Renaissance Day

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Oman: A nation with deep roots

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TIMES OF OMAN SPECIAL SUPPLEMENT

renaissance day

Thank you for making Sultanate a symbol of safety and security!

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Shahzad Raza shahzad@timesofoman.com

Sultanate of Oman A bastion of tolerance

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A bridge between Asia and GCC

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t’s 23rd July today and the whole country is celebrating the resounding success of Omani Renaissance that started under the benevolent rule of His Majesty Sultan Qaboos bin Said in 1970. Forty six years on, the journey of such remarkable progress and building a nation is going on in full swing. The story of Sultanate of Oman finding its feet and standing tall in a matter of just four decades continues to fascinate one and all.

“The Omani ‘model’ embraces coexistence, tolerance and cultural excellence; it sees no contradiction between Islam and being modern; its foreign policy is amenable and peaceable, and all of its acts are directed to keep the region out of war,” wrote a prominent American journalist Georgie Anne Geyer in an article on Oman in which she called the country as ‘the emerging Switzerland of the Middle East’.

Women empowerment has been the cornerstone of government policies focussing on developing a capable and efficient work force. This is precisely why we see Omani women playing an equally important role in their country’s march towards continued progress.

That’s how His Majesty the Sultan had exhorted the daughters of the

soil in one of his speeches: “We call upon Omani women everywhere, in the villages and the cities, in both urban and Bedu communities, in the hills and mountains, to roll up their sleeves and contribute to the process of economic and social development.

We have great faith in the educated young Omani women to work devotedly to assist their sisters in their local communities to develop their skills and abilities, both practically and intellectually, in order to contribute to our Omani Renaissance which demands the utilisation of our entire national genius, for the realisation of our country’s glory and prosperity. We call upon Omani women to shoulder this vital role in the community and we are confident that they will respond to this call.”

His vision has now translated into a heart-warming reality with Omani women working hard to play an active role in every walk of life.

Steering the nation from strength to strength, His Majesty the Sultan has led the country with aplomb.

No wonder he is counted among the leading statesmen in the world and is widely respected for his efforts to promote peace and harmony. The Sultanate is seen as a hub of peace and security in a region infested with strife and conflict.

Oman and its people will remain eternally grateful to His Majesty the Sultan for making the country a symbol of safety and security.

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Oman: A nation with deep roots Oman’s rich and enduring culture and traditions have been ably supported by sustained economic growth, further bolstering all major socio-economic indicators, and transforming it into a major international investment destination.

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Noaman Abdul Majid

s the Sultanate gets ready to celebrate the Renaissance Day, the nation can proudly reflect and rejoice in its achievements over a period of almost half a century.

The world in general and this region in particular has weathered many upheavals during that time, but Oman has been a unique place as it has been hardly hurt by any of these cataclysmic events. The credit goes to the visionary leadership of His Majesty Sultan Qaboos bin Said and the people of Oman, who have reposed their trust in their great leader.

This stability has reflected sustained economic growth, which has boost all financial and social indicators. If we analyse the behaviour and course of action adopted by Oman during these challenging times, only one thing comes to mind—Oman is a nation with deep cultural and intellectual roots. Oman ranks ‘high’ on United Nations Human Develop-

ment Index, which indicates that the country has done very well over a period of time in all major socio- economic indicators.

On the economic front, Oman has wisely invested its petrochemical windfall towards long-term capacity building of the country. This is reflected in massive infrastructure development in road and electricity networks, airports, free zones, education, health care and the services sector. The infrastructure investment has created a trickle-down effect in the economy and strengthened other sectors, such as consumer and retail, travel, food and beverages, hospitality etc.

The multi-billion dollar Port of Duqm project will position Oman as the leading international logistics and petrochemical hub, connecting Asia with western and African markets. Duqm enjoys a strong politico-economic location.

It boasts of world-class infrastructure, several specialised business zones for petrochemicals, logistics, aquaculture, manufacturing, services and tourism and an investorfriendly business framework.

The existing and soon-to-be-completed infrastructure projects include a dry port, container terminal, sea port, fisheries port and refinery among others. A group of Chinese investors recently announced setting up a $10 billion industrial park in Duqm, including spending $370 million for infrastructure development.

Oman’s $2.5 billion bond was rated Baa1 with a stable outlook by Moody’s. The issue was reportedly oversubscribed by international financial institutions, which shows the confidence of the international community in the long-term eco-

nomic growth and stability of the country.

This is primarily due to the prudent fiscal and monetary policies that the Sultanate has pursued since the beginning. Oman enjoys almost perfect political stability by any international standard. This has allowed the government to develop long-term economic policies to boost economic growth, as well as diversify the economic structure of non-oil sectors.

In recent years, several GCC economies have attempted to position themselves as the hub of economic and financial activity for the region.

Oman offers a very competitive and cost-effective infrastructure and quality of living, compared with these places. The country has an additional advantage of having an abundant landscape, which has allowed it to

undertake horizontal infrastructure development in the countryside and urban areas. This development strategy is more environment-friendly and refreshing, compared with the vertical development taking place in some other regional economies, which results in congestion and has put more pressure on the ecosystem.

Oman is now strongly recognised in the international arena as one of the major emerging tourist destinations. The Ministry of Tourism recently unveiled its 2040 Tourism Strategy, which envisions around $50 billion in investments in Oman’s tourism sector, 90 per cent of which are expected to come from the private sector. This strategy is expected to create around half a million jobs.

The share of tourism in Oman’s GDP is likely to grow to 6 to 10 per cent during that time.

The investment made by the Oman government in infrastructure development will bring significant depth and sustainability to the country’s business environment and investor readiness. This would allow the younger generation to take part in long-term planning for their future with the confidence that they have the necessary infrastructure available to capitalise upon and build their fortunes.

Today, Oman offers investment opportunities across economic sectors, including food, retail, tourism, healthcare, education, infrastructure, manufacturing etc. With a sound financial system foreign investors also have access to local financial and strategic partners willing to join hands with them in developing any new ventures. The local financial institutions including banks,

investment and finance companies, high net-worth individuals and family business houses have a strong appetite for any viable project development activity in the local market.

Oman is rightly regarded by many as the best kept secret of Arabia. This is simply because the country has deliberately opted for a sustained and steady economic model to avoid frequent boom and bust economic cycles. In addition to the economic growth of recent years, the rising level of investment and trading activity with BRIC (Brazil, Russia, India and China) and other emerging market economies augurs a very prosperous economic future for the country. It’s high time that international investors seriously explore Oman as a hub for tapping Asian and African markets. — (Noaman Abdul Majid is Country Manager, Pak Oman Investment Company)

TIMES OF OMAN Special SUPPLEMENT

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renaissance day

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Sultanate of Oman A bastion of tolerance

Oman’s multicultural and tolerant character has drawn people from different parts of the world for centuries, to migrate and to trade with the Sultanate. Its moderate stance on religion and its welcoming populace have helped nurture a vibrant and progressive national character, which is

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aptly reflected in the advent of the Renaissance under His Majestry Sultan Qaboos bin Said, writes Gavinda Jayasinghe

t has long been established in the annals of history that the first migrants reached the shores of Oman as far back as the 15th century. The coastal dwellers of historic Oman, renowned for their nautical prowess, cultivated ties with the regional powers, who would ply their trade across the Indian Ocean and the Persian Gulf.

The seafarers from Sindh and subsequently Gujarat in India, who had a long history of braving the seas in order to further their trade relations, were some of the pioneering merchants to arrive and settle

in Muscat during this period. The Baloch and the Persians made their way across the sliver of sea separating the Iranian plateau from Oman, in several waves over the centuries.

Numerous foreign communities have gravitated towards this ancient land as a result of its strategic position in oceanic trade routes.

Many have remained and made it their home; this of course is attributed to the welcoming nature of Oman’s people, rather than the maritime advantage it provides.

Perhaps the accepting disposition of the Omani people is closely aligned with the outlook of moder-

ate conservatism espoused by the Ibadi school of Islam, which is the predominant sect here. It is one of utmost tolerance, and this is evidenced in the cordial and meaningful bonds the locals have maintained with the expatriate community over the years.

Even in the ancient past, the people of Oman, despite their orthodox interpretation predating even the two main sects of Islam, were tolerant and understanding of Christians and Jews, practising their religion on their land.

Over 500 years back, when most Gulf-Arab nations didn’t even have

non-Semitic people living in their midst, there is recorded evidence of a thriving Hindu community in Muttrah, where the Indian merchant settlers were given permission to erect Kovils and even follow their cremation rites. Patterns, such as this, have continued up to the present time, with followers of different faiths enjoying immense freedom, support and protection, the likes of which are unmatched in the region. The keenness to share what they possess and their land itself, a trait exhibited by the people of this nation, perhaps has more to do with their South Arabian herit-

age. Geographically and culturally, Oman has remained somewhat insulated from the rest of the countries encompassing the Arabian Peninsula, and therefore the people have nurtured customs, values and habits that are subtly distinct.

It is said that the character of a nation and its people, and therein the manner in which their foreign contingent is treated, can truly be gauged only in times of economic upheaval. The “Great Recession,” the global financial crisis, which consumed these parts from 2008 or so, and the more recent one as a result of plummeting oil prices in

the region, presented two definitive yardsticks by which to discern this.

Under the aegis of His Majesty Sultan Qaboos bin Said, the rest of the nation adopted a path of economic restructuring, which integrated and did not disregard the needs nor the presence of the expatriate community. From the Cabinet of Oman, the appointed Majilis al Dawla (Council of State of Oman) and the democratically elected Majilis al Shura (Consultative Assembly of Oman), to the companies (both government-owned and privately-held), which employ the local and non-local workforce, di-

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renaissance day rectives were sent to enforce pay cuts, reduce bonuses, limit insurance coverage, and to halt certain annual perks. The locals absorbed and continue to absorb the impact still, realising that there is much at stake with the widening budget deficit.

One might postulate that all of this simply amounts to rhetoric, and that the aggressive policies of Omanisation that have been followed over the past decade or more stand as an antithesis to the statements above. What we must remember though, is that Oman is the only Gulf country (Persian Gulf ) except Saudi Arabia, with a local population that exceeds in number their resident community. And so, it is imperative that there is a certain degree of parity in terms of employment opportunities, for the onus will one day rest on the Omani population to drive their nation forward. This is in stark contrast to the models of development adopted by Qatar, the United Arab Emirates (UAE), Kuwait and Bahrain, where the modus operandi is quite overt and observable.

There, many locals are handed ‘token’ jobs of little significance and input—ones that require little effort—in exchange for disproportionately high sums of money.

The major portion of the burden is thus borne by the migrants, who toil to drive these economies forward, while not gaining an equal share of the massive gains they’ve helped realise. Broad-ranging assertions these are, but they are certainly worth apportioning some attention to.

On the contrary, in most instances in Oman you will find local and foreign employees working alongside each other across a range of industries, and the gap in salaries is not as divergent.

There are exceptions to this of course, but in general we can safely say that discrimination is not easily found in this country.

Furthermore, when compelled to navigate through choppy waters, the entire obligation was not passed onto the foreign workforce nor were rash decisions made in eliminating them swiftly.

Instead the problems were dealt with and damage mitigated on an equal footing. What is to be gathered here is that the Omani

people were able to maintain their composure, and exercise compassion and goodwill in the treatment of relative outsiders to the country, during periods of economic hardship.

This stems from the innate nature of the Omani people, and it is hard to pinpoint its cause to a few single factors. A people are the result of hundreds of years in a certain environment, honing the customs, culture and social institutions, best suited to them. The resultant rich social values are possibly what the people of Oman can be most proud of on this Renaissance Day. You can sense that they do not wish to pursue agendas of modernisation that require wholly abandoning their conscience. Here, a triumph of basic human goodness can be seen.

When considering the period prior to the Omani Renaissance, and then the current era, we can confidently say that the contributions of the expatriates in the country’s development and its present stature have been duly recognised. This is reflected in the naturalisation of various families and individuals of non-Arab and non-Muslim origin and their seamless absorption into Omani society.

His Majesty Sultan Qaboos bin Said, a firm believer in policies of inclusion, sought the counsel of the various communities residing in Oman, since the Renaissance was first embarked on. He grasped the importance of considering various foreign perspectives in the formation of a modern state, while ensuring that the Omani identity and value system lay firmly entrenched in all aspects of civic life. The nation’s tolerant history, coupled with His Majesty the Sultan’s pragmatic approach to governance since the very inception of his rule, has allowed for the ushering in of an era of unparalleled advancement. It then follows quite naturally that Oman remains a centre of social harmony, in an otherwise volatile region.

(Gavinda Jayasinghe is an independent writer and singersongwriter. He commenced his tertiary education in Perth, Australia and completed his Bachelor’s degree in Missouri, United States. He can be contacted at gavindajayasinghe@gmail.com)

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A bridge between Asia and GCC

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Dr Anchan C. K.

n the past few years Oman has become a key player in region, its unique position and foreign policy is valued regionally and internationally, and has been one of the strengths of the Blessed Renaissance. Best Known as the “Pearl of Arabia” for its stunning landscapes and rich cultural heritage, Oman is also striving to adopt economic reforms that are in accordance with global market expectations and demands of our time.

Oman is aggressively pitching for foreign investment under the theme “Oman: A Bridge between Asia and GCC.” Oman has reacted to the sharp decline of oil prices and revenues by acclimatizing with it to protect its economy against the implications of this crisis. The Sultanate has taken several measures to ensure more flexibility and facilitate business and investment. International countries have hailed the Sultanate’s efforts to change the model of economic development and its focus in the 9th five-year plan on developing manufacturing industries, logistics, transport, tourism, fisheries, minerals and other non-oil sectors.

Oman also leveraged the opportunities to develop policies to rationalise public expenditure and enhance its efficiency. It also continued the programmes to develop the infrastructure and enhance the ability of the private sector to grow.

The government is continuing its programmes to attract investments from friendly countries at the different economic sectors and enhance the role of the private sector in the Omani economy.

Ease of foreign investments ...

Oman’s Ministry of Commerce and Industry is in the latter stages of implementing a new foreign investment law which was drafted with consultation from the World Bank. The stated purpose of the new law is clear: Attract a greater variety of global investors to the Omani economy. It is also taking necessary measures to provide healthy milieu for investment and business. It also launching major investment projects and cares for SMEs and entrepreneurship. In addition to the key five sectors that have been identified by the 9th five-year development plan namely the logistic, manufacturing industries, tourism, mining and aquaculture.

While still in draft form and subject to final review by the legislative and administrative bodies, if the new law is approved in its current form it is likely to contain provisions which achieve the following: Allow foreign investors to conduct

business in Oman without requiring a local sponsor in certain business sectors; Increase the maximum percentage a foreign investor can generally hold in an Omani company from 70% to 100% in certain business sectors; Lower or remove the share capital requirement threshold (currently OMR 150,000 / USD 390,000) in certain business sectors; and Provide an opportunity to use arbitration to settle disputes.

The new law, if passed, will resonate positively with global investors and provide additional encouragement to capitalise on a market where transparency and ease of doing business have improved considerably in recent years, according to figures collected by independent bodies.

Once approved, the new foreign investment law could dovetail well with the proposed new law on the mining of Oman’s rich reserves of metals and minerals as investors look towards the start of the next upturn in the commodities cycle.

GCC economic growth

Economic growth of Gulf Cooperation Countries is forecast at 2.5 per cent in 2016 and to recover to 3.1 per cent in 2017. On the other hand, Arab oil-importing economies are expected to grow at a higher pace of 3.8 per cent in 2016 and 4.3 per cent in 2017, in line with expectations of gradual improvement in domestic conditions and the recovery of key economic sectors due to anticipated better performance of global economy and international trade.

It is expected that the inflation rate for Arab countries as a group will rise to 7.4 per cent in 2016, reflecting the inflationary pressures resulted from the ongoing governments’ efforts to reform subsidy systems. In addition to the expectations of increased inflation rates augmented by demand pull factors, due to the expected rise in wages and salaries in some Arab countries. The shortage in the supply side for goods and services in some Arab countries that witness internal developments will be reflected on the domestic price level in these countries.

Banking sector - incremental growth

The Sultanate’s banks have achieved an incremental growth of OMR2,354.9 million or 12.6 per cent in credit to OMR20.98 billion for the 12-month period ending March 2016. The total deposits of banks also rose by OMR1,213.9 million or 6.49 per cent to OMR19.91 billion during the same period. The Sultanate’s total bank branch network stood at 548, which includes 427 branches of local banks, 38 branches of foreign banks, 23 branches of specialised banks and 60 branches of Islamic banks and window operations at conventional banks.

Growth of Islamic banking is far outstripping that of the conventional banking segment with Islamic banking assets up more than 62 per cent year-on-year at the end of March. Recent regulations on sukuk (Islamic bonds) are helping drive growth in Oman’s Islamic banking sector, with sharia-compliant lenders gaining ground, sukuk are expected to play an important role in the country’s Islamic financial mar-

kets as they offer an alternate means of fundraising for local companies.

The pace of expansion of the Islamic segment indicates growing demand for sharia-compliant products in the marketplace. Oman’s Islamic banking sector has two dedicated sharia-compliant banks, Bank Nizwa and alizz Islamic bank, which both began commercial operations in 2013. In addition, six of Oman’s seven domestic conventional banks have opened Islamic banking windows, giving them access to the growing market for sharia-compliant products. Looking ahead, the country’s Islamic financial sector stands to benefit from new regulations from the CMA that clarify requirements for issuing sukuk and provide a legal framework. In particular, the new rules aim to provide greater transparency and protection to investors in sukuk transactions by building on existing codes covering company law and capital markets. The new regulations are expected to expand the range of investment instruments available in the sector, gradually generating greater investor interest.

Oman’s banking sector is expected to gain from the planned merger between Bank Dhofar and Bank Sohar, resulting in the improved ability of well-capitalised banks to effectively compete within the region and the synergies that are expected to stem from such a merger. This is one of the major mergers for Omani banks, after the merger of HSBC Bank Oman and the Oman International Bank almost four years ago.

Focus on tourism

Oman is the least polluted country in the Middle East, according to the 2016 report on the numbeo.com website. Numbeo is the world’s largest database on living conditions, health care, traffic, crime, pollution, based in Belgrade, Serbia. The report ranks Muscat as the 69th least polluted country in the world. Abu Dhabi came in second in the Middle East followed by Dubai.

Tourism will continue to be a key factor for Oman’s economy, keeping in view the Ministry of Tourism is charting out plans, the contribution of tourism sector to the country’s GDP will range between 6 per cent to 10 per cent and the number of Small and Medium Enterprises (SMEs) would be 1,200 by 2040. The value of expected investments is about 19 billion riyals of which only 12 per cent will be by the public sector.

The investments required to implement the Omani Tourism Strategy (2016-2040) would be about $18.968 billion, 88 per cent of which will be borne by the private sector.

The strategy implementation plan is divided into three parts. The first part (2016-2020) includes the launching of the major and direct Omani experiences related to the best Omani authentic experiences, availing more than 5,620 new hotel rooms, creating more than 76,384 new direct job opportunities and implementing the leadership and empowerment initiatives.

The second part of the strategy (till 2030) includes the launching of three Omani major experiences, adding more than 15,419 new hotel rooms and availing more than 126,900 direct jobs. The third part (2031-2040) includes the launching of three major Omani experi-

ences, adding more than 29,596 new hotel rooms and availing more than 242,990 fresh direct jobs.

The Sultanate of Oman, which is fast emerging as an attractive tourist destination in MICE (meetings, incentives, conferencing, exhibitions) in the Middle East, and which had attracted nearly 300,000 Indian tourists in 2015, is expecting a 15 to 20 per cent rise in their numbers this year. Oman is set to become a major regional centre for MICE, for which the country’s tourism ministry has established a new convention centre. The objective of the centre is to support the international and local organisations in hosting their events and cater to their requirements. The main aim is to promote Oman as an ideal destination for the MICE tourism sector.

Oman Air The flagship carrier Oman Air is the flagship carrier of the Sultanate of Oman founded in 1993, the airline has since witnessed massive growth and has played a major role in making Muscat an important traffic hub in the Middle East, supporting the commercial, industrial and tourism sectors.

Oman Air won two awards at the World Travel Awards Middle East 2015, where the national carrier of the Sultanate of Oman came top in the ‘Middle East’s Leading Airline - Business Class’ and ‘Middle East’s Leading Airline - Economy Class’ categories. Oman Air was also named as the winner of the ‘Best Airline Staff Service in the Middle East’ award at the Skytrax World Airline Awards 2015.

At the WorldTravel Awards 2015, the national carrier was named the ‘World’s Leading Airline Economy Class 2015’ as well as airline’s lounge at Muscat International Airport was named ‘World’s Leading Airport Lounge - Business Class 2015’.

Oman Air also won the Best International Airline Award 2015 at the North India Travel Awards held in India. More recently Wings of Oman received ‘Best In-flight Magazine’ award at the prestigious World Marketing Congress’s Global Marketing Excellence awards held in Mumbai, India.

Oman Air has chosen SmartKargo, providers of air cargo management solution, to power their cargo sales and operations, beginning June 2016. SmartKargo is the only cargo platform that is 100% cloudbased, which delivers a range of benefits for users, including electronic airway bill, highly flexible pricing and ratemaking which increases cargo sales, quick completion of all tasks and 24/7/365 support from trained SmartKargo experts through three global call centers.

SmartKargo’s robust and flexible capabilities will help leverage joint venture agreement with Cargolux to develop Muscat as a logistics hub, ready to flow a wide range of commodities from the USA, Europe, and Africa to destinations throughout the Gulf and Middle East, South Asia, and beyond.

Shipping & ports .... worldclass standards

Oman’s main ports will continue at healthy levels in 2016, as expansion of capacity continues apace. This will strengthen Oman’s position as a key transhipment hub as well as meeting growing demand for the

import and export of key drybulk materials. The government’s efforts to grow the non-oil based economy as well as shore up infrastructure around the main shipping hubs will also benefit trade in the region.

Over the medium term, Oman’s shipping industry will continue to grow, with container throughput at the Port of Sohar seeing particularly strong improvements. The Port of Salalah, which makes up the bulk of the country’s container activity, has been receiving positive growth indications.

Oman Shipping, which plans to strengthen its fleet strength to 53 vessels within this year, is looking at opportunities in Duqm to provide ships for the proposed Duqm Refinery, which is likely to be ready by 2019. Oman Shipping has a mix of high-tech fleet spanning a diverse range of very large crude carriers (VLCCs), LNG carriers, product tankers, multi-purpose vessels, bulk carriers and container ships. Starting with LNG transportation, Oman Shipping’s expansion was very fastpaced and broad-based to cater to the needs of Oman’s oil and gas, petrochemical and other industries International experts confirmed the world-class standards at the terminal in Sohar, when Vale in Oman won the prestigious International Bulk Journal’s Award for the Best Dry Bulk Terminal at a ceremony in Antwerp, Belgium, recently. In large part thanks to its prime location just outside the Strait of Hormuz, as well as a draft of up to 25 metres, Sohar has become one of the world’s fastest growing port and freezone developments with investments today totalling $25 billion.

Sohar greeted the one-hundredth Very Large Ore Carrier, or VLOC, to berth at the port since Vale in Oman’s operations started in 2011. Weighing in at 388,000dwt and measuring 366 metres in length, more than the height of the Eiffel Tower in Paris, the MV Berge Everest is part of a large fleet of specialised ships that transport iron ore around the globe for the Brazilian mining giant. The agreement builds on world-class infrastructure already in place in SOHAR, currently operated by Vale in Oman to import and export millions of tons of iron ore and pellets.

Oman’s deep-water bulk jetty can provide the required services at globally competitive prices to help fuel further growth in Sohar Port. The jetty is the longest in the region and ranks in the world’s top ten on draft.

Export Club

With the rise in non-oil Omani exports, Ithraa, the Sultanate’s inward investment and export promotion agency, has launched an Export Club, with the support of the Oman Chamber of Commerce & Industry (OCCI) and leading businesses from across the country. The Export Club has been designed to provide local businesses with a network that will help small companies begin to export as well tackle challenges facing current exporters in international markets.

The Export Club has been created to help local non-oil exporters companies have the opportunity to take the initiative to drive change forward in innovation; design; marketing; training; technology; and logistics. tackle these issues, prosper and grow internationally.

Oman has many export success

stories, where companies are competing globally, not just on price, but by adding value using innovation, higher skills, investment and good business practice to create goods and services that people want to buy.

Today, Omani companies are selling goods in over 136 countries, from fibre optic cables, batteries, luxury perfumes, automotive spare parts, marble, furniture to food production.

Fascinating wealth of agro biodiversity

Oman has a fascinating wealth of agro biodiversity, with a dazzling variety and variability of plants, animals and micro-organisms. They include over 1,200 plant species, out of which 485 are medicinal plants.

Their effective maintenance and sustainable utilizing are essential to conserve them for the posterity.

The National Plant Agro iodiversity Conservation Strategy is an ambitious stride towards understanding the value of agro biodiversity and its importance in contributing to the overall development of ecosystem, environment and food security in Oman. The strategy seeks to improve the livelihood of the people by promoting policies and viable programmes for the conservation and the enhanced use of plant diversity.

The National Plant Agro biodiversity Conservation Strategy will provide a blueprint to ensure the conservation of the genetic diversity with a particular emphasis on crop landraces, crop wild relatives, medical plant and wild harvested species of socioeconomic importance at national and regional level.

The strategy is expected to integrate national environmental strategies like NBSAP and NSAD and bridge the gaps in conservation programmes. It will also support cooperation between national institutes through relevant sectorial or cross-sectorial plans, programmes and policies for best management of wild plants growing in Oman.

Education and training

Oman’s national development plans, Vision 2020 and Vision 2040, stress the key role of education and training in creating a more diversified economy, with a focus on longterm sustainability.

Over the years, government reform efforts have seen the secondary school enrolment rate rise. Oman enacted a strategic plan to further revamp secondary education in order to better prepare students for university and the labour market, with a particular focus on grades 11 and 12. As higher numbers of students graduate, economic planners, business leaders and education specialists have been working with greater intensity to ensure that new job-seekers are fully equipped for an increasingly competitive work environment.

Adapting the education system and expectations of students to the needs of the private sector could help produce graduates who are not only qualified for the jobs available, but also open to a wider variety of employment opportunities. However, this mindset shift is unlikely to happen overnight, and will require ongoing cooperation between the government and private sector players. continue on page 8

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renaissance day

Ministry’s continuing efforts improve healthcare The concerted efforts made by the Ministry of Health in Oman have begun to bear fruit and have helped it earn laurels from the international community, which has commended the ministry’s efforts to keep abreast with the latest technological developments in the medical field and bringing them to the Sultanate.

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he judicious and continuous planning undertaken by the Ministry of Health (MoH) through its health development plans that have been implemented every five years since 1976, has led to supporting the health system and contributing to raising the overall health standard of the population.

The eighth Five-Year Health Development Plan (2011-2015) was a continuation of a new “strategic plan” that the ministry has followed since the seventh Five-Year Plan, which led to a clear vision and proper orientation to determine and address problems and priority needs.

The plan took into consideration regional and international trends, as

well as the United Nations’ Millennium Declaration made in 2000.

The ninth Five-Year Health Development Plan (2016-2020) has also brought about a new approach in keeping with the demographic and population change, and health and technical developments seen in the world. The strategies and goals of the ninth Five Year plan have been built on seven pillars: governance, leadership, providing health services; human resources; health information, research, health products, vaccines, medical technology and health financing, cooperation and partnership between various sectors.

The ministry imparts great care to the health workforce, which is seen as the backbone of the provi-

sion of health services. Omani cadres working in the health field have been developed and qualified to support the health system. Also, the ministry is concerned with information and statistical data to assess the five-year plans and work on scientific proper planning. The Sultanate has garnered much praise from the international community on the achievements in the health sector for the advancement of society.

The ministry has worked hard to prepare a long-term plan; an outlook for the health system in 2050.

This step is being seen as transitional for the health system and will help it keep pace with the medical and technical developments in the health system in the world, and this

your biggest road hazard is in your hand a times of oman hands-free driving initiative

is what will be mirrored in the near future in all aspects of health.

The total number of hospitals in the Sultanate in 2015 was 69, of which 49 are run by the MoH. The total number of beds in all these hospitals reached 6,468, resulting in a ratio of 15.5 beds per 10,000 for the population, of which 4,998 beds were in public hospitals; i.e.

77 per cent of the total hospital beds in the Sultanate.

Regarding primary health care services ( low-cost and high efficiency), the MoH has been keen in all of its five-year plans to support and develop primary health care institutions, as the primary source to provide all aspects of health care for the population.

This includes the expansion of the deployment of health institutions that provide primary health care throughout the governorates of the Sultanate, support the development of those institutions and to provide primary and high quality health care. These efforts resulted in a remarkable development in the health status of the Omani society.

By the end of 2015, the total number of primary health care institutions run by the MoH was 235 health centres, polyclinics and local hospitals. The Sultanate has also undertaken a fight against dangerous childhood diseases through the application of an “Expanded Programme on Immunization,” which targeted the following dis-

eases: tuberculosis, polio, diphtheria, whooping cough, tetanus and measles. In addition, more vaccines have been added, as a result of high immunization rates reaching close to 100 per cent, and the Sultanate has remained free of polio for 16 consecutive years.

The private health sector is considered an additional provider of health services in the Sultanate and is growing steadily, with the number of private hospitals amounting to 15, in addition to general clinics, dental clinics, as well as 49 specialised clinics in Chinese and Indian medicine, 21 centres for medical laboratories, six MRI centres and 604 pharmacies in 2015. —Times News Service

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Mitsui of Japan also was awarded the contract to build the power plant in Ibri with a capacity of 3200 MGW; the biggest in the Sultanate, which will supply 30 per cent of the Sultanate’s needs of electricity. Itochu will also build the biggest water desalination plant in Barka which will produce about 280,000 tonnes of water per day.

Automated Meter Reading (AMR)

An ambitious initiative to introduce Automated Meter Reading (AMR) services for the Sultanate’s electricity sector is expected to get under way this year, also known as smart metering -- will primarily be targeted at large industrial and commercial customers whose electricity consumption exceeds a certain annual limit. As many as 12,000 high value accounts distributed among all five distribution utilities are expected to be brought under the purview of the smart metering project by 2017-end.

Solar Energy..making headway

continued from page 6 With a population that grew by 8 percent between the end of 2014 and September 2015, demand for financial services, tourism, hospitality, manufacturing, and healthcare is poised for rapid growth as Oman makes strides towards its Vision 2020 programme of economic diversification.

Duqm Special Economic Zone (SEZAD): commitmed to National Growth A major usufruct agreement to establish $10 billion Oman-China Industrial City was signed by the Sultanate and China. The agreement for the city to come up in Duqm Special Economic Zone (SEZAD), The total investment pumped for the construction of the industrial city until 2022 will be about $10 billion.

The industrial city, spread over an

area of 11.72 sq kms in Duqm will see the establishment of a vast city with diverse industrial activities such as light, medium and heavy industrial areas, light and mixed use land and hotels in the next six years. There will also be a world class hospital and school catering to the local populace. As many as 12,000 employees belonging to different companies will be working in the city and out of this more than 10 per cent will be local employees.

The agreement signed between SEZAD and Oman Wanfang states that the commitment of the company in this context is not limited to the development of the land, but extends to the construction of oil refinery subject to receipt of necessary permits and approvals by the competent authorities in the Sultanate.

Oman Wanfang shall also be responsible for reaching agreements with the Rural Areas Electricity Company, Marafiq Company, and Duqm Port Company on its needs of infrastructure facilities built away from the site and utility connections. These shall include, but not limited to electricity, cooling water, access to the utility corridors and port facilities in respect of the supply of gas, crude oil, refined products and the refinery.

The first area of about 870 hectares shall be indivisible and allocated to heavy industries and areas of medium, light, and mixed use.

The second category will be on an area of about indivisible 10 hectares allocated to the implementation of a tourism project.The third category will be on an area of 292 hectares allocated for the establishment of

an oil refinery and petrochemical industries complex. The production capacity of the refinery will be about 230,000 barrels per day.

The number of projects implemented in the industrial park will be around 35; 12 in the field of heavy industries including the production of commercial concrete, building materials and related industries, production of glazed glass, methanol and other chemicals. Add to this processing of steel smelting, aluminum production, production of vehicle tires, building materials for protection against water and corrosion, extracting magnesium from seawater, chemical-aromatic projects and others.

In the light industrial zone there will be 12 projects: production of 1 GW of solar power units, 1 GW of batteries, equipment of 10,000 private SUVs, production of oil and gas tools, pipelines, and drilling, production of half a million tonnes of colorful panels, assembling bicycles, garment production, production of games, as well as a variety of other projects.

Power and Water... buiding capacities for future

Oman may be a relatively small market regionally, with a population of just 4.5mn, but it has significant upside potential, Thermal power will continue to constitute the vast bulk of electricity generated in the country, fed by extensive oil and gas reserves. Additionally, some forays into renewables, which could prove a viable long-term growth opportunity.

Oman Power and Water Procurement Company (OPWP) is planning to enhance its services for water production capacity from 2022. Demand for potable water in Oman’s northern region, which include Muscat governorate, is projected to grow by six per cent per annum in the next four year horizon to 349 million cubic metres in 2020. A combination of population growth and industrial development, including tourism projects, is cited as a major reason for the growth in demand for potable water.

The OPWP, the sole procurer of new power generation and water desalination capacity, recently signed an OMR100 million agreement with a consortium to establish Myah Gulf Oman Desalination Company to build a water project in Sohar. The project is one of the biggest of its kind in the Al Batinah North Governorate and is expected to meet about 80 per cent of water demand in Al Batinah North, which is witnessed a tremendous growth in urbanisation, tourism and industrial activities.

Slated for commercial operation in 2018, the independent water project will produce 250,000 cubic metres of water per day, based on the reverse osmosis technology.

OPWP also plans to build one each major independent water project in Muscat and Northern Batinah regions. The capacity of each project will be higher than 250,000 cubic meters per day. Another independent water project (of roughly around 20,000 cubic liter per day capacity) is coming up in Khasab, which is part of a series of small and large water projected planned in different parts of the country. OPWP will be developing two other projects - Salalah and Sharqiya - and are expected to be operational in 2019.

Oman’s keenly awaited large-scale solar energy project is expected to go on execution, according to nation’s power sector regulatory authority Authority for Electricity Regulation Oman (AER), the proposed venture -- envisioning one or more solarbased electricity generation plants with an aggregate capacity of up to 200 MW -- will be procured as an Independent Power Project (IPP) similar to conventional gas-based power projects. Two locations in Dakhiliyah Governorate -- Adam and Manah -- have been identified as prospective sites for the establishment of a grid-connected largescale renewable energy scheme based on a combination of concentrated solar power and photovoltaic technologies.

Large-scale renewable energy development in the Sultanate is expected to make headway once the government rules on two key policy issues: One is the long-term National Energy Strategy 2040, which will allocate a certain quota for renewable energy in the wider energy mix; the other concerns the economic pricing of natural gas (the dominant source of fuel in conventional power plants), which is key to assessing the economic feasibility of large-scale renewable energy projects

March this year.

The Ministry of Transport and Communications have also been working on plans to have dedicated public transport buses. It may be noted that the Spanish consultancy firm Ineco has been working with Mwasalat to develop a Public Transport Master Plan (PTMP), which includes developing efficient bus networks and stations, inter-city bus services and public transport networks in Sohar and Salalah.

Mining ..new strategies adding value

The State General Reserve Fund (SGRF), the largest sovereign wealth fund of the Sultanate, announced the creation of ‘Mining Development Oman’ (MDO) in partnership with three other state entities. MDO, set up with a capital of RO 100 million, will invest in local mining projects in collaboration with local and international investors, as evidence of the Omani government’s commitment to the development of the Sultanate’s mining industry, As part of plans to further diversify its economy, Oman is fast developing new strategies that will add more value to the mining sector and the Sultanate’s substantial reserves of minerals. They include the development of a complete supply chain, or SOHAR Dry Bulk Logistics Corridor, that will immediately enable the export of minerals that are mined and processed in Oman to international markets at competitive prices. The signing of a Memorandum of Understanding (MoU) between Sohar Port and Freezone (SOHAR), Vale in Oman’s Distribution Centre and Oman National Investments Development Company SAOC (TANMIA), is the first step.

Oman is one of the most mineral rich countries in the MENA region and the strategy is to build on this to achieve competitiveness in the industrial minerals market and hence gain sustainable economic growth for the Sultanate.

As per Iran’s Minister of Industry, Mines and Trade, the value of bilateral trade with the Sultanate stood at $370 million in 2015. Its affirmed that the value of bilateral trade may hit $4 billion in the coming five years.

Iran- Oman Gas Line...

Sandan is the sultanate’s first integrated light industries park project and expected to create between 8,000 and 9,000 jobs and support the small and medium enterprises (SME) sector The project, being developed by Sandan Development, will be the biggest gathering of automobile showrooms, exhibitions and workshops in Oman making it the first destination for vehicle customers. The park project, which will be constructed over 250,000sq m area -- 5km away from Ma’abela exit at the Muscat expressway -- will also house building materials shops, workshops and residential units for workers

The latest developments in the study to launch the Iran-Oman gas pipeline which is being carried out by the NIGEC, National Iranian Gas Exports Company (NIGEC) are encouraging. Top on the agenda of the talks was ways of using Oman’s unused LNG facilities. The project includes laying the 400-kilometer land-sea pipeline from Iran to Oman. According to initial available data, the land part of the gas pipeline extends for 200 kilometers from Rudan to Mobarak Mount in southern Hormozgan Province. The seabed section between Iran and Sohar Port in Oman will stretch for another 200 kilometers. In 2013, Iran and Oman agreed to construct the pipeline which for 15 years will pump 28 million cubic meters of gas across Persian Gulf to the Omani port. It is expected that the gas line will be operational by end of 2017.

Omantel & Microsoft to enhance ICT services

Retail shopping ...online the new way

Sandan : 1st inetgrated light industries park

Omantel, the leading provider of integrated telecommunication services in the Sultanate, has signed a Memorandum of Understanding (MoU) with multi-national technology company Microsoft Corporation. Under the terms of the MoU the two companies will work to enhance ICT service capabilities in the areas of education, healthcare, digital smart home and business services, underscoring the seamless integration of smart technologies in everyday surroundings, which is known as the ‘Internet of Things’.

The agreement comes after a long history of collaboration between Omantel and Microsoft and aligns with the Company’s new 3.0 transformation strategy which maintains Omantel’s position as the digital partner of choice for the years ahead.

Mwasalat ..connecting people and places

Mwasalat has unveiled an expansion strategy as part of the government plans to improve the public transport system in the country.

While initial plans are Muscat-centric, the company seeks to gradually expand its route network as per the population density and requirements. The company has also launched a recruitment campaign for various posts. The company recently revealed that it has ferried over 1.1 million passengers since its rebranding in November 2015 till

Oman’s retail sector is eyeing sales on the Internet where every single item kept within the four huge walls of the departmental store or supermarket will be delivered at your doorstep.

While there have been e-business and online shopping concepts in the country, this is said to be the first time that the entire product range including fresh fruits and vegetables shelved in a hypermarket is replicated on virtual world offering the shoppers an option to pick products, compare with the prices of other retailers, drop them in the cart and click to ‘proceed with purchase’.

Touted as a major breakthrough in the retail culture of Oman, this new trend will be highly helpful for those who are not able to spare some time to run errands and those elders who find it difficult to search for parking and stroll through the crowd at times and wait in the long queue where no supermarkets has a queue dedicated for senior citizens.

Companies focusing on brick and mortar businesses have online presence and web portals like alatool and roumaan have been active online since years. But, one can be rest assured that heading the hypermarket after a long day would be a scene of the past, so goes the rushing out from the store with hugely stacked trolley.

Health Industry... great going

In 1970 the life expectancy of Omani Citizens was only 40.3 years, now

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less than 50 years this average life expectancy has risen to more than 76 years and the objective of free, universal primary care for everyone has been fully realized. Significantly as much as 95 % of the Omani population lies within five miles of a medical center.

Oman’s evolving demographic and epidemiological profile will act as key drivers of growth within the country’s pharmaceuticals and healthcare markets over the coming years. Oman has considerable growth potential, supported by an expanding private sector and the government’s ongoing commitment to advancing healthcare. The country’s weak domestic manufacturing capabilities will ensure Oman remains an import-driven market, particularly as the population favours those innovative medicines sourced from abroad. Over the long term, Oman’s population will benefit from more affordable healthcare services as price unification becomes more standardized across the Gulf States.

Oman’s health-care market is projected to be worth US$4.3bn by 2020, boosted by a five-year annual average growth rate of 12.9 per cent, Oman’s health-care market size was at US$2.3bn in 2015, forecasts the market to grow to US$2.6bn in 2016 - with an outpatient market size of US$1.6bn and an inpatient market size of US$1bn.

The outpatient and inpatient markets are expected to reach US$2.6bn and US$1.6bn, respectively, by 2020.

Oman’s hospital bed requirement is projected to grow at an annual average of 3.1 per cent in the next five years, suggesting a demand of more than 7,600 beds by 2020.

In order to ease the growing pressure on the health-care system, the Government is injecting huge funds as well as encouraging private sector participation to build hospitals and clinics, upgrade the existing infrastructure, and match the quality of services offered in developed countries. They are also investing heavily in technological advancements as well as rolling out mandatory health insurance schemes to further accelerate growth of the sector.

Insurance

Following a short-term contraction led largely by currency movements, expect to see solid growth in Oman’s

small life insurance sector, accompanied by slower growth in the considerably more developed non-life sector, over the remainder of the forecast period to 2019. Demand will be led primarily by Oman’s strong macroeconomic performance and the substantial expatriate community, which will account for the majority of life premiums written. The insurance market in Oman continues to present structural challenges, including a fragmented competitive landscape and low retention rates, as well as downwards pressure on pricing in major basic lines such as motor.

IT market

The country is currently undergoing a transition to a knowledgebased economy as outlined in its economic vision 2020. Information and communication technologies are at the core of this transformation, serving as the key enabler of economic diversification.

The Omani IT market has a mixed medium term outlook due to economic challenges associated with the decline in the oil price.

The government and wider economy are dependent on the hydrocarbons sector to a greater extent than elsewhere in the GCC, which will squeeze enterprise IT spending and the retail market through lower confidence levels, particularly in 2016 and 2017. The IT market is, however,expected to recover over the medium term, and register a CAGR of 5.1% for 2016-2019, with considerably stronger growth forecast for 2018 and 2019. Rapid population growthand modernisation by enterprises and public authorities are key to the growth outlook.

Oil & Gas

Oman’s oil industry still provides new and lucrative opportunities ranging from the approval of additional upstream projects to new discoveries, with a focus on offshore resource finds a unique new area of interest. However, due to the prevailing low price environment, smaller energy producers such as Oman will have more challenges attracting upstream investment.

Oman’s natural gas production and imports grew by 8.3 per cent to 10,206 million cubic meters

(MNCM) for the first quarter of 2016, compared to 9,426 MNCM for the same period of last year.

Of this, while non-associated gas showed a growth of 8.1 per cent at 8,459 MNCM, associated gas production surged ahead by 9 per cent to 1,748 MNCM, according to latest statistics released by the National Centre for Statistics and Information (NCSI).

A sizeable portion of the natural gas in Oman is used by various mega industrial projects, which stood at 6,160MNCM for the first three months of 2016, against 5,692MNCM for the same period last year. Natural gas is also used in oilfields either as fuel or for reinjection.

For instance, in the first quarter, as much as 2,279 MNCM of natural gas was used in oil fields, against 1,963 MNCM units consumed for the same period in 2015. Other major consumers of natural gas in the country include power producers, small-scale industries and liquefied natural gas plants. Natural gas used by power and desalination plants stood 0.8 per cent higher at 1,622 MNCM for the three-month period of this year.

The Oman Power and Water Procurement Company (OPWP) estimates gas consumption in the electricity and water desalination sector to rise in the next few years, mainly due to new power plants that need natural gas feedstocks. While the national demand for gas will rise sharply over the coming five years, the rate of increase is by no means evenly distributed, with requirements set to spike in some regions.

Oman produced 90.86 million barrels of crude oil and condensates in the first three months of 2016, which was 4.6 per cent higher than that of the same period last year, according to latest statistics released by the National Centre for Statistics and Information (NCSI).

The country’s average daily crude oil production stood higher at 998,500 barrels in the first quarter of 2016, against 965,100 barrels for the same period of 2015. Of the total production, the country exported 83.94 million barrels in the first quarter of 2016, against 78.39 million barrels for the same period of last year. — (Dr Anchan is Managing Director, World Wide Business House, an international business advisory firm).

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Discover Muttrah’s best kept secret Breathtaking journeys across diverse landscapes and discovering awe-inspiring views is an ever popular sport that many people travel long distances to enjoy. Many view trekking as an opportunity to leave the busy lifestyle and revel in the nature around them.

W

hen you think of Muttrah, the thought of the iconic Muttrah souq and the cultural museums comes to mind.

However, Muttrah also boasts one of the city’s best kept secrets; the Riyam-Muttrah trek.

The trek is unique for its proximity to the corniche, being a spot of hidden wilderness in the middle of an iconic and cultural district.

Once the main land route between the old town of Muttrah and the port, the trekking trail is believed to have been used by ancient miners from the Majan civilization 5,000 years ago.

The route starts at the Riyam Park where you can park your car and head up to the C38 trekking sign. The top of the ascent offers breathtaking views

of the corniche and the park from 150 meters above sea level.

After the initial ascent, the trail takes you through a large outcrop of rock formations called ophiolite that have been caused by solidified magma. This particular outcrop of ophiolite has travelled hundreds of kilometers beneath the oceans to reach the Arabian continent and is known as the best exposed sequence of this type of formations around the world.

The route ends taking you through a small Wadi, offering spectacular mountainous views and a chance for some opportune photos before you exit to enter Muttrah.

The trek should take 3 to 4 hours and being a non-circular route, you will exit through to Muttrah. Take the opportunity to visit the iconic museums like Bait Al Barandah

Quick facts n

Did you know that the ophiolite rock formations in Riyam are the best exposed sequence in the world?

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Did you know that the Muttrah Souq is called Souq Al Dhalam?

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Did you know that the Riyam trekking route was used by ancient miners 5,000 years ago?

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Did you know that the Souq operated by a barter system rather than a cash system?

and explore the interiors of the Muttrah Souq.

Itinerary 10:00 am – Visit Bait Al Zubair Museum 12:00 pm – Enjoy lunch by the iconic Muttrah Corniche 01:30 pm – Start the Riyam-Muttrah trek 05:00 pm – Enjoy some refreshments at Bait Al Barandah Museum before exploring the rich history 07:00 pm – Explore the Muttrah Souq How to get to….

Bait Al Zubair Museum: This historical treasure house is located close to Al Alam Palace. Driving from Muttrah Corniche, follow the road to Sidab, go straight across

under the Muscat Gate that is over the road. Keep on the right side of the road, the road then bends to the right and as it bends to the left, there is a parking area to the right that you can turn off the road to park.

Al Riyam Park: As you head from Bait Al Zubair back to the corniche, take the left of the Riyam roundabout and you will reach the Riyam Park. The entrance to the trekking route is market by a large brown sign.

Bait Al Baranda: Close to the old fish souq, Bait Al Baranda is located at the corner as you reach the Muttrah Corniche.

Muttrah Souq: Head straight as you reach the corniche with the sea to your left, the entrance to the souq will be at the traffic light. - Times News Service

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