Omantel Gets High Rating from Moody’s

Omantel Gets Good Rating

Oman’s leading telecom provider, Omantel, is continuing to get high ratings from Moody’s and Standard and Poor’s rating system. Just as in 2013 Omantel received a BBB+/A-2 rating from S&P, and an A3 rating from Moody’s.
Moody’s explained:

“The A3 rating combines Omantel’s fundamental credit quality, strong financial profile, which is reflected by the company’s solid free cash flow generation despite its high capital expenditures for network upgrades. The rating is also driven by our expectation that the company will maintain a conservative leverage profile, with debt/Ebitda not exceeding 1.5 times. In addition, the rating reflects the high barriers of entry to the Omani telecom market given the country’s large territory relative to its population, which acts as a deterrent to potential entrants into the market.”

“We are pleased that both Standard and Poor’s and Moody’s continue their high ratings for Omantel. Their rating speaks volumes and affirms Omantel’s strong financial performance and its leadership position in the domestic market. Omantel’s strategy remains focused on customer experience, growth and market leadership with an aim to enhance shareholder value,” said Talal Said Al Mamari, the chief executive officer of Omantel.

World Cup Stimulating Boom in TV Sales in UAE

TV Sales Soaring as Date of World Cup Approaches

This is not the first time an upcoming major sports event has triggered an explosion of sales of large screen televisions, but this time around is certainly special. The FIFA World Cup games are less than two weeks away, and fans are scrambling to get the best seats, in their living rooms in front of their brand-new televisions.

Retailers are seeing a sharp rise in the number of 55-inch models flying off the shelves, with the vast majority of TV sales for the 45 to 65-inch species.

Ashish Panjabi, chief operating officer of Jacky’s Electronics explained:

“It is a bumper time for retailers now. As it is also overlapping with Ramadan, fans will be awake at night and that is the time when matches are on.”

Oman Ports Experienced High Growth During 1Q 2014

This past year saw a substantial growth in the amount of cargo handling in the ports of Sultan Qaboos and Salalah despite the fact that the actual number of vessels moored at both ports saw a decline.

During the first quarter of 2014 Port Sultan Qaboos (PSQ) and Port of Salalah

Salalah Port

experienced growth of handling of cargo by 12.7 percent at PSQ and an impressive 58 percent at Salalah port.

The National Center for Statistics and Information reported that the total volume of loaded and unloaded export cargo increased from 1.26 million tonnes during the first quarter of 2013 to 1.42 million tonnes by the end of March 2014. At Salalah port the report stated that 1.69 million tonnes were handled during the first three months of 2013 compared to 2.68 million tonnes during the same period in 2014.

Interestingly, the number of mooring vessels docked at PSQ and Salalah ports saw a shrinkage of 6.5 percent; 973 vessels at the end of March 2013 down to 910 vessels.

Mall of Oman Coming Soon

Coming Soon: the Mall of Oman

Dubai-based developer Majid Al Futtaim Properties (MAFP) is about to embark on an ambitious building spree throughout the Middle East and North Africa (MENA.) On the list of construction projects slated to go up between 2014 and 2016 are hotels, complementary mixed-use communities, and of course shopping malls. The ‘Mall of Oman’ is planned to be constructed in the Bauwsher district of Muscat, and is budgeted to cost about OMR 180 million ($467 million.)

The mall will be the largest in the Sultanate when it is completed with 350 retail shops, entertainment center and restaurants in a space occupying 157,000 square meters.

George Kostas, CEO of Majid Al Futtaim Properties said: “Oman’s new shopping and entertainment destination is expected to generate 1500 jobs for its construction and a further 3500 jobs once opened, and will enhance the Sultanate’s retail and entertainment offering for both residents and tourists. The Mall of Oman will also provide an opportunity for our retail partners to further establish their businesses in the Muscat market.”

The MAFP group has three business units including shopping malls, hotels and housing developments. They are invested in or manage 12 income producing properties in the United Arab Emirates, Oman, Bahrain, Egypt and Lebanon.

Chief Executive Officer Iyad Malas of MAFP commented:

“The year 2013 was a year of solid top line growth for the business. Revenue growth remained stable at 10 per cent year-on-year, while Ebitda grew to 11 per cent, reflecting strong performance across all parts of the business. We not only delivered robust business results but have also increased efficiency by uniting our companies under one umbrella corporate brand — Majid Al Futtaim — as we embark on the next chapter of our regional expansion plans.”

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/)