Times of Oman - June 29, 2015

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RAMADAN PRAYER TIMINGS IFTAR 7.02PM FAJR 3.55AM

MONDAY, June 29, 2015 / 12 Ramadan 1436 AH

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Dhuhr Asr Maghrib Isha Fajr (Tomorrow)

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Personal debt warning as Oman spending soars The numbers Loans and advances by conventional banks (between January and March 2015)

Banks have already loaned out OMR17.41 billion to consumers,

OMR

sparking calls for caution in Ramadan

Average debt (OMR)

3,000 to

ELHAM POURMOHAMMADI

elham@timesofoman.com MUSCAT: Oman needs to put a brake on consumerism as debtors increase, say experts. Between January and March this year, Oman’s conventional banks have already issued loans and advances totalling OMR17.41 billion, and charities and legal firms have reported that the number of people turning to them for help after getting into debt trap is rising. The Holy Month of Ramadan is synonymous with self-control but temptations in the form of attractive discounts on everything from cars to furniture entice people to buy more than their means or spend more than they can afford. Real objective Some people forget the real objective of Ramadan and end up having a huge debt, especially after the Eid frenzy. This shows that

5,000

there is a need for change in the mindset of the society. Speaking to Times of Oman, legal and economy experts, bank officials, charity workers and ordinary people have all emphasised the need for greater awareness about the consequences of overspending, though they have appreciated the efforts towards easy access to financing. Khalifa Al Rahbi, legal advisor and the chief executive officer of Khalifa Al Rahbi Lawyers and Legal Consultancy, says they receive clients with a simple financial problem to those having debts of thousands of rials.

“Normally, we have two types of clients: Creditors and debtors. Creditors come to us to figure out the most appropriate way to recover their money while debtors seek ways to avoid legal penalties as a result of their failure to repay their debts,” he said. Consumerism Al Rahbi says that the growing number of these kinds of clients can be attributed to some factors, including increasing consumerism in the society and the people’s love to show off without thinking of living within their budgetary limits.

FIRE INCIDENTS

TOP THREE INSIDE STORIES

TRUCK IN FLAMES: Lorry catches fire near Falaj in Sohar.

OMAN

‘Macroeconomic scene favourable’

Firefighters douse Sohar factory fire REJIMON K

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Despite lower oil prices in the second half of 2014, the macroeconomic situation in Oman remained favourable. The major drivers of growth were higher sustained domestic demand, supported by large public expenditure and accommodative monetary policy pursued by the CBO. >A3

OMAN

Oman Air to recruit more Omani pilots

reji@timesoman.com MUSCAT: A fire which broke out in Owhi industrial area in Sohar on Sunday was doused by firefighters. Five fire engines were used to control the blaze. “The fire, which broke out in a warehouse, spread nearby, causing panic in the area. Workers were seen running out of the warehouses. It took more than two hours for the firefighters to contain the fire,” sources said. Motorists said thick clouds of smoke billowing out from the warehouses could be seen far from the area. “The roads to

that area were blocked by the police,” motorists said. According to sources, rubber products and adhesives were stored in the warehouses which caught fire. Lorry fire Earlier in the day, a lorry caught fire near Falaj in Sohar. “It started around 8am. There was bad odour in the entire area after the fire. Police had to cordon off the area,” witnesses said. In another incident, a truck which drove off the road, was lying overturned in Qantab area. Police vehicles and ambulances were seen at the accident site.

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Oman Air is looking for more candidates to fly its fleet. Following 10 Omani cadet pilots graduating in March, Oman Air is now recruiting more candidates from within the Sultanate. >A5

MARKET

Renaissance sure of long-term growth

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Renaissance Services is an Omani multinational firm listed on the MSM with a strong presence in oil servicing field. Strong cash flows will help the company to service all it’s obligations and also to invest in future growth. >B1

The new Audi A6

C7

There are cases of people with debts more than

OMR

30,000

17.4 billion

Expert view:

Loans are good if they are used in a proper way, for example for purchasing the necessary things or starting up a business.

According to him, Omani Lawyers Association and Khalifa Al Rahbi Lawyers and Legal Consultancy have organised a campaign during the holy month to collect donations from the members of the community for insolvent prisoners with debts of not more than OMR5,000. This is the third version of the campaign, Al Rahbi said, adding that 304 prisoners were released thanks to this campaign last year. The legal advisor advised people not to take loans unless it becomes essential such as for buying a house or land plot as unjustified spending leads to debt.

Dar Al Atta’a charity organisation has also witnessed an increase in the number of people seeking financial assistance to write off their debts. Maryam Al Zadjali, chairperson of Dar Al Atta’a, says that increase in consumption of goods is one of the factors to blame. According to her, between OMR3,000 and 5,000 is the average debt of people seeking help. “Sometimes, we receive people with debts, of over OMR30,000,” she said, adding that the highest amount of debt she has heard of is OMR120,000. Al Zadjali said that Dar Al Atta’a does its best to help debtors after they submit a request supported by documents proving their claim. Ahmed Al Hooti, a member of the Oman Chamber of Commerce and Industry (OCCI), said that some people misuse their loans and then find themselves in trouble when the time comes to repay the debt. The organisations concerned and the media should join hands to raise awareness and promote the culture of saving, he said. However, Al Hooti believes that some Omani private sector employees with a salary of OMR300 to OMR400 are not provided with the financing facilities which are given to the government employees. The OCCI has been asking the authorities to provide better facilities to the private sector employees, he added. >A3

12.15pm 3.33pm 7.02pm 8.25pm 3.55am

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M AY- E N D D ATA

Sultanate’s population reaches 4.2m MUSCAT: Oman’s population reached 4.18 million by May end, growing at 0.2 per cent, latest data from National Centre for Statistics and Information (NCSI) shows. “While the number of Omani citizens is 2,338,769, the number of registered expatriates is 1,847,145. The statistics also indicate that there are 135,513 expatriates whose place of residence is not recorded, a one per cent decrease compared to the figures recorded last April,” the data reveals. The data also show that the majority of population resides in Muscat Governorate, where the number of residents rose by 0.4 per cent compared to the figures recorded last April, reaching 1,288,330. >A6

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