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MONDAY, August 24, 2015 / 9 Dhul Qa’ada 1436 AH
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OMAN
IT’S BACK TO SCHOOLS IN SULTANATE
PIA offers incentives to attract travellers
1
Passengers flying to Europe, America and Asia from Oman now have an added incentive to visit Pakistan free of cost, as PIA launches a new era of restructured fares and other benefits to attract more customers in Oman. The airline has jumped into the fray with an aggressive strategy to broaden its business. >A2
There was a huge rush of students in all the schools of the Sultanate as the new academic session (2015/2016) began yesterday. About 551,867 students are enrolled in 1,077 public schools in different wilayats of the Sultanate, with an increase of 28,345 students compared to last year. Photos by O K Mohammed Ali
REGION
See also >A4
Britain, Iran reopen their embassies
Plans to swap company grades on the radar Local businessmen say that before shifting to international grading system, companies in Oman must raise their standards to remain competitive in global markets
ELHAM POURMOHAMMADI/ TARIQ AL HAREMI
MUSCAT: A proposal to replace the national corporate grading system with the international one has its own pros and cons
and should be studied properly to make sure it benefits the companies in Oman, say businessmen. The Ministry of Commerce and Industry has proposed a plan to the Oman Chamber of Commerce and Industry (OCCI) to scrap the
current system of classification of the companies and instead apply the ISO (International Organisation for Standardisation) grading system. The initiative is aimed at helping registered companies in Oman, including small and medium enterprises (SMEs), get better opportunities and expand their activities. The current system classifies the companies into seven categories, namely consultancy, international, excellent, grade 1, grade 2, grade 3 and grade 4, based on the nature of the company or the size of its capital. “We are no longer going to continue grading the companies
RISE IN BUSINESS
Boom in remittance business as rupee’s free-fall continues REJIMON K
reji@timesofoman.com MUSCAT: Riding on global currency volatility wave, as the Indian currency plummeted sharply by 29 paise to close at INR65.83 against the US dollar on Friday, money exchange house officials in Oman say Indian rupee may slide even further. “It is anticipated that the rupee may fall further due to various reasons. If the rupee continues to fall, overseas investors may pull out their investments from India, which will again worsen the situation. However, the business volume for us is going up. People are remitting money to make use of the good exchange rates. Especially, high volume remittance is happening from investors,” said Philip Koshy, general manager of Modern Exchange.
RUPEES PER DOLLAR 2010-2015 28/08/2013
68.36
70 60
21/08/2015
50
65.83
40 30 20
23/08/2010
46.61
10 0 Source: Reserve Bank of India
Graphics
On Friday evening, when the India markets closed, the exchange rate for OMR1 was INR170.05. Last time the Indian currency fell to these levels was on September 6, 2013. “If the current bout of nervous-
ness across global markets continues, a fall back to those Rs 66 per dollar level is quite possible,” Tonny George Alexander, chief executive officer of Oman UAE Exchange, said, confirming that they are also witnessing an increase in business. However, Tonny added that for an ordinary remitter, sending money when rupee falls is just a psychological satisfaction. “End of the day, the gains he makes due to the rupee fall are not going to benefit the recipient as the inflation, too, will surely go up,” Tonny added. Overseas investors have pulled out nearly Rs2,000 crore (OMR116 million) from the Indian stock markets since the beginning of the month amid concerns over Chinese economy, coupled with sharp erosion in the value of rupee. >A6 PA C P A P P R O VA L
200 baizas hike in salon shaving rate REJIMON K
reji@timesofoman.com
Shifting gears
C7
MUSCAT: Following insistence of authorities that men’s hair salons must offer singleuse shaving kits, and the consequent row over who should bear the increased cost, the Public Authority for Consumer Protection (PACP) has finally directed a hike of 200 baizas over and above the rates for shaving service. “It’s a relief that PACP has issued a notice clearing the air. When the municipality urged us to introduce single-use shaving kit, which includes a plastic apron, razor and comb, it was not clear who would bear the extra expenses,” a hair stylist in Darsait said. >A6
according to our standards. We are going back to the international standard grading system,” said Ahmad Al Hooti, a member of the OCCI. SME grading According to the proposal, a grading system will also be introduced for the SMEs based on international standards. Speaking to the Times of Oman, Sultan Ali Al Busaidi, managing director of the United National Oilfield Services (UNOS), a new generation start-up company, said the proposal has some positive and negative aspects and should be studied thoroughly. He called the move to adopt in-
ternational standards a ‘leap’ forward but noted that it should not put SMEs to disadvantage. It may be good for larger companies but the issue is about how SMEs will fit into international grades and what the parameters are, said Al Busaidi. Competitiveness According to him, SMEs in Oman still need time to develop their skills and raise their standards to become competitive and cope with international norms. However, he said it may help foster greater competition among SMEs locally as the grade assigned to them may better represent their capabilities. >A6
2
In a reciprocal move, Britain and Iran reopened their respective embassies in each others’ capitals on Sunday, a striking signal of how Western ties with Iran have thawed. Foreign Secretary Philip Hammond watched the British flag being raised in the garden of the opulent 19th century building while the national anthem played. >A7
MARKET
Oman, Gulf stocks continue to slide
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Oman shares continued its slump, along with other Gulf bourses, when the market opened on Sunday amid crude oil prices touching a six-year low. Almost all blue chip stocks declined to touch recent lows, with select shares touching even limit down amid weak sentiment due to serious concern on oil price. >B1