oer_august_2012 by oeronline emagazine

No 145 August 2012

EDITOR’SDESK

EDITORIAL Editor-in-chief HH Sayyid Tarik Bin Shabib Group Editor Mayank Singh Deputy Editor Visvas Paul D Karra Senior Sub Editor Muhammed Nafie

Spreading the festive spirit

DESIGN Senior Art Director Sandesh S. Rangnekar Senior Designer M. Balagopalan Senior Photographer Rajesh Burman Photographer Basim Al Maharbi Cover concept Chanjeet Singh Production Manager Govindaraj Ramesh MARKETING Business Head Jacob George Advertising Manager Arif Abdul Bari Senior Business Support Executive Radha Kumar CORPORATE Chief Executive Sandeep Sehgal Executive Vice President Alpana Roy Distribution United Media Services LLC OER PRESENTATION

he holy month of Ramadan is a time of prayer, fasting and discipline. It is also a time when families spend late evenings visiting malls, supermarkets and showrooms. Retailers record a 25-30 per cent increase in sales, and businesses all around get an impetus. In an effort to make the most of the available opportunity, companies/distributors roll out alluring promotion and offers. While these are good for the customer, constant discounting may prove to be damaging for companies in the long run. OER’s cover article takes a look at the pros and cons of promotions, discounts and sales. The merger of HSBC with Oman International Bank to form HSBC Bank Oman has been in the headlines recently. The merged entity is now the second largest bank in the Sultanate. The bank seems to be off the blocks in a flourish, posting a consolidated net profit of RO7.243mn during the first six months of 2012 – an increase of 5.3 per cent as compared to the same period in 2011. The bank is in the process of implementing a growth plan; refurbishing branches; integrating IT systems; streamlining products; rolling out the new branding and more. Ewan Stirling, CEO, HSBC Bank Oman gives an in-depth view of the merger process, in an exclusive interview to OER. On behalf of OER’s editorial team I would like to wish all our readers Eid Mubarak!

Published by United Press & Publishing LLC PO Box 3305, Ruwi, Postal Code - 112 Muscat, Sultanate of Oman Tel: (968) 24700896, Fax: (968) 24707939 Email: publish@umsoman.com Website: www.umsoman.com All rights reserved. No part of this publication may be reproduced without the written permission of the publisher. The publisher does not accept responsibility for any loss occasioned to any person or organisation acting or refraining as a result of material in this publication. OER accepts no responsibility for advertising content. Copyright © 2012 United Press & Publishing LLC Printed by Oman Printers Correspondence should be sent to: Oman Economic Review United Media Services PO Box 3305, Ruwi 112, Sultanate of Oman Fax: (968)24707939 Email: editor@oeronline.com Website: www.oeronline.com

August 2012

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

PUBLICATION

BAHRAIN-ON THE MOVE ’S 2011-2012 EDITION LAUNCHED

he 2011-2012 edition of ‘Bahrain – A Nation on the Move’, the first bilingual (Arabic and English) publication of its kind, was launched by his Excellency Dr Hassan Abdullah Fakhro, recently. The publication commemorates Bahrain’s progress over the decades. It is a salutation to the remarkable development made by the country since 1971. Its maiden edition published in 2011 was very well received in the market. The second edition of ‘Bahrain – A Nation on the Move’ presents an in-depth analytical perspective on Bahrain’s growth trajectory and remarkable socioeconomic achievements. The exclusive publication captures the efforts made by the country to emerge out of the crisis and recover from the lost economic opportunities as a consequence of the eruption of protests. In the publication, a major impetus is on highlighting the concerted efforts to reduce the dependence on oil & gas sector and encourage

foreign investment in Bahrain. It also showcases the mega infrastructure projects that are taking shape in the ‘Kingdom of the two Seas’. It extensively covers the pillars of the country’s economy – sectors such as oil & gas, petrochemicals, real estate, banking & finance, education, manufacturing, infrastructure, information technology, telecom and tourism – apart from focusing on the long term economic vision.

The release of ‘Bahrain – A Nation on the Move’ comes in at the perfect time as it showcases the resilience of the Kingdom’s economy in withstanding the challenges posed by the unrest and the concerted efforts to recover the lost ground. It will be widely distributed within Bahrain to all ministries, Economic Development Board, Bahrain Chamber of Commerce & Industry, embassies and consulates and private organisations and institutions.

is Oman’s strategic location and potential as a logistics hub from where most global markets are fairly easily reachable. The position of major ports outside the waters of the Inner Gulf, the internal stability of the Sultanate, with a record of good relations with all its neighbours, are also of course very important. In addition, Oman successfully combines the strong traditions of the Middle East with 21st century modernity. The rich historic culture of Oman and the hospitality and tolerance of the Omani people attract visitors and foreign investors alike. This all makes Oman a suitable location for companies from various industries, both as a base for manufacturing plants and as their regional/global logistics and distribution hub.

article, as shared by heads of some major companies located in Sohar, are worrying. The bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in this economy encourage many people to prefer other countries in the GCC to Oman. The labour force plays a pivotal role in the production process. A lack of commitment by job-seekers is a major constraint facing the government in its efforts to nationalise employment in the private sector. The most important challenges for employing Omanis and realising Omanisation ratios set for various private sector activities include the tendency among Omani workers to abandon their jobs.

MAIL

OPPORTUNITIES AND CHALLENGES Your July cover story article (Doing Business in Oman: How Real are the Obstacles) has presented a balanced view of the topic, by analysing both the advantages and challenges for business men in Oman. One of the big advantages

August 2012

But the concerns raised by your

Anand David, Al Khuwair Write to us with your comments/ feedback at: editor@oeronline.com

T H I S

R A M A D A N

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The Purchase offer is valid at any Chrysler, Dodge, Jeep & RAM showroom across the Sultanate.

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INSIDE

40 INFORMATION TECHNOLOGY

USHERING IN A NEW ERA

22 FACE2FACE

HISTORY REPEATING ITSELF

BY INVITATION

TRAINING YOUR DOG — IS IT IMPORTANT?

A significant improvement in Oman’s standing on online citizen and business services indices in 2012 demonstrates the success of government’s National e.Oman strategy which seeks to transform the Sultanate into a secure knowledge-based society

Ewan Stirling, CEO, HSBC Bank Oman speaks about the integration process of HSBC and Oman International Bank

Training imparts physical and mental stimulation to your dog and socialise them with other dogs, people and new environments

44 ICT

HACKING HASSLES Training, education and awareness are the cornerstones of cyber security, says Roger Cressey of Booz Allen Hamilton

26 COVER STORY

Promotions – Myth Versus Reality?

August 2012

T H I S

R A M A D A N

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INSIDE

54 HEALTH

THE NECESSITY OF DEVELOPING PATIENTS SKILLS

52 TOURISM

IN EXPANSION MODE

50 INTERVIEW

TAPPING INTO THE POTENTIAL

Y Rajeev Reddy, Chairman and Managing Director, Country Club India speaks about the company’s performance and future plans

With its re-launch, Diners Club Oman heralds an intention to emerge as a major force within the credit card industry in the Sultanate. Robert Sharpe, chief executive, talks about the company’s strategies to meet the growing market for credit cards in the country

Editorial

Publication

Economy Watch

Business Briefs

In the News

Periscope

Economy

Close Up

Health

Legal

Autotalk

Browsing Corner

Autonews

Billboard

Market Watch

Gizmos

Golf Update

70 CARTOON CORNER

July 2012

By Kannan Murali

There has been a lot of attention given to the new field of medical tourism and the significant benefits and risks it presents to hotels and resorts

71 BEYOND BOARDROOMS

DEEP BONDING Eleven years with Aston Martin, including nine years in diverse roles at its factory in UK, helped Elizabeth Walsham-Gray, Brand Manager, Aston Martin Oman, hone her management and leadership skills

ECONOMYWATCH

Faster, Higher, Stronger London Olympics 2012 – A look at what goes into putting up the greatest spectacle on Earth

THE GAMES

THE VENUES

THE EVENTS

THE MONEY

9.6

£625mn

Number of times the Olympics have come to London (1908, 1948, 2012)

Olympic sports venues

million tickets for sale (8 million for Olympics, 1.6 million for Paralympics)

Amount Londoners will contribute to the Olympic and Paralympic Games

10,500

(approx) Total capacity for all venues

Olympic athletes competing for 205 nations

4,200 Paralympic athletes competing for 165 nations

302 Olympic events over 19 days

503 Paralympic events over 11 days

8,000 Inspirational people carrying the flame across the country in the Olympic Torch Relay, on a 70-day journey through more than 1,000 cities, towns and villages

4 Number of separate flames that will be lit for the Paralympic Torch Relay - in London, Greater Belfast, Edinburgh and Cardiff

August 2012

700,000 80,000 Capacity of the Olympic Stadium, including 25,000 permanent seats

It is the

lightest Olympic Stadium ever built

100

£10bn

support vehicles out on the course during the Cycling Road Races The water temperature in the swimming pool must be 27 degrees celsius, plus or minus one degree

Estimated amount of revenue the Olympics will generate for the British economy

Equestrian

Estimated revenue generated by tourists during the London 2012 Olympics

is the only Olympic sport in which men and women compete against each other on equal terms

£2.1bn

£537mn Cost of Olympic Stadium (revised from £280m)

£214mn Cost of Aquatics Centre (revised from £74m)

£3,500 Cost of specially-designed titanium chairs used by top wheelchair basketball players

BUSINESS BRIEFS

OMANTEL LAUNCHES 4G LTE NETWORK Omantel has announced the commercial launch of the first 4G LTE network in the Sultanate. The launch comes after a series of trials which successfully delivered speeds of up to 100 Mbps. The launch follows the awarding of Omantel’s 4G LTE network contracts to Huawei and Ericsson in May, 2012. “We are proud to announce the launch of first commercial 4G LTE network in the Sultanate centered on providing our customers with unprecedented speeds which will revolutionize the way we use the internet” said Dr Amer Awadh Al Rawas, CEO of Omantel. “This is another historical moment for the telecom sector as a whole as we continue to enrich our customers and offer them the most innovative products and services. Our state-of-the-art network will enable us to provide unmatched mobile broadband speeds.”

PDO LAUNCHES CSR INITIATIVES AT MAQSHAN

QUICKLOOK

Petroleum Development Oman (PDO) has signed two Memorandums of Understanding to fund IT and English language training for at least 20 people and the construction of a camel race track in the Wilayat of Muqshin. The agreements were officially sealed between HE Sheikh Abdullah bin Nasser al Hamar, Wali of Maqshan, and Suleiman al Mantheri, PDO’s external affairs and communications manager, in the Directorate General of State Affairs in Dhofar. Commending the company’s investment in the community, HE al Hamar said, “PDO’s support is hugely appreciated as both schemes will make a real difference to people’s lives in Muqshin. The training will equip locals with vital skills to enable them to find meaningful employment and earn a living and the camel track will become an invaluable leisure and social focal point. Commenting on PDO’s enhanced social contribution, Suleiman al Mantheri said, “We are dedicated to improving the lives of people in need in our concession area and have earmarked resources for community projects which have real social and employment benefits.

MEP Oman 2012 in September A high-profile conference dedicated to the burgeoning mechanical, electrical and plumbing (MEP) industry will be held at the Golden Tulip Hotel on September 17 and 18, 2012. It will run concurrently with the machinery, tools, hardware & equipment exhibition (IMTEX Oman), scheduled to be staged at the adjoining Oman International Exhibitions Centre from September 17 to 19.

August 2012

Paladion’s Threat Intelligence Report Paladion Networks released its latest Threat Intelligence Report with a special focus on the Middle East. The report is based on research by Paladion Labs, the research wing of Paladion Networks, over the year 2011. According to the report, the InfoSecurity threat landscape within enterprises is shifting with changing times and the measures to deal with them are expanding. Paladion has been operating in the region for over eight years and has offices in Oman, UAE, KSA and Qatar.

‘Amadeus Offers’ launched Amadeus Gulf has announced the launch of ‘Amadeus Offers’ in the Gulf Market, specifically in the UAE, Oman and Bahrain. The unique and innovative solution revolutionises and streamlines demand management allowing travel agents to increase productivity and revenues, enhance customer satisfaction and optimise operations management. The solution ensures smarter business intelligence that is beneficial to both customers and the company.

Nawras trains project managers Nawras has successfully awarded 28 family members a certified ‘Project Manager’ qualification. The week-long course was developed by ILX Group and delivered by a team of trainers from Nawras. During the course, Nawras family members learned vital skills including stakeholder management, risk management and quality management to assist them in their career progression and further enrich the customer experience.

BUSINESS BRIEFS

NAWRAS TESTS TURBOCHARGED NETWORK Nawras has completed the first stage of extensive testing ahead of turbocharging its network in Al Amerat. Over 40,000 people living and working in the Wilayat will be the first in the country to enjoy the new, enhanced 3G+ technology in September this year. In preparation for turbocharging the network, Nawras has carefully surveyed and evaluated each individual site in Al Amerat to take into account the differing factors affecting the smooth operation of the base stations. All sites will shortly be offering the enhanced 3G+ service with much faster speeds and wider coverage giving a totally recharged broadband experience. The new technology will also lead to coverage reaching deeper into homes, offices and even large buildings. While customers will enjoy a significantly better 3G+ experience with the network recharge, prices for the service will not be increased. Network speed, capacity and reach will deliver higher quality levels while existing 3G+ tariffs will remain in place.

OMAN AIR QUALIFIES FOR TRUENGINE Oman Air is the latest airline to become part of TRUEngine, qualifying all 33 CFM56-7B engines in its fleet for the programme. The TRUEngine designation serves as a method for identifying engines with CFM-approved content and facilitates product support of the engine system. Moreover, industry stakeholders can use the knowledge of engine content to evaluate engine value and re-marketability. Oman Air, which was formed in 1993 as the designated carrier of the Sultanate, became a CFM customer in 2001, when it became the first airline in the Gulf region to order CFM56-7B-powered Boeing Next-Generation 737 aircraft. “Qualifying our CFM56 fleet in the TRUEngine programme is a natural extension of our maintenance philosophy,” said Wayne Pearce, CEO of Oman Air. “We understand and appreciate the benefits we gain from working with a world-class manufacturer like CFM. By confirming engine content, TRUEngine streamlines the support process and ensures the applicability of CFM’s extensive fleet knowledge.”

MICROSOFT LAUNCHES OFFICE 365

QUICKLOOK

Microsoft Corp. announced the commercial launch of Microsoft Office 365, the company’s next-generation cloud productivity service for businesses of all sizes, in the Middle East and Africa region. Previously available on a trial basis in markets across the Middle East and Africa, Office 365 is now commercially available in 16 countries across the region. The cloud solution will also be available with local pricing in Turkey, Saudi Arabia and South Africa. Leading regional service providers will bring the service to their customers. These leading providers will

Omantel enhances CPN services Omantel announced a new enhancement to its Corporate Private Network (CPN) service allowing corporate customers to include prepaid mobile lines in their Nama CPN list of users. Through this new enhancement, Omantel is making the service even available to prepaid numbers thus allowing more people from the same company to be part of the group and enjoy a free communication for a fixed monthly fee.

August 2012

Air Arabia among best performing airlines Air Arabia has been ranked as the world’s second best performing airline in a study by Aviation Week, the leading global aviation magazine. The Top-Performing Airlines (TPA) Study ranks the top 10 performing airlines worldwide, based on five different performance categories, including financial and operational performance. Air Arabia demonstrated sustained profitability and solid growth margins in 2011.

each integrate Office 365 with its other offerings and market the service to millions of small and midsize business customers worldwide. Office 365 brings together Microsoft Office, Microsoft SharePoint Online, Microsoft Exchange Online and Microsoft Lync Online in an always-up-to-date service, at a predictable monthly cost. The service was introduced in limited beta last year with enthusiastic response, particularly among small and midsize businesses. Over a few months, more than 10,000 organisations, signed up and began testing Office 365..

IndiGo wins SKYTRAX awards IndiGo was voted the best lowcost airline in Central Asia/India, for the third time in a row, at the SKYTRAX World Airline Awards 2012 held at the Farnborough International Air show in London. Marking a double milestone IndiGo also bagged its second prominent award, for best staff service in Central Asia/India. IndiGo was also nominated in the category of best airline in Central Asia /India.

MGM’s social media division Muscat Grand Mall has introduced a dedicated social media division to facilitate its growing number of fans and followers on a majority of the most popular social media websites, namely Facebook, Twitter, Instagram and Foursquare. “This new division will include news on any new shops opening, events, attractive promotions,” said Hassan Jaboub, general manager of Muscat Grand Mall.

SITCO RECEIVES ISO CERTIFICATION Sitco has been accredited with ISO 9001:2008 certification recently. Established in 1983, Sitco has become a pioneer in office automation, large format printing and bureau services in Oman. As a distributor of world known brands, Sitco supports a number of ministries, corporate and crucial infrastructure and development projects in the country. “The idea behind acquiring the ISO certification is to provide better service to the customers in a more systematic way,” says V Jayaprakash, managing director, Sitco. “Our key focus is to make our customers happy with our exceptional service. And our long term commitment as an organisation will be to maintain this quality which has helped us grow during the last 30 years and to satisfy customers through service excellence.”

SEVERIN, SARCO JOIN HANDS

Germany’s Severin has set up shop in Oman under an exclusive partnership arrangement with SARCO. “Oman offers new growth opportunities in home appliance sector and we are very pleased to be working with SARCO as Severin’s exclusive importer-distributor,” said Eric Berchtold, Severin’s area director, Middle East and Africa. Speaking on the sidelines of a launch event held at Shangri-la Barr Al Jissah, Berchtold acknowledged Oman’s importance to Severin’s regional strategy and predicted that the product range will quickly carve a niche for itself. He noted that Oman’s consumer spending is showing a healthy growth on the back of recent pay rises across the public and private sectors. Ajay Ganti, CEO of SARCO, expressed his confidence in the new partnership. “Severin is a strong brand in the small domestic appliance sector. It comes with the German pedigree and an excellent product mix,” he said.

BUSINESS BRIEFS

BANKMUSCAT CLOSES RIGHTS ISSUE The rights issue of BankMuscat which opened for subscription on July 9 to raise RO96.7mn aimed at enhancing Tier 1 capital was closed on July 22. The bank is offering 226.5 million shares at Bzs0.427 per share comprising a nominal value of Bzs100, premium of Bzs325 and issue expense of Bzs2 per share. With the record date being July 2, each existing shareholder is entitled to subscribe to one new share for every eight shares held by him/her. BankMuscat is the subscription bank and Gulf Baader Capital Markets is the issue manager of the rights issue. The proceeds of the issue will be utilised by the bank for financing growth resulting from the credit expansion following general economic growth in Oman; capitalising Islamic banking business and enhancing capital adequacy ratio to enable readiness for adoption of Basel III when introduced. Presently, the bank’s authorised share capital stands at RO250mn, consisting of 2,500,000,000 shares. Of this, 1,812,009,497 shares have been issued and fully paid-up. Following the rights issue, the issued and paid-up capital will be 2,038,510,684 shares with a nominal value of Bzs100 each.

OCTAL COMPLETES EXPANSION OF PET COMPLEX

OCTAL has announced the successful completion of the phase two expansion plans of its state-of-the-art PET Complex in Salalah. Following the ramp-up period, full running is expected by August which fortifies the company’s ability to serve its local and international market commitments. Phase two capacity takes total system output to 920,000 tonnes per annum of PET bottle grade resin. The company’s annual exports reached RO215mn in 2012 and the completion of the second phase of expansion will put OCTAL well on the way to achieving RO511mn in annual sales by year ending March 31, 2013. This will be achieved by increasing capacity and converting new packaging applications to DPET™ sheet including the packaging of dates, yogurt, meat and cheese.

AHEC SIGNS CONTRACT FOR MAJOR PAEW PROJECT

QUICKLOOK

Al Hassan Engineering Company (AHEC) has recently signed a multi-million rial contract with the Public Authority for Electricity and Water (PAEW) for the construction of Phase 1 of the Emergency Water Storage Reservoirs Project in the Muscat Governorate. PAEW is overseeing the development of a network of a number of emergency storage reservoirs located at strategic sites around the capital region. This backup network will be automatically deployed in the event of a supply crisis or a technical breakdown in the Muscat Water Supply Scheme, which currently serves the capital city. Plans for an emergency water reservoir network developed out of PAEW’s contingency planning for the Muscat governorate, following the adverse weather events of June 2007. Furthermore, the emergency storage network is also intended to keep the city well supplied in the event of any disruption in operations at the Ghubrah and Barka desalination plants, which meet much of Muscat’s potable water demand.

Feature-packed Sayyarati campaign BankMuscat has launched an attractive Sayyarati auto loan campaign coinciding with the high Ramadhan auto sales season. The Sayyarati offer includes the lowest monthly payment option, lower interest rates and financing up to eight years for new vehicles. The main features of Sayyarati auto finance include on-the-spot approvals, simple and clear documentation and motor insurance funding.

August 2012

Mazoon Electricity holds training workshop The projects section of Mazoon Electricity Company recently organised a training workshop on health and safety standards in the workplace. The workshop, held at the Al Nahda Resort in Barka in South Al Batinah, highlighted the importance of following the latest regulations and procedures as set by the Authority for Electricity Regulation and Review Board, including how to safely operate supply lines, transformers etc.

Fashion served Hot Splash is all set to woo its customers with an exclusive promotion, ‘Fashion served Hot’. On offer are an exciting collection of branded and Splash designer mugs available in 31 styles of contemporary designs and funky shapes. Designed for its fashion savvy audience, the assortment is made available on a minimum purchase of RO15, across all Splash stores in Oman.

Men’s Summer – 2012 Menswear at Max this summer is all about casual and on-trend styling in colours that reflect true summer spirit. At the forefront of the season is its Holiday Shop Range, which is full of bright graphic tees with surf themes. Also look out for muscle tees, bright solid and striper polos and surfer shorts to complete your holiday essentials this summer season. It’s a season for Stripes! Play with scale and proportion in crew neck and henley style tees in bright combinations.

take pride in your achievements, submit your entry and prepare to be recognised

Take pride in your e-Service initiatives For the first time this year, the Sultan Qaboos Award for Excellence in eGovernment Services is also open to the private sector. If you feel that your company has invested in developing the skills and abilities required to extend quality eServices to its customers, take pride in your achievements, submit your entry and prepare to be recognised. Registration for the award is open for public and private institutions until September 1, 2012. For registration and more information, kindly visit www.ita.gov.om/hmaward

BUSINESS BRIEFS

HSBC BANK OMAN HOLDS BOARD MEETING

SWISS LAUNCHES 24/7 ONLINE SERVICES

SWISS has enhanced the scope of the customer services it provides via the Facebook and Twitter social media platforms. Customers can now use these online channels to contact the airline’s service centre at any time of the day or night with any inquiry on flights, tickets, rebooking etc. SWISS has been utilising the Facebook and Twitter social media platforms for some time now to publish general information on the company, product news and competitions. The airline has now expanded its use of these online communication channels to ensure its roundthe-clock reachability for its customers worldwide. SWISS is the first company in Switzerland to provide a specially-trained service centre team to deal with customers’ inquiries at any time of the day or night.

HSBC Bank Oman held its first board of directors’ meeting under the chairmanship of Simon Cooper, CEO of HSBC Middle East. Board members discussed the latest developments in the integration process, along with other strategic developments to better meet the growing needs of retail, corporate and institutional customers. “The integration process remains firmly on track,” said Cooper. “Customers will soon begin to enjoy the full benefits of banking with a trusted partner that offers a diverse range of customised products and services which will help our customers achieve their financial goals in life.” The board meeting was followed by a private dinner at CEO Ewan Stirling’s residence, where members of the bank’s senior management team had an opportunity to meet with the board and exchange ideas and experiences in addition to forge new relationships.

VOLTAMP MANUFACTURES 125MVA POWER TRANSFORMER Voltamp Power, a fully owned subsidiary of Voltamp Energy, has successfully completed the testing of its first order of four 125 MVA 132/33 kV power transformers. Voltamp has delivered two of them to Oman Electricity Transmission Company (OETC) while the remaining two are awaiting despatch instructions. These power transformers have been manufactured at Voltamp’s world class power transformer factory located at the Sohar industrial area. “The despatch of the 125MVA power transformer, manufactured by Voltamp at Sohar for the first time in the GCC, is indeed a proud moment for Oman and all Omanis,” said HE Mohammed al Mahrouqi, chairman PAEW. “Now our power companies, utilities and contractors, do not have to look abroad for such transformers.”

EXECUTIVE MOVEMENTS Eng Amer Hadidi has been appointed as president/CEO of Royal Jordanian Airlines recently. Hadidi holds a BSc in mechanical engineering from the University of Bridgeport, in US. He occupied several official posts; the latest was advisor at the Royal Hashemite Court and head of the economic and social affairs at the office of His Majesty

King Abdullah II. Between 2007 and 2011, he was minister of trade and industry. Between 2005 and 2007, Hadidi was secretary general at the Ministry of Transport and a board member of the RJ Board of directors in 2006 and 2007. In 2005, he was appointed executive director of the Public Sector Reform Administration. Between 2001 and 2005, Hadidi held

the position of Director Industrial Development at the Ministry of Industry and Trade. In June, the Royal Jordanian board of directors mandated Eng Abdel Rahman El-Khatib to act as interim CEO of the company, after former president/CEO Hussein Dabbas resigned, at the end of May.

INTHENEWS

al izz islamic bank has launched its corporate identity, as an important showcase of its progress ahead of the upcoming IPO

Opening new avenues

l izz islamic bank (under formation) recently unveiled its corporate identity, marking the establishment of an ambitious financial group that will be focused on offering Sharia-compliant financial solutions to Oman’s corporate and retail banking customers. The launch is an important showcase of the bank’s progress and is the first public announcement as it prepares for its initial public offering (IPO). al izz Islamic bank aims to be a leading participant in the emerging Islamic banking industry, offering comprehensive Islamic banking products and services. Unveiling the logo, His Highness Sayyid Taimur bin As’ad Al Said observed, “This is a unique opportunity for us to fulfil the unmet demand for Islamic financial products and services in the Sultanate and to contribute to the development of Oman’s economy. Being one of the first Islamic banks, we hope to set benchmarks in the Islamic banking sector by providing customised, competitively priced and innovative Sharia-compliant products, with the comfort and convenience of modern banking technologies.” Speaking on the occasion, Jamal Darwiche, chief operating oﬃcer

August 2012

(designate), al izz islamic bank said, “Islamic banking will be the fastest growing banking segment in the local market. Once launched, we expect this segment to grow rapidly, and account for around 20 per cent of the overall banking market within five years. al izz Islamic bank believes that the global Islamic banking growth is likely to accelerate further with the opening of new markets. Islamic banking assets with commercial banks in Middle East and North Africa are now in excess of $500bn. In GCC alone, more than one fourth of the banking system is now Sharia-compliant. Oman is set to make history with the imminent launch of Islamic banking in the country and the estimated planned investment in Islamic banking system in Oman could top $1 billion.” The bank is committing itself to building an inclusive financial system, reaching out to the previously unbanked segments including the small and medium enterprises in the country. Further, it will be a catalyst to attracting Sharia-compliant foreign direct investment for priority sectors such as infrastructure, power, transportation and industry thus opening new avenues for commerce and development.

Integral role The name ‘al izz’ implies pride and prosperity. The logo is inspired by an Islamic artistic pattern that captures the traditional values of al izz islamic bank, while the colours of blue and silver sets the bank’s tone of modernity. The silver calligraphy of the al izz islamic bank name in the centre is symbolic of the integral role the bank plays in the lives of individuals. The pattern radiating outward depicts the bank’s influence and commitment to the larger community. Speaking on behalf of the founding shareholders, Mohamed Badawy Al Husseiny, chief executive oﬃcer of Aabar Investments, said, “We are delighted to be a cornerstone investor in al izz Islamic bank. It will be one of our largest investments in the region. It may be recalled that the Central Bank of Oman (CBO) had issued licences to two Islamic banks – Nizwa Bank and al izz islamic bank – which are under formation and likely to start operations as soon as the legal and regulatory framework for Islamic banks is finalised which is expected any time after Ramadan.

PERISCOPE

By Matein Khalid

Time to buy oil & gas shares? Slowing global growth means a protracted bear market in crude oil

audi Arabia’s decision to pump and export the highest crude volume since the Shah of Iran lost his Peacock Throne three decades ago (Saudi production hit 10 MBD in June), coupled with the return of Iraq and Libya to the oil market, led to an increase in the supply of black gold even as its demand curve moved lower due to recession in Europe and a possible hard landing in India and China. It was no surprise that Brent crude was gutted from $126 in early March to below $90 in late June. However, the EU embargo against Iran moves at least one million barrels daily from the international oil markets and has triggered a nationalist backlash in the Majlis, the military high command and the Revolutionary Guards, whose naval units have fired missiles and conducted military exercises in the Gulf of Hormuz. There was a Norwegian oil workers stike. This is the first supply shock in the oil market since the Libyan rebels shut down Colonel Gaddafi’s refineries, pipelines, storage tanks and loading terminals in autumn 2011. As Brent rises above $100, oil shares are natural candidates for accumulation. Who? Why? Where?

The author is a renowned investment banker based in Dubai

August 2012

I still believe slowing global growth means a protracted bear market in crude oil, possibly Brent $75-80. After all, the collapse in the Iran riyal, 25 per cent inflation and social unrest could force the Ayatollahs to compromise with the West on its uranium enrichment programme, removing

the geopolitical risk premium in crude oil. This means it is still safer to buy low beta, high yield, low valuation, integrated supermajors, such as BP, Shell, Chevron and Total. Exxon Mobil’s gas exposure via its takeover of XTO. Energy and its chemicals business, reduce its correlation to crude oil prices. I am less keen on offshore drillers, LNG, cola shares and would avoid alternative energy shares like the plague (aint nothing green about First Solar!). Oil services shares plummeted as Brent plunged $30 since March as the financial markets feared that the fall in oil prices would force exploration/ production companies worldwide to slash capex budgets. This was all the more so since natural gas drilling in the Gulf of Mexico, Texas and Oklahoma is under pressure and oil service companies could well be victims of new downward EPS revisions. However, it is unlikely that the US rig count will drop much

A protracted period of lower oil prices could dampen high cost drilling projects in offshore West Africa, offshore Brazil, the Russian Arctic and the Alberta tar sands

has a lower exposure to the North American natural gas/pressure pumping segment than Halliburton or even Baker Hughes. below 2000 in 2012 and state owned oil and gas colossi, from the GCC national champions (ADNOC, Qatar gas, Kuwait Petroleum, Saudi Aramco) to the emerging oil and gas operators in Libya/Iraq, China’s CNOOC and PetroChina, Brazil’s Petrobras and Russia’s Rosneft, Lukoil and Gazprom will actually increase their capex, as their sovereign status makes them immune to short term seizures in oil prices or credit markets. However, as the global economy slows, a protracted period of lower oil prices could dampen high cost drilling projects in offshore West Africa, offshore Brazil, the Russian Arctic and the Alberta tar sands. This would be negative for oil services companies. Schlumberger is the world’s leading oil services firm and increased its footprint in deepwater after its acquisition of Smith International. It is the most global among the major US oil services firm. However, Schlumberger

Schlumberger is also the Texas (French?) oil service firm most leveraged to the capex budgets of the world’s leading state owned companies in the BRICS/major emerging markets. EPS could well be in the $4 range and I doubt if Schlumberger’s valuation multiples will fall below 15 unless oil prices crash again. This means the world’s leading oil & gas services firm, whose shares peaked at 95 in this crude cycle, has a value at 60-62.

Chinese slow down Lower electricity and fuel demand is telltale evidence of a Chinese economic growth slowdown. The fall in Brent and the slowdown in China energy demand/GDP growth in a year of political transition (the Year of the Dragon, no less!) mean the shares the CNOOC, China’s leading offshore oil and gas exploration and production companies lost a third of their value in its New York ADR (symbol CEO) and

its Hong Kong shares (883 HK). It now makes sense to nibble at CNOOC shares in New York and Hong Kong, since this Middle Kingdom Red Chip is among the world’s most lean, mean operating machines in Big Oil. This is a tribute to its low cost operating base in coastal and offshore China, the home base for almost 80 per cent of its offshore oil and gas platform. CNOOC reserves are now valued in the Brent $72-82 range and its dividend yield is a respectable 3 per cent, making the shares compelling at eight times earnings (the five year average multiple is 12X). CNOOC also trades at a mere four times its cash flow, can increase production by 8-10 per cent and minimal exposure to natural gas (one fifth of reserves and production). However, rather than buy the shares of CNOOC’s New York ADR at $200, I would prefer to sell put options at the $180 strike whenever volatility in global markets spikes higher. Conoco Philips, is in the midst of a strategic restructuring. Conoco has sold its downstream assets and transformed itself into a pure play oil and gas E&P firm, though I concede production growth is a mediocre 3-4 per cent. However, asset sales, oil royalty trusts, share buybacks, rise in EPS growth will mean that the shares of this undervalued Big Oil could rise on the NYSE, possibly to as high as $78 in twelve months. The ultimate dividend yield oil share! France’s Total, with 6 per cent.

FACE2FACE

Ewan Stirling, CEO, HSBC Bank Oman speaks about the integration process of HSBC and Oman International Bank in a candid interview with Mayank Singh

History repeating itself 22

August 2012

Now that the HSBC-Oman International Bank (OIB) merger has been formalised, what are the top three priorities for you as the CEO of the new bank? Itâ&#x20AC;&#x2122;s really hard to list a set of priorities; but always you have to be led by your responsibilities and our top responsibility is towards our staff and our customers. Without a doubt, happy staff means happy customers, happy customers means good business and this is good for the country. We are very focused on what we should be providing to our staff and customers in terms of everything â&#x20AC;&#x201C; the terms and conditions, business opportunities and other propositions. It is very important for us that our primary stakeholders who are our customers and staff really enjoy the benefits of this merger as soon as they possibly can. Leading from that is the second part which is the integration process. We have set up a very challenging timeline to complete the integration, as you know the merger was completed on May 31, 2012, when we had the OGM appointing the current Board of HSBC Bank Oman and we intend to complete the technical integration, to have one operating platform, common systems across the whole bank and the branch network by December 2012. We hope that by December, customers should be able to see the HSBC Bank Oman branding across all the branches in the Sultanate, and wherever you see this branding you will get the whole

proposition on a combined platform. The third priority is business growth and that is not selfish as we have a duty to our shareholders. We should not forget that while HSBC owns the majority of the shares at 51 per cent, we have a duty towards 49 per cent of our local Omani stakeholders. We also have a responsibility to the Omani banking sector, as we are the second largest bank and it is vital that we contribute to the growth of the banking sector. We are in a unique position with HSBC Bank Oman and we are delighted to be in this banking sector as a local bank now. We are here to provide an alternative to the other banks in the market and also to cooperate with them on larger deals that no bank would like to take on exclusively. While we are a true local bank, unlike any other local bank, we can also provide a window to the world for Oman. We can bring the best of financial services from wherever we operate into Oman and ensure that we are an ambassador for Oman wherever HSBC operates. We see ourselves as not only focusing on business growth here for our shareholders but also on business growth for Oman as we are going to promote international trade into Oman from all the 85 countries where HSBC operates. We feel that we will be playing a serious role in connecting Oman internationally. What are the potential synergies of the merged entity in terms of larger capital base and networth. Will HSBC Bank Oman participate in large project financing deals and can we look forward to cross border deals under HSBC Group umbrella? When you look at a larger capital base, it gives us the ability to help more companies in Oman, which we will leverage, but frankly that is not the prime motivator for HSBC Bank Oman. We have a tremendous distribution network that allows us to garner local funding and which puts us on a level playing field with BankMuscat and NBO. There is much more than that, HSBC has been in Oman since 1947 and

we have been integral to the banking community. But frankly HSBC had a six-branch network and it was not able to bring the benefits that we have internationally into Oman completely. Then we look at OIB and what a legacy they have had. If you put HSBC’s international experience along with OIB’s legacy and proven track record, that has to be a winning combination for all stakeholders, customers, staff and the community. How would HSBC use the current network of OIB branches? Are there any plans to rationalise the branch network? On the integration side, we are on a tight schedule as we want to be on one platform and one offer by December 2012. Customers should be able to walk into any of our branches by December and enjoy the full proposition in terms of customer service and product offerings which are seamlessly linked across our entire branch network. During that period, we will also have a fairly comprehensive refurbishment plan. That’s not to say that all the branches will be refurbished, as a number of OIB branches are already in a fantastic shape right now under their own refurbishment programme, but we will look at those branches which have not been on the top of that list. We have already given some branches a new coat of paint, in preparation for the full refurbishment. There is a quite comprehensive branch network strategy being developed. Will the existing products of OIB

If you put HSBC’s international experience along with OIB’s legacy and proven track record, that has to be a winning combination for all stakeholders, customers, staff and the community

and HSBC be retained or rebranded and how will the process work till December 2012? Frankly, customers need not do anything as of now. Former OIB customers can continue to enjoy all the services that they used to enjoy at OIB before the integration and the same goes for HSBC customers. For people having an account in both the banks, they can continue operating both their accounts. Once the integration is complete, then customers will be given a choice of either continuing with both the accounts or merge both the accounts, with the same signing authority. I would like to request all our customers both at OIB and HSBC to come to us and update their details, so that we can get in touch with them and advise them properly about all the things that are going on and explain to them the various benefits that we offer. We want to offer the best products for the local market and the best of international products and services, so we are looking at our portfolio very closely. The question that I get asked most often nowadays is – what will happen to Mandoos, as it remains a favourite. We are not likely to discontinue something that our customers like and want, so probably you will see Mandoos being continued in an enhanced form. We will look at all our products and see that we are offering the best value to our clients. There will be some rationalisation as we are not going to offer two versions of the same loan – as OIB and HSBC did, it will be the HSBC Bank Oman loan proposition only and that will be the best of both worlds. HSBC has a strong Islamic Finance service under the Amanah brand. Are there plans of introducing Islamic product and services in Oman under the Amanah Brand? As you know we are very quick to react, but we are also very respectful of local regulations. We would prefer to wait and see what the local regulations that the Central Bank of Oman and other regulators advise us on so that we can react appropriately.

FACE2FACE

The bank will be incurring higher expenses towards up-gradation of systems and process, infrastructure etc. What impact will this have on your cost to income ratios? As a listed entity, I am not allowed to comment on any forward looking statements, but as you mentioned there will be a cost for the integration process and that is one of the reasons why we want to achieve that as fast as possible and then drive our business forward. We have a very robust plan approved by our board and which will show a very robust performance in the years to come.

HSBC operates on strict global practices in terms of risk and lending. Will the application of such stringent standards impede growth in the local market? It is not going to restrict growth and it is not going to restrict anything that our customers want, but I do not want to mislead you. If you look at HSBC, we have grown very effectively, and our lending policies have not restricted our growth in anyway. Definitely there are differences amongst all the banks and I would like to draw your attention to trade finance. We are a trade finance bank, it is our bread and butter and that’s where we have grown in Asia and the Middle East. If you look at our trade finance share in Oman before the merger, it was significantly higher than our overall market share. You will not see HSBC massively changing its policies and procedures, but what you will see are policies and procedures that safeguard the bank, safeguard the banking sector and allow us to grow and best serve our customer needs.

August 2012

Can one expect HSBC Bank Oman to be more aggressive on the investment banking side after the merger? Given our status and size as a local bank, you will see a lot of more activities as we will be looking at participating in all the infrastructure projects and big ticket items both in terms of funding and in terms of advisory work. The way in which we deliver will not change markedly as we have world leading teams, who have garnered a succession of awards in corporate advisory, equity analysis and security services and we will continue calling on their services. We will have a much larger team on the ground to deal with what we hope will be a much larger business. Whenever two established entities merge, there is a risk of the culture of the two organisations clashing. Is this a concern area? I would like to make two points regarding this: I don’t think that there is much of a cultural difference. I have seen and heard from many of our staff from OIB that they were

former employees of British Bank of the Middle East. If you look at OIB and your readers would recognise this, it is a conservative, traditional bank with very high standards of excellence, and it is exactly the same with HSBC. There is no culture clash also because these are two entities that know each other very well. For example, OIB purchased 12 of our branches and a number of those staff are still with us. One of OIB’s former general managers HE Yahya Al Jabri was HSBC’s branch manager in Nizwa and he rose to be the general manager of OIB and we both know him as the regulator running the Capital Market Authority before he became the chairman of the Special Economic Zone Authority at Duqm (SEZAD). This merger is not new but history repeating itself. The second point is that how different can cultures be anyway in banking. It is an incredibly responsible industry where we are looking after the future of our customers. In terms of retail, we are allowing them to invest for their families or look after their savings. On the corporate banking side, we are allowing companies to grow and that is a national service. So the culture won’t be dissimilar. HSBC has very strong values that are well recognised. Our leading value is courageous integrity and that’s knowing when to do the right thing and having no fear in doing the right thing. I believe that this is a universal value and I have seen that my new colleagues share the same. We break this value into three things – being very open, so we have an open management style, and we allow people to speak up and we expect them to do so, without fear. Secondly, we believe ourselves to be connected – not just being connected internationally, but being connected with our customers, regulators and staff, and finally we are dependable. For HSBC and OIB, we are going to do something we tend to do. We are focused on things that we have said we will be doing and a culture clash is not something that I will be losing my sleep over.

COVERSTORY

PROMOTIONS – MYTH VERSUS REALITY 26

August 2012

The month of Ramadan sees companies competing with each other to roll out attractive promotions. Mayank Singh looks into the rationale and reasons of such offers and their impact on brand image and product profile Free insurance, free service, free registration, free extended warranty, buy back facility, AAA service, complementary I-Pad 3 or a Samsung Galaxy S III, scratch and win cards, instant gifts, free credit card, sale, offers, bundled packages! Phew Walk into a mall, open a newspaper or browse through a magazine during the month of Ramadan and the first thing that meets the eye are danglers, posters and advertisements regarding promotions, offers, gifts and prizes that are up for grabs. A regular shopping outing to a hypermarket or supermarket promises a life changing opportunity with a chance to win multiple four wheel drives, sedan cars, refrigerators, washing machines, microwaves, phones, cameras et al. Buying a car could not get better as almost every distributor throws in numerous freebies like registration, insurance, service warranty topping it up with gifts. Furniture, clothes, refrigerators, TVs, cameras, household utensils are all up for grabs at sale prices. If you have not made it to the neighbouring mall or automobile outlet as yet, probably you never will, because it does not get bigger or better than this.

specific to the GCC region and one finds parallels in other countries, like Christmas sales in the US and Europe, Diwali discounts in India and the Chinese New Year shopping season in China and Hong Kong. While Ramadan promotions mirror the traits of other promotions, it’s unique mix of religiosity, bonding, spending and gifting gives it a distinct flavour. Says Pankaj Joshi, marketing manager, Al Jenaibi International Automobiles, “As it is important for a brand to be ingrained in the local culture and keeping with the Ramadan tradition of giving, we want to offer our customers a grand value offer.” Adds Ananth A V,

regional director – Oman, Lulu, “Ramadan is a time when friends and families bond together, reflecting their shared relationships and brotherhood. As an extension of that logic, it is only natural that household spends witness a change.” The various rituals surrounding the holy month like suhoor, fasting and iftars give a fillip to the sale of certain categories like food, beverages and utensils. High on the shopping lists are powdered beverages, concentrated juices, energy and sports drinks, rice, water, long-life milk, yogurt, laban, cooking oil and ghee. The increase in

In a market where even banks have swapped the mandatory interest schemes with prize money offerings, the lure, pull and draw of promotions as a marketing tool can hardly be overstated. Ramadan offers are the big daddy of all other sales and promotions. It’s a time when companies slug it out to mount the biggest and best offers.

A time for giving Promotions and offers are not

Abdel Karim Awwad National Sales and Marketing Manager, Audi Oman

COVERSTORY

encompasses high value items like car, furniture and even houses. There is broad unanimity that there is a major spike in sales during the month of Ramadan across product categories. Says Rajesh Raman, vice-president – Oman, Menacom Group, “A number of companies report up to 30 per cent of their annual sales in and around the month of Ramadan.”

George Alexander, General Manager, Retail, Engineering and Distribution, Omasco

these categories range between five to 20 per cent. Concentrated juices like Vimto, Roof Afza etc see their sales skyrocket by three to five times, as they become an indispensable part of various meals. George Alexander, general manager, retail, engineering and distribution, Omasco says, “As during a festive season people tend to be light hearted and spend more, a lot of small utensils are purchased and these are used for iftars and storing food.” Festivities surrounding Eid gives an impetus to shopping for clothes and gifts. Says Vivek C Pande, CEO, life style group, Khimji Ramdas, “During the last ten days of Ramadan, a lot of gifts are bought as people want to exchange these with their friends and relatives.”

Says Joshi, “During these two months our sales increase by 10-12 per cent.” Marketers use Ramadan offers as a strategic tool to attract customers, giving an additional boost to sales during this month. Ambuj Khare, senior general manager, Genetco, corroborates, “We try and find out what customers need and try to

Ramadan Promotions Facilitating factors y Higher consumption of food and beverages y Use of utensils for rituals y Principal support to distributors y Gifting y Low interest rates

Companies have been quick to realise that customers are in a mood to loosen their purse strings during the festive season and want to make the most of the available opportunity.

y Bonuses and early salaries

Says Mohammad al Farei, managing director, Zeenah Group, “Over the years businesses have seen spends go up during the month of Ramadan and they want to capture on this trend as much as possible through promotions and offers.”

y Sampling occasion

An increase in sales is not limited to necessities like food and gifts, but also

August 2012

Advantages y Customers get better prices y Brand building opportunity y Chance to win gifts and prizes

Disadvantages y Constant discounting affects bottomline y Brand’s lose sheen y Liquidation of inventory causes long term damage

incentivise those purchases. During the last two years we have witnessed a 2025 per cent growth, primarily because of the all round festivity.” Based on historical precedence, customers are aware that various distributors and brands will roll out alluring offers during the month. This makes them delay their shopping plans (for non essential items), till Ramadan so that they can make the most of the revised pricing. For example, a number of customers buy their cars during Ramadan and so after a couple of years when they want to upgrade or change their cars they usually do it again during Ramadan. Says Abdel Karim Awwad, national sales and marketing manager, Audi Oman, “Our objective is not to lure customers into spending money, they will do that either way in this season. It is done so that they spend money on our product rather than the competition. And it would be a silly business proposition for us not to do so as it is a competitive market after all.” The other push factor aiding sales during Ramadan are government bonuses (given to select departments) and the fact that a number of companies advance the dates on which they give salaries, so that employees can enjoy the festive season with their families. Banks and insurance companies too throw in generous offers like low interest rates helping customers. In certain cases interest rates on car loans fall to as low as 1.52.0 per cent. Another big draw of Ramadan promotions is the fact that they are more broad based compared to other offers. Says Joshi, “While we may have tactical promotions on certain key models at various times of the year, during Ramadan we offer across the board promotions on all our models. We call it a season of offers as it goes on for almost two months. This year it is running from mid July to September.” Khare of Genetco adds, “Some people may be in a position to get an off season discount individually, but everyone is not in a position

COVERSTORY

Ananth A V Regional Director – Oman, Lulu to avail of such discounts. During Ramadan we offer an incentive on our products to all our customers.” The universality of Ramadan promotions thus becomes a big motivator for people to go out and shop.

SKU (stock keeping unit) or product may be lower, but this gets compensated by the higher throughput. Says Alexander, “Profitability would get affected if sales were slow but the increase in volumes makes sure that despite lower margins on individual products, it turns out to be a good deal on the whole.” Adds Abdel Karim, “ People have no need to make large purchases throughout the year. But in seasons like this people are more likely to make large purchases of items that they will not normally buy at other times of the year. From a sales perspective, we can take advantage of this shopping spike and offer better deals. This is because we can sell a large number of our stock

and make profit in volume rather than individual sales.” The challenge for marketing heads is to forecast correctly the larger inventory that they would require during the festive season. A larger order than actual sales would leave them with surplus inventory, conversely, if they run out of stocks, it would turn out to be a lost opportunity. Based on historical factors, marketers usually predict the volumes that they would require and hope that the scales do not tilt on either side. Most companies have perfected this through a trial and error process. The other enabler is the support that companies receive from their principals. Most large companies (MNCs and regional players) set aside a certain amount of their annual budgets for promotions and seasonal offers. Based on the market dynamics and distributor feedback, they extend this budget as financial support to their partners. Says Ahuja, “A certain

Strangely, the lure of promotions cuts across income segments, appealing to the aﬄuent as much as to others. For example, a number of BMW and Audi customers start enquiring about the seasons promotion on models a month in advance. Says Raman, “Value for money holds true at every price point, people who can afford the better things in life are as conscious about money as others.” Says Rajiv Ahuja, headcorporate communications, Khimji Ramdas, “It is in human nature to be pleased with gifts and something extra.” According to the Ministry of Commerce and Industry guidelines, companies can only launch three promotions of two months each in a year.

Enabling factors The question arises as to what enables companies to offer such discounts during the month of Ramadan and why can’t such offers be replicated through the year. The biggest reason offered is that the large surge in volumes and numbers help companies to offer lower prices. So though their margins per

August 2012

Pankaj Joshi Marketing Manager, Al Jenaibi International Automobiles

COVERSTORY

amount of the turnover of the principal and distributors is reserved for sale promotions and the budget for any discount, freebies, limited time offer comes from this.” Based on historical indicators, a call is taken on the best time and way to utilise this budget and in the case of the Middle East market, Ramadan and Eid prove to be a natural choice for such promotions. Says Alexander, “The principal’s support comes in different ways, they may give you branding support or pre package a gift along with another item or they may split the cost of the promotion equally with the distributor.”As a norm support from the principals is offered in the following ways. First, they may give higher budgets to the dealer/ distributor, which can be utilised for promotions, brand building, prizes, freebies etc. Second, the cost of certain promotions may be shared equally between the principal and the distributor. Third, there are times when the principal may bundle a particular product as a freebie or gift with another product. For example, a blender may be bundled with a microwave oven or a vacuum cleaner may be given along with a TV. To cite a few examples, during this Ramadan, P&G is offering a limited time offer on its products like Ariel and Pampers by bundling together more than one pack, for the same or a lower price. While a principal offers support they also use a check and balance mechanism to ensure that these promotions do not go overboard or affect the larger regional market. As a rule all promotional schemes have to be approved by the principal before their launch. A number of companies strive to maintain price parity between different markets in the region and too much discounting in one market can damage a brand’s reputation in other countries. “Our margins are fixed as brands like Rolex maintain the same price across the region,” says Pande.

Clout of the retailer The pressure from the big hypermarkets like Lulu and Carrefour

August 2012

is cited as a crucial factor for the growing number of promotions that one witnesses these days. As shopping patterns change and more people gravitate towards hypermarkets and large format stores, retail chains are in a position to dictate terms to companies akin to a Walmart in the US. The market can be divided into tier 1 retailers like Lulu and Carrefour; tier 2 retail outlets like Al Safeer, Mars Hypermarket, Vivek C Pande CEO, Life Style Group, Khimji Ramdas K M Trading etc; specialised shops and power retailers like E-Max, Sharaf, DG and he is willing to pay, he tends to get the Ruwi high street. Tier 1 retailers swayed by what he sees. Adds Raman, command an overwhelming share of “Brand loyalty in various categories the market. In the audio visual segment is low and products are increasingly tier 1 retailers account for about 50 interchangeable, so if a customer finds per cent of total sales, the rest being a good deal on a particular product, he shared by the remaining outlets. Given tends to flip his choices.” Faced with the predominance of the large retail this predicament, most marketers are chains, they are in a position to dictate only too eager to follow the diktat of terms to distributors. “Hypermarkets tier 1 retailers. would like footfalls to happen and as a result they are putting the onus on Most hypermarkets though tend to distributors to give them better pricing refute such claims. Says Ananth of almost through the year, whether it Lulu, “Any company or brand aspiring is a Ramadan promotion or back to towards growth and sales turnover is school offers and it is all becoming a indeed focused on achieving greater gimmick,” says Alexander. visibility and recall. A hypermarket chain like Lulu offers numerous A marketing executive explains the opportunities and options for modus operandi used by large format companies to do so. Companies take stores – as they know that a discount advantage of such opportunities, which or a promotion draws customers, so fetches them the visibility and reach, even if there is a two per cent off on an they need, within their respective item, they will allocate it prime shelf target segments.” space. This works as a magnet drawing footfalls for the entire hypermarket. Renting of shelf space is one of the Most marketers realise that if one prime revenue generators of retail brand or product is placed below the chains worldwide and something golden zone area (waist to shoulder that is bound to be followed by them height), the probability of it being locally. Says Pande, “The main income picked up gets reduced. Everyone of supermarkets and hypermarkets realises that addressability is big issue comes from selling shelf space, so and once a customer sees a product from their point of view they are that is within the price range that completely justified in selling space to

The OfďŹ ce

in Future

Ramadan Kareem

JUMAN SONS TRADING CO. LLC. P.O. Box: 3484, Postal Code 112 Ruwi, Muscat, Sultanate of Oman Tel:+968 241 20784 Fax:+968 241 20791 ismail@abuhanigroup.com, rochelle@abuhanigroup.com

COVERSTORY

companies and brands based on their preferences.”

A shopping carnival like this is not a mere opportunity to push through more sales but also a chance to achieve other strategic goals. Says Mohammad of Zeenah, “Promotions can also be seen as a tactical brand building opportunity. Such chances help in aiding recall, getting higher sales from existing customers and helping in the acquisition of new customers.” Thus there are a host of brand related benefits that one can derive from large scale and tempting promotions.

is a long term strategy. We are not only selling cars, but the idea is to increase our market share and presence and that itself is a marketing strategy. The best way to see the success of a car is to see it on the road and to let customers experience our service.” The distributor’s aim is to let people have an Audi experience and to come and look at the car’s heritage.

Audi-Oman is looking at doing something similar with its RO2,000 worth of incentive offer (One year free insurance, a 13” MacBook Pro, a dinner for four at Shangri-La’s Barr Al Jissah Resort, a chance to win an Audi A1, 185hp 5 year/105,000 km service, 24hour roadside assistance and a three year unlimited mileage warranty) on its high-end cars like the Audi A6, Audi A7 or Audi A8 L. Says Abdel Karim, “It

If it is an excuse to build brands for some, for others it is a good occasion to let people sample new products. As people shop around till late hours with their families, a number of food and beverage companies put up kiosks in hypermarkets

Taking a long term view

Rajesh Raman Vice-President - Oman, Menacom Group and supermarkets inviting people to sample their new offerings. Products which are received well, get introduced in quick succession to encash on the positive word of mouth publicity.

The negative fallout On the flip side, constant discounts and promotions can end up hurting companies and brands irrevocably and for some the tipping point may be approaching fast. “Everyone gets impacted and the brand value of products get eroded due to constant discounting. As long as sales are going up, these can be managed, but in a downturn it will have a massive effect. People think that their short term gains will wipe away their long term sins but in the long run people will lose out,” says Alexander.

Ambuj Khare Senior General Manager, Genetco

August 2012

According to market estimates, in the audio visual segment there has been a 20 per cent reduction in margins over the last few years. Says Ambuj, “Our margins have gone down drastically, in the AV segment the market is in

COVERSTORY

the hands of two or three companies who are the opinion makers, while we are the followers.” The constant price reductions have forced Japanese brands like Panasonic, Sharp and Sony to take some drastic measures. Some of these brands have announced that there will be no future price revisions on its 32 to 55 inch flat panel LCD TVs for now. Others are quick to point out that the AV segment may be an exception to the norm when it comes to discounting, due to its high obsolescence rate. As product life cycles get shorter, there is a tendency to sell quickly forcing companies to use a discounting strategy. The fact that there are managers chasing quarterly, semi yearly and annual targets makes a bad situation worse. There is a feeling that since the principals operate through an authorised distributor in the GCC market, there is more discounting and price undercutting. As the profit of a distributor is based on sales, he is constantly on the lookout for marketing opportunities, giving little thought

Mohammad Al Farei Managing Director, Zeenah Group

August 2012

to brand building. There are others who contest this line of reasoning. “There is an international and a local brand and the success of a product depends on the success of both these elements coming together. The local distributor is an extended arm of the principal and a majority of the local customers go by the reputation of the distributor,” says Khare. “The brand equity of a local distributor is an important consideration while making a high value purchase,” adds Raman. A few brands use the Rajiv Ahuja festive season as a Head-Corporate Communications, Khimji Ramdas chance to liquidate excess inventory, by offering garage sale prices. This can have disastrous the product at higher prices. It also consequences for a brand, as the cheapens the brand in customer minds. distributor can never go back to selling Ramadan promotions also leads to a drop in sales in the months that follow as the purchasing power of consumers goes down. Aware of such dangers, most marketers are conscious about offering a value proposition. Says Ananth, “Our customers are more value-driven rather than discount driven and that being the case, it is important for us to keep our value proposition intact. We have a system in place that not only constantly evaluates products and their prices, but also ensures that it lives up to our core concept of value. We are sure that these promotions are more beneficial to our customers as well as our suppliers and need to be viewed as a win-win situation for all.” Going by the penchant of people for promotions, one can safely assume that promotions, discounts and offers are here to stay. So let’s drop that raﬄe in the drop box and hope to get lucky.

ECONOMY

By Oliver Cornock

Competition boosts internet access The rising level of competition among telcos has changed the dynamics of Oman’s telecoms market for good

ith the number of market players now increasing, Oman’s telecommunications sector is starting to enjoy the benefits of competition. This is not only expanding internet provision, but also enabling the entry of new broadband technologies into the sector. Indeed, it is becoming clear that Oman’s connectivity market has rich potential. Furthermore, ICT development and the spread of highspeed internet are now seen as a key part of the Sultanate’s drive to become a knowledge-based economy. Traditionally, the country’s mountainous topography was held to be the most obvious challenge to telecoms companies, particularly in providing connectivity to the more remote areas of the Sultanate. This is certainly part of the reason why, in 2003, 167,500 Omanis had internet access, whereas 1,105,000 UAE citizens were online. Yet there was another factor behind the limited internet coverage – one that is now giving way to make for a thriving telecommunications sector.

The author is Regional Editor, Oxford Business Group

August 2012

In short, and as might be expected in a relatively young sector, the market suffered from a lack of competition, with just one fixed-line internet service provider until 2005, when private operator Nawras was launched. The monopoly of state-owned OmanTel in the landline telephone and internet access markets up until that point meant that the sector lacked the benefits of competition – specifically

higher service standards and lower priced tariffs. The launch of the National Broadband Strategy in 2010 not only reaﬃrmed the Sultanate’s commitment to delivering high-speed internet connectivity – a key objective of Oman’s Vision 2020 programme – but was also a clear message from the Telecommunications Regulatory Authority (TRA) that enhancing internet penetration is not an option for Oman, but a necessity. The benefits of broadband were summed up by the World Bank’s recent finding that a penetration increase of 10 per cent among a national population can positively impact GDP by as much as 1.5 per cent.

New Expansion More positively, two important developments have meant that the telecoms market is entering a new period of expansion. The first is a significant change in market structure. Last year, mobile network operator Sama Telecommunications was granted Oman’s third telecoms licence in a decree issued by Sultan Qaboos bin Said. Inevitably this had an impact on both Omantel and Nawras, but it has been good news for consumers. With the dynamics of Oman’s telecoms market changed for good, strong competition among these providers has certainly been a factor behind rapidly expanding broadband coverage; between 1Q 2011 and 1Q 2012, fixed broadband subscription increased by over 33,000 users to 88,164. The penetration rate per household

also increased from 9.92 per cent to 21.92 per cent over the same period, according to the TRA. A second factor behind a healthier market has been the advent of wireless and mobile broadband, which has completely transformed the scope of telecommunications and widened the platform for internet use. This is an important factor for a country where, despite government programmes to encourage computer literacy, and to promote the use of computers, such as the Digital Oman Strategy (e.Oman), access to computers remains limited. According to the TRA, while demand for broadband grew by 31.5 per cent to reach 2.104 million users in the first nine months of 2011, 1.654 million subscribers – or 78.6 per cent – accessed the internet through mobile networks. Indeed, a recent report by Business Monitor International predicted that subscriber growth will in the main be driven by the mobile broadband segment in the foreseeable future. However, all modes of internet use are set to benefit from a further positive consequence of Oman’s growing subscriber base and rising competition: the more rapid takeup and implementation of the latest broadband technologies – namely 4G. Whereas 3G (“Third Generation”) was slow to get off the mark in Oman (3G services were a late entry, with Nawras and OmanTel winning their licences in 2007 and 2009 respectively, whereas UAE internet service provider Etisalat has been offering 3G broadband since 2003), now providers are racing to be the first to offer 4G services. In late June it was announced that OmanTel will shortly be launching its 4G LTE (Long Term Evolution) network, offering vastly improved internet speeds. That month Nawras also announced that it will be launching its own 4G LTE service by the end of 2012, which will be introduced according to where

market demand is highest, starting with the Muscat and Batinah regions, home to more than 55 per cent of the population.

Enhancinng Connectivity The rising level of competition is also pushing Omani firms to think outside the box in terms of target markets. In a bid to stay ahead of heightened competition, OmanTel is now looking to cast its net wider. This is taking the form of enhanced integration with the neighbouring UAE. OmanTel’s recent deal with Etisalat, signed in June, is set to enhance connectivity options, overseeing the installation of the latter’s global multi-protocol label switching node in Oman. The net result of this will be to enable Etisalat’s customers to connect their oﬃces (via Etisalat’s services) between UAE and Oman networks, giving both companies greater coverage. Indeed, deepening telecoms integration with the wider Middle East – where mobile internet subscriptions, for example, grew at a rate of 69,230 new connections per day in the first quarter of 2012, according to Ericsson – represents a proactive and positive development. This partnership will allow OmanTel to expand operations into a market that is outpacing North America and Western Europe for subscriptions growth.

According to Mohammed Bin Ali Al Wahaibi, Undersecretary at the Transport and Communications Ministry, the government sees broadband as a key part of the national plan to facilitate social and educational development – part of the Sultanate’s goal to improve economic productivity and access to information, particularly against the backdrop of a move away from dependence on oil and gas. Much is made of the importance of high-speed internet for businesses and communication, but the potential for facilitating the spread of information to build a knowledge-based economy is clear. The importance of good broadband coverage, therefore, cannot be underestimated. In June, it was announced that Nawras had successfully linked the Ministry of Education with a fast Internet connection to support every state school with quicker access and improved data connectivity. Furthermore, over 140 state-owned schools across the Sultanate have been connected to Nawras Internet Professional service delivered via WiMAX technology. The fact that the government itself chose Nawras over its own telecommunications company is a testament to the success of liberalisation in creating a healthier, more competitive and vibrant local market.

INFORMATIONTECHNOLOGY

Ushering in a

NEW ERA 40

August 2012

or a country that set out far later than most on the digital superhighway, the Sultanate has a lot to show for itself, with some prestigious international awards to boot. It’s a success story that promises to pay rich dividends in the creation of an e-enabled society where an array of government and public sector services can be accessed online. Oman’s quest to create a digital society is the essence of the National e.Oman Strategy. It aims to transform the Sultanate into a secure knowledgebased society by implementing a set of initiatives that support the rollout of e-government services. Spearheading this drive is the Information Technology Authority (ITA), the country’s flagship agency tasked with overseeing the realisation of this vision. Significantly, the latest biannual eGovernment Survey of the United Nations applauds the Sultanate on the rapid progress it has made in the use of information communication technology (ICT). Oman is ranked 16th in the world on the UN eParticipation Index, which indicates how governments create an environment in which citizens can be more active and supportive of their governments. The 2012 edition of the survey also points to significant improvement in Oman’s standing on online citizen and business services indices, which are demonstrative of the success of the Omani government’s and the ITA’s policies. The ranking for eServices this year is at 35 compared to 55 in the 2010 Report.

Similarly, Oman has improved its overall ranking on the UN eGovernment Development Index, moving from 82nd

position to 64th out of 193 countries, advancing 18 positions from the 2010 Report. The Sultanate was listed out of a total of 25 member states that offer separate m-government sites. The e-government report evaluates components related to online services, e-participation, telecommunications and infrastructure, and human capital. Comprising the online services index, four sections correspond to the four stages of e-government development: emerging, enhanced, transactional and connected. In the 2012 report, Oman has been evaluated at 57 per cent in stage four, labeled ‘connected’, which represents the most sophisticated level in online e-government initiatives. This attests to the increase in available citizencentric services and the government’s willingness to give citizens a voice in policymaking. As measured by factors that focus on commitment to a whole-of-government approach, Oman is listed with several other countries among the top performers. Oman was also listed among countries with government websites providing a statement ‘follow us on Facebook or Twitter’. The United Nations eGovernment Survey 2012 highlights the speed with which governments across the world are adopting technology to enhance public sector eﬃciencies and streamline governance systems to improve service delivery and support sustainable development. Also highlighted by the UN survey is how governments are using technologies like computers, tablets and mobile phones to improve service delivery to citizens. Mobile

INFORMATIONTECHNOLOGY

applications for car parking in Muscat, and the Ministry of Education’s portal are all examples of this trend – examples which have won national and international acclaim in recent years. Among the ministries and government departments that have won international honours in this regard are Muscat Municipal (2003), Royal Oman Police (2009) Ministry of Health (2010), the ITA, Ministry of Education, Ministry of Civil Service and National Association for Cancer Awareness (2011), and more recently the Health Ministry.

Human capital

Oman has improved its overall ranking on the UN eGovernment Development Index, moving from 82nd position to 64th out of 193 countries, advancing 18 positions from the 2010 Report

e-Business services Yet another much-lauded initiative is the One-Stop-Shop of the Ministry of Commerce and Industry. The creation of this system arose from a conviction by the government of the importance of investment in all economic fields, by providing support to investors and businessmen, regardless of their nationalities, and eliminating all obstacles that limit the work of this sector. This one-stopshop system includes the provision of e-business services to the business sector through modern technology, which has approximately more than 60 completely automated e-services in various ministerial sectors (i.e. trade, industry, minerals, and s on). Since its creation, the One-Stop-Shop system has witnessed an unprecedented influx of requests and transactions being submitted through the system. The number of applications and transactions is growing at an annual rate of about 15 per cent, with the tally for 2011 pegged at 223,091 submissions. Other ministries and government departments too have rolled out innovative e-government services, some of which won top billings at the GCC e-government awards hosted by Kuwait in November, 2011. The Central Bank of Oman’s cheques scanning system won the best transactional e-service award in the business sector, while the educational portal of the Ministry of Education scooped the best e-portal award in the

August 2012

developmental sector. Winning the Best Government-to-Government Project Award was the Tender Board for its novel e-bidding system. Furthermore, both the Ministry of Civil Service’s human resources management and central recruitment system and the Ministry of Higher Education’s higher education admission system were honoured with two awards. Also keeping pace with the times has been Oman Post, the state postal authority, which recently introduced the landmark e-Post initiative. Billed as the first-of-its-kind in the world, the initiative involves the convergence of both digital as well as printed mail into one unique digital address with each individual, both national and expatriate, receiving a distinctive identity free for life. Besides offering convenience and enabling hassle-free transactions, the new e-post identity will travel along with the person wherever he resides around the country. Developed by Oman Post in collaboration with Vantage Post Technologies BV of the Netherlands – a global leader in digital document portals – e-Post also offers every individual a virtual post box as well. It aims to serve as a channel of communication between individuals and government departments so that applications and other processes are simplified. Further, as virtual box, it will allow individuals to receive real printed mail with notifications through their e-post ID.

Importantly, the development of human resources is one of the main pillars of the e.Oman strategy. In line with this goal, the ITA has launched the National IT Training and Awareness Initiative, which aims to train members of the society – male or female – through 19 Community Knowledge Centres spread across the Sultanate. Training covers the basics of computer, enabling the candidates to browse the Internet and to expand their knowledge about different aspects of life. Omani women have been able to enjoy a bigger share of this Initiative than men as they can not only avail themselves of the training courses organised at 10 Community Knowledge Centres allocated to both genders, but also undergo training through another nine Community Knowledge Centres, exclusively set up for women within Omani Women’s Associations. Statistics show that out of the 30,000 citizens who underwent training through these centres, 16,666 were women. And in a bid by the government to foster the pursuit of excellence in the delivery of e-government and online services, the ITA has instituted the Sultan Qaboos Award for Excellence in e-government. This year’s contest builds on the successes of the 2010 and 2011 editions to throw it open – for the first time – to the private sector as well. The Sultan Qaboos Award for Excellence in eGovernment aspires to recognise qualitative transformation in the field of eGovernment services by honouring digital projects that deliver exceptional innovation and achievement in the field of information technology. The award aims also to honour excellent performance, apply international standards in evaluating the degree of development in e-services, support Oman’s digital strategy, as well as strengthen IT and telecommunications in the fields of economic, social and cultural development.

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ICT

oger Cressey, senior vice president, Booz Allen Hamilton is a well known counterterrorism and cyber security expert. Cressey served in senior cyber security and counterterrorism positions in President Bill Clinton and President George Bushâ&#x20AC;&#x2122;s administrations, including chief of staff of the Presidentâ&#x20AC;&#x2122;s Critical Infrastructure Protection Board from 2001 to 2002. He also served as deputy of counterterrorism on the US National Security Council (NSC) staff, where he oversaw coordination and implementation of US counterterrorism policy. He managed the US government response to numerous terrorism incidents, including the 9/11 and USS Cole attacks. He also held various roles within the departments of Defence and State. Cressey was in Oman recently to participate in the Cyber Defence Summit. He spoke to Mayank Singh on the sidelines of the summit. Excerpts from the interview: Why is it imperative that governments and companies are aware of cyber security and take measures to combat such threats? Cyber security is important because a nationâ&#x20AC;&#x2122;s economic and physical security is dependent upon information technology. Criminals and other nation states are stealing information, IT, personal data and credit cards which necessitates better and advanced security systems for governments, companies and individuals. The interesting thing is that nobody made a decision that the internet was going to be critical for economic security and now that it has happened we need to ensure that it is secure. Is cyber security more of a concern area for developed countries as their dependency on IT systems is more than that of developing countries? Cyber criminals are targeting every country because the connection that globalisation has created across the world creates vulnerabilities and the very networks that we rely upon for commerce, communication and social

August 2012

Hacking hassles Training, education and awareness are the cornerstones of cyber security, says Roger Cressey of Booz Allen Hamilton

interaction are vulnerable to such attacks. Some of these threats emanate from anonymous sources who just hack, steal information and publish it. Second, you have governments who are looking at stealing information for their economic gain. Third, there are insiders who are taking information from their own companies and selling it to interested parties, so it is a spectrum of threats that we have out there and it is affecting every country and individual. What measures can governments and companies take to combat the threat posed by cyber criminals? The most important thing is more and better training. We need to train people in companies and governments about why cyber security is important, whether it is by practicing better cyber hygiene by using passwords or the incription of data as data protection is the number one issue. Education and awareness comes next. Not many people understand as to why cyber security is so important. Once you train people, you have to educate and make them aware about the priority that needs to be accorded to cyber security. The third thing would be to combine training with awareness and policy so that we develop an approach that proactively deals with a threat before an attack takes place. The number one priority in all this is resiliency, to create resilient networks that continue to work in the face of persistent attack, because you can never eliminate cyber attacks. What you can stop is the impact of such attacks on your network. This is an economic and a national security issue for every nation. You talked about resilience, but companies may see cyber security as a cost and a number of them may not be ready to make such an investment. How does one convince them to make that upfront investment? You have to create a return on that investment and the proper way of doing that is by educating companies that do not follow proper cyber security about the risk and cost of losing their intellectual property by

exposing themselves to such threats and that makes their services so valuable. At the end of the day it is about protecting your reputation, technology and what you sell to consumers and governments. So this is an issue of corporate survival, because if your information networks are not secure, then your ability to do your job is compromised. So it should be top notch priority and a lot of it is common sense. To draw a parallel, when you are driving on a highway you wear a seatbelt, because the chances are that if you do not wear one then you may hurt yourself. Similarly, in cyber space you need to follow proper security so that you do not make yourself vulnerable to attack and if you are attacked then if you are wearing the cyber equivalent of a seat belt, then you are not going to suffer so much.

the US government. Is there a growing realisation in the corridors of power that they need specialised expertise to deal with such issues? Yes, it has become a very large priority for the US. The government issued a report last fall (in 2011), in which they detailed the efforts being made by China and Russia to steal data from the government and corporations and this report was very important because it declassified many elements of what was going on. So that is a part of education and awareness. The report also talks about insider threat and why people within an organisation or department are as important for cyber security as outside actors. One cannot just concentrate on the threats from outside as the threat and vulnerabilities from within are equally dangerous.

What are the measures that an organisation needs to take to ensure resilience? It is a combination of training, education, policy and technology. You just cannot deploy an anti-virus, fire walls and intrusion prevention systems and expect to be safe. Once you have this layered defence technology, you need to populate it with people who can operate it intelligently. This reduces risk and is a big part of cyber security.

The report highlights the threat that nations face from countries that are perceived to be friendly or cooperative. Given this scenario how does a country or company protect itself without damaging its existing economic relations with such parties? This is espionage and there are a number of nations that are trying to steal information and some of them are your friends. The US Department of Defence (DoD) has said publicly that there are 100 foreign intelligence services trying to access the DoD network. So we have friends trying to steal information as much as potential adversaries. This is not just about adversaries. If you train your people and secure your networks, then you will protect yourself against everybody, who might want to steal information.

You have served on some of the highest committees related to cyber security in

Cyber security -- tips y Choosing and protecting passwords y Coordinating virus and spyware defence y Debunking some common myths y Good security habits y Keeping children safe online y Real-world warnings keep you safe online y Safeguarding your data y Understanding anti-virus software y Understanding firewalls

You have served on various committees of the US administration. How was your experience? They were very rewarding, it was an opportunity to work on these important issues at the highest levels of the government. Terrorism was an issue that not many people knew or understood before 9/11. That changed from the morning of 9/11. I worked on security issues both before and after 9/11. Critical infrastructure protection and cyber security was a new area, and like

ICT

terrorism not many people understood its importance before September 11. What we tried to do is to make cyber security a priority without having to live through an electronic 9/11 or a massive attack. We have made progress but there is still a long way to go. Given the nature of the internet, there is a need for inter-government cooperation to deal with such a threat. Are governments cooperating and assisting each other to track cyber criminals or is it still a distant vision? Cooperation is getting better but the biggest problem is attribution – are you able to attribute an attack to an individual or country that did it. Right now it is very easy in cyber space to hide your tracks. So if an attack is not attributable to an individual or a country, then you cannot hold them responsible nor make them accountable. So attribution is a very important area that governments need to work together on. The other thing that governments need to do is to develop a basic set of rules of the world for conduct in cyber space. This is not a treaty or an enforceable mechanism, but a code of conduct that will serve as a foundation for cyber security and then it can be built upon. The UN has an important role, but so do regional groupings like the GCC. The GCC is doing a wonderful job in the area of cyber security. In the region we have the GCC CERT and countries like Oman, UAE and Qatar have provided great leadership in developing CERT.

There are cyber hacks who insist that they are breaking into the security systems of companies to expose the risks that customers are exposed to. How would you react to such claims? I have a problem with self appointed vigilantes, who are working in the greater good and have taken that decision upon themselves. The only service that these anonymous players do is to make companies focus on security more, to that extent it is not a bad thing. But they have no right to steal information and then to publicise it as nobody has appointed them as a judge or jury.

Are there a set of international laws in place to combat the threats in cyber space? There are no laws but there are conventions like the Budapest convention and then there are a spate of statements from the European Union, the UN and all of them are trying to create accountability so that individuals who are engaged in cyber attacks can be brought to justice in the country where the attack took

In your presentation you have spoken about smart power. How would you explain this concept? Smart power is the use of government capabilities to try and affect positive change. In the US most people consider us a military power, that’s the wrong way to think about power, because it is our economic, diplomatic power and the strength of our corporations that count. We look at smart power as a way to solve diﬃcult problems. So if it is

August 2012

place. We have seen individuals in Eastern Europe being extradited to the US to stand trial for penetrating US companies and we will do the same if we have extradition treaties with other governments which are similarly threatened or exposed.

Haiti, starvation in Africa or Tsunami in Asia, we want to bring smart power to solve those problems. The military should be viewed as a choice of last resort and smart power ensures that that is the case. Your presentation also states that the global cyber landscape should be transparent, accessible, dynamic and secure. Can you elaborate on this? We need to make cyber space accessible to everyone. New technologies make cyber space dynamic but it needs to be secure, because if there is no security then people are not going to trust cyberspace or conduct business in cyberspace the way one expects. Every nation around the world has some dependency on cyberspace; the US has a much larger dependency, but Oman and the GCC countries are equally dependant. So we have a shared interest in cyber security. What are the main challenges that companies and governments face in realising fool-proof cyber security? Cyber security is a journey and not a destination; you are never going to be done with it. Training, education and awareness is the foundation of proper cyber security. If you are not training your people then I do not care what technology you buy; its doomed to fail.

CLOSEUP

By Dr Jasim Husain Ali

Mighty Saudi Economy With an extraordinary 28 per cent GDP growth in 2011, Saudi Arabia alone accounts for 45 per cent of the GDP of all the GCC countries put together

economies in the world. Speaking of the Arab world, the size of the UAE’s nominal GDP is only second to that of Saudi Arabia. With a GDP of $360bn, the UAE’s economy ranks number 30 on a global basis, undoubtedly an extraordinary achievement. Among many others, economic values of Denmark, Greece and Malaysia lag behind that of the UAE. Saudi GDP grew by an extraordinary 28 per cent in 2011 mainly due to developments in the oil sector.

Influence

umerous indications point to the steady growth of the Saudi economy, thereby further strengthening the global position of the kingdom’s gross domestic product (GDP). These factors include relatively high oil prices, solid oil output, and strong spending. To be sure, nominal or market prices of Saudi Arabia’s GDP amounted to $577bn in 2011, or number 20 worldwide. This is an exceptional achievement by virtue of placing Saudi GDP ahead of several European economies including those of Sweden, Poland, Belgium, Norway and Austria, to name a few. Undisputedly, Saudi Arabia’s GDP is the largest in the Arab world. This partly explains the fact that the kingdom is the sole Arab country in the G20, in turn comprising the largest

Yet Saudi Arabia stands out of enjoying some influence on directions of oil prices by virtue of being the largest oil exporter in the world. At the moment, only Russia produces more oil than Saudi Arabia, but that could change in the current socio-political environment. According to the BP Statistical Review of World Energy, an authoritative publication in the field, Russia and Saudi Arabia have output levels of 10.27 million and 10 million barrels per day, respectively. In effect, this translates into Saudi Arabia accounting for 12 per cent of oil output. Unlike Russia, the vast majority of Saudi oil output is destined for export. It is believed that Saudi Arabia is capable of maintaining sustainable output of 12 million barrels per day. This partly explains the kingdom’s ability to compensate the international oil market for possible losses of output by other oil producing nations such as Libya in 2011. The Libyan revolution last year caused a temporary disruption in output, largely met by

rising production from Saudi Arabia. Concurrently, Saudi Arabia has shown willingness to compensate for the loss of Iranian oil due to sanctions imposed by the US and the EU. Certainly, strong oil prices add strength to the Saudi economy. In fact, oil prices having been hovering around $100 per barrel for the past few years, certainly a new phenomenon. Happily enough, the high oil prices are occurring at a time of ever stronger oil output for the kingdom. Looking forward, steady public sector spending provides a supportive hand. The budget for fiscal year 2012 puts spending at $184bn, a conservative figure when compared to actual spending of $214bn in 2011. However, if history is any guide, actual spending is likely to be considerably higher, something put on display in fiscal year 2011. Conservative Saudi Arabia is noted for putting out notable unadventurous statistics with regard to both revenues and expenditures. In reality, the assumed oil figure for fiscal year 2012 can only be guessed, a questionable policy. On a negative note, the well-being of the Saudi economy remains heavily at the mercy of developments in the oil sector. Currently, the petroleum industry accounts for more than two thirds of treasury income and exports as well as one third of GDP. The challenge now lies in using the extra oil proceeds to diversify the economy away from the petroleum sector.

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

BYINVITATION

Training your dog — Is it important Training imparts physical and mental stimulation to your dog and socialise them with other dogs, people and new environments, writes Alfa Vold, Managing Director, Canadian Jebel K9 Training Centre

with other people, dogs and new environments. They learn to be calm and focused when exposed to new sights and sounds in the future.

ll dogs, no matter what breed require guidance to understand what is expected of them. Some dogs require more than others and it can be stressful if you have a dog that is unruly or displays behavioural issues.

• Improves communication between you and your dog; your bond will become stronger.

Training with your dog can be a very rewarding and fun activity and when we approach it with a positive attitude your dog will be become more attentive and look forward to training.

• Creates mutual respect and demonstrates to your dog his rank in your household. With some dogs this is not a problem however it can be an issue to a dog who does not respect you as the authority.

Make every interaction you have with your dog a training session, for instance, during daily routines such as feeding, play/walk time or grooming, all are enjoyable activities for your dog and when you incorporate obedience exercises with these positive interactions you are setting boundaries, providing structure while making obedience rewarding for him. The result is a dog that becomes more alert and focused on you.

Benefits of Obedience training • Everyone enjoys a trained dog with good manners; giving him fewer restrictions and more freedom. • Training is a great way to exercise your dog. He receives physical and mental stimulation. • Training classes socialise dogs

August 2012

• Obedience gives you the necessary control in an emergency situation.

build up gradually to longer sessions each time. • Add a play session to mark a release at the end of training, your dog will look forward to the sessions! This is easy to accomplish when you understand what motivates your dog and use this as his reward for obeying your command. • Dogs that have no basic training are prone to be naughty and can create a stressful environment for the owner and dog alike. A dog that is prone to misbehaving in public can create anti-dog sentiment, and can contribute to legal restrictions.

Getting Started • Puppies from two months old can be taught manners and basic commands. Remember they get tired faster and sleep for longer intervals than adults, and have shorter attention spans. Lots of patience and constant positive reinforcement is the key. • Dogs of any age can enjoy training. A few guidelines to remember are consistency in rewards and timing, and using the same commands for both good and bad behaviour. Consistency prevents confusion and the dog learns faster. • Work on one command at a time until it is mastered. • Start with short training sessions and

The bottom line is that dog obedience training truly benefits everyone. It is one of the most important aspects of raising a dog and that investment will pay off as in the long run you will have a happier dog that is more relaxed and a true pleasure. The training services offered by Canadian Jebel K9 Training and Services includes: • Group training sessions • Private Training • Board and Train For more information look on facebook or email on jebelk9@telus.net

BRINGING DOG TRAINING TO A NEW LEVEL

Omanâ&#x20AC;&#x2122;s own dog training center, conveniently located in Bousher. Call today on 99419595 or 97376828 or email on jebelk9@telus.net for more information on training and kenneling services.

INTERVIEW

Tapping into the potential With its re-launch, Diners Club Oman heralds an intention to emerge as a major force within the credit card industry in the Sultanate. Robert Sharpe, chief executive, talks to Muhammed Nafie about the company’s strategies to meet the growing market for credit cards in the country

Can you explain about the concept of Diners Club and its evolution? Diners Club is the first independent charge and credit card in the world. There is an incredible story about its origin. When Frank X McNamara went out for dinner one evening back in the 1950s he forgot his cash and got very embarrassed as he couldn’t pay the bill. So he decided that he would start off a card that would enable people to pay, primarily, for their dinner and that is why it was called Diners Club.

August 2012

And from there it developed considerably to be a major travel and entertainment card and then, in many countries, a leading credit/ charge card. Although a number of people have bought the business including Citibank, it is now owned by Discover Financial Services, a large, and very successful, payment service company in the US and globally. Discover is able to achieve a lot of synergies from their existing payment business for the Diners Club brand. It is an interesting concept because

Discover owns the brand “Diners Club International” and everything about it, but it has individual franchises in various countries around the world which manage the operation on a day-to-day basis. The local issuing banks hold the credit card receivables on their balance sheets but pay royalties to Diners Club International for the use of the brand, marketing support, system support etc. There are franchises all over the world. Commercial Bank of Qatar owns the Omani and Qatari franchises.

What is the significance of your recent re-launch in Oman? The re-launch is an interesting story. The Diners Club card has been in Oman since around 1980 and the franchise has been through a number of different ownerships. But it has never been marketed aggressively or been a leading force in the Oman card market. When Commercial Bank of Qatar, which owns 35 per cent of National Bank of Oman (NBO), bought the franchise from the then owners in 2007, the idea was to make it part of the overall NBO family. But, for a number of reasons that has not happened, although NBO has recently provided all their Sadara customers with a Diners Card. When I joined Commercial Bank of Qatar at the beginning of 2011 and became an independent director for NBO, I also looked into the opportunity to launch a standalone credit card (Diners) in the Sultanate. When I compared the financial services market here to that of the US and Europe, I could see there was something extra we could bring to the Omani market and that was personal service. I strongly believe when you launch a product with a real service promise and you deliver on that promise, then people will start using the product and being its best advocate. I also thought that with the economy of the country growing there was a potential market for a new credit card targeting the high-net worth and aďŹ&#x201E;uent individuals. I also spoke to the Central Bank of Oman and they were supportive of any initiative to encourage electronic banking and take more physical cash out of the market. I therefore agreed a business plan with the Commercial Bank of Qatar to relaunch the Diners Card in Oman. What segment of customers you are targeting? Diners Club are not competing with the mass market credit cards, but we are providing an exceptional high standard of personal service for high net worth and aďŹ&#x201E;uent individuals who can take advantage of the features of

I strongly believe when you launch a product with a real service promise and you deliver on that promise, then people will start using the product and being its best advocate the card. We are looking at people with a minimum monthly salary of circa RO2000 per month. We have had a lot of applications from people below that level and we just politely say that this is not the market segment we are looking at. There are another two areas of great opportunities for us. I did not really see a card specifically marketed to the corporate sector which enables the corporates to provide a card for all its senior management team to be able to travel and to entertain. In addition, the SMEs were slightly neglected in terms of their ability to manage their cash flow and I think a card carefully underwritten and carefully managed can give SMEs an opportunity to better manage their cashflows. In September, we will be launching a corporate card specifically designed as a travel and entertainment card for corporate and SME customers. Another area is the travel segment where we can tie up with large corporate and travel companies to fund their travel arrangements. We are also looking at a ladies only card with different attractive features designed specifically for the ladies in Oman and meeting their requirements in a credit card. What are your unique selling propositions? In terms of the price, we have the most competitive interest rate in the market. We have excellent service as we provide a 24-hour contact service and for highnet worth individuals and they will have their own personal relationship person who they can call at any time. This will be a personal relationship manager

based in Oman, who will be available to provide instant service whenever and from wherever the customer calls. We will also be in touch with our Diners Card customers on a regular basis to update them on new features and services available on the card. The card also provides complementary access to 450 airport lounges worldwide, a simple loyalty reward programme, leading insurance cover, coupled with the lowest credit card rate of interest in Oman and the personal service aspect makes our card a unique proposition. Everyone has insurance coverage of various descriptions on every credit card but not a lot of people are actually aware of what they have. We have provided one of the best offerings in the market and we are explaining to our customers exactly what coverage they have available. What about your interest rate and fee structure? We got a standard annual fee. But at the moment we are giving the discount for new customers. Our interest rate is 1.25 per cent per month and that is the lowest in the Sultanate. How is the response from the market so far? Since we launched at the end of June we have signed a couple of hundred new customers. We already had a small base of customers and NBO has around 2000 Diners Club cardholders as part of its card offering to their Sadara customers. What about the acceptance of your cards in the retail market? In the retail market our cards are accepted virtually everywhere. Following a major merchant sales campaign before our launch, Diners Club is now accepted in over 3000 shops, restaurants, hotels, petrol stations and other outlets in Oman. The cards can also be used in more than 185 countries, millions of merchant locations and 845,000 ATMs globally making the card a perfect travel companion for any Omani customer travelling to Dubai for the weekend or further away on business or holiday.â&#x20AC;&#x201A;

TOURISM

How is Country Club been doing and how was the company’s performance in 2011? We are doing pretty well in India, our turnover increased to around INR378 crore (RO262.13mn), with a INR46 crore (RO31.88mn) profit, which is an increase of over 10 per cent over the previous year. We are looking at the European markets now and are working on acquiring a property in London.

In expansion mode

Europe is going through a financial crisis. Given this scenario isn’t it a bit strange that Country Club is looking at expanding there? The recession is an opportunity for us, as properties in Europe are available at a much more reasonable price and a number of people would love to visit Europe from the Indian and Middle Eastern markets. We want to use the global recession as an opportunity. How many properties and members does Country Club have right now? We have 55 properties out of which three are in Dubai, Sri Lanka and Bangkok. We have 300,000 members and 12,000 people working for the company. Country Club has been a pioneer in the timesharing space, how did the whole idea come to you? I started the first club in Hyderabad in March 1989. The property was the palace of the prime minister of Hyderabad. Prior to that I was a builder and we had a strong name in the industry. The club was started by the British for the British; when they left it was being used only by the army and royalty. These former clubs were still following the British ideology with ballroom dances, a formal atmosphere and with children not being allowed. It was totally alien to Indian culture. When I became a corporate member of the regimental clubs, I realised the need to form a club that had an Indian fabric. We wanted to use the rich energies of the Indian culture. So when we started we took members from different parts of India. We celebrated Indian festivals like Navratri, Baisakhi, Lori, Christmas, New Year’s eve and events became a big part of our brand Country Club. The brand grew into dif-

August 2012

Y Rajeev Reddy, Chairman and Managing Director, Country Club India speaks to OER about the company’s performance and future plans. A report

ferent states in India. Now we are in a big way in Bangalore, Chennai, Kerala, Mumbai, Delhi, Kolkata, Ahmedabad, Surat and Poona. How has the brand Country Club progressed over the years? From a modest beginning of 400 members in the first year, we are today at 300,000 families. All the top banks in India, today fund the membership of Country club, because it is a win-win situation for both members and the company.

industry worldwide but in India the travel industry is booming. I travel at least 20 days in a month and I find that our airports are as crowded as railway stations. Our occupancies have gone up in the last few years. We have taken two new properties in Goa recently, due to the growing demand. We are increasing 100 rooms in Bandipur, especially to cater to the growing number of visitors from the Middle East. We have 180 aﬃliate properties and people using our aﬃliate properties especially in the North and the East.

the customer only once in a year, but we are there for our customers on 365 days a year. For example all our health clubs are packed since the morning, in the evening people come for a swim, play tennis, squash etc. and have food. Is there a new generation that is getting involved with the business from your family? Both my children are involved in the business. Y Siddharth Reddy, the joint managing director is a professional finance graduate from Texas and he looks after finances of the company. Varun Reddy is the chief operating oﬃcer and he has a major in communications. Our entire company is driven by technology and customers can just go online and do the necessary bookings.

Why should someone come and become a member of Country club? You pay only once, and you are entitled for a holiday for upto 30 years. RCI is our global exchange provider, so our members can visit their properties and vice versa. In areas where we have our clubs, people visit us on a regular basis. A membership provides you various options like holidays, clubbing facilities, entertainment etc. We have recently started the great Birthday’s Thumbs Up revolution. As a part of this initiative we call each member on their birthdays and celebrate the occasion and their photographs are put in the newspapers along with their telephone numbers, so that others can call and wish them. Thus we are building a lot of trust like a family.

How do you choose the location of your properties and clubs? We look into how easy it is for members to access it; that is of prime importance. Most of the clubs are in the heart of the city. Resorts can be anywhere, for example Bandipur is four hours away from Bangalore.

What is the entry level fee for a membership? In India the average fee is one and a half lakh rupees (RO1041), and an annual fee of around INR 8,000 (RO55).

What are your plans in the next one or two years? We want to expand in Europe and the Middle East and we are scouting for properties. Once we have finalised something we will announce our plans. We are not just a timesharing company, as these companies serve

What is your managerial style? I am on the top of things and I interact closely with all my people. I go to various places. I am involved with branding, takeovers, marketing, new concepts, strategy etc. On the operations side, we have professionals, so my involvement there is limited to interacting with the various heads. I am also the brand ambassador of the company so I have to go out and promote the company.

The recession is an opportunity for us, as properties in Europe are available at a much more reasonable price and a number of people would love to visit Europe

What made you become the brand ambassador of the company? All the famous Khans were asking for a fortune and I thought that I should save some money for the company. I love adventure sports, swim 365 days a year. I went scuba diving in Maldives, hired a Japanese diver who is also a photographer and a Swiss diver, they shot my pictures and that’s where it all started.

What kind of competition do you face in the Indian market? In clubbing there is absolutely no competition. In timesharing our offerings are the same as Mahindra Club Holidays and Sterling Holiday Resorts. Our membership base is huge and the number of our properties are two to three times that of our closest competitor; moreover we are economical. We are undoubtedly the leaders in the timesharing segment. India is going through a slowdown; has this affected your business? There is a slowdown in the aviation

What are your business model and revenue streams? We have three revenue streams – monthly subscriptions, food and beverages and membership revenues. All these add to our revenues. In some places we have given direct sales associates (DSAs) especially in Delhi, Mumbai and Poona, for marketing and this is proving to be a successful business model.

How closely are you involved with the business? I am involved with the business on a minute to minute basis. In the morning the first thing I do is to open my laptop and see the messages that my secretary has sent me and I see all the Birthday party pictures that have come from different locations. How do you feel when you look back? I feel very thrilled.

HEALTH

By Joseph McDonough

The necessity of Developing Patients Skills There has been a lot of attention given to the new field of medical tourism and the significant benefits and risks it presents to hotels and resorts

The author is a Partner Holland & Knight, Abu Dhabi

August 2012

he hospitality industry cannot escape the fact that there is an ever increasing need to provide medical care to its best market, ageing baby boomers. If planned correctly this need not be a burden but a great opportunity. Part of that planning process will be to develop the appropriate legal strategies that will protect hoteliers from the array of potential liabilities that come with providing medical care. In addition to being a member of a law firm with a global reputation in both hospitality and health care law I am one of those ageing baby boomers who loves to travel. My own parents looked forward to a retirement in which they could see more of the world and get away from the miserable and cold New England winters. The time share and warm weather resort brochures were always present in the house. A series of medical problems for my father put a halt to these plans. None of them were that serious or life threatening but enough that he needed a home health aide and physical therapy. While to medical professionals, his problems were minor, just easily treated rehabilitative care, to my father and his primary caregiver, my mother, these were life changing and serious enough that travel plans were cancelled. For the hotels and resorts they planned on visiting it was one more empty room and as you look at the hundreds of thousands of families like them across the US, Europe and the Middle East that loss of revenue multiplies into millions of dollars.

Medical Tourism Versus Medical Care There has been a lot of attention given to the new field of medical tourism and the significant benefits and risks it presents to hotels and resorts. There is a significant difference in legal risk depending on how one defines “medical tourism”, and how it varies from “medical care” while being a tourist. Wikipedia defines medical tourism as “… a term initially coined by travel agencies and the mass media to describe the rapidlygrowing practice of travelling across international borders to obtain health care.” It goes on to state, “Services typically sought by travellers include elective procedures as well as complex specialised surgeries such as joint replacement (knee/hip), cardiac surgery, dental surgery, and cosmetic surgeries.” This describes some very complex, invasive and, from a liability lawyers point of few, some very risky activities. We will look at how to quantify, predict and minimise those risks later in this article.

Potential Market There is a much larger universe of clients and potential clients that need some medical care but are not travelling because of medical reasons but despite medical needs. The ageing baby boomer population creates an ever-growing market of potential clients. Many will stay at home because they think travel will deny them the simple medical care to treat diabetes, colostomies, strokes and a long list of other ailments, readily

HEALTH

understand that they are making no medical decisions. • Do they have the client and client’s family play an active role in communicating with care givers at home and in the visited country? • Do they make it clear who they represent as an agent and what risks they assume? • What are the language differences, written and spoken, among all the parties and what is the plan and back up plan to be sure these terms, often medical and scientific and fraught with emotion, are truly understood by the parties. • What is their system for maintaining, updating and backing up records and communications? available by relatively lower paid semi-skilled health care aides and therapists. However, for more involved procedures, it is far more likely that they will want to travel not for the surgery touted by the medical tourism industry but to recuperate and get simple rehabilitative care from surgery done at their local hospital. Targeting this market is especially attractive in place like Oman which has undertaken a major effort to train health care workers and to become a center of destination resorts

Facilitators Medical tourism has become highly reliant on “facilitators”. These middlemen perform a variety of functions: arranging for medical and travel related services, advising in the selection of the destination provider, arranging for the forwarding of medical records and information, facilitating the payment of fees, setting up aftercare facilities and functions, liaising with insurance companies and other relevant participants. Hoteliers may wish to utilise some type of facilitator to assist with some of the medical tourism arrangements listed above, but for most medical maintenance care, even for

August 2012

rehabilitative services, a paid liaison is not necessary. From a liability aspect working without a facilitator arguably makes things much more straight forward as there is a great deal of legal uncertainty regarding which parties are exposed to risk. However having a written contract with a facilitator that is experienced, well qualified, fully insured and financially solid will significantly reduce but not eliminate the hotel’s risk. Because this is a new industry and multiple jurisdictions are involved with any transaction as well as the numerous opportunities for miscommunication of medical information, eliminating risk is an impossible dream. The key task in medical tourism is to reduce and manage the risk. Key principles to consider when choosing a facilitator would include: • Medical tourism facilitators are not travel agents, they need to understand health care. • They will be able to clearly in all needed languages communicate to the client; they must be transmitting medical information but have to

• Are they using a legal counsel in the home and visiting country and are they giving the client an opportunity to do the same? • Do they recognise the “Murphy’s Law” (If anything can go wrong it will and at the worse time”) factors? Is there cancellation insurance? Avenues for a second opinion? Emergency trauma and evacuation plans? Back up lists of caregiver? Health care workers get sick too.

Minimising Risk I am sure there are many additional points of caution that can be added to this list in merely having a role in the medical tourism venture. An area of concern in some destination countries are the medical procedures that are banned in many jurisdictions and therefore force patients to travel for stem cell treatment, experimental drug use, invitro-fertilisation etc. These areas may have criminal risks and merely being a participant, if another is offering these treatments or procedures, could open a Pandora’s box of risk. The MENA region has seen very little of this activity but caution is advised before proceeding.

One of the purposes of this article is to have hospitality professionals consider the benefits of offering some basic medical care and rehabilitation without undertaking the risks and activities accompanying what we’ve defined as “medical tourism”. The legal principles needed to assist consumers with their health needs are far fewer than in medical tourism. Here are some points to keep in mind: • Work with governmental health regulatory agencies to develop lists of licensed health care entities or individuals and keep this list up to date. Have the governmental tourism agency liaise with their health colleagues if possible. • Retain an international law firm that will understand the laws in the customer’s country and host country and that can draft agreements with local health providers and disclaimers of liability. • Make it clear to all parties that these health care providers are not the hotel’s agents, employees or have any relationship in which you guarantee their work. Provide license number of the provider and the contact information of the licensing agency. Have the customer agree that they understand this disclaimer. • If the hotel has a health care concierge be sure that all print materials have a disclaimer and there is a sign posting at his desk. Hotels are not responsible for the non affiliated restaurants and recreation services they arrange and be sure the customer know this and where he can contact with inquiries or complaints. • If health care providers have an office on hotel property, be sure it is distinct from hotel offices & facilities and there are similar disclaimers. Rental car companies may be using or leasing space from the hotel but it is clear the hotel is not a party to the rental relationship.

Countries like Oman have developed turnkey operations for ambulance services / emergency care with George Washington Hospital • If caregivers are providing nursing, personal or physical therapy at the hotel facility, they require a picture identification badge distinct from hotel IDs. • The hotel should not be the keeper of records however it should have an emergency care plan and note specific medical issues such diabetics. Many jurisdictions have significant and complex patient privacy laws and hotels should avoid receiving information and have steps in place to safeguard any information they do receive. Notice should be given that this information is being kept as a courtesy and not a requirement. It would be a good idea to have a place in the room where medical records could be kept and easily found by caregivers or EMTs, but hotel staff be instructed that it is not for their eyes. • Recommend to customers that all medications should be kept in the room safe and the individual using them know how to access the safe. • Determine with food services what special diets you can accommodate low sugar, salt etc., but give the appropriate disclaimers for that as well as for food allergies.

Conclusion The courts in Europe, the US and the MENA region have seen few of these cases, but most judges surveyed indicated that full disclosure to the consumer is paramount. The

more information provided in plain language, with frequent, specific acknowledgements, the more likely the judge will shift the risk to the consumer and away from the hotel. Be aware that one jurist noted a particular dislike of the lengthy, complex small print web site disclaimer with the check off box at the end. The GCC countries are well suited to attract visitors with medical care needs. The region has been largely unaffected by the political problems of North Africa and the Levant. The quality of health care has been vastly improved by the investments made by the oil rich governments and the thoughtful joint ventures being done with premier hospitals in the United States, England and Central Europe. Countries like Oman have developed turnkey operations for ambulance services /emergency care with George Washington Hospital. Nursing, physical therapy and rehabilitative care are key specialties at area universities and private companies like Rochester Wellness in the UAE and Oman offer world class aftercare capabilities. Families from the MENA region are well known to travel together as a group, and destinations that are welcoming to all members of the family especially the highly respected elders will be rewarded with frequent and long stays. The well financed Gulf region races to meet global medical standards which will give patients confidence that they will be safe and well cared for even if their condition worsens or they have an emergency. Weather plays a role in making the area attractive. Who wants to be cooped up inside during a cold dreary winter in England or New England when they can settle in at a sunny destination resort with golf courses, palm trees, great food and quality services? Recuperation in a Gulf hotel or resort may be just what the doctor orders and the industry can benefit by taking the right legal prescriptions.

LEGAL

By James Harbridge

The OECD Anti-Bribery Convention The OECD AntiBribery Convention is complemented by a set of OECD recommendations which set forth general provisions aimed at deterring, preventing and combating international bribery

he Convention on Combating Bribery of Foreign Public Officials in International Business Transactions came into effect in early 1999. It was issued by the Organisation for Economic Cooperation and Development (OECD) which is an intergovernmental organisation grouping 30 countries. Parties to the OECD Anti-Bribery Convention are committed to combating the payment of bribes by their nationals (individuals and companies) to foreign public officials, including to officials in countries which are not a party to the Anti-Bribery Convention.

is complemented by a set of OECD recommendations which set forth general provisions aimed at deterring, preventing and combating international bribery. Countries are for instance advised to establish transparency in book-keeping and auditing practices, encourage the adoption of internal company controls as well as sound procurement rules and practices.

Practical Impacts of the Convention The regulatory changes have important consequences. Companies may be prosecuted in multiple jurisdictions, chief executives may face extradition and onerous fines can be imposed.

Standards to fight bribery Parties to the Convention have made bribing of foreign public officials in international business a criminal offence. As the convention is not self-executing, an enforcing law is required. This means each country transposes the agreed standards in line with its own legal tradition. The convention’s most significant provisions require parties to: • Criminalise bribery of foreign public officials in international business transactions • Provide a definition of a “foreign public official” • Set accounting and auditing standards for prohibiting the use of accounting documents for bribing

The author is a Partner at Curtis, MalletPrevost, Oman

August 2012

The OECD Anti-Bribery Convention

The following example is an illustration of a case which was handled by more than one jurisdiction. Norway fined its state oil company an equivalent of over $3mn in 2004 for paying bribes to an Iranian government oﬃcial to obtain a contract to develop the South Pars gas field in Iran. After that, the Securities and Exchange Commission (SEC) of the US began its own investigation and fined the company over $10mn in addition to forcing it to disgorge a further US $ 10 million of profits and undergo a compliance review. Businesses, their associations and industry federations are making valuable contributions to promoting best practices. These actors play a fundamental role in developing and enforcing preventive, self-regulatory measures to eliminate malpractices

and fraud. Over the last decade, a wide range of self-regulatory tools have been elaborated. Business tools to raise awareness and prevent malpractice include:

the field of public contracting. An integrity pact establishes mutual contractual rights and obligations to reduce the high cost of corruption in public contracting.

• Codes of conduct

The UN Convention Against Corruption

• Compliance programmes to ensure that the values of the company are strongly supported by top management, staff members are trained and educated, guidance exists for situations requiring judgment, and effective information and reporting systems are established by the company.

The OECD Anti-Bribery Convention and the UNCAC (United Nations Convention Against Corruption) are complementary, and both provide opportunities for international cooperation in this regard. The UNCAC is the latest and broadest anti-corruption convention. With about 70 articles, the Convention provides a comprehensive framework encompassing prevention and prosecution of corruption. The UNCAC has the widest geographical coverage

• Integrity pacts are a tool developed in the 1990s to help governments and businesses fight corruption in

of all international anti-corruption instruments. According to the UN website, 140 countries are signatories and 107 have ratified it (in early 2008). Considering the detrimental nature of bribery and corruption, it has been important to build strong partnerships among different stakeholders and economies. To this end, the OECD has worked with governments to promote anti-corruption activities. Despite the complexities of tracking bribery, it is clear that companies will increasingly seek to reduce their exposure to illegal payments and will seek to ensure compliance to safeguard themselves from investigations, penalties, fines and unfavourable media attention.

AUTOTALK

Craftsmanship is CORE OF BENTLEY Producing a Bentley means maintaining critical tolerances, involving precision tooling and skilled operators all of whom combine to achieve dizzy levels of dimensional accuracy and integrity. Such attention to detail and craftsmanship of the whole manufacturing process makes a Bentley the prized possession of a car lover, says Visvas Paul D Karra after visiting the plant in Crewe, England 60

July 2012

entley is all about providing individual care and attention, not only at the production level of the car but also in catering to the bespoke demands of customers. Every car is made to order and involves exquisite craftsmanship, just like in the olden days when every Bentley that was on the road used to be unique piece of style and motion designed and built by clever coachbuilders. The capacity for speed is an attractive attribute in a Bentley, but in manufacturing the finest motor cars, the quest for perfection cannot be hurried. It takes some eight days to achieve the level of finish and body protection synonymous with these vehicles. One of the interesting aspects of producing a Bentley is that technology has been harnessed for speed, but all the core skills remain in the hands of humans. For instance, every Bentleyâ&#x20AC;&#x2122;s interior veneer is unique as it is marked with the chassis number of the car for which it is intended. It takes 13 days to produce a set

of veneers for one Bentley with 80 craftsmen working in the Wood Shop. The distinctive burr walnut pattern is produced over years by a fungus, which affects the root ball, and become more valuable than the trees, which have passed their best as fruit producers. Every tree felled is replaced by another. Burr walnut is the most familiar but by no means the only veneer used at Crewe. English oak is also available, as is the increasingly rare elm, and the company has introduced two woods, madrona and vavona. Endangered varieties such as mahogany are not used. Birds eye maple is another wood to provide a distinctive grainy pattern, though it is also the hardest to work with. Some customers opt for straight-grain walnut veneers, and solid walnut is used for parts of the car, such as the waist rails.

Mirror image It is the job of Veneer Selector Adrian Minshull to travel to Italy and elsewhere to meet the importers of root balls. He can provide an

accurate estimate of how many car interiors can be veneered once the ball has been sliced into 0.6mm leaves. The Wood Shop uses 16 leaves to create the 26 central components in a Bentley, plus another eight for the waist rails. Options such as picnic tables or additional door panels could bring the veneer used in a Bentley to as much as 6.5sq m (21.3sq ft). Making full use of the recurring pattern throughout the root or log, the leaves are doubled up to create a mirror-image effect. For example, four leaves are taped end to end to form a symmetrical pattern across the centreline of the facia, and this pattern is matched and echoed in the console to create a cascading effect throughout the vehicle. The waist rails also mirror each other, with the same pattern repeated on each door.

Accuracy and integrity Precision engineering is evident in the

AUTOTALK

state-of-the-art Body Assembly Hall at Crewe. Where gaps are required between steel panels, for example, they are uniform, set at exactly 3.5mm.

paintshop each week. And as each body goes on its way, it is already earmarked for one particular customer.

Gleaming perfection Four-axis measuring machines check no fewer than 2,500 measuring points. In addition, the achievement of joints between body panels that are almost invisible is the result of abandoning standard “hot weld” technology, which can cause distortion of panels at the weld points. Instead, Crewe has adopted plasma-brazing “cold weld” technology, which leaves a pristine finish ready for painting.

The bare metal bodies pass through 16 stages of development and 120 separate processes before they depart in a state of gleaming perfection. There are 26 standard and a number of non-standard colours but since the latest product launch, 111 colours were individually matched. The paint shop is often asked to match a colour - to a bottle of nail lacquer or even a pink toothbrush.

Behind orange safety curtains, the plasmawelding teams can be seen at work on the major body assemblies. Elsewhere in the hall, suspended computer-controlled guns are used to assemble body sections mounted on jigs. These hand-held tools allow accurate positioning of the 6,500 spot welds required to optimise torsional rigidity on each monocoque steel bodyshell. No other manufacturer goes in for spot-welding on this scale.

“Ninety per cent of the materials applied to our car bodies are concerned solely with protection and ensuring a durable finish,” says John McNicholas, Zone Manager in the Auto Paint Shop. The other 10 per cent is about aesthetics. But what aesthetics! The first thing you notice when you look at a Bentley is how lovely the paintwork looks.

The visitor will notice that although there are fans to blow any fumes away from the welders, they raise only the lightest breeze. That is to avoid blowing dust around the Body Assembly Hall which, like every other area at Crewe, is conspicuously clean. Between 540 and 560 components are used to construct each body. By the time each one leaves the assembly hall, it will incorporate some 3m of MIG wire, 1.5m of brazing, and about 200 nuts.

A process that can take eight days is telescoped into less than an hour when you walk alongside the conveyors in the Paint Shop at Crewe (there are 2.2 miles of track altogether!). Here, in one of the most advanced facilities of its kind, a procession of bodies arrive in bare white metal and will pass through 16 stages of development and 120 separate processes before they are ready to depart in a state of gleaming perfection. John is responsible for production planning, personnel and quality control.

The comfort zone It takes about three weeks to turn those 540odd components into a complete, inspected bodyshell ready to go on to the next stage. Working a single eight-hour shift, the teams currently send 35 bodies on their way to the

August 2012

Mike Garnett, known to everyone as Slim, has worked at Crewe for 35 years. He is a man absorbed in the craft of working with leather, and in the many ways in which this and other fabrics can be made to soften the feel of a

vehicle and make it a luxurious haven for its owner. His knowledge is wide-ranging and detailed and his skill extraordinary. “We can do, and have done, everything a customer wants,” he says. “If you want a car interior designed in the style of a room in your house, or to match the tie you’re wearing, we can arrange that. We have used ostrich hide, cavalry twill, and velvets. It’s the same with colours - there are 17 standard ones, but we have been asked by ladies to match the nail varnish they are wearing, and by princesses to satisfy their taste in haute couture fabrics. We have always, so far, been able to meet their exact requirements.” How many hides does it take to trim a Bentley? The 9-17 cows whose hide is needed to trim one will all have been reared principally for their meat but the hide that is the by-product is the very finest, and each one will provide around 46sq ft (4.27sq m) of leather. Bentley has invested half a million pounds in state-of-the-art cutting equipment. With the use of a multi tool cutting head this equipment enables us to achieve cutting accuracy of 0.1mm on all of the 400 or so hide panels it takes to make up an interior of a Bentley. Many tasks, such as lining up stitch-lines in top rolls or the fluting in seats, or trimming into tight corners, require consummate skill. Fabricated items such as seats have to be electronically tested before they are transferred into the car. The final audit under bright inspection lights is comprehensive and will reveal any area that requires reworking. It takes an average of six days to produce the finished leather trim for each Bentley.

BROWSINGCORNER

Net Neutrality Tim Wu builds a convincing case for the communication industry to be regulated by an ‘information morality’ in this seminal book. An OER review

he Master Switch: The Rise and Fall of Information Empires is a fascinating, wide-ranging, and inspiring book about communications policy and information industries. This comes as no surprise as Wu is one of America’s great information policy scholars and communicators, probably best known for coining the term ‘Net Neutrality.’

Wu’s great strength is in the breadth of his scholarship and in his ability to use humour, clear language, and innovative arguments to connect diverse ideas. Thus in Master Switch, we have a brilliant explanation and history of what Wu calls ‘the Cycle,’ through which information industries rise, consolidate, monopolise, capture governments, force out competitors, and, eventually, fragment into something less grandiose, less perfect, but more vibrant, open, and innovative.

Connecting the dots The author connects the industrial and informational monopolies of AT&T, the film trust, the exhibitors monopoly, the radio monopoly, the fight over FM, the censorship of the Hays Code for film-makers, the liberation of the Hayes Code for operating modems, the dashed hopes for a diverse and vibrant cable TV landscape, and, ultimately, the invention of the Internet.

The uniqueness of communications as an industry means that regulation and markets fail more often around them, and that the failures are worse. In response to this, Wu builds the case for a set of principles around information industry ownership, concentration, and structure, and proposes that these be regulated largely by an ‘information morality’ -- not by a single regulatory agency or a single statute book, but ultimately by an emergent consensus about the value of information freedom as a vital substrate for free speech and free societies. Wu wisely avoids magic-bullet solutions to the inevitable problems of the communications industry. Simply keeping government out of the business does not work, because the industry tends to form private monopolies if left alone. And having the government run the business, as England and other countries have tried, presents its own problems. The government itself is a monopolist and often behaves like one. Wu instead calls for constraining “all power that derives from the control of information.” He writes, “If we believe in liberty, it must be freedom from both private and public coercion.” The central idea of this book, is that market competition brings enormous benefits, but the market itself does not ensure competition – or, more broadly, desirable outcomes.

The destination for books, gifts and novelties. Stores at Muscat International Airport – Arrival, Departure Landside, Airside Departure, Jawharat A’Shati and The Wave.

In Master Switch, Wu gives us a glimpse into his vast and broad knowledge of communications policy and its history, the groundwork that gave rise to his ideas, and presents an inspiring path to a better world of better networks (even as he shows the risks of not taking such a path). He makes the convincing case that the Net is different, that its stakes are higher than any communications battle in memory, though the form of the battle is a familiar one. Wu is an accomplished scholar who can write about complex ideas in ways that are accessible to all. And the ideas he’s covering are as important as any in our ideological marketplace today.

AUTO NEWS

AL JENAIBI POSTS 38% SALES GROWTH Building on its positive performance in the first three months of the year, Al Jenaibi International Automobiles has announced a 38 per cent increase in BMW and MINI sales for the first half of 2012 compared to the corresponding period in 2011. “We have had a busy first six months with the launch of three new models – the new BMW 6 Series Gran Coupé, the all-new BMW 3 Series and the sixth MINI family member, the MINI Roadster,” said Rachid Zamani, general manager of Al Jenaibi International

Automobiles. “It is evident from our record first half year sales increase that continued opportunities lie ahead in Oman. We will continue to do our utmost to ensure we can build upon this success for the remainder of the year.” The BMW 5 Series was the best performing model in terms of growth with a 160 per cent increase, followed by The BMW 6 Series with all three models – the Coupé, Convertible and all-new Gran Coupé – major contributors to the line-up’s 43 per cent sales increase.

MAZDA’S EXCITING OFFERS Packed with new and exciting offers, Mazda Oman has recently announced their Ramadan promotion - ‘Get more than you wished for with your Mazda’. Under the promotion, on buying a Mazda2, Mazda3, Mazda6, CX-5, CX-9, BT-50, or MX-5 there are exceptional offers and gifts that will enhance the overall driving experience of Mazda. To avail of the Mazda Ramadan promotion, buy a Mazda during the offer period and drive home with free vehicle registration, ‘scratch and win’ up to 100,000 kms of free service, an assured buyback value of 50.55 per cent, and a special Ramadan gift. Moreover,

August 2012

by buying a Mazda during the course of the Ramadan offer, one will also get a chance to win a Samsung Galaxy SIII in Mazda’s daily Ramadan raffle.

I5 RAMADAN SCHEME FROM INFINITI Infiniti Oman has announced their uniquely luxurious Ramadan scheme for the select few. Focused primarily on a niche target audience, Infiniti goes beyond the imagination to offer top-notch service and packages making it one of the most admired and desirable brand of vehicles. The i5 scheme boasts of offering customers with five exclusive and unique offers that are unmatched in their category and five exotic destinations that are to be discovered by five lucky

winners through a raffle draw. If customers plan on owning any of the luxurious Infiniti models, the i5 scheme entitles them with a complimentary service of three years/50,000 KM periodic maintenance. They will receive complimentary registration for the first year and six years of unlimited mileage warranty. Also, they will receive an assured high value gift which includes a range of luxury products like seveninch Samsung Tab, LED TV from Toshiba or Canon DSLR Camera.

SPECIAL RAMADAN OFFERS FROM MITSUBISHI Mitsubishi Oman, represented by General Automotive Company, announced a Ramadan promotion campaign, offering customers exciting deals from July 10 to August 31. All customers who purchase vehicles during the promotional period will benefit from six-year unlimited mileage warranty, six-year roadside assistance, free registration and a free gift voucher. In addition to this Mitsubishi Oman has some special additions to each model. All Pajero, Outlander, Galant and Pajero Sport models will benefit from three-year/50,000 km service package. All Lancer, Lancer EX and ASX models will

benefit from a two-year/30,000 km service package. Additionally, all customers who purchase a Galant, Lancer 1.6L or Lancer EX models will benefit from free insurance. Pajero customers will have something more to celebrate for this Ramadan.

VOLKSWAGEN'S RAMADAN PROMOTION In this Ramadan Volkswagen Oman offers every new owner a superb special package that includes a five-year extended warranty, five-year/ 75,000km free service, five-year roadside assistance, free insurance for selected model and a special VW gift for every purchase. Announcing the special Ramadan promotion, Volkswagen Oman general manager, James Oliver said, “We are delighted to

launch our special Ramadan offer which we are confident will prove extremely attractive to new and existing customers alike, looking to change or upgrade their car. We have noticed that most of our customers will change their vehicle in less than five years which means the offer we have effectively ensures their car stays as good as new throughout the ownership period.”

NEW BOXSTER GENERATION IN OMAN The revamped Porsche Boxster and Boxster S are now available in Oman. After a global reveal in Geneva in March, Porsche Centre Oman, Sata, is introducing the comprehensively changed open-top two-seater in the market. Both variants of the Porsche Boxster have a new, lightweight body and a completely re-designed chassis. Considerably lower weight,

10 SPORTS MODELS FROM NISSAN In an effort to democratise luxury and make sports version cars affordable and accessible to all, Nissan Oman from Suhail Bahwan Automobiles (SBA) has taken the unique initiative of launching 10 all-new sport edition models during the Ramadan. Nissan unveiled an exciting line up of sport edition models that comprise ten of the top selling SUVs, crossovers and sedans at its showroom in Al Qurum.

Nissan unveiled sporty additions to its product range – the all new Sunny, the stylish Tiida, the sleek Maxima and Altima, the new crossover entrant - Juke, Qashqai and Murano, the X-Terra, Pathfinder and the all new Patrol. “With the new sports addition range, Nissan’s premium Sedan models, SUVs and crossovers are all set to create a unique demand in the market,” commented a senior SBA Official.

longer wheelbase, a wider track and larger wheels significantly enhance the mid-engine sports car’s driving dynamics undermining its position as the best in its class. Superior performance is backed by up to 15 per cent more fuel efficiency. Depending on model, they get by with significantly less than eight litres of fuel per 100 kilometres.

EUROPEAN MOTORS OFFERS FIVEYEAR WARRANTY European Motors, the exclusive distributor for Peugeot in Oman, offers customers exciting deals on all cars purchased during the promotional period, from July 21 to September 21. All customers who purchase a Peugeot during the promotional period will benefit from a five- year/ 1,000,000km warranty and five-year/ 60,000

km free service and maintenance with absolutely no hidden charges involved. “Ramadan is a very special time of giving. We would like to offer our customers a purchase that offers true ‘peace of mind’ for the duration that they will own the car,” said Bob Seshadri, general manager of European Motors.

ALL NEW SWIFT D’ZIRE SEDAN Moosa Abdul Rahman Hassan & Co recently announced the launch of the all new Suzuki SWIFT D’ZIRE to target the entry sedan segment. The all new SWIFT D’ZIRE is equipped with most important safety features such as the dual airbags and ABS with EBD, modern exterior and rich interior finish. It is also equipped with the latest K-Series engine

delivering an impressive 95bhp gross, comes in variants of GL, GLX and GLX SPL models with power steering, dual airbags and ABS with EBD, CD/mp3 player as standard option and full power features, keyless entry system, alloy wheels, fog lamps, USB port and automatic climate control system as optional features.

BUSINESS BRIEFS BILLBOARD

Nawras team visits Dhofar governor

The executive committee of Nawras led by CEO Ross Cormack met with HE Sayyid Mohammed bin Sultan Al Busaidi, Minister of State and Governor of Dhofar. The executive committee conveyed the company’s appreciation to the people of Dhofar for their support and commitment over the past seven years. The visit also highlighted the company’s investment in creating the necessary physical infrastructure and technology to bring the best communication experience and wide range of services to customers working and residing in the governorate. Sheikh Abdulla Issa Al Rawahy, chief strategy officer, Said Ahmed Safrar, chief customer experience officer, Hussain Al Lawati, chief sales and distribution officer and Ghaneem Al Mashikhi, regional director for Dhofar joined Ross Cormack on the visit.

Al Harthy wins al Mazyona prize Amor bin Mohammed Salmin al Harthy from Samad Al Shan branch of BankMuscat in North Sharqiyah governorate won the second quarterly prize of al Mazyona savings scheme. HE Sheikh Salim bin Aufait Al Shanfari, chairman of Dhofar Municipality and Salalah Tourism Festival 2012 Organising Committee, picked the lucky winner. Al Harthy, who worked as a security guard with the Ministry of Education, has been banking with BankMuscat for many years and benefited from the loyalty bonus and got his chances multiplied, thereby giving him a big chance to win the prize of RO300,000. He is second time lucky with BankMuscat as he had won RO2000 al Mazyona prize 10 years ago.

City Cinema opens multiplex at Muscat Grand Mall Muscat’s moviegoers now have another entertainment hotspot to watch the latest international releases, with the launch of City Cinema’s latest multiplex at Muscat Grand Mall. The three-screen multiplex is set to become the city’s go-to destination for movies viz. – Hollywood, Bollywood and Arabic. It has several firsts to its credit. The new destination is a departure from the existing format i.e. from standalone multiplexes to one that it is integrated with a shopping mall, providing wholesome entertainment to the shoppers and families. The City Cinema multiplex at MGM features three screens with an aggregate seating capacity of 294.

Ramadan specialties at Shangri-La’s Shangri-La’s Barr Al Jissah Resort and Spa offers memorable settings for family and friends to get together during the month of Ramadan to break their fast and enjoy the special delights of the resort’s distinctive new Ramadan setting in the Al Mazaar souk. Iftar at Al Tanoor offers a wealth of traditional Middle Eastern specialties and international dishes. The extensive buffet spread showcases hot and cold mezzeh, salads, mixed grills, Omani specials and classic desserts. Ramadan beverages such as sahlab, kamar al din, karkadeh (hibiscus tea) and jelab are available. The Suhour in Zafran Café features a cooled, open air courtyard with airconditioned comfort, a canopy covered roof and relaxed seating. Located in Al Mazaar souq, Zafran Cafe is open daily from 10pm to 2 am.

August 2012

Junior golf classes at Muscat Hills Muscat Hills announced the beginning of the Muscat Hills Summer Junior Camp, a special seasonal golf teaching programme oriented to all juniors in Muscat between five and 16 years who are spending their summer holiday in the country and are eager to start playing golf or to keep practicing their favourite sport. The programme will be running all July and August and finish with a two-day golf competition set up for different abilities on September 6 and 7. The kids will be taught every day from 5pm to 5.45pm in different groups of maximum eight children per group. Parents don’t need to buy or hire any equipment and there are no additional costs on top of the RO3 per lesson per child.

WIFI access at 10 BankDhofar branches BankDhofar has joined hands with Nawras to provide its customers free wireless internet (WiFi) access initially at its 10 branches. The bank’s high speed WiFi system will enable customers to access the internet from the comfort of their branch premises, and all of the banking requirement can be completed through WiFi enabled laptops, mobile phones or similar devices. Customers can also check e-mails, read online newspapers or simply catch up with friends on a social networking site while at the same time accessing the many benefits and services being offered in the branch. “Our world has become such a small place due to all the technology that surrounds us, and at BankDhofar we are excited to be champions of the advances in technology by offering an easy way for our customers to stay connected,” said Tony Mahoney, CEO, BankDhofar.

Bank Sohar donates wheelchairs Bank Sohar has recently donated 46 wheelchairs for people with special needs at Oman Association for the Disabled (OAD). Mazin Mahmood Al Raisi, AGM marketing and publicity, Bank Sohar visited the premises of the association in Muscat, to deliver the cheque to Yahya bin Abdullah Al-A`mry, chairman of the association. “Since its inception in 2007, Bank Sohar has been fully aware of its social responsibility and it has never lagged behind in providing financial and moral support to charitable institutions, due to the Bank’s belief in the noble role of these associations towards the society,” said Munira Abdulnabi Macki, DGMhuman resources and corporate support. “We at bank Sohar are certain that our donation will contribute to draw a smile on the faces of people with special needs”.

Special Ramadan Iftar at Radisson Blu The Radisson Blu Hotel has designed an elaborate Iftar buffet in addition to a wide range of local and international gustatory delights at Olivos restaurant this Ramadan to satisfy every taste. The buffet being offered includes the choicest gourmet dishes such as hot and cold mezze, soothing soups, stews, and tantalising curries and biryanis prepared specially during the holy month. The menu also promises a scrumptious mix of far eastern and Mediterranean cuisines and all types of Arabian sweets and drinks specific to Ramadan. The extensive Iftar buffet is priced at RO14 net and there is a special discount on offer for a booking of 11 or more people. For bookings of 40 or more people a private meeting room area can be reserved and the rates will be subject to further discount.

Ramadan treats at Khimji’s Watches Khimji’s Watches is celebrating Ramadan by offering its customers a very special deal. Throughout the holy season of Ramadan, a customer who buys any brand from the extensive Khimji’s Watches portfolio gets a surprise gift with every purchase. The greater the value of the purchase, more expensive the gift! “We want to give something special, back to our customers,” said Madhursinh Jesrani, general manager, Khimji’s Watches. “Our unique promotion celebrates Ramadan by offering our clients an extra special treat when they choose the perfect piece from our luxury brand range. Traditionally, throughout Ramadan, people are looking for a special little something which will show their loved ones, be it friends or family that they truly care. It is a wonderful time of the year as it allows people to open their hearts and pamper those they cherish the most. ”

A season of giving at The Wave As part of its ongoing community outreach programme, The Wave, Muscat in cooperation with Dar Al Atta’a has marked the completion of the first week of its charity initiative for the month of Ramadhan. The Wave, Muscat grows at its premises 400 palm trees which bear fruit in abundance from July to October, each palm tree producing up to 120kg of dates a season. As part of its Ramadhan giving initiative, The Wave, Muscat has delivered boxes of these dates to Dar Al Atta’a in order to be distributed to low income families around Muscat. This joint initiative between The Wave, Muscat and Dar Al Atta’a will run in eight day cycles until the end of the season in October.

MARKET WATCH

Massive storage space To ensure that your food stays fresh and is stored appropriately, Samsung recommends the beautifully designed four-door refrigerator, the AW3 (Model # RFG28MESL). Using the Space Max technology, the AW3 refrigerator is built with thinner walls that provide more capacity on the inside while maintaining the same external size of conventional refrigerators, offering consumers up to 785 litres of storage capacity. The refrigerator features three compartments for increased access, including a large freezer drawer, mid-drawer and main double French doors that lead into a spacious fridge compartment. The AW3 has the Twin Cooling Plusâ&#x201E;˘ technology, which enables a 75 per cent humidity level in the refrigerator compartment to lock moisture into food, keeping perishables such as fruits, vegetables and meat fresh for a longer period of time. This eliminates wasted food, reduces energy consumption and does not mix odours between different compartments.

Stylish with trendy colours Panasonic has recently launched the new Milano shaver for young men. The new shaver is

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August 2012

GIZMOS

World’s thinnest notebook Samsung launched their new flagship notebook, Series 9 in Oman. The New Series 9 notebook is designed to continue to lead the market with its impossibly thin and impeccably crafted design by using the latest third generation Intel i5/i7 processors. Available in two variants, the 13-inch model of the Series 9 is the world’s thinnest and most compact 13-inch notebook while the 15-inch version is the world’s thinnest and lightest 15-inch notebook. Following the former model, the second generation Series 9 represents Samsung’s advanced innovative craftsmanship in the premium notebook category. Its refined aerodynamic design represents the best of Samsung’s design with top performance and functionality. Its unique design and innovative engineering breaks all common perceptions of premium notebook PCs.

Small and cute After dropping the Ericsson brand for the Xperia S, Sony’s next release is the mid-range Xperia P. They’re similar in design, with the same see-through bar at the bottom for the back, home and menu symbols, only this time they’re actual buttons. The 4in screen will suit those who find today’s flagships too large. The resolution of 540 x 960 is the same as the HTC One S, and results in extremely sharp text and images – the 275ppi means pixels are only visible if you look very closely. The maximum brightness of 911cd/m2 is very high, virtually searing our retinas before we lowered it. The contrast ratio of 746:1 is good, although black levels could be lower.

Waterproof, shockproof, dustproof Canon launched the rugged and powerful PowerShot D20 – engineered to be a part of the adventure and capture exceptional images and Full HD (1080p) video when living life to the extreme. Housing advanced Canon imaging technology in a robust and sporty body, the PowerShot D20 is waterproof, shockproof, freezeproof and dustproof – ideal for hurtling down the rapids or conquering a mountain and bringing back the photos to prove it. The PowerShot D20 is packed full of versatile technology including the advanced HS System, designed to produce fantastic picture quality, even in challenging low-light conditions. Sliding easily into a rucksack or attached to a carabiner, the PowerShot D20 is compact, lightweight and built to withstand the rigours of any adventure – freeing users to push themselves to the limits without worrying about their camera coping with the ride.

GOLFUPDATE

Experience prevails Ernie Els wins the British Open 2012 as Adam Scott collapses with four bogeys in last four shots, suffering one of the biggest chokes in golf’s history

outh African Ernie Els clinched his second British Open title, after long-time leader Adam Scott spectacularly imploded at Royal Lytham & St Annes. It was Els’s fourth major championship. World number 13 Scott, chasing his first win in one of the big four events, started the last round with a four-shot lead and seemed to be cruising to victory as he maintained that cushion with six holes to play. But a late attack of the jitters saw him drop strokes at each of the last four holes to allow South African Els to slip in through the back door and lift the coveted Claret Jug with a two-under-par 68 giving him a seven-under total of 273. Scott’s sad 75 meant he had to settle for second place on 274, three shots ahead of former world number one Tiger Woods (73) and his fellow American Brandt Snedeker (74). “I am just numb at the moment, I feel for Adam Scott, he is a great friend of mine,” said Els, who picked up £900,000 in prize money. “We both wanted to win so badly, but I really feel for him. That is the nature of the beast, that is why we are out here. It was my time. I was hoping at best a play-off. A lot of people never thought I would win but I started believing this year, getting a lot of help from

August 2012

my family and the professionals around me.” Tiger Woods threatened at times but a triple bogey via a greenside bunker at the par-four sixth and three straight bogeys from the 13th sank his chances of a 15th major and first since the 2008 US Open. The 36-year-old carded a three-over 73 to end tied third at three under alongside playing partner and fellow American Brandt Snedeker (74). The victory of Els has also ensured South Africa’s supremacy over Australia in the Open record books. Both countries had nine wins apiece before the 2012 Open and for a while poor Adam Scott looked like bringing up the 10th for his nation by joining Peter Thomson, Greg Norman, Lel Nagle and Ian Baker-Finch on the roll of honour. But Lytham has been good to the South Africans – both Bobby Locke and Gary Player have lifted the jug here, with Louis Oosthuizen their other champion – and Els’s second title has nudged South Africa into fourth place in the all-time Open list with 10 wins, behind Scotland (41), the United States (41) and England (22).

Autism fight goes on There was a real human story behind the golfing one as Ernie Els became Open champion again at Royal

Lytham. Between his two victories 10 years apart Els and his wife Liezl have become major fund-raisers after the discovery when he was seven that their son Ben has autism. They moved their main home from Wentworth to Florida and established the ‘Els for Autism Foundation’. They also launched a campaign to raise £20mn for a Centre of Excellence, committing £4million of their own money. The land is now bought and it is hoped it will open in 2013.

BEYONDBOARDROOMS

Deep bonding Eleven years with Aston Martin, including nine years in diverse roles at its factory in UK, helped Elizabeth Walsham-Gray, Brand Manager, Aston Martin Oman, hone her management and leadership skills. Muhammed Nafie reports

Elizabeth gained extensive experience having been tasked with different responsibilities. She started with the materials, planning and logistics division; later became a production supervisor on the shop floor; and then worked as an integral part of the launch team looking after the new models. In the meantime, she completed her Masters of Science degree in Engineering Business Management, as part of Aston Martin’s prestigious management training programme. “I had a Bachelor’s (honours) Degree already, and the company encouraged me to take my skills further forward by doing a Master’s,” she says. “I could study alongside my work in the factory, and I was very lucky that my final year dissertation topic was centered around the role I was doing, meaning that it was very easy to translate everything I studied back into the work environment.”

During her nine years in the factory,

Nine years in the factory stood Elizabeth in good stead when it comes to management and leadership skills. As a senior production supervisor, she led a team of over 50 people. “I was able to lead the team very effectively, mentoring, coaching and teaching what I know about the brand and the business. I had a team of five lead supervisors working for me. The important thing was to recognise what individual skills they have and encourage them,” she says.

t is not an overstatement to call Elizabeth Walsham-Gray a member of the extended Aston Martin family. It’s not only because her husband has worked with the same company for the last 17 years as well; but because, having started her career with Aston Martin’s factory in UK 11 years ago, Elizabeth has scaled new heights in her professional and academic life with the luxury sports car brand. Since the last year, as the brand manager of Aston Martin Oman, she has been looking to create more brand awareness about the cars in Oman. In between, she also had a short stint with Aston Martin Qatar.

New experience The shift to Oman, a country which she loves very much, was a completely new experience for her. “Business is very quiet here in Oman,” she admits. “It’s a very different market here, compared to Qatar where there is more willingness to spend money on luxury cars and a lot of awareness about the brand. Here in Oman people are not as aware of Aston Martin, as they are in Qatar, Dubai or Abu Dhabi for example. It is very difficult to come here with the brand I know very well to realise that other people don’t recognise it as perhaps we think they should. In other countries in the GCC, it is as popular and exclusive, if not more than, as Ferrari and Bentley.” However, as Aston Martin is celebrating its 100th anniversary next year, Elizabeth is working to generate more awareness about the brand in the Sultanate. “I have taken on a new sales manager who has been working in Oman for many years, and knows the market very well. He comes with a wealth of experience, and is helping to create more brand awareness.” Coming from a working ambience where one is used to rigid starting and finishing times, Elizabeth found it difficult to cope with a working environment where deadlines are not that strictly adhered to. “In the factory I was always able to maintain the strict balance between professional and personal time, whereas here in the Middle East that balance gets a bit blurred,” she adds. “However you have to make sure that you have your time at the weekend and in the evening to separate yourself from the busy schedule in office.”

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