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.”

Job Opportunities Exploding in UAE and Other Gulf States

Sanjay Modi, Managing Director of Monster.com

Over the course of the past year available jobs as listed on the internet has soared in the UAE by 33 percent. The figure, which was announced by the monthly Monster Employment Index, is based on online job posting activity which the index tracks in 12 leading industry sectors in the six GGC countries and in Egypt.

June’s Monster Index shows that the UAE leads the rest in the increase in online job postings over the past twelve months, while Kuwait followed closely with a 30 percent increase in job opportunities from June 2011 until June 2012. Qatar was tracked with a 23 percent gain.

Overall the increase was even more impressive, growing by an incredible 39 percent annually. Only Saudi Arabia did not grow in the double digits, expanding by only 2 percent for the year in its online job opportunities.

In Egypt job openings posted online surged by 15 percent, while in Bahrain and Oman online job listings increased by 18 and 20 percent respectively.

GCC Planning Long-Term Food Surplus Strategy

GCC Planning for Food Shortages with Food Storage Silos

As the population of the six Gulf Cooperation Council countries continue to grow apace government officials are beginning to prepare a long-term strategy which will ensure a constant and adequate food supply under any circumstances.

Officials fear that the GCC countries’ heavy reliance on food imports could leave the countries vulnerable to food price changes and other global conditions. In the face of this concern the GCC, which together control over 40 percent of the world’s oil supply, has decided to create a food surplus which could maintain their needs for up to one year. However at least one official, Gasem Al-Assiri, the sub-regional office coordinator for the GCC and Yemen in the UN Food and Agriculture Organization (FAO) believes more needs to be done.

In an interview with the Emirates Centre for Strategic Studies and Research (ESCCR) Al-Assiri said that there are several reasons the GCC should be prepared with an adequate food supply on hand. He explained that the countries of the region should protect themselves against global price fluctuations of food, which, as domestic food consumption increases and eating styles change with increased affluence, can be a dangerous development if the countries are not prepared.

"The GCC states must draft a long-term plan for any food emergency whether a natural or geo-political problem," he said.

"The building of strategic reserves of basic commodities would protect the country from price fluctuations, and from problems affecting food producing countries that prevent export of agricultural goods."

Al-Assiri added that the GCC states have already begun designing silos for grain storage of up to 12 months, which should be enough reserve food to get the GCC states through any foreseeable food shortages.

"One of the most important features of this strategy would also be the establishment of an agency to monitor water and food security in GCC states, including all factors related to domestic production or food deficit, global production or prices. This will help decision makers to take the right decision and solve many problems for them," Al-Assiri said.

"We must keep in mind that the problem of food security cannot be solved domestically, but through international cooperation."

GCC Imposing Additional 100 Percent Health Tax on Tobacco Imports

Anti Smoking Poster from Saudi Arabia

Expected to take effect in the coming month, the GCC is placing a 100 percent “health tax” on cigarettes and other tobacco products imported into the area.

The finance ministers from the six Gulf States are meeting in May and will decide whether or not to approve the tax height said one Saudi official.

The Ministry of Health supervisor of the Saudi program which was designed to discourage smoking, Majed Al-Monief said the ministers of finance and health from the GCC states have already decided, at least in principal to raise the tariff from the present 100 percent to 200 percent.

"The new duty will be known as the 'health tax,' taking into account the huge amount of money each GCC state spends on the treatment of tobacco-related diseases as well as for the rehabilitation of smokers. The finance ministers will decide when the tax will take effect," Al-Moneif said.

"The GCC states can take a decision in this respect unanimously. The Gulf states had earlier hiked tobacco customs tariff from 50 to 100 percent, and are now moving toward making a further hike of 100 percent," he added.

The additional funds raised via the health tax will be used to help prevent smoking and hopefully lesson the destructive impact smoking has, especially on young people.

In spite of the heavy taxes which already exist on tobacco products in Saudi Arabia, imports climbed by 57 percent in 2011 compared to 2009. According to reliable statistics 22,000 deaths occur in Saudi Arabia every year from a variety of illnesses connected to tobacco use. The World Health Organization says there are 6 million smokers in the Kingdom, approximately 25 percent women.

Saudi Arabia is the fourth largest importer of tobacco in the world with average consumption per person estimated to be 2,130 cigarettes each year. According to the WHO about 5 million people die every year due to tobacco related ailments.

Emax Expanding Its Presence in GCC and UAE Countries

Neelesh Bhatnagar, CEO of Emax

Neelesh Bhatnagar, chief executive officer of Emax, announced that the consumer electronics retailer is planning on opening ten more stores throughout the Gulf Cooperation Council states employing an additional 500 people by the end of 2012.

Bhatnagar said that Emax already has stores in the UAE, Saudi Arabia, Qatar, Oman and Bahrain. The only GCC country where there is no Emax yet is Kuwait, but according to Bhatnagar they are just looking for the right opportunity to open there as well.

"Currently, we have 32 stores in the GCC and by the end of the year we'll have 40 to 42 stores,” Bhatnagar said. "Four will be opened in the UAE and the rest mainly in Saudi Arabia."

The plan is to employ about 200 more workers at the four new outlets in the UAE.

"In the UAE, we have now nine stores. We opened two recently – one in Dubai Mall and one in Fujairah City Centre. We are expecting to open another four – if not more – in UAE this year – one each in Abu Dhabi and Ras Al Khaimah and two in Dubai. We are constantly looking for space, for example in existing malls we don't have stores like Deira City Centre and Ibn Battuta Mall. We have been talking to landlords and leasing people; in case something comes up there those will be incremental," the Emax CEO added.

GCC Head Zayani Proposes Overseer Of Region’s Nuclear Energy Development

Abdul Latif al Zayani

The Gulf Cooperation Council Secretary-General Abdul Latif Al Zayani has proposed the established of a group whose function will be to monitor radiation levels in the region.

Zayani believes that the surge in the regional development of nuclear energy as a power source requires that an overseeing body be established to protect citizens and control energy producing companies.

“A technical committee has been formed to study the establishment of the center to monitor radiation resulting from nuclear expansion in the region,” Al Zayani said during his opening words at the International Security National Resilience Exhibition and Conference. The conference was held on Monday, March 19 at the Abu Dhabi National Exhibition Center.

Although no expected date for the establishment of the center was mentioned, nor a venue for it, Al Zayani was firm that such a center would surely be established by all the GCC states in the near future, for the safety and well-being of the citizens of the region.

Mobile Roaming Rates Reduced in GCC Countries

Roaming Tariffs Going Down in GCC Countries

The Telecommunications Regulatory Authority (TRA) of the Kingdom of Bahrain, in conjunction with the Gulf Cooperation Council (GCC) has decided to implement a reduction in charges for all international calls made to GCC countries while roaming in those GCC countries. This decision comes in the wake of the decision by the ministerial committee of the GCC Council to introduce maximum prices.

This step will help bring down the roaming prices for voice calls in GCC countries. Consumers can expect their phone bills to be lowered for calls made back home while they are traveling, and will reduce the cost of international calls while they are roaming. This new implementation of a ceiling on rates will only apply to voice calls which are made within and between GCC countries. At this point in time data services such as mobile broadband or SMS costs are not included in the price reduction.

General Director of the TRA Mr. Mohamed Bubashait commented on this news:

"The implementation of maximum prices will bring further saving to consumers roaming between the GCC member states and will support cross-border business activities. Cost-effective and efficient telecommunications services raise the competitiveness of all economic sectors by way of providing cost reductions and convenience of access to telecommunications services. This contributes towards improving business and individual productivity and enhancing the Kingdom's and the region's attractiveness as a global investment center."

Mr. Bubashait further commented that, "This is a major achievement for TRA, which has led the development and negotiation of the GCC roaming regulation for the benefit of all GCC consumers."

GCC Banks Looking to Increase Revenues as Global Crisis Subsides

According to a survey conducted by the Accenture financial services company, banks in the six countries which comprise the Gulf Cooperation Council (GCC) plan to increase their lending to small and medium enterprises, (SMEs) and concentrate more on young people and women to help increase their returns.

Reduced Cost-to-Income Ratio

Amr El Saadani

The survey showed that lenders within the GCC, which includes the United Arab Emirates and Saudi Arabia, will begin to reduce their cost-to-income ratio down to 35% from the current 36% average. The goal is to improve the return on equity investments to an impressive 20% by the year 2015 from today’s 16%, according to the survey, which included the opinions of 47 senior executives at banks in the region.

“The SMEs have traditionally been a small part of the business as the government sector dominates the economy,”said Amr El Saadani, managing director for Accenture’s financial services practice.

“Governments are now diversifying their economies and most banks have indicated they are interested in pushing this business,” added El Saadani.

Still Recovering from Global Crisis

GCC banks are still recovering from the international credit crisis of the past few years, which reduced lending considerably, harmed the investment banking industry, and led to more defaulted loans. Now economic growth is on the rise, spurred by increased government expenditures in response to recent political discontent, and higher prices for oil. This economic boom has also increased lending.

But the loans to SMEs only comprise about 2% of the total amount of lending in the GCC. This is a tiny percentage, especially when compared to about 27% in the countries which comprise the Organization of Economic Cooperation and Development, said El Saadani.

Women and Youth Will Play a Greater Role

It is important to keep in mind that over half of the population of the GCC is under 30 years old; and women-held assets is on the verge of an increase to close to $800 billion by the year 2014, compared to only $500 billion in 2009, added El Saadani.

“Young people are extremely tech-savvy,” El Saadani said.

“Women increasingly are also highly educated, increasingly employed and are becoming extremely demanding customers.”

Booz and Company Encourages Trade, Investment and Common Currency in GCC Countries

According to Booz and Company, countries in the GCC region would benefit greatly from cross-border trade and investment, as well as from a single common currency.

The Ideation Centre, the company’s Middle East think tank, recently stated that any progress made so far is a result of individual efforts instead of a coordinated effort of the region.

Hatem Samman of Ideation Centre said “There has been progress but more could be done to bring more benefits. There is still a lot of focus on the individual but if you complement that with an integrated view, it will do the region good.”

According to the report, the 2010 withdrawal “of the UAE and Oman from the proposed common currency is a major setback to its creation. It is difficult to imagine a monetary union and currency regime that excludes two of the GCC’s members.”

Still, despite the common currency issue, cross-border trade and international investment have been growing in the GCC countries, including Oman.

Just recently, the Oman-India Investment Fund Muscat announced its plans to expand a number of its projects. According to HE Anil Wadhwa, trade between the two countries has surpassed $4.5 billion.

“We have registered impressive growth if you look at the figures for bilateral trade in 2006 which were less than $750 million. India ranked as the fifth largest source of imports into Oman. In 2010, India ranked second among the destinations of Omani non-oil exports and third among the top destinations of Omani crude oil exports,” Wadhwa said. He added that imports between the two countries are continuing to grow.

GCC To Support Yemeni Refugees if Need Arises

The Gulf Cooperation Council (GCC) is entering a new stage in its development as it celebrates 30 years since its founding.

GCC Determined to Stay United

The Omani Minister of Foreign Affairs, Yusuf bin Alawi bin Abdullah, released a statement to the press affirming the unity felt among the governments of the GCC countries in spite of the recent developments in the region which has place stress on the various alliances.

Yusuf bin Alawi bin Abdullah

Bin Abdullah added that the reason for this unity is that the citizens of the Gulf region understand and respect the importance of unity and loyalty to their homelands as well as to their leadership.

Yemen Point of Concern for GCC

The Foreign Affairs minister also expressed his sadness at the unfortunate events which have been transpiring in Yemen over the last two days, calling on the sides involved in the conflict to use wisdom when discussing their disagreements and differences.

Bin Abdullah explained that although the GCC has halted their initiative to help Yemen, they are nevertheless ready to lend aid to the people of Yemen, saying,

“We are ready to help our Yemeni brothers once the circumstances and ground situation on which we can work are appropriate.”

No Refugees So Far

He stated that so far Oman has not seen any large scale traversing of the borders of Yemen as a response to the present crisis there, and he does not expect to see a refugee problem, but if one should arise in the future Oman is ready to help out in whatever ways are needed.

In response to other issues of concern to the GCC Bin Abdullah stated that the issue of Jordan and Morocco joining the GCC is one that will be discussed to see if such a step adheres to the goals that were determined at the Consultative Summit.