Oman Reducing Expat Workforce

In an effort to employ more Omani citizens in the private sector, officials of this Gulf State announced that they will be replacing about 100,000 foreign workers with Omanis. Sheikh Abdullah bin Nasser Al Bakri, Minister of Manpower in the Sultanate, confirmed that the government would like to see a reduction in the expat work force by about 33 percent, from the 39 percent it stands at now.

The public sector expat workforce accounts for 692,867 workers. If the most recent goals are met the number will be reduced to 586,272 within the coming year. The imbalance is even more skewed in the private sector where there are 1,308,981 expat employees out of a total workforce of 1,533,679 employees. Only 224,698 private sector workers are Omani citizens.

Oman is afraid that it will not be able to sustain continued expansion of the public sector workforce and is therefore taking steps to place more Omanis into private sector jobs. Omani officials foresee a public sector wage bill rise of $2.3 billion this year in wake of the royal command to standardize salaries and grades throughout the public sector. Between 2011 and 2013 Oman greatly increased government spending on welfare programs, public sector salaries and creation of jobs in order to meet the demands of protestors demanding more jobs and the elimination of corruption.
The International Monetary Fund stepped in to warn Oman to control government spending. They urged the Sultanate to increase non-oil revenues to side-step never-ending budget deficits.

Oman Climbed Ranks as a Best Country to do Business

Oman Rising as a Business-Friendly Country

Moving 12 positions in just one year, Oman went from the 55th in 2013 to the 43rd best country out of the worlds’ Best Countries for Doing Business in 2014. The survey is conducted each year by Bloomberg, evaluating six broad criteria which are indicative of a country’s friendliness to business including the degree of economic integration, the cost of setting up a business, the cost of labor and materials, the cost of moving goods, the readiness of the local consumer base and less-tangible costs.

Hong Kong kept its place at the top of the list receiving a score of 83.4 out of a possible 100. In second and third places were Canada and the United States, respectively. Oman shared the 43rd spot with Russia with a score of 61.6 points.

Oman improved its overall score this year through bettering “the cost of moving goods,” which includes exports and import efficiencies, transportation improvements, logistics performance, liner shipping connectivity, and the quality of port infrastructure.

“The environment for doing business in Oman ranks favorably at the international level. Oman has positively improved its position and is continuing to improve further. The climb in global rankings should be encouraging to do more in the areas that require more attention,” said Dr. Fabio Scacciavillani, chief economist at the Oman Investment Fund.

Scacciavillani added that Oman’s free-zones have helped to create a more business-friendly environment. Improvements in airports, roads, ports, and logistics infrastructure will continue to help Oman to improve its ranking among the world’s most business friendly countries.

“Oman’s other major strengths for doing business are easy taxation, low inflation and safety and security,” added Dr. Scacciavillani.

Back2Business Oman Coming This January

Put January 22, 2014 on your calendar for attendance at the first Back2Business event. The inaugural conference was announced by representatives from the British Business Forum, the Oman American Business Council, the European Business Persons Group and the Australian Business Group and was created in close partnership with the Bank of Beirut.

The event will bring together entrepreneurs, investors, ambassadors and successful business leaders who will join together to share information, ideas and goals. Special guests will make appearances, and entertainment and a few surprises are on the agenda.

“The aim of Back2Business is to connect like-minded business people in a friendly environment that is conducive to exploring and developing new business leads,” said Maggie Jeans, a Back2Business committee member.

The mission of Back2Business Oman is to create a forum where members of the business community can meat and share resources for everyone’s benefit. Over 500 business leaders are expected to participate in the historic event. The conference should prove especially rewarding as here will be an emphasis on highlighting the best in business expertise and their application to the greatest challenges and opportunities in the current Oman business climate.

The managing director of Bank of Beirut in Oman, Ramy Zambarakji said,

“At Bank of Beirut Oman we provide guidance, advice and customized services businesses and individuals need in order to prosper and grow. We are pleased to be supporting Back2Business Oman, which will be a unique opportunity to meet members of the business community and make our financial services more accessible. Our products are designed to promote the growth of businesses, and Back2Business Oman will present a valuable platform of information for all professional sectors across Oman in the years to come.”

Maggie also added, “We are delighted with the interest already shown by the business community and we would like to say a word of gratitude to all our other sponsors, including Port of Sohar, Swiss Air, the Grand Hyatt Muscat, Mazoon Printing, Apex Press & Publishing, DHL, Arab House and Europcar.”

World Expo 2020 Creating Jobs in Dubai

Now that Dubai has been awarded the coveted prize of hosting the World Expo in 2020, the Emirate is gearing up for a construction boom. Third in stature and size after the Olympics and World Cup, the World Expo should do much to increase Dubai’s status as a world destination.

The Expo is expected to create in the vicinity of 220,000 jobs, but the fear is more people than jobs will flock to Dubai in search of work, creating competition for the desired employment. Last year the population of Dubai was 9.2 million, but the prediction is that the numbers will increase to 12.2 million by 2018.

Research analyst Fatima Sherif of Euromonitor International said the coming Expo could cause a huge pouring in of hopeful job-seekers. However only those with the correct and required work visa can stay in the country on a permanent basis. She believes that any increase in job demand will be met with job opportunities in other sectors.

“Despite this, the job market is expected to become more competitive in the UAE as more expatriates seek job opportunities in this part of the world,” Sherif said.

Chevy Cruze 2014 Arrives in the Kingdom of Saudi Arabia

Chevy Cruze 2014

The exclusive dealer for Chevrolet in Saudi Arabia, Abu Khader Automotive (AKA) has just taken possession of the brand new Chevrolet Cruze for 2014 in its showroom on Mecca Street.

Mr. Taher Al Husseini, general manager of the dealership commented on the arrival of the new car:

“Chevrolet Cruze is our best-selling car that has truly earned its position in the Jordanian market which is why it is being offered in a variety of models and options than before in order to satisfy our clients’ needs.”

Middle East Takaful Forum to be Held in Bahrain

Gulf Hotel Bahrain

The regional insurance industry will gather together 250 of their best and brightest for a two day conference at the Gulf Hotel in Bahrain on October 1st and 2nd.

The theme of this year’s Second Annual Middle East Takaful Forum (METF 2013) is ‘Adapting to Change: Fresh Thinking to Boost the Efficiency, Profitability and Scale of Islamic Co-operative Insurance Players.’

Under the auspices of the Central Bank of Bahrain the focus of the forum will be on finding new strategies for capitalizing on the main factors driving growth in the regional Islamic insurance industry and finding the best ways to overcome the challenges of increased competition in the emerging industry.

“The Global takaful industry has been experiencing double-digit growth rates, with the GCC and Malaysia being the major drivers,” METF chief executive David McLean said.

“A critical factor that will determine success in taking the industry to the next level of development will be the readiness of industry players to formulate and execute successful strategies in response to new market conditions and rapidly adapt to capture new emerging opportunities that will reignite growth levels.

“It is becoming increasingly imperative that takaful players in the Middle East get to grips with managing the challenges of an increasingly competitive takaful market, drive operational efficiencies and financial performance improvement in their business, and successfully shift to sound sustainable underwriting profitability – to build the capacity, capability and scale to profitably compete,” McLean added.

Please note that takaful refers to: A type of Islamic insurance, where members contribute money into a pooling system in order to guarantee each other against loss or damage. Takaful-branded insurance is based on Sharia, Islamic religious law, and explains how it is the responsibility of individuals to cooperate and protect each other. Takaful insurance companies were introduced as an alternative to commercial insurance companies, which go against the riba (interest), al-maisir (gambling), and al-gharar (uncertainty) principles, that are outlawed in Sharia. (Definition taken from http://www.investopedia.com/)

SpiceJet Flying Ahmedabad to Muscat

SpiceJet, the Indian discount airline, announced that it will be introducing three weekly direct flights from it base city Ahmedabad to Muscat in Oman as of August

The airline will be using the Boeing 737-800 for the routes, which has a capacity of 189 passengers in economy class, and flights will be available on Monday, Thursday and Friday.

The Oman Airports Management Company is taking actions to improve services and facilities at Muscat International Airport where SpiceJet will be landing from Ahmedabad. OAMC said tht the number of passengers processed at Muscat International rose by 10 percent during the first six months of the year to a healthy 4,122,700. Civic aircraft movements also rose by about the same margin, reaching 39,854 aircraft going through the airport.

OAMC is working hard to create the necessary facilities so that they will attract more air traffic, more airlines and more people in general to the Muscat International and Salalah Airports.

Pipeline Attack Halts Natural Gas Flow From Egypt to Jordan

Egyptian Pipeline Attacked by Militants

In the first bombing of the pipeline in over a year, the flow of natural gas was disrupted from the Sinai Peninsula to Jordan. The attack came after Egyptian president, now former president, Mohammed Morsi was forced from power last Wednesday by Egypt’s military. Morsi, who supports, and is supported by, the Muslim Brotherhood, was elected to head the Egyptian government only one year ago after former President Hosni Mubarak was ousted from power as a result of the “Arab Spring” uprisings in early 2011.

The attack on the pipeline took place just south of the Sinai town of El Arish. The pipeline was attacked several times from early 2011 until a year ago, during the violence that forced Mubarak from power. The pipeline bombing also follows attacks on the regional airport and at security checkpoints in recent days.

No casualties were reported as a result of the bombing, which was perpetrated by unidentified militants who detonated explosives, causing a fire and damaging the pipeline. The Egyptian army has declared a state of emergency in certain areas along the Suez shipping route after the attack on the airport in the vicinity caused fear that oil exports would be disrupted. The price of crude oil rose as a result of the uncertainty.

Abu Dhabi Company wins Contract to Construct Pipelines for Omani Oil Company

According to the Emirates News Agency, the Oman Oil Company Exploration and

Said bin Ahmed Al-Shanfari, Oman’s Minister of Petroleum and Minerals

Production LLC (OOCEP) awarded a $40 million contract to National Petroleum Construction Company (NPCC.)

OOCEP is an oil and gas subsidiary of Oman Oil Company. The deal is a procurement and construction (EPC) contract for the installation of two new offshore pipelines in the area of Musandam.

The planned offshore pipeline will bring in imported well liquids from the Bukha field to the Musandam Gas Plant to be processed. There will also be an offshore export pipeline built to bring natural gas from Musandam to Saqr Port in Ras al Khaimah.

The combined length of the two pipelines is over 30 kilometers. They will be installed below water as deep as 90 meters in places.

This coveted contract, worth almost $40 million will give NPCC a much-desired entry into the profitable Omani market. The contract matches the company’s business plan and expansion strategy.

NPCC was formed in 1973, is based in Abu Dhabi, and is owned in partnership with UAE’s Senaat (70 percent) and Consolidated Contractors International.

Oman Says No to Nuclear Power

Fukushima Nulear Power Plant After Earthquake

The Omani representative to the International Atomic Energy Agency (IAEA) explained to an audience in Oman that the Sultanate has made the decision that it will not pursue the development of nuclear power as a source of electricity. It has not, however, ruled out Omani research into the use of nuclear power for scientific and medical purposes.

Oman’s Ambassador to Austria and permanent member of the IAEA, Dr. Badr bin Mohammed al Hinai said Oman came to this decision as a result of the Japanese nuclear disaster at Fukushima two years ago.

“After the Fukushima accident and following the safety and security concerns of establishing a nuclear program, Oman followed the examples of other countries such as Japan and Germany not to pursue a nuclear program but instead, to benefit from nuclear power applications.

“Let us mention that Oman is also seeking alternative sources of energy in solar, wind and wave energy, due to the propitious climate and geography of the region.”

Dr. Al Hinai was speaking at the third annual three-day Oman Power and Water Summit, jointly sponsored by the IQPC Middle East and Global Exhibitions and Conferences (GEC) together with the Public Authority for Electricity and Water.