GCC States Growing Despite Oil Price Drops

GIC

The Gulf Investment Corporation published a report saying that the six Gulf Cooperation Council States will collectively post a 5.8 percent expansion by the end of the year, reaching a GDP of $1.6 trillion in current prices.

The GIC is a Kuwaiti-based firm owned jointly by the governments of the GCC.

The report stated that it is not expected that the recent falling oil prices will have any effect on the predicted growth because the GCC countries are moving towards a consumer society in which public spending is fueling the economy while at the same time governments are instituting reforms to strengthen and stabilize their economies.

"Despite speculation about a further oil price decline, the GCC economies are still expanding as they are based on real growth pillars," the report stated.

"The first and most important pillar is the high public spending in most member states as it accounts for nearly 35 percent of GDP… this is coupled with the implementation of massive projects worth nearly $1.1 trillion, almost a quarter of the world's investment in infrastructure and energy."

Standard and Poors Changes Oman’s Rating Upward

Standard and Poor’s Ratings Services has re-examined its rating of Oman and decided to change its evaluation from what had been a negative rating to an improved, positive one. The agency explained its new opinion of the Sultanate in the following manner:

“The outlook revision reflects our view that political reforms and economic measures are helping address popular demands and restoring stability to the domestic environment. The ratings are supported by Oman’s substantial net external and general government asset positions and prudent investment policies, and constrained by, in our view, a heavy dependence on hydrocarbons, political risk, and a challenging demographic profile — 60 per cent of the Omani population is under the age of 25 (source: 2010 census data). Oman, similar to other sovereigns in the Gulf Cooperation Council, is subject to geopolitical risk. This is somewhat mitigated by the country’s strong alliances with international powers, as well as its ability to maintain a neutral and independent stance in the region.”

The S&P is hoping to see other reforms as well, which will add to the economic strength and stability of Oman. Among the changes the S&P would like to see are some intitiatives that the Omani government has already begun to put into place, such as wage increases and the promise to create as many as 75,000 new jobs.

“We expect a significant share of these to be generated in the public sphere. According to our base-case scenario, we anticipate that social spending will rise during 2012-2015, but that the government’s resources will be sufficient to manage this increase without incurring a weakening in its fiscal buffers,”

officials for the ratings agency said.

Bank Nizwa Hopeful of Success Soon

The Chief Executive Officer of Bank Nizwa, Jamil Al Jaroudi, is hoping that the bank will be able to post a profit within two and one half years of launching operations, which is planned for the coming month.

"We aim to make our first profit in 2014 though we would like to make it happen sooner in the first year of our operation but that may not be possible,” Jaroudi said in an interview.

The board will be elected when the shareholders meet this coming July 31st, Jaroudi added.

"We will start our operation two weeks after that with three branches, in Nizwa, Sohar and Muscat. Eighteen months after the start of our operation, we hope to open about seven branches nationwide,” Jaroudi also said.

Bank Nizwa is the first bank in Oman run according to Islamic law. Nizwa’s initial public offering raised RO 681 million ($1.77 billion) in bids, 11-fold the amount that it sought to raise, reflecting the powerful interest the enterprise has for investors.

Jaroudi was happy for the over-subscription to the IPO from investors, and commented that it was a positive indication that the bank will be successful. He mentioned that he hoped that the returned funds will be used as deposits in the bank by their new and loyal customers.

“It shows that we are well placed and there's a healthy appetite for a fully-fledged Islamic bank in Oman,” Jaroudi added.

Mars Hypermarket Opening in Barka

Mars Hypermarket in Barka, Oman

V.T. Vinod and Naveej Vinod, the managing and executive directors of Mars International LLC, announced the opening of a branch of the Mars Hypermarket Group will be opening in Barka. The dedication ceremony of the store to the people of South Batinah Governorate will take place on June 30 and will be presided over by Sayyid Khalifa bin al Mirdas bin Ahmed al Busaidy.

In his speech V.T. Vinod said, "It is our privilege to express our heartfelt and sincere gratitude to His Majesty Sultan Qaboos bin Said, and the government and people of Oman for giving us an opportunity to serve them in the retail sector."

"Mars has always represented the best in retail concepts and provided maximum convenience to our valuable shoppers. Let us all work together towards excellence and make shopping a different experience where customers feel that they have obtained the quality service for the money they shell out," added Vinod.

The Barka branch will be the sixth outlet for the Mars Hypermarket Group in the Sultanate of Oman, with a seventh scheduled to open in Qurum in October. While the Mars Group is a specialist in retail services, the international company is diversified into many other industries including healthcare under the brand Badr Al Samaa Group of Hospitals, hospitality and real estate. The Mars Group hopes to soon enlarge its reach to additional GCC nations.

UAE Federal National Council Requests Dress Code Law from Minister of Culture

Abdul Rahman Mohammed Al Owais

One member of the Federal National Council of the United Arab Emirates, Hamad Ahmad Al Rahoumi from Dubai would like to see a law in place which would require residents and tourists to adhere to a modest dress code which respects the culture and sensibilities of the people of the UAE.

Al Rahoumi was speaking with the Minister of Culture Abdul Rahman Mohammad Al Owais with the goal of persuading him that such a law is needed to protect the culture of decency and modesty that is practiced in the UAE.

“There has to be respect for the people in the UAE. Residents and tourists should dress modestly and not spread their bad habits for our children to see and imitate,” Al Rahoumi said.

“I am not demanding that visitors and residents wear our clothes, but their dress should be respectful and not revealing,” he added.

Al Rahoumi also said that the law should include other “unacceptable” behaviors like kissing in public places.

The FNC represented said that visitors should be told in advance about the law; that it is offensive to dress in mini-skirts and shorts in the UAE, in shopping malls or outside on the streets.

“Dress code brochures should be given out at the airport and when the passport is stamped with the visa. Also, there should be big posters in malls and everywhere showing the rules and how women should dress decently.”

Dubai Ranks First in Risk Factor

Dubai Skyline

According to a new survey taken by Aon, a US-based human resources company, Dubai came out on top as the Middle East’s least risky city, and scored 29th when compared to 130 other cities worldwide.

The Aon Hewitt 2012 People Risk Index measured 131 cities for crime, violence, terrorism as well as ease of recruitment, employment and relocation. New York City in the United States was ranked first overall as the world’s safest city, with Toronto and Singapore coming in second and third.

Aon explained that Dubai’s excellent risk status is due to its, “demographics, government support and talent development. In terms of demographics, Dubai has a young population with a projected growth of 0.4 per cent year on year in working age population in the next 10 years."

Other international cities which earned a similar ranking to Dubai’s are Washington, DC, Zurich, Sydney, Amsterdam and Oslo.

Alternative Energy a Hot Topic Today in Oman

Solar Panels in Oman

In a country like Oman where the sun seems to always be shining, it makes sense to take advantage of this abundant and renewable natural resource. Recently more companies in the Sultanate having been showing interest in expanding their use of solar power.

As long ago as twenty years there were some pioneers who began to install small-scale solar power systems, such as Omantel and the Petroleum Development Oman (PDO.) They were convinced that they could reduce their energy consumption costs while simultaneously helping preserve the fragile environment.

"Wherever we can, we're trying to reduce energy consumption. Whether it's street lighting, facilities, electrical data relays, we introduce a number of solar panels. They continue to be a bigger and bigger part of our business,” commented Raoul Restucci, managing director of PDO.

Energy from wind is another area which companies in Oman are beginning to show an interest in.

Peter Broers is the CEO at the Port of Duqm. He said that in Duqm the use of wind has more potential as a reliable source of power, since the area is extremely windy, although he added that there could also be a solar farm in conjunction with a wind farm.

"I think if we look at a project that will be a world-class facility; renewable energy should be part of the daily approach. If you want to be modern and take care of environmental issues, then renewable energy is one of the steps you have to take,” Broers said.

Oman Air Adding Daily Flight to Tehran

Oman Air Adding Flights to Tehran

Beginning on September 1st Oman’s national air carrier, Oman Air, will begin servicing the Iranian capital of Tehran with a daily flight from Muscat. There were will be two departure times: 2am three days per week; and 9:30am four days per week. Return flights will also be offered in two time slots; 6:10am three days; and 12:40pm on four days.

Wayne Pearce, CEO of Oman Air announced the new flight, saying,

"We are extremely pleased to be launching our new service between Muscat and Tehran and to be offering customers the opportunity to travel aboard our outstanding Embraer 175 regional jets. Tehran offers visitors the opportunity to gain insights into not only Iran's unique culture, but also its rich and ancient history. Furthermore, Tehran is a major business hub and we anticipate strong demand from both business and leisure passengers.”

Oman Convention Center Focus of Industry Recognition

Oman Convention Center

In anticipation of the completion of the Oman Convention and Exhibition Center set for 2016, several organizations have already acknowledged the expected unique attraction of this up and coming meeting venue.

Speaking in Frankfurt, Germany at IMEX, one of Europe’s most important tourism industry trade fairs was Geoff Donaghy, the Director of Convention Centers for AEG Ogden, manager of the Oman Center, said that the significance of international awards and recognition was crucial as a way to sell the convention center to potential customers.

"Oman and its capital city Muscat recently being acknowledged by both Lonely Planet and National Geographic for its range of attractions was very timely.

"Oman has been trading with the world for more than 5,000 years and is an active global community member so it comes as no surprise that our preliminary research and promotional activities has uncovered strong interest in the Sultanate as a destination," said Donaghy.

"AEG Ogden has been working in partnership with the Ministry of Tourism and Oman's key stakeholders in introducing the world to Oman and as the new hub for major international conventions, meetings and business events. Many international and regional organizations have already expressed a strong desire to hold future or expand events in the sea side city of Muscat.

"Our message to these decision-makers is consider Oman not only for the world class venue that will be there but the diversity of attractions at their disposal. It's a total package that delegates will be inspired to attend and an experience they won't forget," Mr. Donaghy added.

The Oman Convention and Exhibition Center is being built to the highest international standards in modern, integrated fashion which will included 1,000 hotel rooms distributed among one five star, two four star, and one three star hotels. The Center will include a shopping mall, business park, and will be conveniently located only 4 kilometers from Muscat International Airport.

Oman Air Wins Award for Business Class Excellence

Awarding Winning Oman Air

The Business Destinations Travel Awards 2012, sponsored by the UK magazine Business Destinations, has voted Oman Air, the official airline of the Sultanate of Oman, as the “Best Business Class Airline in the Middle East.”

The magazine has a readership of over 100,000 and is published every other month. It is distributed in upper class aircraft cabins, airport lounges and to experts in the travel profession. The magazine is also sold in retail outlets.

CEO of Oman Air, Wayne Pearce, said:

“We are delighted that Oman Air has been named as ‘Best Business Class Airline, Middle East’ in the Business Destinations Travel Awards. This follows on from last year’s win by Oman Air of the ‘Best Luxury Airline, Middle East’ category, so we are extremely pleased that the quality of our premium service has been recognized for the second year running. My thanks go to Business Destinations’ readers and to all our staff, throughout Oman Air, who have played a vital role in transforming the airline into the luxury carrier it is today, and ensuring the success of our outstanding and internationally recognized business class offering.”

During the course of the past two years Oman Air has won on average one international prize per month including the following awards: ‘Best Airline in the World’ at France’s leading travel show IFTM Top Resa in September 2011; ‘Best Business Class Airline Seat in the World’ and ‘Service Excellence, Middle East’ at the World Airline Awards 2011; ‘Most Promising Newcomer’ at Malaysia’s KLIA Awards 2011 and ‘Best In-flight Connectivity and Communications’ at the APEX Passenger Choice Awards 2011.

CEO Pearce added:

“Oman Air’s aim is to continue to ensure an outstanding travel experience for all our passengers and, as this award again confirms, our Business Class cabins offer the ultimate in comfort, space and service. Whatever your destination, Oman Air’s competitive rates ensure that Business Class style and luxury are surprisingly affordable.”