Times of Oman - May 12, 2016

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THURSDAY May 12, 2016 5 Sha’aban 1437 AH

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FROM THE WORDS OF HIS MAJESTY THE SULTAN MORNING MINUTE

To the People, 1975

‘His Majesty’s Wisdom’ Oman is rich in resources and its resources belong to its people. Though oil is our main source of income at present, we know that we have abundant other resources which we need to exploit in order to promote the rapid progress and development we wish for this country.

Founded 1975 . Volume 41 No. 69

| 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

G D P P E R C E N TA G E

M I N I S T RY O F H E R I TA G E

Remittance from Sultanate among highest in world

Portion of Khaboura Fort’s wall collapses

REMITTANCE AND GDP

Times News Service MUSCAT: A portion of the wall at the Khaboura Fort collapsed on Monday, the Ministry of Heritage said in a statement on Wednesday. Suleiman bin Hamad Al Subhi, director of the Restoration and Maintenance Department at the Ministry of Heritage and Culture (MHC), said the collapsed portion of the wall was a part of the old exterior fence of the fort. He also explained that the two centuries-old-fence was built of stones and mud. “The wall collapsed due to weather factors and construction work was also going around in the area,” he stated. Al Subhi added that 70 per cent of the work had been completed at the fort, which is currently under restoration. The ministry has started maintenance work for the safety of the residents of the area. It will carry out the full maintenance work of the fort using the same old traditional materials to strengthen the building. Earlier this week, MHC announced that it had completed the maintenance work of the boundary wall of the Al Mughabash Castle in Suwaiq in the North Batinah Governorate. The castle is located on the main road leading to Sohar. Electricity has been restored to the castle and the building will be fully restored soon, according to an official. TOP THREE INSIDE STORIES

OMAN

Flights diverted to Al Ain return

1

Two Oman Air flights, which were supposed to land at the Muscat International Airport and were diverted to the Al Ain International Airport due to an emergency landing of another flight in Muscat, later returned and landed at the Muscat Airport. >A3

REGION

80 dead in three Baghdad blasts

2

Three suicide bombings claimed by IS across Baghdad killed at least 80 people on Wednesday, Iraqi police and hospital sources said, in the deadliest attacks in the Iraqi capital this year. Security has gradually improved in Baghdad, which was the target of daily bombings a decade ago. >A8

Top remittance-sending countries as percentage of GDP in 2014 Rank Country

Remittances vs GDP In million dollars

2010

Percentage of GDP

Remittances GDP 2012

2014

10,642 52,352

12,700 64,874

1 1,293

366 2,013

1

Luxembourg

2

Liberia

3

Marshall Islands

12.8% 8

8 164

4

OMAN

6 12.6%

5,704 58,641

10,301 81,797

5

Lebanon

12.3% 3

4,390 38,010

5,604 45,731

6 .. .

Kuwait

11,864 115,419

18,129 163,612

9

Bahrain

10

Kyrgyzstan

11

Qatar

19.6%

118.2%

11.1% %

24 187

12 Saudi Arabia 13

COULD FAMILY VISA RULES BE RELAXED? Majlis Al Shura has asked questions about the OMR600 per month rule for expats, with one member saying it should be lowered

FAHAD AL GADHANI REJIMON K fahadnews@timesofoman.com reji@timesofoman.com

MUSCAT: A ban on expatriate employees earning less than OMR600 per month on bringing their families to Oman has been questioned by the Majlis Al Shura, as some members say lowering the minimum wage required may help the

Sultanate’s economy. In September 2013, Royal Oman Police (ROP) made it mandatory that an expatriate wishing to bring in his family to the Sultanate should be drawing a salary of OMR600 per month. Now, the Majlis Al Shura has sent questions to ROP regarding that limit, with one member told Times of Oman that if the amount is brought

down, then many would be able to bring in their families which in turn would lead to increased spending inside Oman. “The parliament has forwarded some questions to the ROP on why a salary limit has been set. The ROP might have considered different aspects while deciding on the limit. “However, lowering down the salary limit for family status will help expats in Oman to bring in their families, which will boost spending and help the economy,” Rashid Al Shamsi, the Majlis Al Shura member, said. “Expats with families in Oman will spend more here rather than remitting it to their home country,” the Shura member said..>A6

UAE

4.8% 8

Source: Migration and Remittances Factbook 2016, World Bank

RAHUL DAS

rahuldas@timesofoman.com MUSCAT: Remittance by expats from Oman has been one of the highest in the world, based on the Gross Domestic Product (GDP) percentage, according to the 2016 World Bank Migration and Remittances fact book. The aggregate outflows represent 12.6 per cent of the Oman’s GDP. Oman’s GDP, which is measured by the monetary value of all the finished goods and services, stood at OMR27 billion in 2015, according to data released by the National Centre for Statistics and Information (NCSI). The top remittance sending countries in the world are Luxembourg, where aggregate outflows represent 19.6 per cent of the country’s GDP, followed by Liberia (18.2 per cent), Marshall Islands (12.8 per cent) and Oman (12.6 per cent). Oman is followed by Lebanon (12.3 per cent) and Kuwait (11 per cent). All the other Gulf countries

Graphics

fare below 10 per cent. Commenting on the report, N Gurumurthy, a financial expert based in Oman, said the remittance outflow has always been high in the Gulf Cooperation Council (GCC) region due to the higher percentage of expat labour in this region. “Around 40 per cent to 50 per cent (in UAE it is even higher) of the total population in the region are expats, predominantly from India, Pakistan and Bangladesh,” he said. He added: “Remittance outflow is good for the country as it helps in reducing local inflation. If there are more investment opportunities, relaxation in the purchase of real estate, increased retirement benefits, relaxed norms for residential status, liberal family visa rules may help reduce the outflow.” Tonny George Alexander, director of the Oman UAE Exchange, said that this clearly shows that the economy is robust and that the projects are on track as government declared.>A6

100,000 meals to be distributed among poor families in Oman

A6

O B S TA C L E S

Free trade pact with US hit Omani exports: OCCI official Staff Reporter

MARKET

Oman to sign deal for two power projects

3

Agreements to build Ibri and Sohar -3 independent power projects will be signed by Oman Power and Water Procurement Company with a consortium of Japan’s Mitsui & Co., ACWA Power, and Dhofar International Development and Investment Holding Co. >B1

MUSCAT: A free trade agreement between Oman and the United States, which was signed a decade ago, has not benefited Omani traders. The agreement is still facing many challenges in terms of implementation, an official at the Oman Chamber of Commerce and Industry (OCCI) told Al Shabiba, the sister publication of Times of Oman. The official blamed the standard specifications set by the US government for Omani products for this decrease. While reiterating his trust in the quality of Omani products, he

The quota system adopted by the US government and implemented for Omani exports does not follow the principles of free trade, says the OCCI official

stressed that research should be conducted to meet common criteria and international standards. Sulaiman bin Sultan Al Mughairy, assistant general manager at the OCCI, said that current figures do not reflect the expecta-

tions of the trade agreement between the two countries and their historic relationship, especially in the area of free trade, as Omani exports to the American market have witnessed a remarkable decrease.

It shows that there are obstacles that prevent Omani products from entering the United States market, or there may be lack of knowledge among the Omani traders of the advantages and facilities of the US market, he added. Readymade clothes Al Mughairy also criticised the quota system, which has been adopted by the US government and implemented for Omani exports, such as readymade clothes, saying it does not follow the principles of free trade, which had negatively affected local factories last year. Moreover, he said many states

in the United States do not follow/apply the federal system. The different set of rules in US states make it difficult for the Omani traders to adjust to the system while Oman has only set of rules. Marc J. Sievers, the US ambassador to the Sultanate, said Omani companies are good partners when it comes to doing business with the United States. He called upon businessmen in the two countries to benefit from the agreement and to invest more, while pointing out that the free trade agreement had resulted in trade exchange and services between the two countries have increasing by 50 per cent.


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