OER - (oeronline) January 2011

JANUARY 2011

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FACE2FACE

TOURISM

Dr Montek Singh Ahluwalia, Deputy Chairman of Planning Commission, Government of India

Ensuring fair returns Wael Al Lawati, CEO, Omran

No 126

January 2011

EDITORIAL Editor-in-Chief HH Sayyid Tarik Bin Shabib Group Editor Mayank Singh Assistant Editor Visvas Paul D Karra Sub Editor Muhammed Nafie DESIGN Senior Art Director Sandesh S. Rangnekar Art Director Minaal G. Pednekar Senior Designer M. Balagopalan Senior Photographer Rajesh Burman Photographers Sathyadas C. Narayanan Motasim Abdulla Al Balushi Cover concept Sandesh S. Rangnekar Production Manager Govindaraj Ramesh MARKETING Business Head Jacob George Senior Advertising Manager Avi Titus Advertising Manager Arif Abdul Assistant Advertising Manager Jinu Mathew Varghese CORPORATE Chief Executive Sandeep Sehgal Executive Vice President Alpana Roy Vice President Ravi Raman Senior Business Support Executive Radha Kumar Business Support Executive Zuwaina Said Al-Rashdi

ENGINES OF GROWTH

T

he government is working assiduously on diversifying the Sultanate’s economic base as part of the Vision 2020. Free zones are expected to be major contributors to this exalted goal. The first phase development of Freezone Sohar has the potential to transform Al Batinah region into Oman’s industrial and economic powerhouse. The project is being developed by Sohar Freezone LLC, a newly established joint venture of Sohar Industrial Port Company (SIPC) and SKIL Infrastructure Limited of India.

Sohar Freezone has been awarded a concession by the government to develop, operate and manage the 4,500-hectare free zone adjacent to the industrial port. Freezone Sohar is proposed to be executed in five phases. Envisaged in the first phase, covering an area of 500 hectares, are a number of downstream industrial and petrochemical ventures, warehousing and logistics services, and so-called ‘soft’ investments, such as educational, medical and other service-related amenities. Investors are expected to enjoy a host of competitive advantages by virtue of the free zone’s strategic geographic location outside the Strait of Hormuz, and its access to world-class logistics. Equally advantageous is the Zone’s proximity to the major markets of the Gulf, Middle East and the Indian sub-continent.

Similarly the Salalah Freezone offers a mix of industrial, manufacturing, warehousing, logistics, distribution, R&D and office facilities, retail outlets, resort, and residential space. Focused on creating vibrant communities, it is being developed in multiple phases over an area of 2000 hectares. Its phase one provides 200 hectares of distribution, logistics, freight forwarding and manufacturing facilities. This includes state-of-the- art infrastructure like road, power, water, sanitation and telecom networks in addition to other various services.

This issue’s cover story takes an in-depth look at free zones in Oman and their potential contribution to the Sultanate’s economy.

We take this opportunity to wish all our readers a very happy and prosperous 2011.

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Mayank Singh

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January 2011

OER -magazine

To read, click on link at: www.oeronline.com

A LESSON FOR AUTOMAKERS

R

help them in their recovery path.

One thing that has to be pointed out is that in future the automotive industry has to be more careful in quality checks and not take things for granted because obviously the mechanical faults observed in most vehicle recalls has been because the jobs have been outsourced to third party manufacturers.

ef your cover story article ‘Outstanding automobiles’, it is noteworthy that the demand for good cars has not diminished despite the troubling times that automobile manufacturers went through. It was a double whammy for the auto industry. On the one hand they had to contend with sluggish demand due to the global recession and secondly, leading automakers had to recall thousands of cars due to mechanical faults, denting not only their bottomlines but crashing the customer confidence.

While outsourcing is a norm in the manufacturing industry, stringent quality control is an absolute must so as not to compromise on the safety of drivers and passengers. We hope that such lessons have been learnt and will be implemented in the years to come.

However, we hope that the New Year will bring a new lease of life to the automobile industry and may God

AN INTERNATIONAL PLAYER I completely agree with Dr Jasim Husain Ali’s column that Qatar is emerging as an international player. Pertinently, when Dr Ali wrote this column, Qatar had not been awarded rights to host the FIFA World Cup 2022. Qatar is slowly emerging as not only a regional powerhouse, but also a global one. I am sure t he country would scale greater heights in the years to come.

With the FIFA 2022 under its belt, Qatar is expected to invest huge sums of money in building stadiums and other related infrastructure. This will give a major boost to Qatar’s economy and shoot up its GDP to unprecedented levels. Not only that any spending by Qatar will also have rippling effects on the other GCC states by way of direct or indirect benefits. For example, the demand for construction materials like cement and steel may go up boosting production levels in the manufacturing sectors of the region.

Since Qatar will be on the world map, inevitably, the spotlight will also be on 4

January 2011

Jaffer Ahmed, Al Mawaleh

the other countries including Oman. All this will definitely enhance the image of the GCC region as the most happening area of the world.

spill over into 2011. I only hope that 2011 rings-in greater peace and prosperity for not only the country but also to individuals as well.

Paul Kay, Al Wadi Al Kabir

Sunil Fernando, CBD

TIME FOR OPTIMISM

FOR CONSERVATION’S SAKE

The year 2010 will be ending on a tepid note for most corporates around the world. It has been a year of stability more than any runaway growth that one would have expected after the economic chaos. As we usher in 2011, I am lot more optimistic on improved performance of economies around the world. Data emanating from developed countries is more positive than any time in the past couple of years.

HH Sayyid Tarik Bin Shabib Al Said’s photography exhibition at al Muzna gallery was an important event in many respects. As a gifted artist who considers photography a means to shatter the preconceived idea of linear time, Tarik’s photos from various parts of the world constitute an indepth study on the beauty, subtlety and diversity of our environment. Besides, his generous gesture to contribute the proceeds of the sale from the exhibition to environment conservation in the country is commendable.

With oil prices rising every day, Oman has a lot to cheer about in the New Year.

Combined with its production levels going up more than previous years, the revenues that the Sultanate will accrue from oil can be channelled back into the economy.

The government had shown a deficit budget for 2010, but with oil prices going north, the optimistic note will definitely

Ragunatan Palery, Al Qurum

Write to us with your comments/feedback at: editor@oeronline.com

Opening Soon: Shangri-La Barr Al Jissa, Muscat Grand Mall

INSIDE

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42

Dr Montek Singh Ahluwalia, Deputy Chairman of Planning Commission of Government of India

TOURISM

Having completed its major project, the Asian Beach Games site, Omran is in an upbeat mood and will continue to play a major role in strategic tourism-related projects in the country

NATIONAL ECONOMY

Successful planning

The Sultanate has realised significant achievements despite the ever-changing regional and global conditions due to the comprehensive Five Year Development Programmes 6

An issue which is often overlooked when drafting a contract is the clause about jurisdiction

48

CLOSE UP

50

Vital results in Abu Dhabi The resolution allowing GCC companies to open branches in member-states is one of the significant outcomes of the 31st GCC summit

C O V E R

Ensuring fair returns

58

The complexity of jurisdiction

Untapped potentials

Sharq Sohar Steel Rolling Mills is all set to meet the increasing demand for steel reinforcement bars in the Sultanate

FACE2FACE

Crisis over, uncertainty remains

44

CORPORATE PROFILE

LEGAL

January 2011

LUXURY

54

Timely moves Perrelet prides itself in being the inventor of the automatic watch. In contemporary times, the watchmaker has become famous for its double rotor pieces

S T O R Y

Pièce(s) de rÊsistance

30

INSIDE

66

AUTO TALK

2011 Infiniti M37S

56 60

Editorial

2

Environment

70

Economy Watch

10

Golf Update

71

Business Briefs

12

Billboard

72

In the News

22

Market Watch

74

Periscope

24

Gizmos

75

By Invitation

28

Browsing Corner

76

Auto News

68

2nd Asian Beach Games

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CARTOON CORNER

By Kannan Murali

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January 2011

64 78

AVIATION

Low-cost flights come to the fore Despite being a new entrant to the aviation industry, flydubai has recorded a steady growth

ECONOMY

Oman-US FTA – promising start Bilateral agreements may well represent one of the most effective ways to promote economic reform throughout the region

CSR

Breaking confines Outward Bound Oman is introducing corporate Oman to a unique concept – the use of outdoors for teaching workplace skills

BEYOND BOARDROOMS

Making a difference Climbing to the top demands strength, says Dr Shirish Gupte, CEO and managing director, Integration Capital and Trade, Oman and director, BTME

ECONOMYWATCH

A winning streak

On December 2, 2010 the Fédération Internationale de Football Association (FIFA) selected Qatar to host the 2022 World Cup. This is credit positive for Qatari banks as it will create long-term business growth opportunities, enhance their franchise development in their domestic market, and contribute to revenue generation through higher loan volumes. As the country prepares for the World Cup, Qatari banks are expected to benefit from stronger economic activity and higher credit demand in the next 12 years.

$57bn

$129.4bn

Estimated government spending over the next decade for infrastructure development projects relating to stadium construction, accommodation, and upgrading of existing transportation systems

Total banking assets amounted to at year-end 2009, representing approximately 130 per cent of Qatar’s GDP, a ratio that remains low compared to other developed markets

$124bn

39%

Qatar’s estimated GDP in 2010. The country is a small but very rich country, and all domestic banks inevitably exhibit large borrower concentrations in their loan portfolios

Qatar National Bank, the largest domestic institution’s market share in terms of assets.

The State of Qatar owns a 50 per cent share in the bank Source: ‘Moody’s Weekly Credit Outlook’, dated December 6, 2010

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January 2011

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GSB partners with U21Global MYNAWRAS IPHONE APP LAUNCHED Nawras has launched MyNawras iPhone app, an exclusive and highly convenient self-care facility available to all Nawras customers.

A free download from the Apple Store, MyNawras is designed to make it easier for Nawras iPhone users to check their bills or prepaid balance and easily manage their mobile accounts anywhere and at any time. An exclusive and highly convenient self-care facility available to all Nawras customers, it also helps them check usage history for calls, SMS and value added services, all with complete confidence and security.

JET LAUNCHES INDIA-ITALY SERVICE Jet Airways commenced daily non-stop flights from New Delhi to Milan, aboard its new Airbus 330200 aircraft. The airline marked the launch of this new service from Delhi’s New T3 airport with a traditional lamp-lighting ceremony at Delhi International Airport, in the presence of dignitaries including HE Giacomo Sanfelice Di Monte Forte, Ambassador of Italy to India.

PARMIGIANI LAUNCHES HIJRIAN CLOCK Luxury Swiss watch manufacturer Parmigiani Fleurier created a world first mechanical clock based on the Hegirian calendar to celebrate the Islamic New Year 1432 H. The clock was unveiled in the UAE recently.The rarest of luxury artifacts in the world, the coveted clock is priced at AED9.5mn ($2.58) as it is the only one of its kind in the world. With the launch of this clock, Parmigiani Fleurier has successfully relayed its outstanding expertise as a master watchmaker to the Middle East public.

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January 2011

The Gulf School of Business (GSB) has forged a partnership with U21Global to provide high impact programmes in practising management. The partnership seeks to reinforce and meld GSB’s high energy f2f (face to face) sessions with the cutting edge online e-learning programmes developed by U21 Global to create an exciting, unique and superior learning experience.

GSB, along with U21Global, will offer long duration programmes that lead to dual awards of Competency in Practising Management/Post Graduate Diploma of Business Administration; Proficiency/ Certificate Programmes of Management Studies, Financial Management, and Human

Resource Management; and executive education open programmes and customised Industry- and organisationspecific programmes. “With Omanisation becoming of increasingly critical importance, GSB is poised

to deliver dynamic Omani executives with the skills and professionalism required to perform in the business arena and meet international standards,” says His Highness Sayyid Tarik bin Shabib bin Taimur al Said, patron, GSB.

Port Sohar signs agreement with IMCO The Sohar Port Special Projects (SPSP) of Sohar Industrial Port Company (SIPC) signed an agreement with Shipping and Transport College (STC)/ International Maritime College of Oman (IMCO) on the usage of the new state-of-the-art simulators at the college.The signing

ceremony took place on the new jetty of the port in the presence of officials from Port of Sohar, ministry of transport and communication and STC Group Holding. Director of STC Group Holding, Albert Bos signed on behalf of STC/ IMCO and the CEO for the Port of Sohar, Jan H Meijer

signed together with one of the Board members of SIPC, Han Ligteringen for SIPC/ SPSP. Said bin Hamdoon al Harthy, under-secretary, ports and marine affairs, ministry of transport and communication and Edwin van Espen, head of SPSP, were also present on the occasion.

BankMuscat opens landmark headquarters SWAN FOOD’S FROZEN DONUT PLANT Swan Foods, an equal joint venture between Dawn Foods USA and the bakery focused Switz Group, inaugurated a frozen donut plant in Sohar. The two giant manufacturers in the bakery industry have joined forces to utilise their years of knowledge and experience to launch their unique frozen bakery concept.

Swan Foods’ new 8000sqm plant will produce 90million donuts per year for markets in the Middle East and Far East.

MEMON LAUNCHES ‘SHOW APARTMENT’ Memon Investments, a leading Dubai-based property developer and part of international business conglomerate, Shaikhani Group, has launched a model apartment at ‘Champions Towers III (CT III),’ a AED145mn high profile residential development project designed by leading design and engineering firm, Adnan Saffarini.

The move is part of a strategic marketing initiative that aims to give existing buyers a realistic view of the apartment model.

AHLI BANK HOLDS EGM MEETING Ahlibank’ held its extraordinary general meeting (EGM) at Grand Hyatt Hotel. The meeting was presided over by its first deputy Chairman Hamdan Ali Nasser al Hinai. The Board of Directors placed for the consideration and approval of the shareholders, through private placement, the issuing of 35 million nonconvertible, unsecured, subordinated bonds at RO1.005 per bond. The Bank received the consent of its shareholders for the bond issue.

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January 2011

The landmark new headquarters of BankMuscat has been formally inaugurated under the auspices of HE Lt General Sultan bin Mohammed al Numaani, secretary-general of the Royal Court Affairs.

The occasion marked a milestone, highlighting the 28-year progress and achievements of the leading financial services provider in the Sultanate. The grand inauguration also marked the culmination of the year-long

‘Oman Celebrates’ campaign launched by the bank in commemoration of the 40th Renaissance Day anniversary.

The new headquarters at Airport Heights, Seeb, is a true expression of Omani traditions meeting modernity in beautiful harmony. A signature building not only in Oman but in the region, it represents the cultural identity of Oman and the global vision of BankMuscat. Packed with intelligent design in tune with the environment, the new headquarters celebrates the glorious march of the institution during the last 28 years.

‘OMAN – A Nation On The Move’ presented to HH Shabib Al Said A copy of OMAN – A Nation On The Move 1970-2010 was presented to HH Sayyid Shabib bin Taimour Al Said by United Press and Publishing (UPP) to mark the unveiling of the prestigious bi-lingual annual publication on the occasion of National Day. OMAN – A Nation On The Move 1970-2010 is in celebration of the 40th National Day of the Sultanate and is dedicated to His Majesty Sultan Qaboos bin Said, under whose wise and visionary leadership the country has been transformed into a modern country with all round socio-economic progress and growth.

The sixth edition of OMAN – A Nation On The Move

1970-2010 focuses on the economic and social development of the Sultanate in the last four decades.

HH Shabib was glad to read the reports in the book, which address how the policy of liberalisation and modernisation paid rich dividends in the economic

and social well-being and development of the Sultanate.

The book also pays a special tribute to the prominent businessmen who responded positively to HM’s call of creating the modern Oman in 1970 and played their role as nation builders with aplomb.

Renaissance acquires Al Wasita Emirates VLCC LAUNCHES MOMZ VLCC has launched ‘VLCCMOMZ’, a customised slimming treatment for mothers. The revolutionary treatment combines slimming, body shaping, body contouring and toning services with innovative technologies like Ultra Cavitaion & Radio Frequency. Ultra Cavitation targets excess fat accumulated over the abdomens, thighs, hips and arms.

250 NEW PACKS FOR SMART TABLE SMART Technologies announced the addition of more than 250 activity packs for the SMART Table interactive learning centre. Themed activity packs each contain a number of individual activities for the SMART Table, which can be downloaded at no charge via the SMART Exchange website.

SAMSUNG SIGNS AS PARTNER OF BEACH GAMES The Muscat Asian Beach Games Organising Committee (MABGOC) together with the Olympic Council of Asia (OCA) signed with Samsung Electronics, an official partnership agreement for the second Asian Beach Games Muscat 2010.obile phones and printers.

PROTIVITI SURVEY ON REGULATORY REFORM Financial services industry executives on both sides of the Atlantic agree that new regulatory reform measures designed to increase long-term stability won’t forestall future risks, according to a new survey from Protiviti, a global business consulting and internal audit firm. Ninety-seven per cent of respondents say new measures won’t prevent another financial crisis

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January 2011

In the latest move to expand its contract services operations in the region, Renaissance Services has acquired 100 per cent of Al Wasita Emirates for Services & Catering LLC, an industrial services and catering business based in Abu Dhabi.

The company has announced to the Muscat Securities Market (MSM) that it paid

AED 56 million (RO5.89mn) for the purchase of Al Wasita Emirates.

Al Wasita Emirates, which operates from Abu Dhabi, Dubai, Ras Al Khaimah and Fujairah, has been successfully operating various government and private contracts since its launch in 2004, and has achieved

significant growth in its recent performance. Renaissance had announced recently the formation of a joint venture in Abu Dhabi within the umbrella of its Contract Services Group under the name Renaissance Facilities Management Services LLC. The acquisition of Al Wasita will help in accelerating the growth plans of this joint venture.

Nawras wins best service award Nawras bagged the ‘Best Customer Service Provider of the Year 2010’ at the CommsMEA Awards in Dubai.

This is the second year in a row that Nawras won this accolade in recognition of the dedication and commitment of

its people to deliver different service to customers in Oman.

Led by Abdulla Issa al-Rawahy, Nawras Chief Strategy Officer, Nawras people from customer service, sales, network, corporate affairs, IT and

strategy, attended the event and greeted the winning announcement. Al-Rawahy was thrilled to accept the trophy on behalf of everyone in the Nawras family and delighted to bring the trophy back to the Sultanate.

Voltamp to supply transformers to OETC Voltamp’s upcoming power transformers factory at Sohar has won its first order from Oman Electricity Transmission Company (OETC) for supplying four 125 MVA 132KV class transformers.

The order is to be executed within the next 12 months.

The order was won in a tough international competitive

bidding with more than 20 participating companies.

While thanking OETC for this order, Voltamp chairman, Qais Al Yousef, says, “We are very grateful to OETC and the Omani Electricity Sector for expressing their faith in our technical capabilities and quality commitment.

We will surely meet their

expectations. Such large transformers have so far been imported throughout the GCC. Therefore, this is a very proud moment, not only for us, but also for Oman.” With the new factory now getting ready, Voltamp will be the only company in the GCC having capabilities for repairing the largest power transformers.

KR Oil & Gas launches synchronous lifting AL HASSAN AMONG GCC’S TOP 5 CONTRACTORS Al Hassan Engineering Company SAOG, the Contracting SBU of Al Hassan Group, has been nominated among the five finalists in the Contractor of the Year Award category, by Construction Week, for its ability to deliver projects on time and within budget for second consecutive year. AHEC was the only Omani company to feature in the shortlist.

NANDO’S NEW ‘EVERY BITE UNITES’ Nando’s, the world renowned South African flame grilling Peri-Peri chicken restaurant, has launched a new value-adding dining concept entitled ‘Sharing Meals’ at all 29 destinations across the world, including Oman. The new meals have been especially designed to share between friends, family and colleagues. Under the theme ‘Every Bite Unites’, three different meals have been created that are completely unique to Nando’s: a meal for two, four and six.

DHL OPENS MUSCAT GATEWAY DHL Express, the world’s leading express company, has expanded its presence in Oman with the opening of the Muscat Gateway, a new logistics facility in Muscat’s prime industrial area. The company invested over RO85,000 in Oman and is the first express company to set up a fully-bonded gateway facility. The Muscat gateway has the capabilities to perform all forms of express clearances on-site, and DHL customers will stand to benefit from cost savings and reduced transit times.

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January 2011

Khimji Ramdas Oil & Gas division has introduced a unique synchronous lifting technology for the oil and gas, construction, power plants, reactors and other related industries, in Oman, in association with Enerpac, the global leader in high-force tools and equipments. The synchronous lifting solution is an engineering system from ENERPAC Hydraulics

to control the lifting, lowering and positioning of any large, heavy or complex structure, regardless of weight distribution. Synchronous lifting reduces the risk of bending, twisting or tilting, due to uneven weight distribution or load-shifts between the lift points.

Nailesh Khimji, Director, Khimji Ramdas says, “Khimji Ramdas Oil & Gas division

has been instrumental in bringing world’s leading products and specialised engineering services to Oman.

We are pleased to introduce this new technology from ENERPAC to Oman Market.

Through this specific software, the lifting (and lowering) will be extremely accurate.

The lift system can lift even the heaviest loads with a controlled accuracy of 1mm.”

Superbrands felicitates 52 Omani brands Fifty two of the strongest brands in the Sultanate were honoured at a glittering award ceremony attended by an august gathering of ministers, CEO’s, and managing directors, at Crowne Plaza Hotel. The event hosted

by Superbrands, the world renowned authority and arbiter of branding, also saw the unveiling of the coveted Superbrands 2009-2010 book, featuring Oman’s strongest brands. Hundreds of leading Omani and international brands were evaluated by the Superbrands council and 52 of the highest scoring brands were awarded ‘Superbrands’ status. Only brands that achieve the highest level of recognition set by the

independent Superbrands council were eligible for inclusion in the Superbrands Oman book. Bank Sohar, Al Shabiba, Oman Oil, Sohar

Oil, Oman & UAE Exchange, Pofak Oman, Bahar, Nawras, Al Habib and Al Watan are some of the brands featured in the book.

Iskan Oman launches Zahrat al Khareef VALE COLUMBIA CALLS FOR LONG-TERM FDI The advisory board meeting of Vale Columbia Centre on Sustainable International Investment, a global think-tank on the environment and sustainable foreign direct investment (FDI), hosted by BankMuscat, has called to create a framework favourable for long-term investment in emerging markets. Renowned global experts on sustainable FDI attended the meeting held at the landmark new headquarters of BankMuscat.

ZUBAIR EMPLOYEES CELEBRATE NATIONAL DAY A team of the Zubair Corporation employees descended on the village of Sa’al for a communitywide celebration of food, fun, games, singing and give-aways for children and adults as part of the ‘Future Ready’ Renaissance Day campaign organised by Z-Corp to mark the 40th National Day celebration. The afternoon-long event in Sa’al was kicked off with every child receiving a balloon.

BDO CELEBRATES 30TH ANNIVERSARY BDO Jawad Habit has recently celebrated 30th anniversary of its operation in the Sultanate.

An evening reception hosted by Jawad Habib, Senior Partner of BDO Jawad Habib and BDO Middle East, at the Crown Plaza, to mark the event was attended by several prominent members of the Omani business community, BDO clients and BDO partners from Saudi Arabia, UAE, Jordan, Bahrain and Qatar. With humble beginnings of only 3 professionals, BDO Jawad Habib has grown to a formidable strength of 42 professionals and over 400 clients.

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January 2011

Iskan Oman’s Zahrat al Khareef, Dhofar project was launched at a ceremony held at Al Bustan Palace under the auspices of HE Eng. Sultan bin Hamdoon al Harthy, Chairman of Muscat Municipality. The gated community project, offering freehold ownership for Omani and GCC citizens, is the first of its kind and the largest property development to date in Salalah. The Zahrat al Khareef, Dhofar project promises to promote wholesome community living offering the convenience of proximity to amenities and services as well as incorporating recreation and leisure spaces with a family friendly focus. Construction

commenced in April 2010, with the first phase of the development scheduled for completion by the end of 2011. “It is our commitment to actively contribute to our economy as well as

our societies; Iskan Oman seeks newer and untapped avenues and translates them into viable opportunities generating lasting growth,” says Iskan Group chairman, Adil Mohammed al Bader.

Oman Air’s first flight lands in Milan Oman Air has commenced a new service from Muscat to Milan, Italy’s world-renowned capital of culture, fashion and design. Milan is the 41st destination to benefit from Oman Air’s world-class hospitality and the new route is the ninth to be unveiled this year. The launch was

celebrated with cake-cutting ceremonies in Milan Malpensa Airport, and attended by high-ranking airport officials and senior representatives of Oman Air. The airline is offering four flights a week aboard its internationallyacclaimed Airbus A330 aircraft, which offers comfort and

luxury in every class. Each business class seat has direct aisle access and converts into an extra-long fully lie-flat bed. Economy class seats offer surprising amounts of leg and elbow room, together with adjustable head and leg rests and large touch screen seatback monitors.

OCIPED explores Indian markets Omani Centre for Investment Promotion and Export Development (OCIPED) has recently organised a seminar on “Market Study in India for select Omani products” at Grand Hyatt Hotel.

The seminar which marks the culmination of a fivemonth long study by OCIPED in association with Avalon

Consulting India was held under the auspices of HE Ahmed bin Suliman bin Salih al Maimani, undersecretary of the ministry of commerce and industry for administrative and financial and region affairs. The seminar was addressed

by HE Anil Wadhwa, Ambassador of India, Vijaya Kumar, CEO of Infrastructure

Group, Khimji Ramdas, Sridhar Venkiteswaran, executive director, Avalon Consulting and Faris al Farsi, action director general of export development, OICPED. The study was organised to assess the export opportunity for a select set of products and to facilitate interactions between Omani exporters and Indian importers.

IN THE NEWS

With a responsible mission On the occasion of the tenth anniversary of its social responsibility programme ‘empowering people, building the future’, Oman LNG has announced ‘Young scientist of the year competition’ in 2011

O

man LNG has launched new vision for pioneering social investment programmes across the Sultanate and announced its ‘Young scientist of the year competition’ in 2011. The announcement was made at a special Oman LNG event to mark the 10th anniversary of the company’s social responsibility programme. Dr Mohammed bin Hamad al Rumhy, Minister of Oil and Gas, was the guest of honour at the event which was hosted by Dr Brian Buckley, CEO, Oman LNG. Dr Rumhy was presented with the first copy of ‘Empowering People, Building the Future’, a book that reflects on the successes of the company’s corporate social responsibility programmes in Oman over the last decade. Demonstrating the company’s commitment to the environment and preservation of natural resources, the book has been published on totally recycled paper using vegetable based ink.

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January 2011

Outlining Oman LNG’s new vision for the coming years, Dr Buckley said the company’s social investment programme would focus on the three core areas: empowering communities, championing innovation and investing in people.

The ‘Young scientist of the year’ awards, a key initiative in 2011 in association with the Ministry of Education, is intended to encourage the creative application of science in secondary schools to meet the socioeconomic and environmental challenges and opportunities in Oman today. It is aimed at recognising the contributions of individual students and schools to innovation in science at both the regional and national levels.

Commenting on Oman LNG’s Social Investment Programme over the last ten years, Nasser bin Khamis al Jashmi, the Chairman of Oman LNG and UnderSecretary of the Ministry of Oil and Gas, says, “Oman LNG has made a hugely

positive impact on the Omani economy and the development of the nation over the past 10 years. Oman LNG has become a role model for good corporate citizenship in Oman and a trusted partner for the development of the neighbouring communities where its operations are based and across the nation in partnership with the government and recognised nongovernment agencies.

Oman LNG sets aside 1.5 per cent of its annual income after tax to invest in a wide range of project areas, including education, healthcare, social infrastructure, culture and heritage, sport, women’s initiatives, vocational training and the environment. The company has invested over RO35mn in 270 projects over the last ten years.

Some of the high profile projects that Oman LNG has supported in the past 10 years include investing RO1mn in the Ras Al Jinz Turtle Reserve, investments of over RO1.5mn in modern laboratories and workshops in the technical colleges of Ibra, Salalah, Nizwa and Musannah, over RO3mn for the 48 training programmes that have placed over 1,400 Omani citizens in employment and support for local sports clubs in the Sur area.

BY MATEIN KHALID

Making money in Asian equities Country allocation is essential while investing across Asia in 2011, because Asian stock markets are not expected to move up in unison

The author is a renowned investment banker based in Dubai

A

sia has the highest economic growth, most stellar sovereign balance sheet and impressive savings ratios on the planet. However, Asian stock markets will not all move up in unison in 2011.

Country allocation is essential while investing across Asia in this year.

global sell offs (Seoul’s free float is dominated by foreign money), escalation of tensions with North Korea and the very real possibility of a property crash. I expect South Korea’s KOSPI index will range between 1800 and 2500 in 2011, making the Korea Fund (KF) on the NYSE one of my favourite buys on any market selloff.

Geopolitical shocks on the Yellow Sea have created a compelling valuation for South Korean shares, which trade at a forward valuation metric of only 9.5 times earnings. The KOSPI index is the third cheapest stock market in Asia after Vietnam and Pakistan, thanks to the military aggression from North Korea.

Chinese inflation

Yet South Korean companies, which include global icons such as Samsung Electronics, Hyundai Motors and Posco Steel, can well rise 25 per cent due to an improving global economy, better Silicon Valley tech spending, low interest rates and huge capital inflows as the won has the potential to appreciate to 1000 against the dollar from its current 1150 exchange rate. Risks to the KOSPI include a risk aversion 24

January 2011

Chinese shares have lost 15 per cent since the October CPI shocked the Shanghai and Hong Kong financial markets. Inflation at 4.4 per cent is unacceptable to the Chinese Politburo because it generates social unrest. This is the reason the Chinese central bank has tightened monetary policy while the government has imposed price controls on diesel, vegetables and cooking oil and launched a crackdown on commodities hoarders/ speculators.

Chinese inflation will only peak at 6-7 per cent in the next six months so it is entirely possible that the People’s Bank of China (PBOC) will raise interest rates by at least another 100150 basis points. Inflation will hit Chinese valuations. So, I

expect downside risk on the Shanghai Composite A share index, which can fall to 2500 by next summer as the Chinese central bank engineers tight money. Investors will only increase exposure to Chinese equities once they are convinced that the inflation rate has peaked and the central bank will reflate the Shanghai money markets.

Historically, inflation has been an obsessive policy focus for Chinese governments due to painful memories of the Tiananmen Square massacre, which was preceded by an inflation shock.

Moreover, Chinese shares can lose 20 per cent during periods of anti-inflation monetary tightening. However, Chinese large caps listed in Hong Kong (H shares) are cheap and have largely priced in a hard landing. MSCI China is not very expensive at 15 times earnings. Shanghai can bottom at 2500 and trade in a 2500-3400 range in 2011, with a bull run possible only after the summer.

Mired in scam It is no longer possible to be optimistic about Indian equities at current levels.

The ruling Congress is mired

PERISCOPE

in the $40bn 2G telecom scandal, the most explosive political scandal in India since Bofors in the 1980s. India trades above three times book value and 20 times earnings, making it the most expensive major emerging market in the world. The bribery/loans scandal could well devastate the valuation of India’s public sector banks and insurers.

Domestic mutual funds have sold $6bn in shares while foreign investors have invested $26bn in Dalal Street.

Stratospheric valuation bubbles cannot co-exist with foreign selling, a property crash, domestic mutual funds

cutting exposure, a coalition split between Congress and Tamilnadu’s political elite, RBI rate hikes scandals in microfinance/housing finance/ corporate loan funding and the resurgence of global risk aversion (Greece, Ireland, North Korea etc.). I believe the risk of a swift, substantial bear market in India is all too real and the Sensex can trade down to 16000.

However, the Indian equities correction can create compelling long/short opportunities, such as buying Bharti Airtel while selling Reliance Communications. An Indian bank that could well

prove profitable is IndusInd Bank, an admittedly small bank that is on the eve of a major restructuring in its 200 branch network. This is a bank that can well deliver 35-40 per cent EPS growth in 2011 as it triples its branch network, loan volumes and fee income. IndusInd Bank actually rose while the Indian banking sector witnessed its major correction since September. However, I think HDFC Bank and ICICI shares are still expensive and face significant downside risk.

Ideal hedge Singapore has been one of the world’s most successful

economic success stories since the crisis, with GDP growth of 15 per cent as it emerged as Southeast Asia’s high tech, finance, aviation and logistic hub. As a small, open economy where exports are more than twice GDP, the Singapore dollar has risen from 1.65 to 1.30 against the US dollar in the last five years, making it an ideal hedge for GCC investors/savers exposed to the depreciation of the greenback. Singapore has world class companies like SIA, Singtel, DBS, Capital Land, Mapletree REIT. I expect the Straits Times Index to rise another 25 per cent to 3800 – 4000 in 2011.

FACE2FACE

CRISIS OVER, UNCERTAINTY REMAINS Dr Montek Singh Ahluwalia, Deputy Chairman of Planning Commission of Government of India says uncertainty, driven primarily by Euro zone, looms everywhere as we enter the new year, in a chat with Akshay Bhatnagar

Do you think the global economy is out of the woods?

Well, it’s not completely out of the woods, but it’s certainly true that we have arrested the worst outcome that people feared – something like the Great Depression.

We knew that the growth will not come back strongly in the industrialised world. In some way, the growth of the emerging markets is better than what it was a year ago. The only problem is that the sovereign debt in some of the industrialised countries is deeper than what we thought earlier. So to an extent, we are not sure how it will play out.

In some ways, the Euro zone presents a 26

January 2011

very special problem. If you have fiscal and debt problems in a currency union, it becomes especially difficult because for the viability of a currency union it is assumed that individual components will behave themselves fiscally. Uncertainty on its own is greater than what people would have said a year ago.

So, in short, the growth of emerging markets is better than what people expected. The global economy is out of the woods. The emerging markets are doing well but it is very important for them to show stability and there lies the main problem. The responsibility is on the industrialised world to restore stability

even if their growth rate is not that high.

However, there is always uncertainty.

For India and other emerging countries in Asia, the growth prospects look good.

However, uncertainty looms everywhere because we do not know what the coming months will produce.

What have been the positive outcomes of the global economic crisis?

The positive outcome from India’s point of view is the establishment of confidence that our growth is reasonably strong. Yes, we are linked to the world economy and we did get impacted. But the fact that after India’s economy got bumped from 9 per cent to 6.7-7 per cent growth rate,

India has shown a lot of resilience, if we compare our current growth rate.

The second outcome is the shift of the global centre of gravity towards Asia. We hope it will be a dispersed shift. China definitely is the leading economy but others are also pulling it along. The world economy will be more multi polar. But the difficulty is that I am not sure whether we have the governing institution that can cope with the reality of a multi polar economy. The governing structures are still based on the assumption that the industrialised countries are the leaders and that’s how they exist in institutions.

But the world is changing. G8 has changed to G20 and many emerging economies are now a part of it. But it is too early to predict whether this grouping will become functionally effective. For countries to discuss their policies and modify them, as required, need a much evolved act of global responsibility. Most countries invoke sovereignty that we will do what we have to do. I will not be too pessimistic because the G20 has only been there for two years and it takes a lot of time to build confidence. I would say that the creation of G20 with all its weaknesses is a positive outcome.

The other major outcome is that a process of financial sector reforms has been started. Now trying to alter the regulatory structure to control risk is easier said than done. These things are not done by regulations alone; they are done by supervisory philosophy and the effectiveness of execution. But it has definitely put a halt on the kinds of problems that can arise as a result of excessive risk taking. What it will imply to the world is yet to be sorted out because a part of the problem is when you change your regulatory structures, there will be a shrinking in the financial activities in the industrialised world.

Whether this shrinking will be excessive or discriminating against the developing countries are the issues we have to worry about. In my opinion, from India’s point of view, we were never interested in short-term objectives. We were rather interested in long-term capital and foreign direct investment (FDI), etc.

In the next several years, the gap between the growth of potential output

between India and the US and Europe will be larger. This should redirect global investment flows towards India. This is a fast growing part of the world and this is where the money should go. But we have to keep a watch on the prevalent uncertainty which could play spoil sport.

the world does not catch cold. That does not mean the US is not important. The US is very important as they are the largest economy in the world. It is a major source of innovation and technology. I think we all have an interest in that and we all wish the President well.

What is your viewpoint on Obama’s performance on the economic front in the US so far?

Well, he has an extraordinarily difficult job because there is a mismatch between what is feasible and what is expected. The problem is the expectations. The US has been used to of long years of prosperity and suddenly the country faces an unusual unemployment rate of 9.6 per cent.

People expect this issue to be resolved in two weeks! All the data we have and all the studies suggest that if you get hit by a financial crisis then it takes a few years to recover. Early recovery is not feasible.

There is a lot of debate going on in the US about this. Obviously, one of the issues is that if it is going to take that long, should they continue or discontinue the stimulus.

Some very distinguished economists say they should continue. Well, I am told, policy making is the art of the possible.

Politically, I don’t think that the Congress will support a fiscal stimulus so the only stimulus they can do is monetary. Many economists feel that monetary stimulus under the current circumstances may not work. We also know that he has to handle the politics of the Congress, so let’s just wish him well.

What have been the learnings for the Middle East from this crisis?

One thing they should learn is that in the end, the capital should flow where the growth rates are high. And they have traditionally viewed the flow of capital to the US and the Western countries as the safest method of deployment.

People who happily invested in many of these instruments earlier, when they look back on it could construe that the Indian investments could have fared much better than the investments they had in these institutions. Looking ahead the most important lesson is that invest your surplus capital where rapid growth is taking place, like India.

It is very important to understand that it is in our interest that the US economy rebounces quickly as it is dominated by a sort of self confident private sector.

No questions about that. It is a win-win situation if the President can get it done.

On the other hand, it is also true, for the first time, that just because the US sneezes,

The most important lesson is, invest your surplus capital where rapid growth is taking place, like India

What are your expectations in 2011 for the global economy?

I am not an expert in making predictions, yet most people think that 2011 will see a slower growth than 2010 because the previous year was a rebound from a very low base. There is still uncertainty as to whether the Euro zone will create a problem. Most of the projections of 2011 for the industrialized countries suggest that growth will be slightly slower. We, in India, think it will be better. We projected a growth rate of 8.5 per cent for 2010-11 and we are doing a little better than that.

For the year 2011-12, we are hoping to get 9 per cent. Again we see that better managed emerging market economies are doing well, while the industrialized countries are struggling. In the US, it is coming along as expected, so it’s hardly a problem. It is the Europe which is a little uncertain.

There have been speculations that you are among the frontrunners for the top position at the International Monetary Fund (IMF). What is your reaction to it?

This is pure speculation and there is nothing concrete in it. There is no word that the current MD of IMF is leaving. He is doing a good job. I am very happy with what I am doing.

January 2011

27

BY MARILYN ATKINSON

BY INVITATION

The power of great questions The spill-over of ideas generated by a great question can spread like wildfire throughout the organisation

The author is a coaching visionary, a leader and an author. She is also the president of Ericksson College International

I

n my last column, I discussed the benefits solution focused coaching can provide to businesses. This month, I would like to introduce one of the vital elements of managerial coaching: Great Questions. When managers and executives unleash the power of Great Questions, enormous potential is uncovered in teams and employees. This kind of managerial methodology is often what separates hugely successful corporate cultures from the rest.

28

January 2011

Open and closed questions

Why don’t most questions do this? It could be a closed question with a yes/no answer. The person asking the question may have an agenda or judgment about us. The question might lead us into the past, where we are asked to explain, justify or rationalise our choices. In business, such questions can stop all forward movement for a team.

What is the difference between open and closed questions?

A closed question can only be answered with a yes or a no. This leads to a dead-end conversation. By their nature closed questions tend to inhibit higher-level thinking and deeper reflection. In business, closed questions will reduce independent thinking, creativity and innovation.

Open-ended questions stimulate inquisitiveness, resourcefulness and deep thinking.

Open-ended questions offer people an opportunity to move past any limiting ideas they have about themselves. This allows people to come up with their own integral insights and solutions.

Open-ended questions build great managers, business leaders and employees.

What is the difference between asking and telling?

Telling people what to do is a necessary part of business.

The power of questions is lead to more questions. For

We immediately notice when someone asks us a great question. The ideas flash, and we start to think on a new level. The question takes us on a search and leads us into new territory. We all have this ability to ask great questions and transform our business.

In affiliation with Prosper Management Consultancy (www.prosper105.com)

However, you cannot tell someone how to be a great manager or leader, nor can you tell them how to be creative or inspired. Giving advice often comes from the belief that a person does not have ‘what it takes’. We can avoid the creation of a defensive, problem-oriented atmosphere by inspiring creative, solutionfocused thinking through the power of great questions.

open-ended that they open-ended example, we

conducted ‘Art & Science of Coaching’ for Canada Post, an organisation with 80,000 people. We measured the powerful ripple effect as the questioning skillset moved out into the organisation. In our management coach training programmes, accredited by the International Coach Federation, the first challenge is to immerse managers in the coaching conversation. The second challenge is to build momentum through practice and focus. The aim is to develop a bridge to get those coaching conversations into the workplace.

High-level skills What are the key skills of a great 21st century manager?

The key low-level skills are operational: process, procedures and information about the business. What are the key high-level skills of a great manager?

Building strong relationships is essential because trust is the equity of teams.

Having breakthrough conversations is vital to create a shared vision for what teams want.

Designing effective structures of accountability allows teams to stay focused and make realistic promises.

Great Questions open the door to the development of these high-level skills!

COVERSTORY

Ports and free zones are emerging as the centrepieces of Oman’s growth plans and reclaiming their past glory of being the vital link between the trade routes of East and West.

Visvas Paul D Karra reports on the maritime movements in the Sultanate

Pièce(s) de résistance 30

January 2011

T

he chronicle of Oman’s history, past and present, is inevitably etched with its maritime exploits. In the days of yore, Omani shipping activity was distinguished in the Gulf by the greatness of its ships, and the importance of its copper trade, which found receptive markets in the cities of Mesopotamia (modern-day Iraq). Cuneiform texts link Majan with a particular ship called Majan, considered as an example of the greatest and most robust of ships. The influential ports of Qalhat, Muscat and Sohar effectively controlled shipping routes up and down the Gulf. Omani ports rose to prominence in the 10th century when Omani merchant fleets sailed to East Africa and Madagascar to buy ivory, leopard skins, tortoise shell and other exotic goods, which were then traded as far away as India and China in return for spices, silks and porcelain.

Natural choice So when the policy makers of modern Oman went to the drawing boards to strategise on how to diversify the national economy from oil to non-oil resources, they had to look no further than the sea.

As the past linked up with the present, the sea-faring status of Oman ushered in a new era of maritime commerce and prosperity for the Sultanate making ports and the attached free zones the centrepieces of the country’s economic diversification plans.

“The strategy to diversify into the maritime side is correct because ports as a whole obviously are required for a country’s economy to grow unless it is landlocked.

And then a free zone is a natural extension of that and an easy way of doing business, attracting investments and generating activity around its market. You could call this the seeds of economic growth,” says Peter Ford, CEO, Port of Salalah.

The advantage for Oman is that it has three different ports as of today, all with really different business models. Port of Sohar and Port Sultan Qaboos focus heavily on the import and export as the gateway cargo to and from Muscat and January 2011

31

COVERSTORY

“Oman is a gateway to every single shipping location worldwide for every shipping line. So you can take a box from any port in Oman and be in India, East Africa or the US within days”

“I think the ports are doing well in Oman and they will continue to play a big part in the growth of the economy and I hope that they continue to do well”

Peter Ford CEO, Port of Salalah

HE Said Bin Hamdoon Al Harthy Undersecretary for Ports and Maritime Affairs, Ministry of Transport and Communications

Sohar areas and to an extent the UAE. Then you have Port of Salalah, which has a small supporting consumer market with no gateway to any place except to the rest of the world and is placed among the top 20 transhipment hubs of the world. “That is the most interesting thing: Essentially Oman is a gateway to every single shipping location worldwide for every shipping line.

So you can take a box from any port in Oman and be in India, East Africa or the US within days,” says Ford who has vast experience in varied markets like Jamaica, US and the Netherlands.

Impressive performances Up until 1988, Port Sultan Qaboos, earlier known as Mina Qaboos, was the only docking point in Oman for traffic carrying conventional cargo as well containers.

Then the Port of Salalah, (earlier known as Mina Raysut) down south, was not only envisaged and developed as a general cargo terminal but also expanded for container operations creating the Middle East’s leading transhipment hub right in the middle of East-West shipping lanes of the world overlooking the Indian Ocean. The Port of Salalah has four of the

“Because investors are interested in the airports, we are interested in the airports and we want to see that the airports are integrated with the port and the free zones” Jamal T Aziz CEO, Sohar Freezone

world’s largest shipping lines like MSC, CMA CGM, Maersk Line and APL to call at Salalah.

The third major port, the Port of Sohar, mooted in 2002, was developed as an industrial port. This port is located outside the Straits of Hormuz free from the geo-political tensions of the region and gives a strategic comfort to international investors. The industrial area located within the port has attracted investments worth more than $15bn in petrochemicals, metals and other

AT A GLANCE: PORT OF SALALAH Year

Number of vessels Container General Cargo

Containers (TEU)

General Cargo (Tonnes)

Cruise

Discharge

Loaded

Transshipment

Exports

Imports

Passengers

2005

1286

1069

18

2491714

0

2476962

1184896

603422

7181

2006

1321

1206

28

1232035

0

1577571

1690578

6107

13391

2007

1537

820

28

12576

14409

2505010

2174695

608319

16366

2008

1607

1123

36

17145

16640

3034535

2311944

1157128

25055

2009

1773

1915

31

29718

33716

3430025

2972953

748755

21689

2010 (Sept)

1310

1554

23

23123

38097

2528984

3785535

689215

21356

TEU - Twenty-foot equivalent unit; DWT - Deadweight tonnage; FRT - Freight tonne 32

January 2011

COVERSTORY

advantage and proximity to the GCC countries, Iran, Iraq, and the Indian subcontinent,” says Saud bin Ahmed Al Nahari, the executive president of Port Services Corporation (PSC), which operates the Port Sultan Qaboos.

“We have all the ingredients to make Oman the logistics hub for the whole region and we should all work hard to make it a reality in the future” Jan Meijer CEO, Sohar Industrial Port Company (SIPC)

manufacturing industries and is part of the core of the Sohar Industrial Port Zone (SIPZ), which includes a free zone.

As an indication of just how much economic gains are there, the two so-called new kids on the block (Sohar and Salalah ports) have between them notched up impressive performances even while the rest of the world reeled under the spinoff effects of the global financial crisis in 2008 and 2009. At the Port of Sohar, the overall cargo throughput increased by 39 per cent from 6.9 million tonnes in 2008 to 9.7 million tonnes in 2009 mainly from liquid and dry bulk and containers.

The general cargo terminal at Port of Salalah recorded a record 2.92mn tonnes of throughput from January 2010 to the end of June. This is up a staggering 66 per cent on the figure recorded for the same period in 2009 - 1.762mn tonnes. Unlike most ports around the world, throughput at the Port of Salalah increased in 2009 despite the recession, making these H1 2010 figures even more remarkable.

Meanwhile, Port Sultan Qaboos together with the Salalah port unloaded and 34

January 2011

“Oman is pitching itself as the logistic hub of the region thanks to its locational advantage and proximity to the GCC countries, Iran, Iraq, and the Indian subcontinent” Saud bin Ahmed Al Nahari, Executive President of Port Services Corporation (PSC)

loaded 6.4 million tonnes of cargo in the year leading up to the end of July.

According to data by Oman’s national economy ministry, when compared to the previous year the two ports handled 30 per cent more cargo.

Setting the standards According to HE Said Bin Hamdoon Al Harthy, undersecretary for ports and maritime affairs, ministry of transport and communications, Omani ports are not only attracting investments into the Sultanate but they are also setting the industry standards and norms for investments in the whole region. He says all the ports are doing the best to attract business as they can handle any types of shipping business and serve the region through our feeder services. “Oman is basically playing a major role in attracting international investments into the region as we are setting the right standards to attract any kind of business with investorfriendly rules and regulations combined with political stability,” HE Harthy adds.

Logistics hub “Oman is pitching itself as the logistic hub of the region thanks to its locational

Because of number of ports (Sohar, Muscat, Salalah and Duqm in the future) as the main commercial and industrial ports along with the special economic zones that will be developed adjacent to these ports, encouraging the logistics business is obviously an important factor in the scheme of industrial development.

Right on top of this agenda is the massive investments in infrastructure. Firstly, the two existing airports at Muscat and Salalah are being expanded for more capacity to handle both freight and passengers while contracts to build new airports at Sohar and Duqm have been awarded. Then we have the proposed Al Batinah Railway development initially linking Sohar with Barka where a container hub is being proposed, which increases the potential of increasing intermodal cargo transport options particularly in the Sohar region.

Meanwhile, the Port of Sohar is developing two large scale projects which will transform the wider Batinah region into a regional hub for industrialscale mining, quarrying and mineral processing activities.

The first project is the development of a major deepwater bulk jetty to support the bulk shipping needs of Brazilian mining conglomerate Vale, which is building a huge iron ore pelletising and distribution centre at the industrial port. The jetty is being built in a JV by Italy-based international engineering contractor Saipem and leading Indian infrastructure firm AFCONS. The second project is the development of a General Dry Bulk and Aggregates Terminal. “We are quite excited by the deepwater jetty as there are only nine such jetties around the world and this is the first in the region. In addition, the investment in the Dry Bulk Terminal will add to the versatility of the Port of

COVERSTORY

because they (investors) are interested in the airports, we are interested in the airports and we want to see that the airports are integrated with the port and the free zones,” observes Aziz.

“In Sohar, we don’t like to say Port of Sohar, we like to say Gateway Sohar which consists of the port, industrial zones, free zone, airport, railways and expressways and those really are our strengths,” Aziz adds.

Free Zones

“Six companies from Gulf Cooperation Council (GCC), Indian sub-continent and Europe have already signed up for setting up industries within the free zone”

“We have signed a deal with South Korea’s Daewoo Shipbuilding and Maritime Engineering Company to manage and operate the dry dock for a period of 10 years”

Neelima Vyas Chief Operating Officer, Sohar Freezone

Khalid Ahmed Al Salmi Deputy CEO, Oman Drydock Company

Sohar,” comments Jan Meijer, CEO, Sohar Industrial Port Company (SIPC), which oversees Port of Sohar and the Sohar Freezone. With these facilities, the Port of Sohar will have the capacity to handle bulk imports and exports of aggregates, as well as commodities like limestone, coal, cement and chromite, to name a few.

with a railway network. Experts think that this is going to be very important for business not only in Sohar but also the whole of Oman. The railway is going to be useful in supplying minerals and transporting finished goods as well as the containers.

“We have all the ingredients to make Oman the logistics hub for the whole region and we should all work hard to make it a reality in the future because it will provide a lot of employment opportunities for the Omani people in the various logistic sectors,” Meijer says.

Excellent connectivity With excellent road infrastructure and the rail-sea-air links in place, Oman is well placed to provide unprecedented connectivity to the world thus establishing the case for Oman to become the first choice for investors in the logistics and transport services business, points out Nahari.

Oman’s railway system is part of a strategy to connect all the GCC countries 36

January 2011

Says Jamal T Aziz, CEO, Sohar Freezone, “The idea really for us is not to separate the ports from the airports and other modes of transport because they all have to work together. When you have a location like Oman outside the Strait of Hormuz, then you have to look at how to supply the goods to those countries, which you are not entering. And for that the connectivity is important. Sohar for Oman is what Rotterdam is for Europe, a gateway. In Sohar’s case, you can make short voyages to Iran, Pakistan, India and other GCC countries due to the logistics distance.”

Aziz feels the integration of these transport systems is important because investors in various fields would like to see how they can ship or airfreight some of their goods from the area where they are situated in this case, the ports or the free zones. “So,

Free zones are only extensions to really large transport infrastructure like ports and airports. Free zones near big transport systems like ports, airports and railways can help you to do business in an environment more conducive to investment and at the same time be connected to these very large transports systems. In the free zone, if you want to do business whether setting up a distribution hub or a manufacturing unit or other activity, there you can have 100 per cent ownership.

Sohar Freezone is fast becoming a reality with the authorities signing the first civil contract with the UAE-based Al Naboodah Contracting for developing the area. The first of the three phase development includes an area of 500 hectares, out of the total 4,500 hectares envisaged in the master plan. The free zone is expected to attract huge foreign direct investment (FDI), besides boosting the industrial development of Batinah region.

Neelima Vyas, chief operating officer of Sohar Freezone, informs that six companies from Gulf Co-operation Council (GCC), Indian sub-continent and Europe have already signed up for setting up industries within the free zone. These companies will set up downstream industries including oil and gas enclave, a steel cluster, logistics firms, container repair facilities and distribution firms. The total investment for developing the free zone in the region is estimated at RO20-25mn.

The first company within the Sohar Freezone is expected to start operation by third or fourth quarter of next year.

AT A GLANCE: PORT SULTAN QABOOS Year

Container (TEU)

RO-RO (Vehicle)

Number of vessels

Passengers

Dry Bulk (DWT)

Liquid Bulk (DWT)

2005

256843

95173

1865

15361

725785

127588

1225807

5748143

2006

230936

126831

1698

27795

722630

104728

1298950

6966714

2007

277186

165886

1856

89721

1311372

155356

1818372

9695249

2008

359990

174195

2125

138926

1641809

250298

2330480

11579654

2009

278045

85406

1737

220705

1788393

236179

1801424

8698136

2010 (Sept)

230488

79300

1348

265624

958573

178916

430650

6893594

The container, general cargo and liquid terminals and the proposed bulk dry dock terminal dedicated for Vale are all attractions for companies planning to set up industries within the free zone.

Down south, the Salalah Free Zone (SFZ), adjacent to Port of Salalah is another area of attraction for investors and businessmen. SFZ, established in June 2006, is being developed in multiple phases over an area of 2,000 hectares.

The zone offers a mix of industrial, manufacturing, warehousing, logistics and distribution. Phase One, which is now being developed, will provide 200 hectares of distribution, logistics, freight forwarding and manufacturing facilities.

The necessary infrastructure services will include a road network with power, water and other services.

SFZ has attracted eight projects with total investment of over $2bn. These include

the $300mn Octal Petrochemicals for manufacturing PET; the Salalah Methanol project, with an investment of around $900mn; Dunes Oman, a company backed by Brakes India to produce ductile iron and grey iron castings and the fourth is Dhofar Nutraceuticals, which will target the global market for food supplements and energy drinks.

The free zones in Oman provide all of the incentives typically offered in special economic zones including 100 per cent ownership by foreign investors, exemption from customs duties on raw materials and finished products, no income tax, no restrictions on the transfer and repatriation of income and long term leases.

Omanisation levels in the free zones is 15 and 10 per cent in Sohar and Salalah respectively. In the case of Sohar Freezone, tax breaks are upto 25 years.

Total Exports Total Imports (FRT) (FRT)

Duqm development The most astounding ports and special economic zone development in the country is Duqm development. If all goes well according to the master plan, Duqm will be a force to reckon with in the entire Gulf region in the days to come. As per the master plan, the developments include a crude oil export terminal and a strategic storage facility, a free trade zone and a downstream industrial area in addition to an airport, port, dry dock, commercial and residential areas and plans for tourism development.

Thanks to its proximity to the busy regional sea-lanes traversing Oman’s coastal waters, Duqm, about 700 kms from Muscat, is being conceived as a main maritime gateway that will serve an ambitious industrial and commercial hub. Apart from the strategic location of Duqm, the friendly climate of the area adds to its advantages. Positioned January 2011

37

COVERSTORY

AT A GLANCE: SOHAR INDUSTRIAL PORT Year

Number of Vessels

Containers (TEUs)

General Cargo

Liquids

Containers (OICT)

General Cargo (CSO)

Liquids (OOT)

Others

Total (excluding anchorage)

Export

Import

Throughput (FRT)

Ro-Ro

Throughput (MT)

2005

NA

172

NA

NA

172

NA

NA

815,096

NA

NA

2006

7

170

114

35

326

NA

71

1,063,283

NA

1,615,195.146

2007

69

217

240

22

548

3,569

2,721

1,081,483

NA

3,055,655.892

2008

123

308

325

40

796

6,859

17,557

1,750,313

66,816

4,744,349.970

2009

236

268

432

78

1,014

39,709

36,625

1,019,996.8

49,978

7,231,587.7

2010 (Sept)

145

190

402

101

838

33,609

29,608

674,900

55,606

5,694,613

as it is on the Gulf of Oman, with the Strait of Hormuz and the Arabian Sea at its north-eastern end, and with its long coastline running south along the Arabian Sea, the government believes Duqm is strategically the most preferred location for this port.

“We think that the future of ports is Duqm as it will boost the region of Al Wusta for the economy and for the society at large.

There is a good potential,” says HE Harthy describing the Duqm development. The plan for Duqm is to position it as the region’s leading ship-repair centre by constructing a massive dry dock and maintenance facility. Khalid Ahmed Al Salmi, deputy CEO, Oman Drydock Company says, “we have signed a deal with South Korea’s Daewoo Shipbuilding and Maritime Engineering Company to manage and operate the dry dock for 38

January 2011

a period of 10 years. We are building two dry docks and a floating dock. Even though all the facilities are not there, it is a virgin area and an attraction for investors because you can build anything over there and it will grow.”

Besides the dry dock, the government tied up with Belgium’s Port of Antwerp in a 50:50 JV to manage the port at Duqm, which is currently being construction by a consortium of Jan De Nul, Consolidated Contractors Company and Swzai Turkes Feyzi Akkaya (STFA). Experts have said that this tie-up is a shot in the arm for the government’s efforts to develop a world scale industrial and maritime hub on the Al Wusta coast.

Shipping Along side the ports and free zones, the government is also augmenting the

shipping infrastructure. The maiden voyage of container carrier ‘Fanja’, was launched from Port Sultan Qaboos to the ports of the Mediterranean Sea and Red Sea in mid-December, 2010. The ship belongs to Oman Container Company, which is a part of the Oman Shipping Company (OSC) incorporated in 2003. OSC has a 42-ship fleet including very large carriers for iron ore and bulk LNG carriers.

The International Maritime College, Oman (IMCO) will provide the shipping sector with graduates in various specialties. The establishment of Oman Container company and the maritime college will complete the Sultanate’s shipping industry infrastructure.

With so many developments, Oman is steaming ahead on the growth route. And we can only say Godspeed.

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LEGAL

The complexity of jurisdiction An issue which is often overlooked when drafting a contract is the clause about jurisdiction

J

urisdiction” refers to the entity which will hear any dispute between the two parties. Dispute resolution is normally performed by the courts or via an arbitration panel.

However, it is not uncommon to read legally inaccurate contractual provisions, which state something such as: “The Oman Courts will settle any dispute via arbitration.” Sentences such as these can lead to confusion as regards what the parties’ intention actually was; one party will argue that it is clear that the Oman Courts have jurisdiction to hear the dispute, whereas the other party might argue that the Oman Courts cannot hear the dispute, as the Oman Courts are only empowered by the clause to decide who will act as arbitrator. The confusion arises because resolution via the courts is something different to resolution via arbitration.

Strictly speaking, when the parties agree in a contract that the Courts of a certain country will have jurisdiction, the ensuing case is known as “litigation” and the ultimate decision by the judges is known as the Court’s “judgment”.

In contrast, when the parties agree in a contract that the dispute will be settled by arbitration, the ensuing proceedings are known as “arbitral proceedings”, and the ultimate decision of the arbitrator(s) is known as the “arbitral award”.

It is vital, before entering into a contract, to think very carefully about the entity which would have jurisdiction to hear any later dispute. Let us say that an Omani entity is considering entering into a contractual relationship with an English company. The Omani company may want the jurisdiction to be “Omani Courts”, on the basis that the procedures 42

January 2011

The Omani company has a paper final Omani Court judgment in its favour, but how will it enforce that judgment (ie get the money which the English company has been ordered to pay)? The fact of the matter is that the Omani company may then have to start fresh court proceedings in England, where the Omani court judgment may only have evidential, rather than binding, weight. This could lead to extra cost and years of dispute, at the end of which the Omani company may not get what was decreed by the Omani Courts.

By James Harbridge Partner, Curtis, Mallet-Prevost of the courts here are well-known and familiar to that entity. However, what happens if the two entities later have a dispute which is settled by a final, non-appealable Omani court judgment?

The difficulty may only be faced by the Omani entity at that juncture, because obtaining a court judgment is not the same as actually receiving the monetary damages/compensation in your company’s bank account.

The truth is that one has to think, before even entering a contract, as to what might happen if you have a dispute at a later date with your contractual counter-party.

Let us say, in the example above, that the English company simply decides not to abide by the final Omani court judgment and, frankly, tries to disregard and avoid it. Let us also suppose that the English company has no assets in Oman and no presence in Oman.

But what would have happened if the contract in question stated that any dispute between the Omani company and the English entity would be settled by arbitration in Muscat? The answer is that the Omani arbitral award would be automatically enforceable in England against the English entity. This is because both Oman and England have signed the New York Convention on the recognition of foreign arbitral awards. In the above specific circumstances, an Omani arbitral award would have much greater value to the Omani entity as compared with an Omani court judgment.

To conclude, legal advice is always recommended as regards the drafting of the jurisdiction clause. The decisions made pre-contract in this respect could be crucial to your business in a few years’ time.

Any statements regarding federal tax law contained herein are not intended or written to be used, and cannot be used, for the purposes of avoiding penalties that may be imposed under federal tax law or to market any entity, investment plan or arrangement.

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TOURISM

Having completed its major project, the Asian Beach Games site, Omran is in an upbeat mood and will continue to play a major role in strategic tourism-related projects in the country, says Wael Al Lawati, CEO, Omran, in a interview with Visvas Paul D Karra

T

ENSURING FAIR RETURNS 44

January 2011

he Sultanate of Oman has witnessed a fantastic journey over the last 40 years, under the enlightened leadership of His Majesty Sultan Qaboos bin Said. Under His Majesty’s wise leadership, the country has witnessed rapid economic developments and one of the key components of this development is the farsighted policy of diversifying the national economy from oil to non-oil sectors. In this regard, a major emphasis has been laid on the tourism sector as one of the promising growth areas.

“The tourism sector has witnessed massive strides in the development of infrastructure to create a tourism industry. It is incredible to think that in only 40 years, the nation has become one of the world’s most attractive tourism destinations. As we look back with pride, we should also look forward with optimism. The policies and investments in place today point to a bright future, one in which our diversified economy

TOURISM offers employment and wealth to future generations,” says Wael Al Lawati, CEO, Omran.

bedroom apartments, 89 three-bedroom villas and five four-bedroom villas.

As the government’s investment arm in the tourism sector, Omran has been in the forefront of encouraging tourism-related investments in the country, having been established by the Government to create memorable destinations and experiences, which deliver long-term benefits to local communities and the national economy, working in harmony with Oman’s environment and natural resources.

Talking about the benefits accruing to the national economy as well as to the society through Omran’s activities, Lawati opines that tourism is clearly and critically important for future economic growth of the country. Today, tourism represents 2.9 per cent of GDP, equivalent to around RO1.07bn. By 2019, this is estimated to reach 9.9 per cent of GDP, employing 133,000 workers.

Omran has therefore taken over ownership of the InterContinental Muscat, the Swiss Belhotel on Masirah Island, the Golden Tulip Khasab and the Golden Tulip Dibba.

In addition, it has taken on supervision role for the Al Bustan InterContinental Muscat, the Oman Dive Centre and the Ad Duqum Tourist Guest House; and the direct management of the Ras Al Jinz eco-tourism centre.

“As the leading developer in this sector, and as a company established by the government, we play a role in strategic projects across the nation, ensuring the benefits of this economic growth reach all areas of the country,” Lawati says.

While developing the tourism sector of the Sultanate, the government has laid special emphasis on responsible and sustainable tourism. Elaborating on this, Wael says, “we have set ourselves a clear target of putting responsible tourism as one of our objectives for the future. That means a commitment to the environment, a commitment to the local communities and a commitment to the unique national heritage.

As a development and management company, Omran’s projects include a portfolio worth almost RO4bn. This includes major projects such as the Asian Beach Games village and the Oman Convention and Exhibition Centre, and hotel properties throughout the country.

In addition, Omran is involved in more than 20 joint ventures of different types, with a wide range of partners.

Its international partners in this area include Orascom, Saraya, Qatari Diar and Daewoo. Increasingly, Omran is becoming the first stop for international investors in the tourism sector and they are pleased that they have been able to act as the catalyst behind so many projects.

Joint ventures According to Lawati, Omran has a range of projects underway with international partners. For example, its Muriya joint venture, with Egypt’s Orascom Hotels and Development, has three major projects under development. The two large master-planned residential and tourism developments, Jebel As Sifah and Salalah, have seen significant construction progress over the last year and will see handovers in the first quarter of 2011. The third, As Sodah Island, a development of a boutique hotel and eight luxury villas, has also began construction and phase one is expected to be complete by the end of 2012.

Omran has also seen good progress on the Ad Duqm Frontier Town project in which it holds a 50 per cent stake. This will see the development of 55 hectares of land in total, in the Ad Duqm new town. The first phase will consist of 344 units – 250 one46

January 2011

Benefits to economy

Hospitality management Omran now oversees the management of a growing portfolio of hotels, resorts and tourism assets. The company now has nine properties under various levels of supervision and management.

Omran aims to bring consistent quality, service and management levels to all of the properties, as well as committing investments to ensure that the country’s hotel stocks match up to international standards.

“Our role is to ensure each property delivers a fair return and that together, they contribute to the long-term success of the tourism sector in Oman,” maintains Lawati while adding that their portfolio includes a number of the government’s hotels. Over the years, the Government had built up a diverse portfolio of hotel properties, under the management of different ministries. It was felt sensible

Our role is to ensure each property delivers a fair return and that together, they contribute to the longterm success of the tourism sector in Oman

to bring them into unified ownership and management, under a body, which has expertise in the tourism sector.

Oman has truly been blessed with its natural resources – flora and fauna, beautiful landscape and a rich history.

Therefore, the country should welcome visitors who wish to experience these things but it should be careful to nurture and protect them at all times, feels Lawati.

Future plans Omran as an organisation has grown phenomenally quickly since it was established in 2005. Lawati says that with a portfolio of projects under development worth more than RO4bn, plus another 20 joint ventures, plus nine hotel properties under management, it is a tremendous position to be in, in such a short time.

What does the future hold? Even more projects, in each of those areas. In December, Omran completed its first major development, the Asian Beach Games site, and the organisation is moving forward on many others. Through next year and beyond, Omran will see more completions and therefore new properties coming under its management. “But we will never stop our appetite for new projects which will bring long-term benefit to Oman’s tourism sector and to the economy as a whole,” Lawati adds.

CORPORATEPROFILE

UNTAPPED POTENTIALS With some important expansion plans in the pipeline, Sharq Sohar Steel Rolling Mills is all set to meet the increasing demand for steel reinforcement bars in the Sultanate, says Khalid Tawfiq Abdul Rasoul, Deputy Executive Director of Sharq Sohar Group, in an interview with Muhammed Nafie. Excerpts: 48

January 2011

Can you give us a brief background of Sharq Sohar?

Sharq Sohar Steel Rolling Mills (SSSRM) set up its plant in 1997 and started operation in 1999. In 2000, the company launched supply of its products in local market. Initially we had exported steel to Saudi Arabia and Iran; but later, when the demand in local market increased, we stopped exporting to foreign countries and started to focus on Omani market only. Located in Sohar Industrial, SSSRM is now the largest producer of reinforcement bars in the Sultanate.

What is your production capacity and how do you meet the demand in local market?

Currently we are producing around 250,000 tonnes of high strength steel reinforcement bars per year, with a product mix of 8 mm to 32 mm ((8,10,12,14,16,18,20,22,25 and 32 mm) high strength reinforcement bars confirming to BS, ASTM and SASO standards. The demand for steel bars in local market was estimated at 600,000 tonnes per year. It means we are supplying around 40-50 per cent of the total demand of the market. Though we are capable of achieving a total annual production capacity of 300,000 tonnes with certain adjustments in our melt, we are not doing it currently.

What are the main features of your products?

Our bars are made from fully killed steel. The main characteristics of our products include lower carbon content, higher yield strength, tensile strength, percentage elongation, very good corrosion resistance properties, easy bendability and weldability and excellent ductility which ensure economy and safety of use. Their higher fatigue strength makes them suitable for all types of structures and foundations subject to dynamic and seismic loading.

The Temperit (water quenching) process eliminates all undesirable effects of conventional cold twisted deformed bars and higher strength is attained even with lower carbon content.

Can you explain about your epoxy coating plant and weld mesh plant?

We have a fusion bonded Epoxy coating

plant to cater to the need of construction industry which looks for coated rebars to prevent the rusting and corrosion.

People who want to build their houses and buildings next to the sea wants coated bars.

Another value added product is welded steel mesh produced in our Weld mesh plant. Both these units are working under M/s MECI, situated in Sohar Industrial estate.

What are your quality control measures?

We are very particular about ensuring the quality of our products and we follow safe and environment friendly production practices. We are committed to produce and supply bar products as per international standards like BS / SASO / ASTM and strictly comply with all quality requirements from billet procurement stage right through production, quality control / testing and product delivery.

The products are tested in regular intervals during production. Samples are taken every 15 minutes for checking cross section, visual defects and sectional weight. For every 30 tons, one sample is taken for testing the mechanical properties like yield strength, tensile strength, elongation and bend / rebend test. The quality control lab is equipped with state of the art facilities like computer controlled tensile testing machine. OSCAM bending machine, consisting of an in-built electronic programmer, is used for bending and rebending of the bar for bend test.

Angles from 0 degree to 180 degree for bending and rebending are set through the electronic programmer.

We are very particular about the quality of our products and we follow safe and environment friendly production practices

Various international certifications we achieved testify to this fact. As I mentioned, our bars conform to the latest BS standard. They also have prestigious CARES certification by M/s UKAS, UK for the complete product range from 8 mm to 32 mm. Besides, Sharq Sohar Steel Mill is accredited with ISO 9001:2008 certification for the entire unit including testing facilities.

What about your latest backward integration, Sohar Steel?

Sohar Steel, our unit for producing continuous cast steel billets is located at Sohar Port industrial area (SIPC). The plant is capable of producing 250,000 MT of steel billets annually which are meant for consumption in Sharq Sohar, thereby reducing our dependence on imported raw materials.

Sohar Steel is equipped with modernised wet lab facilities and most modern type spectrometer through which strict quality control measures are practiced to achieve the specified product quality standards.

Sohar Steel considers conservation of nature as one of its prime responsibilities and it has adopted the best available dust collection technology to limit the emission.

How competitive is the Omani steel industry and how do you look forward?

Steel is one of the essential commodities and we cannot do without it. In Oman, the economic diversification plans as part of Vision 2020 aim at 6.5 per cent GDP growth with the contribution of other vital sectors to the economy. Steel industry also plays a crucial role. We do not see any major downturn in the industry in the forthcoming years. A lot of projects are under construction and many others are in the pipeline. We are the largest producer of steel bars in the country.

We are also looking for further expansion of our plants so that we will be able to meet the increasing demand in the local market. Sohar Steel is up for an important expansion which will enable us to increase the production capacity to 300, 000- 600,000 tones in the future.

January 2011

49

DR JASIM HUSAIN ALI

CLOSE UP

Vital results in Abu Dhabi The resolution allowing GCC companies to open branches in member-states is one of the significant outcomes of the 31st GCC summit

The author is an eminent economist and Member of Parliament, Bahrain (jasim.husain@gmail.com)

T

he 31st summit of Gulf Cooperation Council (GCC) held in Abu Dhabi in December achieved some notable results with regard to the goal of integrating economies within the sixnation group. The most outstanding accomplishment relates to passing of a resolution allowing GCC companies to open branches in member-states.

More specifically, the agreement calls on the authorities to treat branches of GCC firms as local. This very development fosters completion of the Gulf Common Market (GCM) project, which is regarded as a key component in integrating regional economies.

The GCM, which began in 2008, calls for the free flow of factors of production among member states. The plan covers all economic and investment services in addition to dealing in the stock market and setting up companies in both the public and private sectors.

The 30th GCC summit held in Kuwait in 2009 added access to technical studies to the list

50

January 2011

of shared activities. In practice, the GCM focuses on finding a unified regional market through which nationals could benefit from opportunities in all member states.

Although inter-trade amongst GCC countries remains far below the expectations, there are promising prospects.

Inter-GCC trade amounts to $67bn, just above 5 per cent of total trade (exports and imports) of the six-nation group which is estimated at $1,334bn in 2010.

The petroleum sector accounts for more than two thirds of exports from GCC countries.

It makes the contribution of inter-GCC trade to the total GCC trade higher when oil prices decline. Needless to say, oil is a strategic product, whose price reflects a complex set of socio-economic and socio-political factors.

Saudi Arabia is the second largest oil producer in the world after Russia, and the largest oil exporter in the world. According to June 2010 version of BP Statistical Review of World Energy, GCC countries control about 40 per cent of the world’s proven oil reserves. Saudi Arabia alone

holds 20 per cent of global oil reserves.

Another positive outcome of Abu Dhabi summit relates to possible construction of a regional train link. More specifically, the summit attendees called on concerned parties to press ahead with preparing detailed designs on the scheme.

Fortunately, FIFA’s decision to grant Qatar the honour of staging the World Cup in 2022 adds further logic for the project.

The tournament provides GCC countries at large with the opportunity to be presented as integrated economies. World Cup 2022 provides additional argument for implementation of a causeway linking Qatar and Bahrain.

Electricity grid At the same time, the summit gave GCC leaders the opportunity to evaluate the progress of the regional electricity grid. Started in 2010, the scheme’s first phase involves all GCC countries except the UAE and Oman.

At least one GCC country offered electricity to another member state suffering from a shortage during the peak of summer this year.

CLOSE UP

THE SUMMIT PAID ONLY LIP SERVICE TO TWO PROJECTS DESIGNED TO STRENGTHEN THE INTEGRATION OF GCC ECONOMIES, NAMELY THE CUSTOMS UNION AND GULF MONETARY UNION (GMU)

CONDITIONS FOR MONETARY UNION Limit public debt to 70 per cent of nominal GDP at current prices Restrict budget deficits to 3 per cent of GDP Limit inflation rates plus 2 per cent Short-term interest rates must not exceed 2 per cent the average of three of the lowest rates of member countries Ensure that reserves cover import bills for four months On the other hand, the summit paid only lip service to two projects designed to strengthen the integration of GCC economies, namely the customs union and Gulf Monetary Union (GMU).

Launched in 2003, the customs union scheme missed several deadlines.

The original plan called for full implementation within two years. A pre-summit announcement suggested that member states would satisfy requirements of the customs union by 2011.

In reality, the scheme encountered serious challenges from its very inception, notably related to developing a formula for fair distribution of customs duties among member countries. Sticking points 52

January 2011

include ports of entry and final destinations of goods.

At the same time, the summit offered little clue to the progress of the GMU project, and officially launched at the start of 2010 but with no specific deadline. Only four GCC countries – Saudi Arabia, Qatar, Kuwait and Bahrain – are parties to the venture.

Monetary union The final goals include unifying monetary and fiscal policies and therefore introducing a single currency for member countries.

Implementation of the monetary union project requires member countries to adhere to five conditions dealing with fiscal and monetary standards. These

are: limiting public debt to 70 per cent of nominal gross domestic product (GDP) at current prices; restricting budget deficits to 3 per cent of GDP; limiting inflation rates plus 2 per cent; ascertaining that short-term interest rates do not exceed 2 per cent the average of three of the lowest rates of member countries; and ensuring that reserves cover import bills for four months.

Looking ahead However, it makes sense for GCC officials to evaluate the Euro’s experience whilst pursuing the GMU project.

The European model continues to struggle with several member countries, starting with Greece but not ending with Ireland, reeling under consequences of debt overload.

Certainly, the next GCC summit, scheduled for late 2011 in Riyadh, will most likely result in the adoption of further steps aimed at integrating regional economies. Originally, Bahrain was due to host summit No 32, but reflecting brotherly spirit among GCC nations, it accepted a Saudi request for a change of venue.

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LUXURY How long you been in the watch industry and what is your impression of Perrelet?

I joined the Perrelet company in March 2009 as CEO. Before that my experience in the watch industry was with Hugo Boss, Gucci and Ebel brands. My total watch industry experience is over 17 years.

When I arrived in Perrelet, it was a difficult economic situation worldwide.

The brand was also going through tough times. For us it was a big opportunity to review the brand strategy and it was a good moment to rethink about the repositioning of the brand in terms of pricing, in terms of collection and the distribution network. The first thing was to review and clean the collection and propose a whole new range of products in order to make it more dynamic.

The second main task was the price positioning done by reducing between 10 and 30 per cent in order to be more competitive. We were able to decrease the price because we converted most of our manufacturing process to an industrial scale. Thus the price of the components was brought down ultimately bringing down the cost of the final product.

Thirdly, we reworked on our dist ribution networks across the world. By this we mean, we closed in many countries in 2009, because we were not with the correct partner and we reopened countries like Hong Kong. We are also looking for new partners in Latin America and Europe.

Was it due to the recession that you closed your networks in some countries?

We closed down in around 10 countries but it was not due to recession. It was because our partners were not able to develop the brand correctly. It is a young brand, no doubt, and we are still small producing around 4,500 pieces per year.

However, to build and develop the brand in the price range we are proposing, we needed people who understood the brand, and had correct point of sales to sell qualitative brands. Managing a brand whose retail price ranges from RO8000 and above is different from a brand which costs RO800.

54

January 2011

What is your opinion about your distribution partner in Oman?

Our distribution partner (Gallery Argan) is very dynamic. He already has a network of point of sales and he has good plans for the future. This is very important for the future. Secondly, the market is small and considering the presence we already

have, we are happy to have three points of sales in Oman.

Can you define the function of a watch?

There is a vast difference in how a watch is perceived by men and women. To begin with, a watch is just a timepiece.

Therefore, it is more than a watch for a man.

What is the uniqueness of a Perrelet watch?

The double rotor. The rotor at the top is linked to the rotor at the bottom. From a technical point of view, it will help to rewind the watch faster but also it will give you an animation feeling in the dial.

We are unique with the diamond flower dial family for the ladies, where we have the rotor at the top in the shape of the lotus flower and this rotor is moving when you move your wrist.

For men, the rotor is titanium rotor.

Another more classic but with the same rotor is the turbine rotor, which moves faster and gives the impression of the turbine of an airplane. All the communication is based on the double rotor and besides this, Perrelet is considered the brand of specialities. We do not consider Perrelet as the brand of complications, because we have very less complications, so we prefer them to call them specialities. For example, we are the first with the double rotor, besides this we have the jumping hour, then we have the central moon faced dial. Apart

TIMELY MOVES

Then we work on the technicals. If we are happy with the technicals, we give the watch to the manufacturer of cases who will produce the samples, then we do the same thing for the dials, the strap.

The whole watch is built around the movement because it’s the movement which determines the size and volume of the watch. When everything is approved, we send it for mass production.

What are your impressions of the watch industry after 17 years of experience?

We should be on our toes to follow the trends and requests of clients. This is not easy because the notable thing is trends keep changing very quickly. If you look at the cycle of producing a watch, which is 18-24 months, the taste of the client would have changed quickly, therefore it is a challenge to introduce the right product into the market at the right time.

Then there is the issue of price. You have a lot of brands that are dying because if you had a client who was buying two or three watches a year, today he is buying only one and he will go to the brands that are well established or the more classic watch brands. So things are changing fast and we have to be very careful. But we believe that we have a safe proposition in a brand like Perrelet because we not only have very trendy products like the turbine but also more classic products with the specialities.

Perrelet prides itself in being bein the inventor of the automatic watch. In contem contemporary times, the watchmaker has become famous fam for its double rotor pieces. Fausto Salvi, CEO CEO, Perrelet, who was in Oman, recently talks about the brand bra in an exclusive interview with Visvas Paul D Karra. E Excerpts.

Do you feel threatened by the digital watches? What is the future of watches?

We have to stick to our core brands and business. For sure there will be an evolution. Many brands are working on improving the existing movements and also coming up with novelties so it will depend upon the requests of the final consumer. As you can see, till today, the final consumer is still interested in the classical, safe automatic watches.

Secondly, while women can show-off accessories like a handbag, a lighter, jewellery or her dress, a man does not have so many choices to show. A watch is more or less is one of the unique things he can show off. The shape, the design and the price positioning of the watch reveal your status.

Which is the biggest market for Perrelet?

Our biggest market is the US. Soon we will achieve 50 points of sales in that country. What that also means is that we are beginning to make an impact on the market. This also means we are starting to become an interesting brand.

from this, we have the regular retrograde, colour code and big date.

Please describe the manufacturing process of a Perrelet.

It all begins with a drawing. Based on the drawing, we do prototypes in wax, so you can see the shape and the volume.

January 2011

55

AVIATION

LOW-COST FLIGHTS COME TO THE FORE Despite being a new entrant to the aviation industry, flydubai has recorded a steady growth.

Rana Alawneh reports from Beirut

level of passenger comfort and reduce emissions. The interior design has subtle mood lighting to simulate nighttime, daytime and sunrise/sunset light, as well as redesigned overhead bins to give more cabin space and increased storage.

Flydubai’s new ‘Fiber To The Screen’ (FTTS) in-flight entertainment (IFE) system from Lumexis is lighter and thinner than previous models, enabling it to fit comfortably into the Recaro passenger seats that flydubai has had fitted in its aircraft. Passengers travelling on these new flydubai aircraft can choose what they want to watch depending on their preferences and how much they want to spend. Many carriers are assessing flydubai experience to measure the efficiency of the system and benefits.

Ghaith Al Ghaith says that the reason behind the investment in the new entertainment system is the fact that entertainment is one of the basic needs for most passengers. “On the other hand, we, as a low-cost carrier, cannot afford the high cost traditional entertainment system. The new Fiber To The Screen’ (FTTS) in-flight entertainment (IFE) system from Lumexis is the ideal solution for us as it is known for its high quality, flexibility and low cost.”

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ll forecasts predict a remarkable growth in the number of inbound and outbound passengers at low-cost carriers as they are expected to capture 10 per cent of the local and regional market in 2011. This is mainly attributed to their capability to meet different needs of passengers by offering them affordable rates.

It was in June 2009 that Flydubai, Dubai’s first low-cost airline, had announced daily services to Beirut. In the first three months of its operation, the company managed to transport 100,000 56

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passengers. This was followed by the launching of 27 more new destinations.

Flydubai owns 12 new 737-800s, the most successful brand of Boeing commercial fleet. As of today, there are 1250 Boeing 373 flights, with one flight taking off each 4.6 seconds. The company is looking forward to own 50 more new 737-800 by 2016 to operate its flights to no less than 70 destinations in the region.

Speaking on the occasion of receiving the first Boeing 737-800 Sky Interior in Beirut, Flydubai CEO Gaith Al Ghaith says the plane is designed to ensure high

The low-cost travel model has contributed to motivating the air travel market in the region. The statistics released by IATA point out that the share of low-cost flights in the region is 7 per cent of the total air travel market in 2010. When this level is compared against the more mature markets such as Europe and U.S.A (35 per cent and expected to be 50 per cent in 2011), the level achieved in the region is still very low. This is due to the low penetration rates and untapped potentials.

Commenting on this Al Ghaith says that the growth rate in Europe persuades us to take more efforts to achieve similar rates. “In our region, we need to get visas to move between one country and the other. This in fact acts as a hindrance to the air travel growth. Moreover, the lowcost carriers are still at early stage but have good potentials for growth in the coming years especially if the business environment is conducive, “he adds.

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NATIONALECONOMY The Sultanate has realised significant achievement despite the ever-changing regional and global conditions due to the comprehensive Five Year Development Programmes, says HE Ahmed bin Abdulnabi Macki, Minister of National Economy and Deputy Chairman of Financial Affairs and Energy Resources Council

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he government’s basic goal, since the beginning of the Blessed Renaissance, was to achieve growth and progress that comprises the economical and social dimensions reflecting directly and positively on the Omani citizen by way of raising the standard of living and providing a better life and well-being for him and his family.

To achieve this, the government adopted a comprehensive development concept based on free market and perfect competition to activate and stimulate the national economy, raise its efficiency and growth rates. It also, followed indicative planning to rationalise the economic path, maximise the social returns of growth, and improve the quality of life of its citizens through the Five Year Development Plans.

It is worthwhile to note that the investments between 1971-1975 were only RO395.6mn and in the first six FiveYear Plans 1976-2005, the investments amounted to RO7.61bn. However, in the Seventh Plan until September 2010, the investments were RO5.19bn i.e. 64 per cent of the total investments during 35 years from 1971 until the end of 2005.

Under the wise and inspiring leadership of His Majesty Sultan Qaboos bin Said, 58

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SUCCESSFUL PLANNING

there was continuous follow-up and close monitoring, directing and making sound and crucial decisions of the development plans. The government is considered the prime mover of economy where it undertakes the implementation of most development projects whether production or service. It is assisted by the oil revenues, which are optimally utilised to realise development and welfare of citizens. In spite of the fluctuations in oil prices over time, the government was able to move forward in implementing development projects even during the decline in oil prices benefiting from reserves it accumulated during high prices period.

Civil ministries development The development programme of civil ministries and government units represents one of the main executive tools to realise its objectives, policies and implementation of projects included in the successive Five-Year Development Plans.

The cited plans were formulated according to requirements and needs of each stage after a thorough assessment of the previous Five-Year Plans. The total government expenditure during the previous four decades amounted to RO94bn taking in account equitable regional distribution of the outcomes of the development.

Services like education, health, electricity, water, roads, communication were spread in various governorates and regions of the Sultanate. .

ministries conduct field visits to the wilayats to identify their real needs. In addition, the Royal Tours in which His Majesty annually visits a number of wilayats to meet and have dialogues with his citizens about their issues and needs contributed in defining the citizens’ needs and their immediate fulfilment.

Two-stage growth Oman’s development path, during the four decades, passed through two important stages. The first from the beginning of the Renaissance in 1970 and continued for 25 years until the beginning of 1996.

During this period, the Sultanate was able to set up successively the basic pillars for economical and social transformation.

The second stage from 1996 until now which manifests the beginning of the launch to the future horizons, realises the sustained self-growth and full readiness for deeper and wider link with the global economy and its surrounding significant political and economical challenges.

Spreading the development

The second stage started with the preparation of the long-term development strategy (1996-2020) which anticipates the development vision for the next 25 years. Within the context, of this second stage, the preparation and implementation of the successive FiveYear Plans have been achieved since 1996. The vision defined the path of the Omani economy for 25 years in four main dimensions. Each dimension constitutes a number of objectives to be realised.

Altogether seven Five-Year Development Plans were implemented with the Eighth Five-Year Development Plan commencing from this month. All these plans sought the achievement of the long-term strategic plan, which was carefully prepared with clearly defined objectives, policies and mechanisms needed for implementation.

The four dimensions are as follows: 1. Realising sustainable comprehensive economic development within a stable economic framework 2. Advanced human resources development so that the Omani citizen is enabled to undertake his full

The Five-Year Development Plans were characterised by wide participation of the various community entities so that their directives meet the ambitions of all society groups and sectors. The different wilayats, governorates and regions participated in identifying their needs for primary services by providing the sectoral ministries with their requirements which would be taken into consideration when preparing the sectoral plans. In addition, groups of specialists from different

The total investments in various sectors through the development programme of the FiveYear Plans from 1971 until September 2010 reached about RO13.2bn

role in national economy 3. Development and diversification of the production base of the Omani economy within a dynamic and interactive framework with the global economy 4. Creation of an efficient and effective private sector that is capable of participating in the economical and social development process and able to compete globally

Eighth five-year plan The implementation of the Eighth FiveYear Development Plan begins this month until the end of 2015. The most salient dimensions and directives of the Plan include: 1. Maintaining the macroeconomic stability and economical balance that ensure the steady growth in GDP and increase per capita income.

2. Maximising the social return of development in a way that positively reflects on citizens life through upgrading of education quality, expansion in higher education, improvement in the quality of health services and its close vicinity to citizens, creation of more employment opportunities for citizens and youth in particular.

3. Continuance in the economic diversification policy, strengthening the manufacturing fields in various regions of the Sultanate, development of small and medium size projects, increasing non-oil exports, improving its quality level, and developing its structure.

4. Attracting more national and foreign investments, enhancing the private sector role in the development process especially after setting favourable macroeconomic environment, upgrading laws and legislations related to investment and provision of various incentives.

5. Dealing with the rapid regional and global economic variables to ensure benefit from the positives and opportunities available, limiting the negative impacts of these variables and maintaining the economical and strategic interests of Oman.

Excerpts taken from HE Macki’s speech given on the occasion of the 40th National Day. January 2011

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OLIVER CORNOCK

ECONOMY

Oman-US FTA – promising start Bilateral agreements may well represent one of the most effective ways to promote economic reforms throughout the region

The author is Regional Editor, Oxford Business Group

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fficial relations between the US and Oman stretch back nearly two hundred years, with the “Treaty of Amity and Commerce” inked in 1833 marking the first bilateral accord between the US and an Arab state. However, both diplomatically and economically – as if the two were ever separate – Oman has been most engaged with neighbours closer to home. It also has extremely strong ties with the UK. In 2008, nonoil exports making their way from Oman to the UK totaled RO46mn. Those headed to the US, with an economy more than seven times as large, were not much bigger, at RO72mn.

Winds of change have been in the air since 2006, when the US and Oman committed to working towards a free trade agreement. The treaty came into effect in 2009, allowing immediate duty-free access to most commercial, industrial, and agricultural products for both countries, with a commitment to phasing out existing tariffs over the subsequent 10 years.

By almost all accounts, the treaty has been a success.

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With the second anniversary of the treaty’s inauguration fast approaching, has the FTA achieved the ends it set out to address? And are the changes it has brought here to stay?

Generally, yes. The agreement was the result of years of diplomatic negotiations and its wide-reaching reforms show the government’s commitment to integrating Oman into the global economy.

Trade is rising, especially in the westward direction: Omani non-oil exports to the US have increased over 300 per cent, jumping from RO13.2mn to RO53.6mn in the first half of 2010 as compared to the same period in 2009. In addition, the FTA has granted US companies the right to establish and own businesses in Oman without a local partner in most sectors, apart from legal services.

This is a privilege that had already been extended to other members of the GCC, however, it remains a unique opportunity for the US when compared to Oman’s other major trading partners.

ADVANTAGES GALORE US Companies also benefit from lower Omanisation requirements, with only 80 per cent of the employees of a

US company in the Sultanate required to be Omani nationals. Furthermore, this threshold excludes managers, members of the board of directors, and “specialty personnel” – broadly defined in the treaty as “persons who are employed to use their expert or proprietary knowledge of a covered investment’s services, equipment, techniques, or management and may include, but are not limited to, members of licensed professions” – granting in practice significant licence to hire on the international market.

Importantly, the benefits of the US-Oman FTA have not accrued only to the two countries involved.

Indeed, the FTA is seen as a one of the key driving forces in Oman’s ongoing economic liberalisation, as it has encouraged greater transparency and adherence to international standards.

For example, a 2006 revision to the existing Labour Law, drawn up as a precondition to signing the FTA, requires employers to engage in collective bargaining with their employees over terms and conditions of employment, prohibits employers from firing employees that

ECONOMY

BY ALMOST ALL ACCOUNTS, THE USOMAN FREE TRADE AGREEMENT HAS BEEN A SUCCESS. WITH THE SECOND ANNIVERSARY OF THE TREATY’S INAUGURATION FAST APPROACHING, HAS THE FTA ACHIEVED THE ENDS IT SET OUT TO ADDRESS?

engage in union activity and increases penalties for hiring underage labour. A guarantee of intellectual property rights and a secure legal framework for investments have also been put in place. Furthermore, tenders for public works must now be advertised in the press, allowing all international investors to profit from the agreement.

These developments have rendered Oman a more attractive investment destination both for US investors and the wider world.

However, the economic liberalisation of Oman has never been the sole intent of the US-Oman FTA. The agreement marks the fourth FTA signed by the US with an Arabian country, following those reached with Jordan, Morocco, and Bahrain. As originally conceived, the USOman FTA, like the others, was intended as an important stepping stone towards an eventual Middle East Free Trade Agreement.

While nearly everyone agrees that this is a good goal in theory, differences have arisen as to the path Middle Eastern countries should take to achieve this regional agreement. Many see bilateral 62

January 2011

TWO-WAY STREET US-Oman FTA is one of the key driving forces in Oman’s ongoing economic liberalisation The agreement marks the fourth FTA signed by the US with an Arabian country Bahrain was the first member of the GCC to complete an FTA with the US, in 2004 Omani non-oil exports to the US have increased over 300 per cent in the first half of 2010 FTAs as effective building blocks, since they encourage standardisation.

Others, however, believe these agreements undermine intraregional cooperation.

Bahrain was the first member of the GCC to complete an FTA with the US, in 2004.

Soon after, Reuters reported that Bahrain was coming under fire from its neighbours in the Gulf for concluding an agreement which they claimed was in violation of the GCC economic agreement, which forbids “granting preferential treatment exceeding that granted to member states”.

The GCC member states had expressed a desire to form a common Customs Union in 2003 that would set a common tariff of 5 per cent

on external trade. The FTA, which abolished external tariffs in US-Bahrain trade, would seem to run counter to this agreement.

However, in practice, the GCC Customs Union was still far from implementation, and indeed remains so today.

Though the legal framework for the Customs Union was laid out and ratified in 2003, implementing the practices outlined on paper has proved to be more of a challenge than expected.

Key stipulations of the Customs Union included the abolition of all internal tariffs among the GCC member countries, and a fair distribution of the customs revenue derived from external

trade. An initial three-year transition period was provided for in the 2003 agreement, and subsequently extended in 2008. Disagreements over border controls and revenue distribution have continued to stall progress. A decision to delay the full implementation of the Customs Union a further two years was announced at the conclusion of a meeting of GCC ministers of foreign affairs, finance and economy held in Jeddah this September.

While this disappointed some, the statement was tempered by the parallel announcement that automated customs clearance systems will be rolled out soon to help combat delays.

Proponents of the GCC Customs Union maintain that a unified economic bloc would boost the standing of its member countries within the world trade community.

However, as many have noticed, bilateral trade agreements like the US-Oman FTA serve the same purpose.

Given the continued difficulty of implementing a unified Customs Union throughout the GCC, bilateral agreements may well represent one of the most effective ways to promote economic reform throughout the region.

CSR

BREAKING CONFINES Outward Bound Oman is introducing corporate Oman to a unique concept – the use of outdoors for teaching workplace skills.

A report by Mayank Singh

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n oft-repeated complain of employers and HR managers is that there is a gap between education and the needs of a workplace.

Employees, both prospective and present, are often charged with lacking skills like working in teams, communication gap and so on. Though organisations try to narrow this skill gap by taking them for training courses, the results turn out to be anywhere from average to disappointing.

The use of outdoors for skill building is an alternative approach being explored by various organisations. Says Mark Evans, general manager, Outward Bound (OB) Oman, “Using the outdoors as a learning curve has enormous benefits.”

Launched in May 2009, OB or Tahaddi, which in Arabic means ‘challenge’, has conducted 30 courses from September 2009-2010. Around 400 executives participated in these courses with 70 per cent of them being from Oman.

“We thought we would do 20 courses, but ended up doing 30,” says Evans. OB expects to do 33 courses during 2010-11 (September to August).

The courses are tailor-made to suit the needs of individual companies. For example in May 2010, a three-day course was designed for 14 employees of Oman LNG. The brief was to facilitate a cross departmental dialogue. The group was taken to Jebel Akhdar and trained in leadership and management skills. The CEO of the company, Dr Brian Buckley, himself participated in the course. Says Evans, “In an environment where the surroundings are continually changing 64

January 2011

everyone has to evaluate risk, think and cooperate with each other.”

The group is exposed to different leadership styles. For example, for the first three hours a leader may be asked to lead the group in an autocratic style.

Other members of the group are given a chance to talk frankly about the leadership style later on. This is then followed by other managerial styles – democratic, consultative etc and the strengths and weaknesses of each of the these styles are discussed individually.

Mahmood Al-Hadidi who participated in the course from Oman LNG says, “Knowing one’s strengths and areas of development can only be realised under real time pressure and demanding situations and this programme gave us exactly that. The beauty of OB experimental learning is that one actually experiences what one is imbibing, rather than sitting in a classroom imagining what it looks like. The hidden potential that some of us had was unleashed due to the nature of the programme and the way it was designed.”

Richard M. Preece, CEO, Oman Methanol Company (OMC) shares the feedback he got from the OMC organiser who participated in one of OB’s programmes, “The course was a unique experience for the 10 OMC staff who spent three days and two nights outdoors. The challenge of living in an unusual environment wherein everyone had to live with a

Mark Evans, GM, Outward Bound (OB) Oman

little food and other amenities made us aware of the need to help other team members. The intellectual exercises and discussions were a special experience as they challenged our imagination.

Team work, being organised and good communication were among the great lessons that the team members learnt besides planning and self dependence.”

Customised courses OB courses are not just limited to corporate issues, but can be used to inculcate other values as well. When Caledonian College of Engineering wanted its students to be aware of the environmental impact of their future careers, it knocked on OB doors. Students were asked searching questions like, ‘If you were working for a construction company and had to

build a five-star hotel, what would its implications be for the environment?

A number of companies like Oman LNG, Sohar Aluminium, Oman Methanol have used courses being offered by OB to inculcate a range of values like team work, environment awareness, road safety etc.

Apart from corporates the organisation is also working with a number of government schools to transfer life skills to students.

The organisation has found support from the private sector in such endeavours.

Renaissance Services is supporting the programme for six schools this year, Omran has pledged support for four schools and Oman LNG is helping six government schools to avail of OB courses.

Realising the importance of the initiative, a number of other companies have

extended their help to OB. For example, the W J Towell group has given it office space in Madinat as Sultan Qaboos, Oman Methanol company provides fuel to OB and Massirah International lets it store its equipment in one of its warehouses in Ghala. The Suhail Bahwan Group, Denton Wilde Sapte, Shell Oman and BG Oman got together and founded OB Oman in 2009. Says Evans, “These companies felt that there was an opportunity to do something different in Oman.” The Sultanate is the first country in the region to start such a programme.

Internationally OB started in Great Britain in 1941 during the Second World War. At a time when Britain was losing a lot of people at sea, the need was felt for a physically and mentally challenging

programme that would equip young people to take on wartime challenges. In 2010 there were 30 OB schools across the globe. OB is headquartered in the US and has a repertoire of over 20,000 courses.

This serves as a good reference point for others to draw upon. Local offshoots can customise these courses to suit the needs of their clients and cultures. For example, if the brief is to inculcate better communication skills, align people to a company’s corporate vision or to foster time management skills then courses can be tailored to suit these individual needs.

The mechanics of a course OB Courses usually span over Monday, Tuesday and Wednesday, while the team prepares for the course on Saturday and Sundays. A minimum of six people are required for a course and the maximum

number of people that are taken aboard for a course is 18. When it comes to schools, OB works closely with the Ministry of Education. The Ministry identifies the schools that it wants OB to work with and introduces it to the concerned schools. Once the introduction has been done, then a member of OB goes to the respective school and explains the various requirements to its students and teachers. For girls, there are women instructors and trainers.

During the first year in Oman OB was focused on designing courses and refining it. With the courses in place, the programme is now focusing on measuring the impact of its courses.

Says Evans, “Our course ends with each participant evaluating themselves

on various parameters like leadership, problem solving, teamwork, leadership, time management and environment awareness.” The CEO’s of participating companies are invited to come on the final day of the course and each individual is asked to give a presentation on what he learnt and how this knowledge could be transferred to his workplace.

The feedback to OB has been encouraging. Evans says with a tinge of pride that he has rarely gone knocking on doors for support or participation.

“Our alumni are our best ambassadors.”

Having got a good start, OB is keen to build upon the strong foundation that it has established. “We want to grow steadily and are under no pressure to stretch ourselves,” says Evans. As they say, well begun is half done.

January 2011

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AUTOTALK

Inspired by nature THE 2011 INFINITI M37S PROMISES TO EXHILARATE YOU ON PERFORMANCE AS WELL AS DESIGN. AKSHAY BHATNAGAR TAKES OUT THE NEW SEDAN FOR A SPIN

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o penetrate further in the Omani market in the new year, the Japanese luxury brand Infiniti has moved into the top gear with the launch of a new lineup of its M range vehicles.

We tested out the M37 Sports to get a feel of the new luxury range. The rear-wheel drive sedan is a treat to watch and drive.

It could be a perfect mate for anyone looking for sheer performance, great looks and exclusivity.

Impressive Exteriors One glance at the new sedan’s body and you can’t stop yourself from admiring it. Infiniti’s product brochure describes the design as ‘an imprint of the natural world’. Elaborating further, it says, ‘The tiered waterfall-inspired centre stack. The exterior lines that flow like a cresting dune.

Infiniti doesn’t simply exist in the natural world, we are a powerful reminder of it’. It is difficult to disagree with the statement as the design philosophy distinguishes the sedan from many of its competitors in its segment. With an overall length of 4,945mm and a width of 1,845mm, M37S comes in the right proportion to attract senior executives and upscale youngsters looking at making a style statement.

The sedan comes with auto-on/off High Intensity Discharge (HID) bi-functional xenon headlights with wiper interlock.

Its another driver-friendly feature is Adaptive Front Lighting System (AFS) with auto-leveling headlights.

Power Control M37S is powered by a 3.7 litre (3,696cc) 24-valve V6 engine with aluminium alloy block and heads. It comes with an electronically controlled 7-speed automatic transmission with Adaptive Shift Control (ASC). The driver-adaptive learning algorithm senses driving style and adjusts automatic shifting accordingly. The 4-wheel active steering and sport-tuned suspension with double piston shock absorbers provide high damping force at low frequency vibrations for a flat ride and low damping force at high frequency vibrations for a smooth ride.

Rich Interiors The interiors of the sedan give a very expansive and luxury feel. It comes packed with an enhanced intelligent key memory for audio & climate control

2011 INFINITI M37S SPECIFICATIONS and navigation settings, dual zone automatic temperature control system and aluminium sport pedals & foot rest.

For optimum seating comfort, M37S is equipped with 10-way power driver’s and front passenger’s seats including 2-way power lumbar support. It also offers dual occupant memory system for driver’s seat, mirrors and steering wheel settings, linked to individual intelligent keys. This feature is very useful in case the vehicle is driven by more than one person. The soft-touch leather seats and polished wood accents are simply alluring.

For those who enjoy listening to the music on the go, the Bose 5.1 channel premium audio system and 9.3GB music box hard drive is irresistible.

Unique Propositions Two of the most striking features of M37S are Blind Spot Intervention (BSI) system and Lane Departure Prevention (LDP). The BSI system uses sensors to warn the driver against a vehicle that is approaching in his/her blind spot and helps the vehicle to avoid shifting if the driver tries to change lanes. The system applies opposite-side brakes to guide the vehicle remain in its lane, to reduce the risk of an accident. To override the system in an emergency situation, harder input on

Engine: 3.7 litre (3,696cc) 24-valve V6 Horsepower: 328hp @ 7,000 rpm Torque: 37kg-m @ 5,200 rpm Transmission: Electronically controlled 7-speed automatic with Adaptive Shift Control (ASC) Suspension: 4-wheel Active Steer and sport-tuned suspension Wheels & tyres: 20 x 9-inch, split 5-spoke aluminium-alloy wheels with 245/40R20 W-rated the steering wheel will allow the driver to move into the occupied lane. The LDP is a tool that senses unwanted and potentially dangerous drift between lanes while driving and automatically compensates to ease the car back between the lines.

With a price tag of RO24,000 approximately, M37S has the wherewithal to be a desirable sedan for the discerning few. Infiniti offers two more options -- Excellence and Luxury apart from Sports – in the M37 range.

In addition, the auto major offers M56 which is fitted with 5.6 litre V8 engine for those who are looking for an upgraded version in the same M range.

(Test drive vehicle courtesy: Suhail Bahwan Automobiles, the exclusive dealer of Infiniti vehicles in Oman) January 2011

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Volkswagen unveils new Race Touareg

Volkswagen has presented the new Race Touareg 3, or RT3, to the public with a spectacular world debut show set amongst chariots and gladiators.

Held in the nearly 2000-year-old UNESCO world heritage listed Roman amphitheatre in Trier, the 310-hp four-wheel-drive tasked with securing a third consecutive “Dakar” victory for Volkswagen in South America next year was unveiled in front of a crowd of 1,000 enthusiastic spectators.

Qatari Volkswagen Motorsport driver, Nasser Al-Attiyah, who in the Race Touareg 2 was integral to a Dakar Rally Volkswagen hat-trick finish in January 2010, was on hand with German co-driver, Timo Gottschalk, to reveal the RT3 in “Dakar” trim for the first time.

The unveiling of the car for the 2011 Dakar comes after the recent launch of the new 2011 Volkswagen Touareg in Oman that is exclusively available from Wattayah Motors in the Sultanate.

New Infiniti showroom opens in Qurum

Daimler presents MercedesBenz Viano to OLC Daimler has presented a Mercedes-Benz Viano to Oman Olympic Committee, as part of the Olympic Solidarity programme. The vehicle was handed over by Craig Hardie, CEO Automotive at Zawawi Trading to Dr Jacques Rogge, President of the International Olympic Committee (IOC).

The presentation is the expression of a solid partnership for 19 years between the IOC and Daimler in around 200 countries.

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Trading Company which consistently supports projects which represent the brand values of the company such as respect, passion, integrity and discipline. Since 1996, Daimler has provided more than one hundred MercedesBenz minibuses to National Olympic Committees on all five continents. The 8-seater Mercedes-Benz Viano was used to transport young Omani athletes between the training locations within the country as well as to the games venues.

Infiniti, the fastest growing Japanese luxury automotive brand in the region, celebrated the launch of the first Infiniti exclusive showroom in the Sultanate, in partnership with Suhail Bahwan Automobiles. Two gleaming Infiniti “M” super luxury sedans were unveiled at the new showroom on the occasion. HE Maqbool Ali Sultan, minister of commerce and industry, inaugurated the showroom. Colin Dodge,

executive vice president Europe, Middle East, Africa (EMEA), India and board member of Nissan Motors; Sheikh Suhail Bahwan, chairman, Suhail Bahwan Group; Atsuo Kosaka, managing director, Nissan Middle East; Sheikh Ahmed Suhail Bahwan, chairman, Suhail Bahwan Automobiles, and Antoine Bartes, general manager Infiniti Business Unit, Infiniti Middle East, were present on the occasion.

Mazda service centre opened in Nizwa

Towell Auto Centre (TAC) has opened another Mazda service centre at Karsha in Nizwa. Sheikh Mohammed Abdullah Ali al Busaidi, Deputy Wali of Nizwa, inaugurated the centre in the presence of Riyadh Ali Sultan, general manager, TAC, R. Krishna Kumar, business manager, Nizwa, TAC and senior officials from Towell Auto Centre.

The service centre at Karsha has been built on the same lines as other service centres throughout the country and

the valued customers in the region can relax in the luxurious lounge while their cars are being serviced by Mazda’s specially trained engineers and technicians.

“Mazda has already made its presence felt across Oman by setting up new state of the art service facilities in the recent past and with Karsha, we continue to strengthen our mission of reaching out to all our customers in the areas in and around Nizwa, says Annurag Chawla, Head of marketing and communications, TAC.

All-new Volvo S60

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New Mitsubishi L200 Mitsubishi has announced the arrival of the new 2011 edition of the L200 double cab pickup which is comfortable on the roads of the capital and off road in the Sultanate’s rugged interior.

One of the most significant changes to the new L200 is a bigger cargo bed – both longer and higher - that is also now flat inside rather than curved – improving its efficiency for storage and goods carrying and making the 2011 edition even more cost effective than in the past. The L200 is a fabulous

vehicle for both commercial and everyday use – offering interior comfort and great road handling coupled with the luxury of an even bigger space for storage, carrying goods and packaging or equipment for leisure activities.The new larger cargo bed is big enough to find room for an all terrain vehicle and motorbike side by side, and is over 1.5m in length, 1.47m wide and 46cm in height – giving an excellent cargo area and multi-purpose storage space for the owner.

Mohsin Haider Darwish (MHD) LLC, the dealers of Volvo cars in Oman, has launched the all-new Volvo S60 at its showroom in Azaiba. The event was presided over by Tomas Ernberg, regional managing director, Volvo Cars Middle East, and David Aziz, director automotive, MHD. The all-new Volvo S60 makes its entry into one of the automotive world’s toughest segments backed by an extrovert attitude never before seen in Volvo showrooms. David Aziz, director automotive,

MHD, says, “The Volvo S60 is the most dynamic car model Volvo has ever presented, and it promises great driving pleasure even before one gets behind the wheel.”

“Our most advanced system, Premium Sound, has a class-D digital 5x130W amplifier with circuits from Sweden’s Anaview, Dolby Digital in combination with Dolby Pro Logic II Surround, the award-winning MultEQ from Audyssey Laboratories, and 12 loudspeakers,” says Ernberg.

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ENVIRONMENT

GREEN COMPUTING

Gulf IT’s ‘Compute in the Cloud, Reduce Local Power & Cooling’ is an innovative environmentally friendly initiative to reduce carbon footprint and ensure efficient computing

C

Towards Green Oman

ompute in the Cloud, Reduce Local Power & Cooling’ is an initiative launched by Gulf IT to promote cloud computing among its customers. The campaign focuses on educating the customers about this environmentally friendly computing and its effectiveness in reducing power, cooling and carbon emission.

Virtualised servers The switchover to cloud computing was made possible through utilising the virtual environment of Google instead of using local servers for all solutions.

Gulf IT offers all business application in cloud computing environment using virtualised servers and highly energy efficient data centres of companies such as Google and Zoho.

The cloud computing system has been proved highly effective in conserving energy as moving applications to the cloud can potentially reduce energy costs for running and cooling hardware. From sustainable supply chains to scalable infrastructures, the cloud offers many environmental benefits. Other benefits of

this approach are low barriers to entry, shared infrastructure and costs, low management overhead and immediate access to a broad range of applications.

Beyond the direct energy and carbon footprint benefits that can be attained by migrating existing IT to the cloud, it is also a key enabler of sustainable supply chains. Not only does the cloud address the issue of providing affordable access to traditional supply chain applications, it also enables a whole new class of multienterprise supply chain visibility and collaboration capability.

MB HOLDING COMPANY LLC

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In the Sultanate, the campaign got an enthusiastic response from many quarters. It became very successful with more customers realising the significance of cloud computing and moving to it, making their first step towards Green Oman. They became aware of the fact that running application in virtualised mode and efficient datacenters world wide can reduces carbon emissions significantly.

Muscat Pharmacy, Waljat College and Al Buraimi University have avoided addionation servers and equipments on their office premises thereby saving power and cooling space. Every month, the company could draw new customers to this fold.

In the future, Gulf IT seeks to introduce more and more business applications in cloud computing environment. If more companies are brought to this mould, the initiative is expected to reduce the power consumption of Oman and contribute towards the objectives of Greener Oman. As a company which has cloud computing as its prime business, Gulf IT can ensure that its initiative is carried out everyday.

GOLFUPDATE

ALL SET FOR ACTION

The much anticipated 7th OER CEO Golf, to be held on February 3, will throw up a number of surprises for golfers and non-golfers

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veryone looks forward to a New Year hoping for all the good things that are ahead of us. And when we reminisce about the past year, there are certain things or events which we enjoyed so much that we eagerly look forward to them happening in the new year as well. This is so much true of the OER CEO Golf.

Yes, Oman’s biggest corporate networking event, the OER CEO Golf, now into its 7th edition is back with a bang, promising loads of surprises and fun for everyone.

The 7th edition of OER CEO Golf is scheduled to tee off once again on the verdant settings of the Muscat Hills Golf & Country Club on February 3, 2011.

Asking all you golfers out there to brush the dust off your golf kits might be just another way to remind you to hone your golfing and networking skills because the OER CEO Golf 2011 is going to be the biggest and most memorable corporate event of the year. Call it what you may, a CEO’s day out, an exclusive club, a serious club and ball sport, an evening of gaiety and more – whatever your take on it is, what finds consensus is the power and glory of the OER CEO Golf 2011.

Presented by Nawras Business Solutions, the event promises to be bigger, better and grander this time around.

Surprises galore Exciting elements have been planned for both the golfers and non-golfers. The surprises begin with a new competition format for the golfers and non-golfers, go on to the gifts and extend to the evening’s entertainment as well. The grand finale in the evening is a climax befitting this by-invitation-only event for the who’s who of Oman’s corporate community.

It is, as always, a glittering affair with high profile entertainment, a sumptuous dinner spread, and more!

Hills Golf & Country Club (Venue); and Axa Insurance (insurance). Rolex is the official timekeeper of the event.

OER CEO Golf is a unique opportunity for the leaders of Oman’s corporate community to link up over the game of golf at the country’s finest, and one of the Middle East’s most exciting PGA-standard courses. For those new to the game it is a good chance to get acquainted with the CEO sport as they will be suitably inducted into the game in a congenial and friendly atmosphere.

OER CEO Golf is an annual event organised by Oman Economic Review, the Sultanate’s premier business magazine.

The previous editions of OER CEO Golf have always come up with innovative ideas both to engage the non-golfers as well as form a part of the day’s entertainment.

In the earlier editions, OER CEO Golf had introduced variations of the golf like virtual, moonlight and crazy golf. In 2010, it was water golf where spouses joined their husbands to swing the clubs. The key category sponsors for OER CEO Golf include Times of Oman and Al Shabiba (Publicity); Hi and Al Youm Al Sab’e (Media); Signature (Luxury); Muscat January 2011

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Shell Oman opens two new stations

Coinciding with the 40th National Day celebrations, Shell Oman has opened two new service stations taking the total number of Shell stations in Oman from 140 to 142. The 141st station, located at 18th November Street in North Azaiba, was inaugurated

by HE Engineer Ahmed Bin Hassan al Dheeb, under secretary of commerce & industry at the ministry of commerce & industry.

His Highness Sayyid Shihab Bin Tariq al Said and Adil Bin Ismail Al Raisi, managing director of

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Muscat Private Hospital has announced plans to open seven new departments in the next 12 months to mark its 10th anniversary. The 72-bed premier private hospital will be entering a new era by expanding its in-patient and outpatient facilities to offer a higher level of care. A brand new sports injury clinic is set to open along with expanded heart centre, breast centre, and weight loss services. While expansion plans for its emergency room and surgical

services facilities as well as the opening of a new out patients department building on the hospital campus are likely to happen during 2011. Awad Mohammed Faraj Bamkhalef, chairman, MPH, says, “Our expansion plans remain key to MPH’s long term objective of providing superior quality care to residents of Oman. Along with expansion plans comes a refreshing new marketing campaign “Family first” focusing on providing healthcare for the whole family.

Shell Oman Marketing Company, were present on the occasion.

The 142nd Shell service station at Diba in Musandam region was formally opened by HE Sheikh Mohanna bin Saif bin Salem al Lamki, deputy Wali of Diba.

“As part of our ongoing effort to reach out to our customers across Oman, we have opened these two stations and dedicate them to all our customers on the occasion of the 40th National Day,” says Adil al Raisi.

BankDhofar holds sewing training for women BankDhofar, in association with Omani Women Association, organised a sewing and tailoring workshop in Salalah for 20 underprivileged women. The workshop was aimed at providing them job training and help them explore employment opportunities and become self-sufficient.

Experts trained women to use new sewing machines and taught them sewing techniques, styles and patterns which will enable them to produce and manufacture more sophisticated products and refine

MPH celebrates 10th anniversary

traditional clothing and garments.

“The workshop seeks to make a transformational change in the lives of women, through encouragement, inspirational training, personal and professional development” says Abdul Hakeem Omar Al Ojaili, acting general manager, corporate services, BankDhofar. “Upon completion of the sewing workshop, they shall be well positioned to seek a job or to potentially develop a home-based business using their newly acquired skills,” he adds.

Al Hassan Electricals opens showroom in Buraimi Hassan bin Ali Salman, Chairman, Al Hassan Group, inaugurated the new showroom of Al Hassan Electricals in Buraimi. Managers of various divisions of Al Hassan Electricals and other special invitees were present on the occasion. The new showroom, located in the heart of the Buraimi market, will cater to the needs of the local market and of people in the Wilayat of Buraimi. The

new showroom is an addition to Al Hassan Electricals’ five showrooms in Honda Road, Hamriya, Al Ghoubra, Al Khoudh and Seeb.

“The presence of the Buraimi showroom managed by technically skilled showroom staff and a well stocked warehouse will help faster supplies to customers in the region,” says Hassan Ali Salman.

KTI to offer agency training

Khimji Training Institute (KTI) will offer travel industry related courses in association with Bahrainheadquartered Sabre Travel Network Middle East. KTI will offer its students a wide range of travel industry training programmes that leverage the latest technology, software and training support.

The travel industry training programme will be useful to hone

the skills of the local talent and give them a rewarding career opportunity. Daniel Naoumovitch, chief executive officer of Sabre Travel Network Middle East, says, “As a leading provider of travel technology solutions, Sabre is committed to investing in the development of local talent by partnering with travel industry training schools.”

LG, OTE launch day and night service LG and OTE Group launched the first of its kind day and night customer service for consumers of LG home appliances and air conditioners, in the Sultanate. Customers can benefit from the service from 8 am – 12 midnight. OTE group chairman Sheikh Saad Suhail Bahwan says, “Today is a unique day in the history of LG in Oman. For the first time in Oman, LG and the OTE Group are offering day and night service for consumers of LG home appliances and air conditioners in Muscat.”

“Globally, LG is recognised as among the fastest growing brands in the world. In Oman, we are proud that LG is a ‘Superbrand’. We are truly grateful to the people of Oman for making LG their favourite,” he adds. “LG as a corporate citizen would like to incorporate green components in almost every product that it sells,” says HS Paik, president, LG Electronics Gulf FZE, who oversees the Korean company’s operations in most of the Gulf region, Afghanistan and three Caspian states.

‘Top Business Leaders’ unveiled

Gautier shop opened in Muscat Oman Marketing Co. has recently opened its sprawling new Gautier sales outlet in Ruwi. Marc Deballon, Counselor for Economic Affairs at the French Embassy in the Sultanate, was the chief guest at the opening of the showroom. The expansive new Gautier outlet boasts of some of the widest and the finest ensemble of quality designer furniture catering to a vast array of customers. The Gautier home furniture range covers

the entire spectrum of living spaces including bedrooms, living rooms, junior bedrooms and nursery, dining spaces, storage units and other furniture accessories. A wide selection of design options is available under each category to meet and complement the user’s specific tastes and personal lifestyle preferences. All the products are made in France backed by skilled French designing and workmanship.

‘Top Business Leaders: Special Focus on 40 years of Omani Renaissance’, a 384-page book was unveiled under the auspices of Eng. Sultan bin Hamdoun al Harthy, chairman, Muscat Municipality. The book, dedicated to the Sultanate’s renaissance march, details the success stories of 30 business people who made it to the top of

Oman’s business landscape either as entrepreneurs or CEOs by climbing the corporate ladder.

After unveiling the book, Eng. Sultan bin Hamdoun al Harthy lauded the efforts of Oman Observer’s senior journalist Hasan Kamoonpuri for having put together a good book on an important occasion.

OIB’s monthly draw held at Jabal Akdhar Oman International Bank’s Mandoos Monthly Draw was held at Jabal Al Akhdar, under the auspices of Sinaan Khlafan Ahmed al Mayahi, manager of water and electricity at the district.

The event was also attended by area’s district manager, Sheikhs, branch managers and bank’s employees. In the monthly draw, the bank offered

prizes worth RO27,000, distributed among nine lucky winners – RO3,000 for each winner. Mandoos is one of the biggest and most famous saving programmes in the Sultanate aimed at encouraging the saving among the citizens and residents of Oman. This year Mandoos offers daily, weekly, and quarterly draws.

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SEDUCTIVE AND ELEGANT Angel Schlesser’s new edition Oriental Dream is a new scent that captures the seductive magic of oriental landscapes and the sophistication of oriental cultures. A luxurious fragrance inspired by the richness of ingredients used in the Eastern cultures for many years, it features the genuine spirit of the brand: classic yet modern, subtle and eternally elegant. Oriental Dream is a fragrance full of character and exoticism, that recalls Angel Schlesser’s classic and modern style but with a more refined character. This eau de toilette perfectly expresses the delicacy and luxury of Oriental world.

PRINT FOR ONE CENT Lexmark’s new high-capacity, high-yield 105XL black ink cartridge lets users print at just one dollar cent per page. The 105XL is compatible with Lexmark’s new Platinum Pro905 printer, designed specifically to help small business and home office users print cost effectively. To help users save even more money on their printing, both wireless-enabled all-in-one printers can also print twosided, providing even greater efficiency and further reducing cost per page.

“The $5 cartridge initiative is a great way to help users meet their budgeting needs,” says Paul Rooke, Lexmark executive vice president and president of the company’s Imaging Solutions Division. A recent study by IRI on behalf of Lexmark has revealed that two thirds of Europe’s professionals at home and half of professionals at work print mainly in black. This enables them to save money on every printed page.

EVERYTHING BUT THE KITCHEN SINK How many tools does a man need in a lifetime? One. The new Wenger Swiss Army Knife is the knife that every knife wants to be and so much more, in fact about 86 more. This all utility gadget is one of the marvels of Swiss engineering, not quite the Large Hadron Collider but close enough, as it boasts 87 fully functional tools that can be used in more than a hundred jobs. If boy scouts and super soldiers can survive in the desert with nothing more than a toothbrush, imagine what they could do with this mechanical prodigy. Forget trying to sneak this to the airport though, it’s not exactly pocket-sized; at 9 inches width, this device is far from conspicuous but it does come in a neat stylish gift box.

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WORLD’S FIRST 3D CAMCORDER Recording 3D images is now as easy as attaching the 3D conversion lens that comes with the world’s first consumer 3D camcorder, the HDC-SDT750.

Powerful, true-to-life 3D images like those created by Panasonic 3D recording technologies for use in Hollywood movies can now be easily recorded and viewed at home. Even without the 3D conversion lens attached, there are countless ways to enjoy the SDT750. This innovative camcorder takes an evolutionary leap forward from the many Panasonic models that have excited users worldwide. It is equipped with a wide range of sophisticated functions, including the 3MOS System, which features improved noise reduction (NR) technologies, 1080/50p recording, iA (Intelligent Auto) mode in the new HYBRID O.I.S. (Optical Image Stabilizer), and a wealth of manual controls.

CAPTURING TWO MOMENTS TOGETHER The new Ion Twin Video Camcorder features the world’s first dual-lens video camera that’s capable of capturing both front and rear video and audio footage in high-quality 640 x 480, 30 fps picture resolution. For playback, it displays two separate feeds that you change to the front and rear viewpoints on the Twin Video Cam’s integrated LCD screen. The only downside is that the software does not allow a 50/50 split screen or picture-in-picture viewing but it does show what you’ve captured in realtime. To aid in video recording, it additionally features 3x digital zoom, big and easy to use buttons, a weighted handle for steady recording and a pair of front and rear lights for low light recording.

LISTEN AND READ WITH COLOUR BOOK The new Energy Multimedia Colour Book is one of the perfect medium to take you around the world without having to leave your favourite reading chair. It can play eBooks, videos, music, and photos in a wide array of formats including TXT, HTML, PDF, EPUB, FB2, RTF, MOBI, CHM, DOC, WMA, MP3, JPEG, BMP, PNG, GIF, MP4, WMV, AVI, RMVB, FLV, ASF, 3GP, and MOV. It supports Windows 2000/XP/Vista/7, Linux, MacOS 9.x/X operating systems with OSD language compatibility from German, French, Greek, English, Italian, Portuguese, and Italian. Furthermore, the Energy Multimedia Color Book comes preloaded with 1500 universal literature classics available in Spanish, English, French, and Portuguese. Reading can even be more enjoyable by simultaneously listening to your favourite music. You can adjust font into 5 different types, change zoom levels, adjust text margin, rotate screen, add page-marking and image viewer functions.

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BROWSINGCORNER

I

rreverence, brashness and an ability to apply the science of economics to everyday problems are what made Freakonomics an icon. In SuperFreakonomics Steven D. Levitt and Stephen J. Dubner pick up the threads where they left it in their previous offering. The book tackles a number of complex themes like the perceived threat of global warming, what drives human altruism, the angularity of terrorists and skews in the prostitution business. Levitt and Dubner challenge various assumptions and come up with insights that are backed by empirical and collateral evidence.

BEYOND THE OBVIOUS SUPERFREAKONOMICS TAKES ECONOMICS OUT OF THE REALM OF THEORY AND APPLIES IT TO REAL WORLD PROBLEMS THROWING UP IMPORTANT INSIGHTS. A REVIEW BY MAYANK SINGH

Similarly when Robert McNamara fitted Ford cars with seat belts in an effort to reduce fatalities in the 1950s and 1960s he encountered the same problem faced by Semmelweis a century ago – changing human behaviour.

The authors argue that the cleverest engineer, economist, politician or parent may come up with a cheap, simple solution to a problem, but if it requires people to change their behaviour it may not work as old habits die hard.

For example they question the threat of global warming and advance arguments about how the scourge is controllable by using simple solutions like pumping sulphur dioxide in the atmosphere or by using the reflectivity of oceanic clouds.

These cost effective solution have the potential to ward off the threat of global warming by 2050. If these remedies sound so rationale why are they not being implemented by the comity of nations?

Old habits die hard The answer to the question is a recurring theme in the book – ingrained habits are difficult to change and even when this change takes place it is painstakingly slow. In the 1840s Ignatz Semmelweis a Hungarian born doctor in Vienna’s General Maternity Hospital, proved that the high death rate of mothers and newborns during childbirth was the result of ‘cadaverous particles’ being transmitted by 76

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doctors from dead bodies to the women, giving them puerperal fever. Doctors and students were ordered to disinfect their hands in a chlorinated wash after performing autopsies and this saved the lives of 300 mothers and 250 babies in a year’s time. One would assume that this simple solution would find ready acceptance amongst doctors all across. Strangely, Semmelweis intervention was ridiculed by doctors and he ended up in a mental asylum dying a premature death.

SUPERFREAKONOMICS

By Steven D. Levitt and Stephen J. Dubner Pages: 270 Published by: Penguin Books

Everyday billions of people around the world engage in acts that they know is bad for them – smoking cigarettes, gambling excessively, riding a motorcycle without a helmet because they derive pleasure, thrill or just a break from their daily routine and getting them to change their behaviour even with the most fiercely rational argument may not be easy. SuperFreakonomics throws up a number of such instances where we may be missing the trees for the woods. And at times it may be imperative for researchers and policy makers to look beyond the obvious.

BEYONDBOARDROOMS

Making a difference Climbing to the top always demands strength and perseverance, says Dr Shirish Gupte, CEO and managing director, Integration Capital and Trade, Oman and director, BTME. Excerpts from an interview QUICK FACTS • Books: Lost Symbol, Wings of Fire • Movies: 3 Idiots, Invictus • Music: Jethro Tull, Sudhir Phadke, Hrishikesh Ranade, Jitendra Abhyankar • Sports: Cricket, Football, Tennis • Education: B. Tech. IIT Bombay, MS, PhD University at Buffalo SUNY • Favourite countries: Oman, India, USA • Favourite quote: Climbing to the top demands strength, whether it is to the top of Mount Everest or to the top of your career. Abdul Kalam

Please give a brief background about yourself and your company ICT was established with a vision to provide superior advisory services to its clients doing business both in Oman and the broader Middle East, North Africa & South Asia (MENASA) region by leveraging its principals’ and founders’ local knowledge, relationships, and business expertise. ICT is involved in a variety of advisory assignments, including private equity capital raising, financial & general business advisory, mergers & acquisitions / joint 78

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ventures, cross border business development advisory.

BTME is involved in outdoor management development (OMD) programmes, specialised construction and Niche events. With locations in Jebel Akhdar and a dedicated camp site near Pune, India BTME has been instrumental in training over 200 Omanis through its OMDs and has successfully done children developments programmes for schools in Oman. BTME has done the first FIFA 2 artificial football pitch at Seeb stadium and has also done it for the Manchester United

football school in Abu Dhabi.

How do you manage your time and find a balance between your work commitments and family commitments?

Striking a good balance between work and home has had its challenges and Oman has played a huge part in my being able to achieve it. Work hard but spend quality time with family has been my motto.

Name some of your favourite leisure activities?

My hobbies are reading good books, listening to music and

watching movies with my family, listening my younger daughter’s songs, playing tennis with my elder daughter, going for a long drive with family and watching cricket when India is playing.

What is your passion in life?

Making a difference.

Do you have any famous personalities whom you admire and why?

APJ Abdul Kalam for his conviction, humility and passion for making a difference.

2nd ASIAN BEACH GAMES

Oman on world’s sporting map

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he 2nd Asian Beach Games, Muscat, held from December 8 to 16, 2010 at the purpose built Al-Musannah Sports City concluded on a successful note by achieving the objective of encouraging Asia’s youth to explore and cherish some of the varied cultures found across the continent. The mascots of the

2nd Asian Beach Games – ‘Al-Jebel: Tahr’, ‘Al-Reeh: Houbara’ and ‘Al-Med: Green Turtle’ signifying the land, the water and the skies of Oman respectively – addressed the issue of environmental degradation being experienced around the globe. There was a combination of 14 different beach games including soccer, handball, kabaddi,

volleyball etc. Oman came third in the games with a tally of 15 medals including five golds, while Thailand and China came first and second with 15 and 12 gold medals respectively. Haiyang, a Chinese city, will host the third Asian Beach Games in June 2012. Some snapshots of the games

by Rajesh Burman.