Oman Going to Riyadh Travel Fair 2012

Riyadh Travel Fair

After realizing a 17% increase in tourism from the Kingdom of Saudi Arabia (KSA) to the Sultanate of Oman from 2010 to 2011, the Ministry of Tourism in Oman has decided to participate in the upcoming Riyadh Travel Fair 2012.

Director General of Tourism Promotion at Oman’s Ministry of Tourism Ali Khaburi said:

"Saudi Arabia is a key tourism market from many perspectives. Saudi visitors are growing in number and we think they are also increasing their length of stay. The market is broadening from business and family segments with short break leisure travel becoming more prominent. We also think Salalah has significant year-round potential for the Saudi Arabian market, and growing demand for travel will lead to non-stop air services between Saudi Arabia and Salalah.”

The fair will be held from May 15 to 18 and is considered an important event for tourism networking with many countries participating. The Oman Ministry of Tourism is especially excited to showcase many of the country’s most popular tourist destinations, with an emphasis on newly opened resort hotels at Jebel Sifah and Salalah.

Middle East Investors Anxiously Awaiting Facebook IPO

The excitement about the upcoming Facebook Inc IPO, scheduled for May 18 is about to go up several notches as Mark Zuckerberg, CEO and founder of the Facebook empire, embarks on the roadshow this coming Monday.

In the financial world a road show is designed to drum up interest in the company which is going public among investors. Company officials travel from investor to investor, explaining the potential value in backing their company. In the case of Facebook it is hard to see how interest can increase, as it already has reached borderline hysteria.

Investors from the UAE have been watching Facebook’s developments, anxiously waiting the launching, said by many to be the most awaited tech-related IPO since Google’s in 2004.

One investor, Rai Gaga from the UAE, has already informed his fund managers to get ready for the moment.

“I have been waiting since the first announcement was made in December. I have filled out the form. Although I am not sure of getting it due to such high demand. I am planning to invest anywhere between $150,000 to 200,000,"said Gaga.

GCC Planning Long-Term Food Surplus Strategy

GCC Planning for Food Shortages with Food Storage Silos

As the population of the six Gulf Cooperation Council countries continue to grow apace government officials are beginning to prepare a long-term strategy which will ensure a constant and adequate food supply under any circumstances.

Officials fear that the GCC countries’ heavy reliance on food imports could leave the countries vulnerable to food price changes and other global conditions. In the face of this concern the GCC, which together control over 40 percent of the world’s oil supply, has decided to create a food surplus which could maintain their needs for up to one year. However at least one official, Gasem Al-Assiri, the sub-regional office coordinator for the GCC and Yemen in the UN Food and Agriculture Organization (FAO) believes more needs to be done.

In an interview with the Emirates Centre for Strategic Studies and Research (ESCCR) Al-Assiri said that there are several reasons the GCC should be prepared with an adequate food supply on hand. He explained that the countries of the region should protect themselves against global price fluctuations of food, which, as domestic food consumption increases and eating styles change with increased affluence, can be a dangerous development if the countries are not prepared.

"The GCC states must draft a long-term plan for any food emergency whether a natural or geo-political problem," he said.

"The building of strategic reserves of basic commodities would protect the country from price fluctuations, and from problems affecting food producing countries that prevent export of agricultural goods."

Al-Assiri added that the GCC states have already begun designing silos for grain storage of up to 12 months, which should be enough reserve food to get the GCC states through any foreseeable food shortages.

"One of the most important features of this strategy would also be the establishment of an agency to monitor water and food security in GCC states, including all factors related to domestic production or food deficit, global production or prices. This will help decision makers to take the right decision and solve many problems for them," Al-Assiri said.

"We must keep in mind that the problem of food security cannot be solved domestically, but through international cooperation."

GCC Imposing Additional 100 Percent Health Tax on Tobacco Imports

Anti Smoking Poster from Saudi Arabia

Expected to take effect in the coming month, the GCC is placing a 100 percent “health tax” on cigarettes and other tobacco products imported into the area.

The finance ministers from the six Gulf States are meeting in May and will decide whether or not to approve the tax height said one Saudi official.

The Ministry of Health supervisor of the Saudi program which was designed to discourage smoking, Majed Al-Monief said the ministers of finance and health from the GCC states have already decided, at least in principal to raise the tariff from the present 100 percent to 200 percent.

"The new duty will be known as the 'health tax,' taking into account the huge amount of money each GCC state spends on the treatment of tobacco-related diseases as well as for the rehabilitation of smokers. The finance ministers will decide when the tax will take effect," Al-Moneif said.

"The GCC states can take a decision in this respect unanimously. The Gulf states had earlier hiked tobacco customs tariff from 50 to 100 percent, and are now moving toward making a further hike of 100 percent," he added.

The additional funds raised via the health tax will be used to help prevent smoking and hopefully lesson the destructive impact smoking has, especially on young people.

In spite of the heavy taxes which already exist on tobacco products in Saudi Arabia, imports climbed by 57 percent in 2011 compared to 2009. According to reliable statistics 22,000 deaths occur in Saudi Arabia every year from a variety of illnesses connected to tobacco use. The World Health Organization says there are 6 million smokers in the Kingdom, approximately 25 percent women.

Saudi Arabia is the fourth largest importer of tobacco in the world with average consumption per person estimated to be 2,130 cigarettes each year. According to the WHO about 5 million people die every year due to tobacco related ailments.

Oman Allocating Millions for Affordable Housing

Saif bin Amer al Shaqsi

At the Oman Affordable Housing Development Conference held at the Grand Hyatt in Muscat on April 16 it was announced that Oman’s government is planning on setting aside RO 80 million ($208 million) for social housing projects.

From the beginning of 2011 until March, 2012 upwards of 3,174 housing allocations were provided to those in need, at a cost to the government of RO 60 million, ($156 million.) About 400 soft and no-interest loans were also distributed valued at about RO 7 million ($18.2 million.)

The conference was organized by Al Alamia Conference and Exhibitions Company, the International Centre for Quality and Productivity in the Middle East in collaboration with the Housing Ministry.

The focus of the conference was to explore ways to develop the housing sector affordably, not just in Oman but in the Middle East more generally. Also discussed were ways to attract new investors, especially from the private sector, the steps needed from the point of view of government regulations to develop successful projects, new designs and models of development, new construction technologies and how to stay within budgets for projects, especially when developing affordable housing for the general public.

The conference was held under the auspices of Saif bin Amer al Shaqsi, the Under-Secretary of the Housing Ministry.

Muscat Duty Free Renews Contract with Pure Gold Jewelers

Muscat Duty Free announced its decision to renew their contract with Pure Gold Jewelers and to make them the exclusive outlet for retail jewelry at the Muscat International Airport. The endorsement comes after Pure Gold Jewelers completed three consecutive years of phenomenal growth at Muscat Duty Free, growing by 53 percent since launching operations in 2009.

Karim Merchant, CEO of Pure Gold Jewelers

Karim Merchant, the CEO and Managing Director of Pure Gold Jewelers responded to the renewed agreement with Muscat Duty Free:

“We are honored by the confidence and trust the Muscat Duty Free management has placed in us and we truly appreciate their decision to renew our agreement. Oman’s push into tourism will definitely see a phenomenal increase in passenger traffic through the Muscat International Airport and we are well placed to meet the resulting demand. The agreement is in line with our Chairman’s vision to be the exclusive retailer for gold and jewelery in the major duty frees in this region and eventually all over the world.”

In addition Merchant said, “With the support of the Muscat Duty Free management team we intend to double our business at the Muscat Duty Free in the next three years.”

Growth of traffic through Muscat International Airport has shown significant gains over the last year, with an 18 percent increase in total passenger traffic in January 2012 over the same period one year ago, in 2011.

The general manager of Muscat Duty Free, Tom Byrne commented:

“We consider Pure Gold Jewelers as one of our long-term business partners and are very pleased to have the brand on board as part of our product offers. Being the only gold and diamond jewelry outlet operating at Muscat International Airport , I am sure our customers will see a tremendous value in this partnership with Pure Gold Jewelers. Following the renovation in 2011, Muscat Duty Free has seen a very positive response from our customers and we believe that our partnership with a prestigious brand like Pure Gold Jewelers will continue to add to this success.”

Telecommunications Giant Omantel Appoints New Leadership

One of Oman’s largest telecommunication service providers, Omantel, has announced two new appointments to their operating staff: Samy Ahmed al Ghassany will become the new Chief Operating Officer and Talal Said al Maamari will become the new Chief Financial Officer.

The Chairman of the Omantel Board of Directors, Sultan Hamdoon al Harthy, commented on the development:

“These new appointments will bring further momentum to the realization of Omantel vision and objectives as we continue to lead the market and expand our business locally and regionally and are in-line with regional and international benchmarks in telecom industry.”

Omantel Chairman Al Harthy

“This is an important step in our progress as we put in place a vivacious senior executive team that can ensure our leadership in the market and carry us into the future. The decision by the Board to name these leaders is a testimony to the depth, flexibility and breadth of Omantel’s senior team. The Company has focused in the past few years meticulously on preparing Omani leaders to take on Omantel’s most challenging assignments. That effort is now paying off and we are confident that with their dedication, passion and innovative spirit these two leaders will be able to help not only maintain the Company’s leading position but also to enhance value to customers and shareholders,” added Al Harthy.

The CEO of Omantel, Dr. Amer al Rawas had this to say about the new appointments:

“Samy al Ghassany and Talal al Maamari have both played a significant role in Omantel’s evolution and its leadership position in the market. These two leaders took part in the Company’s transformation and growth, while holding several senior technical, commercial and corporate responsibilities with outstanding dedication and passion for success.”

The appointments come at a time when the innovative and pioneering Omantel is showing steady growth as they continue to diversify and introduce cutting-edge products into the telecommunications marketplace and other related businesses.

Malabar Gold Embarking on Major Global Expansion

Jewelry from Malabar Gold

One of the fastest growing outlets for jewelry in the Middle East, Malabar Gold, announced that it will soon be investing about $700 million to expand its operations so that it will be able to increase its annual sales to three times what they are today.

MP Ahamed, the chairman of the India-based Malabar Group, said on Sunday that this move will make the company the largest jewelry chain in the world, and the number one jewelry brand.

The ambitious plan includes eventually having 220 stores globally, up from 64 today. The hope, according to Ahamed, is that Malabar will employ 15,000 people, up from 6,000 at present. In what will be the third major expansion in the twenty years since the founding of the company, Malabar Gold is rebranding to “Malabar Gold & Diamonds,” looking forward to an increased effort in selling diamond jewelry. The company’s logo was also changed to appeal to a more diverse clientele base and give the company a more updated look and feel.

The company’s new motto is “Celebrate the Beauty of Life.” According to Ahamed, the new motto, the re-branding, and the expansion is all designed to achieve one major goal; to raise the international profile of the group.

"We are undertaking this change to help propel our brand to greater heights and to better serve our discerning customers," commented Ahamed.

GCC Head Zayani Proposes Overseer Of Region’s Nuclear Energy Development

Abdul Latif al Zayani

The Gulf Cooperation Council Secretary-General Abdul Latif Al Zayani has proposed the established of a group whose function will be to monitor radiation levels in the region.

Zayani believes that the surge in the regional development of nuclear energy as a power source requires that an overseeing body be established to protect citizens and control energy producing companies.

“A technical committee has been formed to study the establishment of the center to monitor radiation resulting from nuclear expansion in the region,” Al Zayani said during his opening words at the International Security National Resilience Exhibition and Conference. The conference was held on Monday, March 19 at the Abu Dhabi National Exhibition Center.

Although no expected date for the establishment of the center was mentioned, nor a venue for it, Al Zayani was firm that such a center would surely be established by all the GCC states in the near future, for the safety and well-being of the citizens of the region.

Dr. Jamil el Jaroudi Named CEO of the Islamic Nizwa Bank

CEO of Bank Nizwa Dr. Jamil el Jaroudi

As soon as approval to appoint Dr. Jamil el Jaroudi as CEO of Bank Nizwa was received from the Central Bank of Oman the public announcement of the new appointment was made.

Chairman of the Bank Nizwa’s Founding Committee of Oman’s first Islamic bank Ahmed Saif al Rawahi explained the reason for the delay in announcing the appointment. "Until we had formal approval from the CBO, we couldn't go public with details of our chosen CEO. But now we can and it gives me great pleasure to announce the appointment of Dr Jamil el Jaroudi as Bank Nizwa's first CEO. Jamil brings many years of commercial experience, but even more importantly, has strong credentials in both Islamic banking and banking start-ups."

Dr. Jaroudi came to Nizwa bank from Elaf Bank in Bahrain, where he was the bank’s CEO. Among his roles during his forty years of business experience was working as senior executive with the Al Mawarid Group in Saudi Arabia and as a consultant with Booz Allen & Hamilton in the UAE.

Dr. Jaroudi was educated in the United States and received an MBA from Columbia University and a PhD in finance from the Kellogg School of Northwestern University.

"I'm very excited to be a part of the team establishing Oman's first Islamic bank, Bank Nizwa. It has been my privilege to build a number of Islamic banks already in my life, and the opportunity to do this again is a great privilege.

"The Founding Committee and other team members and partners have done a great job and I look forward to leading the business into full operational launch and beyond. Our aspiration is to make Bank Nizwa not only Oman's first Islamic bank, but to also be the bank with the greatest service and customer experience, and a bank that is a part of the communities that we serve," Dr. Jaroudi said.