Sector’s status6 November 2018

Shahswar Al Balushi

Chairman statement

Sector’s key challenges

• Workforce issues.• Payment issues.• Common terms of contract.• Availability of new projects.• Lack of decision.• Image and perception.• Dying sector.

December 2016

Cross road

Recap how we got here

• 2002 Omanization target mistake 30%.

• 2005 OSC formation & 2007 registration.

• Did not take advantage of economic boom 2006 to 2014.• To address key sector challenges.• Reinvent sector image and strategies.• Elevate sector standard.

• Economic downturn of 2015 brought added challenges.

• Sector remains ununited and fragmented.

In 2015 OSC took the bull by the horn

Construction initiative

Objective

• Realistic Omanization targets.

• Hidden trade issues.• Freelance workers.• Construction worker single

nomenclature.

Status

• Presented and approved during Tanfeedh in October 2016.

• Approved by Financial Affairs and Energy Resources Council in 2017.

• Approved by Ministerial Cabinet in 2017

• Ministerial Decision drafted and raised to MOLA in 2017.

• Expect MD end 2018.

Companies’ classification

Objective

• Develop sector base standard.

• Ringfence the sector.• Eliminate hidden trade.• Create level playing field.• Enable sustainable growth

for the sector.

Status

• Portal ready.• Online payment with Bank

Muscat• Integration with MOM and

MOCI• Launch Jan 2019• Adoption partners:

• MOM, MOF, OCCI, CMA, CBO, TB, Municipalities.

Payment issues

Objective

• Address older outstanding.

• Timely payment.

• Penalties impact.

• Common terms of contracts.

• Cost escalations.

Status

• Proposal to MOF. Additional funds

• Personal input

• Task force.

• Works Authority

Economic stimulation

Objective

• Increase government investment.

• Facilitate private sector investment.

• Expedite project approvals.

Status

• Continuous dialogue and push with:

• MOF (guarantees)

• MOCI (PPP)

• SCP (Project approvals)

• Tanfeedh

• Majlis Shurah & State Council.

Other initiatives

• Training:• PDO MOU

• National Training Fund.

• Media exposure:• TV.

• Radio.

• Newspapers.

• Magazines.

• Representation:• Tanfeedh• MOM steering committee.• Construction committee.

• Stakeholder engagement:• MOM• Tanfeedh• MOCI• MOF• PFD• MECA• Cabinet• Majlis Shurah and State Council• Supreme Council of planning.

Alignment

Upcoming initiatives

• HSE learnings.

• ICV achievements.

• Success stories.

• New processes and technologies.

What has OSC done for me

The critical question

Why OSC could not achieve sector’s objectives from 2007

•Who is OSC?

•Why OSC was establish?

•What tools was offered to OSC to help it succeed for the sector and ultimately you?

• Our base is weak.• Not unified.• Fragmented in vision and

focus.

• Sector with most problems.

• We make lots of money and give nothing back.

• We do not share or advertise our successes.

• Not the best employers.

• We lack Standard.• Safety• Quality• Human development

• Firefighting.• No long term plan.

• No Preemptive strategy.

• Stagnating.• Technology.

• Modality.

• Lack of commitment • To sector cause.

• Self improvement.

• In country value.

Image and perception justified or not

2019 and 2020 toughest couple of years and game changers

Financial challenge of OSC

• Deficit as of end October 2018 OMR 51,335

• We need to raise OMR 100,000 over the next 4 months options are:• Timely renewal of membership.

• Support to recruit new members.

• Classification.

• Cash injection in form of support or sponsor.

We need to decide on this today

Going forward

• It is critical for OSC to continue. • Awayday (survey).

• Start classification.

• Strengthen OSC with new members and financial support.

• Members engagement is crucial in the way forward.

• Oman is more and more heading to become a state of institution hence we need united front.

Thank you