Oman Going to Riyadh Travel Fair 2012

Riyadh Travel Fair

After realizing a 17% increase in tourism from the Kingdom of Saudi Arabia (KSA) to the Sultanate of Oman from 2010 to 2011, the Ministry of Tourism in Oman has decided to participate in the upcoming Riyadh Travel Fair 2012.

Director General of Tourism Promotion at Oman’s Ministry of Tourism Ali Khaburi said:

"Saudi Arabia is a key tourism market from many perspectives. Saudi visitors are growing in number and we think they are also increasing their length of stay. The market is broadening from business and family segments with short break leisure travel becoming more prominent. We also think Salalah has significant year-round potential for the Saudi Arabian market, and growing demand for travel will lead to non-stop air services between Saudi Arabia and Salalah.”

The fair will be held from May 15 to 18 and is considered an important event for tourism networking with many countries participating. The Oman Ministry of Tourism is especially excited to showcase many of the country’s most popular tourist destinations, with an emphasis on newly opened resort hotels at Jebel Sifah and Salalah.

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.

Best Ever Year for Hyundai in the Middle East

Tom Lee Head of Hyundai Middle East

The world’s fastest growing car manufacturer, Hyundai Motor Company, posted its yearly sales figures for 2011, showing record growth in the Middle East region.

Compared to 2010 Hyundai experienced a 9 percent overall increase in sales during 2011, selling a record number of cars at 283,953 vehicles.

In the Levant and GCC countries Qatar showed the largest increase in sales in one country, purchasing the Korean manufacturer’s cars 93% more times than last year. Kuwait had 76% growth and Lebanon had a 35% overall increase in sales. In the UAE sales went up by 29%.

Even in Saudi Arabia, Hyandai’s biggest market, there was a significant upward movement of car purchases, by 18%, to more than 106,000 cars. Yemen and Bahrain also showed better sales than last year, while Syria, Jordan and Oman still remain Hyundai’s best markets after Saudi Arabia.

Tom Lee, Head of Hyundai Middle East’s Regional Headquarters, said: “Across the GCC and Levant countries, customers have shown their confidence in our new range of ‘Modern Premium’ cars in growing numbers. While our SUV line-up continues to perform strongly across the region, new models such as the Elantra, Sonata, Veloster and Accent, together with our flagship luxury cars, the Centennial and Genesis, are introducing the Hyundai brand into increasing numbers of homes.”

Forum for Saudi-US Cooperation Opening in Atlanta

The Second Annual U.S. – Saudi Business Opportunities Forum, scheduled to open in Atlanta on Monday, December 5, and last three days, will discuss a variety of cooperative ventures worth an estimated $325 billion. The sectors which will most likely receive the lion’s share of the support are in education, oil, gas, infrastructure, petrochemical industry, transportation, water and electricity and information technologies.

Long-Lasting Partnership

The goals of the forum are many, but high on the agenda will be a desire to forge lasting bonds of cooperation and partnership between leading Saudi and American business executives while exploring the many new opportunities arising in the further development of both countries.

It is expected that there will be at least 1,200 delegates to the forum, including four Saudi Arabian ministers. In addition the head of the King Abdullah City for Nuclear and Renewable Energy will be present and participating in the forum.

“The forum will enable American companies to make use of the huge investment opportunities worth $385 billion offered by the Saudi government’s ambitious development plan in infrastructure, health, education and other projects,”

an official statement commented. The statement added further that there will also be discussions of the prospect of Saudi investments in Georgia, the US state which is hosting the forum.

Potential Cooperation Realized

Minister of Commerce and Industry Abdullah Alireza

One of the Saudi speakers, Commerce and Industry Minister Abdullah Alireza, commented on the renewed motivation to develop strategic US-Saudi partnerships and cooperation. He said that he expects this relationship to continue for many years, saying that “this forum will work to ensure that this great potential is realized.”

“Saudi Arabia is the top market in the region, and potential US exports are forecast to more than double by 2015,” he added.

For more information visit the US-Saudi Business Opportunities Web Site.

Pilgrims to Mecca Offered Deal From Oman Mobile

Customers of Oman Mobile, the mobile phone subsidiary of Omantel, can now more easily stay connected with their loved ones back home while they participate in the Haj.

Haitham Abdullah al Kharusi

The deal was announced by Haitham Abdullah al Kharusi, the vice president of the consumer business unit of Omantel. Beginning on October 26th, and continuing until November 30th this year, Oman Mobile customers will only have to pay a flat rate of 99 baisa per minute when they use their mobile phones in Saudi Arabia while receiving roaming service with Mobily or STC for all calls made between Oman and Saudi Arabia, both incoming and outgoing included.

Al Kharusi explained his company’s new offer:

“Haj is a special time for all Muslims and we at Oman Mobile recognize the importance of keeping our customers in touch with their families wherever they are.

“The new offer will enable our customers to stay in touch with their families and friends back home at low rates introduced for the first time.

“No matter if the customer is subscribed to Mada postpaid or Hayyak prepaid, calling or answering calls, daytime or at night, Oman Mobile customers will enjoy this never- before-offer of a flat rate of 99Bzs per minute.”

Omantel is one of Oman’s leading telecommunications companies, offering Omani citizens a modern network of communications services allowing them to stay connected within the Sultanate and the rest of the world.

High Unemployment Rates in Bahrain and Oman

The asset management firm Al Masah Capital published a report revealing that Oman and Bahrain have the highest unemployment rates than other Gulf countries.

The Great Job Rush

The Dubai-headquartered firm released ‘MENA: The Great Job Rush’, which described rates of 15% unemployment in each of the two Gulf states. In comparison, neighboring Qatar has an unemployment rate of 0.5%.

Saudi Arabia also revealed its own high unemployment rate of 10.8% while in the midst of a program of nationalization designed to help reduce this rate.
Kuwait’s jobless rate is also low, hovering at about 2.2%.

The report stated that “there is an urgent need for action.”

“Joblessness is a structural problem, particularly among the youth in the region. Short term solutions will not remove problems which took generations to fester. Deep structural changes are required, changes that go to the heart of cultural mentality.”

The MENA region has the highest unemployment rate in the world, with North Africa at 9.8% and the Middle East at 10.3%.

Youth Hit Hard

Saudi Arabia faces a serious unemployment problem among the young of the nation. The Kingdom’s youth are out of work at a rate double that of the global rate of jobless people, at 25.9% compared to 12.6% for the rest of the world.

A report of the World Bank published in 2003 predicted that the MENA region will need to create about 100 million new jobs during the 20 years between 2000 and 2020 in order to overcome a severe unemployment crisis.

Protests for Better Wages Continue in Oman

Demonstrating for higher wages, private security guards blocked the main airport in the Gulf State of Oman on Wednesday.

Concessions Granted

Despite the fact that Oman’s ruler, Sultan Qaboos bin Said, has granted several concessions since the unrest began there several weeks ago, the unrest has continued apparently unabated. The Sultan, who has been in power for 40 years, as already decided to give some legislative powers to the Oman Council, to double monthly welfare payments, and to raise pension payments. This follows the pattern of other Gulf States who are offering cash to protesters in an effort to quell the unrest and maintain order.

In the latest action by demonstrators, about 400 to 500 security guards, who are privately employed by several different security companies, staged a protest on the road to the Muscat airport.

One protester, who wished to remain unnamed, said that, “Our objective of this protest is for our wages to be raised.”

The protesters left the scene when the police asked them to disperse. No violence was reported, although some travelers did not make their flights in time.

Other Protests in Oman

Workers from the state run oil firm Petroleum Development Oman (PDO) also demonstrated on Tuesday for better wages. Several hundred employees staged their protest at the company headquarters and in the oil and gas fields. This work stoppage was the first to disrupt a Gulf energy firm since the demonstrations swept through the region.

There have been protests at Oman International Bank, Oman Investment Finance Company and the Intercontinental Hotel, which is owned by the government.

There have also been demonstrations for improved political conditions, including sit-ins at the consultative Shura Council in Muscat, in front of the governor’s office in Salalah in the south and also in Sohar. Along with improved wages, and an increase in the number of jobs, protesters also demand an elected parliament and a new constitution.

Gulf States Regaining Stability, At Least for Now

Sultan Qaboos bin Said

This past Sunday was the first trading day throughout the Persian Gulf region since the announcement by Gulf State foreign ministers that they were pledging $20 billion in financial aid to assist fellow Gulf States Oman and Bahrain, who have been facing civil unrest and anti-government demonstrations for the past several weeks. This boost has proved to be welcome medicine for the region, prompting a strong showing on the Gulf’s major markets. Dubai’s main market was the leader in gains with an increase of 4.3% up to 1,513 points.

Saudi Arabia Quells Mass Protest with Mass Show of Force

Another factor contributing to the improved market performance was the averted major protests which had been feared were going to appear in Saudi Arabia. But the Saudi main financial index increased by 1.5% to trade at 6,693 points. The much feared anti-government protests in Saudi Arabia were thwarted by a huge show of power and force by the Saudi security forces, thus, at least for the time being, quelling the national fervor to protest.

Oman Grants More Handouts

Helping to improve the optimistic market mood was the announcement that Oman’s ruler, Sultan Qaboos bin Said would be doubling the welfare payments to his citizens while also increasing pension payments. This is just the newest in a series of rulers offering improved financial entitlements to citizens as a result of the regional unrest which has been taking the Arab world by storm in the last few months.

More Power to the People?

The sultan has also agreed to grant lawmaking powers to the Oman council. This is a huge concession on the part of the sultan who has led Oman as a dictator for the past 40 years, with only himself and his cabinet able to create legislation. The Oman Council, until now, was only able to advice the sultan. Consisting of two parts, the elected Shura Council and the State Council, which consists of members who the sultan has himself appointed, giving legislative power to the council is a decision which came on the heels of shocking protests in Oman which left one person dead.

The concessions were met with mixed reactions on the part of the protestors, who continue to hold a vigil outside the Shura Council, some were skeptical while others were hopeful.

“It does not mean much at the moment. We will celebrate when the Shura Council is granted real powers in the running of the government,” protester Hadi Suleiman said.

Faiz al-Ashour, another protester, said: “It looks good and it shows that the protests are beginning to bear results toward meaning political reforms.”

What If the Oil Stops Flowing from Oman Too?

China Imports Oil From Oman

As tensions in the Middle East continue to rise, concern about the political stability in Oman is mounting. Unrest in the sultanate has not yet reached the levels seen in countries such as Libya or even Bahrain, with only 2 deaths which can be attributed to clashes between demonstrators and security forces, but there are fears that the situation in Oman will worsen.

China and Asia Worried

The majority of oil exports from the Middle East go to China and Asia who are especially worried that Oman will join in the general grassroots uprising spreading like wildfire throughout northern Africa and the Middle East, breeding fear in the east that the supply of oil from Oman may be disrupted.

Oman is not a member of OPEC (Organization of Petroleum Exporting Countries) but it does have the largest supply of oil reserves of any country in the Middle East which is not a member. In 2010 Oman produced 863,000 barrels per day of total petroleum liquids, almost all of which was crude oil. Over the past three years oil production there has increase by more than 20%.

Can Saudi Arabia Fill In for Libya?

At the moment there is nothing but uncertainty about how much the flow of oil from Libya will be disrupted due to the war raging there. Saudi Arabia has said that it can increase output to cover the Libyan deficit of oil deliveries, but to what extent it can do this is a big question.

West Looking East with Concern

The main importers for the oil from the Middle East and North Africa are Asia and China, who are watching the developments in the region with growing concern. Most likely, if the situation worsens and oil supplies are severely disrupted, China and Asia will turn to Mexico for their oil, leaving countries such as the US, Great Britain and Europe to fend for themselves.

Oman Air Employees Join National Unrest Movement

This past Sunday employees of one of Oman’s major companies took to the streets outside the headquarters of Oman Air in Muscat, not far from the Gulf state’s international airport in Oman’s capital city. This latest protest comes on the heels of several days of demonstrations in Oman demanding political reforms. Oman, together with Bahrain, the small island state in the Persian Gulf, have been the locales for the largest and most enduring outbursts of unrest in the Gulf states which is part of the general unrest transpiring in the Arab world since January 25th’s explosion in Tunisia and then in Egypt.

No Disruption in Flights

According to several witnesses about 100 employees at Oman Air joined together in the late morning hours to call for better working conditions. The national air carrier’s chief officer for corporate affairs, Philippe Georgiou stated that no flights were disrupted by the demonstration and that the airline is ready and willing to discuss issues with the protesters. Mr. Georgiou told the Associated Press that the demonstrators represented several corporate departments and they have a wide range of demands, one of which being higher compensation.

Mr. Georgiou said of the timing of the protest that, “The general environment is of people expressing their views … in the region.”

Watchful Eye on Oman

The other Gulf nations, especially Saudi Arabia, are keeping a wary watch on the unrest in their fellow regional states, especially Oman. Oman, along with Iran, shares the responsibility of controlling the crucial waterway through which 40% of the world’s oil tanker traffic passes, the Strait of Hormuz.
Oman Air services 41 destinations, mostly in the Middle East and India, with a few routes to Europe and Southeast Asia as well.

Government Shakeup

Protesters have come out to demonstrate throughout Oman, staging sit-ins and similar events, to call on the government to reform the economy and hold investigations into who is responsible for attacks on protesters. In response to the unrest, on Saturday Sultan Qaboos bin Said, the ruler of Oman, fired three key government officials in what was the second installment of government shakeups in the same number of weeks.