Arab Spring Countries Need $30 Billion Boost

Still Recovering from the Upheavals of the Arab Spring

Masood Ahmad, chief of the International Monetary Fund’s Middle East and Central Asia Department, believes that several Arab countries involved in the upheaval of what was termed the “Arab Spring” of 2011 need a significant infusion of funds to regain stability and develop positively.

“The $30 billion finance should go to several countries that are witnessing instability including Jordan, Morocco, Yemen, Egypt, Tunisia except Syria,” Ahmad said.
Ahmad was addressing the media at the Annual Meeting of Arab Financial Institutions and the Fourth Meeting for the Council of Arab Finance Ministers.

“The situation in Syria is not clear enough and we can’t come out with a final evaluation for their financial needs,” he added.

Syria’s problems are centered more on the humanitarian issues, and that tragedy needs the immediate attention of the Arab community.

“We still have spillover cost attached to neighboring countries in terms of refugees and trade loss in these countries,” Ahmad explained.

The IMF head also said that his organization is not the only one that can give financial support to the Arab Spring countries. The GCC has participated, and should continue to participate in support of countries in the region. Other financial institutions in the area should also continue to help.

CEO Pearce of Oman Air Adding Aircraft to Fleet

Oman Air Adding New Planes to Fleet

Chief Executive of Oman Air, Wayne Pearce said that his company was taking a closer look at a follow-on order for Boeing Company’s 787 Dreamliner. Pearce, who has been CEO of Oman Air for 15 months, explained that increasing the airline’s fleet would allow the national carrier of Oman to increase its number of routes to European destinations.

Oman Air is also examining the addition of the Boeing 737 aircraft to increase service to the Middle East and India. This addition is part of the airlines plans to increase its number of planes to 50 from the present number of 42 which are already in operation or are ready to be delivered.

Pearce’s decision to incorporate the Boeing 787s into Oman Air’s fleet is a much needed vote of confidence in the beleaguered 787, which has not had a purchase order since it was grounded due to battery problems on January 16. The acquisition will likely be confirmed within the next several months. The 787s would boost up Oman’s fleet of six 737-800s and its six Dreamliners which are scheduled to arrive at the end of 2014 and from 2015.

"You need a bigger fleet to get the critical mass," Pearce said. "With a bigger magnitude you get better profitability, and we're in an ideal part of the world with plenty of opportunity to keep growing."

Tourism Growing in Oman

The mild Omani climate coupled with the Muscat Festival and the Tour of Oman has helped to create a surge in visitors to the Sultanate. As the tourists visit some of Oman’s most famous sites and landmarks they are helping increase revenue to the country.

Boats baring visitors from such faraway lands as Germany, Italy and Sweden are docking at the Port Sultan Qaboos and dropping off tourists by the hundreds, and then bringing them all along the coast of Oman and elsewhere.
The tourism sector of the economy has been a major contributor of late to the general rise in Oman’s GDP.

According to the Muscat-based tour agency Nishad,

“The tourist inflow to the country is tremendous this year and what makes the total visitors different this time is the fact that they are from various countries ranging from Italy, Germany, France, Greece, and South Africa unlike last time where majority was from Germany”.

Water Desalination Plant Contracts Signed

The Oman Power and Water Procurement Company signed a deal with the Muscat City Desalination Company to begin construction on the Al Ghubrah Independent Water Project (IWP) at a ceremony attended by dignitaries and government officials related to the project.

Contract signatories include Chairman Saud bin Nasser al Shukaily of the Oman Power and Water Procurement Company and Chairman Habib Husain of the Muscat City Desalination Company.
The Al Ghubrah IWP will be the second such facility to be constructed in Oman, the first being in Sur in the Sharqiyah area, completed in 2009.

The Al Ghubrah IWP is expected to have the ability to put out about 42 million gallons of potable water each day. This plant will be a welcome addition to the sources of water in the area, which will be taxed by the growing population and development of the region in particular and the Sultanate in general.

Construction is expected to take just under two years and to go into service by October, 2014. The technology used in the desalination process will be reverse osmosis. Underwater intake pipes will be utilized to bring in salty sea water to the facility, whose design has been thoughtfully planned to blend in naturally with the residential neighborhood in which it will reside.

Oman Boosting Healthcare Budget for 2013

The government of Oman is planning on increasing funds allocated for healthcare by 9.4 percent over what was spent in 2012, officials announced. In 2012 Oman spent RO 500 million, and plans to spend RO 547 million this coming year. That figure would make the healthcare expenditure about five percent of the total budget for Oman for the year, which is RO 12.9 billion.

Total number of hospital beds is also expected to increase in 2013. A new hospital is planned for construction in Mahout at a cost of about RO 8 million. The Jalan Central Hospital will cost about RO 35 million, set to be built in South Sharqiyah. Also being planned are several regional health centers in various local authorities in Oman at a cost of about RO 6.4 million.

His Excellency Dr. Ahmed bin Mohammed bin Obaid al Saeedi, Health Minister of Oman, said that the country should have their plan for the 2050 health system ready during the first half of 2013.

Overall Gas Supply in MENA to Last 30 Years

Natural Gas Reserves

While the gas supply in some Middle East and North African countries is being depleted, the overall amount of proven gas supplies in other areas of MENA is estimated to sustain the region in gas for the next thirty years, and beyond.

According to the Saudi-based Arab Petroleum Investment Corp (APICORP) there are 26.6 trillion cubic meters (tcm) of undiscoverable gas deposits in the region, and 88 trillion tcm of proven natural gas deposits, enough to last over 30 years at current production rate growths. APICORP is an affiliate of the 10-nation Organization of Arab petroleum Exporting Countries (OAPEC.)

The majority of the proven gas reserves are in the UAE, Iran Qatar, Saudi Arabia and Algeria, representing about 42 percent of the world’s total gas supply.

"For a production growth of 6.9 per cent a year, which corresponds to the last 10-year average, future volumes from remaining reserves would last 33 years….this is just above the conventional 30-year time horizon for strategic planning in the field of exploration and development (E&D)," APICORP's senior consultant Ali Aissaoui wrote in a five-page study.

"Our findings confirm and extend our previous results showing that on aggregate MENA proved reserves are substantial and their combined dynamic life is a little beyond the traditional 30-year strategic planning horizon for E&D."

Survey Reveals BankDhofar Among Best GCC Performing Banks

BankDhofar CEO Tony Mahoney

The annual Gulf Business Survey is a respected analysis and overview of the financial industry in the Gulf region. The survey this year points to a general trend towards moderate economic recovery throughout the GCC as well as showing Gulf banks in an excellent position, in many cases better than their international counterparts in the aftermath of the global financial crisis.

In particular, BankDhofar was shown to be one of the two best performing banks in the region. CEO of BankDhofar Tony Mahoney spoke about his bank’s ranking,

"We are currently implementing our strategic plan for 2012 to 2016 and we are extremely optimistic that it will bring us to where we want to be. Being rated amongst the top ten performing banks in the region by the Gulf Business survey is a solid step in the right direction to us achieving our vision to the best bank in the Gulf. The results of this survey reflect our ability to generate sound revenue growth and an increase in our profits to enable us to grow our business."

Oman’s Soaring Surplus to Help Finance Government Expansion

Rising Oil Prices Helping Oman Finance Government Expansion

Oman’s fiscal surplus has soared over the past seven months by a factor of five, according to government data. The surplus was fueled by rising prices of oil and increased production, and outpaced even what was a large increase in public expenditures.

The actual surplus for the first seven months of 2012 came to RO 2.041 billion ($5.31 billion) while the surplus for the same time period in 2011 was only RO 442.3 million ($1.150.3 billion.)

Most of the surplus came from an increase by 34 percent in oil export earnings due to a rise in Oman’s oil production. In addition the price of Oman’s crude oil rose from about $100 per barrel to an average of $113.2 per barrel during the same period, further boosting the surplus.

Oman has five billion barrels of proven oil reserves under its control, as well as 25 trillion cubic feet of natural gas. Government officials are planning on increasing government spending over the next few years in its 2011 through 2015 development plan by a huge 113 percent.

FRiENDi Re-Brands with Up-to-Date Airport Kiosk in Muscat

The kiosk for FRiENDi Mobile at the Muscat International Airport has a whole new look. As part of the move to update their brand’s look, FRiENDi completely renovated their kiosk, which is located in the arrivals terminal, making it the first point of contact for travelers to Oman.

The new branding gives off a fresh, clean and new appearance, hopefully making FRiENDi most people’s choice for all their mobile service needs. Not only is the outer appearance new, but now the customer kiosk will offer 24 hour, seven days per week, customer service.

"We are confident that the new design and color scheme will attract more footfalls to the kiosk and we hope to add more value to both existing and new customers among visitors by increasing engagement and stimulation to their travel experience in Oman," said Nasser Saif al Mamari, direct sales manager, FRiENDi mobile.

“With the airport kiosk renovation, we have completed three of our main outlets and will expand the new corporate colour scheme to all our premium dealers across Oman," continued al Mamari.

Syrian Conflict Creating Bus Shortage for Haj Pilgrims

Buses During Haj

Syrian instability could lead to a serious shortage of buses to transport people coming to Saudi Arabia for the soon to arrive Haj season.

The president of the National Haj and Umrah Committee at the Makkah Chamber of Commerce and Industry, Saad Al-Qurashi, said that his committee is already well involved in organizing for the upcoming Haj season, with procedures for registration counters to open already underway.

"But they are still awaiting the Haj Ministry's spot allocations for companies and institutions in the holy sites of Mina and Arafat," he said.

Due to the ongoing turmoil now taking place in Syria, the availability of buses from there, which are among the most crucial and least expensive, is uncertain. Buses from Turkey are also facing obstructions as the border there is closed.

“If buses are not available from Turkey, the Egyptian market would be considered," Al-Qurashi said.

Buses from Jordan are not an option, Al-Qurashi added, due to the high prices that bus companies there charge.