Job Opportunities Exploding in UAE and Other Gulf States

Sanjay Modi, Managing Director of Monster.com

Over the course of the past year available jobs as listed on the internet has soared in the UAE by 33 percent. The figure, which was announced by the monthly Monster Employment Index, is based on online job posting activity which the index tracks in 12 leading industry sectors in the six GGC countries and in Egypt.

June’s Monster Index shows that the UAE leads the rest in the increase in online job postings over the past twelve months, while Kuwait followed closely with a 30 percent increase in job opportunities from June 2011 until June 2012. Qatar was tracked with a 23 percent gain.

Overall the increase was even more impressive, growing by an incredible 39 percent annually. Only Saudi Arabia did not grow in the double digits, expanding by only 2 percent for the year in its online job opportunities.

In Egypt job openings posted online surged by 15 percent, while in Bahrain and Oman online job listings increased by 18 and 20 percent respectively.

Mobile Roaming Rates Reduced in GCC Countries

Roaming Tariffs Going Down in GCC Countries

The Telecommunications Regulatory Authority (TRA) of the Kingdom of Bahrain, in conjunction with the Gulf Cooperation Council (GCC) has decided to implement a reduction in charges for all international calls made to GCC countries while roaming in those GCC countries. This decision comes in the wake of the decision by the ministerial committee of the GCC Council to introduce maximum prices.

This step will help bring down the roaming prices for voice calls in GCC countries. Consumers can expect their phone bills to be lowered for calls made back home while they are traveling, and will reduce the cost of international calls while they are roaming. This new implementation of a ceiling on rates will only apply to voice calls which are made within and between GCC countries. At this point in time data services such as mobile broadband or SMS costs are not included in the price reduction.

General Director of the TRA Mr. Mohamed Bubashait commented on this news:

"The implementation of maximum prices will bring further saving to consumers roaming between the GCC member states and will support cross-border business activities. Cost-effective and efficient telecommunications services raise the competitiveness of all economic sectors by way of providing cost reductions and convenience of access to telecommunications services. This contributes towards improving business and individual productivity and enhancing the Kingdom's and the region's attractiveness as a global investment center."

Mr. Bubashait further commented that, "This is a major achievement for TRA, which has led the development and negotiation of the GCC roaming regulation for the benefit of all GCC consumers."

Month-Long “Box Appeal” Fundraiser Comes to a Close in Oman

Already in its fourth year, “The Box Appeal” is a charitable campaign designed to help over 10,000 impoverished individuals across the Middle East to acquire basic supplies at no cost.
First begun in 2007 at the Radisson Blu Hotel in Dubai Media City, its operation soon expanded until over 20,000 boxes were distributed across the region over the past four years. The original intention of what was first dubbed the “Shoebox Appeal” was to supply laborers throughout the UAE with everyday necessities whose purchase would have taxed their limited resources. The success of this first effort caught the attention of the Rezidor Hotel Group which decided to bring the charity push to the entire region.

Box Appeal’s First Year in Oman

Radisson Blu Muscat

This year, from August 15 to September 15 the Radisson Blu and Park Inn Hotels in Muscat held the “Box Appeal” in Oman for the first time. The campaign has taken on a broader perspective, aiming to help all those in society who have less. These same hotels in locations in the UAE, Egypt and Bahrain as well as Oman participated, helping to collect about 10,000 boxes of basic supplies to distribute to underprivileged people throughout MENA.

“As many as 13 hotels from across the MENA region are expected to take part,” says Michael Jacobi, general manager, Radisson Blu, Muscat. “The two hotels in Muscat are aiming to fill 1,000 boxes collectively, helping to ensure this is the most successful edition of the appeal to date.”

The campaign works simply. Someone who wishes to take part is encouraged to get a small box from either the Radisson Blu or the Park Inn Hotels. They can also acquire a box from City Centre Muscat or Qurum City Centre, the Box Appeal partners. Once they have a box the volunteer then fills it with small, but essential everyday supplies, such as toothpaste, a toothbrush, comb, brush, towel, soap and anything else they feel is useful and appropriate.

Great Community Spirit

A local charity, Dar Al Atta’a will then distribute the boxes to families and individuals most in need. Jacobi added that many additional local companies have promised to lend a hand to the campaign in what Jacobi called an “astonishing show of community spirit.”

Responsible Business Practice

The general manager of the Park Inn Muscat, Rabih Zein, added that,

“The campaign reflects the Park Inn philosophy of responsible business. We have been actively involved in a plethora of charity activities and social service programs such as blood donation and marathon collection. We encourage people across Oman to come forward and collect, fill and return the boxes in the true spirit of giving. Most of us hardly give a thought to these everyday commodities but the boxes will make a difference to someone for who even the basics count as luxuries.”

Michael Jacobi concurred:

“We hope the simplicity of The Box Appeal campaign will draw the attention of the public. Anyone can do this – it is so easy to get involved and contribute,” stated Jacobi.

S&P Hopes GCC Aid Package Can Be Enlarged

Standard and Poor’s (S&P) announced yesterday that the $20 billion package pledged to the embattled countries of Bahrain and Oman by the GCC (Gulf Cooperation Council) may need to be augmented in order to achieve the desired result.

Creating Jobs Can Relieve the Tension

The aid package, which was promised earlier this month, will be distributed evenly between the two nations and will be used to create new infrastructure and develop housing projects, which will in turn create jobs and help bolster the economy, with the result ultimately being to calm the tensions these two countries are experiencing at the moment.

The concern of S&P is that the demonstrations and unrest will lead to a depression in the progress of the economies of those two countries.

“Protests and political instability are in our view likely to negatively affect economic performance and depress future growth prospects, particularly for Bahrain, in its role as an important financial center,” S&P said. “Oman will also likely be affected in this way. At this point, there remain questions as to whether or not GCC economic aid will be able to offset these political and reputational risks.”

Despite their doubts, S&P, which rates the credit risk of investments, still believes that the aid can improve those countries’ credit rating over the long haul.

Bahrain Risk Rating Reduced

Bahrain was already downgraded by three notches since the mass protests began there during February. Oman, which has had a less disruptive time, has not yet been downgraded, but S&P has Oman on watch. This is in line with the other major ratings agencies, Moody’s Investors Service and Fitch Ratings.

“We are of the view that the economic aid package, which we understand will be comprised of donations by GCC members, will not immediately affect Bahrain’s and Oman’s ratings or ratings outlooks,” S&P added.

“That said, we believe the package could contribute positively to the sovereigns’ creditworthiness over the medium to longer term.”

Protests for Better Wages Continue in Oman

Demonstrating for higher wages, private security guards blocked the main airport in the Gulf State of Oman on Wednesday.

Concessions Granted

Despite the fact that Oman’s ruler, Sultan Qaboos bin Said, has granted several concessions since the unrest began there several weeks ago, the unrest has continued apparently unabated. The Sultan, who has been in power for 40 years, as already decided to give some legislative powers to the Oman Council, to double monthly welfare payments, and to raise pension payments. This follows the pattern of other Gulf States who are offering cash to protesters in an effort to quell the unrest and maintain order.

In the latest action by demonstrators, about 400 to 500 security guards, who are privately employed by several different security companies, staged a protest on the road to the Muscat airport.

One protester, who wished to remain unnamed, said that, “Our objective of this protest is for our wages to be raised.”

The protesters left the scene when the police asked them to disperse. No violence was reported, although some travelers did not make their flights in time.

Other Protests in Oman

Workers from the state run oil firm Petroleum Development Oman (PDO) also demonstrated on Tuesday for better wages. Several hundred employees staged their protest at the company headquarters and in the oil and gas fields. This work stoppage was the first to disrupt a Gulf energy firm since the demonstrations swept through the region.

There have been protests at Oman International Bank, Oman Investment Finance Company and the Intercontinental Hotel, which is owned by the government.

There have also been demonstrations for improved political conditions, including sit-ins at the consultative Shura Council in Muscat, in front of the governor’s office in Salalah in the south and also in Sohar. Along with improved wages, and an increase in the number of jobs, protesters also demand an elected parliament and a new constitution.

Gulf States Regaining Stability, At Least for Now

Sultan Qaboos bin Said

This past Sunday was the first trading day throughout the Persian Gulf region since the announcement by Gulf State foreign ministers that they were pledging $20 billion in financial aid to assist fellow Gulf States Oman and Bahrain, who have been facing civil unrest and anti-government demonstrations for the past several weeks. This boost has proved to be welcome medicine for the region, prompting a strong showing on the Gulf’s major markets. Dubai’s main market was the leader in gains with an increase of 4.3% up to 1,513 points.

Saudi Arabia Quells Mass Protest with Mass Show of Force

Another factor contributing to the improved market performance was the averted major protests which had been feared were going to appear in Saudi Arabia. But the Saudi main financial index increased by 1.5% to trade at 6,693 points. The much feared anti-government protests in Saudi Arabia were thwarted by a huge show of power and force by the Saudi security forces, thus, at least for the time being, quelling the national fervor to protest.

Oman Grants More Handouts

Helping to improve the optimistic market mood was the announcement that Oman’s ruler, Sultan Qaboos bin Said would be doubling the welfare payments to his citizens while also increasing pension payments. This is just the newest in a series of rulers offering improved financial entitlements to citizens as a result of the regional unrest which has been taking the Arab world by storm in the last few months.

More Power to the People?

The sultan has also agreed to grant lawmaking powers to the Oman council. This is a huge concession on the part of the sultan who has led Oman as a dictator for the past 40 years, with only himself and his cabinet able to create legislation. The Oman Council, until now, was only able to advice the sultan. Consisting of two parts, the elected Shura Council and the State Council, which consists of members who the sultan has himself appointed, giving legislative power to the council is a decision which came on the heels of shocking protests in Oman which left one person dead.

The concessions were met with mixed reactions on the part of the protestors, who continue to hold a vigil outside the Shura Council, some were skeptical while others were hopeful.

“It does not mean much at the moment. We will celebrate when the Shura Council is granted real powers in the running of the government,” protester Hadi Suleiman said.

Faiz al-Ashour, another protester, said: “It looks good and it shows that the protests are beginning to bear results toward meaning political reforms.”

Oman Air Employees Join National Unrest Movement

This past Sunday employees of one of Oman’s major companies took to the streets outside the headquarters of Oman Air in Muscat, not far from the Gulf state’s international airport in Oman’s capital city. This latest protest comes on the heels of several days of demonstrations in Oman demanding political reforms. Oman, together with Bahrain, the small island state in the Persian Gulf, have been the locales for the largest and most enduring outbursts of unrest in the Gulf states which is part of the general unrest transpiring in the Arab world since January 25th’s explosion in Tunisia and then in Egypt.

No Disruption in Flights

According to several witnesses about 100 employees at Oman Air joined together in the late morning hours to call for better working conditions. The national air carrier’s chief officer for corporate affairs, Philippe Georgiou stated that no flights were disrupted by the demonstration and that the airline is ready and willing to discuss issues with the protesters. Mr. Georgiou told the Associated Press that the demonstrators represented several corporate departments and they have a wide range of demands, one of which being higher compensation.

Mr. Georgiou said of the timing of the protest that, “The general environment is of people expressing their views … in the region.”

Watchful Eye on Oman

The other Gulf nations, especially Saudi Arabia, are keeping a wary watch on the unrest in their fellow regional states, especially Oman. Oman, along with Iran, shares the responsibility of controlling the crucial waterway through which 40% of the world’s oil tanker traffic passes, the Strait of Hormuz.
Oman Air services 41 destinations, mostly in the Middle East and India, with a few routes to Europe and Southeast Asia as well.

Government Shakeup

Protesters have come out to demonstrate throughout Oman, staging sit-ins and similar events, to call on the government to reform the economy and hold investigations into who is responsible for attacks on protesters. In response to the unrest, on Saturday Sultan Qaboos bin Said, the ruler of Oman, fired three key government officials in what was the second installment of government shakeups in the same number of weeks.

GCC Planning Aid Package for Oman and Bahrain to Quell Discontent

The Kuwaiti newspaper Al-Qabas reports today that the six-nation Gulf Cooperation Council are holding discussions about sending financial aid to two of its members who have been hit by demonstrations and protests, Bahrain and Oman, as the Middle East continues to show signs of instability and violence.

The other four members of the GCC, Kuwait, Saudi Arabia, Qatar and the United Arab Emirates are considering sending an aid package to help improve the economic and social conditions of their less prosperous neighbors. Together the wealthiest of the six GCC states are said to have about $1.35 trillion in surplus assets, gathered just in the past several years of high oil prices. The aid would be designed to help pay for housing for the needy, create jobs and improve public services in Oman and Kuwait.

Protests in Bahrain have been focused largely on demands for political and economic reforms, while the demonstrators in Oman are more concerned with political corruption and lack of jobs.

Some analysts are comparing this proposed aid package plan of the GCC with the famous Marshall Plan of the United States, which helped rebuild and support Europe in the aftermath of the devastation of World War II. The plan was named after the creator of the plan, the United States Secretary of State at the time, George Marshall.

Stock Market Stalled as Bahrain Protests Continue

Not only do regimes topple and heads of state crumble in response to massive demonstrations in the Middle East, but so too does the equities market. As protests continue in Bahrain, political uncertainty is causing investors to step back and wait before taking risks on the purchase of stocks.

The Bourses will be open on Thursday in both Bahrain and Qatar but in other Gulf States the markets are scheduled to be closed either for the weekend or for a religious holiday.

Managing Partner of Dubai-based asset management company Frontlane Capital, Hashem Montasser commented on the poor reaction to the Egyptian crisis in the Gulf Region.

“Revolution in Egypt was shrugged off too easily by Gulf markets," he said. "Markets were mispriced in the sense that risk premiums have gone up, but equities prices didn't reflect that. Bahrain has become the catalyst to now re-price Gulf equities."

Calling the attack of an overnight encampment of protesters in a central square in Manama “real terrorism,” the leader of the main Shiite opposition bloc in Bahrain expressed his outrage, and also described seeing at least 50 armored cars traveling in the direction of Pearl Square in Manama.

Montasser added that, as far as investing is concerned, Bahrain has heightened risk for at least the next couple of months."