The Business Year: Oman 2023

Transforming Businesses to Enrich Societies

About Us

ominvest is one of the highly successful and largest listed investment companies in the region. Founded in 1983, it has been consistently profitable and has an enviable track record of uninterrupted dividend payments to shareholders. ominvest owns high-quality durable assets in diversified sectors, producing healthy cash flows. The company's assets covers diverse sectors, including Banking, Insurance, Finance and Leasing, Financial Investments, Private Equity and Investment Banking. The company’s assets cover diversified geographies including the GCC and Asia in addition to significant investments in global capital markets. The company is led by a progressive board and a capable management team – dedicated to enhancing value for all stakeholders.

Asset Diversification by sector

THE BUSINESS YEAR: OMAN 2023

The Business Year has charted the course of the Omani economy for a decade, and this year we focused on the Sultanate’s diversification plan and its sustainable agenda. While the country is less hydrocarbons rich than its GCC neighbors, infrastructure and renewable energy development, as well as green hydrogen, could be driving forces for growth in the years to come. Both the public and private sectors closely follow the tenets of Vision 2040, a wide-ranging blueprint for growth the kind of which has become ubiquitous across the region.

Elsewhere, the impact of FIFA World Cup Qatar 2022 has left a legacy for the region with travelers from previously uninterested markets now more likely to travel to the region. Leading hotel operators in the Sultanate of Oman and Omran Group, the government-owned company mandated to drive investment, growth, and development in the tourism sector, have expressed optimism for better tourist inflows

and higher revenues during the ongoing holiday season and in the months ahead.

Looking further ahead, Oman could become one of the most ideal countries in the Middle East to serve as a hub for the production and export of green hydrogen. The abundant availability of the main components for green hydrogen production, such as solar energy, wind energy, and extensive land, are positive indicators for Oman to become one of the world’s leading producers of this source of energy.

In this race to become a regional leader, Oman’s ports are witnessing an increase in both commercial and energy stream activities. The government remains focused on making the main Omani ports pivotal export centers in the region. To do so, it has signed agreements with international companies to manage and operate the main ports to benefit from its global experience in attracting international shipping lines and investments aimed at boosting exports.✖

This publication has been produced by The Business Year International’s expert cadre of journalists, writers, editors, and designers. The content contained within is original and was compiled by our team on the ground.

Regional Director Ioana Popa

Country Manager Lauren Cornwall

Country Editor Victoria Gonzalez Polanco

Senior Consultant Elena Barreiro Pérez

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2 From the editor's desk

9 Executive summary

11 Timeline

12 ECONOMY

13 A whole new world • Chapter summary

14 Dr. Al Fadhal Abbas Al Hinai, CEO, Oman Chamber of Commerce & Industry • Interview

18 A new era • Focus: Oman post Sultan Qaboos

20 AbdulAziz Mohammed Al Balushi, Group CEO, Oman International Development and Investment Company SAOG (OMINVEST) • Interview

21 Turkiya Al Hasni, CEO, National Training Institute (NTI) • Interview

23 Ibrahim Al Harthi, Managing Director, Takatuf Oman • Interview

24 Let the good times roll • Focus: Path to recovery

26 Yasser Taqi, Partner, Dentons & Co, Oman Branch • Interview

28 Khamis Al Jabri, CEO, Oman Sail

• Interview

29 TBY Analytics Oman 2023

30 GREEN ECONOMY & SUSTAINABILITY

31 Wind & shine • Chapter summary

33 Ali Masoud Al Sunaidy, Chairman, Public Authority for Special Economic Zones and Free Zones (OPAZ) • Interview

34 Quick off the block Focus: Oman as a global green hydrogen hub

36 Raja Bou Fakher Aldeen, Country Chief Executive, Oman Bureau Veritas Middle East LLC – Oman • Interview

38 Amor Al Matani, CEO, Oman LNG Development Foundation • Interview

40 Khalid Al Jahwari, Oman Country Manager, Petrofac • Interview

42 Rehab Al-Lawati, Chief Operating Officer, Rakiza Fund • Interview

43 Ahmed Hamed Al Subhi, Chairman of the Board of Directors, be’ah • Interview

46 Ulrich Emmer, Managing Director, Bauer Nimr LLC • Interview

47 Hussain Al Lawati, Group CEO, Utico • Interview

49 Sana Saad, Country Holder Officer, ABB Oman • Interview

50 Cinzia Farisè, CEO, Oman Cables Industry • Interview

52 FINANCE

53 Real progress • Chapter summary

54 Haitham Al Salmi, CEO, Muscat Stock Exchange (MSX) • Interview

55 Abdullah Al Salmi, Executive President, Capital Market Authority (CMA) • Interview

57 Khalid Jamal Al Kayed, CEO, Bank Nizwa • Interview

58 Move online • Focus: Fintech and digitalization

60 Abdul Hakeem Al Ojaili, CEO, BankDhofar • Interview

61 Hussain Al Yafai, CEO, Standard Chartered • Interview

63 Hussain Al Lawati, CEO, Muscat Finance • Interview

64 Innovation and Financial Inclusion: Bank Nizwa’s Unique Stance on Spearheading Islamic Finance in Oman • Focus: Bank Nizwa

65 Financial solutions • B2B

66 Usama Al Barwani, CEO, Al Madina Takaful • Interview

67 Hasan Al Lawati, CEO, Oman Qatar Insurance Company (OQIC)

• Interview

69 Khalil Al Harthy, CEO, Credit Oman • Interview

69 Khalfan Mohamed Al Barwani Chairman of the Board of Directors, College of Banking and Financial Studies & Executive Vice President, Investment Sector, Central Bank of Oman (CBO) • Interview

70 INNOVATION & DIGITAL TRANSFORMATION

71 Wired in • Chapter summary

72 Maqbool Al Wahaibi, CEO, Oman Data Park (ODP) • Interview

73 Sheila H. Jamal, CEO, Al Madina Group • Interview

74 Move it online • Focus: Digital transformation

76 Azzan Al Kindi, CEO & Co-Founder, Rihal • Interview

77 Abdullah Al-Kindi, CEO, Osos

• Interview

79 Mahmoud El Kordy, CEO, GBM Oman • Interview

81 Ahmed Essa Al Zadjali, CEO, Muscat Media Group (MMG)

• Interview

82 Khuwailid Fatallah Al Hinai, Chairman & Executive Director, Dunes Middle East • Interview

83 Mohammed Al-Abduwani, CEO, Hussam Technology Company (HTC)

• Interview

84 Majid Al Kharoosi, Managing Director, Oman Tower Company (OTC)

• Interview

85 Drones • B2B

86 Kiarash Kiazand, CEO, CloudAcropolis • Interview

87 George P Rajan, General Manager, Adventz • Interview

88 Mudffer Al Sarmi, CEO, Blurance

• Interview

89 Voices from the sector

90 ENERGY

91 New horizons • Chapter summary

93 Abdulrahman Al Yahyaei, CEO, OPAL • Interview

95 Rejeesh Mani, CEO, Special Technical Services (STS) • Interview

97 Walid Hadi, Senior VP & Country Chairman, Oman Shell • Interview

98 Hamed Al Naamany, CEO, Oman LNG • Interview

101 Abdullah Al Hashimi, Managing Director, Marafiq Interview

102 Supporting the nation’s sustainable economic growth

• Focus: Abraj Energy Services SAOG (Abraj)

103 Saif Said Al Hamhami, CEO, Abraj Energy Services SAOC

• Interview

104 Ali Al Lawati, Regional Managing Director (Oman, Pakistan & Yemen), SLB • Interview

106 A green future with solar and wind • Focus: Energy transition

108 Aflah Al Hadhrami, CEO, Alshawamikh Oil Services SAOC

• Interview

109 New technologies

• Forum

110 Sohail Akhtar Mikrani, Deputy General Manager, Maktoom Trading & Contracting Company LLC

• Interview

114 TOURISM

115 Pearl in the rough • Chapter summary

117 Shabib Al Maamari, Managing Director, Visit Oman • Interview

119 Said Al Shanfari, CEO, Oman Convention & Exhibition Centre (OCEC) • Interview

120 Mohammed Moosa Al Abri, CEO, Al Nakheel ITC Oman

• Interview

122 Rene D. Egle, Area General Manager, Shangri-La Barr Al Jissah and Shangri-La Al Husn, Muscat

• Interview

125 Gerhard Stutz, General Manager, Dusit D2 Naseem Resort

• Interview

126 Khalid Al Nabhani, Co-Founder & CEO, Sabeen Group • Interview

127 Issa Al Sawafi, Founder, Wadi Adventure • Interview

127 Jasim Al-Alawi, CEO & Founder, Darrbak • Interview

128 The Business of “Welcome”

• Focus: Public and private efforts to attract tourism

130 CONSTRUCTION & REAL ESTATE

131 Back in the game • Chapter summary

132 Nasser Al Shibli, Chief Real Estate Officer, Oman Real Estate Investment and Services LLC (ORIS) • Interview

134 Built on a green foundation

• Focus: Sustainable construction

135 Hamoud Rashid Al-Tobi, CEO, Galfar Engineering & Contracting SAOG • Interview

136 Andrea Negri, Commercial Manager, Hempel • Interview

137 Nasser Al Rajhi, Vice-Chairman, Al Rajhi Group of Companies

• Interview

137 Mustafa Behlim, Managing Director, Design Unit Engineering

• Interview

139 House rules • Focus: Residential real estate

• Interview

111 Imad Al Sabbagh, CEO, Muscat Gases Company (MGC)

113 Voices from the sector

140 TRANSPORT

141 Special focus • Chapter summary

142 Ahmed bin Ali Akaak, Acting CEO, SEZAD • Interview

144 Ahmed Al Abri, CEO, ASYAD Ports

• Interview

146 Keld M Christensen, CEO, Port of Salalah • Interview

147 Reggy Vermeulen, CEO, Port of Duqm

• Interview

148 High and dry • Focus: Khazaen Dry Port

151 Abdullah Bin Murad Al Balushi, CEO, Oman Aviation Academy (OAA)

• Interview

153 Dersenish Aresandiran, VP Commercial – Middle East, Caucasus and Pakistan, Qatar Airways • Interview

154 Automotive • Forum

156 Moustafa Osman, Country Manager, DHL • Interview

158 INDUSTRY & AGRICULTURE

159 Fish & bread • Chapter summary

165 Nabil Al Bimani, Group CEO, Fisheries Development Oman (FDO)

• Interview

166 Ahmed Al Marhoubi, CEO, Oman India Fertilizer Company (OMIFCO)

• Interview

178 HEALTHCARE & WELLNESS

179 Healthy pulse • Chapter summary

180 Hospitals • Forum

• Interview

160 Qais bin Mohammed Al Yousef Minister of Commerce, Industry & Investment Promotion

161 Saleh bin Said Masan, Undersecretary Commerce & Industry, Ministry of Commerce, Industry & Investment Promotion

• Interview

162 Pankaj Kanaksi Khimji, Advisor for Foreign Trade and International Co-operation, Ministry of Commerce, Industry & Investment Promotion

• Interview

163 We built this city • Focus: Industrial zones

164 Dawood Al Hadabi, Director General, Samail Industrial City

• Interview

167 Salem Al Bortmany, CEO, Areej Vegetable Oils & Derivatives SAOC (AVOD)

• Interview

168 Sanjay Anand, COO, Jindal Shadeed Iron & Steel (JSIS)

• Interview

169 Nasser Al Maqbali, CEO, Minerals Development Oman (MDO)

• Interview

170 Dining in • Focus: Food security

171 Poultry • B2B

174 Youssef Ezzikhe, CEO, Oman Refreshment Company (ORC)

• Interview

174 Ali Al Buali, CEO, Mazoon Dairy Company

• Interview

181 Ghassan M. Hamed, Owner & CEO, American Specialty Clinics Center • Interview

183 A healthy approach • Focus: Private healthcare

184 Anastasia Hayat, Managing Director, Anastasia Beauty Studio

• Interview

The Business Year is published by The Business Year International, Trident Chambers, P.O. Box 146, Road Town, Tortola, British Virgin Islands. The Business Year is a registered trademark of The Business Year International, Copyright The Business Year International Inc. 2023. All rights reserved. No part of this publication may be reproduced, stored in a retrievable system, or transmitted in any form or by any means, electronic, mechanical, photocopied, recorded, or otherwise without prior permission of The Business Year International Inc. The Business Year International Inc. has made every effort to ensure that the content of this publication is accurate at the time of printing. The Business Year International Inc. makes no warranty, representation, or undertaking, whether expressed or implied, nor does it assume any legal liability, direct or indirect, or responsibility for the accuracy, completeness, or usefulness of any information contained in this publication. The paper used in the production of this publication comes from well-managed sources.

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DELIVERING OPPORTUNITIES

For centuries, Oman has been a trade hub linking the world through its strategic location, and maritime expertise; creating opportunities, and supporting lives in distant lands.

At Oman LNG, we carry forward this rich legacy by supplying energy safely and reliably, and being agile to adopt innovative and environmentally conscious technologies.

Image: Baiju Jose

Riyam, in northern Muscat

EXECUTIVE SUMMARY

Oman is banking on high oil prices over 2023, which will give it the best shot at advancing toward the goals of its bold Vision 2040 plan.

OMAN'S economic recovery gained traction during 2022, and will most likely continue. In 2023, prospects are positive for the Sultanate, with GDP growth expectations riding high due to an increase in oil and gas production. However, Oman is not immune to economic and geopolitical challenges that can adversely affect energy prices and supply, leading to high inflation and growing global debt risks.

THE DIPLOMATIC SCENE

Oman has always been a skillful master at navigating turbulent waters. Despite phases of tensions and uncertainty that have marked the region and especially its immediate neighbors, the Sultanate still manages to maintain cordial diplomatic ties with the region. Early this year, Oman celebrated the ascension to power of Sultan Haitham bin Tariq, after the passing of his cousin, Sultan Qaboos bin Said, whose reign lasted from 1970 to 2020. During these three years, the Omani sultan has strived to raise the country's standard of living, prosperity, and development. In this regard, Vision 2040, an initiative that seeks to address the nation's challenges and further achievements, remains a noteworthy blueprint in the region.

ENERGY TRANSITION

Oman’s National Energy Strategy has already set a target to derive

20% of its electricity from renewables by 2027 and the country is well on the way to developing the 2.66GW of renewables required to achieve this. Oman plans to do this by relying mainly on photovoltaic (PV) solar, with the remaining coming from wind farms. In this context, Oman is finalizing a national policy for an energy transition that focuses on setting the general framework, policies, and regulations to accelerate hydrogen, renewable energy, energy efficiency, and more.

GREEN HYDROGEN

Oman has set an ambitious goal to become one of the largest green hydrogen producers and exporters globally. With the abundant renewable energy resources that Oman is blessed with and with the appropriate structuring of the sector, the country is positioned as one of the most attractive nations to produce green hydrogen competitively and at large scale. To lead the country’s ambitious green hydrogen strategy, the government has established HYDROM, a fully owned autonomous subsidiary of Energy Development Oman SAOC (EDO). Regulated by the Ministry of Energy and Minerals, HYDROM’s mandate includes the delineation of government-owned land and the structuring of associated large-scale world-class green hydrogen projects. Its mandate also includes managing the process of allocating land to developers as well as facilitating the development of com-

Image: Djay7

mon infrastructure and connected ecosystem industries and hubs in close collaboration with the Public Authority for Special Economic Zones and Free Zones (OPAZ). These new ambitious sustainability initiatives came a few weeks before the COP27 climate change conference in Egypt, in which Oman also took an active role.

INNOVATION AND DIGITAL TRANSFORMATION

During our research, we have witnessed a steady increase in digital transformation initiatives both in private and public entities across the Sultanate, as well as a slight improvement in the establishment of start-ups and SMEs in the field of innovation and advanced technology. The Omani government also focuses on plans for digital transformation as a key pillar that supports the strategic and vital sectors in the Sultanate. As per the private sector, an increasing number of companies operating in the energy sector are blazing new paths and operating cutting edge-technologies enabling safer and more efficient operations. Other sectors, like tourism and retail, are also coming up with creative ideas to reach out to an international audience through complete digital offerings and platforms.

OMANIZATION GETS BOOST

The government’s Omanization efforts to replace expatriate workers with locals is progressing in earnest and the Ministry of Labour has in recent years intensified a long-standing program to create employment opportunities for citizens by training and equipping them with

additional skills. Toward this goal, it negotiated terms with a number of private-sector establishments that were considering termination of services of Omani workers. In this context, the rate of Omanization among companies operating in the upstream and downstream of Oman’s oil and gas sector is the highest. Regarding positions requiring higher levels of knowledge and practical experience, companies are developing training programs in order to enhance the skills and competence of the Omani workforce.

PORTS OF OMAN

Working in close cooperation with government agencies and the private sector, Asyad Group introduced many initiatives and offered attractive incentives to maintain the strong operation and logistic performance of Omani ports. As a result, the ports sector has achieved sustainable economic growth through increasing direct shipping lines and connecting Oman with major global ports. Through its commercial and industrial ports and seaports, Oman seeks to be among the top-10 countries in logistical performance at the international level by 2040, and for the transport and communications sector to become the second source of national income. Thus, the Ministry of Transport, Communication and Information Technology is taking particular care in the marketing programs of ports and industrial zones to attract foreign investment. Moreover, the government has prepared infrastructure and equipped the ports with modern equipment comparable to international standards. ✖

2022

JANUARY

On January 11, Oman celebrates the second anniversary of His Majesty Sultan Haitham bin Tarik’s ascension to the throne.

2022

MAY

The Sultanate of Oman's Official Technology, Communications, Innovation, Future Technologies and Digital Transformation Show (COMEX) is held for the 31st time.

2022

NOVEMBER

Oman unveils vast football fan zone for Qatar World Cup.

2022

DECEMBER

Oman LNG announces the signing of binding sheet agreements with three Japanese firms for the delivery of LNG, starting in 2025.

2022

FEBRUARY

Oman opens Duqm Port as part of a diversification push.

2022

OCTOBER

Oman launches Hydrom to accelerate the development of the green hydrogen industry in the country and achieve carbon neutral goals.

2022

NOVEMBER

Oman opens vast football fan zone to take advantage of the World Cup in nearby Qatar, with holders of the Hayya card, a visa and fan ID for the tournament, eligible for a free 60-day, multi-entry visa for Oman.

2023

FEBRUARY

Fisheries Development Oman (FDO) launches its new brand aimed at the enhancement of investment opportunities in the fishing industry and a prosperous, fruitful economic future for the Sultanate of Oman.

An aerial view of Muscat

Image: Alexey Bagmanyan

A WHOLE NEW WORLD

Oman’s economic recovery is gaining traction, supported by a revival in the hydrocarbon sector and the resumption of large-scale international travel. The authorities continue to press forward with a broad array of structural reforms under Oman Vision 2040, with the goal to achieve the strong, job-rich, and sustainable private sector-led growth needed to offer opportunities to job seekers and ensure higher living standards for future generations. “We work with experts, internally, as well as across the regions, and take note of the competitive advantage of the regions that could potentially create business investments opportunities to promote for local as well as foreign investors. Second, we revisit current policies and their relations in order to understand how they could potentially attract investments. We also listen to feedback from foreign and local investors when they face issues or challenges, and communicate those messages to the authorities,” said Dr Al Fadhal Abbas Al Hinai, CEO of Oman Chamber of Commerce & Industry.

Key priorities include enhancing labor market flexibility, boosting female employment, improving the business environment, leveraging digitalization, and continuing the implementation of green initiatives. “The new foreign capital investment law was issued in 2019 and now allows for-

eign investors to own 100% of the share capital in companies, subject to very limited exception. To compliment this, the government also issued a new commercial companies law, which abolished minimum capital requirements and introduced a new single proprietor company. Yasser Taqi, Partner, Dentons & Co, Oman Branch, commenting on this development, told The Business Year that, “.In my view, steps such as these have contributed to an increase in foreign capital investments in Oman. The government is also working on introducing new legislation and reform in other areas it considers key for the Omani economy including green hydrogen and mining. Overall, I think the right steps have been taken to make the regulatory framework more attractive for foreign investors.”

However, the main challenge continues to be cumbersome government regulations, which present challenges for foreign firms to do business. Bureaucratic obstacles include obtaining Ministry of Labor clearances for visas and permits for foreign workers. Of particular concern for many international firms in Oman is the “Omanization” process, wherein the government sets quotas for Omani national employment on a sectoral basis. Many companies, both Omani and international, have noted that some of the quotas are difficult to satisfy and are applied inconsistently. ✖

ROOM to talk

Dr. Al Fadhal Abbas Al Hinai CEO, OMAN CHAMBER OF COMMERCE & INDUSTRY

Oman Chamber of Commerce and Industry is marking its 50th anniversary

What role does the Chamber play in the Omani business environment?

Today, chambers in most countries try to act more like a think tank for the government and the private sector, as a trusted consulting party. Why? Because being closer to the private sector we sense the issues, challenges, and problems, and seek to communicate this well with the government and decision-makers. We understand the thinking of the government, and therefore we are more capable to negotiate new policies and regulations with the authorities on behalf of the private sector. The second role is the representation of the private sector locally, regionally, and globally. The chamber is a member of many international entities such as the International Chamber, Arab Chambers, ILO, and many others. The third role is an executive one whereby we issue documentation, for example a certificate of origin. We also conduct numerous training programs, workshops, and focus groups with the private sector, whether to negotiate policies or enhance specific skills across the private sector. We also send delegations in and beyond the country in order to promote investments, as a channel for our registered companies to have a global reach.

When revising economic policies and regulations, what are some of the biggest challenges and opportunities?

could potentially attract investments. We also listen to feedback from foreign and local investors and their views, issues, or challenges, and communicate those messages to the authorities. All of these discussions need a lot of facilitation and negotiations with the stakeholders involved.

How important a role does innovation play within the Chamber?

BIO

The chamber is a home for different categories of the business community, for example buyers and sellers, traders and manufacturers, etc. So, the biggest challenge is always to craft a constructed opinion among the stakeholders who are related to the topic. For example, when we look at our roles related to investments, it is important to work jointly with the government to identify local opportunities in Oman. These opportunities could be in manufacturing, tourism, agriculture, food security, or logistics. We work with experts to address the competitive advantage of the regions that could potentially create business investment opportunities to promote for local as well as foreign investors. This might require the revisiting of current policies and their relations in order to understand how they

I came to the Chamber in October 2019. I focused on automating and digitalizing our business environment and offering different digital tools for employees. The project started in May 2021, and within this, we are going to give all our employees digital tools to carry or their work remotely. This may move them to a mobile format rather than being physically present at the office. Therefore, mobility is the number-one concept of the digitalization project. Second, we are shifting to low-paper offices, and will hopefully be fully paper-free by 2025. Why in 2025? Because of the culture, not because we are not ready in terms of technology. We are going to implement a proper ERP system for all our internal operations, which means all our processes will be digitally treated. Third, we will digitalize all the services that we offer to our members. The three key services are membership and its renewal, the certificate of origin, and the attestation. All these services will be integrated with the other services offered by other public and private entities.

What are your expectations for the short term?

As a Chamber, we are a consulting party; hence, our short-term goal is to devise a proper study to show the government and the private sector that we are a trusted partner for both. Second, the Chamber has many channels locally, regionally, and globally that we should use in order to promote investments, exchange experts, learn from others, and also help others to learn from us. There are some inspirations, and the Chamber could be a beacon as a learning platform at an institutional and individual level. ✖

Dr. Al Fadhal Abbas Al Hinai has 20 years’ experience in the public and private sectors. Prior to his current position, he was the CEO of Awasr Telecom. He currently sits as a member on the board of Oman Aviation Group and Oman Tower Company.

OCCI believes that digital transformation can be turned into an opportunity to restructure the market and devise an effective regulatory and administrative framework.

The Chamber is a key bridge between the public and private sectors.

The Mutrah Souq in in Muscat

The Chamber is a private institution of public benefit that aims to organize, develop and defend the commercial and industrial interests of its members, and represent them locally and globally.

Oman's private sector development to be a key partner in sustainable economic development

to act as the official representer of the private sector locally and globally, and serve its interests through innovation means and fit channels with the business community

EmpowermentAchievementMeaning

Building professional capacity, and activating proper community communication channels

Strengthening expertise and expanding their decision-making space

Executing all functions as per designed outcomes and best utilizing private sector capabilities to be a strong partner in the national sustainable economic program.

Focusing on common values and providing added value to the mandate

A NEW ERA

With the arrival of Haitham bin Tariq to the throne, the country faces a series of strategic challenges to preserve the legacy left by the 50 years of Sultan Qaboos rule.

OMAN BEGAN A NEW DIPLOMATIC AND ECONOMIC ERA in January

2020. On that day, Haitham bin Tariq was inaugurated as the Arab country's new sultan, ending the 50-year rule of Qaboos ibn Said, who at the time of his death had the longest reign in the Middle East. The late Sultan, who had no heirs and wrote the name of his intended successor on an envelope that was not opened until his death in early 2020, chose Haitham bin Tariq, a cousin of Qaboos bin Said, to rule Oman. The monarch's current task is to preserve the political and economic stability achieved under Qaboos, while adapting to the continuing challenges of the 21st century.

The Oman of today is different from that of 1970, when Qaboos was appointed sultan. Then, the late monarch decided to modernize the country with economic proposals such as the use of oil revenues for development, social measures such as the elimination of slavery and putting an end to the rebellion that sought to create an independent province to the province of Dhofar. Meanwhile, in foreign policy it has maintained a uniquely diplomatic character in which Oman is oriented as an actor seeking dialogue between nations so that concord allows global economic growth. An example is the civil war in Yemen since 2014, a country with which it borders and where Oman has sought to encourage dialogue between local actors to seek an end to the crisis, while providing humanitarian aid to Yemenis.

Continuing Qaboos' diplomatic legacy while the country achieves its transformation to a green economy are the main challenges facing Haitham bin Tariq, 66. The Sultanate's neutral foreign policy has made Oman known as the "Switzerland of the Middle East" due to its peaceful policy of dialogue between nations and non-interference in regional affairs. To achieve this goal, Haitham bin Tariq appointed as foreign minister Sayyid Badr Albusaid, a seasoned diplomat who has held various positions in the Ministry of Foreign Affairs since 1988, in addition to having represented Oman in a multitude of international meetings.

Regarding Iran, the minister has tried to mediate to ease the tensions the Persian country has with its neighbors, while with the war between Russia and Ukraine he has called for the parties to return to dialogue and enter into negotiations. This neutral position has been reflected in this European crisis, as the Russian Foreign Minister, Sergey Lavrov, described Oman's position in the Russian-Ukrainian conflict as "balanced."

Another of the sultanate's strategic perspectives in the post-Qa-

boos era is related to deepening the transformation toward a sustainable and diversified economy. Oil, its derivatives and liquefied natural gas account for 75% of the sultanate's economy. This represents an important source of revenue for the government, especially with the high fuel prices until 2020; however, further progress is needed on renewable energy systems that will enable the sustainability of the country once the electrification of the overall economy is achieved. One of the main goals of the Oman Vision 2040 roadmap is for at least 30% of Oman's energy consumption to come from renewable sources by 2030.

Government-owned Petroleum Development of Oman is playing a key role in the development of solar projects. It has commissioned projects with a capacity of 100MW of solar power in the north of the country, which will be operational as early as March 2023.

Meanwhile, the other state-owned power transmission company, Oman Electricity Transmission Company, has published a roadmap under which it expects to develop seven projects that will add 1.9GW of clean energy by the close of 2026. Another key project to ensure the country's sustainability is the world's largest solar water desalination plant, to be developed by TotalEnergies and Veolia. This project will have more than 32,000 solar panels and will supply water to hundreds of Oman's inhabitants.

This process of economic transformation cannot be understood without the need to diversify among different sectors. Among other objectives, Vision 2040 aims to reduce the country's dependence on petrochemicals and to grow in other areas such as tourism, semiconductors, and robotics. All these actions would, according to the plan, make it possible to increase the country's economic competitiveness and, therefore, achieve objectives such as increasing real GDP per capita by 90% by 2040.

One of the latest long-term challenges that the Sultanate of Haitham bin Tariq will have to face is balancing the relationship between China and the US. The Asian giant is a major investor in Oman's ports, as well as having supported the development of industrial projects in the country.

Meanwhile, the US, which has an excellent relationship with the Emirates and Saudi Arabia, is making efforts to reach out to Oman. Remaining a neutral player between these two superpowers will be one of the current government's keys to preserving the Qaboos legacy. ✖

WORKING together

AbdulAziz Mohammed Al Balushi GROUP CEO, OMAN INTERNATIONAL DEVELOPMENT AND INVESTMENT COMPANY SAOG (OMINVEST)

Can you elaborate on the give us a summary on the NLGIC and RSA Middle East deal?

In mid-2022, National Life & General Insurance Company SAOG (NLGIC)—a flagship insurance subsidiary of Oman International Development and Investment Company SAOG (OMINVEST)—acquired 100% shareholding in Royal & Sun Alliance (RSA) Middle East. The transaction was executed in two parts: acquiring around 50% shareholding in RSA Middle East from Sun Alliance Insurance Overseas LTD (SAIO), a fully owned entity of Royal & Sun Alliance Insurance Limited; and exchanging the remaining shares of RSA Middle East, owned by reputable Saudi shareholders, with new issued NLGIC shares, thus making the Saudi shareholders collectively the second-largest shareholders in NLGIC after OMINVEST. NLGIC has a strategic direction to expand its operations and products line in the GCC, and hence we were looking for a strong insurance player with whom we can expand our presence and become the insurance company of choice in the region. RSA Middle East has been an excellent choice for that.

What is the significance of this transaction and its impact on both companies?

combined entity reach new markets and seek top-line growth opportunities, while expanding customer reach in the region. It will also create value for all stakeholders and bring together potential synergies between both companies to provide a wider range of insurance products and services to both individual and corporate customers and fuel business growth. Together, NLGIC and RSA will prove to be even stronger, not only in matter of offerings to the market but also from a solvency and regulatory point of view. This will create a well-diversified powerful insurance player in the region operating in Oman, KSA, UAE, Kuwait, and Bahrain as well as planned expansion for Qatar. Post completion of the transaction, AM Best was upgraded the Financial Strength Rating of NLGIC. The ratings reflect NLGIC’s balance sheet strength, which the rating agency assesses as very strong, as well as its strong operating performance, neutral business profile and appropriate enterprise risk management. In AM Best’s view, the acquisition has strengthened NLGIC’s business profile, providing both product and geographical diversification, as well as consolidating NLGIC position in its existing markets.

BIO

AbdulAziz Mohammed Al Balushi is the Group CEO of OMINVEST. With over 34 years of professional experience, he has extensive and in-depth knowledge of the global financial services industry. Al Balushi holds a master’s of science degree in finance from the University of Strathclyde (UK) and is a Fellow of Chartered Institute of Bankers (UK). He served as an Advisory Board Member in the college of Agriculture and Marine Services at Sultan Qaboos University. Currently, AbdulAziz is the Deputy Chairman of Jabreen International Development Company SAOC and a board member at Oman Arab Bank SAOG, National Finance Company SAOG, and National Life and General Insurance SAOG.

We considered this transaction based on a deep understanding of RSA’s business legacy and capabilities, and on efficient utilization of NLGIC’s knowhow and financial position, to transform the combined entity into a larger, stronger, and more competitive regional insurance player emerging from the Sultanate of Oman. NLGIC is the market leader and the largest insurance company in Oman with branches in Dubai, Abu Dhabi, and Kuwait and a strong presence in Health insurance in the UAE. RSA Middle East is a leading provider of property and casualty insurance in the Middle East, operating in Oman, KSA, Bahrain, and the UAE. It offers solutions for both commercial and retail clients, across a range of product lines, including motor, property, medical, SMEs as well as tailored solutions for large corporates. We strongly believe this transaction is bound for tremendous fruitful success. As part of NLGIC’s growth strategy, this will help the

How does OMINVEST’s investment philosophy tie into this transaction?

OMINVEST’s investment philosophy has always been to support and enable our portfolio companies to thrive and grow. We have a strong track record of building businesses in the insurance sector and our largest insurance subsidiary, NLGIC, has remarkably grown locally and regionally over the years. Its success is attributable to the significant capital injection from OMINVEST, prudent oversight by its board, and smart business strategies implemented by the management. Aligning with our philosophy, we endeavor to work closely with our companies’ boards and management teams to identify, screen, and capitalize on growth opportunities, which is what we’ve done for this transaction. We look forward to a brighter and stronger future for our insurance business, having much bigger impact across the region. ✖

OMNIVEST’s subsidiary NLGIC has come together with RSA Middle East in a trailblazing partnership that will result in great success for both parties in the coming decades.

voice OF EXPERIENCE

One of the leading training organizations in Oman, NTI delivers high-quality technical and HSE training solutions in addition to an extensive range of bespoke and vocationaltechnical training in Oman.

What is the history of the Institute, and what are some of the highlights of the past year?

NTI was established 1985 to deliver English language training. Then, we commenced providing vocational training (VT) and health, safety, and environment (HSE) in the 1990s. We then introduced the National Vocational Qualification (NVQ), which was successfully delivered. Oman’s economy was starting to experience a boom and the government needed experts to man the market, and at the time positions available to Omanis were limited. Besides, there was a clear pattern to the Omani mindset, whereby citizens had become used to holding government jobs. But now, the mindset is shifting toward entering private sector positions. Experts brought experience to develop the economy, which was an essential and successful undertaking. At the start of the 1990s, we saw an interest to impose the policy of health and safety by the government, whereby companies were obliged to meet higher working standards. During that period, NTI won the HSE training contract with PDO in what was then a limited pool of institutes. Later, several competitors entered the market as it grew, and business became more challenging. The Omani market is small and cannot accommodate a large number of training institutions. In the mid2000s, the market started picking up again as oil prices recovered. Having said that, oil prices have fluctuated from 2015. There have also been issues due to the impacts of the pandemic and economic and political changes. Certain projects were put on hold for some time. Our focus is to improve in our two major areas: VT and HSE. We have a great infrastructure that can accommodate around 370 students at a time. Due to the prevailing conditions in Oman, things are rather slow, but small projects have started opening. We go further than employment training. We do training for training, and we have recently introduce vocational diploma qualifications which were previously unavailable. Oman came up with procedures on how in-

Turkiya Al Hasni CEO, NATIONAL TRAINING INSTITUTE (NTI)

stitutes could provide professional diplomas. The vocational diploma gives students opportunities to choose different paths. The vocational diploma is an equivalent to an academic diploma which can be used as a stepping stone to grow professionally or obtain an academic degree. The Ministry of Higher Education agreed to give us approval for a vocational diploma. We had around 50 candidates attend the trial training and are awaiting the signing of the agreement to start the program.

What sectors or industries do you tap the most?

This process is required by every sector. Earlier, we used to focus on oil and gas, but today we include more training based on service demand. For example, if people ask for housekeeping training, we can arrange it. However, the sector is not an issue. We still mostly cater to oil and gas, although logistics is coming into the picture for the first time. An association for logistics companies was recently established, and they are ready to train Omanis to take the reins. The government realized that it is not about the percentage of Omanization, but about taking advantage of human capital performing at its best ability which can be achieved through training, but this remains a slow process. Locals do not need academic or theoretical material. What we need is technical experts with a focus on what Oman requires.

What makes you unique as a human capital service provider?

We have been in the services industry for quite a long time and are the oldest and largest institute in the Oman market. We know the market, and we have experts and facilities. We have the experience of establishing a new setup completely, as we did for BP some time ago, when they requested training centers for their staff specialized in oil and gas, such as drilling and production courses. When the project was completed, it was handed over to BP and it was an overall successful. ✖

BIO

Turkiya Sulieman Al Hasni has been CEO of NTI since July 2020. She joined NTI as an intern in 1994 and has become a key member of the NTI management team for a few years now. Her extensive knowledge of the organization, the wider training sector, and Omani statutory law made her ideally placed to drive growth across a challenging market. She completed her undergraduate degree in business administration— human resources from the University of Bedfordshire, UK, and has a master’s degree from Strathclyde University, Scotland in business administration.

Looking to expand beyond Muscat

NTI Oman is a market leader in creating workplace competency by providing vocational training and employment solutions to corporations

local SUCCESS

The combination of Takatuf’s experienced team, key understanding of Omani culture, and personalized relationship with its clients have helped it quickly see success in the Sultanate.

Ibrahim Al Harthi MANAGING DIRECTOR, TAKATUF OMAN

How did this initiative start, and what have been some of the major highlights over the past year?

The company started as a small unit under the umbrella of the oil company OOC. The objective was to support the Oman Oil Group at that time, but things evolved after that, and Takatuf was incorporated as a company in 2013. We continued to support the Oman Oil Group until 2015, where the shareholders decided to go to market. Takatuf started in 2015, and for five years, we provided human capital consultancy services to the market in Oman. We cover around 80 companies in 12 different sectors here. A huge milestone occurred in early 2021, when Takatuf officially became a subsidiary of Oman Investment Authority (OIA), which helped in the realization of the active role Takatuf can play toward the fulfillment of Oman Vision 2040. By nature of Takatuf’s functions, we have and will continue to focus primarily on the pillar of developing people and society whilst upholding the Omani identity.

What makes Takatuf unique in providing strategic solutions and human capital services?

Takatuf is definitely unique in the current Omani market. Aside from all the tools and technical know-how that many other consulting firms also have, we have deep insight into the Omani context and culture in combination with years of professional experience. Having worked mainly with government institutions, we understand what the market needs, especially government organizations. The feedback we receive from many of our clients is that

we are here; we are local and available at any time, which is different than simply parachuting consultants from overseas for technical work with no follow up. We create an interpersonal client relationship that is sustainable. What helped in receiving these types of feedback was our heavy investment in building Omani capabilities. Around 95% of the consulting team staff here is Omani; that did not happen overnight. It took many years to certify a number of Omanis here and be credible. We invested a great deal of time and effort just to make sure those cases are built in-house, and it worked perfectly; however, the strive to build the potentials of Omanis doesn’t stop internally. With the Musanadah program, a collaborative program with the SME Development Authority, we aim to provide technical and organizational support to several SMEs registered with the authority in activities related to human resources consultancy. Takatuf will move to transfer knowledge and enhance professional standards of these enterprises, which may contribute to providing job opportunities and training for Omani youth. To boost a country’s ICV, we must start at the grassroots. Similarly, the Takatuf Scholars Program is made up of 100% Omani youth to invest in their potential to help achieve the Oman 2040 Vision. In order to achieve the high impact goals of the nation, we must nourish at the grassroots level with highly capable and experienced individuals from all over the world. The combination of our key understanding of Omani culture, the personalized relationship we always have with our clients, and the commitment to

continuously develop our services and community gives us an insight that makes us stand out.

Could you elaborate on your Scholars Program?

The Takatuf Scholars Program complete its 10th anniversary in 2022 and is indeed one of a kind in the Sultanate. It was established in 2012 with the aim of preparing Omani youth to lead future mega projects in the Sultanate. The program is uniquely Omani as it is designed for the Omani learner and for Oman’s needs of critical skills. With such diligent and structured selection and award process and placement in top universities that provide extraordinary learning and development opportunities to our youth, the program creates well-rounded local skill force of world-class quality that not only bring in the technical knowledge and skills, but also professional aptitude, capacity to lead as well as rich and diverse social capital. ✖

BIO

A founding member and key contributor to its success, Ibrahim Al Harthi oversees Takatuf as its Managing Director. He is an MBA degree holder, whose professional background is rooted in diverse HR and management roles, enabling a leveraged accumulated experience to support Takatuf’s insightful and powerful business solutions.

LET THE GOOD TIMES ROLL

Economic recovery gained further traction in 2022. Oman’s economy is now expected to grow by 5.5% in 2023, having posted growth of 5% in 2022.

OMAN'S ECONOMY is on the road to recovery after a couple of challenging years. Due to the spread of COVID-19 and low oil prices in 2020, the Arabian country recorded a large fiscal deficit of 19.3% of GDP that year; however, 2021 recorded an improvement by closing with a fiscal deficit of 3.8%, equivalent to OMR1.2 trillion (USD3.12 billion), a figure significantly better than the OMR2.24 trillion deficit that had been budgeted for that year.

And the outlook for 2022 was even better, with the economy expected to grow by around 4.5%, according to the IMF. The multilateral agency's outlook for Oman is for a projected fiscal surplus of 5.5% of GDP by the end of the year and a reduction in debt from 63% of GDP in 2021 to 45% of GDP in 2022. After concluding a staff visit to Oman, the IMF said in a June 2022 press release that the fiscal surplus will persist over the medium term due to higher oil prices and continued consolidation under the authorities' Medium-Term Fiscal Plan.

There are several positive aspects to the Omani economy. About 90% of all people aged 12 years and older were fully vaccinated by the end of May 2022. Since mid-2020, the price of oil has been rising steadily, with the price of Brent crude rising from USD25 per barrel to USD97.8 at the end of August 2022. This has been a boost for Omani finances, which have used part of the proceeds to carry out a liability management program. Its economy was heavily indebted, so the Medium-Term Fiscal Plan has helped it launch an early bond buyback program that will save it up to OMR127 million (USD328.7 million) in debt service, so it will now have additional resources to devote to other areas.

High oil prices have meant a significant revenue surplus for the country, as it had budgeted oil prices of USD45 and USD50 per barrel in 2021 and 2022, a threshold that has been exceeded since January

2021. In turn, it is expected to produce 1.055 million bpd of crude oil in 2022, up from 960,000bpd in 2021. This has meant a significant budget increase for the country, which has also seen a positive year for its non-oil exports.

In 1Q2022, the sultanate's non-oil exports increased by approximately 40%. Total non-oil exports increased to OMR1.87 billion, up from OMR1.33 billion in the same period of the previous year. Between January and March, non-oil exports to the UAE—the largest destination for the sultanate's non-oil shipments— increased by 10.2% and to Saudi Arabia by 27.6%, while to the US they grew by more than 131% and to India by 65.6%, according to National Centre for Statistics and Information data. These products include minerals, chemicals, plastics, rubber, and metals, among others.

Part of this sound financial management is guided by the principles that govern Vision 2040, a roadmap that serves to shape the future of the sultanate in order to strengthen its competitiveness and economic growth through 2040. “With Vision 2040, we have a clear plan and path, and we make sure that we contribute to this vision and execute whatever programs are needed,” said Haitham Al Salmi CEO, at the Muscat Stock Exchange.

Another key document is the Tenth-Five Year Development Plan (2021-2025), which is the first of the Vision 2040 that seeks financial sustainability while stimulating the country's diversification. It is also the second under the government of Sultan Haitham bin Tarik, who was appointed as the country's new leader in early 2020. Among other objectives, the plan aims to diversify Oman's economy by 2025 to develop an entrepreneurial ecosystem that will ensure the country's financial sustainability, while encouraging private sector collaboration with SMEs.

“There is Oman’s five-year fiscal plan to help the country reduce its deficit, repay debts, and increase the accurate trading worth of the country. It has worked extremely well,” Al Salmi said, who added that the document has an ambitious goal to diversify the country’s revenues and privatize companies, especially state-owned companies or entities. These measures will serve to reduce the country's public spending, while privatization will increase the level of competitiveness of Omani companies vis-à-vis their international competitors.

Through a series of fiscal control measures, Oman is expected to reduce its deficit annually between 2021 and 2025 to achieve a surplus by 2025. Meanwhile, the plan identifies transformative industries, transportation, education, and tourism as the main sectors for its diversification. The year 2022 is only the second under the fiveyear plan, but after the recovery from the impact of the pandemic it is undoubtedly a turning point for the country to move steadily towards achieving its ambitious goals. ✖

HELPING hand

The world’s largest law firm, Dentons has built up an experienced cadre of Omani lawyers in its 40-year history in the country, offering both international expertise and local know-how.

Yasser Taqi PARTNER, DENTONS & CO, OMAN BRANCH

Largest global firm in the world with over 40 years of history in Oman

Full-service firm

Where does Dentons sits within the legal services ecosystem?

Dentons is the largest law firm in the world with more than 20,000 people and 12,000-plus lawyers in 200-plus locations and 80-plus countries around the world. We have been on the ground in Oman for 40 years. With three-quarters of our lawyers being Omani, we are firmly from and within the Omani business and legal communities. Combined with our local and internationally qualified lawyers, our team is uniquely positioned to offer clients international expertise with local know-how. Over the years, we have worked closely with the public and private sector on many first of a kind projects and numerous regulatory reforms. Examples include advising on the restructuring of the government’s oil and gas stake in Block 6 in 2020 and 2021. We also designed and drafted the electricity sector law and advised on every major reform to it, including the electricity spot market, which launched in 2022.

How do you assess the attractiveness of the Omani regulatory framework?

ment process, particularly with obtaining labor clearances for expat workers needed to establish their business in-country. We often hear that a lack of transparency and consistency in areas such as those continue to stifle foreign investment.

What are the main concerns of Dentons’ clientele, specifically with international businesses?

BIO

Yasser Taqi is a partner in the energy, transport, and infrastructure practice in Dentons’ Muscat office. He is an England and Wales qualified lawyer who joined Dentons as one of the firm’s first trainees from the Middle East region. Having worked in Dentons’ offices in London, Dubai, and Muscat, he is the first Omani lawyer to be promoted to Partner at Dentons. Taqi has experience working on a wide range of projects across the GCC for public- and privatesector clients. He is ranked in both the top legal directories, chambers, and Legal 500 and also sits as a non-executive director on the board of Outward Bound Oman.

Over the last few years, the government has taken positive steps to encourage investments, particularly from foreign investors. The new foreign capital investment law was issued in 2019 and now allows foreign investors to own 100% of the share capital in companies, subject to very limited exceptions. To complement this, the government also issued a new Commercial Companies Law that abolished minimum capital requirements and introduced a new single proprietor company. Steps such as these have contributed to an increase in foreign capital investments in Oman. The government is also working on introducing new legislation and reform in other areas it considers key for the Omani economy including green hydrogen and mining. Overall, the right steps have been taken to make the regulatory framework more attractive for foreign investors; however, there is still more work to be done in order to compete with other jurisdictions. On a practical level for example, foreign investors continue to face difficulties with recruit-

Until recently, the government’s credit rating was a concern as it caused difficulties when it came to raising finance for large projects. The government has, under the guidance of HM Sultan Haitham bin Tariq, reduced the public debt significantly over the past few months, which has alleviated these concerns to a large extent; however, foreign investors continue to face difficulties on a day-to-day basis. The way we see it, ministries and other regulators need to be more transparent and consistent when applying the rules governing local and foreign investments. Opportunity, transparency, and consistency attract investors. As an economy, there is some room for improvement in those areas, particularly transparency and consistency. We are aware of the government’s efforts to address these issues. The public sector should aim for even greater involvement of the private sector through encouraging focused dialogue and key stakeholder engagement whether it is when introducing new regulations or reforming existing ones. If we look at the bigger picture, Oman has the ability to be an even more attractive investment destination. Oman has excellent infrastructure, robust regulatory framework and strong manpower resources. There are plenty of positives to build on.

What are your priorities for the coming year?

There is a great deal happening in Oman. We are focused on supporting our partners, whether local or international, public or private, with their projects and businesses by continuing to deliver the high standards that our clients are accustomed to. Equally importantly for us, we want to continue being the place where top Omani talent wants to work and to create the environment for them to be able to thrive. ✖

FP AD HOLDER MMG

Khamis Al Jabri CEO, OMAN SAIL

What is Oman Sail’s core business, and what was last year like for the company?

GREAT strides

BIO

Khamis Al Jabri was appointed CEO of Oman Sail in 2020 after a prolific career in the Royal Navy of Oman, where he attained the rank of commodore and served most recently as the director of operations and plans, a position he held for nearly three years. His naval career began at the Britannia Royal Naval College Officers training academy in Dartmouth, England, graduating with a first-class diploma in naval science and operational studies. He returned to Oman upon graduation and enrolled in Warfare School at the Royal Navy of Oman. He holds an MA in defense studies from King’s College, University of London, an MA in strategic security studies and a diploma in international security and combating terrorism from NDU Washington DC, and a PhD in strategic studies from the University of Exeter, UK. He is a published author with the release of his 2018 book The Role of Sea Power in Oman’s Security and Economy and has completed several other courses from the US, UK, Spain, and Bahrain.

Oman Sail was established in 2008 to rekindle Oman’s maritime eminence, promote the Sultanate through sailing, and provide long-term learning opportunities for the youth of Oman. Our aim is to utilize sport as a vehicle to contribute to Oman’s socioeconomic development. The core of the business is centered around sailing; we have expanded to incorporate youth sailing, women’s sailing and now para sailing, as well as adding new sporting options to diversify our portfolio and contribute to the country’s growing sports and adventure tourism sectors, while also generating additional income and creating new opportunities for Omanis to excel in this industry. In order to not depend primarily on corporate funding, we are also tasked to find alternative resources so that is also part of our vision. In the past year, we were awarded a gold medal for being the Best Sports Event Organizer in the Middle East for 2020 at the Middle East Sports Industry Awards 2022 after delivering 11 events during a busy period for sport in Oman. Alongside 10 sailing events, we also welcomed World Athletics to Muscat for the World Race Walking Team Championships. We were also awarded the silver medal at the Middle East Sports Industry Awards 2022 for the Best Event, which was the Youth Sailing World Championships, at the Barcelo Resort Mussanah. The first time the event has been held in the region and the 50th anniversary of the event. It was a huge honor to be chosen as hosts, and we are delighted to have been recognized as excellent hosts. These two achievements paint a clear picture of our vision and capabilities to achieve these goals.

What is Oman Sail doing in terms of sustainability and green practices?

Sustainability and the environment are top priorities for us in every event we deliver and every program we manage. We have made huge strides forward in recent

years but, as always, there is still room for improvement in this regard. We are definitely doing the best we can and considering the environment and our impact at every stage. In 2021, for example, we organized a campaign to clean beaches across Oman as part of the nationwide Oman Sailing Festival. We started from the north and moved south offering sailing lessons, environmental awareness opportunities and the chance for local businesses to showcase their products and services to visitors. It is extremely important that all of us, collectively, take care of the environment, and also help to change behaviors in everyday life. We also have a sustainability program, and we are working hard to improve it to meet the changing needs of the environment and the community. We also promote sustainability practices regularly through our social platforms to raise awareness, spark conversation, and inspire people across the country to take action. Sustainability needs to become an important topic for every single one of us.

What are your key priorities and goals for the year ahead?

We must continue to evolve, gain experience, and use our unique place in the national economy to connect the different sectors in terms of sponsorship, partnership and reach our collective goals together. We aim to bring these values together in one pot and have been able to leverage Oman’s advantages in logistics and tourism to improve efficiency, attract more visitors, and empower local people and businesses to develop. As a result of the successes over the past 13 years, Oman Sail has built an excellent international reputation as the host of globally recognized events, and I am extremely proud of the team. We are well supported by our management team and our employees, and we have a lot to do in the future. We see ourselves as an organization that can connect the different sectors of our society and provide opportunities for everyone through sport. ✖

Oman Sail has made great headway in raising the prominence of Oman in sailing, boosting the popularity of the sport amongst Omani youth, and hosting regional and international events.

TBY ANALYTICS OMAN 2023

103 interviews were conducted for The Business Year: Oman 2023 Analytics.

BUSINESS CONFIDENCE INDEX

How confident are you about the outlook for business in Oman this year (1-5)?

SECTORS TO WATCH

3.8

AVERAGE RATING

ADVANTAGES & CHALLENGES

What are the most commonly mentioned advantages and challenges of doing business in Oman?

ADVANTAGES

• Strong infrastructure

• Low energy and labor costs

• Government support for the green economy

• Increasing international connectivity

• Vision 2040 incentives

• Strong renewable energy potential

• Stability

CHALLENGES

• Public debt ratio

• Oil dependency

• Low female participation in the economy

• Behind the curve on digitalization

• Some cumbersome regulations for foreign firms

Green Economy & Sustainability WIND & SHINE

Despite the fact that the economy and development of Oman is heavily dependent on oil and gas resources, which account for around two-thirds of government revenue, the Sultanate is committed to sustainability leadership through innovative strategies aligned with the UN Sustainable Development Goals (SDGs) and is actively engaging national development stakeholders to present Oman as a new model for sustainable development.

Oman’s National Energy Strategy has already set a target to derive 20% of its electricity from renewables by 2027 and the country is well on the way to developing the 2.66GW of renewables required to achieve this. Oman plans to do this by relying mainly on photovoltaic (PV) solar, with the remaining coming from wind farms.

Commenting on this, Ali Masoud Al Sunaidy, Chairman of the Public Authority for Special Economic Zones and Free Zones (OPAZ), told us that, “Part of our planning is to address the issue of sustainability. There is a directive from His Majesty Sultan Haitham Bin Tariq for Oman to become carbon neutral by 2050. Now, simultaneously, we have been engaged in an effort to produce re-

newables for the local industry. On a bigger scale, Duqm is expected to become the largest contributor to sustainability. We have allocated 250sqkm for solar and wind farms that will produce green hydrogen and ammonia for local use and for export.”

But sustainability is not just about renewable energy and energy efficiency, but a holistic approach that considers ecological, social, and economic dimensions.

This is becoming understood by more and more Omani companies, such as Rakiza Fund, which prides itself on seeking to make a true impact with its investments. “ESG currently plays a critical role in any investment we undertake. We implement ESG from the start of the investment process all the way through to the due diligence process, setting up an action plan and monitoring when we acquire the asset and the asset management stage. We have a fully set policy in place that we are implementing, whereby any investment goes through a screening process before we take any steps. We also have an ESG committee within Rakiza Fund,” said Rehab Al Lawati, COO of Rakiza Fund, in a recent interview with The Business Year. ✖

The Ayn Khor waterfall in Salalah

growth IN SIGHT

By carefully planning out initiatives to produce renewable energy, green hydrogen, and green ammonia for export, OPAZ is determined to play a key role in Oman’s sustainability strategies going into 2040.

What role do SEZs and free zones aim to play in Oman’s energy diversification efforts and reduce its CO2 footprint?

Part of our planning is to address the issue of sustainability. Based on the directive from His Majesty Sultan Haitham Bin Tariq, Oman seeks to become carbon neutral by 2050. Now, simultaneously, we have been engaged in an effort to produce renewables for the local industry. The first free zone to start producing renewables is the Sohar Free Zone with a 25-MW solar project. Now, we are working on expanding the production of solar energy by allocating land within the Sohar Industrial Zone as well, so there will be production of solar energy in the Sohar Free Zone allowing for more manufacturers to use renewable power in line with Oman Vision 2040. The issue of energy sustainability is also related to the most efficient use of water; hence, we are using recycled water in all our industrial zones to add more trees, create green parks, and minimize the use of desalinated water. In Duqm, we plan to plant 5,000 trees and create three parks using treated water. Salalah and other industrial zones have similar initiatives. Another aim is to become completely paperless, which has already started at our one-stop shop at Duqm.

How do you assess Oman’s potential to become a global hydrogen exporter, and what is OPAZ doing in this regard?

On a bigger scale, Duqm is expected to become the largest contributor to sustainability. We have allocated 250sqkm for solar and wind farms that will produce green hydrogen and ammonia for local use and for export. Two licenses have already been granted, one of which is at the stage of implementing an initial 300-MW plant, while the other is at the stage of detailed studies for a larger capacity. We are now revisiting the master plan to create substantially sized corridors throughout the Special Economic Zone at Duqm (SEZAD) that will

Ali Masoud Al Sunaidy CHAIRMAN, PUBLIC AUTHORITY FOR SPECIAL ECONOMIC ZONES AND FREE ZONES (OPAZ)

allow the transport of electricity (electrons) into the city. Furthermore, we are also working to develop corridors that will allow the flexibility of transferring green hydrogen (molecules), if produced at the concession areas around Duqm, into the industrial zone to the port for local industrial consumption or to convert into green ammonia for export. The same corridors will allow the pumping of desalinated water from the beach to the sites of solar and wind farms. One area of study through strategic partners that could potentially unlock the export of blue hydrogen is in creating a corridor from Duqm to the retired oil fields. This will allow for the capture of CO2 produced in Duqm and for it to be reinjected back into the oil and gas fields. It also creates the opportunity to provide CO2 credit to potential steel manufacturers. Currently, we are coordinating similarly with other authorities and companies with relation to Sohar and Salalah. There are already discussions at the management level of the free zones and ports at Sohar and Salalah to look into every opportunity to produce specific quantities of hydrogen that will be made available for future generation vessels that call at these ports.

How are you staying ahead of the innovation curve and incorporating new technologies into your operations?

We are moving aggressively and becoming increasingly digital. The majority of our customer services at OPAZ and SEZAD have been digitized through our portal, including land allocation. Soon, we plan to roll out such services for the other free zones and industrial states. We are developing criteria for standards of quality for digitalization and coordinating this with the Ministry of Transport, Communications, and Information Technology with regards to a digital strategy. The pandemic was a period that we utilized constructively to shift our operations online, including enabling our staff to work remotely with our cloud-enabled services. ✖

BIO

Ali Masoud Al Sunaidy was appointed Chairman of OPAZ in 2020. He was previously Minister of Commerce and Industry (2012-2022), deputy chairman of the Supreme Council for Planning (20122022), and Minister of Sports Affairs & President of the Olympic Committee (20042012). He was also chairman of the Public Establishment for Industrial Estate and the Information Technology Authority as well as chairman of the board of OMRAN Group, the Authority of Small and Medium Enterprises Development, and Al Raffd Fund. He holds a PhD in economics from University of Hull in the UK, and MBA from University of Bristol, and a bachelor of science in industrial engineering from University of Miami in the US.

Aims to become destination for low-carbon projects

Focused on facilitating renewable energy

FOCUS Oman as a global green hydrogen hub

QUICK OFF THE BLOCK

Oman is embarking on an ambitious energy transition plan and hopes to become a leading producer of green hydrogen.

THE EXPORT OF PETROLEUM has fueled the growth of Oman’s economy since the 1960s. The Sultanate’s energy sector is now trying to present the world with another export: hydrogen

Last winter, the inaugural Green Hydrogen Summit Oman (GSHO) was held in Muscat. The event unmistakably marked the beginning of a new era in the history of Oman’s energy industry. The Gulf nation is quickly reorganizing its energy portfolio, and plans to soon rely exclusively on fuels without a carbon footprint, following the global energy market’s drive to sustainability.

To fully appreciate Oman’s ambitious green energy goals, one must remember that the country already occupies an important place in the traditional hydrocarbons market. The Sultanate exports just under a million barrels of crude oil on a good day, while also being a player in the LNG market. Oman’s energy sector accounts for over one-third of GDP and nearly 75% of all government revenues.

Any viable alternative to hydrocarbons for Oman, therefore, must be producible for export on an industrial scale, almost from the outset. Many of those attending GSHO believe that, for Oman, the winning candidate is green hydrogen. Indeed, given Oman’s determination to achieve 100% de-carbonization, green hydrogen seems to be the best—if not the only—viable option.

But what is green hydrogen and is it truly a superior option to hydrocarbons? Unlike many forms of sustainable energy, hydrogen is a fuel. It can be burnt much in the same way that hydrocarbons are burnt to generate energy, but it produces far less environmental pollution in the process. In fact, theoretically, it should produce zero pollutants. Hydrogen is widely regarded as the most clean-burning fuel on the planet, releasing nothing more than water vapor as a by-product of its combustion.

Moreover, unlike oil and gas, hydrogen can be produced in a sustainable manner with the help of renewable energies, hence the name “green hydrogen.”

Hydrogen is the most abundant element in the known universe, although on Earth it is primarily found in the form of water—two hydrogen atoms chemically attached to an atom of oxygen. In the proposed green hydrogen plants, solar electricity is used for the electrolysis of water in huge quantities, so as to generate pure hydrogen. Not only does not this process create no pollutants, it also releases a lot of oxygen to boot.

Oman is motivated to become an industry leader in green hydrogen, because the Sultanate seems to be an ideal place for the enterprise. Given the country’s status in the energy market, several early attempts at the manufacturing of green hydrogen have been made over the last few years, which have led to the accumulation of a local body of knowledge. Oman is, moreover, conveniently located at the heart of the world’s energy market, enjoying long-established trade routes with Asia and Europe, which secures a ready market for the final product as soon as it is fit for export.

Solar energy is the main requirement for the generation of hydrogen through electrolysis, and Oman receives its fair share of sunshine throughout the year. The Gulf country enjoys up to 350 hours of sunshine per month in the summer, and it continues to be remarkably sunlit during the colder months. Even in February, which is often the darkest month of the year in Oman, the country receives 250 hours of sunshine.

With all the empowering factors already in place, Oman’s public and private sectors have jointly come up with a short-term plan to turn the Sultanate into the world’s leading manufacturer of green hy-

drogen. If all goes according to plan, Oman will assert its dominance in the emerging industry so clearly that it automatically becomes a de-facto hub for green hydrogen.

A USD30 billion consortium has been formed, comprising the state-owned Omani energy investment company, CQ, along with foreign companies from places as far apart as Kuwait and Hong Kong. The construction work of the actual plant is set to begin in 2028 along the coast of the Arabian Sea, with the plant ultimately achieving full capacity in 2038, by which time the Al Wusta plant will be the world’s largest hydrogen fuel plant.

The Ministry of Energy and Minerals is doing its part by encouraging exchanges between various stakeholders in the hydrogen fuel industry. Among other supportive measures, the second edition of the Green Hydrogen Summit is scheduled for December 2022, in Muscat.

This time the event will also include an exhibition component. Over the three days of the summit, its venue will be the meeting point of energy giants with activities in Oman, local and foreign industry leaders, and R&D units from various sectors that can contribute to the carbon-free generation of hydrogen. ✖

MORE to do

Bureau Veritas employs its strong local presence and solid brand reputation to deliver value-added services to its clients, making it the partner of choice.

Raja Bou Fakher Aldeen COUNTRY CHIEF EXECUTIVE, OMAN BUREAU VERITAS MIDDLE EAST LLC – OMAN

What is Bureau Veritas’ company profile, and what type of practices and industries are you focused on in Oman?

Bureau Veritas is a world leader in laboratory testing, inspection, and certification services. We help our clients improve their performance by offering services and innovative solutions to ensure that their assets, products, infrastructure, and processes meet standards and regulations in terms of quality, health, and safety, environmental protection, and social responsibility. We have been present in Oman since the early 1990s, with our main office located in Muscat and operations at more than 10 locations and a laboratory across the country. We have more than 350 trust makers delivering a diverse portfolio of industry-leading testing, inspection and certification services for clients spanning across various sectors namely energy, oil and gas, chemicals, building and infrastructure, commodities, and marine, among others.

How has Bureau Veritas been adding value to the local market?

ganizations to operate and innovate safely and perform better. Thanks to our unrivalled global expertise, technical knowledge, and worldwide presence, we support our clients by managing quality, safety and sustainability risks, to the benefit of society as a whole. We bring more to the table than testing, inspection, and certification. The work we do goes beyond verifying compliance and has a much wider impact. For almost 200 years, we have acted as trust-makers between companies, governments and society, independent, impartial guarantor of our clients’ word. We play a pivotal role in building and protecting companies’ reputations, supporting them as they forge the foundations of trust that is built to last. We also support our clients to be more efficient, more methodical, and more trustworthy in their journey towards more sustainable business and a more sustainable world.

BIO

Raja Bou Fakher Aldeen is an engineer with more than 20 years of experience working in various fields of HSE consultancy related to oil and gas, infrastructure, and development projects. He has been working with Bureau Veritas since 2009 in various HSE, technical, and managerial roles, most recently as Country Chief Executive for Oman, in addition to being the Middle East region technical center manager since 2014. Aldeen holds a master’s degree in environmental and water resources engineering from the American University of Beirut and an executive MBA from INSEAD.

Bureau Veritas group have almost 200 years of accumulated experience across the globe and addressing various sectors including oil and gas, clean energy, international trade, manufacturing, tourism, digitalization, metals and minerals, and marine, among others. Our local clients in Oman always have access to such international expertise; and this is how we add value by supporting them in meeting the challenges of safety, environment, social responsibility and product or service quality all along their value chains. Moreover, our global geographic footprint and positioning within international markets, industries, and clients put us at the forefront of developing cutting-edge solutions to prevailing industry challenges. Our added value to the local market is also realized through our clear commitment to ICV creation initiatives that include investments in and know-how transfer to local Omani talents. We are extremely optimistic about the dynamics of the Omani economy in the near future and beyond.

What makes Bureau Veritas the partner of choice for industry players?

At Bureau Veritas, our work enables or-

Bureau Veritas has a green line of services and solutions dedicated to sustainability. How is this concept embedded into your strategy? Bureau Veritas is a “Business to Business to Society” services company. Our mission is to shape trust between businesses, public authorities, and consumers. With our expertise, we serve our clients to meet the challenges of safety, the environment, social responsibility and product or service quality all along the chain. We support our clients in their selection of resources and during production. We offer expertise at every point in the supply chain, from raw materials sourcing to product use. Moreover, we are playing a vital support role in all global development trends that are shaping the future of our globe, namely new mobility and the energy transition. Bureau Veritas strives to accompany all clients in delivering their sustainability strategy and meet the expectations of their employees and stakeholders. Through our green line of services and solutions, we empower organizations—both private and public—to implement, measure, and achieve their sustainability objectives. With our contribution, our clients can measurably demonstrate the impact of their ESG actions by making them traceable, visible, and reliable. ✖

Image: Sudarsan Thobias

The Omani pavilion at Dubai Expo 2020

MODEL OF excellence

Oman LNG Development Foundation continues to focus heavily on sustainability as part of its social investment portfolio, including the creation sustainability programs to promote economic, social, and environmental development.

Amor Al Matani CEO, OMAN LNG DEVELOPMENT FOUNDATION

BIO

Amor Al Matani completed a PhD in sustainability and sits on the boards of several universities and technical colleges. He is also chairman of the Hay Al Shurooq International School’s board of trustees. Dr. Amor’s dedication to sustainability and strong leadership led to his appointment as a board member of the Oman Center for Governance and Sustainability. This has enabled him to champion numerous sustainable programs across the country.

What is the story behind Oman LNG Development Foundation, and how does it contribute to the social welfare of Oman?

Oman LNG has three mission statements, and they are the “guiding principles” of its operation. The primary mission is to produce and deliver LNG safely, reliably and profitably, the second mission is to develop our human resources; while the third is to contribute to the sustainability and the economic development of Oman. Those three missions address allocating the proper organization, processes, and competencies. Since its inception in 1994, Oman LNG has taken social responsibility seriously, dedicating 1.5% of its earnings after tax to social investment to serve the broader community. The company has supported many initiatives and social projects in various fields, such as healthcare, education, tourism, entrepreneurship, environment preservation and sustainability. The 1.5% mentioned above has, over the years, become sizable in light of the company’s operational excellence and commercial growth. Therefore, to enhance governance, we have created a comprehensive board with representations from the local communities, the public and private sectors, Oman LNG, and our shareholders. This is to ensure solid control and great social return on investment.

It is part of an ecosystem with a clear social objective. Before my current position, I was the Deputy CEO of Oman LNG, and I have been overseeing the process since 2002 as a focal point within our host communities in Sur. Our objective is to become a good corporate citizen and to co-create value for the community that has hosted us for the past 22 years.

Where does sustainability fit within Oman LNG Development Foundation? What are some of your CSR projects that champion sustainability?

Sustainability tops our priority and has always been a focus covering three dimensions; society, economy, and environment. In all projects we deliver, we consider these three elements. Our proj-

ects focus on specific requirements to meet the public expectations, whereby we reach a consensus on the deliverables and their social benefits. For example, we may work on upgrading medical equipment that can reduce patient waiting time. Is there a saving to be made for the individual who commutes to access a service? Or else, we might focus on reducing the distance people need to travel to access social welfare services. The support for NGOs is also extensive and designed to enhance diversity and inclusion among the vast spectrum of society. For example, our support to the Oman Cancer Association is dedicated to cancer treatment. We offered a mobile unit that could reach the entire community of Oman to promote early diagnosis.

What are the focal points of Oman LNG Development Foundation’s Social Investment Programme? Recently, the objective of the company’s social investment strategy was revised to better align with Oman Vision 2040, the International Sustainability Goals, and the United Nation’s Social Development Goals (SDG). Also, Oman is committed to addressing climate change and other parameters within the SDGs. Some of them might not relate to Oman overall as much as our industry; however, our projects address areas of relevance. Meanwhile, we prepare school-aged children for the technological revolution unfolding around us. We sponsor related events and competitions. We also support initiatives at the higher education level. For example, we recently participated in the Green Hydrogen Summit in Oman, where 10 university students presented their ideas in this new innovative energy field. We also inaugurated Oman’s first National Autism Centre in collaboration with the Ministry of Social Development. Another of our major projects with the public sector includes road safety education. Often, the strategy provides the roadmap for our initiatives. However, when ad hoc needs arise, we always rise to the challenge. ✖

Places heavy emphasis on contributing to the growth and development of Oman and its people since its inception

Oman’s largest CSR center of excellence and role model for social investment and social performance

DELIVERING OPPORTUNITIES

For centuries, Oman has been a trade hub linking the world through its strategic location, and maritime expertise; creating opportunities, and supporting lives in distant lands.

At Oman LNG, we carry forward this rich legacy by supplying energy safely and reliably, and being agile to adopt innovative and environmentally conscious technologies.

COMPETITIVE advantages

Khalid Al Jahwari OMAN COUNTRY MANAGER, PETROFAC

Petrofac has worked to make a significant contribution toward creating in-country value for Oman while delivering topquality projects.

What competitive advantage does Petrofac have in Oman that other companies do not? There are many things that differentiate Petrofac. We are well known for our bestin-class delivery and high quality. Delivering locally to global standards is key to our strategy and unlocks in-country value. We are extremely proud that most of Oman’s key energy sector projects have been successfully delivered by Petrofac. We have worked on major projects with PDO, as well as with others including BP, OQ, and Oxy, all the major projects here in the Sultanate being delivered by our teams with our partners. This is the result of our experience, efficiency, and being driven to deliver. When we take on a project, we complete it to the highest standards, no matter the challenges—that is the one thing that really makes us different. We also have extensive experience across different areas of operations, whether it is a light design or a complex design. We have worked successfully in upstream, midstream, and downstream, and there are no companies that can do all the three streams in oil and gas like we do here. As well as having worked on many of the Sultanate’s most significant oil and gas assets, we are ready to support future new energy infrastructure in-country, bringing the best technology and deploying our people, expertise, and best practices. We have a truly unique, competitive advantage.

of services and goods. The other thing that we are doing with ICV and CSR in general, everywhere we go, is to invest in local communities and upgrade infrastructure to enhance the quality of life. We have constructed roads, laid internet routes between cities, built local markets, contributed to hospitals, and supported cyclone impacted families; we see this as part of our responsibilities and will continue investing more. We also support the government drive in building Omani capabilities and preparing the workforce of the future; we invested and jointly operate with Takatuf, the prestigious and state-of-theart Takatuf Petrofac Oman (TPO) training center. Our TPO graduates are today working in major oil and gas companies and supporting in delivering operational excellence and safeguarding the integrity of assets.

What is Petrofac’s approach to sustainability and green practices?

BIO

With more than 22 years’ energy sector experience, Khaled Al Jahwari is Petrofac’s Country Manager in Oman. He has a varied background across industry in technical, commercial and management roles, working across the Middle East, Africa and Europe over the course of his career. Al Jahwari holds a bachelor’s degree in petroleum engineering from Sultan Qaboos University, as well as an MBA and a PhD from the UK’s University of Strathclyde. Prior to joining Petrofac, Al Jahwari was Shell’s general manager of operations in Egypt, having previously been Shell’s global production excellence leader, based in the Netherlands. Prior to Shell, he spent 15 years with Petroleum Development Oman (PDO), holding a number of key roles.

In what ways are you contributing to the ICV? One thing that we have started doing, which again differentiates us, is taking the services and materials from local manufacturers and SMEs to be utilized in our projects internationally. General discussions about ICV usually involve investing in Oman to use the material within Oman; we have done that for many years and achieved more than USD3 billion in ICV here. We have also gone the extra mile to bring local products and materials and use them overseas and to successfully export to different continents and countries; we have supplied our international projects with more than USD175 million

Petrofac’s sustainability strategy is based around the three ESG pillars. As an energy services company, our business is inextricably linked to environmental considerations, these include climate change. For example, we have phased out single-use plastics across all our permanent offices and are now looking at how we can reduce them across all our operational sites. The second thing is that we have started to encourage SMEs to also recycle and are supporting them, even providing financial assistance just to help them get started. We are collaborating with local communities and have sponsored bins for use at different beaches in Oman to avoid waste and the protect the eco system. In terms of CO2 emissions, and this is something big, we are trying to reduce our emissions and have a specific target to reach net zero in Scope 1 and 2 emissions by 2030. We raise greater awareness on these issues and help educate people to create change. Our Oman teams have started working on partnering with universities and are talking more about sustainability in general, making a consistent theme out of it. ✖

SETTING an example

Seeking to make a true impact with its investments, Rakiza Fund looks beyond the economic impact to also focus on other important issues such as the environment, education, and social welfare.

Could you provide us with an overview of the Rakiza Fund?

Rakiza was established in 2018 to reap the first-mover advantage of a region undergoing a privatization drive. It was established by OIA with a target of raising around USD1 billion of commitments.

Rakiza is a joint venture between Oman Infrastructure Investment Management and a leading infrastructure fund manager out of the UK called Equitix. We have deep market knowledge and a unique local network in Oman and the region, mainly Saudi Arabia, while Equitix has a proven investment process track record of investing in privatization PPP projects in the UK. We, therefore, felt that both groups coming together would be a successful move to address the privatization and PPP activity in the region. Thus far, Rakiza has raised around USD700 million after over two years of successful fundraising with regional and international investors and will hopefully scale the USD1-billion mark. To date, we have closed two transactions in Oman. The first was investing a majority stake in Khazaen Fruit and Vegetable Central Market, and the second was acquiring a stake of over 31% in Oman International Container Terminal. We also continue to explore PPP projects. There are a number of projects in the pipeline of the team working in Oman and Saudi Arabia.

In which sectors are you seeing the most growth potential in Oman?

We are viewing a number of brownfield and greenfield investments and the infrastructure sector. There, we mainly focus on renewables, utilities, transportation and logistics, and digital and social infrastructure: that is the target of the fund. It has helped us tap into several PPP proj-

ects in Oman as well as a number of projects that the country would like to privatize, either through a PPP or through different models, mainly in utilities, transportation, and social infrastructure.

How does Rakiza understand ESG, and how does it help investment?

ESG currently plays a critical role in any investment we undertake. We implement ESG from the start of the investment process all the way through to the due diligence process, setting up an action plan and monitoring when we acquire the asset and the asset management stage. We have a fully set policy in place that we are implementing, whereby any investment goes through a screening process before we take any steps. We also have an ESG committee within Rakiza Fund. We have three members who sit on the committee, while I chair it. We regularly meet to discuss projects and opportunities, the evolving standards of ESG, and how we can actively play a role in such initiatives. In addition, international banks, strategic players, and investors all focus on strict ESG measures today. We have in place what we call a responsible investment policy within a robust ESG framework that allows us to access a wide range of capital resources, as well as a larger pool of long-lasting partnerships with financial and technical advisors and partners worldwide.

Rakiza’s slogan is “investment for impact.” Can you elaborate on what this means for you personally and for Rakiza?

Prior to closing any transaction, we set up a detailed action plan to take ESG issues into consideration, which includes KPI, and present it to the company’s management. This is monitored by the Rakiza

team on a regular basis, apart from the board members of Rakiza who treat the topic at every board meeting. Rakiza is here for a certain period to make an impact on the business and then exit it. Our positive impact reaches beyond the environment and across the entire investment spectrum. We work to improve corporate governance and transparency. On the social side, we not only consider the wellbeing of the company’s workforce, but also that of the project’s region from where we hire the workforce. For now, Rakiza is meeting the UN’s SDGs, which ensures projects provide quality education, wellbeing, and healthcare. We tackle a number of the SDGs, such as responsible consumption and the development of sustainable communities. ✖

BIO

Rehab Al-Lawati is the Chief Operating Officer of OIM and the Chairman of the ESG Committee of Rakiza. She has over 17 years of experience in investment and operations, having started her career in Oman Investment Authority (OIA), climbing the ladder until leading the private equity funds section of OIA. She then worked on setting up Oman’s first infrastructure fund, Rakiza, and moved to the fund once established as the COO of Oman Infrastructure Investment Management. She holds a bachelor’s degree in finance from Sultan Qaboos University and an MSc in managerial finance from Nyenrode Business School in the Netherlands. In addition, she has completed multiple leadership and financial programs from Harvard Business School (HBS), the London School of Economics (LSE), the Yale School of Management, IMD, and HEC Paris.

Rehab Al-Lawati CHIEF OPERATING OFFICER, RAKIZA FUND

taking STEPS FORWARD

be’ah has grown rapidly to become a high-capability service provider for national waste management strategies around the Sultanate.

be’ah was established in Oman in 2007. How has the company evolved since then, and what have been the main highlights?

be’ah has completely transformed since its establishment and is today a high-capability service provider for national waste management strategies. Since its establishment in 2007, be’ah began expanding and acquiring additional assets, starting with its first treatment facility in 2012, then launching its MSW services in 2015 and industrial waste landfill operations in 2019 and reaching a 100% MSW coverage in Oman in 2020. Additionally, be’ah has identified numerous core strategies, which would achieve the government’s vision for waste management. Over the course of 2021, be’ah signed strategic agreements to further the company’s circular economy goals and achieved significant progress in recycling by partnering with a number of important stakeholders to support local recyclers. We also helped two local businesses start UCO recycling operations that use biofuel, as well as provided technical and logistical support to paper recycling units.

Can you elaborate on the MoU with Oman Power and Water Procurement Company (OPWP) to build a waste-to-energy (WTE) plant in Barka?

In line with Oman Vision 2040, be’ah embarked on this project with the goal of achieving its economic development and environmental sustainability goals. Oman’s energy diversification ambitions and move to renewable sources have been greatly aided by the construction of the first WTE plant. This initiative will help to spur economic growth by opening up investment opportunities in the environmental sector and creating jobs through direct and indirect employment with SMEs and service providers. It also allows be’ah to fit into our ongoing efforts to reduce landfill use across the Sultanate, provide long-term waste management solutions, and lower greenhouse gas emissions. Capable of consuming a daily capacity of 4,500 tons of municipal waste, the plant is expected to reduce landfill carbon emissions by 50 million tons in 35 years (1.3 million tons per year), accounting for 30% of total carbon dioxide equivalent currently emitted by landfill operations. It also promises a diversified

Ahmed Hamed Al Subhi CHAIRMAN OF THE BOARD OF DIRECTORS, BE’AH

energy sector by supplying 130-150MW from renewable sources. Such a significant reduction will aid Oman’s efforts to satisfy international commitments under the Paris Agreement. It also involves the private sector in the construction and operation of the WTE plant, providing a long-term platform for collaboration between two critical sectors with a common goal of long-term sustainability. Our new partnership is a significant step forward in be’ah and OPWP’s joint goal of integrating sustainable environmental practices and ideas into Oman’s energy industry.

be’ah has signed several cooperation agreements with PDO to help the company go green. What other sectors in the Omani economy are in most need of waste management?

A key sector where demand on waste management services have increased is healthcare. COVID-19 challenges led to an increase in healthcare waste (HCW) generation. be’ah was quick to respond to this sector’s needs by supporting the operations of its two HCW treatment facilities in Al Multaqa and Thumrait and building a third facility in Liwa. In addition, we have taken several operational measures such as deploying additional disposable biohazard bins for all labs and vaccinations centers and introducing flexible HCW collection schedules and enhanced operational procedures. Another key sector is industrial waste (IW) that has grown significantly with Oman’s increasing industrial base. be’ah is proactively responding to ensure sustainable IW management and safeguard Oman’s environment and ecosystems. Our company partnered with leading sustainability and environmental bodies across the world to introduce the latest best practices and bolstered operations in the IW treatment facility in Sohar, IW handling facility in Duqm, and the temporary IW storage facility in Liwa. be’ah also expanded its management services in special waste streams, particularly construction and demolition waste and end-of-life tires. We have signed a wider network of contractors and service providers and bolstered our infrastructure across the country to handle the existing and expected demand with sustainability always being at the core of all our solutions. ✖

SPECIAL ECONOMIC ZONE AT DUQM

▪ The area of the zone is 2000 square kilometers

▪ 550 km from the capital, Muscat

▪ The largest in the Middle East and North Africa

▪ 8 main areas (logistical, service, tourism, industrial, commercial and residential …ect)

▪ Characterized by its proximity to international trade corridors

▪ A high specification of network of roads and communications

▪ Fishing port (complex for fish and food industries)

▪ Ease of starting a business and a friendly environment for investment (fast e-services)

▪ Multipurpose port

▪ Dry dock for ship repair

▪ Regional airport

▪ Oil refinery, a complex for petrochemical industries

▪ Featuring attractive incentives and facilities

▪ An important site linked to global trade

▪ A moderate climate most days of the year

DP AD HOLDER

SPECIAL ECONOMIC ZONE AT DUQM (SEZAD)

ADDITIONAL FEATURES

▪ 100% foreign ownership

▪ No currency restrictions

▪ No minimum capital requirements

▪ Tax exemption for up to 30 years from the date of commencement of operations, renewable for another 30 years

▪ Transferring 100% of the capital and profits outside the country.

▪ Usufruct a greements up to 50 years, renewable for similar periods.

Ulrich Emmer is the Managing Director of BAUER Nimr LLC in Oman. He studied civil engineering at the Technical University of Munich and holds a university degree. He started his career in Germany with Bauer Spezialtiefbau in the construction sector and made his way quickly onto an international stage. He spent most of his professional career in the Middle East, overseeing construction projects, advancing from a Project Manager up to executive level for various subsidiaries of The Bauer Group. He also worked on construction projects in Bangladesh, the Philippines and Africa in senior positions. In 2019, he joined the environmental sector as the Managing Director of Bauer Nimr.

Ulrich Emmer MANAGING DIRECTOR, BAUER NIMR LLC

Bauer is the leading environmental turnkey solutions provider in Oman. How has the company evolved since its establishment?

Bauer Nimr was established in 2009 as a small entity that later grew in line with different phases of its operations. The starting point was the Nimr wetland, which we operate. We did the design and construction and currently operate it, and after completing the concession period in 2044, we will transfer it to our partner PDO. In 2010, we successfully put the first phase of produced water treatment into operation, with a capacity of 45,000cbm a day. The second phase was commissioned in 2012, which increased the treatment capacity to 115,000cbm, and in 2019, we entered into Phase 3 with a total of 175,000cbm a day. This enabled Bauer Nimr to have a treatment volume equal to a city with a population of about 800,000. Being a nature-based solution, the water containing hydrocarbons is treated in a biological way with plants, algae and bacteria. It is a ‘0-discharge system’ based on gravity flow,

and, therefore, extremely sustainable. In addition, proper waste management became part of our portfolio in 2016 as an important contribution to Oman’s sustainability. We have recently completed a long-term contract for waste management in Khazzan. Furthermore, we also carry out soil remediation to treat contaminated soil by microorganisms that break down the hydrocarbons. Notwithstanding of providing these services mainly to oil and gas, most of our products can also be used by other sectors such as hospitality, tourism, and so on.

In which ways do you contribute to the development of ICV?

Regarding ICV, about 80% of our staff in Nimr is Omani. It was always our target to employ as many Omanis as possible on the project. We have reached 80% now and have a relatively small number of expats working there. Most of the Omanis have been with us since the beginning of the project in 2010. We are proud to see them developing in their roles. In addition, we also provide training programs to our workforce. For example, we are working together with OPAL, which offers training programs for workers in the oil and gas industry. ✖

BIO

broader VISION

Having established itself successfully as the largest private utility firm in the UAE, Utico is bringing its expertise to Oman to help with water and power projects.

Hussain Al Lawati GROUP CEO, UTICO

Could you provide an overview of the company and some of the major highlights in the past year?

Utico is largest private utility provider in the UAE and is part of UAE-based RMB Group, with the conglomerate’s turnover exceeding AED2 billion. Utico develops, invests, constructs, owns, operates, and maintains water desalination and power plants and transmission and distribution networks. Utico owns and operate five RO-based water desalination plants in the UAE with a total capacity of around 100MIGD and owns and operates power plants with total capacity of 106MW. In addition, Utico also owns and operates water and power transmission system supplying desalinated water and electricity to its consumers under WPA and PPA. Utico was involved in these projects as EPC contractor as well, and we continue to move in this direction. After successfully establishing ourselves as the largest private utility in the UAE, we are re-defining Utico’s vision to expand into other countries in the Middle East as well other parts of the world. Over the last year, we have embarked on redefining our strategy and reorganizing ourselves in support of achieving the ambitious regional outreach. We have seen success in this initiative, which is demonstrated through award of Gubrah IWP in Oman on BOOT basis and being shortlisted by Saudi Arabia for various water desalination generation and transmission projects and sewage plants under private investment.

What competitive advantages and strengths does Utico bring into the market that others competitors do not?

Utico’s business operations encompassing project development, investment, EPC, and operation and maintenance of water and power assets perfectly posi-

tion Utico in delivering quality water and power assets in time, at the lowest possible cost, and in reliable manner. Involvement in all aspects of the project provides Utico with a seamless approach, cutting across various roles, in addressing project risks in a manner that benefits consumers, with quality, timely, and cost-effective utility services while increasing value for shareholders.

Are there any other expansion plans on the pipeline, and in what countries is the company seeing most growth and potential? Having established itself successfully as largest private utility in UAE, we are now focusing on expanding and being a part of the regional growth plans in the water sector, as well exploring other regions like North Africa. We expect to expand our footprint within the UAE with a focus on the rapidly evolving water market in Saudi Arab.

What steps is the company taking to integrate environmental excellence into its business strategy?

Utico has evolved itself as a responsible utilities provider focused on providing utility services in a sustainable, environment friendly, and cost-effective manner. In its project delivery model, it has embraced practices and technologies in support of overall sustainability including reduction of carbon footprints. To ensure that projects are environment sustainable with reduced carbon footprints, Utico’s project team features many sustainable and green specialists. This approach is adopted from the concept stage, through execution and continues into O&M stage. Our efforts are to reduce dependence on fossil fuel energy even during construction stage, and we always have a delivery model based on renewable energy.

What opportunities are there for renewable power generation and water production in the Sultanate?

The renewable sector is promising in Oman. In addition to its geographical features, Oman possesses an enriching atmosphere that it attracts wide variety of renewable projects. One of which is renewable resources primarily wind and solar. With Utico now entering the market in Oman, we are in the process of expanding in contracting with pioneer authorities such a Oman Water & Wastewater Services Company. Knowing that the Utico FZC currently provides uninterrupted power supply of 50MW solar hybrid in the UAE, Utico prioritizes renewables considering its long-term eco-impact and its lower cost in comparison to the traditional power generation resources. Utico promotes sustainability as one of its core values. ✖

BIO

Hussian Al Lawati brings a wealth of expertise in private equity, venture capital, banking industry, and corporate advisory across multiple sectors and asset classes. For the past 20 years, he has worked in the finance and investment sector. Before assuming the role of Group CEO of Utico FZC, Al Lawati served as MENA CEO and head of global investments for Utico FZC. For about 10 years, Al Lawati worked for private equity at Oman Investment Fund. He also held advisory and auditing positions with various financial firms such Bank Muscat, Shell Oman Marketing, and KPMG. Al Lawati holds bachelor’s of commerce in accountancy with the highest honors GPA from Carleton University, Canada. He is also a Chartered Financial Analyst (CFA) and a graduate of National CEO Program –IMD (Executive Leadership Program).

digitalization SPOTLIGHT

ABB is committed to employing innovative strategies for digitalization and renewable energies all over the world.

Can you provide an overview of the company and some of its major highlights in the past year?

ABB has four divisions—power automation, motion, electrification and robotics & discrete automation—and three out of four divisions are present in ABB Oman. The major highlight of the past three years has been digitalization. ABB is a pioneer in digitalization and sustainability solutions. The world is on an energy-efficient current, and our mission is to drive the industry to net zero in line with our sustainability strategy. In 2021, ABB made some data-driven decisions in real-time public operations that maximized our resource efficiency and contribut-ed to a low-carbon future. Another highlight was e-mobility and e-charging, which is a growing trend in Oman. Digitalization and renewable energy are the sectors we target the most, in particular power automation companies, mainly oil and gas. We can maximize energy efficiency movements by omitting CO2. We are into the sustainable motions and drives, where a zero-carbon future can be achieved. Automation reduces cost, increases time efficiency, and reduces both CAPEX and OPEX, all moving toward raising profitability. That is the main idea of automation, renewable energy, and digitalization: reduce capital and operation costs.

How would you characterize the Omani market in terms of renewable energy and digitalization?

Compared to the global drive, Oman is progressing slowly but surely. Along with most companies, we are being pushed toward e-mobility or energy-efficient movements; however, more needs to be done about tariffs. They need to be dis-closed because that is the trend and direction we are all heading toward. Currently, there is hesitancy in Oman’s market, and we are not in an accelerated mode. ABB and the government together can work on that.

How important is it for ABB to promote local talent and develop human resources?

One of the key elements of ABB is ICV, and we adopted an Omanization policy. Our industry’s target is 35% Omanization, and we are far ahead of that.

We have a talented and excellent team of Omanis. We also have more Omani women. ABB’s strategy is to support the growth of talented women in the industry. There are, of course, challenges such as attracting and retaining talent, and it is an ongoing process. Working together, we provide them with training and competi-tive compensation packages, and send them overseas for job training empowering them to work independently.

What are ABB’s competitive advantages that set it apart from its competitors?

One of ABB’s advantages over its competitors is that it has a big install base and is geographically well located across 100 countries. We are reliable and adaptable to future changes and trends. We are adapting current trends such as digitalization, robotics, marine vessels, or automation to whatever the future demands. We are not strict or limited to traditional working methods. ABB has a rich heritage of innovative technologies such as collaborative robotics, motors and drives, and small circuits used for high currents. The company has decided to focus on sustainable growth and sustainability, and ABB Oman is closely aligned on that. The shortterm goal is to remain sustainable to retain Omani and expat talents. We need to coordinate with the government to provide a low-carbon future to the world.

Sana Saad COUNTRY HOLDER OFFICER, ABB OMAN BIO

How do you embed sustainability in your business strategy, and what are you doing to help society and industry be more sustainable and environmentally friendly?

Sustainability is one of ABB’s 2030 strategies, and we have targets aligning with our strategies of sustainability. Our governance framework is at the center of what we do. It comes down to the integrity and transparency of employees, customers, and suppliers. They follow the value chain in a sustainable and reliable way. ABB is committed to providing sustainability, including a low-carbon future. That is our main focus. We must be sustainable and provide a low-carbon future to work with suppliers and customers aligned with our value chain. ✖

Sana Saad, an Omani woman with long-term experience and leadership in finance is currently working as a Country Holder Officer at multinational company ABB. Prior to that, she worked as a commercial finance manager at Shell Oman Marketing. She firm-ly believes in the core values of work and life; i.e collaboration, having the courage to speak and the curiosity to do more, culture, and diversity. She holds a bachelor’s degree from Karachi University with various certifications in leadership.

Adopted solid growth and sustainability strategy

Leading global technology company that energizes transformation in society and industry for a more productive, sustainable future

Cinzia Farisè CEO, OMAN CABLES INDUSTRY

Can you provide an overview of the company’s operations and some of the major highlights of the past year?

LEADING by example

BIO

Cinzia Farisè graduated in economics and is a manager with 30 years of experience in national and multinational companies, public and private, listed and non-listed. From 2014-2018, she was CEO of Trenord, and president of TILO. Since 2020, she has been board member of IN.BRE. She also sat on the boards of several other companies. Farisè is also Vice President of CIIM EurAsiaMed. She started her career in Prysmian Group as sales and marketing director of Prysmian Italy and Switzerland, becoming later CEO for India and then global vice president of energy and infrastructure, CEO of Prysmian Turkey, and regional CEO of the Middle East, Africa, Turkey & India. She was appointed CEO of Oman Cables Industry, a Prysmian Group company, in 2021. She is co-founder of the Italian Angels for Women Association, a partner of Doorway, and co-founder and a board member of Operation Vivere. Farisè was recently appointed a member of the advisory board of Sultan Qaboos University of Oman, College of Engineering.

Oman Cables is the leading cable manufacturer in Oman, operating in the country and outside the country, with special focus on the Middle East. It represents, definitely, a great Omani asset. Over the years our company has cemented its reputation for operational excellence. We are part of Prysmian Group, which is the worldwide leader in the energy business for electrical and telecommunication solutions. We achieved the leadership position in quality and performance thanks to our longterm customer orientation. We continuously strive for excellence in all aspects of our business throughout integration of sustainable business development and innovation, enhancing shareholder value, and outstanding customer service. This has afforded us the opportunity to brave disruptions without any interruption to the entire supply chain. We will continue to play a crucial role in national development, in line with 2040 Vision, pursuing new opportunities and looking beyond the comfort zone. Our ultimate goal is to link Oman to a sustainable future. In summary: a success story, a great challenge.

What is your strategy to maintain this leadership position?

We mention our values as key pillars to understand where we are coming from and where we are going. When we speak about excellence, which tops our value proposition, we speak about our history and our present. Our future is built on innovation and empowerment as our declared goal is to continue to transfer technology and knowledge to the country. We are part of a group with 140 years of history in the cable business. Our people are our human capital. We have an extensive program that provides our people the opportunity to grow in the country and abroad. Whilst recently we have reached 50% Omanization, we have a diverse and

inclusive environment comprising 13 nationalities. Today, we are proud to say that six Omani women supervisors are working in our quality department, attracted by our STEM approach.

You have received the Sustainability Leadership in Manufacturing award. Why does the topic matter so much to you and your colleagues? We are a family of people aiming at new ambitious goals, devoted and passionate to our business, offering our contribution to the industrialization and economy as a solution partner of GCC most prestigious projects. The global diversity and inclusion policy makes us stronger by opening to different experiences and cultures which help us to benefit from talents and best performances. Today, we are reinforcing our business model to integrate economic, social and environmental responsibilities in all aspects of our activity, making profit to the shareholders and creating value for the entire community.

What is your approach to innovation?

Innovation is a bedrock of sustainability and is one of our three fundamental values. Innovation means looking ahead and looking beyond, aiming for new ambitious goals and, doing so by opening to new paradigms, in which economics needs but also ethical and social ones are included in the ecosystem, to create a successful company and a sustainable success overtime.

What are your priorities for the short term?

We are building a sustainable growth while we will continue to invest in our people. The well-being and safety of our colleagues, customers, and business partners was and remains our top priority. We will continue to invest in our community: the SHE STEMS program recently launched is just one of our concrete initiatives in this sense. In this period of huge market volatility, we want to represent a safe harbor for all our partners. ✖

Part of a global group with 140 years of history, Oman Cables has become the leading cable manufacturer in Oman and established a reputation for operational excellence.

Image: SHAN PHOTO

NUMBER OF ATMS PER 100,000 ADULTS

REAL PROGRESS

Oman’s financial sector has continued to perform well despite economic headwinds. The vibrant Islamic banking and financial services segments have supported the sector’s growth, together with the efforts carried out by the government to boost the economy in in various areas. “As oil revenues are rising and contributing to the budget surplus, government expenditure on development projects is expected to stimulate economic growth momentum. The government is also offering incentives for FDI in many sectors, which will also increase employment and add to GDP. And amid improved market confidence, the contracting segment is expected to revive, which will increase the demand for capital goods,” said Aftab Patel, CEO, Al Omaniya Financial Services, in a recent interview with The Business Year.

Elsewhere, economic progress in Oman is reflected in the performance of the insurance sector. Although insurance is still nascent in the country, with penetration rates relatively low compared to other financial services, the potential for growth is quite large. Particular to Oman, a major challenge is the increasing frequency of natural disasters, which has become a national concern and put the insurance industry in the spotlight. In an effort to

promote this sector, local companies have begun the path toward digitalization and the improvement of the customer experience. “One of our key highlights is on digital transformation, particularly following the COVID-19 crisis. This helped us be closer to our customers and serve them better as we were able to operate more efficiently,” said Hasan Al Lawati, CEO of Oman Qatar Insurance Company (OQIC).

On another note, as the global banking industry prepares to redefine business operations and strengthen its position in the digital arena, banks in Oman are gearing up to fully integrate digital transformation into their systems and processes to ensure that they keep up with customers’ evolving needs and the changing business landscape. “Technology and innovation have always been at the core of BankDhofar’s operations. We are constantly keeping pace with technological developments while designing new products and services to ensure convenient banking experiences for customers. And we are committed to designing state-of-the-art products, services, and financial solutions that adopt the latest technology to ensure a convenient banking experience to our customers,” said Abdul Hakeem Al Ojaili, CEO of BankDhofar. ✖

A NEW era

MSX is paving the way toward sustainable economic development through diverse public capital-raising strategies.

How is Vision 2040 impacting on market capitalization

and turnover?

MSX has gone through remarkable transformation over the past two years, including the privatization of the exchange in light of Royal Decree No. 5/2021 issued by His Majesty Sultan Haitham bin Tarik and infrastructural reforms such as the new executive board and management. MSX has materialized a five-year strategic plan with six main objectives revolving around boosting investor confidence, introducing new investment products, continuously upgrading trading technology, facilitating listed companies’ financial performance, in turn the markets’ financial performance, and commitment to its human capital development. MSX’s five-year strategy helps the exchange set clearly identified targets to support the government’s efforts to advance economic diversification by partnering with the relevant local bodies to create listing incentives and promote awareness of public fundraising while conforming to international best practices and standards enforcing the competitive position of the exchange, ultimately serve the optimal goal of promoting the Sultanate as an attractive investing destination.

How is MSX intertwined with environmental, social, and governance (ESG) concerns?

MSX is in a unique position to tie into the ability to support local issuers in building ESG best practices. MSX regards ESG as ahead of its sustainable goals and vision for the local capital market, and to maximize the learning and development on the concepts of ESG and sustainability with regular training programs and workshops dedicated to building ESG capacity

in the market we have created a Sustainable Investments section that leads the march of ESG for local issuers. In order to provide market participants with sustainable development goals and standards, MSX announced its joining of the UN SSE initiative. This initiative enables the exchange to undertake a more proactive role in implementing international benchmarks, while developing standards that are tailormade to specific needs of the local capital market alongside engaging different stakeholders, and supporting market participants in the journey toward procuring sustainable finance. We also understand the importance of strengthening the investor protection framework in the market for the creation of a sustainable stock exchange and are thus promoting awareness and partnering with relevant international and regional institutions on investor relations such as the Middle East Investor Relations Association, which MSX is currently a head of at the Oman Chapter to ensure prompt advancement of the market.

What steps are being taken to promote the financial markets in Oman and attract more institutional investors to MSX?

MSX is moving toward achieving its vision of being a world-class exchange with global presence. Via its five-year strategy, MSX strives to improve the liquidity status in the market by focusing on the main priority of upgrading the market to the emerging markets list by satisfying the international indices (MSCI and FTSE) requirements that would facilitate capital inflows, widen investors’ base and hence increase market depth. MSX has lifted all restrictions on foreign ownership

limits for all listed securities and is working on introducing market making and liquidity-providing services along with the market features necessary for these operations such as short selling, margin financing, and securities lending and borrowing. Additionally, we are strengthening connections and establishing partnership with regional markets such as Saudi Tadawul, Abu Dhabi Securities Exchange, Bahrain Bourse, and Iraq Stock Exchange to enhance integration and cooperation in different capital market aspects. MSX is also actively incorporating such opportunities of establishing cross-listing links with GCC markets with the aim of increasing the visibility of local companies and allowing them to capitalize on the relatively higher trading activity and market coverage. In 2022, we also inaugurated the Annual MSX Investor Roadshow to attract the attention of the global investment community by introducing growth prospects of MSX listed companies and strengthening our current investors’ confidence. This is an endeavor to maintain market integrity by creating a sustainable ecosystem for market forces to take their course and provide a conducive investment environment. ✖

Haitham Al Salmi is CEO of Muscat Stock Exchange SAOC and Chairman of the Muscat Clearing and Depository SAOC, with over 19 years of executive experience in capital markets and securities in leading financial markets institutions. He holds an MBA from the University of Bedfordshire and a bachelor’s degree in accounting from Sultan Qaboos University.

Haitham Al Salmi CEO, MUSCAT STOCK EXCHANGE (MSX)

Abdullah Al Salmi EXECUTIVE PRESIDENT, CAPITAL MARKET AUTHORITY (CMA)

What are some of the latest developments taking place in CMA?

A BIGGER role to play

BIO

Abdullah Al Salmi has been Executive President of CMA since 2012. Previously, he was its executive vice president. He is also chairman of the Economy and Development Pillar Committee and a member of the Technical Committee of Oman Vision 2040. In 2017, he became a member of the board of governors of the Central Bank of Oman. Al Salmi has been a board member of Oman Investment Authority since its establishment. He also acted as chairman of Oman Development Bank from 2015-2017 and chairman of Muscat Securities Market from 2002-2008. He is a founder and board member of the German University of Technology in Oman (GUtech). Al Salmi has an MBA from the University of Durham in the UK, an advanced management certificate from Harvard, and a bachelor’s degree in foreign trade from Halwan University in Egypt.

In the capital markets sector, we issued the new Securities Law, which will be more facilitative and replace the current Capital Markets Law. We are currently developing the virtual assets or digital assets industry in Oman, including establishing the regulatory framework for security tokens, crypto assets, crypto exchanges, and initial coin offerings, amongst others, in addition to the regulatory framework for virtual assets service providers, which includes the licensing and market supervision of capital market professional licensed entities. We are also in the midst of establishing new regulatory frameworks for sustainable bonds and sukuk, which will promote the issuance of sustainable, green, blue, social bonds, and sukuk, including waqf sukuk, new bonds, and sukuk regulation, which will allow a faster filing and issuance process, venture capital and private equity funds regulation, exchange-traded funds (ETF) regulation to enhance liquidity on the MSX, new collective investment schemes regulation, a fintech sandbox regulatory framework, securities borrowing and lending (SBL), public shareholding spread requirements to enhance liquidity on the MSX, and special purpose acquisition companies (SPAC) regulation for both conventional and Islamic instruments. CMA is also a member of the Oman Government Steering Committee for the local currency bond/sukuk market development, which includes the Central Bank of Oman and the Ministry of Finance. With a broader and deeper capital markets due to the offering of a variety of investment instruments, this will attract more foreign investors into the Oman capital market, with the expectation of enhancing the liquidity of the overall capital market. In the insurance sector, we have completed and launched the Dhamani (compulsory health insurance project) platform. Negotiations are in progress for a new health insurance law that will provide the regulatory bases for its full launch and implementation. In a new development, we expect the jurisdiction and oversight vis-à-vis regulating and supervising accounting and audit services in Oman to be transferred from MOCIIP

to CMA. This will be a major step forward for the national economy and business environment.

What is your assessment of the current performance of Oman’s capital market and insurance sectors?

Overall, and taking into consideration the post-COVID-19 situation, we are doing well, though things could have gone better if it was not for the moving sands of geopolitics and oil prices, which introduced an additional macroeconomic variable: imported inflation. Furthermore, we were expecting to have more issuances either in terms of government assets coming to market as well as sovereign and commercial bonds and sukuk. We have had a great 2021 and 2022. The corporatization of MSM and creation of MSX has proven to be successful and of great interest to institutional investors and foreign trade partners. We have also experienced a heightened appreciation for the role of the capital markets and insurance sectors in the fulfillment of Oman Vision 2040 from several state and non-state actors.

What steps are being taken to promote the financial markets in Oman and attract more institutional investors?

CMA together with the MCD has collaborated with Euroclear Bank based in Belgium to establish a new Euroclear international central securities depository account in Oman, which will be operated by MCD. This new Euroclear account will provide Omani issuers and investors easier access to the global financial markets and Europe’s biggest settlement house for securities, while providing global connectivity to the MSX and MCD through the Euroclear Bank system. In addition, we have been working closely with the MSX on being promoted to an emerging market. They have been conducting roadshows. We have been liaising with regional and players to bring into effect the requirements and conditions to make MSX an emerging market. That will attract foreign institutional investors to Oman. The CMA is working on diversifying products in the market and enhancing MSX liquidity to guarantee easier and faster movement of capital to and from the market. ✖

CMA is the financial regulatory authority overseeing two of the most influential financial industries in Oman—capital markets and insurance.

a team EFFORT

Bank Nizwa is the largest and fastest-growing, fully fledged Islamic bank in Oman, using innovative Islamic financing solutions and focusing on providing excellent customer service.

Khalid Jamal Al Kayed CEO, BANK NIZWA

Bank Nizwa recently won the Best Performing Company award, while you were chosen as CEO of the Year – Islamic Banking at the Alam Al Iktisaad Awards 2021. What are the key management decisions you have made that contributed to this success?

The recognition we have received is a result of the productive work of the entire team of Bank Nizwa. They have worked tirelessly to ensure we continue to provide quality in all of our activities, and although I am truly honored to have earned these accolades, I want to express my heartfelt gratitude to them. At Bank Nizwa, our focus has been on sustainable development whilst providing long-term benefits to our customers. Bank Nizwa is a global leader in providing sharia-compliant banking solutions and products for consumers and shareholders, as evidenced by our great financial success. In addition, we now have a number of accolades to our name. We will continue to promote the advantages of financing that complies with shariah law as a pioneer in the Islamic banking industry. The five-year strategy roadmap for Bank Nizwa was established in 2020 and is centered on the five development pillars of financial performance, technical improvement, market share, team and culture, and being a forward-thinking organization. Whilst on this path, the bank was able to develop its operations and make outstanding performance improvements. Bank Nizwa has been paving the way for change as the largest and fastest-growing full-fledged Islamic bank in Oman by using innovative Islamic financing solutions, focusing on providing excellent customer service and assisting the expansion of local businesses.

Bank Nizwa recorded outstanding financial results. How did it navigate the crisis resulting from the pandemic, and what instruments did Bank Nizwa rely on to facilitate a quick and stable recovery?

In spite of economic concerns due to the pandemic, Oman’s banking industry remained strong. The sector maintained a positive trajectory because of abundant capital and a low percentage of non-performing assets. Though credit risk has been well-managed, credit growth has slowed along with the economic downturn. This was furthered by the Central Bank of Oman’s easing policies, which included decreased capital conversion buffers, raised loan ratios, and decreased interest rates on repo operations, among others. In addition, the CBO started a number of policy initiatives to support banks and the nation’s economic recovery. In addition, the project finance sections of Islamic banks provide coverage and funding for national economic priorities. During the pandemic, for instance, clients were assisted with cash flow management to the extent that policy measures implemented by the Central Bank of Oman permitted. Major cities including Muscat, Sohar, Salalah, and Duqm remained the important focus regions. In Duqm, the emphasis was on development efforts that fit with national objectives. Special consideration was given to infrastructure projects and national priority industries across the Sultanate, with the participation of all stakeholders in the creation of sharia-compliant solutions with high economic value. The enormous growth of Islamic banking in the Sultanate over a short period is quite promising. Looking to the future, we are confident in our capacity to establish new, high-quality industry standards and elevate Oman’s standing in the global Islamic banking market.

In which segments of the economy is the bank seeing the most growth and opportunity today? As the largest and fastest-growing fully fledged Islamic bank in the Sultanate, Bank Nizwa has recorded stellar growth as

reflected in its financial results. Dedicated to bringing about a positive change in the economic landscape, Bank Nizwa continues its strategic roadmap of shaping the future of Islamic finance in the country by continuously recording outstanding performance in its financial results. As a testament to its progress, Bank Nizwa has turned in a commendable financial performance by registering a 6% growth in net profit. The bank’s total assets also increased by 6% in 2022, reaching OMR1.5 billion in Dec 2022 from OMR1.4 billion in December 2022. The gross financing portfolio improved by 10% to OMR1.27 billion, whilst the total customer deposit portfolio rose by 7% to OMR1.2 billion. This increase in financing and deposit portfolio in retail and corporate businesses has supplied the bank with the impetus it needs to maintain its growth trajectory. ✖

BIO

A financial industry veteran with over 27 years under his belt, Khalid Jamal Al Kayed has been associated with Bank Nizwa since its inception. Prior to joining the bank, he held various posts in a host of well-respected financial institutions, including deputy CEO & CFO at Jordan Dubai Islamic Bank and CFO at Standard Chartered Bank Jordan. Al Kayed holds a master’s in international accounting and finance from Liverpool University. He is also an alumnus of Columbia Business School, from where he completed an executive management program. In addition, he is a certified management accountant and certified financial manager from the Institute of Management Accountants.

MOVE ONLINE

The fintech scene is rapidly evolving in Oman, with non-bank financial institutions capitalizing on their agility, niche markets, and a conducive ecosystem.

WHEN “FINTECH” BECAME A BUZZWORD IN THE 2010S, many were not clear on what it might contribute to the banking ecosystem in places where financial inclusion was not an issue. Banking, after all, was largely digitalized by that time across all developing economies. In Oman, for instance, almost all transactions have been cashless for some time, as encouraged by regulations, and there are no truly unbanked individuals. Now in 2023, what can fintech add to a country such as the Sultanate of Oman, where all traditional banks already offer comprehensive online solutions to their customers?

The answer to the above-mentioned question is “a great deal!” Fintech companies—many of whom are startups—have performed impressive feats which are beyond the capabilities of traditional banks. Fintech companies are usually leaner than old-fashioned banks, enabling them to roll out financial services which would take ages for banks to offer. Mainstream banks are notoriously slow to embrace new trends, whereas fintech companies are, by nature, early adopters.

“We as a non-banking financial institution (NBFI) are more flexible, more adaptable, continuously evolving and cost effective. We are part of the financial ecosystem of the country and provide better financial inclusiveness to the people,” argues Aftab Patel, CEO of Al Omaniya Financial Services, who recently sat down with TBY. Although Al Omaniya is not a bank, it currently offers a mix of niche products and services, ranging from lifeline loans to lifestyle loans. Such loans are rarely on offer in traditional banks.

Unlike banks, fintechs are usually SMEs, enabling them to focus on issues which are considered to be too niche for a bank. A new fintech solution called Instant Goods Finance, for example, was launched in Oman in 2021 to give people limited instant loans for the purchase of items such as home appliances or furniture based on the Islamic idea of Murabaha. This is a niche market that multinational banks would hardly be able to focus on.

Nevertheless, banks do not want to miss out on the new developments. A new trend both in Oman and abroad is that fintech enterprises are increasingly backed by mainstream banks. Many banks are launching their own fintech divisions or taking promising fintech startups under their wings. The fintech solution mentioned earlier that specialized in instant loans, for example, is a joint project be-

tween the Alizz Islamic Bank and a Bahraini fintech company. Banks are increasingly willing to team up with fintechs that have a brilliant idea. This can be an ideal arrangement, as the customers will benefit from the reliability of a large bank as well as the creativity and agility of a fintech startup.

Personalized financial services are usually the most important distinction between fintech enterprises and banks. Fintech companies have put an end to the one-size-fits-all mentality which dominated the financial sector for a long time. Digital wallets are currently pretty much in vogue in Oman, and since 2020 over half of all users conduct their transactions using e-wallets rather than traditional debit cards. There are nine leading providers of e-wallets are offering Omanis a wide range of choices. Competing digital wallets such as NBO Wallet, eFloos, and Pay+ are constantly coming up with better deals for international money transfer and making payments to merchants.

Oman’s fintech ecosystem seems to be rife with possibilities, as the country enjoys several crucial enabling factors: access to the internet is well over 90% in the Sultanate, while over two thirds of all Omanis are both banked and familiar with online transactions. There is seemingly nothing to stop the rise of fintech in Oman, especially with a conducive regulatory framework in place to make everything reasonably safe and secure for the clients, while giving fintech companies some freedom to be creative.

Global rating agencies are steadily improving their outlook on the Sultanate every few months. And the fintech sector will be worth over USD5 billion by 2025. Everything, in short, seems to be prepared for a period of exponential growth in Oman’s fintech sector, especially as the market is still far from saturated.

Industries related to banking, such as insurance, are also sizing up the fintech sector to see how it can boost their business activities. Dhofar Insurance Company’s CEO, Sunil Kohli, recently told TBY that his company is working on several digital products and services. There are definitely more companies from such sectors with similar projects in the pipeline. We are probably going to see the birth of quite a few exciting startups in the sector soon. Larger financial institutions and foreign investors, meanwhile, will be motivated to invest in the more promising fintech startups in 2023. ✖

FINTECH

The fintech sector is one of the fastest-growing financial segments in Oman, and across the world, due to its ease of access, quickness, and reliability.

Abdul Hakeem Al Ojaili CEO, BANKDHOFAR

Could you walk us through the history of the bank and some of its major milestones in the past year?

MORE to achieve

BankDhofar has been on a comprehensive restructuring and transformation journey in order to achieve its vision of becoming the best bank in the Gulf in terms of customer experience.

BIO

With 32 years of progressive experience in all aspects of banking operations and a strong record of leadership, Abdul Hakeem Al Ojaili was appointed CEO of BankDhofar in 2017. He holds a master’s degree in banking management from the University of Exeter in the UK and a bachelor’s degree in business administration, marketing, and management from New England College in the US. He is also an alumnus of both the Harvard and London business schools’ executive education programs, and he was cross-posted to work on key assignments with a number of international banks.

Since its inception in 1990, BankDhofar has continued to grow steadily, cementing its presence as the second-largest bank in the Sultanate. We have, since then, taken the strategic decision to accelerate our growth while focusing on sustained performance. Today, BankDhofar is ranked among the largest banks in the country in terms of size. During the past few years, we have initiated various initiatives to ensure convenient banking experience for our customers. We work closely with the financial sector regulators to ensure sufficient and efficient solutions are in place, and we introduced a bundle of initiatives for further convenience to our retail and corporate customers. We emphasized on customer service excellence, technology upgrade, prudent lending norms, and other cost control measures that we had put in place. The bank has invested in digital infrastructure to improve our customers’ experience. We have implemented several initiatives utilizing technology to provide the utmost convenience to our customers by enabling them to conduct their banking transactions with ease. Not only that, we believe customers are the core for our success and operational growth. Thus, we constantly strive to promote positive communication and maintain a sustainable relationship with our customers. Our call center provides significant customer benefits by offering services around the clock, including holidays, and handles high call volumes. Regarding community engagement, our efforts are in line with sponsoring and supporting sustainable initiatives towards social development and welfare of local communities, along with different programs and schemes initiated to raise awareness of financial literacy, financial inclusion, and the introduction of creative financial solutions, innovative products, and services.

Oman is making progress in innovation, including switching to mobile and internet banking. Can you tell us more about progress in innovation?

Technology and innovation have always been at the core of BankDhofar’s operations. We are constantly keeping pace with technological developments while

designing new products and services to ensure convenient banking experience for customers. We are committed to designing state-of-the-art products, services, and financial solutions that adopt the latest technology to ensure providing a convenient banking experience to our customers. In translation of that, our customers may conduct their transactions at ease and around the clock through our highly secured and user-friendly digital banking channels, including mobile banking apps, internet banking, along with a wide network of ATMs and CDMs around the Sultanate. To add further convenience to our customers, we have introduced cardless ATM banking services using mobile. The first-of-its-kind service in the world enables customers to conduct ATM transactions easily only by using their mobile numbers. Along with the services provided over BankDhofar’s digital channels, BankDhofar customers may conduct their payment transactions conveniently through BankDhofar cards with the “Tap & Go” feature. This feature allows customers to pay on the go for shopping, traveling, or for any payments. The cards are highly secured and come with an RFID protection card and cover.

What are your competitive advantages compared to other banks in the market?

In addition to the initiatives of the bank, we have been at the forefront of supporting several fintech initiatives, by providing the payment infrastructure along with the expertise, as we believe that fintech is the future of finance. Apart from digital initiatives, we are currently expanding our branch network to make sure that we are closer to our customers. With the aim of providing state-of-the-art services that ensure the utmost convenient banking experience, we had introduced drivethrough banking services. The first-of-itskind service in the Sultanate enables our customers to conduct several banking transitions without stepping out of their car. For our corporate customers, we provide comprehensive products, services, and financial solutions through our fullfledged, dedicated corporate centers serving corporates, government entities, and SMEs customers all under one umbrella. The centers are located in different areas across the Sultanate, including Muscat, Sohar, and Dhofar. ✖

working TOGETHER

Standard Chartered Oman has been operating in the Sultanate for 54 years, with a focus on supporting local banks, the banking system and infrastructure, and multinational corporations in its 58 countries.

Could you give us an overview of the bank’s core operations?

Standard Chartered Oman has been in the Sultanate for 54 years. Our operation in Oman is bespoke and complementary to the local banking system. Throughout the years, our strategy is to support local banks, banking system and infrastructure. We enjoy a strong and solid relationship with the government and regulators, including the Ministry of Finance and Oman Investment Authority (OIA) group companies and Energy Development Oman (EDO), who we both have worked with closely. We also support our Global Subsidiary Group and multinational corporations especially those who are present in any of our 58 countries. Standard Chartered is a one-branch operation that employs over 50 people and an Omanization rate of about 92%. We also make sure that we complement local banks in various areas that includes operations, capital finance, and structure finance.

How do you develop human resources, and more specifically, local talent?

It is extremely important and essential for any company to ensure that we have Omani talent who are trained and developed to become leaders in the public and private sectors. Omanization is high on our agenda, and nurturing Omani talent is one of our key objectives. As an international bank with diverse cultures and expertise across the world, we place a lot of focus on the development and growth of our people, as we believe diversity is an advantage to any business. We also have the tools, capabilities, and enablers to support our talents further, but we also believe that it is also up to the individual to take control of his/her own growth journey.

What are your competitive strengths and advantages? While we place a lot of importance on various capabilities, our main strength is our people and their expertise, our global network that spans across 58 markets and our products and services. With a huge focus on climate change and the urge for sustainable developments, we plan to mobilize USD300 billion in green and transition financing

Hussain Al Yafai CEO, STANDARD CHARTERED

and have set up a transition acceleration team to support carbon-intensive sectors. We are committed to net-zero finance emissions by 2050, aligning with the Paris Agreement. We have started working toward those targets through deals and interactions with clients. Currently, it is commercially viable to go through the ESG route, and financially incentivized. Five years from now, it will no longer be a commercial issue, and anything short will be actively penalized. It is great that regulators are pushing the envelope on this issue. For example, we carried out the first ESG funding in Oman for Oman Shipping, supporting around eight government entities in assembling their ESG framework. These bold commitments in the market confirm that Standard Chartered is at the forefront of the ESG initiative.

In terms of innovation and digitalization, what plans have been made?

The Bank established SC Ventures in 2018 which is a business unit of Standard Chartered that provides a platform and catalyst to promote innovation, invest in disruptive financial technology and explore alternative business models. It performs a number of different activities—namely venture building, equity investments, fintech engagement, and intrapreneurship. It is this unique combination that sets SC Ventures apart from the competitive landscape of venture capital firms, accelerators, and incubators. There are currently over 40 ventures at different stages of maturity in the portfolio. While a handful started as ideas within the bank intended to solve specific challenges of Standard Chartered, the process of realizing standalone ventures has unearthed the greater go-to-market and monetization opportunity. The investment portfolio has 21 fund investments, focusing on investing into best-of-breed companies that offer technology and capabilities that can be integrated into the Bank and Ventures. Our portfolio has been built across six high-conviction themes: digital banking and lifestyle, online economy and payments, SMEs and world trade, digital assets, capability-as-a-service, and sustainability and inclusion. ✖

BIO

Hussain Al Yafai has been the CEO and Head of corporate, commercial, and institutional banking for Standard Chartered Oman since 2019. He joined the bank in 2005 as regional business planning manager for financial markets in Dubai where he led various highprofile debt capital market transactions for MENA. This helped position Standard Chartered as a market leader in the MENA region. He returned to Oman and was appointed head of wholesale banking in 2013 and later became the head of global banking in 2016.

Works toward mutual benefit instead of competing with local banks

The bank is committed to sustainable social and economic development across its business, including achievement of net zero emissions

Image: Rajesh. Rajan

An aerial view of Wadi Kabir, Muscat

the responsible APPROACH

Muscat Finance takes a long-term, responsible approach to its business, and acts for the greater benefit of Omani society.

Can you provide an overview of the company and some of its major highlights in the past year?

Muscat Finance was the first finance company to start in Oman. It moved from privately owned to public listed in December 1992. MFC started with a small operation that complemented the banking sector to bridge the funding requirement gap in the market for different segments, mainly the segments untapped by banks. NBFCs have their own model, appetite, and market segments. Together with traditional auto finance, muscat finance was the first to introduce short-term working capital requirements for SME funding. Like any player in the financial sector, especially during pandemic period, Muscat Finance went through turbulence that was tackled wisely by the board and management with minimum impact. Due to there being no clarity on when and how the market would return to growth, MFC took cautions on growth and diluted its focus and resources to serve and manage existing customers. Financial year 2022 is considered one of the most important years in the history of Muscat Finance, when several checks and balances were exercised and are still being stabilized.

What is your current portfolio of services and products?

We have almost all regulated licensed products, such as, auto finance, leasing, home appliance finance, working capital finance, factoring, and warehouse finance. It is worth appreciating our regulators, who are consistently looking for enhancing the value-added products and services of NBFCs and we understand they are considering approval of more products for NBFCs to support the economy in general and SMEs in particular.

Other than our traditional lending, MFC is also exploring micro finance products with fintech and opportunities for collaboration with different value-added businesses such as insurance, payment, BNPL, and others.

What are Muscat Finance’s competitive advantages compared to competitors?

First of all, we don’t call them competitors here at MFC; they are our peers and all of us have a common goal, which is to bring value to the country and all stakeholders. Muscat Finance as a brand itself is a value-added advantage considering its legacy and its contribution to the economy. We have a gold mine of data, which we are trying to leverage on in our relationship management, decision making, and segmentation. We are still learning, relearning, and unlearning market need and behavior to be able to meet our stakeholder’s expectations, mainly our customers. Many competitive advantages built back in the day have now became part of normal business processes. We at MFC are building competitive advantages by listening to and understanding the expectations of our customers, partners, regulators, and shareholders. It is important to keep building those advantages continuously and consistently by monitoring the cycle of these advantages from competitive advantage to business as usual.

What are your main goals and priorities for the short term?

we are continuously building our foundation by hiring resources, building robust systems, lean processes, liquidity stability, and diversified risk tolerance. Growth is essential for survival; however, we will continue to be cautious in our growth

approach for the time being considering the overall domestic and international market. We are replanting seeds now, and we do understand that we have to go through thinning, irrigation, and maybe drainage—then we will see the fruits. The journey require consistency, flexibility to fine-tune, and commitment from all stakeholders. I can proudly say that we decided to plant the seed only when we saw commitment from the key stakeholders of Muscat Finance. Our strategy is aligned with Oman Vision 2040, and we are looking forward to continue contributing to the country and our society.✖

BIO

Hussain Al Lawati has served on various governmental committees formed to support SMEs and financial sector. He has a degree in accounting and is a certified expert in SME finance and a Harvard Business School Alumni. He is currently the CEO of Muscat Finance.

Hussain Al Lawati CEO, MUSCAT FINANCE

INNOVATION AND FINANCIAL INCLUSION: BANK NIZWA’S UNIQUE STANCE ON SPEARHEADING ISLAMIC FINANCE IN OMAN

Bank Nizwa is pioneering a new kind of sustainable, sharia-compliant banking in Oman.

PROVING its resilience against global economic headwinds, Islamic finance has seen steady growth in the past years. With the growing awareness of sharia-compliant financial products and their benefits, an increasing number of individuals and corporate companies are now leaning toward Islamic finance. As a matter of fact, the global Islamic finance industry is expected to continue its upward trajectory at an average of 8% until 2025.

The Omani Islamic banking sector, though still considered nascent, has also mirrored stellar growth. According to Fitch Ratings, its market share is expected to rise progressively in 2023–2024 after reaching 16.4% of total sector assets by the end of 2022. Omani Islamic banks (including Islamic windows) recorded total assets of OMR6. 4 billion in 2022, whereas the financing growth of Islamic banks stood at 12.2% YoY. The deposits of Islamic banks also witnessed a growth of 10.9%, and the Islamic banking market share, based on both financing and deposits, crossed 18.5% in 2022.

These figures further attest to the reality that the Sultanate has, undoubtedly, seen significant public demand for Islamic products. This has been backed by supportive government regulations and dynamic reforms in favor of Islamic banking. The Central Bank of Oman (CBO), in 2022, also introduced an Islamic liquidity management instrument (ILMI) in the form of a wakala money market instrument to further complement the structural enhancements.

As the pioneering Islamic bank in Oman, Bank Nizwa had a more critical role to play in developing the industry—a role that it honored dutifully. The bank, ever since its inception, has demonstrated an inherent zeal to innovate while embracing the latest advancements in technology and digitalization.

Through its impactful endeavors, the bank has been at the forefront of promoting the values of equality, transparency, and integrity in society. Its much-acclaimed Islamic Finance Knowledge Series (IFKS), for example, has played a leading role in highlighting the advantages of various Islamic financial instruments available in the country, thereby, spreading Islamic financial literacy. Enhancing the accessibility of Islamic finance instruments has also helped foster stable investments in the community, which in turn has boosted job opportunities and has led to a more holistic invigoration of the econ-

omy. Acknowledging the fact that on a macro-economic level such emphasis on financial inclusion will also equip the nation with the ability to handle uncertainties that require spontaneous action while reducing the impact of financial shocks, the bank is making quantifiable efforts to add value to people’s lives.

Bank Nizwa’s unique stance on innovation is what has been instrumental in helping the bank lead transformational change in the economy. Complementing its forward-looking outlook is the bank’s keen focus on sustainability—an attribute that forms a quintessential pillar of Islamic teachings. In line with the same, Bank Nizwa became the first Islamic bank to introduce sustainable finance in Oman. This initiative, while addressing vital issues like climate change, environment protection, and the enrichment of communities, also supports projects that are geared at meeting the nation’s carbon-neutral goals and promoting the transition to a green, circular economy.

Digitalization has been a cornerstone for Bank Nizwa and to further reaffirm its commitment to a green economy, the bank inaugurated its first paperless, unmanned, and digital-only branch in the Mall of Oman in December 2022. While this was a definite leap in the realm of digitalization, it also asserted the fact that the bank had successfully nurtured a digitally-conscious clientele.

Bank Nizwa is strongly aligned with Oman Vision 2040 and the nation’s revenue diversification agenda. As such, the bank has aptly identified the potential of the Islamic finance industry, addressed areas that can be enhanced, and leveraged the inherent advantages of sharia-compliant financial products to contribute to furthering the nation’s objectives.

Paying tribute to Bank Nizwa’s concerted efforts toward sustainability, financial inclusion, and innovation are the various awards the bank was honored with in recent times, which include the “Best Sustainable Banking Products Innovation” accolade at the Alam Al Iktisaad's Islamic Banking and Finance Summit (IBFS), the “Most Innovative Islamic Bank” title from International Finance Magazine, and “Excellence in Mobile Banking” at the New Age Banking Summit. The bank recently also became a signatory of the UN Principles for Responsible Banking and a member of the UN Environment Programme Finance Initiative. ✖

FINANCIAL SOLUTIONS

Financial services are growing in sophistication in Oman, and digitalization initiatives are commonplace among providers.

What have been some of your highlights from the past year?

ABDUL HAKEEM AL OJAILI Since its inception in 1990, BankDhofar has continued to grow steadily, cementing its presence as the second-largest bank in the Sultanate. We have, since then, taken the strategic decision to accelerate our growth while focusing on sustained performance. Today, BankDhofar is ranked among the largest banks in the country in terms of size. During recent years, we have initiated various initiatives to ensure a convenient banking experience for our customers. We work closely with financial sector regulators to ensure sufficient and efficient solutions are in place, and we introduced a bundle of initiatives for further convenience to our retail and corporate customers. We emphasize customer service excellence, technology upgrades, prudent lending norms, and other cost control measures that we had put in place. The bank has invested in digital infrastructure to improve our customers' experience. We have implemented

several initiatives utilizing technology to provide the utmost convenience to our customers by enabling them to conduct their banking transactions with ease.

AFTAB PATEL The company was formed and went public in 1997, since when it has consistently grown year after year. For many years, we have been rated as the number-one, top-performing company. Al Omaniya’s non-performing loan (NPL) ratio is the lowest in the region. The best ability to measure your performance is the quality of your loan book. We have the lowest non-performing loans and the highest provisions required to have a stable, clean loan book. We have a similar customer base to the banks because of our quality proposition and are able to raise money at competitive prices. Therefore, we are able to match or even do better than some of the banks. We have also maintained our record of paying a dividend every single year since the company’s inception, the cumulative dividend paid since inception is 466.33%

What steps are you looking at to further digitalize services?

AHAO Technology and innovation have always been at the core of BankDhofar’s operations. We are constantly keeping pace with technological developments while designing new products and services to ensure convenient banking experiences for customers. We are committed to designing state-of-the-art products, services, and financial solutions that adopt the latest technology to ensure a convenient banking experience for our customers. Our customers may conduct their transactions at ease and around the clock through our highly secure and user-friendly digital banking channels, including our mobile banking app, internet banking, and a wide network of ATMs and CDMs around the Sultanate. To add further convenience to our customers, we have introduced cardless ATM banking services using mobile. The first-of-its-kind service in the world enables customers to conduct ATM transactions easily by using their mobile numbers. Along with the services provided over BankDhofar's digital channels, BankDhofar customers may conduct their payment transactions conveniently through BankDhofar cards with the tap-and-go feature. This feature allows customers to pay on the go for shopping, traveling, or for any payments. The cards are highly secured and come with an RFID protection card and cover.

AP We are at an advanced stage now of launching a digital platform. It will create an Al Omaniya office on every smart phone. It is a very comprehensive application that you can download on an android or Apple device. We offer comprehensive services to the customer. It will allow corporate and retail customers to do business with us on digital platforms without physically visiting us. It means that there is no need to open new branches now. We will be a seamless 24/7 service. We are also focusing on syndication of business with the banks. We do a lot for syndication of large loans with the banks. We are the only non-banking company to be part of this syndication. We have the expertise and the understanding, having realized several projects with banks. We continue to focus on that line of business. ✖

Abdul Hakeem Al Ojaili CEO, BANKDHOFAR

Aftab Patel CEO, AL OMANIYA FINANCIAL SERVICES

THE RIGHT path

Established in 2006 in Oman as a conventional insurer, Al Madina Takaful transformed into a fully fledged takaful insurer in 2014 to better serve the community.

Usama Al Barwani CEO, AL MADINA TAKAFUL

Al Madina converted itself to a takaful insurance company in 2014. What are some of the advantages of Islamic insurance?

The main advantage is being fully shariah compliant and doing the business in accordance with the principles of shariah. The economic objective is of mutual interest of participants and shareholders. The underwriting follows shariah framework of rules and regulation, and the prime motive under takaful is to serve the community, with profit making coming second. We have close relations with our customers and business partners and keep track of ongoing demand in the markets. Al Madina Takaful strives to fulfil customers’ needs and introduce new innovative products in line with shariah guidelines.

Al Madina holds a leading position in the market. What are your plans to consolidate this position?

To consolidate this position, Al Madina Takaful plans to maintain discipline in its underwriting philosophy, increase revenue through focusing on higher retention business, increase our online sales through web-tools and increased visibility through social media, further develop and expand Al Madina direct sales team to minimize our reliability on intermediaries and lower acquisition costs, develop retail business through cross selling to our corporate clients, and focus more on sales planning and superior customer service experience. The company also plans to expand and increase our geographical reach across Oman through creation of an effective agency network. It plans to strengthen its distribution channels and supply chain. At the same time, we want to strengthen the bancassurance distribution and expand business through this source. The company also plans to participate in mandatory medical insurance.

B2B mobile app, and life and medical software-platform.

How important is promoting human capital development and local talent within the company?

Human capital and local talent development is of paramount importance to us. A company is only as good as the talent behind it. We always believe that we need to hire the right skill set of people to achieve the company’s objectives. We invest heavily in our human capital by ensuring our staff are sent for regular trainings and courses, both inside Oman and overseas. We are also developing local talent as part of our succession plan and providing them on-the-job training. To date, many of our departments are headed by nationals. Al Madina Takaful has exceeded the legally mandated Omanization percentage as of 1H2022.

What potential disruptions do you foresee in the insurance industry in Oman?

Among others, we foresee the following possible hurdles and disruptions: increased RI pricing in view of continued natural catastrophic losses or COVID-19; diminishing reinsurance capacity in the global market, more importantly the re-takaful capacity; increase in expenses due to various regulatory requirements; a fall in motor and medical premium rates due to increased competition; more stringent solvency measures that may increase the need to infuse more capital by insurance companies; and overall market credit conditions impacting cash flow.

What are the main priorities and goals for the year ahead?

BIO

Usama Al Barwani has been CEO of Al Madina Takaful since 2016. He holds an executive diploma in strategic management and leadership from CMI in the UK, a postgraduate diploma in human resource management from CABA, Canada, a professional diploma certificate in TQM from Kaizen Institute, Japan, a diploma certificate in information and systems management from Aptech Oman, a diploma in education from Oman, certified Islamic specialist in Islamic insurance from CIBAFI, comprehensive technical program in general insurance from National Insurance academy, India, and is a certified compliance officer from AAFM.

What innovative technologies are you currently exploring and deploying across your operations?

Al Madina Takaful continues to invest in technology-driven innovation, IT upgrades, and process automation with the primary focus on increase in digitalization of insurance processes. We are in the process of implementing the below technology solutions, which will be beneficial and result in operating efficiencies and enhance customer service. Some of the initiatives include: upgrading of business intelligence tool, implementing a

Al Madina Takaful has several priorities and goals for the year ahead, and these include continuing to serve our customers with efficient and superior services; achieve stable growth and maintain market position; continue to balance profitability for both participants and shareholders; focus on the mission of customer satisfaction by providing superior service; commitment to its employee for their growth and development; investment in IT upgrades, process automation, and digitization of insurance processes; continue to look at growing opportunities within the Islamic finance space to generate stable yield on its investment book and achieve the targeted investment returns for shareholders and policyholders. ✖

serving CUSTOMERS BETTER

Given the relatively low penetration of insurance in Oman, OQIC believes there is still much more to be done, from raising awareness to increasing the use of technology and developing the right educational pathways.

What are OQIC’s main activities, and what have been some of the major highlights in the past year?

OQIC is part of Qatar Insurance Group, which operates across Europe, Bermuda, Asia, and the Middle East. In Oman, we have been serving our clients since 2004 with branches across the country. We are licensed as a composite insurer, which means we offer general, life, and medical insurance to our clients. One of our key highlights is on digital transformation, particularly following the COVID-19 crisis. This helped us be closer to our customers and serve them better as we were able to operate more efficiently. Our efforts were so successful that we recently closed two branches and reassigned the staff to our call center—which complements our online channels—in order to increase our focus on digital channels and customer service.

Can you tell us more about your market strategy and how you reach your clients?

We rely on brokers as one of our primary distribution channels, which is typical for insurance companies in Oman. Whereas retail clients would normally reach out to the insurer directly whenever they need insurance, corporate clients generally go to brokers first since they can offer bespoke solutions when the insurance requirements are more complicated. Therefore, to ensure we serve all our clients, we offer our solutions through the following channels: brokers and aggregators, agencies and branches; and online channels supported by a call center.

What are some of the challenges facing the industry? Insurance is still nascent in Oman, with penetration rates relatively low compared to other financial services. Therefore, I believe there is fairly great potential for growth. I have always been keen to

promote our industry. As a board member of the Oman Insurance Association and a member of the Finance and Insurance Committee at the Oman Chamber of Commerce & Industry, I actively use these platforms to raise greater awareness about insurance and its role in the national economy. In terms of specific challenges, insurance can be seen as lagging behind in use of technology, delivery of customer experience (as opposed to customer service), and lack of automation. Particular to Oman, one major challenge is the increasing frequency of natural disasters. This has become an issue of national concern, and it has put the insurance industry in the spotlight. The issue is that clients are constantly seeking the lowest rates; however, there comes a limit where the rates are not able to sustain the claims being paid out. Another challenge we face is that in Oman there is currently no educational institution that offers a degree in insurance. There are some professional courses, but nothing specific on which we can build a strong foundation on.

How does OQIC support career growth for local talent?

First of all, I am a big supporter of empowering Omani nationals and giving them the opportunity to enter the insurance industry. I am proud that our Omanization level stands at 85% with top management being 100% Omani. In terms of career growth, we support our staff in a number of ways. For example, currently 10% of our staff are being sponsored for further studies, with flexible or reduced working hours to accommodate their schedules. Beyond that, we actively present our staff with both internal and external training opportunities encompassing both soft skills and technical skills, as well as a lot of on-the-job coaching and mentoring.

BIO

Hasan Al Lawati joined OQIC as CEO in 2020. He sits on multiple boards and subcommittees. He chairs the executive committee of Omani Unified Bureau for The Orange Card SAOC and is a board member of Oman Insurance Association and a member of OCCI committee of Financial and Insurance Sector. He has several academic and professional certifications, including executive education-Stanford Lead in corporate innovation and strategic decision and a risk management certificate from Stanford University. He is also an associate of Chartered Insurance Institute (ACII), UK and holds a bachelor’s degree in banking, finance, and risk management from Monash University.

Enhanced online retail platform, fully focused on improving customers’ digital experience

Hasan Al Lawati CEO, OMAN QATAR INSURANCE COMPANY (OQIC)

more like it

From business trips where our hotel is your office, to leisure breaks where every minute counts, we think of what’s next so you don’t have to.

BIO

Khalil Al Harthy is an experienced founding partner with extensive experience in the management consulting industry. From 1992-2003, he worked as a portfolio manager for the Central Bank of Oman, and from 20032010 he was Assistant General Manager for Al Ahlia Insurance Oman. In 2010, he founded the Performance Factory, a management consulting firm. He holds a bachelor’s in finance from the University of New Orleans with a double-minor in MIS and management.

Khalil Al Harthy CEO, CREDIT OMAN

trade, of which about 65% is related to export and about 35% is domestic. We have covered 115 countries across the globe beyond Oman, which is a fairly large number. It is positive to see the Omani products reaching different places, and we also have about 7,000 international buyers who buy Omani products.

Credit Oman has managed to intensify efforts and secure a higher number and volume of sales insured. What key management decisions have led to this success?

BIO

Khalfan Mohamed Al Barwani has served in different capacities in various sectors, including upstream oil industry, central banking, and higher education. With over 30 years of specialized experience, he currently serves as chairman of the board at the College of Banking and Financial Studies and is member of the board at OMRAN chairing the Audit and Risk Committee. Over time, he has served as a member in a number of government committees. Al Barwani holds a PhD of philosophy in economics in the field of international money and finance from Claremont Graduate University, School of Politics and Economics (SPE) in Los Angeles, dual masters of arts degrees, one in international economic policy and other in applied economics, and a bachelor of science in business administration/ economics from various universities in the US.

What have been some of the major highlights for Credit Oman in the past year?

Credit Oman was set up in 1991. The main mandate for Credit Oman is to help promote trade and promote trade in a sense by providing trade credit insurance. If an Omani business wants to sell to another business, whether it is inside Oman or not, we protect their account receivable. Therefore, this gives companies freedom and the incentive to expand, and this became more important during the pandemic. Many companies reviewed their entire supply chains during the pandemic. They look at where they buy, how they manufacture, and who they sell to. Credit Oman over the past 30 years has covered over OMR2.2 billion worth of

We can attribute this to the pandemic as many people have been suffering from credit crunch and are not getting paid. Overall awareness is growing. The biggest partners for our non-oil exports are the GCC. Today, about 65% of our exports are chemicals, such as urea, iron, and aluminum. These are the bulk at 65% of exports because they are heavy metals that are commodities required globally. So now the government is trying to promote the manufacturing sector, and the knowledge industry. By 2040, Oman strives to achieve 90% of its GDP coming from non-oil and gas, which is fairly ambitious. If we go in that direction, the government and country has to focus much more on non-oil and gas, namely trade. ✖

Khalfan Mohamed Al Barwani CHAIRMAN OF THE BOARD OF DIRECTORS, COLLEGE OF BANKING AND FINANCIAL STUDIES & EXECUTIVE VICE PRESIDENT, INVESTMENT SECTOR, CENTRAL BANK OF OMAN (CBO)

in association with Stryker University. Digital transformation is part of the future and is expected to help the financial sector in minimizing transaction costs, improving customer services, as well as enhancing overall efficiency. We will also introduce two fintech programs. One will be at a professional level, where we will train leaders and decision makers with respect to what they can expect in digital technology. The second is purely technical, namely AI, cloud computing, blockchain, and other areas of emerging technologies.

What are your main priorities and goals for the year ahead?

Could you give us an overview of the college and some of its major highlights in the past year?

CBFS is affiliated with the CBO and receives funding support from CBO as well as the banking sector. Since its establishment in 1983, the college has sought to work closely with the market, the financial sector, in particular, to identify skill gaps as well as skills of the future and accordingly provide the required knowledge. In 2021, we conducted a survey of the financial sector for the purpose of meeting current market demands and come up with programs that we will implement in the coming academic year. Among these are a doctorate in business administration in association with Stryker University in the UK and a master’s degree in digital transformation, also

The priorities on the agenda for this academic year are to come up with a strategic plan for CBFS that should encompass our values that are anchored on academic excellence. Local and international accreditation for CBFS are critical as well, to ensure we do not just remain an Omani institution. In addition to academic and trading programs, CBFS engages in consultancy work with banks and financial institutions. As a long-term objective, CBFS plans to become a self-sustained institution financially despite receiving funding support from CBO and the banking sector in Oman. Additionally, CBFS provides professional programs such as CFA and ACCA in order to meet the market demands but also as an additional source of revenue for the college. ✖

Innovation & Digital Transformation

WIRED IN

The Sultanate of Oman is targeting total digitalization as part of its Vision 2040 program. Accordingly, the Ministry of Transport, Communications and Information Technology (MTCIT) has unveiled an executive plan for government digital transformation. The volume of investment is expected to reach OMR170 million over the five-year program (2021-2025). Additionally, the Sultanate has adopted the Digital Oman Strategy, which aims to activate information and communication technology to enhance government services, enrich the business sector, and enable individuals to cope digitally. The Digital Oman initiative includes establishing integrated infrastructure to provide e-government services to citizens and businesses in the Sultanate, build knowledge-based industries, and offer wide and varied job opportunities for citizens.

Commenting on this, Azzan Al Kindi, CEO & Co-Founder of Rihal, told The Business Year that the “oil and gas sector has always been the leader in digital transformation. Additionally, the telecommunications sector has been a leader. Some smaller mobile apps are encouraged. We are fortunate and unfortunate at the same time to be compared to our neighbors in the UAE and its current position. I look at this positively because we can see where we are and where we are heading. On the other side of the spectrum, gov-

ernment services have yet to be digitalized. The health sector is getting there, but it is not where it should be compared to other sectors.”

Efforts to become a more innovative and cutting-edge nation have also led to the implementation of smart cities application, such as Madinat Al Irfan and Duqm, which are examples of the country’s vision to create new urban centers.

Laila Al Hadhrami, former Smart Cities Development Manager at the National Energy Center (NEC), told The Business Year the “National Energy Center established the Smart City Development Department as part of its future vision tuned for innovation. And meanwhile, we have signed MoUs with various partners in Oman to implement smart city solutions. We have sought to introduce new technologies, partnering with the government.”

Thus, Oman is making strong headway and has seen a significant increase in transformation projects across the country, both in the government and private sector, with immense utilization of IoT. This has increased productivity and efficiency as a nation as government entities continue to embrace newer technologies to fulfill their national commitments. This has also been reflected in the expansion of the start-up ecosystem, which constantly create digitally enabled solutions that could benefit the entire economy. ✖

AT THE forefront

Maqbool Al Wahaibi CEO, OMAN DATA PARK (ODP)

ODP celebrates its 10-year anniversary in 2022. How has the company evolved since its establishment?

ODP started in 2012, and since then we have developed and provided different services. The first was called co-location, which is bringing a company’s IT infrastructure into our data center. Then, in 2014, we introduced cloud services. Since then, we also have introduced security services, as well as cybersecurity by forming a cybersecurity team at ODP dedicated to provide security for clients and ODP data centers. Oman has a strategy to make use of that place from a logistic and industrial perspective. Recently, we also launched our Nebula AI, which aims to provide GPU processing power to those with AI-based applications that want to process them locally. In terms of the value we provide, ODP has basically localized many hosting services that were before provided outside the country. There were no options to host applications within the country before ODP, and we took on many of these data and localizing in-house. Second, the value we have added has to do with providing best-inclass services in the most economical way. These two points are extremely important, namely preserving the country’s data sovereignty and helping clients lower their costs.

Time is not in our favor from a technological transformation perspective, and with COVID-19 there has been a further acceleration of this transformation. The third challenge that we normally face and we need to do something about is receiving more international exposure from a business entity perspective. We cannot continue to shy away from the world and need to expose ourselves more. My dream is to have ODP become a global player. The internet is giving us a leverage that we would never have received a decade ago. We can serve Spain through Oman, for example, and we need to take advantage of all these opportunities.

What are the main goals for the company for the coming year?

BIO

The CEO of ODP, Maqbool Al Wahaibi is also part of the executive management and founding team member to establish ODP. He has more than 20 years of diversified experience in ICT engineering, software development, business startups, and leadership. Holds a master’s degree in computer software engineering from the University of York and an MBA from Strathclyde University in the UK. Al Wahaibi was named Technology Person of the Year at the Annual AIWA Awards in 2018, which also recognized ODP the Excellence for Global Cloud-Based Services in 2019.

What are the main challenges in bringing Oman’s digital agenda forward? Now, our challenges are varied. One of the main challenges is to find good talent. The workforce has always been a challenge because we are always at the forefront. There are many certifications required to maintain and configure many of these clouds. On that side, Oman is not exactly where we want it be, and we need to push the education sector forward in order to match the speed of the technology revolution. The second challenge is that Oman needs to relax many of the unnecessary processes within the government sector. We need quicker decisions around digital transformation.

For 2023, we will bring forward some additional products and services to our clients in order to further enhance our operations. We are a customer-centric company and remain close to our customers. We have the means to serve them better, which has provided us with solid leverage around the products and services they want more for us to serve them better. There will be some new products and services on the table. AI will be our prime focus, and we need to demonstrate the capabilities of Nebula AI to different sectors and help them grow closer to their customers. We are targeting financial services, logistics, and oil and gas, for example, in order to promote Nebula AI. The second element will be mostly looking at regional markets in order to expand our footprint. We also welcome talks with international partners in order to see how we can work together and serve our markets. The third element will be mostly around how we can assist the education ecosystem uplift our talents by working together. This will indirectly boost start-ups in Oman as well. We need to do something there with the educational sector and the financial sector because many of these venture capital companies also have to work with us in this context. ✖

The first managed and cloud service provider in Oman, ODP has since grown to become among the top-10 cloud service providers in the world.

eye ON THE PRIZE

Al Madina is poised to provide world-class custom software development services and innovative product solutions across the Sultanate.

Sheila H. Jamal CEO, AL MADINA GROUP

Could you provide an overview of the main activities of Al Madina Group over the past year?

In Al Madina, we focused in the past year on balancing between modernizing our products toward digital transformation and fulfilling our obligations toward our customers. Additionally, we strategically increased our presence and partners network worldwide. We continuously strive to improve and modernize our portfolio of products and services. We are gradually moving into shorter release cycles in our products, and rearchitecting most of them into micro services, and utilizing as much as possible the different cloud services Azure and AWS. We are increasingly moving into DevOps culture. We also added more services to our portfolio of government security documents line of business.

What distinguishes Al Madina from other ICT companies in terms of services?

We always strive to build long-term partnership with our customers. We do not only sell our solutions to our customers but, rather, consider ourselves as enabler to their growth and success. We advise on best practices and identify pain points before we move into automation. It is our transparency and engagement model that give us an advantage over others.

Which areas of the economy are most in need of further digitalization and thus have the highest potential for your services?

With the blessing of His Majesty Sultan Haitham bin Tarik, all government sectors are improving and working together to provide quality services to citizens. As technology advances, there is always room for improvement. For example, developing nationwide digital identity and digital signature would allow citizens of

the Sultanate to log into any government portal or app using their digital identity. Also, with digital identity and public key infrastructure (PKI), citizens can sign digital documents.

How will the digital revolution change the market in Oman?

Digital transformation is revolutionizing every aspect in our lives. Chatbots are increasingly replacing the traditional customer service in many areas. Even with retailers, self-checkouts are widely used. Online shopping is also an example of digital transformation that is shaking up the traditional retail market. The aim of these technologies is to increase efficiencies and reduce costs, and we need to direct the labor market and young Omanis toward these high-end technology sectors.

How are you focusing on developing human resources?

In Al Madina, we always look at hiring nationals and building the technical competencies. The technology sector worldwide has gone through dramatic changes in the past few years as a result of the COVID-19 lockdown. Working remotely has become accepted. And many platforms have brought together knowledge workers with employers with the freelance/part-time model. We can all strategically build a generation of young nationals that are technology skilled and ready for remote work with international companies’ all over the world. Such initiative can increase the GDP of Oman and fill a gap in the international market.

What are your current projects and specialization within the cybersecurity sphere? In a world where almost everything is

connected, security has become integral part in our solutions. We prioritize security of our products and services. We use the Privileged Access Management (PAM) technique, which aligns with the best practices in the industry to ensure that we deliver the best cybersecurity services for our customers. Our strategy is based on the understanding that privilege misuse remains one of the top cybersecurity priorities that cripple businesses resulting in catastrophic losses. We provide our customers with the best cyber security measures to build up business expertise and guarantee the protection of intelligence. Our clients can create a central console that enables them to interconnect the various parts of their IT management systems for better correlations of quick remedies, facilitating meaningful inferences, overall network data, and privileged access data. For this reason, our PAM strategy ensures that all secret pathways to the client's mission-critical assets are unmonitored, unmanaged, or unknown. ✖

BIO

Sheila H. Jamal took over Al Madina in 2004 with the goal of creating the most innovative IT and security documents organization in Oman. As a result of her educational background in industrial engineering, she has emerged as one of the most successful businesswomen in the Sultanate of Oman. She is globally recognized in the field of documents security in addition to recognition from the Al Mara Women in Excellence Awards.

MOVE IT ONLINE

Oman’s public sector is undergoing rapid digitalization, while the private sector is doing the same in a rather different way, giving rise to a digital economy.

SHORTLY AFTER HIS ASCENSION TO THE THRONE IN 2020, His Majesty Sultan Haitham Bin Tarik began emphasizing the importance of digital transformation for Oman, in particular by asking his Council of Ministers to streamline the implementation of e-government. The goal was to create a unified national e-government portal, where all interactions between the citizens and the state could take place. Since then, and over the last two years, the Sultan has frequently followed up with the progress made in this regard.

Digital transformation has become a ubiquitous buzzword in recent years, but some may not be quite clear about its meaning and how it differs from the simple digitalization of processes. Digital transformation is largely defined as the adoption of technology in bureaucratic, economic, and industrial activities in a paradigm-shifting manner. Digital transformation in business, for example, will lead to not only to faster and simpler interactions throughout the e-commerce ecosystem, but to new forms of business interaction which were inconceivable before.

And such a paradigm shift in governance and business is exactly what Oman is striving toward. While the Sultanate’s Vision 2040 sets the stage for digitalization, connectivity, and a shift to smart solutions, Oman’s Digital Transformation Program of 2021-2025 proposes far more specific objectives. The program partly “reduces cost, saves efforts, and improves the operational efficiency,” according to the government. Other objectives include the creation of a knowledge-based private sector and an optimally efficient public sector.

True digital transformation, however, is impossible without a robust telecommunications infrastructure. Industry insiders believe

Oman’s ICT ecosystem is currently mature enough to support a digital transformation phase. “The ICT sector is in fact promising. The Ministry of Transport and Communication has published the figures for 2021, and the numbers are positive: around 94% of families have access to internet connectivity, 66% have a laptop, and 95% of families have access to smartphones,” pointed out Hussam Technology Company (HTC) CEO Mohammed Al Abduwani, who recently sat down with TBY.

Thanks to the readiness of the Sultanate’s ICT infrastructure and following Sultan Haitham bin Tarik’s directive, work on the national e-government portal gathered momentum in April 2022, by “rolling 88 e-services rendered to citizens and businesses,” according to Zawya. It is estimated that with the completion of the first phase of the e-government portal, some 70% of the government services have become fully digital, with the figure expected to grow to over 90% by 2025.

Oman’s e-government portal is now available online. Whether one wants to request for a fishing permit or lodge an anonymous report about corruption, the e-government portal is the place to go. Starting a business, applying for residency rights, getting a housing loan, or filing a lawsuit are all handled by the same e-government portal. This level of digital transformation in the government will make Oman a more agile state in responding to the demands of its citizens and thus a better place to live in.

The private sector is simultaneously undergoing digitalization. “E-commerce is starting to develop, but that is due to individuals and companies coming here. For example, the food delivery development started when Talabat came to Oman,” said Azzan Al Kindi, CEO of Rihal to TBY. Al Kindi also commented on the wave of

digital solutions in sectors such as retail, telecommunications, and even healthcare—through remote health applications. In fashion retail, but to name one sector in the country, over a quarter of all sales were made online in 2021. And the trend is rapidly growing, forcing many fashion brands to rethink their advertising practices.

Digital transformation across the private sector in Oman is happening more-or-less automatically, as launching digital solutions readily translates into higher profit for many businesses these days. However, such a transformation in the public sector requires funding. Simply put, digitalization in the public sector needs money—and lots of it—though the country will benefit from the investment in the long run. Investment is pouring directly and in-

directly into the sector. “Oman Vision 2040 digital transformation is expected to boost the Sultanate’s ICT market to OMR2.2 billion (USD5.6 billion) by 2024, and drive new levels of citizen engagement,” according to Zawya.

The parallel and synergistic transformation of the public and private sectors is bound to give rise to a digital economy in the Sultanate of Oman, the contribution of which to the GDP is likely to skyrocket from the current, negligible figure of 2% to over 25% by the end of the Sultanate’s digital transformation initiative in 2025. As we are moving to that point, we will see great reforms in the job market. Oman will increasingly require a larger talent pool fluent in skills such as coding to support its emerging digital economy. ✖

BIGGER and better

What are the company’s main activities, and which of your services are most in demand?

When we first started, we did data management work for oil and gas engineering. We took documents, data, databases, and Excel files, consolidated the data and transformed and enhanced it into a better state. We have unstructured, structured, and semi-structured data, and we do all of the grunt work. The beauty of this is that we do all this fully automated because we have solutions. We have built in-house techniques at a fraction of the cost of other companies. A customer told us the amount of work done by Rihal is 10 times faster and 10 times cheaper than anyone else. The reason is because everyone else does this work manually while we fully automate this process.

What are Rihal’s competitive advantages?

BIO

The CEO & Co-Founder of Rihal – Data Migration and Services, Azzan Al Kindi is a mechanical engineer from Sultan Qaboos University, where he was the cohort representative and the president of the Society of Mechanical Engineering. After graduation, he moved abroad to pursue a promising career in a leading oil services company. His passion for technology led him to pursue a career in the entrepreneurship field and establish Rihal with his co-founders. Additionally, Al Kindi holds a board seat in the in the steering committee of the National Employment Committee (Tashgheel) reporting to HM to study long-term solutions to the unemployment challenges.

There are many things that we do better. We compete with start-ups and larger organizations. We have a significant competitive advantage when we compete with start-ups; we come from the oil and gas sector, we are well organized and proficient. Our cost of services gives us an advantage when competing with larger organizations, providing Tier 1 services at Tier 2 costs. That is why Rihal has expanded out of Oman. We work in 10 countries worldwide: the US, the UK, Norway, the Netherlands, Egypt, Azerbaijan, Georgia, Turkey, and Indonesia. We are also targeting the GCC and plan to expand our reach there in 2022. Our main target market country is Saudi Arabia. We have already established the company there, and it will start operations soon. The improvement of diplomatic relationships between Saudi Arabia and Oman is a fantastic opportunity for us to expand in the GCC. We believe that good work brings in more work.

What are some advantages of data integration in revenue generation, and how profitable is the investment?

We try to promote the fact that data is a hidden treasure. Every organization has a wealth of data, but they cannot tap into whatever they have. The yield time is one of the most important things that we measure in Rihal, and how long it takes us to get to talk to someone and start the work

itself. Knowing this number helps us plan, hire, and expand. We used one of the leading systems for sales cycles to measure the average time it takes us from speaking to a client to getting to work. As a result, we can do better planning, resource planning, financials, investment planning, and resource planning. We have created internal tools to measure the contribution of every single employee in Rihal. We see the client’s struggles and understand exactly how we can work together to solve their challenges. We do data management, software development, AI, machine learning, and process automation, and we cater our solutions based on the client’s case requirements. It is tricky to give a price tag or calculate the actual net and gross profit because there are many variables to consider. We have created an entire system that tracks everyone’s work on an hourly basis on the project they are working on. We have a dashboard where everything is put together, and we understand the exact contribution of every department to every project so the next time we do a project, we can do it better. If an organization with 150 employees can gain value out of harnessing data, imagine what an 80,000-employee organization can get.

What are your short-term goals for the year ahead?

The main goals are to expand to Saudi Arabia and take these services, convert them into products, and sell them to our clients. We have four products lined up now, and they have received an excellent response from our clients. We want to move from a service-based company to a product-based company. We are currently working on these two things, along with the other initiatives such as hiring new amazing people and expanding our coverage. ✖

“A customer told us the amount of work done by Rihal is 10 times faster and 10 times cheaper than anyone else.”

Azzan Al Kindi CEO & CO-FOUNDER, RIHAL

Helping clients with data management, software development, AI, machine learning, and process automation, Rihal has quickly expanded to 10 countries.

era OF TRANSFORMATION

Osos has achieved success in automating processes and providing solutions for companies to become more competitive in all areas of their business, regardless of the sector.

Can you provide a brief introduction of the company’s history and its current activities?

Osos is a global company based out of Oman that started with the goal of transforming industries. 15 years ago, instead of using software created by other organizations Osos decided to create its own ERP to accommodate the gaps that we identified in the market. Upon the release and positive feedback, we realized we had created something special with our GEARS ERP software. Osos then started to develop more and more industry-specific solutions and achieved a global reach of 17 countries in four continents and counting. We have been able to reach such an expansive network of countries because of the structure of our business and our core values. At Osos, the single most important value we hold which is also the key to our success is our ability to build end-toend partnerships. We have core products that we distribute to our clients; however, where we stand out is that we have complete control over our product, from development to implementation and support we are responsible for every step. The other way in which Osos products bring unique value is that we have curated an expansive network of specialized global partners in areas such as healthcare management, cloud solutions provisions, and much more where we bring their unique expertise to our region. Because of the nature of Osos’ strategy, which is transforming industries, we have created specialized business applications for target industries that tackles their most pressing issues and optimize their operations. Our solutions target the gap in the market for each industry and then adapt and remedy that gap in the best possible manner. Our business model allows us complete control over client experience, which is unique in an industry that relies heavily on third-party services and even more unique in the Oman technology landscape

How important is it for Osos to develop human talent? In Oman, we are developing what is known as functional consultants and delivery experts. This

Abdullah Al-Kindi CEO, OSOS

type of well-rounded IT professional is a rare resource in the Omani technology industry, and at Osos we take it upon ourselves to be a breeding ground for these functional consultants so that they may continue to innovate whether it be here at Osos or the general Omani market. Osos human talent are consultants that understand all aspects of the business. If we want to serve a large HSE requirement we need people who understand the intricacies of the HSE industry, for example how it operates, what are the legal requirements, and how does this business workflow impact the financials, procurement, service delivery, and so on. We are building that capacity within our organization. We have talented Omanis right now on the way to becoming experts and learning from our seasoned experts in human resource management, procurement management, and financial management as well. These are the key areas that we are developing and adding value to in relation to the Omani market. Human talent is part of our core value proposition. If you do not have competent people, you cannot deliver excellent services. It is inevitable, it is essential, and we enjoy cultivating our employees and watching them grow with us.

What innovative technologies and solutions are you currently exploring and deploying?

Our innovation is automating places that have not been automated yet. For example, there are several ERP solutions worldwide, but how many ERP solutions can understand the real estate business or the energy sector. We are embedding that level of specialization to our technologies as well as also opening fronts to inject new technologies such as fintech, e-health services, managed IT services to name a few. We are always working towards building an additional layer to our solutions that will make us even more competitive. Osos as an organization is energetic and looking to do something different and productive. We are capitalizing on that to deliver better solutions to the market. ✖

Leading IT organization specialized in maximizing digitalization

Strategic partner to more than 400 successful organizations in more than 9 countries and counting

BIO

With over 14 years of experience within the software enterprise solutions industry, Abdullah Al-Kindi has held management positions at large international software companies.

best IN CLASS

A 100% Omani-owned company with over 30 years of experience, GBM Oman helps companies with all their digital transformation needs, including managed services and cybersecurity challenges.

Mahmoud El Kordy CEO, GBM OMAN

Could you give us an overview of the company and the major highlights of the past year?

GBM Oman is a 100% Omani-owned company with over 30 years of experience. The company consists of over 110 highly skilled professionals from 13 countries, of which 48% are Omanis. As an end-to-end digital transformation system integrator, GBM Oman offers industry-leading solutions addressing market needs, state-of-the-art smart hybrid cloud infrastructure, digital business solutions, security, and managed services. Our strategy is to be essential to our clients by providing the best in market services and solutions. GBM Oman nurtures partnerships with the world’s leading technology companies while investing in a local talented, skilled workforce with exceptional depth of experience in managing enterprise and mission-critical systems. Today, GBM Oman has over 250 customers in public and private domains and across a range of verticals. GBM Oman is in the lead position to support Oman Vision 2040 and enable the market’s digital transformation. GBM Oman is developing its expertise to accelerate an organization’s migration to the cloud, through our comprehensive hybrid cloud solutions, helping clients to leverage their data for better competitive advantage utilizing AI in tandem with a zero-trust cybersecurity model. In terms of our highlights from the past year, we have had an in depth focus on several industries. This included the banking industry, energy, utilities, government, logistics, and travel and transport. Our work in the banking and financial sector assists banks thrive in the new economy, and we have provided them with the right resources to accelerate digital transformation through experiential, collaborative, and automat-

ed banking paradigms built on a cloudbased IT foundation. GBM has supported many government entities on their digital transformation without impacting citizens’ services support. For example, one major government entity wanted to increase client satisfaction by ensuring secure system availability around the clock. Our solution included a comprehensive network and security infrastructure that delivers near perfect availability and provides the highest level of security to protect all services and users within the organization.

What competitive advantages does GBM offer within the sector?

GBM’s local knowledge and experience of three decades in Oman has been a defining factor in our efforts toward digitalization, and as such we have been able to quickly develop and implement tailored solutions for organizations across diverse industries. Over 110 local technology and industry solutions experts and top certified engineers have extended the network across many other countries through our strong vendor network. Our clients’ stamp of satisfaction is our strongest competitive advantage. They value our quality of service, advanced skillset, and global reach for top-notch technology and innovations. Much of GBM’s ongoing discussions with organizations in Oman is focused on helping them transform their operations by implementing end-to-end digital solutions, while also ensuring their systems are secure and can withstand cyber threats. Our digital business and infrastructure solutions coupled with our broadly skilled experts and effective planning and implementation, can help businesses deliver on their digital transformation vision for the future.

Security accounts for many of today’s biggest organizational challenges. What instruments does GBM offer to address this?

Increased use of technology creates a rich playground for cybercrime. In order to mitigate the rising risks that businesses face today, GBM has a framework focused on people, processes, and technology to provide a holistic approach to mitigation efforts. That starts by giving the proper consultancy to establish a zero-trust model and ends by plugging fully managed services into security operations. It effectively safeguards brand name, reputation, and assets. In addition, it offers comprehensive, end-to-end strategies that protect against external and internal threats, and may include solutions for endpoint security, applications, database, people, and regulatory compliance. GBM utilizes cutting-edge technologies, from AI and cognitive to threat hunting and deception, to protect companies from data loss and online fraud. ✖

The CEO of GBM Oman, Mahmoud El Kordy is a prominent leader with extensive 30 years’ experience providing visionary executive and sales leadership across technology industry. He joined GBM from IBM Middle East and Africa where he held several sales and leadership positions across systems, big data, and analytics. Prior to that, El Kordy was in IBM Europe for several years. He was on an international assignment in Paris, where he led the infrastructure services of IBM South Europe, followed by his success as Linux sales leader in IBM CEEMEA HQ in Vienna. El Kordy holds a master’s degree from Maastricht school of management in the Netherlands and bachelor’s degree in engineering.

BIO

FP AD HOLDER

voice OF A GENERATION

MMG is committed to delivering homegrown, trustworthy content to all Omanis.

Ahmed Essa Al Zadjali CEO, MUSCAT MEDIA GROUP (MMG)

MMG has been a leader in the media industry in Oman for many years. What do you see as the key factors that have contributed to the company's success, and how do you maintain a competitive edge in the market?

As a team, we are confident that we deliver top-quality content to our readers, listeners, and viewers. We are at the forefront of breaking news, interviews, analysis, sports, lifestyle, and event coverage. Our media platforms are a go-to choice for content consumers who are looking for information about Oman—both inside and outside the country. We have maintained this edge by acknowledging that consumers evolve faster than media. We strive to create platforms where we are accessible to consumers 24x7x365, and they stay informed about all the news that concerns them.

With the rise of social media and other digital platforms, traditional media companies are facing new challenges in terms of audience engagement and revenue generation. How is MMG adapting to these changes, and what new strategies are you exploring to reach and engage with audiences in a digital-first world?

We put a lot of consideration into our social media platforms. We created a digital distribution platform called Eshhar, which gives our advertisers access to consumers on social media platforms,

and consumers benefit, as they have access to relevant content. Drive times in Oman are relatively short, so all our shows on FM are not just on radio—they are on digital TV, where viewers can access them even if they are not driving. Advertisers appreciate these platforms.

As a media company with a large and diverse audience, MMG has the potential to influence public opinion and shape the national discourse on a range of issues. How do you approach editorial decision-making and ensure that your coverage is fair, accurate, and balanced?

It is very important for countries to have homegrown media platforms and voices. Our platforms tackle a wide variety of issues relevant to Omanis and expats. For example, our show Ma’a Shabiba on Shabiba TV and FM is a great platform for raising issues that concern young Omanis, and these issues are brought to the attention of the authorities. On this note, we would also like to say it is important for corporates and advertisers to use their media budgets wisely. When large proportions of ad spend goes to programmatic ads, they are supporting global media organizations that do not create jobs in the country and deliver foreign content that could destabilize the nation.

What are your main priorities and goals in the short term?

Our priorities are on technology and content. Technology because we know that media platforms need to keep evolving to keep up with our consumers. And content because that’s what will keep bringing consumers back to us. We have a number of exciting new content propositions in store for our audience, whether they corporate decision-makers or even small children. ✖

BIO

A US-educated business graduate and serial entrepreneur, Ahmed Essa Al Zadjali is credited with leveraging the latest technologies to drive the digital revolution in Oman’s established publishing and broadcast journalism scene. From the launch of the country’s first online news portal to development of next-generation media apps, he is a passionate supporter and contributor to Oman’s fast-growing information and technology economy.

SETTING the standard

With a Class III license from the Oman Telecommunications Regulatory Authority, Dunes is one of the first companies in Oman to achieve this feat and is geared up to meet the burgeoning requirements of satellite connectivity.

Integrative company dedicated to delivering excellence on each of its bespoke solutions & services

How has Dunes evolved since its establishment, and what are the company’s main activities?

Khuwailid Fatallah Al Hinai CHAIRMAN & EXECUTIVE DIRECTOR, DUNES MIDDLE EAST

BIO

Prior to the establishment of Dunes Middle East, Khuwailid Fatallah Al Hinai was the AGM of a major mining company in Oman and an HSE expert advisor for a dominant oil firm. He has been actively advising on the HSE and security sectors to various organizations in Oman since 1998. His keen interest in IT and digital technology led him to establish Dunes Middle East. In line with the Oman Vision 2040, his company assists many leading firms in the Sultanate in providing voice and data connection services through satellite connections, even in the remotest places.

Dunes provides VSAT communication services mainly to the banking sector and oil and gas companies and any companies that work in remote locations. In 2009, we started with fiber connections to homes. We later took the first step to acquire a quality license from the government to provide satellite communication. We received the license in 2019, and we started providing our services to clients in 2020. Currently, in satellite communications, we provide companies with full communication services to their locations where they function, mainly in remote locations where there is no connectivity at all. We provide them with full communication and connectivity to send data up and down from the HQ to the remote location, enabling them to set up offices. Since we started, we have been the only company giving the latest satellite that uses the Ka-band. Those satellites were launched in 2019. Currently, we are the only company providing this service to oil and gas companies with the latest technology. This latest technology supports us in the easy transition, moving from the current satellites we are using to the Omani-owned-satellites, which will be launched in the coming years. Oman plans to launch its own satellite and will use the same Ka-band. It will be just configuration from our side, moving into that particular satellite.

What is your perception of the current state of the ICT sector in Oman, and what challenges do you face in pushing digitalization forward?

Oman is moving in the right direction with ICT. Since COVID-19, many things have changed; everyone is competing to provide the latest technologies. The biggest challenge is the competition. In

our case, the pandemic has pushed us to become better. Looking at the market, everyone has covered everything, from ministries to ROP and car registration. Now, one can register or renew their car registration on their phones. Before, they had to wait five or six hours to renew them and get their cars back in time. Many ministries have moved online, such as the Ministry of Housing. People can acquire land through an app. All the companies in Oman and government entities are moving in the right direction. When I first started, I did not have an office. I was jumping from one company to another, working to introduce my company and educating people on what we could do for them. It was a challenge. Now, we have an office and employees. I have subcontractors to support the connections with my customers. There are challenges in Oman, though overall I am positive about the direction that country is moving.

What are the company’s main short-term goals and priorities for the year ahead?

We try to leave our mark everywhere in Oman and take on bigger challenges. We aim to grow the number of our employees and become one of Oman’s biggest telecoms companies. When people set up their businesses in remote locations that do not have connectivity, we are here to provide that connectivity wherever they are. Even if it was the most remote location, we could provide full communications and coverage to enable them to work like they are in the capital. We also want to continue to support Omanis in learning about satellite communications and the latest technologies. Even if they do not want to be our employees, we can provide them with training. They can work here for some time, gain some experience, and move on to another challenge. ✖

Mohammed Al-Abduwani CEO, HUSSAM TECHNOLOGY COMPANY (HTC)

How has HTC evolved since its inception, and what are the company’s main activities?

The company has evolved immensely. Initially, when the company started, its focus was to become a wireless ISP. The company obtained specific niche technologies that were available and conducted a POC to provide industrial areas with wireless internet access. We required a specific license from the Telecommunications Regulatory Authority (TRA) in order to provide such a service though, unfortunately, we were not able to get that license as it was not available. We then had to shift the vision of the company to instead provide such services for private companies. We started by offering services in the oil and gas concession areas. We started targeting markets that are closer to what we were doing and subsequently shifted to working with ISPs. In addition, we evolved to working on technology related to fiber-optic cables, where we do testing, maintenance of fiber networks, and the supply of specific

equipment used in fiber networks. Later, we wanted to diversify more and identified multiple markets that we were interested in. At that time, Shell had just released its solar-to-school scheme. For us, it was the perfect opportunity.

What are your main priorities and goals for the coming year?

We are focusing on ICT and as well as renewable energy. In ICT, we always work on the infrastructure part of it. For us, we want to move up and down the value chain itself. We are targeting the infrastructural part of it, though there is also the application-level office and the digitalization automation part of it. Also, in terms of renewable energy, we are mostly concentrating on solar on a mass scale. We were focusing on commercial, industrial work, but we were awarded the first and largest project by PDO to install solar panels for the homes of its employees. We have committed to working on 1,000 villas over the next two years with solar at a competitive price. In terms of the current numbers in the country, the largest consumers of power are private houses and builders and not the commercial industry sector. In the next two years, I see the landscape changing. ✖

BIO

Mohammed Al-Abduwani is the CEO of HTC and has over a decade of experience in developing and leading teams along a clear strategic vision with emphasis on adding value and competitiveness to Oman. He holds an MBA from the University of Strathclyde and a BEng in mechatronics and robotics with a minor in embedded systems and biomedical engineering from the University of Leeds.

Image: Katiekk

PILLARS of strength

With over 1,000 telecoms towers across the Sultanate, OTC is focused on providing operators with different structures and technology to ensure the delivery of imminent services such as 5G.

Majid Al Kharoosi MANAGING DIRECTOR, OMAN TOWER COMPANY (OTC)

Plays vital role in Omani telco sector

Provides passive infrastructure to wireless telecommunication service operators and government entities

Moving ahead with coming technologies like 5G, IoT, and more

BIO

Majid Al Kharoosi is Managing Director of OTC with extensive professional training along with years of local and international experience in driving communication business growth through operations management, contract management, business development initiatives and resource orientation. He holds a BSc of telecoms and a master’s of satellite and command and control.

Could you outline the company’s main activities and its major highlights of the past year?

OTC’s business is to build telecom towers and lease space to telecoms operators. The company started as a national company because of the demand for additional towers from existing operators and the establishment of a third mobile operator in 2020. There has been high demand for passive infrastructure, and the government intends to ensure the infrastructure is available for service operators in an open access mode. OTC started its operations in 2019 and reached a major milestone in 2021, with 620 sites delivered. To date, OTC has rolled out more than 860 sites, and as of the end of 2022, we have a total of 1,400 sites. OTC provides the passive infrastructure to all service operators, both public or private, as long as they have the license to operate wireless telecom equipment. OTC has signed a master lease agreement with all mobile operators that outline the entire framework between the service operators and OTC. In addition, OTC’s infrastructure can be utilized by different parties where OTC can add value, avoid tower duplications, and save cost.

How big of a role does innovation play in OTC?

OTC provides towers and infrastructure, and we work to become more innovative. Government entities such as the Ministry of Telecoms, the Telecommunication Regulatory Authority, and the Ministry of Housing have started to focus on the visual impact of towers. OTC has accordingly started to introduce new towers with a minimal visual impact that can accommodate all service operators in one location. We have also introduced a new model in Muscat called mosaic towers; however, cost considerations have to be taken into account when introducing such models. In addition, OTC is currently working on smart solutions for passive infrastructures, especially when it comes to the roll-out of 5G, IoT, and the fourth

industrial revolution. OTC’s teams are working hard to introduce different methods and technologies to enhance tower models and develop structures that suit all service operators and accommodate their new equipment. Empowering people is a key value for OTC that we will continue to prioritize in the future.

How important is it to retain local talent within the company?

Around 96% of OTC’s employees are Omani, and 75% of them are fresh graduates who are innovative and enthusiastic. We continually train them, and whenever there is an opening, OTC always strives to ensure that current employees have a fair chance to compete. We always believe that a young team has many ideas, and we have to listen to them and give them the chance to practice and work on their ideas with technical and financial support. OTC has always trusted its employees and given them the opportunity to prove themselves. We are proud to have the first Omani woman working as a site engineer on the field successfully managing the tower construction work.

What is your outlook for the short term?

The year ahead will be busy for OTC. The third operator launched commercially at the end of 2021 and is rolling out a nationwide network as quickly as possible. In parallel, the other two service operators are intensively rolling out 5G, which triggers the need for a significant number of new sites for capacity purposes. They also continue to deploy coverage sites, either as part of their obligations or for commercial purposes. Technologies are evolving rapidly, and OTC strives to cover as much as we can in terms of coverage and capacity with new sites. We look forward to complementing with others within the telecoms sector to ensure that services are available everywhere across the Sultanate. ✖

The drones will be allowed to be used by people in various activities not just for industry purposes. Moreover, many industries will start soon introducing the use of drones in their activities since it is proven that drones can provide better efficiency, let alone its value for cost and speed in comparison to the traditional means and ways.

What competitive advantages does Seeracom offer that others do not within the sector?

DRONES

Drone technologies offer various opportunities for businesses in all sectors, and these companies are venturing further into various use cases as well as training academies.

Can you provide an overview of the company its main operations and services in Oman?

AADITYA KHIMJI Seeracom was established in 2014 to design and commission the critical communications systems and Muscat & Salalah International Airport. We were able to integrate equipment from multiple international OEMs to deliver a world class communications system for various stakeholders of the airports. Today, we provide services for various telecom projects in Oman and have ventured into other future technologies; for example, drones for various use cases including surveillance and mapping. In addition, we have deployed the drone detection system at Muscat International Airport that leverages technology from our partner company Aaronia AG from Germany. Seeracom is developing a platform, Seecore, that will enable drone detection and operations from one platform for end users and many other features that will enable better situational awareness for the users. It has been great to see adoption of the technology by various government stakeholders and there are some fantastic young SMEs actively participating in the market in Oman. We have seen use cases develop in drone delivery, survey-

ing and agriculture in Oman via startups, which is great; however, like in the rest of the world, regulation remains a challenge in ensuring safe and productive operations. For Oman to create meaningful IP in this industry for global markets, we must allow local companies to experiment.

ABDULLAH AL MANDHARI Ibn Firnas was founded three years ago with belief that the time has come to unlock the potential of Omani youth. Drones have become one of the main components of today’s digital world with many advantages including cost reduction, efficiency, and new ways of doing business, which initiated the idea among the co-founders to bring this current technological revolution into the Sultanate of Oman. Our goal is to make Ibn Firnas one of the largest local companies in the drone business and to grow internationally. The UAV industry is advanced and moving rapidly to the extent not all businesses are ready to accommodate these new technologies; however, drones can still provide, and will provide, a better solution for industries such as oil, energy and agriculture. I expect that the drone market will be open for new generations as a result of expected ease in regulation.

AK At Seeracom, we are focused on developing our own software platform that can bridge the usefulness of the technologies we have invested in. Our platform is primarily designed to enable end user use cases, whether it be with a drone or a bicycle. We work with many technology providers and believe we have found some unique technology that provides us with an advantage, however, we prioritize the end users’ needs first to deliver useful solutions to improve their operations. In our part of the world, end users are extremely vendor dependent, and our aspiration is to create a local entity that can create in-country value and skill sets. For drones to be useful, it is more important that we focus on the process or use case that we want to make more efficient. Drones are just one factor in the chain of the use case. This is true for all new technologies including data science, software development and even block chain.

What are your main priorities for the company?

AAM Being the sole agent in Oman for DJI drones, one of the main short-term priorities for the company is to expand its clients’ list in Oman as well as to open new markets outside of Oman. For example, the company currently sell drones to many governmental and private entities for their operational needs. Meanwhile, the company is expanding also its scope of services and activities by introducing new streams such as maintenance and after-sales insurance. In the medium term, the company has established a training center to provide certified courses for drone pilots, as well as host conferences, with the plan for this center will become the first drones academy in Oman in the near future. We will launch our platform, Seecore, in early 2023, and our priority is to develop as many use cases as possible with our end users. The software has the potential to save our customers time and money. ✖

Aaditya Khimji MANAGING DIRECTOR, SEERACOM

Abdullah Al Mandhari CO-FOUNDER, IBN FIRNAS

Kiarash Kiazand CEO, CLOUDACROPOLIS

Could you give us an overview of the company and its major developments in the past year?

CloudAcropolis was established in 2016, and it has been growing since 2017. Our goal was to have about 80% of our revenue come from overseas in four years, and we are currently about 53-54%. Right now, because the market is not big enough for a data center to be able to provide IT services right now, we are using 10 racks out of our capacity of 125. The technology has moved forward significantly, and therefore the physical footprint is becoming smaller. Within a small space, one can get a large amount of horsepower. Right now, we work with about 700 customers, of whom about 40% are based overseas while 60% comprise smaller customers in Oman. However, as far as revenue goes, that 40% brings in more revenue. There are four other data center service providers here, and we do not refer to them as competition, because our business line is

focused on infrastructure as a service cloud. Their business line is enterprise services, and they adapt themselves to the demands of customer and build whatever the customer seeks from scratch. Our approach is different; we look overseas at how the market has been developing itself and focus on the cloud and infrastructure as a service.

Are you exploring new ways of increasing security mechanisms to prevent any sort of data leaks?

When talking about security, there is a part that is also connected to cybersecurity. Security is a never-ending initiative. We are currently undergoing a PCI DSS for credit card holding information. We have two customers in Oman as well as 20-30 overseas customers that are required to have that. It is therefore important for us to be certified as secure. Oman ranks fourth in the world in terms of protection from cyber attacks even though we see the same number of attacks as a company in India, France, or elsewhere. We have built a visual data center for every single customer; therefore, we know what goes in and what comes out. ✖

BIO

Kiarash Kiazand has been working in the IT and telecoms industries since 1995, with a major focus on IT infrastructure and data center. He has been involved in 22 data centers worldwide. Since 2016, he has focused on Cloud Acropolis to ensure a secure, reliable and highperformance experience to every and each customer.

establishing A PRESENCE

Adventz media is one of the most prominent digital media design houses in Oman, providing a complete suite of services including websites, social media marketing, media buying, mobile application development, and branding.

George P Rajan GENERAL MANAGER, ADVENTZ

How has Adventz evolved since its inception in 2009?

The company was founded in 2009. Until 2017, we merely focused on website design and development. Since the boom of social media marketing and mobile application development, we have hired professionals to handle social media marketing, media buying, and app development. The team has since grown, and we are now a fully-fledged advertising agency that not only provides websites, but also social media marketing, media buying, mobile application development, and branding. In 2022, we transitioned from providing services to providing products; E-Raffle and Go Monitor are two of our products. E-Raffle makes conducting raffle draws more efficient, simple, and seamless by digitalizing the entire process, while Go-Monitor is a viable solution for managing and monitoring website downtime errors or technical problems.

What is your view of the current state of marketing and advertising in Oman?

People are gradually but steadily realizing the significance of digital marketing. Companies used to design websites solely for the purpose of information and used ready-made templates; however, many now realize they require a solid website in order to conduct effective digital marketing. Google monitors how good a company’s website is, how responsive it is, and how optimized it is for mobile phones. As we look at the shift in digital trends, one of the most supporting marketing platforms has been Google Ads. Whether it is B2C or may it be B2B, various ads such as Search and Display, these ads have enabled our

clients to scale their business online. Search ads are highly intent-based and are best matched with customers who are already in the buying stage. Display ads have a mass reach throughout the 99% of the world with web, hence creating awareness and generating a significant number of leads online. But while paid media is important, search engine optimization is the foundation of any given business as it allows a business to organically grow and rank on Google’s search engine results, gaining great trust amongst customers and having a conversion rate of at least 2030% for a given business. Our expertise in SEO has boosted many industries search visibility online with stable rankings and retention levels.

How does the company employ innovation in its operations?

We have been doing website design and development for years; however, we saw a significant gap when it came to website monitoring; for example, a company website can be hacked or some of the features/ pages may not work, and it might not be noticed immediately. If an entire business is run online, this is a major issue because a company can lose sales even in one hour. As a result, we identified a market gap and developed Go Monitor. This provides 24/7 monitoring of a website, servers, and APIs such as payment gateways or APIs related to ERP, and sends alerts if anything goes wrong with it. Users immediately receive an email or SMS notification informing them if their website is down.

What are your strengths and competitive advantages?

Our team members have extensive market knowledge, from conceptualization to final approvals and maintaining vital client relationships. Our team believes in constant learning and is up-to-date with certifications with the latest industrial trend which is the foundation of a high-performing business and ethics. We innovate to go above and beyond the specifications. With access to critical analytical tools and techniques, as well as being a privileged Google Partner, we are able to provide our clients with highly qualified and best-inclass content, strategies, and additional optimizations.

What are your short-term aspirations, and where would you like to see the company in a few years?

In 2023, we plan to expand into the Saudi Arabia and Qatar markets. We are a company that believes in contributing to the country’s human capital development in order to boost productivity in the Omani economy. By hiring and training locals, we are focusing more on providing opportunities to the local talent in Oman. ✖

BIO

George P Rajan is a turnaround specialist and multi-cultural people manager with 17-plus years of experience in sales and marketing, business development, and operational excellence. He is currently associated with Adventz Agency, working in the capacity of General Manager, based out of Oman, having previously successfully handled roles in the UAE and India in the past.

Mudffer Al Sarmi CEO, BLURANCE

How has Blurance evolved since 2012, and what are the company's main activities?

We are a multidisciplinary independent creative consultancy and branding agency, formed in 2012 to help our clients connect with their audiences through rigorous research and creating idea-driven and thoughts-provoking brands. Mainly, we provide branding strategy, customer experience, and visual identity for companies. There are also certain complementary services such as web development, marketing strategies, and 3D visualization. Once you have a brand strategy, you are on the right path. However, all brand strategy concepts are abstract. This is where customer experience helps to bridge the knowledge gap. The customer experience clarifies the role of every team member across all brand touch points. So, this is basically about translating abstract concepts into actions. Certain companies in the creative sector work exclusively in design, while others work only as a consultant. We connect strategy with creativity, which incidentally is also our slogan. We have an inte-

grated branding system for our clients, starting with strategy and ending with visuals that brings the strategy to life.

How does innovation enhance your operational efficiency?

Accelerating innovation endeavors depends on the scale of expansion. Applying innovation in the company is different than nationwide expansion. Being in the fiercely competitive business world, we need to be more innovative than firms in many other sectors, as adapting to change is essential to surviving. Innovation is about striking a balance, as one may produce something not in demand, whereas remaining limited in thinking results in a failure to adapt to market change. We therefore closely monitor market changes. We try to adapt to those changes by steering our concentration to the basics. We focus on basic knowledge and skills that could be of greater use in the future. For example, previously in the advertising word billboards were prevalent, whereas today there has been a huge shift to digital screens. We have acquired the skills of 3D and 2D motion and are working on this with many large names utilizing such screens such as Omantel, Bank Muscat, Mubashir, and Mazoon Dairy. ✖

BIO

Mudffer Al Sarmi is an entrepreneur, investor, and author. He is currently CEO of Blurance, a branding and design studio working with a wide spectrum of clients in both the government and private sectors. Their recent clients include Sultan Qaboos Comprehensive Cancer Care and Research Centre, Oman Aviation Academy, Bank Muscat, and Omantel.

Mohammed Al Rasbi MANAGING DIRECTOR, OMAN TECHNOLOGY FUND (OTF)

What major initiatives has OTF been involved with over the past year?

Over the past year, OTF has been working on helping its start-ups grow faster. OTF has three different investment vehicles: Techween, Wadi Accelerator, and Jasoor Ventures. Techween is the early stage for those that are just starting off. Initially, we used to get startups that did not have products, though we are now looking at start-ups that are more mature and have something to offer when they approach us for an investment because there is now more competition. Wadi is at the seed stage, where startups are already in business and operational, while Jasoor looks at investing in start-ups that have been in business for a few years and are looking at expanding either within their own geographies or outside the region. These are extremely subjective terms nowadays. Pre-seed, seed, and growth have different terminologies going into different regions. There are different minimum requirements, though the main thing is that we invest in people. Most of the entrepreneurs are first timers, especially in the region. The majority of our work at OTF is to develop an ecosystem in Oman. In the past five years, we have seen exponential growth in the quality of founders.

Maadh Alhinai CEO, ONSOR TECHNOLOGIES

You are working to integrate Omani civilization and heritage with computing. To what extent has this been achieved?

We have combined our core designs in the PC business with Omani heritage to create an added value for our offering to the market. For example, we have designed a state-of-the-art laptop that we called Turs, the name of an ancient defensive tool, that offers the most secure Windows device ever. Hence, we based a modern technology and correlated it with an Omani well-known ancient tool.

What other strengths and competitive advantages do you have over other companies?

Our proposition in terms of IT solutions is quite unique. We can customize solutions across the entire chain starting from the hardware to firmware to software and the dashboard. This gives our customers the ability to achieve operational excellence by adopting solution that fully match their requirements and needs. We do not plan to compete with the major names given the sheer budgets and R&D at their disposal; however, we have the ability to fill the gap in the PC market. The next products that we launch will have additional security features.

Badar Al Salehi DIRECTOR GENERAL, OMAN NATIONAL CERT & HEAD OF ITU REGIONAL CYBER SECURITY CENTER

How are you contributing to raising awareness with SMEs and startups on developing the ICT infrastructure?

Laila Al Hadhrami SMART CITIES DEVELOPMENT MANAGER, NATIONAL ENERGY CENTER

What are some of the changes that could be implemented in Muscat in order for it to become a smart city?

We need to think about the projects that we really need because urban planning will determine tomorrow’s Muscat. We need to build and design our cities based on the smart engagement of citizens by involving them early stage of planning the similar approach the team in Ministry of Housing and Urban Planning is adopting. The most important thing for Omani citizens is feeling secure and sustainable. Smart and sustainable cities are becoming necessity for all as they are aligned with Oman Vision 2040. We have 11 governorates in Oman. As part of Vision 2040, decentralization is part of the vision to empower governors to lead their governorates and cities to be sustainable and smart.

What are the current smart city projects in Oman? National energy established Smart City Development Department as part of its future vision tuned for innovation. And meanwhile, we have signed MoUs with various partners in Oman to implement smart city solutions. The questions for Muscat are whether it will be a walkable city, a smart one, and a secure one. All of these elements have been taken into consideration.

SMEs and startups are among our main targeted customers. We have identified six strategic pillars for the Industry Development Program, the first being the skillset. We need to ensure that the skillset is available in Oman, that the education outcomes meet market needs and close the gap of cyber security skills within the government and private sectors. The second is a focus on promoting innovation. We want to ensure we localize the cybersecurity industry in Oman, enabling youth and talent to create their own products and solutions. The third is exporting services and expertise to the regional and international market. We also have a program dedicated to exporting services and expertise beyond Oman. The fourth is to create incentives for investors and the market in Oman. We want to bring foreign investment in cyber security and make it feasible for local companies to invest in the technology. The fifth is to promote the Industry Development Program locally and internationally. The last pillar involves supporting SMEs and start-ups. We want to take SMEs along with us in our regional and international projects to deliver commercial projects and services.

WE’RE FOCUSED ON THE FUTURE OF ENERGY.

OQ is a global integrated energy company with roots in Oman. OQ has operations across 17 countries, that covers the entire value chain from exploration and production of oil and gas, refineries and petrochemicals to marketing and distribution of end-user products reaching more than 80 countries worldwide. OQ Alternative Energy focuses on investments in renewables and green hydrogen in Oman.

NEW HORIZONS

man’s oil and gas industry has been the main driver of the country’s economic development since commercial production began in 1967. However, the country is emphasizing the need for the diversification of its economic foundations using the oil and gas sector as a base under its Vision 2040 program. While local oil production meets the demand for domestic energy consumption, the country is active in transitioning away from oil and gas toward reliance on solar and wind facilities in its power generation sector.

“We, along with our Omani Joint Ventures, respond to the needs of our government partners in terms of economic growth and tackling issues like unemployment. Meanwhile, we also work toward transitioning toward a net-zero carbon future. That makes the oil and gas sector cleaner and more resilient and ensures that we continue contributing to Oman’s economic stability as we start investing in the energies of the future at the same time. We are also investing in solar, wind, and renewable-based hydrogen when it comes to renewables,” said Walid Hadi, Senior VP & Country Chairman for Shell Development Oman.

At the same time, the pace of digitalization and the adoption of new technologies in energy is increasing. Investment in digital technologies by energy companies has risen sharply over the last

few years. In order to meet global energy demand, while achieving energy efficiency targets, the industry is looking at every potential technology. “In today’s competitive world, it is important that we regularly review what we are doing and how we are doing it. In the pursuit of continuous improvement, we aim to make our processes more effective and efficient. At STS Group, we often think of new technologies and actively seek client feedback on our performance whilst addressing their needs,” said Rejeesh Mani, CEO at Special Technical Services Oman, in an interview.

Another ambitious goal is for Oman to become one of the largest green hydrogen producers and exporters globally. Oman is positioned as one of the most attractive nations to produce green hydrogen competitively and at large scale, and its development will provide a strategic opportunity for Omani and international companies to participate and collaborate on driving local and global energy security, economic diversification, and much-needed climate change mitigation. Thus, one of the most significant steps undertaken by the government in this regard is the recent launch of Hydrum, an independent, fully owned subsidiary of Oman Energy Development Company SAOC, which will spearhead the ambitious green hydrogen strategy. ✖

A drilling rig pictured in the Omani desert

Image: corlaffra

solid POSITIONING

OPAL is focused on helping businesses find the best ways to reduce operating expenses while establishing common standards in the industry.

Abdulrahman Al Yahyaei CEO, OPAL

What have been some of OPAL’s recent major achievements?

OPAL started out with two main objectives. The first is to develop Omanis in the oil and gas industry, and the second is to set HSC standards for the oil and gas industry and set the HSC standard across the industry. At the outset of the pandemic, OPAL played a major role in protecting the oil and gas industry. We took a number of steps to mitigate the risk of disruption to oil and gas production and the spread of COVID-19 across the concession areas. One of the initiatives we took was repatriating over 27,000 expat employees to their home countries. The majority of them are rotators, those who work one month on, one month off, and during that period we managed to reunite more than 700 families through our repatriation flights. This had a huge impact on our industry, mitigating the risk of spreading the virus across the concession areas. We produced several guidelines in collaboration with operating companies to ensure that the virus did not spread. We built distancing capacity, produced guidelines on working from home, working from the office, back to office guidelines, commuting, and the processes people should follow. We produced all those guidelines on behalf of the industry. This also had a huge impact on our members and our industry in general, as the flow of oil and gas has never stopped.

How is OPAL contributing to the national In-Country Value (ICV) Program?

On the ICV front, as OPAL’s CEO, I am also the secretary of a steering committee of the in-country value for oil and gas initiative chaired by His Excellency the Undersecretary of the Ministry of Energy and Minerals, the members of which are the CEOs and MDs of operating companies. We have two subcommittees, one concerned with human capital development, and another to look into the contract and procurement strategies and

policies each year. Before the beginning of every year, we get together and agree on clear goals and KPIs for the operators, and how much value and money they should retain in the country for their contracts and procurements. And we meet quarterly to review the performance achieved, the challenges they have faced, and so on. We are also set to introduce the certification of in-country value. Each country will be certified for contribution to the in-country value. Each contractor will be audited for their in-country value, because if there is no measurement you cannot judge whether they have delivered or not.

How do you foresee

the short term for OPAL?

We have positioned ourselves well over the past couple of years. We were able to regain the trust of the main stakeholders, especially the government authorities, the Ministry of Energy and Minerals, Ministry of Labor, Ministry of Education, Ministry of Higher Education, and Ministry of Commerce. We are working closely with all of those important stakeholders. We have also introduced a number of new products and services for our members. One of them is the HSC passport. Instead of each company having their own training programs for people to go and work in the field, we now have a unified passport. We are working closely with the Ministry of Education to support their introduction of the vocational path in schools, at grades 11 and 12. We are also working with the Ministry of Higher Education to support the vocational diploma to be introduced at the start of the next academic year. In the short term, we are working closely with the number of stakeholders to support them in executing their plans related to Oman Vision 2040. Our members are the main source of our course revenue and success, and we will strive to support them and introduce new products and services that correct prevailing local deficiencies, which will result in sustainable operation. ✖

BIO

Abdulrahman Al-Yahyaei is the CEO of OPAL. He joins with 16 years of diverse professional experience in business marketing, planning, finance, and business development. He has held senior positions in government and across the oil and gas industry. His most recent role was director at Occidental Oil Asia, where he was responsible for marketing operations in the Arab Gulf region. He has a degree in financial accounting from Sultan Qaboos University and an MBA from the University of Strathclyde.

Heavily involved in employment generation in the local energy industry

INVESTING in the country

STS Group is a leading multidisciplinary contracting group specializing in construction, fabrication, maintenance, and manufacturing services.

What have been some of STS’ major highlights in the past year?

STS Oman commenced business activities in 1980 and currently has a human resource-base of 10,000 across the entire GCC region. Today, the group operates within the MENA region and undertakes projects in several industrial areas, with a main focus in oil and gas. Collectively, STS specializes in field development projects, enhanced oil recovery, gas treatment and compression plants, refineries, petrochemicals, tank farms, pipelines, and flowlines. We also undertake maintenance contracts including turnaround shutdowns in upstream and downstream facilities across the GCC. Our manufacturing facilities in Oman, the UAE, and Saudi Arabia, having already exported a large number of oil and gas equipment to several countries across the world. United Special Technical Services (USTS), an STS subsidiary, has a strong presence in the MENA region and is currently executing various HDPE lining contracts. Another STS subsidiary, STAREF, offers maintenance and fabrication services for aluminum smelters across the GCC region. The Group’s REI Process Pty Ltd (REI)—a leading process design and engineering company specializing in process cooling, gas compression, natural gas processing, and tank cooling solutions—was awarded a number of projects in 2021. The main highlight in 2021 was securing two major PDC and MIC contracts with Petroleum Development Oman (PDO). These are long-term portfolio management service contracts over seven years, where we perform engineering, procurement, construction, commissioning, and maintenance services of PDO’s oil and gas concession areas.

How important is promoting human capital and local talent within STS?

In STS Group, we are committed to equipping our employees with skills and competencies that will enable them to maximize their productivity to create and maintain a safe working environment. We are also committed in supporting our employees in achieving current and future career goals. To ensure the correct levels of competence in various positions of the workforce, employees at all levels have a clear and defined job-function requirement, thus creating a benchmark to define and monitor performance. Adequate and effective training is imperative to ensure that personnel are confident and capable of performing safely and competently to the required level, within all work environments. With regard to local content, STS Oman is one of Oman’s largest private-sector employers for the oil and gas sector. At the moment, we invest in about 2,700 Omani nationals working across all categories. We focus on quality recruitment, training, upskilling, and transparent career pathways for performing individuals to ensure maximum productivity and talent retention. We use a multi-pronged strategy in recruiting Omani nationals; experienced personnel will be recruited based on their qualifications and skillset and undergo appropriate induction and onboarding process. Additionally, STS Oman regularly recruits fresh Omani college and high school graduates from the local job market and by also participating in college fairs and tours organized by the Ministry of Labor. These graduates undergo comprehensive internal and external training programs before they are deployed to work autonomously at STS Oman sites. For

technicians and tradesmen, the group’s Technical Training Institute LLC provides internationally recognized trade level expertise training related to the construction and maintenance sector in Oman. Moreover, STS Oman continues to include more Omani vendors and sub-contractors as business partners where local companies are regularly engaged to maintain adequate support in the areas of HSE, quality, and project delivery to enhance their capabilities and sustainability in the business.

What innovative technologies are you currently exploring and deploying across operations? In today’s competitive world, it is important that we regularly review what we are doing and how we are doing it. In the pursuit of continuous improvement, we aim to make our processes more effective and efficient. Our core business is resource intensive; all our services need to be executed on challenging time frame in adverse conditions and hence efficiency of our resources is key to our success. We invest heavily on modern equipment and automation that improve the productivity and minimize dependency on manpower. ✖

Rejeesh Mani is the CEO of Special Technical Services LLC, where he has worked for more than 16 years in various senior positions. He has over 25 years of experience in manufacturing, construction and maintenance industries associated with upstream and downstream oil and gas facilities. Before joining STS, he has worked with international companies in the Middle East and India.

Rejeesh Mani CEO, SPECIAL TECHNICAL SERVICES (STS)

BIO

Image: Philip Lange

A petrol station pictured in Muscat

future FORWARD

By introducing the latest technological solutions from its global portfolio to traditional businesses, Oman Shell plays a major role in the Sultanate’s gradual energy transition.

What are the defining features of Shell’s operations in Oman, and what are some of the highlights of the past year?

We have been present in Oman for a long time, having entered the country in the 1930s. Oman is in fact one of the most material countries in our portfolio across the value-wide cross-section of businesses. That history has manifested itself predominantly through the joint ventures that we co-created with the government. We own 34% interest in PDO, which produces around 65% of the country’s oil production. This is a joint venture that we started with the government many decades ago that has grown into one of the most capable operating companies in oil and gas production globally. We also have a 30% interest in Oman LNG, a liquefaction plant that liquefies and sells gas on the international market. We have just below a 50% stake in Shell Oman Marketing Company, one of Oman’s most prominent companies in the sector. Under this line of business, we have close to 200 fuel stations, a business that services the aviation sector, and a heavy industry sector. This is what we have achieved with Oman to date. Today, we are writing a new chapter of that partnership, which involves creating new ventures in the energy transition and the new energies sphere. We signed a concession agreement with the government in December 2021 to bring significant production volumes into the Omani market in what is a multi-billion-dollar investment. It aims to boost the country’s ability to produce more gas. We are also significantly laying the groundwork for material investments in new energies, such that low-carbon value chains like blue hydrogen, renewable-based hydrogen, and investments in renewables. We have already launched the first industrial-scale solar plant in Oman, a 25-MW facility in Sohar free zone. We intend to replicate this solar business model through multiple forms of generation capacity over the coming years.

How is your business model evolving to adjust to renewable targets?

We are aware that oil and gas are critically important for Oman today and are likely to remain so over the coming decades. It is also likely to remain part of the energy mix in the long term. While we try to transition this country into a more sustainable energy future, we should not forget the critical role that oil and gas will continue to play over the coming two decades. Along with our Omani JVs, we respond to the needs of our government partners in terms of economic growth and tackling issues like unemployment. We also work on transitioning toward a net-zero carbon future. That makes the oil and gas sector cleaner and more resilient and ensures that we continue contributing to Oman’s economic stability as we start investing in the energies of the future at the same time. We are also investing in solar, wind, and renewable-based hydrogen when it comes to renewables. Today, we are working to set up partnerships in green hydrogen. My vision is that by 2050, 60% to 80% of the value that we generate in Oman, and for Omanis, to come from those clean energy sources.

What innovative technologies are you currently exploring and deploying to boost sustainable production across your operations?

Oman Shell seeks to introduce some of the latest technological solutions from our global portfolio to traditional businesses. An example is horizontal wells technology. These technologies were not necessarily required before in Oman, and they are now becoming the industry’s bread and butter. In addition, we undertake considerable work in technology, particularly in the safety space. Recently, we created what we call a digital twin of Oman LNG facility—Shell’s first digital plant twin globally. With all that, we have not even scratched the surface of it yet. This industry will probably have an exponential rate of change over the next 10 to 20 years, particularly in electrolysis and technology. ✖

BIO

Walid Hadi is Shell’s Country Chairman in Oman. He is an American University of Beirut graduate and a CFA charter holder. Hadi started his career in Andersen’s Oil and Gas practice in Qatar before moving on to Schlumberger, before joining Shell in 2005. He started his Shell career in the regional planning and reporting unit in Dubai, responsible for Shell’s portfolio in the Middle East, North Africa, Russia, and Eastern Europe. He was then posted to the M&A team, based in the Hague. In 2012, he joined Shell’s Middle East government relations team. He was appointed GM Commercial for Shell in Kazakhstan in 2015 and vice president finance for the Upstream Joint Venture business in 2017.

Aims to improve Oman’s position as an energy player

Oman Shell is laying the groundwork for investments in gas and new energies

Walid Hadi SENIOR VP & COUNTRY CHAIRMAN, OMAN SHELL

MAXIMIZING success

What are the main features and operations of the company in Oman?

Oman LNG is one of the largest players in the Sultanate’s gas industry, now exporting gas to over 22 countries around the world.

Oman LNG has been operating in the LNG business for 22 years. When Oman discovered significant gas reserves, the question was around how to best utilize such reserves. There were several proposals and ultimately the government made a decision that a portion of the gas reserves would be exported in the form of LNG, which was a niche market at the time, and not exactly, what it is today. Today, we celebrate such decision and the vision that Oman LNG would end up becoming such a great success story. From two destinations—one in Japan, and another in South Korea—we have delivered to global key markets to over 22 countries.

Where do you currently export?

We have exported all the way to North America, and the farthest port in Japan. We have also reached many destinations including, Europe, Asia, South Korea, India, Kuwait, Turkey, and many others. All the key markets have received cargoes from us. From a venture perspective, it is interesting because it was built through a partnership between the government and major international energy companies, some of which are our customers. This combination has a significant advantage because of synergy which has allowed us to drive common, winning models. All the levers have to be aligned to create value, because you are active across the gas value chain. Locally, we had to build a brand and a name recognized as a key contributor to the national economy.

today. As example, we launched our facility rejuvenation program in 2018. Such a project aimed at maximizing the value add adapted to new gas development in Oman and has already created significant value. We all see now the results of this forward-looking decision. We then went further to enhance our production and environmental performance. As such, the company implemented various projects, including plant debottlenecking, to boost its efficiency and increase its nameplate capacity by a further 10%. Oman LNG has invested heavily in nurturing our talents to reach their full potential through commitment and tailor-made development programs that set the course for the entire journey. Today, we are proud of our strong 92% Omanization rate and growing, as an exemplary success story of our investment in human capital.

Oman LNG’s first concession will come to an end in 2024. What are the company’s prospects after that year?

BIO

Hamed Al Naamany was appointed CEO of Oman LNG in 2021. He has over 20 years of experience in the oil and gas industry, holding different roles in technical and production management, with an international industry experience through various techno-commercial in countries in Europe and North America.

In 2016, Oman LNG returned to Oman LNG with responsibility for the LNG plant rejuvenation, power project, and debottlenecking project prior to his appointment as Oman LNG’s chief strategy and business development officer.

How were Oman LNG successful to sustain its operation after 22 years?

At Oman LNG, we pay close attention health and safety, performance improvements, and growth initiatives including the recent strategic projects that were very carefully tailored and executed. On top of all of these factors, we are extremely grateful for the workforce we have at Oman LNG for their in-depth skills and knowledge that have driven the success we see

On January 1, 2025, and beyond, Oman LNG will still be there. We are anchored to be a strong partner, both for the government and our shareholders, as a recognized value generator of the national energy grid. We are active in the market and also reshaping the company to best address Oman’s needs as a large gas producer and exporter but also a shift in global energy trade, especially natural gas. We have highly skilled technical and commercial teams with over 20 years of experience to bring the best value to Oman and our shareholders. We are adaptive to meet the global demand for LNG. Our program, Fit for Future, is the blueprint for what the company will become. We are blessed to have a number of promising factors that ensures support for our success. This includes its flawless reputation as a trusted source and supplier of LNG, our geographical position and our geopolitical values that are recognized everywhere we go and the ever-growing strategic relationship with our shareholders. ✖

Hamed Al Naamany CEO, OMAN LNG

An oil rig in the Omani desert

Image: Zotyesz

YOUR ONE-STOP SHOP CENTRALIZED UTILITIES COMPANY

Marafiq, Centralized Utilities Company LLC, is a joint venture utilities company with shareholders from OQ, Oman's leading energy company, and Gulf Energy Development (GED), a leading power and water utilities company based in Thailand.

Marafiq develops various utility facilities that are key for the development of the Special Economic Zone of Duqm (SEZ-D) and Oman's plan to transform Duqm into a global trading hub. Marafiq offers industries a reliable supply, which creates synergies and allows them to focus more on their core businesses.

growing IN STRENGTH

Marafiq is a one-stop integrated utility services provider serving the industrial, commercial, and residential zones in the Special Economic Zone at Duqm.

Abdullah Al Hashimi MANAGING DIRECTOR, MARAFIQ

What have been some major highlights for the company over the past year?

Marafiq was planned to become Oman’s number-one utility company based on the development of industrial zones and the relevant regulatory framework. At the early stage of concept development, we realized that all the major industrial hubs in Europe and Asia were moving toward centralized utility companies given the many benefits, such as economies of scale, synergies, and optimization of costs. The core activities of Marafiq are providing utilities and moving many capital investments from other industries and centralizing them into the utility company. The establishment of Marafiq is in line with the international trend of utilities outsourcing and centralization. Marafiq has achieved many milestones over the past 18 months, including the construction and commissioning of the 326-MW, 1,250cbm/hr Duqm Integrated Power and Water Plant (DIPWP) and providing power and water to our major customer, OQ8 (Duqm Refinery). Marafiq has also commissioned another power plant—a mobile gas turbine facility—and we have since become the main water producer and power generator in Duqm. Marafiq has evolved from being a project-focused company to a business-focused operating company, and we have structured the company accordingly.

Marafiq’s goal is to become the ultimate leading integrated utility developer in Oman. What makes it a unique player in the market?

We have invested in some of the major infrastructure development to advantageously position our company in the market. There are very attractive opportunities for re-investment, particularly in the potable water generation

infrastructure that would enable us to become the number-one provider in the market in Duqm, and this would be reflected in the due course of services. The other advantage is that Marafiq is a joint venture company. The two partners are in agreement to position the company accordingly, being large and reputable shareholders OQ and Gulf Energy Development. This gives the company a solid position in terms of accountability, operational capability, and reputation. We are exploring other ways to reduce the utilization of natural gas and complementing it with new renewable resources. We are also looking into the best technology available to manage waste and mix industrial and domestic waste. Our objective and goal is to reach zero CO2 discharge.

How big is your agenda to become more environmentally friendly?

This is not an option now—it is a commitment we are working toward. Our main customer is OQ8 (Duqm Refinery). We need to balance the renewable and conventional power generation to ensure that the mix provides the most sustainable, available, and secure source of utilities to the refinery and other customers. In our PPA with Tanweer, we used to run a diesel power plant that caused a negative environmental impact. We switched to gas turbines and significantly reduced the cost of electricity generation. From an environmental perspective, we reduced our carbon dioxide emissions by up to 90,000 tons per year—equivalent to taking up to 20,000 cars off the roads. We are also working with developers of green ammonia hydrogen projects to provide sustainable and environmentally friendly solutions.

How important is it for Marafiq to promote human capital and local talent?

Currently, we have established a talent management framework that fully addresses all the competency requirements for jobs. The focus is on nationals to ensure their skills match the job requirements based on a clear skills development plan. We have also launched 25 HR initiatives for our staff. We plan to improve the local working environment and will launch a staff satisfaction survey. We empower employees to have a voice and provide feedback on what we are doing and have also developed a corporate communication plan to engage with external stakeholders and enhance internal communication with our staff. The goal is for them to be aware of all the strategies and initiatives taking place within the company and be the ambassadors of Marafiq going forward. ✖

BIO

Abdullah Al Hashimi is the Managing Director of Marafiq, Chairman of Oman Sustainable Water Solutions, and a board member of Majis Industrial Services Company. Prior to this, he was a projects general manager at Oman Wastewater Company (Haya Water), where he developed and managed the project department from its early inception to its day-to-day operations. Earlier, Al Hashimi worked with Petroleum Development Oman (PDO) and the Royal Oman Police in various positions. He was also chairman of Majan Electricity Company. Al Hashimi is a civil engineer holding a master’s degree in construction management. He has extensive experience in the development, implementation, and management of new projects within the public sector.

SUPPORTING THE NATION’S SUSTAINABLE ECONOMIC GROWTH

ABRAJ ENERGY SERVICES SAOG (under transformation, “Abraj”), a wholly owned subsidiary of Oman’s integrated energy company OQ, was established in 2006 and has made significant strides in positioning itself as an important player in the oil and gas service industry. Showcasing robust growth, Abraj has become one of Oman’s leading onshore drilling companies with one of the GCC’s youngest and most advanced drilling fleets, specializing in drilling and oilfield services and well-engineering solutions.

The company has successfully diversified its service offerings in innovative drilling and well services operations and integrated project management services. Moreover, it benefits from long-term contracts with leading national and international exploration and production companies.

Abraj operates a fleet of 25 state-of-the-art light to heavy drilling rigs, delivering multiple well types and operating at different well envelopes, including high-pressure and high-temperature wells.

HSE

The company’s units adhere to HSE benchmarks and top service quality standards. Aligned with the best industrial operational practices, Abraj’s systems, equipment, and engineering operations have continuously operated efficiently by using proactive maintenance schedules that utilise predictive failure models. This has been influential in seeing significant improvements in total breakdown hours.

Abraj believes that it has a significant role to play in enabling people to harness secure, reliable, and affordable energy, not only for the Sultanate overall but also for its people at large. In line with Oman’s commitment to achieving net-zero emissions by 2050, Abraj is working on calculating its GHG emissions and the risks and opportunities presented by a balanced transition to renewable and sustainable energies.

Abraj believes implementing these practices delivers positive business outcomes alongside significant environmental benefits. It has already taken steps to reduce diesel consumption through its award-winning Abraj Continuous Improvement program and reduced the diesel consumption from eight rigs by 1.8 million litres in the period from June 2020 to June 2021, on a like-for-like basis, which is equivalent to 5,000 tonnes of CO2. The company prides itself on the safety culture it has created, further emphasised by its safety performance and its overall HSE vision for an incident-free work environment. Abraj’s HSE management system has received an ISO 45001 (Occupational Health & Safety Management System) certifica-

tion and is audited regularly by third parties.

Abraj’s social initiatives are also designed to enhance the working environment, advance career prospects for its employees, maximize its impact on local communities, increase the number of Omani nationals employed by the company, and deliver in-country value (ICV).

TRAINING AND DEVELOPMENT

As a proud Omani company, Abraj employs over 2,500 people with an Omanization rate of 93% and an impassioned commitment to creating ICV throughout its operations.

Abraj has also made significant contributions to the Omani economy through its ICV Program, developed in accordance with the Sultanate’s ICV Blueprint Strategy and has made significant progress in supporting SMEs in line with Riyada requirements. The company continuously reinforces its commitment to achieving the objectives of Oman’s sustainable development through upskilling local capabilities and increasing local sourcing of goods and services.

The concept of “Made in Oman” takes priority throughout all procurement processes. The company has also supported local manufacturers and has prioritized purchases from small and medium enterprises and local communities.

PURSUIT OF EXCELLENCE

Ayad Al Balushi, Chairman of Abraj, states, “With a remarkable growth trajectory, we move ahead with vigour towards a promising future that is our foundation for continued success. We have established a comprehensive corporate culture, management techniques, safety standards and a proactive concern for the environment. These corporate attributes leave us well-placed to tackle the complex challenges businesses in our sector face today. Teamwork, integrity, and the pursuit of excellence continue to be the driving forces behind the growth and success of Abraj. Our management, engineers, plants, HSE, and support staff work harmoniously to support and serve our clients and customers.”

Abraj believes that continuous improvement is fundamental to the organization’s growth. By cultivating a rich history and earning a reputation as an impactful and responsible business, the company is committed to helping its people and its outputs continuously improve. These efforts are complemented by Abraj’s ongoing efforts to enrich lives, delivering on its commitments to the community and contributing to sustainable economic development. ✖

strong POSITION

Since it was founded in 2006, Abraj Energy Services has rapidly grown to deliver high-quality services in a safe and efficient manner and become a leader in drilling in Oman.

Saif Said Al Hamhami CEO, ABRAJ ENERGY SERVICES SAOC

What have been some major highlights in the past year for Abraj Energy Services?

For over a decade, Abraj has consistently reported a strong financial performance across economic cycles. From 2019 to 2021, Abraj has delivered consistent growth across all key metrics—11.4% revenue CAGR, 17.9% gross profit CAGR (excluding depreciation), and 21.5% adjusted EBITDA CAGR in the same period. Abraj delivered a robust revenue of USD323 million in 2021, supported by an increased number of drilling rigs. In the mid-term outlook, with an order backlog of over USD1.8 billion as of July 2022, Abraj’s outlook is bolstered by its diverse and stable customer base. Abraj is contributing to the development of ongoing oil and gas projects across Oman by providing drilling and well services in fields operated by BP, PDO, OQ, and Oxy Oman. Abraj has continued to invest and focus on innovation and R&D development, which have driven the company’s operational effectiveness, productivity efficiency, and sustainability efforts. This includes introducing technologically advanced drilling rigs and investments in cementing services and well integrity technologies. In addition to operational enhancements, Abraj also revealed its new brand identity in September 2022, building on historical successes while looking ahead to an ambitious future.

What competitive advantage does Abraj bring to the market?

Abraj has invested in state-of-the-art equipment and now has one of the youngest drilling fleets in the region. The drilling rig fleet operated at a 97% utilization rate in the nine months that ended September 30, 2022. The company offers a diverse service offering, including drilling, workover, fracturing, cementing, and coiled tubing,

that provides for clear synergies across business segments. Abraj is also a regional pioneer in development of unconventional deep tight oil and gas in Oman. The company’s modern and diversified fleet of 25 drilling rigs represents a leading market share of 29% of all contracted operating drilling rigs in Oman, and it drilled an average of 252 wells per year from 2019-2021. The fleet’s diverse horsepower capabilities strongly position the company favorably against fleets offered by competitors outside of Oman, in particular in KSA and Kuwait. Furthermore, Abraj also has the advantage of an established track record with leading national and international operators in Oman, with extensive pre-qualification credentials. This is an advantage given the high switching costs associated with changing service providers.

What steps is the company taking to integrate environmental excellence into its business strategy?

Abraj is currently developing an ESG framework in line with His Majesty Sultan Haitham bin Tarik’s directive to reach carbon neutrality by 2050. This includes building a sustainability roadmap and strategy as well as a greenhouse gas calculation and monitoring system. Innovation and research lie at the core of Abraj’s strategy, and we are constantly working to make our operations and fuel consumption more efficient.

How important is promoting human capital development and local talent within the company?

Abraj’s employees include 25 nationalities, with Omanis making up over 90% of the workforce, in line with the country’s Omanization targets. We are committed to fostering an inclusive culture within the company and promoting an environment

of training and continuing professional development for our work force. A comprehensive competency system (Kafa’a) is currently being rolled out to support employee assessment, development, and career progression.

In which other ways do you improve ICV?

In line with the Sultanate’s in-country value program, Abraj has contributed over USD50 million of SME spend and USD312 million on ICV from 2020 to October 2022 with an average ICV index of 63.3% over the same period. On top of this, Abraj prioritizes sourcing of Made in Oman goods and services in the procurement processes, supporting local manufacturers in developing and improving their production. Abraj has developed strong corporate governance and social frameworks where HSE standards are aligned with global benchmarks and workplace safety is a top priority that helps retain clients and keeps international oil and gas companies operating in Oman. ✖

BIO

Saif Said Al Hamhami is the CEO of Abraj Energy Services, responsible for implementing the company’s robust growth strategy and reinforcing its position as a leading oilfield and gas services provider. He has over two decades of experience in the energy sector, covering end-to-end processes in production, drilling, contracts, procurement, technology, and innovation. Prior to joining Abraj, Al Hamhami held senior positions in Petroleum Development Oman (PDO). He holds a bachelor of science in chemical engineering from the University of Nottingham and a master of science in petroleum engineering from Heriot-Watt University.

Ali Al Lawati REGIONAL MANAGING DIRECTOR, (OMAN, PAKISTAN & YEMEN) SLB

In October 2022, Schlumberger became SLB, a global technology company driving energy innovation for a balanced planet. Why this new brand, and why now?

ESTEEMED history

SLB is keen to establish itself as a global technology company driving innovation for the future with low-carbon or carbonneutral energy technologies.

BIO

Ali Al Lawati leads the largest international oilfield service company in the region with over eight years of international experience. He was appointed Regional Managing Director of Schlumberger Oman, Pakistan, & Yemen in 2020. He was previously managing director of Schlumberger Oman, regional transformation director of Schlumberger Middle East, HR Manager of Schlumberger Oman, operations manager of Schlumberger Saudi, and operations manager of Schlumberger Oman. He holds a bachelor’s degree in petroleum engineering and natural gas from Sultan Qaboos University.

SLB has a nearly 100-year heritage in pioneering technology and scientific innovation. We have been focusing for some time now on leveraging that heritage, our diversity, and our culture of excellence to play a leading role in decarbonizing the industry. We needed our brand to better reflect who we are today—a global technology company, driving energy innovation for a balanced planet. The launch of our new brand comes at a time when the world is facing an energy trilemma, which is about balancing the interplay between energy affordability, energy security, and climate change. SLB is uniquely positioned to address each of these challenges, given our history of technology innovation and industrialization expertise in the energy services industry. Moving forward, we will use this expertise to continue driving decarbonization across oil and gas while expanding our capabilities to support the decarbonization journeys of other industries. This will help bring balance to the challenges of the energy trilemma in the near term, while forging the road ahead for the energy transition. We will continue serving our customers in the region just as we have for the past 85 years by focusing on service quality and exceeding our customers’ expectations and by offering more sustainable solutions to a broader range of customers in our industry, but also in other industries that need to decarbonize. For our customers in oil and gas, more sustainable development solutions will come from digitally enabled technologies and our growing portfolio of transition technologies that are focused on reducing emissions from oil and gas operations with a quantifiable emissions reduction benefit. In 2020, we launched our SLB New Energy portfolio, where we are exploring new businesses in low-carbon or carbon-neutral energy technologies. We are building partnerships and applying our experience in technology industrialization to help other industries reduce their emissions, and to expand into areas in energy enduse and storage, where our technology expertise holds great opportunity.

What innovative technologies are you currently exploring and deploying across your operations?

We see SLB as a global technology company driving energy innovation for a balanced planet. Digital is a main driver supporting the transformation of the energy sector in oil and gas and new energy, innovating to improve performance and achieve greater efficiencies, decarbonize the industry, and scaling new energy systems to accelerate clean energy. SLB has an extensive digital portfolio of solutions and products including cloud based, hybrid, Edge, IoT and AI. The company also developed the DELFI cognitive E&P environment, a collaborative technology that unites the E&P life cycle in the cloud. It’s open, secure, scalable, and fully managed, seamlessly connecting people, data and leading to solutions across exploration, development, drilling, production, and midstream, new energy. We have what we call Innovation Factori centers that utilize the latest digital solutions, AI, a data science platform, and a data scientist working with domain experts to develop custom digital solutions that meet challenges, improve efficiencies, automate workflows, and so forth.

What role does SLB play in Oman’s green energy transition?

SLB is uniquely positioned to derive innovation to achieve the global transition toward a sustainable energy mix and decarbonization for a balanced planet. Our core business is where we can make the greatest and most immediate impact by continuing to innovate in oil and gas, setting new performance benchmarks, and reducing the carbon intensity of operations. At the same time, we are working to scale technology solutions on energy transition and decarbonization through our newly established SLB New Energy (SNE). The SNE focus areas include geothermal for power generation, hydrogen, geo-energy for heating and cooling, energy storage and carbon capture and sequestration (CCS). We announced a collaboration with Oman’s Ministry of Energy and Minerals and the Oman Investment Authority in building a national strategy to develop the potential of Oman’s geothermal resources. ✖

A GREEN FUTURE WITH SOLAR AND WIND

Aiming to source 30% of its electricity from clean energy by 2030, Oman is developing major solar and wind projects such as Ibri II Solar PV and Manah.

THE WORLD IS TRANSITIONING to a green economy based on renewable energy generation, a shift that is also taking place in Oman with the goal of 30% of its electricity coming from clean energy by 2030, according to its National Energy Strategy. Before reaching that percentage, the country wants 16% of its energy consumption to come from renewable energy by 2025, an increase it expects to achieve with independent power projects (IPPs). And plans to expand renewable energy generation are proceeding apace, with the long-term goal of 40% clean generation by 2040.

One such IPP is the Ibri II Solar PV project. With a solar generating capacity of 500MW, a consortium led by Saudi energy company ACWA Power was awarded a build-and-operate project to supply power for 15 years to Oman Power and Water Procurement (OPWP), the country’s government-owned power utility. The project, in which ACWA Power made a USD417-million investment, began operations in 2022 under a power purchase agreement to supply electricity to 50,000 households.

“We have already launched the first industrial-scale solar plant in Oman, a 25-MW facility in Sohar Freezone. We intend to replicate this solar business model through multiple forms of generation capacity over the coming years,” said Walid Hadi, Senior VP and Country Chairman at Oman Shell during an interview with The Business Year. With 88,000 solar modules on a 50ha site, the project is Shell’s first commercial-scale solar PV project in the Middle East to supply power to industrial companies located in the free zone.

The government-owned utility OPWP is looking to connect new solar and renewable projects with a capacity of 2.66GW by 2027. According to a study published by Sultan Qaboos University in 2022, approximately 4.4% of Oman’s territory is suitable for wind projects, while 3.2% is suitable for wind projects. Through examination of significant physiographic, environmental, and socioeconomic restrictions, the validity of the suggested sites was established. Population density, distance to water bodies, urbanization, and transportation networks are a few of them. To reach their conclusions, the researchers analyzed the frequency, intensity and duration of wind speed or solar radiation.

The coasts of Al-Jazir and Duqm in the southeast of the country offer the greatest potential to build wind projects, while Sohar and Thumrayt were identified as the best locations to establish solar projects. On the other hand, low tidal range on the country’s coasts mean the Sultanate is not an attractive location for tidal power generation, according to the Sultan Qaboos University study.

One of the renewable projects that best exemplifies Oman’s transition is the Dhofar wind farm, operational since November 2019 and with a generating capacity of 50MW. The project, which was the country’s first wind farm and developed with an investment of USD100 million, reduces the emissions of 433 tons of carbon dioxide per year thanks to its 13 turbines over an area of 19sqkm.

Meanwhile, Manah is one of the most interesting solar projects

under development, planned to enter commercial operation by the end of 2024 with a production capacity of 1,000MW for OPWP’s customers. This project will reduce emissions of greenhouse gases in the country by around 680,000 tonnes every year, will be realized thanks to an estimated investment of OMR300 million (USD776.7 million).

Another example is the government-owned energy investment company OQ, which wants to replace 40% of its 3GW power consumption with renewable energy projects. These plans, which would allow the company to free up gas volumes to spend more productively, are expected to be achieved with solar and wind plants. OQ, which comprises several entities along the entire oil and gas production chain, is also interested in developing green hydrogen, blue hydrogen, green ammonia, and blue ammonia projects.

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Solar and wind projects are not the only clean energy strategies of interest to companies in Oman. “We are also significantly laying the groundwork for material investments in new energies, such that low carbon value chains like blue hydrogen, renewable-based hydrogen, and investments in renewables,” said Hadi, Oman Shell’s executive. According to his forecasts, between 60% and 80% of the energy that Shell supplies in Oman will come from solar, wind and hydrogen from renewable sources.

This strategy of using different green energy sources also helps companies to advance their net zero greenhouse gas emissions programs. “We are currently in discussions with an exciting Omani startup on using a bio-diesel to reduce carbon emissions from our operations,” Khalid Al Jahwari, Oman country manager at Petrofac, which reduced its absolute emissions by 24% in 2021 and is committed to achieving zero Scope 1 and 2 emissions by 2030. ✖

CRITICAL areas

Aflah Al Hadhrami CEO, ALSHAWAMIKH OIL SERVICES SAOC

Could you give us an overview of the company and some of its major highlights in the past year?

Alshawamikh is a leading super local community company formed by Royal Directive and incubated by PDO with a closed shareholding structure of shareholders from the concession areas of Bahla and Adam. We offer wellhead maintenance services, pipeline maintenance services, drill water services, renewable/sustainable energy, logistics and operations support, hoists/workover services, soon to be deployed drilling services, water treatment, generators and valves maintenance, well intervention, and completion services. In June 2020, the company embarked on an internal transformation initiative called the Journey of Excellence, which consists of 11 elements: board of directors and shareholders relations, client-focused growth and diversification, CSR and ICV corporate strategies, efficiency upgrade and cost minimization, embedded HSE culture, modernization and digitalization, operational integrity and excellence, organizational change dimensions, people and culture team empowerment, compliance and controls, and workplace improvements. We also identified critical areas of internal development requiring significant investments in time, energy, and resources and hired competent leaders to lead the change and build momentum for rapid transformation as can be witnessed in the organization.

What competitive advantage does Alshawamikh bring into the market that other competitors do not?

in-class compensation model to attract the finest talents. Another advantage is our healthy cash flow due to sound financial management. This allows us to make business decisions quickly. Alshawamikh is also quick to react to new opportunities and potential business ideas, as we leverage on strategic alliances and partnerships with reputable organizations to enable this quick turnaround, as well as support local ICV value-add and knowledge transfer. This foresight and ability to be limber saw the creation of a new business unit in the energy sector to diversify into renewables and sustainable energy. We have developed our own internal Shamikh program to train the next generation of leaders. Such internally driven and curated programs are normally done by larger-scale, multinational organizations. We are heavily involved in Lean and CI initiatives and have directly linked most of them to internal efficiency and optimization upgrades. We have significantly improved our internal processes and systems, and continue to conduct internal audits and be audited by external parties for assurance. Results of these assurance reviews indicate our performance to be within the above average range, even in comparison to some multinationals.

What steps are the company taking to integrate environmental excellence into its business strategy?

BIO

Aflah Al Hadhrami is the CEO of AlShawamikh Oil Services SAOC, with over two decades experience working in the oil and gas sector. Commencing his career at PDO, Aflah has held various senior leadership roles in various companies in the oil and gas industry including Oman Refinery, Schlumberger, BP, and Occidental, to name a few. He holds a PhD from the University of Liverpool (UK) in business management and sits on various committees and boards. He is currently Vice Chairman of OPAL, Chairman of Oman Logistics, and a board member of Oman Airports.

We have undergone an impressive internal transformation and brand building. From a company with only 500-plus employees, we are now over 1,000 strong. There were only six women in 2020, and we now proudly employ 24, with the number growing every day. Diversity forms the essence of our team’s strength. We championed and brought forth many leading ideas for innovation to the industry and have invested in creating a diverse mix in our leadership team. Our aim is to Omanize in a staggered and smart way to ensure business sustainability. We want to continue to invest in our teams and boost their knowledge and skills. We have clear career path frameworks and a best-

Alshawamikh plans use to biodiesel to reduce carbon emissions and improve the life of its assets and equipment. We are an important shareholder in the Rima water treatment plant project in PDO that mainly focuses on innovative sustainability and green practices. We are also proud to power one of the only biofuel factories that processes waste cooking oil and transforms it into green less carbonized diesel. Alshawamikh had considered this already in its plan two and a half years ago, whereby we introduced an energy business unit in the company, headed by an expert with 13 years of experience in this field. This department works on developing Alshawamikh’s business in the sustainable energy sector including solar, wind, biofuel, and hybrid systems. Our energy team also covers new trends in energy efficiency and management which the government is promoting. ✖

Working on more sustainability and ICV initiatives, Alshawamikh Oil Services SAOC is more focused than ever on diversifying its operations in light of the energy transition.

NEW TECHNOLOGIES

The numerous technological changes sweeping across the energy industry all offer great opportunities for the oil and gas service industry to leverage.

Fouad Eid VICE PRESIDENT FOR EMEA,

IN JUNE 2022, we celebrated the two-year anniversary of the merger between Apergy and Ecolab’s oil and gas chemical business to create ChampionX. Since day one, we have been working together as one company to improve our product and services offering to our clients in Oman and throughout the region. This includes specific technologies that combine our digital offering with our chemicals in order provide our clients with cost-efficient solutions that lower the total cost of ownership in their wells. Our footprint in Oman continues to grow. We continue to grow our product and technology portfolio in Oman and the region as demand for oil and gas grows and as production from existing and new reservoirs presents challenges. We bring multiple benefits to the Oman petroleum industry. With the industry’s only full complement of artificial lift technologies, production reservoir chemicals, and emissions monitoring, ChampionX is uniquely positioned to be a trusted partner.

Murtaza Jariwala CEO & MANAGING DIRECTOR, VANGUARD ENGINEERING & OILFIELD SERVICES COMPANY

PRIMARILY, Vanguard’s brand statement is to assist E&P companies, or oil and gas companies, to extract, treat, and transport crude oil and gas by providing innovative, cost-effective solutions. We have three manufacturing facilities where we create value addition. And this is an ongoing process, where we continue to add more and more products into this area. Over the years, we have established a market for our products, we identified the technology partner, and we ensure we have sold enough of that product in the country. We also do it step by step. The first phase is just the basic assembly, and the second has real value addition, in terms of more scope of manufacturing. We add services to that component. Vanguard has always been known to bring in new and innovative technologies. Many times, we get a call from a client, asking us to find a solution to their problems without it costing too much. We work with them to identify solutions.

Salah Al-Harthy DIRECTOR BUSINESS DEVELOPMENT & WELL SERVICES DIVISION, ABRAJ ENERGY SERVICES, OMAN

ABRAJ ENERGY started in 2006 and the first operation followed in 2007. Our goal and vision at that time was to be the market leader in the drilling business and the rest of well services engineering. Another key goal since the beginning was to cater to local employment. Our company has grown rapidly over the last 15 years, and we are the leading drilling contractor in Oman today. We have almost a 30% market share in drilling and work over. We managed to start our well services component for our business in well engineering. We are also active in the cementing and fracking business, cold tubing and so on. We take great pride in having started all these businesses by ourselves without any kind of partnership or joint ventures. We were the first local company in the MENA region to start in the fracturing business, paving the way for others back in 2013. Today, we are the second ranked player in the fracking business in the Omani market.

Sheikh Musallam Al Maashani CEO, AL BARAKA OILFIELD SERVICES S.A.O.C

AL BARAKA OILFIELD SERVICES

SAOC is a super local community contractor (SLCC). It was registered in 2011 and we have now completed more than a decade of operations. The company has projects—completed and ongoing—across two divisions, hoist operations and off-plot delivery contract (ODC) services operating in the PDO concession. It operates multiple workover rigs in south Oman extending from Nimr to Bahja area. Al Baraka runs the pipeline/flowline construction business and EPC projects in Bahja and Rima. Al Baraka has several firsts to its credit; for example, it was the first SLCC to obtain the OPAL Certification and ISO 9001:2015/ISO 29000 certifications. We are a medium-sized enterprise, which helps us to remain nimble, and we operate with a great degree of flexibility. Our liquidity and cashflows are healthy, and revenues are steadily increasing year on year.

CHAMPIONX

MAKING A difference

Maktoom Trading & Contracting Company has today become an artificial lift total solutions company with products that address the challenges faced by operators.

Sohail Akhtar Mikrani DEPUTY GENERAL MANAGER, MAKTOOM TRADING & CONTRACTING COMPANY LLC

How has the company evolved since its establishment in 2006, and what have been some of its major achievements over the past year?

Maktoom Co started as an artificial lift service (ALS) company and has today become an artificial lift total solutions company. Apart from services we have added some new technologies in our portfolios. We have added Rodless PCP, which is driven by a PMM, some innovative intervention tools, long stroke pumping unit driven by PMM and some more technologies are under trial with different blocks. Furthermore, we are in the process of assembling flush-by units in Oman. It will be the first assembly of its kind in the region, and we are targeting more flushby and heavy flushby to assemble in Oman to fulfill the region’s requirements. We have had a solid journey thus far since our establishment in 2006, and today we are recognized as an international company. Our Bahrain branch is doing well, and we are expanding in Tatweer field. In addition, we have added manufacturing of all types of connections as per API 5CT and 7-1 requirements for casing, tubing, and drill collars. We started with artificial lift and started to expand in intervention too.

What competitive advantage does Maktoom bring to the market?

versed in artificial lift problems like gas, solids, pressure, high temperature, high mechanical loads, high fluid viscosity, or high water cut, and our R&D is accordingly targeted. We are looking forward to great success along with our partners.

What steps has Maktoom taken toward integrating environmental excellence into its agenda?

BIO

Sohail Akhtar Mikrani holds a postgraduation in AIFL from University of Texas at Austin and a bachelor’s degree in mechanical engineering from HMSIT, VTU-India. He is an AMU alumnus. Mikrani has over 14 years’ experience in oil and gas in artificial lift systems.

We are executing trials on new technologies. The success of these technologies will be a game changer and help to save energy, improve run life, optimize production, reduce costs, and protect the environment. Our intention is to reduce the OPEX of operators via our new technologies. We are investing in R&D with our partners internationally. The level of R&D in oil and gas must be standard enough to capture more hydrocarbons per well. Some 5% of the world’s oil and gas wells have enough reservoir pressure to flow naturally, and the remaining 95% rely on artificial lift technologies. To get most return from the well, we must strike an optimal balance between production cost and production performance, mostly by investing in R&D. Maktoom is well

Our major agenda is to protect the earth’s precious natural resources and consume less energy or use energy sources that cause less pollution, among many solution PMM is the best solution. I have stressed use of PMM in many platforms. By replacing induction motors with PMM, 40% of the electricity consumption can be saved. Many companies are also making progress with PMM, and we are doing the same along with our innovative partners. We are integrating PMM with Gyro technologies and this is under R&D stage. As far as sustainable energy concerns, Oman is blessed with heavy wind and sunlight. The Ibri solar plant which produces 500MW, the biggest in the GCC is an example of government focus toward the sustainable energy. There will also be windmills in Duqm and Dhofar that will generate electricity as those regions are blessed with heavy winds. If we can start generating electricity by wind and solar, our hydrocarbons dependency will fall, and it will reduce pollution.

Where would you like to see Maktoom in the short and long term?

Our short-term goal is to retain our contracts and focus towards the success of our new technologies which are under trial. We want to execute awarded contracts, including the Marmul ISP project. In the long term, we want to utilize innovative products to other oil blocks in the region and beyond. Our plan to expand ourselves in drilling and intervention. We have plan to add some more product to overcome multitude of challenges that are common to most operators regardless of size, location, or maturity of operation. ✖

new OPPORTUNITIES

An LPG company focused on cooking gas, industrial, and commercial sectors, MGC has grown to now export to the UAE and Africa as well.

Could you provide an overview of the company and some of its major highlights in the past year?

MGC is a SAOG Omani company, with the government owning approximately 54%. Its main products were industrial gases and LPG. In 2017, MGC sold 70% of its share of industrial gases to an American company called Air Products and formed a partnership in industrial gases. Later, MGC decided to sell the remaining 30% of the shares after determining that the business was unfeasible. MGC then became solely an LPG company that is used for many applications such as cooking gas, industrial, and commercial. MGC deals with wholesalers to refill their cylinders as the company has the largest number of stations for refilling cylinders. There is a total of nine refilling stations all over Oman, except Salalah. Commercially, MGC distributes bulk gas as the company transports the gas from the refinery to the warehouse and then onto factories, restaurants, hotels, and so on. In 2019, MGC won the Daleel petroleum tender to export liquid petroleum gas outside of Oman which is a significant point of MGC’s business.

What are your focus areas in terms of exports and expansion?

Muscat Gases mainly export to the UAE and Africa. When MGC team analyzed the company’s future business, we recognized in completing the value chain of the business. Therefore, the company decided to enhance the business channel overseas in the last three years. MGC became a member of the World LPG Association in 2020. At the same time, we also introduced our company to the major manufacturers in Italy, Spain, Portugal, Norway, and Turkey. We signed up to be their agent representing their products in the Sultanate of Oman. Through this partnership, MGC became the first company in Oman to have the composite cylinder which is the latest cylinder with a lighter weight of 5.5-kg compared to the 22-kg steel ones and are also extremely safe. Currently, MGC has

Imad Al Sabbagh CEO, MUSCAT

17 new companies on board and all of them are A-plus companies from Europe. MGC is focused in working with companies that gives importance on quality and safety. MGC is looking forward in making HSE a high value in the community through collaboration with Civil Defense and increase people’s awareness regarding safety at the workplace. In 2021, MGC decided to expand that inaugurated two new companies. One of the companies is called Muscat Power Pioneer, which will do the installation, designing, testing, commissioning of power and approvals of gas or power products in the country. The company will handle the oil and gas sector, wind power, water power, and firefighting. At the same time, MGC also established a new company called United Marketing Solutions that will handle the marketing through application for gas delivery and working on making everything extremely accommodating for our customers.

Do you foresee any projects on the infrastructural side?

In the Sultanate of Oman, the government is doing a great effort of still subsidizing the price of gas today and supports the country strongly in terms of gas. Because of this, it gives manufacturers opportunities to use gas for their products because of the lesser cost and give them an advantage in the other markets. In the past two years, the gas sector has been growing, and there is a surge in demands for more projects. Many investors are interested in Oman due to the new rules that give encouragement to the investors to venture with new businesses in the Sultanate. This is one of the reasons why MGC is interested in opening a branch in Salalah, which also renders many opportunities in the new industrial projects in pipeline. The company is aware that there will be more incoming projects for the next five years. MGC is optimistic that the economy will grow positively, especially as Bloomberg has currently rated Oman as BB+, which is an improvement in comparison two years ago. ✖

Committed to always meeting customers’ needs

Looking into Saudi and Europe

BIO

Imad Al Sabbagh has been the CEO of Muscat Gases Company SAOG since 2018. He has over 23 years of hands-on sales, marketing, and management experience within energy, FMCG, electrics, automotive, and hardware industries. Among numerous sales and marketing leadership positions, he managed nearly USD550 million of topline revenue and a team of up to 160 multinational professionals.

GASES COMPANY (MGC)

Murshid Al Yarubi CEO, MUSANDAM POWER

What competitive advantages and strengths does Musandam Power offer?

Since we floated in an IPO as a publicly registered company, we have registered 99% growth. This means 99% in terms of reliability and availability. So, down the years, since we began commercial operations, the plant has maintained that reliability and availability. We also have encouraging cash flow, which depends heavily on the demands in the region. We have at our disposal an installed capacity of 120MW, capable of meeting additional demand. In terms of power, Musandam has grown almost 3% per annum over the past three to years.

How are you contributing to the development of the Musandam region?

In terms of its geopolitical and geographical position, Musandam is not connected to the mainland. Therefore, this requires power generation dedicated to the region. Formerly, power generation relied on diesel driven engines, which are costly and have an environmental impact. The government decided that for the coming development region, we need a permanent power supply, which is why it made the decision to build this facility, associated with another gas plant facility in the region. The gas produced from that hydrocarbon production facility is fed into power generation.

Al Rae MANAGING DIRECTOR, GULF

How are Oman’s efforts to become a green economy affecting your industry?

Such an initiative takes time so we could not see the results right away. With green hydrogen, we should be able to participate and support Oman’s goals and objectives. We are coming from an industry with solid know-how in handling liquid and compressed Gases from a production, storage and transportation point of view. We have the knowledge to tap from because hydrogen is one of the industrial gases that we handle. Hydrogen is set to become the fuel of the future, and we are looking into the storage and transportation of liquid hydrogen. This is something we hope will take us to the next level.

What are your competitive advantages and strengths as an SME?

We are a service-oriented company, and the level of satisfaction among our current clients is extremely high. This is because a smaller team tends to be more flexible in decision making and extremely proactive. We do not compromise on business practices, and safety is always number one. We do not intend to stay as an SME and plan to take the next leap.

Ard Van Hoof CEO, OMAN TANK TERMINAL COMPANY (OTTCO)

Can you provide an overview of the company?

OTTCO is Oman’s independent tank storage provider. Our main growth focus concerns two new development areas: Ras Markaz and Duqm. The latter is part of the government’s vision for development of a new future port and will include number of industrial activities. We are focusing on servicing industrial companies and national, regional and international oil companies and aim to deliver the storage solutions they require in both areas. Besides the storage of crude oil for different (international) customers, we offer blending services and as such facilitate the uninhibited flow of oil to the world. In terms of our future, we seek to provide terminal solutions in Ras Markaz and Duqm. We also have a specific plan for two important pipeline connections in Ras Markaz. One connection is related to the main oil pipeline in Oman and the second is the connection with Saudi Arabia. The second goal is building our organization: People are our foremost asset, and we have employees at our company with 1525 years of experience. We have a long-term strategy to develop our people and seek to reach a workable balance between experienced people and graduates.

Nazeeh

TORCH

Sultan Qaboos Grand Mosque in Muscat

PEARL IN THE ROUGH

Tourism is no longer a marginal sector. On the contrary, it is one of the fastest-growing industries in the Sultanate. Known as the Pearl of Arabia, Oman has established itself as one of the most attractive destinations in the Middle East. This exponential growth is not only due to the reactivation of international travel, but also to the celebration of the World Cup in its neighbor Qatar, an excellent opportunity to attract a greater number of visitors.

With tourism identified as a key sector in Oman Vision 2040, it continues to have a ripple effect on growth in infrastructure, employment, service industries, and opportunities for local providers to expand into new markets. Oman has enjoyed steady growth in foreign direct investment (FDI) in recent years from the tourism industry and is now looking to leverage its unique tourism offering to attract more investment.

The government itself is developing plans to reactivate tourism and investment opportunities in this sector. The Ministry of Commerce, Industry and Investment Promotion, together with the Ministry of Heritage and Tourism and private-sector companies, are working on these projects to

attract qualitative investments in sectors of economic diversification and create the appropriate framework for success and development of all investments.

One of the most prominent efforts has been the development of integrated tourism complexes, commonly known as ITCs, which are a key magnet for investment in the real estate sector while strengthening the infrastructure of the tourism sector. These complexes are zoned areas that allow foreign nationals to own property on a freehold basis, but are also a focal point for entertainment and leisure. These projects do not put the natural beauty of the surrounding environment at risk, since Oman is one of the countries in the region that is making the most efforts to preserve its natural and historical heritage.

Another key initiative to boost annual international arrival numbers has been the easing of visas. The country's authorities have set up a visa-free travel system that allows visitors from GCC countries to enter the Sultanate without applying or waiting for a visa prior to their trip. Furthermore, nationals of 103 countries are eligible to enter Oman visa-free for 14 days. ✖

new ty pe of s et-u p

for a new ty pe

of m eeting s

having AN EDGE

Visit Oman is poised to connect the world to Oman’s sights and attractions, while bringing the local Omani travel and tourism sector to new heights.

Visit Oman is the first authorized national online booking and information getaway for Oman’s travel trade sector. Can you provide an overview of your operation and the latest developments?

In 2021, we worked on establishing the digital B2B platform aimed at digitalizing the nation’s entire supply chain concerning travel and tourism. We linked all the airlines capable of bringing tourists to Oman, the accommodation that fit our quality assurance criteria, suppliers, tour operators, DMCs, service providers, and F&Bs, namely everything a tourist requires, and all on one stateof-the-art booking platform that makes it easy for international trade partners and buyers to book online on behalf of their customers. We have over 100 accommodations and over 200 experience locations they can choose from: hiking, renting horses, custom-made camps, and tailored-made experiences. Around 90% of our suppliers are local SMEs, and the reason is that these individuals cannot collaborate with large tour operators. For example, one of the largest tour operators in Europe engages in high-end services with over 51 million loyal customers that it reaches with last-minute deals and packages. We are in conversation to determine what it requires to advertise Oman. With this platform, we provide over 250 SMEs that they can choose from. With digitalization and the components available, namely quality assurance, risk management, and business development, we ensure both parties that the suppliers and products, are authentic. The other key component is user experience; every product is live, so there’s no need to email for availability. Despite that, the focus is inbound and pertaining to Oman alone. We are big on ensuring quality. We are currently operational in 24 source markets, including India, GCC countries, and Western Europe, with some noticeable organic growth in Eastern Europe.

What is your assessment of the tourism sector in Oman,

and what are the growth possibilities?

Shabib Al Maamari MANAGING DIRECTOR, VISIT OMAN

In recent times, we have observed gradual growth, compared to the COVID-19 period; however, the developments on an economic level is globally alarming, in terms of the rise in ticket prices. That and the situation in Ukraine mean that insurance for aircraft and travel affects pricing, and we expect this to continue for some months yet. Hopefully, the vacation season will usher in travel. We have a competitive advantage when it comes to our destination, and we can do a better job in terms of marketing. The ministry has agreed to fund a year’s worth of integrated destination marketing campaigns in collaboration with OMRAN, Oman Air, and Oman Airport. That campaign, fully digitalized and highlighting our source market, will intensify over the coming days.

What are the aspirations of Visit Oman for the coming years?

Our main focus is to empower our suppliers and link them with the largest number of tour operators. It would be great to hear a supplier one day say: “I am fully booked for the year.” This is our ultimate goal, alongside expanding into new markets, with well-established DMCs. Meanwhile, we have also performed tremendously well in product development. In this instance, it is a case of supply and demand; we analyze different destinations, gather information and share feedback with the supplier, detailing what each market requires.

If a supplier can meet the requirements, we develop the product with quality assurance and hand it over to the tour operator. Everything is linked digitally, from bookings, accommodation, experiences, and airport services to F&B. Another area that we have also looked into is the conservation of animals indigenous to Arabia, such as the Arabian leopard, birds, and snakes. These give us a specialized competitive edge compared to other destinations. There is also the beach, fishing, mountains, and diving to enjoy here. ✖

BIO

Prior to joining Visit Oman, Shabib Al Maamari was a group chief, for sector development and promotion, at Oman Aviation Group and a board member of Transom.

Prior to joining Oman Aviation Group, Al Maamari was the communications and external affairs manager at BP Oman and a member of the leadership team in charge of operations.

Before joining BP Oman, he held the role of executive director at Injaz Oman. He also held the role of researcher (finance department) at the Diwan Royal Court of Oman, bringing his experience from the Ministry of Manpower where he held the role of economical researcher. Al Maamari holds a bachelor of science in business administration from the University of Missouri in the US.

A beach at Barr Al Jissah in Oman, located about 20km east of Muscat

Image: Hamdan Yoshida

setting ITSELF APART

OCEC is working to promote Oman as a hub for regional and international conferences and exhibitions, as well as a venue for live events and to showcase the natural beauty and rich culture of the Sultanate.

What is OCEC’s unique value that sets it apart from the competition?

OCEC is one finest events venues in the Middle East, perhaps even in the world. What sets OCEC apart from other conference and events venues is its sheer versatility. A critical aspect of this versatility is the abundance of size and space the venue enjoys; size is not yet an issue in Oman, and what we have at OCEC is a combined multi-purpose venue that can host events as small as a simple corporate event all the way to large festivals and mega events. The moment you walk into the venue, the unique design evokes a definite feeling of spaciousness, peacefulness, and good energy. All the materials used in OCEC’s construction were sourced locally and inspired by traditional Omani design, from the beautiful marble used around the building’s interior and exterior, to the iconic “Sultan Flower” design that graces the top of the Madinat Irfan theatre. Furthermore, the gardens surrounding the building serve to create an inspiring atmosphere for all kinds of business and social events.

How is the OCEC embedding sustainability and green practices into its operations?

The OCEC is a proud United States Green Building Council LEED Gold Certified venue. In terms of sustainability and green practices in our dayto-day operations, we are currently using a substantial amount of alternative energy for the venue’s air circulation, water supply systems, and heating requirements, among other requirements. Furthermore, we are excited to be implementing a solar project that is set to reduce the venue’s total energy expenses to 30% of our current level. This project is currently in the regulatory approval phase. Meanwhile, our sustainability

Said Al Shanfari CEO, OMAN CONVENTION & EXHIBITION CENTRE (OCEC)

initiatives also encompass waste and food waste management, which we transform into fertilizer. And through OCEC’s successful road to recovery following the outbreak of the pandemic, we look forward to tackling our plastic recycling in light of the government’s goal to achieve a zero-carbon footprint by 2040. This is particularly important for us, because it indicates the government and OCEC’s shared vision for a sustainable future. For OCEC, the concept of sustainability also extends to people and cultures from all over Oman, and all over the world. In this sense, we are a “Palace for the People” and a “Rejuvenating Spa” that welcomes and celebrates cultures and communities into the heart of Oman.

Where would you like to see the OCEC and the events industry in Oman over the coming years?

The events sector needs to be considered holistically in terms of its full range of components. We are an enabler for generating revenue for other projects; this is to say that, while we are indeed a profit-focused enterprise, much of our work also involves creating income generating opportunities for other industries in Oman. For example, if one of the OCEC’s on-site hotels is fully booked due to a large event taking place at our venue, there is a knock-on business effect for restaurants, taxi drivers, tour guides and so on in the area. This is the ecosystem we plan to engage with over the coming five years. Furthermore, I like to work closely with all related entities to educate them about the importance of our venue and the events industry in Oman. Bringing in bigger events will further assist us in providing a sustainable experience of operational excellence. I envision OCEC becoming an exemplar for stadiums or other venues in their growth trajectories. ✖

BIO

Said Al Shanfari has a wealth of experience working in various leadership roles in marketing and communications across Oman and the wider region. His professional experience includes various management positions during his eight-year tenure in Ooredoo Oman, including director of business marketing. More recently, he held the role of general manager of marketing communication and performance at Omantel. Al Shanfari successfully completed Oman’s National CEO Program in 2017. In 2019, he was selected as one of the Top 100 Most Influential CEOs in Oman. He holds an MBA from the University of Hull, in the UK, and double bachelor’s degree from Southern Illinois University Edwardsville in the US in computer management and information systems, as well as in business administration and international business.

Aligned with Oman Vision 2040 strategy to develop a more diversified economy

ICONIC destination

Al Nakheel ITC Oman has various offerings targeting residential, tourism, and retail markets via its unique destination development.

Mohammed Moosa Al Abri CEO, AL NAKHEEL ITC OMAN

Integrated tourism complex under auspices of Ministry of Heritage and Tourism

Targets middleincome strata of locals and expatriates

What are some characteristics of Al Nakheel ITC Project, and where does the project currently stand?

BIO

Mohammed Moosa Al Abri has over 25 years of experience in hotel and real estate operations and development, having held various senior executive positions in leading international and regional companies in Oman and other countries in the Middle East. Prior to joining Al Nakheel in 2015, Al Abri had worked for more than 12 years with the Intercontinental Hotels Group (IHG) in Oman and the UAE. He has also worked for over five years in Morocco as Country Manager for Al Taameer Real Estate Investment Company, a regional real estate developer and operator of hospitality projects.

Al Nakheel is an integrated tourism complex (ITC) project that will feature a variety of mixed-use developments centered on a crystal lagoon including three hotels, residential units, a shopping mall, a traditional souq, and other recreational components. It spans a total area of 500,000sqm of usufruct land located in Al Rumais that links Muscat governorate with the Wilayat of Barka. The development is characterized by its 830m waterfront overlooking the Sea of Oman. At the heart of the development is the Crystal Lagoon covering an area of 51,000sqm and the promenade, which will become the recreational and entertainment zone of the new urban area. We have not yet decided on the rating of the hotels, though our focus will mostly be four-star hotels. There will be one hotel facing the lagoon and two hotels facing the sea. We have also allocated service facilities and a block for an international school. We want to develop a community to take care of all of residents’ needs. The project was planned to start earlier but was delayed due to the pandemic. In mid-2022, we started the preliminary works on the project. The construction of the Crystal Lagoon, the internal roads, and other components will follow as planned. We will not launch any sale of residential units this year or the next. We first want to create that destination aspect and develop the Crystal Lagoon for people to learn about the project. The entire project will be developed in three phases, and it will take around 10-20 years to complete all the phases.

What is your target market?

Our strategy is to develop an “affordable” ITC project. Al Nakheel will be distinguished from other ITC projects in Muscat by the reasonable prices of residential units for all buyers. Our focus will be the local Omani market, especially for the apartments, but we also target buyers from the GCC markets and other countries in the Middle East and Eu-

rope who are looking for residential units to either live in or for investment purposes. The diversified components of the project and its proximity to the Governate of Muscat and Al Batinah regions makes Al Nakheel an idle choice for both buyers and investors. The Crystal Lagoon covering an area of 51,000sqm is the main attraction of the project.

What are some challenges in the industry?

We operate optimistically. There has been an increase in different construction projects led by the government and tourism projects in different regions of Oman. We, therefore, expect increased interest in this project and a higher number of local tourists who want to visit us instead of traveling overseas. The problem is that Oman does not have any family-oriented projects. Al Nakheel will meet that demand for a recreational, entertainment, and family-oriented tourism project. We want it to be accessible not only for its residents, but for people from other areas to come and enjoy.

How are you implementing sustainability and green practices in Al Nakheel Project?

We have four main aspects. First, the project has a low carbon footprint, and only 22% of the project land will be used to build structures. A large area will be devoted to gardens and parks. We are using sustainable technology developed by Crystal Lagoons Company to treat and filter the seawater. We also studying the use of technology to treat sewage water to be used for irrigation. We will design the buildings according to the LEED international standards to preserve the environment and reduce the consumption of water and energy. We also plan to implement clean energy such as solar or wind. We not only want to make the project sustainable, but also affordable and cost effective. We have also prepared a social impact assessment and a community development plan on how we can help develop the surrounding community and help people sustain their livelihoods. ✖

MORE to offer

Two different and unique destinations in Oman, ShangriLa Barr Al Jissah and ShangriLa Al Husn, Muscat offer guests unparalleled luxury, F&B, and relaxing options no matter their tastes.

Rene D. Egle AREA GENERAL MANAGER, SHANGRI-LA BARR AL JISSAH AND SHANGRI-LA AL HUSN, MUSCAT

Could you give us an overview of the resorts?

What are the main features and spaces?

The entire complex of 124 acres consists of three hotels, with a total of 640 rooms and suites, which all fall under one main brand with two separate entities: Shangri-La Al Husn, Muscat, and Shangri-La Bar Al Jissah, Muscat. Shangri-La Al Husn, Muscat is the upper luxury five-star hotel that majestically sits on the clifftop with breathtaking views of the Sea of Oman. It is the singular adults-only resort in Muscat for guests over 16 years old with Club benefits exclusive to its guests and which include complimentary daily afternoon tea at Sultanah, aperitif hour in the Courtyard with live entertainment, complimentary beverages and snacks from the in-room mini-bar and use of the resort’s private beach, the only Luban Spa in Oman and complimentary access to the facilities of the adjacent Shangri-La Barr Al Jissah, Muscat such as Chi, The Spa, the vibrant dining venues and bars, and other leisure activities. Shangri La Barr Al Jissah is a dual resort complex with two destinations: Al Waha Oasis is a family and friends focused destination that is beautifully set around a series of stunning swimming pools framed by rustling palm trees; and Al-Bandar, the luxurious beachfront town at the heart of Shangri-La Barr Al Jissah, which is perfect for couples, groups of friends, or business travelers who like to be in the midst of all the action and plan to make use of the resort’s extensive dining and meeting facilities including ballroom and function rooms.

local and Indian markets. There are some preferred destinations for Indian wedding celebrations, and Shangri-La Muscat has all the facilities required to host such big weddings.

How are you differentiating yourselves from your competitors in the GCC or Middle East?

We are fortunate to have two properties with two different identity and markets: families and the luxury upmarket adults-only resort. We provide culinary experiences with more than 10 different types of cuisines under one roof. Our complex has multiple experiences for couples, family, high-end clientele, and gourmet lovers. Shangri-La Muscat is a destination within a destination itself, and we are working toward elevating guests’ experiences through the local sense of place. We have also launched in 2022 the Luban Spa, the first in Oman and using solely frankincense. To further enhance our guests’ journey whilst they stay with us, we offer a bespoke collection of transfer modes, from a collection of 35-40 vintage cars to a swift helicopter transfer.

What are your expectations and goals for the short term?

BIO

Rene D. Egle has extensive experience in running successful international high-end hotel operations. He has worked in Europe, China, Hong Kong, the Middle East and Southeast Asia in hotel such as Shangri-La in Oman, the Philippines, Mauritius, Maldives, the UAE, and Jakarta; Swissotel in Beijing; the Kempinski Hotel in Beijing; and the Sheraton Belgravia in London, among several others.

What types of events does the hotel hold? The complex can cater for a comprehensive range of events from intimate ones to big celebrations and corporate functions, given the size and the various outdoor possibilities and venues that can be explored from beach, garden, amphitheater to ballroom and function rooms. At the moment, we are leveraging our visibility on the celebrations of big weddings at our hotel, and we are targeting mainly the

We are working on a complete repositioning of our F&B concepts, and in November we launched Aangan by Rohit Ghai. Rohit is an internationally acclaimed chef based in London, and he has partnered with us to open his first restaurant in the Middle East. We are looking at attracting diners who have a flair for fine dining but in a casual setting. We are also looking at showcasing our diversity of cuisines through our own chefs who run their distinctive venues with an authentic concept. We are also the first hotel in Oman to implement the zero-proof cocktails to give our guests an alcohol-free way to enjoy an elegant cocktail. In terms of sustainability, the resort has already launched its single-use plastics campaign with a long-term commitment to remove the use of plastics within the compound of the resort. ✖

A WEALTH OF EXPERIENCES

Overlooking the Gulf of Oman, discover Shangri-La Barr Al Jissah, an exhilarating seaside oasis for a sweet family escape or retreat to Shangri-La Al Husn, our singular adult-only clifftop resort and indulge in a wealth of luxurious experiences.

Shangri-La Barr Al Jissah and Shangri-La Al Husn, Muscat

T: (968) 2477 6666 E: muscatbarraljissah@shangri-la.com

shangri-la.com/en/muscat/barraljissahresort/ P.O. Box 644, Muscat, Postal Code 100, Sultanate of Oman

something FOR EVERYONE

Creating a unique experience for families, Dusit D2 Naseem Resort is truly the destination in Oman for families that offers something for everyone.

Gerhard Stutz GENERAL MANAGER, DUSIT D2 NASEEM RESORT

What are some of the resort’s main features and what services and spaces does it offer?

The hotel opened exactly one year ago. It is a different kind of facility as we are at Adventure Park, the only adventure resort in Oman. We have 252 rooms, and are a family resort. We have two large competitors that are extremely expensive. Besides the adventure park for families, we have a pool and two restaurants. We also have a children’s playground. The resort is 75,000sqm and completely enclosed. We build our experience on several pillars: sustainability, wellness, and local experience. The facility also has its own clinic and pharmacy. We also have our own vegetable garden. The resort has over 150 fruit trees, including pear, apple, fig, and pomegranate, among others. We are looking at how passionfruit and grapes might be grown here, all to enhance the family experience.

What other experiences makes DusitD2 unique in Oman’s hospitality sector?

We work with the local community. We organize tours in Jabal Akhdar to the caves, rose water plantations, as well as olive and fruit picking. Recently, I had dinner with our founders from Jabal Akhdar and we are in the midst of working with a farmer that we will hire. We will

start an agriculture project for the first time to grow coffee here in Jabal Akhdar. We work heavily with the local community. You can buy frankincense and rose water from the farmer. Meanwhile, the local olive oil recently won an award. As the fruit season starts, all the amenities that we give to customers will include local fruits. Over the years when we met with the farmers, they would tell us of the problem of water availability with plants drying out and trees cracking. We are working now together with Water Oman to address this matter. We are working with the local farmers to install a pipe running from the hotel to the village to supply discarded water for them to water their plants.

How did you arrive at the idea of creating an adventure park at the hotel?

When you come to the mountains, you ask what is going to set us apart? Building another hotel is not just about having another hotel around the corner. We definitely needed a hotel where there are activities for families. I think that is where the adventure park idea came from. We have facilities where kids can play soccer, volleyball, and basketball. Therefore, when you come with your children and family, each age group has something

to do. For the parents, we have a full service Thai spa. All these make this hotel unique. There is really something for everyone here. Kids determine where the families are going to go for vacation. The parents can go for the mountain hike in cooler temperatures while children also have their activities. With this being said, we wanted to make sure that we were creating this unique experience for families.

What is your assessment of the tourism sector in Oman, and how can the hospitality industry grow?

We have seen tourists returning and increasing in number, which is excellent. A hotel always needs a mixture of people. After this pandemic, we are trying to bring Oman back to the tourism industry. It takes time to remind people again. Oman has a lot to offer in other areas. Active advertising for tourism is important. The Dusit has hotels in the Middle East, including Abu Dhabi and Dubai. We work closely with our sales offices at the other Middle East hotels. In Oman, our main market is the Gulf countries and the local market. About 80% of our guests come from Oman. We also see guests from Italy, German, France, and the UK. They are big supporters of the mountains in Oman. ✖

Khalid Al Nabhani CO-FOUNDER & CEO, SABEEN GROUP

How has the group evolved since its inception?

Sabeen Group started with a media section, which developed into different sectors and later we gathered into a group of companies to develop ideas to bring to the market. We are targeting a niche and non-competitive sector that Oman leads in and aligns Vision 2040 in different sectors such as tourism and AI. It compiles different sectors that are in alignment with our vision. As for this past year, we are aiming to expand Lunar Cinema. Along with our friends in Saudi Arabia and Bahrain we have unique and different concepts which include private platinum screens that allow people to enjoy their movies whenever they want to. We are also into the manufacturing as well. We are looking into scaling a fish and meat manufacturing business, which Oman needs. Right now, Oman imports its fish from outside the country. We are working with the government to localize this manufacturing and use their source of materi-

als that we manage, to make the food industry more secure.

Which sectors do you see having most potential?

If we talk about which one has more growth potential, we are focusing mostly in the tourism sector, although this comes with a lot of challenges. We talk about a tourism that includes the entertainment side. We are focusing on digitalizing a lot of services, and we plan to launch an Oman insurance company. It will be a fully individualized and digitalized insurance service and will help people to get insurance services from their mobile easily. Beside insurance services and digitalization, we are going to add fintech services through our own insurance. For us, we are working on a small platform that can change in the shape of the market. This digital platform could allow us to see the real estate market in different ways than before. Besides that, we are doing an accounting project with the government through digitization. We are also working on a new museum. It is being built by a French company and will be the best museum in Oman. ✖

BIO

Khalid Al Nabhani is the Co-Founder & CEO of Sabeen Group, a semi holding company that has under it small and medium-sized projects and companies in different field such as Lunar Cinemas, Sabeen Media, Aman Insurance, 7Ocean, Sabeen Investments, and others.

BIO

Issa Al Sawafi is the founder of Wadi Adventure. He is a graduate from the College of Education as an English teacher but ended up working at the Ministry of Religious Affairs as an imam, leading prayers. He holds many certification and courses in outdoor adventures such as the Industrial Rope Access Trade Association (IRATA), caving, rope access, outdoor first aid, and many more.

Issa Al Sawafi FOUNDER, WADI ADVENTURE

When did this initiative start and what is the story behind Wadi Adventure?

The official start of the company was in 2017, but the humble beginning started a few years earlier. We start as an online community that grow rapidly by word of mouth as the adventure scene in Oman was just starting. In the first few months, we were about 200 members of adventure seekers that shared the same thirst to explore Oman. When we first started, we focused on easy routes that did not require anything more than hiking shoes and a backpack. The more we explored the more our eyes opened to the vast opportunities in the adventure world. We discovered hiking routes that require abseiling and safety equipment’s that pushed us to acquire these skills from professional. In 2017 we officially launched Wadi Adventure LLC as a commercially register company with eight of my colleagues who share my passion for adventure. We all got certified to take groups safely on adventure trips and

continued to grow the company. I am happy on how the company shaped during the years and being one of the first adventure tourism company in Oman.

What competitive advantage does Wadi Adventure bring to the market?

Being one of the first companies in this sector gives us a competitive advantage over our competitors. Over the years, we have built an excellent reputation in adventure tourism be it during the community period or after establishing the company. Most adventure tourism companies know each other and complete each other. We don’t see them as competitor, we see them as colleagues. We have excellent relations with them and always help each other whenever needed. As a matter of fact, many of the adventure tourism companies that have been established was a direct result of the community that I started. As for the Wadi Adventure team, we are a team of 20 leaders, each with their discipline. I am proud of my team and I believe that everyone contributes based on their area of expertise. The team was carefully selected, and they have grown the company to what you can see today. ✖

BIO

Jasim Al-Alawi has 15 years of professional work experience in business development, investment, and technology innovations. He is the CEO & Founder of a travel-tech platform and co-founder of other companies. He has proven experience in business incubation ecosystem and entrepreneurship with a vast exposure to national entrepreneurship strategy and vision.

Jasim Al-Alawi CEO & FOUNDER, DARRBAK

What is the story behind Darrbak, and when did this initiative start?

We started the platform in December 2020. Darrbak is a marketplace that connects adventure seekers and visitors looking a unique experience in Oman. It is similar to a service provider. Perhaps only two or three companies have a website for international visitors, and the main communication channel is WhatsApp and Instagram. There were issues with this process, such as when guests change their minds after making a booking on WhatsApp. Companies were waiting for three or four months without any down payments or commitment. We help that adventure company or experience company build up their technology and their quality checks. We call ourselves a technology and marketing partner.

What does Oman have to offer in terms of adventure tourism compared to the rest of the GCC?

In the entire GCC, there are two places where

you can find adventure tourism: Saudi Arabia and Oman. This is particularly so for water sports, mountain hiking, or a different cultural experience. In Oman, we have five different languages with their own cultures and clothing. And still, we know each other, and the beauty of the environment is unique. Oman is still a developing country, and it chooses the places over the city to develop. We do not develop the whole country, because we need to have an untouched culture with camping and the entire experience. This is something unique thing that tourists and visitors appreciate because there is no human footprint. If we talk about Oman, tourism is one of the major sectors, and the country has started to focus on it. The thing is, Oman is more focused on real estate in tourism; however, we do not need a five-star hotel or resort; we need more experiences and activities. People who come to Oman do so for unique experiences. That will encourage them to return again in the future. One can find five-star hotels everywhere in the world. Oman has many different types of environments, and we have not marketed to or targeted the right investors to help Oman be a global leader in activity-based tourism. ✖

THE BUSINESS OF “WELCOME”

Be they intrepid explorers or shirtless sun-seekers, tourists are ever hungry for that memorable new destination with the proverbial “X” factor that might even become a future favorite.

TWO YEARS OF COVID-19 has only served to pull the bow back further, providing an even more powerful trajectory for the global tourism industry. Oman, pursuing its 2040 Vision of economic diversification, is determined not to miss out on this. In December 2021, in the midst of the pandemic, the government announced a raft of tourism-related investments aimed at lifting visitor revenue to USD22.5 billion by 2040, almost nine times the 2019 figure. The Sultanate welcomed roughly 3.2 million tourists in 2021, a 12% increase on the previous year. Oman is also keen to showcase its wider tourism appeal from sun-based leisure to cultural discovery to tap regional as well as wider international interest.

TWO SIDES OF THE COIN

Government support for a competitive, high-quality industry of diversity offerings has involved local training for employment, along with the engagement of local SMEs to build and service Oman’s tourism assets. Private capital loves an incentive, and the Tourism Ministry has formulated a mechanism that includes usufruct contracts for tourist lands, ceding potential investors legal rights to use and derive income from tourism assets. The government’s designated bridge between public and private sectors is the Oman Tourism Development Company (OMRAN Group). The group, set up in 2005, is tasked with executing the 2040 National Tourism Strategy. It identifies priority investments and schemes of the greatest potential. OMRAN Group is also the champion of sector sustainability, and of the proliferation of local lifestyle communities that can contribute diversely to wider economic growth. It is also effectively a watchdog ensuring that development builds on, rather than overshadows Oman’s traditional culture and natural environment.

TRAINING TOMORROW’S SECTOR

The tourism sector requires a steady stream of qualified workers at all levels to sustain sector momentum and advance the process of Omanization. OMRAN’s Midhyaf initiative does this, being a specialized training for employment’ program partnering the Ministry of Labor. Students at the Oman Tourism College (OTC) receive real-world training at OMRAN’s hospitality assets, including the W Muscat, Crowne Plaza Resort Salalah, Crowne Plaza Muscat, Crowne Plaza Duqm, Alila Jabal Akhdar, InterContinental Muscat, Barcelo Mussanah Resort, and Oman Convention and Exhibition Centre. Training to exacting international standards raises the level of national competency demanded by the private sector. Midhyaf also benefits from partnerships with world-leader hospitality acad-

emies and institutes such as the Saudi Academy of Culinary Arts (ZADK), the British Butler Institute, and the American Hotel and Lodging Educational Institute (AHLEI).

MANNING THE SHIP

The 2,000 or so initial applicants to Midhyaf confirmed the young population’s faith in the sector. And in October of 2022, as part of the celebration of Omani Youth Day, OMRAN Group applauded its first graduates. These individuals had received between four to nine months of specialized on-the-job training. And as OMRAN notes, the graduates had “received the opportunity to earn up to 11 professional certificates based on the type of training program they pursued.”

On the day Qais Zahir Al Hosni, Chairman of the Board of Directors of Oman Tourism College (OTC), voiced hopes that gradates would “transfer the knowledge and skills they learned at OTC to their workplace [thereby] raising Oman’s profile in their respective fields and areas of expertise.” Midhyaf is just a part of Oman’s tourism content-building drive. At the graduation ceremony, OMRAN Group revealed the Tumoohi Syiahi project (My ambition is Tourism), an umbrella program for all training and development schemes, including Midhyaf, the pathways program (Masarat), and the Tadreeb training program.

LATERAL THINKING

It seems then, that Oman is banking on competitiveness to optimize its tourism sector, by stimulating the growth of new verticals. Jasim Al Alawi the CEO & Founder of adventure tourism business Darrbak tells TBY that, “The thing is, Oman is more focused on real estate in tourism. However, we do not need a five-star hotel or resort; we need more experiences and activities.” He goes on to add that “In the entire GCC, there are two places where you can find adventure tourism.” He notes, too, that five languages are spoken in Oman, with each group of speakers representing a unique culture to be discovered.

Meanwhile, Issa Al Sawafi, the Founder of adventure tourism enterprise Wadi Adventure, highlights the communal current running through the sector. “Many of the adventure tourism companies that have been established were a direct result of the community that I started.” This shared responsibility of all players to raise overall excellence chimes perfectly with the National Tourism Strategy. And naturally enough, a wider awareness of what Oman is all about builds the soft power crucial to its international standing. ✖

Image: Kumar Studios

Construction & Real Estate BACK IN THE GAME

After softening demand due to the pandemic, the real estate market has seen an upswing of late, backed by a solid structural foundation and gain in demand. Along with a slew of decisions and measures, the Omani government's new ownership scheme that allows foreigners to own properties outside integrated tourism complexes (ITC) is expected to attract capital investments in the property market.

Additionally, to provide more houses to citizens and stimulate the real estate sector, the Ministry of Housing and Urban Planning offered five sites for private investments in five governorates, these being Musandam, Dhofar, South Al Sharqiyah, North Al Batinah, and South Al Batinah. These five new constructions will account for approximately 4,800 housing units, catering to an estimated 24,000 people, following the success of the first Integrated Housing Development Project in Barka based on the public-private partnership (PPP) model.

Another key trend experienced over the last two years has been a “flight to quality” as rental values for high-end properties has become more affordable. This has been particularly evident at Al Mouj, where villas and townhouses have high occupancy levels whilst apartments have seen higher

demand.

Regarding the construction sector, this has also picked up during 2022 and it’s expected to maintain growth in the following years, coupled with rising oil prices and the continuous expansion of oil and gas production. However, despite regaining growth momentum, the Omani construction industry’s output is expected to remain below pre-pandemic levels. This results from the ongoing supply chain crisis, cement shortages, and rising building and raw materials prices, among others. Nonetheless, this does not hamper industry efforts to adopt new technologies and innovative solutions. Dr Hamoud Al Tobi, CEO of Galfar Engineering & Contracting SAOG, one of the largest construction companies in the Middle East, told The Business Year that; “We are witnessing the fourth industrial revolution, with the latest emergence of technologies and innovations, for instance the use of robotics in construction projects, for laying blocks, painting, road markings, and the laying of curb stones.” Thus, there are many initiatives that traditional construction companies in Oman are adopting in order to stay ahead of the innovation curve, increase productivity, and improve on-site safety. ✖

SPECIALIZED offering

Offering quality outcomes at a reasonable cost both locally and globally, ORIS is targeting both Omanis and foreigners in its exclusive mixed-use development project in Muscat.

What was the motivation behind starting this project, and what are its main characteristics?

Nasser Al Shibli CHIEF REAL ESTATE OFFICER, OMAN REAL ESTATE INVESTMENT AND SERVICES LLC (ORIS)

BIO

Nasser Al Shibli has over 20 years of experience in real estate development and investment as well as project management. He previously worked in Oman Telecommunications Company and the Ministry of Endowments & Religious Affairs. Al Shibli holds a bachelor’s degree in civil engineering from Sultan Qaboos University, an MBA from the University of Bedfordshire, and a master’s degree in project management from George Washington University and has completed a real estate management program from Harvard Business School.

ORIS is the real estate subsidiary of OMINVEST and has been gradually building its name within Oman’s real estate market. In 2018, after we launched the iconic building OMINVEST Business Centre, our name was further cemented as a development and investment company. We started off as a department to now a standalone company. Our main objective is to enrich society with our projects; therefore, we perform thorough research to find the right investments that fit into our objective. The project that we are developing currently will be in Muscat Hills Community and will consist of an 80 key boutique Tivoli Hotel, an 80-year-old brand that exudes European elegance and rich history. Tivoli is a part of Minor Group that has many brands such as Avani, Anantara, nH Collection Hotels, and more. Along with the hotel, there will be 100 branded serviced apartments managed by Tivoli, a variety of new and unique F&B and retail brands, as well as town villas and apartments. Our unique selling point is that along with the acquisition of the plot for development, we acquired the existing Muscat Hills Golf Course. The 18-hole championship golf course is spread over 600,000sqm of land with a unique landscape and is being managed by Troon, the largest golf management company in the world. The development will also include a state-of-the-art golf country club for all golf enthusiasts. This project will not only generate jobs in the local market and boost the economy through tourism, but also aims to promote golfing as a major sport in Oman and for local talents to perform at international levels. This project will bring life into the community and within Oman, which is why we decided to call it La Vie, a French word meaning The Life.

To what extent does the project include sustainable and green practices?

By embarking on ESG initiatives, businesses can become a catalyst for creating scalable economic, environmental, and social value; integrating sus-

tainability also helps strengthen our investment philosophy and purpose. We are implementing certain practices that will ensure that we are in line with global sustainability practices. Furthermore, during the design of the project, we have considered all the factors to be more energy efficient and use materials that minimize the destruction of our environment. Another practice that we are considering is working with SMEs and local companies during the development stages of the project.

Who is your target clientele?

Our project is located in Muscat Hills, a prominent established mixed-use community strategically located within 10 minutes’ drive of Muscat International Airport. Featuring an 80-key hotel and 100 branded residences, this new mixed-use development will overlook the newly renovated La Vie Club, formally known as Muscat Hills Golf & Country Club, also including the first interactive Toptracer range in Oman. This is one of the very few projects that not only targets Omanis but also expats as well. Integrated tourism complex (ITC) projects open the Omani market to the rest of the world, which in turn boosts the economy. The project also targets individuals and families who are looking to live in luxurious apartments/villas within a community. It could be their primary or secondary/vacation home and be used for investment purposes as well.

How do you set the right price without compromising on quality?

Our team comes with a great deal of experience and has worked on several projects, including projects for third parties. We have developed a system to control and monitor costs to ensure that all developed properties are reasonably affordable. We have never compromised on quality and focus on maximizing cost-control during the design stage. We also structure legal documents to benefit all the parties involved; this allows us, as project managers, to control and monitor the expenses. It is challenging to offer quality outcomes at a reasonable cost both locally and globally, but it is achievable.

WE BRING A BLAST OF ZEST AND STYLE TO MUSCAT

BUILT ON A GREEN FOUNDATION

The shift toward a diversified industrial matrix presupposes a sustainable economy. Oman has built sustainability into its national drive for change, and this is tangibly resonating in the construction sector, a key economic driver, but traditionally also a sizable polluter.

AS OMAN’S RISING POPULATION DEMANDS better living environments, the sector is being encouraged to think green, right down to the individual building material and the energy used to make and utilize it. The government is fully behind Oman’s adoption of renewable materials and sustainable building practices. In 1Q2022, Muscat hosted the Oman Real Estate Expo, a platform for purveyors of innovative building and construction industry solutions. The show, staged under the patronage of the Ministry of Housing and Urban Planning and with the support of Oman Real Estate Association and Muscat Municipality, was held during Oman Design and Build Week (ODBW). It showcased cutting-edge solutions from over 250 participating companies that could gradually become common practice in Oman’s construction and real estate industry.

TAKING THE LEED

Innovation is not just about producing more construction materials, but environmentally better ones that support the overall renewable integrity of a project. Avinash Sharma is the Head of Business Operations at LEED-certified Oman Shapoorji Company LLC, which has realized numerous landmark projects ranging from the Mall of Oman, the Royal Opera House, and Oman’s second largest mosque. “Innovation in the construction industry…” he tells TBY, “… is about the execution method, reducing waste, and working toward sustainable goals.” He explains how the firm undertakes goal-based projects by following, “…LEED standards, elite processes, and procedures,” having certified LEED practitioners within the company. “LEED defines how to operate at the site [and] processes are always followed.” The company utilizes electric vehicles on site, implements sewage treatment technologies to curb and process waste, and reuses construction water. “The best we can do,” for sustainability, he concludes, “is to reduce waste [and] we try to use materials that can be reused multiple times and reduce plastic consumption.”

MATERIAL WITNESS

Hempel ranks among the world’s preeminent manufacturers and suppliers of protective and decorative coatings. Commercial Manager Andrea Negri reveals the company goal of carbon neutrality by 2025. The company features an internal “growth hub” that pursues innovative technology. “We are looking at raw material supplies, where they come from, and the carbon footprint of these raw material supplies.” Globally, in addition to the use of solar panels, the company is shifting away from harmful solvent-based products

to water-based alternatives and reusing waste at its plants. Negri identifies one sector issue in Oman, and a possible solution. “In Oman, there is still no clear facility for the disposal of paint, and we have ship it back to the UAE because the waste disposal facilities here were not in compliance with our standards.” Yet just this year Hempel purchased major local paint manufacturer Khimji Paints, which plans, instead, to sell waste paint.

THE MALL WITH IT ALL

In 2021, Mall of Oman was named Sustainable Project of the Year at the Construction Innovation Awards in Dubai. In designing the 140,000sqm project that has elevated Muscat’s commercial portfolio the developer set minimum standards to meet the US Green Building Council LEED Gold rating. As it transpired, the sustainability implementation plan picked up a LEED Platinum rating, rendering the mall Oman’s largest building to hold this status. Sustainability features include electric vehicle charging areas, a 100% shaded surface carpark with photovoltaic panels; lower irrigation demand and the use of treated sewage effluent, as well as a reduction of internal water consumption of over 45% and minimum anticipated energy savings of 28% from the American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) baseline. Over 80% of construction waste was diverted from landfill, while 40% of construction materials were sourced locally and recycled materials accounted for roughly 23% of supplies.

A SUSTAINABLE NOTE

Oman’s commitment to greening its construction industry was writ large in 2022 as its Sustainable City - Yiti picked up the "Best Sustainable Project" and "Best Sustainable Development" awards at the Dossier Construction Awards and Summit. The annual awards, organized under the wing of the Ministry of Housing & Urban Planning, applaud the setting of global benchmarks in sustainable development. The Sustainable City - Yiti, a joint venture between the UAE’s Diamond Developers and Oman Tourism Development Company (OMRAN Group) was designed in step with the sustainable goals of Oman Vision 2040. Overlooking the Gulf of Oman 30km from Muscat, the scheme marries sustainability with a superlative quality of life. Green buildings are central to the new community that will be completed by 2025. The project, Oman’s first sustainable city, and the Middle East’s largest sustainable community, confirms that the local construction industry is advancing toward net zero in alignment with 2050 climate targets. Solid foundations indeed. ✖

significant MILESTONES

Could you provide an overview of the company and some its highlights of the past few years?

Galfar Engineering & Contracting SAOG is one of the largest, multi-disciplined engineering, procurement, and construction company in Oman. Established in 1972, in 50 years Galfar has carved in a niche in the Omani construction sector as one of the most trusted partners and maintains an excellent track record of creating mega oil and gas, infrastructure, civil, and environment projects in Oman. We carry out works close to USD1 billion consistently over the past several years. We take pride as one the largest employers on nationals in Oman while maintaining the highest level of health, safety, and environment (HSE) performance through leadership, commitment, consultation, empowerment, and participation. In 2022, we celebrated our 50th anniversary. This inspires pride and brings great memory related to key great milestones over the last 50 years. One of which is being a publicly listed company in 2007 as well as completing the Yibal Khuff Project, one of the most technically complex projects, to name a few. Galfar has always been a partner in the Sultanate’s development, having completed over 1,000 projects worth more than USD10 billion. This is supported with diverse and talented manpower, availability of more than 4,000 plants and machinery, as well as a strong local and international supply chain partners.

What are your plans as regards innovation and how is it incorporated into your operations?

As part of our transformation strategy launched in 2020, technology and innovation are key strategic priorities. We have been continuously implementing some of the value-add 4th industrial revolution technologies such as using fuel automation system, aerial surveying, and automatic concrete levelling machines, to name a few. Recently, Galfar has succeeded in implementing a 3D building in collaboration of PDO & Innotech SME. After signing a MoU, we commenced printer and ink R&D. Galfar Aspire Readymix team has proudly innovated the 3D printer ink using 100% local materials. The key success factors to produce a purposeful 3D

printing ink includes: innovative thinking, technical knowledge, the right laboratory test equipment, relevant raw material, and dedication of the Galfar Aspire Readymix team to keep pace with the global developments. 3D printing ink is custom designed and developed for specific applications. Additionally, effective utilization of 3D printing mechatronics, understanding the role of various additives, collection, and monitoring of data and frequent testing are some of the key factors that ensure the successful production of suitable ink. We executed the first 3D printed building for Petroleum Development Oman (PDO). This involvement centers around adopting technological progress in the world of future construction. As the industry faces increasing pressure to meet tight schedules and budgets, companies are looking for new innovations to help fill the gaps. 3D printing in construction offers great potential to increase efficiency in the construction sector, including: speed, waste reduction, free design, and reduce human errors.

What are your targets and expectations for the coming years?

Our aspiration is to continue partnering in development in a profitable, sustainable, responsible, and ethical way. Construction industry in the sultanate is showing a positive trend after the pandemic recovery. The government’s programs to promote the development of affordable housing, transport, and renewable energy infrastructure are expected to continue. Galfar is well geared to deliver on our promises. Aided by the trust of our clients and our commitments to deliver on our transformation strategy, we believe in growing our market share in the various portfolios we operate in. Also, Galfar is well positioned to deliver on our parts related to the PPP in the pipe line for tendering. Galfar is actively participating in the PPP projects in education, ports, healthcare, transport, waste-to-energy and renewable energy. Delivering PPP projects is, in fact, one of Galfar’s strategic priorities. In the meanwhile, we are looking to expand regionally, specifically into the Saudi market. We are already taking the necessary steps toward this endeavor. ✖

Hamoud Rashid Al-Tobi has over 20 years’ of experience of working in complex assignments and leading organizational transformations with drive for diversification and growth. He graduated from the University of Manchester – UK after completing his university and postgraduate studies in the field of software engineering. He started his professional career as a teaching assistant in the University of Manchester and then joined Petroleum Development Oman (PDO). In 2014, he joined Al Shawamikh Oil services SAOC and led the company as CEO for over six years. In 2020, he joined Galfar Engineering & Contracting SAOG as CEO.

Despite reduced spending on public projects, Galfar maintains a healthy orderbook

Celebrating 50th anniversary

Largest construction firm in Oman, one of the biggest in Middle East

Hamoud Rashid Al-Tobi CEO, GALFAR ENGINEERING & CONTRACTING SAOG

BIO

One of the largest corporates and publicly listed companies in the country, Galfar Engineering & Contracting SAOG has operations in various sectors such as oil and gas, infrastructure, civil, utilities, and services.

MAKING a contribution

Hempel is one of the world’s leading manufacturers and suppliers of protective, marine, and decorative coatings and is set to start producing in Oman directly.

Employs latest technologies for online shipping and digital portal

Goal to be carbon neutral globally by 2025

What are the defining features of Hempel’s operations in Oman?

Protective coatings make up 26% of our overall turnover, our decorative coatings and paints are about 37%, and the remaining 25% comes from the marine sector. We are a global leader in technologies in the marine industry along with many innovative products in the Decorative and Energy sector. In Oman, we focus on three specific segments. One is the Marine segment, and we employ the latest technologies that contribute to substantial fuel savings for vessels. From a sustainability point of view, this not only reduces the carbon emissions of vessels but also the consumption of fuel. We also supply innovative solutions to the oil and gas industry, where we have a strong position in the market of around 35%in Oman. For decorative coatings, we recently acquired Khimji/ Permoglaze Paints in order to strengthen our position in the decorative segment and to be able to produce in Oman and contribute substantially to the Omani economic environment.

What steps is Hempel taking to integrate environmental excellence into its business strategy?

Andrea Negri COMMERCIAL MANAGER, HEMPEL

What innovative technologies are you currently exploring and employing in your operations?

We are exploring some smart paint that provides the user with information about the condition of the paint by introducing microchips into the paint. We are looking at how to enhance our service segment in order to provide better and more cost-effective services to our clients. We are looking into using drones and robotic equipment for on-site inspections so we can do away with scaffolding and other additional costs to our clients. From an innovation standpoint, we are also looking into moving more into water-based products. Within our organization, we have a growth hub, which is basically a brainstorming basket where each employee can contribute with creative and innovative ideas that can be developed by Hempel.

Where would you like to see the company in the year ahead?

BIO

Andrea Negri works for Hempel as a Commercial Manager for Oman. He has a bachelor’s degree from Nottingham Trent University and an MBA in business management from University of California, Riverside. He has more than 12 years’ experience in the coatings segment throughout the Middle East and Africa. After beginning his career with the UN, he later joined Hempel in charge of developing the business in Iraq and the marine business in Kuwait. He was later transferred to South Africa as general manager for Hempel in South Africa. His career later progressed in Saudi Arabia and then Oman.

Globally, the target is to be carbon neutral by 2025. We are looking at raw material supplies, where they come from, and the carbon footprint of these raw material supplies. Many of our factories worldwide rely on solar panels to generate energy. We are looking to move away from solvent-based products to water-based products because solvent-based products emit toxic gases into the atmosphere. We also aim to have zero factory waste and try to recover as much as we can from the waste and reuse it in factories. Also, since we have a large team of salespeople, who travel a lot, we are introducing hybrid cars to the whole team in order to reduce carbon emissions. They cost more, but they are more environmentally friendly and we are willing to absorb all these costs in order to be a leader when it comes to sustainability.

2022 was a transition year for us because we are integrating Khimji/Permoglaze Paints with Hempel Paints Oman. We will combine each other’s commercial and production excellences in order to generate more value for our customers. There will be a huge process of integration and structuring the teams along with investing in the new production unit to bring it up to international Hempel standards. Right now, we have about 11% market share in the Omani decorative segment, and in the coming years, we aim to be at least number two in the market. The reason why we acquired Khimji Paints is because as a we see great potential with the business in the market. The market is also slowly evolving into demanding higher-quality products which is a very positive sign and shows that the market is evolving its standards. There is also a plan to expand in digitalization. We have a portal called My Hempel, and all our retailers are placing orders online. Most of our promotions are digital now, and we want to continue to implement more using new technologies. ✖

BIO

Mustafa Behlim is a well-known architect in Oman who established Kadri Consultants in 1985. He is a silver medalist and a graduate of architecture from IIT Kharagpur (Indian Institute of Technology). He then went on to complete three master’s degrees from Ohio State University (USA) in architecture, city and regional planning, and transportation. His career started off as a Graphics design teacher at Ohio State University and he then went on to work for the Ministry of Transportation in Saudi Arabia. In 1984, an opportunity came his way to head an architecture office in Oman. In 1985 he moved to Oman and has been here since.

Nasser Al Rajhi VICE-CHAIRMAN, AL RAJHI GROUP OF COMPANIES

Can you provide an overview of the company’s main activities and some of its major highlights in the past year?

Al Rajhi Group of Companies has been a pioneer in the field of construction, ready mix, concrete products, and crusher material since 1987. The group consists of six different companies: Al Sarah, Al Rajhi Ready Mix, Al Rajhi Concrete Products, Al Rajhi Crusher, Al Rajhi Logistics and Transport, and Al Rajhi Trade & Investment.

What are some of the company’s main strengths and competitive advantages?

Our most important partner’s and one of the biggest source of our strengths for us in Al-Rajhi is the trust we gain from our customers. We are proud of this trust in Al Rajhi Group, as our policy since the establishment of the group is to consider every single customer as a business partner. Another reason for Al Rajhi’s success are our employees, who are the company’s in-

tellectual capital. Without them, we would not have reached this position and would not have gained the trust of customers. Another additional factor behind Al-Rajhi’s success is the group’s integration strategy based on front and back integration in production and manufacturing between the group’s companies starting from the production of raw materials to the final product.

What does the future look like with regards to your physical infrastructure?

The company has the facility and capability to produce different kinds of products as per specific customer’s specifications and quantity requirements and these are produced and complies with international standards BS & ASTM and Omani standards. We are committed to providing our clients with the highest possible service available. As an integral part of this process, we have plants in Ghala that serve most areas of the capital and other plants located in Jifnain, Barka, and Suwaiq that are all ready to supply the region. Big developments are yet to come, such as Al Erfan city and many other master plans on the way. ✖

Mustafa Behlim MANAGING DIRECTOR, DESIGN UNIT ENGINEERING

Can you give us an overview of the company and some of its major moments?

Design Unit Engineering is a 37-year-old establishment and a 100% Omani Company. We had started operations in 1985 as an architecture firm with two architects (including myself). As time passed, we seized opportunities and grew adding more services, such as structural, mechanical, electrical engineering, project management, quantity surveying, and, recently, interior design. At our peak, we were a team of 62 architects and engineers, designing some exciting projects in the country. Our portfolio scales from luxury villas to hotels and stadiums. During the pandemic, we adapted to the situation well and focused more on internal processes and procedures, re-engineering the system for the coming future. Some of the major moments for the company were the successful delivery of large-scale projects like the Sohar Palm Gardens and Al Asallah Towers. Recently, we have been working on a few hospitality projects and successfully completed the designs of Park Inn in Muscat and Salalah, Ramada Encore, Tivoli at Muscat Hills, Resort in Al Hamra, and the refurbishment of the iconic Grand Hyatt Muscat.

Our core value has become sustainability, and it sits at the core of our design schemes. We have a huge responsibility in shaping the future of this beautiful country.

What are your strengths and competitive advantages?

Our reputation is our biggest strength and competitive advantage. We have a client who has awarded projects to us repeatedly for the last 20 years, with the total value crossing OMR300 million. As a company value, reputation, sincerity, and honesty lie at the core of our organization. That being said, we have a strong talented team, with every department having its own strength. Our office has worked with clients for third-party value engineering, as they do understand the competency of our team which makes us stand out from the rest.

How important is it for you to promote local talent?

We believe it is extremely important to identify and promote local talent. The youth in Oman have passion and a desire to learn and grow. We see that in the local architects and engineers in our office. We have architects who have won design competitions in the country, which demonstrates their level of talent. Our management is growth driven and ensures that each individual in the organization, be it a local or expatriate, has their defined growth path. ✖

THE PLACE TO BE

Muscat Hills Resort and Beach Club is nestled within the Al Hajar Mountains, a natural haven located within the beautiful Bay of Al Jissah in Qantab. The resort flaunts one of Muscat’s only private beaches across the property with a dramatic mountain range enveloping the sandy coves scattered across the stunning turquoise-hued waters which is home to a plethora of Marine life.

Unparalleled in the Middle-East, the resort is home to an exclusive beach club with its own secluded private beach reminiscing a modern Mediterranean beach club with white décor and minimalist finishing throughout.

The boutique resort features Barasti style air-conditioned huts on the beach with an Al Fresco bathroom and private terraces that offer spectacular turquoise sea views to revive your senses.

The stunning Mediterranean restaurant provides a wide range of authentic dishes from fresh seafood directly from the Gulf of Oman to Mediterranean imported tastes. Additionally, there is a beach bar which hosts Muscat’s finest nights out and events, from birthdays to weddings or regular weekend outings.

The resort offers amenities to please all, with children’s and leisure pool in addition to watersport activities such as dolphin trips, snorkeling, and kayaks. it is Oman’s first dive center and guests can be offered diving lessons and excursions by its own operating Dive Center.

Muscat Hills Resort and Beach Club is located 28 Miles from Muscat International Airport, lying on the edge of Muscat in the secluded and calm waters of AL Jissah Bay providing a getaway from the city within the city.

HOUSE RULES

OVER RECENT YEARS, tumbling oil prices, and later, the economic fallout of COVID-19 perceptibly dented Oman’s hydrocarbon-heavy economy. To this end, the state has massively channeled oil and gas revenues into infrastructure and human resources to inculcate a more diverse economic matrix. It has also has recently introduced appetizing legal reform to stimulate FDI capable of enhancing the expertise of the Sultanate’s industrial base, while rebranding the nation with wider commercial appeal in step with Vision 2040.

GOVERNMENT PROP FOR PROPERTY

As the infected coughed, Oman’s property market felt the pain. Buyer hesitancy and economic sluggishness amid the great lockdown only served to highlight oversupply. The residential sector has borne the brunt, with oversupply in turn weighing down rental and sales prices. And yet Oman's real estate market is on the up again since the COVID-19 applied the brakes to local and global economy alike. Market research indicates that the global real estate market generated revenue of USD9.52 billion in 2021 and is forecast scaling USD14.55 billion by 2030 on a CAGR of 4.8% from 2022 to 2030. Meanwhile, the Sultanate’s residential real estate market is set to post a more lavish compound annual growth rate (CAGR) north of 13% from 2022 to 2027. Official figures put the total traded value of real estate activity at over OMR1.3 billion at the end of July 2022, and the total traded value of property for July alone at OMR213.1 million, up 27.4% MoM. The government has sought to make affordable housing more available through its Housing for All Citizens policy, which has indeed sloshed the market with liquidity. Yet, it has also looked to the foreign investor to do some of the heavy lifting.

PUTTING THE "RESIDENT" IN RESIDENTIAL

The Sultanate’s ongoing Omanization initiative is a push-pull affair, in so much as while targeting a more localized workforce, direct foreign investment is still a tangible economic requirement in realizing Vision 2040. Bear in mind here that the expatriate community accounts for around 40% of Oman's population, and by extension, a huge chunk of residential demand. Yet, this valuable market declined by 15% in the first year of COVID, deflating the demand for high-end property. In contrast, the local population continues to rise. A remedy

to this dilemma was swift in arriving, as the government introduced a fresh ownership scheme allowing foreigners to purchase diverse property classes beyond the integrated tourism complexes (ITC) traditionally available. The way round this, too, is simple, namely the granting of residency with a duration contingent upon the amount invested in the market. Rather like the way in which countries have so-called strategic sectors that are exempt from privatization, the residency offer is extended to all but some select areas of the country. Yet, the scheme overall promises to serve the interests of investor and developer alike. What’s more, as the purchase of more affordable property in the ITCs is still available to the resident, the new scheme is not simply the same deal in different clothes.

A WIDER PROPERTY SPECTRUM

As announced by the Ministry of Housing and Urban Planning, those who opt to purchase property valued at between OMR250,000 and OMR500,000 receive a five-year residency visa, while those with property valued above OMR500,000 receive a 10-year document. The latter option is particularly appealing given that a 10-year residency visa holder is at liberty to invest in industrial and commercial, as well as residential assets, while their five-year counterparts are confined to residential assets alone. This could serve the aforementioned ambition of shoring up a diversified economy of highly specialized industries, as well as benefiting the property market itself. Ultimately, long-term ownership instills greater confidence in making further capital investment across the entire industrial matrix, all to the benefit of the wider economy. Simply put, capital expenditure by a resident on, say, an industrial plant or logistics facility, inevitably relies on local firms and workforce to get it built. Around that project there subsequently arise local stores, health facilities, and so on—all boosting in-country value. Given the expanded playing field afforded the investor, common sense says that the dividends are there to be reaped. The consensus seems to be that the upper, 10-year residency option offers the greatest all-round potential. Many businesses may well indeed opt to buy property to hedge themselves against future rent hikes. Others, incentivized with a whole decade, will likely ponder capital investment to expand their business, creating jobs and revenue for state coffers. ✖

In its drive for economic diversity and employment generation, the government of Oman has considered ways to attract foreign investment in diverse assets and is banking on residency to contribute some fuel.

A coastal road pictured in the Musandam governorate

SPECIAL FOCUS

ver recent years, the logistics sector has gained a special focus from the government due to its potential and the geostrategic location of the country. Given the political uncertainty in the Middle East, Oman offers safe passage to some of the world's most important trade lines. Thus, Oman has a unique opportunity to become the logistics gateway for GCC consumers and a key hub between Europe and Asia. The government of Oman is taking it upon itself to promote Oman as the region's leading logistics hub through infrastructure investments that enhance national logistics development plans, economic diversification, and increased trade with GCC, Asian, and African nations.

Among the many initiatives that are being developed in the sector, fishing is leading the demand for cold chain logistics. As a result, Oman is facing a steady growth in demand for refrigerated trucks with increasing demand for frozen foods and ready-to-eat meals. The need for special care together with the developing standard of living of the urban population has led the food and bever-

age sector to become the largest end-user in the industry.

However, the greatest bet in this sector continues to be the ports. While the road, air, port and rail sectors have all been prioritized for growth by the government, it is the ports sector that has benefited the most from external investment, especially the Port of Salalah, Port of Sohar, and Port of Duqm. To attract growth to the port areas, the government has offered a range of business incentives including 100% ownership, low share capital requirements, corporation tax breaks, a single license window, and lower Omanization requirements as well as a favorable customs framework. Likewise, cooperation between the different ports, special economic zones, and free zones has been encouraged. According to Keld Mosgaard Christensen, CEO of the Port of Salalah, their focus in the coming years is to grow their gateway volume, namely cargo that comes in and out of the port. That is linked to initiatives with Yemen, the free zones, and the airport and will further strengthen their collaboration with the other free zones and ports in the country. ✖

new SEZ ON THE BLOCK

The Special Economic Zone at Duqm (SEZAD) is the largest of its kind in the region and underpins much of Oman’s greater economic ambition.

Can you tell us about Duqm’s most prominent characteristics and some of the highlights of the past year?

Duqm is a multi-economic city that covers around eight zones with heavy industry, an airport, and a fishery. Also, we are considering an area dedicated to AI. It is a huge area that is one of our key advantages as we can readily accommodate all business types. Construction started 10 years ago, and the projects are phased depending on the business model. We have now delivered the most critical part of the projects. They will guarantee that Duqm is well connected to both regional and global markets. Additionally, there are massive roads and highway projects ongoing in Duqm. Moving into 2023, we will see new strategic projects commissioned, including the refinery. We will have the capacity to handle all types of liquid material as the strategic tank farms also come online. Meanwhile, the container terminal will also be operational. Many people are moving to Duqm. And as we enter the project's operational phase, there will be a great deal of traffic.

What incentive packages do you extend to attract residents to the area?

We have been generous when it comes to fiscal incentives. Today, we are providing gas, which is a key challenge in Duqm. We are also looking at offshore banking, which will help provide considerable leverage in connecting the shipping industry to emerging markets in East Africa. We need investments in energy and funding. And galvanizing these areas through fiscal incentives will activate Duqm as a multipurpose economic zone accommodating a diversity of businesses.

What are some of your competitive advantages?

tors because they see the realization of large-scale projects that cannot be accommodated anywhere else. The most critical factor, however, is that Duqm is probably the first project in the region to anchor renewable energy projects. This has been committed as part of the decarbonization of assets. In fact, Duqm is destined to become the main carrier of clean hydrogen to global markets.

Apart from renewable energy and decarbonization, what are you doing in terms of green practices. When it comes to construction, how do you preserve the natural environment?

We have a clear mandate and a defined policy regarding the environment and sustainability management. We are looking forward to achieving Net Zero by 2050, and we are setting those compliance measures today in Duqm. Besides, we are looking into creating the right fundamental infrastructure to facilitate the vision. I think that setting rigorous and aggressive targets for certain industries, by decarbonizing their current assets from today, will introduce the right measures. Industries will try to fit into the line, regardless of the industry's nature.

What are the prospects for utilizing AI?

BIO

Ahmed bin Ali Akaak is the Acting CEO of SEZAD. He previously worked as advisor to the Minister of Transport for Ports, as well as Group Chief Marketing Officer at Asyad and Deputy CEO of the Port of Salalah. He has a degree in planning from the US and a master’s in HR management.

One of the unique factors of Duqm is its proximity to natural resources. In addition, it is by far the largest economic city or free zone in the region. On top of this, Duqm sits in a peaceful area free of political turbulence. Stability is a key advantage for retaining our investors within Duqm. Additionally, it is situated in the center of the country with ready access north or south through a comprehensive transportation matrix. This is promising for inves-

Many factories are present within Duqm because of the possibility to achieve many things in one location. We have an 18km zone for AI. In Duqm, there are also three-dimension houses that we call airspace settlements where people can run simulations. Duqm has also become the R&D area for many universities. And what’s more, we have an economy geared toward innovation, with teams and committees in place dedicated to it. We give people the freedom to test, think, and explore future scenarios that cannot be tested beyond Duqm.

What are your expectations for the short term?

Now that we have accomplished key projects we need to ensure that we optimize and expand on them. We must ensure that we anchor investors to guarantee proper national positioning. This will create jobs and technology for the country, and we are resolutely advancing toward this. ✖

Ahmed bin Ali Akaak ACTING CEO, SEZAD

SEZAD is the largest special economic zone in the Middle East

well-oiled MACHINE

ASYAD Ports has successfully improved the efficiency of logistics services in Oman by transforming its ports into a one-stop shop where clients and operators can find services and facilities for all types of goods.

Ahmed Al Abri CEO, ASYAD PORTS

What role do ports play in the logistics sector?

The ports pay a pivotal role in ASYAD’s integrated logistics holistic offering. their infrastructure, superstructure and management systems are at the readiness levels needed to fulfill their essential role. They function as essential enablers of trade, driving growth and continually presenting active platforms for the aspired innovation to further empower the future of the logistics sector. The ports offer a full range of handling and offloading capabilities and solid infrastructure that enable handling imports and exports for various cargo vessels. These capabilities are utilized through the close cooperation with leading logistic companies to provide client-centric tailored solutions that ensure the smooth and efficient operation of supply chains. We also work diligently to improve the efficiency of logistics services by transforming our ports to a one-stopshop where clients and operators find services and facilities that can accommodate all types of goods that including loading and discharge, storage, government clearance facilities and other essential services to ensure ease and growth of business. ASYAD Ports recognizes the vital role of the private sector ranging from major corporations to SMEs.

Why are ASYAD ports particularly expected to have an exceptional contribution to trade and foreign investment?

High-performance ports are innately economic enablers that attract investment and fuels trade and commercial activity. The optimal comprehensive and reliable services and facilities that are customer centric support supply chains efficiency and investment growth. Ports and terminals are one major vertical in ASYAD’s integrated logistic offerings along with the

shipping, logistic services, and free zones, which present grounds for safe ventures that benefit from ASYAD Group’s integrated logistics ecosystem.

ASYAD Ports have developed significantly over time. What are the recent additions made to improve their capabilities?

In the Port of Duqm, ASYAD Ports Duqm (ATD) was created in partnership with Port of Duqm Company, where ASYAD Ports holds the majority of the shares. The company operates and manages three berths designed to accommodate the largest vessels. These berths include a general cargo berth, a bulk cargo berth, and a RORO berth. These terminals support the Duqm Economic Zone Captive market growth and the ever-growing maritime traffic and shipping operations. Khazaen Dry Port (KDP) is the first dry port in Oman, and it commenced its operations in late 2021, another milestone for ASYAD Group. The Port of Suwaiq expansion is another major project that, once completed, will elevate the port stature to be a major multipurpose port essential for increasing direct imports and export to and from the country.

What are the characteristics that make each port unique in the country?

Ports are trade gates into the country, and they are platforms for investment and growth. There are many similarities between them. Each port does, however, contain areas of focus and can contain activities that differentiate them from others. Sultan Qaboos Port, for example, is the main cruise terminal in Oman and will continue its role to support this important activity which many SMEs thrive on. On the other hand, ASYAD Terminal Duqm is the multipurpose gateway sup-

porting handling operations of all general, bulk and RORO cargos. The infrastructure, superstructure, and competitive incentives are main drivers provided to for businesses success and growth. Meanwhile, Khazaen Dry Port is the key enabler for Khazaen Economic City to anchor customers in the city, making it competitive in attracting investments. Being an inland port, it is a vital link between seaports and industries. It drives trade flows to grow and plays a critical role in reducing const and enhancing efficiencies. Port Suwaiq supports general cargo handling but has been the focus of the country during the pandemic, playing a major role in food security by creating an easy link for trade with regional countries. In addition, ASYAD Ports utilizes the location of Port of Shinas to handle Ro-Ro cargo and livestock. ✖

BIO

Ahmed Al Abri is a senior executive with extensive experience in processes demanding critical business drivers in the global maritime industry. He started his career as a junior naval architect with Vosper Thornycroft Shipbuilding yard in Southampton and later spent years with the Omani Navy. He gained first-hand knowledge of shipbuilding and extensive maritime experience from participating in major new projects in the UK, Singapore, the Netherlands, and Romania. He later became deputy CEO of Oman Drydock Company in Duqm for three years before becoming CEO of ASYAD Ports, Oman’s Ports operations and management company.

Image: Kumar Studios

room TO GROW

One of the major gateway ports into Oman, Port of Salalah is looking to expand further, purchase more equipment, and improve its efficiencies to remain competitive in the future.

Port of Salalah ranked 2nd-most efficient port globally

Significantly reduced environmental impact, aiming for zero-carbon emissions

What are Port of Salalah’s main operations in terms of volume and productivity, and what have been some of its major highlights in the past year?

Port of Salalah is predominantly a major regional transshipment hub for east and west traffic and one of the gateway ports for Oman in terms of containers. We also have a general cargo business where we handle up to 18 million tons of which the major volume is exports of limestone and gypsum apart from break bulk and liquid bulk. That is the main breakdown of our activity. When it comes to container efficiency, we have what we call as our “way of working” within the port in terms of how we handle containers and discharge and load vessels. When running a transshipment hub, it is all about minimizing the port stay for vessels so you can send the vessel back into the network within the shortest possible time. We have been particularly successful at vessel turnaround, though there is always room for improvement. We are constantly seeking excellence in terms of our turnaround and so on.

What opportunities did you see in the Port of Salalah when you joined?

Keld M Christensen CEO, PORT OF SALALAH

go terminal automation system in early 2022, and there is a container terminal automation project ongoing currently that includes gate automation that should be ready by 1Q2023. We operate in a lean environment. The value of a transshipment hub lies not in the equipment, but in the management of the container yard, because the containers practically never leave the port. They stay there and are transshipped to other feeder vessels and destinations.

What is the port doing to introduce eco-friendly technologies and green logistics in Oman?

BIO

Keld M Christensen was appointed CEO of Port of Salalah in September 2022.

Prior to that, he was managing director of APM Terminals Poti in Georgia. He joined AP Moller-Maersk in 1997 and later worked outside the company for several years for ISS A/S and the Danish foreign service as consul general in Istanbul, before he moved to Poti in 2019.

Right now, we have an expansion project where we are upgrading the container terminal capacity and capabilities by adding another 10 ship-toshore (STS) cranes. We will be replacing some of the existing cranes due to its limitations to handle the very-large-container vessels that come in, because vessel sizes have increased over the last 20 years of operation. We need to be up to speed with having the state-of-the-art equipment. This expansion project is one area of opportunity. Then, we have a concession with the government that expires in 2028 that is up for extension currently.

How is the Port of Salalah doing in terms of implementing technology and making port operations successful and financially feasible?

On the innovation side, we place heavy focus on automation. We have implemented a general car-

We have an ambitious policy around sustainability. We are a heavy consumer of energy and are trying as much as we can to minimize that. It is not like we can put up 50 wind turbines into Salalah and be self-sufficient in terms of electricity. Renewable energy has to be connected to the public grid, though there are definitely huge opportunities within solar and wind. Oman is one of the greener countries in the GCC, and hopefully, we can benefit from that and help create a greener logistics sector. We have to move toward becoming completely sustainable. Fortunately, we have global consumers who are much more demanding in terms of sustainability and other areas. We have a clear roadmap on reaching overall net zero CO2 emissions and becoming a green terminal by 2040.

How do you see the port expanding in the next year or two?

Expansion project of the container terminal is scheduled for 2023-2024, which will increase the container handling capacity from current 5 million TEUs to 6.5 million by 2025. Our focus in the coming years is to grow our gateway volume, namely cargo that comes in and out of the port. That is linked to initiatives with Yemen, the free zones, and the airport and will further strengthen our collaboration with the other free zones and ports in the country. ✖

CAPITALIZING on potential

Reggy Vermeulen CEO, PORT OF DUQM

Where does Port of Duqm stand in terms of infrastructure development, and what are its services and operations?

The Port of Duqm is working to be recognized globally as the preferred multi-purpose port in the region, with an innovative logistics hub.

The first phase of the Port includes the liquid berths, as well as the commercial quay, which includes the container terminal with initial set of equipment including ship-to-shore cranes as well as yard equipment which are under commissioning, the Ro-Ro terminal, the project cargo and break-bulk terminal, and the dry bulk berth. This is fully completed now and has been handed over to the Port for operations. This is in addition to parts of the port complex that are already operational, such as the dry dock (operated by ASYAD) and the government berth that have been operational for a few years now. Therefore, there are two mega development phases. The first phase involves basin number one. Phase two is a second basin that we have yet to commence work on, as it is a part of future expansion plans, when phase one is nearing its full capacity.

What are Duqm’s competitive advantages and strengths over other ports?

BIO

Reggy Vermeulen has been CEO of Port Duqm since 2015. He was also appointed Honorary Consul of the Kingdom of Belgium to the Sultanate of Oman in 2020. Prior to his current position, he was commercial director of Port of Duqm for three years. Before joining Port of Duqm in 2012, Vermeulen was CEO of the Port and Industrial Zone of Haiphong in Vietnam and was awarded a certificate of merit from the city of Haiphong for his outstanding contribution to the development of the city. He started his career as a consultant at Deloitte Consulting. Vermeulen holds a master’s in economic sciences and administration and a bachelor’s degree from the University of Saint Louis in Belgium and a master’s from the Louvain School of Management, Catholic University of Louvain (UCL).

Our focus is quite different from the other ports in Oman—the main focus of Salalah is transshipment of containers, and the main focus of Sohar is B2C cargo, as everything consumed locally within Oman enters via the Port of Sohar, which has a well-established industrial zone around it and it serves the northern part of Oman where population density is relatively higher. For the Port of Duqm, it is slightly different—we either already cater to or are poised to cater to—the oil and gas upstream industry, which involves handling all supplies that are required to support the pumping of oil from the ground. Furthermore, we are now also poised to also support the oil and gas downstream industry, which is a new undertaking for us, as the Duqm refinery project, which is a new facility with a capacity of 230,000bpd, is nearing completion. Besides, we are

supporting the fishery industry as Duqm and its surrounding catchment areas are rich in fishery resources. The Fishery Department of Oman (FDO) is focusing predominantly on Duqm for the long term. FDO’s fishing fleet is currently calling at the Port of Duqm to discharge their catch and port of Duqm’s container terminal is being utilized for containerized export of fish and fish products. A canning plant is also being constructed to support the high growth industry. In addition, Duqm and its surrounding areas are rich in industrial minerals and currently limestone and dolomite are being exported via Port of Duqm. Furthermore, we have interesting new development prospects coming up in the area of green hydrogen, where the government of Oman is inviting private sector participation/investment in developing the industry, via a competitive tendering route, being organized by the state-owned entity Hydrom and regulated by the Ministry of Energy and Minerals. Port of Duqm shall play a major role in development of this new industry, in and around Duqm, and export of green hydrogen and its derivative products via the liquid berths of Port of Duqm. Besides, capitalizing on the immense potential of Duqm in the green hydrogen space, Port of Duqm is supporting the development of large-scale green steel industry at Duqm, where companies like Jindal Steel have announced plans to set up their new green steel production facility at Port of Duqm. The steel industry globally is one of the largest emitters of carbon dioxide on the planet, and the project is a major step forward in decarbonization of the steel industry. Besides Jindal, Vale has also announced its plans to establish a mega hub at Port of Duqm and decarbonization solutions for steel making. We are very excited about all of these mega projects, and they are fully aligned with the national ambitions of Oman, as well as our vision of achieving sustainable growth as a green port. ✖

HIGH AND DRY

Oman’s geographic location makes the importance of its logistics sector a no-brainer, and an innovative new port is increasing the appeal.

THE IMPORTANCE OF Oman’s Khazaen Dry Port project its best viewed within the wider context of a major economic rethink. Historically, Oman, like its regional neighbors, has predominantly been an oil-based economy. The black stuff had accounted for 85% of revenues until the oil crisis of 2016. The new conjuncture prompted the familiar drive for economic diversification. And the massive undertaking involved focused squarely on the three core sectors of logistics, manufacturing, and tourism.

OMAN’S LOGISTICS STRATEGY 2040

Our focus here is the first of the above three sectors, for which the state established the Assad group, Oman’s global integrated logistics service provider, to oversee the nation’s logistics enterprises and champion sector growth. A USD4 billion entity, Asyad was launched on an initial USD20 billion state infrastructure wave. Very much the engine of Oman's ambition to regain regional trade leadership, this economic enabler fosters in-country value creation and supply chain efficiency. In fact, Asyad, together with the Ministry of Transport, Communication, Information and Technology (MTIC) and the Implementation Support and Follow-up Unit, formulated the Sultanate of Oman Logistics Strategy (SOLS) 2040. This is a parallel undertaking to the wider Vision 2040 and seeks to render the Sultanate a leading global logistics hub. By that year, the goal is to see logistics contribution to GDP chasing the heels of hydrocarbons. The sector should by then have created around 300,000 new jobs and scaled the top-10 of the World Bank’s Logistics Performance Index. Consistent success thus far is borne out by Oman’s 43rd place ranking on that Index in 2019, above the previous year’s 48th, and 62nd back in 2012.

ECONOMIC POWER ZONE

Fast-forward and we arrive at a cornerstone of Oman’s economic ambition for the 21st century, Khazaen Economic City. Billed as a world-class integrated economic city, its blueprint nestles logistics, light industry, and commercial enterprise on the same turf to streamline efficiency, develop high-tech manufacturing, and generate economic value. On an area of 51 million sqm in Barka, a coastal province in northern Oman, and connected by the Muscat-Batinah Expressway, the economic city is Oman’s preeminent public and private partnership (PPP) land development project.

Established as an integrated logistics and industrial hub Khazaen features a designated free zone, as well as residential and commercial zones. High-end infrastructure is twinned with competitive incentives investors seek, such as appetizing land lease rates, and one-stop shop and investor assistance to slash red-tape. Its location alone, with excellent access to Sohar Port, Muscat Airport and Muscat City, merits commercial interest. Investors are taking advantage of, among numerous other incentives, 100% foreign ownership, and the free trade agreements in place with the GCC, the US, Europe, and Singapore. Indeed, investor demand to localize their operations has been significant enough to require the construction a labor village on an area of 55,000sqm.

DRY COMPONENT OF A LIQUID SECTOR

The Khazaen integrated economic city is also home to Oman’s pioneering dry port, a central pillar of the logistics industry, established in 2021 and operated by Asyad. The port delivers partial shipment solutions at the nation’s various commercial ports and land ports.

The dry port has access to Oman’s most densely populated region, and hence its future workforce as the sector evolves over time. Meanwhile, convenient access to the country’s burgeoning commercial and industrial hinterland, not mention the wider GCC is ensured by Oman’s fresh USD10 billion network of highways and a forthcoming national rail network investment of twice that.

INTERNATIONAL REPUTATION SECURE

Khazaen Dry Port undertakes custom clearance, handling and storage of containers and cargo movements to maximize efficiency once shipments have arrived at Oman’s seaports for global distribution. In 1H2022, it launched the partial shipment solutions service through the commercial ports and land ports in the Sultanate of Oman. According to CEO Juma Ibrahim Al Maskari, ‘…the service of partial

shipment solutions will provide support for various industries, as well as SMEs by providing high-quality logistic solutions with minimum cost.’ In so doing, it contributes to Oman’s overall competitiveness while enhancing, ‘…its position on the global trade map.’ In April 2022, Khazaen Dry Port inked a service agreement in Oman with 150-year-old global logistics giant DB Schenker for its use of the port’s infrastructure and services to enhance the servicing of its own key clients, mainly oil and gas sector players. Testament to the port’s quality offering, the agreement includes the handling and temporary storage of sensitive cargo and shipments that demand special processing.

Oman’s sole dry port is a signature element of on logistics drive on which the Sultanate is banking future economic growth. It’s proving to be a lucrative investment. ✖

taking TO THE SKIES

With the local aviation sector rapidly, OAA plays a key role in not only training new pilots, but also ensuring they remain up to date in terms of new technologies in the sector.

Can you give us an overview of OAA’s achievements since its inception?

OAA is a training organization that provides aviation training, mainly for pilots. The academy was founded in 2018, and it has been through different phases. During the pandemic, when activities slowed down, we had to look at many things from a different perspective and develop future strategies of how the business would move forward, taking into consideration the numerous factors that affect us. The pandemic provided important lessons for all industries, especially aviation. OAA has been through many phases, from the establishment phase, when the infrastructure and facilities were conducted and built, to the approvals stage, which are related to the approvals from the Omani Civil Aviation Authority and the European Aviation Safety Agency (EASA). We have trained almost 100 students and expect to have more students join the academy in the coming years. In addition, OAA, as a training organization, seeks to expand to also provide training to the military. We would also like to expand regionally in the future. We need to have a diversity of training that can sustain us in difficult times, given that the aviation industry is extremely susceptible to many developments, whether locally, or geopolitical, or so on.

What innovative technologies are you currently exploring or deploying in your operations?

In the aviation industry, technology makes a significant difference. Overall, we are talking about technologies that are implemented in new aircraft that pilots need to know about. There is also a great deal of technology that goes into training. This is something that we are looking at carefully. The aviation sector’s training devices are highly controlled by the Civil Aviation Authority whereby the equipment must be certified to certain levels and meet certain demands or criteria. In addition, we are exploring new technologies such as VR

training simulators that are new to the market but growing rapidly. Another learning from the pandemic is to develop more efficient online training systems. With technologies, we can develop better and more attractive ways of delivering training programs rather than using the normal methodologies in conventional training. Together with our international partners, we provide our students with materials and state-of-the-art technology for various training purposes. We are definitely focusing on technology and new innovations in the market while taking into consideration our own competitive advantages compared to other training organizations in the region.

Where would you like to see the OAA in the short and medium term?

As a newly established organization, we seek to position ourselves in the market, which is highly demanding for the aviation sector. The aviation sector is also growing rapidly. Our vision of growth is for OAA to be a hub providing the best and highest-quality training in the region. We would like to position ourselves as one of the leading training organizations in the aviation sector in the region. Looking at the markets surrounding us, we have many competitive advantages that place us in a great position, such that we can establish ourselves within the region in the next five to 10 years. Part of this includes a larger investment in human capital, which are our main assets. In parallel, we are working closely to develop local expertise and train them to the level and standards that we want them to be. In the long term, they will be able to gather extensive expertise over time. The market is promising, and we foresee growth in airlines. Despite the pandemic and other challenges in the airline industry, there continues to be demand for pilots, and we expect the aviation industry to pick up soon. ✖

Seeks to position itself more in the market

Expects increasing demand for pilots in the aviation sector

OAA is an aviation training organization mainly for pilots

Abdullah Bin Murad Al Balushi CEO, OMAN AVIATION ACADEMY (OAA)

soaring HIGH

Qatar Airways has emerged as a leading airline in not only the region, but around the world as a result of its industry-leading interiors, award-winning service, and innovative customer experience concepts.

Dersenish Aresandiran VP COMMERCIAL– MIDDLE EAST, CAUCASUS AND PAKISTAN, QATAR AIRWAYS

Qatar Airways Group announced record profits in its 25-year history for FY2021-2022. What have been other major highlights in the past year?

In its 25th year of operations, Qatar Airways Group has announced a record profit of USD1.54 billion for FY2021-2022. It was the highest profit in the global airline industry for the same period, 200% above its highest annual historical profit. Overall revenue increased to QAR52.3 billion, up 78% compared to 2021 and a remarkable 2% higher than the full financial year pre-COVID (i.e., 2019-2020). Passenger revenue increased by 210% over the last year, due to the growth of the Qatar Airways network, increase in market share, and higher unit revenue for the second financial year in a row. Qatar Airways carried 18.5 million passengers, an increase of 218% over 2021. This profit is not only a record for Qatar Airways Group, but also a record among all other airlines that have published financial results for this financial year worldwide. Qatar Airways Cargo remained the leading player in the world as its revenue experienced an impressive growth of 25% over 2021 with the growth in cargo capacity of 25% annually. These record earnings are the result of decisions made during the pandemic to expand the Qatar Airways’ passenger and cargo networks, with a more accurate forecast of the global market recovery, building further customer and trade loyalty, and product excellence, combined with strong cost control.

What strengths and competitive advantages differentiates Qatar Airways from the rest of the competitors in the region?

A multiple award-winning airline, Qatar Airways was voted Airline of the Year by the international air transport rating or-

ganization, Skytrax. The airline continues to stand alone at the top of the industry, having now won the main prize for an unprecedented seventh time (2011, 2012, 2015, 2017, 2019, 2021, and 2022). Qatar Airways operates flights to over 150 destinations around the globe from its home and hub, Hamad International Airport (HIA). Around 80% of the world's population is within a six-hour flight from HIA, positioning the airport as the gateway to Qatar, the Gulf and to the world. Qsuite, a patented Qatar Airways product, features the industry’s first-ever double bed in business class, as well as privacy panels that stow away, allowing passengers in adjoining seats to create their own private room, a first of its kind in the industry. The Qsuite seat layout is a 1-2-1 configuration, providing passengers to the Middle East and beyond with the most spacious, fully private and comfortable business class product in the sky. Additionally, Qatar Airways has become the first global airline in the world to achieve the prestigious five-star COVID-19 Airline Safety Rating by Skytrax. This follows the success of HIA as the first airport in the Middle East and Asia to be awarded a Skytrax five-star COVID-19 Airport Safety Rating. These awards provide assurance to passengers across the world that the airline’s health and safety standards are subject to the highest possible levels of professional, independent scrutiny and assessment.

How big of a role does innovation play in Qatar Airways operations and what innovative technologies are you currently exploring and deploying?

As we embark on a new era of aviation, we will continue to innovate, by streamlining processes, developing our people, radically rethinking the way we use technol-

ogy and putting the customer experience at the core of everything we do. Whether passengers are checking in, dining in the lounge, or relaxing on board their flight, regardless of their class of travel, we are determined to create memorable experiences that stay with them well after they travel. Now more than ever, we need to bring the joy back to travel through every step of the customer journey, including enticing the world to stopover and visit Qatar. Through industry leading interiors, award-winning service, and innovative customer experience concepts, we are reinvigorating our passengers’ excitement to fly with us once again. ✖

Dersenish Aresandiran is a seasoned business leader with over 20 years of experience in sales, marketing, and revenue management. Since rejoining Qatar Airways as Vice President for Middle East, Caucasus and Pakistan Regions in 2021, he has played a vital role overseeing the airline’s commercial success and growth in the region, including the rapid expansion in key markets such as Saudi Arabia, Kuwait, Pakistan, and the UAE.

BIO

AUTOMOTIVE

By ensuring their products not only meet the demands of customers, but also feature new technology in line with the energy transition, automotive companies have seen steady success even in difficult years.

Ibrahim Albalushi CEO, KARWA MOTORS

KARWA PROJECT started as an ambitious idea in 2014 and began its journey like any other project, as it went through stages of design, development, construction and implementation, and now it is beginning to emerge as the most prominent project in the region. Karwa started the manufacturing operations in November 2021, we launched our first Karwa-branded bus, called Salam, despite the challenges that the team faced during the pandemic. Karwa deployed the first bus made in Oman in Expo Dubai 2020 to promote it. It uses the Euro-five clean diesel, unlike the one we have in Oman. We also won a contract for 100 buses for FIFA of the Karwa models, and all buses were delivered to Qatar as per the agreed schedule. Karwa opened the manufacturing plant at a port in Duqm as it has the right facilities, services, and, most importantly, ports and the duty-free area which adds high value to Karwa and other investors as well. As the size of Karwa facilities are huge and designed to maintain a mass volume of production and apply the economy of scale, Karwa started the engagement with global players in a partnership concept to open markets in the US and Europe.

THIS INITIATIVE started two years ago when my partner and I saw the growing trend in electric cars around the world. We came up with a new car concept that will shape up the car industry in a new way, providing unique high-value cars at affordable prices. We initially started by researching the market, looking at the different gaps in the car industry in and out of Oman, as well as what consumers really want and need in a car. We came up with an entire plan, starting with the sports car segment and expanding toward SUVs and sedans. Even during the design and prototype stages, we continued to take in feedback from all segments. That lead to this final product—a modern and futuristic design based on people’s needs. This helped us reach and penetrate the market quicker. Since we launched, within a short period we managed to sell all of our initial production and even have a waiting list. We are working with many different local universities as well as local talents. We aim for the car to empower drivers throughout the journey, including its technologies, design, and power, to give them that extra confidence they need in their everyday life.

Shaun Michael CEO, MERCEDES-BENZ OMAN

ZAWAWI TRADING COMPANY has been representing Mercedes-Benz passenger cars in Oman for 50 years and operates branches in Muscat, Sohar and Salalah. The dealerships stock a full range of vehicles from family cars to sporty models in the AMG range. We offer luxury sedans, such as the A-Class, C-Class, E-Class and S-Class, as well as hatchbacks, SUVs and crossovers, coupes, cabriolets, and even the multi-purpose vehicles. With electric vehicles soon to take the lead in the car industry, we look forward by next year to launching our range of EVs, such as the EQA, EQB, EQE, EQE SUV, EQS, as well as the EQS SUV. Mercedes-Benz is one of the most trusted brands around the world. It was the only European brand to appear in the top 10 of the ‘Best Global Brands 2021’ according to Interbrand and had been in the top 10 since 2018. This reputation for excellence extends worldwide and it is no surprise that the legacy of luxury and comfort has captivated drivers across Oman. The sleek design, luxurious finishes and supreme attention to detail of every Mercedes-Benz vehicle are all pillars of the brand, and one of the main reasons Mercedes-Benz endures to this day.

Haider Adnan Al Zaabi CO-FOUNDER, MAYS MOTORS

MAKING a mark

In addition to growing the logistics network in and around Oman, DHL is simultaneously focused on further developing its local team and ensuring their success.

Moustafa Osman COUNTRY MANAGER, DHL

BIO

Moustafa Osman is an experienced manager in the logistics and trade industry, with both high commercial and operations leadership. He counts 16 years with DHL, having worked and lived in Brussels, France, Singapore, the UAE, Bahrain, Algeria, and Kuwait before being appointed Country Manager in Oman. Prior to his DHL experience, he worked in various sales and operations roles in Europe and then joined Exxon Mobil Paris. He holds a double major in international business and finance from Paris Graduate School of Management.

Can you give us an overview of DHL’s operations in Oman?

We started in 1979, and today we have a huge platform and operations in Oman. We have a large warehouse of 3,000sqm, an airplane at the airport that flies five times a day, and about 220 people working with us now. Volumes are increasing, and our operations in Oman in general are well established. We are spread across the entire country covering Salalah, Sohar, Duqm, and Muscat. We have more than 80 trucks and vans, and we cover almost the entire Sultanate. Oman is an important location in our network because it is convenient geographically as well as politically. Our commitment to the country is to invest in a large facility at the airport. It will be larger than the current one, and construction starts in March. With this facility, we are bringing Oman to the global Network of DHL Express global standards to be located in airports similar to the rest of our 220 countries. Other investments will occur in e-commerce fulfillment centers. We will do smaller ones in different cities in Oman. E-commerce is the future, and we want to see this area evolving in the Sultanate in line with Vision 2040.

Do you expect e-commerce to grow further in Oman? Oman is a big recipient of e-commerce shipments, but it is not a producer of e-commerce business. There are no significant fulfillment centers to help boost that. We want to do this here to help SMEs businesses to sell their products online and go global with a robust network enabling them to reach their customers everywhere. Linking that with Vision 2040, logistics has a full schedule for the vision, and e-commerce has a great importance in the logistics plan. Our plan is to benefit from Oman strategic location and making it a small hub serving some of GCC and Africa. Currently, we work with Yemen, Qatar, and in west Africa. We are building a new intercontinental airport to link Leipzig in Germany to Oman then to Hong Kong.

What are some new digital trends and innovations introduced by DHL?

Our processes are 100% digital—starting from pickup service, booking a shipment, or tracking a shipment. Even the call center is digital. We have introduced GIVR technology for our call center. There is also a chatbox facility on all digital platforms i.e., WhatsApp, web browsers, or DHL Express Mobile App. Customers can write their tracking numbers on WhatsApp, and it will provide them with full information. On the other side, we have automated internal systems for electronic invoicing, quotations, and pricing. We offer our customers different apps for customized services, such as the On-Demand Delivery app or the My DHL app. The On-Demand Delivery app helps customers edit the delivery destination. If you go on a vacation today, you can put your shipment on hold or forward it to another country. The My DHL app helps customers get quotations, make a booking, and request for a pickup without interacting with anyone. Payments are also 100% digital. Internally, digitalization is on top of our priorities. It is one of the main four pillars of our “2025 focus,” along with globalization, sustainability, and e-commerce.

What are the company’s main growth priorities for this year and coming year?

Our goal is to keep growing and focus on what we are doing and help the Omani economy to grow. This year is also about continuing our support for health and wellbeing. During COVID-19, we delivered more than 2 billion doses of vaccines. DHL has delivered the largest amount of vaccines globally, and we will continue to focus on health support. Our goal is health and quality areas. We believe in P=GQ—people equal growth and quality. We care about people. We have been nominated as the best employer in Oman, and we are committed to the Omani market and economy to ensure we drive growth for them. ✖

Investing more than EUR7 billion globally on 2030 sustainability program

Digitalization is top priority, along with globalization, sustainability, and e-commerce

Focusing on support for health and wellbeing

An aquaponic farming plantation pictured in Muscat

Image: Monalisa Mukhopadhyay

Industry & Agriculture

FISH & BREAD

The Omani government has created a plan for life beyond oil that emphasizes industry. The sectors that are being especially targeted for growth include manufacturing and tourism. According to Qais al Yousef, Minister of Commerce, Industry & Investment Promotion, “Omani products, from mattresses and fragrances to batteries and power transformers, are enjoying international success. In fact, over the past few years there has been an increase in the number of international consumers actively wanting to buy Oman-made products.”

Going forward, Dr. Saleh bin Said Masan, Undersecretary of Commerce & Industry at the Ministry of Commerce, Industry & Investment Promotion, believes that “digitalization will play a key role in the evolution of Omani manufacturing as industrialists explore new products and new markets as well as prepare for future supply and demand changes and operational risks.”

In an effort to promote the industrial sector as a pillar of the country’s economy to help achieve self sufficiency and minimize imports, the Ministry of Commerce, Industry & Investment Promotion, in partnership with organizations such as Petroleum Development Oman, Madayn, and the Oman Chamber of Commerce and Industry, unveiled a

number of initiatives. The opportunities are also intended to create jobs, improve Oman’s rating in international indices, and boost foreign investment, while diversifying and enhancing exports. Additionally, the agriculture and fishing industries will also be targeted through investments and incentives. The Ministry of Agriculture and Fisheries adopted a number of policies, plans, and programs to promote this sector and achieve sustainable development, including the establishment of R&D centers across the country and the introduction of new farming methods and crops. Furthermore, a growing fleet of vessels will help spur Oman’s fisheries production, as well as contribute to the development of human capital in commercial fisheries and enhance the efficiency and skills of the national workforce through the establishment of Oman’s first floating training center on board a commercial fishing vessel. Fisheries Development Oman (FDO), owned by Oman Investment Authority, has continued to establish joint commitments with prestigious international companies. This joint-stock company acts as a catalytic initiator to develop large-scale projects in the sector, including the development of a commercial fishing fleet, and the operation of subsidiaries for marine fin fish and shrimp farming. ✖

Qais bin Mohammed Al Yousef MINISTER OF COMMERCE, INDUSTRY & INVESTMENT PROMOTION

HELPING hand

BIO

Qais bin Mohammed Al Yousef was appointed Minister of Commerce, Industry & Investment Promotion in 2020. Additionally, he serves as Chairman of the SME Development Authority. Prior to assuming the role of minister, he was chairman of Oman Chamber of Commerce & Industry and CEO of the Al Yousef Group. While heading the chamber, he served as deputy chairman of the Public Authority of Manpower Register and sat on a number of boards and committees. He holds a master’s in business management from the Stanford Graduate School of Business and a BA in economics from Williams College. He has also attended executive development programs at Harvard Business School, London Business School and the John F. Kennedy School of Government, Harvard University.

We have seen a market increase in Oman’s nonoil exports. What do you attribute this to? It is in our DNA as Omanis to travel, engage, trade, and sell. As of the last count, we proudly export to over 130 countries, and our non-oil exports have been rising steadily of late. Exports, for instance, grew by 41% to USD14.7 billion in 2021 up from USD10.5 billion in 2020. This is sizeable by any measure. In particular, our non-oil exports to major markets have grown. India is a good example of this, reaching USD1.2 billion 2021, a jump of 41% on 2020. Exports to the UAE hit USD2.5 billion that is up by 71.3% on 2020, while those to the US in July 2022 alone were valued at USD245 million, the second-highest monthly recording in 10 years. These figures indicate that Omani products—from mattresses and fragrances to batteries and power transformers— are enjoying international success. In fact, over the past few years there has been an increase in the number of international consumers actively wanting to buy Oman-made products. This is squarely down to a strong reputation for quality and value for money that has been built up over time. It is a reputation that we as a nation can and should be proud of. Delving deeper, we also deal with a variety of trade issues ranging from tariff barriers in certain markets to changing standards and regulations. And we pass on this information to local companies, helping to alleviate some of the possible trade bottlenecks they may experience. In fact, whether one is the CEO of a large Omani company trading worldwide or a start-up thinking about exporting, it pays to have a sense of where the opportunities lie.

Following the launch of Oman Vision 2040, the government has rolled out new business policies. How has the international community reacted to these?

The new policies put in place by His Majesty’s government are historic steps tak-

en to ensure the right support is in place for Omani businesses, help them protect and create jobs and secure our economic future. And they are certainly garnering a positive response from the international community. From favorable reports by the IMF to the upgrading in April by S&P Global of our credit rating to BB- with a stable outlook, the first upgrade since 2015. And in November 2021, as Oman participated in its third WTO trade policy review in Geneva, WTO members complimented Oman on its low tariffs and minimal non-tariff barriers to trade. Earning particular WTO praise was the 10% growth in our GDP in 1H2021 as well as new legislation covering foreign capital investment, which allows foreign ownership of up to 100% in almost all Omani economic sectors—privatization, public-private partnerships, and bankruptcy. Such legislation has improved Oman’s competitiveness and led to higher inflows of investment. Importantly, to harness the full benefit of the many possibilities of Oman Vision 2040 we continue to improve the transparency and predictability of our investment framework, streamline procedures related to foreign investors and enhance co-ordination and co-operation between stakeholders, such as host and home country governments, international investors as well as local businesses.

Is green investment on your radar?

Addressing climate change is a major element of Oman Vision 2040 and of course the possibilities and opportunities of the green economy are very much on our radar. Oman’s ports, free zones, and industrial estates are very much driving this and a number of exceptional dynamic projects such as HYPORT Duqm and the Jindal Shadeed - Hydrogen Rise green steel collaboration at SOHAR Port & Free Zone are well underway, already powering Oman toward achieving its recently announced 2050 net-zero emissions target. ✖

With increased support measures for local companies to export more as well as attractive legislation to improve Oman’s competitiveness and attract more FDI, the Ministry of Commerce, Industry & Investment Promotion has seen positive results in a short time.

more TO ACCOMPLISH

Already looking into important areas such as digitalization, nearshoring, and sustainable practices, Oman’s manufacturing sector is well placed to expand its presence further around the world.

bin Said Masan UNDERSECRETARY COMMERCE & INDUSTRY, MINISTRY OF COMMERCE, INDUSTRY & INVESTMENT PROMOTION

International trade is facing challenging times. What are your thoughts on this?

Overall, the value of global trade reached a record level of USD28.5 trillion in 2021, a rise of 25% relative to 2020 and an increase of 13% compared to 2019. During 4Q2021, trade in goods jumped by almost USD200 billion reaching USD5.8 trillion, a new record, while trade in services climbed to USD1.6 trillion. That is a value just above pre-pandemic levels. However, forecasts are being revised. In fact, the IMF has lowered its outlook for global economic growth again for 202223 as soaring inflation and the spillover from the Russia-Ukraine conflict cut into household purchasing power. It now sees world economic growth slowing to 3.2% in 2022 and 2.7% in 2023 compared with 6% expansion in 2021. It is likely that global trade will reflect these macroeconomic trends, with lower-than-expected growth. Even against this complex trade and investment backdrop, Oman has performed extremely well. For example, FDI volume in Oman at the end of 1Q2022 reached USD46.6 billion, a 19% increase on the same period in 2021. Our non-oil exports grew by 41% in 2021 to USD15 billion up from USD10.6 billion in 2020. Despite the headwinds we face, these are impressive results and a testament to the hard work, resilience, and ingenuity of companies and entrepreneurs right across Oman.

What changes do you see in Oman’s manufacturing sector recently?

Going forward, digitalization will play a key role in the evolution of Omani manufacturing, as our industrialists explore new products and new markets as well as prepare for future supply and demand changes and operational

risks. We are seeing Industry 4.0 coming to the fore in our manufacturing sector of late, its adoption accelerated by several new drivers emerging from the COVID-19 pandemic, including supply chain transparency; predictability and flexibility; efficient workspace reconfiguration; increased remote working and training and the flexibility to repurpose production. Another change we are seeing lately, again in part a consequence of the pandemic, is the push to bring supply chains nearer to home. There were signs previously that some large companies were beginning to pull back from globalized supply chains, driven by protectionist trade policies, among other factors as they look to safeguard their operations from future shocks. In this regard, more firms may seek to unwind the gradual outsourcing that saw them shift large portions of their business to lowcost economies. That change in strategy could include regionalizing, localizing or near sourcing more of their operations. It is a change in strategy that Oman is well placed to meet.

With the recently announced 2050 net-zero emissions target, how do you see this impacting Omani businesses?

A green transition presents alpha opportunities for Omani enterprises in areas including, but not limited to, manufacturing, logistics; green buildings; waste conversion; solar and wind energy; and business services. In addition, expanding markets for greener goods and services in other countries will create opportunities for Omani companies to increase exports. Research shows the provision of sustainable products and services bolsters sales growth, market share, brand value and reputation. It is a win-win scenario. The

Omani companies leading the green transition realize it is not about bravery but about the bottom line. It is clear that current trade patterns reflect the increasing global demand for products that are environmentally sustainable. Interestingly, research conducted by the Economist Intelligence Unit, shows a 71% rise in popularity of searches for sustainable goods over the period 2016-20 with continuing growth during the pandemic. This will create new market possibilities for Omani companies, particularly in the cosmetics, pharmaceutical, fashion and food sectors. Consumer behavior plays a pivotal role in driving change and demonstrating care for the environment. Today’s eco-conscious Omani consumers want to live more sustainably. They expect local businesses to play a positive role in society and feel that when it comes to driving positive change, brands bear as much responsibility as government. ✖

BIO

Saleh bin Said Masan was appointed Undersecretary for Commerce & Industry at the Ministry of Commerce, Industry & Investment Promotion in 2020. He is also chairman of the board of the Public Establishment for Industrial Estates. Prior to taking up his post, Masan was an elected member of the Omani Shura Council from 2015-19 and chairman of the council’s Economic & Financial Committee. He is also the former Head of Planning at Sultan Qaboos University. He has lectured in economics at universities in Oman as well as overseas and has published a number of economic research papers in international journals. Masan holds a BA from Sultan Qaboos University, an MA with distinction in development and economic policy analysis from the University of Nottingham, and a PhD in economics from Loughborough University.

Saleh

A SUPPORTIVE environment

The Ministry of Commerce, Industry & Investment Promotion has worked hard to provide investors with a transparent, predictable, and efficient regulatory and administrative framework.

Pankaj Kanaksi Khimji ADVISOR FOR FOREIGN TRADE AND INTERNATIONAL CO-OPERATION, MINISTRY OF COMMERCE, INDUSTRY & INVESTMENT PROMOTION

Could you give us an overview of Oman’s investment environment this year?

There is an exciting vibrancy to Oman’s investment environment, a different energy. At least that is how we all feel since His Majesty Sultan Haitham bin Tarik assumed power in January 2020. This comes from a new and renewed renaissance, after our first renaissance in 1970. We like to call this Renaissance 2.0. Central to Renaissance 2.0 is the understanding that Oman can no longer rely solely on its traditional comparative advantages, if we are to realize our full economic potential. Driven by this, we are reimagining our approach to economic growth by capitalizing on the opportunities offered by sectors such as mining, logistics, agriculture and fisheries, tourism, manufacturing, food security, energy and renewables. We recognize that sustainable, productive foreign investment in these sectors and others can play a catalytic role in strengthening our development objectives from export growth, technology and skills transfer, to employment generation and higher pay. And to support this we are re-engineering our approach to business by streamlining procedures and creating a more innovative, pro-enterprise environment with the launch of Oman Vision 2040—our blueprint for sustainable development.

Can you outline some of the enhancements that have been made to create the pro-enterprise environment you mention?

Providing investors with a transparent, predictable, and efficient regulatory and administrative framework that meets their needs and contributes to Oman’s economic diversification is a top priority for the Ministry of Commerce, Industry &

Investment Promotion. Typical of our reimagined approach to business is Oman’s National Program for Investment & Export Development, known locally as Nezdaher. Since March 2021, Nezdaher has been supporting international and domestic prospects establish, roll out and expand their commercial footprint. A fully-fledged Invest in Oman Centre will complement the work of Nezdaher—this is scheduled to be launched by the Ministry of Commerce, Industry & Investment Promotion in 2022. Fast-tracking projects, the center will be a one-stop shop that will facilitate connections with all the resources and tools needed to make investment decisions; and provide specialist advisory services on legislation and tax regulations, labor issues, permit procedures and government incentives. These two initiatives and others like them will accelerate the new era of inward investment and domestic growth that is Renaissance 2.0. Another example of how we are creating a more enterprise-friendly environment is Invest Easy, the government’s portal for registering new businesses. Via Invest Easy, investors can obtain licenses from 18 leading authorities and approval for more than 1,500 economic activities in one single e-transaction. Since the launch of the new licensing service in April 2021, over 286,000 licenses have been issued—38,000 of them to international investors. That is a YoY rise of nearly 30%.

What are Oman’s most exciting prospects for investors right now?

Michael Liebreich, founder of BloombergNEF, referred to Oman as one of the world’s “future renewable superpowers.” For any industry to thrive, strong

infrastructure is necessary, especially in its earlier stages of growth. To this end, His Majesty’s government has developed an eco-system of initiatives to ensure renewable energy projects in our nation enjoy every possible success. Hydrogen Oman—a new national energy company set up in June—has been mandated to orchestrate and master-plan Oman’s green hydrogen sector. Then, there is Hy-Fly—a national alliance of 13 major public and private institutions created in August 2022 to facilitate the local production, transportation, utilization and export of green hydrogen. It would also be remiss not to highlight Oman’s 25 years of success in public-private partnerships (PPPs) in the utilities sector and the support provided by the Tawazun Offset Program, which promotes and supports capacity building for green investment opportunities in a range of sectors. ✖

BIO

A construction engineer from the UK, Pankaj Kanaksi Khimji is a director at Khimji Ramdas, one of the biggest business conglomerates in the Sultanate. He is co-chairman of the Oman-India Joint Business Council and a board member of the Omani-British Friendship Association (OBFA). He has been an active member of the World Economic Forum and a recipient of the Global Leader of Tomorrow (GLT) award. Khimji has also been a regular member of the Ministry of Manpower’s delegation to the annual ILO conference in Geneva. He has been involved in the Oman Business Forum and is a board member of Sharakah. He also devotes time as the chairman of the Oman Cricket Board and is a vice president of the Asian Cricket Council.

WE BUILT THIS CITY

Together with private sector players, Oman is promoting new industrial cities to achieve economic diversification in line with Vision 2040.

INDUSTRIAL ZONES will play a key role in unlocking Oman's full potential in the coming years. To diversify and transform its economy, the sultanate plans to build new industrial cities over the next two decades. It would thus have 40 such cities by 2040, in line with the targets included in the Vision 2040 roadmap. To achieve this, the government agency Madayn has launched an initiative to attract local and international companies to locate part of their operations in the country's industrial complexes.

There are currently 10 industrial cities under the umbrella of Madayn, as the Public Establishment of Industrial Estates agency is known. The first of these was the Rusayl industrial estate in 1983. Located 45km from the capital, Muscat, Rusayl has grown from 12 factories to more than 200 manufacturing different products such as chemicals, batteries, construction materials, textiles, or fiber-optic cables. In view of its success, the sultanate incorporated the Madayn agency in 1993 to boost this important sector.

So far, Madayn has secured nearly 2,300 projects and an investment volume in its industrial cities of OMR7 billion (USD18.1 billion). In order for private companies to set up in these facilities, the agency offers a number of attractive tax exemptions and incentives. One of them is an exemption from net profit tax for a period of five years for industrial projects, while another is exemption from customs duties and taxes on production inputs. Meanwhile, investors pay for their employees an income tax at a flat rate of 15% per annum and flat customs duties of 5%.

Other advantages include exemption from customs duties and taxes on production inputs, or a rental value of OMR1 per sqm per year for the first five years for industrial uses. This is an interesting opportunity for companies, allowing them to retain 100% of their foreign property in all industrial cities in exchange for a rent for a maximum period of 30 years.

With this type of incentives, in 2H2022, Madayn has been able to attract investments such as OMR83 million for the first phase of a rubber powder production plant by Al Fairuz Projects and Investments in the industrial city of Sur. The same facility also closed in August 2022 a contract with Al Ghaith to start up, with an investment of more than USD40 million, a chemical plant that will begin production in 1H2024.

For its part, Suhar Industrial City alone has managed to attract 11 projects in 1Q2022, with an investment volume of OMR26 million.

With the intention of advancing the goal of reaching 40 industrial cities by February 2022, Madayn CEO Hilal bin Hamad al Hasani announced the start of construction of five new facilities to advance the country's economic and social development. These facilities are Khasab, Ibri, Thumrait, Shinas and Mudhaibi. And the strategy could not have gone better, as exemplified by the case of the industrial city of Ibri.

With just over 27% of its first phase of construction completed, the Ibri complex has already closed 23 projects for an area of 250,000sqm, representing an investment of OMR9 million. These are significant figures for a project that has just begun, as phase one of construction will have a total of 3 million sqm with an infrastructure of roads, wastewater services, and telecommunications networks, among others. The 23 projects belong to sectors such as warehousing, food, oil and gas and construction materials.

To advance the development of these industrial cities, Madayn is actively seeking local and foreign partners willing to partner to create this infrastructure so essential to achieving the economic diversification set out in Vision 2040, which calls for non-oil activities to account for more than 90% of GDP by that year.

And companies are seeing the opportunity, as in 2021, a year when the effects of the COVID-19 pandemic were still being felt, Madayn received 193 applications for investment in industrial cities. This allowed the government agency to increase its total number of projects by 3.4% and the volume invested in the complexes by 1.6% in what was still a turbulent year for the global economy.

Finally, one of the most important parts of these complexes is that they have been developed with environmental standards in mind. Precisely, economic and environmental sustainability is another key point of the Vision 2040 with which Madayn is focused on offering resorts of international quality in this area. In this way, the government agency is contributing to advancing the Omani economy in a sustainable manner, while creating job opportunities for the sultanate's citizens. The goals of Vision 2040 are drawing ever closer with these industrial complexes. ✖

AT YOUR fingertips

Established as a high-quality industrial city with all the necessary infrastructure and facilities for investors, Samail Industrial City is now home to a variety of manufacturing sectors.

Dawood Al Hadabi DIRECTOR GENERAL, SAMAIL INDUSTRIAL CITY

One of the newest industrial cities affiliated with Madayn

Experiencing dynamic foreign investment in food and medical sectors

BIO

Dawood Al Hadabi is Director General of Samail Industrial City. He holds a BA in civil engineering and an MBA in information technology engineering. Al Hadabi has over 24 years of expertise and a long track record in the management of industrial cities and has also as well served in the engineering departments at Madayn.

What are some of Samail Industrial City’s main defining features?

Samail Industrial City is one of the latest industrial cities being built by the Public Establishment for Industrial Estates (Madayn), and there is another one in Ibri. Samail began back in 2010, absolutely from scratch. We came with a belief that we were going to build a quality industrial city that would set the standard for tomorrow. The original area was about 8 million sqm, but we have since sought an extension of 4 million sqm, divided into six sectors in the industrial city. These comprise food sector, building materials, metal, marble, and plastics and chemicals, as well as a warehouse to cater to the industrial sectors. Samail differs from the oldest industrial city in Al Rusayl. That had been built in 1983, with all its services located under the road itself. Here, we have kept the services out of the road so that it will be easier for maintenance purposes. We have five gates on our latest project for loading and unloading goods, and the sectors are color coded so visitors can readily identify them and go directly where they need to be.

What kind of industries are currently operating within

Samail Industrial City, and where is the majority of investment coming from?

We have many applications pertaining to the chemicals and metals industry, and the marble sector is the latest. We have local marble quarrying nearby, but the raw material must be processed in the city, which means local value added in Oman. We have a 75% Omani investment ratio in this industrial city. In order to increase FDI, we are focusing on the medical and food sectors and plan to extend discretionary rates to incentivize uptake.

What are Samail’s most prominent advantages?

The well-organized structure of Samail Industrial City is its main differentiator. Infrastructure such as internet connectivity is hyper-fast, and with adequate parking catering to all sectors we are a one-stop shop.

How are you adhering to sustainable and green practices for greater efficiency competitiveness and profitability?

We plan to apply solar powered in Sohar Industrial City at the rate of 60MW delivered to factories. If successful, the system will also be applied in Samail to reduce the cost of industrial power. ✖

GIVE a man a fish

Nabil Al Bimani GROUP CEO, FISHERIES DEVELOPMENT OMAN (FDO)

FDO was established as the Sultanate’s national fisheries company to develop sustainable commercial fishing and aquaculture. How has the company evolved since its inception?

As the Sultanate of Oman’s national fisheries company, FDO was established to develop sustainable commercial aquaculture and fisheries by investing in local and international opportunities. Since then, FDO has played a pioneering role in the sector. More recently, FDO singed the Duqm Fishery Port Usufruct Agreement in cooperation with our partners. This cooperation with our partners entails managing, developing, and operating the largest fishing port in the Sultanate, which links together many fishing and fishing-related activities.

How can Oman become a strong international player in the industry and hold a leadership position in fish exports?

FDO Group, which is Oman Investment Authorities’ investment arm in the fisheries sector, was established with a view to developing this key sector in the Sultanate by investing in profitable projects that could highlight its economic value to investors. The group, therefore, seeks to explore and invest in local and international opportunities and demonstrate the sector’s profitability and sustainability at a global scale, while utilizing the Sultanate’s of Oman competitiveness in global markets. Within this framework, Oman seeks to become a strong international player in the industry, and to hold a leadership position in fish exports. Moreover, with its 3,000km+ coastline, easy access to GCC and global markets, and the potential for significant increases in production of higher-value species, there is significant growth potential for Oman’s fisheries industry. FDO’s subsidiaries are all playing a vital role in contributing toward increasing the amount of commercial fishing landing in Oman, and together with the develop-

ment of Oman’s ports, harbors, fishing infrastructure, and human capital in the fishing and aquaculture industry, the Sultanate plans to further enhance its status as a leading international fish exporter. It should also be mentioned that the Environment and Natural Resources priority outlined in Oman’s Vision 2040 strategy aims to establish effective, balanced, and resilient ecosystems to protect the environment and ensure sustainability of natural resources to support the national economy. Within this context, the Sultanate of Oman has an opportunity to further enhance its position internationally as a hub for environmentally sustainable fishing and aquaculture practices.

Sustainability and green practices are some of the hot topics across all sectors in the global business sphere. Which protocols is the company following in terms of its sustainable fishing practices?

The Sultanate of Oman was among the world nations at the United Nations’ Summit in September 2015 to recognize and adopt the UN’s Sustainable Development Goals (SDG). As a result, FDO’s operations today encompass a number of these SDGs with regards to achieving environmental sustainability through responsible aquaculture and production practices. Our operations include building resilient infrastructure, promoting sustainable industrialization, and fostering innovation. Furthermore, we are ensuring sustainable consumption and sustainable production patterns, taking action to combat climate change, and playing a significant role in the protection and conservation of Oman’s marine ecosystems.

What are the main priorities in your agenda in the short term?

The company strategy for 2022-2026 is built around three key pillars: enhancement of infrastructure, diversification of

our investment product portfolio, and maximizing financial yield. FDO has identified several investment opportunities for the expansion of its commercial fishing fleet, the aquaculture of new species of Omani sea creatures, and the production of fishery value-added products. The company is conducting a number of feasibility studies to identify the profitability of these projects and, once confirmed, will move forward by attracting local and international investors. Collectively, the FDO Group projects are aimed at the sustainable, competitive development of the fish farming sector, the promotion of in-country value, as well as the active contribution to the exploitation of the considerable available potential for the development of fisheries. Furthermore, we seek to fulfil the nation’s food security needs as a vital prerequisite, along with creating job opportunities through the diversification of the production systems through which safe, nutrient-rich, affordable fish farming products can be launched, as well as the maintenance and assurance of environmental sustainability, which is necessary for the future growth of the sector. ✖

BIO

Nabil Al Bimani has over 24 years of experience in engineering, logistics, project management, and related industry sectors and has a master’s in civil engineering from Sultan Qaboos University. Prior to his current position at FDO, Al Bimani was group chief asset manager at ASYAD Group. Moreover, he held several senior positions in the oil and gas and logistics sectors, including group chief-ports and free zones officer at ASYAD Group. He was previously the executive director of Oman Logistics Center, project manager at Oman Rail Company, and worked in the projects and contracts line at Petroleum Development Oman.

FDO was established with a broad mandate to boost sustainable, commercial aquaculture and fisheries in Oman and it has big plans to build on the growth it has already achieved.

STANDARDS of excellence

A key player in food security in Oman and globally, OMIFCO remains at the forefront of making a meaningful contribution to the agriculture sector.

Ahmed Al Marhoubi CEO, OMAN INDIA FERTILIZER COMPANY (OMIFCO)

India has signed a three-year urea import deal with OMIFCO to ship in 1 million tons of the crop nutrient a year. What have been other major highlights for the company in the past year?

Since 2021, OMIFCO has exported urea to more than 14 countries across four continents, including the US, Brazil, Argentina, Australia, South Africa, Mozambique, Thailand, Nepal, and India. In addition, OMIFCO continues to meet the domestic urea requirements of the local Omani farmer community. Furthermore, OMIFCO continues taking the necessary actions to minimize its operations' environmental impact and significantly contribute to CSR initiatives. OMIFCO executed more than 35 projects in 2021 and 68 projects in 2022 around its four priority CSR investment areas: capacity building, environmental stewardship, preserving culture and heritage, and enhancing the quality of life.

Agri-nutrients producers are facing immense pressure to ensure an interrupted supply of vital nutrients. What is OMIFCO overcoming the current complex challenges?

OMIFCO has recently undertaken the implementation of a business continuity plan while proactively undertaking all the necessary measures to ensure the seamless continuity of operations, including but not limited to the robust preventive and corrective maintenance programs, keeping production schedule on track, continuous digitalization program to boost productivity, and enhancing its IT security infrastructure.

What projects is OMIFCO involved to improve food security in the country?

OMIFCO recognizes its role as a critical stakeholder in addressing food security in the Sultanate of Oman and globally.

We have always been at the forefront of making a meaningful contribution to enhancing food security locally. Some of our initiatives include providing urea at subsidized prices for local farmers, distributing farm equipment, providing refrigerated trucks for farmers, and mobile veterinary clinics. OMIFCO is also setting up greenhouses in schools to get the attention of young Omanis and shape their minds on farming methodologies.

How do you assess the agricultural market in Oman, and how is the country performing compared to neighboring countries?

Oman’s agricultural policy is centered on food security, especially since 2007-2008, when global food prices rose sharply. Agriculture and fisheries continue to be significant benefactors of the government’s increased initiatives in Oman’s bid to reduce dependence on food imports. The progress is reflected in Oman’s considerable increase in self-sufficiency over the last decade. Since 2012, Oman has advanced its food security status by 13.8 points in the food security index. For the year 2022, Oman improved by five ranks to stand at 35, with 71.2 points out of 100, according to the World Food Security Index. As of 2022, Oman has 102 priority food security projects, of which 66 are toward agriculture, 28 are related to fisheries, and eight correspond to water resources. Omani farmers are encouraged to expand the cultivated areas and use technology to improve yields. For example, OMIFCO recently signed an agreement with the Ministry of Agriculture, Fisheries, and Water Resources to fund an indoor vertical farming project to produce leafy greens. The emphasis on becoming self-reliant in food production will continue, driven by the government’s support.

What steps is OMIFCO taking to integrate environmental excellence into its business strategy?

OMIFCO is committed to reducing the environmental impact resulting from its operations and made environmental excellence a top priority, as reflected in its vision statement. During the plant design phase, OMIFCO undertook all the necessary measures to ensure the environmental impact of its operations would be minimal. OMIFCO has established an environmental management system that includes managing air emissions, effluents, and solid wastes with a monitoring system for each source of pollution. OMIFCO has set up several environmental monitoring stations to monitor and control emissions resulting from the operation of stacks, monitor the ambient air quality, and watch the seawater and groundwater quality. In December 2022, OMIFCO signed an MoU with OQ Alternative Energy to conduct a feasibility study on carbon capture, storage, and utilizations. OMIFCO is also undertaking various initiatives to enhance energy efficiency. ✖

BIO

Ahmed Said Al Marhoubi is CEO of OMIFCO. Before becoming its CEO, he was OMIFCO’s CFO and has been a part of its senior management team since 2012. He has more than 14 years of experience in strategy, finance, and accounts and risk management areas across different industries. Internationally, he has been a board member of the Arab Fertilizer Association (AFA) since 2016 and a member of the Agri-nutrients Committee of the Gulf Petrochemicals & Chemical Industries (GPCA) since 2015. Al Marhoubi holds an MBA from the University of Bedfordshire, UK, and a bachelor of accounting from the College of Commerce and Economics of Sultan Qaboos University.

consumers FIRST

AVOD has developed a name for itself for over three decades helping customers and societies to live better, smarter, and healthier lives.

Salem Al Bortmany CEO, AREEJ VEGETABLE OILS & DERIVATIVES SAOC (AVOD)

What have been some major highlights in this past year?

While the pandemic affected the way we do business, it also brought along new opportunities that have helped AVOD tide over any challenges and emerge safe and stable. With more than three decades of expertise and experience behind us, AVOD has had the foresight to implement strategies that did not impact our performance and ensured the demands of our customers and markets are being met. In terms of products, brands such as Minara and other importers’ private brands, have been doing well in the MENA region for 20 years and have managed to successfully raise the profile of our edible oil products as well as derivatives products. Minara means purity and of highest premium. Truly reflecting this, the Minara brand has set itself apart and within a short period of time has become customer favorite in premium cooking oil segment in Oman and GCC markets. Identifying it as a right time to diversify into edible oil segment, we shifted our focus from the sunflower oil segment to olive oil, corn oil, and canola oil segments. This in a larger sense, reflects our belief in “Eat Right & Live Well” philosophy through these new segments of brands under Minara brand umbrella. Minara’s reputation has allowed us to push the envelope further and these have been high-performing products for us today. External factors such as the ongoing Ukraine-Russia conflict affected sunflower oil production, but we were able to mitigate any shortages by finding alternative supplies from Argentina and also through the above said segment diversification, contributing to food security in the country as well. The fact that we have such a

diverse product portfolio, and an all-inclusive growth strategy means that we are ready and able to the bridge the gaps in the market, maintain consistency in supplies, and provide our consumers with alternatives.

How do you assess what product the population needs?

AVOD has always been a consumer-focused and customer-centric company. After all, they are our end-users. Consumer needs and requirements are always evolving and in the recent years, physical and modern life wellness has taken centerstage for all of us. Health-conscious consumers are always looking for the next best alternative that can contribute to their own and their families’ overall wellbeing. Our R&D teams base all their research on a trifecta of factors: market scenarios, consumer preferences (from farm to fork), and best practices prevalent in the industry. We then work to ensure that all three are in alignment, providing the best in health, value, and quality. It is this attention to detail has allowed us to introduce consumer-targeted products.

How do you integrate sustainability and green practices into your business strategy?

When one talks about sustainability, there are two things to take into consideration. One is business sustainability itself and the second is environmental sustainability. If the latter is implemented properly, then the former automatically follows. Many companies have only just begun renavigate their best practices to make sustainability one of the key factors. It is no longer just a footnote and has become crucial to long-term growth

strategies. Here again, AVOD has been ahead of the curve. We are certified with environmental management system (ISO 14001:2015), energy management system (ISO 50001:2018), and food safety management system (FSSC 22000) upgraded currently to BRCGS certification. International compliance and certificates leave no stone unturned to ensure that local and international certifications and standards all are met and maintained. Such integration between AVOD’s strategy, sustainability, and international standards are widely appreciated and accepted by all multinational companies where AVOD is associating with major strategic partners such as Heinz, Unilever, Goody, and Yum. We are constantly innovating to enhance our automation processes and have put a comprehensive waste reduction policy in place. Water consumption is another crucial area for us, and we are working to find ways to reduce our usage and manage available resources better. ✖

Salem Nasser Al Bortmany graduated from the UK with a BEng in chemical engineering and obtained his MBA there. He attended various management and leadership programs at Harvard Business School. He joint AVOD in 1996, as an executive engineer. He is a member of various public and private committees including board member of manufacturing companies, logistics, and various institutes in Oman.

BIO

FOCUSED on success

JSIS is the largest, privately owned integrated steel producer in the region, having been recognized for its productivity and capacity.

Sanjay Anand COO, JINDAL SHADEED IRON & STEEL (JSIS)

Could you provide an overview of the company and some of its major highlights in the past year?

JSIS Oman was acquired in 2010 and is currently a fully integrated and the largest steel plant Oman, located at Sohar with a total investment of USD1.2 billion with a capacity of 2.4 MTPA steel production supported by 1.8 MTPA of DRI Plant and 1.4 MTPA of Rolling mill in forward integration. The plant is in a prime location in a plot of 120ha with its own jetty and close to the Muscat-Dubai Highway. Our three producing units are on top of the global benchmark for all key operational parameters. Recently BSE releases its global benchmarking 21-22 for steel melt shops in which JSIS was the best in terms of EAF productivity at 271 T/hours and the lowest electrode consumption. Our rolling mill has many world records in terms of productivity, achieving 6,222MT of one-day production, which is 40% higher than the rated capacity. JSIS has also positioned as the highest throughput bar mill in BSE’s Global bench mark. Our DRI Plant is holding its world’s best position in terms of lowest specific consumption and the highest plant availability since a decade. These achievements have been a result of continuous improvements, which we are doing in a focused approach.

What are JSIS’ competitive advantages? What differentiates the company from the rest of the competitors in the region?

steel. This has translated into an increased focus toward the needs of our customers. Our focus has been on delighting the customer and not just fulfilling the contract.

What innovative technologies are you currently exploring and deploying across your operations?

Innovation is the main catalyst in our business process. We aspire to achieve business excellence through the spirit of entrepreneurship and innovation. We adopt world best available technology in terms of process control, in addition to L2 and L3 automation like electrode regulation system, innovative methods of electrode cooling, electrode regulation system, latest technologies in refractory installations, AI in mill optimization and process control, online condition monitoring, and digital reliability are few major initiatives. Apart from technology, there is a need for continuous improvement of employee’s knowledge and skills levels. To facilitate this, we have one of the best training center with us that enables the employees to build the right strategic capabilities and enhance knowledge, skills levels, so that they can innovate and deliver specific value to the customers and all stakeholders.

What steps is the company taking to integrate environmental excellence into its business strategy?

BIO

Sanjay Anand has 36 years of rich professional experience in the steel industry. He joined JSIS Oman as vice president (steel and mill) in 2014. He later assumed the role of Chief Operating Officer & Head of Jindal Shadeed Iron and Steel (JSIS) Oman with effect from 2017. He started his career in the Steel authority of India limited (SAIL) Bhilai and worked in different sections of Steel Melt Shop for 14 years. He later assumed positions in JSW Bellary, ISMT Group, and JSPL Raigarh.

Our focus has always been on training operational excellence and cost-energy efficiency. JSIS believes equipment reliability and process control along with energy efficiency in terms of hot charging of billets from SMS to rolling mill, hot link of DRI to SMS, digital controlling parameters and automation as key. We pride ourselves in producing the best quality steel at the lowest cost possible in our environment. Our steelmaking team has adequate experience in producing all kind alloy grade steel. In our opinion the periodic audits of international quality certifications gives us an opportunity for continuous improvement. In our performance reviews, we stress on the fact that we are in the business of making money and not just

The sustainability remains at the center stage of JSIS’ growth strategy. As publicly stated by the company, JSIS has been an ardent advocate and practitioner of sustainable development since its inception and is whole-heartedly committed to improving its sustainability performance and making a positive difference in the society. JSIS has incorporated sustainability into its businesses by strengthening all the three pillars: economic growth, social responsibility, and co-existence with nature. We have implemented some of the most innovative technologies and best practices at our plants to minimize the environmental impact of our processes and to reduce our overall carbon footprint. Our one-of-its-kind hotlink DRI plant is the best example of energy efficiency. ✖

wealth OF OPPORTUNITIES

MDO’s mandate is to contribute to the development of the Omani mining sector and enhance its prospects so the sector can better contribute to the Sultanate’s economy.

Nasser Al Maqbali CEO, MINERALS DEVELOPMENT OMAN (MDO)

In your own words, could you give us an overview of MDO?

MDO was established in 2017 and is owned by the Oman Investment Authority (67.8%) and the Oman National Investments Development Company (23.2%).

MDO’s primary role is to invest in exploration activities, develop upstream and downstream projects targeting multiple strategic minerals. This can be realized through attracting reputable national and international mining and mineral development players to drive the commercialization of Oman’s prodigious mineral resources. MDO operates in concession areas of about 21,480sqkm close to logistics infrastructures, sources of energy, and vibrant ports. Supporting Oman’s vision 2040, MDO’s strategic objectives are geared toward creating long-term value for the Sultanate by supporting the socio-economic progress of the nation, notably through creating employment opportunities, building local capacity, promoting local content and in-country value, and GDP growth.

How do you assess the growth potential of mining industries in the Sultanate?

Oman’s mineral wealth, is distributed across its various governorates ranging from metallic to industrial minerals such as silica, gypsum, limestone, and dolomite. With the announcement of Oman’s Vision 2040, in which the Public Authority for Mining was merged with the Ministry of Oil and Gas, we immediately noticed the changes taking place in the mining sector as the ministry brought its cumulative experience in energy to the mining sector, ensuring its growth and development. In addition, the ministry sought to find a mechanism to ensure that the mineral reserves are well exploited. Thus,

the mining concession areas project was launched as the investor is looking for real opportunities which can be found in large areas. Moreover, the support and facilities provided by some governmental institutions in order to facilitate the investment in the mining sector, as well as the speed of procedures, played a significant role in accelerating the development of recent mining projects.

At what stage is the research in Oman when it comes to mineral sources, and how is MDO contributing to that?

Geological studies and exploration campaigns are integral parts in all the MDO’s projects and business. The Company aims to build a comprehensive geological database through implementing geophysical airborne surveys to enhance the geological knowledge at surface and depth as well as serve as an important future reference for researchers and those interested in the fields of geology and mining. Also, MDO is collaborating with Petroleum Development Oman (PDO) to study the possibility of producing salt and bromine from the hypersaline waters associated with oil production. These deep waters are found in several PDO sites, which are studied and assessed as a part of the project. MDO also is studying with its partners multiple solutions related to reduction of carbon footprint within mining sector.

What is the company’s role in creating local added value for the country?

Stimulating the downstream projects is of the main pillars of MDO’s development strategy. The Company’s policy aims to utilize extracted mineral ores by directing them to local industries and creating value- added projects. This will contribute to creating new economic opportunities and

making the utmost use of natural mineral resources in the Sultanate. On top of this, MDO is directing all its human and technical capabilities and resources to contribute to the realization of Oman Vision 2040. Its strategy aims to create long-term value that contributes to supporting the social and economic progress of the Sultanate through: job creation, local capacity building, small business growth, ICV enhancement, and driving GDP growth. There are great opportunities to develop ICV programs and engage SMEs in the development of the sector which is relatively new, through implementing ICV mechanisms and standards. The company also aims to provide sufficient mineral resources to meet local requirements, contribute to enhancing the utilization of local commodities and resources, and build national capacities in order to ensure sustainable financial returns for the Sultanate in the long term. ✖

BIO

Prior to being the CEO of MDO, Nasser Al Maqbali held leadership roles in both private and public sectors across Oman. With his vast knowledge and wealth of experience gained from over 30 years of service, he holds a successful track record of both defining and delivering corporate strategy. He received his undergraduate degree from Salford University (UK) and earned a master’s in civil engineering (risk management) from Adelaide University (Australia). He is a board member of several companies, including Omran Hospitality Company, Tourism and Real Estate Development Company, Duqm Frontier Town Development Company and INSOFOM Manufacturing Company. He is also the deputy chairman of Al Baleed Company.

DINING IN

In a world subject to the vagaries of climate change and supply chain disruption, food security ranks high on many a national vision, with Oman being no exception.

A NATION’S OVERALL SECURITY relies on the integrity of its political, industrial, and economic internal workings. In the latter on that list, food security initiatives work to reduce import dependence in favor of greater local content. Such initiatives inevitably create new links in domestic value chains and by definition, employment. Food security, then, is a fundamental element of Oman’s Vision 2040.

WHAT’S THE SCORE?

Well, the prognosis is good. The latest Global Food Security Index (GFSI) published by Economist Impact confirms that over the past decade the Sultanate’s food security has seen the greatest advance in the world. It currently ranks 35th out of 113 nations measured, and fourth in the Middle East and North Africa (MENA) region. Oman’s score on the index has climbed 13.8 points since 2012 to 71.2 in 2022. It’s advance is followed by those of China (+13.7), Vietnam (+13.4), Bolivia (+12.2), the United Arab Emirates (+12) and Saudi Arabia (+11.8). Meanwhile, for regional context, the UAE heads up the performance league in the MENA region, at 23rd , followed by Israel (24th), Qatar (30th), Oman (35th), Bahrain (38th), Saudi Arabia (41st), Jordan (47th), Turkey (49th) and Kuwait (50th). Oman scored 88.6 in the affordability category (out of 100), 64.3 for availability, 73.2 for quality and safety, and 53.6 for sustainability and adaptation.

A MEATY INVESTMENT

In June 2022, the Ministry of Housing and Urban Planning (MoHUP) inked 28 contracts for schemes across several Omani governorates valued at OMR2.67 million to expedite food security. The contracts involve a total land area of 8 million sqm and encompass agriculture, livestock and related industrial schemes. The deals include three poultry farming agreements on a total area of 124,000sqm, while another concerns livestock breeding and sales. Meanwhile, the view from the field revealed 23 agreements for vegetable and fruit production on +800,000sqm.

TEN OF THE BEST

On November 18, 2022, amid Oman’s 52nd National Day festivities, the Oman Investment Authority announced ten forthcoming landmark projects with a total value north of OMR750 million. Projects in the National Development Portfolio are spread across strategic sectors that flesh out Oman Vision 2040. They should prove enticing to foreign investment, essential to technology inflow, while creating close to 1,000 direct and indirect jobs. Space here precludes touching on all of them, but the common thread is a competitive commer-

cial environment set to advance localized abilities.

DIRECTING THE DOUGH

Two of those projects come courtesy of Oman Flour Mills Company, with one being the Gulf International Poultry Farm located in Al-Subaikhi, in the Al-Dhahirah Governorate. This OMR26 million farm is a partnership of the Omani Food Investment Holding Company (Netaj), the Japanese Khaleeji Food Fund, Japanese Wise Foods and UAE enterprise IFFCO Group, producer and marketer of mass-market food products, derivatives, intermediates and services. It is one of the GCC’s largest egg facilities with a perfectly round annual capacity of 360 million eggs.

The second scheme involves Grain Storage Silos at Sohar Industrial Port. With a storage capacity of 160,000 tons, the silos, valued at OMR21 million, are the very definition of food security.

Also in November, Oman’s Minister of Agricultural and Fisheries Wealth and Water Resources pledged over OMR1.0 billion to advance the rate of food self-sufficiency for staple goods. The previous year had recorded encouraging rises in agricultural, livestock, and fisheries output. He also revealed that Oman’s Food Security Laboratory had realized over 100 projects valued at roughly OMR1.3 billion.

TWO AT THE TABLE

Oman’s diversification drive, while geared at upping national content, is certainly not averse to sharing the financial burden, and dividends to be reaped, with other nations. Because, of course, Vision 2040 is nothing if not a template for international, strategic and bilateral partnerships in pursuit of win-win outcomes. In October it emerged that the Sultanate was in exploratory food security-flavored talks with India. Handshakes aplenty were in evidence at the recent Omani-Indian Business Forum staged by the Oman Chamber of Commerce and Industry, along with the Ministry of Agriculture, Fisheries, and Water Resources. Oman perceives shared potential in agriculture, among other sectors, with strategic investments on the horizon. At the event, Eng Rida bin Juma Al Saleh, the Chairman of the Oman Chamber of Commerce and Industry noted Indian direct investments in the Sultanate of Oman of OMR12 billion in 2020. As ever, the actual meat and potatoes took place at the sidelines of the forum, where meetings between Omani and Indian businesses voiced enthusiasm for actionable data exchange. And that can only lead to collaboration and the joint investment projects that Vision 2040 was drafted to ensure. ✖

POULTRY

The growing demand for higher quality food products in Oman has meant the poultry market has been working hard to remain innovative while ensuring the highest standards.

What have been some of the company’s major highlights in the past year?

MOHAMED SUHAIL AL SHANFARI A’Saffa Foods SAOG was established in 2001 as a public listed company in Oman. A’Saffa started its commercial production in 2004 with 10,000 metric tons, and we now have 42,000 metric tons of production capacity of fresh and frozen poultry products. A’Saffa poultry farms are located on a 50sqkm area in Thumrait. Since the beginning, we have focused on quality, which is why we have consumers’ trust and confidence in our products. We have a full range of fresh and frozen chicken products. In addition, we have a subsidiary company A’Saffa Food Processing LLC that produces 4,500 metric tons of processed chicken and meat products. We have the potential and ability to control everything from the beginning until the final product and maintain high standards.

DIDIER GABRIEL The world’s largest poultry exporter, BRF is present in over 140 countries and owns iconic brands, such as Sadia, Perdigão and Qualy. In the Middle East since 1970s, our main brand, Sadia, is the market leader in the chicken category and is recognized as the most preferred brand in the region, a true testimonial on how close to consumers it is. In the GCC markets, BRF Sadia operates following a

“farm to table” approach with a fully integrated value chain, offering a wide range of quality products comprising whole chicken, chicken parts and ready to prepare products. BRF Sadia Oman is the leader in frozen products across the Sultanate, offering a variety of high-quality products suitable for a vast array of consumers.

What competitive advantages and strengths do you bring to the market?

MSAS A’Saffa believes in quality, which is how we achieved the Premium brand status. A’Saffa is continuously working to produce high-quality products and remain as a premium brand. Our culture is extremely important to us. Keeping halal products is the main driver and using 100% natural fodder (corn and soy) as the main raw materials, without any animal proteins gives us another advantage. Our standard process on our farm is no different from top producers worldwide; in fact, we have even become a reference for other regional suppliers. A’Saffa is the fully integrated poultry project. We started producing hatching eggs on our farm. We have a breeder farm, hatchery, broiler farm, feed mill, slaughterhouse, HSE lab, and a maintenance workshop. There is absolutely no outsourcing. We control the entire process.

DG We bring a few competitive advantages to the market that allow us to clearly demarcate Sadia from competition. One is our global and regional presence as well as being in Oman for several decades and loved by Omanis ever since. Sadia is available in all GCC countries and in many countries in the world, making it easier to be adopted by people when they move countries. Then, in terms of our high-quality standards: since our products are all frozen, and most of our sales comes from uncooked product, it is crucial for us to ensure that the cold chain and quality of our products are always at the highest standards. Most importantly, our biggest competitive advantage is R&D and our consumer insights department, which allows us to sustain our success. Our team is constantly listening to consumers, analyzing trends and taking corrective actions when needed.

How are you incorporating best practices into your business strategy?

MSAS We must maintain excellent biosecurity to secure our business. We are situated in a strategic location with no other activities around us, which means we have not experienced any threats of contagious diseases outbreaks because we adhere to high-quality standards. We are strict in our quality checks and vaccination programs. These have also continued to improve in the last 10 years growth. We have also brought in digital equipment to improve our product quality. We are at almost zero waste. Also, we have a water treatment unit to treat all the wastewater coming from the slaughterhouse and other facilities.

How big of a role does innovation play in the company’s operations?

DG Innovation is absolutely key for BRF Sadia when it comes to launching new product offering that are answering consumer needs. But innovation does not stop at portfolio for us. Communication wise, we have been spending quality time to understand better the consumer behaviors and how they consume media and what their expectations are. Most of the communication budget we spend in Oman is focused on the digital and social media realm, where we can build a close connection with our consumers, engage in a twoway conversation with them and understanding their expectations. ✖

Mohamed Suhail Al Shanfari CEO, A’SAFFA FOODS SAOG

Didier Gabriel COUNTRY HEAD, BRF SADIA

COMMUNIQUE: AREEJ VEGETABLE

VEGETABLE OILS & DERIVATIVES CO.

BIO

Youssef Ezzikhe is a senior C-Suite executive with extensive experience in GCC & MENA regions, holding key positions in his former roles with leading FMCG companies, including Procter & Gamble and PepsiCo. He joined Oman Refreshment Company in 2010 and since then has led the team to ORC’s growth trajectory over the past decade.

Youssef Ezzikhe CEO, OMAN REFRESHMENT COMPANY (ORC)

ORC is one of the pioneers of Omani manufacturing sector. How has the company evolved since its establishment?

The company was established in 1974 as a joint stock company from humble beginnings as a single returnable bottle (RB) line. Since its inception, the organization has gone through multiple phases of expansion, including investments in 1995-2007 in PET, juice, and water and acquiring the rights to distribute salty snacks, namely Lays, Doritos, Cheetos, and Sunbites; acquiring Arabian Vending LLC in 2014-2019 to provide quality vending solutions to institutions across Oman, becoming the sole distributor of Lavazza coffee, ODK, and Tchaba tea, and manufacturing premium juices (Topfruit and Tropicana) and value-added products (Gatorade, Lipton ice tea, Balade, and more), along with the distribution of Quaker cereals, Eurocake sweet snacks, and Froneri ice cream, among others; and in 2021 acquiring Atlas Bottling Corporation SPA, a bottling operation in Algeria under aegis of PepsiCo. Algeria is the largest African country, home to more than 44 million people, and post-acquisition, Oman

RefCo. was able to diversify and transcend the geographical limitations of its home market. Its biggest endeavors have been to streamline and overhaul the newly acquired businesses and add value to its consumers’ lives.

ORC aims to be the leader in beverage and food sector. What competitive advantage does it bring into the market?

In Oman, we are currently leaders in carbonated soft drinks, sports drinks, and iced tea, and ORC is among the top three players in juices, water, and snacks. We work hard to maintain our achievements with consistency to reach and remain at the peak in leadership, with all the other categories. Our competitive edge relies on five key factors that set us apart: our highly skilled and dedicated employees who are our partners in success; partnering with all retail selling point across the entire Sultanate, powered by our sales and supply fleet, considered one of the biggest in Oman, and our 10 distribution centers strategically located across the country; our brands’ resilience and image recognition among consumers in Oman; access to the latest technologies in manufacturing that allows us to produce the highest-quality products at competitive costs; and being always relevant and consumer-oriented with our new product innovations, activations or promotions. ✖

Ali Al Buali CEO, MAZOON DAIRY COMPANY

Mazoon Dairy is a first of its kind project in Oman, both in size and scale. What competitive advantage does the company bring into the market and how do you plan to maintain this leader position?

What is your current portfolio of products and how does the company adapt to changing customer demand?

BIO

Ali Al Buali is an accomplished C-level professional with over 16 years of experience in private equity, oil and gas, food, financial management, and audit. He is currently the CEO of Mazoon Dairy SAOC with prior experience in senior roles in a sovereign wealth fund and multinational organizations.

The Mazoon project phase started with the development of the farm and central processing plant in order to serve the nation as part of the Sultanate’s food security and sustainability program. World-class facilities have enabled the production of high-quality products that are distributed throughout the region, meeting consumer demand for fresh and long-life products. The support of both retail and foodservice customers has greatly assisted in the achievement of the food security program. Much has been achieved in three short years in the market. Locally produced produce for the local market has allowed Mazoon to gain market share from established regional brands, in part due to the efficiency of the logistics and distribution network. There are always lessons to be learned, and in order to maintain Mazoon’s advantage we have to remain agile and able to adapt to consumer trends and remain focused on serving the community.

Mazoon Dairy has a portfolio of fresh dairy items consisting of fresh milk, Laban, and yoghurt that serve as a cornerstone of the business, offering a wide variety of flavored and fat variants within the product range. The core product range is of the highest quality and comprises staple daily consumables that provide a strong foundation for health and wellness. Mazoon’s mission is to build upon a well-established core so as to enhance consumer experience and exceed expectations.

Is innovation the key to Mazoon’s future plans?

Mazoon is an extremely consumer-centric business; this means that seasonal fluctuations in market demand play an immense part in the supply chain and forecasting from the farm all the way to the consumer. Innovation is indeed a paramount driver for Mazoon’s future plans. Consumer habits and trends are closely monitored. The company must continue to develop new products to expand consumer choice through a well-balanced portfolio of products that exceeds consumer expectations and delights the tastebuds. ✖

Image: Stefan Hochreutener

Image: Monalisa Mukhopadhyay

Healthcare & Wellness

HEALTHY PULSE

The Sultanate of Oman is well known for its national healthcare system. Under the leadership of His Majesty Sultan Haitham, the country has seen commendable growth over the last few years in the healthcare sector. The public healthcare sector offers free primary healthcare to Omanis and subsidized care for the foreign population of the country.

The healthcare sector of Oman is overseen by the Ministry of Health (MOH), which is headed by Minister Dr. Hilal Al Sabti. Following his predecessor, the ministry is focused on expanding healthcare infrastructure, education, and services.

At present, Oman has nearly 70 hospitals with over 6,400 beds, offering a wide range of specialized and general patient care services in the country. The healthcare system has greatly advanced with the inflow of foreign medical expertise and investments over the years. It has in return helped to improve the country’s homegrown medical facilities. New hospitals, medical centers, and specialized clinics are expected to play an important role in achieving Oman Health Vision 2050, a long-term strategy formulated by the Ministry of Health that intends to support the government’s goal of providing a stabilized, affordable, and responsive healthcare system.

Oman Vision 2050 has set guidelines for a number of principles, such as the need to provide quality healthcare services, with an emphasis on disease prevention, as well as more patient-centric services and adoption of the latest technologies.

The Health Vision 2050 aims to develop a well-organized, efficient, and responsive public care system. The priority is also to develop integrated medical services, future investments in human resources development and medical training, and also boosting healthcare spending.

As the government investment is set to bring many new hospitals and clinics, increased private-sector participation is also aiding Oman to meet its healthcare goals. The government has expressed interest in opening the healthcare sector to greater private-sector investments as stakeholders look to expand the use of PPPs. With the introduction of the mandatory health insurance law, it is expected to have major effects on healthcare provisions in Oman. According to Sameer P.T, CEO of Badr Al Samaa Group of Hospitals and Polyclinics, “this will, therefore, move the healthcare industry in a different direction. Most patients, expatriates, or residents in this country will have to go for such insurance. This insurance also provides great investment opportunities for investors.”

This is an initiative by the government to take prudent steps to tighten its budget and shift the cost burden of provisions to the private sector. With the increased efforts to encourage private participation in hospitals and clinic infrastructure through PPP, the new health insurance law provides a significant opportunity for providers and insurers to expand their presence in the local market. ✖

HOSPITALS

Providing high-quality specialist healthcare locally, hospitals in Oman have begun to stand out as an alternative for locals and expats that used to go overseas for medical treatments.

K. P. Raman CHAIRMAN, AL HAYAT INTERNATIONAL HOSPITAL

AL HAYAT INTERNATIONAL HOSPITAL excels in certain specialties such as cardiology, orthopedics, and internal medicine. We want to make gastroenterology one of our priorities in 2022 and bring in new experienced Omani staff, as gastroenterology is an important field. In the last two decades, there have been many new procedures and advancements, and we want to make them available in private healthcare. In 2022, we will also add gynecology, obstetrics, and pediatrics in mother and child health as a priority and make that a center of excellence. Most of the hospitals here focus on expats, whereas we have focused on Omanis since the beginning. Some 85% of our patients are Omanis, which is a unique perspective. Second, we have the maximum number of senior doctors offering their services. We sought to create a teaching atmosphere in our hospital and train junior doctors in our hospital and other hospitals. We are not merely focused on offering services to patients, but also to junior doctors and medical students. We must utilize the services of local talents. Today, most of the departments are headed by Omani doctors, while the expat doctors are at mid and lower levels.

OCTOBER marked our 20th anniversary. We went from one hospital to 13 units, and we plan to keep growing. We developed six hospitals and seven polyclinics, and we are coming with another three more. What we are following here is unique. First, we focus more on the patients, and we want our services to be affordable. If we compare the total number of patients treated by the other private hospitals in the area, the figure is half of ours; however, we do not compromise on quality. We are the only private hospital with an American and Australian accreditation. In the global healthcare industry, there is a lack of resources and skilled talent. Healthcare centers have an opportunity to bring in highly skilled international healthcare professionals from different countries. We have a mix of doctors, from India, Iran, Pakistan, as well as Bangladesh. We have to been successful in bringing in experts from all over the world. The government is planning to develop an instrument for compulsory insurance, which will help move the healthcare industry in a different direction. Once this insurance comes here to the market, it will be necessary for us to increase our presence further.

Farhan Yasin REGIONAL DIRECTOR KERALA & OMAN CLUSTER, ASTER AL RAFFAH HOSPITALS & CLINICS

ASTER BRAND has been aligned with Oman’s vision since its inception, establishing itself as a brand with high medical standards. This was evident during the pandemic, wherein we provided screening camps in Oman in our mobile clinic bus. Aster Al Raffah Hospital was internationally recognized with The Global Economics awards for best community engagement in 2021 for these efforts. Throughout Muscat, in association with MOH we delivered the highest number of vaccinations as a part of mass vaccination drive. As our facilities upgrade, we will be able to provide a higher standard of care to our patients. In Oman, Aster DM Healthcare has been providing healthcare services for the last 13 years and operates in four distinct regions: Muscat, Sohar, Ibri, and Salalah. Every region has a hospital and several medical centers associated with them. As we open the flagship hospital Aster Royal in Muscat, our total hospital count grows to five totaling 425 inpatient beds, eight clinics, and 11 pharmacies. Our upcoming Aster Royal Hospital will have a floor dedicated to women’s care, with delivery rooms, 11 inpatient rooms, four LDR, one operation theater, and a pre- and post-operative recovery room, the first of its kind in the Sultanate.

Sameer PT CEO, BADR AL SAMAA GROUP OF HOSPITALS

Ghassan M. Hamed OWNER & CEO, AMERICAN SPECIALTY CLINICS CENTER

The American Specialty Clinics Center is one of the leading medical providers in Oman. How did this initiative start, and what have been some of its major highlights over the past year? After spending over 20 years in the US, I wanted to move back to the Middle East. I am Syrian, and due to the war in Syria, my alternative was Oman, as it is a safe and quiet country. I started the first branch in Qurum to do what I was doing in the US. I learned science, medicine, and the art of medicine in the US, and I wanted to match it with the culture of the Arab and Gulf countries. I started small as an internal medicine and dental clinic and, upon learning about the need in the country for other specialties, I later expanded the clinic to multiple specialties. I started with specialties in the dental area such as surgery, orthodontics, cosmetic, and whitening and later expanded more into skin services such as dermatology and laser as well as plastic surgery. I was one of the first to have

a full-time resident plastic surgeon in Oman. We started with one and later expanded to five resident surgeons. We also added obstetrician and gynecology services as well as aesthetic gynecology services. In addition, we added new services such as physiotherapy, surgery, and pain management using new machines such as laser shock waves, radio frequency, or decompression. We also added other services such as psychology and internal medicine as well as gastroenterology. Gastroenterology normally treats diseases of the intestine and stomach, but we concentrated more on using that service to treat obesity given that there is 20-25% obesity rate in Oman. With all these expansions, our location was not enough, and we had to move. We expanded to Salalah and have one of our biggest branches there. It consists of five huge villas connected to each other. There is peaceful and scenic view in that location. We have retail services in the areas of dental specialties, surgical specialties, laser, cosmetic, obstetrician gynecology, physiotherapy and orthopedic surgery. The last location was in Sohar, where we offer most of the same services; however, we are also working on IVF service in this location. ✖

HP AD HOLDER

AMERICAN SPECIALITY CLINICS CENTER

BIO

Ghassan M. Hamed is Medical Director, CEO, and the founder of American Specialty Clinics in Oman. He is American Board certified in internal medicine and trained at Trihealth Hospital in Cincinnati Ohio in the US. He was also previously chief resident at Good Samaritan Hospital Cincinnati and CEO & medical director of Tristate urgent care in Cincinnati Ohio.

Image: Matyas Rehak

Waljat hospital pictured in Muscat

A HEALTHY APPROACH

Oman’s universal healthcare system is getting a shot in the arm from a private sector that champions local content while generating increased revenues.

AS MUCH AS STRUCTURAL HEALTH, Oman’s Vision 2040 focuses on a healthy populace capable of operating its diversified economy. Yet, despite emphasis on preventive health, a rising population and the need to address chronic disease resulting from a sedentary lifestyle among many has called for additional facilities and qualified personnel. The national health model is one of universal coverage for citizen and non-national alike. Admirably, in just a few short decades Oman’s healthcare system has won regional plaudits, scoring high for metrics such as immunization. In fact, total health expenditure is forecast to account for 8-10% of GDP by 2030, from just shy of 3% today. The blueprint for the entire endeavor is…

…OMAN’S HEALTH VISION 2050

The Health Vision, based upon the WHO Framework for Action on Health Systems, lays out principles for sector policy to create a sustainable system responsive to public need. Principles such as quality of delivery services, measurable outcomes, disease prevention, patient-centricity and a focus on vanguard technology. The Ministry of Health (MOH) is the primary healthcare provider, mandated to ensuring that health policies are implemented. According to projections, Oman’s population should tip the 7-million mark by 2050. A result in part of healthier lifestyles, those aged 60 and above will account for 13.1% of the population, more than double the baseline 2012 figure.

A PRIVATE MATTER

The state accounts for roughly 83% of hospitals and about 93% of hospital beds, 62% of outpatient services and 95% of inpatient services. And yet, the private sector is establishing a firm foothold. When drafted, the vision was for Oman’s state-administered insurance program to spread the financial risk of illness across society, thus leaning on the private sector. In terms of facilities, it earmarked a rise in the share of private sector beds to 20-50% of the total with the opening of additional hospitals and to 50-70% of all beds in Oman’s Medical City.

AND A CASE IN POINT

In September 2022, Oman unveiled its latest state-of-the-art healthcare facility with the soft opening of the Aster Royal Hospital in the developing Muscat suburb of Ghubra. The 200-bed hospital is part of Aster DM Healthcare, a conglomerate with a huge foot-

print in the MENA region. It boasts 35 ICU beds, a stroke unit, and an antenatal clinic, and is equipped for robotic surgery.

Farhan Yasin is Regional Director of the India-Oman Cluster of Aster, which employs 1,100 qualified staff, including visiting doctors. In an interview with The Business Year, he explains how with the “visionary leadership of the late Sultan Qaboos Bin Said Al Said and current Sultan Haitham bin Tarik Al Said, Aster brand has been aligned to Oman’s vision from its inception, since 2009 establishing itself as a brand with high medical standards.” This latest opening brings the total number of Aster hospitals in Oman to five across Muscat, Sohar, Ibri, and Salalah. And while these facilities feature “425 inpatient beds, eight clinics, and 11 pharmacies, […] we are in talks with various single-owner hospitals to operate and manage their facilities.” Yasin underlines particular growth potential in Oman’s Tier 2 cities, which explains Aster’s hub-and-spoke model linking larger facilities in major cities with smaller hospitals and clinics for uniform quality of healthcare delivery.

KEEPING IT LOCAL

Aster Royal Hospital is set in time to perform organ transplants and neurosurgeries. Additionally, it will have “centers of excellence for gastroenterology, urology, orthopedics, obstetrics and gynecology, interventional radiology, and a stroke unit.” The increased availability of such specializations and medical techniques clearly strikes a blow for local content. Because the convenience of available specialists of various stripe armed with cutting-edge technology should curb the Omani practice of seeking surgical procedures abroad, notably in India. “Our priority,” says Farhan Yasin looking ahead to the new year is to “identify potential areas in Tier 2 cities for establishing spokes for the new hospital.” The goal is for “medical value tourism to be reversed, integrating clinical services with Indian hospitals and getting tertiary care services to the Sultanate.”

Oman, like the wider MENA region, offers huge potential for healthcare sector players of adequate reach. Note for instance, that Aster Royal Hospital is benefitting from a recent MoU inked between Aster DM Healthcare and Roche Diagnostics whereby the latter’s diagnostic services and solutions will be made available across Aster’s Middle East network of hospitals and clinics. Therefore, with shared public-private initiatives, Oman’s burgeoning healthcare capabilities has the potential to benefit a wider swathe of the population. ✖

Anastasia Hayat MANAGING DIRECTOR, ANASTASIA BEAUTY STUDIO

What set in motion the establishment of the beauty studio in Oman, and what are your primary services?

This started about 12 years ago as a hobby. I had completed a complete course at an academy for nails in Moscow that included manicures and pedicures, diseased nails, nail repair, pathologies, and so on. It was an extremely detailed course, and when I later moved to Oman, I started applying the knowledge, first for myself and later for my friends. Every year, I would go to Moscow in search of more courses to brush up on my skills. Currently, in addition to nails, we offer eyebrow and lashes lamination, hair extensions, hair treatments, nail growth treatments, and all varieties of massages and waxing.

What is the importance of ongoing training in your sector?

Every year, there are new developments in the

beauty industry, and there is always something new to learn or new improvements in terms of techniques or supplies. I might be extremely well versed, but I will always learn something different from every trainer because everyone has different techniques for their courses. I have over 20 diplomas, though success lies in the professionalism and your work, not the diplomas. When customers come here, they notice the difference.

What is the main difference between your studio in Oman and other beauty centers?

They sometimes do not follow the right procedures and rules, which is extremely important because everyone’s nail platform is different. For example, if one’s nail platform is dry, salons should not add acid to the mix, as this will result in more dryness for the client. In most cases, other salons are not aware of all these aspects. They also do not use Russian products, so manicures and pedicures wear off much faster. We have had several customers come in to ask why our products last much longer than a month. This is also largely due to the entire process and the steps that we follow. ✖

Green Sustainable Port

The Port of Duqm is a world-class, deep-sea multipurpose port, located outside the Strait of Hormuz. It connects East and West and lies on key shipping lanes, as well as being close to key markets across the region.

As a green port, the Port of Duqm is prioritizing renewable energy-based projects and it is committed to providing green hydrogen and its derivative products as the “fuel of the future”.

Upcoming utility scale green hydrogen/ammonia/ methanol projects at Duqm will produce green molecules on a large scale for supply as bunker fuel as well as bulk exports via Port of Duqm’s liquid jetty.