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.

Historic Maiden Flight Takes Omanis to Tehran

Oman Air’s Inaugural Flight to Tehran

Oman Air is now offering a brand new route directly from Muscat to the Imam Khomeini International Airport in Tehran. Upon conclusion of the first flight, which took place on September 1st, the passengers were greeted by Oman’s ambassador to Iran and Iran’s ambassador to Oman, after each of them was presented with a symbolic rose. In the presence of other dignitaries a cake-cutting ceremony was held at the airport.

In addition the Omanis were welcomed by Captain Hamid Reza Pahlevani, Deputy Minister of Roads and Housing and Head of Civil Aviation; Morteza Dehghan IKA, Director General of Airport, and other officials.

Wayne Pearce, Oman Air’s chief executive officer, offered these comments on the occasion:

“We are delighted to have welcomed passengers to today’s inaugural flights of Oman Air’s new daily service between Muscat and Tehran. This new route, the 42nd within our ever-growing network, links two of the world’s great cities and offers travelers between the two capitals the opportunity to experience Oman Air’s unique passenger experience and to discover why Oman Air has attracted so many international awards.

“We are grateful that the Omani Ambassador to Iran and the Iranian Ambassador to Oman were able to join us in celebrating the launch of this new service and we look forward to it soon becoming one of Oman Air’s most successful routes.”

The new service will utilize Oman Air’s newest plane, the Embraer E175 regional jet, which will offer 11 business class seats and 60 in economy class. The new service instituted by Oman Air comes directly on the heels of their recognition at this summer’s World Airline Awards where the airline won “World’s Best Business Class Airline Seat” and place in the top-ten of eight other categories, including “Best Airline Service Staff in the Middle East.”

Salalah Guests Fill City for Eid Holidays and Beyond

Salalah Hilton Resort

Tourists not only from Oman but from all over the Gulf Cooperation Council states descended on Salalah for the four days of Eid, many of them remaining even after the conclusion of the holiday.

Restaurants, hotels, and the streets of Salalah were full of happy visitors whose numbers were estimated by officials to reach 94,713. Said Rafeet of the Ministry of Tourism in Dhofar said that tourist began arriving in the resort town between August 19 and 22. Omani citizens comprised the majority of visitors at about 65 percent, with about 30 percent coming from the UAE.

"On the second day of Eid alone, 33,522 people came to Salalah,” explained Said. "This is the biggest in the season! The tourists meant exceptionally good business for hotels and restaurants, but also caused shortages. The petrol station at Haima, on the way to Dhofar, ran out of fuel, as did a second one along the road.”

Apparently the tourist industry was not prepared for such a huge inundation of guests to their city.

"There was a shortage of food. Our suppliers were short on chicken, beef and bread. The number of tourists affects all the normal services here,” said Shady Morgan, Assistant Director of Sales at the Hilton Salalah Resort.

The huge number of people also created unpleasant traffic jams.

“It takes at least hour to get through the traffic lights at Lulu Hypermarket. We're like Dubai at this time,” said Morgan "You should plan before you go or take shortcuts.”

Most of the Omani visitors have returned home to get back to their usual schedules, but a large number of Emirate visitors stayed for a bit longer. The Salalah Hilton reports that this week they were operating at between 85 and 100 percent capacity, and businesses elsewhere are still crowded.

"Still most of the people from the GCC are here,” commented Said. "The restaurants, the hotels and stores are still busy. Business is still good.”

Eight Local Builders Vying for In-Flight Catering Contract

The Newly Expanded Muscat International Airport

As Muscat Airport continues with its plans to forge ahead with a major expansion of its facility, eight separate local construction firms are fighting for the rights to build a large in-flight catering complex.

The complex will be part of the multibillion dollar renewal of the airport which will also include an opulent passenger terminal, state-of-the-art baggage processing, high-tech cargo terminal, modern transport systems for patrons, cutting edge air traffic management system and ultra-modern aircraft hangars. The renovations will place Muscat as a major hub for international travel.

The $5 billion project is being overseen by the Ministry of Transportation and Communications, which will determine which of eight contenders will be awarded the contract to build the in-flight catering complex. This contract is one of only two major contracts outstanding from an original collection of 13 main projects needed for the overall construction of the new airport.

The eight construction companies include Carillion Alawi, Hanjin Heavy Industries & Construction, Strabag Oman, Bahwan Contracting Co, Larsen & Toubro (Oman), Muhibbah Engineering (Malaysia), Joannou & Paraskevaides (Overseas) and Galfar Engineering & Contracting.

The complex will be capable of preparing as many as 24,000 meals per day, and will use about 26,000 square meters of space. Not only will Oman Air avail itself of the food service, but other airlines which operate out of Muscat International Airport will utilize the new facility for their food needs.

The new Muscat International Airport is scheduled for completion in late 2014.

Sharia- Compliant Al Izz Islamic Bank to Issue IPO Soon After Eid Holiday

Al Izz Islamic Bank

Islam’s second Sharia-compliant bank could be approved for an IPO as early as next month if all goes smoothly as regulators examine the application of Al Izz Islamic Bank, headquartered in Muscat, Oman.

Observers say that officials at the bank are moving full steam ahead and issue managers are also making a large effort to have everything ready for the bank’s IPO to happen as soon as possible after the Eid holiday, most likely that will mean September.

The only problematic link in the progress of obtaining approval will come from CMA, the market overseer for compliance, which has still not bestowed final approval for Al Izz Islamic Bank’s IPO, although they have received an “in principal” approval from the regulatory board.

Interested parties have said that getting approval is not a major stumbling block, as it can take only one day for approval to be granted, and within a week the issue can be allowed. The subscription period however must be a full 30 days.

Oman to Tackle Unemployment Problem with Money from Oil Windfall Profits

An unnamed source has revealed that in response to a windfall in oil revenue in Oman over the past six months the Sultanate has decided to spend about $1 billion in additional monies to create jobs for its citizens over the coming year.

"We had a very good income from oil revenues in the first six months of the year," an official from Oman’s planning department told the press. "Not only do we expect to comfortably balance the budget, but we will use $1 billion of that windfall to create jobs in the next 12 months from September."

The official did not detail any specifics of the plan, such as how the money will be spent or whether the jobs will be concentrated in the public or private sector, or both.

Oman, which is not associated with OPEC, revealed at the beginning of August that the government collected 35 percent more in revenue than over the same time last year. The take for the first six months reached $19.1 billion due to the influence of surging oil prices and increased production.

The increase in revenue resulted in a bulge in the government’s budget surplus amounting to 1.61 billion rials, which was four times the surplus of the preceding year.

There is an unemployment problem in Oman which the Sultanate would like to address. According to the manpower ministry there are about 22,000 Omani citizens who are in search of jobs, out of a total of 2 million of employable Omanis.

"About 15,000 graduates are looking for jobs this summer and the rest, from that figure of 22,000, are a backlog of jobless who have not found jobs since the beginning of the year," the official from the manpower ministry said.

The International Monetary Fund, using census data taken in 2010, has estimated the unemployment rate in Oman to be about 24.4 percent. According the IMF Oman will need to create 45,000 new private sector jobs per year to absorb all the new workers emerging each year, and to lower the unemployment rate to a reasonable amount. The IMF admitted that it could also be possible that the number it used for its unemployment figure may also include people who are not looking for jobs.

Importers Agree to Price Freeze on Livestock During Ramadan

Sheep for Feast of Eid al Fitr

A spokesman for Al Batina Livestock, a leading importer of Australian livestock into Oman, announced that his company will adhere to the request of the government to refrain from any price hikes during the holy month of Ramadan.

The Sultanate is working hard to keep food prices during Ramadan under control, and a key element in stable prices is a price freeze on the cost of meat. Al Batna has agreed to maintain their prices at the present level until at least after the Eid al Fitr holiday.

"We agreed to cap our prices at last year's retail selling price of RO 90 per head of Australian sheep as a gesture of support for the government's efforts to rein in food prices during Ramadan," the representative said.