Times of Oman - October 9, 2016

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SUNDAY

October 9, 2016 7 Muharram 1438 AH

FROM THE WORDS OF HIS MAJESTY SULTAN THE SULT LTAN

On the occasion of the 5th National Day, 1975

‘His Majesty’s Wisdom’ We declare to the whole world that we shall never desist from defending the security of this dear country against any aggression with all possible means. We put before the whole world a truth which accepts no argument.

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Founded 1975 . Volume 41 No. 189 | 36 Pages . Baisas 200 . Subscription OMR63 | IISO SO S O 9001:2008 90 00 01: 1:20 2008 08 Certified 08 Cer e ti tifieed Company Coom C mp pan a y | C Ch Chairman/Editor-in-Chief: hai airm rm man n /E / di dito itoorr--in-C in n-C -Ch hiief ef: Mohamed Moohamed Issa Al Zadjali | Printed & Published by Muscat Media Group M

UGANDA

HM sends greetings MUSCAT: His Majesty Sultan Qaboos bin Said has sent a cable of greetings to President Yoweri Museveni of the Republic of Uganda on his country’s Independence Day anniversary. In his cable, His Majesty the Sultan has expressed his sincere greetings and wishes to the president and his country’s people. —ONA TOP THREE INSIDE STORIES

OMAN

Study highlights need to keep beaches clean

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Beaches in Oman need to be cleaned regularly and dog owners need to pack their poo, according to a survey by the Sultan Qaboos University. >A3

WORLD

Saudi-led air strike kills 82 in Yemen

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OVER A BARREL: $73 IS BREAK-EVEN TARGET REJIMON K

An air strike by the Saudi-led coalition on mourners in Sanaa on Saturday killed at least 82 people. >A12

Oman should attract

MARKET

cut subsidies and raise

Study on aluminium container project

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A study to set up a project to manufacture aluminium containers used for packing food was conducted. >B1

reji@timesofoman.com

foreign investment,

taxes to give economy the vital lifeline, say financial experts

Adding an Omani twist to a Japanese art form

MUSCAT: Oman needs more cost-cutting, taxes and foreign direct investment if it is to pull through the oil slump, experts say. The International Monetary Fund (IMF) has reported that the country’s “breakeven” price for a barrel of oil this year is $73. Despite the price of a barrel of crude rising to over $50 for the first time since August, the

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S AV I N G M O N E Y

As economic hardship bites, firms deduct staff allowances REJIMON K KHADIJA AL ZADJALI

reji@timesofoman.com khadija@timesofoman.com MUSCAT: In addition to shortterm contracts, salary cuts, freeze on increments, companies are also forcing their employees to move to cheaper rent apartments as part of the ongoing cost-cutting measures resulting from poor economic conditions. A senior official from an automobile company in Muscat, which employs hundreds of engineers and salesmen, said many mid-level employees are in a fix for the last few months after the management slashed their house rent allowance. “Many engineers were getting House Rent Allowance (HRA) of around OMR250 for a single bed room flat. The company has cut it down to OMR200 for some and for others less than that. Where can we get a single-bedroom flat for OMR200 and below?”

the official asked. According to the official, in addition to HRA, his company has also halved the allowance for telephone bills. “The majority (of such employees) are in sales. But the company has not considered it. They have cut their telephone bills. How can a sales person work with calling restraints?” the official added. An engineer in Muscat, who was getting OMR250 as HRA, is struggling to find a new home as his company has cut his HRA

to OMR200. “It is quite difficult to find a decent accommodation for OMR200. We are struggling a lot. I don’t think I can find one. I am planning to quit the job and look for one in other GCC (Gulf Cooperation Council) countries or return to India,” he said. Meanwhile, a senior official at a construction company said his colleagues, who are staying in flats with a rent of OMR350 have moved to OMR250 rental flats. >A6

IMF experts reckon another $23 per barrel is required just to balance the country’s books. One of the region’s most respected analysts has said that an “open skies” policy on 100 per cent foreign direct investment - especially in tourism coupled with new tax regimes are just two of the measures required to pull Oman out of a downward economic spiral caused by the turbulence in the oil price. In terms of FDI, the govern-

ment is already making moves. James Wilson, CEO of Omran, the umbrella government appointed body overseeing tourism investment in Oman, confirmed that attracting foreign money is high on their list. “Omran is currently in discussions with foreign and local investors for joint ventures on its projects,” he said. More taxes and subsidy cuts would also throw Oman a lifeline in the current climate, according to Dr Nasser Saidi, a

member of the IMF’s Regional Advisory Group for MENA and Co-Chair of the Organisation of Economic Cooperation and Development’s (OECD) MENA Corporate Governance Working Group. Dr Saidi believes Oman is on the right track but more needs to be done. He said: “Oman’s government needs to be commended for rapidly taking action following the dip in oil prices.” >A6


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