Times of Oman - September 29, 2016

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THURSDAY

September 29, 2016 27 Dhul Hijja 1437 AH

FROM THE WORDS OF HIS MAJESTY THE SULTAN

On the occasion of the 4th National Day, 1974

‘His Majesty’s Wisdom’ Our people have achieved successful results in all fields of life, under hard and abnormal circumstances. It was by the help of Almighty God and His belief in the People that such achievements were possible.

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Founded 1975 . Volume 41 No. 181 | 36 Pages . Baisas 200 . Subscription OMR63 | ISO 9001:2008 Certified Company | Chairman/Editor-in-Chief: Mohamed Issa Al Zadjali | Printed & Published by Muscat Media Group

RISE IN SHORT-TERM CONTRACTS IN OMAN

RECHARGE PROBLEMS

Expats stop receiving dish TV services RAHUL DAS

rahuldas@timesofoman.com MUSCAT: Many expat residents have been left with blank television screens after a satellite TV service stopped taking payments. Many people in Oman have not been able to recharge their Indiabased Direct-to-Home (DTH) services, such as Dish TV, since the first week of September. DTH services, such as Dish TV and Tata Sky, do not have the requisite licence to operate in the Middle East, authorised dealers for television viewing services in Oman claimed. Of these Dish TV, which offers television packages starting from as low as OMR3, is said to be the most popular among Asian expatriates. >A4 TOP THREE INSIDE STORIES

OMAN

‘Romeo and Juliette’ opera stars love Oman

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Opera stars Jean-Francois Barros and Nino Machaidze, who are in Oman to perform at the debut of Charles Gounod’s ‘Romeo and Juliette’ opera at the Royal Opera House Muscat. >A6

WORLD

Missile brought down Malaysia Airlines flight REJIMON K GAUTAM VISWANATHAN

As the economic crisis bites with shrinking revenues, companies across Oman are going in for short-term contracts creating greater job insecurity in the market

MUSCAT: More and more skilled workers in Oman are being told to sign short-term contracts as austerity bites in Oman. Current economic conditions are forcing employers and employees to agree to six-month job contracts, say trade unionists and employers. The economic downturn has left many companies across the Sultanate staring at blank order books and one recruitment firm reported it now deals only in Omani staff placements as expat job openings have shrunk so much. “We have come across cases

Six-month contracts have not only affected expatriates but even Omanis with the fixed term job agreement are at their receiving end

of employees complaining about being forced to sign short-term job contracts, most often a six month one. This is happening in all sectors in Oman,” Mohammed Al Farji, a trade union leader in Oman, said.

Hi-tech convention centre ready to host events

A4 DIPPING REVENUES

Oman’s budget deficit tops OMR4b on lower oil exports A. E. JAMES

businesseditor@timesofoman.com MUSCAT: Oman’s budget deficit for the first seven months of 2016 rose by 68.3 per cent to OMR4,023.3 million, as plunging crude oil export revenues started affecting fiscal balance. The revelation came in the wake of data released by the National Centre for Statistics and Information (NCSI), which reflected a jump from a deficit of OMR2,391.1 million in the same period last year and against a projected deficit of OMR3.3 billion for the entire year, as estimated

by the government. “At the moment, the government has been borrowing from both domestic and international markets (to cover the deficit). This year, a sizable chunk of the borrowing was from the overseas market as the government does not want to disturb the local liquidity,” said a leading market analyst, on the condition of anonymity. The country’s net oil revenue for the seven month period ending July 2016 plunged by 46.1 per cent to OMR1,794.1 million from OMR3,326.2 million from a year ago. This was mainly on account

of a 37.4 per cent dip in the average price of Oman Crude to $37.6 per barrel for the first eight months, against $60.2 per barrel for the same period last year. Revenue from natural gas also slipped marginally by 3.5 per cent to OMR778.9 million for the eight month period. “The average price of Oman Crude at $37.6 per barrel was 16 per cent lower than the budget estimate at $45 per barrel,” added the market analyst. The government is likely to look at more austerity measures and will cut subsidies wherever possible, the analyst noted. >A7

“Such short-term contracts give the employees an insecure feeling. It is affecting the productivity of the employee. This is not good. An employee with insecure feelings will not be able to work effectively and plan for future,” the trade union leader added. A senior level official from a construction company in Oman said that their company is also adopting the short contracts, leaving workers worried about their futures, with loans to repay. “Renewal of job contracts is only for short-term. Workers are worried,” the senior official, in charge of hundreds of construction company workers, said, on condition of anonymity.

A legal advisor in Oman said that the Omani Labour Law does not specify contract length. “However, the job contract is between an employee and employer. Whatever conditions they have signed are valid. If an employee has agreed to a six-month job contract, then he doesn’t have a legal right to question it,” Deepa Sudhir, the legal advisor, added. According to Omani Labour Law Article 36, if the contract is for a limited period and the parties continue to execute it after the expiry of its period, the contract will be deemed to have been renewed with the same terms and conditions for an unlimited period.>A5

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Malaysia Airlines flight MH17 was shot down by a missile fired from a launcher brought into Ukraine from Russia and located in a village held by proRussian rebels. >A12

MARKET

Sebacic project to go on stream in 2017

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A major joint venture project to produce 30,000 tonnes of Sebacic acid per annum in Duqm free zone will be commissioned by the end of 2017. >B1


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