Port of Sohar Home to New Producer of Sulphur-Based Fertilizer

The investment subsidiary of Oman Oil Company, Takamul Investment Company, is joining with CoreSulphur, one of the world’s leading providers of technology, to create a new, major, sulphur bentonite and micronutrient facility near the Port of Sohar in Oman.

New Company Sohar Sulphur Fertilizers

The complex will be owned and operated by these companies along with another Oman-based firm, Awtad Projects and Development.  As a group these businesses have created a new company, Sohar Sulphur Fertilizers LLC, which will be the owner and operator of the facility.

The complex will utilize cutting-edge technologies and will be the first of its kind in Oman. The facility will have its home in close proximity to the Sohar Refinery plant which is part of Oman Oil Refineries and Petroleum Industries (ORPIC.)

Feedstock Sulphur Readily Available

The officials on the project explained that the source for feedstock sulphur will be the Sohar Refinery, which is close to where the new facility will be built. The refinery can produce approximately 140 tonnes of molten sulphur every day, a major by-product of the process of refining crude oil.

Last year a Memorandum of Understanding (MoU) was signed between the Sohar Refinery and Takamul stating that the sulphur produced by the Sohar Refinery will be dedicated to the Sohar Sulphur Fertilizers LLC. As a consequence of this agreement, the sulphur, which right now is being shipped to other regional and international locations, will permit the additional processing of sulphur into a valuable commodity locally.

International Player in Fast-Growing Market

Kent Lambden, managing director of CoreSulphur, commented on its newly formed partnership with Takamul:

“As the foremost expert in sulphur bentonite and sulphur micronutrient fertilizers, CoreSulphur’s formation of Sohar Sulphur Fertilizer positions us as a fast-growing international player in a high-growth market. Our partnerships with leading firms, such as Takamul and Awtad, highlight our expertise and stance within the industry. We’re extremely pleased to expand into Oman to provide unmatched products to areas that need it most.”

Intex Cellphones Enter Oman Market

Mobile phones from Intex are now available in Oman. They are available at Emax, Muscat City Center as of this past Monday.

Clive Freeman the general manager of Landmark Group spoke to this development in introducing Intex phones into the Omani marketplace:

“This exclusive partnership is a matter of great pride and brings a wider spectrum of products to Emax.”

“We are sure that the value for money proposition of Intex mobiles will be a great advantage to customers,” continued Mr. Freeman.

The phones are available in a wide variety of styles, ranging in price from RO 14 to RO 64. Included in the new line will be the Intex IN 2020 Vision. This is a specially designed phone to allow blind people to easily operate, including voice recognition and talking phone ability. There is also Omani’s only available phone which can project images.

Talking phone facility gives users voiced directions rather than written as an aid to those with visual disabilities. New phone models are constantly being launched by Intex, including tablets and Android 2.2 operation system phones.

Peugeot Oman Launches Latest Peugeot 3008

Peogeut 3008

This summer the Sultanate of Oman will be able to experience first-hand the advantages and pleasure of driving the all-new Peugeot 3008, a realization of a concept incorporating spaciousness and compactness into one unique vehicle.

The Peugeot 3008 will be introduced this summer and all those who purchase it will receive a 5 year warrantee which will not be limited by any number of kilometers which will be driven.

Crossover Between Hatchback and SUV

The 3008 is a crossover vehicle, meaning that it shares many of the qualities of a compact hatchback car together with those of an SUV. Aside from relying on these tried and true driving concepts, the 3008 adds some new and innovative ideas to its design, such as Dynamic Rolling Control, Hill Assist, Head-up Display, and more.

The general manager of Peugeot Oman, Bob Seshadri explained why he is so excited by the Peugeot 3008:

“The Peugeot 3008 is the perfect choice for motorists in Oman looking for a SUV feel, but not to be used off-road. The 3008 offers the urban driver all the safety and performance aspects that are inherent to its category, both active and passive, however with a spectacular competitive advantage: the ability to save a huge amount of the fuel consumption associated with other SUVs.

“Moreover such a distinction will definitely appeal to today’s socially responsible driver, allowing him to exercise his commitment toward a better environment.”

BMW Sales Surge in First Half of 2011 in Middle East

BMW Group Middle East

BMW topped their record 2010 sales year with an even better showing in the first half of 2011. The high-end auto distributed by the BMW Group Middle East posted a 13% increase in sales compared to the same time period last year.

Total sales amounted to 9,134 BMW and mini vehicles in 14 separate markets throughout the Middle East.

Overall sales results point to a vigorous market with sustainable growth in the foreseeable future.

• Abu Dhabi had the highest sales volume, selling 2,247 cars representing a 32% increase in sales;
• Dubai had 29% growth with 2,014 cars;
• Saudi Arabia’s market increased by 14%, a total of 1,684 vehicles;
• Kuwait’s sales increased by 13% in the first half of 2011.

The Director of Sales and Marketing for the BMW Group Middle East, Reiner Braun, said,

“Thanks to the continued commitment and dedication of our importers, the company’s ongoing investment into new technologies such as BMW ConnectedDrive and the diversity of our portfolio, we continue to provide Middle East customers the very best in sheer driving pleasure. However, we do not see success as an invitation for complacency and watching our business grow only motivates us to do even better in the coming months.”

China Surpassing Japan in Economic Outlook

While all eyes have been on Japan’s economic outlook for years, it’s time to turn that perspective towards China.  As many investors such as ARC Investment Partners understand, China is actually expected to surpass Japan as the world’s top consumer of luxury goods by 2012, and this is just one example of their economic momentum.  According to the World Luxury Association, there is growing demand in China for such goods, and a decreased consumption in Japan.

In a survey they released in Beijing, the WLA predicted that luxury goods in the Chinese market (not including private jets, yachts, and luxury cars) will get to $14.6 billion in 2012.  In the 13 month period from February 2010 to March of 2011, it was $10.7 billion.

As Michael Ouyang, the Chief of World Luxury Association China office said, “China has been rising with the fastest annual growth.”

In important news for investment groups like ARC Investment Partners with Adam Roseman, Mr. Ouyang also said that companies that have opened stores in China’s first-tier cities will have even more opportunities in the second and third-tier cities.

Certainly, the economic problems in Japan with luxury sale items can be partly explained by the devastating earthquake in March.  49% of brand stores had to stop business for one month following the earthquake, as the survey pointed out. Not only does the World Luxury Association expect this slump in the Japan market to continue for a year, but it predicts that 70% of brands will move their commercial plans to China as a result.

Double Taxation to End between Oman and the Philippines

The Sultanate of Oman and the Republic of the Philippines are in the process of negotiating an agreement which will end double taxation between them in order to boost bi-lateral trade.

Tax Agreement Coming Soon

Spokesman for the Philippine embassy in Muscat, Omar M. Pangarungan explained that the countries are about to begin their second round of talks to produce  an agreement which both countries can feel good about.

Oman is anxious to begin the second round of negotiations in the hope that an agreement can be hammered out soon. Pangarungan said that although trade between the two countries is at the moment minimal, there exists a huge potential for an abundance of bi-lateral trade.

“Philippines is keen on improving its trade relations with the Sultanate,” the Filipino diplomat reiterated.

Cultural Exchange Agreement Also

Omar M. Pangarungan

In addition to the trade agreement, another mutually beneficial treaty is in the works. The two Muslim nations share much in the way of culture and heritage and they therefore decided that it is in their mutual interest to have a more open flow of cultural benefits between them

“The draft of the agreement has already been finalized and the signing is expected anytime from now,” said Pangarungan.

“Once the signing is done, the channels of exchange of scholars, preservation of heritage, artists, etc., will open,” he said.

Filipino Scholars Wanted in Oman

It is especially of interest to the Sultanate to have Filipino scholars welcomed at Sultan Qaboos University. Many innovative scholars from the Philippines travel to the United States and other western countries, influencing the academic world there. It would benefit Oman to have such intellectuals spend time in the Sultanate.

Omani Company Sends Water Desalination Unit to Hard-Hit Japan

The Sur Medical East Trading Limited Liability Company, an Oman-based business which is the sole representative of the Japanese firm J-Action Commerce Co. Ltd., recently sent two mobile water desalination units for use by Japanese citizens who are living in emergency shelters in the city of Ishinomaki in the Miyagi Prefecture.

Trade Partners for Six Years

The two companies, Sur Medical Trading and J-Action Commerce have been partnering together over the past six years. When Japan was first hit by the devastating 8.9 magnitude earthquake and the subsequent calamitous tsunami, Bader bin Nasser Al Farisi, the managing director of Sur Medical, sent two mobile water desalination units to be sent to the area. (The units were from the Japanese company.)

“People were not having access to clean drinking water. The desalination units ordered by Al Farisi have been working there for them since April 17, with Omani national flags, to show the friendship of Omani people to Japan. People in the affected areas are very grateful to the people of Oman for this,” said the president of J-Action Commerce Co. Ltd., Hidaki Hashimoto to representatives of the media at the Japanese embassy in Muscat on Sunday.

Oman and Japan Trade

Big Support From Oman

Mr. Hashimoto further explained that, “This factory which was making water desalination units was severely hit by the quake. However, the additional orders from Oman came as a big support for them and they have started manufacturing desalination units again.”

Al Farisi added that the recent order of desalination units from Japan would then be exported to India and Africa.

Close Friends, Too

“Besides, three sets of large-scale desalination equipment will be imported into Oman, including one which will be installed in a Royal garden,” Al Farisi said.

The desalination units from J-Action have already been in use in Sur since September said Al Farisi. “They have been providing purified water supply in the rural areas and has been well accepted by the people.”

Hashimoto added that, “So far Bader has been to Japan three times and he is now a very close friend of mine.”

Oman’s Photocentre to Distribute Olympus Products

Photcentre will become the official distributor of Olympus digital cameras, binoculars and dictation products in the Sultanate of Oman, it was announced by Olympus Europa GmbH at the beginning of the week.

Roman Askari, the head of Sales and Marketing for the Middle East for Olympus Europa, headquartered in Hamburg, Germany, gave the following statement:

“With Photocentre and its many years of expertise in marketing consumer electronic brands, Olympus is confident that we will improve the position of our brand in Oman.”

Olympus is one of the world’s premier manufacturers of optical and digital technologies. Their products are widely used by businesses, health care facilities, science, industry and consumers throughout the globe. They were first established in Japan in 1919 and today there are over 33,000 employees working for Olympus around the world.

The new partnership with Photocentre is expected to benefit Olympus by partnering with an Omani company with an excellent reputation, which has been a provider of regional photographic services in Oman for almost forty years.

The announcement was made at a joint press conference. In attendance at the press conference were Roman Askari and the General Manager of Photocentre Mohammad Al Farei, in the presence of representatives of the media and important dealers and business partners of Photocentre.

Since the creation of Photocentre, which is a fully integrated part of the Zubair Corporattion, one of Oman’s top family business groups, it has been a distributor for many of the leading global brands in the realm of photography and imaging. Photocentre has become well known for its quality products and professional after-sales service, making it almost an icon among Omani businesses. Photocentre is allied to a powerful network of resellers and dealers, including the Sultanate’s best retailers.

The General Manager of Photocentre, Mohammad Al Farei said,

“We are very proud of this new strategic partnership with Olympus, one of the world’s leading brands in Digital Imaging.”

“Photocentre is confident that we will be able to use our many years of knowledge and expertise in the Omani market to help take Olympus to new heights and promote and sell their outstanding range of digital imaging products. This new partnership is another commitment from Photocentre to its customers in ensuring the provision of the very best quality products and services,” he added.

Codeshare Deal Forged Between BMI and Oman Airlines

British Midland AirwaysCodeshare Deal Finalized

The second largest airline based in Heathrow Airport in  London, British Midland International, BMI Airways, has sealed a codeshare deal with Oman Air which is designed to allow passengers to reserve flights from the UK to the airport in Muscat.

The new arrangement will include flights originating in the British cities of Aberdeen, Edinburgh, Belfast and Manchester which stop in Heathrow and switch to one of Oman Air’s Airbus A330 planes at Terminal 3 and head out to the Gulf sultanate of Oman.

Extending Global Reach for BMI

Joerg Hennemann, BMI commercial officer praised the deal: “Our new codeshare with Oman Air further extends our global reach and will enable seamless and convenient travel connections for customers of both airlines between the Sultanate and key regional cities of the UK.”

Everyone Benefits

Peter Hill, chief executive officer of Oman Air also believes the codeshare deal will benefit both parties greatly, explaining that the codeshare partnership “will not only extend the range of options open to each airline’s customers, but will also encourage visitors to both Oman and the UK and promote tourism between the two countries.”

Other Middle Eastern countries serviced by BMI are Amman, Beirut, Cairo, Jeddah, Riyadh, Damascus, Dammam, Tbilisi and Tehran.

What If the Oil Stops Flowing from Oman Too?

china oil supply

China Imports Oil From Oman

As tensions in the Middle East continue to rise, concern about the political stability in Oman is mounting. Unrest in the sultanate has not yet reached the levels seen in countries such as Libya or even Bahrain, with only 2 deaths which can be attributed to clashes between demonstrators and security forces, but there are fears that the situation in Oman will worsen.

China and Asia Worried

The majority of oil exports from the Middle East go to China and Asia who are especially worried that Oman will join in the general grassroots uprising spreading like wildfire throughout northern Africa and the Middle East, breeding fear in the east that the supply of oil from Oman may be disrupted.

Oman is not a member of OPEC (Organization of Petroleum Exporting Countries) but it does have the largest supply of oil reserves of any country in the Middle East which is not a member.  In 2010 Oman produced 863,000 barrels per day of total petroleum liquids, almost all of which was crude oil. Over the past three years oil production there has increase by more than 20%.

Can Saudi Arabia Fill In for Libya?

At the moment there is nothing but uncertainty about how much the flow of oil from Libya will be disrupted due to the war raging there. Saudi Arabia has said that it can increase output to cover the Libyan deficit of oil deliveries, but to what extent it can do this is a big question.

West Looking East with Concern

The main importers for the oil from the Middle East and North Africa are Asia and China, who are watching the developments in the region with growing concern. Most likely, if the situation worsens and oil supplies are severely  disrupted, China and Asia will turn to Mexico for their oil, leaving countries such as the US, Great Britain and Europe to fend for themselves.