Orascom Exploring Construction of Low Cost Housing in Oman

Orascom Development Holdings (ODH) is investigating the possibility of entering into Oman’s affordable housing construction sector. The announcement of this intention was made by Samih Sawiris, the chairman and CEO of the Egyptian investment firm at The Owners Forum Middle East 2011 held in Muscat from October 22nd to 24th, 2011.

OHC Positioned to Enter Market

Mr. Sawiris explained that the growing need for affordable housing in Oman will attract investors into this sector, and Orascom’s subsidiary, Orascom Housing Communities (OHC), is uniquely positioned to enter into this market.

OHC was founded in 2006, and already finished the construction of a township by 2007. Haram City was built about 20km west of Cairo and today is home to about 5,000 families on 8.4 million square meters of land.

Haram City Near Cairo

Affordable Housing Market

When asked about Orascom’s interest in building luxury or high-end building projects, Sawiris said that in the Sultanate of Oman Orascom is not interested in this sector, especially since they are already involved in tourism construction in Jebel Sifah and Salalah Beach in a joint venture with Muriya.

Sawiris added that,

“The only thing I would be interested in Oman in terms of residential projects is affordable or budget housing. That is our second area of expertise, where we complete towns in this category.”

MB Holding Company Venturing Into Tourism Industry

One of Oman’s largest companies, MB Holding Group of Companies, is planning on entering into the tourism sector by investing in the development of prime, upscale, resort real estate throughout the Sultanate.

The Chairman of MB Holding, Dr. Mohammed al Barwani says that the goal is to invest approximately RO 100 million in projects involving hotels and other tourism related ventures during the coming four years. The company has already purchased 53% of the public company Interior Hotels. Al Barwani explained that this company will be the “public vehicle” into which the other properties which MB will acquire will be merged.

Dr. Barwani was attending an investment forum this week where he told journalists that,

“We are developing along with the government a hotel in Salalah. We are also developing a hotel on our own in Duqm. At Bandar Jissah, we are (developing a property) along with the Towell Group, while in Sifah we are planning a hotel with another group in Oman. Our intention is to invest in the hotel area and later put it into a public vehicle.”

Carillion Increasing Investment in Middle East

One of Britain’s leading investment firms, Carillion, has decided to pull back from the lackluster construction market in the United Kingdom and refocus its efforts towards Middle Eastern markets, especially in Oman, Qatar and Abu Dhabi.

Doubling Revenues

Carillion’s latest plan calls for a doubling of its Middle East revenues to £1 billion during the coming five years. It should not be too hard for Carillion to get a piece of the action as the United Arab Emirates begins to develop $1 trillion worth of infrastructure over the next twenty years and Qatar pumping $149 billion into its construction economy in preparation for the 2022 FIFA football World Cup. Carillion has already begun bidding for contracts to construct shopping centers, rail networks, hospitals and schools all throughout the region.

Carillion Building NYU Branch in Abu Dhabi

The British based investment firm already earns quite a sizable portion of its operating profits in Middle East ventures, and is poised to increase considerably in the near future, with about £11.8 billion worth of deals pending. Carillion is already the owner of the contract to build the Abu Dhabi campus of New York University, worth an estimated £650 million.

Middle East Development Heading Full Steam Ahead

Carillion owns 49% of Carillion Alawi in Oman where the Sultanate has discussed plans to invest $10 billion in development of schools and hospitals over the next five years.

This year Carillion expects their revenues from Middle East investments to total about £500 million. Operating margins are expected to decline during the next several years from over 9% to only 6% due to tough competition for contracts.

“We’ve always said it will take two to three years for growth to come through but we now have a strong bid pipeline and if we win our fair share we will deliver double digit growth,” said John McDonough, chief executive for Carillion.

Oman MedHealth Expo Showcases Latest Health Care Tools

The Oman International Exhibition Center played host to a three-day exhibition and a concurrent two-day conference on medical health options in Oman.

Organized by Omanexpo

Organized by the exhibitions and conferences management company Omanexpo, the first such event was held in 2009, with the 2011 version being the second year for the conference. This year’s conference/exhibition was a robust success, with over 2,000 visitors exploring the latest cutting-edge medical products and modern equipment in the health care industry on exhibit.

“This is the first time I participated in MedHealth and I am pleased about the response of the visitors to our stand as well as the excellent services provided by the organizers. We will hopefully have a distributor in the next show who will promote our products,” one exhibitor commented.

Positive Public Response

The response to the conference was highly favorable, including excitement over the free health check-up sponsored by the KIMS Oman Hospital. The Ministry of Health was also on hand including many of their related offices, such as the Blood Bank.

Nasser Diab, the General Manager of Omanexpo stated,

“We are delighted by the outcome of this year’s event, as we witnessed a heartening response and inspiring reviews, despite some challenges. As always, and more so now, we are grateful for the continued support given to us by the Ministry of Health, who has helped mobilize its various institutions, medical colleges and staff, our loyal exhibitors, the contribution and participation of new local and international companies, and the valuable role our sponsors and partners have played in this event. We hope to receive the same support next year.”

Oman Business Growing as Confidence is Established

Several sectors in the Oman economy have shown a marked improvement in sales and revenues in 2011 as compared with statistics for 2010.

The distributers of Samsung in the Sultanate, Al-Seeb Technical Establishment (SARCO,) experienced a 40% growth during the first two quarters of 2011. The majority of the growth is attributable to improved sales of information technology products such as notebook computers, laptops, printers; mobile devices such as tablets, smartphones; and audio/video.

Car sales for the Zubair Automotive Group increased dramatically in the first half of 2011, compared to years 2009 and 2010. Due to the sales improvement and expectations for the trend to continue, Zubair has decided to launch a new line of car models into the marketplace.

The Al Jazeera Steel Products Company posted growth of 27% in production and a 30% increase in sales for the first half of 2011. Revenues boomed by 46%, and profits increased an astounding 86%. The strong improvement for Al Jazeera is mainly due to the improved demand from the GCC as well as the North American markets for tube mill products. Having a larger variety of products available has also helped fuel Al Jazeera’s superior growth.

Protests Led to Prosperity in Oman

Analysts attribute the excellent economic improvement in Oman to a national feeling of confidence stemming from government reforms undertaken in response to the protests and demands made by demonstrators in January and February of this year. Some of the actions taken by the government include the creation of 50,000 new jobs for Omani citizens; raising the minimum wage to RO200; offering unemployment benefits of RO150 per month; and an increase in social security benefits. These measures and others have together improved the ability of Omanis to spend more and help fuel the economy.

Oman Pays Bail for Hikers Jailed in Iran

Josh Fattal and Shane Bauer

The government of Oman paid the one million dollar bail that Iran demanded in order to buy the freedom of two Americans who had been arrested as spies on July 31, 2009, but who denied this, claiming they were merely on a hiking trip along the Iran-Iraq border.

Hikers or Spies?

Josh Fattal and Shane Bauer, along with a third person, Sarah Shourd, Bauer’s fiancée, were held in Teheran’s Evin prison on suspicion of spying for the United States. The incident created a sensation, and the help of several countries was enlisted to gain the men’s freedom.

Shourd was released one year ago in exchange for the payment of $500,000, but the two men were sentenced to eight years imprisonment last month as convicted spies, but due to the intervention of Oman and other countries, were finally released last Wednesday, September 21st .

Closed Door Trial

No evidence was ever made public to indicate that either of the Americans were indeed spies, with the trial being conducted entirely behind closed doors. Since the US and Iran do not have diplomatic ties, and haven’t since the Islamic Revolution of 1979, it was necessary for other countries to lobby on behalf of the trio of young Americans.

The pair was first flown to Oman after their release, where Bauer made a short statement on behalf of himself and Fattal.

“Two years is too long in a prison,” he stated. “We sincerely hope for the freedom of other political prisoners and other unjustly imprisoned people in America and Iran.”

Humanitarian Gesture on Eve of UN Speech

Iranian President Mahmoud Ahmadinejad announced the release of the two last week, saying that it was a humanitarian gesture on the eve of his scheduled annual visit to the United Nations General Assembly in New York.

US President Barack Obama reacted positively to the news of the men’s release.

“It was the right thing to do. They shouldn’t have been held in the first place,” Obama told reporters who were on hand for the meeting of the United Nations General Assembly.

Lawyer Pleased with Outcome

The lawyer for the falsely accused pair, Masoud Shafie, said that Oman had paid the $1 million bail for both men, and then described his feelings at the news of his clients’ release: “I am happy. They were my clients. We tried for nearly two years and gained the results we wanted.”

Iraqi officials stated that their president, Jalal Talabani also was involved in the negotiations to have the men freed. The Swiss Embassy did what it could to influence Iran as well, although the Swiss ambassador Livia Leu Agosti was not permitted entrance into the Evin prison and was forced to wait outside in the car until the men were officially released.

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.

A’Saffa Foods Entering Frozen Vegie Market

Oman’s fastest growing food producer and market leader, A’Saffa Foods is taking its first step into the non-meat food market with its introduction of frozen vegetables under the Khayrat brand label.

Peas Lead the Way

Frozen green peas and mixed vegetables will lead the way for A’Saffa, who is already a favorite among Omanis who are happy to support the local food manufacture who is venturing into the world of more healthy and natural food products.

Highest Quality, Best Nutrition

According to A’Saffa the new products, Khayrat Mixed Vegetables and Green Peas are carefully picked by hand from only the highest quality crops and then immediately frozen to preserve the taste and nutritional value at maximum levels.

Not Just Chicken

Until last year the company was famous as Oman’s premier producer of chicken with the name A’Saffa Poultry, when it expanded into other food products and changed its name to A’Saffa Foods. Their first new food offering was frozen beef burgers under the brand name Khayrat, introduced in 2010. As the company saw the success of this product they decided to add a frozen vegetable line.

The A’Saffa Foods head of marketing and sales Sidhartha Lenda commented at the announcement of the new product line,

“Over the past decade families across Oman have trusted us to bring them an exciting range of natural, healthy and protein packed products to the table and we are very proud to now introduce our very first frozen vegetable products to the market.

“As with all of our food products, we have undertaken extensive research into the demand for frozen vegetables and are very confident that with the A’Saffa stamp of quality behind them the public will welcome these two new Khayrat products into the market. We take great pride in our food and we continue our tradition of serving family-favorite foods that are healthy and wholesome.”

Oman Tourism Up 15% in 2011

Oman Tourism Up

According to the International Air Transport Association (IATA) Oman has seen a 15 percent increase in passenger arrivals to Muscat International Airport in the 12 months ending in June, 2011 as compared to 2010.

Travel Warnings Dampen Toursim

This is good news for Oman after a poor turnout of tourists in the first three months of 2011 due to international travel warnings to the area. The rebound in tourism brought about 2.23 million travelers to the Sultanate’s main airport during the course of the year.

As a result of the increase in tourism it is believed that Oman will take substantial steps to revive and improve business in the travel sector of the economy. Planning meetings for strategy and travel were held in mid-August among the heads of international offices of the Ministry of Tourism.

Tourism on the Rebound

Al Sheikh Abdulmalik Abdullah Al Khalili, the Minister of Tourism in Oman released a statement saying:

“Travel to Oman has rebounded strongly with most of Oman’s key tourism source markets recording remarkable year on year growth. The highest growth came from Italy (60 per cent), UAE (31 per cent), Germany (22 per cent), France (14 per cent) and The Netherlands (8 per cent).

“Our European trade partners are reporting solid forward bookings so we expect a strong end of year result for Oman’s tourism industry.”

Sultanate Planning for More Tourism

Analysis of the IATA data show detailed results which can help the Sultanate’s planning for future tourism. A comparison of June’s travel statistics in 2011 and 2010 shows that all tourism source-markets showed improvement except for tourism from the United Kingdom. This is believed to be due to austerity measures placed on Britons to discourage long international trips. However in Italy there was a 228 percent increase in tourism to Oman; the Netherlands showed a 52 percent increase; and from Belgium 33 percent more tourists came to Oman.

This data also highlights the positive impact of Oman Air’s services to our larger volume markets such as France, Germany and the UAE.

“Arrivals from France and Germany continue to increase since the start of non-stop services in late 2009. We expect similar positive outcome from Oman Air services to Zurich in October and Moscow in November,” added the Tourism Minister Sheikh Abdulmalik Abdullah Al Khalili.

GCI Ranks Oman High on World Economic Stage

Dr. Salem ben Nasser al Ismaily

The 2011/2012 World Economic Forum Global Competitiveness Index has ranked Oman as the 32^nd most competitive country in the world. This result comes despite the fact that the past year was a tumultuous one for the Middle East and especially the Gulf States.

Oman Moving Up

The high ranking is an improvement of two places since last year’s index, and the 32^nd spot is higher than such westernized countries as Spain, Poland, Italy and Slovenia, all members of the European Union. The Chairman of the Public Authority of Investment, Promotion and Export Development, Dr. Salem ben Nasser al Ismaily, remarked that,

“The World Economic Forum’s GCI is keenly followed by investors across the world as it gauges how conducive to business government policies are.”

Constant Improvement

The Public Authority for Investment also stated that the positive results of the index are a result of the Sultanate’s economic policies which never cease to work at improving the economic and business climate of Oman.

“Oman’s ranking reaffirms that we are moving in the right direction with liberal economic policies reflecting the market forces especially as regards reinforcing the role of the private sector as the engine for growth,” explained Ismaily further.