No 142 May 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
The game changers
I
t gives me great pleasure to present to you our biggest issue of the year -- The OER Top 20 for year 2011. As expected, powerful macroeconomic forces in the region and across the globe have left their imprint on the rankings. Despite a challenging business environment, the OER Top 20 separates the best from the rest.
This year’s list is full of companies that are rewriting the rules in their respective industries. These agitators, pioneers and gamechangers are the standard bearers of corporate Oman. And their combined might makes a substantial contribution to the Sultanate’s economy. If there is one common trait that differentiates the OER Top 20, it’s the degree to which these companies are apprehensive about taking their success for granted. On the contrary, most of them work tirelessly anticipating and heading off potential challenges well before outsiders are even aware of them. The other unifying thread is their unshakable and uncompromising passion for excellence. This year’s list finds representation from companies cutting across sectors like telecom, manufacturing, banking and services. Their cumulative fortunes present an almanac of the performance of Oman’s economy in 2011. The issue has been put together by the best team of business journalists in the Sultanate and the results speak for itself.
Published by United Press & Publishing LLC PO Box 3305, Ruwi, Postal Code - 112 Muscat, Sultanate of Oman Tel: (968) 24700896, Fax: (968) 24707939 Email: publish@umsoman.com Website: www.umsoman.com All rights reserved. No part of this publication may be reproduced without the written permission of the publisher. The publisher does not accept responsibility for any loss occasioned to any person or organisation acting or refraining as a result of material in this publication. OER accepts no responsibility for advertising content. Copyright © 2012 United Press & Publishing LLC Printed by Oman Printers Correspondence should be sent to: Oman Economic Review United Media Services PO Box 3305, Ruwi 112, Sultanate of Oman Fax: (968)24707939 Email: editor@oeronline.com Website: www.oeronline.com
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To read, click on link at: www.oeronline.com
Don’t just welcome change. Let’s redefine it. We are Bank Nizwa, Oman's first Islamic bank. Our values are as deep-rooted in Omani tradition as our name. Our every action, at its heart, is guided by the Islamic principles of integrity, transparency, empathy, prudence, and ethical conduct. But that’s not the only way we will redefine the way you bank… As a business, we are driven by progressive thinking. We will surprise our customers with new and useful experiences in all aspects of banking. We will discover their expectations, anticipate their needs and offer solutions – even before they realise it. As an employer, we thrive on mutual respect. Our people will be empowered to bring out the best in themselves as professionals and as individuals. They will be encouraged to become active, productive and valued partners in the business, and in their communities. As a corporate citizen, our actions will speak louder than words. We will strive to earn the reputation of being a responsible, respectable and engaged member of Omani society. Soon, we will invite you home.
www.banknizwa.om
BANKING INDUSTRY ON AN UPSWING Apropos your cover story ‘Best Banks in Oman’, it is heartening to note that Omani banks have been consistent in their performance even though the market conditions are not very favourable. Oman’s budgetary policies to stimulate growth and continue infrastructure spending have been lending a hand to the banks in Oman. Further, we can say that Oman’s banking regulatory authority, the Central Bank of Oman has supported the economic recovery by continuing to pursue an accommodative monetary policy during 2011. The banking industry in Oman is very mature with seven local banks and ten foreign banks in the market creating a highly competitive market. The introduction of Islamic banking into the financial sector following the Royal Decree is a major development with important ramifications. We hope that Bank Nizwa which announced its brand mark and Al Izz International Bank which is also under formation will give more options to the people of Oman especially those who are interested in Shari’a-compliant products and services. Edward Paul, Darsait
GOOD NEWS FOR THE ECONOMY OER’s April issue carries two important news which reflect the state of Oman’s economy. The first is the unveiling of Bank Nizwa’s brand-mark and the second is the official inauguration of Vale palletising plant in Sohar. These two landmark events representing two diverse segments of the economy indicate that the country’s economy is moving ahead resolutely inspite of a depressing global situation. A global financial crisis that seemingly has no end in sight, political turmoil across the Middle East, galloping oil prices are ingredients in a boiling cauldron of an uncertain future. However, Oman continues to prove itself to be a beacon of stability. While global financial markets are facing the heat and western countries are staggering with debt burdens, Oman is not only posting budgetary surpluses, the financial sector is also unfazed by the worldwide happenings. It is commendable that Omani investors have come together for the formation of a bank and that too in a virgin area of Islamic banking. As the country’s first Islamic bank
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offering Shari’a-compliant products and services, Bank Nizwa will meet the demand from customers for such services in Oman. Although legacy banks are also ready to offer Islamic banking services, Bank Nizwa will have the advantage of being a full Islamic bank. The formation of Bank Nizwa also goes on to prove that the economic fundamentals of Oman are on a strong footing. Meanwhile, the Brazilian mining giant Vale’s Oman operations achieved a full production capacity of 9 million metric tones per year at its $1.36bn industrial in the Port of Sohar. This is a shot in the arm for Oman’s manufacturing sector. The company’s operations in Oman have 1200 employees including their contractors’ workers. Another 3000odd jobs have also been created indirectly. Downstream industries which are expected to be set up in and around Sohar will create hundreds of more jobs for local populace. Vale’s palletising plant is another example of the country’s efforts to move away the national economy from oil to non-oil sources of revenues. Mutassim Balushi, Sohar
KUDOS TO BANKS Congratulations to all the banks in Oman which have performed exceptionally well and were not adversely impacted by the regional and international events. Despite adverse international events, the Omani banking system showed resilience and optimism as well as prudence in their operations. Kudos also to the Central Bank of Oman which regulated the banking industry tightly to prevent any untoward fallouts. The regulatory controls also ensured that Omani banks did not jump into risky areas which could have put them into a tight spot ending in lengthy explanations to shareholders. The 2011 monetary developments are also consistent with the sustained growth witnessed by the real economy. International confidence in the Omani banking sector was also highlighted by global credit rating agency Standard & Poor which upgraded the banking industry country risk assessment (BICRA) rating to group 4 from group 5 in November 2011. Rajan Sundar, Al Ghubra Write to us with your comments/ feedback at: editor@oeronline.com
INSIDE
74 COMPANY PROFILE
THRIVING ON CHALLENGES
68 INTERVIEW
AGILITY IS THE KEY
20 EVENT
INTEGRATED EFFORTS REQUIRED FOR BUILDING NATIONAL TALENT Oman Forum – Building National Talent witnessed two heated and thought-provoking panel discussions on education and training; youth employment policies and initiatives; identification of talent gaps and challenges; and creation of guidelines to set up the roadmap for future
25 COVER STORY
OER'S annual ranking of the Sultanate's Top 20 listed companies
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Dr Amer Awadh Al Rawas, CEO, Omantel underscores the reasons for the company’s enduring success on the OER Top 20 charts
Within a short span of 18 years, Al Jassar Group has established itself as a fast growing multi divisional firm with strong presence in trading, manufacturing, real estate, contracting, health etc. V T Saileswaran, Managing Director, has been in the vanguard of this journey
INSIDE
106 ENVIRONMENT
77
RECYCLE AND REUSE
94 FINANCE
TRENDSETTER Oman UAE Exchange continues to pioneer new services and products and has grown from strength to strength over the last 17 years. Visvas Paul D Karra speaks to its country head Tonny George Alexander, the man responsible for growing the company to its present successful status
Editorial
SPOTLIGHT
COOLING SOLUTIONS
In the run-up to its third edition to be held on June 5, Oman Green Awards (OGA) has teamed up with Oman Marketing & Services Co (Omasco), to distribute recycle bins for collecting used papers at various schools in Muscat
Air-conditioner and refrigerator market account for a whopping 65 to 70 per cent of all business in Oman’s white goods market
114 GOLF UPDATE
YOUNGEST GOLFER Guan Tian-lang, the junior world champion from China, became the youngest player in European Tour history when he teed off in the Volvo China Open, aged 13 years and 173 days
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AUTO TALK Economy Watch
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SIMPLY GRAND
Business Briefs
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Event
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The Centennial is a loaded top-end luxury sedan offering full value for money, writes Visvas Paul D Karra after an extensive test-drive
In the News
24
Realty
70
Close Up
100
Autonews
104
Technology
108
Billboard
110
Market Watch
112
Gizmos
113
Browsing Corner
116 CARTOON CORNER By
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Kannan Murali
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ECONOMYWATCH
A collaborative world order The figure below illustrates as to how many companies, countries and stakeholders can be involved in the making of a single product such as Boeing’s Dreamliner plane. Selected system suppliers on the Boeing 787 Dreamliner
USA Canada Italy UK France Sweden Japan Korea Australia
Wing tips KAL-ASD Korea
7DLO ÀQ Boeing Frederickson, Washington, USA Horizontal stabiliser Alenia Foggia, Italy
Wing Mitsubishi Nagoya, Japan
Centre fuselage Alenia Grottaglie, Italy AFT fuselage Vought Charleston, S.C, USA
Fixed trailing edge Fuji Nagoya, Japan Engine nacelles Goodrich Chula Vista, CA, USA
Forward fuselage Kawasaki Nagoya, Japan
Cargo/access doors Saab Sweden Movable trailing edge Boeing Australia
Fixed and movable leading edge Spirit Tulsa Oklahoma, USA
Engines GE, Evendale, Ohio, USA Rolls-Royce, Derby, UK
Wing/Body fairing landing gear doors Boeing Winnipeg, Canada
Aircraft Assemblers Current: Airbus, Boeing Potential: China, Russia, Turkey, Japan
Centre wing box Fuji Nagoya, Japan
Passenger engry doors Latecoere France Landing gear Messier-Dowty Gloucester, UK Forward fuselage Spirit Wichita, Kansas, USA Main landing gear wheel well Kawasaki Nagoya, Japan Source: Boeing, Sarasin Research
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BUSINESS BRIEFS
CALL FOR HARMONISED NATIONAL ICT POLICIES
NAWRAS LAUNCHES OFF-PEAK BROADBAND BUNDLE Nawras has launched an off-peak monthly mobile broadband bundle of 100GB for its Ajel and Mousbak customers. This innovative offer allows customers to enjoy music, movies and other heavy downloads from 2am to 9am with its generous monthly data bundle. This fantastic value comes with a monthly subscription of only seven rials. Customers choosing to opt in to this new service can use the off-peak plan on any day, alongside their existing bundle. Nawras is the only operator in Oman to offer an off-peak bundle plan for mobile broadband and this is the latest carefully designed data plan introduced to meet the varying usage styles of different customers. “For the first time in the Sultanate, Nawras mobile broadband customers can now enjoy off-peak data with fantastic value to handle heavy downloads overnight without affecting their regular data bundle,” says Mohamed Dilshard Anzary, senior manager broadband and BlackBerry.
BANKMUSCAT CE NAMED ARAB BANKING PERSONALITY Samena Telecommunications Council’s “Beyond Connectivity 2012” conference brought together leading telecommunications experts and decision makers in the region to discuss the need for harmonised national ICT policies to promote sustainable growth of the ICT industry in the region. Opening the conference, Bocar A Ba, president of SAMENA Telecommunications Council said, “The ICT industry in the SAMENA region has witnessed tremendous growth and development accompanied by a major shift towards digitisation which entails and accentuates the need for organised policies both at the national and regional levels.”
QUICKLOOK
The telecommunications sector in Oman has reached a level of maturity where it requires less regulation from the Telecommunications Regulatory Authority (TRA) and is governed more by customer demand, according to Omantel CEO Dr Amer al Rawas. According to Ross Cormack, chief executive of Nawras, “Mega mergers in last few years by regional powerhouses have emphasised on the role of total consolidation in order to drive growth, as it focuses on and is driven by customers.”
Oman Oil opens new filling station Oman Oil Marketing Company has opened the first filling station and ahlain convenience store of 2012 at Aqar New, in Al-Batinah governorate. The company’s aspiring development plan has also introduced ahlain convenience stores across the region in Al Tareef, Mjaz Al Kubra and Suwayq. The latest addition to omanoil’s rising footprint is the 132nd filling station.
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Omani firms at Food Asia Expo The Public Authority for Investment & Export Development (PAIPED) announced that four Omani companies- Ali & Abdul Kareem Group, Sweets of Oman, Nabil Biscuits and Omani Euro Food Industries- participated at Food Asia Expo in Singapore, recently. The expo gave Omani firms an outstanding opportunity to meet and network with international manufacturers and suppliers.
Dr AbdulRazak Ali Issa, chief executive of BankMuscat, has been named the Arab Banking Personality of the Year 2012 by the Arab Banking Union, in recognition of his outstanding contributions to the banking sector in Oman and the Arab region. The announcement was made at the Arab Banking Conference 2012 organised by the Union of Arab Banks in Abu Dhabi. Every year, the Arab Banking Union honours one distinguished personality in recognition of his leading role and contribution to the Arab banking industry. Adnan Ahmad Yousif, chairman, Union of Arab Banks, president and CEO of Albaraka Banking Group (ABG), congratulated AbdulRazak on winning the prestigious award. “AbdulRazak has made significant contributions to the banking sector in Oman and the Arab region, securing major economic gains in the region”, says Adnan. “AbdulRazak’s insight will further enhance co-operation and business relations among members of the banking community in the region.”
HP’s Converged Cloud HP announced HP Converged Cloud, the industry’s first hybrid delivery approach and portfolio based on a common architecture spanning traditional IT, private, managed and public clouds to deliver choice, confidence and consistency for hybrid environments. Engineered for the enterprise, HP Converged Cloud extends the power of the cloud across infrastructure, applications and information..
Holiday offers from HSBC HSBC Oman offers an opportunity for customers to win their holiday spent back if they use their HSBC MasterCard® credit card to make travel purchases. Between April 5 and May 31, 2012, customers stand a chance to win one of three prizes of up to RO5,000 of their travel related spend back for every RO50 spent using their HSBC MasterCard Credit® in any number of transactions.
BUSINESS BRIEFS
PDO HOLDS ANNUAL GRADUATION CEREMONY
AHEC SECURES EPC CONTRACT FOR PDO’S HRSG Al Hassan Engineering Co (AHEC) won an EPC contract of a Heat Recovery Steam Generator (HRSG) for Petroleum Development Oman (PDO) at the latter’s Amal facility. The multi-million dollar project to be executed on an EPC basis over a period of 22 months includes engineering, bulk procurement, construction and commissioning. AHEC will install a new HRSG which will have capability of producing around 6000 tonnes of steam per day. AHEC will also install high pressure feed water pumps, instrument air compressors and associated electrical switchgear systems. In addition, AHEC will construct a utility building to house the electrical switchgear and controls systems.
As many as 49 students who completed their higher studies abroad or from institutions within the Sultanate, on scholarships from Petroleum Development Oman (PDO), received their certificates from HE Nasser bin Khamis al Jashmi, Undersecretary, Ministry of Oil, recently. The PDOsponsored scholars this year include six PhDs as well as 22 students who completed Master’s and 21 holders of Bachelor’s or diploma. In a speech delivered at the graduation ceremony held at the Ministry of Oil and Gas, PDO’s managing director Raoul Restucci says, “The entry of these young graduates into our business adds to the growing pool of highly qualified Omanis working in the company. They join the ranks of more than a thousand Omanis who have graduated recently from foreign universities, Sultan Qaboos University and other institutions.”
NOW, PRIVATE COMPANIES TO VIE FOR SULTAN QABOOS E-GOVERNMENT AWARD
QUICKLOOK
The Information Technology Authority (ITA) has offered an opportunity for the private sector companies in the country to participate in the third edition of its coveted Sultan Qaboos Award for Excellence in e-government. Speaking about the new changes for the 2012 edition of the award, ITA’s CEO Dr Salim Al Ruzaiqi says, “For the first time, the Sultan Qaboos Award for Excellence in e-government will now offer a chance for companies owned by government, as well as companies in the private sector, to participate in the competition. Opening the Sultan
LG wins red dot awards As many as 14 LG products were recognised by the red dot design awards for their excellence in the field of design. A panel of 30 independent judges considered over 4,500 products from 1,800 manufacturers and designers in nearly 60 countries. In all, LG took 12 red dot design awards as well as two honourable mentions. LG had won 14 awards at the iF (International Forum) design award earlier in the year.
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AXA ties up with Qatarlyst AXA Gulf has signed a partnership with Qatarlyst, in a move aimed at reinforcing its property and casualty business in the region. AXA Gulf which has achieved double-digit growth in 2011 with premiums well over $100mn is currently the third biggest insurer overall in Qatar with over 100,000 clients. Qatarlyst provides cloud based service for insurance, Takaful, reinsurance and retakaful transactions.
Qaboos Award for Excellence in e-government to a new target segment will enable such institutions to actively contribute to strengthening the efforts to create a developed digital environment in the Sultanate, by providing electronic services to different segments of society.” The award aspires to make qualitative transformation in the field of e-government services by honouring digital projects that deliver exceptional innovation and achievement in the field of information technology.
Al Hassan holds Pidilite dealer meet Pidilite Industries, the market leader in adhesives and sealants and construction chemicals joined hands with its distributor in Oman, Al Hassan Electricals Co to conduct a dealer meet and felicitate its top performing dealers at a function in Hotel Crowne Plaza. Pidilite Industries offers an extensive range of consumer, craftsmen, engineering and industrial adhesives.
‘Intajee’ wins CSR award Omran’s income generating programme ‘Intajee’ was honoured with the ‘Corporate Social Responsibility Initiative of the Year’ award at the Oman Construction Week Awards recently. Held in the Sultanate for the very first time, a total of 13 awards were presented by a distinguished panel of judges in efforts to recognise the achievements of Omani construction industry.
STARCARE HOSPITAL WINS JCI ACCREDITATION
Starcare Hospital has achieved the accreditation of Joint Commission International (JCI), the world’s most respected accreditation body for hospitals, within 342 days of its inauguration. Starcare is the first and the only hospital in the Sultanate to achieve JCI accreditation in the first year of opening. Mohammed Saif Al Nabhani, director general for private health establishments, Ministry of Health, appreciated the Starcare team for this remarkable achievement at a function recently. “The accreditation process had its financial implications but it was the belief and commitment of our team that prompted the management to embark upon the epic journey and we are glad with fruitful results”, syas K Jayan, general manager. Adds Dr Askar Kukkadi, medical director, “Quality and safety are the prime requirements for a hospital. We are happy that an International body has stamped its approval.”
BIG BUS COMES TO OMAN
Oris Artix Complication Automatic mechanical movement
Travel Point and UK-based Big Bus Tours have entered into a joint venture to announce the introduction of City Tours into Oman. Tour Oman, which is the inbound Division of Travel Point and a full-fledged DMC, will handle the operations of the Big Bus in Oman. Big Bus Tours already operates sightseeing tours in 12 cities around the world, and this new tour, will provide visitors with the perfect introduction to the city of Muscat. Customers will be shown all the finest sights of the city, from the historic Muttrah Souk to the glistening waters of the Gulf of Oman; and from panoramic mountain views to traditional forts and palaces. The service is starting out with a two-hour panoramic tour of Muscat, departing at intervals throughout each day from Muttrah Souk. A dedicated tour guide will provide an entertaining and colourful commentary, providing valuable historical information and a real insight into the ways and workings of the city.
Multi-piece case Moonphase, day and month display Pointer date
www.oris.ch
BUSINESS BRIEFS
HSBC OMAN MERGES WITH OIB HSBC Bank Middle East Ltd has entered into an agreement to merge its Oman branch (HSBC Oman) with Oman International Bank (OIB). Following the merger, HSBC will hold 51 per cent of the combined entity which will be re-named HSBC Bank Oman. OIB, which is Oman’s fifth largest bank with the second largest branch network in the country, had gross assets of $3.2bn as at the end of December 2011. The merger will not affect OIB’s listing on the Muscat Securities Market. Under the terms of the merger, HSBC will inject additional capital of up to $97.4mn in cash from its internal resources into HSBC Oman and the business of HSBC Oman will then be merged with OIB. OIB will issue to HSBC new shares equivalent to a 51 per cent shareholding in the combined entity.
NBO AWARDED ‘BEST RETAIL BANK IN OMAN’ National Bank of Oman (NBO) has been awarded the ‘Best Retail Bank in Oman 2011’ award by the Asian Banker Excellence in Retail Financial Services Awards Programme. The official award ceremony was held recently in Singapore coinciding with the eighth annual meeting of inter-regional heads of retail financial services. Harsh Munjal, NBO’s general manager – retail and private banking, and Moosa Al Jadidi, head of wealth management, attended the award ceremony and received the award on behalf of the bank.
BANK DHOFAR RESTRUCTURES HOUSING LOAN BankDhofar has recently reengineered ‘Daruna’, its housing loan, making it more accessible for everyone and simplifying the process. Now, Bank Dhofar offers its customers an interest rate of just 4.5 per cent, which is the lowest rate currently available in the Sultanate and facilitates lower total repayments. The bank has a dedicated call center to offer advice and guidance on the interest rate, the amount of the loan and the fees attached. “After assessing the market, Bank Dhofar understood that one of the major frustrations for anyone seeking a home loan was the time it took to process paperwork,” says Faisal bin Hamed Al Wahaibi, AGM, retail banking.
OMRAN HOLDS GCC-WIDE TOUR
QUICKLOOK
Omran has spearheaded the latest initiative to promote Muscat as the Arab Tourism Capital for 2012. The 11-day tour across eight cities, commencing from Manama, Doha, Abu Dhabi, Al Buraimi, Dubai, Ras Al Khaima, Musandam and finally to Muscat was held recently, in partnership with the Ministry of Tourism and Friendship Arabia Expeditions. Through this partnership, Omran showcased Muscat’s diverse tourism assets, luxury hotels and eco-resorts, major sports venues, large joint-venture developments and business destinations such as the new Oman Convention & Exhibition Centre.“Oman as a destination has tremendous untapped potential and it is our national responsibility to promote our country to a wider international audience,” says Eng Abdul Wahid Al Farsi VP, external affairs, Omran..
BankMuscat wins Euro STP Excellence award BankMuscat has won a prestigious award in recognition of operational excellence in the field of Euro payments processing. BankMuscat was among a select group of regional institutions to receive the prestigious annual straight through processing (STP) award presented by Deutsche Bank for achieving 99.8 per cent straightthrough rate for Euro remittances.
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Audi’s Open Day In line with its strategy of connecting, discovering, nurturing and educating talents, Audi Oman has recently sponsored ‘Open Day’ for engineering students of Higher College of Technology in Muscat. The open day included various displays, audiovideo presentations, personal interactions with students eager to learn about wide range of opportunities in the automotive industry in general, and at Audi Oman in particular.
Voltamp to supply transformers to Majan Voltamp has won an order from Majan Electricity Co to supply a dozen 20MVA 33/11.5kV class power transformers, within the next six months. The order was won in a tough competitive bidding with more than 13 companies. Voltamp CEO, Alok Bhargava, said, “We are very grateful to Majan Electricity Co and the Omani Electricity Sector for expressing faith in Voltamp’s technical capabilities.”
NBO’s mortgage Souq National Bank of Oman has recently organised its mortgage promotional campaign Souq Al Manzel, the first of its kind in Oman’s mortgage and finance industry. The purpose of ‘Souq Al Manzel’ was to provide easy ‘on the spot approvals’ for customers seeking home finance as well as to enable visitors to have the opportunity to meet with key stakeholders including key developers, real estate agents, contractors and valuators.
EXECUTIVE MOVEMENTS step in our progress as we put in place a vivacious senior executive team that can ensure our leadership in the market and carry us into the future.”
Samy Ahmed Al Ghassany
Talal Said Al Mamari
Omantel has appointed Samy Ahmed Al Ghassany as chief operating officer (COO) and Talal Said Al Mamari as chief financial officer (CFO). These appointments come as the Sultanate’s telecom giant continues to make steady growth and leads the market through introduction of innovative products and diversification into related businesses.
“These new appointments will bring further momentum to the realisation of Omantel’s vision and objectives as we continue to lead the market and expand our business locally and regionally and are in-line with regional and international benchmarks in telecom industry,” says HE Engineer Sultan Hamdoon Al Harthi, chairman of Omantel’s board of directors. “This is an important
partners Omran – Oman’s leading tourism developer, and Orascom Development Holding (Orascom) – the Swiss based town developer.
Muriya has appointed Chandra Lahiri as its new CEO. The appointment comes amid high-level organisational changes both at the board and management levels as Muriya prepares to capitalise on current and future growth opportunities in Oman’s promising tourism and leisure industry. The new CEO will be ably guided by a significantly strengthened board comprising industry professionals drawn from Muriya’s joint venture
Chandra Lahiri joins Muriya from Omran where he served as vice president. Earlier, he headed Muscat Hills Golf & Country Club as managing director, capping 35 years of experience garnered in some 40 countries around the world. “Chandra‘s transition from Omran to the helm of Muriya pays testimony to his leadership skills and superior knowledge of the tourism market. In his departure, Omran has lost a capable member of its executive team. But as the new CEO of Muriya, he will steer the brand through this crucial restructuring phase towards its strategic goals,” said Wael Al Lawati, CEO of Omran.
“Samy Al Ghassani and Talal Al Mamari have both played a significant role in Omantel’s evolution and its leadership position in the market,” says Dr Amer Al Rawas, CEO of Omantel. “These two leaders took part in the company’s transformation and growth, while holding several senior technical, commercial and corporate responsibilities with outstanding dedication and passion for success.” In his position as the COO, Al Ghassany will be responsible for commercial and technical operations of the company. He will be leading the commercial
The Chedi Muscat recently appointed Rika Rusnaeni as its spa director responsible for the day-to-day management and operations of the hotel’s award-winning 800-squaremetre wellness sanctuary. Rusnaeni has worked in the spa and wellness industry for ten years and has a strong focus on personalised service of the highest quality standards. She has gained profound expertise working in various consultancies, and operational and managerial positions at some of the world’s most luxurious resorts in Indonesia, Malaysia and the Maldives. She also played an instrumental role in the opening of The Ananti Kumgang Mountain Golf and Spa Resort in North Korea.
teams such as marketing, sales and customer care that serve all of Omantel customers including consumers, businesses and domestic and international telecom service providers. Prior to his current appointment, Al Ghassany held the position of VP – Integrated Technology Unit, and was instrumental in modernising Omantel’s network with the next generation switching and IP transmission systems Talal Al Mamari, in his position as the CFO, will be responsible for driving the company’s financial strategy for sustaining and growing shareholder value. Al Mamari will be responsible for leading the financial activities of Omantel, including mergers and acquisitions. Prior to his current appointment, he held the position of VP – finance.
Canon has announced the appointment of Rokus van Iperen as the new president & CEO of Canon Europe, Middle East and Africa (EMEA). He becomes the first European to lead Canon’s business across the EMEA region, succeeding Ryoichi Bamba, who is retiring after four years in the role and 40 years with Canon. Van Iperen takes over an organisation that delivers world leading imaging products and services to millions of consumers as well as business and medical customers throughout the EMEA region, and contributes the largest regional share of total revenues for Canon Inc. He moves to his new role from within the Canon Group
EVENT
Hyundai-Genesis Prada partners AIWA Awards instituted by Alam al-Iktisaad Wal A’mal (AIWA), Oman’s leading Arabic monthly business magazine, published by United Media Services (UMS). This year marks the second edition of the AIWA Awards after the highly successful launch in 2011. Genesis Prada (Limited Edition), the luxury car series from Hyundai, is the Strategic Partner for the AIWA Awards.
T
he stage is all set for the 2012 edition of AIWA Awards for Best Performing Companies. The nominees have been finalised after an intense scrutiny of their financial performance in 2011. AIWA Awards for Best Performing Companies are
In a red carpet awards evening on 10 June, 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’s corporate sector. 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 decisionmakers who are driving the country’s
business and economy. A high-voltage entertainment show by renowned international troupes will make the attendees cherish the evening for a long time to come. 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 field of business and economy. The AIWA Awards to the selected personalities will be made in two categories – ‘AIWA Global Omani of the Year Award’ and ‘AIWA Life Time Achievement Award’. AIWA will also felicitate one company for its immense contribution to the society and economy. It will be presented with the trophy for ‘Excellence in Corporate Leadership’. For more details on the AIWA Awards, contact Ahmed on 99356490 or email ahmed.sayed@umsoman.com.
Click 6.0 conference from June 10
C
lick 6.0 The Digital Markeing Event for the Middle East organised by International Quality and Productivity Centre (IQPC) will be held at Grand Millennium, Dubai from June 10 to 13 2012. The 6th edition of the annual digital marketing event will serve as learning and networking platform for digital marketers, brand managers and online marketing strategists to rediscover the nature of their jobs. Click 6.0 offers an opportunity to network and share best practices from local and international industry experts; and to maximise knowledge on how to engage with customers through SoLoMo channels and manage online communities as a CRM tool. The new topics coming up
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May 2012
for discussions in the event includes online community management and customer services through social networks, location-based marketing, content creation and strategy, social research, social commerce and e-tail, mobile and mobile apps, digital signage, video marketing. Featuring more international speakers and local digital marketing gurus, Click 6.0 will present new interactive formats such as on-stage interviews, practical roundtables and interactive panel discussions. It also includes new
technical sessions discussing the most important digital issues. Founded in 1973, IQPC has developed a reputation for quality in delivering business intelligence through its practical conferences, large scale events, topical seminars and in-house training programmes to leading companies around the world.
OER and AIWA are the media partners of the event.
EVENT
Integrated efforts required for building national talent Oman Forum – Building National Talent witnessed two heated and thought-provoking panel discussions on education and training; youth employment policies and initiatives; identification of talent gaps and challenges; and creation of guidelines to set up the roadmap for future
H
E Mohsin Al Balushi, Advisor to the Ministry of Commerce & Industry and Chairman of The Public Authority for Manpower Registration stated that the government considers human resources development as a crucial investment for nation building. Speaking at the Oman Forum – Building National Talent, organised recently at Al Bustan Palace Ritz-Carlton, he said renaissance has opened up new vistas of scientific progress and educational development. “The Research Council continues to take various innovative steps to improve the quality of scientific and technical education in the country. The Public Authority for Manpower Registration seeks to
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May 2012
agreement between both private and public sectors,” he stated.
strengthen the coordination between various institutions in the country. It will help private sector companies to find out the capable hands and the job seekers to get updated about the right opportunities. The authority has taken various initiatives and signed several agreements to strengthen the
The event was organised by Alam al-Iktisaad Wal A’mal (AIWA), Oman’s premier business magazine published by United Press & Publishing (part of UMS Group). The half day-long event comprised two panel discussions on the state of education and training, youth employment policies and initiatives, identification of talent gaps and challenges and creation of the guidelines to set up the road map for future. The relevant stakeholders from all walks of the society including the government, Majlis Al Shura, private sector, HR experts and civil society deliberated on the various dimensions of building national talent.
EVENT
Talking at the event, HE Dr Abdullah Bin Mohammed Al Sarmi, undersecretary, Ministry of Higher Education said, “It is high time we shifted from consuming knowledge to producing knowledge, by emerging as knowledge based economy. The task of building national talent and equipping youngsters and enabling them to contribute to the nation building is a collective responsibility to be shouldered both by the private and public sectors. The ministry of higher education sends students to over 40 countries for higher studies. English is the main language and the medium of study in all these countries. They come back well trained and equipped to take up the challenging tasks awaiting them in the local industry. But we don’t send them to Latin American countries because of the concerns about the security and education environment in those
22
May 2012
countries. Although we have sent some students to Japan recently, we had to shift them to other countries because of the language problems.” Among the other panelists, Mundhir Al Barwani, HR director, Petroleum Development Oman (PDO) said, “Private sector companies ought to play a big role in building national talent. PDO accords great importance to train its employees and make them capable of handling new challenges. We send out diploma holders every year abroad to complete their studies. In addition, we give in-house training in all areas for our employees.” Hussain Bin Salman Al-Lawati, vice chairman and MD, Oman Cables Industry said, “There is no denying the fact that the foundation of our education system is strong and our labour law is strong enough to create relevant job opportunities for
Omanis. But now, we have to build on this good foundation in secondary education to develop a high-quality and professionally sound higher education system to meet the new requirements of various industries in our fast developing country. We need to concentrate more on developing the skillsets and capabilities required by the job market in the country.” Oman Forum – Building National Talent was organised in association with Petroleum Development Oman (PDO), Ministry of Higher Education, Ministry of Education, Ministry of Civil Services, Sultan Qaboos University, The Research Council (TRC) and Oman Society of Contractors. AhliBank, Voltamp, Galfar and Omran were the strategic partners whereas Omantel, Oman Cables Industry and Vale were the associate partners for the prestigious forum. The event was webcasted live on www. sowlef.com/live.
INTHENEWS
A new SME Development Fund with a capital of RO100mn will be launched next month in a bid to develop and further promote the small and medium enterprises (SME) segment in Oman
T
Spurring SME growth
he SME sector has been found to create approximately 60 per cent of all employment in both high and middle income countries as it uses labour rather than capital as the dominant factor of production. The SME sector provides employment avenues for workers with lower levels of education and skills unlike large corporations who depend on sophisticated technology and automation.
The four-point plan
Similarly, large corporations are most often established and provide employment in concentrated pockets near large cities, ports, etc. Despite the presence of mega corporations and large multinationals, SMEs contribute more than 50 per cent of the GDP in developed countries. In Oman, the share of the SME sector is a fairly satisfactory 23 per cent; however, there is considerable potential for further development.
Training: This will initially be provided to college and university students and later rolled out to schools and the community in general, to enhance the interest in and understanding of entrepreneurship. This will be in the form of a brief ‘Orientation’ seminar, to generate interest, offered to around 50,000 students annually. A more detailed ‘Development of Entrepreneurship’ course, addressing the shortcomings identified among entrepreneurs, will be offered to candidates selected from the above.
Private sector SME fund To achieve this objective, government with the help of Partnership for Development (PFD) partners, an offset initiative, is promoting ‘The SME Development Fund’, capitalised at RO100mn and set up in the private sector. The SME Development Fund would help existing SMEs to grow in scale and scope and also seek to ‘create’ new entrepreneurs and SMEs. The capital for the fund will be raised from pension funds and other investors in Oman and overseas; the PFD partners are arranging low interest loans of €50mn and providing grants (first tranche $30mn) to support the activities of the fund.
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May 2012 April 2012
A survey carried, on behalf of the PFD partners, confirmed the potential for developing the SME sector, identified key actions to be taken by the fund and revealed that such a fund would be viable. Based on the findings of the survey and the prior experience of the CEO, a four point plan has been drawn up to address the needs of the SME sector. Accordingly, the fund would seek to accomplish the following:
Nurturing: It comprises accounting support, low cost software, monitoring and mentoring, to reinforce the training provided (point i) and to support the post disbursal monitoring carried out by the lenders. The mentors will also assist the SMEs in accessing markets. Funding: It will be offered speedily and flexibly to address the biggest problem faced by SMEs, the non-availability of appropriate finance. Part of the grant finance is earmarked for subsidising interest charged to eligible SMEs.
Creating a conducive environment through interventions with the tender board, large companies, the free trade zones and the industrial estates, to ensure that registered SMEs are at least given favourable consideration when they quote. The fund would consider empanelling SMEs in a transparent manner, to facilitate this exercise.
Structure The SME Development Fund has been structured as two entities: a fund registered with the Capital Market Authority and a special purpose vehicle, registered as a company with the ministry of commerce & industry (MOCI). The latter, called the National Company for Projects and Management (NCPM), will receive, manage and disburse the sinking-fund (grant). The fund, presently under formation, will raise the capital and debt and operate the elements of 4 point plan, using third party service providers as depicted below. The fund will be managed by a board, representing the interests of the investors, and NCPM will be governed by an advisory committee, constituted by MOCI to approve and oversee the utilisation of the sinking fund (Grant). The fund aims at creating 7,500 SMEs creating 50,000 jobs and will contribute RO100,000,000 to the gross domestic product (GDP) annually at the tenth year of its existence. The fund will visit colleges and schools in Oman for creating an entrepreneurial ambience and has a target to cover 500,000 students over a period of 10 years.
COVERSTORY – OERTOP20
OER’s annual ranking of the Sultanate’s Top 20 listed companies
COVERSTORY – OERTOP20
EXHIBITING EXEMPLARY LEADERSHIP OER presents its annual Oman’s Top 20 leading listed companies for the year 2011
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and North Africa. Gold broke through $1,890 an ounce, and the price of Treasuries soared, with the yields on 10-year notes falling nearly 40 per cent in the third quarter, to 1.9 per cent from 3.16 percent, despite the downgrade in America’s debt.
he year 2011 was an eventful year of enormous proportions. The volatility during the year continued unabated due to several factors including natural disasters, political upheaval and financial turmoil. For the first time in history, we saw a credit downgrade for the US as well as the deficit ceiling fiasco, which brought the US to almost a financial standstill. The earthquake and tsunami in Japan, took a devastating human and economic toll. The debt crisis in Europe created fears of sovereign defaults, resulting in major financing strains on banks with fears of a breakup of the euro zone. With this background, almost $6.3tn was wiped out from global stock markets in 2011 with the global stock market capitalisation dropping 12.1 per cent to $45.7trn according to Bloomberg data, primarily in the European and the emerging markets. Oil prices shot up to $114 a barrel before plunging to $76 and rising again to $100 in reaction to the Arab spring in the Middle East
As stated by HE Darwish bin Ismail Al Balushi, Minister Responsible for Financial Affairs, in his budget speech, the national economy continued, in the year 2011, its good performance in spite of the severity of the international financial and economic crisis that affected most of the advanced economies. This strong performance is attributed to the increase in the rates of the oil production, the remarkable improvement in its prices and the expansionary fiscal and monetary policies adopted by the government. The price of Oman crude oil continued to increase substantially during the year 2011. Oman crude realised an average price of $102.95 per barrel, compared with an average price of
THE TOP FIVE BY REVENUE - 2011 Rank
Company
$76.64 for 2010 and the budgeted price of $58 per barrel for 2011. This has resulted in Oman’s budget balance turning into a huge surplus of RO964.8mn in 2011. For the year 2011, the MSM Index declined by 15.69 per cent, compared to an increase of 6.06 per cent in the previous year. The financial sector was the largest loser at 23.25 per cent for the year 2011. The industrial sector was next which depreciated by 18.45 per cent for the year. The services sector closed the year with a total loss of 5.12 per cent. A total of 2.4 billion shares got traded during the year amounting to an aggregate turnover of RO992mn, which was down by 25 per cent compared to 2010. The MSM 30 Index hit a low of 5,419 points during the year while the high of the year was 7,027 points closing the year at 5,695.12. With a return of 15.69 per cent for the year, the MSM has been the fourth best performing market in the GCC region behind Qatar, which advanced by 1.1 per cent and Saudi
THE TOP FIVE BY PROFIT - 2011 Revenue RO MN
Growth % from 2010
Rank
Company
Profit RO MN
Growth % from 2010
1
Oman Telecommunications Co
453
8.64
1
BankMuscat
117.546
15.70
2
BankMuscat
370
4.51
2
Oman Telecommunications Co.
112.853
2.28
3
Shell Oman Marketing
359
10.88
3
Omani Qatari Telecommunications
47.512
(4.94)
4
Galfar Engineering & Cont
307
(17.31)
4
National Bank of Oman
34.202
25.88
5
Renaissance Services
290
14.40
5
Ominvest
19.993
14.24
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May 2012
Arabia, which declined by 3.1 per cent for the year. Abu Dhabi ended third with a decline of 11.7 per cent, Kuwait 16.4 per cent, Dubai 17 per cent, and Bahrain ended the year down by 22.2 per cent. The substantial increase in oil prices during the year was supported by increased oil production and increased non-oil exports which resulted in a real GDP growth rate for 2011 of 7 per cent. Oil production increased in 2011 again by about 3 per cent to 890,000 barrels per day. The government’s continued emphasis on diversifying the economy away from dependence on oil gained further momentum during 2011. Non-oil exports grew by about 20 per cent. ‘MEED Projects’ estimates that there are currently projects worth over RO5bn planned for Oman in a broad range of sectors that include transport, petrochemicals and utilities. The government launched several major projects for construction of roads. Other major projects will be awarded in the course of the year 2012. Performance of world financial markets was mixed. The S&P 500 was flat in 2011 while the FTSE 100 only dropped by 5.5 per cent. Eurofirst 300 gauge of blue-chip European companies lost by 11 per cent, led by the French and Italian exchanges. The MSCI Emerging Markets index has shed 20 per cent of its value despite strong growth in China and other emerging markets. Japan’s Nikkei index lost by 17.3 per cent this year, Hong Kong’s Hang Seng index by 20 per cent and the Shanghai Composite by 22 per cent.
During the year 2011, the revenues of Oman’s 20 largest companies showed an increase of RO365mn. Total revenues for the OER Top 20 companies increased by 10.79 per cent to RO3,751mn. Corporate performance for the year 2011, overall, however decreased. The profits for the year 2011 decreased by 5 per cent to RO447mn from RO471mn last year. The total market cap of the OER Top 20 companies on December 31, 2011 was RO4,684mn, with a decrease of 16 per cent compared to 2010. On March 31, 2011, the HE Sultan bin Hamdoon Al Harthi, Chairman, Omantel market cap of the Top 20 has gone down by a further 7 per companies from the financial sector, cent to RO4,339 mn. The OER seven from the services sector and Top 2o companies represent 69.75 seven from the industrial sector. per cent of the total market cap of the MSM-RO6,221mn at the end of 2011. Largest Revenue The average P/E ratio of the OER Top Omantel continues to be the largest 20 based on the profits of the year 2010 public company in Oman with a and the share price on 31 March 2011 growth in revenue of 8.64 per cent is 9.7 times earnings. compared to 2010. Bank Muscat has Who is out and who is in moved up one notch to number two We have two new comers on the list with a growth in revenue of 4.41 per this year. SMN Power, a newcomer in cent. Shell has also moved up from the market by virtue of an IPO in 2011 four to three with a growth of 10.88 comes in at number 16 and Oman per cent. Galfar Engineering has fallen Refreshment at number 20. two places from being number two last year to number four this year with These companies have made it to the a drop of revenue by 17.31 per cent. OER Top 20 this year at the expense of Renaissance remains in the number Dhofar Power, which was delisted in five slot with an impressive growth in 2011, and Salalah Port. revenue of 14.4 per cent. The ranking of Oman’s 20 largest companies in order of revenue produces a list, which includes the six
THE TOP FIVE BY GROWTH OF PROFIT - 2011 Rank
Company
The chairman of Omantel HE Sultan bin Hamdoon Al Harthi in his report to the shareholders explains that the
THE TOP FIVE HIGHEST CAPITALISED - 2011 Growth % from 2010
Rank
Company
Shareholders Equity RO MN
1
SMN Power
222.35
1
Bank Muscat
870
2
Oman Refreshment
109.81
2
Omantel
494
3
Al Jazeera Steel
59.23
3
National Bank of Oman
281
4
Bank Sohar
41.85
4
BankDhofar
229
5
Al Maha Petroleum
27.93
5
Oman Qatari Telecom
168
COVERSTORY – OERTOP20
company has already withstood the competition successfully and with integrated operating structure, it is well positioned to face evolving competition. HE Al Harthi is hopeful that Omantel would continue this performance in spite of increasing competitive pressure.
Most profitable
Khalid bin Mustahail Al Mashani, Chairman, BankMuscat
total revenue increased by 8.6 per cent. The increase is contributed by all business segments--fixed, mobile and wholesale-- as well as revenues from submarine capacity sales. He further explains that the total operating expenses increased by 11.1 per cent. Major reasons for the increase were costs related to capacity sale from EIG / Falcon cable systems, increase in depreciation and employee costs. Al Harthi states that the group has achieved a net profit after tax of RO112.9mn compared to the net profit of RO110.3mn in 2010, with an increase of 2.3 per cent. HE Al Harthi adds that the total subscriber base has recorded a growth of 6 per cent. The total number of subscribers has increased to 3.53mn compared to 3.33mn last year. HE Al Harthi states the telecom sector in Oman is likely to experience intense competition in Year 2012. The
Three of the top five most profitable companies in Oman are the same as last year with two newcomers on the list being National Bank of Oman and Ominvest at the expense of BankDhofar and Renaissance Services. BankMuscat has overtaken Omantel as the most profitable company in 2011. Omantel has dropped one place to the number two position. Oman Qatari Telecom retains its third position as last year. The two newcomers on the list, NBO and Ominvest, take the fourth and fifth positions. BankMuscat is the most profitable company in Oman as well as the second largest company in Oman based on turnover for the year 2011. BankMuscat which was number two last year and has improved this position from last year, has recorded a growth in profit for the year of about 15.7 per cent. Chairman Khalid bin Mustahail Al Mashani states in his yearend report to the shareholders that the results achieved have been encouraging despite the challenging global economic and financial situation. The key business
THE TOP FIVE BY MARKET CAPITALISATION – MARCH 31, 2012 Rank
Company
lines of the bank recorded healthy performance on expected lines. He explains that the bank achieved a net profit of RO117.5mn as against a net profit of RO101.6mn in 2010, an increase of 15.6 per cent over the year 2010. Mashani adds that during 2011, the return on average assets was at 1.8 per cent compared to 1.7 per cent in 2010. The return on average equity was 15.4 per cent in 2011 compared to 14.6 per cent in 2010 and the basic earnings per share was RO0.076 as against RO0.075 in 2010. Mashani goes on to say that the board has proposed a dividend of 40 per cent, 25 per cent in the form of cash and 15 per cent in the form of stock. Mashani observes that the overall economic outlook for 2012 remains positive with the government announcing a 12 per cent increase in spending. Indications are that infrastructure projects will continue to give a fillip to the economy in 2012.
Profit growth SMN Power Holding has shown the highest growth in profits by an enormous 222.35 per cent and comes in straight at the number one spot. All the five top companies showing the highest growth of profit – SMN Power, Oman Refreshment, Al Jazeera Steel, Bank Sohar and Al Maha Petroleum – are new in the list. OHI, Galfar, BankMuscat, BankDhofar and NBO which were in this list last year have all dropped off. The chairman of SMN Power Holding
THE TOP FIVE RETURNS ON EQUITY – 2011
Market Capitalisation RO MN
Rank
Company
Profit as a % of Equity
1
Oman Telecommunications Co
970
1
Shell Oman Marketing
42.10
2
BankMuscat
952
2
Oman Refreshments
39.98
3
BankDhofar
403
3
Oman Qatari Telecom
28.36
4
Oman Qatari Telecommunications
390
4
Oman Oil Marketing
23.73
5
National Bank of Oman
316
5
Al Maha Petroleum
23.49
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May 2012
COVERSTORY – OERTOP20
the same as last year and in exactly the same positions. The newcomer in the list at number five is Oman Qatari Telecom who has replaced Renaissance Services.
Omar Al Fardan, Chairman, NBO
Mahinder Nath in his report to the shareholders for the year ended on December 31, 2011 has explained that the company and its affiliates cater to around 35 per cent of the total power capacity and 20 per cent of the water capacity of Oman. He adds that in 2011 the company reached an important milestone by successfully listing 35 per cent of its issued share capital on the Muscat Securities Market. He explains that the technical performances of the plants over 2011 were in line with expectations. Nath adds that the technical performance of the plants is reflected in the financial statements with net earnings per share increasing to RO0.192 compared to RO0.060 in 2010 in line with forecast.
Highest capitalised Three of the top five companies that have the highest amount of equity employed are banks. Four of the five companies in this category remain
The chairman of NBO, Omar Al Fardan, in his report to the shareholders states that the bank achieved a net profit of RO34.2mn for the year compared to RO27.2mn for 2010, an increase of 26 per cent. Al Fardan remarks that the net spreads went to 3.18 per cent in 2011. The cost to income ratio improved from 51 per cent to 47 per cent on a year on year basis due to higher levels of income. The bank continues to reduce non-performing loans, with the non-performing loan ratio standing at 2.9 per cent at the end of December 2011 as compared to 3.5 per cent in 2010. Al Fardan adds that the board has recommended a cash dividend of RO0.0175 per share as well as a stock dividend of 0.0025 per share this year based on the dividend policy approved by the board of directors. Al Fardan states that the bank looks at 2012 with optimism as continued government spending is expected to maintain the growth momentum. Participation in major domestic transactions and cross border activity in conjunction with its strategic alliance partner, Commercial Bank of Qatar, continues to be the key to driving efficiencies by sharing best practices. He also adds that the bank plans to offer Islamic banking in 2012 as part of their franchise following the
THE TOP FIVE EARNINGS PER SHARE GROWTH - 2011 Rank
Company
recent approval by the Central Bank of Oman for introducing Islamic banking in Oman.
Market capitalisation This year again, two of the top five companies that have the highest market capitalisation on the MSM are not banks. Omantel and Bank Muscat have once again swapped places this year with the former emerging as the number one company on the MSM in terms of market cap. Bank Dhofar, Oman Qatari Telecom and NBO retain their same positions as last year. The chairman of Bank Dhofar, Abdul Hafidh Salim Rajab Al Aujaili in his annual report to the shareholders states that the bank’s winning streak continued in 2011 as it was awarded ‘Best Bank in Oman’ twice in a row by the OER-GBCM Best Banks in Oman Survey and therefore it seeks to concentrate on development from all aspects. Al Aujaili explains that the profit before tax for the year 2011 achieved by the bank, after the legal case loss charge off and other recoveries, was RO15.9mn in the year 2011, and the same, excluding the effect of legal case loss of RO26.1mn, would have been RO42mn as compared to RO37.9mn achieved in the previous year 2010 recording a growth of 10.8 per cent. The net profit after tax is RO14mn for the year 2011 as compared to RO33.3mn achieved during 2010, showing a decline of 58 per cent. In the light of these results, the board of directors has proposed a cash dividend of 7 per cent and a bonus share issue of 20.2 per cent.
THE TOP FIVE BY SHARE PRICE GROWTH - 2011
Earnings per share growth in %
Rank
Company
Share price growth per cent
1
SMN Power
216.67
1
Oman Refreshment
71.88
2
Oman Refreshment
110.45
2
Oman Oil Marketing
40.74
3
Al Jazeera Steel
60.00
3
Al Maha Petroleum
34.33
4
Bank Sohar
41.88
4
Shell Oman Marketing
6.50
5
National Bank of Oman
28.00
5
Oman Telecommunications Co
2.35
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May 2012
Al Aujaili explains that a lawsuit was filed by Oman International Bank against Ali Redha Al Lawati and his companies (Ali Redha Trading and Muttrah Holding) and Bank Dhofar as per the Enforcement Court’s order which instructed BankDhofar to transfer an amount of RO26.1mn to the Court’s account. The case relates back to a dispute between Oman International Bank and Ali Redha Group, who purported to have owned and pledged 1,925,000 shares of BankDhofar in favour of Oman International Bank, and the same is disputed by BankDhofar. Al Aujaili states that in its continuous efforts to improve the performance of the bank, the board of directors has appointed a consultancy firm, Boston Consulting group, to formulate a fiveyear strategic plan for the bank and supervise its implementation.
Returns on equity Interestingly, none of the top five companies showing the best return on equity employed come from the banking sector. Three of the companies in the top five are newcomers to the list. Shell remains at the number one spot as last year. Oman Refreshment, a newcomer to the list, comes straight in at the number two spot. Oman Qatari Telecom slips to the number three
positions. Newcomers Oman Oil and Al Maha Petroleum take the number four and five positions. Ominvest, Omantel and OHI are knocked out of this list. Amjad Mohamed Al Busaidi, Chairman of Oman Qatari Telecommunications Company (Nawras) in his annual report to the shareholders for the year ended 2011 states that in the first full year as a public company, revenue increased by 4.2 per cent to RO196.9mn yielding a net profit of RO47.5mn. Earnings per share equated to RO0.073. Al Busaidi explains that taking the year’s achievements into account, Nawras has maintained compound annual growth rate of 54 per cent in revenue since its formation. This enables the board to recommend to the shareholders a dividend of RO0.38 per share representing a yield of 5.8 per cent.
Abdul Hafidh Salim Rajab Al Aujaili, Chairman, Bank Dhofar
Al Busaidi adds that their investment in technology and physical assets has been completed by corresponding emphasis on developing human capital. Nawras has always been a ‘people company’ and this outstanding feature becomes more evident by the year, he adds.
Earnings per share growth Four of the top five earnings per share growth companies are newcomers in this list. SMN Power jumps straight into number one spot. Oman Refreshment comes in at the number two position, Al Jazeera Steel at number three, Bank
Sohar at number four and NBO, which was number four last year, at number five. OHI, Galfar, BankDhofar, and Salalah Port who were on this list in 2010 have all disappeared. Buti Obaid al Mulla, chairman of Oman Refreshment, in his report to the shareholders states that while the food and beverages market in Oman continues to grow with the growth of local population and influx of expatriate manpower required for the growing economy, the operational environment poses some challenges such as the changing consumption habits, stiff competition in juice, water and snacks product segments in a highly price sensitive local market. Also, the operating margins are subject to tremendous pressure due to rising cost of input materials and employment. The commodity prices in the international markets are on continuous rise on account of a series of natural calamities
THE BEST FIVE BY DIVIDEND YIELDS - 2011 Rank
Amjad Mohamed Al Busaidi, Chairman of Oman Qatari Telecommunications Company (Nawras)
Company
Dividend yield in %
1
Areej Vegetable Oils
10.00
2
Oman Telecommunications Co
7.64
3
Raysut Cement
6.58
4
Al Maha Petroleum
6.30
5
Oman Holdings International
5.98
COVERSTORY – OERTOP20
resulting in food shortages in many parts of the world. Al Mulla explains that the company has achieved a net profit after tax of RO7.04mn on a total turnover of RO56.04mn for the year 2011 compared to a net profit after tax of RO3.35mn on a turnover of RO45.11mn in 2010. The overall revenue has increased by 24 per cent as the company’s efforts to improve sales realisation have succeeded during the year which, together with the efficiencies resulting out of various cost control and costs optimisation measures, despite the challenges of rising costs of employment and high staff turnover due to the recent changes in the employment market, have contributed to overall growth in the top line as well as bottom line. Al Mulla adds that in view of good performance of the company during 2011, the board is pleased to recommend a cash dividend of 70 per cent (70 Baizas for each paid up share) of the issued share capital for the year 2011. Al Mulla is optimistic about the future prospects with the product expansion and diversification plans and renewed impetus on achieving higher production efficiencies. However, the volatile global market of commodities and the rising prices of key input raw materials, packing materials and volatile employment market may impact profitability of the company in the near future.
Share price growth Three of the five companies in this list are new comers. Oman Refreshment comes in straight into the number one position with a massive share price growth of 71.88 per cent. Oman Oil Marketing retains its second position same as 2010. Newcomer Al Maha Petroleum comes in at number three. Shell moves up one place to number four and newcomer Omantel comes in at the number five position. Renaissance, Al Hassan engineering and BankMuscat who were on the list last year have all dropped out. Salim Abdullah Al Rawas, chairman of Oman Oil Marketing in his report to the shareholders states that in
32
May 2012
2011, the company committed itself to pursuing an aggressive growth target, with the ultimate intention of leading the domestic market in all its business sectors. The company recorded its highest total sales in history of approximately RO278.2mn, with an increase of 29 per cent compared to RO216.2mn in 2010. The pre-tax profit increased by 18 per cent to RO9.2mn from RO7.8mn. After providing for corporate tax, the company’s net profit amounted to RO8.1mn, the highest ever net profit in Nasser bin Muhammed bin Nasser Al Hadhramy, Chairman, Areej Vegetable Oils the company’s history, a 17 per cent increase from that of 2012. Earnings per share stood at 126 baizas. Al Rawas adds that the Nasser bin Muhammed bin Nasser Al Hadhramy, chairman of Areej Vegetable board of directors is recommending Oils, in his report to the shareholders a final dividend of approximately 62 for the year ended on December 31, baisas per share which represents 62 2011 states that the company has posted per cent of nominal value per share. a record sales turnover of RO96mn in Al Rawas explains that the company 2011. The year also witnessed changes has continued to increase its presence in its operating environment. Price nationwide with a network of 132 regulation has been introduced in stations offering the company’s full Oman through the newly formed Public array of petroleum products. The retail Authority for Consumer Protection. business continues to be the back bone The social unrest witnessed in the first of the company. quarter and subsequent events led to an increase in labour costs. International Al Rawas is positive on the outlook vegetable oils prices continued to be for the coming year with the demand very volatile in 2011. The company has for petroleum products expected to managed the environmental factors and grow in line with Oman’s projected the price fluctuations in international economic growth of approximately 7 vegetable oil market very well to per cent in 2012. He explains that the improve sales and to earn a net profit company is gearing itself for intense after tax of RO1,501,664. competition particularly in retail and commercial businesses. Current Based on the good results achieved, the market share is to be defended while board has recommended a dividend of new ones are to be created and the 0.250 baiza per share for the year. Al margins to be managed. Hadhramy explains that the company Dividend yield carries out its responsibilities as a good One new company has entered the corporate citizen. The company meets ranking of the best five dividend all the standards of the Ministry of yield companies. Areej Vegetable Oils Regional Municipalities, Environment continues to remain in the number and Water Resources for disposal of one spot as 2010; Omantel moves up solid, liquid and gaseous effluents, and to the second position from number continuously works towards further three in 2010; Raysut Cement drops to improvements. The company holds number three from being second; Al the ISO 9001 certificate for quality Maha retains its number four positions management, the ISO 14001 certificate and OHI, a new comer, comes in the for environment management and number five slot. Shell has dropped out the ISO 22000 certificate for food of this list. safety management.
METHODOLOGY
The rankings for the OER Top 20 and the introductory write-up were done by Mukhtar Hasan who is a Fellow of the Institute of Chartered Accountants in England and Wales and holds a Corporate Finance qualification issued jointly by this institute together with the Securities Investment Institute and the Chartered Accountants Institute of Canada. He graduated as a Bachelor of Commerce in 1970 and qualified as a Chartered Accountant in 1974. He is also a member of the Corporate Finance Faculty of the Institute of Chartered Accountants in England & Wales. Hasan has local and international experience in banking, finance, senior management, private equity, corporate finance and investments. He is the managing partner of Al Barij International, which is a corporate finance firm specialising in corporate turnarounds. He has served on the board of several companies including Omani public companies United Power, Renaissance Services, Renaissance Hospitality, National Hospitality, Muscat Finance and Oman Textiles. He also served as the chairman of the American British Academy, an IB World School in Muscat for a number of years. He is currently chairman of Muscat Thread Mills, managing director of Gulf Mushroom Products Company and vice chairman of Oman Dental College as well as several other local and foreign private companies. He may be contacted by email at mukhtar@albarij.com
KPMG is a global network of professional firms providing Audit, Tax and Advisory services. KPMG reported Financial Year 2011 revenues of $22.7bn, employs 145,000 people in member firms around the world and operates in 152 countries. In the lower Gulf, comprising Oman and UAE, KPMG employs more than 700 professionals and operates from five offices in Muscat, Dubai, Abu Dhabi, Sharjah and Jebel Ali. KPMG Oman currently has a staff compliment of approximately 100 in audit, tax and financial advisory services, including four partners, five directors and 19 managers. KPMG Oman has been successfully training accountants and auditors in the Sultanate for many years.
DEFINITIONS AND EXPLANATIONS Revenues: All companies on the list are derived from the published accounts submitted to the Muscat Securities Market (MSM). Therefore, closed joint stock companies and private companies and establishments are excluded from this list. These companies are, in the first instance, ranked by revenues. All the other rankings shown on the table do not consider any other companies that do not make the list on the basis of revenue. In the case of banks and investment sector, the gross interest income as well as other operating income together is considered as their revenue for this purpose. In the case of insurance companies, the gross premium written as well as investment income together is considered as their revenue for this purpose. All figures are for the year ended December 31, 2011 or the end of financial year of the company in year 2011, unless otherwise stated. Profits: Profits are shown after taxes and all charges including extra-ordinary charges. Figures in brackets indicate a loss. All losses and negative growth are also ranked where possible.
Assets: Assets shown are as per the balance sheet at the end of the year. It is the total of fixed as well as the current assets. Shareholders’ Equity: Shareholders Equity is the paid up capital of the company, retained earnings, and statutory and all other reserves as well as share premium. Market Cap: Market Capitalisation figure has been arrived at by multiplying the total number of outstanding shares of the company by the price per share as of close of business on March 31, 2012 or as the last trading of stock of the company. Earnings per share: The earnings per share are as declared by the company in its published financial statements. Dividend Yield: The dividend yield figure is calculated on the basis of dividend declared in the financial statements for 2011 against the share price at close of business on December 31, 2011 or as per the end of financial year of the company. Price Earnings ratio: This ratio has been calculated by dividing the price per share by the earnings per share as at December 31, 2011. NOTES:
1. The following institutions have declared bonus shares dividend for the year 2011, which has not been taken into account in the calculation of dividend yield. • BankMuscat
15.00 per cent
• National Bank of Oman
02.50 per cent
• BankDhofar
20.20 per cent
• OMINVEST
10.00 per cent
2. The financial statements of OHI are as at March 31, 2011, which is their financial year-end. 3. The following companies are having share price/par value of share @ RO1/- each; • Al-Maha Petroleum Company • Areej Vegetable Oil & Derivative Company • SMN Power Holding
COVERSTORY – OERTOP20
COVERSTORY – OERTOP20
THE OER TOP TWENTY OMANI Rank
Revenue Company
2011 2010
Profit as % of Profit as % Profit as % Revenues Assets Equity
Profits
Growth Growth 2011 2010 2011 2010 % from Rank % from Rank (RO Mn) (RO Mn) (RO Mn) (RO Mn) 2010 2010
%
Rank
%
Rank
%
Rank
3
22.86
6
1.63
14
13.51
13
2
42.10
1
1
1
Oman Telecommunications Company
452.61
416.60
8.64
112.853 110.338
2
2.28
9
24.93
4 15.90
2
3
Bank Muscat SAOG*1
370.17
354.19
4.51
117.546 101.595
1
15.70
8
31.75
2
3
4
Shell Oman Marketing Company
358.80
323.60
10.88
12.602
13.991
9
(9.93)
13
3.51
13 18.74
4
2
Galfar Engineering and Contracting
307.22
371.53
(17.31)
5.264
6.000
15
(12.27)
15
1.71
18
1.31
16
6.05
19
5
5
Renaissance Services
289.92
253.43
14.40
2.291
32.282
19
(92.90)
20
0.79
20
0.35
20
1.38
20
6
7
Oman Oil Marketing Company
278.22
216.17
28.70
8.099
6.862
12
18.03
7
2.91
16 10.58
6
23.73
4
7
8
Oman Cables Industry
272.30
200.88
35.55
7.235
8.075
13
(10.40)
14
2.66
17
5.19
9
14.55
12
8
6
Al Maha Petroleum Products Marketing Co.*3
268.32
219.79
22.08
8.559
6.690
11
27.93
5
3.19
15 13.19
5
23.49
5
9
9
Omani Qatari Telecommunications Company
196.87
188.86
4.24
47.512
49.980
3
(4.94)
11
24.13
5 15.87
4
28.36
3
10
10
Oman Holdings International Company*2
128.87
123.26
4.55
9.940
10.037
10
(0.97)
10
7.71
10
7.48
8
20.35
8
11
11
National Bank of Oman*1
127.40
117.66
8.28
34.202
27.171
4
25.88
6
26.85
3
1.53
15
12.16
14
12
12
Bank Dhofar*1
102.13
96.71
5.61
13.976
33.280
8
(58.00)
19
13.68
8
0.71
19
6.10
18
13
13
Areej Vegetable Oils & Derivatives*3
96.03
65.76
46.02
1.502
1.812
20
(17.13)
17
1.56
19
3.97
12
16.61
9
14
15
Al Jazeera Steel Products Co
91.20
64.91
40.49
3.031
1.903
17
59.23
3
3.32
14
4.05
11
9.12
17
15
14
Raysut Cement Company
83.81
64.98
28.99
14.949
20.722
6
(27.86)
18
17.84
7
7.91
7
14.60
11
16 N/A
SMN Power Holding*3
81.52
78.32
4.08
3.836
1.190
16
222.35
1
4.71
11
1.12
17
10.55
16
17
16
Bank Sohar
69.24
63.03
9.85
14.497
10.220
7
41.85
4
20.94
6
1.01
18
11.27
15
18
18
OMINVEST*1
62.18
62.29
(0.18)
19.993
23.314
5
(14.24)
16
32.15
1
1.75
13
20.35
7
19
19
Al Hassan Engineering Company
60.68
60.10
0.96
2.461
2.670
18
(7.85)
12
4.06
12
4.36
10
14.99
10
Oman Refreshment Company
56.04
45.12
24.20
7.045
3.358
14
2
12.57
9 27.04
1
39.98
2
20 N/A
*Please refer to Methodology page
109.81
COMPANIES FOR 2011 Earnings per Share
Dividend Yield
Dividend per Share
Share Price Sector
2011 (RO)
2010 (RO)
Growth 2011 Rank % %
0.149
0.149
0.00
9
0.076
0.066
15.15
0.126
0.140
0.016
31-Dec-11 31-Dec-10 (RO per sh) (RO per sh)
Growth Rank 31-Mar-12 %
P/E Ratio 31-Mar-12
2010 %
Growth %
2011 (RO)
2010 (RO)
Rank
7.64
7.82
(2.29)
0.100
0.100
2
Services
1.309
1.279
2.35
5
1.293
8.68
8
3.26
2.60
25.59
0.025
0.025
17
Financial
0.766
0.962
(20.37)
13
0.615
8.09
(10.00)
13
4.89
5.79
(15.49)
0.117
0.130
12
Services
2.393
2.247
6.50
4
2.250
17.86
0.018
(11.11)
14
3.56
1.79
99.41
0.012
0.010
16
Industrial
0.337
0.560
(39.82)
17
0.379
23.69
(0.004)
0.103
(103.88) 20
0.00
1.08 (100.00)
0.000
0.012
20
Services
0.545
1.108
(50.81)
19
0.568
(142.00)
0.126
0.106
18.87
7
3.63
3.46
4.89
0.062
0.042
15
Services
1.710
1.215
40.74
2
1.670
13.25
0.077
0.091
(15.38)
15
5.41
3.40
58.78
0.040
0.040
10
Industrial
0.740
1.175
(37.02)
15
0.760
9.87
1.240
0.970
27.84
6
6.30
6.97
(9.60)
0.850
0.700
4
Services
13.500
10.050
34.33
3
14.865
11.99
0.073
0.077
(5.19)
10
5.85
4.78
22.31
0.038
0.038
8
Services
0.650
0.795
(18.24)
11
0.599
8.21
0.068
0.073
(6.85)
11
5.98
5.38
11.16
0.015
0.015
5
Financial
0.251
0.279
(10.04)
9
0.228
3.35
0.032
0.025
28.00
5
5.47
4.24
29.06
0.018
0.015
9
Financial
0.320
0.354
(9.60)
8
0.292
9.13
0.015
0.036
(58.33)
19
1.28
1.69
(24.14)
0.007
0.013
19
Financial
0.547
0.741
(26.18)
14
0.440
29.33
0.326
0.394
(17.26)
16
10.00 11.00
(9.09)
0.250
0.275
1
Industrial
2.501
2.501
0.00
6
2.501
7.67
0.024
0.015
60.00
3
5.95
3.04
95.77
0.015
0.009
6
Industrial
0.252
0.296
(14.86)
10
0.258
10.75
0.075
0.104
(27.88)
17
6.58
8.16
(19.41)
0.050
0.100
3
Industrial
0.760
1.225
(37.96)
16
0.931
12.41
0.190
0.060
216.67
1
3.93
N/A
N/A
0.144
N/A
14
Services
3.663
N/A
N/A
3.834
20.18
0.015
0.010
41.88
4
5.06
3.03
67.09
0.008
0.006
11
Financial
0.158
0.198
(20.20)
12
0.147
10.14
0.034
0.052
(34.62)
18
2.39
2.23
7.18
0.010
0.010
18
Financial
0.418
0.448
(6.70)
7
0.411
12.09
0.033
0.036
(8.33)
12
5.93
3.07
92.89
0.015
0.015
7
Industrial
0.253
0.488
(48.16)
18
0.255
7.73
0.141
0.067
110.45
2
4.83
11.85 (59.27)
0.070
0.100
13
Industrial
1.450
0.844
71.88
1
1.495
10.60
N/A
COVERSTORY – OERTOP20
OMAN TELECOMMUNICATIONS COMPANY
CONSISTENT POSITION Omantel continues to remain the top company in the Sultanate despite stiff sectoral challenges As part of the internal restructuring to enhance cost and service efficiency, Oman Telecommunications Company embarked upon an integrated operating model merging its fixed (Omantel) and mobile (Oman Mobile) operations. The formal merger has been completed and as of January 1, 2012 both companies became legally one company under Omantel.
“Mobile market witnessed renewed growth in 2011 mainly driven by the broadband market. We expect that the momentum would continue with increased penetration of lower end of smart phones coupled with flexible and innovative offers”
As the leading telecom operator in Oman, the strategy of the company remains centered on expanding the promising segments of the market and to develop attractive offerings with a particular focus on broadband solutions in order to fulfill increasing demand created by the rise of smart devices and social networks.
Dr Amer Al Rawas CEO, Omantel
01 600 500 400
Numbers at a glance Revenue (in mn) RO416.60
Growth: 8.64% RO452.61
Milestones Overall retail mobile revenues recorded a growth of 9.4 per cent over year 2010 Aggregate internet and data communications revenues in 2011 witnessed a growth of around 18.4 per cent over 2010, mainly driven by broadband and data services
300
Overall revenue from internet services increased in 2011 mainly due to enhanced broadband offers implemented effective from January 2011
200 100
2010
0
Mobile subscriber base reached 2.277 million, a net increase of 144,000 (excluding mobile resellers)
2011
The broadband market has seen significant uplift in 2011 mainly driven by mobile broadband services growth of 139 per cent y-o-y
150 3URÀW (in mn) 120
The mobile segment has been the primary growth driver of Omantel revenues over the past three years. Total revenues comprising revenues from fixed line, internet and data, mobile services and in-payment and interconnection services have increased from RO416.6mn in 2010 to RO452.6mn in 2011 with an y-o-y growth of 8.6 per cent.
RO110.338
Growth: 2.28% RO112.853
90
30
2010 2010-1
2011
OER TOP 20 RANK
Omantel expects that the growth momentum would continue to be driven by the mobile market (broadband). In addition, the trend in the fixed broadband growth witnessed in 2011 is expected to continue due to innovative offers. The state budget which projected a GDP growth of 7 per cent with increased expenditure outlay for social, health, education sector and commitment of over 36,000 new jobs for nationals is also expected to provide the necessary stimulus to the telecom sector notwithstanding the challenges posed by the increasing competition.
60
0
Outlook
2011-1
COVERSTORY – OERTOP20
BANKMUSCAT
BEST IN CLASS In the era of global financial mess, BankMuscat stands tall with a stress on fundamentals BankMuscat achieved a net profit of RO117.5mn for the year ended on December 2011 as against a net profit of RO101.6mn in 2010, an increase of 15.7 per cent. Net interest income increased by 13.3 per cent to RO212.1mn in 2011 from RO187.2mn reported during the year 2010. Increase in net interest income is attributable to improvement in net interest margin and asset growth.
“Strong customer relationship remains fundamental to the growth of our corporate business with a focus on the quality of loan assets and building customer confidence. The bank maintains its emphasis in supporting feasible projects in core areas such as oil and gas, petrochemicals, large-scale industry, shipping and contracting”
Net loans and advances increased by 20.2 per cent to RO4.82bn as against RO4.01bn as at December 31, 2010. Customer deposits including CDs increased by 31.8 per cent to RO4.6bn as against RO3.7bn in 2010.
Dr AbdulRazak Ali Issa
Chief Executive, BankMuscat
02 600 500 400
Numbers at a glance Revenue (in mn)
RO354.19
Growth: 4.51%
RO370.17
300
2010 2010
0
2011
Growth: 15.70%
RO101.595
RO117.546
2010
2011
90 60 30 0 2010-3
May 2012
Al Mazyona, the bank’s savings scheme, crossed the RO1bn mark in deposits Facilitated the closure of financing of $562mn PET and APETR sheet project of OCTAL Petrochemicals With a brand value of $300mn, BankMuscat was ranked among the top 500 global banking brands by the Banker magazine
The bank has announced ‘Meethaq’ Islamic banking window operations with a capital of RO150mn, subject to approval of the Central Bank of Oman 3URÀW (in mn)
34
The bank marked its foray into Southeast Asia with a representative office in Singapore
BankMuscat made it to the first ever ranking of the 50 Safest Banks in Emerging Markets by Global Finance
2011
150 120
Milestones
The bank achieved a global first of winning the prestigious Level 3 People Capability Maturity Model (PCMM) certification for its human resources process improvements
200 100
For the year 2011, the bank’s board of directors proposed a dividend of 40 per cent – 25 per cent in the form of cash and 15 per cent in the form of bonus shares. Thus cash dividend would be 25 baiza per 100 baiza share aggregating to RO38.7mn while the bonus shares would be in the proportion of one share for every 6.666 ordinary shares aggregating to 232,256,957 shares of 100 baiza each amounting to RO23.2mn.
OER TOP 20 RANK
2011-2
Outlook BankMuscat expects to benefit from the government’s policy aimed at balancing the economic and social development as some 45,000 new positions will be created for Omanis each year. The launch of its Islamic banking division will also contribute to the bank’s performance. The bank also expects a fiscal surplus in 2012 on the back of supportive oil prices. Indications are that the infrastructure projects will continue to give a fillip to the economy in 2012 as part of the 8th Five-Year Plan strategy
SHELL OMAN MARKETING COMPANY
RETAINING ITS SUCCESS Maintaining a profitable footprint in both new and existing contracts was the name of the game Shell Oman Marketing Company embarked on a major transformation and business process re-engineering programme in 2010 which continued through 2011 and concluded in the first quarter of 2012. This has enabled the company to be well prepared for the future in terms of growth, customer value proposition, internal efficiency and operational excellence. The plan includes a major revision of its end-to-end business processes and implementation of a new integrated SAP application platform.
“We have marked our entry into 2012 with an ambitious strategy to sustain market leadership and value share in various market segments with customer service and sales support remaining the centerpieces of our execution strategy”
Adil Ismail Al Raisi
The company’s performance was affected by unrest in the Middle East and North Africa. Particularly the lubricant export business was adversely impacted as there was reduced offtake from the customers in these regions. However, the retail business, the largest portfolio segment, saw an increase in sales volume higher than the previous year. The commercial fuels business came under intense competitive pressure, resulting in decisions to allow certain contracts to move to competitors. While the lubricants business managed to retain its contracts as well, the marine business grew steadily. The bitumen business also developed new capabilities and brought new technologies to Oman.
Milestones The transformation and business process re-engineering programme which began in 2010 went live on January 1, 2012 The company received a letter of intent from Oman Air to supply 50 per cent of Oman Air’s total fuel uplift at Muscat International Airport subject to the signing of a final contract Retail sites achieved a new record of 144 sites in total with the opening of four sites. In addition two sites were rebuilt New business won from Arab Airlines members group for one year with a two-year extension of its exclusive operating concession at Salalah Airport
MD, Shell Oman Marketing Company
03 600 500
Revenue (in mn)
400 300
RO323.60
RO358.80
100
2010
0
2011
20 3URÀW (in mn) 15
Growth: (9.93%)
RO13.991 RO12.602
Outlook The government’s latest Five-Year development plan provides strong infrastructure development and creates expected growth in the retail market above the GDP. As such the key focus areas for 2012 in the retail segment will be to increase the network roll out, increasing the cards business, operational excellence and innovative marketing campaigns.
Growth: 10.88%
200
Total number of staff rises to 296 following recruitment of more local talent Shell Select stores had a 60 per cent y-o-y growth
Numbers at a glance
10
5
2010
0 2010-4
2011
OER TOP 20 RANK
2011-3
Mark this date that will bring many answers to Oman’s environmental future
Bringing good efforts to light 5 June 2012 In association with
Ministry of Health
Ministry of Environment and Climate Affairs Strategic Partner
Dept. of Environment & Occupational Health
Support Partner
Media Partners
Call Centre
Under the auspices of
H E Mohamed Al Toobi Minister of Environment and Climate Affairs
5 June
2012
An
Initiative
A vision for a brighter, greener tomorrow, today. Oman Green Awards 2012 - Oman’s much awaited awards forum is back, bringing with it this year’s campaigns and initiatives that has increased awareness and motivated behavioral change for the protection and preservation of our environment. This is Oman’s biggest platform that will recognise and reward outstanding environmental vision and achievements by corporates, NGOs and individuals active in promoting and implementing ideas in the Sultanate. It’s time for you as corporates and individuals to get involved.
CATEGORIES O
The Green Innovation Award
Green Campaign of the Year O The Green Habitat Award O The Green Research Award O Green Landscape Award O Green Footprint Award O Green Guardian Award O Green Champion Award O Green Education Award O
For partnership enquiries please call Ahmed 99356490
Nominate your cause at omangreenawards.com before 15/05/2012
COVERSTORY – OERTOP20
GALFAR ENGINEERING & CONTRACTING
HEALTHY VISTAS Competitive edge is achieved with quality of work and expertise in dealing with challenging projects Galfar Engineering and Contracting Co continues to be one of the largest multidisciplinary engineering and contracting company in the Sultanate, despite the entry of various new players in the market. The company has developed the capacity and capability to execute the most challenging jobs in the various streams of infrastructure development; and its experience in the three major construction and infrastructure sectors oil & gas, roads, bridges and airports; and civil and utilities, remains unparalleled.
“Galfar’s broad image as a premier Omani company with international presence is without comparison and we can deliver projects in all the sections of engineering and construction industry, with high quality standards in a safe and timely manner to the satisfaction of all stakeholders”
Human resources has been one of the main pillars in enhancing the performance of the company. The company employs over 20,000 employees at site, across various functions and levels and is one of the largest employers of Omani workforce in the private sector.
Dr P Mohamed Ali
MD, Galfar Engineering & Contracting
04 600 500 400
Growth: (17.31%)
RO371.53 RO307.22
300
Milestones In 2011 the company worked 93 million man hours and has driven 117 million kms collectively in its projects throughout Oman
Numbers at a glance Revenue (in mn)
In order to maintain its competitive edge in the oil & gas industry, Galfar remodeled its quality management system to comply with the requirements of ISO 29001:2010 (petroleum and petrochemical sector specific standard).
Lost Time Injury Frequency (LTIF) recorded is 0.5 which meets the limit set for the year 15 million safe man hours in oil & gas unit; nine million safe man hours in Hasik-Shuwaimiyah road project and off-plot delivery contract; and six million safe man hours in Seeb sewage network project Order book stood at RO552mn in the beginning of 2012 Got the first package of the Batinah Expressway at RO138.93mn
200
Outlook The company’s order book position is healthy and it is confident of doing large volume of jobs during the forthcoming years and focus on its growth plans. The appreciably healthy order book during the beginning of the year is indicative of further significant order booking prospects and the company is confident about acquiring a number of significant contracts this year.
100
2010
0
2011
10 3URÀW (in mn)
Growth: (12.27%)
8 6
RO6.000 RO5.264
4 2
2010
0 2010-2
38
May 2012
2011
OER TOP 20 RANK
2011-4
The Indian operations of Galfar created significant value and is expected to remain a key growth area as the demand for roads and highways is phenomenal. The company is also looking at Saudi Arabia, where substantial opportunities are available. As a first step towards this, the company recently registered a branch office there.
COVERSTORY – OERTOP20
RENAISSANCE SERVICES
INTEGRITY IN ADVERSITY Renaissance Services is working tirelessly on exceeding shareholder expectations with a renewed performance and stress on its fundamental values “People are a vital source of competitive advantage. At the heart of building a high performance company is talent management – attracting and hiring the right people to the organisation. Renaissance thrives on the skill, hard work, ingenuity and enterprise of talented people from around the world who are the heart and soul of all our businesses”
Renaissance Services faced unforeseen and unprecedented challenges in 2011 after 10 successive years of growth and record results. But the company regards the downturn in its 2011 performance as having been contained and reversed. Stakeholders trust Renaissance companies to exceed customer expectations safely and efficiently. The company ended the year with RO653.7mn of assets and more than RO37mn of cash on its balance sheet. It invested RO90.4mn in new assets for growth during 2011. The result is a 14.4 per cent growth in revenue in 2011.
Stephen R Thomas
CEO, Renaissance Services
05 400 350
Numbers at a glance Revenue (in mn)
300 250
Growth: 14.40% RO289.92
RO253.43
150
Contract Services team had employed a net increase of 786 Omanis in the year, raising the total number of Omanis employed to 2,200
Completed the first phase of the re-financing initiative and has a signed term sheet in excess of $200mn
100 50
2010
0
In Azerbaijan, four new vessels joined the fleet in 2011
2011
Successful entry into new markets in West Africa and Saudi Arabia
Outlook
35 3URÀW (in mn)
Growth: (92.90%)
RO32.282
30
3
RO2.291
2 1 0
2010 2010-5
May 2012
Milestones
Topaz business has been restructured into Topaz Marine and Topaz Engineering
200
40
During the past year, the engineering business parted into two distinct divisions: Oil & Gas Engineering and Marine Engineering. The Marine And Contract Services businesses of the company continue to perform well. The company has been restructured and streamlined. Renaissance predicts the continuing muted performance to last only till the first half of 2012, improving strongly in the second half of the year.
2011
OER TOP 20 RANK
2011-5
Even with uncertainty in the global economy, industry and market trends look positive for Renaissance businesses. Barclays Capital estimates that global exploration and production (E&P) spending in 2012 will be up by 10 per cent with Middle East E&P spending expected to rise 12 per cent due to a pickup in activity particularly in Iraq, Saudi Arabia and Kuwait. Renaissance believes that this is good news for all its businesses. Renaissance is committed to promoting sustainable economic development and to collaborate with employees, their families and the local community and society at large to help foster a better quality of life. This year, the company has incorporated Global Reporting Initiative (GRI 3.0) disclosure parameters for the first time in an effort to enhance its focus and transparency.
OMAN OIL MARKETING COMPANY
RECORD BREAKING YEAR Catering to discerning requirements and demands from customers has enabled the company to grow Oman Oil Marketing Company (OOMCO)committed itself to pursuing an aggressive growth target, with the ultimate intention of leading the domestic market in all its business sectors.
“Our success is attributed to the implementation of sound human resources strategies at all levels, from attraction and retention of leadership to the development of omanoil’s staff, as well as the establishment of a productive work environment and effective policies and procedures”
The company recorded the highest total sales in its history of approximately RO278.2mn, an increase of 29 per cent compared to RO216.2mn in 2010. After providing for corporate tax, the net profit amounted to RO8.1mn, the highest ever net profit in the company’s history. It was also a 17 per cent increase over 2010. The retail business continues to be the backbone of the company with all strategies and focus being geared towards widening the network, increasing the market share, presence and dominance in the Sultanate of Oman. The company has continued to increase its presence nationwide with a network of 132 stations offering the company’s full array of petroleum products.
Omar Ahmed Qatan
CEO, Oman Oil Marketing Company
06
Milestones Commissioned 10 brand new stations to the network as well as surpassed one billion litres of fuel sales in November 2011
400
Omanisation rate is one of the highest in the industry at 86 per cent at all levels of employment
300
Nine new Ahlain convenience stores with smart partnership with renowned fast food chain specialists namely Burger King, Dunkin Donuts and Subway; and one new car wash facility were commissioned in 2011 Twenty Nawras payment machines were installed inside convenience stores Fuel cards business grew by nearly 23 per cent over 2010 Added Lufthansa and Swiss Air to its customer portfolio
Outlook The outlook for the coming year is positive with the demand for petroleum products expected to grow in line with Oman’s projected economic growth of approximately 7 per cent in 2012. OOMCO is gearing itself for intense competition particularly in retail and commercial businesses. New lucrative sites as well as fast food outlets will be added on top of more new convenience stores bearing the Ahlain brand. The company expects its competitors to continue to invest in new stations to defend their market share. The commercial team is focused on obtaining new infrastructure contracts as announced by the government and private sectors. This will contribute positively as the construction of various infrastructure linked projects, upgrading of highways and roads will help keep demand, particularly for diesel at reasonable levels.
350
250 200
Numbers at a glance Revenue (in mn)
Growth: 28.70% RO278.22
RO216.17
150 100 50
2010
0
2011
15 3URÀW (in mn)
Growth: 18.03%
12 9
RO8.099 RO6.862
6 3
2010
0 2010-7
2011
OER TOP 20 RANK
2011-6
COVERSTORY – OERTOP20
OMAN CABLES INDUSTRY
POWERING UP Despite being a part of an industry linked to the region’s economic development, OCI did exceptionally well The cable industry operates through local players in each area and economies of scale are targeted through capacity designs or organising a cluster under an umbrella company. The technological developments in the industry relate mainly to the materials efficient usage in relation to current carrying capacity.
“Oman Cables has the resilience in the local and regional markets to sustain its growth and is well placed to further enhance its position viewed in-line with the opportunities identified”
Oman Cables Industry (OCI) has laid special emphasis on penetrating and developing new markets because of which the company has managed to maintain profitability in a changing economic environment from 2008. The penetration of carefully selected new markets contributed significantly to the results of the company. OCI has put enormous efforts and worked tirelessly behind the scenes to develop these markets and is pleased with the progress it made in these new markets especially in the Pacific Rim and African markets.
Hussain Salman Al Lawati
Vice Chairman and Managing Director Oman Cables Industry
07 400 350 300
Growth: 35.55% RO272.30
250 200
RO200.88
100
2010
0
2011
15 3URÀW (in mn)
Growth: (10.40%)
12
RO8.075
3
2010
0 2010-8
2011
OER TOP 20 RANK
OCI has put in place a strategic five-year business plan for growth and sustainability, for which, efforts began a few years ago. The company has enhanced its operations by investing in the best technologies, implementing manufacturing execution system and continuously upgrading its international accreditations and product approvals. The management believes in balancing its customer base internationally and maintaining leadership in regional markets. The regional markets, especially the GCC markets remain promising for future growth with expansion of infrastructure projects in general and in the electrical and power projects in particular. Further, the demand for electricity will continue worldwide and this will translate into a further need for electrical power cables. The company also expects private and public investment programmes to continue in the region.
RO7.235
6
May 2012
The company’s Middle Management Programme for Omanis introduced a few years back has begun to yield positive results by way of progressive Omanisation at senior and middle management positions
Outlook
50
42
Bagged the Corporate Governance Excellence Award for the second year in a row, awarded by Capital Market Authority
Trained 125 employees in 12 different programmes with special focus on training for young Omani engineers
150
9
Milestones Won the prestigious “His Majesty Cup” for the best industry for the year 2011
Numbers at a glance Revenue (in mn)
Despite major challenges, the company achieved credible results registering a double digit growth in sales for the year 2011 compared to the previous year.
2011-7
COVERSTORY – OERTOP20
AL MAHA PETROLEUM PRODUCTS MARKETING COMPANY
EXCELLENT PERFORMANCE The market share of Al Maha is quite healthy and is expected be sustained and maintained “Our objective is to improve shareholders net worth by paying consistent and fair returns as well as improving the overall market share in all business areas. Our other objective is to recruit and empower Omani youth with particular emphasis on protection of health, safety and environment”
Taking advantage of the favourable economic situation, Al Maha Petroleum Products Marketing Co achieved a record growth in sales which reached RO268.3mn in 2011, an increase of 22 per cent (RO48.5mn) compared to 2010. The net profit of the company was RO8.6mn, an increase of 28 per cent (RO1.9mn) over 2010.
Ibrahim Salim
MD, Al Maha Petroleum Products Marketing Co
08 400 350
Numbers at a glance Revenue (in mn)
300 250
Growth: 22.08% RO268.32
RO219.79
200
The aviation and lubricants sales saw significant rises mainly due to an increased supply to Oman Air and other airlines. The significant increase in international selling prices of aviation fuel has also increased aviation sales.
Successfully achieved ‘Lost Time Injury Free and Fatality-Free’ in 2011
100
Four new filling stations were opened in 2011
50
2010
0
Two more car wash centres were commissioned
2011
Aviation sales rose by 48 per cent
15 3URÀW (in mn)
Growth: 27.93%
12
Omanisation level reached 88 per cent at the end of 2011 with total employees standing at 161
Outlook
9
Al Maha expects to sustain its future growth and improve demand for its fuel products across various business segments as a result of the large public infrastructure investment programme by the government which is underway, namely rail network, new air and sea ports, power and tourism projects.
RO8.559 RO6.690
6
The company’s main emphasis would be on infrastructural improvement to provide better customer care in order to increase its market share.
3
2010
0 2010-6
May 2012
The retail sales segment witnessed further growth and saw the total number of filling stations climb to 171. With the launching of the re-branding project, a total of 10 filling stations have been completed adding a new dimension to the outlook of Al Maha filling stations. The commercial sales segment also recorded an impressive growth of 20 per cent in 2011. This has been attributed to the increased demand for diesel by Al Maha customers on account of execution of some major infrastructural projects.
Milestones
150
44
Retail sales continued to be the main contributor to the company’s revenue stream with sales increasing by 17 per cent compared to 2010. This was largely attributable to the increase in sales volume which crossed the one billion litres mark in 2011.
2011
OER TOP 20 RANK
2011-8
OMANI QATARI TELECOMMUNICATIONS CO
SEVEN YEARS YOUNG Nawras has been a ‘people company’ and this feature becomes more evident as the days go by The Omani Qatari Telecommunications Company (Nawras) in its first full year as a public company saw its gross consolidated revenue increase by 4.2 per cent to RO196.9mn as compared to RO189mn in 2010, yielding a net profit of RO47.5mn after taxation.
“Although the company will undoubtedly face market competition, it has the benefits of a stable and prosperous economic environment coupled together with its proven record of consistent performance and achievement over the past seven years”
The year’s achievements are the fruits of a well-established business strategy that has shaped the company’s success over its seven-year existence. Nawras invested heavily in creating the physical structure necessary to bring the best of modern telecommunications technology to the people of Oman, wherever they live or work. Nawras investments in technology and physical assets have been complemented by corresponding emphasis on developing its human capital. Nawras has always been a ‘people company’ and this outstanding feature becomes more evident by the year. Its employees, distributors and retailers, customers, and suppliers all comprise the extended Nawras family. And it treats each other with the respect that family members deserve.
Milestones
Ross Cormack
CEO, Omani Qatari Telecommunications Co
09 300
Increased its workforce to over 1,000 including the addition of 150 new positions for Omanis at the request of the government of Oman
250
Broadband traffic increased from one terabyte a day to 18 terabytes a day in 2011
200
Prepaid customers exceeded 1.75 million and the number of home broadband and voice customers increased by 251 per cent to 27,000 Sales network expanded, ending 2011 with six distributors, 26 Nawras stores, 107 premium dealers, over 1,000 standard dealers and 15,000 recharge outlets Customer satisfaction surveys show an increase from 87 per cent in 2010 to 92 per cent in 2011
Outlook Looking ahead, Nawras aims to build on the proven principles that have served it so well to date. In broad terms, the company wants to grow its mobile revenues faster than the market, develop new revenue streams, and maintain its focus on cost-efficiency. As its intensive capital expenditure programme matures, Nawras will benefit from overall cost reduction and growth in its fixed-line and mobile business. The company also has the opportunity to win a significant share of the growing market for broadband and at the same time, it can take a greater share of international carrier business, while selling spare capacity to other network providers and service operators.
Numbers at a glance Revenue (in mn)
Growth: 4.24%
RO188.86
RO196.87
2010
2011
150 100 50 0 100 3URÀW (in mn)
Growth: (4.94%)
80 60 RO49.980
RO47.512
2010
2011
40 20 0 2010-9
OER TOP 20 RANK
2011-9
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ALAM AL-IKTISAAD WAL A’MAL AWARDS Oman’s Best Performing Companies 10 JUNE 2012 I Al Bustan Palace Ritz-Carlton
The stars of Corporate Oman shine brightest on June 10.
AIWA Awards 2012 is set to honour the most inspiring corporate performances. On 10 June, AIWA Awards will once again celebrate the Omani enterprises and corporate captains who blaze a trail for the next generation of home-grown entrepreneurs and professionals. At the glittering occasion, a networking opportunity like no other, with highly distinguished guests - Oman’s Top 5 Small, Mid and Large Cap companies will be recognised for their outstanding achievements, and two leading lights of the business world will be honoured for their contributions. AIWA Special Awards Lifetime Achievement Award for visionary leadership, unparalleled service and professional excellence Global Omani Award for steering strong, sustainable growth on the global stage and outstanding business stewardship in Oman
Please reserve your seat at AIWA Awards 2012. Contact Rekha at 99269147 or rekha@umsoman.com today. For enquiries, please contact Ahmed at 99356490 or ahmed.sayed@umsoman.com Strategic Partner
Media Partners
COVERSTORY – OERTOP20
OMAN HOLDINGS INTERNATIONAL
REASONABLE EXPECTATIONS Right from its inception, Oman Holdings International has been built on one single belief, and that is the power of its partnerships The concept of building strong partnerships with local partners and overseas principals has created enduring results for Oman Holding Company (OHI) and made it a premier corporate house in the Sultanate. The company has business interests which range from contracting, telecommunications, hospitality, real estate, communications and IT solutions to marine, petroleum and energy services. The main contributors to the operating profit for the period nine-month period ending December 2011 were oil & gas and civil construction, marine and services subsidiaries all of which have strong partners.
“The 8th Five-Year Plan targets a GDP growth of 6 per cent per annum during the plan period. This provides a buoyant background for businesses to flourish”
Behram Divecha
CEO, Oman Holdings International
10 200
Numbers at a glance Revenue (in mn)
Growth: 4.55%
160 120
RO123.26
RO128.87
Milestones The company’s subsidiaries, engaged in civil construction, technology, energy and infrastructure and marine sectors, capitalised on favourable and conducive economic conditions to generate good results
80
Improved sentiments in the equity markets helped the company in giving reasonable returns on its investment securities
40
The real estate and hospitality sector which had seen a slump for several years now saw the conditions improving during the year
0
2010
2011
15 3URÀW (in mn)
Growth: (0.97%)
12 RO9.940
9 6
2010 2010-10
May 2012
OHI group has grown by seizing opportunities through timely and needbased diversification The Sultanate has undertaken numerous developmental projects in the infrastructure area and has unveiled a robust budget which would produce lasting benefits to the economy and also create jobs in the near term. OHI aims to continue its policy of creating and developing trusted partnerships which will help to increase stakeholder value. It also seeks to maintain consistency in being an employer of choice and ensure customer satisfaction.
3 0
Company has motivated staff to take responsibility of tasks assigned and relationship management in order to build its future
Outlook RO10.037
48
All the subsidiaries and associates of the group have their financial year ending on December 31. Based on the preliminary unaudited results of these entities for the full financial year, OHI expects the full year results of the group to be reasonable. It is hoped that improvements in the equities on the MSM and regional markets during the last quarter of the parent company’s financial year, will enable the group to post improved results.
2011
OER TOP 20 RANK 2011-10
The OHI group stands for its power through partnership. And that power is generated primarily through the trust it generates in its relationships through the ability to be transparent and ethical in all its business dealings.
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COVERSTORY – OERTOP20
NATIONAL BANK OF OMAN
A ROLE IN DEVELOPMENT NBO continued to focus on protecting its existing asset values mainly in the real estate sector National Bank of Oman (NBO) works closely with its strategic alliance partner, the Commercial Bank of Qatar (CBQ), in many areas including cross-border business and the sharing of global best practice in terms of products, processes and systems.
“The bank is in the process of implementing its strategic plan with respect to financial performance, customer and products, process and service improvements as well as development of its employees”
In 2011, NBO focused its attention on identifying and adding to its business high quality assets and successfully financed projects of national importance which required large funding, while maintaining its focus on the infrastructure, oil and gas and contracting businesses, the driving forces of the Omani economy.
Salaam Al Shaksy
CEO, National Bank of Oman
11 200
Numbers at a glance Revenue (in mn)
Growth: 8.28%
In this regard, the bank is also closely associated with Duqm as the emerging industrial and port town, by making available a large financing package for the development of Duqm Frontier Town – billed as one of the top 100 projects in the Middle East. NBO is also actively pursuing opportunities in other large projects coming up in Duqm in the year 2012. In addition to pursuing and converting business opportunities in large public and private sectors, the bank continued to focus on the protection of its existing asset values especially in the real estate sector.
160 120
RO117.66
RO127.40
Milestones Fitch rating agency assigned a long-term issuer default rating of BBB+ to the bank The network increased in terms of both intensity and spread to 69 branches
80
The ATM and CCDM network grew to 178 machines 40 0
2010
2011
50 3URÀW (in mn)
Growth: 25.88%
40 RO34.202
30
10
2010 2010-11
50
May 2012
Mobile banking, the mobile branch, top-ups and bill payments were all launched successfully The bank’s wealth management proposition, ‘Sadara,’ is the only private banking product in Oman to obtain an ISO certification
Outlook NBO looks at 2012 with optimism as continued government spending is expected to maintain the growth momentum. The wholesale and investment banking franchise will continue to support domestic project financing and related activity, whilst the provision of mortgages, the cards business and low cost deposit activities will remain the key focus for retail banking.
RO27.171
20
0
As a first in Oman, the call centre launched 24 hours availability to customers
2011
OER TOP 20 RANK 2011-11
Participation in major domestic transactions and cross border activity in conjunction with its strategic alliance partner, Commercial Bank of Qatar, continues to be key to driving efficiencies by sharing best practices.
BANKDHOFAR
CAPITALISING ON CAPABILITY The bank has focussed on profitable growth by improving service and quality of operations Over the years, BankDhofar has participated in almost all the major infrastructural projects such as Oman India Fertiliser Company, Sohar Aluminum, Oman LNG, Oman Gas, Salalah Port, Oman Refinery (expansion), Octal Petrochemicals and six power and water projects. Now the bank has graduated to the level of a lead arranger from modest beginnings and has in place the technical capability to independently arrange funds for medium-sized ventures with local, regional and international banks. With its five year strategy plan coming to an end in 2012, BankDhofar has partnered with Boston Consultancy group (BCG), a leading management consultancy firm, to develop its strategy for the future. The plan will cover major business units including retail banking and wholesale banking. It will focus on profitable growth while improving service, quality and overall operations of the bank. The credit off take in 2011 for the banking sector in general was moderate at best and the Wholesale Banking Group (WBG) of BankDhofar which caters to the needs of the corporate clientele performed reasonably well.
“Bank Dhofar is preparing for further business growth and sustainability by virtue of implementing of its strategic five-year plan for 2013-2018 which will give it a fresh perspective”
Anthony Mahoney CEO, BankDhofar
12 150
Revenue (in mn)
Milestones New services were added such as third party transfers in ATMs and the opportunity to donate to charities using CDMs
120
Twenty-six ATMs and six CDMs were added increasing the count to 157 machines
90
Three new branches, Taqa, Mirbat and Bausher, were opened
60
In 2011 three products Bancassurance (Tamini), Al Heson new scheme and High Yield Interest Bearing deposit and two services Priority Banking (Al Riadah) and Ladies Banking (Hawa) were launched
30
Outlook The prognosis for 2012 is one of cautious optimism despite the continuing global problems. This is on account of the government’s bold initiatives to forge ahead with the strengthening of the infrastructural framework of the country and the likely scenario of sustained higher prices of crude oil. With a view to capitalise on the opportunities arising out of the rapid development of Sohar as an industrial hub, efforts are on to open a corporate branch there. There are also plans to start corporate desks at high volume centres in Muscat such as Azaiba and Rusayl. An exclusive call centre service for corporate customers is also on the anvil. The bank is planning to introduce banking kiosks to enhance customer service.
Numbers at a glance
0
RO96.71
2010
Growth: 5.61% RO102.13
2011
40 3URÀW (in mn)
RO33.280
Growth: (58.00%)
30
20 RO13.976
10
0
2010 2010-12
2011
OER TOP 20 RANK 2011-12
COVERSTORY – OERTOP20
AREEJ VEGETABLE OILS & DERIVATIVES
CONTAINING VOLATILITY Despite an extremely competitive market environment Areej Vegetables showed growth Areej Vegetable Oils & Derivatives recorded a record sales turnover of RO96mn in 2011 despite witnessing changes in its operating environment and a price regulation introduced in Oman through the newly formed Public Authority for Consumer Protection.
“The company operates in an industry characterised by high raw material content therefore we take steps to actively monitor and manage these price fluctuations and the sales prices”
Prem Maker
Executive Director Areej Vegetable Oils & Derivatives
13 150
Numbers at a glance Revenue (in mn)
Growth: 46.02%
120 RO96.03
90 60
2010
2011
3URÀW (in mn)
Growth: (17.13%)
RO1.812 RO1.502
1
0
2010 2010-13
52
May 2012
Milestones The company has 59 per cent Omani staff covering all areas of sales, production, engineering, quality control, accounting and administration
The company commissioned its plant to extend its product range to include mayonnaise and has successfully tested the marketing of its mayonnaise products Expansion in capacity and the product range allow the company to improve its coverage of current and new market segments and market niches
3
2
The company operates primarily in the Middle East market and its products cater to the cooking oil and fats segment and as such its products as an essential food item are also subject to the price regulation in Oman and some export markets.
Holds the ISO 9001 certificate for quality management, ISO 14001 certificate for environment management and the ISO 22000 certificate for food safety management
RO65.76
30 0
The social unrest witnessed in the first quarter of 2011 and subsequent events led to an increase in labour costs. Moreover, international vegetable oils prices continued to be very volatile in 2011 but the company managed the environmental factors and the price fluctuations in the international vegetable oil market very well to improve sales and to earn a net profit after tax of RO1.5mn. The company continued its programme of training Omanis at all levels including factory, staff and management and also sponsored some of them for professional courses.
2011
OER TOP 20 RANK 2011-13
Outlook As an essential item of food, the overall market for vegetable oils and fats is stable, and not very dependent on macro-economic factors. Hence sales volumes growth over the years remain relatively stable and modest. There are nine other manufacturers in the GCC with duty-free access into Oman and a tenth competitor is scheduled to commence operations soon. The policy of free trade in the region has enabled companies to expand their markets, and intense competition ensures that margins remain under pressure and consumer prices are kept down. The international prices of vegetable oils are volatile, and the company’s ability to pass on cost changes to its customers can significantly impact profitability.
COVERSTORY – OERTOP20
AL JAZEERA STEEL PRODUCTS COMPANY
STEELY OPTIMISM Al Jazeera Steel has developed the knack of exploring untapped areas of opportunity For Al Jazeera Steel Products Co, the overall demand in 2011 was quite impressive compared to that of 2010 as it recorded an excellent performance by achieving a 59 per cent increase in profits compared to last year. This was supported by the management’s cost optimisation initiatives and effective overhead management. Diversification of raw material suppliers has helped the company reduce concentration risk and control inventory holdings. This positively impacted borrowings and significant savings on interest and financing cost were achieved.
“Having established itself as a quality manufacturer, the company is planning to leverage its performance in overseas markets to its advantage, by adding more value added products and strengthening its distribution network for marketing new range of products”
Dr Bhaskar Dutta
CEO, Al Jazeera Steel Products Company
14 150 125
Numbers at a glance Revenue (in mn)
100 75
RO91.20 RO64.91
2010
2011
3URÀW (in mn)
Growth: 59.23%
4 RO3.031
3
2010 2010-15
May 2012
Even though the fourth quarter of 2011 was challenging as the commodity markets worldwide took a beating, there is reason for optimism. Despite global overcapacity, there is room for growth for steel manufacturers in the GCC due to the number of infrastructure projects coming up across the region. The company expects construction activities to accelerate further due to the increased government budget surpluses and spending on infrastructure. In addition, demand for steel products in Qatar is expected to significantly increase, with the large construction projects lined up for the 2022 World Cup. In the pipeline are projects like steel making for billet manufacturing and an additional slitting line to manufacture smaller angles and channels from hot roll material along with cut-to-length sheets and plates.
RO1.903
1
54
Tube Mill division currently has an operating and production capacity of 300,000 MT of pipes which includes 80,000 MT of galvanised products per annum
Outlook
5
0
Tube mill division marked another strong year, with sales volumes increasing 10 per cent over 2010
Has a 36 per cent Omanisation level
25
2
Milestones The MBM saw a total capacity utilisation of 33 per cent
Growth: 40.49%
50
0
One of the main factors fuelling Jazeera Steel’s optimism is the performance of its merchant bar mill (MBM) unit, which managed to break even within two years of starting commercial production. Annual production at the MBM unit was ramped up by 66 per cent to over 100,000 metric tonnes in 2011 and the company is now targeting a production of more than 125,000 metric tonnes for 2012.
2011
OER TOP 20 RANK 2011-14
The firm is also looking to enhance its presence in markets like Saudi Arabia, North Africa, Asia, Australia and Eastern Europe for its tubular as well as MBM products, for which a start has been made in 2011.
RAYSUT CEMENT COMPANY
CONTINGENCY MEASURES The company made headway in terms of volume and profitability in line with growth of the region Developmental expenditure in Oman increased in 2011 giving boost to infrastructure industries. However the cement sector, a key component in infrastructure developments struggled due to the external environment in the region. Substantial overcapacity in the region than the current demand, due to 50 per cent of stalled construction activities in the UAE led to continued dumping of cement in Oman at substantially reduced prices. Oman experienced the highest ever decline in prices by about 19 per cent in the region.
“Rather than forcing prices down further to grab the market, the company has taken the considered long term view for maximising the gain and shareholders’ value instead of a short term enhancement in volume”
The disturbances in Yemen also impacted the export to that country though sale in other export markets had a positive impact on Raysut Cement Company.
CEO, Raysut Cement Company
Hence the performance of the company during the year has to be seen in the light of regional as well as global decline, sector imbalances in growth, and severe competition from suppliers in UAE. Given the above background, the company has done well during the year in seeking opportunities in newer pastures and turning out best possible out-turn.
Mohammed Al Dheeb
15
Milestones
150
Productions of cement and clinker increased by 49 per cent and 54 per cent respectively
125
Began commercial operation of its two shipping companies and terminal facilities in Sohar
100
Acquired 50 per cent ownership in Oman Portuguese Cement Products Co in Sohar Increased its grinding capacity by adding a new line Provided 3,638 man hours of training both within the company and externally against 2,600 man hours in the previous year
Revenue (in mn)
Growth: 28.99%
RO83.81
75
RO64.98
50 25 0
Has become a centre for many institutions of higher education and technical colleges to train their students with practical hands on experience
30
Constructing the extension of dialysis ward in the Sultan Qaboos Hospital in Salalah
25
Outlook
20
The recent announcements by several governments are expected to drive recovery in the construction industry with spending close to $3trn till 2020 in infrastructural developments. Excess capacity-led cement industry in 2011 is expected to experience a respite in the coming years starting with 2012. It is expected that there would be a significant growth in Saudi Arabia, UAE and Qatar’s cement demand profile and price.
Numbers at a glance
2010
3URÀW (in mn)
2011
Growth: (27.86%)
RO20.722 RO14.949
15 10 5 0
2010 2010-14
2011
OER TOP 20 RANK 2011-15
COVERSTORY – OERTOP20
SMN POWER HOLDING
ESSENTIALS OF LIFE SMN Power Holding plays a vital role in the Sultanate’s socio-economic development by delivering power and water to Oman’s residents “Our plants are operated and maintained under the terms of the O&M agreement with STOMO. The highest standards in terms of H&S and operational excellence are applied, to ensure availability and efficiency. Interest rates volatility and impact on the financing expenses are mitigated through adequate hedging policies, in line with the requirements defined by the lenders in the facility agreements”
Johan Van Kerrebroeck
CEO, SMN Power Holding Company
16 125
Numbers at a glance Revenue (in mn)
Growth: 4.08%
100 75
RO78.32
RO81.52
50 25 0
2010
2011
5 3URÀW (in mn) 4
Growth: 222.35% RO3.836
3 2 1 0
RO1.190
2010
2011
2010-NA OER TOP 20 RANK 2011-16
56
May 2012
SMN Power Holding (SMN) was incorporated on May 7, 2011. As a holding company for SMN Barka and Al-Rusail Power Companies, SMN and its affiliates cater to around 35 per cent of the total power capacity of the Oman Main Interconnected Systems (MIS) and 20 per cent of the water capacity for the main supply zone. The business model of both the project companies held by SMN Power Holding is based on a strong contractual framework, with solid and reliable partners. Back-to-back contracts significantly reduce the risks over a long-tern period. The supply of the output to the off-taker Oman Power and Water Procurement Company (OPWP), the gas supply from Ministry of Gas (MOG), the operation and maintenance of plants by the operator STOMO and the financing of the project, are all guaranteed over a long term period of 15 years.
Milestones On October 23, 2011 the company reached an important milestone by successfully listing 35 per cent of its issued share capital on the Muscat Securities Market (MSM). Following the listing of the company a cash dividend of 193 baiza’s per share was paid to shareholders Operating revenues in 2011 increased by 4.1 per cent to RO81.52mn. This increase resulted from higher volumes produced, with a total production of 6,385 GWh (+758 GWh) and potable water production of 39,972, 744 meter cube (m3) With a significant decrease in the financing charges resulting from the reimbursement by the holding of the Equity Bridge Loan in September 2012 (substituted by a free-interest rate subordinated loan granted by the original founders) and the decrease in the average indebtedness of the project companies, the profit before taxes increased to RO5.27mn
Outlook Despite global uncertainties, SMN Power remains confident about its prospects in 2012, thanks to the robustness of the power sector in the Sultanate and the business model of the company which is based on back-to-back long term contracts. During a scheduled minor inspection of GT2 in February 2012 in Barka, damages to the stage four stator vanes and seals were observed. Short inspection performed on GT3 reveals similar indications and will be dealt with appropriately during the scheduled outage in Mach 2012. All measures have been taken to mitigate the financial impact in 2012.
COVERSTORY – OERTOP20
BANK SOHAR
MULTIPLE HIGH FIVES Bank Sohar consolidated its presence in the banking industry with a robust asset quality and an enhanced retail and wholesale banking business “The bank will continue with its vision of being a ‘One stop financial super mall having boutiques of products and services across various segments, each with a unique set of propositions’. Moreover, it will always be on the look-out for new business opportunities, and be alert to ensuing challenges, and thereby endeavour to address them in a timely manner”
Dr Mohammed Kalmoor
CEO, Bank Sohar
17 100
Numbers at a glance Revenue (in mn)
Growth: 9.85%
80 60
RO63.03
RO69.24
40 20 0
2010
2011
20 3URÀW (in mn) 16 12
Growth: 41.85% RO14.497
RO10.220
8 4 0
2010 2010-16
58
May 2012
2011
OER TOP 20 RANK 2011-17
Bank Sohar put up a good financial performance during 2011 with its energetic and sustained efforts. The bank built on the success of the previous year and focussed on all aspects of its business. These efforts were supplemented by a concerted drive to improve the overall quality of its assets, enhance yield growth, and reduce operating expenses. Affirming its confidence in Bank Sohar’s policies and growth strategy, leading international ratings agency Fitch assigned a Long Term Issuer Default Rating of BBB+ to the bank in 2011. The positive rating is a recognition of the strength of the bank’s commercial franchise and its growing market presence in the Sultanate. It also acknowledges the bank’s very low non-performing loan ratio and its good provisioning coverage ratio.
Milestones Bank Sohar registered a net profit of RO14.5mn for the financial year ended on December 2011, a growth of 42 per cent compared to 2010 despite a challenging economic and business environment aggravated by the credit crisis in Greece and the downgrade of the US by a leading rating agency. Bank Sohar is working on the introduction of an Islamic banking window. In pursuance of this goal, the bank is putting in place frameworks, systems and procedures to facilitate the roll-out of Shariah-compliant products and services. Bank Sohar added four new branches during the year, expanding the branch network to a total of 25 branches by the end of 2011. These additions in prime locations yielded fruitful results for the bank in terms of additional business and have lent convenience to customers. The bank also added seven ATMs, taking the total count to 44 ATM machines across the Sultanate.
Outlook Bank Sohar is committed to pursuing vigorous growth in 2012, not only in terms of its market size but also in the diversity of financial products and services available to its growing customer base. A key objective for this year is the introduction of Islamic banking. Competition in this emerging financial sector is expected to be fierce, given the widespread interest in Islamic Banking evinced by local commercial banks; but Bank Sohar is determined to be a key player in this business. Further, in line with its efforts to expand its network and the reach of its services, Bank Sohar plans to open new branches and broaden its ATM infrastructure during the course of 2012. This investment is central to the bank’s strategy of being close to its customers.
OMINVEST
BRAVING THE ODDS Undeterred by a challenging external environment, Ominvest posted good numbers for the financial year 2011 Oman International Development and Investment Company (Ominvest),has an enviable track record of 27 years of uninterrupted profits and dividends. Established with a paid-up share capital of RO8mn, the company’s paid-up share capital currently stands at RO25.3mn. It has distributed cash dividends of RO57.9mn over the last 26 years. Considering the market value of 253 million shares as at 31 December 2011, the company has achieved an internal rate of return of 16 per cent since inception. The company follows a policy of providing its shareholders with a consistent annual return on their capital, together with an opportunity to participate in long-term gains from sound local and international investments.
Milestones Ominvest’s project development subsidiary, Salalah Resorts, continued its progress towards the start of development of an integrated tourism complex in Salalah. With substantial predevelopment activities now nearing completion, the first phase of the project consisting of three upscale 5-star and 4-star hotels and light residential/commercial components is expected to commence during 2012, after the formal execution of a development agreement with the concerned ministry. Ominvest’s banking subsidiary, Oman Arab Bank, which constitutes 54 per cent of the parent company’s total assets, reported a profit of RO23.2mn for 2011, compared with RO 23.17mn in 2010. The banking subsidiary’s gross loans and advances portfolio grew to RO857mn from RO682mn as at 31 December, 2010. Customer deposits too recorded an increase of 18 per cent to RO910mn.
“The company’s stated objectives are to provide its shareholders with a consistent annual return on their capital, together with an opportunity to participate in the long-term gains from its sound investments in and outside the Sultanate. Our objective is to enhance shareholder value by generating above market returns on their share capital with sustainable long term growth.”
Shariq Azhar CEO, Ominvest
18 100
Revenue (in mn)
60
RO62.29
RO62.18
2010
2011
60 20
30
Outlook
25
The global economy in general is expected to continue to experience slow growth in 2012. Recent data released by the International Monetary Fund (IMF) indicates the likelihood that global output will expand by only 3.2 per cent in 2012 as compared to 3.8 per cent in 2011 and 5.2 per cent in 2010. Ominvest believes that the outlook for the Sultanate in 2012 is stable.
Growth: (0.18%)
80
The group recorded a consolidated profit of RO19.99mn for 2011 versus RO23.31mn in 2010 while the Parent company recorded a profit of RO 5.02mn for 2011 as compared with RO 7.07mn in 2010. Ominvest will continue to pursue its business strategy to identify and invest in quality assets with an objective of generating increased sustainable earnings over the medium and long term. In this direction, it has made certain investment commitments during 2011 and expects to build on these during 2012, both domestically and globally.
Numbers at a glance
0
3URÀW (in mn)
Growth: (14.24%)
RO23.314 RO19.993
20 15 10 5 0
2010 2010-18
2011
OER TOP 20 RANK 2011-18
COVERSTORY – OERTOP20
AL HASSAN ENGINEERING COMPANY
GOOD CORPORATE CITIZEN Al Hassan Engineering Company exhibited its social conscience by supporting numerous activities benefiting society at large and promoting national talent
“Our results reflect a robust business strategy, operational model and the company’s ability to perform well under extremely challenging economic conditions. We are proud of our reputation, which continues to grow, for the delivery of high quality project solutions on time and safely with no harm to people and the environment”
Peter Hall
CEO, Al Hassan Engineering Company
19 100
Numbers at a glance Revenue (in mn)
Growth: 0.96%
80 60
RO60.10
RO60.68
40
In 2011, AHEC successfully commissioned the Nimr-C Full Field Water Injection project which was well appreciated by PDO. The project was adjudged among the top five projects by a leading UAE based publication, Construction Week. The company is currently engaged in the ongoing execution of a number of prestigious projects which are at various stages of completion; they include:
2. PDO’s 260 MW Amal Power Station project on an EPC basis
2010
2011
5
3. CMEI Construction Package for PDO Kawther Gas Depletion Compression facility from the main international EPC contractor, Petrofac
4
4. A construction package for PDO Saih Nihayda Depletion Compression project from EPC contractor GS E&C
3
5. Civil & Building Works for Barka-3 Independent Power Project from GS E&C the EPC contractor
3URÀW (in mn)
RO2.670
Growth: (7.85%)
RO2.461
2 1 0
2010 2010-19
60
Milestones
1. Major civil construction works for the A’Seeb Waste Water – STP project for Haya Water from the main EPC contractor, Hyundai-Rotem, Korea
20 0
Al Hassan Engineering Company (AHEC) recognises human resources as the main pillar supporting and enhancing the performance of the company. As a result, AHEC remains fully committed to training and sustaining the development of this vital asset. Various initiatives like a Balance Score Card and European Foundation for Quality Management (EFQM) have been taken to ensure that its highly qualified, experienced and motivated workforce of over 4,500 people are ready and able to cater not only to current requirements but also of its future prospects. The company’s commitment towards Omanisation across all levels of the business is reflected in its commitment to work closely with the Ministry of Manpower and OPAL from whom it holds both the necessary green card and compliance verification certificate respectively.
May 2012
2011
OER TOP 20 RANK 2011-19
Outlook The company is starting 2012 on a strong footing with an order book of RO70mn. As the government has planned investments in all of AHEC’s targeted markets like oil, gas and petrochemicals, water and waste water, power generation, transmission and distribution and infrastructure including ports, airports, hospitals and hospitality facilities AHEC is confident about secure additional business in the year ahead.
COVERSTORY – OERTOP20
OMAN REFRESHMENT COMPANY
CHANGE THE GAME Oman Refreshment Company has constantly invested in business systems and assets with the objective of delighting all its stakeholders “We have a well-defined market strategy, working in coordination with the franchisor ‘PepsiCo International’, aimed at diversifying its revenue base by re-inventing its core products and expanding its product portfolio to cater to diverse customer preferences and tastes”
Oman Refreshment Company (ORC) is engaged in the business of filling and distributing soft drinks, water, juices and trading in consumer packaged goods. It holds the franchise rights to fill and distribute PepsiCo range of soft drinks and Aquafina water as well as trading in non-carbonated beverages and Frito Lays range of snacks throughout the Sultanate. It also produces and distributes juices under its own brand ‘Top Fruit’.
Youssef Ezzikhe
General Manager, Oman Refreshment Co
20 100
Numbers at a glance Revenue (in mn)
The company has a purpose-fit production and bottling plant as well as central warehousing facilities in Al Ghubrah, Muscat and 10 depots situated at Al Wafi, Ibri, Nizwa, Saham, Salalah, Bukha, Buraimi, Musannah, Liwa and Mudhaibi that cater to customers across the country.
Growth: 24.20%
80
Milestones
60
The company achieved a net profit of RO7.04mn on a turnover of RO56.03mn during the year 2011 against a net profit of RO3.35mn on a turnover of RO45.11mn in 2010, registering a growth of 5.13 per cent in the net profit and 24 per cent in turnover
RO56.04 RO45.12
40
ORC maintained an ISO 22000:2005 quality certification for Food Safety Management Systems (FSMS)
20 0
2010
2011
10 3URÀW (in mn) 8
Growth: 109.81% RO7.045
4
2010
2011
2010-NA OER TOP 20 RANK 2011-20
May 2012
ORC invests regularly on the upkeep of current production lines, distribution capabilities and marketing equipment. In 2011 it registered a 100 per cent subsidiary ‘Al Rawdah Integrated Trade and Investment Enterprises’, in order to explore new business growth opportunities
Outlook
RO3.358
2 0
The company has embarked on an expansion of its warehousing capacity at various business locations to improve operational and marketing efficiencies
It has taken certain ‘green initiatives’ to efficiently manage the ‘waste’ generated during its production/bottling process
6
62
ORC was established in 1975 as a joint stock company initially with small production and bottling facilities which were expanded later in 1995, 1996, 1999, 2007 and 2009 as part of the business growth strategies. It currently has the facility to produce 16.3 million cases of carbonated soft drinks (CSD), 1.1 million cases of Aquafina water and 1.4 million cases of Top Fruit juices per annum.
ORC plans to expand and diversify its products to appeal to consumer needs. The company’s growth plans will be driven by the success of its efforts in capitalising on the growth and diversity of the market demand with quality delivery of its product portfolio while simultaneously focussing on efficiency improvement and cost optimisation.
COVERSTORY – OERTOP20
NUMBER PLAY
Profit as a % of Revenue Rank
Company
In %
1
Ominvest
32.15
2
BankMuscat
31.75
3
National Bank of Oman
26.85
4
Oman Telecommunications Company
24.93
5
Omani Qatari Telecommunications Company
24.13
6
Bank Sohar
20.94 17.84
7
Raysut Cement Company
8
BankDhofar
13.68
9
Oman Refreshment Company
12.57
10
Oman Holdings International Company
7.71
11
SMN Power Holding
4.71
value creators and the
12
Al Hassan Engineering Company
4.06
return warriors
13
Shell Oman Marketing Company
3.51
14
Al Jazeera Steel Products Co
3.32
15
Al Maha Petroleum Products Marketing Co.
3.19
16
Oman Oil Marketing Company
2.91
17
Oman Cables Industry
2.66
18
Galfar Engineering and Contracting
1.71
19
Areej Vegetable Oils & Derivatives
1.56
20
Renaissance Services
0.79
A sliced and diced look of the OER Top 20 highlights individual strengths,
Asset Size
EPS Growth Rank
Company
In %
Rank
Company
In RO Mn
Bank Muscat
7,228.001 2,229.072
1
SMN Power Holding
216.67
1
2
Oman Refreshment Company
110.45
2
National Bank of Oman
3
Al Jazeera Steel Products Co
60.00
3
Bank Dhofar
1,960.591
Bank Sohar
1,431.977 1,145.703
4
Bank Sohar
41.88
4
5
National Bank of Oman
28.00
5
Ominvest
6
Al Maha Petroleum Products Marketing Co.
27.84
6
Oman Telecommunications Company
709.580
Renaissance Services
653.697 403.346
7
Oman Oil Marketing Company
18.87
7
8
BankMuscat
15.15
8
Galfar Engineering and Contracting
9
Oman Telecommunications Company
0.00
9
SMN Power Holding
341.482
Omani Qatari Telecommunications Company
299.397
10
Omani Qatari Telecommunications Company
(5.19)
10
11
Oman Holdings International Company
(6.85)
11
Raysut Cement Company
189.074
(8.33)
12
Oman Cables Industry
139.473
Oman Holdings International Company
132.973
12
Al Hassan Engineering Company
13
Shell Oman Marketing Company
(10.00)
13
14
Galfar Engineering and Contracting
(11.11)
14
Oman Oil Marketing Company
(15.38)
15
Al Jazeera Steel Products Co
74.821
Shell Oman Marketing Company
67.231
15
Oman Cables Industry
76.579
16
Areej Vegetable Oils & Derivatives
(17.26)
16
17
Raysut Cement Company
(27.88)
17
Al Maha Petroleum Products Marketing Co.
64.907
(34.62)
18
Al Hassan Engineering Company
56.453
(58.33)
19
Areej Vegetable Oils & Derivatives
37.835
(103.88)
20
Oman Refreshment Company
26.051
18
Ominvest
19
BankDhofar
20
Renaissance Services
64
May 2012
Profit as a % of Equity Rank
Profits 2011
Company
In %
Rank
1
Shell Oman Marketing Company
42.10
1
BankMuscat
117.546
2
Oman Refreshment Company
39.98
2
Oman Telecommunications Company
112.853
3
Omani Qatari Telecommunications Company
28.36
3
Omani Qatari Telecommunications Company
Company
In RO Mn
47.512
4
Oman Oil Marketing Company
23.73
4
National Bank of Oman
34.202
5
Al Maha Petroleum Products Marketing Co.
23.49
5
Ominvest
19.993
6
Oman Telecommunications Company
22.86
6
Raysut Cement Company
14.949
7
Ominvest
20.35
7
Bank Sohar
14.497
8
Oman Holdings International Company
20.35
8
BankDhofar
13.976
9
Areej Vegetable Oils & Derivatives
16.61
9
Shell Oman Marketing Company
12.602
10
Al Hassan Engineering Company
14.99
10
Oman Holdings International Company
11
Raysut Cement Company
14.60
11
Al Maha Petroleum Products Marketing Co.
8.559
12
Oman Cables Industry
14.55
12
Oman Oil Marketing Company
8.099
13
BankMuscat
13.51
13
Oman Cables Industry
7.235
14
National Bank of Oman
12.16
14
Oman Refreshment Company
7.045
15
Bank Sohar
11.27
15
Galfar Engineering and Contracting
5.264
16
SMN Power Holding
10.55
16
SMN Power Holding
3.836
17
Al Jazeera Steel Products Co
9.12
17
Al Jazeera Steel Products Co
3.031
18
BankDhofar
6.10
18
Al Hassan Engineering Company
2.461
19
Galfar Engineering and Contracting
6.05
19
Renaissance Services
2.291
20
Renaissance Services
1.38
20
Areej Vegetable Oils & Derivatives
1.502
9.940
Shareholders Equity
Share Price Growth Company
In %
Rank
Company
In RO Mn
1
Oman Refreshment Company
71.88
1
BankMuscat
870.348
2
Oman Oil Marketing Company
40.74
2
Oman Telecommunications Company
493.589
3
Al Maha Petroleum Products Marketing Co.
34.33
3
National Bank of Oman
281.227
4
Shell Oman Marketing Company
6.50
4
BankDhofar
229.237
5
Oman Telecommunications Company
2.35
5
Omani Qatari Telecommunications Company
167.519
6
Areej Vegetable Oils & Derivatives
0.00
6
Renaissance Services
166.494
7
Ominvest
(6.70)
7
Bank Sohar
128.686
8
National Bank of Oman
(9.60)
8
Raysut Cement Company
102.408
9
Oman Holdings International Company
(10.04)
9
Ominvest
98.266
10
Al Jazeera Steel Products Co
(14.86)
10
Galfar Engineering and Contracting
86.945
11
Omani Qatari Telecommunications Company
(18.24)
11
Oman Cables Industry
49.707
12
Bank Sohar
(20.20)
12
Oman Holdings International Company
48.855
13
BankMuscat
(20.37)
13
Al Maha Petroleum Products Marketing Co.
36.429
14
BankDhofar
(26.18)
14
SMN Power Holding
36.368
15
Oman Cables Industry
(37.02)
15
Oman Oil Marketing Company
34.132
16
Raysut Cement Company
(37.96)
16
Al Jazeera Steel Products Co
33.231
17
Galfar Engineering and Contracting
(39.82)
17
Shell Oman Marketing Company
29.933
18
Al Hassan Engineering Company
(48.16)
18
Oman Refreshment Company
17.622
19
Renaissance Services
(50.81)
19
Al Hassan Engineering Company
16.410
20
SMN Power Holding
20
Areej Vegetable Oils & Derivatives
9.042
Rank
N/A
COVERSTORY – OERTOP20
Dividend Yield 2011 Rank
Profit Growth
Company
In %
Rank
1
Areej Vegetable Oils & Derivatives
10.00
1
SMN Power Holding
222.35
2
Oman Telecommunications Company
7.64
2
Oman Refreshment Company
109.81
3
Raysut Cement Company
6.58
3
Al Jazeera Steel Products Co
59.23
4
Al Maha Petroleum Products Marketing Co.
6.30
4
Bank Sohar
41.85
5
Oman Holdings International Company
5.98
5
Al Maha Petroleum Products Marketing Co.
27.93
6
Al Jazeera Steel Products Co
5.95
6
National Bank of Oman
25.88
7
Al Hassan Engineering Company
5.93
7
Oman Oil Marketing Company
18.03
8
Omani Qatari Telecommunications Company
5.85
8
BankMuscat
15.70
9
National Bank of Oman
5.47
9
Oman Telecommunications Company
2.28 (0.97)
Company
In %
10
Oman Cables Industry
5.41
10
Oman Holdings International Company
11
Bank Sohar
5.06
11
Omani Qatari Telecommunications Company
(4.94)
12
Shell Oman Marketing Company
4.89
12
Al Hassan Engineering Company
(7.85)
13
Oman Refreshment Company
4.83
13
Shell Oman Marketing Company
14
SMN Power Holding
3.93
14
Oman Cables Industry
(10.40)
15
Oman Oil Marketing Company
3.63
15
Galfar Engineering and Contracting
(12.27)
16
Galfar Engineering and Contracting
3.56
16
Ominvest
(14.24)
17
BankMuscat
3.26
17
Areej Vegetable Oils & Derivatives
(17.13)
18
Ominvest
2.39
18
Raysut Cement Company
(27.86)
19
BankDhofar
1.28
19
BankDhofar
(58.00)
20
Renaissance Services
0.00
20
Renaissance Services
(92.90)
Profit as a % of Assets
Market Capitalisation as on March 31, 2012 Rank
(9.93)
In RO Mn
Rank
Company
In %
970
1
Oman Refreshment Company
27.04
BankMuscat
952
2
Shell Oman Marketing Company
18.74
BankDhofar
403
3
Oman Telecommunications Company
15.90
Omani Qatari Telecommunications Company
390
4
Omani Qatari Telecommunications Company
15.87
Company
1
Oman Telecommunications Company
2 3 4 5
National Bank of Oman
316
5
Al Maha Petroleum Products Marketing Co.
13.19
6
Shell Oman Marketing Company
225
6
Oman Oil Marketing Company
10.58
7
Raysut Cement Company
186
7
Raysut Cement Company
7.91
8
Renaissance Services
160
8
Oman Holdings International Company
7.48
9
Bank Sohar
147
9
Oman Cables Industry
5.19
125
10
Al Hassan Engineering Company
4.36
10
Galfar Engineering and Contracting
11
Oman Oil Marketing Company
108
11
Al Jazeera Steel Products Co
4.05
12
Ominvest
104
12
Areej Vegetable Oils & Derivatives
3.97
13
Al Maha Petroleum Products Marketing Co.
103
13
Ominvest
1.75 1.63
14
SMN Power Holding
77
14
BankMuscat
15
Oman Refreshment Company
75
15
National Bank of Oman
1.53
Galfar Engineering and Contracting
1.31
16
Oman Cables Industry
68
16
17
Al Jazeera Steel Products Co
32
17
SMN Power Holding
1.12
18
Oman Holdings International Company
25
18
Bank Sohar
1.01
19
Al Hassan Engineering Company
19
19
BankDhofar
0.71
20
Areej Vegetable Oils & Derivatives
12
20
Renaissance Services
0.35
66
May 2012
EXCLUSIVE DEALER IN OMAN
SHOWROOM LOCATION: AL WADI AL KABIR (BETWEEN MAZDA PARTS AND SERVICE)
INTERVIEW Dr Amer Awadh Al Rawas, CEO, Oman Telecommunications Company underscores the reasons for the company’s enduring success on the OER Top 20 charts in a candid chat with Mayank Singh and Visvas Paul D Karra
Agility is the key Omantel has been ranked as the No. 1 company on the OER Top 20 list since it listed on the MSM in 2005. What has enabled the company to consistently hold its ground? We have been able to transform and improve our competitive readiness. We have taken a number of initiatives in this direction – one, we have improved our internal efficiency by merging the two companies (Omantel and Omanmobile) under one operating model and finally into one company. Second, we have transformed ourselves into a customer oriented company, offering products and services according to their needs, desires and aspirations and delivering those with an improved customer experience. The third dimension is improving our infrastructure to increase the quality and reliability of our service. Omantel has achieved an average of nine per cent annual growth since competition started. Being the biggest may not necessarily be synonymous with the best. How do you ensure that size does not become a deterrent to efficiency? If you look world over a lot of big
68
May 2012
companies have lost ground to newer companies. Size is not enough to survive, survival is all about agility. Agility is the ability of an organisation to transform itself when the environment around it changes. Companies which are not able to move from an incumbent status lose ground. The transformation that Omantel has undergone since 2009 underscores our ability to transform ourselves and compete in the market. All our business domains are open to competition, but despite this we are holding ground and doing well in the market. Internal efficiency in the telecom sector is judged by EBITDA, which is the money that you make from your revenue. Omantel’s EBITDA of 53 per cent (2011 figures) is the highest in the region amongst telecom players. This is commendable as our operations are diverse due to our size in the market. In the fixed line service for example, we have 222 fixed line exchanges and somebody has to manage them and this requires a larger staff strength. Omantel has three times the staff compared to our nearest competitor.
We also have a larger asset base with commensurate depreciation, but it is good for our shareholders. Can you cite a few measures taken by Omantel that reflect its nimble footedness? Muscat has been designed according to an urban plan that dates back to around 40 years. As the city landscape has changed, it has become increasingly costly and difficult to provide services according to our previous plans. Imagine the cost of digging up trenches, laying cables and providing the last mile services in a changed landscape. Instead we brought in an innovative solution that acts as a neighborhood exchange. For example, switches were built according to an older urban plan, so accordingly the switch at Madinat as Sultan Qaboos (MQ) served Al Khuwair as well. As Al Khuwair expanded, the switch at the Al Khuwair roundabout had to serve Al Khuwair 33 and the Bausher area. As the landscape changed, we could have expressed our helplessness, but instead we installed new switches and have grown our
broadband service too. Omantel used to charge customers with deposits, security etc, but all those charges have now been wiped away. We moved into unlimited offers, such offers require one to adjust various systems so that one can handle the increase in traffic. We were able to open up to the idea of MVNOs and resellers, adapt and use them in a positive way to complement our work in the market. Omantel is offering all-time low rates for its services – one can avail of a 1GB monthly Hayyak broadband connection for RO5, off-peak rates for international calls to India have dropped to RO0.065 per minute. What has enabled you to drop rates so drastically, does it also mean that the company was overcharging its customers earlier? This is linked to what I said earlier; you need to build your capacity to render a service, and before you are able to give it at a lower price or as an unlimited offer. It all comes down to infrastructure and once you reach a certain scale then you can offer unmatched innovative offers and prices. As a company we need to strike a balance because if we invest too much in infrastructure then the depreciation will be too high and the company will not be in a position to give shareholders the return on investments that they expect. So there has to be a tight balance between these competing objectives of pleasing customers, building infrastructure and offering shareholder value. What is Omantel’s broadband penetration rate and what kind of a percentage growth do you expect this year? We have grown our fixed broadband (ADSL), not just in terms of the number of subscribers but also in the type of subscribers that we are getting. Earlier people struggled to get half MB for RO12, but now every subscriber gets two MB. We have customers who have taken upto 40 MB, but for most people we can offer upto 24 MB, if they do not have fibre. Not only have the number of subscribers grown but so has the level of service and that is helping our revenues to grow. The number of
Omantel – At a glance* EBITDA: 53 per cent Subscriber base: 276,000 Fixed line exchanges: 222 WorldCall profits: $3.4mn *Figures are for December 31, 2011
subscribers for our mobile broadband service too has grown tremendously, although we are very conservative in calculating our subscriber base. We calculate our subscriber base by measuring whether a customer has been using his line for “certain period” at least for one month. So if customers have not been using their mobile phones, then we take them off our records and such prudence has worked in our favour. Our mobile broadband subscriber base stood at 276 K as of December 31, 2011.
will continue to focus and build our infrastructure for three reasons – one, we want to partner and contribute to economic growth by building telecom infrastructure in newly developed economic zones; second, to enable the business of our corporate customers to grow and finally, better coverage to satisfy our consumers and as a contribution to the community. Being a partially owned government company, does Omantel have to live up to a larger social obligation and is this a burden from a business point of view? We are fulfilling our social obligations by continuously covering places that are not necessarily profitable. We do this for two reasons, to satisfy and please our customers and to fulfill our corporate social responsibility and we will continue to do this as a contribution to the national economy.
Oman’s telecom market has a mobile penetration of almost 170 per cent, given such a scenario where is Omantel’s future growth going to come from? Is there also a fear that your average revenue per user (ARPUs) may come down drastically from here onwards? We have been in a position to sustain our ARPUs for a long time now. Worldwide, ARPUs have been declining for telecom companies as rates are going down and we cannot fight this trend. However, we can counter this by allowing and encouraging customers to use more devices. So we can increase revenues either through enhanced machine-to-machine communication, usage of additional devices and services like broadband.
After WorldCall’s acquisition in 2008 Omantel has not made any forays in the international market. Is this a sign that you are going to be focused on Oman in the near future? The GCC region has not witnessed a significant number of mergers and acquisitions in the last three years as there have been a few compelling opportunities. The Greenfield opportunities that came up were not appropriate for our size. We are constantly on the lookout for M&A opportunities that are in conformity with our size and offer a reasonable return on investment. We have a set of criteria to filter proposals, but until now we have not found any good opportunity. We are happy with WorldCall’s last year performance as it ended 2011 with a profit of $3.4mn.
A lot of people say that mobile service pricing is still higher in Oman compared to other markets like India? It is unjustified to compare Oman to India because of the difference in the scales of the two countries. In the Arab world, our rates are one of the best and this has been proved by reports from independent bodies like Arab Advisors Group and Arab Regulators Network. Though the size of the market is a challenge we
What is the company’s growth strategy for 2012 and are there any specific areas of operations that you are targeting? Enhancing our broadband service is a specific growth area that we are targeting. So we will upscale our broadband infrastructure. In addition, we are looking at building corporate solutions and increasing our international capacity, connectivity and service.
REALTY
By Siraj Bhavnagarwalla
Optimistic outlook for Oman’s Construction sector Prospects are bright for the Omani residential as well as commercial office construction market on the back of increasing population and rising employment levels
I
n their quest to move away from predominantly oil-based economies, the GCC nations initiated several big projects, with construction being one of their top-most priorities in the last decade. The GCC construction sector saw a period of spectacular boom and was subsequently adversely affected by the global economic meltdown. Although the sector is showing signs of recovery, investors are still taking a cautious approach. However, the growth of the sector is supported by sound economic fundamentals and healthy growth forecasts of the GCC countries. With oil prices expected to be stable, any further increases in government spending will support investment and consumer spending, thereby having a positive effect on GDP growth, which will bode well for the overall economy in general and construction sector in particular.
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Outlook Although the construction and real estate sector has started recovering from the lows of 2008-2009, growth is still far from pre-crisis levels. The growth is also not uniform across all regions within the GCC and while some countries are leading the recovery; others continue to take a more careful approach. Prospects in the Qatari construction market are looking optimistic on the back of strong GDP growth and the successful bid for the 2022 FIFA World Cup. In Bahrain and Saudi Arabia, the focus of the residential construction sector has shifted to providing affordable homes to the low and middle income group of population. UAE’s reputation as a safe and stable country amid the recent ‘Arab Spring’ is likely to have a positive impact on the construction sector despite the current oversupply and cautious approach to new investments. GCC region continues to enjoy premium on rental yields as compared to the mature markets of the US and Europe, which will keep the overseas investors’ interest intact in the sector. Due to low number of transactions taking place in the marketplace, the determination of the price ranges is a challenging task, thereby making this a buyer’s market. We foresee continuation of this phase in near to mid-term.
Residential construction market Oman’s construction and real estate market did not witness the same boom as exhibited by other GCC member
countries mainly due to government regulations (non-GCC nationals were not allowed to acquire freehold interest in land till 2006). However, post 2006, when the government introduced a change in law, allowing foreign nationals’ ownership rights in land located in designated Integrated Tourist Complexes (ITCs), the residential construction and real estate market received a big boost. Since the construction and real estate sector was not as big as compared to other GCC member countries, the global recession in 2008 did not have as severe an impact on Oman as it did on some of its counterparts in the GCC region. With an oversupply of residential units, Oman’s residential construction and real estate market underwent a correction and average lease rates in Muscat dropped by nearly 13 per cent between 2009 and 20101. In the last few quarters, the lease rentals have shown some signs of stabilisation. An improving private sector is the primary driver for the recent growth in Oman’s economy. The number of employees in the private sector has grown by 20.7 per cent from 2008 to 2010 leading to a surge in demand for properties2. The residential prices which fell significantly from their peak in 2008 showed signs of stabilisation in 2011. We expect this trend to continue in future (particularly in Muscat) on the back of a recovering economy.
REALTY
We expect demand for residential properties to be strong in the well developed localities of Qurum, Shatti Al Qurum, Madinat Qaboos, The Wave and Muscat Hills. Over the long-term, we have an optimistic outlook on residential construction markets on the back of increasing population and rising employment levels.
Commercial construction market Oman is currently facing a steep fall in property prices due to oversupply and muted demand. The post-crisis period has been marked by declining office prices, rentals, and high vacancy rates due to oversupply of commercial properties. Currently, the office vacancy rates in Oman stands at around 25 per cent. In Muscat, stock of modern commercial office space has increased drastically over the last few years on the back of economic and demographic growth, government diversification and privatisation initiatives. However, Grade A buildings which meet the requirements of multi-national companies still remain in short-supply. This situation might change in the next one year with the completion of several office buildings like Al Rawaq Building in Qurum and Tilal Complex in Al Khuwair. Prime office rentals in Muscat fell by around 33 per cent between Q3 2010 and Q2 20113. Rental yield from property in Muscat stood at around 5.5 per cent gross return to value. However, based on original purchase price off plan, the properties rental yields stood at around 10 per cent per annum4. CB Richard Ellis 2 Cluttons Q3 2011 report 3 Jones Lang LaSalle 4 Savills Oman Associate (Muscat Property Insight H1 2011) (Bifurcation of property rental yield between residential and commercial is not provided, hence it has been assumed to be same for both) 1
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The commercial office properties market will continue to be marked by oversupply in the short to mediumterm as new supply enters the market. However, though the overall commercial office properties market will remain oversupplied, quality new office space in smaller modular units will be in undersupply. Prices as well as rentals will continue their downward spiral in the near-term. Due to lack of suitable office space around Muscat, many companies are looking at the option of constructing purpose-built offices, which may result in further downward pressure on occupancy levels and rentals in Muscat. Over the long-term, we have an optimistic outlook for commercial office construction markets on the back of increasing population and rising employment levels.
Free Zones in Oman Oman too has put emphasis on development of free zones which is expected to act as a catalyst for economic development, investment and providing employment to Omani nationals. Currently, there are two new free zones under development, namely Al Duqm Free Trade Zone and Sohar Free Trade Zone. The Duqm Free Trade Zone and Industrial Area is proposed to be housed on a 24,000-hectare plot near Duqm port. The Sohar free zone is being built on an area of 4,500 hectare and had begun its first phase development in 2010. We expect the completion of these Free Zones to boost demand for commercial office space in Oman.
Key Growth Drivers Continued growth in global oil demand and an increasing long-term trend in oil prices have given a boost to GCC’s economy. With oil prices expected to be stable, any further increases in government spending will support
investment and consumer spending, thereby having a positive effect on GDP growth. Positive GDP growth forecast for the GCC region is expected to be translated into an increase in construction activities. Increasing urbanisation and young & growing population base is likely to drive the construction sector across the GCC region. The GCC is also home to a large expatriate population and in a bid to drive real estate growth and investment, the governments of several GCC countries have opened up the real estate sector to foreigners, allowing them to own/lease properties. This, combined with the increasing influx of expatriate population in the region mainly due to shortage of skills among local nationals, is likely to drive housing demand in the GCC’s member countries. Most of the GCC member countries have also been pro-active in changing their existing regulations in order to attract Foreign Direct Investment (FDI) and provide better living conditions to the expatriates giving a further boost to the construction sector. Oman will also benefit from a favourable attitude of the government towards improving transparency in the real estate sector. Manageable inflation levels in the GCC region coupled with low property prices (as compared to historical prices) are likely to act as demand drivers for residential as well as commercial construction markets. We have an optimistic outlook on the Omani residential as well as commercial office construction market on the back of healthy growth in population and increasing economic activity.
The author is a Senior Executive Officer at Alpen Capital LLC, Oman
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COMPANYPROFILE
Thriving on I CHALLENGES Within a short span of 18 years, Al Jassar Group has established itself as a fast growing multi divisional firm with strong presence in trading, manufacturing, real estate, contracting, health etc. VT Saileswaran, Managing Director, who has been in the vanguard of this journey, talks about the success, values and vision of his business. Muhammed Nafie reports
t all started with one man who stepped out of the comfort zone of a senior management position with a leading Kuwaitbased company to venture into an own enterprise in the Sultanate in 1994. Over the last 18 years, it has grown to a group of diversified companies establishing itself as a pioneer in providing multiple services to a wide range of industries in Oman, as diverse as trading, construction, manufacturing, infrastructure and telecommunication. In addition, it runs one of the leading private hospitals in the city and signed JVs with several international companies to manufacture and supply their products in the Middle East and North African (MENA) region. It was the vision and strong mindedpursuit of its managing director VT Saileswaran that enabled Al Jassar Group, which had a humble beginning as a trading company, to emerge as a multi divisional firm with 500 plus employees. Sailsweran started his career in early 80s with Danish giant Rockwool for which he worked at Copenhagen for two years looking after its Middle East marketing; he later joined the Kuwaiti major Al Gahnim Industry where he was the regional manager for Kimmco Insulation for 15 years. “When I started Al Jassar Trading it was virtually a one-man company. Later, we grew and branched out to different areas launching Al Jassar Telecom, Apollo Medical Centre, Muscat, Habitat International, Habitat Furnishing, Group VTS SBN, Malaysia, Baek Suk Engineering & Partners, Dura Line Middle East etc.
A leap forward Al Jassar Trading, the first venture of the group, has gained a good reputation since its inception for offering high-quality and highly reliable engineering, industrial and construction materials backed up by excellent sales support. It represents many well-reputed manufactures from across the globe in construction, water & waste water conveyance, roads etc.
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Al Jassar Telecom which was set up in 2008 has partnered with internationally renowned telecom and IT vendors and was able to provide the telecommunication solutions with advanced technologies like GPON-FTTH, Wimax, GIS, integrated security solutions, intelligence building solutions, LED lighting solutions, IP telephony solutions, geographical information system etc. “We are the first Omani company to do FTTH network projects for Haya Water, Omantel and Nawras. WE have connected 2000 plots as well as 200 houses,” says Saileswaran. Habitat International provides services in property management, real estate and housekeeping. It serves commercial buildings, serviced apartments, residential buildings, guest houses, shopping malls etc. undertaking administration, management, maintenance, security operations and space planning. Al Jassar Group has a well-equipped manufacturing unit and joinery division to produce a variety of furniture to cater to the needs in interior designing, furnishing and space planning. In addition, there are two state-of-the art- furniture showrooms in Watayah for readymade office furniture from Canadian leader Global Furniture and for sofas made by renowned German manufacture Hilker. Saileswaran also informed that he is looking forward to entering into a JV with Global Furniture to manufacture some of their products in Sohar for Middle East market.
Quality health care Apollo Medical Centre (AMC), Muscat was set up in 2005 in association with Apollo Hospitals Group, India, Asia’s largest and most trusted healthcare group, setting new benchmarks in providing the most advanced and stateof-the-art healthcare services in the Sultanate. Equipped with modern and state-of-the-art operation theatres and modern Intensive Care Unit (ICU), AMC is the only centre in Sultanate offering regular superspecialty consultation clinics by visiting doctors from Apollo
Hospitals Group –India in Spine, Orthopedics, Arthroscopy & Knee, Neurosurgery, Liver, Cardiology etc. “According to me, health care is not a big money making business,” says Saileshwaran. “It is rather a service for the nation. We require high-value equipment for everything and getting doctors is another difficulty as it entails a protracted recruitment process lasting up to six to eight months.” AMC renders speedy treatment to all critical illnesses in cardiology, general medicine, diabteology & endocrinology, ENT, general surgery, gynecology and obstetrics, orthopedics, ophthalmology, plastic & cosmetic surgery, dermatology, dentistry, neurology and neo-natology and paediatrics etc. “We have achieved another landmark with the launch of telemedicine facility, the first installation in the Sultanate, whereby people living in Oman can access the best of healthcare services from the world-renowned Apollo Hospital’s doctors in India,” adds Saileswaran.
Way to go The latest venture of Al Jassar Group is Dura-Line Middle East (DLME), a JV with Dura-Line India to produce cable ducts and high-density polyethylene (HDPE) pipes for water, wastewater, and natural gas pipelines and other industrial applications, in Sohar.
We have achieved another landmark with the launch of telemedicine facility, the first installation in the Sultanate, whereby people living in Oman can access the best of healthcare services from the world-renowned Apollo Hospital’s doctors in India
With an installed capacity of 6,000 tonnes a year, the plant combines the technological strength of Dura-Line and A-D Technologies with the local market service support of Al Jassar. The company has invested $7.8mn in setting up the plant. “The entire plant, covering a built-up area of 7,000 m2, was completed within 90 days. The plant and machinery and the quality systems are exactly identical to the Dura-Line India facilities,” avers Saileswaran. Dura-Line Middle East currently has two extrusion machines capable of producing in the size of 20mm to 250mm and the sizes beyond 250mm can be easily complemented from the Indian units to provide the full size range to the end users in the Middle East. “Our major customers in Oman are organisations that are engaged in building water, wastewater, natural gas pipelines and irrigation systems such as Haya Water and Public Authority for Electricity and Water,” Saileswaran added. On the advantages of setting up the project in Sohar, Saileswaran said that it was a strategic location for exporting the products to the Middle East and North Africa region. “We are aiming at exporting 60 per cent of the company’s products.” Baek Suk Engineering & Partners is another contracting arm of the group in cooperation with the Koreabased principal. Saileswaran says the company has currently got a subcontract from Hyundai Rotem which was awarded the contract of Al Khoud sewage networking project. Exuding confidence about the upbeat prospects of the company in the coming years, Saileswaran says, “My future outlook is to do the best to strengthen the business. Our vision is to be one of the most successful companies in the region and the mission is to give quality service to the customers.” He also informs that Al Jassar Group is seriously considering launching a bigger multispecialty hospital in association with Apollo India to give all secondary and tertiary care facilities under one roof.
LEGAL
By James Harbridge
Tax on overseas dividends According to a recent Supreme Court judgment, dividends obtained by a company in respect of its shareholding in another company will not be taxable
O
ver the last couple of years, I have been working with two Omani corporate clients trying to ensure that, as per the Law, they are not taxed on overseas dividends which they received in 2002, 2003 and 2004. I am pleased that the Supreme Court has now recently made a ruling in favour of both these two entities (i.e. they will not be taxed on the overseas dividends which they received in the above-mentioned tax years). In this way, the Supreme Court judgment has given effect to Article 8(bis) of Royal Decree 47/81 as amended, which states that dividends obtained by a company in respect of its shareholding in another company will not be taxable. The effect of the Supreme Court ruling also makes it clear that the definition of “Company” in Article 2(4) of Royal Decree 47/81 (as amended) covers any company, regardless of whether it is an Omani or foreign company. As a result, the Supreme Court ruled that these dividends from overseas were not taxable in the hands of the Omani entities. Another effect of the two recent Supreme Court judgments is that it is now clear that Supreme Court case 42 and 44/04 cannot be applied to the scenario of overseas dividends. This 2004 case was about management income received in tax years 1994, 1995 and 1996 by an Omani company for managing a UAE entity. The judgment in 2004 was that the management income was taxable pursuant to the general rule in Article 8 that income is taxable.
The author is a Partner at Curtis, MalletPrevost, Oman
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However, Article 8(bis) has always
said that dividends are an exception to the general rule, and that is why I believe the Supreme Court decided in its recent judgments that the 2004 case could not apply to the respective cases of my two clients. Furthermore, Article 8(bis) became effective law on January 1, 2000, which is another reason why the 2004 case about 1994-1996 could not be applied to the tax years 2002-2004. This is in accordance with the general rule that laws cannot be retroactive. In addition, there was a 2008 Supreme Court judgment which declared that overseas dividends were taxable in the hands of Omani companies. However, like case 42 and 44/04, the tax years in question in the 2008 litigation were 1997 and 1998. In other words, the 2008 case, like the 2004 case, was about tax years pre-dating the creation of Article 8(bis). It should be noted that these 2012 Supreme Court judgments can only apply to the end of tax year 2009, as the new Income Tax Law – effective for the tax year 2010 and beyond – states in Article 115 that, “…in determining the taxable income for any tax year, the following shall be exempted from tax: (A) Distribution of profits obtained… from the ownership of shares, parts or participation in the capital of any Omani company.” As a result, dividends received from overseas in tax year 2010 and beyond will be taxable. But the Supreme Court’s two recent judgments appear to have clarified the position in respect of the tax years up to and including 2009.
SPOTLIGHT AIR CONDITIONING Air-conditioner and refrigerator market account for a whopping 65 to 70 per cent of all business in Oman’s white goods market
Cooling solutions T he importance and size of the global commercial air conditioning (CAC) market has grown to prominence in recent years, gradually evading the shadow of the residential air conditioning (RAC) market. Such growth has not been limited by tempering market conditions in the traditional CAC strongholds of North America, Europe, and Middle East. With demand for CAC products accelerating in other parts of the world, other regions have now entered the fray. However, Air conditioning is a necessity
in the Middle East, given its geographical location, climatic conditions and the ever-evolving infrastructure. Massive construction drives which spurred the development of numerous residential and commercial real estate projects, and high population growth have fuelled demand for air-conditioners and cooling systems in the region. The region’s annual commercial air conditioning (CAC) market volume is expected to reach approximately $4bn, a 35 per cent growth from 2010. Regional construction boom and increasing investments from China have
boosted the growth. Another factor is the 2022 Qatar World Cup, which has greatly increased construction in Qatar in preparation for the mega event in the region. This directly translates to a need for CAC in a region that experiences hot and humid conditions for most of the year. The boom in real estate development together with the growing emphasis on greater cooling facilities and the resultant increase in power demand have all contributed to creating huge opportunities for manufactures and distributors in district cooling. This
SPOTLIGHT AIR CONDITIONING trend has received added impetus in recent years with the lack of sufficient generation, transmission and distribution infrastructure to meet projected power demands. In Oman, the air-conditioner and refrigerator market account for a whopping 65 to 70 per cent of all business in the white goods market. The market size of air-conditioning products is around 200 K units a year in Oman. The market size for Refrigerators is around 80 K units a year. Also due to a very fertile commercial / industrial projects scenario, there is also a great business opportunity for different airconditioning concepts like chiller, ducted type or DVM(digital Variable Multi. Traditionally, the Sultanate has been a market for window ACs. That trend is rapidly changing as improved standards
of living and more sophisticated lifestyles push customer preference to split and ducted air-conditioners. This is in line with global trends. Apart from lifestyle changes and economic development, price reductions in split units have driven demand for these models of air-conditioners. What’s more, the air-conditioner which was earlier regarded as a seasonal product now boasts decent sales figures even during off-season. In Oman extreme temperatures and high levels of humidity have spurred the demand for high quality, energy efficient, environment friendly and reliable cooling solutions. The Omani government, in keeping with these trends and demands, has established the highest standards in setting requirements for all new projects being developed for both the tourism and real estate sectors. In order to meet
these requirements and to reduce the demand on the governments for energy the District Cooling solution has been developed and implemented throughout the GCC.
Environmentally friendly Industrial outlook has shifted towards a greener and more sustainable future, requiring customers as well as manufacturers to truly focus on environmentally-friendly technologies. In 2011, Sharp launched its latest AC technology in Oman, with the addition of ‘All Aluminum heat-exchangers’ and ‘Plasmacluster Ions’ into its line-up of ACs. This innovation not only reduces the unit’s weight by 40 percent, it also reduces its refrigerant requirement by a staggering 50 percent. “Sharp has always focused on
Samsung introduces Crystal cooling Samsung’s Crystal air-conditioner series features a multi-step filter which dramatically improves air quality to protect health
S
amsung, always looking to push the boundaries of consumer experience, is bringing in the cool factor to Oman with its new Crystal air-conditioner series. Combining unsurpassed technology and breathtaking beauty, the Crystal AC improves the quality of air while cooling to provide the utmost in comfort. The Crystal series is available in Oman through Samsung’s authorised distributors, Al Seeb Technical Est. (SARCO). Powered by Comfort Care technology, the Crystal air-conditioned range features a Multi-Step filter which dramatically improves air quality to protect health. Comfort Care adjusts humidity while cooling in conjunction with an Ideal Comfort Index, to ensure cool comfort all the time. The Smart Saver function automatically operates the AC in the least amount of time necessary to cool the room, saving up to 31% electricity while protecting
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the environment. The S-Inverter aids this energy saving by ensuring less fluctuation and motor running time, while maintaining the optimum temperature. With health becoming such a primary concern these days, the Crystal range incorporates a Micro Plasma Ion (MPI) feature that eliminates bacterial content in the air. The bacteria eradication technique used by MPI removes biological contaminants like viruses, molds and allergenic agents. Apart from ensuring good health on the inside, its dazzling looks mean that the Samsung Crystal range even helps from the outside. With a high gloss panel in refreshing colors, the Crystal range adds glamour to every room, giving it the feel of a luxurious work of art. The new ergonomic remote control is innovative in its easy view display; soft touch buttons and superior grip, making it feel more comfortable in your hand. For Samsung, one of the fastest
growing global brands, the Crystal range is yet another imaginative step towards making the world better for all. Harnessing creativity to combine it with stylish design and convenient features has always been at the core of the Samsung business ethic. The Crystal range is testimony to that process. SARCO, as a distributor, believes in the same values. Which is why, even though it has been around in the Oman market for 35 years, SARCO has never taken its goodwill and tremendous trust from the consumers for granted. With a commitment to excel and set highest standards in all that it does, SARCO has emerged at the forefront of trading electronics and engineering activities in the Sultanate of Oman. Introducing the Crystal range is another sign of its unrelenting commitment to quality and passionate dedication to customer service. This summer is all set to be cooler than ever, only with a Samsung Crystal.
SPOTLIGHT AIR CONDITIONING improving customer’s lives through its technologies and we used this launch to showcase yet another innovation to the local and global market, which we believe tackles some of the challenges faced by the Air-Conditioning industry in the region,” says AG Tony assistant general manager OMEC.
World’s first tropical inverter AC Panasonic has recently introduced the world’s first tropical inverter air conditioners which are designed to specifically meet the climatic challenges of the Middle East. The new range of air conditioners comes with the Smart
compressor, resulting in up to 30 per cent less energy consumption compared to a non-inverter model.
Crystal cooling Inverter Compressor, which are powerful, fast and extremely energy efficient. With searing temperatures in the region, the new technology has made it possible for an 18000 Btu air conditioner to reach up to 22000 Btu, and a 24000 Btu model to reach up to 27000 Btu, based on the requirements resulting in faster cooling. Furthermore, the new technology precisely manages the speed of the
Samsung’s Crystal AC combines unsurpassed technology and breathtaking beauty. The Crystal AC improves the quality of air while cooling to provide the utmost in comfort. Powered by Comfort Care technology, the Crystal air-conditioned range features a Multi-Step filter which dramatically improves air quality to protect health. Comfort Care adjusts humidity while cooling in conjunction
Powerful and durable LG’s Titan series air conditioners designed to outlast Middle East’s harsh climate and weather conditions through powerful performance and solid durability
L
G Electronics (LG) continues its Titan series air conditioners in the Middle East. Titan air conditioners are capable of delivering powerful cooling while withstanding the region’s often punishing weather conditions and temperatures. TITAN ARTCOOL - with its stylish design, it’s a top-level power cooling air conditioner. TITAN DELUXE - boosts an unrivalled package of the most complete air conditioning solution with power cooling and durability. TITAN - with speed and durability, LG Titan boosts full performance even in the most extreme weather conditions. The powerful cooling capabilities of the Titan series are accompanied by expansive and thorough air distribution. The Titan series is capable of projecting cool air at distances of up to 10 metres, the longest air distribution range in the industry. Meanwhile, the Jet Cool function and the 4-way Swing system distribute air in all directions at maximum speed. As a result, the Titan series can achieve optimal temperatures in the shortest possible time, regardless of the
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outside temperature. The Titan series is built to last, an essential requirement in a region with a punishingly hot climate. The Tropical Compressor is designed to operate 24 hours a day and persevere through sandstorms and temperatures as high as 58°C. This is partially enabled by the Gold Fin, an anti-corrosion coating, which makes the heat exchanger more resistant to corrosion. Unique healthcare features have been added to the Titan series, in order to provide customers with the most comfortable and relaxing home environment. The air projected from the Titan series is purified, thanks to the Auto Cleaning function, which also sterilizes the air conditioner’s interior to prevent the formation of molds and bacteria. Health risks are significantly reduced by the Allergy & Virus Safe filter, which eliminates allergen, apatite and binder, as well as 99.9 percent of H1N1 viruses over the course of 24 hours. Meanwhile, the Triple filter reduces allergy symptoms and removes unpleasant odors, and the Plasmaster filter reduces microscopic contaminants and dust, as well as house mites, micro dust and pet fur. Complementing LG’s product innovations are OTE Group’s efforts in
all areas of sales, distribution, service and understanding of the local audience. Caring for customers has been LG & OTE’s top priority, whereby customers are treated with care and issues handled with speed and accuracy. LG & OTE Group have introduced Day And Night Customer Service - first of its kind in Oman where customers can benefit from the service from 8 am – 12 midnight, a year back. The initiative is aimed at providing quality service for the excellent value that LG products offer and what homeowners deserve and expect from the comfort of their homes. OTE Group is a part of the social fabric in Oman and hence customer satisfaction is its top priority. It is this philosophy of team OTE that goes beyond market share and profits to come together and make OTE – A Symbol of Care. OTE Group is the exclusive dealer of LG range of electronics and home appliances in Oman. With a nationwide network of showrooms and service facilities, OTE Group ensures that LG customers are never far from getting a wide range of high quality after-sales service. It is this strong partnership that continues to lead more customers to join the OTE-LG family.
SPOTLIGHT AIR CONDITIONING with an Ideal Comfort Index, to ensure cool comfort all the time. The Smart Saver function automatically operates the AC in the least amount of time necessary to cool the room, saving up to 31% electricity while protecting the environment. The S-Inverter aids this energy saving by ensuring less fluctuation and motor running time, while maintaining the optimum temperature.
General’s wall mounted split AC Oman was the first country in GCC to have the honour of launching “General” 5 speed control wall mounted AC in May 2011. The new “General”,
designed with its innovative technology, reduces resistance to return air, thereby allowing more air contact with the Heat Exchanger which results in better cooling. This 5-speed wall mounted split AC has a wide range of fan. ‘Airflow’ or quite simply Air movement inside a conditioned space is one of the key factors that contribute to ‘comfort’. The airflow reaches up to 15 metres, and gives a better cooling effect in to unwieldy longish rooms. Besides being environment friendly, this new model also incorporates additional heat exchangers, which means even better cooling performance, while consuming
lesser energy, giving users handsome savings in electricity bills.
RF Systems and Multi V The heating, ventilation and air conditioning (HVAC) industry has moved steadily beyond simple air conditioning units for households and into more intricate and sustainable systems that cover entire buildings. Riding the wave of this trend, variable refrigerant flow (VRF) air-conditioning systems have proliferated widely. Despite their humble beginnings more than 20 years ago, VRF systems have now evolved into advanced air conditioning systems
GENETCO – Transforming lives GENETCO is distributing the HITACHI range of premium air conditioners targeted to the discerning customer who is looking not only cooling but health benefits too GENETCO is one of the largest and most diversified trade and engineering companies in the Sultanate carrying the distribution rights of many international brands. Over the last 40 years, it has gained significant reputation and market share in Retail and Distribution, MEP Projects, Engineering Services, Cold Rooms, Laundry Equipment, Industrial Kitchens, Water Treatment Plants, Thermal Insulation and Water Proofing, Medical Supplies and Office Automation. GENETCO has consistently delivered excellence in both products and services to its varied customers in the Oman market. The company has developed a very strong infrastructure, systems, policies, procedures and training programs to accommodate growth and to ensure the delivery of consistent top quality operations and service. SANYO has been associated with GENETCO from the last 40 years and has grown from strength to strength in this market. SANYO’s is a major player in the Air conditioning segment in the Oman market. With a wide range of Air Conditioning products like rotary and reciprocating window, split and duct able type air conditioners, Sanyo
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provides a wide choice to the customers. Backed with the technical and after sales of GENETCO, SANYO commands a high reputation in Oman. SANYO Air Conditioners come with tropicalised high efficiency compressors which are suitable to perform in high ambient temperatures up to 52 degrees centigrade. GENETCO is distributing the HITACHI range of premium air conditioners which is targeted to the discerning customer who is looking not only cooling but health benefits too. In line with Hitachi’s philosophy of creating richer lives and transforming society by providing innovative products based on latest technology and better value , currently the HITACHI Gold line range of Air conditioners are available in Oman. These HITACHI Air conditioners have the world’s first “Nano Titanium Filter” which eliminates virtually all bacteria and fungi to create healthy air which refreshes and energizes the user. The HITACHI air conditioners also come with high energy efficient compressors which ensure high cooling at even 55 Degrees Centigrade. Also the HITACHI Air Conditioners have DC power system for energy conservation and ultra silent operations. Genetco has plans to introduce the new
HITACHI Wide Line range of split air conditioners with the innovative “Wasabi filter” too by June this year. GREE has been associated with GENETCO from the last 6 years and has developed as one of the reputed brand of air conditioners in the Oman market which offers high value at very attractive prices. GREE Electric Appliances, Inc. of Zhuhai, founded in 1991, has become the world’s largest specialized air conditioner company integrating R&D, manufacture, sales and service. Gree is one of the “Top 100 Chinese Listed Companies” ranked by Fortune for a consecutive eight years. Today, Gree brand products are distributed to more than 100 countries and regions in the world. The sales volume of residential air conditioning is global No 1 at present. GENETCO has been successfully marketing a large range of residential and commercial Air Conditioners from GREE. It has a large range of rotary and reciprocating windows and split units in the 1.5 to 3.0 tons capacity. The range also includes the floor standing units from 2.0 to 5.0 tons and Duct able Air conditioners.
SPOTLIGHT AIR CONDITIONING that provide customizable temperature control for all occupants within a building or building complex. Speaking at the launch of LG’s VRF system Multi V III commercial airconditioner earlier this year, HS Paik, President of LG Electronics Gulf FZE said, «As a company with a strong focus on producing energy-efficient products, we feel that the MULTI V III addresses all the major HVAC requirements of businesses in the Gulf. With this product, we are in a strong position
to work with our dealers and business partners in the region to make LG the leading provider of smart and efficient HVAC solutions. And, this has definitely proved to be the case as the Multi V III has earned $15m so far since it was released in the Middle East. VRF sales in 2011 grew 500 per cent compared to the overall single air conditioning market›s 21 per cent growth. The sales of this system continue to grow steadily as the expansion of the Middle East CAC
market. Advances in technology and growth in the HVAC market have gone hand in hand as greater demands have necessitated bright ideas and the effective implementation of those ideas. This is reflected in the growth of VRF systems worldwide. The VRF systems market globally averaged an annual growth of 15 per cent over the last five years and reached an impressive $4.3bn in 2010. Much of the initial growth was seen in major markets, but there has been a noticeable shift to emerging markets. This trend has led a growing
Designed to meet challenging climatic conditions Panasonic’s Smart Inverter compressor delivers unmatched cooling power and savings of 30 per cent on power consumption
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anasonic has introduced he world’s first tropical inverter air conditioners which are designed to specifically meet the climatic challenges of the Middle East. The new range of air conditioners comes with the Smart Inverter Compressor, which are powerful, fast and extremely energy efficient. With searing temperatures in the region, the new technology has made it possible for an 18000 Btu Air conditioner to reach upto 22000 Btu, and a 24000 Btu model to reach up to 27000 Btu, based on the requirements resulting in faster cooling. Furthermore, the new technology precisely manages the speed of the compressor, resulting in up to 30 per cent less energy consumption compared to a non inverter model. The existing ECONAVI feature has also been upgraded with the addition of the Sunlight Detection system, which will help the AC control its cooling based on ambient light conditions .In addition to the ECONAVI and Intelligent Inverter features, the Deluxe Non-Inverter models also come with the new nanoe-G air purifying system that utilise ions and radicals to purify the air in the room. It works effectively on airborne
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impurities and fabric, ensuring a cleaner living environment.
output range and quick cooling during the start up period.
“In keeping with our goal of becoming the No.1 Green Innovation Company in the electronics industry by 2018, these new models will not only add to the comfort of our consumers, but will also help reduce energy consumption and further empower individuals to save energy easily and contribute to the environment,” commented George Ranjit Alexander - general manager.
Inverter control in the desert climate is now possible thanks to unique, innovative technologies. The result is a new dimension in air conditioning that lets users enjoys more powerful cooling than ever, a stable room temperature, and outstanding energy saving performance.
“We are confident that this ecofriendly energy saving products will significantly appeal to the Middle East consumers. Panasonic is keen to help its customers realise a green,” Kishore Chandrasekharan - divisional manager air conditioning and projects. Intelligent inverter technology These new air conditioners run on minimal power with precise temperature control. By reducing wasteful cooling operation, Inverter Series can achieve up to 50 per cent less energy usage compared to the non-inverter units. In addition to energy savings, the Intelligent Inverter Technology also delivers constant comfort with wide power
Cooling is possible even when the outside temperature is 55ºC. The new models featuring a highly durable compressor and fan motor to maintain room comfort even under the hottest conditions. ECONAVI room air-conditioners New ECONAVI with Sunlight Detection detects changes in sunlight intensity in the room to reduce the waste of cooling under less sunlight conditions. As weather conditions changes from sunny to cloudy or night, ECONAVI detects less sunlight intensity and determines less cooling power is required. If cooling power remains the same, then energy will be wasted. ECONAVI detects this waste and reduces cooling power by an amount equivalent to increasing the set temperature accordingly.
SPOTLIGHT AIR CONDITIONING number of industry observers to predict considerable growth in the future. According to research conducted by LG Air Conditioning and Energy Solution Company, the VRF systems market will reach a staggering $7.3bn by 2013, a 40 per cent jump from last year›s tot. Midea has also emerged as a leader in variable refrigerant flow (VRF) systems with most of the big names in world buying from them under their brands. MDV-D is Media’s range of VRFs which unlike many others is the new generation of multi-modular systems for commercial and residential air conditioners that uses the ‘digital scroll’ technology. A digital scroll system is a multi system with a DIGITAL SCROLL Copeland compressor which is able
to simplify air-conditioning systems, regulate efficient performance and save more energy by digitally regulating the output to the required capacity as multiple indoor units can be connected to a single outdoor unit and these indoor units can be controlled independently and collectively.
intelligence and flexibility. The unit can operate in adverse conditions where the temperature reaches as high as 52°C. This series incorporates Daikin’s latest technologies, including long piping and high external pressure, to meet the diverse needs of our customers.
Latest VRV
Wansa air conditioners have silent and highly reliable compressors. Their built-in air filter not only kills bacteria but removes dust, pollen, mould and any airborne particles. The active carbon filter eliminates odours and deactivates harmful chemical gases in the air. It also traps common household air pollutants such as dust and smoke. The sleep / economy mode lowers or raises the room temperature setting by one degree.
Daikin’s VRV III series has specially designed models for high outdoor temperatures, with an extensive capacity ranging from 8 to 36 HP. It was Daikin which developed the world’s first variable refrigerant volume system (VRV), maintaining a nearly constant room temperature without the typical temperature fluctuations It is equipped with advanced built-in
Reliable compressors
Advanced air conditioning solution Daikin’s VRV III series has specially designed models for high outdoor temperatures, with an extensive capacity ranging from 8 to 36 HP
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uscat Electronics (ME), the sole distributor of the Daikin brand of air-conditioners in the Sultanate, has over the years earned the trust of people in air-conditioning solutions and for excellence in customer support services amongst others.
enhanced energy efficiency, spacesaving design and reliability. The VRV system maintains a nearly constant room temperature without the typical temperature fluctuations. The remarkable features of VRV are:
Daikin has over the past 80 years earned the reputation of manufacturing high quality air conditioning equipment for industrial, commercial and residential use. As a result of putting in strenuous efforts to limit the negative effects associated with the production and operation of air conditioners, Daikin has in 1982 invented VRV series which is well suited to large sized buildings.
• Inverter compressor • Environment friendly R410A refrigerant • Precise room temperature with +/- 0.5°C attainable • Inverter motor options for ducted indoor units • Drain pump options for indoor units • Fresh air solutions can be integrated to VRV • Self diagnosis system for ease of maintenance
In order to elevate the level of high performance and to build a solution unlike any other, Daikin developed the world’s first variable refrigerant volume system (VRV). It is equipped with advanced built-in intelligence and flexibility. For modern building with sophisticated design, the VRV system offers advanced zoning capabilities,
The new VRV III pushes the limits to deliver advanced solutions and even more flexibility for the engineered and design-build projects. It can provide building owners with vital data on energy consumption, system operating costs and many other operating and cost parameters. This air conditioning system provides outdoor units that extend air
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conditioning capacity up to 54 HP. The VRV III series provides the power and versatility you need for flexible design and easy installation in large-sized buildings. The Heat Recovery Series also enables simultaneous cooling and heating, meeting the various needs for temperature control. The VRV III series has specially designed models for high outdoor temperatures, with an extensive capacity ranging from 8 to 36 HP. The unit can operate in adverse conditions where the temperature reaches as high as 52°C. This series incorporates Daikin’s latest technologies, including long piping and high external pressure, to meet the diverse needs of our customers. ME has a highly skilled design team and very sophisticated service centre. It has installed 4000 VRV systems with R410A refrigerant which are working satisfactorily for the past 8 years. The total installed capacity of R410 A VRV in Oman is above 25,000 TR.
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SPOTLIGHT AIR CONDITIONING
How to make your AC energy efficient A few handy tips to increase the life and improve the efficiency of your AC
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he maintenance of an AC is an area that most consumers and commercial clients need to learn about. It is not always necessary to order dealer service when a little bit of care and maintenance on your part will go a long way in improving the working life of your air conditioner. Simple things such as regular cleaning of the filters, helps increase the life of your AC. However, it is more prudent for you to enter into an annual maintenance contract with the authorised service centre of your brand of AC, so that the units are maintained at a nominal cost with little hassle. The following few tips will help one maintain an air-conditioner in an easy simple way: Understand that an air conditioner, apart from cooling, also conditions the air inside your room like humidity, dust, order, fungus, bacteria, etc. All good quality ACs have cooling, humidity control, dust removal, anti fungal and
anti-bacterial functions and these need to be used properly. Split ACs are now affordable, very quiet and energy saving as compared to window ACs. They are also more hygienic and prevent birds from making their nests in air gaps, rodents creeping in and air from leaking. Clean the filter of your AC once a fortnight, or when the indicator lamp on the front panel lights up. Dirty air filters force your system to work harder to push cool air through your home. This uses more energy and places extra strain on the air conditioning system. Take the filter(s) out and hold it to the light. If the dust on the filter is so think that you can’t see much light shining through the filter, it’s time for new filters. A clean air filter, unobstructed by the dirt and other debris, will save you money on energy costs and prolong the life of your air conditioner. If you do not know where your air filters are or how to replace them, ask your HVAC technician
to show you during an inspection. Keep the doors of your rooms open for a few minutes every day to allow some fresh air to enter. Do not spray any type of deodorant or perfume into your split ACs. Doing so will result in foul smell, necessitating a cleaning of the indoor unit. Avoid smoking in an AC room as indirect smoke can harm other family members and it is very difficult to remove the odour even by servicing. For safety, always turn the thermostat and outdoor unit’s breaker off before doing any work around that outdoor unit. The coil can be cleaned using a soft-bristle brush to gently sweep the fins. Always brush in line with the fins, and be gentle because the fins can bend easily. Because the fan pulls air through these fins, you can expect to find dust clinging to the fins. Removing this dust and other debris will reduce resistance and increase efficiency.
Redefining air-conditioning comfort Toshiba air- conditioners are state-of-the-art products offering year round comfort with high energy savings
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oshiba is one of the oldest Japanese brands of airconditioners being distributed in the Oman market. The brand has been present in Oman since the late 60s and is the acknowledged leader in residential and light commercial airconditioning. Year after year, thousands of Toshiba airconditioners are installed in homes and offices all across the Sultanate, bringing cool relief and comfort to their users. Most Toshiba customers stay loyal to the brand all their life, and are also the best brand ambassadors, as they invariably recommend Toshiba airconditioners to friends
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and relatives. These rugged and durable airconditioners, backed by the superlative after sales service from Bahwan Electronics, the authorised Toshiba distributors in Oman, ensure that the trust and faith of these customers are not misplaced. Toshiba airconditioners are state-of-theart products that offer year round comfort with high energy savings. Available in both window and split type, Toshiba airconditioners use the most advanced lightweight rotary compressors that offer whisper quiet operation, with virtually zero defect operation. The
new IAQ filters provide double filtration protection against harmful bacteria and viruses. They also absorb smoke and other odours. Combined with the self cleaning function that inhibits the growth of mould and fungi, Toshiba redefines airconditioning comfort. They also offer the highest value in terms of durability and reliability. Bahwan Electronics, a part of the Suhail Bahwan Group, has a widespread distribution network all across the Sultanate, with service centres and mobile workshops in all major towns, providing quality service and ensuring the least down-time for customers.
SPOTLIGHT AIR CONDITIONING
Choosing the right AC A majority of buyers tend to choose an AC based on its cooling qualities ignoring the quality of air
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s the heat turns up and thermostats turn down, many homeowners begin the process of choosing a new air-conditioning unit or replacing an old one. Purchasing an air-conditioner in a country such as Oman, with high temperatures and humidity, is an important appliance decision that affects the entire family or office. When you buy an AC, make sure the unit is tropicalised (designed for Middle East region’s high ambient conditions), the after-sales support is strong, the power consumption and noise level is low, the unit has air-purifying capabilities, the
design complements the interior of the room and it matches your budget. A majority of buyers tend to choose an AC based on its cooling qualities and ignore the quality of air. Some of the new ACs in the market provide air purifying functions which also removes allergens from the air thereby increasing the quality of air. Air conditioners in the Middle East are used primarily for cooling. Always consider the following main factors — the cooling requirement, the room size (area, height and exposure to sunlight), the climatic conditions and
the number of occupants in the room . The room size and climatic conditions determines the BTU requirement to cool the room. BTU stands for British Thermal Unit, defined as the amount of heat necessary to raise the temperature of one pound of water by one degree. The heat gain added to a room by a person at rest is about 230 BTUs per hour. So a 10,000 BTU air conditioner is capable of removing 10,000 BTUs of heat per hour. The higher the BTU rating of an air conditioner, the easier and faster it is to cool a room. International standards recommend
For the smart consumer The Wansa air conditioners use state-of-the-art rotary compressors to deliver optimum cooling in an energy efficient manner
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uscat Electronics LLC is the sole distributor of the Wansa brand of home entertainment and home appliances in the Sultanate and has earned the trust of the citizens and residents of Oman for excellence in customer support services amongst others. In this technology-driven era, electronics dominates even the most basic aspects of our everyday life for food, clothing, socialising and even for being-in-theknow. Wansa products exemplify durability, reliability, efficiency and aesthetics. Being a highly respected name in the Sultanate and the middle-east, Wansa is perfectly attuned to providing an unique combination of international expertize and localised insight. Wansa offers high-quality and
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aesthetically engineered home appliances. The Wansa air conditioners use state-of-the-art rotary compressors to deliver optimum cooling in an energy efficient manner. This means that you get more cooling per baiza spent. Extensively tested, Wansa air conditioner compressors are silent and highly reliable. The built-in air filter not only kills bacteria but removes dust, pollen, mould & any airborne particles. The active carbon filter eliminates odours & deactivates harmful chemical gases in the air. It also traps common household air pollutants such as dust and smoke. The sleep / economy mode lowers or raises the room temperature setting by one degree. Set the 24-hour on/off timer to turn off the unit when you are not at home & turn on before you arrive.
The Wansa refrigerators offer frost free cooling which completely removing the need for defrosting. Wansa’s optimized refrigeration system offers significant reduction in energy cost. The Wansa washing machines use state-of-the-art technology that limits the amount of water and thereby the amount of detergents used in each wash cycle. That’s three advantages in one! – Conserve water, save the environment and is light on the consumers wallet. Wansa’s LCD TVs, Plasma TVs and CRTVs compliment and supplement the décor of your homes. Wansa LCD TVs come equipped with full HDTV also referred to as ultra-HD, true HDTV and 1080p whose benefits have to be experienced.
SPOTLIGHT AIR CONDITIONING approximately 30 BTU per square foot of the room, but in Gulf weather conditions at least 90-100 BTU per square foot are recommended.
Split air conditioner When cooling rooms with uninsulated ceilings, great rooms, or southern or western room exposures, step up to the next BTU size. If a building is not centrally
air conditioned, a customer has three options: a split, window or portable airconditioner. A window air conditioner is a single unit with its components housed inside the unit and it requires no inter piping for installation. The AC can be installed through an opening in the wall. The main benefit with this is the ease of installation as the split air conditioner has two parts, the outdoor condensing
unit and the indoor fan coil unit. A split air conditioner can be a single split unit where one fan unit is connected to one condenser or multi split unit where one condensing unit is connected to more than one fan unit. Since the split units have an outdoor condensing unit, they are quieter in operation. Portable or self-standing units are small units used in spaces where installation is difficult.
Muscat Air conditioning: one-stopshop for all kinds of air-conditioning Muscat Air conditioning is a young organization and has emerged as a one-stop-shop for all kinds of air-conditioning requirement; be it commercial or residential Largest range “From window air-conditioners to split ACs from VRF systems to Chillers. We have it all,” says Mr Albin Das- Senior Manager of Muscat Air conditioning. In a short period we have notched up a few prestigious installations such as Chedi Muscat, Ali Al Farsi and various Lulu hypermarkets to mention a few. Currently the company represents Zamil Industries and Midea in Oman. Midea is one of the largest manufacturers of ACs in world and is an OEM supplier to most of the well-known American Brands. MAC gives you a wide range of central AC products likes VRF units, chillers, AHU, FCU, package units and ducted splits at prices which are a least thirty percent cheaper than most others. “We give you more value for every Rial spent,” says Albin proudly.
VRF System Midea has also emerged as a leader in variable refrigerant flow (VRF) systems with most of the big names in world buying from them under their brands. MDV-D is Media’s range of VRFs which unlike many others is the new generation of multi-modular systems for commercial and residential air conditioners that uses the ‘digital scroll’ technology. A digital scroll system is a multi system with a DIGITAL SCROLL Copeland compressor which is able to simplify air-conditioning systems, regulate efficient performance and save more energy by digitally regulating the output to the required capacity as multiple indoor units can be connected to a single outdoor unit and these indoor units can be controlled independently and collectively. Environment Friendly: R-410A Media uses the environment friendly
Diverse Product Range Range from Midea
Range from Zamil
MDV Window Air-conditioners
Concealed units up-to 5 tons
MDV Wall Splits
Free standing units up-to 30 tons
Midea Ducted Splits
Ducted splits up-to 30 tons
Midea VRFs
Package units up-to 80 tons
Midea Chillers
Single and double air handling units up-to 70,630 CFM and
Midea Air-conditioning Units
Water chillers of up to 550 tons cooling capacity.
Midea Fan-coil Units.
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R-410A refrigerant in its units. The maximum outdoor capacity which can be achieved with a single modular system is 180 kW (64 HP), which is the largest capacity in the industry. Midea MDV provides very long piping lengths to facilitate easy installation in both tall and big buildings. Zamil - Cooline: MAC is distributor in Oman for cooline’s exquisite array of chillers, Air Handling Units (AHU), unitary and applied products for residential, commercial and industrial use. Zamil Air Conditioners was the first brand in the Middle East to receive Eurovent certification for its air movement systems. Zamil -Cooline products’ have high Energy Efficiency Ratio (EER) and high overall coefficient of performance, which complies with the highly demanding international standards. MAC’s air-conditioning solution begins with the full understanding of customers’ air-conditioning needs to select the right mix of products, continues in ensuring high quality installation and there after conducting periodical inspections for timely maintenance for ensuring efficient and effective performance throughout. Muscat Air-conditioning is committed to ensuring cool, hassle free comfort for the citizens and residents of Oman.
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FINANCE
Trendsetter Oman UAE Exchange continues to pioneer new services and products and has grown from strength to strength over the last 17 years. Visvas Paul D Karra speaks to its country head Tonny George Alexander, the man responsible for growing the company to its present successful status
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man UAE Exchange (OUAEEC), which started operations in the Sultanate in October 1995, was considered a trendsetter in the money exchange business since its inception. The legacy continues till today as the company sees a growth in its business with 38 outlets rolled out so far all over the country providing vital services to its customers. A wide range of services and products on offer have also helped OUAEEC to become the preferred partner in the money exchange business. The company can lay claim to being the largest exchange company in Oman offering a wide range of fund transfer options across the globe. Augmenting its capabilities and services are the correspondent arrangements with several banks which enable faster realisation of funds. Apart from this, OUAEEC acts as a collection agent for settlement of credit cards issued by Standard Charted Bank, and is also the largest supplier of foreign currency bank notes at competitive rates. The company has different modes of funds transfer, like electronic fund transfer through the companyâ&#x20AC;&#x2122;s vast network of correspondent banks and instant electronic money transfer through Western Union and Xpress Money. OUAEEC is the only exchange house in Oman, apart from banks, who has connectivity to SWIFT, wherein STP (straight through processing) is effected, in highly automated banking environments. This enables the fund transfer in major currencies to be processed without manual intervention. For conventional remittance services, OUAEEC has drawing arrangements with over 60 banks/ financial
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institutions all over the world for demand drafts and telex transfers. There is also a loyalty programme for regular customers known as the gold card which gives the convenience of a fast and error-free transaction.
second branch in Ibra. At that time, no other exchange house was present in that place. In 1999, the next branch was opened and later, in Alexander’s words, there was a spree of opening of branches when the CBO amended the rules and removed the cap on branches.
Tough early days All this is a far cry from October 3, 1995 when OUAEEC opened its first office in Ruwi with a few counters and nothing else. On the first day of opening, there was no inaugural fanfare and only one customer walked in. “It was a do-or-die situation as there was lots of hype, huge aspirations and I didn’t know how to go about it as we were new to this market, although I had worked in the parent company UAE Exchange in Dubai for a number of years,” says Tonny George Alexander, Country Head, Oman UAE Exchange, the man responsible for the growing the company to its present successful status.
Referring to what made the company successful, he explains, “I can boldly say that we are the trendsetter. We changed the perception of what an exchange company is. When we came here, a lot of people asked as to why we need such a big premise because the existing companies had small outlets. We made a difference with our appearance, our dress codes and our way of addressing the customers besides introducing many new features and new products.”
Alexander joined UAE Exchange in 1988 and worked in various positions before being chosen by the company to go beyond the borders of UAE and start operations in Oman.
One of the products OUAEEC introduced was the delivery of drafts to anywhere in India at a very nominal cost of just one rial. “This became a runaway success,” says Alexander, while adding that this subsequently brought more customers to them and helped the company to grow.
“One of the probable reasons why I was chosen was that I had experience in all areas of operations. I never said no to any job within the organisation, so by the time I came to Oman, I had a fair knowledge of how to run an exchange house, right from accounts, treasury all the way up to handling the IT side as well. One of the things I learned in school from a teacher is that education is a lifelong process. And I strongly believe in that. If I find anything new, I jump in and learn. That is one thing which has helped me in my life,” Alexander says.
OUAEEC does not believe in budging or cutting down on rates or charges because nothing in life comes for free. Says Alexander, “We do not charge our customers high rate. For example, if the rupee fluctuates by 5 paisa per dollar, that will translate to a rial per lakh of rupees. That is risky for our business. And if I don’t charge this one rial to a customer, tomorrow I can go bankrupt. If I go bankrupt, that will affect the customers because people have trusted us with their money, and if they don’t get their money, God forbid on any given day, then we are not doing a good job.”
Although Alexander was new to Oman, soon he learned the ropes of the place thanks to a tremendous foresight and keen acumen. At that time, as per the Central Bank of Oman (CBO) regulations, there was cap of only five branches per exchange company. But Alexander had already identified more than five places to open a branch. In 1997-98, when the CBO allowed up to seven branches, OUAEEC opened its
We do not charge our customers high rate. For example, if the rupee fluctuates by 5 paisa per dollar, that will translate to a Rial per lac of rupees.
“So it is better for the customers that we don’t undercut on our rates because we need the shock absorbing mechanism. Many people forget this aspect,” Alexander adds. The money exchange business has intense competition but OUAEEC has managed to outgrow its competition and is presently the number one in capital base, network, margins and profitability and in any other yardstick for that matter. The company completed 16 years in October 2011. Service is what sets apart OUAEEC from its competitors, says Alexander, while adding, “We do keep a close watch on the competition as we have accepted that competition is here to stay. We cannot run away from that. There is a saying that if we have to hit a running dog, we have to throw the stone a few yards ahead. If we have to conquer the business we have to be ahead of the competition. But for us, competition is not the driving force; it is one of the factors. It is the quest or urge to give a better service to the customers that helps us to constantly innovate in our products and services.” OUAEEC was chosen as a Superbrand for the last three consecutive years, which showcases the brand strength of the company. Augmenting the company’s position, Oman Observer consumer survey ranked OUAEEC as the 1st among Exchange Houses and 7th among “180 Greatest Brands in Oman”. This is no doubt the outcome of the excellent leadership of Alexander, who has been recognised as one of the “Top Business Leaders” in the country. Apart from the responsibility of OUAEEC, Alexander is also the chairman of the board of directors of Indian Schools in Oman, where he has been instrumental in guiding the board to strike a balance between the aspirations of the students and parents and the school management. Whenever, Alexander has spare time, he spends it with his family. He is also a voracious reader having consumed books on religion, philosophy, business and biographies depending upon his mood.
EDUCATION
A befitting recognition As the countdown to the BizPro Awards 2012, to be held on May 20, 2012, gets underway OER catches up with a couple of winners of yesteryears to get a ring side view on the awards and its salience in promoting and encouraging young Omani’s. A report
Abdulnasir N Al Raisi, Assistant General Manager, Corporate Credit & Marketing, BankMuscat and the recipient of the Young Achiever Award in 2009, shares his thoughts on winning the Award. Excerpts from an interview with Mayank Singh. You were one of the winners in the Young Achievers category at BizPro Awards in 2009, and since then you have gone onto excel in your job and related areas. Looking back, what were the attributes that enabled you to win this coveted recognition? I have always believed in doing the best that one can. A person should look around to see what others are doing and then try to better that, because if you are not doing anything differently then it is difficult to stand out in a crowd. I am lucky to be associated with a bank which stresses on local talent, but going up the corporate ladder requires hard work. Success is also the combination of a number of other things like good colleagues, encouraging superiors etc. But it is important to get your priorities straight. Winning the BizPro Young Achiever Award was an achievement for me and a step in the right direction. The testing that you go through makes you aware and think about things differently. The process is pretty intense as there is a written exam and a series of presentations and going through the process opens your eyes to things that you take for granted. It is a good confidence booster and encouragement for people to try and achieve more. For a young person it is a part of one’s development process. As a recipient of the BizPro Award, NTI funds a training course for you and I used it go to the
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Creative Learning Centre in Singapore, which was a great opportunity as they put you through an extensive leadership course over a week’s time. Tell us something about your educational and professional background? After graduating from high school I went to the US for a Bachelor’s degree in accounting and management from the University of South Carolina. On coming back to Oman I joined BankMuscat in September 1999. I started off as a management trainee in the bank and was put on rotation in various departments. After this I was given a choice to join any department and I choose corporate banking. I have enjoyed working at the bank and have worked in different positions. I have a lot of respect and gratitude for my superiors from whom I have learnt so many things. BankMuscat has grown tremendously in these last
12 years and I along with some of my colleagues have grown with the bank. In between, I also went for a few higher education courses which were supported by the bank. I got a Chevening Scholarship and did a Master’s in banking, which helped broaden my knowledge and horizons regarding the banking industry. At the end of the day one’s career is not just about titles or economic gain but it is also about self satisfaction, if you are happy and feel that you are contributing to your organisation, family and country then you are leading a good career. There is a lot of stress on building local national talent in Oman. What would your advice be to young Omanis who are embarking on a career? My advice to young Omanis is that you should not expect a lot before giving all you can. If you can do your
best, think out of the box, be creative and contribute to the organisation that you work for with all your force then rewards and recognition is bound to follow. Most people can do much more than what they think they are capable of. If you can push the envelope then things will look bright automatically for you, but if you sit and wait for things to happen or if you want the company, government or the organisation that you work for to give you everything without reciprocation then you will not be achieving much. First be valuable to the organisation and then value will come to you. Education is very important but it is just a qualification, it only proves your ability to learn, once you are at a work place then you learn everyday and this translates into real experience and value. If you work hard and try to give more than the person next to you, then only will you be appreciated. Apart from education and intellect, there is a lot of stress on soft skills in todayâ&#x20AC;&#x2122;s management studies. How important is the softer side of business? Soft skills are extremely important as working in teams and meeting and interacting with customers, suppliers, superiors, peers and colleagues are part of the job. How you use these networks and people in your day to day work is very important. A lot of people think that your job finishes once you reach home at five, but in my view it continues till your day finishes, because after work you network and socialise and at the end of the day it all counts. Looking at Oman do you feel that there are a lot of opportunities for youngsters who have the right education and are ready to work hard? Sky is the limit in places like the Gulf, as ours are new economies and there are a lot of opportunities. Our infrastructure is new and there is much more to be built by Omanis and the locals. We need expatriates and appreciate the knowledge and skills that they bring to the table as these are not present locally, but it is the nationals and Omanis who will be taking things forward, by leading and
building. No city or country was built overnight, it takes hundreds of years, as a country we are relatively a young nation and there are tremendous opportunities for young Omanis as they are the people who will be building our future. What do you think about the BizPro Awards and in what ways is it beneficial in promoting national talent? BizPro Awards is a very good initiative and being a part of it I appreciate the efforts that goes into putting up such an initiative. There is a need for more such initiatives; it is also a friendly competition amongst
the young and it encourages them to push and do more. Itâ&#x20AC;&#x2122;s a recognition for people, who need to be recognised in different ways. There is probably a need to grow such an initiative by adding different categories, or different things and probably it is time that other organisations started doing something on similar lines. I also feel that BizPro Awards should not be limited just to the private sector but should also include the government and semi government companies. I think some public sector companies like PDO, Oman LNG etc are participating but I am not sure about the participation of the ministry staff which is important.
EDUCATION
Push yourself to the limits Khalid M Al Barwani, Team Leader – General Trading, Corporate Banking, ahlibank and one of the winner of BizPro Awards Young Achiever Award in 2011, speaks to OER. You were one of the winners in the Young Achievers category at BizPro Awards 2011. What were the factors that helped you win this award? It is nothing magical, but the result of hard work, commitment and endeavouring to do my best. Education helps us having a good foundation and academic background sets you off on a sound footing. At the end of the day, you are as good as the work that you put in. You have done very well at a young age, what would you suggest or advise young Omanis who are looking at embarking on a career? It’s more or less the same as I have done in the beginning of my career. Apart from that try and push yourself to the limits and do not be afraid of taking risks. Never stop learning and educating yourself as this is very important. What do you think about the BizPro Awards and in what ways is it beneficial in promoting national talent? Definitely the BizPro Awards is a good programme to promote young Omani talent. NTI should continue and expand BizPro Awards and there should be more such initiatives in Oman. There are a lot of talented Omani youth who should be recognised and highlighted, sometimes by their own organisations but BizPro is one step above and it provides motivation and encouragement for recipients to do more and similarly it encourages other youngsters to strive harder and to get recognised. I used the scholarship given by BizPro to attend an Executive Development Programme in Dubai and
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it has helped me. The process of selecting the BizPro winners is quite enriching itself as it gives you a chance to challenge yourself, as one competes against many talented people. One is taken through various assessments like a written test where your language and quantitative skills are tested followed by a check of one’s logical reasoning. After this you are put through various scenarios where your leadership skills and ability to work in teams is analysed. Finally, there is an interview and a presentation on a given topic in front of a KPMG panel and based on these tests the winners are chosen. What do organisations or companies expect from fresh graduates in today’s working environment and how can youngsters equip themselves with the requisite skillsets? Organisations expect people to have a lot of soft skills like an ability to work in a team, attitude, willingness to learn and develop. Constant learning is crucial and this can be done in various ways like keeping oneself upto date with your area of expertise and global events and happenings. Part of this is also based on an organisation’s willingness to support its staff by providing them with training and development opportunities, but the willingness and initiative needs to come from the individual. How important is training for someone to get acquainted with global cross currents and to grow, and are there enough training opportunities in Oman? It depends on the industry, in banking there are enough opportunities as the College of Banking and Financial
Studies (CBFS) setup a few years ago provides a range of courses and training related to the sector at various levels. CBFS also has tie-ups with external universities and third parties who come in and conduct training. There are a lot of conferences and seminars that happen, but more can be done as there is always room for improvement and programmes like BizPro can help in highlighting such needs and giving it more significance. In today’s demanding corporate culture how can executives strike a work-life balance? Time management is extremely important. At the end of the day we work to live and do not live to work. So striking a balance and getting the right support from one’s family members is important as there are times when you may have to stay back late at work or not get that intended leave. But at the end of the day one needs to devote time and attention to one’s family.
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By Dr Jasim Husain Ali
The road ahead in ICT Although GCC countries are showing growing appreciation for ICT, they still need to overcome some critical shortages
government) and 4) impact (economic and social).
including Lithuania, Cyprus, Portugal and Spain, to name a few.
The study is noted for being uniquely comprehensive through combining hard data variables such as number of personal computers and internet penetration rate as well as views expressed by executives. Nevertheless, there is a shortcoming as opinions provided by professionals tend to be subjective.
Demographics
Bahrain tops
T
he six-nation Gulf Cooperation Council (GCC) countries are showing growing appreciation for information and communication technologies (ICT) and for good reasons. This is demonstrated in the recently released The Global Information Technology Report 2012. The World Economic Forum issues the annual report in partnership with the renowned business school, Insead. The latest report, the 11th since its inception, provides ranking for some 142 nations, collectively accounting for 98 per cent of gross domestic product (GDP) of the world, or ones that matter the most. The report ranks reviewed countries on the basis of their achievement on the Network Readiness Index (NRI), in turn derived from performance of ranked countries on 10 pillars generated through four sub-indexes. These sub-indexes comprise 1) environment (political and business conditions) 2) readiness (infrastructure, affordability and skills 3) usage (individual, business and
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Surprisingly, Bahrain succeeded in attaining the best ranking among GCC, Arab and Muslim countries. Much to its credit, Bahrain has advanced by three notches, thereby overtaking the UAE and Qatar as well as Malaysia. More specifically, Bahrain secured ranking number 27 globally, ahead of Qatar, Malaysia and the UAE, in turn ranked numbers 28, 29 and 30, respectively. The achievement reflects unique qualities of Bahrain including having exceptionally educated locals by regional standards. To be sure, a good number of locals attend evening classes as part of efforts of sustaining their carrier opportunities. Bahrainâ&#x20AC;&#x2122;s strengths include financial market sophistication, as evidenced by the financial services sector comprising nearly one quarter of the countryâ&#x20AC;&#x2122;s GDP in constant terms. Conversely, the oil sector emerges as top contributor of GDP in current terms, reflecting steady oil prices. Ranking numbers for the other GCC countries are 34, 40 and 62 for Saudi Arabia, Oman and Kuwait, respectively. Altogether, GCC countries are ahead of many European Union countries when it comes to ICT
Also, GCC countries are ranked ahead of emerging BRICS countries (Brazil, Russia, India, China and South Africa). Certainly, demographics play a factor in all GCC countries, as youths who make up half of the populations, have appreciation for technological materials. Nowadays, many perform routine internet functions including use of email via smartphones. For some, carrying a laptop is an essential part of being dressed-up. Still, GCC countries need to overcome some critical shortages including limited availability of and attraction of scientists and engineers. As such, there is a serious problem when it comes to innovation. Needless to say, in the age of globalisation, professionals are in demand and hence can move around, hence the need for making the environment conducive for human capital. Also, the report correctly points out the persistent bureaucratic problem in GCC countries. Bahrain ranks number 132 worldwide when it comes to the number of procedures required to enforce a contract, merely better than 10 countries studied in the report. The bureaucratic constrain runs contradictory to technological appreciation, all the more pointing out to availability of room for streamlining ranking in future editions of NR.â&#x20AC;&#x201A;
The author is an eminent economist and Member of Parliament, Bahrain (jasim.husain@gmail.com)
May 2012
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050_300_Tailfin_185x250_Oman_Economic_Review 1
21.03.12 12:57
AUTOTALK
Simply grand The Centennial is a loaded top-end luxury sedan offering value for money, writes Visvas Paul D Karra after an extensive test-drive
T
he Centennial has been conceptualised by Hyundai as an ultra luxury sedan to compete with vehicles manufactured by German luxury auto giants. After test driving the Centennial on the roads of Muscat we can safely conclude that it is a good buy for those who want value for money but don’t want to spend an exorbitant sum of money on German brands. Plush interiors (has four roomy leather seats) with wood grain panels, a massage system in the right rear VIP seat, active head rest, driver memory seat, rain sensor for windshield wipers, 17 speaker Lexicon audio system and numerous other features will leave you basking in the luxury of the Centennial. Take for example, the seating which has been made into a science. Redefining the sumptuous inside the Centennial, every seat is a masterpiece of design and engineering. An interior environment with the finest comfort and convenience is provided from structural aesthetics through the appropriate arrangement of genuine materials. Seat climate is controlled by thermoelectric devices in the seat back and cushion that regulate the temperature and humidity, thereby maximising comfort and optimising freshness for the occupants. The headrests have wing sections that can be adjusted up to 30 degrees for passenger comfort. The whole ambience is one of pure, but practical, opulence. When you take into account the safety features loaded into the car and the smart cruise control which brakes and accelerates intelligently when it detects obstacles in front of you, cruising on any road, whether tough city roads or leisurely highways, is a sheer pleasure. Nine airbags mean additional
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safety inside the Centennial. Front side and full-length curtain airbags are supplemented by a driver’s knee airbag and side airbags for the rear seat passengers. Working together with the pre-safe seatbelts and electronic active headrests, they provide a cocoon of maximum safety. For our drive, we took the Centennial 4.6 GLS AT 11, powered by a V8 best-engine award winner for two years, with a 6-speed transmission and a tiptronic option as well. Although slightly sluggish on the pickup, the car is very agile on the trot and nimble on the turn. The electro-hydraulic power steering wheel is very smooth and light if you take into account the size of the car. The V8 engine is a piece of refined modern sculpture with a world class power unit. By using a sophisticated high pressure diecasting system, the compact all-aluminium Tau V8 incorporates variable valve timing and a variable induction system for maximum efficiency. It is clean and lean, yet still delivers a massive 366ps with 44.8 kg·m torque at 3,500rpm. Electronic continuous damping control in real time keeps the Centennial stable, steady and smooth, by increasing or decreasing ride height for varying road conditions. Disc brakes with ABS, TCS and BAS combined with a pre-safe seatbelt means you are always in the safest position. The adaptive front lighting system (AFLS) provides optimal forward field of vision by adjusting the beam angle of the headlights while driving at night while LED outside mirror repeaters, elegantly integrated into the mirror housings, increase visibility and safety when turning. Puddle lamps mounted under the outside mirrors, illuminate the way for driver and passengers when getting out
of the car. The wrap-around energy-saving distinctive LED rear lights resembling the shape of an eagle’s wings increase visibility both day and night. A 3.5-inch TFT LCD monitor for detailed information is built into the supervision cluster. On it, information is displayed in coloured text or icon images with sounds. The screen not only displays the view from the front and rear cameras, it superimposes in simple graphic form the perfect guidelines to park. Simply follow them for totally problem-free parking. The parking guide system uses the rearview camera, and a simple, superimposed graphic with parking guidelines to help direct drivers into even the tightest parking spots. Front and rear parking sensors offer an extra line of protection in case you get too close to another car or object. All in all, the Centennial’s other names could be convenience, luxury and safety.
AUTO NEWS
TAC HOSTS ‘TOWELL AUTO SHOW 2012’
MITSUBISHI ASX NAMED “TOP SAFETY PICK” Mitsubishi Oman has announced that its 2012 ASX was named a “Top Safety Pick” by the United States’ Insurance Institute for Highway Safety (IIHS), the highest respected and authoritative vehicle research and crash test ratings agency. “We are delighted that the 2012 ASX global compact crossover model has once again passed
Towell Auto Centre (TAC) recently hosted its annual ‘Towell Auto Show 2012’ at the Muscat Intercontinental Hotel’s Palm Gardens. Riyadh Ali Sultan, general manager, delivered the welcome address followed by a corporate presentation by TAC’s CEO S Kasthurirengan showcasing the brand portfolio and investments made by TAC in the recent past and its ambitious plans in the future. The show also saw the
unveiling of the spectacular Mazda CX-5 for the first time in the Sultanate, followed by a pre-launch preview of the latest addition to the TAC family - the ZNA range of vehicles. TAC also introduced their multi-faceted team to their customers, who appraised the guests attending the show on TAC’s initiatives to help serve them better. The show also proved to be an excellent platform for obtaining valuable customer feedback.
with flying colours a battery of stringent safety tests conducted by one of the world’s most respected testing agency in the US,” says Mark Tomlinson, general manager of Mitsubishi Oman. In order for a production vehicle to be named a “Top Safety Pick” by the IIHS, an automobile must earn a “good” rating in all of the organisation’s crash test analysis.
ALL NEW NISSAN MICRA LAUNCHED
FOURTH GENERATION CR-V
Suhail Bahwan Automobiles (SBA) recently unveiled the all new Nissan Micra, the zippy & smart compact hatchback. Coupled with its trendy looks, characteristic agility and distinctive lifestyle appeal, Micra is sure to offer a highly-rewarding driving experience to its discerning consumers. The glittering launch ceremony was presided over by Divyendu Kumar, managing director of Suhail Bahwan Automobiles and other key dignitaries.
The all new fourth generation CR-V debuted in Oman recently at a ceremony hosted by Oman Marketing and Services Company (OMASCO). The new CR-V will be available for customers in three different grades* – LX, EX and EX-Leather. Globally, the CR-V has been recognised as a pioneer of compact SUV. Since its first launch in 1996, over five million CR-Vs have been sold, a fact which amply proves its
“The All New Nissan Micra 2012 is a powerful, safe and fuelefficient city car possessing all
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the features required to become the segment leader in the Sultanate,” says Kumar. “With stand-out looks, class-leading driving dynamics and an interior design offering both comfort and convenience, the Nissan Micra is a step ahead of the regular compact hatchback offering”.
global appeal in terms of design, quality, refinement and popularity. Building on this solid reputation, the all new CR-V now enters into its fourth generation with enhanced exterior aesthetics, car like interior comfort, innovative features and a smoother and quieter ride; and is designed to offer urban sophistication and exceed customer expectation of a five-seater compact SUV.
COMBINING VALUE PRICING WITH BRILLIANT QUALITY Following strong sales success with the all-new Peugeot 508 saloon car, European Motors have made the entry level variant – the Access – even more attractive as a purchase proposition in Oman. “The 508 isn’t just another model in the line-up from Peugeot,” says Bob Seshadri, general manager of European Motors. “It represents a combination of sculptural visual appeal in sheetmetal combined with efficient class-leading
powertrain technology in a midsized car. Although, it isn’t an easy task to offer value pricing in a quality package, Peugeot has done it quite admirably with the 508. The 508 is a European prestige luxury car at a Japanese price-point.” Peugeot launched the 508 during its bi-centenary year which also saw the introduction of new design language in a production model.
ALL-NEW JAGUAR SPORTS CAR Jaguar has confirmed that it will unveil in production an all-new sports car called ‘the F-TYPE’, later this year. “The core appeal of Jaguar’s cars is their sporting heart, and that heart will beat stronger than ever before in the F-TYPE,” says Adrian Hallmark, global brand director, Jaguar Cars. “Its development is a vivid representation of the confidence and ambition of the Jaguar brand, and the desire amongst
BMW, MINI SALES UP BY 9 PER CENT Al Jenaibi International Automobiles has reported a 9 per cent increase in BMW and MINI car sales in the first three months of 2012 compared to the same period in 2011. The official importer of BMW Group vehicles in Oman demonstrated its intention to complete yet another successful year by retaining its position as one of the five best performing markets in the Middle East, clearly demonstrating Omani customers’ desire for top-of-therange, premium vehicles. “The increase in our sales confirms the loyalty of our customers and the strength of the BMW and MINI brands
in Oman,” says Rachid Zamani, general manager of Al Jenaibi International Automobiles. “BMW Group vehicles represent high performance, engineering excellence and pioneering innovation, all of which are qualities appreciated and desired by discerning customers in Oman. This factor coupled with an exceptional model portfolio and great customer service makes us optimistic for the months ahead.”
our engineers and design team to produce a world-leader in a market segment that we have been absent from for too long. But no longer – the F-TYPE is coming.” Utilising Jaguar’s industry-leading knowledge of all-aluminium construction, the F-TYPE will launch as a convertible, and a strict two-seater with the focus uncompromisingly on delivering driver reward.
POWERFUL NEW M-CLASS Zawawi Trading Company (ZTC) has launched the completely redesigned and powerful new M-Class luxury SUV recently, setting a new benchmark for the premium segment. The launch took place at Almouj Golf Club, which is the corporate partner of Mercedes-Benz in the Sultanate. With dynamic AMG sports styling as standard, three potent engine options, unparalleled ride comfort, and cavernous, high-quality luxury interiors, the bold new M-Class confidently conveys intent to meet
performance with sophistication. Available from ZTC’s Muscat and Salalah showrooms, in ML 350 and ML 500 variants, a new generation of BlueEFFICIENCY petrol engines boast 306 and 408 hp respectively, and reach triple figure km/h from a standstill in just 7.6 and 5.7 seconds.
ENVIRONMENT
Recycle and reuse In the run-up to its third edition to be held on June 5, Oman Green Awards has teamed up with Oman Marketing & Services Co, to distribute recycle bins for collecting used papers at various schools in Muscat
ABA-An IB World School
O
man Green Award (OGA), Oman’s first environmental award to honour outstanding environmental vision, endeavours and achievements of corporates and individuals, has launched an initiative for paper recycling at various schools in Muscat in association with Oman Marketing & Services Co (Omasco). As a buildup to the third edition of OGA and in line with OGA’s plans to inculcate awareness about conservation and recycling in the society, the initiative is aimed at making students and teachers more conscious about the importance of recycling and reusing papers. As the first step of the initiative, around
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British School Muscat 30 recycle bins were placed at four leading schools in the city to collect used papers from the school premises and send them for recycling. The OGA team visited Indian School Muscat, British School Muscat, Indian School Al Ghubra and ABA-An IB World School to hand over the recycle bins which were received by the principals of the schools along with the environment/ eco club coordinators and students. They were all praise for the various initiatives by OGA to spread the message of conservation and sustainability in Omani society, and especially its attempt to reach out to the students to make them work as the
agents of environmental change and contribute their shared vision for a better future. Congratulating the OGA initiative, Kai Vacher, principal of British School Muscat, said it would help generate more awareness among the students about recycling and reusing. “We are as a school very much committed to recycling. Sustainability is integrated in the curriculum of all students form both primary and senior schools. There are active environmental teams such as green team, recycling team and eco warriors. The children are involved in community environmental initiatives such as beach clean-ups, have links
Indian School Al Ghubra
with organisations outside of school like Oman Botanic Gardens, ECOMAN and ESO and all classes currently recycle paper and plastic containers.” Achuthan Madhav, principal of Indian School Muscat, said the recycle bin presented by OGA will add value to various green initiatives undertaken by the Eco and Health Club in the school. Lalitha Mallya, coordinator of Eco and Health Club, adds, “The activities of the health and environment club can be summed up in its three main objectives: clean school; green school and healthy school. By clean school we mean the cleanliness of the child, class room, corridor and the whole surroundings; we developed the concept of green school to set up gardens for school as well as for each class room. In addition, as part of our healthy school initiative, we make the students bring only Salads once in a week.” Papri Ghosh, principal of Indian School Al Ghubrah, praised the OGA initiative to spread awareness
Indian School Muscat
among students about recycling. “Our school accords more importance to making the student environmentally conscious. The younger minds can produce fresh and genuine ideas to make conservation more effective,” she avers. Explaining the various activities undertaken by the environment club of the school, its coordinator Maleka Ariwala adds, “The motto of our environment club is to recycle, reuse and rethink. From this year onwards we stopped giving plastic bags while selling the books and we asked the students not to cover their textbooks and notebooks with plastic bags. As teachers we all make the students believe that we have not inherited the nature from our forefathers; but we have borrowed it from our forefathers.” ABA-An IB World School which received 15 bins has a total of 14 recycling facilities on its premises, each with specific bins for paper, plastic bottles, aluminum cans, batteries etc. “We have been involved in recycling
for many years now and will continue to do that in the future,” says Terry Storer, principal of the school. The school also has an environmental club.
Into the third edition Oman Green Awards is the ultimate recognition for companies, institutions and individuals in Oman, who demonstrate a commitment towards responsible consumption and sustainable growth. The award honours and celebrates their vision in leading the way to a cleaner, greener tomorrow. The last two editions of the OGA were a resounding success in meeting its stated objectives. The OGA has invited entries for the third edition of the awards which will be announced on June 5, 2012. It is a unique opportunity to be part of a national platform to honour and appreciate outstanding environmental vision, endeavors, initiatives and achievements in the country. The nomination form must be completed and submitted online at www.omangreenawards.com.
TECHNOLOGY
Samsung Electronics, named as the world’s most sustainable technology company in 2011 by Dow Jones Sustainability Index has launched a new range of notebooks and smart televisions in Oman
Cutting edge products
S
amsung Electronics Co, a global leader in digital media and digital convergence technologies, recently launched the new Samsung Notebook Series 5 ULTRA and 2012 Samsung Smart TV lineup in partnership with its distributor, Al Seeb Technical Est. (Sarco), the authorised distributors of the complete range of Samsung products in Oman. The Samsung Notebook Series 5 ULTRA redefines computing experience by offering top of the line performance in a thin, light and stylish device. The Series 5 ULTRA is powered by a second generation Intel® Core™ i5 processor; combined with ExpressCache™ system by Diskeeper and a powerful AMD Radeon™ HD graphics card, delivering an incredible experience packed in a thin and light design. “We are confident, that the launch of the Series 5 ULTRA will further strengthen our notebook lineup and solidify our growing position within the Notebook PC industry,” says Denzil Dsouza, business head of Notebooks. “With the Series 5 ULTRA, consumers will be able to enjoy superior performance, trendy looks and complete portability in a lightweight device and is a full option Ultrabook.” The 2012 Samsung Smart TV lineup
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launched in Oman is set to revolutionise the way we watch television by redefining the way in which consumers manage their home entertainment experience and interact with their TVs. The new family of Smart TVs encompasses Samsung’s three guiding philosophies that equip consumers with the future of Smart TV technology. The first is smart interaction, an intuitive platform based on motion control, voice control, and face recognition commands for the TV. Recognising 26 languages including Arabic, users can turn the TV on or off, activate selected apps or search for content in the web browser simply by speaking and with a wave of hand consumers can turn the volume and channel up or down browse and choose a link or content via the web browser. The second philosophy is smart content that includes the expansion of more robust and personalised content
through smart TV apps, Family Story, Fitness and Kids. The third is the smart evolution technology which is defined by Samsung’s new Evolution Kit in which each year, the smart TV range will be upgradable every year through the evolution kit. Ajay Ganti, CEO of Sarco says, “We are committed to delivering top-of-the-line Samsung products and world-class services to our customers. Samsung has achieved double digit growth in Oman and we believe that these exciting new products will establish Sarco as the leader in consumer electronics distribution in the country.”
BILLBOARD
Autorent attends ATM 2012
Nawras teams up with Grand Hyatt Muscat Nawras has partnered with Grand Hyatt Muscat Hotel to add a new dimension of privileges to Elite Club members. With special discounts on food and beverage and a new restaurant reservation SMS service, the partnership will provide unmatched value to about 500,000 Elite members. Nawras CEO, Ross Cormack said that Elite Club cardholders and future members will gain premium recognition from a number of unique rewards offered. “Grand Hyatt Muscat will play a pivotal role in raising the bar in customer loyalty experiences by providing unparalleled services and advantages for our current and future Elite Club members,” he said. “As the first and only telecom operator with a full-fledged loyalty programme in Oman, we continue to introduce the offers at international standards through our roster of leading partners.”
Suhail Bahwan Automobile Group’s car rental and leasing company, Autorent, participated in the Middle East’s top travel exhibition “Arabian Travel Market 2012” (ATM 2012) which was held in the Dubai International Convention & Exhibition Centre. “We are happy to participate for the third consecutive year at ATM, which shows our success in the Middle East”, says a senior management official of Autorent. “As we have started our Limousines Services Division, this event was helpful in increasing our business opportunities in the GCC as well as globally. We always believe that we are ‘Your Reliable Car Rental and Leasing Partner’ because we give a lot of importance to the words, Reliability and Partnership.” Autorent also has plans to participate in the World Travel Market 2012, which would be held in London in November.
Naranjee wins ‘Best Distributor Award’ Naranjee Hirjee & Co won the ‘Best Distributor Award 2011’ for its distribution and innovative marketing campaign for Wonderful Pistachios in Oman. The award was presented during the ME&A Distributors Conference in Dubai recently. Wonderful Pistachios produced by Paramount Farms, USA were first introduced in Oman and GCC in 2009 and since then have become a popular household name amongst the healthy snacks. Wonderful Pistachios are available in various packing, in three distinct flavours – roasted & salted; roasted salt & pepper and lemon. For the very health conscious, Wonderful Pistachios are also available in no salt flavour. The roasted salt & pepper is a unique flavour, which has become very popular amongst all the brands of pistachios in Oman.
Oman’s first themed Lounge opens Shell Oman celebrates World Health Day Shell Oman Marketing Company organised a free fitness test and aerobic session followed by a complimentary one-month trial at Horizon Fitness for all its employees. Organised on the occasion of World Health Day 2012 which was observed with the theme ‘Good health adds life to years’, the programme received a very encouraging response. The fitness test took place at the Shell Oman head office and included a back check, body composition analysis, RMR test and cardio vascular endurance. This was followed by an aerobics session for beginners and practitioners. Says Essam Ali Al Busaidi, HR & administration manager, Shell Oman, “World Health Organisation is calling for urgent action to ensure that at a time when the world’s population is ageing rapidly, people reach old age in the best possible health. At Shell Oman, health of an employee is our first priority.”
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“Love at First Bite”, Oman’s first themed Lounge, was inaugurated recently by Salim bin Ismail Al Suwaid, member of the State Council. ‘Love at First Bite’ aims at providing a dining experience that brings together three different themed settings: A Sicilian walkway with street lights and a wishing well; a brightly coloured 1001 Arabian night’s tale dining area; as well as a French palace lounge and bedroom. Love at First Bite is owned by Khalid Al Suwaid, a young 22-year old Omani entrepreneur, who has studied in Australia and decided to bring a new experience to the restaurant, entertainment and hospitality industry in Oman.
Sunidhi Chauhan enthralls Muscat
Park Inn named leader in responsible business
Music lovers were treated to one of the biggest musical extravaganzas in Muscat with Sunidhi Chauhan Live in Concert, organised by NPA Events recently at the City Amphitheatre, Qurum. Sunidhi Chauhan opened her concert with her popular song Crazy Kia Re from the movie Dhoom 2 and followed it up with a wide repertoire of popular songs such as Dhoom Machale, Desi Girl, Raat Ke Dhai Baje, Marjani Marjani, Mind Blowing Mahiya, Te Amo and Ainvayi. The versatile singer also mixed in romantic numbers such as Bin Tere, Mera Ishq Sufiyana and Kisi Ko Sapna Lage to the delight of the audience. Her racy numbers such as Aa Zara Kareeb Se, Gunguna Re, Bindaas and Jhoom Barabaar Jhoom also drew a thunderous response from the crowd.
The Park Inn by Radisson Muscat added another feather to its cap, recently receiving the award as the ‘Leading Hotel in Responsible Business’. The hotel was ranked number one within The Carlson Rezidor Group for it efforts in energy consumption and other related initiatives. The Muscat hotel was chosen from over 1300 of its counterpart hotels by the Responsible Business committee at the company’s head office in Brussels, passing the stringent criteria and emerging on top. An award was presented to Rabih Zein, general manager of the Park Inn by Radisson Muscat by Kurt Ritter, president and CEO The Carlson Rezidor Group at Heathrow, London. A separate ceremony was held at the Park Inn Muscat to commemorate the achievement. HE Maitha bint Saif al Mahrouqiya, under-secretary of the Tourism Ministry was the distinguished guest at the event held at the hotel.
Spicy Village's ‘Star Chef Hunt’ menu
Ominvest donates Food for students Ominvest has pledged financial aids to provide food t for less privileged students at Fanja Basic School for Education. The cheque was handed over to the school officials by Ominvest deputy chairman Taya bin Jandal bin Ali, accompanied by CEO, Shariq Azhar, after the company’s recently held annual general meeting. “We are delighted to make this contribution to help provide highly needed food support for the children attending the school in Fanja. We hope that our contribution will make a small, but important, difference to the daily lives of the children,” says Taya. The company was alerted to the problems at the school by the Wali of Bidbid HE Shaikh Suhail bin Mahaad Al Mashni.
Spicy Village has recently launched a menu featuring the best entries from the second season of the ‘Star Chef Hunt’ finale held in November 2011. The menu which was launched at a grand event at Spicy Village, Rusayl is laden with 70 dishes, giving due credit to the participants who made it through the rigorous levels that make up the ‘Star Chef Hunt’. Launched by Spicy Village two years ago, the annual event has become a nationwide hunt giving aspiring chefs of all backgrounds and nationalities in Oman a platform to showcase their culinary skills. The menu features a number of innovative dishes including prawn ciggar with pineapple salsa, chunkey chicken salad, zanzibar fish steak, crab biryani and anti-oxidant dessert.
MARKET WATCH
Superb timekeeping
Stylish and versatile
The watches in the OMEGA Constellation line are among the world’s most popular and instantly recognisable timepieces. One of the brightest new stars in Constellation family is the Co-Axial 27 mm in 18 Ct red gold. It is not only uncompromisingly elegant but equipped with the brand’s proprietary Co-Axial calibre 8521, from OMEGA’s family of mechanical movements widely considered to be among the world’s finest. The luxurious timepiece’s brushed case with polished claws is crafted from 18 Ct red gold. The matching bracelet has brushed links and polished bars set with 144 full-cut diamonds totalling 0.54 carat. The bezel is paved with 32 full-cut diamonds with a total weight of 0.50 carat. The screw-in caseback features a sapphire crystal that reveals the perfection of the Co-Axial movement inside. Canon Middle East has unveiled the latest range of versatile, stylish and easy-to-use PowerShot A series models designed to help users capture impressive images and HD movies. Each model combines Canon’s leading lens technology, a slim and stylish design and a range of stand-out technologies that make taking photos and recording HD movies easier than ever before. The six new Canon PowerShot A series models include the PowerShot A810 and PowerShot A1300, perfect take anywhere cameras that combine Canon’s leading image quality with simple, easy functionality that offers versatile support for shooting everything from family group shots to outdoor events. Perfectly slim and stylish, the new PowerShot A2300 and PowerShot A2400 IS are ideal for style conscious users who want a camera to capture party shots and HD quality movies on nights out.
Invigorating fragrance The popular fragrance brand Bath & Body Works is now available in Oman for the first time, with the complete range of personal care products suitable for the region. The first Bath & Body Works boutique in the Sultanate is now open at the Muscat City Centre. Bath & Body Works is known for its prestigious brand portfolio comprising the most fragrant and invigorating range of eau de toilettes and body mists, body lotions and butters, shower gels, room fragrances and scented candles that have been voted the world’s best in their category. The exciting range of exclusive Bath & Body Works brands available at the Muscat City Centre includes the Signature Collection, the world’s greatest breadth and depth of wearable, fashionable fragrances; the home fragrance range offered by Slatkin & Co.; an unparalleled Anti-Bacterial collection; personal care products from CO Bigelow; the Aromatherapy collection and the True Blue Spa range.
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GIZMOS
Liquid Glow smartphones The new Acer Liquid Glow line up, which is due for release early this summer, will come equipped with NFC technology, to allow instant sharing of content with other NFC-enabled devices. The phone will have a 3.7 inch screen, soft touch coating and be available in three colours, Sakura Pink, Alpine White, and Cat’s-eye Black. The Liquid Glow has a 5 MP rear facing camera, with LED flash for low light, as well as panoramic image capture and touch focus. The phone will include a user-friendly interface along with widgets to easily stay connected, entertained and updated. It also works with the latest voice-input engine from Google.
Sleek look and Android brain Motorola has launched its new Motoluxe handset in the Middle East. The phone features a 4-inch edge-to-edge touchscreen, with 8-megapixel autofocus camera.The Motoluxe runs on Android 2.3, and the phone includes GPS and Bluetooth. It also features the MotoSwitch user interface, with features including social graph capable of learning which contacts you are in touch with the most, and using that information to present a customised home screen, and an activity graph that focuses on the most used apps;
Complete media storage solution
automatically changing customised menus to
Sony has recently launched ‘nasne,’ an advanced network recorder and
show the most frequently
content storage facility with an integrated hard disk drive of 500GB.
used apps. The phone
The device features digital terrestrial and satellite broadcast tuners that
also has music now for
will let you watch digital terrestrial or satellite content and record them
music, a smart gallery to
easily. The ‘nasne’ works with PlayStation 3, VAIO computers, PS Vita
display favourite pictures
and Sony Tablets. Using dedicated applications like ‘torne’ and ‘VAIO
as collections, and an
TV,’ you can utilise the device to watch and record content respectively
illuminated lanyard slot
on PS3 and VAIO. The device further allows you to watch recorded
that shows when new calls
content from PS Vita, Sony Tablets and Xperia phones as well. In short,
or messages have been
you can enjoy digital content in a variety of forms and methods using the
received.
new Sony product.
GOLFUPDATE
Youngest golfer Guan Tian-lang, the junior world champion from China, became the youngest player in European Tour history when he teed off in the Volvo China Open, aged 13 years and 173 days
G
olf in Asia continues to grow at a significant rate but its progress cannot match that of the Chinese Guan Tianlang who shot a five-over-par 77 as he became the youngest player to compete on the European Tour. The Chinese amateur, who is 13 years and 173 days old, bogeyed his first hole at the China Open and dropped four more shots in his next five. However, although Guan beat the record of Lo Shik-kai, who was 107 days older at the 2003 Hong Kong Open, he has missed the chance to become the youngest player to make the cut in a European Tour event. He missed the cut by 10 shots, finishing on 12 over par. Guan, who has been playing golf since the age of four had claimed numerous age-group titles around the world including last year’s World Junior crown in San Diego by 11 shots after a nine-under-par 63 on the opening day. He qualified for Volvo China Open in Tianjin after finishing fourth in the mid-China qualifying event in Hangzhou. “I really couldn’t be happier. I’m so
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excited right now, it is like a dream come true,” Guan said. “My goal now is to be the youngest player ever to make the cut in a European Tour event and I think if I can shoot level par or better I’ll have a good chance to do that.” Guan has played in numerous international amateur events and is set to play in the Australian Open and Australian Masters at the end of the year after winning the Aaron Baddeley Invitational in December. He also matched the 14-times major winner Tiger Woods when the pair played one hole during the pro-am event at the HSBC Champions in Shanghai in 2011. The former world No1 hit a four-iron to eight feet on the 212-yard par-three 17th and Guan followed him by striking a three-wood to within 10 feet. Alistair Polson, operations director of the Volvo China Open, said that the teenager generated plenty of interest. “Anyone who has seen Guan play would not rule him out from making the cut – he really is a talented young player,” he said. “He displays a maturity well beyond his 13 years and
doesn’t seem fazed by spectators or the media attention he has received. “Being a local player I expected he would receive a lot of attention so I hoped he would do well and give the fans something to cheer about.”
10 足 13 June 2012
d an de g nd 2 0. r a 01 0 g co terin te y 2 3 n s gis a S $ oki gi Re 4 M U bo n re y 2 p to rity whe yb u io pa ve r pr OER sa ou 008 e y 0. ot 47 Qu _12 E IA
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BROWSINGCORNER
The destination for books, gifts and novelties. Stores at Muscat International Airport – Arrival, Departure Landside, Airside Departure, Jawharat A’Shati and The Wave.
Connecting the dots The book under review is a well researched account of one of the greatest visionaries to have ever walked this earth and it does adequate justice to its subject. An OER review
K
aren Blumenthal is a critically acclaimed children’s non-fiction writer and a long-time journalist for the Wall Street Journal. She is the author of Bootleg: Murder, Moonshine, and the Lawless Years of Prohibition, which received four starred reviews, Six Days in October: The Stock Market Crash of 1929, which was a Sibert Honor Book, and Let Me Play: The Story of Title IX, which won a Jane Addams Children’s Book Award. Though Issac Walterson’s authorised biography of Steve Jobs has been getting most of the attention, Blumenthal’s Steve Jobs: The Man Who Thought Different is an equally incisive and perceptible account of this legendary figure.
Down memory lane From the start, Steve’s path was unpredictable. He was given up for adoption at birth, dropped out of college after one semester, and at the age of twenty, created Apple in his parents’ garage with his friend Steve Wozniack. Then came the core and hallmark of his genius--his exacting moderation for perfection, his counterculture life approach, and his level of taste and style that pushed all boundaries. A devoted husband, father, and Buddhist, he battled cancer for over a decade, became the ultimate CEO and made the world want every product he touched. Blumenthal takes us to the core of this complicated and legendary man while simultaneously exploring the evolution of computers. Framed by Jobs’ inspirational Stanford commencement speech and illustrated throughout with black and white photos, this is the story of the man who changed our world. Blumenthal weaves her portrait on the thematic frame used by Jobs himself in his autobiographical 2005 Stanford commencement address. She ‘connects the dots’ that led him from his adoption as an infant through his ‘phone phreaking’ days to a spectacular rise and just as meteoric fall from corporate grace in the 1980s.
Following a decade of diminished fortunes and largely self-inflicted complications in personal relationships, he returned to Apple for a spectacular second act that also turned out to be his final one. Despite getting bogged down occasionally in detail, the author tells a cohesive tale, infused with dry wit (‘He also considered going into politics, but he had never actually voted, which would have been a drawback’). The book takes one through the roller coaster ride life of Steve Jobs, the genius, maverick, rebel and visionary. The book is thoroughly researched and clear on the subject’s foibles as well as his genius. A perceptive, well-wrought picture of an iconic figure well worth admiring – from a distance.
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