OER March 12 by oeronline emagazine

No 140 March 2012

EDITOR’SDESK

EDITORIAL Editor-in-chief HH Sayyid Tarik Bin Shabib Group Editor Mayank Singh Assistant 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 Senior Advertising Manager Avi Titus 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

Supplement on Oman LNG 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.

TOURISM ENRICHES In regards to tourism, Oman’s Vision 2020 dovetails five areas of focus – establishing Oman as a regional travel and tourism hub; increasing the contribution of the industry to GDP to not less than three per cent; increasing the participation of the private sector and activating its role in the development of various tourism activities; attracting foreign direct investment (FDI) and increasing the ‘Omanisation’ percentage of the industry to 80 per cent. The Ministry of Tourism has set its sights on attracting 12 million visitors to Oman by the year 2020, and based on forward visitor arrival projections the ministry is confident that the tourism sector will become one of the biggest contributors to Oman’s GDP by 2020. The ministry’s aspirations have been supported by the government and private sector with investments of over $10bn in several major tourism projects across the Sultanate. With its scenic beauty and hospitable culture, the Sultanate lends itself to tourism naturally. Various surveys and studies underscore the strength of Oman as a destination of choice. The country has been ranked among the ‘20 Top Tourist Destinations in the World’ by the National eographic’ magazine. Muscat has been ranked as the second best city in the world after London to visit in 2012 by BBC’s Lonely Planet, the popular travel guide publisher aﬃliated with the British Broadcasting Corporation. Muscat city has also been declared the Arab Tourism Capital for 2012 by the Arab Tourism Ministers’ Council. Tourism promotion requires a multipronged approach like building the right infrastructure, creating ready connectivity and offering alluring packages. Meetings, Incentives, Conferences, and Exhibitions or MICE is a good way of luring business tourists to the Sultanate. Experience shows that business travellers are likely to visit a MICE destination again on vacation. Visvas Paul D Karra’s cover story in this issue takes an in-depth look at this tourism segment. It’s the first time that any publication in the Sultanate has done such a profound analysis of this significant trend. We have got an overwhelming response to Oman Economic Review’s rebranding and redesign. A big thanks to all our readers who have been our inspiration and guiding light over the last 15 years.

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

March 2012

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

'HALA 4EL -R .ASR -R 3AMEER 4OLL &REE

Oman Trading Establishment LLC

Arriving with a 556hp supercharged V8 engine, the Cadillac CTS-V is the worldâ&#x20AC;&#x2122;s fastest production sedan. Meaning it can take its place alongside the most powerful cars out there, comfortably.

#43 6

s #OURTESY TRANSPORTATION

s 7ARRANTY FOR YEARS KM

s 2EGIONAL ROADSIDE ASSISTANCE FOR YEARS

s 2ESALE VALUE GUARANTEE

cadillacarabia.com

s 'HALA s 7ATTAYAH s 3ALALAH s 3OHAR

3 H O W R O O M S A T

s #OMPLIMENTARY SERVICE AND MAINTENANCE FOR YEARS KM

CADIL LLAC PRE EMIUM CA ARE PROGR RAM M

#43 6 #/50%

SECONDS FASTER THAN EVERYONE. SECOND TO NO ONE.

MAIL

HATS OFF! It was a pleasant surprise to find OER clad in a new outfit! Congratulations to all involved in the new design. The new look is exceptionally different and interesting. All of a sudden I felt like reading the whole magazine. The get-up is good, and the print more easily readable. The magazine which set a new trend in business journalism in the Sultanate has now demonstrated its capacity to adapt to new changes. There is no doubt that the new design is so refreshing that it will thrill the readers and make the magazine on a par with international publications. Badr Al Balushi, Madinat Qaboos

NEW AVATAR A face-lift to Oman Economic Review is a well-considered decision, and in keeping with the times. OER in its new avatar is more reader friendly, soothing to the eyes and interesting. Project redesign is a job well done. The new presentation is really contemporary. Earlier it did not attract young readers like me but this elegant and stylish look is an eye-catcher. You have endorsed the adage that change is the only constant thing. Undoubtedly, the distinct improvement will beckon new readers to the magazine. RK Kishor, Al Khoud

WELCOME METAMORPHISM The new look of OER is superb and gives a visual treat to the readers. I fell in love with the new look at first sight. The design has made it more visually exciting and attractive. It is well executed and the changes are astounding. With this metamorphism, OER has a welcome crisp feel to it and it looks completely modern and yet retains its soul. It has acquired an added elegance and became more reader-friendly with easy-to-read fonts and short texts. Zahoor, Al Khuwair

LONG OVERDUE The change in layout, typeface, display and

March 2012

presentation is to be welcomed since it was long overdue. However, there is still a lot of conservatism in the content and this has to be re-oriented to the fast-changing tastes. V Sunil, Al Ghubra

FRESH PERCEPTIVE Thanks for OER for your incisive analytical cover story on Budget 2012 which has turned the spotlight on some relevant areas in the budget announcement. The budget was balanced between spending and income and is cautionary in estimating the oil price at $75 per barrel. Though the increased allocations for infrastructure projects and the education and health sectors, as well as the focus on employment is laudable, more clarity is required about development projects and job creation plans. There is still a need for clarity on how the government is going to encourage the SMEs which is not mentioned in the budget. In addition, we need to give more focus on training and involving small and medium enterprises (SMEs) in large development projects. The government should take steps to form consortia of local construction companies to execute development works, especially in EPC projects, to stimulate sector growth. The local

construction sector should be given an opportunity to grow. Rashad Yousuf, Ruwi

BOOSTING SOCIAL DEVELOPMENT The budget looks promising and has strong emphasis on human capital development and infrastructure. The budget is positive and strives to boost social development by stimulating and supporting growth in Oman with a continued emphasis on the development of human capital. It sends a very strong message to the outside world that Omani economy is still robust and on growth path and is not much affected by the global financial crisis. Much of the proposed spending is necessary from the vantage point of economic diversification and sustainable development. It explains the governmentâ&#x20AC;&#x2122;s ever increasing focus on diversifying the economy, particularly spending on education and health which will reduce the dependency on oil capital in due course of time. Annie George, Wadi Kabir

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

INSIDE

FACE2FACE

NHI LAUNCHES ‘SMILES OF OMAN’ TRAINING PROGRAMME

TAPPING THE ALUMNI POTENTIAL

28 OIL & GAS

MAXIMISING POTENTIAL PDO ends 2011 with a strong showing in production, reserves, safety and the employment of Omanis

Prof Atanu Ghosh, DeanAlumni & External Relations, Indian Institute of Management-Ahmedabad (IIM-A), one of India’s premium business schools reaches out to alumni in the city

The National Hospitality Institute (NHI) has launched ‘Smiles of Oman’, a first-of-itskind training programme to upgrade customer care skills

48 INTERVIEW

FUELLING GROWTH Islamic finance is bound to open new vistas for economic development in Oman, says Dr Ali Muhyiddin Al-Qura Daghi, Qatari scholar

32 COVER STORY

MICE IS RIGHT FOR OMAN

March 2012

Accessories/features shown in the visual may not be part of the standard model.

mideast.chrysler.com

FOR MORE INFO CALL 24584530

Join us at Chrysler Middle East

5P LOPX NPSF WJTJU 2VSVN (BSEFOT EVSJOH UIF .VTDBU 'FTUJWBM PS WJTJU BOZ PG PVS TIPXSPPNT JO 0NBO

5-years / 100,000 km Comprehensive Warranty and Maintenance

t 5IF .PTU -VYVSJPVT 7FIJDMF JO JUT $MBTT t #FTU JO $MBTT 4UBOEBSE 7 IQ FOHJOF t -BSHFTU JO $MBTT 1BOPSBNJD %VBM 1BOF 4VOSPPG 4ZTUFN t -BSHFTU JO $MBTT 5PVDITDSFFO 6DPOOFDUĂ&#x17D; *OGPUBJONFOU 4ZTUFN

INTRODUCING THE ALL-NEW CHRYSLER 300C.

WHEN QUALITY COMPLEMENTS BEAUTY. THIS IS LUXURY.

Chrysler is a registered trademark of Chrysler Group LLC.

INSIDE

58 HEALTH

INTERNATIONAL EXPERTISE

AUTO TALK

Muscat Private Hospital has emerged as the first hospital in the Sultanate to win the prestigious Joint Commission International (JCI) accreditation

AN UNMISTAKABLE PRESENCE

60 PERISCOPE

POTENTIAL RETURN IN SCHLUMBERGER AND HALLIBURTON Technology in 2012 is not just about the Cloud in Silicon Valley or genetic engineering but also suffuses the DNA of the oil & gas business

AVIATION

GOLF UPDATE

FLYING HIGH Swiss International Air Lines unveiled its new plans and strategies at a special SWISS Brand Experience Day

Editorial Economy Watch

2 10

Business Briefs

Executive Movements

Events

Tourism

Retail

Economy

Legal

Information Technology

Environment

Autonews

Market Watch

Gizmos

Billboard

Browsing Corner

March 2012

CARTOON CORNER

By Kannan Murali

LOSING STREAK It seems there is no end to Tiger Woodsâ&#x20AC;&#x2122;s losing streak and putting woes, as the former world No1 was laid low by his fallibility in three consecutive tournaments in 2012

ECONOMYWATCH

Surprising to the upside Oman appears to have been one of the stronger growth stories in the region in the first half of the year. Nominal GDP rose by 15 per cent year-on-year in Q1 2011, led by the energy sector (up 17 per cent). However the service sector also managed to put in a solid performance, expanding 10 per cent y-o-y despite political upheaval in and around Oman in that period. Indeed, tourism arrivals were up by 12 per cent y-o-y over the seven months to July while domestic fuel consumption appears to have grown at double digit rates implying a stronger industrial growth picture. Omani banks have joined their Saudi

and Qatari counterparts in finally starting to show signs of life. Private sector credit growth was up by 9.1 per cent y-o-y in July 2011 – its highest level since October 2009. Private sector employment numbers back up the recovery story; the construction sector alone added nearly 40,000 jobs in the first seven months of the year. The picture for Omanis in the private sector was much more subdued. Although some jobs were created in June and July, a downturn in the early part of the year leaves overall Omani jobs in the private sector down 3.5 per cent year-to-date.

Proven oil reserves (2010)

Production, % of global oil supply (2010)

300

10 8

200

6 4

100

0 Egypt

Qatar

Oman

Algeria

UAE

Kuwait

Iraq

KSA

Egypt

Oman

Algeria

Qatar

UAE

Kuwait

Iraq

KSA

Reserves (Bn Barrels)

Oil Production (% of global supply) Source: EIA, MENA Ministries of Finance Ministries of Economy

Inflation in the GCC (%, %, y-o-y)…

… and in the greater MENA region (%, %, y-o-y)…

0 Pakistan

2010f

Morocco

2010

Lebanon

Jordan

Egypt

Algeria

2012f

UAE

2010f

KSA

Qatar

Oman

Kuwait

Bahrain

2010

2012f

Source: MENA Central Banks, MENA departments of statistics, HSBC estimates and forecasts

February 2012

BUSINESS BRIEFS

NAWRAS TO ENHANCE COVERAGE IN RURAL AREAS

TOPAZ ENERGY SECURES GAC MARINE CONTRACT Renaissance Services subsidiary Topaz Energy & Marine has been awarded a contract from GAC Group to provide completion services for two crew/cargo vessels. Topaz’s NicoCraft shipyard in Abu Dhabi has been awarded the contract based on the shipyard’s capabilities and established track record. The construction and engineering works that will be undertaken as part of the contract include structural works, outfitting and equipment installation. Upon delivery, the vessels will be approximately 22 metres long, will carry 24 passengers plus seven crew, as well as up to 15 tonnes of cargo. Says Johan Fulke, managing director – marine services of GAC Marine, “NicoCraft has all the specifications we were looking for in a GCC-based company; they are industry professionals who know how to deliver the right end-product on time and within budget. This contract marks the start of an exciting new relationship for both our companies.”

OMRAN'S PROJECT WINS AL ROYA AWARD

QUICKLOOK

Nawras has recently launched VSAT technology to help businesses in rural areas by providing enhanced coverage. Even in the most secluded locations, companies can now gain access to the internet or connect to their corporate networks nationwide. VSAT, ‘very small aperture terminal’ as commonly known, is used to transmit data and internet via satellite communication. Two solutions are being offered to Nawras Business customers including dedicated internet bandwidth and point to point connectivity over ‘Single Channel Per Carrier’ or SCPC technology. This option is ideal for medium and large companies, particularly where security and high speed is a priority. Alternatively, best effort internet access over Time Division Multiple Access, known as TDMA provides shared capacity through a more economical service without jeopardising quality levels. TDMA is ideally suited to meet the requirements of small and medium enterprises.

Ernst & Young holds seminar on BCM Ernst & Young recently hosted a seminar on the importance of Business Continuity Management (BCM) in making organisations resilient to potentially disruptive events, at InterContinental Muscat. Over 30 executives representing various, public and private sector organisations in the Sultanate participated at the half-day seminar.

March 2012

Omanoil to set up new filling station in Sohar Oman Oil Marketing Company (omanoil) has signed an agreement with local community contractor, Port City Development, to set up a state-of-the-art forecourt located in Sohar’s industrial area. The facility will include a filling station, ahlain convenience store and quick service restaurants to serve a perpetually growing demand.

The Agricultural Association for Al Batinah Region Farmers was bestowed with Al Roya Business Award for Best Civil Society Project in recognition of a signature income-generating project developed by Omran in partnership with the Ministry of Agriculture and Fisheries. ‘Intajee’ was designed to support the growth of existing agricultural micro-businesses by helping farmers in Al Batinah effectively harvest, package and market their goods. “This award is a testament to the unrelenting efforts by the ministry and Omran to promote public-private partnerships that prompts long-term sustainable value in the community,” says Saed Abdullah Rashid Al Kharousi, chairman of the association. “The most important aspect of this programme is that it instills a measure of self-sufficiency to empower farmers and families with the tools, skillsets and resources to improve their livelihoods in a manner that best complements existing businesses and the nature of the local society.”

BankMuscat commends CBO’s Islamic banking model BankMuscat has commended the draft Central Bank of Oman (CBO) model of Islamic banking and finance to be adopted by Islamic banks and Islamic windows associated with conventional banks in Oman. Sulaiman Al Harthy, group general manager – Islamic Banking, expressed deep appreciation of the draft model at the fourth seminar on Islamic banking hosted by the bank recently.

ITA opens e.oman pavilion at Muscat Festival Under the motto “Make your life easier with digital technology”, the Information Technology Authority (ITA) participated at Muscat Festival with its e.oman pavilion at Qurm Natural Park. This year’s motto was conceived to reflect ITA’s aim to educate all segments of the Omani society, urging everyone to take advantage of modern technologies and to use e-services.

BUSINESS BRIEFS

NEW REDUCTION ON INTERNATIONAL CALLS

RENAISSANCE POSTS RO290MN REVENUE GROWTH Renaissance Services announced its preliminary results for the year ended December 31, 2011. The results are subject to audit by the external auditors and approval of the company’s audit committee, board of directors and shareholders. Renaissance is expected to post revenues of RO290mn, up by more than 14 per cent from RO253mn in 2010. However net profit in 2011, at RO2.3mn was impacted by a series of extraordinary items which the company has successfully addressed. The total cost of one-off items amounted to RO11.4mn, but was partially offset by a RO 3.1mn write-back of tax provisions, based on a recent tax ruling issued by the Supreme Court in Oman on foreign dividends. The company achieved strong revenue growth and operational performance for 2011. Says Stephen Thomas, CEO of Renaissance, “The fundamental business of Renaissance and the opportunities for the company’s future growth remain strong.”

NBO TO SUPPORT CHILD CENTRES

QUICKLOOK

Omantel announced new reductions on international calls to all countries for mobile and fixed line subscribers. All Omantel fixed line, postpaid Mada and prepaid Hayyak subscribers shall benefit from these new rates. As per the new tariff revamp, the off-peak timing has been extended to 13 hours and starts from 6 pm to 7 am. Fixed line and mobile customers can call more than 70 countries including GCC, Indian sub-continent, majority of Arab and European destinations as low as 65 bzs per minute, and 85 Bzs per minute respectively. Commenting on the launch of the new tariff, Haitham Abdullah Al Kharusi, vice president for consumer unit at Omantel says, “The launch of this new international calls tariff is a result of listening to our customers and comes in-line with our efforts to provide products and services that meet the requirements of our ever growing customer base. The new tariff reductions will enable our customers to communicate more with their families and friends overseas which is a clear reflection of Omantel’s vision.”

OCTAL to attend Gulfood 2012 OCTAL will exhibit its ground breaking pilot project for date packaging which is envisioned to transform traditional date retailing methods at Gulfood 2012 in Dubai. It is for the second consecutive year that OCTAL showcases its pioneering clear rigid packaging solutions for the food processing industry. Gulfood is the region’s premier tradeshow for the $300bn food processing industry.

March 2012

GM president named Man of the Year John Stadwick, president and managing director of General Motors Middle East operations, has been named ‘2011 Man of the Year’ by leading auto publication Evo Middle East. Stadwick’s accolade comes on the back of exceptional figures for GM in the region during 2011. GM Middle East sold 139,431 vehicles in 2011, up 13 percent compared to 2010.

National Bank of Oman (NBO) has signed an agreement to finance various projects supervised by the Ministry of Social Development. The ‘Memorandum of Understanding’ (MOU) was signed between Ahmed Al Miqbali, acting director general of planning and studies at the ministry and Aisha Al Kharusi, NBO’s head of CSR and corporate communications. As per the agreement, NBO will finance the ministry’s requirements for various child centers supported by the ministry, in Dhakhiliya, Dhahirah and Batinah regions. The bank will also support the renovation of the houses of social security families, in a number of Wilayats. The child centers aim to prepare children psychologically and emotionally, to ensure their overall healthy development and develop their knowledge, social and spiritual awareness.

Oman Air to sponsor Extreme Sailing Series Oman Air will be the official airline of the Extreme Sailing Series, one of the most exciting elements in the yacht racing calendar. The Official Airline positioning takes the sponsorship by the Sultanate of Oman’s national carrier to a higher, enhanced level. Oman Sail has had significant success in the Extreme Sailing Series over the last two years.

Chedi wins Travellers’ awards The Chedi Muscat has received two distinguished honours at the 2012 Travellers’ Choice Awards organised by the world’s largest travel website, TripAdvisor. Based on valuable reviews and opinions from millions of travellers around the globe, the Sultanate’s GHMmanaged resort was selected as one of the top 25 relaxation & spa hotels and top 25 trendiest hotels in the Middle East.

BUSINESS BRIEFS

100 PER CENT OCCUPANCY AT AL MARSA VILLAGE

SECOND BATCH OF IT ACADEMY GRADUATES As many as 17 graduates from the second batch of IT Academy have received their certificates after completing a one-year full-time condensed programme, at a ceremony held at Crowne Plaza Muscat recently. The certificates were awarded by Dr Salim Al Ruzaiqi, CEO of ITA; Tareq Hijazi, country manager for Microsoft in the Sultanate and Bahrain; and Fawzi Hamad Al Harrasi, managing director of EXCEED IT Services & Training. The 12-month programme is aimed at equipping university graduates with the necessary skills to boost their employability in the competitive job market. Says Fahad Sultan Al Abri, director general of the digital society development division, at ITA, “The course has removed the barriers of conventional education methods and introduced the students to a practical interactive method of learning.”

The Wave, Muscat announced that within nine months of the opening of Almeria North Arcade, the retail precinct at Al Marsa Village has achieved 100 per cent occupancy. The 1,500 sqm retail area which is currently home to Costa Coffee, WH Smith, Kwik Kleen, Shang Thai, Al Fair and the recently open Pizza Express is expecting its seventh and final tenant to start operations by summer of 2012. The precinct provides residents and tenants with everyday shopping needs and contemporary food and beverage outlets. “We have successfully attracted the biggest brands to Almeria North Arcade which is a reflection of retailers’ confidence in the project’s reach with both families living at The Wave, Muscat and the larger Seeb community,” says Abdulla bin Khamis Al Shidi, deputy CEO, The Wave, Muscat.

ACCA URGES BUSINESSES TO RE-THINK RISK

QUICKLOOK

Businesses need to work harder to spread responsibility for risk management across the whole organisation, according to a new report from ACCA (the Association of Chartered Certified Accountants). The survey of over 2,000 ACCA members found accountants at the business coal-face have a vital role to play in successful risk management, and that they stand ready to do more. The survey also found a statistical link between the use of accounting practices that contribute to managing risk and lower occurrences of dysfunctional behaviour. The survey also found differences in the perception of a company’s exposure to risk between those at board level and those accountants working below board level.

March 2012

2011 ends on a positive note, says IATA The International Air Transport Association (IATA) reported that full year 2011 passenger demand rose 5.9 per cent compared to 2010. In contrast, cargo markets contracted by 0.7 per cent for the year; but recorded positive demand growth in December of 0.2 per cenr. Growth in demand lagged capacity increases at 6.3 per cent (passenger) and 4.1 per cent (cargo) putting downward pressure on load factors.

OMIFCO LAUNCHES NEW BAGGING UNIT The Oman India Fertilizer Company (OMIFCO) launched a new bagging unit for urea recently at its plant in Sur under the auspices of HE Dr Fouad bin Ja’afar al Sajwani, Minister of Agriculture and Fisheries. OMIFCO which has been selling almost its entire output of 1.65mn metric tonnes in India under an agreement with the government of India, will start to supply as much as 30,000 metric tonnes of urea in the local market for farmers across the sultanate from this year. From November to the end of December 2011, OMIFCO supplied 25,850 bags of urea in the local markets at a competitive price.

Omantel’s profit up by 2.4 per cent Omantel reported net profit of RO112.9mn which represents a growth of 2.4 per cent compared to RO110.3mn reported last year. Revenue grew by 8.6 per cent year on year to RO452.6mn. The company reported EBITDA growth of 5.3 per cent year on year to RO238.4mn as rising staff costs pressured EBITDA margins which fell from 54.4 per cent in FY 2010 to 52.7 per cent in FY 2011.

ITA conduct two ICT field surveys The Information Technology Authority (ITA), in cooperation with the directorate general of economic statistics, has conducted two information technology and communications (ICT) field surveys of indicators of both the public and private sector for the year 2012. The surveys were aimed at collecting data that reflect the reality of the use of ICT in government institutions and the corporates.

BUSINESS BRIEFS

BANKMUSCAT OPENS PRIVATE BANKING BRANCH

FINALISTS OF E&Y AWARDS ANNOUNCED Ernst & Young announced recently the finalists of its Omani Entrepreneur of the Year Award and the Emerging Entrepreneur of the Year Award. The shortlisted finalists for the Entrepreneur of the Year award are Dr Mohammed Al Barwani, Samir J Fancy, Hussain Salman Al Lawati and Maqbool Hameed Mohd Al Saleh while there are three finalists for the Emerging Entrepreneur of the Year category: Jinesh Ashwin Dharamsey; Abdulla Ahmad Sulaiman Al Hadi; and Nabeel Abdullah Al-Riyami and Mohammed Said Al-Marjabi (as joint entry). The winner of the ‘Entrepreneur of the Year’ award will be part of the global Ernst & Young Entrepreneur of the Year Award event to be held in Monte Carlo in June. There will be participants from not less than 50 countries at the world EOY event in Monte Carlo.

BankMuscat took private banking services to a new level unveiling a dynamic brand and business strategy and an exclusive branch at the headquarters. AbdulRazak Ali Issa, chief executive of BankMuscat, inaugurated the flagship private banking branch offering bespoke solutions that preserve, secure and grow wealth. “The new private banking strategy is a step into the future banking in Oman, reflecting the bank’s commitment to expand innovative services to clients and remain the nation’s bank of first choice,” says AbdulRazak Ali Issa. “With global financial expertise, the bank has adopted smarter strategies to stay ahead in business and provide a distinct experience for private banking clients.” BankMuscat private banking offers exclusive and personalised wealth management service that is evolved and implemented by wealth advisors. Working closely with each individual to evaluate personal financial objectives, the approach begins by outlining goals and developing innovative instruments to achieve the best possible long-term growth on assets.

YYCH BAGS AIRPORT PROJECT CATERING DEAL

QUICKLOOK

Bechtel Enka Joint Venture (BEJV), the developer responsible for constructing the new Muscat International Airport terminal, has signed a RO9.2mn deal with Yummi Yummi Catering and Hospitality to provide catering, housekeeping, laundry and janitorial services to the project’s 8,000-strong workforce - the largest-ever contract of its type in Oman. The contract will see Yummi Yummi serve 13.7 million meals, wash 13.7 million pieces of laundry, clean 2.95 million rooms and provide services for ten different nationalities over three-and-a-half years. The company will also run facilities including a supermarket at the BEJV camp, next to the project site in Seeb. “We are delighted by the confidence placed on us by BE JV. And we see this as a great opportunity for YYCH to become a competitive service provider in the hospitality industry,” says Abdullah Khalfan Ahmad Al Ruzeiqi, YYCH chairman.

Al Hassan to sponsor Construction Week Awards Al Hassan Engineering Company (AHEC) has recently confirmed their gold sponsorship of the first Construction Week Oman Awards 2012. Construction Week, the region’s leading publication for the construction industry, will hold their first Awards ceremony in Oman on March 27 at the Grand Hyatt, Muscat. The Construction Week Awards were first introduced in Dubai, UAE in 2004.

March 2012

Oman Symposium on management The Business Studies Department of Ibra College of Technology, a regional technical college under the Ministry of Manpower, will conduct a national symposium on economy, management and business titled, ‘Oman Symposium in Management (OSOM-2012)‘An Awesome Experience in Knowledge Sharing’, on March 4. The event is organised in partnership with the Ministry of Commerce and Industry and OCCI.

Emax opens in Salalah Emax opened its third store in the country at the popular Centrepoint outlet in Salalah, recently. The store was formally inaugurated by Abdull Khader Ahmed Alwi Al-Hadad, vice president of Dhofar Muncipality in the presence Neelesh Bhatnagar, CEO of Emax. Speaking on the occasion, Clive Freeman, general manager, Landmark Group Oman, described the new store as welcome addition to the Group’s portfolio and for the residents of Salalah.

First dental college opens Oman Dental College (ODC), the first and only dental school in the Sultanate, was inaugurated recently by His Highness Sayyid Shihab bin Tariq Al Said, advisor to His Majesty Sultan Qaboos bin Said. The pioneering teaching and clinical facility in Al Wattayah aims to fulfil His Majesty’s vision of providing international standards in education and quality healthcare services while creating rewarding job opportunities for young Omani nationals.

BUSINESS BRIEFS

FINACLE FORAYS INTO ISLAMIC BANKING IN OMAN Finacle, the banking software products division of India’s Information Technology giant Infosys, has teamed up with International Information Technology Company (IITC) of OHI group to offer cutting-edge next generation banking solutions, including self-contained Islamic banking software, in the Sultanate. Fiancle which serves 150 banks in 75 countries world over has a significant presence in the Middle East, especially in Saudi Arabia, the UAE and Jordan. Apart from Oman where it currently provides two leading banks with its advanced core banking solution, Fiancle is looking to strengthen in presence in Bahrain, Kuwait and Qatar. “Oman is a very interesting market for us for multiple reasons,” says Haragopal Mangipudi, senior vice president and global head, Finacle, who recently visited Oman. “The economy is robust and growing; the banks are able to demonstrate excellent appetite both in terms of retail as well as the corporate banking. There is tremendous amount of opportunities for them to make a difference by bringing in a differentiated

customer experience in retail segment and offering multiple product line in the corporate segment.” Highlighting the importance Fiancle accords to Islamic banking services, Haragopal adds, “Islamic finance is a key thrust area for us. Unlike various other players in the market, when Islamic finance emerged we went in with full focus and vigour in terms of investing rather than just tweaking our conventional banking products. Therefore Oman is a key market for us in the region.” Finacle Islamic banking solution offers an integrated and comprehensive approach for banks to define and present Shariah-compliant products to customers. Strong product definition features, support for Islamic accounting and complete traceability for audit differentiate the solution. Completely self-contained, it is replete with the accounting backbone to support back office functionalities and provides Straight Through Processing (STP) capabilities on a SOA platform.

EXECUTIVE MOVEMENTS an IT engineer. The last position she held before her recent appointment was senior manager, product development at Omantel corporate business unit.

Omantel has appointed Huda Abdullah Al Habsi as the general manager, marketing. Being the first Omani woman to hold this position, Al Habsi will head a team that is responsible for the development of endto-end corporate telecom solutions as well as market research and pricing. Al Habsi who brings over 16 years of experience in the telecom sector to the role had started her career with Omantel IT department as

March 2012

Announcing her appointment, Todd Dick, Vice President of Omantel corporate business unit says: “Huda has been an asset to our unit and to the company and we are glad to see her progressing in her career. We are confident that Huda will bring incisive management and leadership to this important function and help us to grow and maintain our leadership position in the corporate business sector.” Commenting on her new role, Huda says,“I’m delighted to be the first Omani woman to be appointed in such a senior management role and looking forward to the challenges and responsibilities in this new role. Omantel is a very dynamic and forward looking company and I’m glad that I spent my whole career with Omantel.”

LG Electronics has appointed DY Kim as its president for Gulf FZE recently. Kim will succeed Paik who was appointed president of the region in 2009. Kim has been with LG Electronics since 1989 and his extensive experience into the electronics unit will be crucial to lead the company forward to embrace new challenges and opportunities. “It is an honour to become President of the Gulf region as it has been a region where LG has been achieving important milestones and where we anticipate an enormous potential of growth. Nowadays LG has the second market position in the LED and Flat panel TV category within this market and it is very well perceived by our customers,” says Kim. Between 1999 and 2003 Kim worked in the LGEUS and Zenith (America), where he provided his expertise to the US market for five years. From 2003 to 2007 he worked in the Audio/Video market and in 2008 he took the role of the digital media company outsourcing team.

THE MAGIC. THE RESULT.

YOU CREATE WE PRINT

Now there’s an output solution that inspires creativity rather than restricts it! The new colour MFPs of the TASKalfa 5550ci series offer the perfect solution for offi ce applications in excellent colour. With powerful finishing options, flexible media handling, high scan speeds and innovative functionality, these devices set new standards when it comes to productivity, flexibility and ease of use. The use of components with exceptionally

TASKalfa 7550ci series

long lifetimes guarantees maximum cost efﬁciency and reliability.

KYOCERA. COUNT ON US. Please contact: Mustafa Sultan Office Technology Company LLC P.O. Box 3340 2nd Floor, Mustafa Sultan House, Alkhuwair Muscat, Oman Telephone +968 24636818 Fax +968 24636801 www.mustafasultan.com

KYOCERA MITA Middle East - www.kyoceramita.ae KYOCERA MITA Corporation – www.kyoceramita.com

TASKalfa 5550ci series

EVENTS

AIWA AWARDS FOR BEST PERFORMING COMPANIES

OMAN FORUM ON ‘BUILDING NATIONAL TALENT’

xpansion of educational infrastructure, skills development through training and creation of employment opportunities have been the cornerstone of the Sultanate’s impressive march on the path of progress under the dynamic leadership of His Majesty Sultan Qaboos bin Said. Apart from the strategic initiatives of the Government, the private sector has played a pivotal role in the development of national talent.

However, among the key issues facing the Sultanate of Oman, the top challenge is to further build the human talent to meet future strategic goals and lead the nation on the socio-economic development track. OMAN FORUM – BUILDING NATIONAL TALENT, an initiative of Oman’s premier business magazine Alam al-Iktisaad Wal A’mal (AIWA), will bring together the government, private and public sector, workers’ community, academia, consultants and media on a single platform to debate on the state of education and training, youth employment policies and initiatives to identify talent gaps and challenges and to create the guidelines to set up the road map for future. To be organised in April this year under the patronage of the Ministry of Manpower and in association with Petroleum Development Oman (PDO), OMAN FORUM – BUILDING NATIONAL TALENT has been supported by the Ministry of Higher Education, Ministry of Education, Ministry of Civil Services, Sultan Qaboos University and The Research Council (TRC). AhliBank, Voltamp and Omran are the strategic partners for the prestigious forum. KPMG is the knowledge partner whereas Times of Oman and Al Shabiba are the media partners for the event.

IWA Awards are back. Come May, Oman will witness the most high profile event of its kind targeted primarily at the top echelons of the Arabic speaking business community in the Sultanate. Setting up new benchmarks in the industry, corporates in Oman will be felicitated based on a highly qualitative performance survey done in a transparent manner as per the best international standards. To recognise the top achievers in Oman’s corporate world, Alam al-Iktisaad Wal A’mal (AIWA) has instituted Awards for Oman’s Best Performing Companies. Alam al-Iktisaad Wal A’mal (AIWA), published by United Media Services, is Oman’s leading Arabic monthly business magazine. This year marks the second edition of the AIWA Awards after the highly successful launch in 2011. In a red carpet awards evening, 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 show by renowned international troupes will make the attendees cherish the evening for a long time to come.

The primary objective of the forum is to promote thought leadership by disseminating information on the subject and constructing innovative ideas for a wider participation of the Omani youth in the national building process and upliftment of the society.

The event will be organized under the patronage of Muscat Securities Market (MSM). Gulf Baader Capital Markets SAOC (GBCM) is the knowledge partner whereas KPMG is the audit partner for the ranking process used for the awards. Overall 15 top ranking companies will receive the coveted trophy. 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. In addition, AIWA will also felicitate two companies for their immense contribution to the society and economy. They will be presented with the trophies for ‘Excellence in Corporate Leadership’.

For more information on OMAN FORUM – BUILDING NATIONAL TALENT, contact Ahmed on 99356490.

For more details on the AIWA Awards, contact Ahmed on 99356490.

March 2012

Oman Symposium on Management (OSOM 2012) “An awesome experience in knowledge sharing” “Inspiring Oman towards new horizons of growth” Theme 1: On 4th of March 2012, at ICT campus, Ibra, Sultanate of Oman.

Organized by: Department of Business Studies Ibra College of Technology (Ministry of Manpower) Ibra, Sultanate of Oman

The Role of Entrepreneurship in the growth and development of Oman.

Theme 2: People Management in Oman: Opportunities and Challenges.

Theme 3:

Our patrons:

Education and its role in economic development of the country.

Theme 4:

Ministry of Manpower

Identifying key sectors for growth in Oman.

Ministry of Commerce and Industry

Oman Chamber of Commerce & Industry For registration, contact: Website: www.ict.edu.om/osom2012 Email: osom2012@ict.edu.om Tel: 25587890 / 95148908 / 95718370. Our Sponsors

Our Partners Knowledge Partner

Media Partners

Main Sponsor

Co Sponsor

TOURISM

Treasured memories A team of four Swiss journalists won the first international media treasure hunt event organised by Oman Air to showcase that the Sultanate while being the essence of Arabia is indeed an oasis of peace, stability and security

man Air, working with the Ministry of Tourism, organised the first of its kind International Media Treasure Hunt to showcase the wonders of the Sultanate of Oman to some of Europe’s leading media personalities. Instead of holding the regular familiarisation trips for tour operators and journalists, Oman Air launched this exciting action-packed event for journalists who were able to discover as much as possible about the history, culture, landscapes, nature and people of the Sultanate. The indirect message through this event was that Oman as a country is an oasis of peace and stability and welcomes the discerning tourist to taste the country’s rich and diverse natural beauty, culture and heritage. The first annual Oman Air International Media Treasure Hunt pitted teams of journalists from Oman Air’s European destinations of France,

March 2012

Germany, Italy, Switzerland and the UK against each other in this challenge.

transport, from taxis and hire cars to aircraft, boats and camels.

Each teams consisted of four journalists each, who were flown in Oman Air’s award-winning business class from their home countries to Oman to take part. They were encouraged to use social media to call on their readers’ and viewers’ assistance in solving the clues they are given, and the whole event was filmed for broadcast at a later date.

The adventure ran between February 6 and 13 and began and ended with a night’s stay in one of Muscat’s finest five-star hotels. In between those nights of luxury, participating teams raced against each other as they scoured the country for information and insights into Omani life. A team of Swiss journalists emerged as the winners. While launching the event, Wayne Pearce, CEO, Oman Air, in comments to the media stated, “We are delighted to be launching this unique event, which will take the cream of European journalism on the tour of a lifetime around Oman. They will discover for themselves the breathtaking landscapes, unspoiled coastline, rich culture and long history of this beautiful country, experience its safety and serenity and enjoy the warm hospitality of the Omani people.”

Tremendous interest was generated through the social media across Europe as the journalists gave blow-by-blow account of their adventure. Regular updates were also provided via Oman Air’s Facebook pages and Twitter account, and on YouTube in five different languages. The search for information will be triggered by a series of cryptic clues and will involve travel across the length and breadth of the Sultanate, using every imaginable form of

Mohammed Al Shikely, general manager marketing at Oman Air, in

Teams at the start of the day in the desert before the days hunt

close coordination with Oman Air’s corporate communication and media department, oversaw the launch of this media treasure hunt. The Treasure Hunt covered several locations in Oman and at each location there were challenges of between 30 minutes and 3 hours. It was stressed that each solution to a clue should be discovered on camera. The journalists were trained on how to use hand-held GPS devices. Kicking off day one of the challenge, the five teams – from the UK, France, Germany, Italy and Switzerland – paid a visit to Muscat’s Grand Mosque. Having toured this iconic landmark and received their first clue, the teams then visited the capital’s awe-inspiring Royal Opera House, before moving on to Muttrah to see the souk and Bait Al Zubair, Oman’s foremost museum of Omani history. Throughout the course of the day, each team searched for solutions to the clues they had been given and by the evening, it was clear that the Italian team had taken first place, after overtaking the UK’s early lead. The second day of the challenge saw each team move to Nizwa, where the city’s famed spice market provided the solution to their first clue, in the form of dried lemons. They then pushed on into the area of the ruggedly beautiful Jabal al Akhdhar (Green Mountain), where the hunt took the teams to the picturesque village of Misfat al Abiyeen and its ancient Falaj irrigation system.The next port of call was the vast Al Hoota caves, where the solution to the day’s final clue could be found. Having been given a head start at the beginning of the day in recognition of coming first on day one, the Italian team retained their lead and hung onto the top spot as the sun set on day two’s activity. After a good night’s rest at the Sahab Hotel, the teams began day three by crossing Al Wasil to Mintrib, in the Sharqiya Sands, where, as well as continuing their investigations, participants found time to photograph the breath-taking scenery and race across the region’s spectacular dunes.

Italian Team looking for clues in the desert – being filmed

But it wasn’t all light hearted and both the Swiss and Italian teams’ vehicles soon became stuck in the sand. However, the Swiss team freed themselves first and pressed ahead to become the day’s victors, before joining with all the other participants to spend a night under the desert stars in a Bedouin-style luxury encampment. An early start on day four preceded a morning of camel rides, dune trekking and a long drive to the lighthouse at Sur, the ancient home of Omani Dhowbuilding. Clues led the teams to the bow of a boat in Wadi Shaab, where the next step of their marathon was to start. By the time each team had arrived back at the Shangri-La Bar al Jissah

Resort and Spa in Muscat, the battle for first place was neck and neck, with the Swiss and Italian teams sharing the honours. Each journalist retired exhausted, but with memories of Oman that will last a lifetime. The last 24 hours of the International Media Treasure Hunt saw the five teams head south to Salalah, the capital of Oman’s Dhofar Governorate. Here, they not only experienced the region’s renowned hospitality and culture, but also its lush greenery, steep mountains and deep wadis. Another unforgettable day unfolded, with each team racing in four-wheel drives to the huge Al Baleed archaeological site, where they found the answer to their clue at the Merchant’s House.

OIL&GAS

annual media briefing held in Muscat recently. “The high level of drilling and engineering activity has paid off and, for the fourth successive year, combined production of oil, condensate and gas has increased.” Daily oil and condensate production in 2011 stood at 549,280 and 93,600 barrels per day respectively and non-associated and associated gas production at 463,000 and 85,000 barrels of oil equivalent per day respectively. In the greater Lekhwair area in the northeast of PDO’s concession area, an exploration team made two oil discoveries close to existing oilfields; Lekwhair-724 and Mazkhour-5. Early test results are very encouraging with a combined production rate from these two wells in excess of 2,600 barrels per day (bpd), says Restucci. “In the south of Oman, PDO exploration well Sakhiya-21 discovered oil in an intra-salt Ara stringer carbonate reservoir near the Harweel production station. The well sustained an oil flow of over 1,800 bpd during the production test. The eventual recoverable volumes from the field, including the use of miscible gas injection as a secondary recovery scheme, are expected to be over 35 million barrels of oil,” he adds.

Maximising potential PDO ends 2011 with a strong showing in production, reserves, safety and the employment of Omanis. An OER report

DO announced that the company’s combined production of oil, gas and condensate for 2011 stood at 1,206,000 barrels oil equivalent per day (boe/d) -- the second highest production on record achieved by it. “PDO has delivered stable oil

March 2012

production and increased gas supply consistent with its short and long term objectives of providing a significant and sustainable energy and revenue stream for the benefit of the Omani national economy and its people,” says PDO’s managing director, Raoul Restucci at the oil and gas major’s

Importantly, PDO’s gas exploration team also had a successful year with yet another gas discovery in 2011 at Rabiha-1 in the north of PDO’s concession area. The new discovery is 10 km to the southwest of the Khulud South discovery announced in 2010 and 6.5 km west of the Khulud West gas discovery revealed last year. Rabiha was one of the four wells drilled targeting unconventional gas reserves in the Haima group. The well flowed gas to the surface during a flow test, and an appraisal well is planned in 2012 to properly assess reservoir distribution and commerciality. PDO also announced a successful year in terms of exploration and reservoir development with a number of new and potentially significant oil and gas opportunities and reserves

additions. While continuing to make conventional discoveries, PDO’s exploration emphasis in 2011 shifted to unconventional areas. Restucci highlighted the emergence of unconventional tight oil and basin centred gas opportunities. In addition, field development and recovery optimisation studies added 266 million barrels of oil reserves and 1 TCF of gas reserves (for a combined 450 million boe). Restucci further added that “the extensive inventorisation and field development work has resulted in a Reserves Replacement Ratio (RRR) of 1.26, well in excess of 2011 production, while the encouraging unconventional results are expected to underpin longer-term production opportunities after extensive appraisal, testing and maturation work. “Thanks to industry leading EOR work, fields like Marmul, on stream for more than 30 years, were now producing at their highest

ever rate, while new steam projects in Qarn Alam and miscible sour gas injection in Harweel, would underpin key production delivery in 2012,” says Restucci. PDO also recorded its best ever year in terms of Total Recordable Case Frequency (TRCF) safety performance and has now achieved 450 million kms without a work related road fatality. Restucci also presented PDO’s new ‘In-Country Value’ strategy and the successful recruitment, in partnership with its contractor community, of more than 4,300 Omani nationals. More than 25 per cent of well engineering contracts were awarded to Omaniowned enterprises, and PDO plans to double the number of skilled Omanis employed by its contractor community within the next two years. In addition, PDO is working closely with the

Ministry of Oil & Gas, OPAL and other operators to sharply increase its spending on goods and services from suppliers within the Sultanate. “PDO has recorded a successful year in 2011 despite challenging market conditions and several contractor work stoppages earlier in the year.” Restucci concludes, “Our work this year has laid the groundwork for sustained production and recovery optimisation, while progressing new play opportunities that could transform our longer-term delivery and contribution to the Sultanate. Beyond hydrocarbons, PDO also intends to set the benchmark in supporting local community development, training and up-skilling for Omani nationals, adding direct and indirect value to the domestic economy through local service and goods manufacturing, and further increasing our contribution in social Investment.”

‘Together for Accident Free Oman' concludes successfully ‘Together for Accident Free Oman’ a month long nationwide road safety awareness campaign launched by Shell Development Oman (SDO) in partnership with Shell Oman Marketing, Sheida International and Oman Road Safety Association turned out to be a huge success. The final road show concluded at Barka, Lulu Hypermarket recently and was attended by almost 200 people showing their strong support to the campaign. The road show toured all the governorates in the Sultanate, starting from Muscat, Al Batinah, Al Sharqiyah, Al Dakhiliyah, Al Buraimi and Al Dhofar drawing large crowds across all the venues of the road show which were strategically selected as per the Oman’s Population and Traﬃc Statistics- 2010/2011 from ROP.

“Road safety is something that concerns all of us and we are delighted to be working on this national cause to reduce accidents and fatalities on our roads, said Hilal Al Mawali, external affairs manager, Shell Development Oman. “We hope today that this successful campaign helped engage the hearts and minds of the people and community at large, and aimed at influencing drivers to change some of their fatal behaviours like speeding,

talking on the phone while driving and not wearing seats belts,” he added. The road is for all and compliance is the solution, which proved to be an excellent example of embodiment and distinctive partnership between government and private sector and civil society institutions to activate their role in bearing the responsibility and contributing in raising road traﬃc awareness.

RETAIL

With Khimji’s Watches announcing a one-month long incredible promotion offer, its showroom at Shatti Al Qurum is awash with beautiful watches, sparkling accessories, jewels and trinkets of all kinds, and all at knockdown prices

himji’s Watches is in the midst of a super promotion on some of its most popular products. Customers are being offered up to an incredible 70 per cent off on a range of premium watches, accessories, sunglasses, jewelry and, luxury phones. The promotion which runs from February 12 to March 11 at the Shatti Al Qurum showroom, is enticing many savvy shoppers through the doors to marvel at the great bargains. The collection includes a vast array of prices and styles for both men and women. Many of the pieces which are part of the promotion are available at never before seen prices thus enabling shoppers to give themselves a much needed treat or to surprise their loved

March 2012

ones with something special. “Our customers enjoy the best things in life and at Khimji’s Watches we are constantly working to ensure they get quality at the affordable prices, says Madhursinh Jesrani, general manager of Khimji’s Watches. “The super promotion is our way of bringing a dash of luxury to the people of Oman. We have never before offered such value for money. The store is awash with beautiful watches, sparkling accessories, jewels and trinkets of all kinds, and all at knockdown prices. Our great range of sunglasses is just the thing for the strong summer heat and our smart and sleek phones are sure to be a big hit.” Khimji’s Watches is well known for its

luxurious branded jewelry and diverse designs. Its skilled team spends time studying and sourcing some of the well-loved, sought after timepieces, jewelry and accessories on the market to suit the tastes of young and old. “The current promotion is sure to be a big hit with the people of Oman, and Khimji’s Watches are calling on everybody to hurry up to their showroom at Shatti Al Qurum and browse amongst the beautiful trinkets on offer before stocks run out. The showrooms are open from 9:00 am to 1:00 pm and 4:30 to 9:00 pm,” adds Jesrani. The Khimji’s Watches showroom is located at Way No. 3036, Building No. 2825, Al Ufouq Building, Shatti Al Qurum.

A D D E D VA L U E .

OER is more than a business magazine… It is a communications partner that ensures that your brand message is not just delivered to the right audience – but delivered with tangible added value as well. It has evolved from one of Oman’s pioneering business publications into a channel that offers decision-makers insightful, reliable and up-to-date information. Champions larger social causes. And leverages collaboration to deliver impact far greater than traditional print advertising alone. OER, in its all new avatar, invites you to forge a partnership that adds real value to your engagement with Oman’s corporate community over multiple touchpoints. Log on to oeronline.com

ENLIGHTEN. ENABLE. ENGAGE.

COVERSTORY

An artist's impression of the upcoming Oman Convention and Exhibition Centre's auditorium with a capacity of over 3000 people

MICE is right for Oman 32

March 2012

Event 1: Cardiology conference Date: Jan 2012 Participants: 800 Place: Muscat

centres around 150 countries that are actively vying for their piece of the international conventions and meetings industry pie. Figures from the International Convention & Congress Association (ICCA) state that the number of international association meetings held throughout the world are around 9,210 on a regular basis (see Table 2 for break up). Out of this only 129 or 1.41 per cent are held in the Middle East/Africa region. This shows the growth potential of MICE in the MENA region. The top five cities for International Association Meetings as per ICCA 2010 Annual Statistical report are Vienna, Barcelona, Paris, Berlin and Singapore.

Event 2: Religious Cadres Forum Date: Feb, 2012 Participants: 2,600 Place: Muscat

he above jottings seem to have been lifted straight out of an executive diary. Actually, these are a few, out of a growing list of events that have recently taken place in Oman. The scale and participation at these events is striking -- the Cardiology conference and Religious Cadres Forum attracted 3,400 delegates, who stayed at five star hotels in Muscat and went sight-seeing and shopping on the sidelines of the event. Welcome to Meetings, Incentives, Conferences and Exhibitions (MICE) tourism in Oman.

MICE tourism usually includes a wellplanned agenda centered around a particular theme or topic, such as profession, trade, organisation, a special interest group or an educational topic. Such tourism is often a specialised area with its own exhibition. Location of MICE events are normally bid by specialised convention bureaux located in particular countries and cities and established for the purpose of bidding on MICE activities. This process of marketing and bidding is normally conducted well in advance of the actual event, often several years ahead and therefore is known for its extensive planning and demanding clientele.

Globally and within the GCC region, the MICE market is very strong and central to many national tourism strategies. Feedback from Muscat’s leading resorts and hotels indicate that MICE and associated activity contributes to around 35 per cent of their total revenue, and this is increasing by the day. Although Oman’s ability to attract large conferences is limited to the current seating capacity of around 1,000, there is no dearth of conferences and exhibitions in Oman all year round.

Important segment So, is Oman really emerging as the regional and global MICE destination? Industry experts are optimistic because the country already has quality resorts,

The groundwork There are more than 200 convention

The Sultanate is well placed to grab a share of the multibillion dollar business tourism market thanks to the strong foundation it is laying currently. Visvas Paul D Karra reports on how Oman is emerging as the destination of choice for the global corporate traveller

Table 1: Oman’s small-scale conventions and exhibition infrastructure Hotel

Capacity

Golden Tulip Seeb Muscat

900 guests for a cocktail reception or 350 people for a dinner banquet

Shangri-La Barr Al Jissah Resort & Spa, Muscat

Ballroom for 850 people for a reception or in theatre style

Al Bustan Palace, A Ritz-Carlton Hotel

Majan Ballroom for 1,200 in theatre style and Oman Auditorium for 628

City Seasons Hotel Muscat

300 theatre style and 245 in a classroom format

InterContinental Muscat

450 people seated banquet or 400 in theatre style

Crowne Plaza Hotel Muscat

600 theatre and 260 classroom

COVERSTORY

hotels and a conferencing platform to build upon, and its tourism offers – an authentic Arabian experience in a unique setting which appeals to international conference organisers and major corporations looking for a niche conference location. MICE is an important segment for the tourism strategy of Oman, admits HE Maitha Saif al Mahrouqi, undersecretary, Ministry of Tourism, because 10 per cent of MICE travellers return as regular tourists. Keeping this in mind, the ministry is also working closely with organisations like the Oman Chamber of Commerce and Industry (OCCI) which are inviting business delegations on a regular basis, says HE Maitha while adding that the reforms to tourism visas arrangements are aimed at improving Oman’s competitiveness in attracting shortbreak vacationers and MICE business. The Royal Oman Police (ROP) recently slashed the fees for short term visas and also extended the free visa period from 24 to 48 hours, for cruise passengers and crew. Tourists visiting the Sultanate for less than ten days will have to pay only RO5 instead of the earlier RO20. For cruise liners, there will be no visa fees upto 48 hours and will be charged RO5 for extension of ten days. HE Maitha says the focus on the MICE segment began a while ago and is not a new concept because the foundation for this segment is good infrastructure and this requires advanced planning. We have seen an increase in the MICE business in Oman in the past two years especially and there are lots of reasons for it. “The geographical location of Oman, the stability, security and safety all contribute heavily to the segment. Importantly, we have been mapping Oman by participating globally in investment forums, trade activities etc. This has supported us in showcasing Oman as a preferred destination for MICE,” she adds. In addition, the ministry has a dedicated events division within the Directorate of Tourism Promotion to lead Oman’s presence at many international MICE

March 2012

HE Maitha Saif Al Mahrouqi, Undersecretary, Ministry of Tourism

meetings and exhibitions such as EITBM (Spain), IMEX (Germany) and GITBM (UAE). Recently, the ministry participated in MICE exhibitions in India and Australia.

Market dynamics The topmost criteria for selecting a city or country for MICE is the destination’s appeal. With Oman receiving numerous rankings in worldwide reports, the country’s appeal as a top-notch destination has been sealed. Oman has been ranked among the ‘20 Top Tourist Destinations in the World’ by the National Geographic magazine – the only Arab country to figure in the elite list. Muscat city has also been declared the Arab Tourism Capital for 2012 by the Arab Tourism Ministers’ Council. In another prestigious development, Muscat has been ranked

Table 2: Regional share of the global MICE market Europe . . . . . . . . . . . . . . . . . .2,713 (30%) Asia Pacific. . . . . . . . . . . . . . .523 (5.8%) Middle East/Africa . . . . . . . . . .129 (1.41%) Worldwide rotation . . . . . . . . .4,208 (46%)

the second best city in the world to visit in 2012 by Lonely Planet, the popular travel guide publisher aﬃliated with the BBC. Second only to London in Lonely Planet’s list, Muscat bested some of the world’s most iconic cities including Cadiz, Spain; Bangalore, India; Stockholm, Sweden; Hong Kong; and Orlando, USA. With Oman’s Ministry of Tourism aiming to increase the contribution of tourism to the Sultanate’s GDP from two per cent in 2011 to around 3.5 per cent in 2015 and a planned 10 per cent growth for the sector in 2012, the efforts to promote and market the country have been upped. Oman Air, the national carrier has launched a marketing campaign across Europe to promote both the country and the airline. It bagged the Silver Award for the Best Marketing Campaign in 2010, held by the Travel Industry Club in Cologne, Germany for its marketing campaign, ‘Soul of Arabia’. The airline currently operates direct flights to 41 destinations worldwide, the most recent addition being Zurich. Oman Air also has codeshare with a number of international airlines thus increasing its connectivity across the globe.

Your legacy is what you contribute, not what you acquire.

NTI PRESENTS

BUSINESS LEADER YOUNG ACHIEVERS

20 MAY 2012

On 20 May, Oman recognises its top corporate role models at the 6th Annual NTI BizPro Awards.

AFRAH BALLROOM, GRAND HYATT, MUSCAT

NTI BizPro Awards 2012 will recognise Oman’s top corporate Young Achievers from those nominated by their peers; and will honour the Business Leader of the Year selected by members of the Top 50 businesses and media fraternity in the country. The final results will be further authenticated by KPMG. This is more than a recognition of achievement – it is an opportunity to identify role models for a new generation of Omani professionals.

Scholarships by

Evaluated by

Management Education Partner

Venue Partner

www.ntioman.com

COVERSTORY

An arial view of how the OCEC would look like

In order to showcase the country’s image as an oasis of calm and stability, an International Media Treasure Hunt was organised by Oman Air in cooperation with the Ministry of Tourism in February. Instead of holding a routine familiarisation trip for tour operators, Oman Air launched this exciting promotional event wherein journalists were given an opportunity to discover the history,

culture, landscapes, heritage and people of the Sultanate of Oman (for full report see Page 24).

of one free night in Oman launched in early February and the slashing of visa fees are examples of promotions.

The launch of a global awareness campaign on BBC Worldwide, the first of its kind for the Sultanate; the joint efforts with Oman Air and the industry to launch a stopover campaign that takes advantage of Oman Air’s growing international network; the campaign

Business meetings

Ahmed Saleh Baabood, Executive Chairman, OITE

March 2012

The OCCI is perhaps the busiest organisation in the country as it hosts an average of three international government delegations per week with each group consisting of a minimum of 10-15 members. If you take into account the hotel rooms required for the stay of such international delegations as well as the venues needed for conducting political and business meetings for such groups and the associated economic activity and logistics like shopping, restaurants and sight-seeing, the benefits are immense. Little wonder then that OCCI has been working closely with the Ministry of Tourism to ensure that the private sector concerns are addressed. “I think MICE is a very positive activity in the country and we should take advantage of the situation prevalent in the region, highlight the peace and stability found in our country and grab the opportunity that this segment presents. At OCCI, we host conferences, workshops for government and private business delegations that come from abroad. We don’t say no to any delegation therefore we are constantly busy at the chamber

all through the year,” says HE Khalil Al Khonji, chairman, OCCI. Globally, the MICE market has attributes that make it an attractive proposition for national tourism strategies. It is among the highest yielding segments with many business delegates bringing in partners and enjoying pre and post-conference tours. Moreover, the business and incentive travel covers all economic sectors and provides economy-wide benefits by way of tourist-spends within the country for shopping, recreation, restaurants etc. The pre and post tours spread the benefits of tourism to regional and remote areas, creating jobs. Being a labour intensive industry with high ‘multipliers’, tourism leads to a far reaching economic impact. More importantly for the Sultanate, MICE events can operate year-round, an important issue for Oman that shows a large dip in summer visitation. Apart from government delegations, a large number of international associations conduct meetings in various parts of the world for their members. And Oman has been host to a number of such conferences. The cardiology conference mentioned in the beginning of this article is one of such instances. In fact, the medical sciences associations have an 18 per cent share of the MICE segment globally (See Table 3 for complete list) and it occupies the first spot in the Top 10 key industry International Associations. HE Khalil says Oman offers all amenities and facilities that a MICE traveller requires. If you look at the criteria for MICE requirements, then Oman fits the bill perfectly, as the country has quality accommodation; international accessibility (ie international airport and airline serviceability); calibre of local bidding hosts; reputation to host successful events; proactive approach and support; strength in specific field or industry; networking, education and business opportunities and compatibility for English speaking delegates.

HE Khalil Al Khonji, Chairman, OCCI

OCEC jewel International associations look for world-class venue with large capacities to conduct their meetings and conventions. Although Oman lacks such a facility currently, the upcoming Oman Convention and Exhibition Centre (OCEC) will become the jewel of the MICE segment in Oman’s tourism map. The centre being developed by the state-

Table 3: Top 10 Key Industry International Associations by share of the MICE market Medical Sciences . . . . . . . . . . . . . 18% Technology. . . . . . . . . . . . . . . . . . 14.5% Science . . . . . . . . . . . . . . . . . . . . 13.4% Industry . . . . . . . . . . . . . . . . . . . . 6.9% Education . . . . . . . . . . . . . . . . . . . 5.8% Social Sciences . . . . . . . . . . . . . . 5.3% Economics . . . . . . . . . . . . . . . . . . 4% Management. . . . . . . . . . . . . . . . . 3.7% Transport & Communications . . . . 3.5% Commerce . . . . . . . . . . . . . . . . . . 3.1%

owned Omran will enable Oman to bid for regional and international events that require seating capacity of between 1,500 and 3,000. This will add to Oman’s current tourism offer and generate business for other properties through break-out and out of session meetings thus attracting business and leisure activity to Oman that would not otherwise happen. One of the important developments for Oman’s MICE segment is the appointment of AEG Ogden, one of the world’s leading convention and exhibition management companies to operate OCEC. Rochelle Uechtritz, group manager, convention sales development of AEG Ogden says that her company is both proud and honoured to have been entrusted with the responsibility of managing what will become an iconic venue in the Gulf region. AEG Ogden had been involved in the design and planning of the OCEC to date and would now utilise its experience, extensive worldwide network and expertise in preparing the centre for opening and competing

COVERSTORY

for its share of the lucrative business events market. She says that there are more than 200 convention and exhibition centres competing on the world stage for a slice of the business events pie but research already undertaken has identified international conventions with the potential to be held in Oman as far ahead as 2024. Continuing further, she says, as international conference organisers look for venues well in advance for their future events, we as the operator of the OCEC have already begun marketing the venue on a global scale. Omran states that OCEC’s exhibition hall and the car parking facility, which are in the first phase, will be ready by mid-2014. Then the auditorium, banquet halls and meeting rooms will be ready by late 2015. AEG Ogden is aiming at three market segments – conventions, exhibitions and one-day meetings and seminars – for business once it starts operations.

Positive signs Meanwhile, HE Maitha is of the opinion that exhibitions conducted at the Oman International Exhibition Centre (OIEC) along with events like the Muscat

Rochelle Uechtritz, Group Manager, convention sales development of AEG Ogden

Festival and the Tour of Oman (cycling event) have multiple synergies and draw hundreds of people from around the world to Oman generating a lot of economic value for the country. She says that in order to promote Oman as the MICE destination, the

ministry is putting together a complete calendar for the next three to five years. “Further, our partners like the hoteliers are promoting Oman not only for leisure but also for MICE. We have quite a few hotels which already have state-of-the-art facilities for holding conferences and events. Let’s admit that the hotels are promoting Oman as a MICE destination (see Table 1 for list of hotels).” Shangri-La’s Barr Al Jissah Resort & Spa – one of the five star hotels in Muscat – hosts five to six international events annually during peak season. Add to that two to three major local events every month during the high season. In summer, there is less interest from the international market but the hotel gets two to three local events per month.

Peter Donlevy, Director of Sales and Marketing, Barr al Jissah

March 2012

According to Peter Donlevy, director of sales and marketing, Barr al Jissah, “the Sultanate has much to offer to the corporate meetings and incentive market as the hotel provides a five star luxury, influenced by the rich cultural heritage of Oman, creating a unique Arabian experience.” The resort boasts of the largest room inventory in Oman

Furniture which Evoke a Sense of Power

COVERSTORY

with the biggest number of meeting and banquet space. It also has an extensive food, beverage and recreation facility to handle the incentive business.

Upbeat mood Ahmed Saleh Baabood, executive chairman of Oman International Trade and Exhibitions (OITE) who has been involved with the MICE industry for the past 15 years, is very excited about the recent developments in this segment. The expansion of the Muscat International Airport and the increase in direct flights to Muscat by national carrier Oman Air are all going to contribute positively to the growth of the MICE segment in Oman, says Baabood. OITE is among the oldest conference and trade exhibition companies in the country and currently hosts at least 25 conferences, exhibitions and trade exhibitions annually. Many of its events are held at the OIEC located just one kilometre from Muscat International Airport. Incidentally, the OIEC was established in 1985 and has since been the main venue in the Sultanate for all major exhibitions, fairs and conferences. In total, the facility boasts 12,000 square metres of air-conditioned indoor exhibition space and 3,000 square metres of outdoor exhibition space. OIEC is home to a unique customs clearance facility, whereby equipment and documents flown in for any event are assured prompt and speedy clearance from the immigration and customs authorities; complemented by an on-site ROP oﬃce. Ahmed, who is the board member of OCCI and head of its investment promotion committee in-charge of MICE says, “Earlier we used to face constraints to get exhibitors because of the connecting flights and cumbersome visa regulations. But all that has changed now. Besides the new airport and more direct flights, we are also seeing a huge jump in the transport infrastructure like the announcement of the expressway upto Dubai border and the railway project. All this will have a

March 2012

Shankar Bose, General Manager, Bahwan Travel Agencies positive impact on the industry.” The Ministry of Commerce and Industry has opened a new cell for exhibitions underscoring the seriousness of the government to enhance the MICE segment in Oman, informs Ahmed.

Travel industry The spurt in tourism-related activity also has a ripple effect on the travel industry, a key player for MICE. “It is a huge industry as people are always looking for new destinations to conduct such shows,” says Shankar Bose, general manager, Bahwan Travel Agencies. “In the hard world of business, incentives are proving to be a great motivator to spur on performances of executives. For such events, large multinationals do not cut any corners but roll out the best in the hope of retaining loyalty and talent,” he adds. Bahwan Tours and Bahwan Holidays which are the inbound and outbound tour operations respectively of Bahwan Travels handle a combined capacity of over a 100,000 tourists annually. With the Oman Air Holidays JV, they are looking at increasing the numbers significantly.

Bose feels that on a more grander scale, we need iconic structures like the Opera House and something that is unique to Oman, it’s history and the past. The Ministry of Tourism and The Muscat Municipality are doing a great job towards that end and as time flies, you will see Oman develop into a great tourism destination. And along with this development, economic opportunities will continue to abound, he says. “We will need more commercial spaces like the beautiful Sultan Qaboos University Auditorium which can accommodate up to roughly 5000 people in theatre style if we are to host mega events. Besides all this, we can use nature as the background but we need to paint a larger canvas and ensure that Oman is on the map all the year round by promoting Jebel Akhdar, Jebel Shams and Salalah as the summer destinations,” Bose opines. “I think we are coming to a point where Oman’s tourism is taking off in a significant manner,” concludes Bose. We agree with Bose because MICE will give a big boost to tourism in the Sultanate.

ECONOMY

By Oliver Cornock

Eyeing robust tourism growth Oman’s tourism sector is going from strength to strength, as evidenced by the growing international recognition the industry is now enjoying

man has a long tradition of planning. Since 1975, the Sultanate has embarked on a series of five-year plans, setting itself high targets across a range of sectors. Meeting these goals has given the Oman of today the confidence to pursue what is arguably its most ambitious strategy to date: to re-position itself away from oil and gas dependency, and brand itself as a major tourist destination. As part of this plan, scheduled for 2011-15, the Sultanate has committed around $8bn towards tourism-related developments across the country, in an effort to meet the Ministry of Tourism’s (MoT) target of bringing in 12 million tourists by 2020, up from an expected 2 million for 2011. This is driven by a shrewd assessment of the country’s economic outlook. Oman’s complex geology, which makes oil extraction both diﬃcult and costly, as well as its more limited oil reserves in comparison with its neighbours, means that diversifying is seen as the most prudent

March 2012

way of ensuring long-term prosperity. In the drive to boost the tourism sector, Omani culture and tradition are taking centre stage. Oman is experiencing something of a cultural revival, led by a number of festivals – including the Khareef Festival and the Muscat Festival – celebrating Omani customs and traditions. Visitor numbers to these events are on the increase, with around 330,000 people from Oman, the GCC, Asia, and Europe coming to the Khareef Festival in Salalah in 2011, compared to just over 250,000 visitors in 2010. Moreover, the Khareef Festival is expected to bring in even more visitors this year since it will no longer coincide with Ramadan. In 2011 the Muscat Festival drew in 1.2 million visitors from over 180 countries. This year’s event will see the third Tour of Oman, a six-day bike race that draws in competitors and audiences from across the globe, as well as a range of cultural attractions including the Oman Heritage and Cultural Village. Muscat

Municipality expects visitor numbers to the festival to rise to two million in 2012. This is at a time when the wider region, following the global economic downturn and the Arab Spring, is experiencing a fall in tourist numbers, with the Middle East seeing 5m fewer tourists in 2011 compared to 2010, which saw a total of 55m tourists, according to the UN’s World Tourism Organisation. Oman’s tourism sector, however, is going from strength to strength, as evidenced by the growing international recognition the industry is now enjoying. Lonely Planet, the British travel guide, has ranked Muscat as the world’s second-best tourism destination to visit in 2012. Muscat has also been selected by the Arab Tourism Minister’s Council as the Capital of Arab Tourism for 2012.

TOURIST INFLOW Ministry of Tourism seeks to bring 12 million tourists by 2020 $8bn earmarked for tourism developments from 2011 to 2115 330,000 people visited Khareef Festival in Salalah in 2011 In 2011 the Muscat Festival drew in 1.2 million visitors from over 180 countries

its neighbours for a greater share of what is increasingly recognised as an important growth driver; the MICE industry has experienced a 38 per cent rate of growth in the Middle East in the last five years, according to UFI, a global exhibition association.

Looking to India Although the Sultanate has set itself conservative growth rates for its tourism sector, expecting the industry’s contribution to GDP to reach 3 per cent by 2020, data collected by the World Travel and Tourism Council (WTTC) suggest that figure has already been surpassed, putting the contribution at an expected 6.8 per cent (or $4.4bn) for 2011, and rising to 7.7 per cent (or $7.5bn) by 2021. The WTTC also expects an annual growth rate for the sector of 5.5 per cent until 2021. In addition to cultural tourism, Oman is placing special emphasis on developing its meetings, incentives, conferences and exhibitions (MICE) segment, with the opening of a $1bn Oman Conference and Exhibition Centre in Muscat, 4 km from Muscat International Airport. The MICE venue is set to open in 2014 and is widely expected to transform Oman into a major destination for business events in the region. The 2m-sq-metre venue will feature a 3000-seat auditorium, as well as four hotels offering a total of 1000 rooms. The development is designed to help Oman compete with

In particular, the Sultanate has been looking to expand its MICE potential by turning its attention to India. In recent years India has come to represent a key market for Oman – especially in terms of non-oil exports. Ties between the two countries are strengthening, with Oman-India trade recently valued at $5bn. Furthermore, the IndiaOman Joint Commission has identified tourism as one of the areas of special focus for co-operation. Figures from the MoT show that some 220,000 Indian tourists came in October and November 2011, a 50 per cent increase on numbers for the previous year. Seeking to tap into this growing potential, the MoT has just completed a series of road shows, running from Mumbai to Chennai, to promote itself as a heritage and adventure tourism destination, as well as positioning Oman as a leisure and MICE destination among Indian travellers. The Sultanate’s capacity to welcome tourists is set to be boosted by the completion of a new mid-field terminal at Muscat International Airport, due

to open in 2014. The terminal project, which is being overseen by the Oman Airports Management Company (OAMC), is expected to increase passenger traﬃc from the current 6.4m per year to around 12 million. The OAMC is also implementing an expansion project at Oman’s second airport, Salalah. While this mostly serves a regional function, Salalah also caters to international tourism during the Khareef Festival. A new terminal at Salalah will bring passenger capacity up from 500,000 per year to 2 million. Growth in tourism fits well with the broader policy objectives of Vision 2020, the government’s modernisation and economic diversification plan. Oman’s young population profile, with 55 per cent of the population under 20 and 83 per cent under 35, means that the provision of jobs is a key concern in the Sultanate, and one which a growing, labour-intensive tourist industry will be able to support. Some 50,000 jobs will be directly supported by the travel and tourism industry by 2021, according to a recent report by the WTTC. This is also in line with the Sultanate’s “Omanisation” drive, which seeks to raise the proportion of Omanis in employment. Setting itself high Omanisation targets across a range of sectors, tourism is no exception, with 80 per cent of jobs in the sector earmarked for Omanis by 2020. The government has set the target of reducing its reliance on oil revenues to 19 per cent by 2020, down from 47 per cent reliance between 2005 and 2009. With lower oil and gas prices forecast for 2012 due to falling global demand, now is a good time for the Sultanate to press ahead in meeting the objectives of Vision 2020. If it can successfully raise its tourism profile, Oman is likely to become a less oil dependent, economically diverse Gulf state.

The author is Regional Editor, Oxford Business Group

FACE2FACE

Prof Atanu Ghosh, Dean-Alumni & External Relations, Indian Institute of Management-Ahmedabad (IIM-A), one of Indiaâ&#x20AC;&#x2122;s premium business schools, was recently in Muscat to reach out to the alumni of the 50-year old institute in the city. Muhammed Nafie catches up with him for a freewheeling interview. Excerpts:

What is the specific purpose of your visit to Oman? We are looking to revive our alumni relations and activities at various chapters. Today we have got 17 alumni chapters in several countries including the US, the UK, Singapore, Oman, and the UAE. We had a year-long grand celebration of our golden jubilee which concluded in December 2011. And it was the occasion when we decided to reach out to the alumni in order to interact with them, respond to their queries and make them contribute both intellectually and finically for their alma mater. We have already visited the alumni chapters in Singapore and the US (both in the west coast and east coast) and now we are doing it in Muscat and Dubai. In India we did it in Delhi, Calcutta, Bangalore and Hyderabad. We also show them a film on IIM-A created on the occasion of its 50th anniversary. How are you going to utilise the skills and expertise of your alumni for the institute? IIIM-A has got a large number of its former students working as CEOs all over the world. According to a recent survey by a business magazine, a whopping 62 per cent of CEOs of professionally managed companies in India are from IIM-A. The alumni can

March 2012

Tapping the ALUMNI POTENTIAL

play an active role in the progress of the institute in multiple ways. Those who are keen to teach can spend some hours with us to take guest lectures and those who are academically inclined can take even full courses. In addition, as most of them are managing companies, they can assist in preparing various case methods which the IIM-A employs to prepare its students for the challenges of management and leadership. As we have started with the full support of Harvard business school, all our initial faculty members were sent to Harvard to get used to its case methods which we have been suing since last 50 years. These days the cases get obsolete very soon because the environment is changing and information is flowing so fast so that we need to constantly recharge and renew the cases and get new cases. IIM-A have signed MoUs for academic cooperation with various international business schools. IIM-Indore is planning to join other IIMs in offering prestigious management programmes in the Gulf. Do you have any plan to foray into the region? In 2010, the Government of India permitted IITs and IIMs to set up branches in all cities in India and campuses outside the country, and since then they have been proactively seeking opportunities outside India. Till 2010 we were not able to set up our own campuses abroad. However, we had signed MoUs with 70 business schools internationally for academic tie-up. As per these MoUs, we exchange students for three months with various schools in the US, Europe, Australia and China. This has become very prominent in our campus calendar. In addition, IIM-A has a double-degree programme agreement with ESSEC, France and University of Bocconi, Italy. As per this agreement, our second year students will spend a term in France or Itlay while the foreign students are permitted to complete their courses at IIM-A, and they get degrees from both the institutes. Another way of cooperation is to send out our PhD students abroad so

that they complete the course partly from here and partly from there and get their Fellow Programme in Management (FPM), which is equivalent to PhD, from both the schools. Apart from the exchange of students, we also do exchange of faculties. We are facing a faculty crunch. Since 1982 when I passed out from IIM-A, the number of students have grown up 150 per cent while the number of the faculty has seen a marginal increase of below 15 per cent. That is also why we are not venturing out for foreign campuses. However, this does not mean that we don’t have plan to open shops in the region. We would certainly look at the Gulf region to set up an IIM campus in the future. How important is research at IIM-A? Are IIMs and IITs at a level playing field vis-a-vis their counterparts in the West, when it comes to research? IIM-A has made its mark on its Post Graduate Programme (PGP), which is equivalent to MBA, and on our students’ placement as reflected in the successful careers of our alumni which I have already mentioned. What the research meant for us is still a grey area. We consider case research as an important area of research. We try to capture something happening in an organisation or industry and try to build these cases by taking them to class rooms for discussion and analyses. IIM-A has always on the lead for the case research and case studies. We are able to make an impact, when we try to study what is going on in an industry or an organisation. But when it comes to academic and theoretic research the western world is talking about, we are a little bit lacking. Our faculties are driven by their own choices. We don’t really want to push someone to one corner. Some are absolutely interested in research while some are interested in doing consulting with organisations whereas some others are excellent teachers. However, we think that now the time has come for creating some sort of balance in it. However, IITs are doing some

researches which are almost cutting edge and comparable to anywhere in the world. But in terms of number that would not be on a par with a research driven institute in the West. It depends on a lot of other factors such as the number of people available, facilities and funding. The kind of support and funding from government and other organisation in the western world is much larger than institutes in India get. It is said that failures in management education are partly to blame for the global economic crisis. How does management education require evolving after the crisis? Business education is at a major crossroads. Though MBA graduates from top-tier schools set the standard for cutting-edge business knowledge and skills for decades, now the business world has changed. Recently professor Srikant M Datar, an IIM-A alumnus who was the Arthur Lowes Dickinson Professor at Harvard University for 10 years, coauthored a book titled ‘Rethinking the MBA: Management Education at a crossroads’. The book, questioning the conventional business education, examines the importance of synthesizing ‘knowing’, ‘doing’ and ‘being’ in education. The book says knowing or acquiring knowledge which happens in class room must be coupled with its practical application. Even while doing the MBA, the students should go to the organisations to put the knowledge learned into practice. The third one, being, is related to realising what one wants to be and what should be the purpose of one’s life. Recently professor Srikant did four workshops for IIM-A and IIM-Calcutta together to spread this message to other business schools. In IIM- A, we have reviewed our programmes and introducing some of these elements. Similarly we have summer internship where students are supposed to go and apply their theoretical knowledge into practice. We are also trying to introduce courses such as business ethics as part of our programme. MBA programmes need to give the students the heightened cultural awareness and global perspectives they need.

applauseeventsme.com

õ`FGƒL

äÉ`````cô```````°û`````dG π````````°†``````aC’ AGOC k G á`````````«````````fÉ`````````ª````````©````````dG

ALAM AL-IKTISAAD WAL A’MAL AWARDS Oman’s Best Performing Companies 07 May 2012 I Al Bustan Palace Hotel

Stars of the corporate universe, prepare to shine.

Participation by invitation only.

On 7 May 2012, AIWA Awards will once again recognise the best of Corporate Oman. There are few businesses with the vision to see beyond the bottom-line - or courageous enough to go beyond short-term shareholder value and create enduring brand equity. AIWA Awards 2012 will honour and celebrate Omani enterprises and their captains who are an inspiration for the next generation of home-grown entrepreneurs. Instituted by Alam al-Iktisaad Wal A'mal - Omanâ&#x20AC;&#x2122;s premier Arabic business magazine, AIWA Awards are based on performance on a broad range of holistic, qualitative indicators. AIWA Awards 2012 is held under the auspices of

HE Sheikh Sa'ad bin Mohammed bin Said al Mardhouf al Sa'adi Minister of Commerce and Industry

For enquiries, please contact Ahmed on 99860242, 24700896 ext: 362, or email: ahmed@umsoman.com

INTERVIEW

How are prospects bright for the Islamic banks at a time when banks world over are confronted with or trying to stave off credit crisis? When the first Islamic bank came into being some 30 to 40 years ago it was worth only $7mn; but now the concept of Islamic finance has come of age with the total asset investment in Sharia-complaint banks world over amounting to $1.25tn and in some countries it continues to register a growth rate of 20 to 30 per cent. As you mentioned, now the conventional banks are confronted with one of the severest crises in their history, in the wake of global financial meltdown. The financial crisis has turned out to be a commercial crisis and now has evolved to a debt crisis spreading its tentacles across the Europe. Bankruptcy threat looms large over several European countries such as Greece, Spain, Italy and Portugal. Had it not been for some measures adopted by the European Union, some of those countries could already have gone bankrupt. The fragility of capitalism was exposed as the fallout from the credit crunch and the wider economic crisis, demanding a viable alternative. If commercial banks were required to share the profits and losses of their clients, whether in business investments or mortgages, they would be much more careful when choosing which deals to finance. Viewed against this backdrop, Islamic finance plays a constructive role in mitigating the excesses committed by conventional banks. What will be Islamic banks’ potential for contributing to Oman’s economic development in the long run? Islamic banking has immense potential for growth in Oman as it will benefit the people of the country in multiple ways. It will definitely assuage the religious fear and apprehension of people in dealing with banks thereby opening up a plethora of opportunities for investment from people who preferred not to invest their money in traditional banks which they considered religiously prohibited. Releasing these interest free deposits and semi frozen money to be invested

March 2012

Islamic finance is bound to open new vistas for economic development in Oman as it will release the semi frozen money and interest free deposits of those who hitherto preferred not to deal with conventional banks, says Dr Ali Muhyiddin Al-Qura Daghi, Qatari scholar and member of Sharia Council of Ahli Bank’s Al Hilal Islamic banking services. Talking to Muhammed Nafie and Turki al Balushi, he opines that Islamic banks have been more resilient to the global financial crisis than their conventional counterparts. Excerpts:

in Sharia-complaint banks and projects will undoubtedly boost the economic growth of the country. It will also create a number of job opportunities. It will definitely be a win-win situation for all involved, not only the banks but also the public, corporates and the nation as a whole. Bringing more transparency and lesser risks to the transactions, Islamic banks finance the specific products of the clients unlike the conventional banks which give a common loan the can be used for various purposes. Broadly speaking, Islamic banks can provide direct finance for massive projects as capital funds through partnership (musharaka and mudaraba) or they provide indirect finance through leasing (Ijara) and sale contracts. It will be a big incentive for construction and real-estate industry, as happened in Dubai where Dubai Islamic Bank was really instrumental in the massive real-estate development in the city by financing to build several firms, building and other projects. This funding will be a catalyst for robust

economic growth and for reducing unemployment and inflation. What are the major challenges faced by Islamic banks all over the world? I think the new Islamic banks have a lot to learn from the previous experiences of some existing players in this segment. They need to properly study and understand the mistakes done by some banks especially in providing Islamic products. For example, going for ‘Organised Tawarruq’ instead of ‘Classical Tawarruq’ was one of the mistakes done by some banks. (‘Tawarruq’ in general is a transaction where one party buys some goods on credit at a marked-up price and sells the same at a lesser value for the purpose of getting cash). ‘Classical Tawarruq’ is the traditional method whereby the financier sells the goods to the customer who then disposes of the goods in the open market. In ‘Organised Tawarruq’ it is the financier who manages the entire tawarruq process. But ‘Classical Tawarruq’ is a disciplined way of transaction capable of moving the market effectively.

Islamic banking has immense potential for growth in Oman as it will benefit the people of the country in multiple ways

However, unlike conventional banks that provide only interest loans, Islamic banks offer the customers a wide range choices and products such as Shira (purchase), Istijrar (leasing), Mudharaba (speculation), and Musharaka (participation). Hence is the widespread acceptance of Islamic banks even in non-Muslim countries, especially in the western world. There are several Islamic banks in the United Kingdom worth ÂŁ30bn invested mainly by non-Muslims. In Europe, Islamic banks are gaining currency especially at a time when the entire region is going through doldrums caused by financial crisis.

How feasible will it be for conventional banks to offer Islamic banking services? We in Sharia supervisory bodies stipulate that conventional banks seeking to open Islamic branches or windows must adhere to several prerequisites and basic regulations. The management must be independent and there should not be any mixing of funds. The Central Bank of Oman also stipulates that the capital investment should be new, and accounting separate, in addition to employing independent automated software for Islamic banking products and submitting financial reports for the approval of the Sharia supervisory boards.

What will be you doing in Oman, in your capacity as a member of Sharia council in Ahli Bankâ&#x20AC;&#x2122;s Al Hilal Islamic banking service? In Oman, we will be giving the banks the expertise and guidelines and updating them about the best practices in the Islamic banking. We will also issue fatwas and monitor the practices of the banks and the decisions taken by them from time to time. Basically, there are three types monitoring that an Islamic bank or window has to go through: internal auditing from within the bank, auditing by the Central Bank of Oman and auditing by an external body which supervises whether the bank complies with the Sharia regulations.â&#x20AC;&#x201A;

LEGAL

Executive Regulations to Income Tax Law The new executive regulations to Income Tax Law comprise eight parts and a total of 154 articles and will need to be carefully considered by tax payers

n June 2009, Oman issued a new tax law (Royal Decree No. 28/2009) which was effective from tax year 2010. The tax law had provided for the Minister Responsible for Financial Affairs to issue executive regulations (ERs) and decisions. Pending the issue of such ERs, the prevailing regulations and decisions were to continue so long as they were not inconsistent with the provisions of the new law. The Ministerial Decision (MD) No.30/2012 was issued on January 16, 2012 and was published in the Oﬃcial Gazette on January 28, 2012. The ERs comprise eight parts and a total of 154 articles and will need to be carefully considered by tax payers in ensuring compliance with the Income Tax Law.

• Registered capital shall not exceed RO20,000;

ERs dealing with tax compliance obligations

• Gross income realised during the period shall not exceed RO300,000; and,

New income tax forms The ERs have prescribed 18 different forms (including tax returns) for particulars to be submitted to the SGT by different categories of tax payers and government bodies. These forms are tailor made to collect relevant information on a timely basis and is expected to speed up the assessment process.

The author is Partner and Head of Tax, Oman & United Arab Emirates, KPMG

March 2012

Small companies excluded from submitting tax payers’ data, returns and Financial Statements In a significant move towards alleviating small companies from the compliance requirements, the ERs, as envisaged by the Income Tax Law, have spelt out the criteria for excluding submission of tax payers’ data and returns. These are:

• Gross income realised shall not exceed RO100,000; and, • The average number of employees during the period shall not exceed 8; employees for this purpose shall include temporary employees. Further, tax payers are exempted from submitting financial statements that are normally required to accompany the final tax return if they meet the specified conditions which are: • Registered capital shall not exceed RO50,000;

• The average number of employees during the period shall not exceed 10. There are additional provisions specified to allow the SGT to monitor compliance with these conditions including the requirement to have a formal decision issued by the SGT for such exemption. Foreign companies are not eligible for the above exemption. Right to inspect documents and records at the tax payer’s premises In a significant move aimed at strengthening compliance, the ERs provide for a right to the tax oﬃcials to carry out inspection at the tax payer’s premises during normal working hours of the tax payer by providing 10

By Ashok Hariharan

days prior notice. No inspection shall, however, take place of documents or records which relate to a period 10 years prior to the year in which the inspection is made. Tax payments in instalments and waiver from additional tax In a move to provide clarity, the ERs describe the conditions to be met before the SGT may approve payment of taxes in instalments. This will help tax payers who genuinely face financial diﬃculties. The tax payer is, however, required to provide appropriate guarantees. The ERs also specify the conditions to be met for the SGT to exempt a tax payer from additional taxes levied for delay in payment of taxes.

ERs dealing with computation of taxable income General rules for deduction of expenses In order to claim deduction for expenses, it is necessary to satisfy the following conditions:

• The expenses should be real (i.e not notional) and be actually incurred; • The expenses should be related to the tax payer’s activity and should be necessarily incurred to realise the gross income; • The expenses should be recorded in the accounts; and, • The expenses should not be otherwise disallowable under the Income Tax Law. The SG has the right to limit the deduction to the value of services received by the tax payer. Thin capitalisation rule introduced The ERs specify, amongst other things, a requirement for the debt equity ratio not to exceed 2:1 before a deduction can be claimed in respect of interest on loans from related parties. This rule does not apply to interest costs incurred by

Snapshot of the new regulations Executive Regulations containing 154 articles regulating the tax laws of Oman issued New income tax return forms introduced for different categories of tax payers Exemption for small businesses from filing returns and financial statements Right to inspect documents and records at the tax payer’s premises Rules for payment of tax in instalments and waiver from additional tax Thin capitalization rule for claiming interest on loans from related parties Removal of artificial capping of the allowance for head office expenses Stricter rules for claiming debts written off Tax treatment of finance leases to be in line with IFRS Stricter criteria for renewal of tax exemptions

banks and insurance companies, permanent establishments (PE) of foreign companies and proprietary establishments. In case of PE’s of foreign companies, the Head Oﬃce (HO) should have obtained the loan from an unrelated third party for the benefit of its PE. This condition does not apply to foreign banks. In case of sole proprietory establishments, the proprietor should have been obtained the loan from banks registered in Oman. Relief in respect of HO expenses for foreign companies The long awaited removal of the punitive provision limiting HO overhead expenses to the average of the allowance given in the previous three years has finally come through in the ERs. Foreign companies can now claim up to 3 per cent of gross income as a deduction (5 per cent for banks and insurance companies and 10 per cent for major industrial companies using modern techniques). The limit of 5 per cent for foreign insurance companies is based on the gross value of premiums collected after deducting the reinsurance premiums. No deduction is to be allowed for HO expenses in respect of the HO’s role in supervision and control. Treatment of finance leases In line with the Income Tax Law, the ER’s specify rules for deducting expenses relating to capital assets acquired through a finance lease. These are: • The lease arrangement should be considered as a finance lease in the accounts in accordance with International Financial Reporting Standards (IFRS). • The lessor and lessee would be considered to have a lender/ borrower relationship.

LEGAL

• The lessee – and not the lessor – would be allowed a depreciation deduction in respect of capital assets acquired through finance lease. Interest on lease will be taxed in the hands of the lessor based on interest shown in the financial statements complying with IFRS. A corresponding deduction would be allowed to the lessee. • The termination of the finance lease without the lessee acquiring ownership rights will be considered as disposal of the capital asset. Writing off of debts The ERs specify that no deduction will be given for debts written off unless: • The debt has arisen due to transactions in the normal course of a tax payer’s business, which are necessary to realise gross income; • The debt should have been previously accounted in the books of the tax payer; and, • The tax payer should have complied with the procedures specified in the ERs for the recovery of the debt. The procedures include legal proceedings for recovery. An exception is provided only if the value of debt does not exceed RO1,500. Debts which are written off on account of any discount or settlement reached with the debtor shall also be excluded from the requirement of complying with legal proceedings. However, this should be documented and supported. Contributions to pension and provident funds Rules have been specified for claiming deduction in respect of contributions to pension funds established in and outside Oman. These include: • The pension fund set up in Oman should be independent from the tax

March 2012

payer; its funds shall be kept separate from the tax payer’s funds and invested for the fund’s own account. • The tax payer’s contributions to the pension funds and the fund’s obligations to pay the beneficiaries should be in accordance with its rules and schemes. • The tax payer should submit to the SGT copies (approved and attested if the fund is set up outside Oman) of the regulations and schemes of the fund, the licenses issued to it and, in the case of pension funds set up in Oman, the audited financial statements of the fund.

The regulations seek to limit additional exemptions only to those entities that are not generating sufficient profits and therefore, require financial support In case of provident funds, they should be established in accordance with the Oman Labour Law and registered with the Ministry of Manpower in Oman. Remuneration to owners and directors The rules in this regard are substantially in line with the previous regulations and can be summarised as follows: • For any Omani joint stock company, the remuneration should be in accordance with Article 101 of the Commercial Companies Law. • For any other Omani company or proprietary establishment, the owner/partner should be engaged

in managing the tax payer’s activity on a full time basis; his capacity as a manager should be evidenced by the constitutive contract; and the remuneration in whatever form should not exceed RO1,000 per month individually and 10 per cent of taxable income (before deducting such remuneration and brought forward losses) collectively. In the case of propertiary establishments and Omani companies practicing professional activities, the limit is increased to RO3, 000 per month individually and 30 per cent of taxable income (as described above) collectively. This 30 per cent limitation was not there in the previous regulations. Other rules relating to remuneration including rent for property provided by the sole propertier remain unchanged.

Exemptions from income tax Detailed rules and conditions have been set out for the activities qualifying for the initial five year tax exemption including the requirement to make necessary applications within stipulated time. These are substantially in line with the previous regulations. More stringent criteria have however been specified for renewal of tax exemptions beyond five years. These include the condition that the net profit (after deducting losses) realised by the tax payer during the initial exemption period should not exceed 50 per cent of the paid up capital at the beginning of the initial exemption period. Essentially, the regulations seek to limit additional exemptions only to those entities that are not generating suﬃcient profits and, therefore, require financial support in the form of additional tax exemptions. The ERs also provide for equality of tax treatment for GCC citizens (natural and juristic persons), and rule for donations and sponsorship fees allowable as a deduction.

www.omanprogress.com Omanâ&#x20AC;&#x2122;s Progress is online www.omanprogress.com has the most coprehensive chronicle of Omanâ&#x20AC;&#x2122;s progress while maintaining the same cutting-edge editorial standards. In-depth content, high-end interactive features combined with enhanced user functionality keep you abreast with the nationâ&#x20AC;&#x2122;s development as it happens when it happens. Easy search

Access to archives

Regularly updated information

Direct hyperlinks to organizations websites and e-mail addresses

Ongoing improvements in design

Quick reference to advertisers index

INFORMATIONTECHNOLOGY

By Shatha Al Maskiry

Portfolio management and cost reduction It is fundamental for portfolios to strike a good balance between “business as usual” activities and the appropriate level of growth

ompanies in Oman are beginning to review their IT project portfolio to cut costs and maximise value, and as part of this process, some projects have been put on hold, delayed or cancelled. It means that portfolio management is still at infancy on the capability maturity model, and as a result, this has raised questions as to whether the right decisions are made at the right time with the right level of objective analysis. Companies now strive to work around budget constraints and quick decision making; and they have no choice but to put their portfolio management to the ultimate test. Some of the trends I observed in Oman are absence of a governance process, lack of executive support or broad organisational support, scarcity of qualified resources, departments working in silos, poor selection process, no visibility of what is being done at an enterprise wide level, loose accountability, and nonexistence of objective measures for monitoring and reporting performance; hence overloading the organisation’s capacity with multiple projects that are mishandled and not aligned with its strategic direction.

The author is Managing Director, Protiviti Member Firm

March 2012

Due to lack of awareness on how crucial it is to manage project portfolios effectively, some companies continue to impose themselves with risks such as operational disruption for months and even years, uncontrolled costs, conflicts of resources and priorities, and ultimately fail to derive a return from its investments be it in information technology, finance, HR or operations.

The issue is more serious for companies who do not measure or monitor their portfolios carefully; hence, the companies bleed considerably more; not just at an operational and financial level, but also compromise the morale of their workforce. It is fundamental for portfolios to strike a good balance between “business as usual” activities and the appropriate level of growth. It should also be flexible to swiftly adapt to business changes because what could have promised a good return at inception may no longer deliver value in the existing conditions. HarmoniSation, integration and business intelligence are some good remedies; and I am beginning to see a positive trend whereby companies are investing in management information systems for data reporting. This enables a wide spectrum of valuable measures to be defined, reported and monitored so that executives are empowered with reliable and accurate information to arrive at swift decisions and tough calls to either-go-or-kill projects. Companies must have three crucial goals for benefit attainment: to do the right things (demand management), to reap the right benefits (value management) and to do them well (programme management) with accountability. It can be achieved by implementing a metricsbased risk and value management approach to assess current projects consistently against changing business priorities and to have the ability to visualise where ineﬃciencies exist a nd how to maximise the value of IT investments.

The woman who can create her own job is the woman who will win fame and fortune. -Amelia Earhart

Celebrating Arab Mother’s Day and International Women’s Day in one issue, 8LI ;SQER WEPYXIW XLI LMKL ÂMIVW

FROM THE HOUSE OF

UMS

Insights, information, news and trends, fashion and careers, there’s a whole lot on our minds when we put together content for the evolving you. Here’s where you rediscover yourself, month after month.

For enquiries get in touch with: Fareeda 99516811, fareeda@umsoman.com Pooja Verma 99868035, pooja@umsoman.com

www.almarathewoman.com

the evolving you

Meet The Woman on

NHI launches ‘Smiles of Oman’ training programme Customer care skills are an important facet for services industry which this programme aims to impart to employees of establishments that have constant customer-employee interaction. An OER report

he National Hospitality Institute (NHI) has launched ‘Smiles of Oman’, a first-ofits-kind training programme to upgrade customer care skills of employees working in the services sector like banks, retail shops, telecommunications, hotels etc. ‘Smiles of Oman’ has been conceptualised by NHI after receiving numerous feedbacks about the challenges faced by companies in the employeecustomer interaction. ‘Smiles of Oman’ is expected to provide employee with interpersonal skills on how to deal with customers with a smile. “Every organisation or company which adopt our ‘Smiles of Oman’ training programme for its employees will be given a ‘Smiles of Oman’ logo which they can prominently display in their shops in addition to badges which will be given to each individual who undergoes the training,” says Robert Maclean, principal, NHI, while giving details of this unique training project. By displaying the ‘Smiles of Oman’ logo, that organisation sends out a message to the customer that their employees have been trained in customer care which will generate a certain level of confidence among the visitors. According to Maclean, ‘Smiles of Oman’ has a very serious commercial value especially for establishments like large retail chains as these are the places where there is a lot of interface with people.

March 2012

“One of the major challenges being faced by the services industry is the poor interactive skills of employees which has prevented many a customer from a return visit. But with ‘Smiles of Oman’ programme, the added value for organisations is the fact that you are showcasing your concern towards your customers by making a business statement that your employees are trained in professional customer care,” adds Maclean.

“I hope that businesses will see our programme and be inspired to develop their people on the right note as the perception of a company is derived from its people’s interaction with their customers. We see this programme as merging customer care which deals with people and customer service which deals with products. In short it is all about merging people and products to give the customers a better experience,” says Maclean.

NHI is the leading provider of quality vocational training for hospitality, catering, and travel industries in the Gulf region. It operates with the clear intent of providing the most comprehensive and professional training possible. While providing expert training with a focus on internationally accredited vocational courses, NHI continually strives to build its portfolio of deliverable courses to cater to the growing needs of the community. With this stated intent, NHI is rolling out this unique programme for companies in the Sultanate with the hope that ‘Smiles of Oman’ will set a new benchmark for customer care. Maclean emphasises that customer care is all about dealing with people and is entirely different from the concept of customer service.

‘Smiles of Oman’ programme is tailored in such a fashion as to instill confidence among the employees about their skill to deal with hundreds of people with a smile and it will also send across a message that people interacting with customers at the till in a retail store or a reception desk in hotel or bank are all trained professionally. “In the long run, ‘Smiles of Oman’ will lead to a better retention rate of staff as you will have contented employees dealing with customers with a smile on their face. This will in turn bring back the customers many times over to a particular place and generate more business for itself. So it is going to be a win-win situation for everyone with ‘Smiles of Oman’,” adds Maclean

0&3 T $PNQBOZ 4QFDJBM PO 0NBO 0JM .BSLFUJOH $P

4DBMJOH /FX )FJHIUT 1

HEALTH

Pursuit of excellence

Murad urges other hospitals in Oman to try to get the accreditation as it will add to the quality of healthcare services in the country. “We believe in healthcare professionalism. That is why I want all other hospitals in the country to get the accreditation so that it will be the society that will benefit at the end of the day. If every hospital pushes them up, the health care system gets better in the country.” “It is really a proud moment and it shows a visible commitment towards quality and culture of excellence promised by MPH”, adds Rozmin Nizar Punjani, quality education manager. “The accreditation testifies to our commitment to reduce the medical errors and infection rates, and to improve the safety and quality of patient care. The evaluation has been a two-year process where we attached top priority to ensure a safe care environment and to reduce risks to patients and the staff. We set up the policies to comply with 14 chapters of Joint Commission and had a rigorous training programme to implement them practically. Intensive training and awareness programmes were done for the entire staff and we did internal audits also.”

Emerging as the first hospital in the Sultanate to win the prestigious Joint Commission International (JCI) accreditation in recognition of high quality healthcare standard, Muscat Private Hospital positions itself as one of Muscat’s premier private medical facilities. An OER report

arking an important milestone in Oman’s health care sector, Muscat Private Hospital (MPH) became the first hospital in the country to be accredited by the prestigious USbased Joint Commission International (JCI). The accreditation was awarded to the hospital following a rigorous on-site evaluation by an international surveyor team of healthcare experts. “Being the first hospital in the Sultanate to get the JCI accreditation

March 2012

means a lot for us,” says Murad Soner Kucukkaya, hospital administrator. “Through this accreditation the JCI tells the people that we are safe and we operate based on certain topnotch standards. It demonstrates that we are accomplishing our mission of becoming the leading provider of healthcare in the Sultanate. We believe that this very important designation reaﬃrms our commitment to the community as we accord top priority to ensure our patients’ safety and to provide quality healthcare services”.

Says Dr Mohammad Al Obaid, head of ER, “It involved a lot of complicated processes which includes how you enroll a patient in the hospital, how you are recruiting your staff, how you keep your medicines updated and how you employ different diagnoses etc.” The surveyors spent four days interviewing staff and hospital leaders on policies and procedures, looking in detail at hospital care for individual patients. In addition, they surveyed each department individually. The physical plant of the hospital, equipment and services were subjected to evaluation. Focus was also placed on aspects such as patient safety, patient rights, medication management, policies and procedures, surgical infection and credentialing of medical staff and nurses, leadership of the organisation among many others.

ENVIRONMENT

Reusing water Using treated eﬄuents supplied by Haya Water, largescale water users such as golf courses can make a significant and positive contribution to the environment

aya Water will supply treated effluent for the irrigation of the Ghala Golf Club facility, adding the golf facility to its growing list of customer in the Muscat area base for the treated effluent produced as part of the company’s ongoing water reuse project in the Muscat Governorate area. Golf courses are already among the biggest consumers of treated effluents produced by Haya Water as a wholly beneficial product of the company’s ongoing world-class water reuse project that will provide a state-ofthe-art system for home owners and businesses in the Muscat area. The treated effluent is an environmentally friendly and highly cost effective solution to largescale water users who otherwise have to depend on desalinated water or potentially deplete existing groundwater supplies. By using treated

effluents, golf courses like Ghala Golf Club and others are able to make a significant and positive contribution to the environment and work with Haya Water to help the company achieve its long-term objective of making Muscat a better city. Says Engineer Khalid al Lawati, senior area manager, Haya Water, “We are delighted to finish this project and add Ghala Golf Club to our growing number of customers in the Muscat Governorate area who are able to benefit from the treated effluent that our water reuse project is producing.” The effluent will be provided to Ghala Golf Club via a six-kilometre pipeline from Haya Water’s Al Ansab treatment plant, which is largest Submerged Membrane Bioreactor (MBR) treatment plant in the region. The connection line to Ghala Golf Club will also provide Haya Water the opportunity to supply treated effluent to other customers

along the Muscat Expressway. Says Bruce Fennessy, Ghala Golf Club’s general manager, “We are delighted to have entered into this partnership with Haya Water and benefit from their excellent treated eﬄuent product. Golf courses are notorious for utilising a lot of water for growth and maintenance which is why we are so pleased to have sourced a cost-effective, value- for-money and most importantly, an environmentally sustainable solution for the club. We are sure that Haya Water will continue to exceed our expectations and we look forward to their continued support in helping to develop golf in Oman.” Thousands of kilometres of pipeline have been laid to connect homes and businesses to the new network that will replace the old septic-tank system that is currently used by most properties in Muscat.

PERISCOPE

Potential return in Schlumberger and Halliburton Technology in 2012 is not just about the Cloud in Silicon Valley or genetic engineering in a biotech lab but also suffuses the DNA of the oil & gas business

The author is a renowned investment banker based in Dubai

March 2012

chlumberger is the world’s leading oil field services colossus, a firm that is transforming the future of energy with its technological prowess in hydraulic fracturing, oilfield reservoir management seismic and deepwater drilling services in 80 countries in all the planet’s major and emerging oil provinces. Deepwater drilling is a high stakes, high risk, high tech project akin to NASA’s space shuttle programme or the building of the Giza pyramids in ancient Pharonic Egypt, a testament to our species’ quest for the ultimate frontiers of technology. Schlumberger, which spends one billion dollars a year on tech R&D, is a critical partner of all the world’s state owned companies who control the planet’s oil reserves. And it sponsors so many drilling projects as well as Big Oil supermajors. Technology in 2012 is not just about the Cloud in Silicon Valley or genetic engineering in a biotech lab but also suffuses the DNA of the oil & gas business. Fracking alone has exponentially increased US natural gas and liquid fuel reserves/ production and has geopolitical implications as it will reduce America’s reliance on Arab/OPEC imports and Poland’s dependence on Russian gas. Schlumberger is Petrobras’s contractor in the deepwater Santos Basin in Brazil, has

worked with Saudi Aramco, ADNOC and Kuwait Petroleum Co. for decades, and is courted by Rosneft and the Kremlin as much as by the Chinese Politburo to develop unconventional gas reservoirs in the Middle Kingdom. It is ironic that Schlumberger shares fell from 95 in July to 68 now even though West Texas/Brent have spiked higher due to a spectrum of geopolitical black swans – Iran’s naval war games on the Straits of Hormuz, protests in Moscow, the Boko Haram bombings in Nigeria, the escalation of violence in Syria and Yemen. As long as oil prices remain above $80, I can see no scenario where upstream exploration drilling metrics would hit Schlumberger. This is particularly true in Brazil, offshore West Africa, Kurdistan, China and the Russian Arctic. The Gulf of Mexico and the North Sea are now cheap call options on SLB. It is entirely possible to envisage $5 in EPS in 2011 and for the shares to be rerated to their previous 20X valuation range. This means Schlumberger has the potential to rise to $100 a share. The stock market is skeptical about the Smith International (SII) takeover’s integration risk but SII is a crown jewel in the brave new world of deepwater drilling and hydraulic fracturing. Schlumberger is clearly a bargain in the 60-65 range for a one year target of $100.

By Matein Khalid

Halliburton’s potentials Halliburton has huge money making potential in 2012, as it is entirely leveraged to the shale oil revolution in Texas, Oklahoma and the Rocky Mountain states. This means US land rig counts; drilling and pressure pumping will rise; and the oil and gas upstream advantage for Halliburton. HAL, is after all, the number one vender of pressure pumping technologies in North America. The company, freed from the malign ghost of former CEO and US vice president Dick Cheney, long divested its contract construction business KBR, which had razor thin margins and headline risk. HAL has even wrested international market share from its rivals Banker Hughes and Weatherford, though Schlumberger still rules the roost. Halliburton has growth metrics and can easily deliver 25 per cent EPS gains in 2012 and 2013. Amazingly, it trades at a rock bottom valuation of a mere 8.5 times forward (2012) earnings and barely 3.6 times enterprise value to EBITDA. US pressure pumping prices and the land rig count are bound to rise as the shale oil revolution accelerates, though Mocondo lawsuits are one reason why the company trades at a Cinderella valuation. I am convinced that Halliburton is a compelling buy in the 30 – 32 range for at least a 50 target.

Advantage China Emerging markets as an asset class were a disaster in 2011, as the collapse of the Sensex (and the Indian rupee) and the downtrend in the GCC market demonstrated. Yet Chinese shares are now trading at below 9 times earnings, a valuation that is near its postLehman lows. China’s central bank (PBOC) will now engage in an epic banking reserves ratio cut programme since its CPI rate has peaked at 6 per cent. Chinese equities have historically been highly correlated to easy money and liquidity cycles. Unlike India,

As long as oil prices remain above $80, upstream exploration drilling metrics would not hit Schlumberger China faces no risk of major earnings estimate cuts and property prices have been falling in the Middle Kingdom since 2010. Of course, as export slows and Europe slips into recession, China faces hard landing risk and 2012 is a year of political transition as President Hu Jintao and Prime Minister Wen

Jiabao are succeeded by a new generation of Politburo leaders. An oil shock or a property crash could well lead a new wave of selling, as would a Greek default. However, Chinese banks such as ICBC, Bank of China and China Construction Bank demonstrate deep value. A low beta, high yield defensive alternative to the Chinese banks is the New York ADR of China Mobile, the world’s leading telecom. I am less enthusiastic on Hong Kong shares, as I believe HSBC and the major developers will pressure the Hang Seng index. If, as Den Xiaoping recommended, getting rich is glorious, China’s megabanks and telecoms shares at current levels definitely might help earn some glory!

No effort is good enough, unless you

In association with

Ministry of Environment and Climate Affairs

www.omangreenawards.com

Under the auspices of

H E Mohamed Al Toobi Minister of Environment and Climate Affairs

5 June

2012

Initiative

What’s your claim? Nominations are open for Green Initiatives that can inspire sustainable measures for a greener HQYLURQPHQW :ULWH LQ WR XV DERXW \RXU LQLWLDWLYHV WKDW JR EH\RQG SURÀWV DQG FRQWULEXWH WR preservation of our environment. OMAN GREEN AWARDS 2012 - Oman’s leading platform that brings together socially conscious private and government institutions to recognise and reward green initiatives that inspire the nation to action. You could nominate your own initiative, your organisation’s initiatives or any individual’s initiative.

For nominations please log on to our website or call 24700896 For partnership enquiries please call Ahmed 99356490

Nominations close on 10/04/2012

AN UNMISTAKABLE

PRESENCE

AUTOTALK

March 2012

The Chrysler 300C offers great styling, surprisingly agile handling and plenty of legroom. An OER report

hen the original Chrysler 300 debuted in 2005 read the modern original, as the nameplate first appeared in 1955), it was a dramatic affirmation that the classic American sedan – a big, rear-wheel-drive, V-8 – could still be relevant. With its blocky, vaguely Bentleyesque design, the car was an immediate hit. It was a darling of today’s tastemakers, the hiphop crowd, and was frequently customised. Much was made of the fact that Snoop Dogg phoned up then-Chrysler president Dieter Zetsche looking to get one. In the following years, the fervour over the 300’s styling cooled, and people began to take a more critical look at the car underneath. Given Chrysler’s tumultuous years and new ownership under Fiat, it’s safe to say that expectations for the revamped 300 were not high. The new 300, however proves to be one of the biggest surprises in recent automobile history. It’s a sterling example of Chrysler’s technical and engineering prowess.

Turning a new leaf The reworked sheet metal appears at first to be just a tweaking, but it actually incorporates significant changes, such as a less upright windshield and massive pillars, both of which aid visibility. The car also offers a lot more features like LED daytime running lights, LED tail lamps, and a more chrome-heavy visage. The more evident changes are inside. The visuals are brighter and glitzier, starting with a standard 8.4-inch touch-screen that incorporates a variety of controls, although there are large knobs and some physical buttons for important HVAC and audio functions. The other good news is that the screen’s touch points are large and the logic is clear. Gauges with thick chrome surrounds and bright blue LED lighting (day or night) also makes quite a visual impression, and real wood trim is liberally used, including on the thick rim of the steering wheel. The oversized seats are comfortable, the optional leather is high quality, and soft-touch surfaces abound. The list of standard and available features

is long. Options include adaptive HID headlamps, blind-spot warning and rear cross-path detection, adaptive cruise control with forward collision warning, and a panoramic sunroof. Standard items (on the 300C) include heated and ventilated seats, heated rear seats, heated steering wheel, power steering column, heated and cooled cup holders, Nappa leather, keyless ignition and remote start, navigation, a backup camera, and LED ambient interior lighting.

More than skin deep The reworking of the 300, however, goes deeper than upgrading the interior and adding a lot more equipment. There’s been some reengineering of the car underneath, and that’s noticeable too, once you drive it. There’s a new electric power steering system, and it’s tuned well enough – precise and well weighted – that it easily could pass for hydraulic. The suspension has been revamped, and on the 300C AWD, which has the Touring-tuned Suspension (larger anti-roll bars and firmer dampers), it felt pleasantly tied-down but still delivered an exceptionally comfortable ride – particularly given the standard 19-inch wheels. Engineers also threw a bunch of noise-reduction measures at the car, and indeed it is a quiet cruiser. The V-8 powertrain essentially carries over, and the much-vaunted Hemi and the fivespeed automatic turn out to be one of the strongest aspects of the new car. The Hemi is sweet sounding and powerful. The optional allwheel-drive system provides the exhilaration of a sports car. As an example of a true, American-style luxury car, the 300 pretty much stands alone. The 300 has it all – a powerful V-8, rear-wheel drive, a roomy interior, plenty of flash, lots of gadgetry, and solid street presence. The most surprising thing about the 300 is that all the chrome and leather, all the electronics and LEDs, do not feel like a thin veneer of glitz papering over a cheap substrate. The car is quiet, the powertrain is smooth, the steering is direct, the seats are firm, and the ride quality is good.

AUTO NEWS

COMES BMW 6 SERIES GRAN CO´U ´ PÉ

ALL-NEW PEUGEOT 508 European Motors, the exclusive distributor for Peugeot in Oman showcased its latest icon in the Peugeot line-up, the all-new 2012MY 508 saloon, during the Muscat Festival at Qurum Natural Park. “The Peugeot 508 is a modern, forward-looking vehicle, perfectly attuned to the aspirations of customers who have moved with the times: demanding, dynamic and responsible,” says

March 2012

terms of aesthetics, emotionality and modernity. Venturing into a new vehicle segment once again, BMW channels athletic elegance, powerful engines and sophisticated chassis technology to make the new BMW 6 Series Gran Coupé a handsome addition to its 6 Series range. The latest model also makes its mark with exclusive equipment features and a level of practicality unmatched by its premium fourdoor Coupé rivals.

Bob Seshadri, general manager of European Motors. “Peugeot is promising a big stride forward with this executive vehicle as it embodies a combination of efficient power train and high specifications and luxury and great value for money with prices starting from just RO9,990.” The 508 is being offered to customers in the Sultanate with class leading and efficient power train technologies.

VOLKSWAGEN'S SOHAR ROAD SHOW Volkswagen Oman attracted hundreds of people to its opening weekend road show in Sohar. Over 130 people have taken up the opportunity to test drive a Volkswagen from the wide range of vehicles on display at the special road show stand. The

The all-new BMW 6 Series Gran Coupé – the first four-door Coupé in the history of the brand – will go on sale in the Middle East in the middle of 2012. Making its global debut at the Geneva International Motor Show in March, the third model in the BMW 6 Series line-up follows in the tracks of the Convertible and Coupé that launched in the region early in 2011, and is set to establish a new benchmark in the top-class premium segment in

two days at the Safeer Mall in Sohar proved a great success and Volkswagen Oman general manager James Oliver said he was very encouraged by the response from the general public and the hugely positive reaction to taking the brand out on the road.

NEW CHRYSLER 300C INTRODUCED IN OMAN Dhofar Automotive, the exclusive distributor for Ram, Dodge, Chrysler and Jeep in Oman, introduced the new best-in-class 2012 Chrysler 300C at the Muscat Festival, featuring a state-of-the-art eight speed automatic transmission on the V6 variant. Chrysler Group is the first domestic US automaker to feature the state-ofthe-art ZF eight-speed automatic transmission in its vehicles with the new 2012 Chrysler 300C which offers world-class technological innovation and quality - while delivering stylistic distinction and premium E-segment sedan features. “The

300C embodies Chrysler’s vision of what a large Executive sedan should be,” says Chris Edwards, general manager, Dhofar Automotive. “The 300C with rear wheel drive appeals to a wide audience base, thanks to their awesome blend of luxury and performance.”

MITSUBISHI HOSTS EVO TEAM

GM REGISTERS 25 PER CENT SALES GROWTH IN JANUARY General Motors’ dealers in the Middle East reported total sales of 10,349 vehicles in January 2012, with a 25 per cent increase compared to the figures in 2011. The outstanding sales result represented GM Middle East’s highest January sales ever as demand continues to grow for the company’s line-up of passenger cars, crossovers, sport utility vehicles (SUVs) and pickups across the Chevrolet, GMC and Cadillac brands. The strong start

to the year was driven by robust sales of GM’s crossover vehicles, which increased 88 per cent in January with impressive sales of the Chevrolet Captiva (up 226 per cent) and the Cadillac SRX (up 68 per cent). Sales of SUVs grew by 46 per cent, helped by strong sales of the Chevrolet Tahoe (up 67 per cent), while pickups registered 33 per cent growth led by an 85 per cent sales gain for the Chevrolet Avalanche and a 35 per cent uplift for the GMC Sierra.

Mitsubishi Oman has hosted a special visit by the ever growing Omani Evo Team to its showroom in Nizwa followed by a tour of the historic city and surrounding area as the company strengthens its strong ties with Evo owners across the Sultanate. The convoy of 25 Mitsubishi Evo cars with 45 members was welcomed at the showroom premises in Nizwa by

‘MUSCLE CAR OF THE YEAR’ The Chevrolet Camaro Convertible has been awarded the “Muscle Car of the Year 2011” by Evo Middle East. The award was presented to John Stadwick, president and managing director of General Motors Middle East operations, by editor-in-chief of Evo magazine, Bassam Kronfli. “We are thrilled with this award and the recognition the Camaro Convertible has received from Evo magazine” says Stadwick. “The

AUDI TO COMPETE AT LE MANS Audi will compete in the 80th running of the legendary 24 Hours of Le Mans with a total of four LMP1 sports cars. Two of the four cars in action will be equipped with hybrid drive for the first time. Audi Sport Team Joest also follows a two-pronged approach in the newly created FIA World Endurance Championship (WEC) during the 2012 season. Following the first win for a TFSI engine (2001) and

the historical first triumph for a diesel powered car (2006) the brand with the four rings targets yet another technical milestone at the world’s most famous and most important endurance race. “To develop the hybrid technology for Le Mans is at least as ambitious and challenging as our diesel project was in its early stages,” explains head of Audi Motorsport Dr Wolfgang Ullrich.

sales staff before setting off on a tour of Nizwa also accompanied by a number of local Lancer owners from the area. With their ROP escort in place, the Evo convoy was soon attracting a considerable amount of attention from the public admiring the vehicles that have been the basis of Mitsubishi’s success in rallying both in Oman, the region and around the world.

introduction of the convertible strengthens Camaro’s dominant position in the sports segment.” The jury, which consisted of Bassam Kronfli, deputy editor Phill Tromans, publishers Mohammed Aljeda and Phil McGovern, said of their selection for the Camaro Convertible, “We liked the style and presence of the Camaro, the V8 engine and its effortless ability to cruise or light up the rear tires, depending on our mood.”

AVIATION

Swiss International Air Lines unveiled its new plans and strategies at a special SWISS Brand Experience Day. Rekha Balakrishnan reports from Zurich

Flying High S

wiss International Air Lines (SWISS), the national airline of Switzerland intends to further strengthen its position and profile as the airline of Switzerland over the coming years. While maintaining a keen focus on key business competencies such as cost management and flexibility, SWISS will also be striving to further intensify its collaboration with the Lufthansa Group, with a particular emphasis on sharpening its brand profile. The new plans and strategies were unveiled at a special SWISS Brand Experience Day held for the media at Zurich in January.

Lounges The Brand Experience Day began with a trip to the lounges at Zurich Airport. There are three-lounge complexes that offer dedicated facilities for first and business class passengers as well as for Miles & More travellers. Elegant design, a luxurious ambience, Swiss hospitality and carefully selected food and beverages are all provided here along

March 2012

with modern meeting facilities.

On board SWISS has set new benchmarks in business class comfort throughout its Airbus A330-300 and A340 intercontinental fleet. The concept also includes the new SWISS business seat, which features a pneumatic air cushion whose firmness can be adjusted to individual taste, and which can be converted into a totally lieflat two-metre bed. Culinary needs are amply met, too, in the form of a five-course menu which – like its first class counterpart – has been specially created by the finest Swiss chefs. Throughout Europe and on long-haul routes, SWISS business class provides quality service that includes separate check-in, priority boarding and baggage delivery, lounge access and a wide choice of carefullyselected inflight specialities. With the introduction of its Airbus A330 fleet SWISS has also introduced a new first class cabin that offers a genuine ‘suite

above the clouds’. On intercontinental flights, the economy class features an adjustable seat headrest and swivel ears for optimum long-haul comfort. On the Airbus A340 and the A330-300, the seat is also provided with special ergonomic padding, together with other facilities for a comfortable flight.

The food The ‘SWISS Taste of Switzerland’ highlights the cuisine of a region of Switzerland every three months and offers a totally new selection of dishes that are created by a renowned Swiss chef from the guest canton served in SWISS First and SWISS business class on intercontinental flights. For business class passengers on European flights, SWISS recently introduced the ‘SWISS Traditions’ programme that offers classic and popular Swiss delights together with dishes that have their roots in famous national and cultural events.

New logo and positioning The new logo shows a SWISS tailfin

with its Swiss-cross design, reflecting the livery of the company’s aircraft and enabling SWISS to be instantly recognised as ‘The Airline of Switzerland’ even from afar. SWISS has also further distilled its commitment to the customer to deliver a top-quality service product into a concise new claim: “Our sign is a promise.” The SWISS brand positioning statement includes the following: • Our Swiss commitment to quality means we can deliver a consistent, high-grade product and service at all touch points. • Because we are smaller, we can better emphasise personal service and customer intimacy.

Connecting Switzerland to the world SWISS serves 72 destinations in 38 countries from Zurich, Basel and Geneva and carries some 15 million passengers a year with its 89-aircraft fleet. It operates 26 long-haul and 36 shorthaul aircrafts and 20 regional Avro RJ100 aircrafts. The Avro Europe fleet will be replaced through 30 Bombardier CSeries 100 as of 2014. The airline will receive delivery of five aircrafts of A320 family between 2012-14 and five A330-300 aircrafts in 2012-13. OER spoke to Dr Holger Hätty, chief commercial oﬃcer at SWISS to know more on competition, cost management and flexibility and eco-friendly initiatives. Excerpts: Oman Air has recently started its service from Muscat to Zurich. Will it make a huge difference to SWISS’s performance in the region? Yes, Oman Air is definitely a competition. But to be frank, I don’t adapt my product to Oman Air’s entry. We have a clear philosophy and live by it. I don’t think we have to be afraid of the competition. Oman is a small country where tourism is becoming popular, and if other airlines are flying there, there will be a lot of focus and attention and that will be good for us. Can you elaborate more on your focus on ‘cost management and flexibility’? Is it because of the downturn in Europe?

Will it impact your services in any way? Cost-saving is a must as we cannot always save ‘on the back’ of the customers and have to find a balance. We still have to invest in customer and administrative processes, for example, and, we have to bring modern aircraft which is again a huge cost. So you have cost measurements on a shortterm. Modernising the fleet takes a couple of years. SWISS went through a turnaround five years ago and during that time, we really tried to keep our costs low. Our headquarters is very eﬃcient, top managers like me are working and are not delegating until it’s at the lowest level. Are you looking at new destinations in the near future? To finalise a new destination takes up to one-and-a-half years. This year, we deploy two more long-haul aircrafts, one to our new destination Beijing and the other to Newark. Next year, we’d be adding another two. Right now, it’s at the decision making stage as to where they are going to fly. And we do have a long list of destinations. Can you elaborate more on your fleet? We have an all Airbus fleet. Low cost

airlines have a competitive advantage in the sense that they have single fleet type of aircraft. If you mix, you lose the synergies. We have an Airbus fleet that is well-structured. We only have three aircraft types and because of this, it’s very cost-eﬃcient and easy to manage when it comes to pilots, mechanics and the economies of scale. You also call yourself an environmentally friendly airline… We strive to buy the most modern aircraft in the market that also have a lower fuel consumption. Fuel is a major cost factor in the airline industry. If you have low fuel consumption, it’s good for your balance sheet and for the environment as well. Secondly, we also push politicians for the right framework and policies that will help us in our eco-friendly initiatives. For example, Lufthansa recently completed a project where it tested biofuel on its aircraft between Hamburg and Frankfurt. The key objective of this project was to conduct a long-term test during which the impact of biofuels on the maintenance and eﬃciency of jet engines can be investigated. So we are working on these initiatives on a group level as well.

MARKET WATCH

Radiantly sophisticated From the legendary Eau Sauvage to Fahrenheit and Dior Homme, each one of Dior’s great masculine scent compositions possesses a unique identity. With an original floral touch, they are instilled with avantgarde sophistication and are suggestive of a refined and virile universe. François Demachy, perfume creator for Dior, chose to modulate the composition of Dior Homme Sport by introducing Tuscan Iris. Enriched with a note of Iris that meets the freshness of the scent’s energetic accords, Dior Homme Sport grows more sophisticated whilst remaining luminous. Already a distinctive element of the Dior Homme scent, Iris

Key to your heart

makes an elegant appearance,

The Valentines Collection 2012 from Damas features pendants inspired

Sport with an irresistible

by the memorable ‘key to your heart’ theme. This romantic new

‘family resemblance’. An

collection reflects the magic, intrigue and allure of true love. An 18k

exceptional and surprising

gold key from Damas’ Kiku Pearl brand is highlighted by the sparkle of

fragrance, Dior Homme Sport

round brilliant diamonds, offset by a coined pearl. A solitary heart at the

is now characterised by this

end of the key shadowed by diamond studs ensures the pendant sparkles

floral touch typical to Dior’s

with romance. Another key pendant, crafted in 18k gold and round

masculine fragrances.

brilliant diamonds, has a large gold heart carefully cut in the middle, surrounded by a larger heart in diamonds, to create an elegant and stylish look. An additional two smaller heart outlines are engraved on the stem of the key.

Watch with a mission With a limited special edition for the Laureus Sport for Good Foundation, IWC Schaffhausen is showing its support to children and adolescents who are confronted with the most trying conditions in the course of their everyday lives. The watch manufacturer is launching the Portofino Chronograph in characteristic Laureus blue as a symbol of hope for a better future. “As a Global Partner of the Laureus Sport for Good Foundation, IWC Schaffhausen is launching another watch with a mission that goes well beyond keeping the exact time,” says CEO Georges Kern. “The Portofino Chronograph Edition Laureus Sport for Good Foundation is an ambassador for children and young people from all over the world who lead lives that are far from blessed and are in urgent need of our support.” The Portofino Chronograph Edition in stainless steel is available in a limited edition of 2,500 watches.

March 2012

providing Dior Homme

GIZMOS

LG’s new Super Ultrabook series LG Electronics (LG) showcased four new notebook models and an all-in-one PC at the Consumer Electronics Show (CES) 2012 in Las Vegas. These new products will be available in Oman in March 2012. LG’s brand new Super Ultrabook™ Series, the Z330 and the Z430, offer powerful performance and sleek design unseen in ordinary Ultrabooks, while the P535 and the A540 establish a new standard for 3D notebooks. Lastly, the V300 is the ideal 23-inch all-in-one PC for entertainment, thanks to its immersive 3D display and In-Plane Switching (IPS)enabled wide viewing angle. The new products feature a range of breakthrough technologies from LG, such as IPS display, glasses-free 3D and Super Speed Boot, that will noticeably elevate the personal computing experience.

Bell update for Nokia smartphones Nokia has released its latest Nokia Belle software update, which is now available for download for Nokia smartphone owners in the Middle East. The new software is designed to enhance the consumer experience and improve smartphone performance, allowing users to upgrade their Nokia N8, E7, E6, X7, C6-01, C7, Oro, Nokia 500 devices. The latest version of Nokia’s smartphone operating system is designed to allow users to have up to six home screens that they can personalise with

Comes next generation iPad 3 Apple may launch its new and improved iPad 3 in March, according to industry sources. Rumours have been swirling about the next iPad since the iPad 2 was released in March, 2011. The next-generation device will have a clearer screen, faster processor, more memory and better internet connectivity than the iPad 2. It is rumoured that the iPad 3 has a 2048x1536 pixel display - called ‘Retina’ as the pixel density makes it impossible for the naked eye to distinguish between individual pixels and gives it a sharper look - twice the resolution of the iPad 2 models. The iPad 3 is said to have twice the memory of the last iPad with 128GB. The next-generation device will also contain an A6 quad-core chip allowing it to run much faster than the A5 dual-core processor in the current version, and will be able to run on 4G networks.

favourite applications and services. “By introducing an operating system that looks and works better than ever before, Nokia is meeting and anticipating future demand of users in the Middle East,” says Vithesh Reddy, general manager of Nokia Middle East.

BILLBOARD

Shell celebrates 1000 days LTI free

Khimji’s launches leading bathroom brands Khimji’s building materials division under the flagship of Infrastructure Group of Khimji Ramdas added to its product portfolio, two prominent brands in bathroom technology – FRANKE from Switzerland and TECE from Germany. TECE is a leading German supplier of building service applications such as pipe systems, concealed flushing technology, drainage technology, and grease separators. TECE was the first company to produce diffusion-free plastic pipes for underfloor heating. Since then, TECE has developed into a system provider covering all aspects of housing technology. Holger Ruf, head of sales and marketing at TECE Middle East along with Ayethulla Akay, head exports, TECE Germany was present during the event at Al Bustan Palace Hotel which was attended by over 400 invitees across the business spectrum.

Salalah Marriott Resort to celebrate second anniversary The five-star rated Salalah Marriott Resort will celebrate its second anniversary on March 24. The 237-room resort offers its guests a choice of spacious and well-appointed rooms within the main building and 51 beach side chalets including studios as well as one-and two-bedroom configurations. After two years of successful operation, the resort is now a well-established location for leisure and cultural activities of the local community, as well as a preferred meeting and event destination in the Dhofar Region. “We can look back on a very successful second year of operation and it gives me great pleasure to see this place growing every year stronger in the market”, says Ahmed El-Meligui, director of sales and marketing of the Salalah Marriott Resort.

March 2012

Shell Oman Marketing Company has achieved a new milestone in having done 1000 days with no lost-time-due to injury (LTI). In line with the Shell Group global vision of “Goal Zero” which is having zero incidents, Shell Oman adopted a series of strict measures over the past few years to eliminate/reduce incidents across all of its operations. Says Khamis Al-Siyabi, corporate and retail HSSE manager, “It is indeed a matter of pride that we are able to carry out our work in a safe environment free from incidents. We have tried over the years to spread the message of safety not only to our employees, but also to our contractors, business partners, our customers and the Omani society at large through different means including conducting specialised training, road safety shows, print advertising and a tie up with local authorities.”

Synerggie Eventz launches Anupam Kher’s book

Synerggie Eventz Oman has recently unveiled celebrated actor Anupam Kher’s life-coaching book THE BEST THING ABOUT YOU IS …YOU!! at Al Bustan Palace Hotel. Present on the occasion were senior officials of Fluid Systems Corporation and Al Hashar Group and other dignitaries. THE BEST THING ABOUT YOU IS …YOU!! contains Kher’s views on a wide variety of topics such as the anger syndrome, the phenomenon of change, thought control, dealing with relationships, conquering stress, realising the power within oneself etc. Kher was in Oman invited by Synerggie Eventz to enact his autobiographical play Kucch Bhi Ho Sakta Hain. The story revolves around a north Indian boy who had an intense desire to act and after facing many ups and downs, makes it big in Bollywood.

Babyshop now in Barka Babyshop, the one-stop-shop for kids’ fashion clothing, toys and baby basics from the Landmark Group, opened its Barka branch recently. For residents of Barka, the much-awaited opening proved to be a boon, with Landmark announcing a generous early bird offer of free gifts for the first 100 customers. In addition, the children to the new outlet received balloons and sweets from Disney cartoon characters, who were in attendance to entertain the shoppers, along with balloon twisters adding to the fun element.

Al Habib launches DOTAGS in Oman Al Habib Furniture has recently launched in Oman DOGTAS, the pioneer in modern furniture manufacturer from Turkey, at a reception event at Park Inn Hotel. Established in 1972, DOGTAS enjoys a dominant presence and remarkable market share in 65 countries around the world, supplying via 222 outlets. Selcuk, export manager,DOGTAS, presented a brief history of DOGTAS. Al Habib Furniture has introduced DOGTAS in Oman by inaugurating their showroom at Wattayah in late 2011, offering a variety of modernised home furniture sets and accessories.

Ahlibank sponsors OED celebrations Ahlibank recently supported Oman Environment Day celebration by singing up as Silver sponsor of the event. This sponsorship is yet another commitment from the bank supporting activities that raise awareness of local and global issues. “Our support of this year’s World Environment Day is another indicator of our commitment to the future and well-being of our country. World Environment Day is a day for people from all walks of life to come together to ensure a cleaner, greener and brighter outlook for themselves and future generations. The bank strongly believes in the importance of supporting environmental initiatives that have a direct impact on the community and this has been showcased in our CSR calendar for 2012. We encourage organisations as well as individuals to participate in such eco-friendly causes, helping to raise the level of awareness in the society.” Commented the CEO, Abdul Aziz Al Balushi.

Yamaha Muscat Music boutique opens Oman Marketing and Services Company (OMASCO) opened its Yamaha Muscat Music boutique at Madinat al Sultan Qaboos. HH Sayyid Kamil bin Fahd al Said, assistant secretary general for the office of deputy prime minister for council of ministers, inaugurated the boutique. The boutique will offer a music services facility with workshops on instrument repair. It will also offer a maintenance contract for acoustic pianos which will cover tunings and small repairs. Muscat Music, a division within OMASCO, has been appointed the official Yamaha agent for Oman. “We want to develop music across Oman and our customer service will be second to none,” says Philip Stallwood, general manager, music sales and services, OMASCO. “ We have a very exciting young Omani generation that loves traditional music, general Arabic music, Asian and western music. We want to educate them and provide a complete range of Yahama instruments,” says Michael E Hansen, managing director, OMASCO.

Floating hotel Veronica opens

Sunidhi Chauhan to perform in Oman Music lovers can look forward to one of the biggest musical extravaganzas, with NPA Events all set to organise ‘Sunidhi Chauhan Live in Concert’ on March 30, 2012 at the City Amphitheatre, Qurum at 7 pm. Sunidhi Chauhan, one of the top female playback singers from India, nick named as the ‘Indian Glam Diva’ is known for her various famous songs and was nominated for twelve Filmfare Awards, winning it on three occasions, including an award for a song ‘Beedi Jalaayile’ from the film Omkara. She has also won two Star Screen Awards, two IIFA Awards and one Zee Cine Award, GIMA awards and many more. Says Ashok Suvarna, executive director, NPA Events, “We are organsing an entertaining evening with the singing sensation Sunidhi Chauhan who will be performing live with her complete troupe at the City Amphitheatre. It will be an exciting and enjoyable treat for everyone.”

The floating hotel Veronica owned and operated by Daewoo Shipbuilding and Marine Engineering (DSME) and berthed at Duqm Port, is now open for business and leisure travellers. The officials of DSME say the hotel which had its soft opening in December is catering to increased demand for accommodation from expatriates involved in various projects in the area, as well as boosting tourism. Says Kwang Soo Lee, general manager DSME Oman, “We are pleased to bring the majestic Floating Hotel Veronica to the Sultanate at a time when the Omani government is investing heavily in Duqm’s development. Veronica will serve as an ideal venue to accommodate the stake holders involved in Duqm’s development.”

GOLFUPDATE

Losing streak It seems there is no end to Tiger Woods’s losing streak and putting woes, as the former world No1 was laid low by his fallibility in three consecutive tournaments in 2012

iger Woods’ bid for a first PGA Tour victory in over two years ended prematurely when he lost one-down to fellow American Nick Watney at the WGCAccenture Match Play Championship. The three-time champion struggled with his putting on the heavily contoured greens at Dove Mountain’s Ritz-Carlton Golf Club and never got back on level terms after going one down at the 10th. Though Woods won the par-three 16th after his opponent’s tee shot sailed over the grandstand at the back of the green to trim the deficit from two-down, he missed a six-foot birdie putt at the 18th to keep the second-round match alive.

A familiar story One week ago, Tiger Woods was outclassed by his old rival Phil Mickelson in California at Pebble Beach Pro-Am suffering a humiliating defeat. This is becoming a familiar story from Woods, whose swing under the tutelage of Sean Foley has improved markedly in recent months. But good as his ballstriking has become, there is a fragility about his putting that does not bode well for his hopes of returning to the top of the game’s totem pole. In January in Abu Dhabi Woods went into the final round in a tie for the

March 2012

lead alongside England’s Robert Rock and could finish only in third place. Attempting to win an oﬃcial event for the first time in 26 months, Woods had finished third to unheralded Robert Rock, an Englishman who won for just the second time in his European Tour career. Rory McIlroy finished second, a shot behind Rock. “I was just a touch off today. I was hitting the ball through the fairways and a couple of my iron shots were going a lot further than they were supposed to. I just need to keep building and get more consistency,” Woods said afterwards. Though it was a fair assessment, it failed to address a subject that is becoming apparent to those who have followed the great man’s career over the years. There was a time when Woods’s mere arrival on the first tee would have buckled the knees of a man such as Rock, who confessed on the eve of the final round that he was feeling extremely nervous at the prospect of having to battle Woods in the final group. “Robert played great today. He was solid, he was consistent and he didn’t do anything wrong. He was in play, he was consistent, hit a couple of beautiful iron shots down the stretch and made some putts,” he said of the winner. Such has been the generally mediocre

standard of Woods’ play over the last two years, he has had perhaps only half a dozen realistic chances of winning. But when opportunity has presented itself he has been unable to take advantage. The sole exception was the Chevron World Challenge at the tail end of 2011, when he birdied the final two holes to hold off Zach Johnson for victory. But that was a tournament with a limited field of 18 players and was not an oﬃcial event.

BROWSINGCORNER

A definitive account The Facebook Effect by David Kirkpatrick chronicles the vision, determination and foresight behind Facebook’s phenomenal rise. An OER review

The early years Facebook began life in a student room in 2003, and its original function was to enable Zuckerberg and his fellow Harvard students to rate each other’s attractiveness and flirt with each other electronically; thus was born Facebook’s signature double entendre, the poke. Before long Facebook had morphed into an all-purpose public facility, allowing students to huddle together in groups and forge whatever electronic connections they liked. To Zuckerberg’s surprise – he suspected it might be a fad – Facebook rapidly spread to other universities, then to schools and then to everyone else. The statistics are mind-boggling. Facebook’s arrival was timely, coming as it did just as more of us got used to spending time hooked up to fast internet connections. Kirkpatrick shows us how brilliantly Zuckerberg polished his new machine, constantly cleaning its minimalist look and cultivating its hunger for ever more data. The site’s real engine of growth, though, was its builtin network effect. Like any other communications network, Facebook’s usefulness grew as more people signed up and found each other; that, in turn, became a powerful incentive for new arrivals to pass the word on. Previous books about Facebook, such as Ben Mezrich’s The Accidental Billionaires, have focused on the squabbles and personal

relationships of those involved in its early life. Kirkpatrick’s wide-ranging access allows him to pay more attention to what Zuckerberg was trying to achieve. In his sometimes oafish determination to realise his vision, Zuckerberg turns out to be as much ideologue as engineer. For him, Facebook is primarily a social movement, not a publishing platform: as he tells it, he is motivated not by money (he consistently refuses to sell up) but by a passion for radical transparency. Sharing our data and making our lives publicly available to each other turns us, he believes, into better people. A narrower gap between public and private reduces the potential for hypocrisy and connivance, making it harder, for example, for people to cheat on their partners. Kirkpatrick’s story ends with the arrival of Sheryl Sandberg, whose job it is to make Facebook more attractive to advertisers. She has done well. Facebook makes the bulk of its money by helping companies target potential customers more effectively than mainstream media, and last year – the first that it began turning a profit – it took an estimated $800mn in revenues. The effect of all this on the marketing and advertising industries has only just begun to be felt. Kirkpatrick has written the definitive account of Facebook’s breathless rise to power.

The destination for books, gifts and novelties. Stores at Muscat International Airport – Arrival, Departure Landside, Airside Departure, Jawharat A’Shati and The Wave. Get 10% discount on purchase of books while referring the code Q1 2012. This offer is valid until 31st March 2012.

n the summer of 2006 Kirkpatrick, a former technology writer for Fortune, found himself invited to dinner with Facebook’s youthful CEO, Mark Zuckerberg, as part of the company’s charm offensive. He subsequently won unprecedented access to Zuckerberg and 39 of his top employees to gather material for this book, a kind of oﬃcial history of the company and the most comprehensive account of its rise yet. The reporting by Kirkpatrick is meticulous and exhaustive. The reader learns precisely what percentage of equity Facebook’s biggest shareholders have and exactly which major technology and media companies have courted Facebook over the years for both investment deals and potential acquisitions.

HAPPY DIAMONDS COLLECTION