Spring in the air
No 134
September 2011
EDITORIAL Editor-in-Chief HH Sayyid Tarik Bin Shabib Group Editor Mayank Singh Assistant Editor Visvas Paul D Karra Sub Editor Muhammed Nafie DESIGN Senior Art Director Sandesh S. Rangnekar Senior Designer M. Balagopalan Senior Photographer Rajesh Burman Photographer Motasim Abdulla Al Balushi Cover concept Chanjeet Singh Production Manager Govindaraj Ramesh MARKETING Business Head Jacob George Senior Advertising Manager Avi Titus Advertising Manager Arif Abdul Bari Assistant Advertising Manager Sanjeev Rana CORPORATE Chief Executive Sandeep Sehgal Executive Vice President Alpana Roy Vice President Ravi Raman Senior Business Support Executive Radha Kumar Business Support Executive Zuwaina Said Al-Rashdi
IN THE ASCENDANT
L
ook closely and the signs of an economic turnaround are clearly visible -- there are cars sporting green number plates; sale of consumer durables are up; and the average billing per customer at hypermarkets has gone up. Ironically, the seeds of this recovery lie in the wave of protests that the Sultanate saw in the first quarter of 2011 and the subsequent efforts taken by the government to address protestor concerns. The creation of new jobs for the national workforce, raising of minimum salary levels, unemployment allowance provisions and increase in social security benefits have enhanced the spending power of the beneficiaries of such measures, helping business. Corporate results of the first half of 2011 reflect a turnaround with MSM 30 companies posting a robust topline performance. The banking and industry sectors have surprised analysts with their numbers. Though bottomlines are still under pressure, one can expect things to improve on a sequential basis in the third quarter. The Standard & Poor’s downgrade of the US from a triple A rating to a AA plus on August 5, saw stock markets plummeting across the globe. Coming on the heels of the Euro zone’s debt crisis, this is the last thing that the world economy needed. An inability to rise above petty political grandstanding by the Republicans and the obduracy of President Obama saw fears of the US reneging on its financial commitments for the first time in its history, stretching on till the eleventh hour and fifty ninth minute. While the impact of the downgrade may not impact the global economy as adversely as the sub-prime crisis, in an interconnected world, no country can remain completely unscathed from global cross currents. One hopes that the strength of the Sultanate’s economy, helps it to withstand the fallout with minimal collateral damage.
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OER Special – Education Review
Mayank Singh
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 © 2011 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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September 2011
OER -magazine
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EVENT
Celebrating Success The Al Mar’a Excellence Awards will honour and felicitate women who have excelled against all odds to reach top positions in diverse fields and also enriched the lives of those around them
I
t takes that ‘extra’ something to truly shine above the rest and Omani women, more so than others, have shown what passion and conviction can help one achieve. And now, it’s time for us to celebrate the women who’ve not only dared to dream but have gone the extra mile to prove their commitment towards serving and enriching their communities and society at large. In October, the Al Mar’a Excellence Awards will felicitate these women who have inspired those around them with their vision and accomplishments. All eyes will be on those who’ve gone the extra mile to turn their dreams to reality; who have conquered the odds and have reached challenging positions in diverse areas including business, government, industry, education and more. Al Mar’a has always celebrated the various shades of a woman and staying true to this dictum, the Awards have been designed to range across 12 categories, namely: Corporate Leadership, Fashion Design, Performing Arts, Fine Arts, Educational Services, Entrepreneurship and Innovation, Health Services, Science and Industry, Technology, Sports, Petroleum Services and Social Responsibility. Apart from these, two women will also be the recipient of the prestigious Woman of the Year and Most Promising Woman of the Year Awards. The Awards
will judge women on the basis of criteria like innovation and creativity, the impact their contributions have had in society, their leadership abilities and the goals achieved and the final ranking process with be appraised by our official auditing partners, Ernst & Young. In the light of this, we invite you to submit the names of women who you think are powerful examples and have made a positive impact in our society as well as their respective fields. Nomination forms are available online (www.applauseeventsme.com) and at selected retail outlets, which will then have to be submitted with your (or your nominee’s) supporting documentation at United Media Services, Ruwi. Winners will be announced at the Al Mar’a Excellence Awards, on October 26, 2011 at Shangri-La’s Barr Al Jissah, Resort and Spa. Ladies, it’s your time to shine! The Al Mar’a Excellence Awards is an Al Mar’a Initiative. Official Auditing Partners: Ernst & Young. Strategic Partner: Mercedes-Benz (Zawawi Trading Company, the authorised general distributor for Mercedes-Benz in Oman). Media Partners: Times of Oman & Al Shabiba. Radio Media Partners: Al Wisal FM and Merge 104.8 FM
relations between Oman and India. Historically, Oman and India had a strong trade partnership, and this continuing business association reached its highest level in multiple spheres of development. Over the past years there have been several initiatives between the two countries which have contributed to reinforcing the economy of both countries.
ENHANCED RELATIONS The interview with HE Anil Wadhwa, Ambassador of India to the Sultanate, (‘Take off stage’, August, 2011) was a true summary of the strengthening trade 4
September 2011
According to a recent report, the bilateral trade between Oman and India has crossed $ 4.5bn for the 12-months period ending March 2010, which obviously shows the positive sign of improved trade relations between the two countries. Besides food grains, modern India is well positioned to export other commodities to Oman which include electronics, heavy equipment, machinery etc. India
has also demonstrated its competency in modern technology to be implemented at different phases of development. As far as Oman is concerned, India’s potential in the field of human resources and development contributes to determining the country’s budding talents and there exist plenty of opportunities for renowned Indian educational institutions to have partnership with Omani counterparts. The enhanced relations of Oman and India are truly reflecting on HE Anil Wadhwa’s diplomacy skills as his tenure has witnessed development at its high in every aspect. Ramachandran Nair, Ruwi
Write to us with your comments/ feedback at: editor@oeronline.com
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INSIDE
REAL ESTATE
20
34
Realty business models A number of players in the real estate industry have adopted the business model of vertically integrating and participating on all legs of the value except for designing
PERISCOPE
38
The global crisis and GCC shares The market convulsions of August 2011 is expected to cast a long shadow on the emerging markets, including the GCC stock exchanges
STOCK MARKET
Nowhere to run
Following the downgrading of the US credit ratings by S&P, stock markets went into a tizzy. The impact was felt in Oman as well
44
PORTS POR
Nico Vi Ni Vincart,t PProject j tM Manager, JJan De Nul Dredging speaks about the company’s role in building and upgrading of the Duqm port complex
80
BEYOND BOARDROOMS
Empowering growth
Chris Edwards, General Manager, Dhofar Automotive, is looking at steering the new company to new heights
September 2011
Going beyond World renowned economist Prof Jeffrey D Sachs speaks about the challenges facing the world economy and sustainable development
C O V E R
Anchoring the way
6
40
CLOSE UP
INTERVIEW
42
S T O R Y
A RETURN OF
CONFIDENCE
Return of inflationary pressures Steady oil prices together with the declining value of the US dollar are rekindling fears of renewed inflationary pressures
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2 6
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2 5
S e p
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INSIDE
AUTO TALK
RANGE ROVER
50
CSR
52
ECONOMY
54
GOLF UPDATE
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68
By Kannan Murali
Thinking out of box ‘The Box Appeal’, a one month charity campaign by Radisson Blu and Park Inn hotels, seeks to help over 10,000 people across the Middle East
Energy boost How is the Sultanate planning to meet its growing utilities need in the short term and long term?
Going Stronger Ross Cormack, CEO, Nawras, feels that OER CEO Golf is an event, which has always clubbed golf and networking in the same breath
SPOTLIGHT
Be the sentinel of your heart World Heart Day is commemorated on September 29 every year to inform people around the globe that heart disease and stroke are the world’s leading cause of death, claiming 17.1 million lives each year
Editorial
2
Legal
58
Browsing Corner
71
Auto News
72
Billboard
74
Economy Watch
10
Business Briefs
12
Executive Movements
18
Event
48
Environment
56
Market Watch
78
Education
57
Gizmos
79
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CARTOON CORNER
September 2011
BACK LCOME WE
ECONOMYWATCH
NUMBERS
Slump in hospitality industry The long term repercussions of the recent unrest in Oman and the wider region are difficult to predict but there have been noticeable impacts on the hotel and securities sectors. The economy as a whole, however, is continuing its recovery from the impact of the global financial crisis. After showing signs of growth early in the year, the performance of the hotel sector in Muscat has slumped following events at the end of February. Performance indicators for February saw a noticeable improvement in comparison to the same period in 2010 with occupancy rising to 76.6 per cent from 70.8 per cent and Revenue Per Available Room (RevPAR) increasing from $178 to $211. March, however, saw occupancy reduced to 59.5 per cent in comparison to 69.1 per cent in March 2010 and RevPAR shrank to $147 from $170 in March 2010. This trend has continued into April with occupancy for the month down to 53.1 per cent from 66.9 per cent in 2010.
Average rental values 14
500
12
Annual revenues and occupancy
4 2 0
2009
2010
2011
Supply of rooms
180
40
160 140
30
120 100
20
Supply of rooms
Five star
2010
2009
Occupancy (per cent)
0
Four star
annual revenues
2008
0
2007
20
10
Three star
40
Two star
60
One star
Supply of rooms
80
2006
Omani Rials per annum (000,000)
6
Shatti Al Qurum
Saud Bahwan Plaza
Tila Complex
0
Al Rawaq
100 Beach Plaza
Sq m (00)
200
8
Al Khuwair
300
10
Qurum
400
Omani Rials per sq m per month
600
CBD
Office supply
Sources: Cluttons Oman Property Update
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September 2011
Nawras wins ‘Innovation in HR’ award GULF AIR’S NEW CARGO MANAGEMENT SYSTEM Gulf Air, the national carrier of the Kingdom of Bahrain, in its dynamic efforts towards revamping its systems and processes to provide enhanced service to customers, has introduced Cargospot- a fully modernised cargo management system. Cargospot is a fully integrated end-to-end cargo management solution to manage the airline’s cargo business from booking, pricing, sales to accounting - providing enhanced services for both- clients and Gulf Air.
AIR ARABIA, AL ANSARI SIGN DEAL Air Arabia has signed a strategic partnership agreement with Al Ansari Exchange, the UAE’s largest network exchange house that provides worldwide remittance and foreign exchange services. Under the terms of the partnership, Air Arabia customers can now pay for their tickets through any of the over 100 Al Ansari Exchange branches across the UAE.
OMAN AIR OFFERS HOLIDAY TRIP TO UK Oman Air Holidays is offering motor racing enthusiasts the trip of a lifetime this autumn, with an exclusive package to the iconic Silverstone circuit in the UK, where the finale of the Porsche Carrera Cup GB will decide the Championship rankings for 2011. The five-day, three-night trip includes return flights from Muscat to London Heathrow on one of Oman Air’s award-winning Airbus A330s, accommodation at the Pestana Chelsea Bridge Hotel in the heart of London. 12
September 2011
Nawras won the award for ‘Best Innovation in HR’, at Asia’s Best Employer Brand Awards held recently in Singapore. Ayesha Al-Shoily, Nawras graduate and soft skills manager, accepted the award which recognised the company’s HR strategy that is an important part of the way the Nawras family works. Since Nawras was launched in 2005, the company has placed great emphasis on its people, their training and development. Beginning as a mobile company with around 250 people, Nawras today is a publicly listed, full services telecommunications company with over 1,100 members. “Almost 800
entries from across Asia were scrutinised by the 11 judges, so this award is testament to the tremendous work that has been invested by
our HR team as part of the successful growth of the Nawras family,” says Kumail Al Moosawi, director of people.
Agreement for Block 40 signed The government of Oman and Petrotel Oman Offshore signed an exploration and production sharing agreement for Block 40. The offshore block is situated in the Musandam area and covers an area of 6,120 sq km. HE Dr Mohammed bin
Hamad Al Rumhy, Minister of Oil and Gas signed the agreement on behalf of the government while Dr Anil Chopra, chairman of Petrotel Oman Offshore signed on behalf of the company. The commitments of the company are to conduct geological
and geophysical studies, reprocess old seismic and acquire 2D seismic. Based on the result of geological, geophysical work and seismic project the company will drill wells during the period.
BankMuscat launches ‘use and win’ campaign Coinciding with the high-spending month of Ramadhan, BankMuscat has launched a credit card campaign aimed at rewarding and attracting new and existing cardholders. The exciting ‘use and win’ campaign offers BankMuscat credit cardholders a chance to win RO100 daily. During the campaign period from August 10 and October 7, the more one spends on the
card, the better the chances to win the daily cash reward. The offer is valid for credit cards only.Tariq Atiq Khan, head - cards and e-payments, says: “Having created the best value proposition for BankMuscat cardholders, the new campaign unfolds exciting daily rewards for them. The ‘use and win’ credit card campaign is aimed at motivating a change in consumer
behaviour that makes ‘payment by cards’ both a habit and a preference.
RIM, Oman Mobile launches new BlackBerry BANKMUSCAT HOSTS ISLAMIC BANKING COURSES BankMuscat recently conducted a series of customised Islamic banking courses. The Learning and Development solutions for staff came as part of the bank’s commitment to launch Islamic banking products and services in accordance with the directives of His Majesty Sultan Qaboos bin Said. The courses were conducted by expert facilitators from SHAPE Financial Corp.
OASIS WATER WINS CERTIFICATION NSF International, a global public health organisation that certifies products and writes standards for food, water and consumer goods, announced that Oman Oasis Balanced Drinking Water and Oman Oasis Oxiplus Drinking Water – bottled by the Oasis Water Company of Oman – have earned NSF Bottled Water Certification. To achieve NSF Certification, the plant located in the Muscat-Rusayl area of Oman underwent a rigorous audit to verify that the bottling facility met all certification requirements.
AL AHLAM WINS STAR AWARD For the third year running, Al Ahlam Training Services has been shortlisted by Study Travel Magazine (UK) for a prestigious Star award for the Middle East & Africa region. Established in 2002, Al Ahlam is Oman’s leading education advisory office for the UK and Ireland. Their reputation has been built on high levels of customer service, in particular for providing detailed information on English language, University pathway and degree programmes. 14
September 2011
Communications), a new technology that is enabling many new and exciting capabilities, including the ability to pair with NFCenabled accessories or read SmartPoster tags with a simple tap of the smartphone.
Research In Motion and Oman Mobile announced the launch of the new BlackBerry® Bold™ 9900 smartphone in the Sultanate which was made available in Omantel and Oman Mobile stores from August 25. The BlackBerry Bold 9900 is the thinnest BlackBerry smartphone yet at only 10.5mm, and the first to offer the perfect union of a high performance keyboard and touch display integrated within the iconic BlackBerry Bold design. The new BlackBerry Bold 9900
is also the first BlackBerry smartphone to include built-in support for NFC (Near Field
Distinguished by its beautiful design, amazingly effective keyboard and brilliant touch display, the BlackBerry Bold 9900 is crafted with premium materials including a brushed stainless steel frame that puts the finishing touch on a truly outstanding smartphone.
BankDhofar offers mobile trading on MSM BankDhofar has upgraded its software systems and processes in its Investment Banking Division. April 2011 saw the bank go live with its new brokerage platform Tradenet. The new trading platform is directly integrated with the Muscat Securities Market and the core banking system. The connectivity to GCC markets through
the Reuters Order Routing Network enables its clients to directly deal in multiple markets in the GCC and multiple currencies. The new system is capable of expanding to include global markets. This initiative is close on the heels of the new core banking application FINACLE which
was implemented in July 2010. BankDhofar is the first bank in the Sultanate to offer mobile trading. In addition to trading on Muscat Securities Market, the clients will soon be able to have direct access to the GCC markets. Acting CEO Mohammed Redha Jawad says, “We are the first bank to offer Mobile trading in Oman.”
GlassPoint to build solar EOR for PDO Building on the launch of its solar enhanced oil recovery (EOR) project with Berry Petroleum earlier this year, GlassPoint Solar announced the award of a contract to build a 7 MW solar EOR system for Petroleum Development Oman (PDO), the largest producer of oil and gas in the Sultanate. The PDO will use the GlassPoint
system at an existing thermal EOR project in southern Oman. The goal of solar EOR is to reduce the amount of natural gas burned for thermal EOR, releasing gas for higher value applications, including power generation, desalination, industrial development and export. “After extensively researching
solar EOR solutions, we’ve identified GlassPoint as the most promising technology for this pilot,” says Dr Syham Bentouati, PDO corporate technology advisor. GlassPoint’s solar steam generators have the potential to release valuable natural gas for use in higher-value applications within the Sultanate.
Turkish delegation visits PAIPED HE Dr Salem bin Nasser Al Ismaily, chairman, Public Authority for Investment, Promotion & Export Development (PAIPED) hosted a high-profile Turkish trade delegation led by HE M Hayri Erol, the ambassador of Turkey to the Sultanate, recently. The delegation seeks to to strengthen business ties between Oman and Turkey and promote trade and investment. Discussions focused on the current international business environment and the opportunities that exist in Oman for construction, tourism, manufacturing, logistics and high tech businesses. Turkey enjoys deep relations with the GCC countries. Historically, Turkish contractors have had a long-standing presence in the region. “As Europe’s fastest growing economy, I fully expect Turkey to become more closely integrated with Oman and other GCC countries,” says HE Dr Al Ismaily.
real watches for real people
Carrefour to open outlet in Muscat Grand Mall
Al Madina Real Estate and Development has announced that Carrefour will open its fourth outlet at Muscat Grand Mall and will be the mall’s anchor store, joining other international brands to become part of Muscat’s newest shopping mall – due to open before the end of this year. The new Carrefour will be more compact but will still provide shoppers with everything they have come to expect from the Carrefour brand in a convenient, comfortable and easy shopping environment. Carrefour will be situated on the ground floor of the Mall providing visitors with quick and easy access to one of the region’s most popular brands. Talib Al Balushi, country manager, Majid Al Futtaim Holding says, “Muscat Grand Mall provides us with the avenue for our convenient Carrefour store and we will act as an anchor store for the new mall.”
Oris Artelier Complication www.oris.ch
Haya Water develops largest STP plant in region BANK AL IZZ TO OPERATE AS AN ISLAMIC BANK Al Izz International Bank has been given a licence to operate as an Islamic bank in Oman, following a decision to open the country’s doors to the fast-growing industry, according to a central bank official. Ali Hamdan al-Raisi, vice president of central bank, says Bank Al Izz is one of the two financial institutions that have been granted approval from the central bank to open as a fullyfledged Islamic institution.
VISA EXPERIENCES DEBIT GROWTH IN OMAN Visa, one of the world’s leading payment solution providers, has announced growth in its debit business in Oman over the past 12 months, after introducing measures to improve the payment experience for cardholders by providing increased debit card capabilities and convenience. Visa has boosted debit card payments volume (payments plus cash) by 38 per cent.
SEVENTH NAWRAS GOODWILL JOURNEY BEGINS The seventh edition of Nawras Goodwill Journey, the largest annual corporate social responsibility initiative by Nawras, was flagged off at the Child Care Centre, Al Khodh. Chief guest, HE Sheikh Mohammed bin Said bin Saif al Kalbani, Minister of Social Development, joined Nawras CEO, Ross Cormack, chief strategy officer, Abdulla Al-Rawahy and members of the media to flag off the Nawras convoy of volunteers. Every year since 2005 the Nawras Goodwill Journey has travelled thousands of kilometres to visit many different charitable organisations across the country.
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September 2011
Haya Water announced details of the scope and scale of its world class water reuse system which is considered the first and largest submerged Membrane bio-reactor treatment plant worldwide. The plant was opened officially and put into full operation in February this year. The company has been committed since the outset to ensuring that it has incorporated the most advanced and sophisticated sewage treatment technology
into its project that will transform Muscat and help make it a better city for now and in the future. The Al Ansab treatment plant includes the world’s largest submerged membrane bioreactor system with a capacity to handle upto 54,000 cubic metres of effluent every day that will double to 110,000 cubic metres a day when
Phase 2 of the project is completed. The plant, which is now up and running, receives sewage from the tanker discharge area and the newly constructed central pumping station in Al Azaiba area.
City Cinema to open in Muscat Grand Mall Muscat Grand Mall has announced that City Cinema, part of the Oman Arab Cinema Company Group, will be opening their fourth cinema at Muscat Grand Mall before the end of this year. The new cinema will be
offering those looking for the very best in entertainment 300 seats across 3 screens showing movies in 3D and 4D - making it one of the most technically advanced cinemas in Muscat. Aqeel Jawad Abdulredha Sultan,
group managing director, Jawad Sultan Group of Companies says; “We are delighted to be joining Muscat Grand Mall to bring the people of Muscat the most technically advanced entertainment in the City.
Hamptons to market Zahrat Al Khareef Iskan Oman Investment Company is partnering with leading property management and consultancy firm Hamptons International to be one of the sales agent for its prestigious ‘Zahrat Al Khareef - Dhofar’ real estate development in Dhofar governorate. a sales agency agreement to this effect was signed recently at a ceremony attended by senior representatives from the two companies. The formalisation
of the agreement effectively brings into play the formidable expertise and resources of Hamptons International in the successful marketing of a truly
landmark development in one of Oman’s fastest growing regions. Set in the lush Al Wadi area of Salalah, ‘Zahrat Al Khareef - Dhofar’ is a one-of-a-kind residential complex that comes with the convenience and security of living in a gated community. Covering an area of approximately 29,000 sq metres, the project offers a total of 586 living units in a mix of 1, 2 and 3-bedroom and duplex apartments.
Empowered by Performance
SA, Vale and Orpic to maintain Falaj Al-Qabail PORT OF SALALAH TO HAVE DEDICATED TAXI SERVICES The Port of Salalah announced the start of dedicated taxi services for visitors to the port. The taxi service will have its own stand, ticket counter, washrooms, coffee shop, shaded waiting area and parking spaces for 35 taxis and four mini busses and will offer passengers and crew of visiting vessels Municipality governed rates to ensure continuity and fairness in pricing. The management of the taxi stand will be provided by the Port’s HSSE department in conjunction with the Dhofar municipality and the Royal Oman Police.
Dr Nasser Saidi, Executive Director of Hawkamah Institute for Corporate Governance, has been appointed to the Private Sector Advisory Group (PSAG) of the Global Corporate Governance Forum (GCGF), an institution of the World Bank driving global corporate governance reforms. Dr Saidi says, “This appointment constitutes a landmark for Hawkamah and the region.” 18
September 2011
Sohar Aluminum, in association with Vale Oman company and Oman Refineries and Petrochemicals Company (Orpic), signed an agreement for maintaining the Falaj Al Qabail Maintenance Project in Sohar. The project is part of the efforts by these companies in developing and serving the local community and is in line with the companies’ commitment towards corporate social responsibility in AlBatinah Region. The signing ceremony, held at Al Sharia Area in Falaj Al-Qabail, was attended by Sheikh Naif Bin Homoud Al-Mamari, assistant Wali
Sulaiman bin Mohammed Al Yahyai has been appointed as vice chairman of BankMuscat. He served as Director for the past 15 years. Among the varied roles, he is a director and chairman of the audit committee of BMI Bank, Kingdom of Bahrain. Al Yahyai holds an MBA from the University of Wales, certificate in asset management from Switzerland (2002), and a certificate in financial crisis from Harvard University.
of Sohar; Sultan Al Issai, assistant director general of the department of regional municipalities and water resources in Al-Batinah North, sheikhs, dignitaries, Falaj owners and representatives from Sohar Aluminum, Vale
Al Hassan Group has appointed Akos Naar as general manager for its manufacturing strategic business unit, comprising Al Hassan Switchgear Manufacturing Co, Al Hassan Power Industries and Al Hassan Lighting and Fan Industries. With over 20 years of experience in power engineering and automation technologies, Naar will be responsible for Al Hassan’s strategy to grow its share of the switchgear market.
and Orpic. Falaj Al Qabail gives the residents of Falaj Al Qabail village underground water for their farms and animals. The project will promote the Falaj as a touristic destination and will also conserve the Omani heritage.
Port of Salalah has appointed Bobby Varghese as the new chief finance officer at the Port. Bobby Varghese has been working for the AP Moller-Maersk Group since 2003. Bobby holds a Commerce degree from the University of Kerala in India and ACA from the Institute of Chartered Accountants of India and a Certified Public Accountant (CPA) degree from the American Institute of Certified Public Accountants.
Sohar Steel LLC SIPC , Plot no 11 PB no 452 , PC 322 , Majees, Oman Tel: +986 26850205,Fax : +968 26850204 Email: info@soharsteelsms.com Web:
www.soharsteel.com
Marketing OfÀce The Middle East Traders (Oman) LLC PB no 406 ,PC 114, Muttrah , Oman Tel: 24590694 /95 /96 , Fax: 24590496 Email: sssrmsms@omantel.net.om
Sharq Sohar Steel Rolling Mills LLC Sohar Industrial Estate , Road no 6 PB no 12 (SIE) , PC 327 , Sohar, Oman Tel: +968 26751567 ; Fax: 26751569 Email : sssrm@omantel.net.om
PB no 12 (SIE) , PC 327 , Sohar, Oman Tel: 26751405 ,26751208, Fax 26751249 Email: ecp@soharsteel.com weldmesh@soharsteel.com
Middle East Conversion Industry LLC Sohar Industrial Estate
BY SUDHAKAR REDDY
REAL ESTATE
Realty business models A number of players in the real estate industry have adopted the business model of vertically integrating and participating on all legs of the value except for designing
I
n any industry, different players adopt different strategies depending on their strengths. Thus one can draw a strategic map of an industry and find that different players occupy different positions on the map. The real estate industry in Oman is no different. The two variables on which a strategic map can be drawn are size and the degree to which each player participates in the various legs of the value chain. The value chain itself can be drawn as follows There are companies that participate on all legs of the value chain except perhaps designing and there are industry players who outsource everything and only fund the project. There are even players who just buy a property after is it completed and let out. Integrated Tourism Projects (ITP) are a good example of players participating in sourcing the land, preparing a design brief, funding it and selling it. The actual construction, which is labour intensive and requires deep core competencies in the case of large projects, is outsourced. The designing is also outsourced since it gives access to the best architects
20
September 2011
Source land
Prepare a design brief
Design a building
Fund it
Construct it
Manage it/ Sell it
ITP / Large Projects Pension Funds
Size
The author is General Manager, Al Habib & Co.
Small Retail Investors
Small & Medium Size Developers
Degree of Integration
in the business. Large projects although they are not ITPs have a similar business model. A number of players have adopted the business model of vertically integrating and participating on all legs of the value except possibly designing. Here again returns are attractive but only if there are significant competencies a player possesses in all parts of the value chain. This business model, which is a successful one, has a size limitation as very large projects cannot be developed on this model owing mainly to the fact that construction is labour intensive and cannot be scaled up or down with time. Thus players who have adopted this model are small and medium size property developers. Another strategy is simply to
buy properties after they are built and leased. The advantage of this model is that most of the risks are eliminated since the project is completed and leased out. However, lower risks go with lower returns. Pension funds follow this model although some of them have also been developing their own properties in order to get higher returns. The returns depend on the degree of vertical integration but more importantly on the degree of competence a player has in the parts of the value chain that it has decided to participate in. This is critical and must be understood clearly. Players with a similar business model can end up with vastly different returns depending on the degree of competence they have in their chosen activities.
COVERSTORY
22
September 2011
COVERSTORY
A RETURN OF
CONFIDENCE
Creation of new jobs, higher salaries and enhanced government spending is generating momentum in the Sultanate’s economy as reflected in the corporate sector’s performance during the first six months of 2011. A report by Mayank Singh
A
l-Seeb Technical Establishment (SARCO), the distributors of Samsung products in Oman witnessed a 40 per cent year-on-year (YoY) growth during the first six months of 2011 (H1’2011) compared to the corresponding period in 2010. This growth was largely driven by the sale of IT products like notebooks, laptops, printers; mobility solutions (smart phones, tablets) and the audio video segment. The Zubair Automotive Group has seen a brisk sale of vehicles in H1’ 2011 and it expects to close the years with better numbers than 2009 and 2010. Encouraged by this success, the group has launched a range of new models in the market. Al Jazeera Steel Products Company has seen a 27 per cent growth in production and 30 per cent rise in sales during H1’2011. It’s revenues shot up by 46 per cent and profits are up by 86 per cent. The improvement in the GCC markets, strong demand from North American markets for its tube mill products and its larger spectrum of offerings have all contributed to its sterling performance. Ahli Bank, BankMuscat, Bank Sohar and National Bank of Oman have seen their total revenues
grow by 39.5 per cent, 20.5 per cent, 20.1 per cent and 12.1 per cent respectively during H1’2011. Their net profits too are up by 30.3 per cent, 21.7 per cent, 14.8 per cent and 16.9 per cent respectively. Gross loans and advances, customer deposits and savings deposits have all seen a steep increase. Shell Oman Marketing Company’s total revenue increased from RO156.30mn in H1’2010 to RO185.36mn in H1’2011 – an increase of 18.6 per cent. Net profit too jumped from RO7.2mn in 2010 to RO7.9mn – a spike of 9.6 per cent. The oil retailing major’s other financial ratios are equally impressive – gross profit margins stood at 10.3 per cent, total shareholder returns at 11.7 per cent, while return on average capital employed was 60 per cent. The examples mentioned above point out a single truism about Oman’s business environment – while the empty half of the glass may be occupying more mind space, the glass is actually half or more full. Different companies from diverse sectors operating across multiple markets in Oman are seeing strong growth and demand. On an aggregate basis the total revenues of the MSM 30 companies grew from RO1,298.93mn in H1’2010 to September 2011 23
COVERSTORY
The economic conditions in Oman continue to be good with higher liquidity, new employment creation, increased government spending and enhanced consumer spending ABDULRAZAK ALI ISSA, Chief Executive, BankMuscat
A look at the revised budgetary numbers puts the magnitude of this additional financial prowess in perspective. In April 2011, HE Darwish bin Ismail al Balushi, the Minister Responsible for Financial Affairs announced the government’s decision to earmark RO1bn in additional funding towards employment generation, unemployment pay-outs, cost of living allowances, enhanced pension and social security benefits. Elaborating on the details, the minister said that RO444mn was being allocated for providing employment to 40,714 people; RO90mn for unemployment allowance; RO43mn as pension for retired civilian and defence employees; RO251mn as cost of living for employees in military and civilian positions; RO25mn for students; RO25mn as pension for Omanis in the private sector and RO14mn for supporting sports and the youth sector. RO1,462.49mn in H1’2011 – a jump of 12.6 per cent. This topline growth of the index was aided by the higher than expected performance of the banking and industry sectors which grew by 17 per cent and 17.6 per cent YoY during H1’2011.
The prime mover So what accounts for this new found confidence? A large part of this self assuredness stems from the measures taken by the government to address the grievances raised during the protests in January and February. Initiatives like creating 50,000 jobs for Omanis, raising minimum salary levels to RO200, unemployment allowance provision of RO150 per month and increase in social security benefits have led to enhanced spending power giving a fillip to retail activity.
As a result of these new financial commitments, the public expenditure increased to about RO9.1bn, markedly up from RO8.1bn announced in the state budget 2011. The Sultanate expects to fund the additional RO1bn from oil revenues earned above the $58 per barrel benchmark set by the government. Says Anil C Kapadiya, country manager, Oman Insurance Company, “In the wake of the Arab Spring, a lot of soft cash has come into the market as a result of the government’s largesse. The RO1bn stimulus will not be pumped into the market in one day, but will be staggered in tranches of RO85-100mn every month and this will have an impact on retail activity.” The efforts taken by the private sector in response to His Majesty’s call for employment generation, has also added to this
H1 2011 RESULTS – SECTORAL SNAPSHOTS Sectoral Break up - In RO 000’s Banking Sector - Aggregate
Total Revenue H1 2011
H1 2010
Net Profit YoY (%)
H1 2011
H1 2010
YoY (%)
289,441
247,290
17.0%
93,751
101,294
-7.4%
33,198
38,788
-14.4%
1,836
10,107
-81.8%
Financial Sector - Aggregate
330,369
288,143
14.7%
96,136
112,014
-14.2%
Industry Sector - Aggregate
482,777
410,448
17.6%
31,752
51,925
-38.9%
Services Sector - Aggregate
649,348
600,344
8.2%
87,715
104,503
-16.1%
MSM 30 Index (Inc. Inv. Holding) - Aggregate
1,462,494
1,298,935
12.6%
215,603
268,442
-19.7%
MSM 30 Index (Ex. Inv. Holding) - Aggregate
1,429,296
1,260,147
13.4%
213,767
258,336
-17.3%
Inv. Holding Sector - Aggregate
Source: Company Announcement, GBCM Research; ** During Q2 2011 - Bank Dhofar has taken loss of about RO26.1mn on a legal case
24
September 2011
The execution of more infrastructure projects in the country has led to more demand for petrol, diesel and lubricants ADIL ISMAIL AL RAISI Managing Director, Shell Oman Marketing Company
restricted to consumer vehicles, but is also apparent in the sale of commercial vehicles. Says S Serdar Toktamis, group general manager, ZAG, “There has certainly been a return of confidence in the second quarter of the year and we have been enjoying highly successful sales across the country in the ZAG. There is a sense of more prosperity and a willingness to invest in new cars. We are attracting new customers and existing customers who are looking at upgrading to newer vehicles.” The March 11, 2011 earthquake off the Pacific coast of Tohoku, Japan led to a disruption in the supply of vehicles and this has become a major handicap for distributors of Japanese brands like Toyota, Mazda, Mitsubishi in catering to the sudden spurt in demand.
new found momentum. According to the Ministry of Manpower reports – 32,473 Omani nationals have been employed by the private sector from February to July 2011. Overall, 74,917 jobs have been created for nationals across the economy. Says AbdulRazak Ali Issa, chief executive, BankMuscat, “The economic conditions in Oman continue to be good with higher liquidity, new employment creation, increased government spending and enhanced consumer spending.”
Realising the mood of the market the ZAG has launched a number of new vehicles in the market – Dhofar Automotive launched the Dodge Charger and Dodge Durango; Wattayah Motors the new Audi A1, Audi A8 and Volkswagen Jetta, while European Motors has brought in the Peugeot 3008 to the Sultanate. Says Toktamis, “It is clear that the commitment of the group to bring fresh and exciting models to the market is working and translating into increased sales. Seeing the potential of the region principals like Jeep, Dodge and Chrysler are renewing their focus on the
More employment has translated into greater purchasing power and this finds a reflection in the sale of automobiles, FMCG goods, consumer durables etc. Says Aftab Patel, CEO, Al Omaniya Financial Services (AOFS), “In the last two months the demand for car loans has gone up by 25-30 per cent and the same holds true for consumer product loans. Trading business too has gone up significantly giving a headstart to trade finance.” The automobile industry – a bellwether sector of the economy – is finally seeing some good times after two long arduous years. The Zubair Automotive Group (ZAG) for instance expects to close 2011 on a promising note. Moreover, this growth is not
As a prudent bank we do not have more than 13 per cent exposure to any one sector and in riskier sectors this is as low as five per cent ABDULAZIZ AL BALUSHI CEO, Ahli Bank September 2011 25
COVERSTORY
region.” The company is working on launching newer models in the market later this year to maintain its momentum.
Retail game The upbeat mood is not just restricted to automobile sales but holds true for other sectors too. In the consumer durable space, SARCO (Samsung) has seen a 40 per cent jump in sales during the first half of 2011. Sensing an opportunity in the market, the company has taken a number of measures to capitalise on this growing demand. In an effort to educate consumers better about their products, Samsung started doing road shows on a bigger scale. When the company launched Smart LED TVs in April 2011, it put up three to four Smart LED models in Muscat City Centre with live demonstrations. It has also been stressing on giving better training its staff. Says Ajay Ganti, CEO, SARCO, “Earlier we used to do staff training once in a month, but now we do it once every week. In addition, simulation exercises are carried out in which we ask our staff anticipated questions from consumers.” Having grown in excess of 50 per cent in Sohar and Nizwa in the last year, SARCO is looking at strengthening its presence in the interiors. It has set up a service and warehousing centre in Sohar. A service centre in Nizwa is on the cards and the company is looking at establishing more sale outlets in areas like Buraimi, Salalah, Sur and Duqm. The company has also started doing locally oriented campaigns. One big factor helping sales in the consumer durable space has been an across the board fall in the prices. A Pentium notebook with a dual core processor which used to cost RO300-400 in 2008 now costs around RO200; a 52 inch LCD TV was priced at RO2,500 two years ago, now one can get a 55 inch LED TV for just over RO1,000; smart phones prices have fallen from an average of RO300 to RO7080. Says Ganti, “Holding onto your old product does not give you an advantage and the cost of acquisition of new technology is no longer prohibitive. As a result things which were perceived as a luxury are now seen as a necessity.”
Wheels of finance The banking industry mirrors the state of the economy and
Holding onto your old product does not give you an advantage and the cost of acquisition of new technology is no longer prohibitive AJAY GANTI CEO, SARCO
it has posted strong numbers during H1 2011. According to a GBCM report titled – ‘H1 2011 Earnings – Review of MSM 30 Index Constituents’ – ‘The performance of the banking sector was above our estimates with the sharper growth in credit book, maintenance of higher margins and the presence of higher
BANKING SECTOR PERFORMANCE - H1 2011 Financial Sector- In RO 000’s
Total Revenue
Net Profit
H1 2011
H1 2010
YoY (%)
H1 2011
H1 2010
YoY (%)
Ahli Bank
16,778
12,024
39.5%
8,700
6,676
30.3%
Bank Dhofar
38,301
35,494
7.9%
(4,555)
17,735
-125.7%
Bank Muscat
146,890
121,925
20.5%
57,232
47,026
21.7%
Bank Sohar
20,727
17,261
20.1%
6,928
6,035
14.8%
National Bank of Oman
45,658
40,719
12.1%
17,070
14,597
16.9%
Oman International Bank
21,087
19,867
6.1%
8,376
9,225
-9.2%
289,441
247,290
17.0%
93,751
101,294
-7.4%
Banking Sector - Aggregate
Source: Company Announcement, GBCM Research; ** During Q2 2011 - Bank Dhofar has taken loss of about RO26.1mn on a legal case
26
September 2011
COVERSTORY
in the banking sector’s credit off take during Q2’2011 with an addition of RO474.4mn – the highest we have seen in the last two years, which is commendable.” On individual performances, the GBCM report states, ‘The banking sector major, BankMuscat reported robust earnings growth for the quarter led by higher than anticipated book addition, maintenance of margins and incremental recoveries. BankMuscat added about RO271mn to its loan book for H1’2011, an increase of 6.5 per cent on an YTD basis. National Bank of Oman (NBO) surprised the market with the robust credit off-take for the last quarter led by demand from quasi-government projects and personal lending. The bank also saw a steady pace of recoveries which led to improved earnings. Ahli Bank came out with above than expected numbers driven by improved growth and margins. Bank Sohar continued to show higher numbers for the second consecutive quarter led by improved margins and stabilisation of asset quality levels.” Says AbdulAziz al Balushi, CEO, Ahli Bank “We are building a strong institution without compromising on the quality of our assets. As a prudent bank we do not have more than 13 per cent exposure to any individual sector and in riskier sectors this is as low as 5 per cent.”
It is clear that the commitment of the group to bring fresh and exciting models to the market is working and translating into increased sales
Fuelling the economy
S SERDAR TOKTAMIS Group General Manager, Zubair Automotive Group
recoveries. Overall credit addition for the banking sector during H1’2011 is at RO726.1mn. The sector’s credit growth is about 6.8 per cent year to date (YTD), which is higher as compared to our full year estimates of eight per cent. We saw a strong revival
Says Adil Ismail al Raisi, managing director, Shell Oman Marketing Company (SOMC), “There is a direct correlation between fuel consumption and the state of the economy. The execution of more infrastructure projects in the country has led to more demand for petrol, diesel and lubricants.” Confident about its future prospects SOMC has embarked upon a fiveyear development plan which looks at improving the people, process and system readiness of the company. The company is also stressing on HSE issues, expanding its retail network and improving its service delivery standards. Says Adil, “In SOM we always strive for service excellence associated with full compliance with our HSSE guidelines. We monitor our customer
SERVICES SECTOR PERFORMANCE - H1 2011 Services Sector – In RO 000’s
Total Revenue
Net Profit
H1 2011
H1 2010
YoY (%)
H1 2011
H1 2010
YoY (%)
Al Jazeira Services
5,097
4,687
8.7%
(276)
129
-314.0%
Oman Investment & Finance
6,116
11,969
-48.9%
1,004
1,270
-20.9%
Omantel
223,298
218,380
2.3%
54,692
60,545
-9.7%
Nawras
97,171
91,241
6.5%
22,119
25,546
-13.4%
Renaissance Services
132,301
117,763
12.3%
2,256
9,788
-77.0%
Shell Oman Marketing
185,365
156,303
18.6%
7,920
7,225
9.6%
Services Sector - Aggregate
649,348
600,344
8.2%
87,715
104,503
-16.1%
Source: Company Announcement, GBCM Research
28
September 2011
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IN YO U R IT
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E R A RY
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IN YO U R IT
E R A RY
Day 1: Flight from Muscat via Dubai to Colombo with Emirates Airlines, Arrival and proceed to Kandalama, ǀŝƐŝƟŶŐ WŝŶŶĂǁĂůĂ ůĞƉŚĂŶƚ KƌƉŚĂŶĂŐĞ͘ KǀĞƌŶŝŐŚƚ Ăƚ ŵĂLJĂ >ĂŬĞ͘ ĂLJ Ϯ͗ ŌĞƌ ďƌĞĂŬĨĂƐƚ ƉƌŽĐĞĞĚ ƚŽ ƚŚĞ ϱƚŚ ĐĞŶƚƵƌLJ ^ŝŐŝƌŝLJĂ ƌŽĐŬ ĨŽƌƚƌĞƐƐ͘ KǀĞƌŶŝŐŚƚ Ăƚ ŵĂLJĂ >ĂŬĞ Day 3: Visit a spice garden in Matale and witness a Cookery ĚĞŵŽŶƐƚƌĂƟŽŶ͘ WƌŽĐĞĞĚ ƚŽ ƚŚĞ WĞƌĚĞŶŝLJĂ ďŽƚĂŶŝĐĂů ŐĂƌĚĞŶ͘ /Ŷ ƚŚĞ ĂŌĞƌŶŽŽŶ ĐŝƚLJ ƚŽƵƌ ŽĨ <ĂŶĚLJ ĮŶŝƐŚĞĚ ǁŝƚŚ ĐƵůƚƵƌĂů ƐŚŽǁ͘ KǀĞƌŶŝŐŚƚ Ăƚ ŵĂLJĂ ,ŝůůƐ͘ ĂLJ ϰ͗ KŶ ƚŚĞ ǁĂLJ ƚŽ EƵǁĂƌĂ ůŝLJĂ ǀŝƐŝƚ ŽĨ Ă ƚĞĂ ƉůĂŶƚĂƟŽŶ ĂŶĚ ĨĂĐƚŽƌLJ͘ /Ŷ ƚŚĞ ĞǀĞŶŝŶŐ ĐŝƚLJ ƚŽƵƌ ŽĨ EƵǁĂƌĂ ůŝLJĂ ƚŚĞ ŵŽƐƚ ƉŽƉƵůĂƌ Śŝůů ƌĞƐŽƌƚ ŽĨ ^ƌŝ >ĂŶŬĂ͘ KǀĞƌŶŝŐŚƚ Ăƚ dĞĂ &ĂĐƚŽƌLJ ,ŽƚĞů͘ ĂLJ ϱ͗ ZĞƚƵƌŶ ƚŽ ŽůŽŵďŽ͘ KŶ ƚŚĞ ǁĂLJ ǀŝƐŝƚ <ŝƚƵůŐĂůĂ͘ dŚĞ <ĞůĂŶŝ ZŝǀĞƌ ʹ ďƌŽĂĚĞƐƚ ƌŝǀĞƌ ŽĨ ^ƌŝ >ĂŶŬĂ ʹ ŇŽĂƟŶŐ ƚŚƌŽƵŐŚ ƚŚĞ ĐŝƚLJ͕ ǁĂƐ ƚŚĞ ŵĂŝŶ ůŽĐĂƟŽŶ ĨŽƌ ƚŚĞ KƐĐĂƌ ǁŝŶŶŝŶŐ ŵŽǀŝĞ ͞ ƌŝĚŐĞ ŽŶ ƚŚĞ ZŝǀĞƌ <ǁĂŝ͘͟ ŝƚLJ ƚŽƵƌ ŽĨ ŽůŽŵďŽ͘ KǀĞƌŶŝŐŚƚ Ăƚ ŽůŽŵďŽ ,ŝůƚŽŶ͘ Day 6: Transfer to the airport, Departure by Emirates ŝƌůŝŶĞƐ ǀŝĂ ƵďĂŝ ƚŽ DƵƐĐĂƚ͘
´/$1' 2) 60,/(6µ '$<6 1,*+76 dŚĂŝůĂŶĚ ŝƐ ŽŌĞŶ ƌĞĨĞƌƌĞĚ ƚŽ͕ ĂƐ Ă golden land, not because there is precious metal buried underground but because the ĐŽƵŶƚƌLJ ŐŝǀĞƐ Žī Ă ĐĞƌƚĂŝŶ ůƵƐƚƌĞ͕ ďĞ ŝƚ ƚŚĞ ĨĞƌƟůĞ ƌŝĐĞ ĮĞůĚƐ ŽĨ ƚŚĞ ĐĞŶƚƌĂů ƉůĂŝŶƐ͕ ǁŚŝƚĞ sandy beaches or the warm hospitality of its ĐŝƟnjĞŶƐ͘ /ƚ͛Ɛ Ă ǁŽŶĚƌŽƵƐ ŬŝŶŐĚŽŵ͕ ĨĞĂƚƵƌŝŶŐ ƵĚĚŚŝƐƚ ƚĞŵƉůĞƐ͕ ĞdžŽƟĐ ǁŝůĚůŝĨĞ͕ ĂŶĚ ƐƉĞĐƚĂĐƵůĂƌ ŝƐůĂŶĚƐ͘ ůŽŶŐ ǁŝƚŚ Ă ĨĂƐĐŝŶĂƟŶŐ history and a unique culture that includes delectable Thai food and massage, Thailand features a modern capital city, and friendly ƉĞŽƉůĞ ǁŚŽ ĞƉŝƚŽŵŝnjĞ dŚĂŝůĂŶĚ͛Ɛ ͞ůĂŶĚ ŽĨ ƐŵŝůĞƐ͟ ƌĞƉƵƚĂƟŽŶ͘
WZ/ W Z W Z^KE KDZ ϰϰϱͬͳ Included: ͻ &ůŝŐŚƚ ďLJ ŵŝƌĂƚĞƐ ŝƌůŝŶĞƐ ĨƌŽŵ DƵƐĐĂƚ ƚŽ ŽůŽŵďŽ in Economy Class ͻ ůů ƚĂdžĞƐ ĂŶĚ ĨƵĞů ƐƵƌĐŚĂƌŐĞƐ ͻ dƌĂŶƐƉŽƌƚĂƟŽŶ ďLJ ĂŝƌͲĐŽŶĚŝƟŽŶĞĚ ĐĂƌ ͻ ŶƚƌĂŶĐĞ ĨĞĞƐ ƚŽ ůĞƉŚĂŶƚ KƌƉŚĂŶĂŐĞ͕ ^ŝŐŝƌŝLJĂ͕ Cultural Show, Kandy Temple and Botanical garden ͻ ŶŐůŝƐŚ ƐƉĞĂŬŝŶŐ ŚĂƵīĞƵƌ 'ƵŝĚĞ ͻ ĐĐŽŵŵŽĚĂƟŽŶ ŝŶ ϰΎ ,ŽƚĞůƐ ďĂƐĞĚ ŽŶ ƐƚĂŶĚĂƌĚ twin-sharing for 5 nights including daily breakfast at ƐƉĞĐŝĮĞĚ ŚŽƚĞůƐ Žƌ ƐŝŵŝůĂƌ ƐƚĂŶĚĂƌĚ ͻ s d Θ ƐĞƌǀŝĐĞ ĐŚĂƌŐĞ Not included: EŽ ŵĞĂůƐ͕ ĚƌŝŶŬƐ͕ ƟƉƉŝŶŐ͕ 'ƌĂƚƵŝƟĞƐ ĂŶĚ ŽƚŚĞƌ ƉĞƌƐŽŶĂů ĞdžƉĞŶƐĞƐ͕ ĚŽŵĞƐƟĐ ĂŝƌĨĂƌĞƐ ĂŶĚ ƚƌĂǀĞů insurances. WƌŝĐĞƐ ĂƌĞ ƐƵďũĞĐƚ ƚŽ ĐŚĂŶŐĞ ǁŝƚŚŽƵƚ ŶŽƟĐĞ͊
, yd E^/KE ϱ z^ ͬ ϰ E/',d^ NEGOMBO ϱΎ ,ŽƚĞů ʹ dŚĞ ĞĂĐŚ Ăƚ KDZ ϭϳϱͬͲ ϱΎ ,ŽƚĞů ʹ :ĞƚǁŝŶŐ ůƵĞ Ăƚ KDZ ϭϰϱͬͲ BERUWELA ϰΎ ,ŽƚĞů ʹ dŚĞ WĂůŵƐ Ăƚ KDZ ϳϱͬͲ ϰΎ ,ŽƚĞů ʹ ĞŶƚŽƚĂ ĞĂĐŚ Ăƚ KDZ ϭϰϱͬͲ All Beach packages include return transfer to airport as ǁĞůů ĂƐ ĚĂŝůLJ ďƌĞĂŬĨĂƐƚ Ăƚ ƚŚĞ ĐŚŽƐĞŶ ŚŽƚĞů͕ s d͘
Division of: Gulf Sindbad Travel & Tourism LLC ů <ŚǁĂŝƌ ϭϳͬϭ͕ ů <ƵůĞŝĂŚ ^ƚƌĞĞƚ͕ sŝůůĂ ϭϰ͕ W͘K͘ Ždž ϳϭϱ͕ W ϭϭϰ͕DƵƩƌĂŚ Ͳ DƵƐĐĂƚ͕ ^ƵůƚĂŶĂƚĞ ŽĨ KŵĂŶ͕ >>͗ нϵϲϴ Ϯϰϯϵ ϱϬϬϬ͕ DŽďŝůĞ͗ нϵϲϴ ϵϳϬϵ ϭϵϵϮ ͲŵĂŝů͗ ŝŶĨŽΛƐŝŶĚďĂĚͲƚƌĂŝůƐ͘ĐŽŵ
COVERSTORY
In the wake of the Arab Spring, a lot of soft cash has come into the market as a result of the government’s largesse ANIL C KAPADIYA Country Manager, Oman Insurance Company
June 2010 to RO142mn in June 2011 – a YoY growth of 14.5 per cent. Says Patel, “A large part of this increase came from trade finance and not from asset finance as the company has witnessed steady growth on both the consumption and corporate side.” AOFS started corporate finance in 2006-07 and it now accounts for almost 65 per cent of the company’s portfolio.
Industrious performance
service and HSSE performance through internal process and external parties aiming for continuous improvement.” Like fuel retailing companies, the fortunes of the leasing industry is also a good barometer of retail and industrial activity. For example, the asset size of AOFS has grown from RO125mn in
Commenting on the performance of the industry sector, the GBCM report states: “During H1’2011, the industry sector companies reported improved revenue growth led by higher than expected performance from commodity majors, consumer goods (food products) and diversified industries. Al Jazeera Steel Products Company (AJSP) and Oman Cables Industry (OCI) came out with stronger topline growth on the back of higher commodity prices and improved demand especially in steel products. Al Anwar Ceramics and Voltamp Energy continued its topline growth owing to the stronger domestic demand and the local flavour. A’Saffa Foods and Dhofar Cattle Feed continued their topline growth which clearly shows the robust local presence and the promotion of local brands.” Says Bhaskar Dutta, CEO, AJSP, “The oil price
INDUSTRY SECTOR PERFORMANCE - H1 2011 In RO 000’s Industry Sector
Total Revenue
Net Profit
H1 2011
H1 2010
YoY (%)
H1 2011
H1 2010
YoY (%)
9,717
9,058
7.3%
2,980
2,812
6.0%
Al Jazeera Steel
46,703
32,077
45.6%
2,101
1,156
81.7%
Asaffa Foods
10,335
9,253
11.7%
1,841
1,534
20.1%
Dhofar Cattle Feed
12,316
10,858
13.4%
766
6,017
-87.3%
Galfar Engineering
165,899
174,744
-5.1%
2,680
1,585
69.1%
1,949
2,476
-21.3%
225
351
-35.8%
11,146
10,607
5.1%
747
1,139
-34.4%
148,922
91,503
62.8%
3,200
4,042
-20.8%
Oman Cement
24,812
28,822
-13.9%
7,330
18,285
-59.9%
Raysut Cement
43,454
34,415
26.3%
8,894
13,649
-34.8%
7,525
6,636
13.4%
988
1,356
-27.1%
482,777
410,448
17.6%
31,752
51,925
-38.9%
Al Anwar Ceramic
Gulf International Chemicals National Alum. Products Oman Cable
Voltamp transformers Industry Sector - Aggregate
Source: Company Announcement, GBCM Research
30
September 2011
In the last two months the demand for car loans has gone up by 25-30 per cent and the same holds true for consumer product loans AFTAB PATEL CEO, Al Omaniya Financial Services
rise and definite increase in infrastructure and housing spending in the GCC was a key factor for the increase in sales. Reliability of supplies and the quality of our merchant products helped us to replace imported products in the GCC market.” OCI has built upon the opportunities presented by the local market. While earlier Oman used to contribute 35-40 per cent of its revenues, it now makes up for 50 per cent of its sales. Says Manoj M Vaidya, general manager (corporate finance), OCI, “In Oman wherever cables are being used in projects in areas like Duqm, Salalah, Sohar and Muscat our products are being used.” The company has also partnered with Takamul Investment Company in establishing Oman Aluminium Processing Industries (OAPIL) in Sohar. OAPIL which went on stream in 2010 has contributed RO15mn in sales and RO200,000 in profits in H1’2011. Apart from the regional market OCI has a strong presence in the Far East markets and is looking at expanding its presence in Europe and the North African markets. It has established an office in Amsterdam and expects new business from Europe in the next few quarters. Despite its
good performance, Vaidya is quick to strike a note of caution, “Being a cable company it is difficult for us to give a sense of our operations on a quarterly basis. Though it is a mandatory requirement, it does not establish a trend.”
Prevailing hurdles Despite the good tidings, there are certain concerns that continue to afflict the corporate sector. Though most companies experienced good topline growth, margins remained under pressure. The net profit of MSM 30 companies during H1’2011 stood at RO215.60mn – a decline of 19.7 per cent on a YoY basis. The net profit of the industrial sector was the worst hit reporting a decline of about 38.9 per cent on a YoY basis. The volatility of commodity prices remains a major bug bear for companies like OCI. In the last one and a half years the price of copper has moved from $7,500 a tonne to $10,000 a tonne and back to $9,000 levels. Volatility in copper prices scares clients into holding back orders. “Every time we get used to a new normal, the price changes creating disruption,” adds an exasperated Vaidya.
The oil price rise and definite increase in infrastructure and housing spending in the GCC have contributed to the increase in sales BHASKAR DUTTA CEO, Al Jazeera Steel Products September 2011 31
COVERSTORY
A recent Ministry of Transport decision that permits only vehicles having either an Omani registration or the country of delivery registration to carry goods has created bottlenecks for the manufacturing sector. Dutta points out, “We are finding it difficult to send our finished goods to Bahrain, Qatar, KSA and Kuwait as local transporters cannot supply us with sufficient vehicles. This has led to a piling up of dispatches and could lead to a stoppage of the plant. Furthermore, the available vehicles are being priced at abnormally high rates.” The sudden creation of jobs for Omanis is creating an attrition problem for various companies. “In our industry where working conditions are a little rugged, we find a number of workers joining and leaving after a few days,” says Dutta. There are others who voice concerns about productivity. AbdulAziz says, “We are not worried about the cost of creating employment, but productivity is the issue, employees should not feel that they will be rewarded even if they do not work.” There are some apprehensions that the additional social outlay may impact the government’s infrastructure spending. Says Patel, “Given the additional budgetary outlay of RO1bn, there is a shift from development to consumption expenditure. The number of tenders awarded during H1’2011 have been lower than the corresponding period during 2010 and that needs to go up in the next six months.” Adds Kapadiya, “Confidence in the economy is driven by government expenditure and so it needs to continue spending. Once the private sector starts spending we will see a marked increase in buoyancy.” During his presentation on the revised budgetary estimates, HE Darwish tried to allay apprehensions about a cut in infrastructure spending by reiterating the government’s commitment to execute all projects that were approved for the 8th Plan (2011-15). Out of the RO12bn allocated for infrastructure development in the 8th plan, RO6.4bn is earmarked for ongoing projects launched during the 7th Five Year plan and the remaining RO5.6bn will go to fund new projects. Says AbdulAziz, “Whenever a project is announced there is a lead time of six to eight months before the money gets sanctioned. Once this happens business confidence will improve further.” The credit crisis in the Eurozone and the downgrading of the US economy by Standard&Poor’s is another area of concern but industry leaders are quick to underplay its effect on the local economy. “Since we live in a global village and we cannot be completely insulated from the impact of global events, but the fallout this time around will not be as bad as the last time,” says AbdulAziz.
Looking ahead The GBCM report strikes an upbeat mood for the coming months – ‘We expect corporate earnings to improve during the upcoming quarters (especially in H2’2011) mainly driven by the local consumption story coming in from the creation of about 32
September 2011
Being a cable company, it is difficult for us to give a sense of our operations on a quarterly basis. Though it is a mandatory requirement, it does not establish a trend MANOJ M VAIDYA GM (Corporate Finance), Oman Cables Industry
70,000 jobs in the market. We also believe that companies have already seen the full impact on the additional costs during Q2 and we anticipate Q3’2011 earnings to improve sequentially on a lower base.’ The confident mood is shared by others. Says AbdulRazak, “The Sultanate’s economic outlook for 2011 is positive stemming from key factors like higher average price earnings from oil and increased government spending on infrastructure. The economic diversification programme is on track, backed by a resilient banking system, stable exchange rate, sufficient foreign exchange reserves, adequate physical infrastructure and attractive foreign investment policy pursued by the government.” Summing up the mood in the market Vaidya says, “We should not talk ourselves into a recession. People expect too much at times and then get disheartened, it is important to have realistic expectations.” All the signs of a return to confidence in the economy are apparent – government spending on infrastructure projects, more jobs, higher purchasing power and an impetus to retail activity. Probably it’s time for the corporate sector to start exuding more self-belief.
STOCKMARKET
NOWHERE TO RUN U Following the downgrading of the US credit
ratings by S&P, stock markets went into a tizzy. The impact was felt in Oman as well. Tough times are ahead, says Abdullah Al Salmi, Executive Vice President, Capital Market Authority in a candid chat with Visvas Paul D Karra
p until June, equity investors could count on the US Federal Reserve to keep pumping money into the system, boosting equity and commodity prices. The $600bn the Fed used to buy assets in a second round of quantitative easing – known as QE2 – flooded markets with cash and helped lower interest rates. That’s over now as global policymakers realised that the twin debt crises in Europe and the US are causing market turmoil and stoking fears of the rich world sliding back into recession. After the ‘Black Friday’ of August 5, saw more than $2.5trn wiped off global stock markets, political leaders are under mounting pressure to reassure investors that Western governments have both the will and ability to reduce their huge and growing public debt loads. The moves were part of a global response made additionally necessary by Standard & Poor’s (S&P) taking the historic step of cutting its US credit rating to AA+ from the top notch triple A on that fateful Friday. As Europe struggles with its problems, global markets also want to know how Washington will reduce its more than $14trn debt without choking off economic recovery since a modest US debt deal left Congress bruised and bitter. Even though the trigger for the crash in the financial markets is the S&P downgrade of US ratings, the downgrade per se is probably a signal that the situation is far more grim than what appears on the surface, says Abdullah Al Salmi, executive vice president, Capital Market Authority. According to Abdullah, a professional setup like S&P will undertake this drastic step only based on facts which most of us would not be aware of. If that is the case of the shape of the things to come, it will surely reflect on the global economy. Alongside what is happening in Europe, together that does not give a bright picture. Should S&P downgrade other countries as well, that is another question, says Abdullah, in that case, there are fears that even countries like France or Japan could also be downgraded. That will surely compound problems.
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September 2011
Ironical twist What happened during the 2008-09 financial crisis was at a micro-level wherein large financial institutions like the Lehman Brothers and other big names on both sides of the Atlantic went bankrupt. At that time, the governments were able to intervene and bail them out in order to keep up the momentum of the economy. Now the situation is at a macro level. Many governments, including that of the US, themselves have gone bankrupt, so who will rescue or bail them out. That’s the irony of the situation, points out Abdullah. “Back then, the governments were able to spend in order to stimulate the market, but now take the case of the US government. You know, it cannot spend unless it has budgetary allocations and if they have to reduce the deficit, they have to increase taxes, for example, and that is another burden on the economy. So it is really a complicated situation for the US. If that is happening in the US which is the number one market in the world it will definitely affect markets around the
world especially countries like China and other economies,” Abdullah explains. In fact, for countries like China, it is a double whammy. China’s exports will be hit as it is a major exporter to the US and secondly because it is the biggest lender to the US. So this is a vicious cycle.
Wall Street sneeze! So this confirms that a Wall Street sneeze means the rest of the world markets catch a cold. That is for sure but not in the way you put it, Abdullah says. Since US is the major market in the whole world, anything that happens there, consequentially affects the rest of the world. But if S&P has done the downgrade then surely they are working on certain facts and if these niggling issues are really existing there then the downgrade had to occur. So yes, that is one side. Then looking into the US as a whole, it is a major financial player and a major importer so whatever happens there it will affect the others. “Having said that and looking into the matter locally, I think the issue to a
large extent is sentimental rather than anything else. Unless what is happening around the world affects the oil prices at the end of the day and if oil prices drop significantly, Oman will be affected. But that stage has not come as yet. So I don’t understand why our market is tumbling. Most companies are doing well and the government spending is well on track. And there are no signs that the government will change its spending behaviour, but at the end of the day we are part of the global village. Our main revenues are from oil exports (the six nations of the Gulf Cooperation Council (GCC) including Oman supply about a fifth of the world’s oil), so if anything happens to the oil prices then it will have a cascading effect. I think that is the reason the markets are going down,” Abdullah says. Indeed, in the week beginning August 8, oil for September delivery tumbled 9.2 per cent to $86.88 a barrel on the New York Mercantile Exchange. And the US and European shares posted their biggest weekly losses since November 2008 with
the S&P 500 plunging 7.2 per cent and the STOXX 600 Europe Index tumbling 9.9 per cent. Gulf stock markets, including the Muscat Securities Market (MSM), dropped as news of the historic US credit downgrading sent jitters through the region’s markets.
Crisis of confidence Confidence comes from facts and numbers. After witnessing what is happening in the Eurozone and US, people need to see something on the ground to regain confidence. “Unless some positive signals come from the European Union that they are going to come up with some solutions to the Eurozone debts, I don’t think that that confidence will be back anytime soon,” Abdullah asserts. Finance ministers and central bankers from the G20 industrialised and emerging economies pledged to ‘take all necessary initiatives in a coordinated way to support financial stability and to foster stronger economic growth in a spirit of cooperation and confidence’. The European Central Bank (ECB) was the only European institution capable of acting fast but economists have warned that even the long-awaited ECB intervention was no ‘silver bullet’ and that big obstacles remained in stabilising strained public finances and putting adequate eurozone 36
September 2011
defence mechanisms in place quickly. According to Abdullah, the situation is slightly better in the US than in the European Union (EU), because in the US, there is one political power dominating the government but in the EU although you have a common currency, there are 10 different political entities with different agendas. To bring all these agendas on to the table for a unified strategy is very difficult. So the events in the EU and US, will affect other markets by default. And that is where the crisis of confidence stems from, says Abdullah. No other market can substitute US and Europe, he adds.
Future trend The million dollar question on everybody’s lips is ‘what next?’. I wish I knew, says Abdullah with a smile. Nobody was expecting the downgrade because the US government did manage to avert a sovereign default by lifting its own debt ceiling. Even before the US ratings downgrade, the sluggishness in economic growth of various countries was endemic. If you look at the industrial output, there was not so much as a shakeup. In the US, it was around 9 per cent – not higher than during the financial crisis. But now the US government needs help so it will take some time to adjust its monetary
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Debt data from Encarta and the US Government
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ECONOMY
or fiscal policies and that is not clear to the investors and the markets, says Abdullah. As for Oman, during the earlier financial crisis, the Sultanate had strong fundamentals which helped the country. So it truly is a lack of confidence. “I think the funds like Pension Funds should invest in the market, if they think the fundamentals are right and if the pricing is attractive. This is not for the sake of bailing out the MSM but in order to make some money in the future,” Abdullah opines. Continuing further, he says, more institutional investors should come forward because individual investors are not rationale or knowledgeable enough. But institutional investors have a knowledge of how the markets will behave. So if they come forward and invest, it will give the rest of the investor’s confidence to come back to the market. Most of the institutional investors have said that the fundamentals are right and the market price is good. While going to press the US downgrade and fears of the Euro zone debt crisis was still playing out across world markets. This is the last thing that the global economy needed at this juncture, but shortsighted politics and brinksmanship has landed the world in the throes of a crisis, yet again.
BY MATEIN KHALID
The global crisis and GCC shares The market convulsions of August 2011 is expected to cast a long shadow on the emerging markets, including the GCC stock exchanges
The author is a renowned investment banker based in Dubai
T
he global financial trauma of August 2011 has taken its toll on emerging markets, the ultimate risk asset in a world fleeing from risk. Yet it is ironic that, unlike August 1998, when the Russian rouble devaluation and the Asian currency meltdown horrified Wall Street, the current market mayhem stems from the West-America’s credit downgrade, the Eurozone debt contagion, and the speculative bear attack on the French banking system. It is never wise to ignore the hoofbeats of the herd. Oil prices have plunged by $30. Global economic growth rates will fall. The Federal Reserve has committed to zero interest rates till 2013. Goldman Sachs has estimated the risk of a US recession at one-third. The market convulsions of August 2011 will cast a long shadow on the emerging markets, including the GCC stock exchanges, this autumn. The spike in the Chicago Volatility Index (VIX) and surge in the dollar are two classic indicators of risk aversion in financial markets. In the GCC, the fall in oil
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September 2011
prices is the most important variable. A soft patch in the US is hardly a full blown global recession. It is unlikely that oil price will fall to $40, as it did after the failure of Lehman Brothers and the onset of global recession. Even if US GDP growth is flat, Asian oil demand can well increase by at least one million barrels a day (MBD). The key variable is, of course, Saudi Arabia, the central bank of black gold. The Saudis increased their production to 10 million barrels a day in June after the last OPEC meeting to prevent an oil price spiral. So a Saudi output cut would put a floor under oil prices, possibly at $75 – 85 Brent. This means the downside risk on GCC stock markets is limited, that a secular bear market is not on the horizon.
Exposed sectors in GCC The most exposed sectors in the GCC during a global correction are high beta banks, property developers, construction companies and oil service firms. The liquidity risk premium also rises, so small cap and illiquid shares get hit the hardest. Resist the temptation to seek safe haven
in GCC sovereign or corporate debt (sukuk, Eurobonds). Credit spreads widen as deflation shocks lead to lower Brent prices at the precise moment GCC states budget breakeven oil prices have risen due to the events in the Arab world since January 2011. It is also unwise to invest in the debt of highly leveraged or lower rated issues. The optimal strategy, in my opinion, is to scan the universe of low beta, defensive, high dividend telecoms not facing margin pressure, ideally companies with stellar balance sheet, 15 – 25 per cent EPS growth, no margin pressure or legacy growth businesses. Free cash flow yield is a classic metric of value during troubled times. Yet even telecom valuations in the emerging markets plummet during an emerging markets free fall. Moreover, as oil prices fall, GCC economic growth could well soften, meaning EPS could well fall by 10-15 per cent. This factor must not be ignored by investors when making an “entry point” decision. A share with ostensibly low valuations could be expensive if earnings fall as a result of a
PERISCOPE
THE MOST EXPOSED SECTORS IN THE GCC DURING A GLOBAL CORRECTION ARE HIGH BETA BANKS, PROPERTY DEVELOPERS, CONSTRUCTION COMPANIES AND OIL SERVICE FIRMS softer economy or even sector competition. As the largest telecom market in the Middle East, Saudi Arabian telecoms exhibit defensive metrics. Saudi Telecom, the incumbent operator, is a highly complex company with a huge capex expansion plan and a low margin, low growth legacy voice business. Its earnings per share growth prospects simply cannot be compared with Mobily, the broadband/ data centric, second mobile phone operator. Saudi
Telecom has spent capital buying stakes in telcos across Africa, the Arab world and Southeast Asia. Saudi Telecom has raised stakes in Axis (Indonesia) and its African ventures. Huge capex, global dealmaking and a complex balance sheet add an uncertainty risk premium to Saudi Telecom during times of market stress. Mobily is a higher revenue growth, impressively profitable, high free cash flow yield (11 per cent) and broadband/high speed data
business. Softer Saudi GDP growth and periodic price wars are inevitable but I doubt if Mobily will fall much below 45SR even in a severe correction as long as Saudi retail investor are convinced that it can deliver a 3 per cent dividend. The Brent crude oil price has at least $20 downside risk, possibly down to $75 – 85 range. This means that the correction in GCC can continue in September. Yet Saudi Arabia and OPEC
can avoid a free fall with a coordinated output cut, particularly since the world is operating on minimal spare capacity. A Saudi output cut on a credible US budget deficit reduction plan could well lead to a sentiment U-turn in the GCC stock markets. Yet this is not 2008, when bottom fishing was a deadly value trap. The GCC is not headed for recession, even if economic growth and earnings could well decline. Raise cash. Stay defensive.
BP Oman Khazzan project supplier registration BP Oman seeks suppliers to support developing the Oman Block 61 gas field BP Exploration (Epsilon) Ltd (BP) in an exploration and production sharing agreement (EPSA) with the Sultanate of Oman has been exploring the commerciality of the deep tight gas reservoirs in Block 61 in the northern part of Oman. Leveraging appraisal data from the recently commissioned extended well test project, BP believes that the potential for a commercial gas development now exists. The proposed facilities development of the greenfield tight gas project in Oman will incorporate a 1200 mmscfd (34 mcmd) gas processing plant, export pipelines and provision of 300-400 wells and 600 km of flowlines and gathering systems over the life of the project. BP invites international and local contractors and suppliers interested in supporting this potential development to register for consideration as a potential qualified vendor at www.omankhazzan.com
INTERVIEW World renowned economist Prof Jeffrey D Sachs, Director of The Earth Institute at Columbia University and Special Adviser to United Nations Secretary-General Ban Ki-Moon, was recently in Muscat to deliver a talk on ‘Challenges Facing the World Economy in the Coming Decade, Sustainable Development and Eradication of Poverty’ organised by BankMuscat. Muhammed Nafie catches up with him for a quick interview
GOING BEYOND What will be the major challenges of the impending geopolitical change in the aftermath of financial crisis? We are certainly moving to a more multipolar world where the US dominance has dramatically diminished and the rise of China, India, Brazil and other powers is great significant. The fast growing countries in the world are now the emerging markets of the developing world; both Europe and the US have grinding economic problems. The decline of Europe’s share of population shows the decline of its geopolitical weight, just like the decline of the US’s geopolitical weight due to the rise of emerging economies. So this is reshuffling the global balance, not making it easier, however to solve global problems like climate change because global cooperation in this area is very difficult. The US is looking inward at its own domestic political debates, Europe is looking to save the Euro and the Euro zone, and China and India do not have the tradition to lead globally, and therefore we have a period where global leadership is very difficult and global cooperation is very slow in addressing major challenges. How serious are world leaders and policy makers about sustainable development? Do you think they are doing something beyond lip service? I defined sustainable development as triple bottom-line economy; ie economic development, fairness in the sense of reaching everybody including the poorest of the poor, and environmental sustainability. And when you think about the triple bottom-line of economic social and environmental goals, we can see 40
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that the world is quite far from what we need to accomplish. On one hand, there are still very poor countries trapped in poverty, second, there is a lot of income which has been rising in many places. Third, the environment is definitely worsening at the global level with more shocks, more climate change, more loss of biodiversity and more water diversity. We have not been effective since the Rio summit in 1992 when major treaties were agreed upon. We have not effectively implemented those treaties. And when the world returns to Brazil in the next year for Rio plus 20 summits it will take note of how we have squandered 20 years of time instead of making progress. How effective have the recent measures been in tackling the sovereign debt crisis in Europe? Europe did make some good steps in its negotiations with Greece. But the process is still very difficult and complicated one
and by no means is Europe out of danger. So what happened was a step forward but Europe’s process is rather convoluted and complicated. So there is not a completely clear path for working with the Greek government to try to make sure that the best is made out of this agreement so that Greece has enough time to get out of this crisis. I think there is some hope that this is going to happen but the negotiations and the whole process remains complicated. What do you think about the role of American policymakers in solving the recent problems? Our political process is in a bad shape. We have some very big deep chronic problems not addressed by either political party. It is causing the US to experience kind of an economic stagnation. I have a book coming out in October this year that proposes some new approaches for the US leadership in this regard.
DR JASIM HUSAIN ALI
Return of inflationary pressures Steady oil prices together with the declining value of the US dollar are rekindling fears of renewed inflationary pressures in the GCC region
The author is an eminent economist and Member of Parliament, Bahrain (jasim.husain@gmail.com)
I
nflationary pressures are returning to the Gulf Cooperation Council (GCC) economies, albeit in a shy way. Undoubtedly, inflation poses a big challenge to the prosperity of the region affecting those who live and work here. The average rate of inflation is expected to hover around 4 per cent in 2011, up from 3 per cent in 2010 — partly reflecting imported inflation. Still, the average rate could reach up to 5 per cent in 2011 on the back of steady prices of
imported goods. This is only the average, as rates tend to be higher in some economies than others. Undoubtedly, inflation rates are no way close to those witnessed a few years ago. Inflation was the order of the day in the GCC economies in 2007, reaching as high as 14 per cent in Qatar and 11 per cent in the UAE. The unpleasant state was the consequence of rising oil prices coupled with the declining value of the American currency. Interestingly enough, the same phenomenon is being
repeated though not exactly in the same magnitude.
Oil factor Interestingly enough, steady oil prices together with the declining value of the US dollar are rekindling fears of renewed inflationary pressures in the GCC region. Not surprisingly, relatively high — or in this case steady — oil prices result in price hikes for other commodities, including food. Countries that export farm products tend to raise prices in relation to the steady rise of imported oil prices. The practice increases inflationary pressures in the GCC economies, which in turn are known for being net importers of food. Oil prices are projected to average $112 per barrel in 2011, up from around $100 per barrel in 2010 and around $90 per barrel in 2009. Thus, oil prices are expected to remain steady on the back of relatively strong global economic confidence. In retrospect, oil prices reached $147 per barrel in July 2008 but then dropped to nearly $40 per barrel by the year-end. The fall
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CLOSE UP
THE GCC ECONOMIES PARTLY DEPEND ON EUROZONE COUNTRIES AND CHINA FOR CONSIDERABLE AMOUNTS OF THEIR IMPORTS, INCLUDING VEHICLES AND MACHINERY reflected changing global sentiments following the collapse of the subprime market in the US. Yet, the eruption of the financial crisis caused other problems, including confidence problems for stock markets and the real estate sector. Undoubtedly, the petroleum sector is the key to the GCC economies. Saudi Arabia alone produces nearly 12 per cent of global oil imports — a fact that helps make the kingdom the largest oil exporter in the world. Still, other GCC countries are noted for their exporting capabilities, notably the UAE and Kuwait, in turn boosting global oil output by 3.3 per cent and 3.1 per cent, respectively. The rising oil prices strengthen treasury income in the GCC countries, especially as regional economies tend to assume relatively low oil prices whilst preparing governmental budgets. For instance, Qatar assumed a notably low average rate of $50 per barrel in its 20112012 fiscal system starting in April. Stronger income allows for firmer spending, certainly an inflationary practice.
A HINDRANCE TO GROWTH ¡ Average rate of inflation in the GCC is expected to hover around 4% in 2011 up from 3% in 2010 ¡ In 2007, inflation was as high as 14 per cent in Qatar and 11 per cent in the UAE ¡ Imported inflation was responsible for 30 per cent of overall inflationary pressures in 2007 and 2008
Dollar decline Concurrently, the value of the US dollar is under pressure reflecting heavy consequences associated with a heavy debt of $14trn. Fears of possible payment problems undermine the dollar’s value. The greenback has reportedly lost more than 10 per cent of its value against the euro in the first half of 2011. GCC currencies, with the exception of Kuwait, fully peg their currencies to the US dollar as part of a conscious choice. Kuwait ties its dinar to a basket of currencies including the dollar and Euro. Still, the dollar reportedly accounts for up to 70 per cent of all currencies in the basket. The link serves to provide confidence in regional economies and gives investors an opportunity to do
business — notwithstanding fluctuations in exchange rates. On the other hand, drawbacks include the practice of imported inflation. The lower value of the dollar translates into higher prices of imports from currencies not pegged to the greenback. The GCC economies partly depend on Eurozone countries and China for considerable amounts of their imports, including vehicles and machinery. By one account, imported inflation was responsible for as much as 30 per cent of overall inflationary pressures that GCC economies faced in 2007 and 2008. By and large, home-grown farm solution is not viable due to some hard factsscarcity of fertile land and
water shortage. It is suggested that only 10 per cent of lands in GCC countries are arable, primarily located in Saudi Arabia. According to Gulf Research Centre, production of a tonne of barley requires some 1,212 cubic metres (42,801 cubic feet) of ground water reserves in Saudi Arabia. Certainly, this is not wise use of a scarce resource.
Cost of living Inflationary pressures partly explain different rankings of major GCC cities in Mercer’s Worldwide Cost of Living survey for 2011. The recently released report ranks Abu Dhabi as the most expensive city in the GCC for expatriates to live in, followed by Dubai, Riyadh, Manama, Kuwait City, Doha, Muscat and finally Jeddah. The survey depends on the outcome of some 200 items which include housing, transport, food, household goods and entertainment. It is rightly suggested that inflation is the worst enemy in any economy, more so than unemployment. While inflation hurts to varying degrees, the case is not as harsh with respect to unemployment. September 2011 43
PORTS Nico Vincart, Project Manager, Jan De Nul Dredging speaks about the company’s role in building and upgrading of the Duqm port complex. A report by Visvas Paul D Karra
ANCHORING
THE WAY D
uqm’s development as a new industrial destination hinges on the shape of the port facilities, which include a crude oil export terminal and a strategic storage facility, a free trade zone and a downstream industrial area in addition to an airport, port, dry dock, commercial and residential areas and plans for tourism development. Thanks to its proximity to the busy regional sea-lanes traversing Oman’s coastal waters, Duqm is being conceived as a main maritime gateway that will serve as an ambitious industrial and commercial hub. For the shipping industry, one of the most exciting things that is happening on this side of the Arabian Sea is the giant dry dock facility, which was opened for operations by Oman Dry Dock Company (ODC) in March this year. Most notably, the dry dock received its maiden customers namely two ships of Jan De 44
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Nul Dredging (JDN), the Belgium-based dredging company which, incidentally, has been instrumental in literally paving the way for the construction of the dock. This historic achievement was celebrated in Duqm at a grand ceremony held under the auspices of HE Said bin Hamdoon Al Harthy, Undersecretary of the Transport and Communications Ministry for Ports and Marine Affairs, in the presence of Sheikh Sultan bin Mohammed al Nuaimi, Wali of Duqm
and other dignitaries of the Al Wusta Region and members of ROP. Nico Vincart, project manager, JDN, Oman Branch, commenting on this accomplishment said, “As we have been involved in construction of a part of the ship repair yard, we were honoured to be the first customers of the dry dock. We would like to thank the ministry of transport and communications (MOTC) and ODC for this unique opportunity.”
Port project Oman’s Ministry Of Transport And Communications awarded a consortium of companies, which included Consolidated Contractors Company (CCC), Sezai Turkes – Feyzi Akkaya Ltd (STFA) of Turkey, and JDN the contract for the maritime works for Duqm’s new port in April 2007. The scope of works specifically for JDN consisted of the deepening works of approach channel together with the reclamation works behind the newly built quay walls. All works are well ahead of schedule with only 20 per cent of the material yet to be dredged and 10 per cent of the sand to be reclaimed. The main part of the port and the entrance channel has now been dredged and the works at the ship repair yard and the commercial quay are fully completed. Subsequently, the ministry of transport and communications also awarded the expansion work of the Duqm port complex at an additional cost of RO335mn to the same CCC-STFA-JDN consortium. The earlier contract of RO187mn together with the new contract, scales up to around RO522mn for the integrated marine works infrastructure. The investments will go towards extending the breakwaters and deepening the harbour basin and entrance channel in addition to the already existing works for construction of breakwaters, quay walls, as well as a substantial dredging and reclamation component. The lee breakwater was also realigned and pushed out further into the sea, while the main breakwater has been lengthened, thereby creating a considerably expanded port basin. As such, the total length of the breakwaters has grown from the original 5.3 kms originally to 7.7 kms under the revised plan. The most significant impact will be on the main breakwater, which will now boast 2.25 kilometres of quay wall for commercial berths, from an earlier quay length of 700 mtrs. The commercial berths will be equipped to handle container, grain, cement, commodity, and a range of dry bulk carriers.
Dredging works The scale of the dredging work, which began in 2007 and will be fully completed
in 2012, is huge. Vincart gives some mindboggling figures: Around 70 million cubic metres of soil needs to be dredged and around 15 million cubic metres of sand has to be reclaimed behind the quay walls, as it will be very big with two breakwaters. And then you have the quay walls, the commercial quay, 2.2 kms long and the government quay, which is 1200mtrs. For the shipyard, it will be 3 kms of quay and the two graven docks (dry docks) will be 410mts long each. The classic form of drydock, properly known as graving dock, is a narrow basin, usually made of earthen beams and concrete, closed by gates or by a caisson, into which a vessel may be floated and the water pumped out, leaving the vessel supported on blocks. The keel blocks as well as the bilge block are placed on the floor of the dock in accordance with the “docking plan” of the ship. At the moment, five JDN vessels are doing the dredging work non-stop. Recently, one new cutter suction dredging ship arrived from Croatia to join the fleet of ships. This new vessel has three big split hopper barges. And then the company also has trailing suction hopper dredgers on site. Explaining about the dredging operations, Vincart says that the cut soil is put in the barges and taken to an offshore disposable area. There is a pre-identified
We have put 10 million cubic metres of sand behind that to make a nice quay wall that is also ready now. In May 2012, we will hand over the complete port to the ministry of transport and communication
natural pit in the sea just off Duqm and JDN is filling up this pit with the soil. For the land reclamation, sand is brought from 40kms off shore. This is good quality sand, which is dredged and brought to the shore in the hopper to reclaim the land behind the quay wall. Thus, JDN has first built the breakwater and then the quay wall and in between is the water 10 mtrs deep approximately. “We have put 10 million cubic metres of sand behind that to make a nice quay wall that is also ready now. In May 2012, we will hand over the complete port to the ministry of transport and communication,” he says. The port is already open for the dry dock operations. Commercial vessels began to arrive since October 2010. Some GIB cranes arrived for the dry dock from China. And in the dry dock, JDN barges were docked for three days. Some of the dry dock operations, which were carried out on JDN vessels, included cleaning of the hull for sea growth and then polishing of the propellers and maintenance of the engines. Effectively the dry dock is fully functional. JDN is part of the Jan De Nul Group, which was founded in 1938 by Jan Frans Jozef De Nul as a civil construction company. Responding to the market opportunities at that time, the De Nul family accepted its first dredging work in 1951. Since then there has been no looking back. The activities of Jan De Nul Group are based on three pillars: dredging activities, civil construction and environmental works. Jan De Nul Group has the world’s most modern and most technologically advanced dredging fleet at its disposal. In 2009, Jan De Nul Group reached a turnover of 2.1bn euros (69 per cent dredging activities, 18 per cent offshore projects, 11 per cent civil works and 2 per cent environmental projects). People and vessels. In a nutshell, that is the driving force behind Jan De Nul Group. Thanks to the 5,000 employees and its ultramodern fleet, today the group ranks at the top of the international dredging and marine related industry. Also with regard to civil engineering and environmental works, the group is one of the largest contractors in Europe. September 2011 45
The questions have been long brewing
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Oman’s biggest national debate of 2011, gearing up to tackle many crucial topics that have been steaming up since the Arab Spring. > Job creation > Raising salaries > Omanisation > Oman's future Don’t miss to log in to the website to stay tuned with the event: speakers, panelists, topics and all that make Oman Debate 2011 unmissable.
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OMAN DEBATE 2011 ON OCTOBER 31
The annual integrated business symposium encompasses key themes that form the business environment of today and tomorrow in Oman
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man Debate 2011, the third annual national debate organised by Oman Economic Review, will be held on October 31.
movers and shakers from Oman’s corporate world, all innovators in their profession converging to witness the intense indepth discussions on the state of the economy.
The hot topic of discussion for Oman Debate 2011 is how to cope up with the developments of the Arab Spring, which has had its repercussions on the Sultanate of Oman. The leadership of the Sultanate of Oman has been forced to go back to the drawing board to re-chart its future course of action following the proreforms movement which began in Oman as well.
The 2010 debate featured key panelists from various business sectors cutting across the industry who shared rivetting views and incisive questions about how Oman’s corporate world should shoulder the responsibility of complementing the government’s efforts to take the country forward on its growth path.
The government has reworked on its priorities and policies and has taken measures to address various issues. This, in turn, has raised a number of questions/ concerns among both the public and the public sectors. Some key questions which will be raised by Oman Debate 2011 include the following: Job creation: Is creating 50,000 jobs in one year the solution to the unemployment problem or are there structural issues like changes in the education system, making people employable, training etc that need to be looked at. Raising salaries, sops and benefits: 48
September 2011
Can the corporate sector foot the bill? Is the private sector being made to foot an unsustainable bill or has the corporate sector failed to do its part in the development process? Omanisation: Are these realisable goals or unrealistic expectations? The government has set Omanisation targets for various sectors but the private sector is struggling to find suitable/employable Omanis to fill those positions. At the crossroads: Is this a watershed moment in Oman’s socio-economic history where everything that was held as sacred needs to be questioned and redefined? The last two editions of annual integrated business symposium had witnessed packed audiences totalling over 400
Oman Debate 2011, is being brought to you by Oman Economic Review (OER) in association with the Capital Market Authority (CMA) and will continue to maintain its status as an unique platform where influential individuals will share stories of best practices, effective business case-studies and, most importantly, attributes of true leadership. The event will cover globalisation and economics, human capital, motivation and diplomacy with a strong focus on the future of Oman through the idea of a new age of leadership in a changing business landscape and economic trends. As in the previous two editions, Oman Debate 2011 will feature a number of ministers, dignitaries and members of Oman’s corporate world.
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THINKING OUT OF THE BOX ‘The Box Appeal’, a one month charity campaign from August 15 to
September 15 by Radisson Blu and Park Inn hotels, seeks to help over 10,000 people across the Middle East. Muhammed Nafie reports
Michael Jacobi, General Manager, Radisson Blu, Muscat
R
adisson Blu and Park Inn hotels in Muscat launched for the first time in Oman ‘The Box Appeal’, a one-month long charity campaign aiming to help the less privileged in the society. The successful charity campaign which began in 2007 as ShoeBox Appeal in the UAE has been re-branded for 2011, as it aims to help more people than ever before with the participation of all Radisson Blu and Park Inn hotels in the UAE, Oman, Egypt and Bahrain. Now in its fourth year, the campaign from August 15 to September 15 seeks to help over 10,000 people across the Middle East. “As many as 13 hotels from across the MENA region are expected to take part, with the two hotels in Muscat aiming to fill 1,000 boxes collectively, helping to ensure this is the most successful edition of the appeal to date,” says Michael Jacobi, general manager, Radisson Blu, Muscat. 50
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Rabih Zein, General Manager, Park Inn Muscat
He says the campaign initially started by the Radisson Blu hotel in Dubai Media City in 2007 in order to provide labourers across the UAE with every day necessities. It was the growing success of ShoeBox Appeal in Dubai that made Rezidor Hotel Group to take the campaign region-wide. Over the four years the campaign has donated more than 20,000 boxes so far. “The campaign encourages people to pick up a small box from the Radisson Blu or Park Inn hotels in the city or from City Centre Muscat or Qurum City Centre, the Box Appeal partners, and fill them with a list of everyday items such as toothpaste, toothbrush, comb, towel, body soap etc. The hotels have partnered with local charity Dar Al Atta’a who will distribute the boxes at the end of the campaign to families and individuals most in need,” explains Jacob. He also added that many other local companies have pledged their support to the campaign in an astonishing show of community spirit.
Rabih Zein, the recently appointed general manager of Park Inn Muscat states, “The campaign reflects the Park Inn philosophy of responsible business. We have been actively involved in a plethora of charity activities and social service programmes such as blood donation and marathon collection. We encourage people across Oman to come forward and collect, fill and return the boxes in the true spirit of giving. Most of us hardly give a thought to these everyday commodities but the boxes will make a difference to someone for who even the basics count as luxuries.” “We hope the simplicity of The Box Appeal campaign will draw the attention of the public. Anyone can do this – it is so easy to get involved and contribute,” adds Jacob. The hotels have partnered with various companies in the country in order to promote the campaign and raise awareness about it in society.
contact 99269148 or email at: jacob@umsoman.com
BY OLIVER CORNOCK
Energy boost How is the Sultanate planning to meet its growing utilities need in the short term and long term?
The author is Regional Editor, Oxford Business Group
S
tay cool, not cold. Set to 23.” That is the advice of Noor, the Arabian Oryx who encourages passing Omanis to raise their thermostats to 23º during the summer months. Last year, the Save Energy Oman campaign used billboards starring Noor as part of a broader effort to encourage energy conservation and prevent possible energy shortages in the Sultanate.
Energy shortages? Indeed, an energy conservation campaign may at first seem out of place in Oman, an oil and gas exporter. Although the Gulf nation’s hydrocarbon supplies are not as large as some of its neighbours’, its
hydrocarbon resources are considerable. In fact, much of the Sultanate’s energy comes from natural gas-fired power plants, which burn the majority of the country’s gas production. But in addition to powering its own country, Oman understandably wants to maximise the revenues from its resources and has committed a significant amount of its gas to international concessions some years ago. However, this was when domestic energy demand was far lower, and those days are long gone. According to a statement by the executive director of Oman’s Authority for Electricity Regulation, John Cunneen, Oman hit record-breaking demand levels recently, peaking at 3,900 MW on May 21, 2011. With a
maximum installed capacity of 3,700 MW, utilities providers turned to reserve diesel generators to meet energy needs. According to industry sources, last month’s energy demand is not a fluke but part of a predicted long-term growth. At a conference in Muscat last May, the chairman of the public authority for electricity and water HE Mohammad Abdullah al Mahrouqi, predicted demand would increase by nine per cent annually in coming years. “[The Sultanate’s recent economic] growth has been combined with a substantial increase in demand for both electricity and water,” he says.
Increasing appetite for energy There are a number of factors underlying the Sultanate’s increasing appetite for energy. One is Oman’s ongoing industrial growth. As outlined in Vision 2020, the government’s economic diversification plan launched in the mid-90s, the government views industrial development as a top priority. One area that has been gaining traction lately is aluminium. Demand for this high strength and light weight metal has blossomed in recent years. Demand in 2010 grew 13 per cent and is set to
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ECONOMY
WITH A NUMBER OF ENERGY-INTENSIVE INDUSTRIES LIKE ALUMINIUM ON THE UP, THE NEED FOR ENERGY PRODUCTION AND INFRASTRUCTURE IS GROWING FAST double by 2020, according to the Klaus Kleinfled, CEO of international aluminium giant Alcoa. Oman and its GCC neighbours are well placed to become major producers. Manufacturing aluminium is an energy intensive-process, with electricity making up as much as 30 per cent of costs – indeed, access to readily available sources of competitively-priced energy is one of the competitive advantages the Gulf region holds for the industry. The Sultanate’s Sohar Aluminium announced last April that it plans to invest $3bn to double its 370,000 tonne annual output. According to Sohar’s CEO, Henk Pauw, one major challenge for the company will be securing energy supplies to fuel the expanded plant. Other industries, like petrochemicals and steel, also require significant energy input and expansion plans are afoot elsewhere. For example, both Brazilian firm Vale and Indian firm Jindal are investing to boost the Sultanate’s steel production capacity. As industrial ventures continue to expand in the Sultanate, energy demand is set to grow with them. In order to ensure that Oman’s gas resources are distributed efficiently, the government has initiated a system of gas allocation for industrial projects. The
TRENDS IN VOGUE ¡ Oman’s electricity demand peaked at 3,900 MW in May ¡ Demand in 2010 grew 13 per cent and is set to double by 2020 ¡ Sohar Aluminium to invest $3bn to double its 370,000 tonne annual output ¡ Oman, UAE to construct a link to transfer up to 200 MW of electricity
authorities aim to ensure that a wide variety of sectors are able to develop. In pursuit of this goal, criteria have been set for gas allocation. Preference is to be given to industries that show the greatest potential for creating jobs as well as downstream industries, such as aluminium processing plants that use raw metal to make finished products like cables and wires. In addition to allocating current energy supplies, the authorities are also seeking ways to increase Oman’s overall output. One possibility is getting more out of Oman’s current gas reserves. Many of the Sultanate’s deposits, like the Khulud field discovered in 2009, are deep and hard to extract. In industry terminology, this type of gas is termed unconventional. There are a number of methods for unconventional
gas extraction. One called “fracking” involves the use of hydraulic pumps to fracture underground rock formations and release gas deposits within. These innovations do, however, come at a premium, resulting in unconventional gas’ somewhat slimmer profit margins compared to conventional supplies. As long as energy prices remain high, however, the margins when using these complex extraction methods are viable.
Diversifying energy resources Although gas provides the lion’s share of electricity in the country, Oman – along with its GCC neighbours – is also looking into ways to diversify its energy resources. In both the United Arab Emirates (UAE) and Saudi Arabia, governments are planning to build nuclear power plants to cope with demand growth projections. Last March
the director general of Abu Dhabi’s Water and Electricity Authority announced that the Emirate would go ahead with plans to build and operate a nuclear reactor by 2017. In Saudi Arabia as well, the government announced a coming agreement with Areva, a French nuclear firm, to construct nuclear and solar plants in the Kingdom. To that end, Oman has also been exploring alternatives to its gas-fired power plants. Government ministers are currently reviewing proposals for a 200 MW solar project, Charles Rackham, director of projects development at the Oman Power and Water Procurement Company, said at the recently held Oman Power and Water Summit event. In addition to boosting its own output, the Sultanate is also connecting with nearby countries to facilitate more energy import opportunities. Last May, Oman and the UAE agreed on the construction of a link that can transfer up to 200 MW of electricity between the two countries. In the longer term, a GCC power grid is set to connect Oman’s grid to a regional electricity infrastructure. Such a network is likely to be important in the future because, like Oman, all the Gulf countries are set to experience continuing increased demand for energy. September 2011 53
GOLFUPDATE
GOING STRONGER OER CEO Golf has been a trend-setter among corporate events bringing together business leaders, CEOs and corporate captains to do their networking amidst a round of golf. Ross Cormack, CEO, Nawras, feels that this is an event, which has always clubbed golf and networking in the same breath. Excerpts from an interview: What is Nawras Business? Nawras, the Sultanate’s customerfriendly mobile communications provider, delivers your business innovative, reliable and cost effective telecommunications services backed up by a delightful and pleasing different customer experience through Nawras Business. Communication is essential to every business and at every stage of development so we have created a variety of products and services that not only meet your requirements today but importantly, we will be your telecommunications partner as your business grows. Whether you need fixed services or mobile solutions, Nawras Business is a one-stop shop designed to assist corporate customers from SMEs to large conglomerates. Nawras Business solutions are based on a modular approach allowing businesses to select specific components to meet their specific needs. By combining the different elements, Nawras Business can build tailor-made solutions for your business while retaining flexibility to add new products and services to keep pace with your business development. Telecommunications are constantly evolving and our professional account 54
September 2011
the OER CEO Golf corporate event as it grows from strength to strength with each passing year.
managers will keep you updated on all the exciting new opportunities that will benefit your business and the bottom line. What is your comment on the association between Nawras Business and OER CEO Golf? We are proud to be associated with OER CEO Golf as it is a premier corporate event unmatched in scale and value. Since 2009, Nawras has presented OER CEO Golf in a partnership stemming from the Nawras philosophy to get closer to our customers while making a positive impact on local communities across the Sultanate. Nawras is dedicated to operating its business in a socially responsible manner by being an integral member of the Omani society and a caring company sponsoring charitable events and community organisations as well as supporting numerous sporting programmes. As a key sponsor and supporter of major national events in Oman such as COMEX, the Salalah Tourism Festival and Muscat Festival, Nawras is delighted to present
What is your opinion about OER CEO Golf? Although personally I have limited experience in swinging the golf club, I find that OER CEO Golf is a unique opportunity for the corporate leaders of Oman to link up at Muscat Hills, the country’s finest, and one of the Middle East’s most exciting PGA-standard courses. New comers to the game have the opportunity to get acquainted with the sport through a well thought out induction programme, conducted in a congenial and friendly atmosphere. The best part is that everyone – both the pros and the beginners – jump into the action right from the word go. OER CEO Golf has always been hailed as a very productive and highly enjoyable day by Oman’s corporate leaders.
ENVIRONMENT
A SUSTAINABLE PROJECT Al Hassan Engineeringâ&#x20AC;&#x2122;s Saih Nihayada Gas Depletion Compression (SNDC) project has given special importance to preserve the environment and prevent pollution
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cups and plates. The company also encourages two side printing, electronic mail sending / receiving which also contributed to avoid wastage of papers.
he project site of Saih Nihayada Gas Depletion Compression (SNDC) of Al Hassan Engineering Co. was set up with a special emphasis on environment protection and prevention of pollution. The company has accorded great importance to maintain all equipment in the plant to keep them in good working condition so that emissions from the plant can be controlled. The company could also reduce its water wastage considerably by properly conserving and managing the water. The entire water distribution system is being done through pipes starting from RO Plant to the end user, thereby avoiding transportation through trucks. It helps to save fuel and reduce air pollution. The waste water is recycled through Membrane Bio Reactor Type STP. The water thus produced is of good quality and is being used for irrigation, borrow pits, and dust control. Almost 100 per cent of the water produced is used effectively without being disposing in the evaporation pond.
Reducing pollution As the temporary facilities required 4 MVA (4,000 KVA) of power during the
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In order to reduce the usage of bottled water, the company supplies water produced from Reverse Osmosis Plant to the water coolers through pipeline without storing in the plastic cans. Tests are carried on the water samples collected from the farthest point regularly to check the quality of water through approved laboratory.
construction phase of the project (two years), the company has taken a unique initiative in getting temporary power by tapping the power from nearby overhead line which is 3.2 km away, thereby avoiding the usage of diesel gensets to produce power and reducing pollution and carbon emissions. Other initiatives to reduce the carbon footprint include reduction of the usage of plastic cups and plates and encouraging the usage of glass or porcelain cups, and other environmentally friendly
The company has also used interlocking tiles instead of concrete for walkways in camps. Though the initial cost of construction is more, considering the repeated use of materials for other sites, it works out to be economical. This in turn leads to reduction in carbon emission and also elimination of disposal of concrete debris. Besides, trees were planted in the staff camp as a part of environment protection programme at SNDC site. The company closely monitors the emissions released by the plant and will take steps to control the emissions from time to time.
EDUCATION
MENTORING MAKES A DIFFERENCE Mentoring is fast becoming popular due to its potential as an effective way of helping people to progress in their careers is realised
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mentor, but if a person is worthy of being part of the organisation and who holds ownership towards his / her role can be the possible candidate for the future of the company’s growth.
ll successful organisations create a culture where the acquisition, development, implementation, transfer of skills and knowledge are highly valued. This type of culture simply cannot exist where the practice of mentoring is not a top down initiative. Mentoring is a powerful personal development and empowerment tool. It is an effective way of helping people to progress in their careers and is becoming increasingly popular as its potential is realised. It is a partnership between two or more employees (mentor and mentee) normally working in a similar field or sharing similar experiences. It is a helpful relationship based upon mutual trust, respect and creates a culture of gratitudeness towards the management and the company.
High quality training The BizPro division of National Training Institute (NTI) offers training consultancy that specialises in high quality training solutions and custom designed training programmes to motivate, enhance and generate the best from within an organization. Walk the talk: Mentoring is all about communicating how much you believe in the process of being mentored by telling your mentee how you have benefitted from your mentors, past and present.
Trust: Any relationship between mentor and mentee that is not built upon a foundation of mutual trust and respect won’t be productive and won’t last long.
Choosing your mentees: A person who won’t invest in himself is probably not the right candidate for the long run. Choosing a mentee will also depend upon the passion the mentee has for that profession and the number of years spent in that field. More important is the attitude to provide selfless service to the organisation.
Mentoring requires mutual commitment: Mentoring exercise requires mutual commitment (from mentor and mentee) which involves empathetic approach and flexibility towards the whole process.
Ownership: Effective mentoring programmes while led from the top down are decentralised and driven down to lowest possible levels of the organisation. Not everyone may be a good choice for you to personally
Mentoring efforts can be done on the following five simple steps:
The BizPro training programmes are geared towards helping the employees understand and connect with their essence. This enables them to create enriching and rewarding work-life experiences. The local market requirements combined with international standards in the design of BizPro suite of training programmes, aims at enhancing the business skills of individuals that complement their technical/academic qualifications, so that they can generate a rewarding atmosphere within the workplace, which helps them achieve organisational goals with integrity. The training programmes are designed to take the participants through the various stages of inner development, via experiential learning, step-by-step guidance and motivational exercises. September 2011 57
BY JAMES HARBRIDGE
LEGAL
How to stay away from disputes The more careful you are the lesser will be the possibility of your company being dragged into litigation
The author is a Partner at Curtis, MalletPrevost, Oman
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uite naturally and understandably, any business person wishes to avoid disputes and court cases wherever possible. Here are seven ways in which you can reduce the possibility of your company being involved in litigation.
Exclusions When making a quote for goods and services, it is often good to be specific about what is not included in the quote. The more clarity there is about what the quote does and does not include, the greater is the chance there is that a dispute will not occur. In addition, words in a quote often need to be defined so that there can be no doubts and conflicting interpretations between the parties.
A fresh pair of eyes It makes sense to get a worker unconnected with a bid to review that bid after it has been put together by others. There is more of a chance of errors being spotted by someone who has not been toiling over one document for a number of hours. This is particularly true if the document is being amended from an earlier bid document. There is always a danger that if people are working under stress and time pressure – old terms and 58
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conditions are left out. A fresh pair of eyes is a great safety check for a company.
Supervision The word “Supervision” made in an offer can be dangerous as you may wrongly be held responsible for more than you should be. The word “Supervision” should always be caveated to say what the supervision pertains to, and it is best also to state any limits on such supervision.
Risks Sometimes a client may ask you to try to limit your quote (i.e. to make it cheaper!). Sometimes, a lower price can mean a greater risk in some respect for the customer. It is always best to have an evidential paper trail which shows that you have fully warned the customer in writing of the risk they will be taking if they accept the cheaper price.
A customer’s lack of understanding It can happen that you make something explicitly clear in writing to a customer, and then, in later correspondence, they intentionally or unintentionally state a position which is inconsistent with what you have explicitly told them earlier. In such a scenario, it is always best to repeat and reiterate in writing that which
you have told them earlier. The risk is that your silence may otherwise be perceived by the courts as your consent to a change of position/different state of affairs.
A state of affairs on a given day It can be important, on certain occasions, to photograph, say, a construction site on a given date so that, at a future time, you can prove what the position was at that earlier time. Such photographs should be emailed the very same day to the other party and, ideally, should also be delivered to them, with signed, stamped and dated acknowledgement of receipt being obtained.
A lot can happen in a day Sometimes there is a great pressure and your contractual position with a client, especially in a crisis, may alter dramatically in the course of one working day. This is when a company can be exposed – when there is no paper trail to show why concessions were granted, and for how long. For this reason, it is always best – at the end of the day – to write back to your counterparty, commenting on the decisions that were agreed, and why they were agreed, and the duration for which they will remain in force.
WORLD HEART DAY
SPOTLIGHT
BE THE SENTINEL OF YOUR HEART World Heart Day is commemorated on September 29 every year since 2000 to inform people around the globe that heart disease and stroke are the world’s leading cause of death, claiming 17.1 million lives each year
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ou probably know someone – in your family or among your friends – who has had a heart attack or a stroke (a brain attack). The cardiovascular diseases – diseases of the heart and the blood vessels – are killing more and more people around the world, striking rich and poor alike. Those who survive a heart attack or stroke often need to take longterm medical treatment. If you have ever had a heart attack or stroke, or had to care for someone who has, you will know that these diseases can seriously affect the life of both the patient and his or her family. The effects can even reach beyond the family to the community. Cardiovascular diseases are the world’s largest killers, claiming 17.1 million lives a year. Risk factors for heart disease and stroke include raised blood pressure, cholesterol and
glucose levels, smoking, inadequate intake of fruit and vegetables, overweight, obesity and physical inactivity. Cardiovascular disease is a major cause of disability and premature death throughout the world, and contributes substantially to the escalating costs of health care. Of an estimated 58 million deaths globally from all causes in 2005, cardiovascular disease (CVD) accounted for 30 per cent. This proportion is equal to that due to infectious diseases, nutritional deficiencies, and maternal and perinatal conditions combined. It is important to recognise that a substantial proportion of these deaths (46 per cent) were of people under 70 years of age, in the more productive period of life; in addition, 79 per cent of the disease burden attributed to cardiovascular disease is in this age group.
Between 2006 and 2015, deaths due to noncommunicable diseases (half of which will be due to cardiovascular disease) are expected to increase by 17 per cent, while deaths from infectious diseases, nutritional deficiencies, and maternal and perinatal conditions combined are projected to decline by 3 per cent. Almost half the disease burden in low- and middle-income countries is already due to noncommunicable diseases. A significant proportion of this morbidity and mortality could be prevented through population based strategies, and by making cost-effective interventions accessible and affordable, both for people with established disease and for those at high risk of developing disease. To address the rising burden of noncommunicable diseases, in May 2000, the 53rd World Health Assembly September 2011 59
SPOTLIGHT
WORLD HEART DAY
The earlier, the better Look after your heart, early diagnosis and treatment is critical to avoiding damage to your heart
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ardiovascular diseases are the number one cause of death throughout the world and they kill more people each year based on World Health Organization (WHO) reports, says Dr David Saxton, Medical Director at Muscat private Hospital. Among cardiovascular diseases, Coronary Heart Disease (CHD) is the leading cause of mortality. In its continuous effort to serve better the people of Oman, Muscat Private Hospital (MPH) is expanding its cardiovascular pole by opening a new interventional cardiology department and Cardiac Catheter Laboratory (CCL).
adopted the WHO Global Strategy for the Prevention and Control of Noncommunicable Diseases. In doing so, it placed noncommunicable diseases on the global public health agenda. Since then, WHO has strengthened its efforts to promote population-wide primary prevention of noncommunicable diseases, through the Framework Convention on Tobacco Control and the Global Strategy for Diet, Physical Activity and Health. These activities target common risk factors that are shared by CVD, cancer, diabetes and chronic respiratory disease, and their implementation is critical if the growing burden of noncommunicable diseases is to be controlled. These measures should make it easier for healthy people to remain healthy, and for those with established CVD or at high cardiovascular risk to change their behaviour. However, population wide public health approaches alone will not have an immediate tangible impact on cardiovascular morbidity and mortality, and will have only a modest absolute impact on the disease burden. By themselves they cannot help the millions of individuals at high risk of developing CVD (Table 1) or with an established CVD. A combination of population-wide 60
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Interventional cardiology encompasses a variety of highly specialised procedures applying to the diagnosis and treatment of heart attacks, strokes, valvular heart disease and even congenital heart and vascular conditions. With its state of the CCL, 64-Detectors low radiation CT and cardiac surgery department, MPH is the only private sector hospital in Oman to offer comprehensive and complete cardiovascular services spanning from prevention to diagnosis and finally to the most advanced treatment options including coronary artery stenting and open heart surgery.
strategies and strategies targeted at high risk individuals is needed to reduce the cardiovascular disease burden. The extent to which one strategy should be emphasized over the other depends on achievable effectiveness, as well as costeffectiveness and availability of resources.
CVD prevention and control: missed opportunities Although many cardiovascular diseases (CVDs) can be treated or prevented, an estimated 17.1 million people die of CVDs each year. A substantial number of these deaths can be attributed to tobacco smoking, which increases the risk of dying from coronary heart disease and cerebrovascular disease 2-3 fold. The risk increases with age and is greater for women than for men. In contrast, cardiac events fall 50 per cent in people who stop smoking and the risk of CVDs, including acute myocardial infarction, stroke and peripheral vascular disease, also decreases significantly over the first two years after stopping smoking. Continuing to smoke after myocardial infarction or coronary revascularisation can have serious clinical consequences. Even eight years after myocardial infarction, the mortality of postmyocardial infarction patients who
The MPH can now provide you with the best in accurately diagnosing disease of the heart and immediately outline treatment options. The most important aspect of the investment we have made in bringing this service to the private sector in Oman is that it will save lives and provide our patients with early intervention and treatment, says Hospital Administrator Murad Kucukkaya. Give your Heart a medical at the Muscat Private Hospital Heart Centre. For appointments contact on 24597815.
continue to smoke is double that of quitters. Further, those who do not stop smoking after coronary revascularisation also have a two-fold higher risk of reinfarction and death. Studies indicate that although doctors are knowledgeable about the risks of CVDs associated with tobacco smoking, they are not sufficiently prepared to help their patients stop smoking. Even though physicians identify a substantial number of smokers during consultations, for example, many patients do not receive counseling to help them quit. Smoking cessation is the most cost-effective intervention for patients with documented CVDs, and efficacious programmes have been developed. The challenge is to get these programmes more widely used, and doctors and nurses should seize every opportunity to encourage patients to stop smoking. The mission of the WHO Cardiovascular Diseases Programme is to provide global leadership in the prevention and control of CVDs, and to assist Member States reduce the toll of morbidity, disability and premature mortality due to CVDs.
Key messages to protect heart health 1. Heart attacks and strokes are major â&#x20AC;&#x201C; but preventable â&#x20AC;&#x201C; killers worldwide.
SPOTLIGHT
WORLD HEART DAY
An impressive legacy Badr Al Samaa has one of the best cardiac departments in the private health sector in the Sultanate, offering Acute Coronary Care Unit (ICCU) and Thrombolytic Therapy (clot dissolving treatment)
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adr Al Samaa Hospital was a dream come true of a group of eminent and renowned visionaries having respected name in business and social fraternity especially in the Middle East. It was aimed to provide world-class, specialised and superior multi-specialty health care at affordable cost complimented by warmth of human touch for the growing population of the Sultanate. Its maiden venture was commissioned in 2002 at Ruwi and within short span of seven years the group is positioned as the largest private sector health care group in the Sultanate, spreading its wings across the length and breadth of the country’s major places such as Al Khuwair, Sohar, Salalah, Al Khoud, Barka, Sur and Nizwa. The system is manned by a team of renowned specialists and medical personnel from over 20 disciplines aggregating around 250 caring minds who are supported by another group of 1000 experienced nursing, paramedical and other skilled supporting staff offering all round health care to suit all individual needs. The advanced technological know-how and equipment
2. Over 80 per cent of cardiovascular disease deaths take place in low-and middle-income countries and occur almost equally in men and women. Cardiovascular risk of women is particularly high after menopause. 3. Tobacco use, an unhealthy diet, and physical inactivity increase the risk of heart attacks and strokes. 4. Cessation of tobacco use reduces the chance of a heart attack or stroke.
combined with expertise ensures the best in diagnostic, curative as well as preventive aspects of healthcare. As a result of years long hard work Badr Al Samaa‘s presence is felt all over GCC countries through its Al Hilal Hospital in the Kingdom of Bahrain and Badr Al Samaa Medical Centre in Dubai. All its centers are open 24 hours for emergency service with mobile intensive care ambulance facility and supported with the round-the-clock laboratory with highest level of quality control conforming to global standards led by a pathologist, well stocked pharmacy manned by experienced pharmacists offering, medicines and specially trained to take care of patient needs and answer their queries. Badr Al Samaa’s presence is a great relief to the corporate sector too. It offers medical service to them in the most economical manner without compromising on its professional integrity. Today we cater to more than 850 corporate clients including Oman Air, Bank Muscat, HSBC Bank, PDO, and Oman LNG, NBO etc. and
a day, also helps to prevent heart attacks and strokes. 7. High blood pressure has no symptoms, but can cause a sudden stroke or heart attack. Have your blood pressure checked regularly. 8. Diabetes increases the risk of heart attacks and stroke. If you have diabetes control your blood pressure and blood sugar to minimise your risk.
5. Engaging in physical activity for at least 30 minutes every day of the week will help to prevent heart attacks and strokes.
9. Being overweight increases the risk of heart attacks and strokes. To maintain an ideal body weight, take regular physical activity and eat a healthy diet.
6. Eating at least five servings of fruit and vegetables a day, and limiting your salt intake to less than one teaspoon
10.Heart attacks and strokes can strike suddenly and can be fatal if assistance is not sought immediately
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even it is operating a fully equipped emergency clinic in the Sohar Port with ambulance facility. Badr Al Samaa has one of the best cardiac departments in the private health sector in the Sultanate. The Department has the service of some of the experienced Cardiologistis such as Dr Benny Panakkal BSc, MBBS, MD. (Internal Medicine) DM (Cardiology), FCAPSC, and Dr S N Sharma, MD, DM, FICC, FICP, FISE, FISAEM. They are assisted by a team of doctors and dedicated Nursing staff. This is the first department in the private health sector to offer Acute Coronary Care Unit (ICCU) and Thrombolytic Therapy (clot dissolving treatment) in the event of a heart attack. This is the first cardiac centre in the private sector to start stress echocardiography. Latest addition in the department is the implementation of live 3D echocardiography, the first of its kind in the Sultanate. Badr Al Samaa offers ICCU care with clot dissolving treatment in the event of a heart attack.
What are cardiovascular diseases? Cardiovascular diseases (CVDs) are a group of disorders of the heart and blood vessels and include: • coronary heart disease – disease of the blood vessels supplying the heart muscle • cerebrovascular disease – disease of the blood vessels supplying the brain • peripheral arterial disease – disease of blood vessels supplying the arms and legs • rheumatic heart disease – damage to the heart muscle and heart valves from rheumatic fever, caused by streptococcal bacteria • congenital heart disease – malformations of heart structure existing at birth
SPOTLIGHT
WORLD HEART DAY
Heart-healthy lifestyle Cardiovascular (heart) disease and stroke are the major cause of death in this part of the world
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ne reason is undeniably a lack of commitment to a hearthealthy lifestyle. Your lifestyle is not only your best defence against heart disease and stroke, it’s also your responsibility. A heart-healthy lifestyle includes the ideas listed in the heart below By following these three simple steps (ABC) you can reduce all of the modifiable risk factors for heart disease, heart attack and stroke. A: Avoid Tobacco B: Become more active C: Choose good nutrition Quit Smoking If you smoke, quit. If someone in your household smokes, encourage them to quit. We know it’s tough. But it’s tougher to recover from a heart attack or stroke or to live with chronic heart disease. Commit to quit. We’re here to help if you need it. Remember passive smoking is equally bad as active smoking. Reduce Cholesterol Fat lodged in your arteries is a disaster waiting to happen. Sooner or later it could trigger a heart attack or stroke. You’ve got to reduce your intake of saturated fat, trans fat and cholesterol
• deep vein thrombosis and pulmonary embolism – blood clots in the leg veins, which can dislodge and move to the heart and lungs. Heart attacks and strokes are usually acute events and are mainly caused by a blockage that prevents blood from flowing to the heart or brain. The most common reason for this is a build-up of fatty deposits on the inner walls of the blood vessels that supply the heart or brain. Strokes can also be caused by bleeding from a blood vessel in the brain or from blood clots. 64
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and get moving. If diet and physical activity alone don’t get those numbers down, then medication may be the key. Take it just like the doctor orders. Choose good nutrition A healthy diet is one of the best weapons you have to fight cardiovascular disease. The food you eat (and the amount) can affect other controllable risk factors: cholesterol, blood pressure, diabetes and overweight. Choose nutrient-rich foods – which have vitamins, minerals, fiber and other nutrients but are lower in calories – over nutrient-poor foods. A diet rich in vegetables, fruits, whole-grain and high-fibre foods, fish, lean protein and fat-free or low-fat dairy products is the key. And to maintain a healthy weight, coordinate your diet with your physical activity level so you’re using up as many calories as you take in. Control your Blood pressure It’s the single largest risk factor for stroke. Stroke is a major killer and one of the leading causes of disability. Stroke recovery is difficult at best and you could be disabled for life. Shake that salt habit, take your medications as recommended by your doctor and get moving. Those numbers need to get down and stay down. Your goal is less than 120/80 mmHg.
What are the risk factors for cardiovascular disease? The most important behavioural risk factors of heart disease and stroke are unhealthy diet, physical inactivity and tobacco use. Behavioural risk factors are responsible for about 80 per cent of coronary heart disease and cerebrovascular disease. The effects of unhealthy diet and physical inactivity may show up in individuals as raised blood pressure, raised blood glucose, raised blood lipids, and overweight and obesity; these are called ‘intermediate risk factors’.
Exercise Be physically active every day. Research has shown that getting at least 30 minutes of physical activity on 5 or more days of the week can help lower blood pressure, lower cholesterol and keep your weight at a healthy level. But something IS better than nothing. If you’re doing nothing now, start out slow. Even 10 minutes at a time may offer some health benefits. Studies show that people who have achieved even a moderate level of fitness are much less likely to die early than those with a low fitness level. Watch your weight Obesity is an epidemic, not only for adults but also for children. An epidemic is when a health problem is out of control and many people are affected by it. Fad diets and supplements are not the answer. Good nutrition, controlling calorie intake and physical activity are the only way to maintain a healthy weight. Obesity places you at risk for high cholesterol, high blood pressure and insulin resistance, a precursor of type 2 diabetes – the very factors that heighten your risk of cardiovascular disease. Your Body Mass Index (BMI) can help tell you if your weight is healthy.
There are also a number of underlying determinants of CVDs, or, if you like, “the causes of the causes”. These are a reflection of the major forces driving social, economic and cultural change – globalisation, urbanisation, and population ageing. Other determinants of CVDs are poverty and stress. What are common symptoms of cardiovascular diseases? Often, there are no symptoms of the underlying disease of the blood vessels. A heart attack or stroke may be the first warning of underlying disease. Symptoms of a heart attack include:
www.starcarehospital.com
Round-the-clock expert care that wins your confidence SPECIALTIES: > 24 hours Emergency Medicine with Ambulance Service > Internal Medicine > Obstetrics & Gynaecology t Neonatal ICU facilities
> Paediatrics and Child Health > Orthopaedics & Trauma Surgery t Joint Replacements t Sports Medicine t Spine Surgery t Physiotherapy & Rehabilitation
> Ear, Nose & Throat (ENT) & Audiology > General and Laparoscopic Surgery t Day care Surgery facilities
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t ICU & HDU facilities
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PO Box 198, PC 101, As Seeb, Muscat, Sultanate of Oman, Tel +968 24557200, Fax +968 24557201
EMER
NCY SE GE
24
ICE RV
Being a part of the Starcare Health Systems UK, we have dedicated ourselves to ensure world-class quality and service to meet all your healthcare needs under one roof. That is why, we are beyond just clinical assistance. Our healthcare specialists, who come with years of experience, work round the clock to win a smile on your face. We are determined to gain your conďŹ dence.
HOURS
SPOTLIGHT
WORLD HEART DAY
12 Tips for a Healthy Heart Dr Parthiban T – MD. DM, Cardiologist, Apollo Medical Centre, Muscat • Have a compulsory annual medical checkup - this is the most fundamental rule of good health. When a man is over 45 years, and the woman is over 55 years of age, their risk of having a heart attack starts to rise significantly. • Get out of that sedentary lifestyle. Even every day activities such as climbing stairs, carrying the groceries, gardening etc cuts your risk of heart attack by half. • Anger can be fatal for cardiac patients. Anger counseling has helped reduce recurring hostility and stress by over 70 percent. • Stressful jobs are responsible for heart attacks. As many as 90 per cent of all situations that cause us stress are trivial and inconsequential. • Laughter therapy has been
• pain or discomfort in the centre of the chest; • pain or discomfort in the arms, the left shoulder, elbows, jaw, or back. In addition the person may experience difficulty in breathing or shortness of breath; feeling sick or vomiting; feeling light-headed or faint; breaking into a cold sweat; and becoming pale. Women are more likely to have shortness of breath, nausea, vomiting, and back or jaw pain. The most common symptom of a stroke is sudden weakness of the face, arm, or leg, most often on one side of the body. Other symptoms include sudden onset of: numbness of the face, arm, or leg, especially on one side of the body; confusion, difficulty speaking or understanding speech; difficulty seeing with one or both eyes; difficulty walking, dizziness, loss of balance or coordination; severe headache with no known cause; and fainting or unconsciousness. 66
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scientifically proven as good for health. Laughter reduces blood pressure, stress, cancer and heart problems. • Exercisers survive heart attacks. Regular exercise strengthens the heart muscles and reduces heart activity by a million heart beats each month. • Genetics do play a part too - you can inherit a higher risk of heart attack from your parents, and/or their parents. • Those with diabetes have a higher risk of developing several diseases and conditions, and many of them contribute to a higher risk of heart attack. • Eat in moderation. Stop eating while you are still hungry. As obesity rates are fast rising in our country, experts believe that heart attacks will
People experiencing these symptoms should seek medical care immediately. Why are cardiovascular diseases a development issue in low- and middle-income countries? Over 80 per cent of the world’s deaths from CVDs occur in low- and middleincome countries. People in low- and middle-income countries are more exposed to risk factors leading to CVDs and other noncommunicable diseases and are less exposed to prevention efforts than people in high-income countries. People in low- and middle-income countries who suffer from CVDs and other noncommunicable diseases have less access to effective and equitable health care services which respond to their needs (including early detection services).As a result, many people in low- and middle-income countries die younger from CVDs and other
become more common in the future. • Almost 35 per cent of all heart related deaths are directly related to cigarette smoking. Every 10 seconds someone somewhere is dying of cigarette smoking. • A mixture of fruit and vegetable juices will give you the antioxidants you need to rid your body of free radicals and toxins. Tomatoes, lemon, spinach, carrots, broccoli, onions and garlic reduce cholesterol and fight free radicals’ damage. Fish contains omega fatty acids, which are good for the heart. • Watch out for your blood cholesterol levels. If they are high, be aware that you would be running the risk of developing blood clots in your arteries. Blood clots can block the supply of blood to the heart muscle, causing a heart attack.
noncommunicable diseases, often in their most productive years.The poorest people in low- and middleincome countries are affected most. At household level, sufficient evidence is emerging to prove that CVDs and other noncommunicable diseases contribute to poverty. For example, catastrophic health care expenditures for households with a family member with CVD can be 30 per cent or more of annual household spending. At macro-economic level, CVDs place a heavy burden on the economies of low- and middle-income countries. Heart disease, stroke and diabetes are estimated to reduce GDP between 1 and 5 per cent in low- and middle-income countries experiencing rapid economic growth, as many people die prematurely. For example, it is estimated that over the next 10 years (2006-2015), China will lose $558bn in foregone national income due to the combination of heart disease, stroke and diabetes.
The Apollo
CALL 24787766
CHEST PAIN CLINIC
P.O. Box 1097, Al-Hamriya, PC 131, Sultanate of Oman Tel: +968 24787780, 24782666 Email: info@apollomuscat.com â&#x20AC;˘ Website: www.apollomuscat.com
AUTOTALK
A PATHBREAKING EFFORT
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THE RANGE ROVER EVOQUE IS ONE OF THE MOST EAGERLY ANTICIPATED LAUNCHES OF 2011. MAYANK SINGH TEST DRIVES THE SUV IN LIVERPOOL, UK TO SEE WHETHER IT LIVES UPTO THE HYPE AND EXCITEMENT
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ange Rover Evoque – the new mini-sport utility vehicle – is the smallest, lightest, most fuel-efficient vehicle Land Rover has ever built. The Evoque is one of the most innovative and interesting cars to come out from Land Rover since the original Range Rover 41 years ago. What’s more, it’s also one of the most desirable. The Evoque is aimed at a younger, more fashion-conscious audience than that which the company traditionally targets. Land Rover says that 90 per cent of Evoque buyers will be new to the brand and younger, more urban and a lot more female than its traditional customers. The owners will love the Evoque as much for its origins 67 years ago, when Maurice Wilks sketched the first Land Rover in the sand at Red Wharf Bay in Anglesey, as for its striking looks derived from the LRX 2008 Detroit show concept. The Evoque’s authenticity matters even if it is aimed at a new generation of urbanites. Drive this car anywhere and heads will turn. Most makers like to think there’s a buzz behind their launches, but on this one there is, with an unprecedented 18,000 orders already. Gerry McGovern’s design team has done a wonderful job. From the glittering lamps to the rally-like wheel arches and rear spoiler, the Evoque exudes crispness and desirability.
EXTERIOR AND INTERIOR It’s gorgeous, aggressive, contemporary, coupé-like styling is extremely faithful to the LRX concept that was unveiled in 2008, which is a pleasant surprise, since most road cars are toned down dramatically by the time they reach production. The Evoque’s interior is comfortable, well appointed and, if you opt for the panoramic glass roof, light and airy. The delight continues in the cabin, with glistening switches and dials from pricier Range Rover models and beautifully upholstered and supportive seats in the front which, with the adjustable steering column, give a perfect driving position. Features from a higher grade of cars include one-touch interior lighting and the split-screen centre console display, which allows passengers to watch television or DVDs while the driver can see only the satellite navigation. The chassis has been carefully wrought to make the most of its Freelander-derived independent suspension. The swaying induced by a tall ride height is partly assuaged by savings in top weight and unsprung mass, with an aluminium bonnet, roof and suspension components, and composite plastics one-piece tailgate. Weighing in at 1.64 tonnes (plus 62lb for the optional panoramic glass roof), the Evoque is 220lb less than the Freelander,
September 2011 69
which also helps to reduce fuel consumption and CO2 emissions.
DRIVE QUALITY Within moments of setting off, it becomes obvious that the Evoque drives as well as it looks. In motion, it feels every bit as luxurious as its larger brethren, cruising comfortably regardless of speed. It’s smooth and well-mannered around town and remarkably quiet when hurtling along motorways. The Evoque handles well, too. Throw it into a corner and you can’t fail to be impressed by its vice-like grip – even in wet, treacherous conditions. It behaves in a very coupé-like manner, rewarding drivers who push it to the limit. This car is surprisingly capable off road, too. It displays an impressive range of abilities, scaling hills of up to 45 degrees, dredging through up to 500mm of water, and generally getting itself through situations that would leave ordinary road cars stranded. The Evoque has the power to make the 70
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most of its excellent suspension. Two engines are available, the first being a 2-litre, turbocharged petrol unit that produces 240bhp and 340Nm of torque. The engine, available with a six-speed automatic gearbox and four-wheel-drive transmission only, is potent enough for a 7.1-second 0-60mph time and a 135mph top speed, which feels more than quick enough from the Evoque’s raised driving position. Land Rover quotes combined fuel economy of 40.9mpg, while CO2 emissions are rated at 199g/km, although Land Rover plants trees to offset this for the first 45,000 miles of the vehicle’s use. Land Rover also provides the option of a 2.2-litre diesel engine with a choice of six-speed automatic or six-speed manual gearbox, and twoor four-wheel drive transmissions. The most eco-friendly of these options is the eD4 2WD manual model, which returns 62.8mpg and CO2 emissions of 133g/km. The Evoque’s dynamic handling comes courtesy of an optional adaptive dynamics suspension-damping system. It also feels
completely different to drive, similar to a car in response but with an off-roader’s driving position. At medium-fast speeds it rides firmly, but is supple and positive over bumps. There’s enough suspension travel to shrug off most potholes, but it’s asking a lot of a single set of dampers to provide off-road agility and 100mph swerve safety combined with stability and ride comfort. Land Rover’s engineers have managed pretty well even with the standard steel suspension, the off-road ability is compromised by a lack of suspension travel and the electronic traction but hill descent features make up for a lack of mechanical traction. The electronic power-assisted steering is almost brilliant but for occasionally variable weighting. The brakes are powerful, with a linear pedal feel. Driven hard, the Evoque is fun, safe and more rewarding than anything in its class. You can also opt for the Magnaride adjustable dampers, which extend the Evoque’s competence and sporting capabilities across a wider range of road types. All in all, the Range Rover Evoque is fabulous fun to drive both on and off road.
BROWSINGCORNER
M
illions of people are now global business workers of some kind. Even though they might not use the term as such, they are buying, selling, managing and operating all over the world, but often have little preparation for the job. This book provides ten practical ways to enable the ‘global you’ to think, behave and operate in the appropriate global way. The 10 strategies here, based on extensive research undertaken by the authors on successful global players, are designed to help anyone cope with cultural challenges and, just as important, the practical implications of operating beyond familiar environments. From thinking global to learning to work in a multicultural context and updating your communications skills to learning to manage your time across time zones , The Global You is both informative and practical for anyone whose work takes them out of their home country.
NECESSITY RATHER THAN A CHOICE DEDICATED TO FUTURE GLOBAL MANAGERS, THE GLOBAL YOU DOVETAILS TEN STRATEGIES FOR ACHIEVING SUCCESS AS A WORKING EXPAT. AN OER REVIEW
The publication featured in Browsing Corner is provided by WHSmith Bookstore
In a new guise The book reiterates the fact that we live in a complex world and both companies and individuals need to break out of their national silo’s and develop a global state of mind. The Global You repeatedly makes the point that thinking globally is a discipline which extends from learning new languages to attending funerals in Soweto or weddings in Bombay. An interesting section challenges the widespread belief that people hate change, noting that many of us are fascinated by innovation, news and gossip. Not everybody will agree with this observation; some of us like change and some don’t but it is an interesting corrective to the general view, common in management and politics that change is impossible.
The authors provide a tenstep plan for becoming more globally aware and better able to work with people of other beliefs, customs and languages. These steps include: ¡ Think global ¡ Learn to work in a multicultural environment ¡ Travel ¡ Learn a language ¡ Learn how to learn when you’re outside the classroom ¡ Go virtual but stay ‘real’
Each chapter contains reallife examples from global workers’ lives, suggestions and exercises.
THE GLOBAL YOU By Susan Bloch and Philip Whiteley Publisher: Marshall Cavendish Pages: 172 ¡ Treat multicultural teamwork as a core skill ¡ Build your network ¡ Raise your global profile
¡ Manage your time when dealing with friends, family and colleagues in different time zones
The authors point out in the introduction: “Even if you want to work for a “national” company, that option is rapidly disappearing. You are part of the global economy, and most probably a multicultural working experience, whether that was your career plan or not.” And The Global You provides a simple blue print for those who would like to train themselves to think beyond their shores.
Cut out this coupon from OER and present it at the WHSmith’s bookstore in Jawarat Al Shatti to claim a 10 per cent discount on the book featured in the September 2011 issue, or 5 per cent discount on all other books.
*This coupon cannot be combined with any other in-store promotions. Offer valid until November 30, 2011.
September 2011 71
Volkswagen with a chic new design
The all-new Jetta, Volkswagen’s resigned model, has arrived in Oman at an unbelievably affordable price. The all-new Jetta is totally redesigned with new chic contours and is packed with features that all Volkswagen enthusiasts have come to expect. This car is by far one of the most affordable models in the market right now, providing customers with fantastic
value for money and high levels of driving performance. The all-new Jetta comes with a 2.0 litre petrol engine, producing 85kW/115 bhp, in addition to a 6-speed automatic transmission gearbox. Larger and more comfortable, sustainable and dynamic, the designers and engineers have also crafted the interiors of the five seater down to the last detail.
Popular Pajero
In the 15 years since its introduction to the Omani market, the Mitsubishi Pajero has become and remains one of Oman’s most well loved and respected SUVs – a world class vehicle ideally suited to the varied terrain of Oman and perfect for families seeking comfort, space, power and performance. Whether individuals select the long wheel base 3.8 GLS or short-wheel version, or 72
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go for the nimble qualities of the 3.5 Pajero Sport, they are guaranteed to be buying a vehicle that get them anywhere they want to be in comfort and style. The seven seater long-wheel base remains the most popular model – offering both space and comfort for large families looking for adventure or simply to travel around town or across the country to visit friends and relatives.
Unmatched MercedesBenz E 63
The Mercedes-Benz E 63 AMG has always been the businessman’s dirty secret. A pinstriped wolf in sheep’s clothing, the thunderous AMG sports saloon masquerades as a refined and palatial vehicle for the corneroffice elite. Yet beneath its distinguished exterior lies its true character; a huffing, snorting mechanical beast,
ever-ready to devour its more placid contemporaries in the corporate lot with its roaring engine note and unmatched performance. Available in both saloon and estate variants, the base level E 63 AMG produces 525 hp and 700Nm of torque which can be called upon across the rev range between 1750 and 5000rpm.
Hottest Mitsubishi Lancer EX One of the hottest cars to check out this summer will be the Mitsubishi Lancer EX. Loved by the top Omani rally stars and the driving force behind the creation of the Mitsubishi Oman Evo Club – it is available from showrooms across Oman in its GLX 2.0, GLS 2.0 and GT 2.0 versions. For both the ambitious and the bold driver – there is no option but the Lancer EX GT 2.0. The ultimate driving
machine of the range, it has stunning looks and aggressive styling with aerodynamic lines, a racing inspired paddle shift gear changer to shift into overdrive that helps ensure every drive is a truly memorable experience. The calmer driver is likely to opt for the new GLS 2.0 that gives them space and luxury but with a six speaker sound system to block out the noise of the city.
Nissan launches Juke
New Audi A6 One of the most exciting new models from Wattayah Motors is the new Audi A6. The new Audi A6, is the successor to the world’s most successful executive sedan, and comes to Oman with two V6 engines. The 204 hp 2.8 FSI and the 300 hp 3.0 TFSI models both feature the new S tronic transmission and latest generation of quattro fourwheel drive. With its light
Suhail Bahwan Automobiles, the exclusive importers and distributors of Nissan vehicles in Oman, unveiled Nissan’s new and aggressively styled compact crossover vehicle, Nissan Juke that is fitted with world’s first mass produced dual injector 1.6L engine. The
stylish Juke, with world’s first mass produced dual-injector 1.6L engine, is expected to shake up Sultanate’s crossover market. The unveiling event marked Suhail Bahwan Automobiles as the first distributor in the Middle East to introduce Nissan Juke.
New Jeep Grand Cherokee
body, sporty chassis and a wide array of new assistance and multimedia systems, the executive sedan features groundbreaking solutions in every area of technology. It has also been specially developed for the Middle East region with the performance of the highly efficient four-zone automatic air conditioning system and the multi-media system available in Arabic.
Comes Geely’s Emgrand The most stunning cars from Geely International Corporation’s Emgrand range are now available in Oman. The Towell auto Centre (TAC) has recently launched Geely Embrand’s LC, EC 7 (Sedan and Hatchback), and EC 8 (2.0L and 2.4L) models at their showroom in Wattayah. A fast developing
automobile manufacturer, Geely International Corporation makes quality cars that are environment friendly and energy efficient. Having a 1.3L DOHC, 4 cylinders 5 Speed Manual, the popular Geely Emgrand LC is equipped with an Audio System, AM/FM radio with CD Player and MP 3 facility.
Favourite Dodge Charger
The new Jeep Grand Cherokee, exclusively available in Oman from Dhofar Automotive, comes in four models including the all new Pentastar 3.6 Litre Larido and LTD DOHC V6 which will provide drivers with 40 per cent more power than its predecessor and the 5.7 Litre Overland and LTD HEMI MDS Litre V8. Reflecting the premium brand 73
characteristics of Jeep, the new Grand Cherokee comes complete with a five year or 100,000km “bumper to bumper” warranty package that covers all servicing costs, parts and repairs during this period – ensuring peace of mind for thousands of kilometers of enjoyable motoring in Oman. The all new Jeep Grand Cherokee was launched last December.
America’s iconic new-look muscle car, the Dodge Charger, exclusively available from Dhofar Automotive, was set to be a Ramadan favourite for car buyers. The all new 2011 Charger was only launched in May and delivers a truly thrilling driving experience that will delight drivers across Oman. An established favourite
among men and women drivers in the Sultanate the Charger has an iconic character, contemporary fastback four-door coupe proportions, world-class performance, craftsmanship and refinement, and state-ofthe-art connectivity features coupled to no less than 65 separate safety features on the Dodge brand’s flagship.
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BankDhofar hosts football tournament in Salalah As part of its Gold Sponsorship of the Salalah Festival for 2011, BankDhofar hosted an actionpacked football tournament during the last week of the Festival. An excited crowd gathered over the four days to cheer on their teams and to see some former players from the Oman team showcase their skills. The highly coveted BankDhofar Cup was presented to the winning team, Dhofar Club, by Awadh Mohammad Jamaan Al Se’ari, the director general of youth affairs at Dhofar Region. All
participants in the tournament, including players, coaches and the organisers received gifts to commemorate the event and the spectators competed to win some fun raffle prizes.
Al Araimi complex offers winning deals of the season The much awaited annual promotion at Al Araimi Complex kicked off drawing many shoppers to try their luck at winning a host of attractive prizes that the complex is giving away. The three-month long promotion comprises two draws on August 27 and September 26 and a Mega Draw on October 26, the winner of which will be a proud owner of an all new Dodge Challenger. In addition, three Dune
Buggies will be given away from Polaris, Fairtrade Auto, one in each of the three draws. Other attractive prizes include JVC LCD TVs, Bose Dock systems, i-Pads, Touch i-Pods, Osim Foot massagers, Al Araimi Gift Vouchers and many more. On purchase of goods worth RO20, shoppers will need to collect their coupon on the same day of purchase and enter one part for the monthly draw and the other for the mega draw.
A’Saffa’s new tasty chicken products A’Saffa Foods has introduced an exciting range of four new convenient meals aimed at delighting all the family. Supermarkets across the Sultanate are now stocking the new range of tasty meals that include Chicken Tikka, Chicken Meatballs, Shish Taouk and Chicken Seekh Kebabs that are all easy to cook and specially marinated to perfection to give families a great tasting 74
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and healthy meal. As an Omani company with its own high quality chicken farms and production facility at Thumrait in the south of Oman, A’Saffa is able to offer its customers a guarantee that their food is truly Halal and also produced using state of the art technology and with the healthiest feed and the best conditions to ensure the best tasting and best quality chicken products.
Lulu opens its 10th venture at Nizwa HE Sheikh Saad bin Mohammed al Saadi, Minister of Commerce and Industry, inaugurated Lulu’s newest landmark at Nizwa, at a glittering ceremony in the presence of dignitaries and officials from the government and the private sector. This marks Lulu’s 10th venture in Oman and the 95th in the region, following an aggressive expansion policy that saw it opening several new stores in the cities and wilayats during the past ten years. It reinforces the policy of the Lulu group’s dedicated efforts to spread its network throughout the length and breadth of the country, creating vital
connect with consumers. “With plans of reaching 100 stores by the end of the year, Lulu is all set to embark on an aggressive growth plan”, says Yusuffali, managing director of Lulu group, who attributes the group’s successful presence in the country to the goodwill of the people and the government.
Nawras launches affordable handsets Nawras is now offering a handset bundle with prepaid welcome pack for the fantastically low price of only RO8.900. The Huawei G2100 is ideal for anyone looking for an affordable phone which is easy to use. Great value does not mean a compromise on features. The impressive G2100 has a colour screen, speakerphone, torch, FM radio that operates without a headset, call waiting and a minimum of four
days of battery life. Customers can use profiles and send SMS to a maximum of 10 recipients at one time. Three different times can be set on the alarm clock and two games are included. A notepad, stopwatch and calendar are also conveniently found on this handset. This innovative and very attractively priced G2100 handset bundle can be found at all 25 Nawras stores until October 23 2011.
Alpen, Sarasin-Alpen to aid Mutrah Alpen Capital, Oman along with its associate, Sarasin-Alpen, Oman pledged their support to the Social Development Committee of Wilyat of Mutrah. Rohit Walia, executive vice chairman and CEO of Alpen Capital and Sarasin-Alpen Group along with Atul Rao, senior executive officer, Sarasin Alpen, Oman presented a cheque of RO4000 to HE Sheikh Yahya bin Nasser Al Harasi, Wali of Mutrah and President of the Social Development Committee to support the committee’s projects. The
amount will be used to help achieve an improved lifestyle for the needy and to reduce their hardships.The social development committee for the Wilayat of Mutrah under the leadership of HE Wali of Mutrah gives great importance to housing projects, social development and the welfare of low income people. The committee sponsors charity work, provides care to the handicapped and works towards providing training and partial scholarships.
GPS management receives award from Omar Al Wahaibi
Gulf Petrochemical Services & Trading along with its partners Green Line Company and Vadnais Microtunnelling celebrated five million man-hours without LTI in their Contract A’Seeb Wastewater Project (C2) for Haya Water recently. The scope of work in A’Seeb Wastewater Project (C2) included one of the longest micro-tunnelling activities ever undertaken in the country. The banquet meeting was attended by dignitaries including Omar Al Wahaibi, CEO of Haya Water and officials from Muscat Municipality,
Royal Oman Police along with senior management of Haya Water and Parsons International & Company. On the occasion, Wahaibi expressed his appreciation on completing five million man-hours safely and congratulated the entire project team for their successful efforts and presented awards. Director of GPS, Cecil Abreo, senior area manager of Haya water Mohammed El Gemaiey, project manager of Parsons Demetrios and resident engineer Sajeev also spoke on the occasion.
5th Oil and Gas directory launched The fifth edition of Oman Oil and Gas.Com, the first specialised oil and gas directory of its kind, in Oman, was recently launched. Nick Pattison, CEO, OPAL presented a personalised copy of the directory to Nasser Khamis Ali al Jashmi, Under-Secretary, Ministry of Oil and Gas.The user friendly directory at a glance provides information about the product/brand, services and a brief company profile. Pattison says, “Oman Oil and Gas.
Com provides comprehensive information about the Oil and Gas industry in Oman. We are therefore delighted to be associated with it.” In its endeavour to make the directory more user-friendly, the directory is also available online OmanOilAndGas.Com and also contains information about the petrochemical sector in not only Oman but also the other GCC countries like Bahrain, Qatar, Kuwait, Saudi and UAE.
Nokia Care Centre opens in Salalah
Dunkin’ launches cold chocolate drink DUNKIN’ DONUTS, the world’s largest coffee and baked goods chain, has recently introduced a new refreshing cold chocolate beverage drink topped with Kit Kat chocolate that packs all the flavour of its renowned regular hot coffee, but at a chilled temperature that promises to help take the heat out of the summer.
David Rodgers, DUNKIN’ DONUTS general manager, is convinced that the new drink will prove a hit during the hot summer months, when customers prefer a drink that will cool them down, but still demand the same superior taste from the brand’s signature blend. “All our coffee comes from selected high grade beans and DUNKIN’ DONUTS has a justifiable reputation for brewing the best coffee,” he says. “The refreshing beverage is ideal for our busy customers needing a quick nourishing drink with the goodness of cold chocolate. This beverage is ideal as a light in between snack at any time of day that would provide quick energy throughout the day,” he adds.
Belltel announced the opening of its new Nokia Care Centre in Salalah under the auspices of HE Eng Ahmed bin Hassan Al Deeb, undersecretary at the Ministry of Commerce. The centre was inaugurated by Tom Ferrell, general manager Nokia Lower Gulf and Malik Al Khalidi, managing director, Belltel. The centre offers a holistic
solution to consumers providing not only repair assistance, but also support for Nokia services including the Nokia Ovi Store, Nokia Music Store and, Nokia Mail for exchange as well as Nokia messaging. The Care Centre is the latest addition to the already existing two Nokia Care branded touch points around the Sultanate. September 2011 75
It's time for action!
December 2011
86%
population aged below 40 years , and *
15%
unemployment rate **
The time for discord and dissension is over... It is time now to collaborate and define a realistic way forward on one of the most contentious issues facing Omanâ&#x20AC;&#x2122;s economy. Introducing, Oman Forum - a unique national platform that brings together key stakeholders to discuss opportunities and challenges facing the economy - and to present the way forward on critical issues. Oman Forum 2011 will facilitate a high level government-corporate-academia dialogue for building and developing Omanâ&#x20AC;&#x2122;s national talent pool.
An initiative by
*Source: MONE Monthly Bulletin (June 2011) **Source: ILO Decent Work Country Programme (June 2010)
In association with
Ministry of Civil Services
Knowledge Partner
The Research Council
For partnership enquiries please contact: AHMED 99356490
Media Partners
AESTHETICALLY DESIGNED Samsung introduced a new era of home entertainment with the new D series of SMART TVs, the ultimate entertainment technology. Despite stiff competition in this segment, where outstanding and superblydesigned products make a huge impact on consumers’ purchasing decisions, Samsung was able to firmly establish its leadership. Samsung’s aesthetically designed SMART TVs make a perfect accessory in any home. While the Smart Design slices the television’s thickness down to mere a 5 mm., the unique “One Design” widens the screen for better, wider view. Samsung’s Smart TVs will also get even smarter by end of this year by adding various new video and search features, and expanding its portfolio of TV apps from the current 550 to 1,000 by the end of 2011.
RACING IN PINK For over twenty years, Chopard has been partnering the legendary Mille Miglia, a historical car race that takes drivers from Brescia to Rome and from Rome to Brescia. Each new edition of the competition also provides an opportunity for the Geneva-based company to present an original timepiece. The Mille Miglia vividly symbolises Chopard’s sporting spirit and has become a watchmaking classic. Immediately recognisable thanks to its rubber strap featuring the 1960s Dunlop Racing tyre-tread motif, it is annually reinvented to the delight of collectors. As of 2011, women are officially invited to join this circle of devotees, since Chopard is introducing a feminine version that dares to sport a vivid pink shade. The successive models enchant admirers by their innovative design and the materials used in making them. Like classic cars, Chopard embodies fine craftsmanship through exceptional mechanisms and outstanding performances.
THE BIGGER THE BETTER LG Electronics will unveil its new 12kg front load washing machine, the largest capacity washer ever introduced in the standard-sized class. The new washer also comes with improved energy and water efficiency that more than offsets the demands of its heavier loads. Packed with top-grade features, the washing machine’s 6 Motion Direct Drive technology tailors its washing cycles depending on particular fabric types, while TrueSteam™ provides an enhanced deep-clean performance and family care, and SMART DIAGNOSIS™ provides stress-free assistance to keep the machine in perfect working order. With a 12kg capacity, the washer handles more and larger items, while leaving clothes less tangled or wrinkled and enabling more washing in fewer loads. 78
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OUTSTANDING IMAGES The new 30x super-zoom digital camera, Finepix HS20EXR, from Fuji has already received worldwide recognition in terms of image quality, high zoom performance and high quality lens. Being the latest of the most innovative products introduced in Oman by Photocentre, the new Finepix HS20EXR is the camera that really suits everyone and comes with all the features photographers in Oman would expect. This latest addition by Photocentre to the range of Fujifilm bridge cameras represents the perfect picture taking solution for photographers who want the specification and picture quality of an SLR without the heavy camera bag and a corresponding huge dent in their bank balance. With a class-leading feature set that includes a brand new EXR CMOS sensor, high speed continuous shooting capability, improved user interface, versatile video functions, 30x zoom lens and a 16 megapixel resolution, the HS20EXR sets new standards in bridge camera functionality and performance.
A FORT OF POWER Donâ&#x20AC;&#x2122;t you hate it when you are just about to make that important call, or need to add something to your calendar and your phoneâ&#x20AC;&#x2122;s battery dies? The Choiix Power Fort is a new range of a power backup battery packs from Choiix, made by Cooler Master which can save your device when it is about to run out of battery. They are also up to three times faster at recharging your USB powered device. Check out the review after the break. The Choiix Power Fort is around the size and weight of your average mobile phone. The Power Fort has four LED lights that indicate the internal battery capacity. Next to the LEDs there is a power button which pressed once charges the connected device or twice turns on the flashlight at the rear of the top of the Power Fort.
BRAND NEW SYMBIAN ANNA Nokia has finally released its newest update to the Symbian OS, Symbian Anna. Featuring a revamped user interface and brand new features, it hopes to rectify some of the reasons on why many in the tech community do not like it. The user interface features a brand new set of icons, similar to those found on the MeeGo operating system, and will feature tweaks to improve its usability. In addition, the virtual QWERTY keyboard will now be present in both portrait and in landscape modes, rather than simply being in landscape mode only. Nokia Maps gets an update, and also the ability to check in to services such as Facebook Places and FourSquare. Plus, it also brings in a new browser that will quickly load pages and has a redesigned user interface. September 2011 79
BEYONDBOARDROOMS
W
hen the Zubair Automotive Group and Shanfari Automotive joined hands to form a new company – Dhofar Automotive – to distribute and sell American car brands Chrysler, Jeep and Dodge (CJD) in the Sultanate, in 2010, it was an executive with roughly 25 years of experience in automobile industry who took the helm of the new company. Chris Edwards, general manager of Dhofar Automotive, has been in the industry since 1987 when he started his career in the United Kingdom. He had worked for a number of brands there including Toyota, Lexus, Ford, Mercedes Benz etc. and served as general manager in multiple locations before he moved to the Gulf region six years ago. His first assignment in the region was with Ebrahim K. Kanoo in Bahrain where he led the operation of its multi franchise distribution for three years. Then he came to Oman to manage CJD brands on behalf of Shanfari Automotive in the Sultanate till the new company came to existence in 2010. The joint venture was a major boost to the automotive industry in the Sultanate because prior to it both the companies separately distributed and sold American brands throughout the country. “Since the inception of the new company, we have become fully independent. We have done research on both the brands and the market. Particularly we have seen record sale every month since January 2011. Ramadan market has been phenomenal,” says Edwards. “Since this is a different company in which two families are involved, customers have a lot of confidence. In addition, we have launched several products offering a lot of opportunities for the customers to choose from CJD brands as an alternative.”
Products based on merit He believes that the market is very strong with customers becoming more educated. “Since people are well educated, they are choosing products on the basis of merit rather than considering their history, making American and European brands more popular as opposed to traditional Japanese vehicles,” he adds. As a new company Dhofar Automotive is looking to piggyback on the strength and 80
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Empowering growth With his well-grounded and extensive knowledge of automobile industry, Chris Edwards, General Manager, Dhofar Automotive, is looking at steering the new company to new heights. A report by Muhammed Nafie impressive growth of Chrysler which has undergone huge changes with its tie-up with Fiat which owns 52 per cent of the company. “The profit registered by the company in the first half of this year is six year ahead of the business plan it has submitted to the American government. Moreover, in an initiative which demonstrates the company’s continuing financial and operating improvement, Fiat bought the US government’s 6 per cent stake in Chrysler, paying the US and Canadian government loans,
six years ahead of schedule,” he avers. The recent roadshow by Dhofar Automotive which visited seven cities in nine days helped the company reach out to its prospective customers in the interior regions of the country. Edwards says the show attracted a high turnout in Sohar, Musannah, Ibri, Nizwa, Ibra, Sur and Salalah creating an excellent opportunity for people to interact with the senior management team of the company, including himself.