in demand for personal loans.

Oman’s stock market watchdog Capital Market Authority (CMA) has released a draft securities law, which is aimed at protecting the larger interest of investors, with a special treatment to retail investors.

The draft law is now circulated among various stakeholders, including listed firms, brokerage firms, asset management companies, law and audit firms, to get their feedback before February 7, 2017.

According to sources, the final draft securities law, which will be finalised after incorporating all relevant suggestions from the stakeholders, will entrust the CMA with all powers to safeguard the interest of investors and facilitate introduction of innovative collective investment schemes, which can cater to all investment needs of Omani investors. Presently, the Omani market has only few collective investment schemes, which include mutual fund.

The existing law is not up to international standards for introducing new collective investment schemes.

The existing Capital Market Law, enacted in 1998 under challenging circumstances, is proposed to be replaced in parts with the new provisions. The new securities law is expected sometime next year, after incorporating suggestions and completing all necessary procedures.

Number of passenger cars in use in Oman is projected to reach over 889,000 in 2020, translating into a five-year compounded annual growth rate (CAGR) of 3.6 per cent. The country has witnessed a drop in new passenger car sales in last couple of years due to the economic slowdown, according to the GCC Automobile Industry report published by Alpen Capital, an investment banking advisory firm.

This phenomenon is anticipated to continue in the short-term. Accordingly, Oman‘s share of the total GCC passenger cars in use is likely to drop from an estimated 7.2 per cent in 2015 to 6.8 per cent in 2020. However, growing population and tourist arrivals is likely to revive demand in the years to 2020. The Oman government‘s plan to develop various tourist spots and encourage private investments in development of tourism-related infrastructure is expected to increase international tourist arrivals by 6.3 per cent CAGR during the forecasted period.

On the back of enhanced activities, the Sultanate’s mining sector registered a significant increase in its revenue for the first half of 2016. According to Hilal bin Mohammed al Busaidy (pictured), Chief Executive Officer of Public Authority for Mining (PAM), there has been 50 per cent rise in the revenue during the first half of this year compared to the corresponding period last year. At the same time, the direct income from the sector to the state coffer witnessed a remarkable rise of 14 per cent to reach RO 12.3 million against RO 10.8 million in the first half of 2015. According Al Busaidy, a total of 53 licences have been given to local companies.

“The new legislation expected to go into effect next year will see a major overhaul in Oman’s mining regulations”, he said in comments to the Observer. According to Al Busaidy, the new law will have local content requirements, incentives for investment and solution to issues relating to licences. “We want to start creating an attractive investment environment to enable attracting foreign and local investments”, he said. The law also stipulates an Omanisation obligation as a condition of both exploration licences and extraction concessions. Mining activities in Oman are set to increase considerably in the coming years, following the discovery of significant reserves of mineable minerals, including gold, copper and rare earths.

The Research Council (TRC) is spearheading studies designed to evaluate the potential for power generation utilising waste biomass in the Sultanate.
According to a high-level official, biomass material, which is a source of biogas for fuel and power generation, is available in the northern and southern parts of the Sultanate primarily in the form of wastewater and agricultural waste. Animal waste is another commodity in the south that can help augment biomass resources.
“The biomass sector has the potential to expand without harmful effects on food supplies and the environment, if done in a sustainable manner,” said Dr Ahmed Said al Busaidi, Programme Manager — Renewable Energy Research, TRC. “Greater recovery of wood from unmanaged and managed (foliage) can make a significant contribution to Oman’s energy targets,” he added in a presentation on renewable energy prospects in the Sultanate. Addressing delegates on the first day of the INTEX Oman Forum, which began at the Oman Convention & Exhibition Centre (OCEC) yesterday, Dr Al Busaidi also underlined the potential for the capture of methane gas — a promising fuel resource — from the large number of landfills dotting the Sultanate’s landscape.
But he noted however that present levels of biomass resources are not substantial enough to support commercial-scale power generation in itself. At best, available biomass resources can be suitably harnessed to sustain pilots or small-scale plants, he said.
However, “there is good potential for Oman to expand its production of sustainable biofuel production in the future if the infrastructure and right industry are available,” the researcher stressed.

The Sultanate is ready to cut oil production, following the agreement reached by the Organisation of Petroleum Exporting Countries (Opec) last week to pare output, according to Minister of Oil and Gas HE Mohammad Bin Hamad Al Rumhy.

On the sidelines of the Oman-Brunei joint energy and industry summit, he said that the Sultanate will attend the meeting of oil producers with Opec in Vienna on December 10. He expected oil prices to rise to a range of $50-$60 a barrel in 2017 after the supply limit agreement.

Opec agreed last week to reduce output by around 1.2 million barrels per day (bpd) beginning in January in a move to reduce global oversupply and prop up prices. It hopes non-member countries will contribute another 600,000 bpd to the cut and Russia has said it will reduce production by around 300,000 bpd.

Rumhy while declining to comment on the output cut of the Sultanate said discussions hovered around a 3-4 per cent cut by non-Opec producers which is less than what the Sultanate was willing to cut. He added that the Sultanate had earlier said it was willing to cut production by 5-10 per cent. The present oil production is around 1 million bpd.

Commercial operations of Sohar Refinery Improvement Project are expected by the early part of the second quarter of 2017.

The expanded capacity will be stabilised for sustained operations by the end of the same quarter, according to a senior official of Oman Oil Refineries and Petroleum Industries Company (Orpic), which owns the Sultanate’s two refineries.

“Construction activities are in the advanced stage of completion for major units and likely to be completed by end of 2016. Commissioning activities have already been started for utilities facilities,” said Christiaan van der Wouden, chief operating officer of Orpic.

Sohar Refinery Improvement Project (SRIP) is one of the three strategic growth projects undertaken by Orpic and is being delivered in response to the need to upgrade Orpic’s refining capability to further maximise the value of Omani crude oil.

The Sultanate needs to have a reputable and credible credit bureau to expand the lending businesses to ease loan approval procedures. The proposal made by Tanfeedh Labs suggests that the bureau be run by the private sector should be under the supervision of government entities to enhance trust. “A credit bureau is an essential element to a country’s financial infrastructure”, says the proposal. The key stake holders, according to the proposal, should include the Central Bank of Oman (CBO), Ministries of Finance, Manpower and Housing, Capital Market Authority (CMA), Royal Oman Police and financial institutions.

According to Tanfeedh, the Government of Oman should partner with international credit bureaus to speed up its implementation. Although domestic credit penetration to private sector has increased, it is relatively lower in the Sultanate in comparison to other GCC countries. To be established in three phases, the bureau will help expand lending business, increase access to credit, support responsible lending and reduce credit losses. While the CBO should take the lead in proposing law for a Royal Decree to establish

State-owned Oman Oil Refineries and Petroleum Industries Company (Orpic) is offering business opportunities worth of $400 million for small and medium enterprises (SMEs) for developing its $6.5 billion-Liwa Plastics Industries Complex.

These business opportunities, including sub-contracting works, will be awarded by four main contractors who have won these packages as part of in-country value (ICV) obligation.

Orpic has already awarded four major packages to multinational contracting firms for building Liwa Plastics Industries Complex with a total cost of $4.5 billion.

“There is an in-country value obligation in the contract with EPC contractors. These are in four categories, including purchase of local materials and service, which has to be a minimum of 25 per cent,” said Ibrahim Al Maamari, ICV manager at Orpic. “We are expecting to reach around 30-35 per cent ICV.” He was talking to the media on the sidelines of a three-day SME exhibition, which opened on Monday at the new Oman International Exhibition Centre.

The volume of trade between Oman and Iran has surged since international sanctions were lifted against Iran earlier this year.

Oman’s imports from Iran shot up by 396.2 per cent to OMR183.1 million in the first half of this year, from OMR36.9 million in the same period last year, according to the latest data released by the National Centre for Statistics and Information (NCSI). Also, re-exports from Oman soared by 23 per cent to OMR63.2 million in the first half of 2016, against OMR51.4 million in the corresponding period last year.

Oman’s exports for the first half of 2016 plunged 27.2 per cent to OMR4.96 billion from OMR6.82 billion in the same period last year.

The decline in export revenue was mainly attributed to the fall in oil and gas prices in international markets and a dip in non-oil exports. The average price of Oman Crude declined 33.7 per cent to $38.9 per barrel for the first nine months of this year, from $58.6 per barrel for the same period in 2015, according to the latest monthly data released by the National Centre for Statistics and Information (NCSI). “The fall in exports is mainly due to a plunge in energy prices and not due to output. The export revenues will show improvement only when energy prices improve. The energy prices will be better next year,” said Kannan Rajagopal, general manager of the Global Omani Investment Company.

Oman’s banking regulator has relaxed specific provisions for restructured loans, in a move to ease the flow of credit to productive sectors.

The specific provision for restructured loans, which was earlier set at 15 per cent for 2016, has been spread over a three-year period – at 5 per cent for 2016, 10 per cent for 2017 and 15 per cent for 2018, Hamoud Sangour Al Zadjali, executive president of the Central Bank of Oman, told Times of Oman, on the sidelines of the second annual Oman Institutional Investor Summit here on Monday.

“In view of the challenges faced by the borrowers due to recent economic activity,and the issue of credit to productive sectors, the specific provisions of restructured loans have been relaxed from 15 per centto 5 per cent for 2016, 10 per cent in 2017 and 15 per cent to 2018,” said Al Zadjali.

The central bank chief notedthat there has been no growth in the restructuring of loans by borrowers. “However, we expect that there could be some delays in payment due to the economic situation. So, perhaps some of the big customers will seek the restructuring of their loans. Going forward, we expect that restructured loans might increase slightly.”

The construction of the $390-million Mina Sultan Qaboos Waterfront project first phase was inaugurated on Wednesday.

The ceremony was held under the patronage of Minister of Tourism HE Ahmed Bin Nasser Mehrzi in the presence of Minister of Commerce and Industry and Omran Chairman HE Dr Ali Bin Masoud Al Sunaidy.

Minister of Transport and Communications HE Dr Ahmed Bin Mohammed Al Futaisi said the first phase will transform the port into the Sultanate’s tourist gate.

Hotels in Oman recorded a 41.7 per cent year-on-year rise in the number of guests in September this year, according to National Centre for Statistics and Information (NCSI).

The data shows that there were 142,333 hotel guests in September compared with 100,412 visitors during the same month last year.

However, according to industry insiders, a preference for no-frills hotels has been, which is reflected in NCSI data as well.

The revenue of 3- to 5-star hotels in the Sultanate during the month reached OMR13,021,000, declining 4.1 per cent from OMR13,574,000 recroded in September 2015.

The total occupancy rate in hotels was 54.5 per cent in September, compared with 52.7 per cent in September last year, the NCSI said.

Guidelines on installation of internal telecommunications networks in buildings have been issued by the Telecommunications Regulatory Authority (TRA).

The guidelines are about the installation criteria which represent a technical reference to construction engineers, consultants and landlords of residential and commercial buildings.

The guidelines aimed to ensure presence of a fast internal communications network for all facilities of the building and the possibility of connection of e-services in the future such as the security system in the building and the smart home technology.

The guidelines also include the necessity for presence of one communication channel or more between the boundary wall of the land plot and the built up area of the house or establishment in order to facilitate supplying the building with communication cables, mainly the fibre optic cables.

OMINVEST, the largest publicly listed investment company in the Sultanate, held an exclusive event at the Shangri-La Barr Al Jissah Resort to celebrate milestone achievements and to outline the company’s vision for future growth. The event was held under the patronage of Mohammad al Zubair, Adviser for Economic Planning Affairs to His Majesty the Sultan, and was attended by OMINVEST Chairman, Khalid al Zubair, Deputy Chairman Hassan al Nabhani, Group Chief Executive Officer Abdulaziz al Balushi, distinguished Omani public and private sector officials and honourable guests from across the GCC region.

Day trade at discounted rates on the Muscat Securities Market (MSM) begins on Sunday.

In a circular, MSM, which aims to make stock trading more attractive, has said that those engaged in day trading will have a 50 per cent discount in commission. It will be 0.175 per cent instead of the normal trade commission of 0.35 per cent. Of this 0.5 per cent will go to MSM and the rest to the brokerage firm.

Under day trade, investors can buy shares in one or more companies and sell them in the same trading session or sell previously-owned shares and buy them back in the same trading session through the same broker. A cap of 200,000 shares has been fixed for trade in each firm. Trading beyond this limit will be treated as normal trading and will attract the higher commission.

Trust accounts are excluded from day trading. And investors will have to ensure that there are sufficient funds to engage in day trading as positions are squared off at the end of the day’s session. The rules applicable for normal trade default are applicable for day trade also.

Tumbling of the United States dollar against major world currencies in the aftermath of Donald Trump’s election victory will marginally benefit Oman’s economy.

Since Omani rial is pegged to the US dollar, any depreciation in dollar value is directly reflected on the local currency and will help local exporters to effectively compete in the overseas markets.

In early trading, the greenback fell as much as 3.8 per cent against the Japanese yen, the biggest intraday decline since Britain’s EU exit referendum, 2.4 per cent against the euro and 2.3 per cent against the Swiss franc.

BP and Oman Oil Company Exploration and Production (OOCEP) signed an agreement with the government of the Sultanate of Oman, represented by the Ministry of Oil and Gas, amending the Oman Block "61" exploration and production sharing agreement (EPSA) to extend the licence area, paving the way for further development of the giant Khazzan tight gas field.

The agreement was signed at the Ministry of Oil and Gas on Tuesday by Dr Mohammed bin Hamad Al Rumhy, Minister of Oil and Gas of the Sultanate of Oman, Bob Dudley, BP Group Chief Executive, and Eng. Isam bin Saud Al Zedjali, CEO of Oman Oil Company on behalf of OOCEP.

Delays due to runway congestion at Muscat International Airport could soon be a thing of the past as Oman Air’s Chief Executive Officer, Paul Gregorowitsch believes that the second runway will be made completely fit for the future in 2017.

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In an exclusive interview, Gregorowitsch said: “The second runway is currently tendered following the processes that are applicable in Oman. We hope that by December the assignment for the second runway is given to one of the construction firms and in 2017 the runway, which is the southern runway, will be renovated and will be made completely fitted for the future

Oman’s taxation system in general will be amended including the tax rates that will be levied on companies during the coming period, the secretary general of taxation, Ministry of Finance said.

Saud bin Nasser Al Shukaili, Secretary General of Taxation, Ministry of Finance said that the Ministry has submitted an amended rate to Majlis Al Shura and State Council for consideration by the Council of Oman. A recommendation about this rate has been raised and it will be declared when the necessary legislations are promulgated, he added.

In response to a question about the value added value tax, Al Shukaili said that levying this tax is the outcome of joint efforts between the Sultanate and other Gulf Cooperation Council (GCC) states. The tax will be implemented when consensus is reached among the GCC states on the date of starting the implementation, he added.

Oman’s market watchdog Capital Market Authority (CMA) on Wednesday suspended share trading of three listed companies on the Muscat Securities Market (MSM) for not disclosing financial results within the stipulated time.

The three companies are Al Hassan Engineering, Al Oula Company and Oman International Marketing, according to a statement posted on the MSM website. This measure is aimed at protecting the rights and interests of shareholders.

The suspension, which is part of an exercise to avoid insider trading and create a level-playing field for all investors, will be lifted once the companies disclose their financial results.

There is no move to increase interest rate ceiling on personal loan of commercial banks in Oman, despite a general increase in interest rate in the financial system, the country’s central bank chief said.

The maximum interest rate a commercial bank can charge from a customer for personal loan is fixed at 6 per cent by the Central Bank of Oman. In fact, majority of Omani banks are offering personal loans at the ceiling rate, or at less than 6 per cent.

“The ceiling on personal loan will stay until we see it is necessary. We don’t think the interest rate at the moment is on the higher side across the globe,” Hamoud Sangour Al Zadjali, executive president of the Central Bank of Oman, told Times of Oman.

The creation of a single currency in the Gulf Arab region has become inevitable and is only a matter of time, the executive president of Oman`s central bank was quoted as saying.

Oman is not one of the countries pushing for a common currency, but "serious measures" are being studied to achieve it, the Saudi Arabian-owned Al Sharq al-Awsat newspaper quoted Hamood Sangour al-Zadjali as saying in a statement.

Oman-based Moon Iron & Steel Co SAOC (MISCO) has signed a contract with German plant machinery manufacturer SMS Group to construct a mini-steel mill at Sohar Industrial Estate. The estimated $300 million project, which is backed by a number of Omani and GCC funds, will add to Oman’s rapidly expanding reinforced bar (rebar) manufacturing capacity, billed as indispensable to sustaining the Sultanate’s construction and infrastructure sectors. Construction work on the strategically significant mini-mill project is well under way following recent ground-breaking ceremonies held at a site located with the industrial park at Sohar administered by the Public Establishment for Industrial Estates (PEIE).

Key project components include a 1.2 million tons per annum (tpa) capacity Electric Arc Furnace (EAF) based steel melt shop for billet production, as well as a 700,000 tpa rebar mill. Civil construction of the overall steel mix complex is being undertaken by the UAE’s Shriram EPC FZE under a contract valued at around $230 million awarded by MISCO in August. MISCO is investing in state-of-the-art plant machinery that would give it a competitive edge in the production of billets and rebars amid a glut in manufacturing capacity in the wider GCC region. Besides being energy-efficient, the mini-mill will roll out rebars at blistering speeds in excess of 40 metres per second. In many respects, the mini-mill project will be unique to the Middle East, according to SMS Group, a well-reputed supplier of plant machinery for the global steel, aluminium and metallurgical industry.

Business leaders from across Oman gathered together at an ACCA event last week to discuss the impending introduction of VAT (Value Added Tax) across the region. VAT will be implemented in Oman and several other Gulf Cooperation Council (GCC) member countries from January 1, 2018. Ashok Hariharan, Partner & Head of Tax at KPMG, was one of several business leaders in attendance who shared key insights into the introduction of VAT, associated changes resulting from adoption, and the impact it will have on the future of businesses and finance professionals across the region.
Ashok Hariharan, stated: “Whilst VAT is not a tax on business, it is extremely important for businesses to understand and map their supply chain processes and transaction flows to the VAT requirements and ensure that appropriate changes are incorporated in their internal processes including critically, the IT systems. This will be necessary to ensure that they are able to compile and report to the Tax authorities on a regular basis appropriate information including the input VAT credit they should be entitled to. Failure to do so on a timely basis would result in VAT inefficiencies and increased cost to the business.”
He also urged businesses to start preparing for VAT implementation now including agreeing budgets, identifying the project management team and doing an initial impact assessment based on available information and international practices.
He also mentioned that this is an appropriate time for the ACCA professionals including the large number of Omani members to look at Taxation as a career in Oman.