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10.05.12 11:09
No 143 June 2012
EDITOR’SDESK
EDITORIAL Editor-in-chief HH Sayyid Tarik Bin Shabib Group Editor Mayank Singh Deputy Editor Visvas Paul D Karra 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 CORPORATE Chief Executive Sandeep Sehgal Executive Vice President Alpana Roy Senior Business Support Executive Radha Kumar Distribution United Media Services LLC OER PRESENTATION
Bliss to be young
O
n May 18, 2012, the social networking site Facebook listed on the NASDAQ at an offer price of $38 per share giving the company a valuation of $104bn. The listing also saw 28-year old Mark Zuckerberg join the pantheon of the richest men in the world with an estimated wealth of $19.1bn, and millions around the world keenly followed Zuckerberg’s sudden exalted status. Psychologically, humans as a race are more interested in young people. There is also an abiding fascination for young achievers. Given Oman’s demographic disposition in favour of youth, combined with the threatening skill shortage that companies face, the onus of spotting achievers early is becoming a survival strategy for most organisations. OER has been doing its bit by compiling a list of the Young Executives to Watch out for, over the last three years. Our experience suggests that the hottest performers are people who know their minds, have a burning ambition and passion to excel. Resilience and an ability to work in teams and to accept occasional setback are other qualities that differentiate winners. Moreover, these Young Achievers are not swayed by temptations to move onto other jobs in the face of challenges. While there may be movers, and those who stay on, the scales are definitely tilted in favour of those who stay long enough in a company to build a sustainable business. One needs to add a caveat here: at the end of the day, it is not about moving or staying on in one job, but about what one does at the job. And OER’s Young Achievers are definitely making a big contribution to their organisations and the economy at large.
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
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June 2012
To read, click on link at: www.oeronline.com
EVENT
NOMINEES SHORTLISTED FOR AIWA AWARDS
F
or the 2012 edition of AIWA Awards for Best Performing Companies, 45 companies have qualified to be in contention for the coveted trophy. The nominees have been finalised after an intense scrutiny of their financial performance in 2011. The select list includes the traditional industry leaders apart from the fast growing relatively younger companies that are galloping ahead to take up the leadership positions. AIWA Awards for Best Performing Companies are instituted by Alam al-Iktisaad Wal A’mal (AIWA), Oman’s leading Arabic monthly business magazine, published by United Media Services (UMS). This year marks the second edition of the AIWA Awards after the highly successful launch in 2011. Leading brands in the Sultanate have joined hands with AIWA in bringing the awards to life. Bank Sohar and Genesis Prada (the luxury car series from Hyundai) have been the strategic partners for the AIWA
Awards. The Wave, Muscat is the support partner for the event. Gulf Baader Capital Markets (GBCM) is the knowledge partner whereas KPMG is the validation partner for the ranking process used for the awards. The top performers in their respective industry segments are powering the AIWA Awards. In a red carpet awards evening on June 10, at Ritz Carlton-Al Bustan Palace, AIWA will felicitate the top performing listed companies in Oman during 2011. A networker’s dream, the event will be attended by the who’s who of Muscat corporate high life. The premium event will attract more than 250 top business leaders, CEOs and senior government officials from a cross-section of industries, ministries and government bodies. It will witness the congregation of the key decision-makers who are driving the country’s business and economy. A high-voltage entertainment show by a renowned international troupe will make the attendees cherish the evening for a long time to come.
Overall 15 top ranking companies will receive the coveted trophy. Based on the Market Capitalisation as at end of 2011, the listed companies in Muscat Securities Market (MSM) have been classified into three categories namely large-cap, mid-cap and small-cap companies. The AIWA Awards will be presented to the top five companies in each category. In addition, AIWA will also felicitate two prominent Omani nationals who have done the nation proud by excelling in the fields of business and economy. The AIWA Awards to the selected personalities will be made in two categories – ‘AIWA Global Omani of the Year Award’ and ‘AIWA Life Time Achievement Award’. AIWA will also felicitate one company for its immense contribution to the society and economy. It will be presented with the trophy for ‘Excellence in Corporate Leadership’. For more details on the AIWA Awards, contact Ahmed on 99356490 or email ahmed.sayed@umsoman.com.
ALMANAC OF OMAN INC OER’s Top 20 issue serves as a veritable almanac of Oman Inc. The cover story gives fascinating insights into the performance of the largest 20 corporates in Oman, examining how they could weather the challenges of financial meltdown world over and managed to increase their revenue
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June 2012
by RO365mn. It is worth noting that Oman’s economy has largely been unaffected by the recent turmoil in global financial markets and the Eurozone debt crisis because its exports are mainly to fastergrowing Asian countries, according International Monetary Fund (IMF). With about 80 per cent of Oman’s oildominated exports going to Asia, the impact of the European crisis will be limited as long as it does not translate into significantly lower oil prices. Omani banks have little exposure to the euro zone. As the Minster Responsible for National Economy noted the economy should grow by 5.5 per cent this year, with GDP projected to expand by 5 per cent in 2012. The increase planned for 2012 will help further stimulate the economy and should push growth. In its 2012 spending programme, the government will be
increasing expenditure by around 10 per cent over last year’s total. Anita Verma, MQU
NOT COMPREHENSIVE Your annual Top 20 issue came out very well. It was as usual an analysis of the largest 20 companies listed in the Muscat Securities Markets (MSM). But since your list does not include some of the largest government companies who contribute a major chunk to the national GDP and some private sector companies who monopolise certain important sectors such as automobile, retail etc., it cannot be described as a comprehensive study of Oman’s best performing companies. Abu Raihan, Ruwi Write to us with your comments/ feedback at: editor@oeronline.com
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INSIDE
70
58
AVIATION
INTERVIEW
TREND SETTERS
FOR A BETTER TOMORROW
Experts at Arab Aviation and Media Summit 2012 envisage an enormous potential for growth for low-cost airlines in the Middle East, capitalising on robust demand
Hussain Ali AbdulHussain, CEO, Haya Water discusses the company’s achievements, plans and challenges
50 ENVIRONMENT
28 FACE2FACE
BEATING THE ODDS Todd M Dick, Vice President, Corporate, Omantel, talks about the success story of the corporate business unit and his vision for the future
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CASHING IN ON CLIMATE CHANGE Reducing your company’s carbon footprint heightens customer appeal and boosts green brand recognition. Another big incentive is the thousands of dollars that a corporate can save
64 INFORMATION TECHNOLOGY
DELIVER VALUE Analysts at the Gartner Enterprise Architecture Summit 2012 reiterated the need for Enterprise Architecture to become business outcome-driven
COVER STORY
YOUNG EXECUTIVES TO WATCH OUT FOR 6
June 2012
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INSIDE
92 BEYOND BOARDROOMS
76
74
A WORTHY CAUSE
78
LUXURY
TECHNOLOGY
LIVING IN STYLE
A VOYAGE AROUND CREATIVITY
Habitat Furnishing’s Evolve Lifestyle is an exclusive showroom for high-quality luxury furniture with innovative designs from several reputed foreign manufactures, including leading German brand Hilker 1888
TED is all about technology, education and design and that was amply demonstrated by speakers at the day-long TedxMuscat. Eythor Bender, CEO of Ekso Bionics, the designers of Ekso, speaks about the robotic device to help paraplegics to walk
Editorial Economy Watch
10
Business Briefs
12
In the News
24
Periscope
26
Realty
56
By Invitation
60
Close Up
66
Economy
68
Auto Talk
80
Autonews
82
Event
84
Billboard
86
Market Watch
88
Gizmos
89
Golf Update
90
Browsing Corner
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June 2012
Oman’s geography seems to be created with an “A-Z” of four wheel driving experiences in mind, and SUVs make up an enormous part of the automotive sales market in the country
2
CARTOON CORNER
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AUTOMOTIVE
UNENDING OFFROAD EXPERIENCE
By Kannan Murali
Rally champion Hamed al Wahaibi and Oman football national team captain and English Premier League star Ali al Habsi have teamed up to cofound a road safety awareness organisation – Safety First
ECONOMYWATCH
Stable outlook Stabilising NPL levels and sound capitalisation will continue to underpin the Omani banking sector’s financial stability NPLs / Loans of GCC Banks 2009
2010
2011
12% 10% 8% 6% 4% 2% 0% UAE
Qatar
Oman
Bahrain
KSA
Kuwait
Rent Component of Muscat CPI Index, Year-on-Year Change ( ) and Evolution of NPLs NPLs in the construction and real estate (Right-axis) 20
Rent component of Muscat CPI index (y-o-y change)
%
%
8
18
7
16
6
14 12
5
10
4
8
3
6
2
4
Dec -11
Oct -11
Aug -11
Jun-11
Apr -11
Feb -11
Dec -10
Oct -10
Aug -10
Jun-10
Apr -10
Feb -10
Dec -09
Oct -09
Aug -09
Jun-09
Apr -09
Feb -09
Dec -08
Oct -08
Aug -08
Jun-08
Apr -08
Feb -08
Dec -07
Oct -07
0
Aug -07
1
Jun-07
2 0
Omani Banks' Profitability Indicators Pre provision Income / Average Assets
Return on Average Assets
Net Interest Margin
4%
3%
2.8%
2.8% 2.5%
2.5%
2.4% 2.2%
2.5%
2.4%
2.0%
2% 1.4%
1.7%
1.6%
1%
0% 2006
2007
2008
2009
2010
2011 Source: Moody’s Investors Service
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May 2012
BUSINESS BRIEFS
TOPAZ BUILDS TWO OFFSHORE SUPPORT VESSELS
BANKDHOFAR TEAMS UP WITH PATH SOLUTIONS Path Solutions will be the core banking system provider to BankDhofar for its Islamic operations. The system, entitled IMAL, is the first certified core banking system for the bank’s Islamic operations. The two companies signed an agreement which will see them work together to deliver Sharia-compliant products to BankDhofar customers. Speaking on the signing of the agreement, Tony Mahoney, CEO, BankDhofar said, “We turned to Path Solutions because of its strong reputation and proven track record in Oman, and its ability to support banks growing their businesses.”
BANKMUSCAT LAUNCHES mBANKING
Topaz Energy and Marine, a subsidiary of Renaissance Services and a regional leader in providing offshore support vessels and engineering services, has added yet another milestone to its 35-year history by building two anchor handling/offshore support/towing vessels. The two sister vessels – Topaz Dignity and Topaz Triumph – will be operated by Topaz Marine on behalf of BP, the oil and gas major, on a long term contract basis in the Caspian Sea. The ships will be fulfilling BPs’ demands for anchor handling/ tug / support and transport of dry and liquid cargo to and from pipe-laying barges, drilling platforms and production platforms for its offshore operations. The state-of-the-art vessels equipped with the latest cutting edge technical prowess are custom-built for Fi-Fi Class I and DP2 operations at a cost of approximately $50mn.
BankMuscat has launched a state-of-the-art mobile banking application redefining banking with the concept of ‘anytime, anywhere’ service. His Excellency Ahmed bin Sulaiman bin Saleh Al Maimani, undersecretary of financial, administration and regional affairs at the Ministry of Commerce and Industry, presided at the grand launch ceremony of mBanking attended by dignitaries, senior government and private sector officials. With mBanking, BankMuscat has made banking truly mobile for the largest banking family in Oman who can now bank 24/7 ‘anytime, anywhere’. Notably, the mBanking application works on all mobile phones and is customised for iPhones, Blackberry, Android and Java based phones with simple icons and menus. The mBanking application is available in both English and Arabic.
QUICKLOOK
“We believe that the production and delivery of the two vessels to an Oil and Gas giant such as BP will enhance and establish Topaz’s strengths and credibility as a leader in providing offshore support vessel and engineering solutions,” said Samir Fancy, chairman of Renaissance Services.
Meethaq endorses RO150mn capital The Sharia board of ‘Meethaq’ Islamic banking has approved RO150mn capital assigned by BankMuscat for its Islamic banking window operations awaiting regulatory approval. The board from Shariah perspective endorsed the authenticity of capital allocation from BankMuscat shareholders’ fund for operations of independent Meethaq Islamic banking.
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June 2012
Oman Air wins best business class award Oman Air has been awarded ‘Best Business Class Airline, Middle East’ in the prestigious Business Destinations Travel Awards 2012. The awards are voted by readers of Business Destinations magazine, which is published in the UK every other month. The magazine has a worldwide readership of more than 100,000 and is distributed in premium aircraft cabins and airport lounges.
Vale's blood donation drive Vale conducted Global Health Week by organising a blood donation drive at its head office in Muscat to instill a culture of social responsibility among its staff. In collaboration with Al Jarwani Group and the Central Blood Bank, Vale staff as well as Beit Al Reem tenants and visitors donated blood which can help save the lives of more than 100 people.
AHEC renews ASME certifications Al Hassan Engineering Company (AHEC) has renewed its certificates of authorisation from the American Society of Mechanical Engineers (ASME) for the use of the “S” and “U” stamps for its production facilities and field sites. The ASME “S” and “U” certification marks are for the manufacture and assembly of power boilers and pressure vessels respectively.
BUSINESS BRIEFS
KR STARTS NEW INSURANCE SERVICES
Khimji Ramdas (KR) recently launched Khimji Ramdas Insurance Services under the umbrella of Khimji Ramdas Shipping, part of its Projects and Logistics Group.The new entity will offer professional risk and insurance intermediary services across all lines of business. With more than two decades of experience as insurance agents with Blue Eagle Shipping and Insurance Services under the group, the new insurance agency division will graduate into full-fledged insurance brokers and address the growing needs of the market. “We have learnt the intricacies of insurance business for more than two decades now”, said M C Jose, CEO, Projects and Logistics Group. “With insurance added to the portfolio, we are proud to offer all transport related services, which was our vision when we started KR Shipping in 1985.” Pankaj Khimji, director, Khimji Ramdas said, “The new division will have the capability to meet and surpass client expectations in this line of business. We believe that we will soon be one of the top league insurance intermediaries in Oman.”
BANK NIZWA IPO ATTRACTS RECORD SUBSCRIPTION Investment management group of Oman Arab Bank, lead issue manager and lead underwriting arranger for Bank Nizwa IPO, released eagerly awaited subscription figures for the Bank Nizwa IPO, surpassing investment community guesses. The initial compilation of figures of all 4 collecting banks show over 11.3 times subscription i.e. over RO681mn (subject to reconciliation) collected against an offer of RO60mn through 37,084 applications. Lo’ai B Bataineh head of management group of Oman Arab Bank said that this sets the stage for the first Islamic Bank of the Sultanate to make a flying start and Oman Arab Bank is proud to be part of this. We are happy that our efforts for a broad base participation have borne fruits. This makes the Muscat Securities Market very newsworthy across the region and worldwide. Recently IPOs in the region have been few and far between and MSM now appears a very active market considering the subscription levels for Bank Nizwa. This also bodes well for the capital market in general and investment community in particular. The public subscription started on April 23, 2012 and ended on May 22, 2012. Bataineh added that during the subscription the issue received huge response from both retail and corporate sectors including both new and existing equity market participants.
NAWRAS TO UPDATE ON DATA USAGE WHILE ROAMING
QUICKLOOK
Nawras has introduced a free SMS notification service to show data usage when roaming. Nawras Ajel (postpaid) customers are now able to closely track data roaming usage while travelling outside the Sultanate which makes it much easier to stay in control of international roaming charges. Data roaming charges vary from country to country and in the past customers have sometimes found it difficult to keep track of it while on the
Al Bustan Palace wins Business Traveller award Al Bustan Palace, A Ritz-Carlton Hotel won Business Traveller Middle East award for the “Best Business Hotel in Muscat” at the award ceremony in Dubai. “Al Bustan Palace has over the years become a national landmark that complements the country’s heritage and I would like to attribute this success to our ladies and gentlemen”, says Bernard N Viola, general manager.
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June 2012
Canon 3rd in global brands ranking Canon has been placed third in the Interbrand ‘Japan’s Best Global Brands 2012’ ranking. Since the ranking began in 2009, Canon has consistently been placed in the top five, and its brand value continues to increase. Interbrand assessed Canon’s brand value at $11,715mn, which is an improvement of two per cent on last year’s valuation.
move abroad. When travelling in another GCC country using SmartRoamer, customers will receive a notification when they have consumed the first 20 megabytes (MB) of data and then further notifications for every subsequent 5MB they use. While travelling outside the GCC, the data notification will be received after the first 10MB of data has been consumed and then a further SMS will be sent for every additional 5MB used.
Grand Mall to offer free Wi-Fi Visitors and shoppers can now enjoy complimentary Wi-fi services at Muscat Grand Mall. This service will be available for all visitors until June 18, 2012. “This courtesy service comes with technical assistance from Nawras. This innovative and interactive connectivity concept will complete the experience of our shoppers,” said Hassan Jaboub, general manager.
Oman Oil campaigns against peer pressure Oman Oil Marketing Company (omanoil) hosted prominent Islamic speaker, Sheikh Suleiman Abdulaziz Al Jubailan, as part of its collaboration with Rekaaz to campaign against peer pressure. Hosted at the company’s head office in Mina Al Fahal, the Sheikh reiterated the worth of ethical collective practices in cultivating social development.
BUSINESS BRIEFS
NBO HOLDS CORE BANKING TRAINING NBO Academy of Excellence, the training arm of National Bank of Oman, recently held a graduation ceremony to mark the conclusion of its flagship training programme, “NBO Core Banking Programme”. The programme, running for 10 consecutive weeks, is targeted at NBO’s young Omani staff, to offer them a strong grounding for a truly rewarding banking career. The programme is a comprehensive offering that encompasses complete knowledge, skills, and attitude deemed necessary for a successful start in the banking world. It is the right combination of technical banking, and behavioural and soft skills. The delivery of the programme was a mix of instructor-led lectures, simulation of real-life branch scenarios, role-plays, and hands-on core banking systems training. As many as 26 young Omani staff attended the programme and completed it successfully.
MICROSOFT, SARCO SIGN DISTRIBUTION ACCORD Microsoft has entered into a distributorship agreement with SARCO covering its Original Equipment Manufacturer (OEM) and commercial business for Oman. The agreement comes in support of Microsoft’s plan to widen its reach in Omani market and increase its presence into the reseller channel. Under the terms of this partnership, SARCO will be responsible for steering the reseller business, increasing Microsoft OEM product revenue and supporting with the development of the local channel. Welcoming SARCO into the fold, OEM director, Microsoft Gulf, Armagan Demir said Oman continued to be an important market for Microsoft primarily due to its investment in wide scale access to information technology as a key driver for growth and competitiveness. SARCO CEO Ajay Ganti said they were honoured and excited to have been chosen by Microsoft as their distributor for Oman.
CBFS LAUNCHES ISLAMIC FINANCE TRAINING
QUICKLOOK
The College of Banking and Financial Studies (CBFS) has launched recently in-house training offerings for four globally recognised certifications in Islamic finance. They are the Islamic Finance Qualification (IFQ) of the Chartered Institute of Securities and Investment (CISI), the Diploma in Islamic Finance of Certified Institute of management Accountants (CIMA), UK, Certified Islamic Public Accountant (CIPA), and Chartered Sharia Auditor and Advisor (CSAA) of the Accounting and Audit Organisation of Islamic Financial Institutions (AAOIFI), Bahrain. HE Hamood Sangour Al Zadjali, executive president, Central Bank of Oman, delivered the keynote address at the launch function recently at the college premises.
Gulf Air boosts Dammam operations Gulf Air announced it has added seven weekly flights to its schedule to and from Dammam, a capacity increase of 30 per cent, to meet the increasing market demand predicted during the busy summer months. The airline will now operate 30 flights per week, no less than four flights per day, offering passengers access to an additional 1,904 seats.The extra flights offer more flexible and convenient flight options.
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June 2012
Muscat Hills Ladies Sponsored Stableford As many as 23 ladies took part in the Muscat Hills Ladies Sponsored Stableford– an 18-hole tournament, financially supported by Eung Joo Lee, one of the corporate members of Muscat Hills. After 18 holes in extreme temperatures, the best result in stableford points was turned by Mary Smith with 39. Andrea Muller won the second place and Marie-Christine Bouvier finished third.
Sultan’s school to host ITGS seminar The Sultan’s School will host the prestigious Information Technology in a Global Society (ITGS) exam standardisation meeting for the first time in the Sultanate. Traditionally held in the United Kingdom and the Netherlands where the IB headquarters are located, the meetings determine the standards for examination marking in IB schools. Similar sessions take place for all the subjects.
Nawras introduces ‘Elite Friends’ Nawras has expanded its popular Elite Programme to reward customers for recommending friends and family to join. The ‘Elite Friends’ programme is a new way for customers to earn up to 10,000 elite points which can be redeemed for free call time or SMS to other Nawras numbers. ‘Elite Friends’ rewards existing and new customers with Eelite points based on their chosen mobile or home broadband plan.
BUSINESS BRIEFS
OMAN DATA PARK DEBUTS AT COMEX A new COMEX entry that drew a lot of interest this year was the Oman Data Park stall. The buzz was about the co-location and cloud computing solutions offered by the company. For enterprises looking to streamline their IT systems for operational efficiency, the Oman Data Park stall was easily the best place to learn about customised solutions to their IT requirements. A joint venture between Omantel and 4Trust, Oman Data Park (OPD) was established in 2011 and is conveniently head quartered in Muscat. It provides quality IT and business process services, with extensive capabilities to manage, enhance and support office IT and business processes. Its Tier 3 Data Centre at KOM-4 provides reliable co-location, managed hosting and other allied services, delivered through highly experienced, committed and motivated teams.
PORT OF SALALAH SHOWCASES CONNECTIVITY Port of Salalah has welcomed executives and representatives from the shipping world’s largest shipping lines and principal customers in the local market to handle its 30 millionth TEU (Twenty Foot Equivalent Unit) container, recently. The distinguishing aspects of Port of Salalah, the second largest port in the region, including its direct connections to the world and shortest transit times to the major markets in Europe, Asia, Africa and the US from the region, were conveyed during a thorough tour of the port’s container terminal. The tour of Port of Salalah also substantiated its unique position to benefit customers through the Salalah Free Zone and Free Trade Agreements (FTA) accessing United States and Singapore, as well as sealand-air agreements with local businesses and faster connection routes to GCC markets. Port of Salalah’s customers include the world’s blue-chip names in ocean carriers such as Maersk Line, APL, CSAV etc.
OMAN, KOREA TO EXPAND TOURISM COOPERATION
QUICKLOOK
The Ministry of Tourism sees World Expo 2012 at Yeosu as a unique opportunity to build awareness of Oman among Koreans, at the business and leisure levels, according to HE Maitha Al Mahrouqi, Undersecretary of the ministry. “We think our cultural heritage, landscapes and natural diversity showcased at Yeosu will appeal to Korean business and leisure travellers,
Drink Natural’ campaign Masafi has unveiled a new campaign to highlight the natural characteristics of its pure, natural mineral water. The ‘Drink Natural’ campaign, which runs till June 30, 2012, is focused on the 100 per cent natural freshness of Masafi mineral water, reinforcing its core message through a slogan – ‘Naturally Natural’. The campaign communicates the natural attributes of Masafi mineral water, which has been executed with an emotional touch.
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June 2012
UTICO projects lower utility tariffs UTICO unveiled a utility development project that would lead to lower consumer tariffs and zero subsidies, recently at the Oman Water and Power Summit 2012. Part of the $3bn Ghantoot Group, UTICO had announced in February 2012 a $500mn investment in Oman’s hospitality, water and energy sectors. UTICO is in active talks with Omani authorities to implement the projects.
and make it a stand-out destination in the Gulf,” she said. In 2011, trade between Oman and Korea reached $6.3bn, excluding engineering, procurement and contractions contracts to Korean companies. Major companies from the Republic of Korea are also partnering in the development of Oman’s new city on the Sea of Arabia (Duqm) and providing high tech support for Oman’s water and power generation schemes. As trade ties grow, the ministry believes this is the opportune time for engagement to encompass tourism and thus add a vital new dimension to the cooperation between the two countries.
Etihad acquires stakes in Aer Lingus Etihad Airways forged a commercial partnership with Aer Lingus, acquiring a 2.987 per cent stake in the Irish national carrier. Etihad Airways operates 10 flights a week from Abu Dhabi to Dublin and had carried more than 750,000 passengers between the two capitals since it began flying the route in July, 2007. Etihad Airways has strategic codeshare partnerships with 34 airlines around the world.
NBO announces Customer Consultant Award National Bank of Oman (NBO) has announced the first winner of its customer engagement programme, ‘NBO Customer Consultant Award’, recently. Salim Al Jahwari, customer of the bank’s Qurum branch, was selected for the award for his valuable suggestion which resulted in the bank’s introducing an additional feature in the ‘real time balance order’ transaction process.
GREEN VILLAS FROM THE WAVE The Wave, Muscat announced the latest sales launch of its Reehan Gardens villas. This latest sales launch follows the successful sellout of the last marina village apartments in Almeria East in March, 2012. Located to the east side of the master-planned development, Reehan Gardens will be one of the ‘greenest’ precincts within The Wave, Muscat with more green public spaces for the community. In addition, a green buffer zone and pedestrian walkway has been incorporated along 18 November Street to enhance the livability of the precinct which will also have easy access to the new Greg Norman designed course at Almouj Golf and the Fairmont hotel when completed. The launch comprises 107 large twin villas and traditional detached villas in 3-7 bedroom configurations, starting from RO200,000. The Reehan Gardens villas have been carefully designed to offer residents more efficient use of space inside and outside the villas, with optional extras including swimming pools and children’s playrooms.
OMANTEL LINKS ’VERONICA’ WITH MAIN NETWORK Omantel has completed building the telecom infrastructure to link the Floating Hotel ‘Veronica’ in the Willayat of Duqm. The company has linked the Floating Hotel ’Veronica’ with the Omantel network which enabled the hotel to enjoy state-ofthe-art corporate solutions offered by Omantel irrespective of the fact that it was built on the sea. The technical experience of Omantel engineers has been instrumental in the success of the project.
QUICKLOOK
Says Salim Said Al-Fudhaili, manager of industrial sector sales in the corporate business unit at Omantel, “This is the first project of its kind in the Sultanate which shows the capability of Omantel teams in providing telecom services even if they require special technical knowledge”.
Research paper on GCC- India ties A research paper recently published by Alpen Capital titled ‘Trade and Capital Inflows between GCC and India’ analyses the development of bilateral trade and investment capital flows over the last 10 years, thereby highlighting key attributes that have helped foster stronger economic cooperation between the two economies. It also covers the future growth potential of trade and capital flows.
Ghala Valley Golf Club reduces summer rates Ghala Valley Golf Club has reduced its green fee prices for the summer months. The special prices will run from May 12 until the end of Ramadan this year. Visitors to the course will be able to play 18 holes of golf for as little as RO18 and 9 holes of golf for just RO10. Those players who are a member of the Oman Golf Committee (OGC) will be treated to 18 holes of golf for just RO15 and 9 holes of golf for just RO8.
SHELL HOLDS GRADUATION CEREMONY A new batch of 130 Omanis graduated at ‘Career and Prospects 2012’ annual ceremony organised by Shell Development Oman (SDO) at Hotel Crowne Plaza recently, under the auspices of HE Sheikh Mohammed bin Said Al Kalbani, Minister of Social Development. The 130 graduates were trained in vocational specialisations including AutoCAD engineering design, occupational health and safety, sales and debt collection. Among the graduates were also people with special needs who participated in special programmes in carpentry. The programmes were implemented in cooperation with the Ministry of Manpower, Nizwa University, The Association for Welfare of the Handicapped Children, Oman Society for Petroleum Services (OPAL), designated training institutes and private sector establishments who will employ these graduates.
The Wave to expand retail eightfold The Wave, Muscat, is set to see an eightfold increase in its retail space with the release of Al Marsa Village Centre. By 2014, The Wave will claim its place on Muscat’s retail map with Al Marsa Village Centre expanding the retailing opportunities at The Wave from 1,500 sqm to 12,500 sqm. Almeria North is now 100 per cent occupied and is set to welcome its final tenant, Shakespeare and Co., in July.
OMAN Re upgrades RMS OMAN Reinsurance Company (OMAN Re) recently upgraded its information technology (IT) Reinsurance Management System (RMS) to the latest version. This upgrading was done with the assistance of ARIMA an affiliate company of Arab Insurance Group (ARIG) in Bahrain. ARIMA has delegated one of its experts to implement the upgrading in coordination with the IT staff of ‘OMAN Re’.
BUSINESS BRIEFS
HAYA WATER SIGNS 26.7MN CONTRACT Haya Water signed a new contract worth RO26.7mn with Consolidated Contractors Co. to construct wastewater facilities in Qurum and Ilam areas. The new contract was signed recently by Haya Water chairman HE Eng Sultan bin Hamdoon Al Harthy and Fathi Ahmed, regional managing director of Consolidated Contractors Co. The 30-month contract will deliver a wide range of services including 40km of sewer pipes, 66km of lateral pipers, 13 pumping stations, 885 manholes, 5600 inspection chambers and about 5000 of home and government properties connections. The project will also install a 10-km treated effluent irrigation main channel and enable the installation of fibre optic ducts and cable installation. The contractor will also undertake a comprehensive property survey of homes that will be connected to the new modern system as Muscat moves away from the old system of smelly septic tanks.
EXECUTIVE MOVEMENTS marketing, customer service and security. With over 10 years of combined experience in engineering, government organisations and retail, Husam is a significant contributor to the local community and will be an asset to the Muscat City Centre team. Watfa Humaid Al Harthy
Husam Mohamed Al Mandhari
Muscat City Centre and Qurum City Centre have appointed Husam Mohamed Al Mandhari and Watfa Humaid Al Harthy respectively as their senior mall managers. Both Omani nationals will draw upon their retail, sales, marketing and mall management experience to drive the continued growth of their respective malls. As senior mall manager for Muscat City Centre, Husam will be overseeing the day-to-day management and operations of the mall, ensuring the mall continues to deliver high standards across all areas of operation including retail management,
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Watfa was previously the associate mall manager for Muscat City Centre and the manager of mall promotions and media (MPM) for both malls. Watfa brings 10 years’ experience in retail management, sales, marketing and customer service and her well-rounded background and resultoriented approach will be an asset to the Qurum City Centre Team. “It’s a pleasure to be overseeing Qurum City Centre, which has established itself as a popular meeting point amongst residents in the community,” said Watfa Humaid Al Harthy.
Oman Air has appointed Captain Ali Hassan Sulaiman as acting chief officer, flight operations. Captain Ali, an Omani national, brings more than 30 years of professional experience in civil aviation into his new role. He began his career as a student pilot at 1981. Captain Sulaiman is experienced in flying a range of aircraft, including the Tri0Star, Boeing 737 and 767, and Airbus A320, A330 and A340. In 2008, he held the position of senior manager training and standards, where his extensive acumen and commitment helped to enhance effectiveness and outcomes. In 2009, he piloted Oman Air’s first Airbus A330 from the factory in Toulouse, France, to Muscat International Airport. His most recent role has been deputy chief officer flight operations.“I am delighted to have been appointed to this position, Flight Operations being central to Oman Air’s dynamic growth,”said Captain Sulaiman. “I trust the entrenched expertise that I have gathered over the last three decades will prove very useful and I very much look forward to play my role in ensuring outstanding flying experience.”
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IN THE NEWS
The pride of the nation Oman Drydock Company celebrated the first anniversary of its soft operation and launced its new website
O
man Drydock Company (ODC) has completed successful one year of the soft operation of its world-class ship repair yard in Duqm which heralded a new era in Oman’s maritime industry. A gala event was organised to mark this auspicious occasion and to launch the new website of ODC, recently at Ritz-Carlton – Al Bustan Palace, under the auspices of His Excellency Yahya bin Said Al Jabri, chairman of Special Economic Zone Authority, Duqm. Titled ‘Vision to Reality, A Year of Success’, the event was aimed at celebrating the success of one of Sultanate’s most prestigious projects, poised to make Duqm a thriving economic and social development hub. It was in April, 2011 that, after years of meticulous planning and construction works, ODC launched the soft operations of its state-of-theart dry dock facility in Duqm, in an ambitious step towards contributing Oman’s march towards economic diversification. HE Said bin Hamdoon Al Harthy, chairman of Oman Drydock Company and Undersecretary of Ports and
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Maritime Affairs in the Ministry of Transport and Communications, welcomed the gathering. Commenting on ODC’s one year of successful soft operation, Al Harthy said, “Today marks the celebration of one of the most successful economic achievements in the Sultanate. ‘Vision to Reality’ reflects ODC’s march towards strengthening His Majesty Sultan Qaboos bin Said’s vision of diversified development and inclusive growth. Within a short span of time, ODC could build its unique brand in a highly competitive dry dock market by utilizing local and international marketing and media channels.” The event also celebrated ODC’s best-in-the-class health and safety standards and quality management system which enabled the company to win the Occupational Health and Safety Advisory Services (OHSAS) 18001/2007 certification and the ISO 9001:2008 certifications, by US-based ABS Quality Evaluations. Joe Brincat, the ABS regional VP for Middle East and Eric Kleess, president & COO of ABS Pacific presented the certifications
to the company on the occasion. Elaborating on this deputy CEO, Sheikh Khalil bin Ahmed al Salmi said, “The ODC has achieved one million safe man-hours which enabled it to win the OHSAS certification. These certifications testify to the fact that ODC has taken adequate steps to avoid accident and hazardous situation using a comprehensive and efficiently implemented system for the benefit of its employees, clients and relevant stakeholders.”
Website launch This was followed by the launch of the new website of the company ww.omandrydock.com. The new website with its brand new design reflects ODC’s unique mission offering a complete spectrum of information related to key aspects of the company. Equipped with a lot of distinctive features including matchless navigation facilities and exceptional user-friendly interface, the website gives a comprehensive picture of the company’s operation, management, vision achievements, social initiatives etc.
PERISCOPE
By Matein Khalid
The value buy zone for Facebook and Apple Technology has the growth but it is not immune to risk aversion. Value investors must, above all, be patient
F
acebook may command a $100bn plus valuation at its birth as a public company but this will not last. The Instagram deal is a strategic blunder. Facebook paid $1bn for a zero revenue business that is not worth more than $300mn. This deal can only have been done with Zuckerberg’s approval and a 27-year old software developer is obviously no strategy genius by right. A $100bn public company will be run by Zuckerberg as his private fiefdom even after the IPO since he controls the voting rights share. This is a corporate governance nightmare that could have devastating consequences for Facebook shareholders in the years ahead. What if Zuckerberg decides to write a $10bn cheque to the next Stanford dropout with a hot social media website? I cannot compare Google with Facebook. Google went public in 2004 at a $23bn valuation, the reason it was a genuine growth stock with a killer app on the Internet (search). This meant there was ample potential for investors to buy Google in 2004 as a long term growth stock and those who did so saw their shares rise seven folds as Google rose from $85 to $650. The mathematic
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of the Facebook IPO is entirely different. The big parabolic increase in valuation happened during the eight years when it was not a public company. This does not mean the shares cannot double in the next five years. Yet as revenue slows, I believe Facebook valuation metrics could get slammed. In any case, Facebook will trade at 100-120 times earnings at a time when Europe face financial and political meltdown. This means the risk of a 30-50 per cent crash in Facebook shares all too possible. Every earnings number will be an appointment with a NASDAQ guillotine scaffold. Apple stunned the world, delivered 50 per cent growth rates yet only commands a 20 times valuation. Facebook is a speculative colossus that could well fall victim to Greece’s exit from the EMU later this summer. Facebook’s revenue model, while though powerful and unique, is ultimately global online advertising sales. But Facebook is Pepsi to Google’s Coke, the obvious dominant global champion. While online ad sales is a high growth global business, Facebook will never dislodge Google from the gold medal winner’s box, despite Mark Zuckerberg’s hoodie on Wall Street roadshows. This makes the 2011 revenue growth and EPS miss ominous. Facebook earnings were near $1bn in 2011, and it has built a global brand with 900 million users and can easily deliver 25 per cent EPS secular growth. This means the downside risk in Facebook is $50bn, not coincidentally the level it raised
financing from Goldman Sachs and Russian oligarch Yuri Miller. In essence, this suggests a 15-18 range for Facebook makes a great long term buy for value investors.
Iconic tech share Apple has fallen almost $90 from its $644 all time high. This provides investors with a strategic opportunity to acquire history’s greatest Big Tech ecosystem after Microsoft MS-DOS cash machine. Apple is a growth share that dominates its industry and the market penetration metrics in tablets, Macbooks. Apple blew away the 1Q revenue and EPS estimates thanks to the explosive launch of the iPhone and iPad in China. Annual EPS growth was a phenomenal 92 per cent. China iPhone sales soared fivefold and Apple is just beginning its footprint in the Middle Kingdom, the world’s leading Internet market. The August 2012 put option on Apple with a strike of 530 can be sold to generate a premium of $30. This means as investor can create a risk/ reward calculus in which the worst case scenario is being forced to take delivery of Apple at 500 cost. This strategic idea is only possible since Apple shares have corrected from their highs while Chicago Volatility Index (VIX) has spiked higher by 25 per cent since March. This means investors buy Silicon Valley’s iconic tech share at a mere 10 times forward earnings. This makes buying Apple at 480 – 500 for a $650 target a credible value proposition for the next six months.
The author is a renowned investment banker based in Dubai
FACE2FACE
Beating the odds Todd M Dick, Vice President, Corporate, Omantel, talks about the success story of the corporate business unit and his vision for the future in this candid chat with Visvas Paul D Karra
You have been heading the Omantel corporate business unit since late 2010. What has been your experience? I came to Omantel with a mandate to build the corporate business department for the company and to become a leader in the business market sector. Iâ&#x20AC;&#x2122;ve been fortunate to have worked with a number of tier one companies like Zain, Vodafone and Telstra, in the US, Asia Pacific, Africa and throughout the Middle East which has suited me well when I needed to understand both local and international trends. My programme is to be not only the leader in Oman but also in the region. So far our success has been enormous. In the beginning of 2011, we launched the first ever Omantel Business brand. With support from some of the biggest brands of Oman and a brand nurturing campaign, a number of road shows, events and key speaker appearances, we were selected as the number one
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business brand in the Oman market at the end of 2011. Within just one year, we became the strongest business brand in the market. That was also supported by a very thorough business plan and a tailored business product road map for the business community. So it was not only the branding campaign it was also the specialized, industry specific, products and services that we delivered to the market in 2011. The output from this is, that last year we contributed to the Omantel company 13 per cent YoY growth in a market where we have 80 per cent mobile and 95 percent fixed market share. The challenge for us is the business growth. When we have been a dominant market player, most people say that you only stand to lose, not to gain. You only stand to basically maintain, not to grow. This is a testament to the strategy of the business to deliver and to grow the Business Unit. How did this growth come about? What are the differentiators? There are a number of reasons. First of all, our network and quality of technology is sound and robust and we have the widest reach of network. If you look at the mobile sites in the country, we cover 97 per cent of the populace. Our 3G network is by far superior. Our fixed infrastructure of 7500 kilometres of fibre exceeds anyone in the market. We have international connectivity with seven submarine cable landings. This not only exceeds competitors in the country but most of the other players in the region. What that means is that we become the carrier of carriers. We are already getting opportunities from STC and Etisalat to carry their traffic over land to the rest of the world. If you look at our reach, we have a huge coast with a reach to the whole Indian Ocean. The ability to divert the traffic if there is any cut and ensure continuation and consistency is very high. So one reason people come to us is the reliability factor. And with
the number of cable cuts, like those that affected Saudi Arabia recently, continuation is important. We have very tailored and very focused sales managers to service verticals with dedicated account managers to service the needs of oil and gas, industrial, finance, government etc. We take a bespoke approach to serve these customers that sets us apart from any others in the market. For example, an oil and gas company working in the desert will need software and hardware designed to withstand adverse weather conditions of extreme heat and cold and connectivity in far reaching remote locations, while the finance industry may be looking for security and redundancy as the basic necessity for their operations. Does the fact that Omantel is an incumbent and enjoyed monopoly for a long time help you? Competition is there for us but we don’t look at it like that. We look at our own internal capability and continuously challenge ourselves to deliver the most technologically advanced services in the market. For me, if you rely too much on your history that is where you are going to fail. Only those that continue to innovate and change their business model will survive. Are the submarine cable landing stations contributing significantly to your business figures? International connectivity is important for a number of our clients. There are three landings around the greater
We cover 97 per cent of the populace. Our 3G network is by far superior. Our fixed infrastructure of 7500 kilometres of fibre exceeds anyone in the market
Muscat area, and we are building a few more in Musandam and Salalah. This is beneficial to us, as it provides diversity, geographically and for a number of other reasons. For example, if unusual weather conditions occur and one international cable gets cut and trouble erupts anywhere, we have three-four backup cables. That is why so many regional players are asking for our services. HSBC has located their data hosting centre here because of our international connectivity and data park facilities. We will be looking at strengthening data opportunities in Oman and in the region. Interestingly, Qatar National Bank has also decided to co-locate their facilities to Oman for the same reason. The international connectivity is not a core business activity but it is an important part of our strategy. What is the Oman Data Park all about? Oman Data Park brings tier 3 data services (the highest grade) to Oman. It will be a full functioning data facility and companies can use it for a number of benefits. For some it could be co-location of data, for some perhaps, redundancy or backup data, and for others it could be a full-fledged data offsite facility. It comes down to a number of things – it could be efficiencies, economies of scale for financing or managing that data. For example, Bank Nizwa is looking to start their business using Oman Data Park, they are not going to have their own data servers. What would be the role of Omantel in this? Maybe it is not a core competency of ours but we obviously constantly look at opportunities to partner with the best. In this play, we have an expertise in connectivity and data management. Omantel already has existing tier 3 data centres which are used for its own purposes. In this case, we saw an opportunity to partner with 4Trust who have expertise in data centre management. They have built a number of initiatives in Oman so, for us it is a natural partnership that now enables us to develop a commercial model and offer it to the open market.
FACE2FACE
What about the security concerns? If you look at the finance industry, security is one of the significant factors for this vertical. One of the security products is the MPLS internet protocol and Omantel has ISO certification 27001, which is an international certified body, to deliver the privacy element. The finance vertical would not go forward with us if they felt that any security breach would occur. So we are confident with our capability. I think the greater business community would benefit from a service like the Oman Data Park. One of the growth areas is broadband. Is this a major contributor for the turnover of big telecom companies? Broadband and data is the play of the future, there is no question about it. There are a number of products that are coming into the market that are going to facilitate this, such as the cloud services. Look at Apple, you have an Iphone, then the Ipad and your Mac computer. With cloud, you can have all your data (pictures, music etc.), on the cloud and you can pull in information from any device. So the connectivity required and the network required to deliver the information, the quality and the speeds, are manifesting themselves through broadband. We have foreseen that and we are investing in our capability. There are two technologies which we are bringing to the market; the first is LTE (long term evolution); and also GPON for FTTX. We have installed GPON for The Wave, Muscat Hills and KOM. This is the most advanced fibre speed that you can get globally and we have it here. It will be available in Duqm as well. With reference to the 13 per cent growth achieved by the corporate business unit under you, does it mean that the corporate unit was not functioning properly? When I took over the Corporate Business Unit, Omantel already had a significant market share in the Business market. This was a testament to the team already in place. The 13 percent growth came from an existing solid team, supported by a new business plan, customized customer
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Broadband and data is the play of the future, there is no question about it. There are a number of products that are coming into the market that are going to facilitate this
retention programs and a concentrated effort to grow new revenue streams. It seems that the 13 per cent growth rate of the corporate business as compared to overall 7 per cent growth rate of Omantel was achieved thanks to a lower base beginning. Do you think there is more potential? It is certainly going to be challenging having such a significant market share. You are not going to get much growth out of the existing products and base, but again, we are always looking at innovative ways to grow the business. Data services are one area for growth as are tailored customer solutions. There are other new areas that can potentially grow new revenue streams including managed services where companies want to outsource their non-core services. Your competitors had a headstart because they realised that this is going to be the wave of the future. Do you think that you are trying to catch up lately with them or are you already there? Actually, I think that our competitors are trying to catch up with us. I think there was an expectation that Omantel Business would have to struggle in 2011 because of our market dominance, but at the end of last year, we grew. We probably have a port-in to port-out ratio of 4:1. Again, with an 80 percent market share that is a fantastic statistic. We didn’t have any significant fixed customers leaving us last year which is a very good result.
Has Omantel business been able to cope up with the demands of the customers? Oman is a large country with a small scattered populace and that is one of the biggest challenges. Many of the cities are separated by vast distances and the terrain is also rocky and construction is challenging. So the cost of installing infrastructure requires much more capital. To keep pace with the needs of customers, Omantel has had the foresight to introduce the most advanced technologies, to cut costs and speed up network installations. In the last three years we invested in excess of RO300m for infrastructure alone. Omantel has recently embarked on Omantel Business Alliance initiative. What sort of value you are willing to bring out of this initiative to your corporate customers? We recently launched the Omantel Business Alliance, a forum that brings together professionals from Oman’s business community and seeks to recognize and foster leadership. Through Omantel Business Alliance, our aim is to connect with some of the best and brightest business minds who significantly impact our world. At our launch event, we invited Randi Zuckerberg, the former director and head of marketing, Facebook, as the guest speaker. Randi was a key force behind one of the world’s greatest brands today leading marketing at Facebook for six years. The guests at our first Business Alliance conference had a thoughtprovoking and interesting session, on how social media has revolutionized marketing strategies the world over. Randy spoke more specifically about how some of the world’s leading multinationals are growing and interacting with their customer base through this communication medium. We hope that Oman organisations will benefit from the experiences and insights of the luminaries we invite. There are many more exciting and inspiring events in store, which we hope to unveil in the months ahead.
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COVERSTORY
YOUNG EXECUTIVES TO WATCH OUT FOR NTI BizPro Awards 2012 were presented to young achievers after a rigorous filtering process by KPMG. Mayank Singh and Visvas Paul D Karra report
T
he NTI BizPro Awards 2012 were presented in a glittering ceremony at the Grand Hyatt Hotel, recently. Anisa Al Raissi, a 2009 recipient of the NTI BizPro Young Achievers award and the master of ceremonies for the evening commenced the proceedings by inviting Hani Al Zadjali to deliver a welcome address. A winner of the 2010 Young Achievers Award, Hani said, “NTI BizPro has been recognising and rewarding the most important asset of any organisation, which is human resources. It is this resource that takes a company from good to great and today we are celebrating our future.” Khalid Ansari, partner, KPMG gave a detailed presentation on the evaluation process. BizPro Awards 2012 got close to 100 nominations, out of which 10 candidates made it to the pre-final stage and five to the grand final. Khalid added that the nominees were judged on skills, decision making acumen, result orientation, presentation and communication skills. HH Sayyid Tarik bin Shabib al Said, director, Renaissance Services and Stephen Thomas, CEO, Renaissance Services were invited on stage to present the NTI BizPro Awards 2012 to the three Young Achievers who had emerged as the winners braving a long and tough assessment process. As Raissi announced the names of the three winners – Murtadha Al Lawati, head of corporate communications, Ahlibank; Abbas Hassan Al Lawati, manager, equity group investment
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banking, BankMuscat and Sami Mohsin Al Sheikh, general manager, human resources, Enhance – the august gathering burst into spontaneous applause. Each one of the winners were presented with a trophy and a certificate. In addition, Renaissance Services awarded a scholarship of RO2,500 to the three winners. In his acceptance speech Mohsin said that this honour had placed greater responsibility on his shoulders. Abbas felt that young Omanis can achieve the unachievable through dedication and hard work. Murtadha elaborated on his beliefs like self confidence and learning from failures. The special guest of the evening Yuthar Al Rawahy, chairperson, The National Association of Cancer Awareness (NACA), in her speech talked about corporate citizenship and the growth of NACA over the years. “Learn what is unique in you and build upon it,” added Yuthar. Lawrence Alva, CEO, NTI presented Yuthar with a token of appreciation. Amaar Sulaiman al Rawahi, a BizPro winner from 2011 delivered the vote of thanks expressing his gratitude on behalf of NTI to everyone who had attended the function. As the curtains came down on NTI BizPro Awards 2012, its time to look forward to the next edition of the awards. In the following pages we profile ten young Omanis who made it to the pre final stage of the NTI BizPro Awards. Keep an eye out on these talented youngsters as they are destined to go places.
COVERSTORY
Oman Football Association (OFA), as its director – media and communication. OFA was a life changing break as it gave me a chance to showcase my abilities to communicate, and HH Sayyid Khalid Al Busaidi, Chairman, OFA gave me that opportunity. I travelled all around the world with the national team and had a wonderful experience. I joined Ahlibank seven months ago as the head of corporate communications. I am a news presenter on Oman TV and have five shows on radio. I have recently been elected as a board member of the National Cancer Association and I am also on the board of Oman Cycling Association.
Murtadha Al Lawati Age: 28 years
A versatile persona Murtadha Al Lawati, HeadCorporate Communications, Ahlibank has refused to be strait jacketed in one discipline by developing his multifarious talents Can you give us a brief on your educational and professional background? I graduated from the American University of Sharjah with honours in international studies with a concentration on international economics. I was involved in a number of extra-curricular activities in college. I was the president of the Omani Cultural Club for two years and our club was voted as the best social activity club in the University. In my final year I ran for the presidency of the student government. It was a difficult task but I won with 68 per cent of the votes. I came back and joined E&Y in the transaction advisory team. I went onto work with BankDhofar and Bank Sohar. I joined Bank Sohar as an assistant manager in premiere banking but within six months I was shifted as senior manager – corporate banking handling government liabilities. After three years I shifted to
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You are a banker, TV host, radio jockey and an office bearer in various associations. How do you manage these responsibilities? I am good at managing my time. I plan ahead for the week and see as to where my TV and radio slots are and make sure that nothing overlaps. I also make sure to communicate to the head of the TV station about the days where I am free in advance, the same goes for radio as well. If you do not enjoy what you are doing, you get tired, but if you enjoy what you are doing, it comes naturally to you. You are one of the winners of the NTI BizPro Young Achievers Award 2012. What are the values that have enabled you to win this accolade? I am good at communicating and motivating people. One thing that people do not realise is that there is a big difference between being a manager and a leader. As a manager you delegate work to people, while as a leader you delegate authority and let people do the work. I am good at doing the latter. You are a role model for young Omanis, what advice would you give to the youth of the country? My advice is simple – ‘nothing comes easy in life.’ Secondly, the couple of things that are important in life is having faith in yourself and cultivating the right attitude. If you do not have the right attitude, you are never going to get anywhere in life. Whatever skills that you get from your education is just the start of your journey and there is still a lot more that you need to learn and do before you can reach a stage where you can lead people. Be patient and take all the opportunities that come your way and make the best out of them. You have achieved a lot in a short span of time. What are your future plans and aspirations? I want to stay and grow in Ahlibank, but somewhere down the line I want to get involved with reshaping the interaction between the government and society. This can come about either through the media, radio, TV or being involved with the government itself.
COVERSTORY
Work is worship From being a part-time waiter while studying to becoming a GM is truly a tremendous progression for anyone. Sami Mohsin Al Sheikh, GM - Human Resources, Enhance Operating Companies Oman, says it has been all hard work and perseverance
What do you want to be in the next five years? I believe in working hard and doing my best, and the opportunities will follow. The sky is the limit. But I will not limit myself to one industry. I have proven to myself that I can do anything as long as I put my mind to it. Probably, I will eventually start a hotel on my own.
Sami Mohsin Al Sheikh Age: 34 years
Your comments about winning the NTI BizPro Young Achiever Award? It is an honour to be granted the BizPro Young Achievers Award for 2012. This honour has fuelled my purpose to impact and improve the lives and skills of my countryâ&#x20AC;&#x2122;s women and men through the role I play in human resources. I will continue to work hard using the combination of my professional and educational experiences. How do you feel about being one of the youngest HR manager in the country? I think our success depends on the dedication of our employees. I am managing a team of 18 people in my department and we have been working hard to ensure that our company is a great place to work. We put a strategy in place to develop our local manpower and create opportunities for career progression. Another practice, amongst many other initiatives, is the reward and recognition programme for our employees. I have to lead my team with a lot of patience and perseverance which no school or executive programme can teach. The more we help others to achieve, the more we become better. Once the team becomes better, the company becomes strong.
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But I would like to tell the youth of the country to have an open mind and an attitude that helps you to work hard. Any form of work is worship. I would also like to state that giving it all and proving your worth is more important. The fruits will come later on. A lot of people donâ&#x20AC;&#x2122;t realise that. There is no substitute to hard work. That is the key. Life will try to beat you down but you should know how to get up. Can you briefly elaborate on your career progression? Way back in my college days in 2002 at the Northern Arizona University in the US where I studied for my bachelorâ&#x20AC;&#x2122;s of science in hotel restaurant management, I worked as a bus boy/ waiter/ bartender. After returning to Oman, I joined the Al Bustan Palace InterContinental Hotel as assistant banquet and conference manager. Then I progressed to become the restaurant manager at the Beach Pavilion Restaurant, Pool bar & Garden service and was later the assistant banquet and conference manager for two years till 2007. I quit that and joined Left Bank as its outlet manager and later I got the opportunity at Enhance as a business development manager, retail solutions. Soon one thing led to another and I made an internal shift and was promoted as the GM, human resources, in April 2011.
COVERSTORY
but if you are bounded by your own bubble, the chances are that your success will be limited as the market is all about interaction and team work. I have worked on improving my inter personal skills. In my family and department they call me Dr Phil, after the famous talk show host Phil McGraw, who guides people to solutions. Thirdly, if you have been given a responsibility, you should finish it and prove that you can do it regardless of constraints like work pressure and time. I also believe that if a person does not want to achieve anything in life, then his life is useless. You need to challenge yourself and do something that is different from others. Achievements give you personal satisfaction and recognition. I am the second Omani in BankMuscat to do a CFA.
Abbas Hassan Al Lawati Age: 28 years
Banish the watch A focussed approach has helped Abbas Hassan Al Lawati, Manager, Corporate Finance and Advisory, BankMuscat to achieve success at a young age
You were one of the winners of the NTI BizPro Young Achievers Award 2012. What are the values and attributes that have enabled you to win this coveted accolade? I have been raised up with the values of commitment, dedication and responsibility. If you look at your watch while working then your career progression will suffer. I believe that there are certain key areas that people should develop in order to grow. The first amongst them is learning. This should be a continuous process. Learning can be either theoretical or practical. I completed my CFA, which strengthened my theoretical knowledge. Simultaneously, I have also enhanced my job skills by observing my seniors and doing soft skill courses. The second prerequisite for success is to be a people’s person. You may be strong and talented,
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Can you give us a brief on your educational and professional background? I studied at the American University in Sharjah with a specialisation in accounting and finance. After completing the course I joined BankMuscat in February 2006 as an associate in the corporate finance department. The nature of our job (department) is such that one cannot work on an 8.00am - 3.00pm schedule, one has to be there based on the demands of the assignment on hand. I have learnt this and this has enabled me to shoulder more responsibilities and do well. You have achieved a lot in a short span of time. What are your future plans and aspirations? I want to contribute to the country by transferring my skills, knowledge and experience to the younger generation of Omanis. This can be done through various means like giving lectures, participating in seminars etc. Every young Omani needs to have a good education, commitment, hardwork, and they need to feel that they are working for their own benefit and the betterment of the country. Are there people who have influenced you or helped you by being your role models? It’s important to have a mentor in your mind. If you see your superiors you can learn the traits that have enabled them to reach there. My mother is the person who has built my base in life. On the first day of my job she said, “Don’t look at your watch, once you get into the office just focus on completing your work.” You are a role model for young Omanis, what advice would you give to the youth of the country? Explore what you are good at and once you have figured it out then focus on achieving it with full dedication, commitment and hardwork.
Achiever par excellence Suad Al Balushi, Manager, Treasury Support, Treasury and Capital Markets, BankMuscat has a number of firsts to her credit, and is determined to continue her pursuit of excellence
Can you give us a brief on your educational and professional background? I started my career in BankMuscat in 2005. I graduated from Sultan Qaboos University (SQU) with a bachelor’s degree in finance with honours. I was also in the dean’s list for three years; you make it to the dean’s list if you get a CGPA of 3.5 and above out of four. I joined the treasury department of the bank as officer treasury and started working on getting an ACI certification. I am the first Omani lady-and probably the first lady in the GCC- to complete an ACI certification. I also did an MBA from SQU and graduated last year with distinction and honours. You made it to the top five of the NTI BizPro Awards 2012, which reflects your success at a young age. What are the attributes and values that have enabled you to do well? Learning is something that inspires me. In whatever field that I am in, I want to be the first one who is professionally competent. For example, I had decided that once I graduate I will start working on getting my professional certificate in finance. I am currently pursuing my CFA. I am good at dealing with numbers. While doing my degree course I did my internship at the Central Bank of Oman, where I worked in various departments, and there itself I had decided that if I got a chance to work in a bank, I would like to join its treasury department. When I joined the bank I was not aware of what an ACI certification is but my manager supported me a lot. He told me that since no one else has done this I should get an ACI certificate in the first year itself. Getting an ACI helped me to get recognised at a very early stage of my career in the bank. I have been involved
with various initiatives in the bank – for example, I was a member of a the core committee of a new group called BM Minds, which used to organise knowledge quizzes, lectures etc. I am now a part of the BankMuscat IMD initiative. My father has been another big influence in my life. He asks me never to stop learning, and even now he is advising me to do my PhD. Whenever I get a certificate, he is the first person whom I go and show it to. Having been through the NTI BizPro programme, what are your thoughts on these awards and its role in fostering Omani talent? This is the first time that I heard about the NTI BizPro Awards. I was not aware of this programme, but once I was nominated by the bank and went through the process I found it to be a tremendous and wonderful initiative. The programme encourages young Omanis to be role model for others. It has also been a good learning process. How do you spend your spare time, are there certain hobbies that you pursue? I am into painting and used to play table tennis. At SQU I won a gold medal in table tennis at the sports day of the College of Commerce and Economics. I have been interested in painting since my school days and have represented my schools in various inter-school painting competitions. You are a role model for young Omanis, what advice would you give to the youth of the country? We are a growing and young country. To build the nation it is essential that we foster education and knowledge. Young Omanis should acquire more professional certificates so that they can compete in the global market.
Suad Al Balushi Age: 27 years
COVERSTORY
Change and adapt Hard work and determination are two important requisites to progress in one’s career, says Nabil Saif Al Jasri, Finance Manager, OMRAN
me. The tests which were conducted as part of the interview to select the top 10 gave me confidence to believe in my capabilities. More than anything else, it was a personality test for myself as they grilled us to know what kind of knowledge depth we have. As part of the tests, our logical thinking ability and how updated we are on current affairs as well as our mathematical skills were examined. In the second round, it was about our managerial skills to check how we react to different situations. Finally, there was a group discussion and an interview to see how we can solve problems at work place.
Nabil Saif Al Jasri Age: 34 years
Please give a brief description about yourself I am 34 years old and currently working as finance manager with OMRAN (Oman Tourism Development Company). I completed my graduation at the Sultan Qaboos University and did an MSc in finance from the University of Strathclyde. My first job was with BankMuscat as assistant manager – audit and was with them for five years till 2005. During this period I completed my master’s. Later I worked with HSBC and Oman Refineries and Petrochemicals Company; and I joined OMRAN in June, 2011. Through my career, I faced a number of challenges and I have learnt that working as a team is very crucial and more importantly I discovered that motivating the team is also essential. What was your experience with the NTI BizPro Young Achievers Awards 2012? I have been selected among the top five of the NTI BizPro Young Achievers Awards and it has been a completely rewarding experience. It was an intense selection process which brought out the best in
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Before NTI BizPro, I didn’t have any inkling about my own capabilities but now I have emerged stronger and I feel that I can handle pressure and work in any field or industry. You have risen up the ranks by your hard work and determination. What is your message to your peers and the youth of the country? I can say that only by sheer dint of hard work and determination, one can achieve success. Ultimately, its all about changing and adapting to situations. One cannot stay still while the world around you is changing. Another thing is, our youth need to, first of all, attain the right qualification and exposure and then get the required experience to succeed in life. Because I believe that in our country, all of us are equal and everyone has an opportunity to become big if you want to. You just need to motivate yourself and get the right attitude for the job. What are your plans for the future? I plan to go for a leadership training programme and complete my certified management accountant (CMA) course. This will give a further boost to my career and eventually, I hope that I will be able to become a CFO.
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COVERSTORY
what are your thoughts on these awards? I am really impressed by the NTI BizPro competition. It is a challenging programme which strives to find the next generation of young achievers or leaders of the future. It creates awareness amongst the youth about working hard and looking up to the future. Some of the analytical tests during the programme taught me a lot and showed me the areas that I need to improve upon.
Nawaf Al Shahwarzi Age: 28 years
Patience pays Nawaf Al Shahwarzi, Assistant Sales Manager, Al Bustan Palace - A RitzCarlton Hotel has cultivated the right attitude to excel in his chosen field
What made you chose the hospitality industry and what are the challenges that this sector throws up for young executives? I joined the hospitality industry because it is a promising one. One day we may run out of oil and there will be a need to look at other sectors. The government is trying to promote tourism in a big way and the outlook of the hospitality industry looks really good. I see this as a good long-term career choice. Hospitality is an attitude, you need to be at your best behaviour while dealing with customers, so attitude is a big part of getting the job right. Despite its challenges, I am enjoying what I am doing. I have had a number of offers from other industries, but being in a hotel is an everyday challenge and I live that adventure. You made it to the Top ten of the NTI BizPro Awards 2012, which reflects your success at a young age. Having been through the NTI BizPro programme,
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Are there people who have influenced you or helped you by being your role models? When I joined the hotel back in 2009, Al Bustan was run by the Intercontinental Group. One of my general managers, Martin Van Kam told me that he saw potential in me and gave me the enthusiasm to go on with my hospitality programme. Van Kam asked me once, “What do you want to be”? I replied, “I want to be a manager.” Then he said, “No, you want to work on being a manager.” This showed me that one has to work hard and grow towards a managerial position. These simple words really inspired me and he remains a role model for me. My father has been my biggest support in my life; he told me about the hospitality programme and encouraged me a lot. He has made all my dreams come true. Can you give us a brief on your educational and professional background? I started working in Al Bustan Palace in June 2011 after obtaining a diploma in hospitality from the Gilion Institute of Hospitality, Switzerland. I did my first internship in this hotel in 2009, I also did another internship in Montreal, Canada at the Novotel Hotel. I joined the hotel as a sales executive and I am handling government sales, banking and the public authorities. I got promoted as the assistant sales manager in January this year and that was a nice boost and recognition. After doing my high school diploma from the Royal Guard Technical College I worked with Gulf Air for two years in the customer service division. How do you spend your spare time? Are there certain hobbies that you pursue? I had a weight problem as I used to weigh 180kgs. I lost 40 kgs within six months by regular exercise and following strict diet regimen. Now it has become a daily habit; after work, I go to the beach with my dog and walk for almost one hour. I now weigh 138kgs and hope to bring it down further. You are a role model for young Omanis, what advice would you give to the youth of the country? My advice for them is simple: be patient. You need to start from bottom and then improve yourself and grow. Secondly, develop the right attitude and do not be judgemental or react emotionally.
Build a strong foundation Ali Al-Mandhari, Manager-Change Management, Operations Department, BankMuscat believes that his success is a result of unwavering dedication and passion
Can you give us a brief on your educational and professional background? I started with BankMuscat in1998 as a trainee, and have worked with the bank for 14 years. While working with the bank, I completed my bachelor’s degree in banking, finance and international trade from Victoria University, Melbourne, Australia. I came back and joined as a senior staff. In 2005 I went again to Melbourne to do my master’s in business and finance with a specialisation in financial risk management. I came back in 2006 and was posted as an assistant manager in the central operations department. In 2008, I moved to my new department which is change management. In this capacity I am involved with process re-engineering in the organisation. In 2011 I got promoted as a manager. You made it to the Top 10 of the NTI BizPro Awards. What has enabled you to do well at a young age ? It is the result of my dedication and passion towards my work. Banking runs in my family as my father worked in Grindlays Bank as a manager and he has always been my role model. At BankMuscat, I like the challenge that comes your way on a daily basis. This helps one to learn and grow all the time. You can learn a particular process, but the changes in a system or the regulatory framework keep one on one’s toes. I believe that one’s learning curve should never stop. We find a number of young Omanis shifting jobs every few years. What has made you work at BankMuscat for 14 years? The opportunities and challenges that BankMuscat offers is unique. Our customer base, branch network and market share is the largest in Oman and this ensures that one has a larger canvas to operate on. The culture of the bank and the leadership of the bank is admirable. We look upto
the senior management and want to be like them in future. Moreover, the bank facilitates your growth, it encourage us to train ourselves and we have some of the best trainers from around the world coming and educating us about leadership, team work, project management etc. building our expertise. How do you spend your spare time, are there certain hobbies that you pursue? I am into photography and combine it with my other hobby which is trekking. I do a lot of trekking with my colleagues in the bank. Photography is something that I have been passionate about for a while, but to get the right equipment and cameras took some time. I like nature photography and portraits, but the latter is specifically for family members. Trekking is a part of BankMuscat’s staff engagement programme. The programme started in 2011 and we trek under the guidance of Hamad al Harthy, the ace mountaineer who has scaled Kilimanjaro. We trek in different locations, for example, we went to Jebel Akhdar and trekked for around 30 kms over seven hours. We also did Jebel Shams, at times we trek along the Baushar mountains for three to four hours. I also like to read books about technology, photography, leadership and managing teams. You are a role model for young Omanis, what advice would you give to the youth of the country? My advice to youngsters is that they should take it easy and not rush into things. Build a solid foundation, gain knowledge and experience gradually and surely but steadily you will reach where you want to be.
Ali Al-Mandhari Age: 34 years
COVERSTORY
No free lunch in life Mohammed Abdullah Al Shukaili, Manager, Billing & Operations Support, Customer Care â&#x20AC;&#x201C; CBU, Omantel has faced numerous challenges in his job which have helped him emerge as a strong leader
Mohammed Abdullah Al Shukaili Age: 33 years
Can you talk about your career progression? After my high school in Oman, I got a scholarship to Canada where I graduated in software engineering and computer science in 2002. My first work experience was with Omantel as a software programmer in the billing system which is the main part of any telecom company. After six years as a software programmer, I found out an internal vacancy for a manager in the billing and operations department. I applied for that and got it. It was a big move and I soon discovered that there was another part to me which I had never discovered. But actually it was a challenge. Earlier, I did not have a team but now I had to assume a leadership role as I had around 13 people around me. It took time but I managed to handle the responsibility in a worthy manner. During my years of study in school, I used to be an active member in radio and broadcast group where I had to present the daily programme in front of the students and also among the press reporters, other groups and voluntary workers, and I also did workshops which helped me in building self confidence and creativity skills.
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What kind of projects did you handle in Omantel, especially after becoming the manager for billing and operations support unit? Working in the billing system gave me a rich experience and I worked on various projects like Blackberry services, number portability and was the project technical leader many times. After I became the manager for billing and operations, my first big project was the bill payment machines. This was good for me because it allowed me to interact with vendors, logistics and the installation departments. We have presently 63 of those machines across the country installed within a span of two years. What is the next step for you? The billing and operations is the most vital department and I have been in this for almost nine years. Now, I want to add some marketing skills into my portfolio. Then when I achieve that, I will be able to fill up any leadership shoes because by then I will have experience in all aspects of a telecom company. Just having titles and a nice salary is not enough but your career progression should happen when you have the right experience; then only can you fulfill your responsibilities properly. Who was your role model? My father who retired after working in Schlumberger is my greatest role model. He was the one who taught me to work hard and accept the challenges that life throws at me. And my message to Omani youth is that there are no free lunches in life. Work hard initially, and learn as much as you can, and once you gain experience then you can work smart.
COVERSTORY
are all in well to do jobs in various companies. One of them is a journalist with Al Shabiba as well. I could say that I had an ambition and drive to be at the top and not settle for anything less. I now manage the whole business for my company from Sohar, covering Suwaiq, Buraimi all the way up to Musandam. I am looking after the logistics, sales and the filling stations business. All this is possible only due to my company which has been very supportive of me. What is your opinion about NTI Biz Pro Awards? This is something unique for our country. As you know, usually, we get recognition for excellence only in schools and colleges but competing against peers and contemporaries from other companies who excel in their fields is something good. I feel it is an interesting challenge and an opportunity to learn and shape our skills while learning from the experiences of others.
Saud Ahmed Al Shezawi Age: 30 years
Ambitious achiever Saud Ahmed Al Shezawi, Regional Manager, Sohar, Oman Oil Marketing Co was quick off the block to maximise on the management’s continuous support and encouragement
Can you talk about your career progression and how you became the Sohar regional manager for Oman Oil Marketing Co? I completed my bachelor’s in business administration (BBA) in management information systems from the California State University in 2004 and worked for Gulf Stone Company as a senior sales marketing and sales executive for one year. Then I joined Oman Oil Marketing company as fuel cards business manager in 2005. From there on I climbed many positions and became the regional manager thanks to the encouragement from my mother and especially my siblings who
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How do you view yourself in the next five years? I want to learn more. I want to grow more and attain a senior position. And I know that this is possible because my company has a very encouraging environment. Our senior management has given us independent responsibilities which enables us to take decisions and face any new challenges and execute the required tasks. We also constantly learn from our seniors. It’s a totally vibrant culture and I could say that we have a very youthful culture which encourages the staff to excel in their roles. What is your message to the youth of the country? I would urge them to take the opportunities and excel in your job. The most important skill essential for young Omanis to do well in life is the ability to learn things quickly and apply what you learn in your life. Everyone should aim to have strong communication, planning, implementation/ execution skills, as these are important to succeed in a challenging business environment. What are your achievements in your career? During my five years at the California State University, I got a number of awards as the best student. I was among the top three per cent of graduates and received the Magna Cum Laude Certificate and was judged as being amongst the top five per cent in the business school of the university. I got the ‘Best achievement in collection’ award in 2007 in my company and was also named as ‘Manager of the year’ in 2008. While studying at the Sohar Secondary School, I had scored high marks in all subjects paving the way for me to bag a fully funded Ministry of Higher Education scholarship for further studies abroad.
Knowledge is important Wherever you can get knowledge, go for it and you should not be afraid of challenges if you see a career and success in it, says Ali Ahmed Mohsin Al Lawati, Senior Manager â&#x20AC;&#x201C; Senior Dealer, Global Treasury, National Bank of Oman
You are working in the treasury department which is a risky area. How challenging has been it for you? If you look at my career, I actually studied to become an electromechanical engineer. But after my graduation from the Al Khuwair Technical College in 1996, I did not get any good offer. So I joined the National Bank of Oman (NBO) in the operations department in the year 2000. Then I found the job very interesting and did my CAT (Certified Accounting Technician) from the then Banking and Finance Institute which is now become the College of Banking and Finance. At that time, they had a tie-up with the Arab Academy in Jordan. I also would like to acknowledge that I have the support of my department head Manjith Wadhwa who has been encouraging me ever since I joined. On the career front, I moved from the operations to the back oďŹ&#x192;ce of the treasury department after three years. I manage the interbank forex and money market which I learnt in the bank itself. This is an area which everybody cannot undertake because of the risk involved. I deal with banks mainly in Europe. It was a great opportunity and a great challenge because there is so much risk in buying currency, buying and selling money which runs into millions. I joined as a dealer, and in 2009 I became a senior dealer as a functional title. You are enjoying your job presently. Where do you see yourself in the next five years? The next thing for me is to be the chief dealer before thinking of any other position. Because each level has its own experience and leadership skills. Ultimately, it is about managing people and that is very important. What is your opinion about NTI BizPro Awards? It is a good way to find the leaders in the market,
the future leaders actually. And from the interview and the tests that are conducted, you can figure out what they are doing currently and where they will be reaching in five to ten years. They were also looking at our reactions when they question us. For example, during my interview round, they informed that two of my colleagues had complained against me. But I was confident that they would not, however, they insisted that it was true. Then finally, I was told that they wanted to check my reaction to such a situation. It was really good as it was a way of knowing your character. What is your message to the next generation? Always think about your studies because knowledge is important. In terms of opportunities, you should think twice before saying no. Self motivation also is important. Further, I think our youth should make reading as their main hobby. Another view of mine is that young Omanis should invest in housing which is more important than having a fancy car or flashy mobile phones. They can pay the rent money as EMIs for a housing loan.
Ali Ahmed Mohsin Al Lawati Age: 32 years
ENVIRONMENT
CASHING IN ON CLIMATE CHANGE Reducing your company’s carbon footprint heightens customer appeal and boosts green brand recognition. Another big incentive is the thousands of dollars that a corporate can save. Visvas Paul D Karra delves into the business perspective of environment protection, carbon footprint and carbon trading
T
he Sultanate of Oman is among the top 15 countries of the world that have the world’s highest per capita environmental footprint, according to a recent report by the World Wide Fund for Nature (WWF). The Living Planet report, conducted with the Global Footprint Network and the Zoological Society of London, puts the Omani per capita environmental footprint higher than 140 countries in the world. The other Gulf Cooperation Council (GCC) countries in the top 15 include Qatar, Kuwait and the UAE. Oman is at the 14th position globally. The Living Planet Report measures humanity’s need for natural resources such as land for crops and grazing, fishing area, forests and others against the planet’s ability to produce these resources. Although Oman’s total environmental footprint is well below one per cent of that of the rest of the world, its per capita footprint, which is close to six global hectares (gha) per person, is much higher than the global average.
GREEN SAVINGS Wal-Mart cut its GHG emissions by 200,000 tonnes through the implementation of a transportation strategy that improved efficiency by 38 per cent and saved $200mn annually. GlaxoSmithKline’s carbon footprint over a three year period across 65 countries and 200 sites accounts for 2.2 million tonnes of CO2e (e=equivalent). Carbon footprint exercise has helped to cut over 84,000 tonnes of CO2e and saving about $6mn in energy costs. Walkers, the British snack food manufacturer operating in the UK and Ireland, has reduced its carbon footprint by 7 per cent – equal to 6 gram of CO2e per standard bags of crisps — an overall saving of 4,800 tonnes of CO2e and $6.3mn over two years.
this equation is called an ecological footprint. A carbon footprint is a subset of this ecological footprint, and is simply a conceptual measure of the impact individual human activities have on the environment.
Climate change So what is the significance of this ecological footprint for Oman? Scientists have long measured human demand on the Earth’s ecosystems versus its capacity to regenerate:
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The term carbon footprint owes its origins to the idea that a footprint is what has been left behind as a result of individual or industrial activities. On an individual level, you contribute through burning fossil fuels by heating
and supplying your home or business with electricity and through the modes of personal transportation that you choose. In industrial or commercial applications, a carbon footprint includes the total carbon dioxide (CO2) and other gases which cumulatively are known as green house gases (GHGs) accumulated over the full life cycle of a product or service. The GHGs are responsible for climate change and the subsequent global warming. According to a report by Ernst & Young (E&Y), climate change presents a new and real threat of severe environmental, economic, political and security impacts in the Middle East & North Africa (MENA) region. For a region that is already vulnerable to many non-climate stresses, climate change is more likely to increase this vulnerability. On a global scale, climate change is not only a serious and growing threat to the environment and human health, but also to economic systems. Worldwide economic losses from natural disasters appear to be doubling every decade and if the current trends persist, annual economic losses will reach almost $150bn in the next decade. The effects of global warming are alarming to say the least. There has been increase in average atmospheric
Rajeev Singh, Partner, Transaction Advisory Services & Velika Talyarkhan, Consultant, Climate Change & Sustainability Services, Ernst & Young Oman temperature which is expected to go up by 1-40C in the next 100 years. A rise in temperatures will lead to higher sea levels inundating low lying countries. Some of the other effects are abrupt weather changes, more frequent and intense heat waves and tropical cyclones, more floods, fast melting of ice at Arctic and Antarctic regions etc.
Companies in Oman can earn carbon credits for their emissions reductions. These credits can then be sold to companies in developed countries as per the Kyoto Protocol so that the companies in developed countries can remain within their carbon emissions targets. This process is known as carbon trading.
an earlier unexplored revenue stream, which is significant. So the key issue is that if you can add a few hundred thousand dollars every year for the next 7 - 10 years, I don’t think any CEO can afford to overlook that. In this case, you may be taking a commercial decision and incidentally you also become a good corporate citizen,” adds Singh.
Business opportunity
The value that a company can get through the carbon credit scheme per year is such that within four or five years a business can earn money which could run into millions of dollars, which is not small money. That is very attractive.
Ambitious initiatives
The scenario seems to be bleak but there is always hope if action can be initiated today. However, in the corporate world which is increasingly facing topline and bottomline pressures due to global financial uncertainty, making profits seems to be the most pressing matter as compared to worrying about climate change and global warming. But how would it sound, if someone told you that doing something about climate change can bring your company much needed savings and revenues? Yes, this is true and possible. And there are two ways of doing this. The first and the easiest is by leveraging climate change risk as a competitive advantage by launching ambitious carbon footprint reduction initiatives and the second way is by implementing the clean developing mechanism popularly known as carbon trading.
According to Rajeev Singh, partner, transaction advisory services, Ernst & Young, Oman, “there are two potential sets of clients for whom something like carbon trading becomes useful. One is for those who want to be good corporate citizens. They say, OK we want to measure what is our own carbon footprint as an organisation and see how we can reduce it and what are the best practices around the world.” “There are some other companies which get attracted by the commercial proposition highlighted by the value of the carbon credit scheme. A borderline business case can suddenly become commercially feasible with the help of
Companies in Oman are slowly understanding the need to reduce the GHG emissions and they are working towards it. For, by leveraging climate change risk as a competitive advantage and launching ambitious low carbon initiatives and addressing GHG emissions, companies can identify opportunities to bolster their bottomline, reduce risk, and discover competitive advantages. This begins by determining their liability to climate change regulations by measuring the carbon footprint of their business processes/products. An effective corporate climate change strategy requires a detailed understanding of a company’s GHG impact. OCTAL Petrochemicals, the largest PET sheet producer and integrated packaging company in the world operating from Salalah, is setting critical global industry benchmarks in
ENVIRONMENT
“We have also supported Port of Salalah in measuring their carbon footprint and now we are working with another company to implement their environment management system which will also help in carbon footprint reduction and could in the future lead to carbon trading,” Velika adds.
Geeju Paul, Senior Divisional Manager, Muscat Electronics energy and natural resource efficiency and improvement in mechanical properties. The company’s state-ofthe-art PET complex in the Salalah Free Zone was purposely designed and built to yield superior quality products with waste and cost reduction benefits, increased productivity for thermoformers and unmatched environmental advantages.
tonne is equivalent to driving 4,135km in an average passenger vehicle.” Such revolutionary technologies have been noticed by global companies which themselves are implementing greener processes and this has enabled the Oman-based OCTAL to bag manufacturing orders from all across the world.
Reducing emissions Says Nicholas P Barakat, managing director, OCTAL, “To date, the company has invested more than $600mn in environmental sustainability for the deployment of ground-breaking technology and propriety production methods to produce PET resin and PET sheet with the lowest carbon footprint in the world. We have successfully eliminated five energy-intensive stages of the conventional sheet production process, reducing 67 per cent of energy consumption. With the entire energy requirements derived from clean combustion natural gas, the specially adapted burners consume up to 20 per cent less gas. As a result, the company’s PET sheet, DPET, boasts 25 per cent lower carbon footprint than conventional APET as confirmed by Renewable Choice Energy and Intertek Expert Services. The reduction per
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“At the moment, we at E&Y are working with Haya Water to calculate the emissions they are reducing through their sludge composting project. Haya water has set up a composting plant to prevent methane (a greenhouse gas) from being emitted into the atmosphere, therefore reducing Haya Water’s carbon emissions,” says Velika Talyarkhan, consultant, climate change & sustainability services, E&Y Oman. What Haya is doing with the composting project, Kala is that they are reducing the methane emissions by aerobically composting the sewage sludge. So instead of sending the sludge to a landfill which could cause methane emissions, Haya is composting it and making a good product which can be sold in Oman itself. In doing so they are reducing their carbon emissions.
Companies in developing countries, like Oman, can sell carbon credits to companies in developed nations, including European countries, who have emissions reductions targets to meet. It is cheaper for the developed nations to buy the carbon credits than to pay the penalty for not meeting the target. Instead of trying to bring new technologies to bring down their emissions, which will be really expensive, it is cheaper for developed nations to invest in a developing country’s projects carbon reduction project. So in the specific case of Haya, the greenhouse gas they are reducing is methane (CH4) and that actually has a much larger global warming potential than carbon dioxide as it is 21 times more harmful than CO2 and more damaging to the environment.
Carbon management Global mining giant Vale, which has its pelletising plant in Sohar, has invested $40mn in technologies to reduce its Oman project’s environmental impact, such as electrostatic precipitators and a wind fence to control particulate matter emissions in Oman. The main source of GHG emission of the plant is during fuel consumption. But the site also has a continuous emissions monitoring system, and 100 per cent of the water used is recycled. “Vale’s very large ore carriers are also designed to reduce carbon emissions by 35 per cent per tonne of ore transported, a green feature that won us the Nor-Shipping Clean Ship Award in May 2011. Periodically, Vale reports to the Omani government about the GHG emissions monitoring and management of its operations,” says Najla Zuhair Al Jamali, head of business and strategic affairs, Vale Oman. Globally, Vale emitted 16 tons of
ENVIRONMENT
GHG emissions in 2011. However, Vale Carbon Programme, part of the company’s corporate guidelines on climate change and carbon, has the goal to make Vale a leader in climate change mitigation. The company works conscientiously and is revising its methodology for capital project development to include the use of alternatives to reduce the GHG emissions in projects’ engineering design phase.
Reducing carbon footprint Daikin, the air conditioner manufacturing giant, which has a large presence in Oman, is compliant with government of Oman’s directive to reduce the use of hydrochloroflourocarbons (HCFCs), which is one of the six major greenhouses gases depleting the ozone layer of the earth’s atmosphere.
and consumption of HCFCs will begin as of January 2013.
Oman is a signatory to the Montreal Protocol on Substances that deplete the ozone layer and the Ministry of Environment and Climate Affairs has issued a notification to avoid installing new air-conditioning systems or equipments containing HCFCs as the procedures for reducing the production
Geeju Paul, senior divisional manager, Muscat Electronics, which is a distributor of Daikin in Oman, says the Daikin Group focuses on reducing both fluorocarbon emissions generated during product manufacture and electricity used during air conditioner use, the major contributors to global warming.
Najla Zuhair Al Jamali, Head of Business and Strategic Affairs, Vale Oman “We strive to reduce environmental impact through the recovery and destruction of fluorocarbons during the processes of production, maintenance, and product disposal. In product development, we are shifting to refrigerant alternatives that do not deplete the ozone layer as we continue to work toward lessening the impact our business has on the environment,” adds Paul. One of the major technologies which helps reduce Daikin’s footprint is the VRV3 which has a proprietary inverter technology and cutting edge control technology for the refrigerant. The VRV3 air-conditioning system operates with outstanding efficiency and contributes to high energy savings and brings down the carbon footprint of buildings.
Nicholas P Barakat, Managing Director, OCTAL
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In conclusion, as the impact of climate change becomes more frequent and prominent, governments are expected to set new policies and provide additional market-based incentives to drive significant reductions in emissions. Businesses need to start planning for this transition now while they make decisions that will lock in their investments for years to come and more importantly there are many benefits if carbon management strategy is accounted for an early stage.
REALTY
Strengthening the
real estate sector
the development of such an eminent project in Oman shows the positive outlook of GCC investors towards investing in Oman and this is the most solid evidence yet of a strengthening growth in Oman’s real estate. Al Muthanna Square is located directly on Bayt Al Falaj Street, and located close to Sheraton Hotel. The development consists of five floors of office spaces ranging between 130 - 310 sq.m, in addition to ground and mezzanine floors that host 27 commercial showrooms. The development has covered parking space along with plenty of additional open parking space around the building, luxurious fixtures, modern amenities and state-of-the-art security systems. Commenting on the new exclusive appointment, Hassan Mohammed Juma, managing director of ERA Real Estate – Oman, an integrated real estate service provider says, “We are very proud to be part of this significant project. Al Muthanna Square is a perfect commercial destination with the project having matchless features, amenities, lots of car parking, and will host a variety of premium retail and office space aimed at serving the potential tenants and visitors of the complex.
ERA Real Estate-Oman has been appointed as the exclusive agency to manage the marketing, leasing and property management of Al Muthanna Square, the premium commercial mall development at MBD
S
heikh Nasr Bin Amer Al-Hosni, CEO of Al Muthanna Investment Company - Oman, a leading Kuwait-based investment firm, undertaking direct Islamic investments in various sectors such as higher education, manufacturing and providing consultancy services, unique financial solutions to corporates, financial institutions and high-net-worth individuals in Oman, has announced the completion of its premium commercial mall development, Al Muthanna Square project at MBD. The company has
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June 2012
appointed ERA Real Estate - Oman, a leading international real estate consultancy and property management company in Oman, exclusively to manage the marketing, leasing and property management of the same. Says Sheikh Nasr, “We have emphasised in our vision while developing this unique project on the importance of meeting the requirements of tenants and providing them with the uppermost standards of quality and amenities in the development.” He added that
With a strong reputation and an expert team with years of experience in the industry, ERA Oman provides integrated marketing, sales and leasing services, property valuation, consultancy and advisory services and complete property management services. Ismail Kamel, COO of ERA-Oman says that the complex tenants will also benefit from the added value services of the common business centre located on each floor in addition to comprehensive maintenance services and ample covered parking to provide the uppermost comfort for the tenants and their visitors. He added that ERA’s new site office was also established in the development itself, to offer potential clients the ability to view the available spaces in a smooth and prompt manner.
INTERVIEW
For a better
tomorrow Hussain Ali AbdulHussain, CEO, Haya Water discusses the company’s achievements, plans and challenges in an interview with Mayank Singh and Visvas Paul D Karra
You have joined Haya Water recently; what are your plans for the company? I joined Haya Water as chief executive four months back and we have a lot of ongoing projects underway as part of the long-term water reuse project, especially in the Bausher and Seeb areas and these are highly critical projects for us. In Seeb we have one Sewage Treatment Plant (STP) project, with a capacity of 80,000 cubic metre per day and five network projects. The focus at this moment is to get these projects completed by the beginning of next year and gradually finish all of them by the end of 2013. Once the Seeb project gets completed – which is one of the largest individual projects we are undertaking - it would improve our connectivity from the current 20 per cent to having almost 50 per cent of homes and commercial premises connected to the system across the Muscat governorate area. Meanwhile we have four projects in the Bausher area and one is almost complete while the other three will get completed sequentially in 2012, 2013 and 2014. Once these are completed the number of properties connected to the system will increase to 60 per cent. The Seeb and Bausher projects are Haya Water’s immediate priority, what is in store after these get completed? The roadmap for our overall water reuse project is to achieve 80 per cent connectivity in the Muscat Governorate area by 2018. After Bausher and Seeb we will focus on Al Amerat, Matrah, Quriyat and Muscat in that order. We have started planning for the new projects – the Al Amerat projects are in the tendering stage. In Matrah, we are working with Muscat Municipality for the rehabilitation of the area as this is a congested place and requires proper planning. Then we are planning for Quriyat, Muscat and Sidab. We are also working on our plan to expand our Al Ansab Plant and relocate the tankers discharge plant to a new location. What is Haya doing to reduce the inconvenience caused to people by it’s constant digging? Any major civil engineering and infrastructure project of this nature
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that involves connecting individual properties to a modern waste water system cannot happen without there being some short-term inconvenience for individuals. We are also operating in one of the most challenging urban environments in the Gulf with congested areas, narrow streets and the need to connect a much older city to the system. This means that our contractors often have to work very close to hazardous areas, because of electrical cables and septic tanks. Some of these tanks are very weak so they tend to collapse while the excavation is going on. And in certain areas the water table is very high, so halfway through the digging we find water. As a result of these challenging construction issues we do receive some complaints and of course individuals have every right to complain if they have concerns. And one problem we face is that some of the older septic tanks are actually inside the properties as I found recently on a trip to Wadi Adai where our contractors were working. So naturally if there is someone digging within the premises of your house there is bound to be some uncomfort. We have a call centre with a toll free number which works from 6am to 10pm. The centre receives any complaints and we follow this up with site visits to address such issues. I personally do site visits and speak to people and most of the time I have got very positive feedback for the work that we are undertaking. For example in Seeb we are also working in commercial areas and if you are digging a trench in front of someone’s shop, the entry of customers gets restricted. I was in Seeb recently and spoke to a few shop owners; all of them said that the digging was a bit of a distraction, but they had no issues with it and were happy to get our service. There are also many people living in areas like Baushar, Al Ilham and Qurum where people are asking us when we can start the project in their areas and connect their homes. But one of the benefits of our construction work has been our ability to use the same trenches and tunnels to lay fibre optic cables – thus ensuring that a
second round of digging will not be required for this service in the future. Will the delay in the current phases lead to sequential delays in the rest of the project? In a project of this scale and complexity – it is the first one of this magnitude in the GCC – it is very challenging to always keep exactly to schedule. Due to a number of unforeseen circumstances we have fallen a little behind schedule this year, but once we have the Seeb catchment area on line it will bring us back on schedule. And in a project of so many years we do have the opportunity to accelerate the remaining part of the project and catch up with the planned schedule. The delays happen due to various reasons – one is the lack of underground information from different authorities, obtaining NOCs from different authorities and the complication of site conditions. Why does it take a long time to get the requisite clearances for your projects? The sheer scale and size of our project means that we need to work with an enormous number of different organisations to ensure we can complete the construction we need to undertake. It is a huge challenge; each government organisation has its own mission and targets, for example Muscat Municipality is building roads and this affects our work. Then there are electricity and telecom companies which have to run their cables and we have to get permissions from them. There are other organisations that we need to coordinate and obtain NOCs. So therefore it can sometimes be a highly complex process we need to go through to secure the permissions we require. Why were STP projects given to companies which lack such expertise? A highly specialist project of this nature has never been undertaken in Oman before – which naturally means that the local expertise will not necessarily be on the ground. But there is a wealth of very experienced professional civil engineering companies with experience of large scale infrastructure
construction work. We are also seeing a lot of local companies entering joint ventures with international firms to deliver the project on our behalf. In Seeb one project is a joint venture between an Egyptian and an Omani company and another one is a joint venture between a Kuwaiti and an Omani Company. In Bausher there is a Portuguese company working with a local entities; the Darsait STP is being worked upon by a Spanish and Omani company. The local companies have also learnt a lot by working with others, and slowly we are taking on a lot more local companies on their own. What is Haya Water’s revenue model? We do generate our own revenues but we are still dependent on the subsidy from the government. At the moment the split between our own revenue and the government subsidy is around 50:50. We hope that over the years and as the Seeb projects get underway we will generate more revenues. We are producing 75,000 cubic metric cubes of treated effluent per day and we sell 75 per cent of our treated water. Our main customer is Muscat Municipality who use the water for irrigating parks and other public areas and we also supply water to Muscat’s three grass Golf Courses. Overall, the water reuse project is still within the allocated budget of RO1.8bn that will cover the whole of the Muscat governorate area. Can you give us a brief on your professional background? I graduated from the US in 1987 with a degree in mechanical engineering from the University of Arizona. I spent 14 years in PDO and grew within the organisation working in various disciplines like planning, project management, technical etc. I moved to Oman Oil Company as a technical manager and shifted to Oman Petrochemicals Industries Company which was a joint venture between the government and Dow Chemicals. I was the government representative in the venture. I then moved to Oman Refineries & Petrochemicals Company as the general manager for business development and marketing.
BYINVITATION
TEN COMMANDMENTS OF SCM Looking at supply chain management from a mathematical perspective throws up some interesting insights By Ambuj Khare and Anurag Saxena
I
Table 1
n todayâ&#x20AC;&#x2122;s world one has to compete globally and not locally like yesteryears. The world today has become so nimble that it is continuously changing and becoming more complex and competitive. Businesses in the information age must accept these changes and be ready to be more competitive and customer-focused. There is a global competition for labour and trade and operations are now supposed to be performed in real-time. Customers are demanding detailed information about products and services. Companies are facing problems in producing superior products in less resources and information is becoming critical for management decision-making. Owing to these pressures many companies are planning to reap the benefits of alliances with other companies. Supply Chain Management (SCM) is responsible for looking after such alliances and it seeks to make every step in the chain as eďŹ&#x192;cient as possible by ensuring good coordination between the alliances. The term Supply Chain Management (SCM) came to light in the 1980s. The intent of using this term was to express the need to integrate the key business processes, from end user through suppliers. SCM enables companies and corporations to get involved and work in a cohesive manner for the benefit of customer as well as themselves. A supply chain entails raw materials, suppliers, manufacturing, distribution, customers and consumers. Material from supplier to customer moves on in the supply chain and it is believed that a smooth flow of these materials only depicts the health of the supply chain. However in reality a supply chain
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Terms
DESCRIPTION
Operations
The systems that create and deliver the firmâ&#x20AC;&#x2122;s primary products and services
Distribution
After a product is manufactured it may be warehoused or shipped to the next echelon in the supply chain, typically a distributor, retailer or consumer
Uncertainity
Mismatch of supply & demand, Fluctuations in inventory & back-order levels, Insufficiency of Forecast, Delivery lead times, transportation times, part availability, natural & man-made disasters etc
Information
It is the ability to furnish critical data on product performance, process parameters and cost to internal groups & to external customers
Efficiency
Efficiency means doing something at the lowest possible cost. Goal of an efficient process is to produce a good or provide a service by using the smallest input of resources
Sourcing
It refers to a number of procurement practices, aimed at finding, evaluating and engaging suppliers of goods and services
Customers
Customers refer to individuals or households that purchase goods and services generated by a company
Effectiveness
Effectiveness means doing the right things to create the most value for the company. Goal of an effective process is to satisfy the customer
Logistics
Logistics is a part of the supply chain process that moves goods and services efficiently and effectively from point of origin to point of consumption, keeping customer service in mind
Costs
Involves cost of acquiring, transporting, holding, converting items as well as quality costs
Inventory
It is a list of things held in stocks. If a company has high inventory costs and no synchronization between stocks and demand, its product are bound to have higher costs and thus put that business in a bad position
Vendor
It means anyone who provides goods or services to a company. A vendor often manufactures inventoriable items, and sells those items to a customer
Integration
Supply chain management revolves around efficient integration of suppliers, manufacturers, warehouses and stores
Demand
Number of units required per period. This could be deterministic as well as probabilistic
Strategy
It means deliberately choosing a different set of activities to deliver a unique mix of value. It has three components Customer Management, Operations Effectiveness and Product Innovation
Quality
Ensures that things are done right the first time and that defects and waste are eliminated
Bullwhip Effect
If a company has erratic shifts in orders (Bullwhip Effect) along the supply chain, it is bound to face production and inventory problems
Crossdocking
Items are distributed continuously from suppliers through warehouses to customers. Warehouse rarely keep the items for more than 10-15 hrs
Walmart
One of the largest and highest-profit retailer in the world
Dell
Dell Inc. is an American technology-company based that develops, manufactures, sells, and supports personal computers and other technology-related products.
Performance
Performance describes the way in which an company performs
entails movement from and to many warehouses. There are many steps involved, many inventories maintained and lot of time consumed. SCM is actually so big that it can be difficult to exemplify each and every component of it. On a bigger canvas, the function of supply chain is to plan, organise, coordinate and control almost all the activities of the company. Let us revisit some of the terms commonly used in the supply chain scenario. See Table 1 to get a brief description of those terms. Let us take some key terms commonly used in the supply chain and do a little bit of mathematics on them. Let us see what these terms mean for the supply chain from a mathematical perspective. In Table 2 we have added the digit score (the position at which it appears in the English alphabets) of each of these terms and then taken the sum as the percentage of the sum of digit scores of the term “supply chain”. If we take the sum percentage as the relative importance for the
Terms
DESCRIPTION
Forecast
Forecasting is the process of estimation in unknown situations
Oreder Winners
The criteria that differentiates the products and services of one firm from another
Retail
Retailing consists of the sale of goods or merchandise from a fixed location, such as a department store in small quantities for direct consumption by the purchaser
Manufacturing
Manufacturing (from Latin manu factura, “making by hand”) is the use of tools and labor to make things for use or sale
Marketing
Marketing is the process of creating or directing an organization to be successful in selling a product or service that people not only desire, but are willing to buy
Human Resources
Human resource is a term with which many organizations describe the combination of traditionally administrative personnel functions with performance management, employee relations and resource planning
Finance
Finance studies and addresses the ways in which individuals, businesses, and organisations raise, allocate, and use monetary resources over time
Time
Involves time to market for new products as well as lead-times
supply chain, the results are absolutely attention grabbing. We can see what these terms mean for the supply chain from the “additive” perspective.
customers, integration, strategy, performance and logistics. Let us discuss inventory (relative importance 99 per cent) first; inventory is a list of things held in stocks. If a company has high inventory costs and no synchronisation between stocks and demand, its products are bound to have higher costs and thus the business will be in a bad position.
So if one wishes to choose 10 commandants of supply chain management they would be inventory, effectiveness, cross docking, information, operations,
Table 2 S. No.
TERMS
DIGIT SCORE
Supply Chain
19
21
16
16
12
25
3
8
1
1
Inventory
9
14
22
5
14
20
15
18
25
2
Effectiveness
5
6
6
5
3
20
9
22
5
14
5
19
3
Crossdocking
3
18
15
19
19
4
15
3
11
9
14
7
4
Information
9
14
6
15
18
13
1
20
9
15
14
5
Operations
15
16
5
18
1
20
9
15
14
19
6
Customers
3
21
19
20
15
13
5
18
19
7
Integration
9
14
20
5
7
18
1
20
9
8
Strategy
19
20
18
1
20
5
7
25
9
Performance
16
5
18
6
15
18
13
1
14
10
Logistics
12
15
7
9
19
20
9
3
19
11
Sourcing
19
15
21
18
3
9
14
7
12
Quality
17
21
1
12
9
20
25
13
Efficiency
5
6
6
9
3
9
5
14
Vendor
22
5
14
4
15
18
14
3
9
15
3
25
14
14
5
19
SUM
SUM
144
100
142
99
138
96
137
95
134
93
132
92
133
92
132
92
115
80
114
79
113
78
106
74
105
73
85
59
78
54
BYINVITATION
Table 3 TERM
PRODUCT OF VALUE OF ALPHABETS
SUM OF DIGITS
SECOND SUM
Supply Chain
92665036800
45
9
Operations
15513120000
18
9
Distribution
3518375616000
45
9
Uncertainity
900169200000
27
9
Information
100304568000
27
9
Efficiency
229635000
27
9
Sourcing
285053580
36
9
Customers
7982793000
45
9
1350934200000
27
9
2210619600
27
9
324900
18
9
26195400000
27
9
1663200
18
9
60011280000
18
9
Demand
14560
16
7
Strategy
119700000
18
9
Quality
19278000
27
9
8653381632000
45
9
510653127600
36
9
1291680
27
9
2880
18
9
6368544000
36
9
9234000
18
9
6743553264000
45
9
194400
18
9
458726224320
45
9
227026800
27
9
4446835848000
54
9
158760
27
9
11700
9
9
Effectiveness Logistics Costs Inventory Vendor Integration
Bullwhip Effect Crossdocking Walmart Dell Performance Forecast Oreder Winners Retail Manufacturing Marketing Human Resources Finance Time
A company could be very efficient but what matters more at the end of the day is effectiveness (relative importance 96 per cent) as effectiveness means doing the right things to create the most value for the company. Eventual goal of any business is to satisfy the customer. Next is cross docking (relative
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June 2012
importance 95 per cent), which is often used to maintain low level of inventory. Retailers like Wal-Mart have shown the benefits of using cross docking. Information (relative importance 93 per cent) is the ability to furnish critical data on product performance, process parameters and cost to internal groups and to external
customers value of information can never be ignored. It is said that in a supply chain information flow is as important as the product flow. Effective operations (relative importance 92 per cent) are again the core of supply chain as they are the systems that create and deliver the firm’s primary products and services. If operations are the core then customers (relative importance 92 per cent) are the essence as they are the ones that purchase goods and services that are provided through a supply chain. Further, a supply chain revolves around efficient integration (relative importance 92 per cent) of suppliers, manufacturers, warehouses and stores. Strategy (relative importance 80 per cent) means deliberately choosing a different set of activities to deliver a unique mix of value. It is used to define supply chain objectives. Performance (relative importance 79 per cent) describes the way in which a company performs and is indicative of supply chain health. And finally for logistics (relative importance 78 per cent), we can quote Strahan and Bodegraven (2004), “supply chain management and logistics are part of the same solution set, one filling the gaps, and one closing them. It is possible to have passable logistics without supply chain management. It is not possible to have a great supply chain without also having terrific logistics”. If one further probes into the multiplicative effect of the digits of these terms then we find something even more interesting. In Table 3 we can see what these terms mean for the supply chain from the “multiplicative” perspective.It is said that numbers are better tools than words if are making a business decision. We have thus reinforced the words/ terms commonly encountered in a retail supply chain with the help of numbers.
Ambuj Khare is the Senior General Manager, GENETCO, Oman, and Anurag Saxena is Professor of Management, Indira Gandhi National Open University, New Delhi, India.
Al Khamis Plaza – Tel: 24560992 Muscat City Center – Tel: 24558148 Al Khamis Shoes, Sohar – Tel: 26841178 Muscat Grand Mall – Tel: 24399930
INFORMATIONTECHNOLOGY
Deliver value Analysts at the Gartner Enterprise Architecture Summit 2012 reiterated the need for Enterprise Architecture to become business outcome-driven. Mayank Singh reports from London
A
disconnect remains between the way many organisations pursue Enterprise Architecture (EA) and the impact of EA on the business, which prevents EA from delivering business value, according to Gartner, Inc. EA practitioners need to re-examine old practices and shift their focus to deliverables that direct change and empower business and IT leaders to make better decisions. This was one of the big themes discussed at the Gartner Enterprise Architecture Summit 2012 (EAS) held in London, recently. The summit presented a unique confluence of disruptive trends from the nexus of cloud, social, big data and how mobile technologies are providing an unprecedented opportunity for EA practitioners to deliver business value from EA better than ever before. The summit not only helped organisations to navigate the nexus of change to deliver business value, growth and transformation, but also gave them a roadmap to master their core EA competencies that are essential for EA success. “Focusing on a standard EA framework doesn’t work,” said Brian Burke, research vice president at Gartner. “In the past EA practitioners
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focused on deliverables that were useful to enterprise architects but not valuable to senior management and/or did not respond to a specific business or IT need.” “We’ve witnessed a change in mindset, execution and delivery of EA. The value of EA is not in simply ‘doing EA’, but rather in how it can help evolve the business and enable senior executives to respond to business threats and opportunities,” said Burke. “EA leaders must shift their focus to create actionable and measurable deliverables that address specific business outcomes and work with other business and IT disciplines such as business process management (BPM), programme and portfolio management (PPM), business information (BI), finance and human resources to leverage their efforts and move to value-driven EA.” Gartner has categorised five types of deliverables that will help EA practitioners deliver business value from EA efforts. “EA practitioners need to find the right balance of resource investment (time, energy and money) between all of these deliverables, while understanding that stakeholders only value actionable and measurable deliverables,” said Burke.
Measurable Deliverables Measurable deliverables specifically measure the direct impact of EA on the business. Currently, less than 44 per cent of EA organisations worldwide have defined metrics and even fewer are focusing metrics on business outcomes. It’s often the case that many of these organisations measure what an EA team is doing, for example how many deliverables created rather than gauging the impact of EA on the business.
Actionable Deliverables Actionable deliverables drive change and must have a direct relationship to business outcomes and stakeholder requirements. Actionable deliverables present senior IT or business executives with a decision to be made or a specific action to be taken that moves the business toward a future state. Because actionable deliverables must invoke some change, they are easily measured - did the recommended change occur or not?
Diagnostic Deliverables Diagnostic deliverables include models, requirements and analysis tools that are designed to enable IT and business leaders to understand the impact of different decisions made in response to business disruption
or business opportunity. Diagnostic deliverables combine different views of a problem or opportunity to address a specific need. For example, for a durable goods manufacturing organisation that is trying to make a business and IT investment decisions on a new market/product opportunity, diagnostic deliverables might include an illustration of the critical affected business capabilities using a business capability model.
Enabling Deliverables Enabling deliverables are composed of information that is collected; they provide input to diagnostic deliverables that represent the business, people, processes, information and technology. For years, these have been considered the primary deliverables of EA. Enabling deliverables are collected from existing information sources, such as performance metrics, reports from PPM, or a business process diagram from BPM.
Operational Deliverables Operational deliverables are the artefacts that EA practitioners use to help them define, communicate and run their EA programme. These deliverables are largely focused on defining what EA practitioners “do,” and on positioning EA goals and governance structures. Examples of these operational deliverables are in the EA team charter, the EA steering committee and architectural review board charter. The other big theme of the summit was how EA practitioners can play a major role in ensuring their organisations maximise the business opportunities posed by big data. Big data makes organisations smarter and more productive by enabling people to harness diverse data types previously unavailable, and to find previously unseen opportunities. However, Gartner analysts said big data poses big challenges as well – and that’s where enterprise architects can help. As navigators of strategic change, the task for EA practitioners is to chart the right course for big data across the most critical dimensions of the
organisation: business, culture, talent and technology. “Traditional approaches to EA are significantly impacted by big data,” said David Newman, research vice president at Gartner. “For the EA practitioner, the balance shifts from a focus on optimisation and standardisation within the organisation, to lightweight approaches that focus on harmonisation and externalisation across the broader enterprise ecosystem. Big data disrupts traditional information architectures – from a focus on data warehousing (data storage and compression) toward data pooling (flows, links, and information shareability). In the age of big data, the task for the EA practitioner is clear: Design business outcomes that exploit big data opportunities inside and outside the organisation. Big data enables decision makers to spot patterns quickly across different data types, but requires a datasavvy business strategy to achieve competitive advantage. Enterprise architects should educate leaders about potential big data opportunities now readily available through start-small, cost-effective analytics and pattern recognition tools and techniques, but also explain the risk factors (such as data privacy, regulatory and legal challenges). Practitioners should also explore the increasing number of public datasets now available through open APIs, and use these for sentiment analysis (e.g., mining social media feeds), location-based services (using publicly available telemetry data) or to design context-aware applications.
Big data enables decision makers to spot patterns quickly across different data types, but requires a data-savvy business strategy to achieve competitive advantage
Atoll Technologies and Gartner Atoll Technologies, a focused EA vendor, was a silver sponsor at the event. Atoll Technologies has been active in delivering practical EA solutions, including both software and consultancy, to companies in a number of sectors such as finance, telecommunications, government, energy and more. Atoll Technologies has been working in the field of enterprise architecture management since 2002. It is an IT solution provider for large organisations and has extensive experience in helping these organisations to oversee and manage their architecture. Atoll is a European company that is focusing on doing business in the Middle East and Central and Eastern Europe. The company was awarded the first Omani project in December 2010 by Omantel and has been supporting the telecom major successfully since then. In 2011 it was awarded another project to provide the architecture repository solution for the Information Technology Authority(ITA), Oman. The company’s SAMU tool provides all functionalities and decision supporting reports defined by the Oman eGovernment Architecture Framework. Gartner included Atoll Technologies and its product SAMU in the Magic Quadrant for Enterprise Architecture Tools in 2010. Atoll has been receiving great recognition for the quality of work it performs and the solution it delivers. Gartner, Inc. is the world’s leading information technology research and advisory company. Gartner delivers the technology-related insight necessary for its clients to make the right decisions, every day. From CIOs and senior IT leaders in corporations and government agencies, to business leaders in high-tech and telecom enterprises and professional services firms, to technology investors, Gartner is a valuable partner to 60,000 clients in 11,500 distinct organisations. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, USA, and has 4,500 associates, including 1,250 research analysts and consultants, and clients in 85 countries.
CLOSEUP
By Dr Jasim Husain Ali
Qatar’s global investment Qatari authorities have at their disposal a notable $30bn for investment purposes in 2012 alone
It is understandable why some countries eye a share of the pie. Among other things, foreign direct investments (FDI) have the ability to sustain economic growth and create jobs for locals, something in demand the world over. By one account the accumulated size of the country’s state wealth fund (SWF) stands at a staggering $100bn. As such, the magnitude of Qatar’s investments worldwide is sizable in relation to other hard facts pertaining to the country. For instance, Qatar’s gross domestic product (GDP) is projected to amount to $197bn in 2012 in nominal terms, not adjusted for inflation, the third largest in the Gulf Cooperation Council (GCC) after Saudi Arabia and the UAE.
Fastest growing economy
Q
atar is a rising global star in numerous aspects including its investment strategy. One proof of that is the selection of Qatar as the host of the World Cup 2022, for the first time ever in the Middle East and North African region.It is possibly fair to link this achievement, at least partially, to the country’s active and visible investment drive on the world scene. The country’s foreign investment portfolio is sizable on the one hand and diversified enough on the other, and continues to expand into new ventures. It emerged recently that Qatari authorities have at their disposal a notable $30bn for investment purposes in 2012 alone. The figure became known in April when the country played host to the annual meeting of the UN Conference on Trade and Development (Unctad).
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Accordingly, this makes Qatar stand out in the world with regard to foreign investment on a per capita basis. Yet reports issued by the IMF and other credible sources consider Qatar the fastest growing economy among the six-nation entity, suggesting continued strength in the years ahead. Ever since the inception of the Qatar Investment Authority in 2005 as a state wealth fund entity, the country has already created a positive impression in numerous parts of the world. Choices of the diverse investment portfolio entail stakes in banks in Brazil and agricultural development in several countries in Southeast Asia. Also, Qatar is a major investor in the UK’s retail sector including owning the giant Harrods. Still, Qatar has committed to investing heavily in debtridden Greece. To be sure, the international tendencies
of Qatar are an established fact including being a major player in the dissemination of international news via Al Jazeera. It seems Qatar is racing against time to possibly make up for lost potential in past years. Happily, foreign investment is a two-way street phenomenon, a reference to FDI attracted to Qatar. In fact, the Unctad World Investment Report 2011 regards Qatar as the second largest recipient of FDI among GCC countries. According to the report, Qatar attracted some $5.5bn worth of FDI, second though to $28.5bn invested in Saudi Arabia.
Largest exporter of LNG Qatar opened up its energy sector to international firms in the past two decades, thereby promising phenomenal results. In 2011, Qatar hit a new milestone by celebrating the achievement of 77 million tonnes per year of liquefied natural gas. Comparatively, production capacity only amounted to 54 million tonnes in 2010. But for a self-imposed moratorium to help maintain prices, output could be further boosted. This explains why Qatar has emerged as the largest exporter of LNG, a position previously held by Indonesia. In return, the country is using proceeds from the petroleum sector including gas and oil to carry out its investment drive.Qatar presents itself as an exemplary country when it comes to tapping its potential. Clearly, it pays to be an internationallyoriented country.
The author is an eminent economist and Member of Parliament, Bahrain (jasim.husain@gmail.com)
ECONOMY
By Oliver Cornock
Sustainable utilities The Sultanate is now witnessing huge changes in its water and electricity sectors, creating new opportunities for investment and infrastructure in the process
T
he two main challenges facing the Middle East as a region concern resources. Most debated, discussed and dissected is economic dependency on oil and how the Gulf will diversify for the days when crude supplies run low. The second, perhaps even more fundamental, concerns water and power supply. Just as towering cities such as Doha and Abu Dhabi owe their existence to the huge revenues generated by energy, the growing populations of the Gulf cannot be sustained without adequate water and electricity. Furthermore, the solutions must themselves be sustainable. Oman is a good example of how this second regional challenge of provision is being met head on. The Sultanate is now witnessing huge changes in its water and electricity sectors, creating new opportunities for investment and infrastructure in the process.
The author is Regional Editor, Oxford Business Group
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This is largely due to demand driving the need for increased access to – and supply of – water, as well as power generation. Over the next five years to 2017, domestic-sector demand for desalinated water in Oman is set to rise from 163m cu metres to 278m cu metres – a 70 per cent rise – according to estimates from the Oman Power and Water Procurement Company (OPWP). In addition, the OPWP expects electricity demand to grow from 16.9 TWh to 30.3 TWh in 2017.
One of the reasons for this is Oman’s rising population, which World Bank statistics show has grown by around one million in the past 20 years. In fact, the Sultanate now represents the fastest-growing power and water sectors in the Middle East, with demand for utilities set to grow at an average yearly rate of 9 per cent until 2017, according to the OPWP’s December 2010 report. To cater for this, a range of major developments are in the pipeline. In mid-February, it was announced that the Sultanate will make sector investments to the tune of $2.9bn, spread across 13 new power, water and energy projects, to begin construction in 2012. Although specific details were not available at the time of writing, it was reported that the focus of these projects will be on increasing desalinated water supply and improving network efficiency.
The Sultanate now represents the fastestgrowing power and water sectors in the Middle East
The government is looking to the private sector to take on the majority of its utilities projects. In late October 2011, for example, engineering and contracting company Galfar was awarded a water pipeline project worth $36.4mn by the Public Authority for Electricity and Water (PAEW). On completion – estimated to be a year and a half away – the pipeline will transport water from Wadi Adai to Amerat. Although Oman benefits from slightly higher rainfall in comparison to other GCC states, it is still a desert country, and drinking water is never in abundance. However, early March 2012 saw the awarding of a contract to develop an important new water desalination facility move one step closer, with the short-listing of seven international firms for the bid. The plant, to be built in Ghubrah in the Muscat governorate, will cost around $400mn and will process some 42 million gallons of desalinated water per day when completed in 2014, according to estimates. Two other private sector-led “independent water projects” are planned for Qurayat and Al Suwaiq.
HUGE DEMAND Demand for utilities to grow by 9 per cent yearly until 2017 Demand for desalinated water set to rise by 70 per cent Electricity demand to grow from 16.9 TWh to 30.3 TWh
reduce the water deficit, which has been estimated at more than 300m cu metres of water each year. Two projects, with a combined value of over $1bn, were launched in 2008; in A’Seeb and in Al Ansab. These are being overseen by Omani wastewater service company Haya Water. A’Seeb has now entered its second phase of development, and will reach full operating capacity by 2017, although the facility is already partially operational.
These projects will be high-efficiency reverse osmosis desalination plants, which will draw electricity from the main grid, as opposed to being co-located with power generation capacity. In line with the OPWP’s environmental strategy and seven-year planning process, old facilities are to be decommissioned by 2017.
Al Ansab, on the other hand, opened in early 2011, and is the world’s largest submerged membrane bio-reactor system with a capacity to handle up to 74,000 cu metres. Taken together, these two projects will serve 80 per cent of the Muscat population by 2014 and about 90 per cent by 2017, delivered across the Muscat area by more than 280km of pipeline that will replace the inefficient septic tank system currently used by most properties in the governorate. By end-2011 it was estimated that 20 per cent of properties within the Muscat governorate had been connected to the new system.
Furthermore, the treatment of wastewater for reuse is a central part of Oman’s irrigation strategy, called the “Muscat Wastewater Master Plan”, which is aimed at reducing pressure on groundwater resources within the Muscat governorate. By reusing treated wastewater for agriculture and landscaping, the Sultanate will help
Despite some criticism that Oman has been slow to develop alternative means of power generation, renewables are increasingly being looked to as the future source of Oman’s energy provision. According to the first renewable energy country attractiveness indices of 2012, published by professional service
firm Ernst and Young, Oman’s solar resources rank among the highest in the world, and have the potential to supply a sizeable share of Oman’s current energy demand. Indeed, the government aims to produce 10 per cent of its energy needs from renewable energy resources by 2020. This potential looks set to offer huge opportunities for not only privatesector – but also international – involvement. In January it was announced that German private investment firm Middle East Best Select (MEBS), and Terra Nex Financial Engineering of Switzerland, are looking to fund a project valued at over $2bn to build a 400-megawatt solar panel facility in Oman, which could be utilised by power stations. A further $600mn of project investment is being provided by direct equity capital, as well as loans from European financiers, mostly from Germany. MEBS and Terra Nex are looking to secure a quantity of the generated power for export. Going forward, the issue of developing an expanded and sustainable water and power sector is likely to gain increasing prominence on the Omani agenda. In May, the PAEW will host the Second Annual Oman Power and Water Summit in Muscat, where highprofile infrastructure and investment opportunities will be presented, as well as the latest sector innovations and strategies. Specifically, this will represent a key opportunity for foreign companies to share knowledge and become involved in upcoming projects in Omani utilities. By taking a proactive approach and finding solutions to an environmental challenge, the Sultanate is ensuring its long-term economic progress. Such action now will not only guarantee environmental stability, but is also set to be highly lucrative for Oman in the future.
AVIATION
Trend setters Experts at Arab Aviation and Media Summit 2012 envisage an enormous potential for growth for low-cost airlines in the Middle East, capitalising on robust demand. Muhammed Nafie reports from Sharjah
L
ow cost carriers – or budget airlines – appear to be ruling the skies today globally at a time when world’s biggest airlines are feeling the sharp pinch of financial crisis and rising fuel prices. The big industry carriers – or so called legacy carriers – are now making room for low cost airlines, that are emerging profitable, broadening their reach and entering new markets. Although the Middle East remains one of the least penetrated markets by the low-cost carriers, as the aviation stocks in the region are dominated by state carriers, the region has a growing number of local low cost
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airlines, operating with great efficiency and success. They continue to play a key role in increasing air traffic and creating their own markets. Highlighting an enormous potential for growth for low-cost airlines in the region, capitalising on robust demand on both regional and international markets, was the Arab Aviation and Media Summit 2012 organised recently at the American University of Sharjah in the UAE. “Low-cost airlines have evolved into an innovative and sustainable business model over the last few years,
dispelling the misconception that they compromise on quality and service,” said Adel Ali, CEO of Air Arabia, Middle East’s first low-cost, low-fare airline emerged in 2003. “The success of lowcost airlines once again underlines the fact that passengers opt for them. The Arab spring has negatively impacted on the regional industry with massive plunge in passenger numbers though the sector has shown considerable resilience in the face of the crisis.” It was Air Arabia, the first airline to be listed in the Middle East, who pioneered the low-fare concept in the region. The Sharjah-based budget carrier, which
AVIATION
currently operates out of the two other hubs in Egypt and Morocco, flies to 74 destinations. With a fleet of 30 aircraft, Air Arabia has been successfully expanding its reach in the region and beyond to markets in Europe and Russia. It started with a pair of Airbus A320s, but intends to grow this to 50 by 2015. Speaking at the sidelines of the summit, Adel Ali informed that the carrier posted a net profit of Dh274mn during the year 2011 and its first quarter net profit in 2012 was up 11 per cent to Dh49.2mn compared to the corresponding period in 2011. Chris Taylor, vice president, Spectrum Capital, UK, praised the dynamism of Middle Eastern airline operators pointing out there was ample opportunity for growth, especially in the low cost sector. “Everybody is buying into the concept of lowcost carrier,” he said. “Even the legacy carriers are setting up low cost brands. For example Singapore Airlines has a low cost brand and Iberia Airlines has also set up a low cost brand. It is the same airline but is marketed as a low carrier. The low-cost carriers with their low fares have reduced the cost of travel. There are now many variations on the basic model with ancillary income being generated from sales of additional services at the time of booking and also while on board the aircraft.”
Broader open skies policy The industry experts opined in the summit that in order to unleash the full potential of low-cost carriers in the region, the Arab aviation industry was eyeing a roadmap for a broader open skies policy in the region. Adil averred that the industry’s growth potential had underperformed due to the limited progress on open skies agreements. “The regional governments are facing a dilemma whether to open up their skies to other airlines or continue to protect their flag carriers and incur huge losses”, he said. “Nationalistic sentiments and fear of competition have hampered the pace of progress. While the UAE, Lebanon, Jordan and Morocco have encouraged liberalisation of their aviation markets
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Low-cost airlines have evolved into an innovative and sustainable business model over the last few years, dispelling the misconception that low-cost carriers compromise on quality and service through open skies agreements, several other countries in the Middle East are still holding back on adopting a full open sky policy.” He also said as regulatory barriers to entry go down, passengers had been the beneficiaries with an increasing number of carriers resulting in a more competitive market, with lower fares and increased focus on customer satisfaction. “The tangible benefits of a liberalised market also include a higher rate of job creation. Across the aviation sector, more employment opportunities arise from the servicing, management and maintenance of additional air services,” he added. Abdul Wahab Teffaha, secretary general of Arab Air Carriers Organisation (AACO), said, “Although all the governments in the region have made commitments to liberalise their aviation industry, only eight countries have signed the ‘open skies policy’ convention. AACO will demand speedy implementation of the commitments made by the Arab countries within the framework of the Damascus convention at the next meeting of Arab Civil Aviation Commission. The Arab aviation industry is a catalyst for growth provided the governments lift the regulatory regime and make a liberalised environment for airlines to operate.”
Challenges and opportunities However rising fuel costs will continue to be a burden for low-cost airlines. As fuel prices continue to be a wild card in
2012 with crude oil hitting $125 a barrel recently, low-cost airlines are expected to struggle to keep their stock afloat. In addition, continuing capacity expansion by big players will only add to the competitive pressure of smaller entities. Experts opined that though crisis had affected tourism industry in countries such as Egypt, Tunisia and Yemen registering a 50 percent drop in tourism arrivals, the industry had bounced back significantly in the last few months. “Passenger numbers on Middle East airlines rose by 8.9 per cent in 2011,” said Dr Majdi Sabri, regional vicepresident MENA, IATA. “In the first quarter of 2011, the industry recorded a 15 percent jump in net sales.” “Arab Spring not only presented challenges but enormous opportunities to the industry,” said Abdul Wahab. “In the Middle East alone, the aviation sector currently supports 2.7 million jobs and accounts for $129bn in GDP approximately. Over the next two decades, Middle East international passenger numbers are expected to reach some 220 million in 2030 as compared to 77 million in 2010. Regional markets derive substantial economic benefits from the spending of tourists travelling by air.” Predicting a slow recovery in the regional aviation sector, Chris Taylor added, “In the short-term, the signs of a recovery are very slow in the regional aviation sector. While in the long-term, much depends on the question of an open air space, access to airports and free competition.” Home to 65 airlines with 1,029 aircraft in service, operating from 70 commercial airports, the Middle East has 13 air navigation service providers. The combined value of the Arab aircraft fleet is expected to rise to nearly $200bn in the next 15 years. Fuelled by strong growth in regional traffic, IATA has increased its 2012 profit forecast for Middle East airlines from $300mn to $500mn. Moreover, Arab League plans to spend nearly $200bn on the purchase of new aircraft in the next 15 years.
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TECHNOLOGY
A voyage around
creativity TED is all about technology, education and design and that was amply demonstrated by speakers at the day-long TedxMuscat. Visvas Paul D Karra spoke to Eythor Bender, CEO of Ekso Bionics, the designers of Ekso, the robotic device to help paraplegics to walk
A
mar, a young Omani has been paralysed from the waist down due to an unfortunate mishap and has been confined to the wheelchair for many years now, but that was until May 16. On that
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day, thanks to wonders of modern technology, the young Omaniâ&#x20AC;&#x2122;s spirits were lifted up and a wide smile lit his face, as he stood on his own feet literally and actually take a few steps with his hitherto immovable legs. Amar was able to undertake this
amazing feat with the help of Ekso, a ready-to-wear, battery-powered exoskeleton designed for patients with spinal cord injuries and pathologies that inhibit their ability to walk. This exoskeleton is designed and
created by Ekso Bionics, a research group based in Berkley, California. Ekso is basically strapped over the user’s clothing and the patient doesn’t bear the weight, however, as the device transfers the load directly to the ground. Each Ekso can be adjusted in a few minutes to fit most people with at least partial upper body strength, and can be adjusted to fit one patient in minutes.
A sight to behold The electrifying moment when Amar was able to walk instead of ‘wheelchairing’ himself around was witnessed by a 250 strong audience which broke into a thunderous round of applause as Amar began his second round of walk. This momentous occasion took place at TedxMuscat in mid-May at the Millennium Resort in Musannah. What is more comforting is that it is also a great privilege for the people of Oman to become the first country outside of the US and Europe where Ekso has been demonstrated to a live audience. “We are very proud that we could demonstrate to the people of this wonderful country that we have a device that could bring relief to hundreds of young and old who would otherwise be confined to their wheelchairs. Ekso can transform the lives of such physically handicapped people by helping them to perform their basic functions all by their own by moving around like normal people,” says Icelandic bionics designer, Eythor Bender, the CEO of Ekso Bionics. Bender and his team arrived in Muscat especially for TedxMuscat to demonstrate how technology can change people’s lives. “It’s indeed a technology that can impact the lives of 70 million people in the world,” he emphasises. Ekso will be available on a larger scale by 2014 as it is presently being used only in rehabilitation centres. So far about 100 people have been able to walk using the device, which
is essentially a battery powered, robotic exoskeleton designed to give paraplegics the option to enhance their independence and freedom of movement.
Immense benefits Says Bender, “Together with hospitals and rehabilitation centres, we train patients to use the Ekso in a safe clinical environment. These clinics are innovative leaders in spinal cord injury research and treatment and together, we are looking to realise the full potential and clinical benefits that cutting edge bionic exoskeleton technology can provide.” Since its foundation in 2005, Ekso Bionics has partnered up with world class institutions, received research grants and licensed technology to the Lockheed Martin Corporation. Today, Ekso Bionics continues to pioneer the field of exoskeletons, designing and creating some of the most forwardthinking and innovative solutions for people looking to augment human mobility and capability. Even as Bender showcased this revolutionary device at the TEDxMuscat, the full-day event also witnessed other inspirational stories and performances from top keynote speakers who came from a wide diversity of disciplines to share their innovative ideas from their respective fields and experiences. “Oman became the centre of creativity for a day,” says Roopesh Bhatnagar and Arun Raj, the event organisers. “TEDxMuscat attracted diverse talent across different sectors and industries who demonstrated the power of creativity, and the crowd was simply ecstatic. In fact, our audience is what makes TEDxMuscat so special and we were very pleased with the record attendance,” they said. TED is a nonprofit organisation devoted to ‘Ideas Worth Spreading’. Started as a four-day conference in California 26 years ago, TED has grown to support world-changing ideas with multiple initiatives.
TED brings together the world’s leading thinkers and doers to share ideas that count in any discipline – technology, entertainment, design, science, humanities, business, and development. The talks at the conference, “TEDTalks,” are then made available to watch for free on TED.com. Satyabrata Acharya, host and curator of TEDxMuscat adds, “TEDxMuscat has already become ‘the’ annual gathering and a catalyst of innovative ideas and concepts in Oman. There are many people that we should thank and give credit for helping make TEDxMuscat 2012 such a great success.”
LUXURY
Habitat Furnishing’s Evolve Lifestyle is an exclusive showroom for high-quality luxury furniture with innovative designs from several reputed foreign manufactures, including leading German brand Hilker 1888. An OER report
T
he past few years have seen tremendous growth in Oman’s household furniture market driven by the entry of a number of real estate developers and increasing demand for residential property. However, the premium furniture industry of the country still continues to remain untapped, as there is an apparent demand-supply gap forcing many homemakers in Oman to travel to Dubai to pick up their favourite lifestyle furniture brands. An ambitious but meticulous stride towards filling this void in Oman’s
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furniture market was the recent opening of Evolve Lifestyle furniture showroom in Wattayah by Habitat Furnishing, part of Al Jassar Group. Apart from the high-end leather sofas from Hilker, Evlove also showcase a premium collection of finest quality fabric sofas from far-east countries. Explaining the concept behind such an exclusive outlet for premium lifestyle furniture, its business head Sarvajit Takkiar, comments, “We wanted to bring something new and exclusive for the people in Oman so that no one has to go out of country seeking for up-market products. We strongly believe that there
is a huge potential in Omani market for such products and it’s only a matter of taking an initiative for setting new trends, instead of just being another furniture showroom in the city.” Evolve Lifestyle is a store for all those who want to purchase a sofa with an excellent quality of craftsmanship and exclusive design at unbelievably reasonable price. “Interior designers always share their experience about how hard it is to get sofas in a variety of designs and colours in this market; but we will surely not disappoint them when they visit our showroom as we have a perfect blend of quality, designs
and colours in our sofas,” adds Takkiar. Hilker, founded in 1888, is one of the market leaders for German quality upholstery. Its unique and contemporary design showcasing European lifestyle and matchless quality sets Hilker products apart from the rest. Evolve Lifestyle showcases all the contemporary collections as well as the classic traditional creations from Hilker, including its huge range of designer leather sofas and home theatre sofa systems. “Most of the Hilker sofas come with various features such as adjustable arm rest, back rest, head rest and reclining back,” informs Takkiar.
Within three months of its opening, the show room has elicited a very good response from customers. “Some of them even went to the extent of saying that finally we have a ‘furniture showroom’ in Oman. And, probably we are the only showroom to proudly display the inner construction of our sofas which speaks for itself about the quality” avers Takkiar.
Sarvajit Takkiar, Business Head
Gearing up for Ramadan promotion, the showroom will have its new stocks shortly in the widest possible range of colours which are designed to be liked and priced to be loved.
AUTOMOTIVE
By Mark Tomlinson
Unending off-road experience Oman’s geography seems to be created with an “A-Z” of four wheel driving experiences in mind, and SUVs make up an enormous part of the automotive sales market in the country
W
hen it comes to drawing up a template of a nation that delivers the most extensive range of off-road terrain and driving excitement, it is hard to look much further than the Sultanate of Oman. As you drive around the nation it seems as if the nation’s geography was created with an “A-Z” of four wheel driving experiences in mind. Today the only major difference from 1970 in a country celebrating over four decades of successful national development and success is simply the speed with which the adventurous Sports Utility Vehicle (SUV) owner can reach some of the most outstanding areas of natural beauty in the country. Off-road enthusiasts are spoiled for choice with fantastic desert driving in the Sharqiya Sands or the edge of the Empty Quarter competing with remote Wadis, exhilarating steep mountain driving terrain in the Hajar Mountains, remote beaches and salt flats as just some of the highlights this extraordinary country has to offer.
The Oman Off-Road Story At the time of the Renaissance in 1970 the only effective way to get around the country in any kind of comfort or safety was an off-road four wheel drive vehicle. It was the essential workhorse for accessing Oman’s oilfields, remote towns and villages, vital for farmers and for people who simply wanted to be able to move pretty much anything from point A to point B.
The author is a General Manager at Mitsubishi Oman
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In a country with less than 20 kilometres of paved highway – there was little choice but to look for rugged
vehicles that could handle the most demanding terrain. And over the past 41 years the appetite of commercial operators in Oman and increasingly individual owners for SUVs has been phenomenal and has grown side by side with the nation’s extraordinary economic growth during this period. In any village, town or city in Oman you will find SUVs anywhere you look – and of varying vintages as well. We were not surprised to have discovered that a huge number of Pajeros still being driven date back to just a few years after its first introduction in 1982 and many have hundreds of thousands of kilometres on the clock but are still going strong. The four-wheel drive off-road vehicle was naturally the most practical transportation of choice many years ago. And even today, manufacturers like Mitsubishi remain loyal to their roots by providing a modern SUV that has become a true lifestyle balance, enabling the owner to combine comfort and performance with the ability to drive across the most challenging driving conditions the Sultanate can offer. In a country such as Oman it is ideal to have an SUV that has this ability to satisfy the customer in every kind of driving environment. One recent trend in the market has also been the development of smaller SUVs such as the Outlander and ASX that offer a great safe driving experience with a number of off-road capabilities to give the owner the best of both worlds. Meanwhile many of the latest SUVs on offer in the market today do not all fit this heritage, with many compromising on their predecessors off-road driving
credentials in favour of appearance and style, a trend that has been imported from other countries where a lot of SUVs have never left the tarmac. SUVs make up an enormous part of the automotive sales market here in Oman. For example at Mitsubishi 49 per cent of our sales across the country in 2011 were four-wheel drive vehicles with SUV sales in the capital a little higher at 52 per cent, with all of these vehicles combining excellent on-road driving performance with superb off-road capabilities. And from the inquiries we get at our showrooms across the nation – the appetite for the SUV and “go anywhere, do anything” style of vehicles looks set to stay with us for many years to come.
SUVs – From Workhorse to Lifestyle Favourite In a country like Oman and indeed across the Gulf – the Sports Utility Vehicle (SUV) has become one of the most common sights on the highways of the region. The region has one of the highest percentages of SUV ownership in the world – reflecting the challenging terrain that dominates so much of this area. But the biggest change in four decades has been the move away from what was always a workhorse for commercial operators, farmers and those living in remote communities to much more of a lifestyle choice.
off-road capabilities have not changed significantly – although they are constantly upgraded and enhanced. It is inside the vehicle that the changes have been most significant – attracting every kind of driver and their family to consider purchasing a SUV. Modern SUVs – of which the Mitsubishi Pajero and Outlander are typical - have all the comforts, sophistication and great road handling of a regular car, providing fantastic family safety, space and practicality for any kind of use without compromising on its off-road abilities. And unlike those you might find in the heart of European or American capitals – individual owners here who purchase their SUV as a lifestyle vehicle have an unrivalled opportunity to use it in just the kind of off-road terrain they are built to handle. In a nation like Oman we are unlikely to see the phenomenon of the “Chelsea Tractor” where families buy large SUVs almost as a status symbol in some European capitals – with no intention of ever taking the vehicle off-road or “getting it dirty.” A quick check of many office car parks on a Saturday morning in Muscat or other major centres and the number of dust and sand-covered vehicles is a testament to the enduring ability of the SUV in the Sultanate to put a smile on its owner’s face on a weekend.
Three Decades of the Pajero In many ways the engineering and
There is no doubt that one of the most
common SUV sights on the roads of Oman – wherever you may be – is that of the Mitsubishi Pajero. First introduced to the Sultanate in 1982, the Pajero this year is celebrating 30 enormously successful years since its initial launch. An off-road thoroughbred – the modern Pajero is as comfortable taking families around the capital or major cities, on long highway trips across the Sultanate or to neighbouring countries as it is getting out into its original natural habitat off-road in the desert, mountain or wadi. It was also 30 years ago that the Pajero made its debut in the Dakar Rally and it remains the most successful vehicle to ever participate in the Dakar Rally winning its class 7 out of the last 10 races, and 15 of the full 32 races. Major commercial operations continue to use the Pajero as the base of their fleets for working on remote oil projects in the desert, major infrastructure projects in the Muscat area and for the widest use of applications all over the Sultanate. Its reliability and durability, added to its comfort and excellent value for money means the Pajero is set to maintain its position as a leader in the SUV section in Oman over the next 30 years as well. And it can offer the driver and their family friends a guaranteed way to put an enormous smile on everyone’s face with its ability to get to some of the most remote and outstandingly beautiful parts of this wonderful nation.
AUTOTALK
This oneâ&#x20AC;&#x2122;s for the ladies
Habiba Juma Al Amri, a self confessed carenthusiast tells Visvas Paul D Karra about why she can go gaga endlessly about her new Range Rover Evoque Dynamic 80
June 2012
H
abiba Juma Al Amri likes to live her life on the fast lane. More precisely, to be at the wheel of a speeding car gives her immense thrills. And her latest car, the Range Rover Evoque Dynamic, a shiny crimson beauty which Habiba proudly claims is a head turner on the road gives her a ride like no other. In any case, Habiba is no stranger to cars and got a BMW Z3 immediately after she got her license. She then got a BMW Coupe M3 followed by the Infinite 4WD. Just recently, Habiba drove her Evoque single handedly all the way to Al Ain in the UAE for a wedding and back and she did not even feel the strain. This car is made for the women folk, states Habiba emphatically, while adding, “I like cars and I like to drive fast and don’t feel tired even after driving for long distances. I drove my Evoque to Al Ain just to test it and I must confess that it was a smooth ride. And really it is a very comfortable car.” What makes Habiba a proud owner of this Evoque is the fact that everyone keeps asking about the car, its colour, shape of the chairs etc. “To describe it in one word, it’s a very beautiful and very powerful car. It’s not only luxurious but also has quite a classic edge to it and a contemporary feel,” she says.
There is no doubt that Habiba’s car is a rather striking Range Rover Evoque Dynamic in red colour with a black roof and fitted with Agility sets in red colour and special black multi-spoke wheel rims with the same sleek, striking silhouette as the coupé, with the added practicality and convenience of five doors.
system, Habiba feels she is flying in the car, not driving. After her graduation from Bahrain University Habiba returned to Oman in 1999 and presently is working as head of the secretary department at the Sultan Qaboos University, while her husband, who himself owns a Porsche GT and an Audi 10, is a doctor by profession.
The Evoque Dynamic is a sports-orientated take on the Range Rover Evoque design theme with a more assertive, athletic stance. Its attitude is emphasised by strong design cues. The bold exterior, with unique bumpers, sills, grille and tailpipes, is twinned with a premium sports interior with leather seats and unique detailing. With an engaging blend of dynamic handling and refined engineering, the Range Rover Evoque’s compact footprint and advanced technology delivers exciting performance together with the lowest fuel consumption of any Range Rover to date.
After driving BMWs and Infinitis, Habiba’s dream was to own a Range Rover one day. Her dream turned to reality when her husband told her about the newly-launched Evoque. She believed that her husband would choose the best vehicle for her and he has not disappointed her at all. “I feel that the Evoque has been tailor-made for me. Maybe I would not have felt the same way if I had bought any of the other bigger Range Rovers. But with the Evoque, it is like as if you walking on the street, it is so easy to handle.”
Habiba is emotionally much attached to the car and says that she loves every inch of the car as it is different from the rest of the four wheel drives seen on the roads. From its exterior red – a very uncommon colour for an SUV – to the tyre rims and the interiors which host many unique and friendly features including a superb sound
During the rainy days a few months ago, Habiba ventured out on to the roads when most motorists would have been heading to the safety of their homes. “I opened the moon-roof during the rain and I could feel that I was just walking in the rain and not driving, it was so nice. I enjoyed it so much that I was out on the roads till it stopped raining,” she enthuses nostalgically.
AUTO NEWS
POWERFUL NEW V8 CONTINENTAL GT Bentley Oman has organised an exclusive preview and test drive of the new V8 Continental GT for select customers following a regional media ride and drive event hosted in Oman. The 2012 Continental GT V8 was received with great enthusiasm by discerning customers who have traditionally experienced exceptional levels of performance
in a Bentley motor car. “The reception and feedback we had this time from our customers has been incredible,” said James Armstrong, brand manager of Bentley Oman. The event was hosted at the Shangri-La Barr Al Jissah Resort and Spa providing a dramatic setting of rugged mountains and inviting beaches as the backdrop to the event.
NEW RENAULT DUSTER LAUNCHED BMW SCOOPS TWO EVENT AWARDS BMW Group Middle East, together with its PR agency DABO & CO and events agencies DABO & CO and Salt & Pepper, took home two coveted event industry honours at the recent 2012 Middle East Event Awards. The group bagged Best Event on a Budget award for its ‘Stay Alert. Stay Alive’ university road safety road show and
Best Corporate Product Launch award for the 2011 MINI Festival entitled DRIVE OUT LOUD. With votes cast by internationally and regionally renowned judges from a variety of industry sectors and disciplines, the annual Middle East Event Awards celebrate the achievements of the region’s event industry.
The new Renault Duster, a strong and reliable SUV with genuine off-road ability, was officially unveiled at the Al Bustan Palace Hotel by Mustansir Lakdawala, managing director of Renault GCC, Sheikh Ahmed Suhail Bahwan, chairman of Suhail Bahwan Auto Group and Divyendu Kumar, managing director of Suhail Bahwan Auto Group. The new Renault Duster is a particularly versatile 4x2 and
4x4 vehicle, which combines a spacious interior with salooncar comfort, while its compact footprint and high ground clearance ensure that it is at home in and about town as it is on country roads or off the beaten track. The New Renault Duster is available in the Sultanate in 4x2 4-speed AT and 4x4 6-speed MT versions powered by a 2.0 16V (135 hp) engine, especially tested in the GCC.
MITSUBISHI RALLY CUP LAUNCHED
JAGUAR CELEBRATES 300,000TH LR2 Jaguar Land Rover employees at Halewood Operations in Merseyside have celebrated an important milestone achievement following the production of the 300,000th Land Rover LR2. Production of the LR2 at Halewood Operations commenced in October 2006 and recently the plant’s 300,000th LR2 was driven off the line. “I’d like to
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congratulate the Halewood team for reaching this superb milestone and also sustaining the highest quality standards on LR2, during the Range Rover Evoque launch period. Freelander was Land Rover’s biggest selling model last year retailing around 52,000 units globally,” said Halewood operations director Richard Else.
Mitsubishi Oman has officially launched the Mitsubishi Rally Cup and a range of other sponsorship support to back rally drivers in Oman. The launch came at an event hosted by the company at its Athaiba Showroom for drivers and co-drivers who will be participating in the Oman Rally Championship 2012. The Mitsubishi Evo has traditionally
dominated the Oman rally driving scene and Mitsubishi in Oman has now launched a series of initiatives to boost the drivers participating in this year’s races. Individual drivers each signed an agreement with the company agreeing to support and promote Mitsubishi during the year in return for a series of prizes and special offers .
NEW 2012 VOLKSWAGEN CC COMES TO OMAN The new 2012 Volkswagen CC has been launched recently in Oman, allowing drivers to experience the car’s impressive blend of four-door practicality and sleek coupé-like styling. With fresh front and rear styling, the new Volkswagen CC design moves even closer to the automotive luxury class. The new car was officially launched by Volkswagen Oman at its Athaiba showroom. “The CC stands for Comfort Coupé and this new CC, which
made its debut at the Los Angeles Auto Show in November 2011, is a classic and unmistakable Volkswagen car that displays the characteristics of being highly articulate, extremely elegant and comfortably confident,” said James Oliver, general manager of Volkswagen Oman. “The CC has been redesigned to close the gap between the Passat and our flagship Phaeton, and establishes an exciting new model within the Volkswagen line-up.”
MAZDA’S ROAD SHOW IN IBRI Mazda brand from Towell Auto Centre (TAC) attracted the attention of car enthusiasts with its recent road show at the Ibri College of Applied Sciences, featuring the latest line up of Mazda models available in the Sultanate. Representatives from TAC greeted students and guests at the show and briefed them about the various models available from the Mazda stable. “Due to their distinctive
sheer driving pleasure stance and emphasis on quality and safety, our cars have a huge following in the Sultanate,” says Annurag Chawla, head of marketing and communications, Towell Auto Centre. “At TAC we believe that road shows are a great platform for the public to see and experience our product range. The response we got at the Ibri College of Applied Sciences has been overwhelming.”
EXHIBITION TO MARK 60 YEARS OF PORSCHE CLUBS Porsche Museum is honouring the Porsche Clubs’ 60th anniversary with a special exhibition. From May 26 to August 26, 2012, the sports car manufacturer will be looking back on six decades replete with exciting club activities. Not only will club members’ special vehicles be on show but special photographs, documents and small exhibits will also relate their personal stories and experiences. In addition, all museum visitors will be invited to select the most beautiful exhibit as part of a “Concours d’Elegance”. The choice is between 12 different vehicles, including the 12th Porsche 356 produced in Zuffenhausen,
a Porsche 968 Turbo S and a Porsche 911 Turbo Targa. Dr Wolfgang Porsche as well will be providing a rare vehicle from his private collection for the special exhibition: a 911 Turbo S (993). Moreover, a 1970 Porsche 914/6 GT will be on show, as well as a Porsche 911 S “Club Coupé” that was brought out in a limited edition of 50 units exclusively for American Club members to mark the 50th anniversary of the Porsche Club of America. The museum shop will be offering a selection of special items for sale: the new volume “60 years of Porsche Clubs” by in-house publisher.
AUDI’S NEW 2012 Q3 Audi Oman has launched in the Sultanate its new compact SUV, the Q3. Following the success of the company’s Q5 and Q7 SUV models, which made up a high percentage of total Oman sales in the first four months of 2012, Audi Oman is confident about a highly positive customer response to its first premium SUV in the compact segment. “The demand for both the Audi Q5 and Q7 remains very strong even though the new
generations are expected only in 2013 and early 2015 respectively,” said Abdel Karim Awwad, national sales manager of Audi Oman. “We are positive that the new Audi Q3 will fare equally as well.”The Q3 is immediately recognisable as the youngest member of the ever growing Audi family. Every aspect of the Q3 showcases Audi technology – the body, the drivetrain, the chassis and the assistance and multimedia systems.
EVENT
Championing a green cause Oman Green Awards has rolled out the ‘green’ carpet for the third edition of its annual prestigious awards ceremony to be held on June 5 at Al Bustan Palace Hotel
O
man Green Awards (OGA), Sultanate’s first environmental award to honour outstanding environmental vision, endeavours and achievements of corporates and individuals, will hold the third edition of its prestigious award ceremony on June 5 at Al Bustan Palace, A Ritz-Carlton Hotel. HE Mohammed Salim Said al Toobi, Minister of Environment and Climate Affairs, will preside over the function as the chief guest and felicitate winners of the nine different categories of the awards. Oman Green Awards is the ultimate recognition for companies, institutions and individuals in Oman, who demonstrate a commitment towards responsible consumption and sustainable growth. The OGA honours and celebrates their vision in leading the way to a cleaner, greener tomorrow; and offers a unique opportunity to be part of a national platform for this cause. The OGA is being held in association with the Ministry of Environment and Climate Affairs, Ministry of Health and Muscat Municipality; and representatives from these august organisations will attend the green celebrations, which coincide with the
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World Environment Day. The event has received massive support from corporate houses and individuals who have made green mission a priority. Oman Oil Marketing Company (OOMCO), OCTAL and Muriya Tourism Development have joined OGA as strategic partners and Sadolin and Green Cover as the support partner to keep the green torch burning bright in the country. The media partners are Times of Oman and Al Shabiba while Infoline is the call centre of the event. The printing partner is Oman Printers & Stationers. OOMCO’s general manager of operations, engineering and HSSE, Faisal Al Shanfari said, “Being an Omani company, OOMCO has the responsibility to take up the environmental awareness to the public and across the corporates. OOMCO believes that Oman Green Awards would be a right platform for corporates and individuals to come up with great ideas and actions on sustainable development of the country with a mission to protect the environment.” Explaining some preventive measures taken by OOMCO to preserve the
environment Al Shanfari added, “We use double wall FRP tanks, the latest leak detection systems, to prevent underground leak at our retail filling stations. In another step towards offsetting the carbon footprint, we have introduced aluminum road tankers for transporting in order to reduce fuel consumption. In addition, we have LED light in retail filing stations and an ambient air monitoring facilities in Mina Al Fahal area.” “Oman Green Awards offers a unique opportunity for OCTAL to participate in a national environmental awareness platform,” expressed Nicholas Barakat, CEO of OCTAL. “OCTAL is committed to minimising the environmental impact of its day-to-day operations by integrating environmental management as a standard business practice across the organisation. We
believe in continuous improvement and transparency and therefore have engaged third party sustainability experts like Renewable Choice Energy to analyse, track and disclose our environmental performance.” Explaining the measures taken by OCTAL to reduce its carbon footprint, Barakat said, “OCTAL has successfully eliminated five energy-intensive stages of the conventional PET sheet production process, reducing 67 per cent of energy consumption. With the entire energy requirements derived from clean combustion natural gas, the specially adapted burners consume up to 20 per cent less gas. As a result, the company’s PET sheet, DPET™, boasts a 25 per cent lower carbon footprint than conventional APET as confirmed by Renewable Choice Energy and Intertek Expert Services. The unprecedented environmental advantages of DPET™ has also encouraged local companies to use OCTAL’s proprietary packaging material which is creating a ripple effect in contributing to reducing global carbon footprint.”
over 1,000 coconut palms along the beach, and aim to have a total of 50,000 plants in the project with 1 million sq m of grass. Both Salalah Beach and Jebel Sifah already have a ratio of 25 per cent build-up in comparison to the landscaping. Our other initiatives include using alternate energy sources, appointing specialists for environment protection, setting up recycling plant at Bidiya and deployment of mooring buoys. We have also established buffer zones to preserve environment within our projects.”
Commenting on its tie-up with OGA, Chandra Lahiri, CEO of Muriya Tourism Development, said, “We have partnered OGA 2012 to encourage and support the awareness and accreditation of green initiatives in Oman. Since its foundation, Muriya has been conscious about preventing any negative environmental impacts on the existing flora and fauna in and around its projects.”
“Times of Oman has become synonymous with providing cutting edge news and views to its readers day after day,” said Aziz K Baker, advertisement manger, Muscat Press & Publishing House. “But our responsibility to our subscribers extends beyond just dishing out daily news which is why we have partnered with Oman Green Awards, the country’s first environment awards instituted to recognise eco-protection initiatives. If we have to conserve our good earth for the future, then everyone needs to pitch in with green efforts in the present. We have always accorded top priority to environmental news in both the Times of Oman and Al Shabiba, which means that readers are getting educated about the importance of protecting the nature. Oman Green Awards has become the torch-bearer of environmental activities which are being carried out by the Sultanate’s corporate world.”
He added that Muriya’s ITC project ‘Salalah Beach’ hosts a greenhouse with thousands of plants to be placed around the project. “We have planted
N Balachandran, chief operating officer of Sadolin Paints (Oman) commented, “Sadolin was the first paint company in the entire GCC to be certified for ISO
14001 in 1998; and we have annual targets for continuous reduction in water, energy and wastage generation per unit of production. We also have a strong association with AkzoNobel, the largest paint company in the world; and our products are compliant to Euro 2010 standards.” He added, “It is our constant endeavour as an ISO 14001 and OHSAS 18001 certified company to go beyond the boundaries of our plant. As of now, we are the only paint company in Oman to market water based products which are LEED compliant (VOC of less than 50 gms per liter). In 2011, we launched Planet Supra, the only thermal barrier coating to be certified by the Clinton Climate Initiative; Planet Supra is also the only Thermal Barrier Coating for which the parent company, Sci paints japan, Inc gets carbon credit based on sales. Being a responsible corporate entity our association with OGA is thus natural; as we believe that our participation is also the best way to communicate the environmentally friendly proposition of our company. Through this association, we hope to support OGA in their noble initiative to raise consciousness about environment protection and sustainable development in the Sultanate.” Conceived from a perceived need to motivate behavioural change and increase awareness in relation to the protection and preservation of our environment, the OGA has been able to make the corporates, individuals and organisations in the country more serious about building environmental sustainability into their business practices.
BILLBOARD
McDonald’s converts used oil into bio-diesel McDonald’s Oman (Al Daud Restaurants) has embarked on a venture to convert used cooking oil into ecofriendly bio-diesel to fuel its fleet of delivery trucks. The initiative is a joint effort between McDonald’s Oman and Coeja Eco Solutions. “We are proud to adopt such an environmental initiative which reduces carbon emissions of our fleet of vehicles by 75 per cent,” said Ali K Daud, development licensee and president of McDonald’s Oman. Coeja Eco Solutions in partnership with Neutral Logistics shall collect all the used cooking oil from all McDonald’s restaurants and convert it to 100 per cent biodiesel for use in diesel combustion engines for vehicles. “Sustainability for businesses is key, not only for keeping costs down but also for the positive impact on the environment and the consumers’ perception of the company” said Talal Al Hassan, local partner of Coeja Eco Solutions.
Pizza Hut’s Crown Crust Carnival Pizza Hut brings to Oman the culinary evolution of the Crown Crust concept through its first ever Crown Crust Carnival. The mouth-watering Crown Crusts Carnival features three varieties: the world’s first Chicken Fillet Pizzas, Cheese Burger Pizzas and the ultimate taste of Philadelphia Cream Cheese Pizzas. As usual, Pizza Hut has ensured that only the best quality ingredients go into the preparation, including the finest Philadelphia cream cheese from Kraft Foods.The first-ever Chicken Fillet Crown Crust Pizza has golden chicken fillets in the crust, topped with breaded chicken, grilled chicken strips, green pepper, onion and BBQ sauce. The juicy Cheese Burger Pizza is covered with melted cheese topped with ground beef, tomato slices, lettuce and onions. The Cream Cheese Pizza has creamy Philadelphia Cheese from Kraft with a choice of vegetarian and non-vegetarian toppings to go with it.
Al Hassan Group to support rural women Al Hassan Group recently signed an agreement with the Ministry of Agriculture and Fisheries to support livelihood of rural women at Al Dakhliyah governorate, as part of its corporate social responsibility (CSR). Maqbool bin Ali Salman, managing director, Al Hassan Group signed the agreement with HE Dr Ishaq bin Ahmed Al Ruqaishi, undersecretary at the ministry in the presence of HE Dr Fuad bin Jafar bin Al Sajwani, Minister of Agriculture and Fisheries, several dignitaries and high-ranking officials. HE Dr Ishaq thanked Al Hassan Group for its generous support and recognition of the importance of the role of rural women in the community and granting them an opportunity to improve their earnings.
Lulu opens 101st Outlet in Buraimi Lulu opened its much awaited 12th hypermarket in Oman at Buraimi recently. The new hypermarket, 101st of Lulu Group’s outlets world over, was inaugurated by HE Sayyid Ibrahim bin Said Al Busaidi, governor of Buraimi in the presence of Yusuffali MA, managing director and the senior management team of Lulu Group, and other dignitaries. Close on the heels of the momentous opening of the 100th outlet at Ras Al Khaimah, this hypermarket boasts of several firsts. Built at a cost of over RO20mn, the new facility features a multiplex cinema, amusement area, food court, coffee shops and a wide variety of product lines under one roof.
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Jotun launches ‘Closer to the Consumer' Jotun Paints has revealed a new strategic initiative, ‘Closer to the Consumer,’ focused on consolidating the company’s market presence in Oman. The announcement was accompanied with the launch of ‘Fenomastic Stain Resistant’ and ‘Fenomastic Hygiene’ and a new design packaging for the ‘Jotashield’ line of paints. The launch of the initiative in Muscat, Salalah, Barka, Sur, Nizwa and Sohar complements the company’s move towards consolidating its Oman market leadership while at the same time reinforcing customer ties.
Pak wins Omantel Celebrity Cricket Omantel Celebrity Cricket, a first-of-its-kind tournament in Muscat, brought together local talent and international celebrities to create a fun-filled and memorable cricketing event, recently at Muscat Club in Wadi Kabir. Five top local teams fought it out, backed by lovely celebrities who flew in to boost team morale. The Pakistan Panthers were represented by Maria Wasti, the Sri Lankan Lions by Anarkali, the Bangladesh Tigers by Shimla, the South Indian Tuskers by Sandhya and the North Indian Stallions by Riya Sen. The oath of fair play was taken by Kiran Asher, treasurer, Oman Cricket Club in the presence of the Ambassadors of India, Pakistan and Sri Lanka and senior officials from Omantel. After a hotly contested final with Sri Lanka, Pakistan lifted the first ever Omantel Celebrity Cricket Cup, also winning cash prize of $1,000.
“The launch of ‘Fenomastic Stain Resistant’ and ‘Fenomastic Hygiene,’ demonstrates our capability to innovate broadly, reliably, and successfully, year after year, in every part of our business”, said Biren Arora, general manager, Jotun Paints Co. “Our aim is to be able to come up with an innovative line of products that customers can widely depend on. Innovation is not only the core target of our business model but also the primary track that drives us to meet the demands of our customers while also reinforcing retail partnerships.”
Oman LNG to support OAD The Oman Association for Disabled (OAD) and Oman LNG signed an agreement to provide medical equipment to 500 people living with disabilities across Oman. As part of the agreement, Oman LNG has earmarked RO86,190 to assist the association in procuring 390 electronic wheelchairs, comfort and standard variants, 50 hearing aids, 15 electronic beds and mattresses and 50 commode chairs. “We thank Oman LNG for their assistance over the years which has enabled us to work together to provide equipment that improves the quality of life for persons with disabilities,” said Yahya bin Abdullah al Amri, chairman of the association, while speaking after signing the agreement at the Ministry of Social Development. “We are delighted to support the association in funding its procurement of various equipment that will ease the life of our brothers and sisters who live with disabilities,” said Amor al Matani, Oman LNG’s deputy CEO.
Ahlibank launches ‘Go Green’ campaign In an effort to encourage its employees to plant trees and contribute to reduce carbon footprint, Ahlibank has launched ‘Go Green’ campaign as part of its CSR initiative. Each ahlibanker will receive a small pot with a young cactus tree. The goal is to take care of this tree for one year and make sure that it grows to its maximum potential. The team will be doing a surprise inspection frequently to monitor the growth and maintenance of the tree. After one year, the best three ‘tree owners’ will receive a certificate of appreciation from the CEO as well as three surprise prizes as a reward for their efforts. “We believe every small green step taken today would go a long way in building a greener future for the coming generations and that each one of us can work towards a better global environment”, says AbdulAziz Al Balushi, CEO, ahlibank.
MARKET WATCH
World’s narrowest bezel 3D TV LG Electronics (LG) launched its latest 2012 Cinema 3D Smart TV line-up in Oman. Unveiling the new product line, LG revealed the cutting-edge 3D bezel TV that is sized at almost zero mm, setting a new world record for the narrowest bezel 3D TV. The LG Cinema 3D Smart TV, being equipped with the most advanced 3D technology, enables a smoother and more immersive 3D viewing bringing a limitless world of 3D entertainment at the tip of your magic remote. Offering expansive, yet easy-to-use Smart TV eco-system, the LG Cinema 3D Smart TV is composed of an impressive Cinema screen, wireless display, premium content services, over 1,200 Smart TV apps globally and Magic Remote. The new line-up also features Dual Play function for gamers and an expansive selection of 3D movies, sports and games, offering a world of 3D waiting to be discovered through LG’s 3D World.
Inspired by instrumental panel Bell & Ross is introducing a new version directly inspired by aeronautical instrumentation: the BR 01 HORIZON. The attitude indicator, a vital instrument in air navigation, makes it possible to monitor the aircraft’s position relative to the horizon, regardless of visibility conditions. Bell & Ross designers have borrowed the graphic design of the attitude indicator to create an original and innovative display. With
Fujifilm’s X-Series cameras
the BR 01 HORIZON, Bell & Ross once again goes
Fujifilm and its authorised distributor Photocentre have introduced the
beyond the traditional
latest line-up of X-Series cameras for photography enthusiasts in Oman.
concept of reading time
“We are launching an exciting range of compact digital cameras with the
by emulating as closely
full line-up of X-series represented by the X10, X100, and prestigious
as possible the graphic
Technical Image Press Association [TIPA] award winning X-S1 and
style of the instrument
all-new X-Pro 1 models,” said Keitaro So, general manager of Fujifilm
from which it draws its
Middle East. Following the success of the X100, X10, in other markets
inspiration – the attitude
in the region, Fujifilm is anticipating a positive response for the X-Pro1
indicator. The BR 01
and the X-S1 in Oman as well. The X-S1 in particular takes several
HORIZON is the first in a
performance features from high-end digital SLRs and transforms them
series of watches inspired
into the Japan built model which offers a high-quality Fujinon 26x optical
by instruments essential
zoom lens as well as the EXR sensor taken from the X10.
to air navigation.
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GIZMOS
Sony’s 14-inch notebook Sony launched in the Middle East its VAIO E14 Series, a 14-inch notebook with stylish new wrap design and long battery life. Ideal for stress-free everyday computing, the laptop is equipped with third generation Intel Core i5 and i7 CPU with AMD Radeon HD 7670M discrete GPU (VRAM: 1GB). The light-weight VAIO E14 stands out from the crowd with its soft and subtly reassuring wrap design. Available in five refreshing colours including white, black, pink, silver or gun metallic, its design is accented by complementary colour flourishes around the notebook’s
and a personalisation kit comprising matching mouse and keyboard skin. The battery
edge, touchpad and keyboard. The device also comes
life of up to 5.5 hours is enhanced by the discreet GPUs that automatically switch off to
with a premium diamond-cut finish VAIO logo on the lid
boost battery life when less graphic-intensive tasks are being performed.
Portable all-in-one printer Normally an all-in-one printer wouldn’t draw crowds, but HP’s latest – the OfficeJet 150 – is a little different. While it offers the print, copy and scan functions you’d expect from a multifunction machine, this one is barely a foot wide – and weighs only 3kg. HP is billing the OfficeJet 150 as a portable all-in-one for busy business folk and, while it’s certainly not as light or mobile as the average laptop or tablet, we can easily see it being kept on the back seat of a car or in a backpack. The clever design sees the paper tray folds up from the top of the machine, and beneath that lies a horizontal panel that, once lifted and locked into place, reveals a small
Asha smartphones from Nokia
colour touchscreen LCD. The output tray unfolds
Nokia has recently launched its new Asha range of smartphones in the
from the bottom of the
Middle East. The giant touts it as the ‘new affordable smartphones that
machine, Bluetooth is the
feature a stylish design and a rich social experience.’ The Asha range
only wireless option, and
includes the Nokia Asha 200, 300, 302 and 303. The phones include
there are two USB 2 ports,
features such as QWERTY keyboards, touch and type, dual-SIM, access
one of which supports
to social networks and other applications from Nokia’s Ovi Store. “Nokia
PictBridge. There’s an SD
continues its mission to deliver high quality, stylish devices that provide
card slot, too, with pictures
the best access to social networks, the Internet and information, and also
able to be printed directly
offer a great overall experience and value proposition for the next billion
from media plugged into
mobile phone users,” said Vithesh Reddy, GM, Nokia Lower Gulf.
these ports.
GOLFUPDATE
Deciding the best golfer The annual Order of Merit recently launched by Oman Golf Committee (OGC) seeks to set a proper system of rankings for the rapidly growing golfing community in Oman. The first Order of Merit will run to the end of June
G
olf is one of the fastest growing sports in the world, and over the last few years, there has been a great increase in the number of people taking up this sport in Oman. The introduction of three grass golf courses at Muscat Hills, Al Mouj and the Ghala Valley that are all designed and run by the best in the industry has seen a rapid increase in the numbers of individuals playing the sport. With the number of people playing golf on the rise, Oman Golf Committee (OGC) has recently decided to initiate the Order of Merit to track the progress of golfers, encourage participation in tournaments, raise the level of the players and identify the best golfers among a broad range of categories. The new Order of Merit is a system that will calculate the results of competitive golfers in Oman over the season to arrive at a rank per golfer. It will help them discover the best golfer in the Sultanate. The Order of Merit has been established to encourage and increase the level of friendly competition and set a proper system of rankings for the rapidly growing golfing community in Oman. During the year, golfers can secure Order of Merit points by playing in their local club’s monthly medals and other open tournaments. These points will be collated on a monthly basis, giving the golfers the opportunity and platform to view their progress.
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“We are very proud to introduce the first ever Order of Merit in Oman which is designed to encourage and improve golfing excellence in the Sultanate”, said OGC Chairman Ali al Bimani. “The OGC is proud to be a catalyst and aid in the growth of this fabulous game in Oman. Over the last few years, golf in Oman has seen an increase in participation, attracting players from the expatriate community and an increasing number of Omanis, keen to take up the sport.” The first Order of Merit will run to the end of June. The categories of the Order of Merit are as follows: winner of the Order of Merit; leading Omani; leading lady; leading Omani lady; leading senior; leading junior; top ranking for each club. Al Bimani explained that this platform will also be used to support the selection of future national teams as well as selection for representatives of Oman at international events. He added that the OGC was very proud of its role in working towards and encouraging the growth of golf in the Sultanate. It is also proud of the development of the sport in the country as it now boasts of three fully grassed golf courses as well as several desert courses. The OGC is also working closely with the Ministry of Tourism and other bodies to encourage golfing tourism in the country.
Furthermore, with regard to the long term plans and growth of the sport, Al Bimani said, “We are also working very hard to ensure that grass roots golf in Oman is developed. At present we have a very strong junior Golf programme that has over 200 participants. Our first ladies programme was launched in February 2012, the results of which are very encouraging.” The OGC is affiliated to the R&A in Scotland who supports and administers golf throughout the world and it is also certified by the USGA to administer and manage all golfers’ handicaps in Oman.
BROWSINGCORNER
Doing good and doing business Screw Business as Usual argues how entrepreneurs can pursue a socially beneficial business model without compromising on their bottomline. An OER review
S
A business with a social conscience, he argues, will have more motivated employees, save resources, drive higher profits, and, paradoxically, be more satisfying than even the material wealth it creates. The book reads like a series of loosely related case studies and anecdotes that chronicle Branson’s jet-set philanthropic life, from islandhopping with celebrities to help third-world villagers. Now, as the head of the sprawling Virgin empire, he tries to instill a social-impact component into each new venture.
A wide canvas In one instance, Virgin Money, its retail banking arm, offered up its transaction infrastructure to reduce the credit-card fees that donors pay to runners-for-charity of the London Marathon (reducing fees from six per cent to two per cent). Branson writes that Virgin Money’s impact on the $100 million fundraising event illustrates how business can have a much larger social impact than nonprofits. Branson’s book does offer a few logistical reasons why socially conscious business is good for the bottom line. Despite the underlying gravitas, the book is an
easy read. The big picture is built by narrating stories about new organisations, leadership groups and businesses that are combining business and social causes. The cases are mostly related to what has been done in the Virgin Group, but also include stories about people that Branson knows personally, which includes a network of extraordinary breadth. He seems to be able to call virtually any world leader, politician, musician, movie producer or activist to form a team to deal with issues ranging from healthcare to poverty to environmental issues. This is a must-read book for anyone interested in business, entrepreneurship, social issues, the future of capitalism, and the current challenges that face the world today. Despite its playful title, this is a substantive book that advises without preaching. It is idealistic by providing real-world examples and tells stories about famous people by focusing on their deeds and not their fame. Overall Screw Business as Usual deals with challenging issues and is an entertaining read at the same time.
The destination for books, gifts and novelties. Stores at Muscat International Airport – Arrival, Departure Landside, Airside Departure, Jawharat A’Shati and The Wave.
ir Richard Branson, one of the world’s most famous and admired business leaders, argues that it’s time to turn capitalism upside down-to shift our values from an exclusive focus on profit to caring for people, communities and the planet. Branson builds a strong case for the business world’s potential to address social, economic, political and environmental issues by creating new business models and new ways of doing business. He does this not by giving some theoretical fluff, but rather by stories of organisations and businesses that have done it. So his narrative is planted firmly in the real world and that is what is so inspiring and concrete.
BEYONDBOARDROOMS
A worthy cause Rally champion Hamed al Wahaibi and Oman football national team captain and English Premier League star Ali al Habsi have teamed up to co-found a road safety awareness organisation â&#x20AC;&#x201C; Safety First. The sporting icons share their views on the initiative with Mayank Singh
How did the idea of doing something for road safety occur to you? Hamed: We all know the seriousness of this issue; we all have our near and dear ones lost in the past, so we are closely touched by it. When His Majesty spoke about it in a speech in 2009, I felt a personal obligation to do something about this issue. Itâ&#x20AC;&#x2122;s also a way of paying back to society for all the love and popularity that I have got from the people of Oman. Ali: My close relationship with Hamed was one of the most important things that prompted me to get associated with this cause. Secondly, we need to help in saving the lives of Omanis. Both of us want to use our profile to serve the country. Road safety is a national issue and a tragedy and we want to contribute to this cause. The problem with celebrity endorsements is that they engage with a cause and soon disengage and move on. How will you sustain this long term commitment? Hamed: We are founders of Safety First and that itself brings in a measure of commitment. I will be devoting 50
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per cent of my working time to Safety First. The idea is to make Safety First a superstar in its own right, over a period of time with the entire nation being its ambassador, so that it is not limited to me or Ali Al Habsi. Ali: If one is committed to a cause, one will find the time. For example, yesterday we did a video on road safety and I will be active on social media avenues like Facebook and Twitter. When I come back to Oman with the national team or on my holiday, I will use my time to spread the message of road safety by visiting people in schools and villages. My goalkeeper glove will sport the Safety First logo. Is Safety First an NGO or a private company? Hamed: We have registered it as an LLC company, but with an internal agreement that it will be a non-profit organisation. The reason for this is that an LLC has less bureaucracy and gives you more freedom. In future, we want to make Safety First into more of an association. We are aiming to reduce road accidents by 50 per cent by the year 2020.
What is the basis of this 50 per cent reduction figure and is it achievable? Hamed: The 50 per cent reduction figure comes from a United Nations study. There are initiatives which have been studied and researched for years and we are using the same methodology by converting it to suit the needs of our country and society. How is the initiative going to be funded? Hamed: At present it is being personally funded by the two co-founders. In future we will be looking at raising money from the government, businesses, etc. I believe that there is an interest in contributing to a cause like road safety, but we are not approaching anyone right now because first we want to showcase what we are worth. Are you confident that you have got off to a good start? Hamed: I am very confident and the way that things are shaping up reassures me that we are on the right path. Ali: I am very happy about the way the initiative has taken off and we are confident about the future.â&#x20AC;&#x201A;
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