MONDAY
February 8, 2016 29 Rabi Al Thani 1437 AH
FROM THE WORDS OF HIS MAJESTY THE SULTAN
To the students of Sultan Qaboos University, 2000
‘His Majesty’s Wisdom’ We acquire our knowledge from those who have gone before us, whose endeavours, thoughts, deductions and concepts led them to gain knowledge about the world around them.
Founded 1975 . Volume 40 No. 297 | 40 Pages . Baisas 200 . Subscription OMR63 | ISO 9001:2008 Certified Company | Chairman/Editor-in-Chief: Mohamed Issa Al Zadjali | Printed & Published by Muscat Media Group
Muttrah Souq traders at risk of losing everything Many traders have no insurance to cover them against flood or fire and brokers admit they are reluctant to cover Souq businesses
OMR200,000 inside it. He said his firm was denied insurance and that many others like him are totally unprotected.
REJIMON K
reji@timesofoman.com MUSCAT: It is renowned as one of the oldest marketplaces in the Arab world, but shopkeepers at Muttrah Souq face a very modern problem - they cannot get insurance for their businesses, leaving them at risk of losing everything. Counting the cost is Mazrook Keethadath, the shop manager of the Muttrah warehouse that was gutted last week with goods worth
Traditional marketplace Some 1,000 shopkeepers make their trade inside the traditional marketplace which is more than 200-year-old and attracts thousands of tourists every year. “Citing risks, they denied insurance coverage. Now, in the accident, I have lost goods worth
NO INSURANCE COVER: Companies are reluctant to provide insur-
ance cover to shops in Muttrah Souq. -Supplied photo
OMR200,000,” Mazrook, who has been resident in Oman for the last 25 years, said. “Majority of the shops in this Souq are not insured. Companies are reluctant to provide coverage,” Mazrook added. Brokers in Oman confirmed to Times of Oman that the Souq is a
major headache and that insurance companies are reluctant to provide cover. “Both fire and flood risk are too high in that area. Providing an insurance coverage to the shops in Muttrah Souq is not at all practical. Long back, a study conducted
R O YA L O M A N P O L I C E WA R N I N G
48-hour detention for driving on shoulders FAHAD AL GHADANI
fahadnews@timesofoman.com
MORNING MINUTE
MUSCAT: Drivers found using road shoulders will be detained for 48 hours and then referred to the Public Prosecution for further legal action, the Royal Oman Police (ROP) has warned motorists in a tweet. A shoulder often serves as an emergency stopping lane, and is a
reserved lane for emergency services like ambulances etc. “It has been noticed that some motorists drive on the road shoulders trying to escape from traffic congestion, which is considered a traffic violation,” said the ROP in its tweet. The tweet was welcomed in the social media by many individuals believing that such behaviour leads to more traffic congestion.
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O F F I C I A L D ATA
Oman lost $14b in revenue due to low oil prices in 2015 SALEH AL SHAIBANY
saleh@timesofoman.com MUSCAT: Oman lost $14 billion worth of revenues in 2015 compared to a year earlier due to low oil prices, official statistics show. The government produced around 981,000 barrels of crude oil per day last year compared to 943,500 barrels per day in 2014. Oman sold its oil at an average price of $56.5 per barrel in 2015, which was 45 per cent less than the previous year, according to the National Centre of Statistics and Information (NCSI). In 2015, Oman based its budget at the oil price of $85 per barrel with a deficit of OMR2.5 billion. The government has not finalised the actual deficit in 2015 but it is expected to be considerable more than the planned one. The International Monetary Fund (IMF) has already cautioned Oman to make urgent steps to secure the future of its fiscal budget. It had urged the government to embark on the long-term eco-
CBO Executive President Hamood Sangour Al Zadjali.
nomical sustainability plans. The IMF also urged Oman to cut its wages bills on the public sector. In the Arab Spring of 2011, it encouraged the government to create more economic security for Omanis. This year, Oman has already shown its commitments by reforming the subsidies with hikes in taxation and fuel prices. Oman had a fiscal deficit of 15 per cent last year and in 2016 the deficit is expected to be 17 per
cent as the low oil price eats into export earnings and blows a hole in the country’s budget. Central Bank of Oman’s Executive President Hamood Sangour Al Zadjali said earlier that the government is able to absorb the losses from the foreign exchange reserves. He also dismissed speculations that Oman will ditch the dollar peg. With breaking-even crude oil prices of $75 per barrel for the 2016 budget, Oman will need to dig deep into the reserves to come up with financial discrepancy to wipe out the OMR 3.5b deficit.
“If everybody is patient and stick to their lane, then traffic congestions will be less and the time drivers have to spend in jams will be also less,” said Sanad Al Rahbi, a motorist based in Muscat. He added that everybody feels that he is busy and only his time is precious neglecting others. “Such motorists should take the issue a bit serious and start respecting the road ethics and adhere to the
traffic rules,” said Sanad. Like Sanad, Salim Al Shukaili, a motorist based in Nizwa also asked ROP to deal more sternly with such violators. “It’s not only those driving on the road shoulders but others who keep changing lanes while getting stuck in traffic. This is really bad and leads to more delays for other motorists as they get stuck on the road,” said Al Shukaili. >A6
by a Norwegian firm had stated that Muttrah Souq is in Orange Zone, the worst one, for flood risks. Same is the case of fire risk too,” a senior official from an insurance firm, said. “There is no separation between shops in the Souq. Entry for fire engines into the area is not easy. If we categorise the safety levels for the shops in Souq, then they will be falling in category 3, the worst one,” the insurance firm official said. Meanwhile, another insurance company official said the identification of property ownership is quite difficult in Muttrah Souq. “Those who approach us fail to provide the actual identity of the property owner. That makes it very difficult for us to insure and fulfil claim when something happens,” the insurance company official added.>A6