April 2016 Issue 15. Vol 1

Our Message Executive Summary Exclusive Interview Infrastructure Market Update Manufacturing Petrochemicals

Feature Story Travel Corner News

OUR MESSAGE ... 3

EXECUTIVE SUMMARY ... 4GCC stock markets poised for comeback

EXCLUSIVE INTERVIEW ... 6Andre Toet: Logistics could overtake oil in Oman economy

INFRASTRUCTURE ... 8Debt markets hold potential to finance GCC projects

MARKET UPDATE ... 11Gulf markets rise as clouds of uncertainty dissipate

MANUFACTURING ... 13Oman’s Napco upbeat as manufacturing gathers speed

PETROCHEMICALS ... 16Pressure eases on global petrochemical prices

FEATURE STORY ... 18Time is money: Five of the world’s most exclusive watches

TRAVEL CORNER ... 215 secluded Caribbean destinations for adventurous sunseekers

NEWS ... 23

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CONTENTS

Dear Valued asalah Priority Banking Client,Optimism prevails in the GCC markets as global oil prices make a slow yet steady recovery, allowing regional governments to continue focusing on developing key sectors of their economies, such as infrastructure, manufacturing and petrochemicals.

As recent oil output freeze talks in Doha reached an impasse, Oman stepped in to mediate between major oil producers in a bid to bring parties back to the negotiating table. The Sultanate is expected to play a critical role in producers’ attempt to reach a consensus, in time for OPEC’s next meeting in June. A freeze on oil production would likely restore stability in the global oil market.

Despite the resource crunch, the Sultanate’s economic development has made healthy strides. With targeted annual economic growth at a realistic 3% during the Ninth Five-Year Plan (2016-2020), the country has identified sectors such as tourism, mining, aquaculture, logistics and transport as key areas of growth. Amendments to the capital investment law are in the final stage and the new legislation is expected to incentivise local and foreign investors to consider various priority sectors.

Business conditions are set to improve in the Sultanate, with 43% of respondents in a survey conducted by Bayt.com and YouGov saying they are optimistic about the future.

Credit disbursal in January grew by 8.8% to take the total asset of conventional commercial banks to OMR 28.1 billion, a 10.7% growth compared to the same period in 2015.

Public transport in the Sultanate has taken a major step forward with the revamped Oman National Transport Company (ONTC) unveiling newly branded Mwasalat buses and routes. The expanded services follow a OMR 10 million investment. Mwasalat aims to serve 5 million passengers per year on its city and long-distance routes. ONTC is also planning park-and-ride areas in co-operation with Muscat Municipality, which will promote the government’s environment conservation efforts, as well as ease traffic.

Raising the pitch for investments, Oman believes the GCC Railway project is vital for the region. As a result, the Sultanate is pushing ahead with its railway plans, even outpacing its Gulf neighbours in terms of designing the project. The country is moving closer towards awarding some of the contracts.

Backed by positive first quarter earnings results, shares on the Muscat Securities Market recovered amid support from institutional and retail investors. The market is in a positive trajectory as it recorded its best level of performance in six months since mid-2015, to touch above 5800 points.

Meanwhile, the Sultanate’s flagship al Mazyona savings scheme marks a milestone with the first exclusive quarterly prize draw lined up for Bank Muscat’s Premier banking clients. At stake are two high-value prizes worth OMR 250,000 each earmarked for asalah Priority banking clients and two prizes valued at OMR 50,000 each for al Jawhar Privilege banking clients. Premier banking clients can also participate in al Mazyona weekly, monthly, quarterly and special prize draws, which offer a total prize money of OMR 10 million.

With regards,

Abdulnasir N. Al Raisi,Deputy General Manager – Premier Banking

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OUR MESSAGE

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EXECUTIVE SUMMARY

GCC stock markets poised for comeback

Equities are starting to look attractive from a valuation point of view, whet-ting investors’ appetite after months of being in the red.

Regional markets are staging a strong recovery after spending much of the last few months in negative territory. International and domestic investors now see value stocks and bargains on offer in many Gulf markets and are positioning themselves early for an eventual recovery. The Muscat Securities Market offer some of the most attractive valuations across the wider MENA capital markets, with its price-to-earn-ings ratio at a tantalising 10.33 times compared to 11.87 times for the wider GCC markets.

Other state-owned companies are also shaking off some of the gloom brought on by low crude oil prices. Oman Oil Refineries and Petroleum Industries Co (Orpic), for example, recently announced it has secured USD 3.8 billion of funding for its Liwa Plastics Industries Complex. The financing, which was supported by export credit agencies representing the governments of Italy, the Netherlands, South Korea, the United Kingdom and Germany – along with 19 international, regional and local commercial lenders – underscores internation-al investors’ confidence in Oman as a business hub, despite recent sovereign ratings cuts by global ratings agencies.

Even as crude oil prices recover, Oman and Gulf authorities are expected to continue to tap into international markets to fund major infrastruc-ture projects that are worth billions of dollars.Countries in the GCC region would have to meet their fiscal requirements through a combination of reserves, bond issuances, loans and other financing mechanisms.

Rising dependence on fixed-income markets would also mean that Oman and other GCC states will have to streamline their debt needs and create more robust strategies and regulations to allow debt markets to flourish.

If Gulf states can create more attractive rules and conditions, interna-tional investors will likely be more drawn to GCC-issued debts, rather than those by other emerging markets, given most of their currencies are pegged to the US dollar and their economies enjoy a strong fiscal position.

EXCLUSIVE INTERVIEW

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Andre Toet: Logistics could overtake oil in Oman economy

The chief executive officer of SOHAR Port and Freezone believes the Sultanate has all the right ingredients to fuel growth in the logistics sector.

Andre Toet, the chief executive officer (CEO) of SOHAR Port and Freezone, discusses challenges the port’s strong growth brings; how the Internet has reshaped the global logistics industry; and how Sohar in the Sultanate of Oman’s northern region coped with doubling its traffic almost overnight.

WHAT WERE SOHAR PORT AND FREEZONE'S MAJOR ACHIEVEMENTS LAST YEAR?

2015 was a big year for SOHAR Port and Freezone, which averaged close to one million tonnes of cargo a week. With growth across all cargo volumes, a historic call from one of the world’s largest vehicle carriers, a brand new food zone in its infancy, and a number of high profile award nominations, 2015 was a period of growth and prosperity for Sohar.

Last year, over 2,500 vessels visited the port and over the last nine months, Sohar has added two major shipping lines to its roster. Last summer, the Port celebrated the maiden call of the 8,600 twenty-foot equivalent unit (TEU) ‘M.V. Hanjin Hamburg’, which facilitates direct links to South Korea, China, Malaysia, and Singapore; the port also added the Evergreen Line and Simatech Shipping to its roster in May.

In December, Orpic rewarded a number of contracts for its USD 6.4 billion Liwa Plastics project. Liwa Plastics Industries Complex will add USD 2.3 billion to Oman’s GDP once fully operational.

WHAT ARE THE MAIN CHALLENGES YOU'RE FACING IN 2016?

Everyone loves growth, but managing it is sometimes not as easy as it sounds. We had our first ship in Sohar in 2004, and now we’re handling over 2,500 ships a year and a million tonnes of cargo a week. We’ve sustained double-digit growth for over a decade in Sohar, and we don’t plan to stop growing anytime soon. As a 24/7/365 operation, we cannot slow down while changes are made or infrastructure is upgraded. It’s like rebuilding the plane in mid-flight without landing, and this continues to pose new challenges for us in 2016.

WHAT DO YOU SEE AS THE BIGGEST OPPORTUNITIES IN OMAN'S TRANSPORT AND LOGISTICS SECTOR AT THE MOMENT?

From the standpoint of Oman’s economic diversification strategy, the logistics industry has the potential to surpass the hydrocarbons sector as the nation’s economic mainstay. Oman’s logistics sector is projected to grow beyond the USD 12-billion mark by 2017. This is not surprising, considering the Sultanate is ideally positioned to play a leading role: our prime geographical location, combined with the excellent infrastructure already available and currently under construction, as well as our stable political climate, are all key ingredients that are contributing to the continued growth of the logistics industry in Oman.

WHAT ARE THE BIGGEST CHANGES YOU'VE SEEN IN THE INDUSTRY OVER YOUR CAREER?

When I took over as managing director of P&O Nedlloyd Europe in 2000, the Internet was starting to take the world by storm. This was the boom time of dotcoms in Silicon Valley; Google was two years old and I think at that stage, very few people could really see the full picture. The shipping industry is conservative at the best of times and generated huge amounts of paperwork connected to shipping, customs, and clearances. Sixteen years later, the level of information available 24/7 on my smartphone is

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mind-boggling. And although the shipping and logistics sector is not the fastest when it comes to technology adoption, the automation of container movements has changed our industry entirely and has contributed significantly to the ease of globalisation and to the massive reduction in logistics costs.

WHAT WAS THE MOST CHALLENGING MOMENT, OR A KEY TURNING POINT, OF YOUR CAREER?

In 2014, Port Sultan Qaboos closed in Muscat and all commercial traffic was re-directed to Sohar. Practically overnight our container terminal managed by Hong Kong’s Hutchison Group, as Oman International Container Terminal or OICT, had to handle double the number of containers. Not just the ships and containers moved from Muscat, new customs procedures had to be established and shipping agents relocated. Within the space of maybe two months, OICT doubled their capacity and was running better than ever before.

WHAT'S THE BIGGEST RISK YOU'VE EVER TAKEN – PERSONAL OR PROFESSIONAL?

I always like to take control of risks and approach with caution. Although, having survived a terrorist attack in the late 1980s, it’s never possible to avoid taking risks as long as you never regret the decision taken and keep on looking forward.

INFRASTRUCTURE

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Debt markets hold potential to finance GCC projects

Low oil prices did little to dampen the region’s building appetite, but alternative sources of funding are needed to prevent reserves from being depleted.

The Gulf states’ desire to maintain infrastructure spending, albeit at a much lower level, suggests that governments will need to dip into their reserves or finance projects through loans and bonds.

As the region faces increased financing needs, debt issuance volumes will also rise across the region, particularly in core markets like Saudi Arabia.

“We expect rising debt issuance by issuers in the kingdom in the coming years, which will help the country's efforts to further develop its capital markets," said David Aldrich, associate managing director of emerging markets at Moody's.

Indeed, there is a need to develop fixed-income markets not only in Saudi Arabia, but also the wider GCC.

Management consultancy Ernst & Young believes Gulf countries should pool their resources on infrastructure and other issues to transform the GCC states into an economic powerhouse.

“Moving from a competitive to a collaborative approach – whether nationally or across the GCC – will be crucial to future-focused decision-making in a world where areas such as transport infrastructure, healthcare and digitalisation are increasingly connected.”

Combined, the Gulf states could emerge as the sixth largest economy in

the world by 2030, which would give them the financial muscle to lower borrowing costs and gain critical mass.

“Our analysis shows that a fully functioning single market could reduce overall trade costs in the GCC, boost productivity and attract higher levels of foreign direct investment.”

That would also help streamline infrastructure projects and secure more attractively priced financing for large-scale developments.

OMAN BULLISH ON PROJECTS

While a prolonged period of low crude oil prices has tempered appetite for infrastructure projects in the Gulf, important developments continue to proceed.

In March, the Oman Power and Water Procurement Company floated two tenders for international consultants to provide proposals on financial, commercial and legal advisory services to expand the country’s power capacity.

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The Sultanate has also awarded a consortium led by Spanish water services giant Valoriza Agua SL to carry out a contract to build a new independent water project at Sohar. The Madrid-based company teamed up with Oman Brunei Investment Company and Sogex Oman LLC to build the Sohar IWP, with a capacity to produce 250,000 cubic metres per day of desalinated water.

In addition, Dhofar International Development & Investment Holding Co SAOG announced that a consortium led by Mitsui & Co Ltd of Japan has been awarded a contract to build the 3,219 MW Ibri-Sohar3 power project – the largest single-tendered independent power project (IPP) in the country.

Oman’s investment in enhancing its power and utilities infrastructure grew 27% last year despite the low crude oil prices, and the momentum remains uninterrupted.

The country has also pledged to move ahead with its own railway network, and agreed a new timeline with partners for the wider Gulf network.

PROJECTS STAY THE COURSE

Across the GCC region, Saudi Arabia is moving ahead with a number of its expansion plans, but it is also streamlining costs in the low-oil price environment. The authorities recently merged Saudi Railways Organization and Public Transport Authority to help boost efficiency and rationalise projects.At the same time, the kingdom pledged to develop transportation infrastructure projects in the Eastern Province at a cost of USD16 billion.

Some of the developments include the construction of two metro lines, one running from Tarout Island via Qatif, Dammam

and Dhahran to the King Fahd Causeway, while the second line would connect King Fahd Road in Dammam to King Fahd International Airport.

Qatar is also persevering with its government spending on key projects. Data from the third quarter of 2015 show the construction sector grew 16.6% year on year, as the country gears up for the FIFA World Cup being held in the country in 2022.

The government is contemplating projects worth USD 150 billion, according to a report by First Qatar Real Estate Development Company.

The country is aiming to enact a law covering the use of public-private partnerships (PPPs) by the end of 2016, to boost private sector participation in large-scale projects, so as to reduce the burden on public sector finances.

In addition, the UAE is pursuing a number of infrastructure projects focused on transportation, power and healthcare. Earlier this month, Dubai signed a contract with UAE-based Al Jaber LEGT Engineering and Contracting (ALEC) to expand the Al Maktoum Dubai International Airport to 145,926 square metres (sqm) from the current 66,107 sqm. Meanwhile, Abu Dhabi has earmarked more than AED 470 million for infrastructure projects in the capital’s southern areas.

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MARKET UPDATE

Most Gulf markets are on the verge of climbing out of negative territory for this year after a smart rally pushed stock prices higher in March. The S&P GCC index was up 1.70% in the month of March, a welcome change after a weak start to the year.

The rally that began in February seems to continue in March as crude oil prices surged from their multi-decade low.

The surge has helped Gulf markets erase one of the worst starts to the year. Saudi Arabia – the region’s largest index by market cap – lost 13.2% in January alone, with Qatar (-9.1%), Kuwait (-8.9%), and Oman (-4.2%) all falling in tandem with global equity markets as fears about a hard landing in Chinese economy gripped investors.

But over the past few weeks at least some of the markets have recovered. Dubai, Abu

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Dhabi and Qatari markets are now firmly in positive territory, Muscat Securities Market was up 1.10% by the end of the first quarter, but Saudi, Kuwaiti and Bahraini markets remain in red.

The improved sentiment is driven by crude oil prices. The International Energy Agency said as demand remains robust and excess supplies seem to be draining out of the system, there is belief that prices may be bottoming out.

“For prices there may be light at the end of what has been a long, dark tunnel, but we cannot be precisely sure when in 2017 the oil market will achieve the much-desired balance. It is clear that the current direction of travel is the correct one, although with a long way to go,” the IEA said in its latest report.

Oil prices have also recovered as the US dollar has pulled back against other major currencies, making the commodity cheaper in most markets. The impact of the changing value of the US dollar on oil markets is thought by some to be a major driving force in the recent price recovery.

“Where this factor leads us in the next few months depends on how well commodity-dependent economies and net oil-importing economies have adjusted to lower prices; whether commodities prices have truly bottomed out as some believe; and on changes to interest rates,” the IEA noted.

Gulf markets rise as clouds of uncertainty dissipate

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OIL YET TO SUSTAIN RALLY

But analysts are not convinced crude oil prices are set for a rally throughout the year. Indeed, after rising 50% from their January lows, oil prices have stalled near USD 40 per barrel, with concerns about resilient US production and the return of additional Iranian barrels into the global market giving investors pause.

In addition, it is unclear whether OPEC’s proposal of freezing output will be adhered to by Russia and even the group’s own members.

The uneven recovery in Gulf markets shows there is still some way to go before investors are convinced of a sustained rally.

There are other headwinds as well. Prospects of most Gulf indices depend heavily on public sector spending, which has been curtailed this year. As authorities across the Gulf states rationalise spending, delay discretionary spending and unveil cut backs in energy and other subsidies,

many Gulf stocks could be impacted in a negative way.

In addition, Oman, Saudi Arabia and Bahrain have seen their credit ratings cut by international ratings agencies, which has dented investor sentiment.

“GCC governments have started to cut costs and introduce new revenue-enhancing measures. Lower public spending is likely to weigh on economic growth in 2016, although we expect it to remain positive as oil production is sustained and expenditure cuts are implemented only gradually,” says Mathias Angonin, an analyst at Moody’s.

Despite the fiscal challenges facing some of the Gulf states, they appear to be in far better shape than most of their frontier and emerging market peers.

Oman’s price-to-earnings ratio stands at 10.33, the second-lowest among Gulf markets after Bahrain’s 8.87x, and certainly lower than the GCC average of almost 11.87x. Other regional markets such as the UAE (10.72x) and Qatar (12.24x) are also attractively valued, compared to their international peers in MSCI Emerging Market Index that had a collective P/E ratio of 13.68x by the end of March.

Regional markets are still a long way from staging a full-fledged recovery, but they have come a long way up in the past month, which bodes well for the future.

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MANUFACTURING

Developing its manufacturing expertise has allowed the Sultanate to compete on a global scale and attract foreign investors.

In a sign of growing confidence, Oman’s National Aluminium Products Company, or Napco, has pledged to double its production capacity on rising global demand and to fulfil the government’s desire to boost the manufacturing sector’s role in the economy.

Despite a weakening global economy, Napco’s production grew a staggering 45% in volume, while revenues grew 30%, with net profit rising 11% in 2015.

“We are exploring certain markets in Africa at this point and have come to agreements with traders mainly in East Africa,” Robert Holtkamp, chief executive officer at Napco, said in a media interview. “Our expansion will take our capacity to 42,000 mt per year so we intend to increase our sales in Oman, the region and further explore new markets.”

Napco’s efforts are part of a wider push in the country to raise the profile of the manufacturing sector, and attract investments from neighbouring countries.

“Omani manufacturing is considered one of the vital and strategic economic sectors. Therefore, it was given specific attention in the development plans…,” the Ministry of Commerce and Industry said in a statement.

Oman’s 2020 Vision forecasts the manufacturing sector to contribute 15% to the country’s economy by the end of the decade. The sector currently contributes 9.5% to the Omani GDP, with an average rate of 6.84% from 2011 to 2014, according to the ministry.

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While manufacturing of basic chemicals saw a decline of 20.2%, “other” manufacturing industries posted a 17.6% growth in the first nine months of 2015, data from the National Centre for Information and Statistics (NCIS) indicate.

The sector employs over 231,000 workers, with Omani citizens accounting for around 20,000 of those jobs.

Over the past decade, Oman has built a gas liquefaction development, apart from a budding chemicals sector. The Sahar Industrial Port is also gaining ground with investments in iron, copper and aluminium industries, and the next phase would likely focus on adding value from domestic natural resources.

Oman’s Napco upbeat as manufacturing gathers speed

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“The establishment of a fisheries industries zone in Duqm is in the pipeline, as well as Liwa plastic industries, where an agreement has been recently signed to initiate its establishment,” the ministry noted.

ATTRACTING INVESTMENTS

The push to attract foreign investors is working. An Indian entrepreneur has teamed up with Omani investors in February to help expand a sebacic acid plant in Duqm free zone.

Sebacic acid is used to make a host of products including engine oil and bio-plastics. The project will be expanded to produce 30,000 tonnes of the product each year, making it the largest in the world, according to developers.

Once complete after 18 months, the project will export its products to international markets.

The domestic private sector is also stepping up. Sandan Development, backed by Omani investors, is planning to build a OMR 100-million industrial park, across a 250,000-square-metre space near the Muscat Expressway.

The park is expected to host 2,300 workshops and showrooms for building materials and the automotive sector, as well as 450 offices and 1,400 residential units.

Meanwhile, Strategic & Precious Metals Processing LLC said it is investing USD 70 million to build a 20,000-tonne-per-annum-capacity antimony and associated products plant at Sohar, which is said to be the world's first major antimony roaster outside of China in several decades.

Oman’s manufacturing sector is growing, even as the wider economy slows down on account of the lower

crude oil prices and cuts in government spending. But the country’s geographic advantage and focus on industrial parks and regions should help Oman create a major industrial hub in the Arabian Sea, if it can attract foreign investors.

Sensing that opportunity, Oman is looking to raise its profile among Indian investors, by setting up a trade office in the Asian country. It will be the second Omani trade office in the world after Taiwan, another country which has strong manufacturing expertise.

The innovative thinking and bold approach to seize upon new revenue stream should help Oman stay on the path to a strong non-hydrocarbons economy.

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PETROCHEMICALS

Pressure eases on global petrochemical prices

The sector takes a breather from months of decline, as it made progress in hauling itself out of the rut in search of a comeback.

Petrochemical prices have jumped in recent weeks in tandem with crude oil prices’ recovery, boosting the stock prices of many regional petrochemical companies.

Most chemical prices have strengthened in recent weeks, driven by rising feedstock costs, stronger buying interest across the region, and supply tightness.

Ethylene prices inched up by USD 70 to reach USD 1,170 per tonne, while the cost of propylene rose to USD 676 per tonne. Naphtha increased by USD 9 to USD 337 per tonne, and ethane hit a five-month high in the US spot market to an average of 17.4 cents per gallon in March.

Rising feedstock costs and stronger buying sentiment across the region also pushed the HDPE price up further to USD 1,195 per tonne. In addition, buying interest gains, rising ethylene feedstock cost and a higher price for the

co-feedstock, purified terephthalic acid, or PTA, pushed ethylene glycol price to USD 725 per tonne.

March’s upturn reverses a protracted decline in petrochemical prices. The ICIS Petrochemical Indexes, which tracks 12 petrochemicals, including propylene and methanol, trended lower for the eighth consecutive month and was down 7.3% year on year by the end of February.

However, it’s unclear whether chemicals will be able to maintain their momentum, experts suggest.

“We expect chemical demand to weaken in the coming quarter, due to low seasonality, during which most chemical prices and spreads will likely soften in 2Q16,” according to Thailand-based Bualuang Securities.

“Despite that, the scale of the decline will be insubstantial, we believe. The key supportive factors are the supply outages. The peak turnaround season for olefins and aromatics plants in Asia is typically due in 1H16.”

GCC STOCKS RECOVER

The upturn in chemical prices has lifted the prices of Gulf equities as well. Saudi Petrochemicals Index, which features some of the region’s largest petrochemical companies, including Saudi Arabian Basic Industries Corp. (Sabic) and Saudi Arabian Fertilizer Co., is now down 2.8% year-to-date, compared to a 10% decline at the start of March.

The change in sentiment has also ensured that the Gulf petrochemical companies’ long-term project continue to secure support. Government-owned Oman Oil Refineries and Petroleum

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Industries Co. (Orpic) said it has secured USD 3.8 billion in project financing for its Liwa Plastics Industries Complex.

The financing was supported by export credit agencies representing the governments of Italy, the Netherlands, South Korea, the United Kingdom and Germany, along with 19 international, regional and local commercial lenders.

The Liwa projects, along with a few other large-scale projects, would boost Orpic’s contribution to Oman’s GDP to 9%, or USD 6.5 billion – from the current 5%, or USD 4.2 billion – according to the company.

Despite the improved sentiment in the petrochemicals sector, prices are expected to be range-bound, especially as the US shale producers upends global markets.

In March, the US shipped its first-ever export of ethane to Europe, signalling American producers’ growing ambitions.

INEOS, the company that exported the product, will use the ethane in its two gas crackers in Norway, both as a fuel and as a feedstock.

INVESTING IN R&D

Rising competition from new players means regional producers must use the crisis to innovate and find new revenue streams, according to Dr. Moayyed Al-Qurtas, chairman of the Gulf Petrochemicals and Chemicals Association (GPCA) Research and Innovation Committee.

“A certain degree of uncertainty exists and this will continue to be the case,” Dr. Al-Qurtas told a business audience in March. “However, it hasn’t stopped the chemical industry [from continuing] to invest in basic research capabilities in the past.”

Gulf petrochemical companies spent just over half a billion dollars in research and development in 2014, however, it represents a mere 1% of global research in the sector.

“There are many worthwhile solutions in addressing these challenges, including reduction in capital expenditure and better supply chain management,” said Dr. Abdulwahab Al-Sadoun, secretary general, GPCA. “However, analysis has shown that R&D has the best return on investment, thereby demonstrating the importance on the innovative process.”

Elsewhere, Saudi Aramco and Shell signed a letter of intent to divide the assets of their Motiva Enterprises refining and marketing joint venture in the United States. Saudi Aramco will retain the Motiva name and assume sole ownership of the Port Arthur, Texas refinery asset and distribution terminals.

The dissolution of the JV allows both companies to pursue an independent downstream integration strategy, which would lead to the Saudi entity expanding its international portfolio.

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FEATURE STORY

If you’re in search of a wrist-worn status symbol, look no further than these luxury timepieces designed for a discerning owner.

A watch says a lot about a person; their personality, their hobbies and even their net worth. Originally designed as a way to ensure people kept time so as not to be late for appointments, timepieces evolved to become true status symbols – something passed down from one generation to the next, a rite of passage.

Back in 1999, an anonymous bidder paid USD 11 million for the world’s most complicated watch, the Henry Graves Supercomplication (made in 1932). At the time, it was the world’s most expensive timepiece that took four years to build and boasts an amazing 24 actions/functions.

Time is money: Five of the world’s most exclusive watches

However, the challenge of constructing even more elaborate, more expensive, more exclusive timepieces has been taken up by the world’s horological manufacturers. Read on to discover the biggest and the best watches the world has to offer.

5. PIAGET, EMPERADOR TEMPLE, USD 3.3 MILLION

Kicking off the top five list is the Piaget Emperador Temple, weighing in with a relatively “frugal” price tag of USD 3.3 million. This total is down to the watches’ 481 brilliant-cut diamonds, 207 baguette-cut diamonds and an emerald-cut diamond atop the case. This is just the beginning, however, as the second part of the case is home to a secondary watch, whose dial is made with Polynesian mother-of-pearl and is encrusted with 162 brilliant-cut diamonds as well as 11 baguette-cut diamonds. A lady’s favourite, the Emperador Temple’s bracelet is also set with 350 baguette-cut diamonds. 4. PATEK PHILIPPE 5004T, USD 3.985 MILLION

Patek Philippe’s one-off titanium 5004T was produced specially for the Only Watch 2013 auction in support of the Duchenne Muscular Dystrophy medical charity. The 5004

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series was discontinued a few years before the 2013 auction, after which this titanium-cased piece was formulated. The watch manufacturer has only produced a handful of titanium watches in the past, most of which for specific auctions.

3. LOUIS MOINET, METEORIS, USD 4.6 MILLION

The clue is in the title for this exclusive watch, each of which has been constructed with elements of

outer space. Just four pieces were produced in this set: one containing elements of an asteroid (the Itqiy meteorite); one with elements of Mars (from the Jiddat al harasis 479 meteorite, which is more than 180 million years old); a third with elements of the Rosetta Stone meteorite (the Sahara 99555 which is estimated to be 4.6 billion years old); and the fourth – the Tourbillon Moon – has a dial crafted from fragments of an authentic piece of the moon (from the Dhofar 459 meteorite, which originates from a part of the moon not explored by the Apollo missions).

2. PATEK PHILLIPE, CALIBRE 89, USD 6 MILLION

The Patek Phillipe Calibre 89 is so termed as it was created in 1989 to celebrate the Swiss watch manufacturer’s 150th anniversary. When it was conceived, the timepiece was the most complicated in existence, taking five years to research and four years to engineer. Its 1,728 components even include a thermometer and a star chart, hosts 24 hands and is made from 18-carat gold or platinum. It also includes two dials, eight disks, 61 bridges, 129 jewels, 184 wheels, 332 screws, 415 pins and 429 mechanical components. Buyers were very happy with the exclusivity of this piece, as only four were made (one each in white gold, yellow gold, rose gold and platinum) plus a prototype that’s displayed in the Patek Philippe museum.

1. CHOPARD, 201 CARATS, $25 MILLION

Anyone with a spare USD 25 million might want to consider this 201-carat piece by Chopard. Embellished with a 15-carat, heart-shaped pink diamond, one heart-shaped 12-carat blue diamond and an 11-carat heart-shaped white diamond, the timepiece also comprised white and yellow gold and 163 carats of small diamonds set in an encrusted bracelet. This exclusive piece features a spring-loaded mechanism that allows the three heart-shaped diamonds to open up like a flower in the sunshine.

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TRAVEL CORNER

Known for its pristine beaches, turquoise waters and exotic wildlife, the Caribbean has long been a popular destination for sunseekers and honeymooners. Nonetheless, with more than 700 islands, this beautiful tropical region offers far more diversity than one might think, and there are plenty of off-the-beaten-track places to visit for those who would rather stray away from some of the more touristic areas. Many Caribbean island countries and territories, such as Aruba, the U.S. Virgin Islands, St. Martin and Turks and Caicos, receive hundreds of thousands of visitors per year. The growth of the package holiday market has seen resorts spring up all over the place, but that's not to say that there are no longer any unspoiled wonders to explore. Here are five of the best for those looking for a little piece of paradise:

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1. CURAÇAO An autonomous island country only 40 miles north of mainland Venezuela, Curaçao is a Dutch overseas territory known for its unique culture and its tropical savannah climate. It's also well out of the hurricane zone, so the weather is reliable throughout the year. Its capital, Willemstad, sports almost 400 years of history and 17th and 18th-century architecture echoing that of Amsterdam and other Dutch cities. Almost all of the population of 150,000 live in the capital city, which covers about a third of the tiny island. However, the authentic charm of the place makes it the perfect choice for culture junkies and tourist traps are few and far between. Visitors will find the best beaches along the calm southwestern coast, where you'll find plenty of opportunity for snorkelling, dolphin-watching and other activities. 2. NEVIS Nevis is the smaller of the two islands that make up the former British colony of St. Kitts and Nevis in the Leeward Islands. Owing to its tiny size and population of only 12,000, there's no large airport on the island, but this also means it's far away from the main package holiday route. To get there, you'll likely need to fly from Puerto Rico on a very small plane to reach the island's single airstrip.

5 secluded Caribbean destinations for adventurous sunseekers

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The island prides itself on being one of the quietest and most unspoiled regions of the Caribbean, making it an ideal destination for honeymooners in particular. Its capital, Charlestown, sports many 18th and 19th-century Georgian colonial buildings, most of which have been perfectly preserved. None of the beaches on the island are ever crowded, and you'll sometimes even have a whole beach to yourself! 3. ANGUILLA Anguilla is a British Overseas Territory also in the Leeward Islands. You'll need to get a connecting flight through nearby St. Maarten or Puerto Rico, since the local airport cannot accept large planes. Alternatively, Anguilla is best explored by boat, and there are regular public ferries between the island and St. Maarten. There are also several other smaller islets and cays, all of which are uninhabited. Among the main attractions are the many limestone caves and coral reefs, making it an ideal destination for snorkelling and diving. Shoal Bay is the favourite destination, which sports a beautiful beach and a reef of its own. Most of the entertainment venues are found at Sandy Ground, although the island also has its cultural attractions such as the stunning Wallblake plantation house and museum. 4. DOMINICA First discovered by Christopher Columbus more than 500 years ago, the small island nation of Dominica has a storied history combining the local Caribbean culture and its past as a British and, previously, a French colony. Much of the island is wild, characterized by verdant forests and volcanoes. It's also far from the mass tourism route, due to it having relatively few sandy beaches and no

long-distance flights. Often dubbed one of the least spoiled natural wonders of the Caribbean, Dominica nonetheless has plenty to offer for adventurous visitors. The capital Roseau sports an eclectic mix of French and British colonial architectural styles, but the main highlights of the island are undoubtedly in the interior, which is home to three major nature reserves and many exotic hiking trails. 5. MONTSERRAT The British Overseas Territory has the dubious distinction of being the only country in the world with a ruined ghost town as its official capital. Plymouth, formerly home to some 4,000, was evacuated in 1995 before being completely obliterated by the devastating eruption of the Soufriere Hills volcano. Today, over half of the island remains in the ‘exclusion zone’ with dozens of abandoned villages. Once a popular holiday destination, Monserrat is now slowly being repopulated, and it's possible to get a plane or boat from nearby Antigua. While it might not sound like the most inspiring Caribbean destination, the island is actually blessed with natural beauty, and you're likely to have an entire beach to yourself. Unsurprisingly, the main sight is the volcano, which you can observe from Jack Boy Hill. With centuries of history, hundreds of islands and dozens of small countries to choose from, there's certainly much more to the Caribbean than sandy beaches and resorts. The above presents just a few of the many options for those seeking to get away from the crowds while still being able to enjoy the proverbial tropical paradise.

Oman to invest through energy downturn

Bucking global hydrocarbons trends, Oman is moving ahead with substantial investment across its upstream and downstream oil and gas industry.

In early February state-owned Petroleum Development Oman (PDO) announced plans to channel some $10bn into three major onshore projects over the next five to 10 years in a two-fold bid to expand operational capacity and output - Oxford Business Group Read More >>

New hydrocarbon opportunities under exploration in Block 53 in Oman

Occidental Oman (Oxy), the Sultanate's largest independent oil and gas producer, says it has embarked on an effort to unearth new hydrocarbon opportunities within its Block 53 license in southcentral Oman. Block 53 holds the Mukhaizna field where Oxy and its partners have invested in the development of one of the world's largest steamflood projects to produce heavy oil from its sandstone reservoirs - Oman Daily Observer Read More >>

MDO unveils ambitious investment strategy

Minerals Development Oman (MDO), a new holding company set up earlier this year with a share capital of RO 100 million, has plans to invest in, among other things, large-scale commercial mining and downstream processing schemes, as well as transport and logistics infrastructure to underpin the growth of this promising sector.

According to a key official of the public sector entity, MDO will serve as the executive arm of the Public Authority for Mining (PAM), set up in 2014 as the regulator and policy-maker for Oman's mining and minerals industry.

Eng Ibrahim al Amri, Project Manager, said MDO will complement PAM in driving the growth of the minerals industry through investments and activities designed to create employment opportunities and enhance the sector's contribution to the Gross Domestic Product (GDP), albeit in a commercially-driven manner - Oman Daily Observer Read More >>

Omran opens Bazaar Al Mina project for investment

To provide viable business opportunities for innovative Omani projects, Oman Tourism Development Company (Omran) has called for applications from small and medium businesses interested to establish retail outlets at the 'Bazaar Al Mina', a modern business incubator in the upcoming Mina Sultan Qaboos Waterfront Development. Bazaar Al Mina will include permanent retails spaces and a weekly day and night weekend pop up food market with "street food". An array of street food served in an authentic market environment with over 40 vendors housed in the Bazaar Al Mina building a society of makers.

Fahad Al Hinai, Senior Development Manager at Oman comments "Although Design in Oman is relatively a young industry; it has witnessed an accelerated growth over the past few years. Our vision is to create platforms or conduits to make the design industry feel cohesive. That vision carries through to this space. We want to bring people together and make them feel supported through the process of what we see as an elevation to the next level of commercial viability."- Oman Daily Observer Read More >>

Tenders soon for Khazaen logistics hub in Oman

Oman Logistics Company (OLCo), the wholly Omani government-owned entity tasked with developing the Sultanate's first integrated logistics hub in South Al Batinah Governorate, is preparing to float a number of tenders that will accelerate the implementation of this ambitious initiative. The company's acting CEO, Ahmed bin Said al Azkawi, said the tenders include contracts for the construction of roads, utilities and service facilities covering Block 1 of the sprawling 95-sq kilometre site. In parallel, the company has also invited Expressions of Interest and partnership proposals from investors towards the development of, among other things, warehouses, hotels, corporate headquarters, and other commercial and residential components- Oman Daily Observer Read More >>

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Gulf universities to adopt uniform admission process

In an effort to further simplify procedures and bring about 100 percent literacy, universities and centers of higher education in the GCC countries have decided to have a uniform admission process.

A decision in this regard was taken during an extraordinary meeting of the committee on deans of admission and registration at the GCC Secretariat in Riyadh.

According to statement by the GCC Secretariat, such an arrangement is being made in line with the vision of Custodian of the Two Holy Mosques King Salman, who is keen on providing equal opportunities to the GCC students who wish to enter universities and seats of higher education in the region - Arab News Read More >>

Warning over VAT impact on GCC-owned firms

GCC-owned companies may particularly be affected by value added tax (VAT), expected to be in place by 2018, and timeliness of refunds will be a key issue businesses look at in evaluating the effect of VAT, according to Ernst and Young (EY).

"GCC-owned companies may be particularly affected by VAT, as many will be required to account for tax for the first time," Paul Karamanoukian, tax partner, EY Qatar, said.

Policymakers also faces challenges, not least the need to establish an effective VAT administration and to balance this against addressing business concerns, according to him - Gulf Times Read More >>

Low oil prices could be an impetus for GCC reforms: Expert

Low oil prices could be an impetus for change and reforms across the hydrocarbon-based economies of the GCC region. As there is immense pressure on state revenues due to lower oil prices, this is clearly a time to push for change in the GCC countries, an expert from

Indosuez Wealth Management said.

Lower oil revenues have changed the fiscal landscape in the region, and highlighted yet again the perils of over-dependence on one export commodity. There is a greater urgency for regional economies to embark upon wider diversification and potentially lift the non-oil growth rate, said Dr Marie Owens Thomsen, Chief Economist, Indosuez Wealth Management - The Peninsula Read More >>

Governance: A Necessity for the Family in Business

Family businesses play a key role in elevating the economies of the countries they operate in. In the GCC, the private sector is dominated by family owned businesses, which make up more than 75% of the GCC private sector companies.

In order to ensure stability, one must take a long term view. The key to having a stable family-owned business is to ensure that it is managed in a way that allows it to grow, prosper and avoid paralysis. Attaining this objective is no easy road and this is where the value of governance comes into play.

Governance is essential process through which family businesses can set and implement rules governing and regulating different aspects of the business. It is a practice that covers a wide scope that could range from regulating the employment of family members to the setup of board committees to developing a balanced and coherent investment strategy - Al Tamimi & Co. Read More >>

Financial crimes affect 26% of Mideast firms

Financial crimes continue to affect a growing number of companies in the Middle East, according to a new report.A recent study by PwC showed that economic crimes were reported in 26 per cent of respondents in the Middle East in the past 24 months. Although the number of Middle East companies affected is lower than the global average, it went up by 5 per cent from 2014. Besides, the number of organisations in the region who simply didn’t know if they had been a victim (20 per cent) is much higher than the global average (11 per cent) - Gulf News Read More >>

GCC

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