Omran's Operating Review 2014 by Omran

Operating Review 2014 Oman Tourism Development Company SAOC

KNOW HOW . RESPECT . BEYOND / omran.om

Omran’s pivotal role in developing tourism infrastructure, investing in tourism projects, and managing hospitality assets within the Sultanate has continued to evolve year-on-year. The aim of the Omran Annual Operating Review is to provide our stakeholders with a transparent and comprehensive progress report on the projects under development, investment and management, and how the organisation is developing internally. At the same time, using a triple bottom line approach, we try to show how, as a responsible developer, Omran’s projects and initiatives have empowered our communities. The following pages aim to present a clear exposition of 2014.

Developments 1 2 3 4 5 6 7 8 9

Al Baleed Seafood Restaurant Hay Al Irfan - Oman Convention & Exhibition Centre - Crowne Plaza - JW Marriott - Mall - Business Park Quriyat-Sur Rest Area W Hotel

Abu Dhabi

United Ara Emirates

Investments 10 11 12 13 14 15

Al Baleed Resort Duqm Frontier Town Jebel Sifah Ras Al Hadd Tourism Development Salalah Beach Saraya Bandar Jissah

Kingdom of Saudi Arabia

Hospitality assets 16 17 18 19 20 21 22 23 24 25

Alila Jabal Akhdar Atana Musandam Atana Khasab City Hotel Duqm Crowne Plaza Hotel Duqm Golden Tulip Dibba InterContinental Hotel Muscat Masira Island Resort Millennium Resort Mussanah Ras Al Jinz Scientific Centre

Republic of Yemen

14 In line with Omran’s sustainability policy, the paper we have used for this report is Lenza Top Recycling Super. It is recycled paper produced of 100 % recovered fibre. Manufactured without optical brightening agents and chlorine bleaching. High whiteness is achieved thanks to a special converting process for recovered fibre.

The Exhibition Concourse at Oman Convention & Exhibition Centre

Operating Review 2014

His Majesty Sultan Qaboos bin Said

Oman Tourism Development Company - Omran

Operating Review 2014

Oman Tourism Development Company - Omran

Contents Introduction 09 Board of Directors 12 Chairman’s message 14 Management team 16 Message from CEO 20 Our milestones Leading responsible development 27 Shaping the future of Oman How we work 31 Local Development Investment (LDI) 34 Quality, Health, Safety, Security and Environment 36 Sustainability 38 Building the leaders of tomorrow 40 Information and Communications Technology Developments 43 Oman Convention and Exhibition Centre 45 Hay Al Irfan 46 W Hotel 47 Quriyat-Sur Rest Area 47 Al Baleed Seafood Restaurant Joint ventures 49 Ras Al-Hadd Tourism Development 50 Saraya Bandar Jissah 52 Salalah Beach 53 Other projects Hospitality assets 55 Atana Hotels 57 InterContinental Muscat 58 Alila Jabal Akhdar Resort 60 Our other hospitality assets Community 63 One with the community 64 ‘Together we protect our marine life’ 66 Sewing incubator 67 Other ongoing initiatives 68 A brighter tomorrow

Operating Review 2014 | Introduction

Oman Tourism Development Company - Omran

Introduction

Board of Directors

Please see the following page for a brief biography of each of Omranâ&#x20AC;&#x2122;s board members 7

1 H.E. Dr. Ali bin Masoud Al Sunaidi, Chairman 2 H.E. Darwish bin Ismail Al-Balushi, Deputy Chairman 3 H.E. Ahmed bin Nasser Al Mahrizi, Board Member 4 H.E. Sheikh Saif bin Mohammed Al Shabibi, Board Member 5 H.E. Dr. Ahmed bin Mohammed Al Futaisi, Board Member 6 H.E. Mohammed bin Abdullah Al Mahrouqi, Board Member 7 Mr. Waleed bin Khamis Al Hashar, Board Member 8 Mr. Usama bin Ali Al Khalili, Board Member

Operating Review 2014 | Introduction

Oman Tourism Development Company - Omran

1 / H.E. Dr. Ali bin Masoud Al Sunaidi is Deputy Chairman of the Supreme Council for Planning in addition to being Minister of Commerce & Industry and also serves as Chairman at Omran. A PHD holder in Economics from University of Hull - UK, he held a number of senior positions in the government sector during the last two decades including Undersecretary of Commerce and Industry, and Minister of Sports Affairs before being appointed Minister of Commerce and Industry in 2012.

5 / H.E. Dr. Ahmed bin Mohammed Al Futaisi is the Minister of Transport & Communications and Board Member of Omran. A holder of PHD in Civil and Environmental Engineering from University of California at Berkeley, he has achieved a number of scientific accomplishments while working at the Sultan Qaboos University - College of Engineering, department of Civil and Architectural Engineering. He also sits on the Board of a number of organisations in the Sultanate.

2 / H.E. Darwish bin Ismail Al-Balushi is the Minister Responsible for Financial Affairs and Deputy Chairman of Omran. He started his career in 1974, working in several positions in the Government sector. During 1995-2006, he worked as Undersecretary of the Ministry of Finance. He then gained experience working as the Secretary General of the Ministry up to March 2011, before being appointed as the Minister responsible for Financial Affairs following the issuance of the Royal Decree 31/2011 regarding restructuring the Council of Ministers. In addition to his current position and responsibilities at the Ministry of Finance and on the board of Omran, H.E. holds a number of other positions including being the Chairman of Board of Directors of Oman Housing Bank and Oman Air.

6 / H.E. Mohammed bin Abdullah Al Mahrouqi is Chairman of the Public Authority for Electricity and Water and Board member at Omran. Prior to his current position, he held a number of significant positions including CEO of Electricity Holding Company, and the CEO of Oman Water and Power Procurement Company. He also undertook a number of crucial responsibilities previously in the Ministry of National Economy.

3 / H.E. Ahmed bin Nasser Al Mahrizi is the Minister of Tourism and Board Member of Omran. He began his career at the Ministry of Foreign Affairs and was appointed Ambassador to the Peopleâ&#x20AC;&#x2122;s Democratic Republic of Algeria and represented the Sultanate in a number of countries such as Ghana, Gabon, Burkina Faso, Niger, Kazakhstan, Kirghizia, France, as well as the Portuguese Republic. 4 / H.E. Sheikh Saif bin Mohammed Al Shabibi is Minister of Housing and Member of the Board of Directors at Omran. He graduated with BA of Arts in History and Public Administration and has been an active participant within the public sector and has held the position of Minister of Housing since 2007.

7 / Mr. Waleed bin Khamis Al Hashar is a Member of the Board of Directors at Omran and a veteran of the Banking and Oil & Gas sector in the Sultanate having spent 23 years with varied organisations in the Government and private sectors in diverse roles. As Group General Manager at Bank Muscat, he heads the Corporate Services division and is also a member of the Board of Directors of Oman Post Company SAOC, Gulf Hotels Company SAOG, the Council for the College of Banking and Financial Studies. 8 / Mr. Usama bin Ali Al Khalili is a Board Member at Omran. Founder of Zawaya Group of which he is Managing Director and CEO, he spearheaded a number of real estate related investments which gave him a holistic knowledge about the sector and its functioning. He also founded Muscat Lighting, Delight Electromechanical Contracting and is co-founder and Managing Director of Delight Group of Companies and Quartz LLC.

Operating Review 2014 | Introduction

Chairman’s message

Omran was originally established to support the growth of Oman’s emerging tourism sector, with a directive to take over the mission critical transformation and sustainable development of our nation’s tourism infrastructure.

Oman Tourism Development Company - Omran

Together with such large scale projects and its subsidiaries, Omran is poised to play an even more central role in the tourism sector, with a greater focus on strategic development aimed at attracting local, regional and global investments and encouraging increased private sector participation in Oman’s tourism industry.

2014 however, saw two key changes to Omran’s position, role and mandate. The first was changing the company’s position from being a tourism developer for small to medium developments to one that would be responsible for large developments including mixed use real estate projects; those that will be major stimulants to the growth and diversification of the economy and contribute to the prosperity of our people and the communities they live in, all the while protecting our precious natural environment. The second change in the company’s mandate was that Omran would take on the responsibility of all tourism infrastructure development from the Ministry of Tourism.

As a whole, 2014 was the platform building year for us as we step into a new era of growth and prosperity for Omran. With the groundwork in place we have great expectations for each of our new subsidiaries. Over the next couple of years we want Atana to grow into a regional hospitality brand after having established well in Oman; we want to have projects by then that will have demonstrated the concept of responsibly using heritage for tourism and presenting our history in a meaningful way to the youth; we want to accelerate tourism development and infrastructure growth and encourage the entry of the private companies into the tourism sector. Together with our subsidiaries we will lead the transformation of Oman into that what has been envisioned by His Majesty Sultan Qaboos bin Said.

Following the mandate change, the idea was to keep Omran as a strategic holding company as well as a master developer and incubator of mega projects such as the Oman Convention and Exhibition Centre, Hay al Irfan and various other proposals that are currently undergoing their respective feasibility study, while the execution of projects will be managed through our three new subsidiaries Oman Heritage Development & Projects Management Company, National Omani Hospitality Company, and Oman Project Management & Development Company. These mega projects will have a significant impact on job creation and GDP contribution from the tourism sector.

Dr. Ali bin Masoud Al Sunaidi Chairman of Omran

Operating Review 2014 | Introduction

Oman Tourism Development Company - Omran

Management team

1 / Eng. Wael Bin Ahmed Al Lawati was appointed CEO of Omran in 2007 following his instrumental role in launching The Wave, Muscat, Oman’s first Integrated Tourism Complex and is considered one of Oman’s most highly regarded mixed used developments. Eng. Wael has more than 22 years of experience in diverse roles in public-private partnership ventures, strategic management, and investment promotion. As Group Chief Executive Officer of Omran, Wael oversees the Government of Oman’s tourism development and investment efforts. 2 / Eng. Said Al Qasmi is Chief Project Officer (CPO) of the Oman Convention & Exhibition Centre Project (OCEC). Prior to joining Omran, Said held various positions within the Muscat Municipality since joining there in 1986 and his current role encompasses overseeing the development, design and construction of this project of national importance. 3 / Harry Johnson is Chief Asset Management Officer at Omran. Harry brings over three decades of experience in the hotel industry with a focus in asset management, financial management and development. He has been intimately involved in opening hotels and luxury hospitality focused mixed-use projects in Asia, America and the Middle East.

5 / Lubna Al Kharusi is Chief Financial Officer at Omran and holds a Bachelor’s Degree in Trade and Strategic Management form McGill University, Canada. Prior to joining Omran she served in nine different finance and leadership roles at Petroleum Development Oman (PDO). She also worked with Shell International in the UK, in addition to Takamul Investment Company. 6 / Eng. Ali Bin Nasser Al Rasbi is Chief Operating Officer (COO) at Omran. He commenced his career at Petroleum Development Oman (PDO) 1986 working in the Oil & Gas industry and spent a number of years mastering the sector before joining Omran as Senior Commercial Manager. As COO, he is responsible for four prime departments within the Company. 7 / Zoltan Kali is the Chief Strategic Officer (CSO) at Omran. A Hungarian national, Zoltan Kali is an experienced real estate investment professional with over 17 years of work experience with seven years of dedicated understanding in senior managerial and leadership positions in the real estate and development sector across geographies.

4 / Elias Georges Moubayed is Chief Development Officer at Omran. An alumnus of the Harvard University Graduate School of Design in Cambridge, Elias has had an illustrious career spanning over two decades in the design and urban development industry across the Middle East and globally. He joins Omran from the United Arab Emirates, where he worked with Majid Al Futtaim Properties, in Dubai since 2010 in the urban development and real estate sector. 16

Operating Review 2014 | Introduction

Oman Tourism Development Company - Omran

Message from Group CEO Oman as a whole has also witnessed the effect of fluctuating global oil prices. While there has not been a major effect on us yet, it reminds people of why we need tourism. The oil price dip is a cyclical process that is bound to repeat itself. When it will happen again remains unknown; but when it does, we need to be ready with the tourism sector to support us and act as a cushion carrying us through. This is because when oil prices drop there is consequentially more disposable income in Europe. With more affordable flights and Oman’s future strength in the tourism sector can attract tourists from countries whose currencies have appreciated and tap into that market. It is therefore of the utmost importance that we accelerate the growth of the sector and establish Oman as a touristic hub of the region.

With the country’s growing reliance on the tourism market, Omran is already gaining importance as the company that will help shape the future of Oman. As a matter of fact, we have worked hand-in-hand with the Ministry of Tourism to formulate the country’s tourism strategy, which is to be finalised this year, while the work on Oman Vision 2040 has commenced.

our heritage assets; National Omani Hospitality Company, which will go by the name of Dhiaffa, meaning hospitality, is responsible for our hospitality assets; and Oman Project Management & Development Company, which will go by the name of Bunyan, meaning construction, is responsible for tourism development in the country overseeing small to medium projects. Omran will take on a role of a strategic holding company while retaining its position as a master developer and incubator of mega tourism projects. The restructuring was by no means a simple process, requiring careful scrutiny while formulating the need for each company. Once done, each of these companies were established and their boards appointed. Each subsidiary was conceived right from the start to be run independently of Omran, each with its own staff, offices, committees, processes as well as its own mandates and areas of responsibility. However, a very clear matrix of authority with respect to Omran will be maintained and has been shared with these boards of each of our subsidiaries. This clarifies where certain decisions are taken at their level and where these decisions are to be taken at the Omran board level.

As a reflection of this increased responsibility and the increased emphasis on the growth of the sector, the mandate of the company was expanded with Omran’s role now being defined as a developer for cities and destinations in the country and being the centre for coordinating the investments within these cities and destinations. As a result the Ministry of Tourism will take on the role of being a regulatory body and policy maker while Omran is responsible for the execution of tourism projects and tourism development.

Aside from putting in place the groundwork for our future and the establishment of our new subsidiaries, 2014 has also been marked by steady progress and continued development on multiple fronts. In 2014, we issued our 2nd ‘Sustainability Report’, which has gained considerable recognition and positions the company as the most transparent real estate and tourism developer in the region for second

This has led to the creation of three new subsidiaries each covering one key area of Omran’s operations – Oman Heritage Development & Projects Management Company, which will go by the name of Turathna, meaning ‘our Heritage’, is responsible for promoting tourism through

Operating Review 2014 | Introduction

consecutive year. The Report reflects the pledge we have made to the country and the people of Oman that all our major developments will comply with Leadership in Energy and Environmental Design (LEED) specifications. As it stands we have we have nine developments in our portfolio that have achieved, or are in the process of achieving, LEED accreditation. We will continue our role as a pioneer in best Sustainable practices and build projects according to professional and global LEED standards.

In 2014 two major projects – Alila Jabal Akhdar Resort and Atana Musandam – also had their soft openings. Both hotels have now taken their position within our hospitality asset portfolio and have their full openings scheduled for Q2 2015. Both have been growing in popularity significantly since their openings, with Alila Jabal Akhdar already making its mark on the global stage; earning recognitions from the likes of CNN and Condé Nast Traveller. Atana Musandam has been very well received by visitors to the area thanks to its authentic Omani environment and affordable pricing.

One of the most significant developments of 2014 was Omran being officially appointed as the developer for Hay Al Irfan Urban Development. The master plan for the largest mixed use development in the Sultanate, is being worked on and is expected to be ready in Q1 2016. The construction of the urban centre is set to be completed in phases over the next 30 years, and has been carefully aligned to match the natural population growth of the country and act as a new business and leisure hub in the capital area.

In addition to the Alila Jabal Akhdar Resort and Atana Musandam, our other Hospitality Assets are undergoing soft refurbishments while others are being revisited for further developments and the addition of new facilities. Also during 2014 Saraya Bandar Jissah released the residential zone ‘Zaha’ to the market; selling well beyond its initial targets for 2014. The construction contracts for the first three residential zones have also been awarded. As a whole, the construction on the vast mixed-use development is progressing well and is on target for its grand opening in 2017. In November 2014, a development agreement was signed between the Government of Oman and the Qatari Diar Ras Al-Hadd Development Company SAOC, wherein the Qatari Diar Ras Al-Hadd Development Company SAOC, jointly owned by Omran and the Qatari Diar Group, will undertake the development of the eco-themed Ras Al-Hadd tourism project.

During 2014 our work on the Oman Convention and Exhibition Centre (OCEC) continued apace, with 149,128,273/Omani Riyals of major tenders awarded. In 2015, construction on the two hotels and the convention centre is scheduled to begin.

Oman Tourism Development Company - Omran

“Local Development has the prime objective of maximizing the share of local content in the operating model of Omran for 2014 and ahead...” During the year Omran continued to realise its commitment towards the development of sustainable tourism and the growth of the sector. Local Development has the prime objective of maximizing the share of local content in the operating model of Omran for 2014 and ahead, particularly in the areas of developing skills, encouraging manufacturing and creating business opportunities without compromising on quality standards. As a result we developed a detailed Local Development Investment (LDI) policy with areas of focus that are closely aligned with our business Communities in which we operate, Contractors and Organizations whom we awards work to, and the Assets and Facilities we manage. Not only is this aimed at increasing in-country value but also sets the groundwork for future development and increased involvement of local companies and SMEs in the Tourism sector.

Looking ahead, Omran, as a responsible developer, will continue to support the Sultanate’s goal of being the destination of choice for visitors from around the world. Through our actions and those of our partners, we are committed in our contribution towards a brighter and more prosperous future for Oman. This year’s annual operating review reflects this commitment and summarises our progress and achievements throughout 2014 Eng. Wael bin Ahmed Al Lawati Group CEO

Operating Review 2014 | Introduction

Oman Tourism Development Company - Omran

Our milestones Omran is the first tourism development company in Oman, and one of only a handful across the GCC to achieve

OMR 120,506,857 in tenders awarded in 2014

6.7 million

ISO 14001 accreditation for their environmental management systems

projects were tendered

awarded

Achieved an aggregate of

under analysis

man hours free from Lost Time Injuries (LTIs)

contracts signed

Nine developments are pursuing LEED green building certifications

Operating Review 2014 | Introduction

Local Development Investment (LDI)

Developments Ras Al-Hadd Tourism Project • Government of Oman and the Qatari Diar Ras Al-Hadd Development Company SAOC sign a comprehensive development agreement

SME’s supported in 2014

74%

Oman Tourism Development Company - Omran

• New joint venture Company named Qatari Diar Ras Al-Hadd Development Company SAOC was established, Owned by Omran (30%) and the Qatari Diar Group (70%)

Omanisation

• The project itself will covers a land area of approximately 1.848 million sq.m and has an estimated project budget of OMR 400 million

OMR 185,221

in total local SMEs contribution in 2014

Oman Convention & Exhibition Centre • 2014 work progressed on construction of the exhibition halls and infrastructure • L&T Oman LLC awarded with the tender for the construction of Crowne Plaza hotel Hay Al Irfan • Government of Oman officially appointes Omran as the developer for Hay Al Irfan

Sustainability Report

• OCEC site (Wadi Irfan) will be considered the first phase of Hay Al Irfan Project

• Launch of the second edition of its Sustainability Report for 2013 titled ‘Creating a Sustainable Tourism Destination’ • Attainment of a ‘B’ rating for transparency and performance disclosure, maintaining its position as the most transparent real estate and tourism developer in the region for the second year running

• Master plan awarded to Allies & Morrison W Hotel • W Hotel site is being progressed and the construction contract has been signed with L&T and is to be located in Muscat’s Shatti Al Qurum District, adjacent to the Royal Opera House and the site of InterContinental Hotel Muscat

Joint ventures Salalah Beach • The Government of Oman has extended the development agreement to January 2018

Saraya Bandar Jissah • Residential Zone Zaha released to the market in September 2014 • Construction contracts for residential zones 3, 5 and 8 awarded

• The construction of Al Fanar hotel in Salalah has been awarded • The Rotana hotel, the largest hotel in the sultanate, started operations in 2014

• Construction contracts for the two luxury hotels awarded • Winner of Best Mixed Project at International Property Awards

Operating Review 2014 | Introduction

Hospitality assets

Oman Tourism Development Company - Omran

Awards & recognitions

Atana Musandam • Atana Musandam Resort entered its soft opening phase in April 2014 • OMR 12 million awarded by Atana Musandam Resort to cocal contractors • 90% of the inception of the brand was conducted by SME’s and local talent Alila Jabal Akhdar • Alila Jabal Akhdar Resort entered its soft opening phase in May 2014 • 100% of the OMR 14.56 million construction contract awarded by Alila Jabal Akhdar to local contractor InterContinental Muscat • InterContinental Hotels Group management contract extended for a further five years • Hotel will undergo a major 2-year renovation

Omran • Gold Award for Best URL omran.om in Travel & Tourism Category at Oman Web Awards ‘Together we protect our marine life’ Campaign • Best environment friendly project at Asia CSR Awards Sewing Incubator • Best Women Empowerment project at Asia CSR Awards Atana Musandam • Best Sustainable Project at Dossier-Construction Awards & Summit 2014 • Gold Circle Award 2014 from AGODA Alila Jabal Akhdar Resort • 2014 Gold List for the world’s best hotels ‘History Lessons’ category by Condé Nast Traveller • Recognized by CNN among the amazing hotels of 2015 • Green Landscape Award at the Oman Green Awards and Summit 2014 • ‘Sustainable Project of the Year’ and ‘Hospitality Project of the Year’ by leading infrastructure and development portal - ConstructionWeekOnline.Com Staff Awards • Eng. Ammar Al Kharusi named Green Ambassador at Oman Green Awards and Summit 2014 • Halima Al Kindi recognised with the ‘Al Mar’a Excellence Award for Sports’ • Lamia Al Ansi named ‘Most Promising Young Woman’ at Al Mar’a Excellence Awards • Lubna al Kharusi won the ‘Al Mar’a Excellence Award for Corporate Leadership’ • Saba Al Busaidi won ‘Al Mar’a Excellence Award for Technology’

Operating Review 2014 | Leading responsible development

Oman Tourism Development Company - Omran

Leading responsible development

Shaping the future of Oman So far Omran’s mandate has been to support the development of the nation’s tourism infrastructure in a way that preserves its cultural traditions and environment. However, in 2014, this mandate was expanded, changing Omran’s position from being a tourism developer for small to medium developments to one that would be responsible for cities and large mixed use developments with two primary objectives:

1 These mega developments are to create economic value and facilitate job creation 2 Act as a body for attracting investment for real estate development

Operating Review 2014 | Leading responsible development

Business development In June 2014 the board of Omran was changed and the mandate of the company was expanded. One of the key aspects of the new mandate was that the Ministry of Tourism will take on the role of being a regulatory body and policy maker, whilst Omran is to be responsible for the execution of all tourism projects and developments. As a result of the increased responsibility, Omran has had to undergo a significant transformation process.

The Subsidiaries

In order to accommodate the increased responsibility of Omran’s new mandate, it has had to undergo a significant change. Starting at the board level, it started to define the corporate governance structure where roles and responsibilities of the board were defined alongside the interface with its three new subsidiary companies – one for each core area of business: Oman Heritage Development and Project Management Company (Turathna) The Oman Heritage Development Company, which will go by the name of Turathna, Arabic for ‘our Heritage’, is an Omran subsidiary dedicated to the management and upkeep of Oman’s culture and heritage sites. The company was established to further enhance visitor experiences and promote economic growth within the Sultanate, while safeguarding and maintaining precious heritage sites throughout Oman. Oman Project Management & Development Company (Bunyan) Oman Project Management & Development Company, which will go by the name of Bunyan, meaning construction, was established to be a centre of excellence in developing and executing tourism projects throughout the Sultanate. Bunyan is tasked to work on Omran and Ministry of Tourism small and medium projects and executing single asset projects and related tourism infrastructure.

Oman Tourism Development Company - Omran

Strategic Outlook

Following the successful establishment of each of the subsidiaries, the next step was the development of the strategy for Omran with the starting point obviously being the development of a strategy for the country. The Ministry of Tourism has hence started their strategic process and have appointed THR to be their consultants. As it develops, the country strategy will be feeding into Omran’s strategy. Omran has appointed

Strategy& as its strategy consultant and, with their help, will be detailing its strategy in 2015. The Company is also embarking on a tender that will establish the whole framework – the operating model, the procedures and the structures that need to be in place to implement the strategy and also the required manpower resourcing. As a result, Omran has set in motion everything required to effectively prepare itself for the new mandate.

National Omani Hospitality Company (Dhiaffa) National Omani Hospitality Company, which will go by the name of Dhiaffa, meaning hospitality, was created to bring quintessential Omani hospitality to global audiences. It specialises in the business of hospitality - the true Omani way. Presently, Dhiaffa manages two hotels under the brand name ‘Atana’ - translated it means ‘Came to us’ and is a first of its kind Omani hotel brand that blends age-old local traditions with contemporary culture and one the represents quintessential Omani hospitality. The introduction of these subsidiaries has allowed Omran to take on a holding company structure where the strategy, key financing activities, policies and other such strategic components that would normally be within a holding company will be the responsibility of Omran. However, in addition to its role as a holding company, Omran will also be focusing on being the master developer and incubator of mega projects such as the Convention Centre, Hay al Irfan and various other ideas that it is now considering.

Operating Review 2014 | How we work

Oman Tourism Development Company - Omran

How we work

Local Development Investment (LDI) leading quality, mutual respect, and sustainable strategies. As a result, and as a part of its LDI policy, it has three areas of focus that are closely aligned with its business – the Communities, the Contractors and Organizations, and the Assets and Facilities they manage. This increases in-country value alongside setting the groundwork for future development and increased involvement of local companies and SMEs in the Tourism sector, as well as contributing to their future development.

Local Development has the prime objective of maximizing the share of local content in the operating model of Omran, particularly in the areas of developing skills, encouraging local manufacturing and creating business opportunities without compromising on quality standards. Omran’s operations in the country are governed by Omran’s three values of ‘Know-How’, ‘Respect’, and ‘Beyond’. They each represent the Company’s aim to develop the country based on industry

Omanisation

ICV CSR

SME Local content

Buy local

It is more than just buzz words. LDI is who we are.

Operating Review 2014 | How we work

Oman Tourism Development Company - Omran

Case study: Ozooma Omania 2014

Our LDI Policy Community • Understanding expectations • Maintain regular lines of communication • Identify means of local market development • Respecting heritage • Sustain their wellbeing

Contractors & organizations • Sourcing the majority of materials and services from the local market • Develop major Omani companies to work in the hospitality sector • Strengthen the hospitality construction vendor base • Actively promote the purchase of goods and services from Omani owned companies • All construction activities above OMR 1mn will have an allowance for Local Development activities and clearly stipulated Omanisation levels Omran also give preference to: • 100% Omani owned SME’s with Omani nationals as 30% of their skilled workforce • Suppliers with 60% of their manufacturing performed in Oman

Assets and Facilities Management • Provide employment opportunities for local population • Maximizing the use of local contractors within the community for maintenance and other services • Ensure the purchase of fresh produce, dairy and fish from the local community

Supporting the development of Oman’s small and medium-sized enterprises (SMEs) has been one of the core emphasis areas for Omran. It has been at the forefront of supporting a number of initiatives directed towards the SME sector – Ozooma Omania, is one such event organised in association with the Public Authority for Small and Medium Enterprises Development (Riyada). Targeting a spectrum of small and medium enterprises (SMEs) in the food and beverage sector, this event was held between 21 and 22 September, 2014 at Muscat City Centre and focused towards reaching out to the Omani market; providing the participating SMEs with training and promoting them to the public and corporate Companies as well as finding opportunities for these companies to sign Memorandums of Understanding with the SMEs for their services in the future. In addition to promoting small and medium size enterprises, Ozooma Omania was also a platform for the exchange and sharing of ideas, experiences and best practices between participants. Hospitality is one of Omran’s main strengths, and by incorporating key customers’ views and suggestions, the event ensured a holistic approach towards creating awareness about the SMEs amongst the local public as well as encourage them to innovate further.

“This collaboration between Omran and Riyada is part of our local development policy that extends our support to Omani SME’s and companies. This event, is specified within the food and beverage sector as Omran’s assets fall mostly within the hospitality and tourism industry. We are very proud of the participants and the collaborations they made on this platform and also extend our appreciation to the team that made this event possible. We have successfully met the objectives of this initiative and contributed effectively towards the growing Omani SME sector.” Ms. Lamia Al Ansi, Director of Procurement - Omran

Operating Review 2014 | How we work

Quality, Health, Safety, Security and Environment

Oman Tourism Development Company - Omran

ISO Standards Accreditation: During 2014 Omran renewed its ISO9001, ISO14001 and OHSAS18001 standards accreditation. In October 2015, Omran will begin the process of validating its ISO standards accreditation. 2014 QHSE Record: Omran’s QHSE policies and practices have yielded a sterling record for the year with its projects achieving an aggregate of 6.7 million man hours free from Lost Time Injuries (LTIs) QHSE induction: Omran maintained a 100% record of QHSE induction, covering various HSE topics including evacuation procedure, journey management and safety on sites. Safety Drills: QHSE department conducted 2 in-house drills and 20 on site drills during 2014

Since its inception Omran has undertaken a continuous process of improving its Quality, Health, Safety and Environment (QHSE) systems, standards and practices to ensure that its employees and the communities they work in are safe and sound and benefitting from the projects it implements. In 2014, the main focus of the department was the merging of the QHSE and Security departments into one unit under the name Quality, Health, Safety, Security and Environment (QHSSE); reporting directly to the Chief Operations Officer as part of the operations department.

any project that Omran are involved in. While the system is live, data from all projects prior to the introduction of the software is currently ongoing and is expected to be completed in 2015. As part of Omran’s dedication towards maintaining health and safety standards, it has HSE operatives and managers based at every project site. It has also appointed a full-time HSE manager for its subsidiaries in 2014. In March 2014, Omran sadly sustained its first fatality on site. In line with Omran’s dedication towards maintaining the highest possible safety standards within its projects, the case was carefully investigated, the required corrective action was implemented and the company has since achieved an aggregate of 6.7 million man hours free from Lost Time Injuries (LTIs).

A key advancement in the department for 2014 was the introduction of a new reporting software called INTELEX. It keeps track of all key reporting statistics in the form of an electronic log book, allowing any of the senior management to access such details at their discretion for

Prior to the beginning of any project Omran organises QHSE induction meetings and workshops to ensure that all potential risks and hazards are identified and incorporated into the project’s HSE plan. Every onsite worker receives an HSE induction and subsequent HSE refresher sessions. The range of subjects covered in these sessions include safe use of scaffolding and ladders and working safely at height, electrical and mechanical hazards, plant and machine use safety practices, compressed gas and welding safety, and initial fire response, among many other subjects. Sessions also include food and hygiene and H1N1 awareness, energy conservation and housekeeping.

regular QHSE alerts that share new learning. Regular QHSE inspections are conducted for all projects, activities and equipment to ensure rigorous onsite compliance. To keep its workforce alert and well prepared, regular mock drills are conducted on all Omran sites, relating to personal injuries, road traffic accidents, fires, falls from heights, oil or chemical spills and other scenarios. All incidents within every project are carefully investigated by Omran management to identify causes, correctives and preventive measures. Each case is authenticated and is investigated until the incident is resolved. In order to ensure safety of all employees, any employee wishing to use a company vehicle has to undergo a defensive driving course. There are also a number Omran employees who are certified First Aid personnel and Fire Wardens.

To maintain best practice amongst its workforce, consultants and contractors, Omran prepares and disseminates

Operating Review 2014 | How we work

Sustainability Omran places great emphasis on sustainable tourism. These projects preserve and emphasize Oman’s unique traditional integrity and cultural values while perfectly complementing its natural beauty. As such, sustainability is an integral part of the Omran business model. Focusing on sustainable development has become a fundamental component in the drive to balance the fulfilment of social needs with the protection of the natural environment.

This latest report has made significant improvements by expanding the scope with the inclusion of 30 fully reported GRI performance indicators. Omran continues to use the Global Reporting Initiative 3.1 standard to guide reporting, but have started transitioning to reporting using G4 which focuses reporting on the basis of topics and themes identified as important to stakeholders. By showing this leadership in sustainability reporting, it aims is to continue to be the most transparent developer in Oman and the region.

In 2014 Omran issued the second edition of its Sustainability Report titled ‘Creating a Sustainable Tourism Destination’. The 2nd Sustainability Report ensured that Omran maintains its title of most transparent real estate and tourism developer in the region for the second year running, and outlined comprehensive information on its developments and hospitality assets. The Report details the economic, environmental and social outcomes resulting from its everyday activities. It also presents the company’s values and governance model, and demonstrates the link between company strategy and its commitment to a sustainable global economy, while the report is structured using the Global Reporting Initiative (GRI) standards for transparent reporting. GRI is a leading organization in the sustainability field; promoting the use of sustainability reporting as a way for organizations to become more sustainable and contribute to sustainable development.

As a whole, the report provides stakeholders with a clear and transparent summary of Omran’s collective efforts throughout the year in making an ongoing and sustainable contribution to tourism development in Oman. Sustainable development informs not only of its strategic direction, but every aspect of operations. To successfully achieve sustainability over the long term and across the myriad number of projects, Omran has established a Responsible Tourism Strategy. This commits Omran to create employment opportunities, respect and mutual benefit for the community while protecting the environment and creating better places for people to live and visit, in the Sultanate.

Oman Tourism Development Company - Omran

Sustainability talk

Coinciding with the release of the second edition of the Sustainability Report, Omran organised a stakeholder seminar as part of its Corporate Social Responsibility (CSR) initiatives which focused on sustainability throughout all levels of society. Held at the Millennium Resort, Mussanah, the event was attended by over 120 participants, including a number of senior Omran staff as well as University students, community members, SME’s, tourism operators, social and environmental champions, as well as public and private stakeholders. The day-long seminar addressed the importance of sustainability and the emphasis that Omran places on sustainable development around the key pillars of the company’s sustainable framework of economic, social, environmental and cultural heritage.

1 SME’s engagement during Sustainability Talk 2 One of our sustainability pillars: Cultural Heritage 3 Stakeholders making their personal pledges towards sustainability

Sustainability Framework

Omran has an established Sustainability Framework focusing on four core areas; the Economy, Society, Environment and Cultural Heritage. This means that the Company is mandated with building sustainable tourism infrastructure that will contribute to economic growth, in addition to providing employment to the local people and support communities. The sustainability framework requires us to provide safe and secure working environments as well as being committed to minimising the environment impact of developments.

Economic

Society

Responsible Tourism

Environment

Cultural Heritage

Operating Review 2014 | How we work

Oman Tourism Development Company - Omran

Building the leaders of tomorrow

Training

Throughout the year Omran organised 110 training courses for its employees and it has been noticed that targeted training approaches, focusing on specific employee needs reap the highest benefits.

‘Omranites’ form the heart and soul of the Company and are more than just a resource – they are the true wealth of Omran, its human capital. In 2014, the importance of human capital has been ever increasing in an organisation as diverse as Omran and their collective collaborations have been instrumental in meeting the challenges it faces in building, investing and managing Oman’s continuously developing tourism sector.

Under the new system, candidates are hired keeping in mind their commercial knowledge, technical skillset as well as their underlying behaviour and personality, and a compatibility with the Omran work environment. Furthermore, the human capital division has been budgeting smartly by implementing succession-based planning and understanding the gaps in the organisation by measuring the needs in a full circle approach.

The Talent Management Model which aimed to optimise and streamline human capital development processes in terms of employing, training and retaining was mobilised this year. Covering the expanse of corporate goals beginning from talent acquisition to development, and further on to retention, this model has paved the way not just for more efficient training, but also professional development, competency gap management and strategic succession planning.

Under the Talent Management Model, when a candidate is employed, the department head and human capital team will measure and understand the employee’s capabilities and their projected growth in the organisation. On joining the Omran family, an employee’s job description is designed on the basis of his competency and innate capabilities. The HC team pre-empts what role he/she has the capability to take up and excel in, in addition to taking employee expectations into considerations.

Awards 2014 also saw a number of Omran’s young employees awarded for their hard work and personal talents. Lubna al Kharusi, won the ‘Al Mar’a Excellence Award for Corporate Leadership’, Lamia Al Ansi was named ‘Most Promising Young Woman’, Halima Al Kindi recognised with the ‘Al Mar’a Excellence Award for Sports’ and Saba Al Busaidi clinched ‘Al Mar’a Excellence Award for Technology’. In addition, Eng. Ammar Al Kharusi was named ‘Green Ambassador’ at Oman Green Awards and Summit 2014. Omran truly values its employees and in the coming year will be working towards enhancing their productivity and status in the organisation with the ‘Train from Omran, train for Oman’ ideology.

Omanisation

In a sustained commitment to build its national workforce, Omran achieved a 74% Omanisation rate in 2014.

1 2 3

However, to change the outlook from just basic Omanisation, it is essential that a systematic and strategic ‘Intelligent Omanisation’ is pursued through long-term sustainable job creation and enhancement of the local economy.

Al Mar’a Excellence Awards Muscat Youth Summit 2014 Eng. Ammar Al Kharusi, Green Ambassador at Oman Green Awards 2014

74%

Operating Review 2014 | How we work

Information and Communications Technology Omran operations are underpinned by a robust ICT platform that is constantly evolving to ensure the most streamlined and efficient delivery of all projects. During 2014 the ICT department continued to support the on-going projects in scoping, tendering and awarding IT packages.

with the purchase of the required licenses from Oracle as the ‘Software Developer’ and awarding both tenders to Bahwan Cyber Tek as the ‘Application Implementer’. The objective was to electronically capture all transactions in procurements and projects with fully automated processes and their relevant transactions to finance. By implementing these modules Omran and its subsidiaries in both areas will be enabled with the following:

Also in 2014, the ERP team started tendering for two projects ‘Advance Procurement’ and ‘Project Management’. The full tendering process was completed

Oman Tourism Development Company - Omran

Paperless environment

Electronic Contracts

E-Tendering process

Online and automated supplier transactions including electronic invoicing

Automated workflow and electronic approval

Capture projects plans, budgets and forecast

Fully tracking of contracts and projects executions

Business Intelligence reporting and dashboard

Operating Review 2014 | Developments

Oman Tourism Development Company - Omran

Developments

Oman Convention & Exhibition Centre A landmark business development Scheduled to open in 2016, this landmark project is the centrepiece of Oman’s business development programme aimed at establishing the Sultanate as a major regional venue for regional and international events. OCEC complex will include four hotels, a business park, retail shopping areas and residential districts, surrounded by a nature reserve which will be a haven for Oman’s exotic birdlife, parklands and wadi (valley) park are also part of this picturesque precinct.

the Site Enabling Work and Preparation. The project also witnessed the completion of about 45% of Package 2, which encompasses the construction of the Exhibition Halls and Energy Center. Furthermore, the full detailed design for Package 8 –the Staff Accommodation; and Package 6-A – Omran HQ Building, were completed. Near the end of 2014, L&T Oman LLC, a subsidiary of Larsen & Toubro Limited, was awarded the tender for the turnkey construction of the Crowne Plaza hotel at OCEC. The four-star hotel will be built on a gross floor area of 37,350 SQM within the OCEC project development, with the capacity of 296 guest rooms. It will include a two-level basement, an intermediate basement parking to accommodate 220 vehicles, a ground floor, mezzanine and six additional floors. The agreement encompasses the hotel’s architectural finishes, MEP works, specialised systems, external works and landscape. Construction on the Crowne Plaza (package 7) and JW Marriot (package 4) hotels will begin in 2015, as will the work on package 3, the largest of the OCEC development.

The completed OCEC will also feature the largest fixed seating auditorium in the GCC (3,200 seats) and the largest car park structure in Oman (4,200 spaces), the country’s largest district cooling plant (32,500 refrigeration tons), the largest steel truss span (80 metres) supporting the Exhibition Halls and the largest dome in Oman (120 metre span). Conferences are already being bid for when it is ready. Over the course of 2014, the OCEC project witnessed substantial completion in the construction of Packages 5.1 – Site-Wide Infrastructure; 5.2 –Primary Electrical Substation; 5.4 –second phase of the chilled water supply network; and 5.5 – Phase 2 of

Operating Review 2014 | Developments

The LEED design review for both hotels was also completed prior to the tendering process in order to ensure targeted sustainability measures, with energy savings of up to 50% when compared to other buildings currently being developed in Muscat, were addressed in the design.

of about 45% of total leasable area Business District. Consultants for the project have also been appointed and the designing process of the package at the Business Park has commenced. A similar MoU between Omran and Oman Oil was also signed for the development of the Oman Oil HQ Project. This milestone represented the marketing of a further 15% of the total leasable area in the Business District. The Mall Term Sheet has also been signed with Al Futtaim Group with the development agreement preparation currently underway.

Further developments in the project include the Development Agreements between Omran and Omantel for the development of Omantel HQ Project being signed. This represents the successful marketing

1 A world-class venue

2 Exhibition concourse 3 JW Marriott Hotel 4 OmanTel head quarters

Contribution to the local market

Oman Tourism Development Company - Omran

Hay Al Irfan Transforming the Capital

In 2014, the Government of Oman officially appointed Omran as the developer for the Hay Al Irfan Urban Centre, the Sultanate’s largest urban development. It was also decided that the OCEC site (Wadi Irfan) will be considered the first phase of Hay Al Irfan. The master plan for this mega development will be ready in Q1 2016, and the development is set to be completed in a number of phases over the next 30 years, carefully aligned to match the natural population growth of the country.

Celebrating the spirit of the Omani lifestyle, the new urban centre encompasses business and residential zones, retail centres, hotels, tourist attractions and recreation and cultural facilities as well as schools and hospitals, while being conveniently located on a site with strategic links to the nearby Muscat International Airport and the Oman Exhibition and Convention Centre. The Master plan aspires to create a truly modern ‘future-proofed’ urban centre to cater for population growth and increased urbanisation trends.

Hay Al Irfan directly aligns with the government’s vision to invest in sustainable developments, strengthening and diversifying the economy of Oman. It will create a new downtown area for the Muscat capital district that will set a model for planning other modern cities across the Sultanate and lead the way for social and economic Growth in the decades to follow.

Hay Al Irfan will generate significant inbound revenues, and through Public Private Partnerships will increase capital retention within the local economy which is estimated to contribute upwards of OMR 400 million annually to the Sultanate’s GDP upon completion. The new urban centre will provide employment opportunities for citizens, together with numerous down-stream business opportunities for local companies and significant stimulus for the growing SME sector.

Located in Muscat, the mixed used development will provide an exciting addition to the capital’s new lifestyle offering, and will be designed according to best international standards in urban planning, reflecting Oman’s distinctive identity and sustainable long-term developmental strategy.

• In 2014, OCEC spent an amount of OMR 19.15 million on construction contracts out of which estimated 10.8 million were in Oman • OCEC Conducted a summer training programme for 20 students from different colleges • All recently awarded construction contracts (approx volume of RO 165 million) now include a requirement for the contractor to allocate ten per cent of the procurement to SME contractors

Operating Review 2014 | Developments

Oman Tourism Development Company - Omran

W Hotel

Other projects Quriyat-Sur Rest Area Travellers’ oasis

Leading-edge luxury in the heart of Muscat

As the city develops and the demand for first-class facilities in the region increases, the W Hotel is being developed to attract a vast array of guests into its luxurious guestrooms and facilities. To be located in Muscat’s Shatti Al Qurum District, adjacent to the Royal Opera House and the site of InterContinental Hotel Muscat.

Quriyat-Sur Rest Area, located in the proximity of the touristic site of Sinkhole is the pilot project in Omran’s innovative “Rest Areas” concept, to develop a nationwide network of rest areas along Oman’s main roads and highways. The construction contract was awarded in July 2014 and the work began on phase 1 in September. The Phase 1 consists of the retail building, prayer rooms, public area and some additional retail shops for the filling station and ROP station. The project is aimed for completion in June 2015.

As of 2014, the W Hotel construction contract has been signed with L&T. Mobilisation begins in 2015 and is expected to break ground in Q1 2015. The hotel is scheduled for opening in Q2 2017.

Al Baleed Seafood Restaurant Exceptional cuisine

As part of the project, a structured car park is being developed alongside the Royal Opera House Muscat, which will service the 500-seater extension theatre as well as the W Hotel as one integrated unit.

Set on 13,000 m² of coastline facing a lagoon on the Arabian Sea, Al Baleed Restaurant has been designed incorporating local aesthetics and will feature a 60 seat indoor restaurant and buffet and 50 seat outdoor patio dining area plus a 30 seat rooftop dining area. Construction on the restaurant began as planned in 2014 with a local contractor by the name of Khotoot Al-Reef Transport Services & Contracting Company based in Salalah. The project is targeted for completion in Q2 2015. Over the construction period of the restaurant , nearly 85% of the overall budget, has been spent on local contractors and suppliers. This is in line with Omran’s commitment to promote local SMEs. The restaurant site is quickly gaining a reputation for its HSE standards, site organisation and overall quality.

Once operational, the W Hotel will be operated by Starwood Hotels and Resorts and will be the first of its kind lifestyle hotel in Oman. The state-of-the-art 5-star W Hotel will cover a gross floor area of approximately 46,000 m² on 9 levels. The W Hotel Muscat will boast 290 hotel rooms and suites, including 29 suites, and 4 special suites. The property will also include spa facilities, multiple dining venues, swimming pools and water features, a fitness centre, ballroom, meeting rooms, retail space and business centre.

1 Artist’s impression of the upcoming W Hotel

2 Quriyat-Sur Rest Area

3 Al Baleed Seafood Restaurant

Contribution to the local market Quriyat-Sur Rest Area • OMR 1,220,000

Al Baleed Seafood Restaurant • Construction of the Building and Infrastructure awarded to local companies in the tune OMR 541,109 • Supply and installation of kitches equipment worth OMR 80,000 also awarded to local company

Operating Review 2014 | Joint ventures

Oman Tourism Development Company - Omran

Joint Ventures

Ras Al-Hadd Tourism Development In November 2014, a comprehensive development agreement was signed between the Government of Oman and the Qatari Diar Ras Al-Hadd Development Company SAOC. In accordance with the development agreement, a new joint venture company named Qatari Diar Ras Al-Hadd Development Company SAOC; jointly owned by Omran (30%) and the Qatari Diar Group (70%), will undertake the development of the eco-themed Ras Al-Hadd tourism Development which is located in Ras Al Hadd, in the Governorate of Al Sharqiyah. The development itself will cover a land area of approximately 1.848 million sq.m and has an estimated project budget of OMR 400 million.

The Ras Al-Hadd Tourism Development phases 2

Phase 2 Addition of 100 new 5-Star hotel rooms to the resort, an additional 196 residential villas, and a dedicated center for wildlife preservation and observation set over a 10,000 square meter area.

Phase 1 Establishment of a 100 room eco-themed resort, 50 hotel villas, 150 residential villas and a 7,000 square meter area for a market souq. The expected completion of the first construction phase is anticipated by the end of 2018.

Phase 4 The final phase of the Ras Al-Hadd project will witness the opening of a 150 room 5-Star Hotel, 50 hotel villas, 175 new residential villas, as well as the construction of a dedicated heritage centre, and a specialized accommodation zone for support staff with a capacity for 836 employees.

Phase 3 Construction of a separate 200 room 5-Star Resort, an additional 50 hotel villas and 179 residential villas. It will also include the development of a new market souk area covering 16,000 square meters, as well as the construction of a specialized marine life center.

Operating Review 2014 | Joint ventures

Oman Tourism Development Company - Omran

Saraya Bandar Jissah Saraya Bandar Jissah is a 50-50 joint-venture between Omran and Saraya Developments and is located on the outskirts of Muscat on a secluded beach surrounded by the Hajar Mountains. The destination is being built over 2.2mn sqm of land with an expansive beachfront aspect and a high point of 250m above sea level.

In 2014, the Earthworks contract was tendered together with that of the recreation centre contract and the construction contracts for the first three residential zones, zone 3, 5 and 8, were awarded. Scheduled for a grand opening in 2017, the development also incorporates two luxury hotels, whose construction contracts have also been awarded in 2014, to be operated by the internationally renowned luxury operator, Jumeirah hotels and Resorts. The hotels, each positioned on the beach, will offer tourists a distinctly Boutique or Resort experience, and will form the major leisure component of Saraya Bandar Jissah, providing their guests with a luxurious and relaxing home away from the day-to-day rigours of life.

This OMR 231 million ITC project released the residential Zone Zaha to the market in September. Properties have already been snapped up by owners and investors; selling well beyond its targets for 2014. Zaha represents just the first of five residential zones that, once completed, will be home to 398 exclusive residential units, spacious hilltop villas, stylish town-houses and luxury apartments - all with attractive waterfront and mountainside views.

1 Rendering of apartment 2 Zaha Residential Zone, recreational club and park

1 2

As a whole, Saraya Bandar Jissah has earned a reputation as one of the leading ITCs in Oman, and recently emerged as the winnerof three prestigious awards at theInternational Property Awards ceremonyheld in Dubai. It was crowned the ‘Best International Mixed-use Development’ in the global category as well as ‘Five Star award for New Hotel Construction and Design category’ and ‘Five Star award for Mixed-use Development category’ in Oman.

Operating Review 2014 | Joint ventures

Oman Tourism Development Company - Omran

Salalah Beach

Other projects

Salalah Beach is an Integrated Tourism Complex (ITC) under development by Muriya Tourism Development Company, the Orascom-Omran 70-30 joint venture. The project covers 15.6 million square metres along 8.2 kilometres of coastline and includes 3,000 luxury freehold apartments and villas and four 5-star hotel properties providing 1,260 rooms and 145 residences, including the 5-star Mรถvenpick Hotel (with 398 rooms and 58 residences) to be opened in 2018, the recently opened 5-star Rotana Hotel (with 399 rooms and 47 residences) and the 5-star Club Med (with 398 rooms and 32 residences), to be opened in 2018, as well as the 4-star Juweira Boutique Hotel (with 65 rooms and 18 residences), which was opened in 2012.

Muriya developments in Oman gathered further momentum in 2014 with the government having extended the development agreement to January 2018 and the Rotana hotel, which is the largest hotel in the Sultanate, has started operations in 2014. The construction of Al Fanar hotel in Salalah has also been awarded. Starting in 2015, the real estate components are on track to be completed and the project as a whole is moving ahead.

Duqm Frontier Town

Duqm Frontier Town (DFT), the first planned community in the Duqm Region, is being built by Duqm Development Company SAOC (DDC), a 50-50 joint venture between Omran and Oman Drydock Co. The project covers a land area of 270 hectares. As of the end of 2014, Oman Drydock Co SOAC bought Daewoo Shipbuilding & Marine Engineering Oman LLC shares in DDC and the Phase 2 of the Frontier Town Master Plan and feasibility study was tendered.

In addition, Jebel Sifah, the 6.2 million square metre integrated tourism complex (ITC) is progressing well. The project will add a further 2,700 residential units and 590 rooms in four luxury hotels to the local tourism sector; including the 4-star Sifawy Boutique Hotel (opened in 2012), 5-star Hotel Missoni (to be completed in 2018), 5-star Four Seasons Resort (to be completed in 2018) and 5-star Angsana Hotel (to be completed in 2018).

Salalah Beach will feature retail outlets, restaurants and cafes, two 18-hole golf courses, an international school and a 200-berth Marina, which became operational in 2013.

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2 1 Duqm Frontier Town 2 Al Baleed overview

3 Hotel entrance view

Al Baleed Resort

Al Baleed Resort has been designed to provide visitors from around the world easy access and comfortable accommodation adjacent to the ruins of the ancient port city of Al Baleed, an archaeological treasure and cultural and historic destination inscribed as a UNESCO World Heritage site. The 50:50 joint venture between Omran and Musstir (an MB Holdings Company), and to be operated by Anantara, the resort is aimed at providing the increasing numbers of visitors with easier access to the site and making their visits a trip to remember. As of the end of 2014, construction is ongoing and is scheduled for completion in Q4 2015.

Operating Review 2014 | Hospitality assets

Oman Tourism Development Company - Omran

Hospitality assets

Atana Hotels Created by Omran, Atana Hotels represent quintessential Omani hospitality. The Arabic name ‘Atana’ which translates as ‘Came to us’ is a first of its kind Omani hotel brand that blends age-old local traditions with contemporary culture.

Omran took over operations of Atana Khasab in January 2014 while Atana Musandam underwent a soft opening in April 2014 with the addition of a further 105 keys to the Musandam area. Both hotels have been operating in a soft opening phase and have been well received by the market and visitors to the area thanks to its family oriented environment with child-friendly location, unique architecture, traditional food and more. Atana is the sort of hospitality offering that was missing in Oman, making this Omran’s first foray into that segment.

As a 4-star hotel and resort operator, Atana Hotels aim to celebrate the diversity and integrity of the country and its people, enabling guests to explore a genuine Omani hospitality experience that has been designed and executed to extraordinary quality standards. Run by Omran’s subsidiary, the National Omani Hospitality Company (Dhiaffa), Atana operates two hotels that mark their presence in the northern tip of the Musandam peninsula; Atana Musandam and Atana Khasab, offering relaxing environments with Omani inspired lifestyle concepts and an authentic guest experiences.

Being an Omani brand, Omran are currently looking into securing a flagship property in the country. As the hub for all tourism into the country, Muscat is the location of choice; ideally securing a property within one of its projects during 2015.

“We have always said that Atana needs to grow organically. It needs to be given the incubation period needed to fully mature as a brand. Atana as a fresh brand is only one year old and already has two properties, and we have received significantinterest from other developers for Atana to manage their hotels. To have that sort of attention in the first year is very heartening and promising indeed. Making it clear that there is a demand for this concept.” Eng. Wael Al Lawati, Group CEO

Operating Review 2014 | Hospitality assets

Oman Tourism Development Company - Omran

InterContinental Muscat The InterContinental Hotel Muscat is a landmark property that has been an integral part of the capital’s social and cultural life for over 35 years. Set upon 35 acres, surrounded by extensive landscaped gardens, the InterContinental remains one of Omran’s anchor hospitality properties in Muscat.

Atana Musandam’s contribution to local market

• OMR 12 million awarded by Atana Musandam Resort to local contractors • 15% of total contract value to Al Ansari for the construction • 6 Local companies involved with the design • 90% of the inception of the brand was conducted by SME’s and local talent

Recognition

2014 saw the renewal of the InterContinental Hotel Group hotel management contract for an additional five years. In conjunction with this renewal, the hotel is currently undergoing a major 2-year renovation, in order to cater for new visitors as the city develops and the demand for first-class facilities in the area increases. This renovation will be done hand-in-hand with the construction of the new W Hotel, being constructed adjacent to the InterContinental Muscat, and the new unified parking lot, which will be shared by the two hotels and the Royal Opera House Muscat interconnected by a series of walkways.

• Gold Circle Award 2014 from Agoda

Family oriented themed hotel

Khasab, Mussandam Governorate

Restaurant, retail facility, kids ice cream kiosk, swimming pools, fitness centre, business centre

10 minutes from Khasab Airport, 55 minutes flying from Muscat and 5 hours by ferry

1 Authentic Omani interiors at Atana Musandam

2 Atana Musandam

110 rooms, ranging from studios and duplex rooms to suites

5-star hotel

Muscat

258 rooms and suites: 11 suites, 168 single-bedded rooms, 78 double-bedded rooms

atanahotels.com

Recreation club, gym, jacuzzi, steam room, sauna, plunge pool, leisure pool, lap pool, tennis courts, retail shops and beauty salon

15 minutes from Muscat International Airport

intercontinental.com/muscat

3 Majlis at Atana Khasab

4 Atrium at InterContinental Muscat

5 Omani staff account for 51% of all employees

Operating Review 2014 | Hospitality assets

Oman Tourism Development Company - Omran

Alila Jabal Akhdar Resort Set 2,000 metres above sea level just two hours’ drive from Muscat, Alila Jabal Akhdar Resort is the first luxury resort development in the stunning, mountainous Jabal Akhdar region of Oman. Managed by boutique Asian hotelier Alila Hotels & Resorts, Alila Jabal Akdar Resort provides access to one of Oman’s most breath-taking and untapped regions. The resort sets a precedent for eco-tourism and is a model for sustainable development both in Oman and the region. Internationally recognized for its environmental design, construction and operation, the resort incorporates various eco-friendly elements such as water treatment facilities, solar paneling and energy saving lighting and thermal control systems. During the development phase, the construction team implemented an ongoing policy of recycling through the re-use of local building materials in harmony with the surrounding environment. Building materials were also locally sourced and indigenous floras were used in the landscaping of the resort, creating synergy between the natural and man-made.

“The response for Alila has been very satisfying for us; primarily because we didn’t just get lucky with the location. There was a lot of thinking behind the property and many years of careful planning. We knew what we were doing, and we did it in a very responsible manner. It is a LEED certified hotel – a green building with authentic Omani architecture that has been responsibly executed as well as constructed and operated with the active engagement of the local community.” Eng. Ali Al Rasbi, Chief Operating Officer

Recognition • Condé Nast Traveller featured the resort in

Contribution to local market

2014 Gold List for the world’s best hotels in the

such properties in the Sultanate to be included

• 100% of the OMR 14.56 million construction contract awarded by Alila Jabal Akhdar to local contractor • More than 85% of spend during construction were on products & services from local companies • Aside from the main contractor and sub-contractors, 20 other local companies were contracted from Jabal Akhdar itself for other services • All FFE were sourced from Al Zubair • Locally produced handicrafts and natural products are being supported in the Spa and gift shop • Local tours and excursions organized by Alila Jabal Akhdar to provide indirect support to local merchants and small businesses

‘History Lessons’ category, one of only of two

• Recognized by CNN among the amazing hotels

of 2015

Oman Green Awards and Summit 2014

‘Hospitality Project of the Year’ by leading

• Awarded the ‘Green Landscape Award’ at the • Named ‘Sustainable Project of the Year’ and

infrastructure and development portal -

ConstructionWeekOnline.com

Britain’s Prince Harry visited near the end of 2014 in order to see one of the first LEED certified projects in Oman

1 Authentic Omani decor

2 Infinity pool

5-star hotel

Al Jabal Al Akhdar, Governorate of Dakhliya

86 hotel suites

Spa, health club, cliff side restaurant and pool

170 km from Muscat International Airport

alilahotels.com/jabalakhdar

3 A Royal visit

Operating Review 2014 | Hospitality assets

Oman Tourism Development Company - Omran

Our other hospitality assets Golden Tulip Dibba

Millennium Resort Mussanah

Golden Tulip Dibba is a four-star family resort with 54 fully-appointed rooms and suites, each featuring a private terrace or balcony with panoramic views of the Sea of Oman.

The original location for the 2nd Asian Beach Games, the Millennium Resort Mussanah is situated on a one million square meter land at Wudam Al Sahil, Mussanah. The Resort is a multi-purpose property that operates as a mixed use residential commercial and tourism destination, featuring a focal point marina, a four-star hotel, marina apartments, retail units, various restaurants, a media centre and conference and meeting facilities.

Crowne Plaza Duqm Crowne Plaza Duqm features 218 guest rooms, 11 executive suites, 6 family suites and one royal suite, and offers a range of dining facilities, a fitness centre, swimming pool, business centre, ballroom and meeting and conference facilities. In June 2014, Crowne Plaza Duqm staff quarters was completed.

City Hotel Duqm The 120-room City Hotel Duqm provides business travellers 3-star accommodation in close proximity to Duqm Port, Dry Docks, airport project and industrial zones.

Masira Island Resort Accessible by ferry, Masira Island Resort represents a combination of luxury and magnificent landscape, woven together creating a harmonious environment and memorable scenes. With a wide range of accommodation options, the resort also features a room especially designed for the people with special needs. Every room is spacious and comfortable. Traditionally furnished and fully air conditioned, all the rooms have balconies and deck chairs.

Operating Review 2014 | Community

Oman Tourism Development Company - Omran

Community

One with the community Omran’s CSR activities have always been an integral part of its business philosophy and operating culture. Over the years Omran has been actively engaging in programmes and initiatives with the local community; and this is something that is actively reflected in all of the developments, investments and assets it manages. Apart from such individual initiatives taken up by these projects, Omran in 2014, focused on the protection of Oman’s natural assets as part of its vision of promoting responsible tourism. In doing so Omran continues to set the standard for environment conservation in the country, helping spread awareness on the role of the environment as a key pillar of sustainability.

The first Sustainability Talk workshop

“Together we protect our marine life” campaign in Khasab and Dibba

Winner of Asia’s Best CSR Practices Awards (Best environment friendly project)

Omran’s 2nd Sustainability Report

Engaging our stakeholders from all of our local communities

Key achievements

The first customized training on coral reef cleaning for local divers

Sewing incubator in Khasab

Winner of Asia’s Best CSR Practices Awards (Women Empowerment)

Operating Review 2014 | Community

Oman Tourism Development Company - Omran

‘Together we protect our marine life’ In celebration of ‘Earth day’, Omran, in association with Oman’s Ministry of Environment and Climate Affairs (MECA) and Atana Hotels, organised a creative marine conservation campaign in two wilayats in Musandam – entitled ‘Together We Protect Marine Life’. The community driven event was a part of a broader campaign consisting of four main activities:

Lectures and workshops for adults and children at schools and Omani Women Association - Khasab and Al Wafa Centre for Disabled

Under-water clean-up training courses

Beach clean-up campaigns with the community

A two-part practical Coral reef and beach clean-up session with volunteer divers form Omran staff, MECA and community members

The first of the two coral reef clean-up campaign sessions coincided with the ‘Earth Day’ on April 22. Omran celebrated with the local community in the Wilayat of Khasab by building awareness on the conservation and protection of the Sultanate’s marine life and running a community driven beach clean-up alongside the coral reef clean-up. The second session began on November 11th in the Wilayat of Dibba. It included an intensive 3-day dive training course followed by a wide-ranging underwater clean-up of the local coral reefs. The Dibba beaches underwent a thorough clean-up with the help of the local community. Both activities, including the training, were held under the supervision of Five Oceans Environmental Services L.L.C.

“We are glad to have joined hands with Omran in such a great initiative to protect and sustain the marine life. I personally believe my participation with the Omran team in their first phase of the campaign in Khasab was one of the most significant experiences in my life. And that was what encouraged me to take part in this event in Dibba. I am looking forward to participate in more events in the future in order to protect our beautiful environment for the future generations.” Aida Al Jabri, Marine Environment Specialist –MECA

Operating Review 2014 | Community

Oman Tourism Development Company - Omran

Sewing incubator

Other ongoing initiatives

Omran has implemented the women-oriented ‘Sewing incubation programme’ aiming to empower the local NGOs and SMEs in the Wilayat of Khasab. The programme was designed to empower women through the provision of training as well as to educate tailors from the local community to trust and invest in their own potential. The project also involved the training of local women in Khasab on how to make laundry bags for the two Atana hotels in the region. This was done in corporation with a local NGO in Khasab – the Women’s Association, where the training was delivered by Sidab Sewing Group, a sewing group created by local women in the area to learn and upgrade their sewing skills and supplement their household income from the products they create.

In addition to its most recent initiatives, Omran continues to support several of its other ongoing CSR programmes. Chief amongst these are Zaree and Intajee and Musahamatee. The former was launched in 2012 and remains one of Omran’s most internationally recognized initiative that encourages micro-enterprise for women living in Oman’s various communities. Intajee, on the other hand, is Omran’s signature programme to nurture sustainable development and growth of micro-business throughout the Sultanate. In addition to these ongoing initiatives Omran continues to raise funds for the communities through its Musahamatee initaitve in collaboration with the NGOs and its hospitality assets, as well as holding several programmes and stakeholder engagements across various regions of the Sultanate as part of its CSR efforts. Looking ahead, Omran will no doubt continue to play an active role in enhancing the livelihood of local communities across the Sultanate and take a leading role in the promotion of sustainable growth and environment conservation in the country.

Operating Review 2014

A brighter tomorrow 2014 was the year where Omran established a platform as it headed into a new era of growth. It has maintained a positive track record and is only going to move forward towards greater goals and an even more prosperous future hand-in-hand with the communities in which it operates and the aspirations of the government of Oman. With a strong focus on local development and investment, Omran aims to engender a new type of economy in the country and see the growth of the private sector to a level it has never reached before. Omran also will continue to support the growth of the Tourism Sector and Sultanateâ&#x20AC;&#x2122;s goal of being the destination of choice for visitors from around the world. The various investments, developments and assets of Omran create a rich and lasting impact on Omanâ&#x20AC;&#x2122;s future, driving the future of its communities and more importantly the welfare of the people as Oman heads towards a brighter tomorrow.

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Al Baleed Seafood Restaurant Hay Al Irfan - Oman Convention & Exhibition Centre - Crowne Plaza - JW Marriott - Mall - Business Park Quriyat-Sur Rest Area W Hotel

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Al Baleed Resort Duqm Frontier Town Jebel Sifah Ras Al Hadd Tourism Development Salalah Beach Saraya Bandar Jissah

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