Issue 31. Vol 1August, 2017

Our Message Executive Summary Market Update Trade LNG Omanisation Exclusive Interview Feature Story

Travel Corner News

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EXECUTIVE SUMMARY

Oman taps Chinese market

Chinese banks’ are showing remarkable appetite for Omani debt, attracted by the economy’s fiscal strength and stable debt profile.

Chinese financial institutions have extended a OMR 1.36 billion five-year loan to the Omani government, according to the Sultanate’s Ministry of Finance.

The senior unsecured loan comes hot on the heels of Oman’s OMR 1.9 billion triple-tranche bond and OMR 768 million sukuk earlier this year.

“The transaction witnessed strong interest from a group of leading Chinese banks with the transaction upsized from the initial target of USD 2 billion to accommodate interest from the lenders,” the ministry said in a statement.

H.E. Nasser Khamis Al Jashmi, undersecretary at the Ministry of Finance, said the loan will help the government complete its financing requirements for the expected 2017 fiscal deficit. In addition, the fund will “meet the refinancing needs in relation to some of the loan instalments that fell due during the year”.

The OMR 1.36 -billion loan was the largest ever achieved for a regional borrower exclusively by Chinese institutions. It is also considered a milestone, as it was the first time in the Middle East that only Chinese institutions were invited to participate in a loan deal.

The move will also help Oman diversify its debt position, which is currently dominated by Western financial institutions, and bring in a new pool of creditors in the mix. The financing agreement comes as Moody’s Investors Service downgraded Oman’s credit rating.

However, Fitch Ratings noted that Oman's sovereign net foreign asset position will continue to exceed that of its peers, underpinned by the OMR 6.92 billion in foreign assets held by the State General Reserve Fund of Oman (SGRF) as at end-2016, which is not included in the Central Bank of Oman’s reserves.

“This buffer supports Oman's market access and the stability of the exchange rate peg,” Fitch added.

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MARKET UPDATE

GCC stocks mixed as oil fails to provide catalyst

Regional markets were mixed in July as they track the economies’ lacklustre performance. The benchmark S&P GCC Index dipped 0.4% during the month, even as the wider world is in the midst of a strong rally.

The MSCI World rose 2.3%, while the MSCI Emerging surged 5.5% during the period as investors plowed funds in emerging markets. The MSCI Frontier Market Index was up 1.9%.

But regional markets are still weighed down by the prospect of modest economic growth and a slow improvement in crude oil prices, which has compelled investors to sit on the sidelines.

DUBAI AND SAUDI

Dubai and Saudi Arabia, two of the

region’s most liquid markets, went in opposite directions in July. Dubai jumped 7.1% during the month, erasing its losses for the year, to end the first seven months with gains of 2.9%.

Most of the gains were witnessed in medium to smaller sized companies as investors hunted for bargains in the market. The buzz surrounding World Expo 2020 contracts also encouraged investors to position themselves, as did improved consumer and investor sentiment as evident in the latest PMI data.

"The (Dubai) market has gained almost 400 points – up 12% – from the 3,265 bottom in just eight weeks and is poised to target its yearly high of 3,738 in the coming weeks," according to a Reuters report.

Abu Dhabi also gained 3.2% in July, as crude oil prices showed signs of improvement.

Meanwhile, Saudi Arabia was the region’s laggard, falling 4.5% during the month, and ending up in the red by the end of the first seven months of the year.

The total value of shares traded in July reached SAR 60.51 billion (OMR 6.21 billion), increasing by 10.57% over the previous month, while the total number of shares traded hit 2.91 billion, slightly above the 2.90 billion shares traded in June.

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Tadawul data shows Saudi investors bought more than they sold during the month, but GCC investors and foreign investors were net sellers.

“The decline in the Saudi Tadawul index comes as optimism following MSCI’s decision to put the stock market on its ‘watch list’ for inclusion in the MSCI EM Index has faded,” according to Capital Economics.

OTHER MARKETS

The Qatari bourse also jumped in July, rising 4.4% and reversing four months of consecutive losses.

“While the Qatari riyal fell a little on the spot market when the crisis erupted, it has now returned to the level of the dollar peg, at 3.64/USD,” Capital Economics said.

“Our own measure of financial conditions in Qatar suggests that conditions tightened initially after the crisis erupted – although to nowhere near the same extent that they did in 2008 – and have now started to ease.”

Kuwait and Bahrain were also in positive territory during the month, rising 1.3% and 1.4%, respectively. Meanwhile, Oman declined 1.8%, its fifth consecutive monthly loss, and is down 13.1% for the year.

Data from the Muscat Securities Market (MSM) shows the industrial index fell the most, losing 4.57%, while service index (-3.77%) and financial index (-19.2%) were all in the red.

The value of shares bought by non-Omani investors reached OMR 15 million, accounting for 26.34% of the total. However, the total value of shares sold by non-Omanis investors reached

OMR 18 million, or 31.15% of the total.

“The net foreign investment on the market decreased by OMR 2.8 million or by 4.8%,” MSM said in its monthly report.

In the future, regional investors are hoping that the GCC economy picks up and crude oil prices remain sustainably high so that governments can inject funds into the economy.

AT LAST, AN OIL RALLY

A bright spot for regional markets was the improved commodity price environment. Brent crude prices rose nearly 10% in July, as production cuts orchestrated by the Organisation of the Petroleum Exporting Countries (OPEC) and its allies, such as Oman, started to drain inventories.

The S&P GSCI Energy Total Return gained 8.1% in July, led by petroleum that was up 9.2%.

“Another key factor in the oil price rebound is US production may be starting to slow as companies reach drilling capacity and fear the risk of another drop in oil prices,” according to S&P Global. “This may happen just as Saudi Arabia cuts oil exports to the US, potentially accelerating the inventory reduction.”

A surge in crude oil prices going forward will be the catalyst needed for Gulf markets to join the rest of the world in a spirited equity rally.

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TRADE

Improving trade flows point to Oman’s hub potential

Oman’s trade flows have shown significant improvement in the first quarter of 2017, compared to the same period last year, on the back of rising crude oil revenues – but also, encouragingly, non-oil exports. Total merchandise exports jumped 10.3% in the first three months of this year to OMR 2.85 billion.

Commodity exports were the biggest gainers during the period, boosted by higher crude oil prices. This is a significant improvement from the first quarter of 2016 when oil prices had hit a low of around USD 29.78 per barrel.

Refined oil exports saw the biggest jump of 134.5%, while crude oil surged 30.6%. Total oil and gas exports rose 28.4% to reach OMR 1.73 billion in the first quarter.

The non-oil sector also enjoyed strong growth, soaring by 14%, with chemical exports up by a hefty 77% and base metals exports recording an increase of nearly 44%, according to the latest available data from the National Centre for Statistics and Information (NCSI).

Merchandise imports climbed 14.3% during the period, led by a 121% gain in transport equipment, which was fuelled by strong activity in the infrastructure sector. Electrical machinery and mechanical equipment imports were also buoyant at 20.6% higher than in Q1 2016.

However, Oman’s trade balance narrowed in 2016 to its lowest level in at least 11 years. Trade balance stood at OMR 1.38 billion during the year, compared to OMR 2.26 billion in 2015, and a record OMR 9.2 billion in 2012 during the heady days of oil at USD 100 per barrel.

Oman’s international trade, especially exports, continued to be dominated by hydrocarbon with oil alone representing 48.4% of the total exports. Together, oil and gas account for 57.9% of the Sultanate’s overall exports, according to the Central Bank of Oman (CBO).

“This signifies the critical dependence of Oman’s economy on hydrocarbon exports, even though the share of oil and natural gas exports in total exports has come down in the last few years,” the bank said.

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The improved first quarter figures come after years of weak trade growth, as low crude prices subdued import appetite and dampened exports. Oman’s non-oil exports slipped to OMR 2.4 billion last year, from its all-time peak of OMR 4.1 billion in 2014, CBO added.

MIDDLE EAST TRADE

Oman’s non-oil exports scene was dominated by Middle East states, led by the UAE and Saudi Arabia, which were the largest destinations for non-hydrocarbon exports, according to official data. UAE received OMR 165.5 million worth of exports in the first three months of 2017, but this was a 26% drop from the previous year.

Exports to Saudi Arabia saw a 30% jump during the period. The kingdom has been a steady export destination for non-oil Omani exports, averaging around 11% of all exports from the Sultanate over the past three years. Last year, the kingdom accounted for 10.6% of all Omani non-oil exports, second only to the UAE.

India and China were the next two major export markets for Oman, and both registered solid growth of 28% and 69.7%, respectively. In terms of percentage, Kuwait led the pack with growth surging 310%. As a result, Kuwait became Oman’s fourth largest export destination with OMR 43.9 million of export revenue between January and March this year.

However, Omani non-oil exports (including re-exports)

to GCC states contracted by 59.2% in 2016 over the previous year, reflecting the oil price-led slowdown that has gripped the entire GCC region.

“On the other hand, Oman’s imports from GCC countries declined by just 5.4% during the same period, which exhibits that Omani imports from GCC region constitute the core component and hence, not very elastic,” CBO said.

Qatar and Iraq have also traditionally been among the top 10 non-oil export destinations for Oman over the past three years.

Middle East states dominate Oman’s re-export markets. The UAE, Iran and Saudi Arabia were the country’s top three re-export destinations, with Yemen, Iraq and Libya also among the Top 10 last year.

OMANI IMPORTS

The UAE is still the biggest exporter to the Omani market, accounting for around OMR 1 billion of total imports in the first quarter, a 4.8% decline over the previous period. No other Middle East state was in the top five, as the United States, China, India and Brazil made up the top five biggest importers to Oman.

The UAE has been the number one exporter to the Omani market over the past few years, steadily increasing its market share to 48.8% last year, compared to 32.5% in 2014. Japan lost its position as the second largest exporter to the Sultanate, relinquishing the title in 2016 to China, which now accounts for 5.1% of the market.

Japan currently represents a 4.5% share of the importers’ pie, while India has increased its stake to 5%, in a sign that the Sultanate’s ties with fast-growing Asian economies is improving.

Among the Middle East states, Saudi Arabia has been a steady exporter to the Sultanate and will continue to remain a provider of goods as the kingdom’s economy expands.

The surge in trade flows in the first quarter, especially in the non-oil sector, bodes well for Oman, which is looking to raise its profile as a regional trading hub. To realise this, the government is investing in upgrading the country’s airports, seaports and other transport infrastructure to leverage its geographic advantage.

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LNG

The global liquefied natural gas (LNG) market has undergone a massive transformation over the past decade. As demand increases, LNG found its place in the global energy mix, even quadrupling its size and doubling its share of the international gas market.

LNG has truly come a long way from its humble beginnings, when Algeria shipped its first LNG export to Japan in the 1960s. Back then, it was a novel technology, which involved cooling natural gas to reduce its volume by about 600 times, and exporting it on ships across the world in a cost-efficient manner.

Getting a head start back in the 1990s, Qatar has emerged as the world’s largest LNG exporter, but its position was challenged by Australia, which has built massive capacity over the past decade. Other entrants, such as Russia, the United States, Malaysia and Nigeria, are also raising their export capacity.

The 140 million tonnes per annum (mtpa) liquefaction capacity under construction, along with a number of potential but yet-to-be-sanctioned projects, would satisfy global growth expectations through 2035, according to the International Energy Agency (IEA). New projects in North America, Australia, Africa, the Middle East and Russia are helping to boost the share of LNG in inter-regional gas trade from 42% today, to 53% by 2040.

SHIFTING DYNAMICS

With the emergence of several players, the industry has become a buyers’ market. This development posed a challenge to LNG-producing countries.

In the early years, producers had stability, as they were able to secure long-term contracts with eager customers, at favourable prices. Today, however, it is the buyers who find themselves in a strong bargaining position, since they can negotiate better contracts and utilise spot-price shipments, which are considerably lower.

“East Asia has usually been the highest priced market with the strongest link to oil prices; Europe has been in the middle, with oil price indexation tempered by the effect of competition with Norwegian and Russian pipeline gas supplies; and North America has been the lowest priced market, with intense gas-on-gas competition usually driving gas prices down at liquid and transparent trading points, such as the Henry Hub,” according to Deloitte.

Shift in world energy targets raises LNG prospects

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Lower LNG prices have become a major constraint for producers seeking to develop their natural gas resources and are reluctant to pour billions of dollars into projects without locking in customers for the long term. Spot prices for Asian LNG for September were at OMR 2.21 per million British thermal units (mmBtu), compared to OMR 6.92 per mmBtu a few years ago.

The IEA does not expect global LNG market to rebalance until the mid-2020s, a consideration that curbs profitable export opportunities, but LNG is still seen as a relatively cheap and widely available fuel source for consuming countries.

OMAN CAPITALISES ON LNG

Oman is also monetising its natural gas resources and already boasts a foothold in the market, thanks to long-term contracts with a number of Asian buyers.

Oman LNG LLC, which operates three liquefaction trains with a capacity of 10.4 mtpa of LNG at Qalhat and Sur, already has long-term contracts to feed 4.1 mtpa to Korea Gas Corporation (KOGAS), 0.7 mtpa to Osaka Gas of Japan, and another 0.7 mtpa to Itochu Corporation, also in Japan.

Despite these favourable contracts, the Omani company has not been immune from the downturn sweeping the global LNG, and wider commodity, sector. As a result, its revenues reached OMR 731 million last year, compared to OMR 1.65 billion in 2012, primarily due to plummeting prices.

In May this year, Oman LNG awarded US engineering group KBR Inc. a front-end engineering design (FEED)

and project management services contract to modernise its Qalhat facility.

The Sultanate is also boosting its natural gas production with the launch of the Khazzan field in early September, according to the Oman News Agency. The first train has a capacity of 500 million cubic feet per day of gas, while the second train, which has a similar capacity, will be on line in early 2018.

Operated by British energy giant BP Plc, which also has a 60% stake in the project, the Khazzan field is located on a previously undeveloped desert site, 350 kilometres south of Muscat. Work on the tight gas project began in 2014 and the completed development will eventually contribute roughly to a third of Oman’s natural gas supply, according to Oman LNG. The remaining 40% share is currently held by Oman Oil Company Exploration & Production.

Oman is also keen to develop energy ties with Iran via a planned undersea gas export pipeline, which would connect the Islamic republic’s vast gas reserves with Omani consumers, as well as Omani LNG plants. The Sultanate can then re-export the gas.

In 2013, the two countries signed an agreement to supply gas to Oman through the new pipeline in a deal valued at OMR 23 billion over 25 years.

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OMANISATION

Oman continues to boost national workforce

The Sultanate has made significant strides in raising Omanisation rates across the country, but more work still needs to be done.

“The number of Omanis employed in the private sector is rising steadily and has indeed exceeded that of in the public sector in recent years,” according to the Central Bank of Oman (CBO).

Employment of Omanis in the private sector grew 9% in 2016, topping the 8.1% growth in 2015. However, employment of expatriates in the private sector also increased by 9.3%.

The number of Omani workers in the public sector stood at just under 230,000 in 2015, compared to around 194,000 in 2012. However, the percentage of Omani workers in the public sector slipped to 84.5% in 2015

from 85.84% in 2012.

Within the public sector, the percentage and numbers of Omanis grew in the Diwan of Royal Court to 65% in 2015 versus 63.7% in 2012. Omanis also accounted for 83.6% of the workforce in The Royal Court Affairs department.

The biggest jump was seen in public sector corporations where Omanisation has increased to 82% in 2015, from 78.9% in 2012, with more than 15,600 Omani employees.

But latest available data also points to an expanding number of Omanis joining the private sector workforce. In 2016, more than 223,000 Omanis were employed by the private sector, from 172,000 in 2012. However, the overall make up of Omanis in the workforce slipped to 11.36% from 11.56% in 2012.

“As the demand for labour exceeded supply in the domestic market, a large part of the demand was met from the external labour market,” the CBO said in its annual report. “This could be observed from sharp increase in expatriate employment in Oman, particularly in the private sector during the period 2009 to 2013 and subsequently in 2015 as well as in 2016.”

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CHALLENGES

In the future, the government would have to tackle two key challenges: replacing expatriate workers with equally qualified and skilled national workers, and creating new jobs for the Omani population, ideally in high-end private sector jobs that are aligned with the government’s effort to diversify the economy.

The government is also enforcing new rules to ensure the private sector develops local talent, especially in areas, such as engineering, education, healthcare and finance.In February, Ali Al Sunaidi, minister of commerce and industry, told companies that 35% of their workforce must be Omanis or they will lose their benefits.

“I understand that with jobs that Omanis cannot do, then there is a justification for expatriates to do them. However, there are many Omanis who are well qualified to do them but the private sector doesn’t do enough to replace the expatriates with the positions,” Al Sunaidi told a business audience.

“We at the Ministry of Commerce and Industry will not continue to support or provide incentives to companies that don’t help the government’s drive to comply with the Omanisation process.”

Engineering is a key sector where Omanis can replace expatriates. More than 53,000 Omanis are employed in the field compared to around 855,000 expatriates, data from the National Centre for Statistics and Information (NCSI) show.

The construction sector also boasts 655,000 expatriate

workers, compared to 56,000 Omani nationals. Another area ripe for Omani workers is the service industry, which boasts around 490,000 expatriate employees, compared to 43,000 Omanis.

Wholesale, retail trade sector is also a major employer of expatriate workforce with a quarter of a million people employed, as opposed to around 38,000 Omanis.

Other areas dominated by expatriates are manufacturing, which has 224,400 workers, compared to 26,000 Omanis. More than 137,500 foreign workers are also employed by industrial, chemical and food industries, compared to a 14,000-strong national workforce.

To address the disparity, the Omani government has created programmes and incentives to match Omani nationals with private sector jobs. These include developing sectors, such as renewable energy, high-tech services, and Islamic banking, while building on mature industries, like manufacturing and tourism.

Public sector companies are also making efforts to award contracts to local companies, particularly those that have a high proportion of local workforce. Combined, these efforts should start bearing fruit and improving the outlook for unemployed Omanis.

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Oman Oil Company was already on its way to becoming a more cohesive and centralised organisation when oil prices started to decline. Like many businesses worldwide, it had not been immune to impact of a “new normal” era of low oil prices.

As many oil companies across the world felt the brunt of shrinking revenues, Isam Al Zadjali, CEO of Oman Oil Company, said the company had to take an approach that ensures consolidation and restructuring in order to weather the challenges that came along with the oil price drop. Adopting this strategy has allowed the state-owned firm to reduce costs, change company culture, and become more independent, especially during a challenging period in its history.

WHAT WERE THE BIGGEST CHALLENGES FOR OMAN OIL COMPANY THIS YEAR? The most significant challenge that we have faced this year and the year

before is the drop in oil prices. This is true not just for us but for the entire country. However, challenges sometimes lead to opportunities and we have turned this economic slump to our advantage by taking the ‘think out of the box’ approach. We have focused on cost reduction, optimisation and streamlining the organisation’s activities. This will reap benefits in the long run and create a culture of efficient practices.

Restructuring is another major task that we have been faced with since the start of the process in January 2016, and when employees are given new roles and assignments, it sometimes brings a slight period of fluctuation.

The restructuring is a part of our strategy to improve work environment efficiency. If we didn’t, reorganise, the low oil price ordeal would have proved to be a much bigger challenge. Oman Oil Company has now shifted its operations philosophy approach to a more cohesive sort, in contrast with a decentralised one in the past. We are now a group of companies integrated as one, and this allows the board and the CEO to oversee the organisation as a single unit rather than multiple fragmented assets.

Our plan to restructure was on the table regardless of the current situation, but we are now in a good position to deal with low oil prices since we are better prepared. I guess it was good timing to enforce the restructure.

WHAT CHANGES/IMPROVEMENTS HAVE BEEN MADE?

The entire organisation has seen a change in culture. We are now less dependent on government equity, which bodes well for us as well as the government. I am proud to say that this is a major improvement, and I think this is how it should be for any company, to be financially independent. This is one of our key achievements in the long term plan of self sustainability. We have also reached out for more strategic partnerships as we are selective in terms of who we deal with.

SIMILARLY, WHAT WERE THE OPPORTUNITIES THAT OPENED UP FOR OMAN OIL COMPANY THIS YEAR?

Due to our strategic consolidation plan, we view our projects with a holistic approach, instead of a segmented one. This gives us a lot of opportunities and benefits that were previously overlooked. For example, our assets and operations encompass upstream, midstream and downstream functions, allowing us to view the entire hydrocarbon value chain and make better decisions to help the company and the country as a whole.

EXCLUSIVE INTERVIEW

Oman Oil Company CEO Isam Al Zadjali: Consolidation puts Oman Oil Company in better position after oil price drop

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WHAT CAN WE EXPECT FROM YOUR COMPANY IN THE NEAR FUTURE? More consolidation. It is the simply the way out. We are not the first ones to go through tough times and then emerge stronger than ever. However, the technique is to do this quickly, and in a pragmatic manner.

Consolidation for the sake of it doesn’t bring any tangible benefits to the company. We want to consolidate, restructure and integrate to create better value for the nation, and that remains our primary objective. We need to be stronger, self-sufficient and create opportunities for the nation, whether in employment, projects or manufacturing.

This needs to be looked into the point of creating value- what we call in the oil and gas field as optimising the molecule, be it oil or gas. We have to push ourselves to export less and create value added products using the raw materials inside Oman.

WHAT LESSONS HAVE YOU LEARNED IN LIFE? You need to surround yourself with good people. I strongly believe that it doesn’t matter how good or smart you are, as without your team, you are a one-man show, and that eventually will collapse. So I like to be around people I trust. This is a lesson that I have tried to keep all my career.

The rest is being yourself. No one wants to deal with an arrogant leader. You are here today and gone tomorrow, and CEO’s are more expendable than any employee. At the end of the day, you just do the best you can.

WHERE DO YOU SEE THE COMPANY IN 2017 COMPARED WITH 2016?

We are rated by the revenue generated through our investments and ventures. We have grown in 2016, further evolving in 2017, and need to continue this trajectory to enhance revenue generation.

Our ultimate objective is to reach a point of 100% self sufficiency, and we are underway to reaching our goal, and are are mostly self reliant at this stage. However, occasionally we do ask for government

support, not monetary, but in guarantees. We are a state owned firm so sometimes that is a pre requisite to move forward. Oman Oil Company is driving towards becoming bigger and better with its available resources, but we hope to successfully implement integration and consolidation during this time.

WHAT WAS THE MOST CHALLENGING MOMENT IN YOUR CAREER? Taking this job was a turning point in my career. I had to leave everything including the career I built with my previous employer in the United States. It was unplanned but I am very happy and proud to be here.

WHAT WAS THE BIGGEST RISK YOU HAVE EVER TAKEN (BE IT INVESTMENT OR TRAVEL ADVENTURE)?

Accepting this position. Although I don’t see it as a risk, and I am honoured that I was selected. It took me a split of a second to accept it as homecoming is always sentimental. You don’t want to leave your country regardless of wherever you go. This job, however, was always going to be a challenge because of the fear of failing to succeed. Fear here is prudent as it prevents you from making blind decisions assuming that you will flourish.

The fear of failure is always lingering around, and it happens, but I counter that with a positive attitude and the push for the best I can do. This is a journey and throughout the ride you need to have the right attitude and good people around to be successful. You might even fail after that, surely, but you have to try not to.

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FEATURE STORY

Technologies for the ultimate home theatre experience

Gone are the days where the ‘TV room’ consisted of a sofa and a screen. New technology is invading our homes to provide audio-visual entertainment on a par with the best movie theatre experiences. Here is a look at the next big things in home theatre tech.

QUANTUM DOT TECHNOLOGY

Quantum dots (QD) are tiny semiconductor nano-crystals that enhance brightness and use less energy. They are basically a new type of light-emitting diode (LED)-backlit liquid crystal display (LCD) TV providing high dynamic range (HDR) displays with better contrast and colour accuracy for images. It’s still early days but the key players in this field – LG, Sony and Samsung – have all released quantum dot super-ultra-high-definition (SUHD) TVs over the past years and plan to develop the technology even further with new releases soon.

ORGANIC LED OR ‘OLED’ DISPLAYS

‘Organic’ refers to the carbon film that sits inside the TV panel before the glass screen. Unlike LCD displays, OLED screens do not require an external light source for brightness. They do, however, emit their own light when an electric current is passed through. This results in an image where blacks are darker and whites brighter, creating a more vivid picture of the highest quality. In addition, OLED panels are incredibly thin: just a few millimetres of depth. On the downside, they are also incredibly – sometimes prohibitively – expensive, but it’s still early days and mass production should help lower costs. Sony and Panasonic have recently joined LG, the leader in the field, in the production of OLED TVs. In the future, OLED displays will be transparent and even flexible or bendable. So watch this space!

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4K OR ULTRA-HIGH-DEFINITION (UHD) VIDEO

4K refers to a horizontal resolution in the order of 3840 (or 4096) pixels and vertical resolution in the order of 2160 pixels. Basically, those screens offer about four times the standard of ‘high-definition’ we have grown used to: 1080p. UHD is therefore a truly futuristic technology that can really bring a real cinema experience to your home. It has started to gain ground recently among the Netflixes and Amazon Videos of this world since they have started to produce some of their series or films in the 4K high-dynamic range. The downside: a genuine 4K experience includes a 4K Blu-ray player, 4K Blu-ray discs and a 4K TV – so the full kit. The top players in the field are Oppo, Panasonic, Samsung and LG. Noteworthy information for potential buyers: the Xbox One S and PlayStation 4 Pro are both capable of playing 4K Blu-ray discs.

SURROUND-SOUND SYSTEMS AND SOUND BARS

Image isn’t everything when it comes to home entertainment. For an experience as realistic and engaging as possible, sound of the greatest quality is key. A good surround-sound speaker system will offer an immersive experience and the good news is that it does not have to be too costly – a full range of solutions exist at decent prices other than the eye-wateringly expensive Goldmund Epilogue Signature Audio System, which will set you back…USD 1 million (OMR 385,000)! The one

thing to consider is space. A full home cinema system may include up to five or more speakers of various sizes, plus a subwoofer. This implies many cables unless you prefer the wireless option. Those with less room may want to opt for a sound bar, which typically consists of only two units, a speaker that sits in front of the TV (or a sound base below the TV) and a subwoofer. There again, Bluetooth options also exist.

HOME PROJECTORS

When size really matters and big-screen TVs aren’t large enough, a projector may be an option. While TV screens these days can be as big as 80 inches, a projector can be as large as 120 inches. The downside is that the colours in the picture can often look washed out and lack brightness and contrast. They simply cannot beat the most recent TVs for image quality, let alone 4K UHD displays. Installing a home projector properly also involves more preparation and thinking than putting a standard TV screen in a room.

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TRAVEL CORNER

RAK’s Al Wadi Desert beckons tranquillity

A desert landscape does not typically exude luxury. But in a remote area of Ras Al Khaimah – an emirate in the northern most region of the UAE – sits a five-star Bedouin-inspired luxury resort.

At Al Wadi Desert, Ras Al Khaimah, a Ritz Carlton partner hotel, visitors are treated to an endless view of soft sand. The resort is built into the desert landscape. Authentic to the region, its Arabian-inspired architecture blends well with the glistening sand and flora.

Situated between the Al Hajar Mountains on one side and the Arabian Gulf on the other, Ras Al Khaimah’s Al Wadi Desert is a sanctuary that provides luxury, adventure and everything in between.

It has both local and international travellers mesmerised, as the resort is located within a nature reserve stretching 500 hectares. A total of 101 Bedouin-inspired villas welcome guests who are keen to escape the hustle and bustle of city life.

If you’re looking for the ultimate pampering experience, Al Wadi Desert’s luxury spa is just what you need.

For a truly pleasant stay, you can choose from one of four villas, each with its own private pool. Regardless of which villa you choose to book, all exude luxurious comfort, while also maintaining the architecture and designs authentic to desert life. For more privacy, you can opt for an enclosed villa.

ACTIVITY-FILLED GETAWAY

To make your stay a memorable experience, there are also plenty of activities waiting for you and your family at Al Wadi Desert.

The area’s untainted natural resource and relaxed atmosphere are therapeutic and can do wonders for your mind and soul. For a tailor-made itinerary, the resort’s “experience concierge” is on hand to create a customised activity plan during your visit.

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Choose from a selection of desert life and Bedouin culture experience, equestrian and camel rides, or nature and outdoor activities.

Explore the hotel’s nature reserve or take a walking tour through the surrounding villages. You can also try your hand at archery or fishing.

If you’re up for some adrenaline-pumping activity, dune bashing is a popular pastime. You can also soak up the area’s impressive landscape by hiking the Jebel Jais, the highest mountain in the UAE. End your hike with a view of the sunset over a wadi.

As a family-friendly resort, children can join the Ritz Rangers programme, which includes exploring the nature reserve and discovering Bedouin life. At the Kids Club, your little ones can interact with birds during a mini-falconry class. They can also learn the art of archery, or take a discovery walk with the resorts’ activity officers to understand the mysteries of the desert. As an added treat, kids can meet Ritz and Carlton, the resort’s resident owls.

Eat your way around the globe at one of Al Wadi Desert’s restaurants. Kaheel offers both Arabic and international cuisine in a breath-taking setting inspired by traditional Middle Eastern architecture and design. The Al Wadi Tower, which serves lunch and dinner, was built in a traditional Arabian watchtower. You can also enjoy dinner or tapas at the resort’s Moorish restaurant

or Moon Bar roof terrace.

Start the weekend right with a Friday brunch between the stables and the paddocks at the Al Wadi Equestrian and Adventure Centre. With a carving corner, a burritos station, a lavish seafood bar, organic breakfast station, and kiddie corner, there is something for the whole family to enjoy.

Whether you seek adventure or solace, Al Wadi Desert in Ras Al Khaimah can deliver an unforgettable experience with luxury beyond your expectations.

24

OMANNEWS

First wind farm project to electrify 16,000 homes

Abu Dhabi’s renewable energy company, Masdar, signed an Engineering, Procurement and Construction (EPC) contract with a global consortium comprising GE and Spain’s TSK to build the Dhofar Wind Power Project, the first large-scale wind farm in Oman and the GCC.

The Dhofar Wind Power Project is a result of the joint development agreement that was established in 2014 between Masdar and the Rural Areas Electricity Company of Oman (RAECO). Funding for the wind farm is provided by the Abu Dhabi Fund for Development (ADFD), a leading national entity supporting global socio-economic development initiatives - Oman Daily Observer Read More >>

Omantel acquires minority stake in Zain

Oman Telecommunications Company (Omantel), the first integrated telecommunications services provider in Oman, has announced a share purchase agreement (SPA) whereby Omantel will purchase 425.7 million of Mobile Telecommunication Company’s (Zain) treasury shares at a price of 0.60 Kuwaiti dinar ($1.99) per share.

Once complete, Omantel will own a minority stake of approximately 9.84 percent in Zain’s outstanding common shares. The total value of the transaction is $846.1 million. - Arab News Read More >>

Oman plans mandatory health insurance from next year

The stage is being set for the introduction of mandato-ry health insurance for private sector employees in the Sultanate.

According to sources, the scheme is in the final stages and will be implemented from January 2018.

“A directive to provide health insurance for both nationals and expatriates will be issued after necessary

approvals from the ministry,” said Rashid bin Amer al Musalhi, a member of Oman Chamber of Commerce and Industry (OCCI) and head of Services Committee. - Oman Daily Observer Read More >>

Oman inks $3.5b loan pact with Chinese institutions

Oman government has signed a $3.55 billion five-year loan agreement with a group of Chinese financial institutions, according to a press statement released by the Ministry of Finance.

The senior unsecured loan follows the Sultanate’s $5 billion multi-tranche bond and $2 billion sukuk priced earlier this year. “The transaction witnessed strong interest from the group of leading Chinese banks with the transaction upsized from the initial target of $2 billion to accommodate the interest from the lenders,” said the statement. - Oman Daily Observer Read More >>

Duqm's first large scale power project expected to be awarded early 2018

An engineering, procurement and construction (EPC) contract to build Duqm’s first large-scale natural gas-fired power-cum-water desalination project is expected to be awarded in the first quarter of 2018.

The new project, which will have a ‘contracted capacity’ to generate 183 megawatts (MW) of power, along with a 9.5 million imperial gallons of water per day-capacity desalination plant, is being developed by Marafiq—the Sultanate’s first centralised utilities provider catering initially to the industrial zones. - Times of OmanRead More >>

25

GCCInvestors in search of yields look at GCC bonds

Amid near-zero interest rates, investors in search of elusive yields are increasingly looking at bonds in the Gulf cooperation Council.

The US Federal Reserve gradually started to raise rates in the second half of 2016; however, other markets such as the UK, Eurozone and Japan continue to have abysmally low levels of bond yields, making higher yielding Gulf bonds attractive.

“This [low rate environment] has created a dearth of investment opportunities for bond investors. The desperation to invest in better yielding quality papers has wooed investors towards the emerging bond markets of the GCC,” M.R. Raghu, executive vice-president at Kuwait Financial Centre (Markaz), said. - Gulf News Read More >>

MENA healthcare project pipeline valued at $55.2bln

As much as $55.2bn worth of healthcare projects are in the pipeline in the Middle East and North Africa (MENA) region in 2017, with major new developments expected to be announced at the forthcoming Building Healthcare Innovation & Design Show.

According to the latest industry estimates, a total of 37 mega hospital projects are already underway in the Gulf region, worth about $28.2bn and are expected to add 22,500 hospital beds to existing capacity (Alpen Capital Healthcare Report). The rest of the year will be even more robust for the healthcare projects market, with major projects being undertaken throughout the region. - The Saudi Gazette Read More >>

Saudi conglomerate to launch first-ever Shariah-compliant spot gold contract in Mideast

The Dubai Gold & Commodities Exchange (DGCX) and Ayedh Dejem Group, a conglomerate from the Kingdom of Saudi Arabia, have agreed to develop and launch the Middle East’s first-ever Shariah-compliant Spot Gold

contract to be traded on an international exchange. The partnership enables both entities to increase their presence in the Saudi Arabian and wider GCC Islamic Finance market, and attract the interest of regional Islamic financial institutions and banks.

This development is reflective of the growing potential of the Saudi Arabian and wider GCC regions Sharia compliant gold markets. According to the World Gold Council, Saudi Arabia’s gold demand, stood between 60 and 85 tons. This is the highest in the Middle East and ranked sixth in the world; representing almost 30% of demand across the region. Sharia compliant gold investments are worth an estimated USD 2 trillion meaning the decision to launch this new contract is ideally timed. - The Saudi Gazette Read More >>

Saudi Arabia to restart work on $26.6bln Grand Mosque expansion

Saudi Binladin Group will restart work next month on the $26.6 billion expansion of the Grand Mosque in Mecca, nearly two years after work stopped in the wake of a crane collapse at the site that killed 107 people, sources told Reuters on Thursday.

Work will resume after the annual haj pilgrimage, and Saudi Binladin will pay outstanding salaries owed to staff involved in the project beginning on Aug. 20, according to a notice that the company sent to banks and which was seen by Reuters. - ReutersRead More >>

Abu Dhabi creates new legal structure for preserving family wealth

Abu Dhabi Global Market (ADGM) has announced the launch of a new legal structure to support wealth management and preservation between family generations.

ADGM, which is the international financial centre based in the United Arab Emirates' capital, said that its new 'Foundations' regime provides a new platform for financial planning and structuring of investments that will serve as an alternative either to trusts or corporate vehicles. - Zawya Read More >>

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