Duqm Refinery Construction Project Launched

Sohar Port in Oman

Jacobus Nieuwenhuijze, the official in charge of the construction of the planned Duqm refinery announced that the project should be completed by the end of 2019.

“Construction work will complete in fourth quarter of 2019,” stated Nieuwenhuijze about the refinery with is expected to have the ability to process 230,000 barrels of crude oil every day.

The project director made his remarks during a ceremony which was held at Knowledge Oasis Muscat. An agreement was signed during the proceedings in which the Duqm Refinery will be allowed to use a designated 900-hectare area to make field studies, preparation and clearance so that the project can commence. The agreement was made with the chairman of the Special Economic Zone Authority of Duqm (Sezad), and Eng Essam Al Zadjali, Duqm Refinery’s chairman and the chief executive officer of Oman Oil Company (OOC).

Chief executive of Sezad said that it is expected that the civil work can begin in either April or May of the coming year. After that the engineering, procurement and construction work will be able to go forward.

WEF Panel Discusses Economic Trends for 2015

Global economic trends were at the top of the agenda at this year’s World Economic Forum. Held in Dubai’s Madinat Jumeirah from November 9 until November 11, the summit brought together some of the world’s most notable leaders in the business and economic realm.

Majid Jafar at World Economic Forum

A panel discussion on global trends in 2015 offered a wide variety of perspectives from WEF’s Global Knowledge Networks. Included on the panel were Kuwaiti government minister Rola A. Dashti; CEO of Crescent Petroleum Majid Jafar; Kevin Rudd, former prime minister of Australia; Adam Posen, President of the Peterson Institute for International Economics; and Amina Mohammed, Special Adviser on Post-2015 Development Planning at the United Nations.

Majid Jafar, who also the vice-chairman of the WEF’s Global Agenda Council on Youth Unemployment as well as CEO of Crescent Petroleum, said that:

“On the one hand the government asked the private sector to create jobs, but if the governments are rising salaries or hiring more, the two are actually at odds.”

He added that it is necessary that there be collective action between governments and the private sector.

Amina Mohammed and Rola Dashti agreed that one thing the world is in dire need of is quality education, stating that regional countries are today living through a culture of credentials, but not of knowledge. Adam Posen focused his words on the problem and challenge of regional economies integrating into the global economic marketplace.

The annual summit addressed about 80 issues of international concern, bringing together over 1000 delegates and world leaders such as Al Gore, Gordon Brown and Jose Manuel Barroso.

Oman’s Insurance Industry Growing Apace

According to the Times of Oman the Capital Market Authority of Oman announced that the country’s insurance industry has posted a year-on-year growth of 8.8 percent for the first 6 months of 2014.

Unaudited figures showed a total volume of insurance premium sales totaling 226.8 million Omani rials ($589.2 million.) After reinsurance the total net earned premiums came to about OMR 122 ($317 million) compared to last year’s total of OMR 106 million ($276 million.)

Jother takes Best Company of the Year Award

Jothor, a student company from the Higher College of Technology in Oman, was the recipient of the coveted “Best Company of the Year 2014” award. The award was presented by Sharikati, under the auspices of Dr. Ahmed Mohammed Salem Al Futaisi, Minister of Transport and Communications, at the Sultan Qaboos University Cultural Centre in association with Oman Oil and Sultan Qaboos University.

Discarded date palm leaves can be recycled into soil

Eighteen students from different fields worked together to develop a form of artificial soil created from old date palm leaves. The leaves are shredded into a material that can be used either as fertilizer or for soil-free agriculture.

The executive director of Jother, Al Mutassim Said Al Harasi, said that,

“We developed a medium that works as an alternative to soil using farm residue by recycling it to start our business. We will use this prize money as capital for the next step in our business. Winning this competition justified all of our efforts and hard work as a team during these past few months.”

Airfares to India Dropping After Summer Vacation

Jet Airways lowering fares as summer season subsides

Jet Air has lowered their airfares to the most popular destinations as demand for tickets subsides with the summer. Air India is making their airline more attractive by allowing 40 kg of baggage per person.

“We slashed our fares to different Indian destinations, especially to Mumbai, Trivandrum and Kochi,” said Rias Kutteri, Country Manager of Jet Airways.

High fares have been coming under attack from non-resident Indians who have been forced to spend the money to travel back for summer vacations and Indian festivals. Riyas says airlines flying to India have been under pressure concerning airfares.

“It’s only during festivals and vacations that more people travel. These are the seasons when airlines increase fares to make more revenue. Even though the coming months will witness festival time in India, we are reducing the prices”, he said.

Inflation on the Rise in Oman

Cost of living in Oman on the rise

The Sultanate of Oman reported an increase in their rate of inflation by 1.21 percent through June 2014 as compared with the rate for the same time period in 2013. A decrease in the rate of inflation was seen in June 2014 when compared with the previous month, coming in at 0.07 percent less.

The information was supplied by the National Center for Statistics and Information, reporting on the latest Consumer Price Index.

The price for foods and drinks, which makes up about 24 percent of costs for families and individuals on average, went up by 2.20 percent during the 12-month period ending in June, 2014. Housing, utilities and fuel costs rose by 1.26 percent, while the price for education increased by 6.24 percent.

Health costs rose by 6.01 percent; communication expenses grew by 0.13 percent; home furnishings, household equipment and maintenance climbed by 7.37 percent.
early 1904.

Omantel Gets High Rating from Moody’s

Omantel Gets Good Rating

Oman’s leading telecom provider, Omantel, is continuing to get high ratings from Moody’s and Standard and Poor’s rating system. Just as in 2013 Omantel received a BBB+/A-2 rating from S&P, and an A3 rating from Moody’s.
Moody’s explained:

“The A3 rating combines Omantel’s fundamental credit quality, strong financial profile, which is reflected by the company’s solid free cash flow generation despite its high capital expenditures for network upgrades. The rating is also driven by our expectation that the company will maintain a conservative leverage profile, with debt/Ebitda not exceeding 1.5 times. In addition, the rating reflects the high barriers of entry to the Omani telecom market given the country’s large territory relative to its population, which acts as a deterrent to potential entrants into the market.”

“We are pleased that both Standard and Poor’s and Moody’s continue their high ratings for Omantel. Their rating speaks volumes and affirms Omantel’s strong financial performance and its leadership position in the domestic market. Omantel’s strategy remains focused on customer experience, growth and market leadership with an aim to enhance shareholder value,” said Talal Said Al Mamari, the chief executive officer of Omantel.

World Cup Stimulating Boom in TV Sales in UAE

TV Sales Soaring as Date of World Cup Approaches

This is not the first time an upcoming major sports event has triggered an explosion of sales of large screen televisions, but this time around is certainly special. The FIFA World Cup games are less than two weeks away, and fans are scrambling to get the best seats, in their living rooms in front of their brand-new televisions.

Retailers are seeing a sharp rise in the number of 55-inch models flying off the shelves, with the vast majority of TV sales for the 45 to 65-inch species.

Ashish Panjabi, chief operating officer of Jacky’s Electronics explained:

“It is a bumper time for retailers now. As it is also overlapping with Ramadan, fans will be awake at night and that is the time when matches are on.”

Oman Ports Experienced High Growth During 1Q 2014

This past year saw a substantial growth in the amount of cargo handling in the ports of Sultan Qaboos and Salalah despite the fact that the actual number of vessels moored at both ports saw a decline.

During the first quarter of 2014 Port Sultan Qaboos (PSQ) and Port of Salalah

Salalah Port

experienced growth of handling of cargo by 12.7 percent at PSQ and an impressive 58 percent at Salalah port.

The National Center for Statistics and Information reported that the total volume of loaded and unloaded export cargo increased from 1.26 million tonnes during the first quarter of 2013 to 1.42 million tonnes by the end of March 2014. At Salalah port the report stated that 1.69 million tonnes were handled during the first three months of 2013 compared to 2.68 million tonnes during the same period in 2014.

Interestingly, the number of mooring vessels docked at PSQ and Salalah ports saw a shrinkage of 6.5 percent; 973 vessels at the end of March 2013 down to 910 vessels.

Mall of Oman Coming Soon

Coming Soon: the Mall of Oman

Dubai-based developer Majid Al Futtaim Properties (MAFP) is about to embark on an ambitious building spree throughout the Middle East and North Africa (MENA.) On the list of construction projects slated to go up between 2014 and 2016 are hotels, complementary mixed-use communities, and of course shopping malls. The ‘Mall of Oman’ is planned to be constructed in the Bauwsher district of Muscat, and is budgeted to cost about OMR 180 million ($467 million.)

The mall will be the largest in the Sultanate when it is completed with 350 retail shops, entertainment center and restaurants in a space occupying 157,000 square meters.

George Kostas, CEO of Majid Al Futtaim Properties said: “Oman’s new shopping and entertainment destination is expected to generate 1500 jobs for its construction and a further 3500 jobs once opened, and will enhance the Sultanate’s retail and entertainment offering for both residents and tourists. The Mall of Oman will also provide an opportunity for our retail partners to further establish their businesses in the Muscat market.”

The MAFP group has three business units including shopping malls, hotels and housing developments. They are invested in or manage 12 income producing properties in the United Arab Emirates, Oman, Bahrain, Egypt and Lebanon.

Chief Executive Officer Iyad Malas of MAFP commented:

“The year 2013 was a year of solid top line growth for the business. Revenue growth remained stable at 10 per cent year-on-year, while Ebitda grew to 11 per cent, reflecting strong performance across all parts of the business. We not only delivered robust business results but have also increased efficiency by uniting our companies under one umbrella corporate brand — Majid Al Futtaim — as we embark on the next chapter of our regional expansion plans.”