M E M O I R O F T H E B L AC K S WA N O N W W W. A M O UAG E . C O M

T H E G I F T O F K I N G S

EDITORIAL

Editor-in-ChiefHH Sayyid Tarik Bin Shabib

Group EditorMayank Singh

Assistant EditorVisvas Paul D Karra

Sub EditorMuhammed Nafie

DESIGN

Senior Art DirectorSandesh S. Rangnekar

Art DirectorMinaal G. Pednekar

Senior DesignerM. Balagopalan

Senior PhotographerRajesh Burman

PhotographersSathyadas C. NarayananMotasim Abdulla Al Balushi

Cover concept and paintingSandesh S. Rangnekar

Production ManagerGovindaraj Ramesh

MARKETING

Business HeadJacob George

Senior Advertising ManagerAvi Titus

Advertising ManagerArif Abdul

Assistant Advertising ManagerJinu Mathew Varghese

CORPORATE

Chief ExecutiveSandeep Sehgal

Executive Vice PresidentAlpana Roy

Vice PresidentRavi Raman

Senior Business Support ExecutiveRadha Kumar

Business Support ExecutiveZuwaina Said Al-Rashdi

DistributionUnited Media Services LLC

OER Presentations

OER Debate Special – Perspective

Published byUnited Press & Publishing LLCPO Box 3305, Ruwi, Postal Code - 112Muscat, Sultanate of OmanTel: (968) 24700896, Fax: (968) 24707939Email: publish@umsoman.comWebsite: www.umsoman.com

All rights reserved. No part of this publication may be reproduced without the written permission of the publisher. The publisher does not accept responsibility for any loss occasioned to any person or organisation acting or refraining as a result of material in this publication. OER accepts no responsibility for advertising content.

Copyright © 2010 United Press & Publishing LLCPrinted by Oman Printers

Correspondence should be sent to:Oman Economic ReviewUnited Media ServicesPO Box 3305, Ruwi 112, Sultanate of OmanFax: (968)24707939Email: editor@oeronline.comWebsite: www.oeronline.com

No 124 November 2010

Forty years is a short span of time in the life of a nation, but in the case of

Oman it has been four magical decades. The development and prosperity

seen by the Sultanate since the blessed Renaissance has been nothing short

of a miracle. The modern history of our nation has been shaped by the

wisdom, vision, courage and foresight of His Majesty Sultan Qaboos bin

Said. This issue of OER is a tribute to this illustrious personality.

A few things stand out in this month’s cover story. One, is how Oman remained

oblivious to the march of human civilisation until July 23, 1970. An isolated state it had

no relations with other Arab or Islamic countries and the same isolation pervaded all

aspects of Omanis’ lives. Curfews were imposed, anyone found outside the city walls

after the retort of the cannons would be shot unless he carried a lantern. Radios were

banned, healthcare was virtually non-existent. In 1970, there was only one missionary

hospital in Muttrah and a handful of admission units in Muscat. Education too cut a

sorry figure with three schools existing across the whole State. On an average one school

was built every 19 years.

Second, was the way Omanis responded to the clarion call of His Majesty in 1970 to

join in the efforts to rebuild their nation. A number of Omanis came back from various

countries to contribute their mite to the process. His Majesty’s statements like we will

educate our children, “if only under the shade of a tree,” galvanis ed the nation into

promoting literacy. Within the first five months of his rule, 16 primary schools were

established to educate over 9,500 pupils, a 662 per cent increase in the number of

children receiving education. Additionally, girls were able to receive free government

schooling for the first time. Educational establishments spread dramatically across

the Sultanate in the next five years. By 1975, there were 262 schools and institutions,

comprising 213 primary schools, 45 preparatory schools, three secondary schools and

one teacher training institute.

On the 40th National Day we would like to convey our heartfelt gratitude to His Majesty

for his visionary guidance and nation building efforts. It is also time for the new

generation to renew their commitment towards continuing the great work done since

the blessed Renaissance.

TIME TO RENEW PLEDGES

Mayank Singh

To read, click on link at: www.oeronline.comOER -magazine

4 November 2010

OIL PRODUCERS’ PREDICAMENTYour columnist Matein Khalid’s articles are interesting and insightful. His analysis on “OPEC” and the crude oil market featured in the OER Edition of October was excellent. I completely agree with the author that OPEC has a long way to go and cannot rest on past laurels, even though it has re-established its central role in oil production and pricing.

The world’s largest energy producer group, however, faces a strange predicament of maintaining producer interests, even while protecting consumers from erratic oil prices. As OPEC turns 50 and oil prices touch $80 a barrel, we just hope the oil cartel will keep in mind the interests of everyone.

Joel Fernando, CBD

UPLIFTING THE SPIRITSReference to the story, ‘Sky is the limit’, I do hope that the listing of Nawras on the Muscat Securities Market will uplift the spirits of the stock exchange. With retail investors still adopting the cautious approach towards the IPO, it looks like that the confidence levels of Ross Cormack, the CEO of Nawras, will not be as high as he would have wanted it to be.

The book building process, introduced by Nawras, although a first of its kind for Oman, seems to have been the main dampener for many retail investors. Many eyebrows were also raised when

the CMA had to intervene in the IPO process of Nawras.

But going by what Cormack has said in the OER interview, it seems that Nawras has got its fundamentals right and hopefully will be able to give the shareholders value for money based on the growth areas identified by the company. It is also interesting to note that there is so much revenue to be generated just by obtaining the cable landing rights in the Sultanate.

When Nawras entered the telecom market of Oman way back in 2005, they ushered in unprecedented transformation by making mobile phone services affordable to everyone. Now with Nawras listing on the MSM, we hope that some new life will be injected into the capital market.

Qais Ahmed, Al Khuwair

Write to us with yourcomments/feedback at: editor@oeronline.com

Petroleum Development Oman (PDO) has awarded United Media Services

(UMS), a three year Integrated Media Services contract for publishing and design services. Says Sandeep Sehgal, Chief Executive of UMS, “Our partnership with PDO underscores the strong quality standards that UMS brings to the table. While we are elated at winning this contract, we are also aware of the huge responsibility that such a contract places on us and as a team we are eager to exceed client expectations.”

A signing ceremony formalising the contract took place recently. Mundhir al Barwani, PDO’s Human Resources Director, says “We are looking forward to benefiting from UMS’s creativity and wealth of experience acquired over the years in the field of publishing and design.” PDO is the major exploration and

PDO AND UMS FORGE NEW PARTNERSHIP REPORT

production company in the Sultanate. It accounts for more than 70 per cent of the country’s crude-oil production and nearly all of its natural-gas supply. Established in 1988, UMS is today Oman’s largest communications and media agency with a number of specialised divisions.

It is a formidable force in the field of communications, covering every aspect of media and integrated communication operations like publishing, media marketing, advertising, interactive and distribution. UMS is a wholly owned subsidiary of Renaissance Services SAOG.

6 November 2010

19EVENTOER Debate 2010The intensity and depth of the OER Debate had the audience asking for more

70ECONOMYTransport tune-upIn a globalised economy which relies heavily on shipping, Oman’s infrastructural upgrades ensure that it will continue to be a desirable shipment and transshipment hub well into the future

BEYOND BOARDROOMS

A workaholicMuneer Ahmed Sulaiman, MD, First Choice,

thinks that for success in business one has to relinquish many things in personal life

99

RETAILSocial Conscience

Clive Freeman, Territory Head, Landmark Group, Oman speaks about the recently

launched Beat Diabetes campaign and the upcoming walkathon

68

FACE2FACEAn integrated approach

William R Crew, General Manager, GroFin/Intilaaqah shares his views on

promoting entrepreneurship and the chal-lenge posed by ingrained mindsets

76

66PERISCOPEWhat next for emerging markets?The year 2011 could be different for Russia, Turkey, India and Thailand who were highly profitable macro traders in 2010

74CLOSE UPBroadbasing its choicesThe new GCC roadmap of cooperating with new regional blocs will enhance its economic choices and rectify the traditional trade imbalance

C O V E R S T O R Y

INSIDE

23

DEEP DIVE.*

AUTOMATIC BI-COMPAX CHRONOGRAPHUNIDIRECTIONAL BEZEL SPECIALLY DESIGNEDFOR QUICK GRIP, BUILT-IN HELIUM VALVEWATER-RESISTANT TO 1000 FEET (330 METERS).

* CHRONOFIGHTER OVERSIZE DIVER SCARABHAND-CRAFTED IN SWITZERLAND www.graham-london.com Ref. 2OVEV.U05A.K41B

8 November 2010

84ENVIRONMENTFor a green causeHSBC Climate Partnership aims to combat the threat of climate change by inspiring action by individuals, businesses and governments

86BY INVITATIONNeed of the hourLeadership coaching is now the management model of choice in nearly half of the Fortune 1000 Corporations in North America

CARTOON CORNER

Editorial 2

Economy Watch 10

Business Briefs 12

Executive Movements 18

Auto News 90

Golf Update 92

Billboard 94

Market Watch 96

Gizmos 97

Browsing Corner 98

80LEGALFinancing structuresAny shares not subscribed to by a shareholder may only be subscribed by other shareholders of the company in proportion to shares owned by each of them

88 AUTO TALKAudi A8 L quattro

82INTERVIEWBranding the futureHH Sayyid Faisal al Turki, COO of Brand Oman Management Unit speaks about youth entrepreneurship, innovation, branding and urban development

INSIDE

By Kannan Murali

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10 November 2010

NUMBERS

Source: Fitch Ratings

Bank Country Total Assets ($bn)

1 BNP France 2,964

2 Royal Bank of Scotland Group

United Kingdom 2,747

3 HSBC Holdings United Kingdom 2,364

4 Crédit Agricole France 2,243

5 Barclays United Kingdom 2,233

6 Bank of America United States 2,223

7 Mitsubishi UFJ Financial Group

Japan 2,196*

8 Deutsche Bank Germany 2,162

9 JPMorgan Chase United States 2,032

10 Citigroup United States 1,857

11 Industrial and Commercial Bank of China

China 1,726*

12 ING Group Netherlands 1,676

13 Lloyds Banking Group United Kingdom 1,664

14 Mizuho Financial Group Japan 1,637

15 Banco Santander Spain 1,600

16 Groupe BPCE France 1,482

17 Société Générale France 1,475

18 China Construction Bank China

China 1,409*

19 UniCredit Italy 1,338

20 Agricultural Bank of China China 1,301**

20 UBS Switzerland 1,301

22 Bank of China China 1,281*

23 Sumitomo Mitsui Financial Group

Japan 1,281

24 Wells Fargo United States 1,244

25 Commerzbank Germany 1,216

Bank Country Total Assets ($bn)

26 HBOS United Kingdom 1,165

27 Credit Suisse Group Switzerland 1,001

28 Intesa Sanpaolo Italy 900

29 Rabobank Group Netherlands 875

30 Goldman Sachs United States 849*

31 Dexia Belgium 832

32 Morgan Stanley United States 772*

33 Banco Bilbao Vizcaya Argentaria

Spain 771

34 Norinchukin Japan 735*

35 Nordea Bank Sweden 731

36 China Development Bank

China 665*

37 Fortis Bank Belgium 627

38 Royal Bank of Canada Canada 608

39 Banque Féderative du Crédit Mutuel

France 606

40 Danske Bank Denmark 597

41 Landesbank Baden-Wuerttemberg

Germany 593

42 KfW Germany 576

43 National Australia Bank Australia 576

44 DZ Bank Germany 560

45 Commonwealth Bank of Australia

Australia 539

46 Westpac Australia 519

47 Hypo Real Estate Holding Germany 518

48 Toronto-Dominion Bank Canada 517

49 Bayerische Landesbank Germany 488

50 Bank of Communications China 485*

World’s 50 Biggest Banks in 2010Global Finance magazine recently revealed its annual ranking of the World’s 50 Biggest Banks for 2010, as measured by total assets. The world’s biggest banks are beginning, once again, to enjoy calmer times. But while the people running the banks may be heaving a huge sigh of relief, some serious damage has been done. All but a handful of the banks at the top of the Global Finance World’s Biggest Banks list have seen their assets fall over the past year. The top 10 banks have seen $3.2 trillion hacked off their combined balance sheet, giving an idea of the severity of the carnage at the top of the table. It appears the spoils are accruing to the upstarts, though, as the total assets of the top 50 as a whole barely budged at $61.8 trillion. China’s biggest bank, ICBC, rocketed up the league this year from 18th to 11th. Perhaps 2011 will see China breaking into the top 10.

*Standard & Poor’s **Agricultural Bank of China

12 November 2010

STRONG DEMAND FOR NAWRAS IPONawras IPO has received very positive response with indications of significant demand from both Omani as well as international investors. Earlier the CMA had granted a one week extension to the offering period at the request of Nawras to ensure all investors have sufficient time to complete and submit their applications.

BANKMUSCAT MARKS WOMEN’S DAY WITH ZEINAH Bank Muscat commemorated the first Omani Women’s Day with the launch of Zeinah, an exclusive suite of products and services to promote specialised banking services for women. The first-of-its-kind banking service in Oman in line with the national development objectives, Zeinah touches a woman’s life at different levels. Aimed at offering the most rewarding banking experience, the Zeinah suite includes exclusive cards, designated counters at branches and specially designed products. Al Badai, AGM, branches, says, “Zeinah offers a unique banking package designed to cater to various financial requirements of women.

ITA BRAINSTORMS COMEXThe Information Technology Authority (ITA) held a brainstorming session at the Diplomatic Club to discuss the development prospects of COMEX 2011. The session was attended by Dr Salim Sultan Al Ruzaiqi, CEO of ITA, chiefs of divisions at ITA, director generals and directors of IT departments in government institutions, CEOs and representatives of various companies, computer academics and experts and students.

The Kuwait operation of BankMuscat was formally launched under the auspices of HE Sheikh Ali Al Jaber Al Sabah, governor of the capital of Kuwait. The inauguration of the state-of-the-art branch was attended by diplomats, dignitaries, senior government and private sector officials and chairman, chief executive and top management team of BankMuscat.

The new branch marks BankMuscat’s extension in the GCC region, covering all six countries through direct and indirect network entities.

The branch currently offers

BankMuscat opens branch in Kuwait

Omantel has signed a new agreement to sponsor and support the United Nations Children Fund (UNICEF) in the Sultanate and help promote and raise awareness of children’s rights. The new partnership will also enable both organisations to benefit from their respective skills, experience and expertise

and work closely together to support the interests of children across the nation. In addition to financial support from Omantel to UNICEF, the two organisations have pledged to manage a workshop on cyber protection with an audience of government and private sector organisations in the

country.Michael Horup, general manager Strategic Marketing and Branding at Omantel, says, the new partnership with UNICEF reinforces Omantel’s commitment to supporting initiatives and organisations that actively help the development of children in Oman.

Omantel to sponsor UNICEF programmes

corporate banking, trade and treasury services. The focus is to support the growth of the Kuwait economy, particularly investment and trade flows between Kuwait and Oman. Sheikh AbdulMalik bin Abdullah Al Khalili, Cchairman

of BankMuscat, says, “The Kuwait branch will add value to the local economy by promoting trade linkages between the two countries and introduce other services to its offering over a period of time.

14 November 2010

MENA FASTEST GROWING AIR TRAFFIC REGIONThe Middle East and North Africa (MENA) is the fastest growing region for air traffic in the world, with capacity increasing by 13.2 per cent in the first seven months of 2010, according to the recent reports of the International Air Transport Association (IATA). With demand in the sector up 19.4 per cent over the same period, travel operators are looking to profit from the opportunities generated through market growth.

MUSCAT YOUTH SUMMITA major three-day summit for young people on entrepreneurship, urban development and media will take place from November 1 to 4 at Al Nadha Resort & Spa. Omantel will be a Gold Sponsor of the summit. Senior executives from the company will manage a one day workshop session. The Summit organised by the Brand Oman Management Unit (BOMU) will host 200 students aged 15 – 24 years.

‘MAYAR AL KHOUD’ TO BE UNVEILED SOONAl Balushi Investment is all set to unveil its much awaited luxury residential project ‘Mayar Al Khoud’. The first of its kind project in the Sultanate, ‘Mayar Al Khoud’ will be comprised of 58 stand-alone villas in a strategic location in Al Khoudh area in Muscat.

OIB WORKSHOP ON COUNTERFEIT CURRENCYOman International Bank (OIB) in association with the Royal Oman Police (ROP)’s Directorate General of Inquiries and Criminal Investigations has organised workshops on detecting counterfeit currency at the bank’s training centre in Ruwi.

The engineering division of Renaissance Services subsidiary, Topaz Energy and Marine, has successfully completed the construction and delivery of a 12,400 tonne deck structure for an offshore oil platform in the North Sea.

Topaz Fabrication and Construction was awarded a RO28.8mn contract to build

the hull and topsides of the colossal structure dubbed MOPU, or Mobile Offshore Production Unit and storage, from Single Buoy Moorings (SBM) for its client, Talisman Energy Norge.

The company’s project was delivered within the time and cost requirements, with more than seven million man-hours

clocked by a workforce peaking at 1,400 employees. “What I’m most proud of is the fact that Topaz delivered the project without a single LTI (lost time incident), a testament to the planning and supervisory skills of our project and QHSE teams,” remarks Bill Bayliss, chief operating officer of Topaz Engineering.

Topaz delivers gigantic offshore project

Country Club India Limited (CCIL), an Indian leisure, lifestyle and entertainment company, marked its foray into the sultanate with the launch of its privilege programme. The event was held under the auspices of HE Mohammed Al Toobi, Undersecretary, Ministry of Tourism. The 260,000-member strong privilege programme across three countries (India, Sri Lanka, UAE) entitles members to a host of benefits at various outlets in Oman, as well as in other countries where the company operates.

The group also launched its privilege programme directory,

Country Club launches privilege programme

which will help people to derive benefits from their Country Club membership. Y Rajeev Reddy, chairman and managing director, CCIL says, “ Being one of the most dynamic countries in the

world Oman is a melting pot of different cultures, and an ideal location for businesses targeting an international audience. The hospitality sector in Oman shows a lot of promise.”

The Teejan Group revealed the Galileo Mobile Science Cart for laboratory teaching at the Oman Laboratory Exhibition at an inauguration ceremony attended by the Minister of Education. Teejan is collaborating with the Ministry of Education in bringing the latest advance

in modular laboratory equipment to the Sultanate. The Galileo Mobile Science Cart is designed to enhance the teaching experience of biology, chemistry and physics through interactive, hands-on experiential learning and enable students to benefit from the latest technology.

Teejan reveals Galileo Mobile Science Cart

Al Madina Development & Supply has recently opened its new office building in Sohar Industrial Estate. The new building at an area of over 400sqm will provide technical support for all customers in al Batinah region in addition to distribution of smartcards and support for Sanad. Al Madina which commenced operations in 1985 offers complete

information technology solutions, system integration, high-level security products and turnkey computer based projects. Al Madina also owns Security Printing Press - Oman, which is specialised in printing security documents and secure cards ranging from printing of MICR cheques and different type of ID cards to digital passport.

Al Madina opens new building in SIE

16 November 2010

BANKDHOFAR COSTUMERS WIN RO40,000BankDhofar handed over RO40,000 for the winners of its Al Heson draw from Muttrah Souq and Al Khuwair ministry branches each. Al Heson is BankDhofar’s flagship savings scheme and is open to customers of all age groups and nationalities. Customers having a minimum balance of RO100 are eligible for the weekly prize draw.

NEW OFFERS FOR NAWRAS ELITE CLUB MEMBERSNawras announced the addition of fantastic new benefits for all Nawras Elite Club members ranging from greater access to airport lounges and more travel services to increased free parking, wider availability of AAA support and new restaurant discounts.

MESSE FRANKFURT‘S SHOWS TO BE CARBON NEUTRALEpoc Messe Frankfurt GmbH signed an agreement with EcoVentures to offset the carbon footprint of their Light Middle East and Garden and Landsacping Middle East exhibitions. EcoVentures will calculate the carbon footprint for the shows and the equivalent amount worth of carbon credits will be purchased to offset these unavoidable emissions.

WALKATHON TO ‘BEAT DIABETES’Landmark Group announced the launch of its ‘Beat Diabetes’ initiative in Oman aimed at spreading awareness about diabetes. As a first step in a series of initiatives to increase diabetes awareness, Landmark will organise a 2.1 km walkathon on November 12 to mark World Diabetes Day.

Shell Oman Marketing Company launched ‘My Beautiful Oman’ campaign to mark the 40th National Day celebrations, under the patronage of HE Sultan bin Hamdoun Al Harthy, chairman of Muscat Municipality, who signed the grand greeting card designed for the occasion.

As part of the campaign, ‘My Beautiful Oman’ road show was held from October 10 to 31. The road show visited Shell service stations in different regions across the country and a large number of people joined the festivities and won a host of exciting

Shell Oman launches ‘My Beautiful Oman’

giveaways. People from across the country signed their messages and best wishes for the National Day on the mega greeting card and

submitted their memorable photos of Oman. The selected pictures will be published in the special edition of ‘My Beautiful Oman’ book.

Information Technology Authority (ITA) has signed a Memoranda of Understanding (MoUs) with nine Omani women’s associations to set up Women’s Community Knowledge Centres (CKCs) which will give computer training for 1890 women by the end of 2011. HE Dr Yahya Badr Malik al Mawaly,

Undersecretary of the Ministry of Social Development, Dr Salim Al Ruzaiqi, CEO of ITA and representatives of nine women’s associations from Seeb, Rustaq, Shinas, Yunkol, Ibra, Jaalan Bani Bu Ali, Bahla, Muscat and Thumrait were present on the occasion. The centres will also train and qualify 18 Omani female

trainers from the women’s associations. HE Dr Yahya Al Mawaly says, “Everyone knows the important role that technology plays in the development of all segments of the society. The selection of Omani women’s associations to establish CKCs will help reach out to various other segments of the society.

ITA to set up CKCs for women

18 November 2010

Mary Allan has joined International law firm Curtis as Infrastructure Partner in Muscat. Allan comes to Curtis from the Oman office of Denton Wilde Sapte, where she was head of infrastructure/projects. She has focused her work on projects in utilities and general mandate work for energy clients in utilities and the energy sectors. Allan has spent almost her entire career within the Middle East. She has been based most of the time in Muscat. She was in the Oman capital first from 1996 until 2002 and then returned to Muscat in 2006.

African & Eastern announced the appointment of Simon Camp as key account manager for Oman. Simon has worked in the beverage industry for seven years, helping to grow established brands and launch a number of new products in the United Kingdom. Focusing in the hotel sector, Simon will bring his experience of customer service and sales to the market.

THE WAVE, MUSCAT CREATES HISTORY Oman Sail’s Extreme 40 ‘The Wave, Muscat’ has won the final event of the 2010 Extreme Sailing Series and with it secured overall victory in the 2010 Series. ‘The Wave, Muscat’ has also achieved one of Oman Sail’s key milestones with an Omani sailor standing on the podium of a top international sailing event for the first time in the country’s history. The man who has made history for Oman is Khamis Al Anbouri, bowman on The Wave, Muscat.

Ahmed Tufail has been appointed as the first Omani director of KPMG. Ahmed joined KPMG as an audit trainee in 1995 after completing his high school. On qualifying ACCA in 2004, he moved to US on an international assignment. He qualified Certified Public Accountant (US) and attained membership in Council of Petroleum Accountant Societies of US. He has recently completed the exams of the Chartered Institute of Management Accountants (UK). Within KPMG, he acts as the people management leader.

National Bank of Oman (NBO) has appointed Hassan Abdul Amir Shaban as chief marketing officer to head its recently formed marketing division.

Shaban who joined the bank in 2004 has assumed many senior responsibilities. He headed the bank’s Corporate Communications Division and Government Relations and prior to taking over his new role, Hassan was also responsible for the bank’s Wealth Management Division “Al Sadara”.

In his new role, Shaban will be

Hyundai officials and OTE Group chairman Sheikh Saad Bahwan felicitated the winners of the draw in a glittering ceremony. The mega prize of 1kg gold, gold diamond pendants for ten other winners and gifts for many other lucky winners were handed over in the ceremony.

Earlier, the draw was held at the Hyundai showroom in Wattayah under the supervision of senior officials from the Ministry of Commerce and Industry and OTE Group of companies.BT Shin, head

Hyundai draw winners felicitated

of Middle East Regional Headquarters, Hyundai Motor Company (HMC) says, “Despite an unprecedented crisis in global auto market

in 2009, HMC has continued its growth and HMC’s global sales has risen by over 12 per cent to reach 3.1mn units in 2009”.

responsible for the management of advertising and communications, market segmentation and research and products development as well as service quality assurance.

The Bank has also appointed Moosa Al Jadidi as executive manager of Wealth Management Division ‘Al Sadara’, in place of Hassan Shaban. Jadidi has vast experience in investment and banking, particularly in the field of private banking. He has worked for many years with a reputed financial group in the United Arab Emirates.

The significance of greater cooperation between the government and private sectors to achieve the goals of Vision 2020 dominated the OER Debate 2010 held on

October 25 held at MSM. The tone of the debate was set by HE Maqbool bin Ali Sultan, Minister of Commerce and Industry, when he delivered the keynote touching upon three issues – development of SMEs, education and Omanisation – which, he said could throw up challenges to Oman’s economy as it pushes towards reaching the goals of Vision 2020.

There was complete engagement in the debate from the audience of more than 200 corporate captains, business leaders, dignitaries besides representatives of the international and local media, who had gathered for the national debate on Oman’s economy.

Nima Abu Wardeh, the presenter of BBC’s Middle East Business Report anchored the riveting debate. The deliberations ranged from globalisation and economics to human capital and motivation while offering glimpses of the future and reviewing the idea of a new age of leadership in a changing business landscape.

The OER Debate 2010 was organised under the auspices of His Highness Sayyid Tarik bin Shabib, editor-in-chief, Oman Economic Review (OER), and HE Yahya Al Jabri, executive president, CMA. The panelists of the debate included Dr Mohamed Abdulaziz Kalmoor, CEO, Bank Sohar; Wael al Lawati, CEO, Omran; Pankaj Khimji, Director, Khimji Ramdas; Stephen R Thomas, OBE, CEO, Renaissance Services; Ross Cormack, CEO, Nawras; Dr Mohamed Ali, Vice Chairman and Managing Director, Galfar Engineering and Contracting Company; and Dr Brian Buckley, General Manager and CEO, Oman LNG.

The eminent panelists enlightened the audience with their valuable insights into the way businesses in the new age must operate and the need for the private sector to do a rethink on how they operate their businesses while keeping the interests of the nation in mind. The debate was followed by an awards ceremony in which The OER Top 20 companies for the year 2009 were awarded OER Top 20 trophies. The OER Top 20 companies are the largest listed companies by revenue in the Sultanate.

Earlier, HE Jabri unveiled Perspective 2010, the official magazine of OER Debate.

The intensity and depth of

the OER Debate had the

audience asking for moreTHOUGHT PROVOKING

EVENT

Keynote address: HE Maqbool bin Ali Sultan, Minister of Commerce & Industry

The august gathering listening in rapt attention

Sharing a lighter moment

Sandeep Sehgal, Chief Executive, UMS, sums up the debate

Guests pose for the shutterbugs at the networking event

T

EVENT

Manal Abdwani, Chairperson, Oman Flour Mills, making a point

Mohammed Al Kharusi, Director, MB Holding, sharing a viewpoint

Corporate captains busy networking before the debate

Dr Amer Al Rawas, CEO, Omantel receiving the OER Top 20 Award

HE Yahya Al Jabri, Executive President, CMA, unveiling 'Perspective'

Business leaders indulge in animated conversation and camaraderie prior to the debate

Corporate Captains at the networking event

They are all ears to HE Maqbool's key note addressHE Maqbool answers a question

A cross section of the audience engrossed in the debateNima Abu-Wardeh moderating the debate

The OER Debate 2010 raised important questions about Oman's economy and engaged the audience and panelists in an intense debate

EVENT

23November 2010

COVERSTORY

It was 40 years ago that Oman made its historic tryst with the Renaissance, ushering in a new dawn of progress and prosperity in the country. In his landmark oration capturing the essence of this great transition moment, His Majesty Sultan Qaboos bin Said had promised

to transform the country ‘into a prosperous one with a bright future’ and called on people to work in unity and cooperation for designing the future course of the nation.

The visionary leader has proved as good as his words and the people have accepted the challenge of the future with a remarkable sense of responsibility and commitment. Over the last forty years Oman has been rediscovering itself. A farsighted leader and his dedicated people have created the country’s history anew. While the country commemorates the 40th anniversary of its National Day, it is a moment to celebrate not only the triumphs and achievements but also the grandeur of the striving and efforts behind it and the

vision and ideals which moulded it. As Albert Einstein famously said all that is valuable in human society depends upon the opportunity for development accorded to the individual. Oman has made remarkable strides towards the development of its human resources which, in turn, has significantly contributed to its social development and economic growth.

It is also the moment to celebrate our national integration which helped us achieve what a disoriented and under- resourced country could never dream of in 1970. The joining together of all people-including those who had left for greener pastures and the erstwhile disgruntled exiles- under one umbrella to get the nation a respected position in the comity of nations was an extraordinarily inspiring event in the history of any nation. In the following pages, some eminent personalities and business heads walk down memory lane recollecting the phenomenal transformation of the country over the last four decades.

A report by Khalfan al Rahbi, Fatma al Araimi, Visvas Paul D Karra and Muhammed Nafie

COVERSTORY

24 November 2010

Shura Council stands out as a proud symbol of the parliamentary culture in the country,

says HE Sheikh Ahmed bin Mohammed Al Issai, Chairman of Shura Council

HE SHEIKH AHMED BIN MOHAMMED AL ISSAI, Chairman, Shura Council

25November 2010

The 40th anniversary of His Majesty Sultan Qaboos bin Said coming to power in the country is a moment of national pride in the mind of each and

every Omani. It marks an auspicious moment which will remain ineffable in the memory of Omani people. The great achievements in this prosperous era include the establishment of a modern and integrated state with public institutions, laws, constitution and big infrastructure facilities in all governorates and regions of the country.

These achievements are very conspicuous in all areas of development especially in the progress of the life of Omani people who are the real wealth of the nation. His Majesty accorded top priority to the development of human resources in the country through educating and training people and equipping them with basic skills which will enable them to work and to bring good for themselves, their society and the country as a whole.

The development of education is one of the significant milestones in our development. These achievements include providing quality health services, linking the whole country with a good network of roads, quality water and electricity services and many other things.

Shura Council stands out as a symbol of civilisation in the country. The functions of Shura began with the setting up of a State Consultative Council in 1981. And after ten years, exactly in 1991, the Shura Council came into existence.

Since then, it continues to play a vital role in discussing and studying various social issues, laws and bills referred to it by the government and various other issues referred by His Majesty. The Shura system was improved by setting up of a State Council which also carries out significant national responsibilities. Both State and Shura

Councils together constitute the Council of Oman. The Council of Oman’s session begins every year with His Majesty’s speech focusing on the actions to resolve various issues ofthe country.

Since 1970 the country has accorded more importance to human resource development and development plans. The forthcoming Eighth Five Year Plan from 2011 to 2015 envisages massive investment in industrial and tourism sectors which will be greatly beneficial to Oman and its people. Basic and higher education in the country will develop more with the increase in the number of schools, colleges and private universities. Education and health continue to be focal areas in the government’s development priorities.

One of the most prominent features of modern Oman is security and stability that the Sultanate enjoys in a world fraught with conflicts and problems. There is no doubt that the insight of His Majesty, his political wisdom and realism in dealing with foreign issues made Oman an oasis of peace and stability and its citizens well-respected in all countries of the world.

The momentum of internal development coupled with constructive foreign relations, establishment of the rule of law and various public institutions, the development of Shura Council, the importance accorded to the development of Omani people and the economic policy focusing on diversification of income sources are all positive indicators that Oman will continue to march and fulfill its ambition in all areas of life.

Forty years is not a big time in the rise of any people. But we have achieved a lot under the leadership of His Majesty who created this modern state – a nation that each Omani is proud of and is widely appreciated all over the world.

The functions of Shura began with the setting up of a State Consultative Council in 1981 followed by Shura council in 1991

26 November 2010

COVERSTORY

HIS EXCELLENCY MOHAMMED AL ZUBAIR, Adviser to His Majesty for Economic Planning Affairs

27November 2010

Before 1970, Muscat (the area which now falls within Muscat governorate) had two gates. One was located in the area where Al Nahdah hospital

now stands while the other one separated Muscat from interiors of Oman. The second gate which was used for imposing tariffs on the goods used to be closed at night. But in the days just before the Renaissance government vehicles and oil vehicles which had license were allowed to go.

Muscat (the area which now falls within Muscat city) was surrounded by four gates: the big gate, the small gate, Al Mathaib gate and Waljat gate. All these gates were closed by 9 pm, and 15 minutes before the closing of the gates drum beats would be heard from Al Mirani Castle followed by cannon firing announcing the closing of the gates. Those who wished to enter after the closure of the city had to hold a lantern (kerosene lamp) while they moved inside the city. If the lamp was extinguished, its owner would be imprisoned till the next morning and investigated. “Some of my friends were troubled by this as our old house (now Bait Al Zubair Museum) was located within the gates,” says HE Mohammed Al Zubair, Adviser to His Majesty Sultan Qaboos bin Said for Economic Planning Affairs.

This heavy fortification was because a number of thefts occurred in the area in the 40s and a foreign dignitary was assassinated which alerted authorities that the number of police personnel was not sufficient. But increasing the number of police personnel was not possible at that time. Therefore the system of gates, oil and kerosene lamps to see the movement of individuals within the city came into force.

But the news of Renaissance was not a surprise to Al Zubair. “Around six months before,

we felt that a political change was bound to happen. and at last the reality dawned on us on July 23.”

HE Al Zubair was among those who arranged the reception for the new Sultan from Dhofar. They bought in bulk all the red cloths – which was called Bandera – available in the market. HE Al Zubair wrote the welcome boards with his hand and helped many of his relatives to do so. They set up these boards in all parts of Muscat and even in the palace. “When the new leader and Sultan arrived at Bait Al Falaj Airport House and delivered his historic speech it made the hearts of the Omanis love him and elated over the Blessed Renaissance.” In those times, Muscat was almost devoid of major structures. The only major structure in Ruwi area was the Bait Al Falaj airport which was situated in the midst of farmlands. Even the spectacle of an aircraft coming from the top of the mountains to land on the runway of the airport was frightening to many people.

Post-Renaissance“Oman after Renaissance is like a dried tree which received rain and sprouted again after its death ,” says HE Al Zubair describing the Sultanate after His Majesty took the reins of government in the country. After 1970, everyone was drawn to work in all fields and to perform different activities that they were not able to do earlier in order to help the new government. Everyone was willing to assist the government in achieving development, especially since the country’s population was very small and many people were immigrants. Some of them returned immediately after hearing the news and some of them came after waiting for a while. “Today our country. is appreciated by everyone, as evident in the visit of eminent personalities and senior dignitaries to the country,” Al Zubair adds.

HE Mohammed Al Zubair, Adviser to His Majesty for

Economic Planning Affairs, likens Oman in 1970 to a dried tree which sprouted

again after the rain

After 1970, everyone was drawn to work and to perform different activities in order to contribute to the nation building

COVERSTORY

28 November 2010

In 1970, His Eminence Sheikh Ahmad bin Hamad Al Khalili, Grand Mufti of the

Sultanate felt that the country was on the threshold of a new era

The achievements the Sultanate made under the leadership of His Majesty Sultan Qaboos bin Said are plenty. But one of the most important

achievements has been the development of Omani human resources. Omani citizens have become able to perform in various areas of life and played a remarkable role in the Renaissance. “The development of human resources is one of the most important of all achievements, because it is different from building structures, says His Eminence Sheikh Ahmad bin Hamad Al-Khalili, Grand Mufti of the Sultanate. Buildings can be made in a short period, but saving man from underdevelopment and making him advanced and capable of understanding his time and its issues are not that easy.

“Omani citizens are obliged to thank God for these blessings and use them for their spiritual and ethical uplift,” says Khalili. He reiterates that we need to synthesise spiritual renaissance with material renaissance. For, material renaissance devoid of spirituality is of no value. “So this Renaissance demands us to thank God if we really want to maintain it. We also need to take utmost care to preserve our faith and spiritual values and strengthen our Renaissance with good deeds and lofty morals.”

Referring to the main reasons that contributed to these achievements, His Eminence Al Khalili says, “Sincerity of leadership and the harmony between the top and bottom of society are the main reasons for these achievements.” The people of Oman were awakened by the Renaissance to understand their worth and potentials.

Recalling the moments when His Majesty came to power in 1970, he says, “I felt that we were on the threshold of a new era and the change would liberate people from narrowness to

broadness, from rigidity to openness and from constrains to relaxation. We received the news with joy, because people were elated with this and they became optimistic that today will be better than yesterday and tomorrow will be better than today.

Referring to the future of the country, he says, “The future of the country in the prosperous era of His Majesty will be a bright one. If the country could achieve such a great success starting from zero, there is no doubt that the future built on these achievements will be far bigger. With sincerity and harmony between the top and the bottom we could achieve bigger achievements.”

HIS EMINENCE SHEIKH AHMAD BIN HAMAD AL-KHALILI, Grand Mufti of the Sultanate

Sincerity of the leadership and the harmony between the top and bottom of society are the main reasons for these achievements

COVERSTORY

30 November 2010

HE Sheikh Salim al Khalili, Minister of Agriculture, believes that the country holds out a

prosperous and promising future for its coming generations

We were in Baushar when a messenger came to my father with a letter from Sheikh Ahmed bin Ibrahim Al Harthy who was

the administrator of Al Dakhliyah. The letter brought in the happy news about the upcoming changes in the Sultanate. It also quoted the famous speech by His Majesty Sultan Qaboos bin Said asking Omanis to forget about the past and inviting them to stand for unity.

It is easy for a person to speak of any event that happens in the world today, but it is not that easy to talk about the Renaissance which provided us with welfare in this world and happiness hereafter. It has brought about all achievements, welfare and goodness that now we are living with. There are men in history who came to build their nations and people and I believe that His Majesty, with all the achievements he has brought to the country, is one of those rare historical figures.

Comprehensive growthHis Majesty accorded a lot of importance to the development of human resources. He understood the significance of education and knowledge in this regard as he famously said, “We will know our children, even under the shade of the trees.” He set up schools, institutes, college and universities for this society which did not have access to the world of education prior to 1970. There were only three schools in the country until that time – one each in Muscat, Muttrah and Salalah. His Majesty surpassed all boundaries and rose up to the expectations and aspirations of the people

His Majesty also gave priority to providing health services and set up a number of health service institutions. Today the Sultanate is one of the few countries that managed to provide high quality health services. Besides,

he provided people with other services such as electricity, water, roads, airports and ports, and promoted agriculture. He was also awakened to the importance of food security and supported people working in agriculture and fisheries and various other trades in order to make them self-sufficient in their respective jobs

Another major achievement was the system of safety and security as understood by anyone who comes to the country. Everybody can see symbols of this development anywhere in the country. When one goes up Jabal Shams, road facilities, electricity and other services there are indicators to the fact that the Blessed Renaissance has reached there also.

A model for developmentThe achievements brought about by His Majesty are really indescribable. All these things in this country constitute a model for progress in security, health, education, transportation, roads and electricity in the country.

His Majesty has created a lot of mosques, minarets and religious centres. There is not a single Wilayat in the country without a mosque. One of the greatest and most prominent of these is the Sultan Qaboos Grand Mosque. I speak like this because I lived both before and during the time of His Majesty. I wish I had not lived except for in the time of His Majesty.

The setting up of Shura and State Councils is one of the hallmarks of his time. His Majesty intends to make use of the potential of the Omani people; therefore he appoints aged people who have retired to State Council in order to utilise their skills for the service of nation and its people and contribute to the Renaissance of the country.

I believe His Majesty could achieve all these

After 1970, Oman has made unprecedented progress in security, health, education, transportation, electricity etc

31November 2010

things because God has bestowed wisdom on him. It was this wisdom given by the Almighty that served as a secret to fulfill all these achievements. Besides, the commitment of Omani people and their gratitude to God dovetailed nicely with these distinctive divine blessings.

His Majesty achieved in the last forty years what Oman could not achieve in its whole past both in terms of the power of the state and its status and prestige outside. Oman is one of the rare countries in the world which does not have enmity with any other country

in the world. Omanis are respected and held in high esteem everywhere.

Owing to the great achievements the country has made, I believe that the country holds out a prosperous and promising future for its coming generations. His Majesty has laid solid foundations for future generations promising them happier life. Moreover, I am confident that Omani people are hard working and will fulfill their ambitions in any way. I am also confident that the future will be bright for us. God will not delay rewarding such great work.

HE SHEIKH SALIM BIN HILAL AL KHALILI, Minister of Agriculture

COVERSTORY

32 November 2010

During the last 40 years the Sultanate’s economy has made a great leap forward driven by the mechanism of free market, keeping abreast of the

innovations of modern age and giving priority to the growth of all economic sectors such as industry, manufacturing tourism, services, information technology etc. Under the wise leadership of His Majesty Sultan Qaboos bin Said the country entered into trade, economic and investment agreement with various economic groups and organisations as well as neighboring countries.

HE Khalil Bin Abdullah Al Khonji, Chairman of Oman Chamber of Commerce and Industry (OCCI), attributes the post-Renaissance transformation of Oman to a modern economic powerhouse to inclusive strategies and broad vision with focus on balanced and comprehensive development. “The Omani model of development stands out with its focus on gradual and balanced growth rather than immediate results. This enabled the country to achieve a solid and firm economic base which helped Oman to stand tall through the global economic crisis. Oman was listed among the least affected countries during the financial meltdown,” says HE Khonji.

According to HE Khonji, the hallmark of Oman’s economic growth across all sectors has been stability and balanced fiscal policies. It stimulated commercial and industrial activities in the country and helped attract foreign investments to the country especially in the newly developing zones in Sohar, Duqum, Salalah and other regions.

Vision 2020HE Khonji observes that Oman’s Vision 2020 was able to take tangible steps to help

Oman’s transformation from a traditional economy to a modern one by developing the entire manufacturing and service sectors and increasing their contributions in the GDP through diversifying the national economy. Owing to these measures, the contributions of industry, tourism and service sectors to the GDP have considerably increased. These sectors continue to play an active role in the development of national economy by attracting local and foreign investments and training and employing Omani youths. They have also introduced modern technology and know-how in different areas.

The year 2010 marks the end of the seventh five-year plan, the third plan within Vision 2020, and the beginning of the Eighth Five-year plan, the fourth within the vision, with several new comprehensive development plans. HE Khonji observes that at this crucial juncture the private sector, as a development partner of the government, is looking forward to playing a bigger and more effective role with special focus on investment in service sectors.

Significant contributionHE Khonji says the number of private sector companies has increased more than 70 times during the period from 1975 till the end of 2009. This increase reflects the strong contribution of the sector to the economic development. The average contribution of various economic sectors in GDP has amounted to over 63 per cent. HE Khonji also maintains that the private sector plays an important and leading role in drawing investments to the country. “The percentage of investments throughout the five-year plans increased tremendously. The highest of this increase was in the fifth five-year plan (1996-2000) taking the actual investments of the private sector to RO1987mn

The private sector has contributed to the development of the country through its

partnership with the public sector, says HE Khalil bin Abdullah Al Khonji,

Chairman, Oman Chamber of Commerce and Industry

The leader cultivated a sense of responsibility among the people making them work in the spirit of one Oman

or 39.7 per cent of total investments. The economic development of the country resulted in the creation of more job opportunities in the private sector. By the end of 2009, the total number of workers increased to 1,235,211 out of which 182,365 were Omanis. Omanisation in some sectors, such as telecommunication and banking, has reached up to 90 per cent,” HE Khonji adds.

Looking ahead With regards to the future vision of the OCCI, HE Khonji says the chamber seeks to concentrate on further developing the cooperation and partnership between private and public sectors, starting from the upcoming Eighth Five-year plan (2011-2015). The ongoing development of the country requires strategic projects to create more job opportunities for Omani citizens. He believes that these strategies should take into account equal distribution of the benefits to all sections of the society and regions of the country. “Equal importance should also be given to maintain a balance between economic development and social welfare through promoting science, education and cultural and sports activities. He maintains that the government should continue to accord more importance to the development of the private sector in order to attract more investments from the sector in development projects. He also highlights the importance of government’s partnership with the private sector saying that “government is the main guarantor and the largest supporter of investments in the private sector’.

Remarkable roleElucidating the leading role played by the OCCI in strengthening the performance of manufacturing and service sectors, HE Khonji says the chamber has worked to develop the economic and investment relations of the country through joint councils and specialised committees. “These committees and councils have a great role in facilitating a good investment environment in the country and promoting opportunities. The chamber also supports small and medium enterprises and works towards improving women’s contributions to the economy,” he adds. According to him, other priority areas are supporting employment programmes, creating social responsibility awareness among the private sector companies, improving coordination and cooperation for the conservation of natural resources.

HE KHALIL BIN ABDULLAH AL KHONJI, Chairman, OCCI

COVERSTORY

Abdulla Issa Al Rawahy, Chief Strategy Officer,

Nawras takes a walk down memory lane to trace the

growth of telecommunication industry in Oman from its

embryonic stage in 1970s

Abdulla Al Rawahy was in Africa in 1970 when his father informed him about His Majesty Sultan Qaboos bin Said coming to throne. His

father also told him that the new Sultan invited Omanis outside the Sultanate to return to their homeland. Many people returned to the Sultanate and Rawahi was the first to return among his family members.

“I still remember my flight to the country which cost around RO2,000 in those days and my landing in the mountains at Bait Al Falaj airport in 1972,” he recalls. “Our house was behind the Palace of His Majesty. He used to greet us whenever he went out in military

In 1974, the first satellite ground station was established in Al Wattayah which contributed to improve the quality of communications substantially

ABDULLA ISSA AL-RAWAHYChief Strategy Officer, Nawras

attire in his Land Rover to take stock of the development of the country.”

While many young people went to work in banks, Al Rawahy chose to work in the telecommunications sector at Cable & Wireless, which was the leading telecommunications company in the Sultanate in those days. The day was very simple. He would go to work in the morning and come back at noon for lunch and a nap. In the afternoon, he used to take a stroll on the beach near the British Embassy. By nightfall, he would come back to his house and after dinner listen to the news over the radio and go to bed. “If it was hot and dry we used to sleep inside the rooms, if the weather was humid we used to sleep on the roof of the house,” he recollects.

Rawahi was among the first Omani technicians to get training in Bahrain, then the most progressive GCC countries in communications with a training centre for people of the region. Later, he was sent to the United Kingdom for training and returned in 1975 as a communications technician in Amerat station.

He remembers there were only 500 lines until 1973, and international communication was very difficult and often marred by interference. The only wireless station was the one in Wattayah which was linked wirelessly to Bahrain and from there to the entire world. There were only four international channels operating in high frequency and the contacts depended mainly on weather conditions.

In 1973 and 1974, the coverage was extended to the Al Batinah region and microwave communications were introduced. In 1974, the first satellite ground station was established in Al Wattayah which contributed to improve the quality of communications substantially. In 1975, the government bought Cable & Wireless and began the expansion of telecommunications services to different regions in the Sultanate. In 1975, a satellite ground complex with world-class technology was opened in Amerat.

Asked about the sweet memories of those seemingly hard times, he says, “My salary was not more than RO60. But it was enough for me to send to my father in Africa and to survive till the end of the month. In some remote areas where electricity had not reached, we used solar energy to run phone exchanges and for ventilation.”

COVERSTORY

36 November 2010

There is a noticeable difference between renaissance and development. The latter is more material with its signs perceptible everywhere whiles the

former stands for a different philosophy. The architect of our Renaissance His Majesty Sultan Qaboos bin Said has a different philosophy. Renaissance is some thing beyond what we see on the streets, buildings and airports. Historians give different definitions and interpretations to Renaissance. According to me, Renaissance is deeper than building roads, airports and modern buildings, which is part of the development in any country in the world.

Renaissance is the revitalisation of history, heritage, art and relationships. We can hardly find a country in the world other than Oman without an enemy. Oman is everyone’s friend

and at the same time it has a strong voice in international forums and on regional issues.

That is the philosophy of the

The word renaissance stands for a profound philosophy which cannot be restricted to

material development only, according to Sheikh Abdul Malik Al Khalili, Chairman of

BankMuscat

Renaissance developed by His Majesty. Those who restrict Renaissance to the development are really doing injustice to the concept of Renaissance.

His Majesty will be assessed on par with great leaders in human history. If we restrict the concept of Renaissance to the material development, we are doing a disservice to the concept of the Renaissance as an overall philosophy developed by His Majesty. I often travel to some countries where I can see streets, buildings and facilities which are merely material things. But the symbols of Renaissance in the Sultanate, even if they were not immediately appreciated by a commoner, reflect a deep-seated concept of Renaissance which will be acknowledged by posterity.

Philosophers see a lot of things not seen by the ordinary man. The depth of His Majesty’s philosophy is inaccessible to anybody. His wisdom was the main engine of his philosophy and history alone will be able to talk about that philosophy. The wisdom of His Majesty is well reflected in what he said in his first speech: “‘let bygones be bygones”. That was the beginning of building a solid and sound footing. It is not logical to build Renaissance in a country where any kind of difference or confusion exists.

However there are certain factors that helped in the construction of the Renaissance. The most important of them was the personality of His Majesty which is comprised of several factors such as the experience that has moved to him from his father and grandfather. His education abroad and his extensive travelling added to the elegance and richness of his personality.

That is why we look into the future of the Renaissance with optimism.

His Majesty will be assessed on par with great leaders in human history

SHEIKH ABDUL MALIK BIN ABDULLAH AL KHALILIChairman, BankMuscat

COVERSTORY

38 November 2010

Oman has achieved tremendous milestones over the past 40 years. There are many factors that have led to this success – the

wise and visionary leadership of His Majesty Sultan Qaboos bin Said, the dedication and commitment of Omanis to undertaking this vision and also embracing international partnerships.

The country’s phenomenal transformation from a traditional society to a modern economic powerhouse has been in line with Omani culture and tradition. “As we modernised, we have maintained our cultural values and traditions, but made sure we used the most advanced technology and knowledge to integrate these traditions into an evolving nation,” says Dr Amer Awadh Al Rawas, CEO, Omantel.

Speaking about the growth of the telecomm-unications sector, Dr Rawas says the telecom sector has been a driving factor in the country’s infrastructure, from the early days of analogue fixed line systems to the wireless mobile and Internet revolution of the past decade.

“Omantel has aligned itself with the development of the country and the business sector – ensuring that we have the systems and networks in placethat enable businesses to prosper and compete on a regional and international level,” says Dr Rawas.

As the incumbent operator, Omantel has connected the nation – bringing communities together by introducing every major advance in the industry. Omantel has held a major responsibility for ensuring that the state-of-the-art solutions, technology and services have been introduced in the country.

However, perhaps the biggest shift has occurred in the past five years since market deregulation.

The end result is a highly competitive dynamic telecom environment with state-of-the-art products and services and improved customer service. For example, Omantel has deployed fibre to the home, and introduced the most extensive 3.5G coverage with more than 750 base stations across the Sultanate.

“Omantel is very proud that it has maintained its leadership position in an increasingly aggressive marketplace. In fact, in 2010 we have enjoyed the fastest growth in the market as demand for the full spectrum of modern telecommunications solutions continues to grow dramatically,” he opines.

According to Dr Rawas, Omantel is fully committed to Vision 2020 by continuing to play an integral role in ensuring the long-term economic prosperity of the country. Diversification is already well underway and Omantel is playing an important role in ensuring this will be successful. As the Omani economy is developing, Omantel is a key partner to the country’s large-scale development projects such as Duqm, Sohar and Salalah ports and the major real estate projects. In fact, Omantel has already made significant investments in developing the required infrastructure for these major projects, in order to align with Government initiatives, which reinforces our commitment to realizing the objectives of Vision 2020.

The key challenges facing the Sultanate as the country moves into the fifth decade of the Renaissance is to build upon the a solid foundation which has been established till date, says Dr Rawas. “The fifth decade of the renaissance will provide opportunities for us to maintain the tremendous momentum generated by the visionary leadership of His Majesty Sultan. We are blessed with a pool of young talent for which we should ensure

As the Omani economy is developing, Omantel is a key partner to the country’s large-scale

development projects, says Dr Amer Awadh Al Rawas, CEO, Omantel

The telecom sector plays an important role in the development of human resources in Oman

39November 2010

that they continue to receive the right kind of training and that companies are able to offer rewarding, long-term career development as our new graduates enter the workforce.”

The telecom sector plays an important role in the development of human resources in Oman. And this is revealed in the continuous training and investment initiatives which have ensured that we are developing a highly skilled and technically proficient workforce. In fact, says Dr Rawas, Omantel was among the first telecom operators in the region to have a full-fledged telecom-training centre, which was established in 1978. The training provide by Omantel has helped to deliver expertise

that is required and used by other companies and has also contributed to introducing new entrepreneurs to the market.

Omantel is proud that it has trained generations of Omanis who comprise 91 per cent of its employees. The GCC Ministers of Labour Council recognised this achievement in 2007, with the result that Omantel was awarded the “Best Employer of National Workforce” among all telecom companies in the Gulf states.

“As we look ahead to the future, we are committed to supporting the development of the country by aligning our objectives with the overall vision of Oman,” Dr Rawas concludes.

DR AMER AWADH AL RAWAS, CEO, Omantel

COVERSTORY

40 November 2010

1970 marked the beginning of a new era of human development and economic growth in the

country, says Omar bin Ahmed Salim Qatan, CEO of Oman Oil Marketing Company

In July 1970, when we heard the good news, we were very happy and praised God like all other Omanis. It was the dawn of the light of hope and the return

of security and peace to the country after a period of despair. We were opened to new horizons of knowledge, education and decent life, and the procession of civilisation inched its way forward brining bliss and happiness.

His Majesty Sultan Qaboos bin Said is a unique example of a contemporary leader who led his country to peace and security despite the vagaries of the world around him. He built a modern state and civilised society with the prospects of a bright future. He created cultural awareness among the people and moulded a generation equipped with knowledge and technology capable of creating a dynamic civilisation.

One of the most prominent achievements of the Renaissance was the focus on building

the individual, moulding a good citizen who is intelligent, healthy and educated. Schools and hospitals were set up and the horizon of knowledge was expanded.

The modern state of Oman received wider respect and appreciation among the comity of nations. Its political positions, approach to development and its synthesis of traditional values with the growth of modernity were considered exemplary. The ubiquitous presence of Omani citizens in all areas of development is a proof of the success of the comprehensive Renaissance and the reconstruction of Omani citizens. The participation of women in this march along with men was also commendable. Everybody thanked God for providing them with a wise leader who planned, promised and implemented.

Renaissance also provided a fertile ground for human development and commercial growth. Investment and trade development contributed to the development of a great civilisation enjoying safety and security, sustainable development, respect for the law, and a wise and rational leadership. Omani citizens look forward with great dreams and aspirations to grow and to synthesise the past with present and the local with global cross-currents.

The main reason for Oman’s emergence as a modern, civilised, secure, investment- friendly and respected nation is the clarity and steadfastness of the vision of His Majesty Sultan Qaboos bin Said. That policy which served the country and its citizens best was hailed internationally. With this clear vision, the government concentrated on social development and launched five-year plans. There may be more in the future as a result of the vision of the leader and the government’s promising development plans.

OMAR BIN AHMED SALIM QATANCEO, Oman Oil Marketing Company

The main reason behind Oman’s emergence as a modern and investment-friendly nation is the steadfastness of His Majesty Sultan Qaboos bin Said

COVERSTORY

42 November 2010

Before the Renaissance, we were working from morning to evening to earn for our dinner at night

Life was very simple at that time. We were nomads, and there was a lot to do during the day time. Most of the residential areas were located in

coastal areas. Especially since we had not seen much about other countries, we did not have great expectations. However, we had good commercial relations with countries as far away as Europe and Australia.

We did not have air conditioners in those days and the temperature was not better than the present time. We used to live near the power transformer in Muscat (near the Diwan of Royal Court at present). During the summer, my four brothers and I slept at night on the

Comparing pre and post 1970 Oman, Naru Keshavji,

Executive Director of Naranji Herjee & Co, says that what

His Majesty has done was nothing short of a miracle

NARU KESHAVJI, Executive Director, Naranji Hirjee & Co

roof and our mother would come every two hours to rub us with a wet towel so that we feel a bit cold. But the black dust emitted from the power transformer would fill the area with a layer of black.

There was an Indian School in Muscat with only one classroom for all grades. There was only one bench for each grade. Though there was a secondary school in Muttrah it was very difficult to go there because of the mountainous ways. The main road ended near Bait Al Falaj, while the rest of the city was without streets, and the travel between Muttrah and Seeb depended on the ebb and flow of the tides. People were stranded in one place till the tide ebbed.

When His Majesty Sultan Qaboos bin Said came to power, I was studying in a school in India. I received the news via the phone. Then we did not have great expectations about the new Sultan, and we were not aware of the changes that will occur in the country. All we learned was that Sultan Said was no longer the Sultan of the country, and his son, Sultan Qaboos bin Said, is the new ruler. We did not have great dreams and aspirations for the future. When I returned to Oman after my studies, changes had taken place in various fields, and Oman was going to be united with a road network, the construction of which was underway.

What His Majesty has done was a dream come true for Oman. Those who knew about the past of the country can recognise what His Majesty has achieved for Oman. What he has done was nothing short of a miracle. After His Majesty united the Sultanate, many immigrants started to return to the country to contribute to nation-building. Priority was given to the construction of roads, education and healthcare.

It was the construction sector which has grown considerably. And until 1985 it was the era of developmental revolution. Trade and commerce have also developed greatly at that time. Before the Renaissance, we were working from morning to evening to earn for our dinner at night.

Oman is a paradise on earth and is the best place to stay in the world. Ours is an Indian family which enjoyed the privilege of obtaining Omani nationality. I wish the younger and next generation should also enjoy this blessing.

COVERSTORY

44 November 2010

I was in Qatar when we received the good news about His Majesty Sultan Qaboos bin Said coming to power in the country. Like all Omanis we were also pleased to

hear this great news. From that day onwards, Sultanate came to the forefront of the world.

In 1971, I had the privilege to receive His Majesty at Doha airport. Guided by the words of Imam Ali that health and safety are the two least recognised blessings, His Majesty accorded top priority to health and safety. He set up hospitals and health centres throughout Oman and laid the foundations of internal and external security. As a result of it, Oman developed a well-trained, well-equipped and experienced armed force and set up police stations. This was followed by appropriate regulations and institutions for all segments of Omani society. He also did not lose sight of the tenor of the famous saying ‘Seek knowledge even from China’. He attached great importance to providing education to people in every nuke and cranny of the country.

He also accorded a lot of importance to the development of the agriculture sector and to the religious and spiritual aspects of Omani life. Mosques were set up in all areas. He enacted laws and regulations aimed at the economic development of the country. Omani rial became one of the strongest currencies in the region. Besides, His Majesty set up a securities market. He also took utmost care in the development of Omani industry as an invaluable resource for this country and its people.

With the dawn of the Renaissance, top priority was given to the extraction of oil and discovering more resources. Oman also concentrated on developing extracting mechanisms and technology for this important process. Understanding the great risk involved in this, His Majesty attached top priority to professional health and safety. His Majesty

Hassan Ali Salman, Chairman of Al Hassan Group of Companies examines how His

Majesty laid the foundation of comprehensive development in the country

also accorded top priority to the opening of embassies and consulates of the Sultanate in the world and to develop the relations and friendship with these countries. Oman has also signed several agreements on the border with the countries of the region and joined in various international organisations.

As regards tourism, Oman is gifted with a number of beautiful places which attract a large number of tourists. His Majesty set up the Ministry of Tourism for the development of tourism sector in the country. Besides, Oman has a long history and a great heritage and tradition. His Majesty set up the Ministry of Heritage and Culture for the development of Omani culture and preservation of its rich heritage. He also set up a public authority for the development of crafts industries in the country. The achievements of Oman during the blessed Renaissance are numerous to count.

HASSAN ALI SALMANChairman, Al Hassan Group of Companies

His Majesty accorded great importance to the development of the agriculture sector and to the religious and spiritual aspects of Omani life

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COVERSTORY

46 November 2010

Abdul Kader Askalan, CEO of Oman Arab Bank, was the manager of the Arab Bank branch in Ras Al Khaimah in the early 1970s when

he used to get news about the changes going on in the Sultanate after His Majesty Sultan Qaboos bin Said came to power. People were of the view that Oman needs a long time to become a developed country. After a short while, the general manager of the Arab Bank asked Askalan to move to the bank’s branch in Muscat. Initially, he rejected the idea saying that it was very difficult under the new circumstances. But the manager insisted and said: “Go for three days and if you do not like the situation I will not force you to stay.”

Askalan came to Oman in 1973. Seeb International Airport was very small and did not even have a building. The bank building, which was opened several months ago, was adjacent to the palace in Muscat. When he settled and started to wander in the country, he came to know that prospects are bright for progress in this country with numerous opportunties and very receptive people. He decided to stay in Oman and worked very hard for the development of the bank.

In those days life was not easy. There were no roads, electricity and water; and even food were not available. There was only one bakery where people used to line up in long queues. The road was so small and narrow that if a car got stuck the whole traffic would be in trouble. Askalan was afraid of driving a car at night on roads as there were no electricity or street lights. Despite all these difficulties, he worked hard for the development of the bank. There were only two banks then- British Bank and Charter Bank. He set his goal and worked hard to raise his bank to the level of British Bank.

“The country looked like a workshop. And the development it made has been rapid and great because of the strong desire and willpower of His Majesty and the people around him. We could understand his steely determination to develop the country when we listened to his speeches. We used to participate in the tea parties hosted by His Majesty. From his words we could understand his love and commitment to the country and his strong desire to make Oman a modern country,” says Askalan.

In 1975, due to certain circumstances, the government needed a loan worth $50mn and Askalan worked hard to convince the directors of Arab Bank. That was the OAB’s first big deal with the government and it became one of the banks close to the government. Since then the bank funded a large number of projects. It has become one of the most active banks that funded great development projects. It financed a number of mills and cement factories, Sultan Qaboos ports, water networks and roads in and outside Muscat. In his capacity as the member of the board of directors of the bank, Askalan had also given his advice to the projects which the bank financed.

His first meeting with His Majesty was in 1974. He was accompanying Abdul Majeed Shoman, director general of the Arab Bank. They talked about the objectives of the bank and explained to His Majesty their willingness to provide assistance to the government and participate in the development. He met him again in1975 accompanied by the deputy director of the bank. They were warmly welcomed by him and he expressed satisfaction with the role played by the bank. He met His Majesty again in 1993 when Yasser Arafat visited the Sultanate.

Elaborating on the main factors that

Coming to Oman in early 1970s, Oman Arab Bank’s CEO Abdul Kader Askalan has

witnessed the phenomenal transformation of Oman to an economic powerhouse

His Majesty accorded great importance to the development of the agriculture sector and to the religious and spiritual aspects of Omani life

COVERSTORY

48 November 2010

contributed to the development of Renaissance, Askalan, who also got Omani nationality in 1995, says, “The most important factors were the wisdom and vision of His Majesty as well as the optimum utilisation of the wealth of the country. Once even the minimum conditions and requirements for life in Oman were not there; but His Majesty with his determination and deriving power from his sincere people established a modern State. Oman has become a modern state in a short period of time.”

He believes that, from the very outset, His Majesty tried to make Omani citizens the objective and purpose of development. “He did everything to make their life happier. He established the rule of law and worked for the development of the economy through diversifying income sources and reducing

dependence on oil. His policies also focused on increasing per capita income to reduce the difficulties of life,” he says.

Askalan observes that His Majesty created an open nation which enjoyed good relations with other countries and did not allow anybody to intervene in its internal affairs. “He built a great nation which thrived on safety, security and stability. The stability of the country contributed to attract foreign investment to the country.”

He firmly believes that prospects are bright for Oman in the future, in the light of all these achievements in the country, proper planning and the desire and willpower of His Majesty and his government to maintain its Renaissance development and stability.

ABDUL KADER ASKALAN, CEO, Oman Arab Bank

COVERSTORY

50 November 2010

Oman has gone a long way in the path of development since the Renaissance ushered in an

era of progress and freedom, says Anwar Ali Sultan, Director of WJ Towell

On hearing the news of His Majesty Sultan Qaboos bin Said’s ascendance to the throne, we went into raptures. People were craving for change. We

celebrated the occasion rushing to the street with pictures of His Majesty and the flags of the Sultanate. We gathered around the radio, which was not as ubiquitous as today, to hear the speech of His Majesty. Then we rushed to the streets in what seemed to be small disorganised marches. A few people who owned cars drove the streets to express their happiness. Everybody was in need of change. And when His Majesty arrived at the airport, we received him, our faces oozing with rapture and satisfaction over the arrival of the long-expected leader and much-awaited change.

After getting this new, citizens who were living outside of the country returned home in response to a call by His Majesty to contribute to and participate in nation-building. The rest is history with the Sultanate making rapid strides on the path of development

and entering into an era of hard work and dedication. The blessed Renaissance led by His Majesty has brought a lot for the Omanis and the country and contributed greatly to gain big achievements.

Since His Majesty took up the reins of power in the country, the country, which has started from scratch, has gone a long way on the path of development and Renaissance by setting up educational and health institutions, providing essential services for the people and freeing people from rigid laws and procedures weighing upon them.

Those who lived at that time can clearly understand the difference and the achievements we gained since then. A lot of services that we enjoy today such as hospitals, schools, roads, ports and airports were not available at that time. Those who lived at that transition period will be aware of what has been achieved on this land in all areas. The Renaissance accorded top priority to the Omani people and their dreams and aspirations. Omani people were the objective and purpose of the Renaissance.

Today Oman has developed in all areas bringing pride for all Omanis as a result of the vision, insight and proper planning of His Majesty. Oman is fast growing in all areas winning laurels from everywhere due to the proper planning and considerable efforts made by His Majesty. His rule has revived the glories of Oman and gained a lot of achievements for which he has been widely commended by all.

Given the great achievements the country has made, prospects are bright for the Sultanate in future. We are optimistic now that the infrastructure facilities will develop more and efforts will be made to reduce the dependence on exhaustible resources and raise the contribution of other sectors such as tourism and attract investments.

ANWAR ALI SULTAN, Director, WJ Towell

The Renaissance accorded top priority to Omani people and their dreams and aspirations

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COVERSTORY

52 November 2010

Since 1970, Oman’s civil aviation sector has played an important role in the

development of Oman as a country, says Mohammed Mubarak Al Shikely,

General Manager, Marketing, Oman Air

The history of Oman’s civil aviation sector can be divided into pre and post Oman Air. Up until 2008, both Gulf Air and Oman Air were serving the

country, with Gulf Air flying long haul routes into Europe and Asia Pacific, some direct, but mostly through the hubs of the other owner countries of Gulf Air, and Oman Air linking Oman, non-stop with the GCC, Middle East, Africa and the Indian Sub-continent.

Although Gulf Air was jointly owned by four countries, The Oman Civil Aviation Authority (OCAA) played a key factor in Gulf Air operations. The critical technical components that required the highest international Standards, such as flying manuals, pilot and cabin crew licenses and aircraft registration, were entrusted to the OCAA.

Mohammed Mubarak Al Shikely, GM, Marketing, Oman Air, talking about the development of Oman’s civil aviation, informs that this key role extended into many other areas as well, for example, the regular assessments, training and examinations that are required for a country to operate at world standards. This speaks volumes regarding the status that OCAA enjoyed at that time. Continuously evolving, that legacy continues to this day.

In September 2010 Oman Air reached another milestone when it launched its 40th destination, to Kathmandu in Nepal. The launch of the 40th destination is made even more special by the fact that it coincides with the 40th Anniversary of His Majesty Sultan Qaboos bin Said’s accession to the throne. Oman Air actually started as an airline in 1993 but its roots as a company were established in the civil aviation sector, when Oman International Services (OIS) was set up in 1970. Since 1993,

the airline has taken rapid strides bringing itself to its present level, where it now boasts world class aircraft and unmatched services.

Oman Air has more than tripled its fleet and destinations since its inception, which is a huge transformation for an airline. If Oman Air is a great international airline today, its success should be traced to the vision of His Majesty, maintains Shikely. Even while Gulf Air was operating in the country, Oman Air was given an opportunity to develop and build its regional and local strengths, so that when the time came for it to move to the next level in becoming an international airline, all the right foundations were in place. That is the greatness of a true visionary.

The directive was given by His Majesty through H.E. Ahmed bin Abdulnabi Macki, (Minister of National Economy and Deputy Chairman of Financial Resources and Energy Resources Council), the chairman of Oman Air, who clearly stated that the goals of Oman Air had to be in line with the economic development aspirations of the country. A management team was put together, selected from local and international pool of talent, to make sure the vision stayed on track and moved ahead.

“I remember H.E. Ahmed bin Abdulnabi Macki telling us that we are not going to be competing on size, we need to be focusing on the quality of product and service. These are things that you cannot go to a shop and buy off the shelf; they have to be built and developed from scratch. The Chairman and Board of Directors have selected a great management team and the results are there for everyone to see. Take a look at the business class of Oman Air. While other airlines have a six-abreast seating configuration in business class, Oman

If Oman Air is a great international airline, its success can be traced back to the vision of His Majesty

53November 2010

Air has only four which means that every seat in the business class cabin has an aisle access, meaning you will never have to step over someone and will never be served over someone else,” Shikely says. Further, Oman Air was the first and remained the only airline for a long while worldwide to offer both mobile and internet connectivity aboard its flights. When you look at the giants in the aviation industry, this is an incredible achievement for an airline at such a young age in the evolution process, he adds.

Shikely, who was brought up in England returned to Oman in 1980. After working for Gulf Air for a number of years, he joined Oman Aviation in 2001. He says that in 1980 it was hard to imagine how the country would shape in 1990 or 2010. “But today, I can sit with my children and tell them they have a fantastic future. Whether they are boys or girls, whether rich or poor, opportunities abound for everyone, and again, I repeat myself, it is all thanks to the phenomenal vision of His Majesty,” Shikely points out.

According to him, great visionaries like this only come almost once in a lifetime and who,

despite the tight turns and sharp bends that the world is taking in terms of security, peace and stability, His Majesty has steered the country through all difficulties with wisdom.

“Perhaps the present generation cannot fully comprehend the development phases and milestones, but I can see that they will have even greater prosperity in terms of opportunities, as long as they have the ability, aspirations and dreams,” he says.

Shikely opines that while the journey has evolved, the tradition, the values and culture of Oman have been retained. It is incredible to live and feel the pathway into the future happening. “To me, as an individual, the balance of tradition and modernity has proven itself and I am sure the same assessment has been made by many different people as well, even beyond their expectations,” he adds.

To conclude, Shikely says that Oman presents a fantastic place for aviation professionals, wherever they come from. And as the govern-ment continues to develop the civil aviation infrastructure commensurate with the growth of the economy, the future indeed looks bright.

MOHAMMED MUBARAK AL SHIKELY, GM, Marketing, Oman Air

COVERSTORY

Great are the achievements brought about by the Renaissance which dawned on the day His Majesty Sultan

Qaboos bin Said came to power. This country occupies a great place in our mind. The beauty of Renaissance can be seen reflected on the faces of everybody- from a child who waits the air-conditioned school bus in front of his house in the morning to the government official who drives to office smiling on a spacious road. There is nothing in the country not caressed by its blessings. Women are employed and active in political and economic activities; even the elderly people living in far-off valleys and distant mountains enjoy the fruits of Renaissance.

Sheikh Ahmed Bin Mohammed Bin Omair, CEO,

Bin Omair Group of Companies, examines the factors that

contributed to the emergence of Oman as a modern state

The transportation from villages to hospitals, schools and cities has become easier. Achievements of the Blessed Renaissance are really uncountable. The most important factor is that Renaissance could unite Oman and make it secure land.

The achievements made by the country are as evident and visible as daylight. The main reasons for these achievements was the blessings that God Almighty bestowed on His Majesty. God has conferred power and wisdom on the great leader of this country and blessed the country with fertile lands that grow only good things.

The second reason was the readiness of Omani people to accept the Renaissance and work in tune with the leader and his government that led Oman to prosperity. For the country, it looked like a rain which was showered on dry lands. People were waiting for the light of the sun which His Majesty raised in the darkness of ignorance. This light could help us alleviate diseases, expel poverty and defeat the armies of oppression and darkness.

I cannot say that people lived a prosperous life before 1970. People were leading a pitiful life inheriting humiliation, poverty and vulnerability. The county was at a critical juncture. People were so disappointed that they believed that God will send someone to save the country from its dilapidation. When His Majesty took up the rein of power we knew that its time had come. The first speech he delivered reiterated this belief. He said: “There are changes to come and we will build a modern state.” When His Majesty arrived in Muscat from Salalah a large number of people crowded in the streets to greet him. It was really a bright day for Oman.

What did His Majesty present to the Omani people? It is a small question; but the answer is too long to be described here. He disseminated knowledge and liberated people from ignorance; he eliminated the scourges of poverty and vulnerability which has spread among the people; he united Omani people and made them a single society within a single nation and extinguished the flames of civil wars which had wrought havoc in the country.

His Majesty is a unique and exemplary personality and people like him are rare.

The Renaissance continues its march at a tireless pace driven and illuminated by the wisdom of His Majesty

SHEIKH AHMED BIN MOHAMMED BIN OMAIRCEO, Bin Omair Group of Companies

54 November 2010

COVERSTORY

56 November 2010

Oman has witnessed tremendous growth in education

and health care during the last forty years, says

Mohammed Al Rahbi, a retired police officer

Before His Majesty Sultan Qaboos bin Said came to power, many services were not available in the country. Diseases were rampant. There were

only three schools and one hospital in the country. Life was very difficult at that time. But His Majesty’s coming to power restored the spirit of the country and its people. We started to enjoy the fruits of Renaissance day after day and the ambition for change was great.

I heard about the change of power for the first when I was sitting with my friends. One of them informed us about the coming of His Majesty to power. By that evening the news was confirmed by radio which was then not ubiquitous as now. I was only 12-year old. I still remember the happiness that the news brought to the people who talked about it with great gusto and enthusiasm

After a week, we, a group of teenagers, were sitting near Wadi Surur. A military vehicle moved past us. Then a group of military officials came to us and asked us whether we listened to radio or dulcimer. We were frightened and replied in negative because dulcimer was banned in the country before the Renaissance. But they asked us not to fear and to listen to the radio and dulcimer which they said were no longer banned in the country.

Before the Renaissance, there were only three schools in the county-in Muscat, Muttrah and Salalah- though there were a number of Quran

learning and memorisation schools across the country. His Majesty said after he took up the reins of power, “We will teach our children even under the tree’. He accorded great priority to education. Schools were set up across the country and people enrolled their children in large numbers. Initially schools were opened in makeshift facilities or under the tree.

Health care was very poor at that time. There were no hospitals or health centres. Diseases were widespread and the mortality rate of the children was high. But today, thanks to His Majesty we are proud of the great progress we made in health care with a lot of high-quality hospitals and health centres across the country.

The great development that happened in the country is one of the wonders of the world. It is not an overstatement. Those who lived before and after the Renaissance can realise the magnitude of the shift and the size of the change in the country. The last 40 years will be etched in golden letters in the history of Oman.

We could not have achieved all this had it not been for a number of crucial factors. The Almighty bestowed on Oman a wise leader who studied the needs of the country and set a goal for the country and its citizens. Oman became a modern state by all means. It is certain that the citizens of the country will continue to contribute their best to help His Majesty fulfill their dreams and aspirations.

MOHAMMED BIN KHALFAN BIN HUDEIB AL RAHBIRetired police officer

Though 40 years is a short period in the history of a country, for Oman it was a great period which will be etched in golden letters in its history

57November 2010

Now we assess the development quantitatively and in the future we will start to measure it qualitatively

Dr Sadeq bin Jawad Sulaiman, Chairman of Omani Society for Writers and Literati and

President of the Arab-American Dialogue in Washington, examines how the Renaissance gave

Omanis a stable homeland and a strong national identity

One of the major achievements that the country has made during the Renaissance has been on the security front. In the seventies we

had a state of rebellion in the south which the entire country was preoccupied with. There was an urgent need to suppress it and to normalise the security situation in the country so that we could concentrate on development and construction.

Another important achievement was the promotion of social harmony. His Majesty Sultan Qaboos bin Said accorded top priority to unite the country because he considered social harmony very important for the development of the country. The roads between towns and villages which linked them to Muscat made communication between people faster.

The third major achievement was the development and the work to build institutions of governance and necessary public utilities such as education, health and social care. Many families need help for their uplift and women also needed support to get equal opportunities in education and work. In education, we concentrated on the creation of skilled cadres who will ensure the continuity of growth in the future. Renaissance provided to the citizens a stable homeland and opportunities for self-fulfillment in the economic and social sector.

Leadership, no doubt, occupies a central role in steering the country ahead. We got a leader who united us and worked for national unity and the integration of the interests of people so that everybody in the society could concentrate on construction and development. The leadership was very open to development and it struck a balanced path and pursued a balanced approach in its foreign relations so that it did not indulge in many things at the

DR SADEQ BIN JAWAD SULAIMANChairman of Omani Society for Writers and Literati and President of the Arab-American Dialogue in Washington

expense of the development at home.

I received the news of His Majesty coming to power when I was travelling in Europe with my family. I was working in Kuwait then. It was in the summer when I was on a trip with my family from Kuwait to Europe via road. When we tuned to the radio, we heard the news of His Majesty assuming power in the Sultanate. I told my wife that a major event has happened in the country and its better for us to return to Kuwait. Back in Kuwait, we found the Omani expatriate community in Kuwait was elated and getting ready to return to the motherland. For me it took almost two years to return to the country.

After returning I went to the ministry of foreign affairs in Muscat. Then the ministry did not have various departments. I joined the information department. Then I left for the US in 1973 to work as a counsellor in the embassy in Washington. Later, I was sent to Iran as an ambassador and two years later I was sent to Washington as the ambassador.

I have no doubt that a brighter future is in store for the country. Now we assess the development quantitatively and in the future we will start to measure it qualitatively.

COVERSTORY

58 November 2010

Mustafa Salman, CEO, United Securities was in Kuwait when His Majesty Sultan Qaboos bin Said came to power in 1970. He

was very happy to hear the news and found it an auspicious sign of the coming changes. His father took the decision to return to the homeland to contribute to the nation building and respond to the call of His Majesty.

Though they had good investments in Kuwait and their economic condition was stable there, his father decided to return to Oman which was still in a nascent stage. Despite the challenges ahead they decided to come back after selling their investments in Kuwait. Their priority was to return to the country and participate in nation-building. On their arrival in Muscat, they saw that people were happy and optimistic about the change.

According to Mustafa Salman, CEO, United Securities,

Renaissance reflects a broader concept beyond setting up

buildings and roads

“I am very much optimistic about the future. Our great achievements point to the fact that the future will be brighter. We are so dynamic that there is a change or a new development every day. The plans and polices of His Majesty continue to be the catalyst for this change and dynamism,” says Mustafa Salman.

He believes that the blessed Renaissance led by His Majesty was able to make the country a distinct civilised nation. “It could not have achieved what it has achieved had it not been for the concerted efforts of the leadership and people to rebuild their homeland, which was groping through poverty, ignorance and diseases. His Majesty came to save this country and make it a different country in all aspects,” adds Mustafa

He feels that those who lived both before and after 1970 can understand the evolution and great transformation of Oman under the wise leadership of His Majesty who promised to restore the prestige and history of the country. Development has touched all areas and people of the country. It was a great transformation.

Omanis were hungry for a change since they had suffered a lot in the past. When His Majesty came, people rose and rallied around him offering their support for the construction of Oman. “Today we enjoy a lot of achievements that we made within a short period of 40 years. For all these achievements we owe to God and the vision and insight of a leader,” he says.

The leader inculcated confidence among the people. Omanis worked together as if they were members of a single family and produced tangible results. The leader cultivated a sense of responsibility among people making them work in the spirit of one Oman.

He believes that Renaissance is not merely buildings and roads, but it is a broader concept. Today there are schools and health institutes everywhere and the country became free of pests and diseases because of the attention given by the government to all sectors.

“The Renaissance moved on the right track and our country earned international reputation. The vision of His Majesty was proved to be genuine and true,” says Mustafa.

The leader cultivated a sense of responsibility among people making them work in the spirit of one Oman

MUSTAFA SALMAN, CEO, United Securities

COVERSTORY

60 November 2010

Nailesh K Khimji, Director, Khimji Ramdas considers employability of youth as

one of the key challenges facing the Sultanate when the country moves into the

fifth decade of the Renaissance

Nailesh K Khimji, Director, Khimji Ramdas attributes the phenomenal transformation of Oman from a traditional society to a modern

economic powerhouse to the wise leadership of His Majesty Sultan Qaboos bin Said. He believes that Oman’s political and economic policies and structured regulations have been instrumental in bringing about this

overall change. They have also helped Oman emerge from the ordeal of the financial crisis unscathed. “Our transformation in the last five years itself has been huge. Now sky is the only limit,” he says.

Referring to the contribution of the retail sector to the development of Oman in the last 40 years, he points to the stellar performance of the sector with its growth in the GDP per capita rising 70 fold. It has risen from $300 in 1970 to over $20,000 in 2010. “During this time, the government spending has increased into the sectors that has0 a trickle down effect on the economy,” he says.

The retail sector plays a big role in reducing the dependence on the government in generating employments. He stresses the importance of job training in retail sector which has a big role in nurturing and harnessing skilled youths. The training will increase the employability of Omani youths, he says.

He considers employability of the youth as one of the key challenges facing the Sultanate when the country moves into the fifth decade of the Renaissance. It is high time the country brought up more of its youth as entrepreneurs. “Even if 15 per cent become successful entrepreneurs, they will help employ the rest of the 85 per cent,” Nailesh suggests.

He believes that “Vision 2020” truly reflects Oman’s journey into the third millennium. Faced by diminishing oil reserves and a growing population, the country has very little choice other than diversification of the economy. “The expansion of infrastructure, mainly roads, airports and ports will positively attract tourism and industry and will ensure that our youth is employed and better educated,” observes Nailesh.

Faced by diminishing oil reserves and a growing population, the country has very little choice other than diversification of the economy

NAILESH K KHIMJI, Director, Khimji Ramdas

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COVERSTORY

62 November 2010

Over the last 40 years Oman has evolved a modern and sophisticated law on a par

with many developed countries, says Ali Khamis Al Alawi, Managing Partner of

Al Alawi & Co, Advocates & Legal Consultants. Excerpts

Can you please elaborate on the evolution of Omani law in the last 40 years? The Omani law has developed considerably during the past forty years. We, as Omanis, are proud of a modern and sophisticated legislation on a par with many developed countries. A number of modern legislations related to economic, commercial, criminal, civil and labour issues were enacted. They include Trade Act, the Law of Commercial Companies, the Gulf Capital Investment Law, the Law of the foreign capital investment etc.

The judiciary was given full freedom in discharging its tasks and duties. Besides, the Sultanate, with the Royal Decree No. 19 of

1999, established the Administrative Judiciary to adjudicate in administrative disputes, which reflected the vision of our wise leadership regarding the rule of law. It maintained that all citizens are subject to the rule of law.

How was the development of corporate law, intellectual property rights and commercial arbitration in Oman? And how did they contribute to the social development needs and generate greater added value for human resources?Considering the importance of a modern and sophisticated trade law, Oman has introduced some amendments to the existing Trade Law with a focus on economic development. It was followed by various other related legislations including the law for regulating the functions of Oman Chamber of Commerce and Industry (OCCI), the law for regulating functions of the banks, the Commercial Companies Laws, electronic transactions law and Capital Market Law.

Considering the growing role of arbitration as an exceptional way of resolving disputes, the Sultanate has developed the law of private arbitration. In this regard, the Sultanate is considered a forerunner amongst other countries that have not an independent arbitration law of its own.

The Arbitration Act of Oman is one of the sophisticated legislations that differ from all other legislations in the Middle East countries because it took into account the principles of the Anosral, which are the rules established by the UN Commission for International Trade Law on International Commercial Arbitration and the principles of arbitration as established by the largest international bodies such as the International Chamber of Paris and the Court of Arbitration in London.

Excellent laws to address intellectual property issues have contributed to the commercial and economic development of the country

ALI KHAMIS AL ALAWI, Managing Partner, Al Alawi & Co

COVERSTORY

64 November 2010

From its humble beginnings in the 70s, Oman’s insurance industry is poised for good

times as mega projects are going to keep the industry busy, with everything from

infrastructure to gas-based industries requiring insurance cover

If we look at the history of the insurance industry in Oman, from the 1970 until 1978, all insurance requirements were met by the foreign insurance companies’

agencies and branches operating in the Sultanate of Oman and overseas, says Murtadha M J Ibrahim Al Jamalani, Chartered Insurer-UK, Deputy Chairman of Insurance Committee at Oman Chamber of Commerce & Industry and Member of the Board of Directors, Oman Reinsurance Company.

Al Jamalani is an authority on the insurance sector and is presently working and liaising with the Omani government authorities for developing new insurance products for various

sectors of the economy. He had attained the status of being the first GCC citizen to become an Associate of Chartered Insurance Institute of London, UK in the 1980s with intensive advance management training in the Oxford University ‘Templeton College, UK; and at INSEAD, France.

In those days, says Al Jamalani, it was mainly marine and fire class of business insurance that were very popular. All imports to the Sultanate were on the CIF basis i.e. cost, insurance and freight. And it was only the branches of foreign insurance companies and agencies that were operating in the Sultanate. The first national insurance company, Oman National Insurance Company, was established as a partnership between the Omani private sector and the government of Oman in the in the year 1978, informs Al Jamalani.

The government also introduced compulsory cession i.e. it was made mandatory for foreign insurance companies to reinsure 15 per cent of each and every business with Oman National Insurance Company until the formation of the national reinsurance company in Oman.

In late 1980s and early 90s, most of the stated above foreign insurance branches and agencies either closed down or merged or were taken over by national insurance companies. Some of the companies apart from Oman National Insurance Company, which came into being, were Oman United Insurance Company, Al Ahlia Insurance Company and Dhofar Insurance Company. The last three named companies, today, between them have the lion’s share of the underwriting business in the country. According to Al Jamalani, a major development which happened in 1983 was introduction compulsory motor insurance incorporated in the traffic law.

MURTADHA M J IBRAHIM AL JAMALANI, Chartered Insurer-UK and Member of the Board of Directors, Oman Reinsurance

The first national insurance company was a partnership between the private sector and the government

66 November 2010

What next for emerging markets?The year 2011 could be different for Russia, Turkey, India and Thailand who were highly profitable macro traders in 2010

BY MATEIN KHALID

Emerging markets have been the world’s favourite asset class at a

time when the dollar is toast, commodities are king and Western economic growth is burdened by excessive debt and sluggish bank credit growth. A rising tide lifts all boats. However, it is now prudent to cherry-pick and even prune exposure to individual emerging markets. Russia, Turkey, India and Thailand were all highly profitable macro trades in 2010 but 2011 could be different.

Russian equities are vulnerable to a collapse in oil prices and the mood swings of global investors. However, Russia is the cheapest BRIC market, with a price/earnings ratio that is less than eight times, a fraction of India’s 19 times 2011 forward valuation multiple. Yet oil lags gold or agriculture commodities and OPEC quota discipline is still enough to sustain a $70-85 trading range on crude oil. Unless the US slips into a double dip recession, crude oil and the Russian rouble will not collapse, the market’s nightmare in 1998 and 2008. The world’s fund managers

The author is a renowned investment

banker based in Dubai

TRENDSKremlin borrows money in the Eurobond market for the first time since the Yeltsin rouble debt default in 1998

Thai refiner PTT, Bangkok Bank may lead a bull run in 2011

Turkish valuations are no longer dirt cheap at 2.2 times book value and 10 times earnings

are still grossly underweighing Russia at a time when corporate earnings growth is at least 25 per cent next year. The Kremlin has borrowed money in the Eurobond market for the first time since the Yeltsin rouble debt default in August 1998 and President Medvedev is determined to attract FDI via judicial reform. Russian oil companies Rosneft and Lukoil are among the cheapest natural resource companies on the planet. Russia’s de facto banking champion Sberbank can well deliver 50 per cent EPS growth even as it trades at less than two times book value. An alternative is the Russian ETF listed in New York (symbol RSX), which

has 30 per cent upside next year and can be bought on any correction.

Turkish delightTurkey has been among the most popular emerging markets among fund managers since the trauma of 2008. Istanbul’s ISE-100 index has more than doubled since it bottomed in March 2009. Economic growth momentum and industrial production both suggests that Turkey will continue to attract hot money interested in investing in high growth, domestic demand oriented emerging markets. However, political risk is rising in Turkey as the Erdogan government faces an election in March 2011 even as Kurdish secessionist rebels in eastern Anatolia escalate violent attacks on Turkish military garrisons. The next Turkish election is significant because it is the first election since 2002 where the AKP could well lose its huge single party majority. This event could well trigger an offshore money exodus from the Istanbul stock exchange. The AKP could well succumb to the temptation for pre election populist spending. Turkish valuations are no longer dirt cheap at 2.2 times book value and 10

PERISCOPE

times earnings, a significant premium to Russia. However, the easy money has been made in Turkish equities.

Book profitsIndia is the most expensive emerging market in the world, at four times 2011 book value and 19 times forward earnings. Hot money (FII in polite company) inflows total $10bn in September and October alone. This is boosted by stock index arbitrage (long cash/short single scrip futures). However, Dalal Street is now exposed to FII outflows to a far greater degree than during the market peak in January 2008. The Sensex is now in the danger zone though new FII inflows could well take us to 22,000 by year end.

However, I would sell Indian equities on any rallies. The offshore liquidity tidal wave depended on a rising rupee but the RBI has made no secret of its determination to intervene. This scenario will trigger a short, sharp correction in Indian equities.

India luresDomestic funds have begun to take profits in India, particularly in second tier, illiquid or high beta shares. PSU banks, consumer staples (Nestle at 40 times earnings), capital goods producers are unjustifiably expensive. It is premature to short India as long as global risk appetite remains robust and the Fed, ECB or major world central banks do not raise

interest rates. However, hot money driven market bull runs eventually end in tears. Let investors not forget the lesson of 2008-9, when the Sensex plummeted from 21,000 to 8,000 in the post-Lehman global panic though the Indian economy did not go into recession. Hot money, not economic or political climate, determines India’s valuation.

Thailand was Southeast Asia’s Cinderella market until the May 2010 military crackdown on pro-Thaksin red shirt protestors on the streets of Bangkok. Yet political risk in Thailand has not prevented a 30 per cent summer rally in the SET index. The Thai baht has regained its 1997 level against

the dollar. I think Thailand could well be the winner Asian emerging market of 2011 as the rally has been powered by local, not foreign money. The world’s fund manger universe is still underweight Thailand, haunted by memories of past capital controls, coup d’état and political violence. After all, the SET index plunged by 19 per cent in December 2006 when Bangkok imposed capital controls to combat baht strength.

Thailand is cheap at 12 times earnings and offers 18-20 per cent earnings growth next year and GDP growth could well accelerate to nine per cent. Thai refiner PTT and Bangkok Bank could well lead a bull run in 2011.

68 November 2010

The Landmark Group has announced the launch of its Beat Diabetes initiative in Oman. What are the activities that have been planned as a part of the initiative?The Beat Diabetes campaign was launched in 2009 by the Landmark Group in the UAE as a walkathon. As a part of the walkathon, testing stations were set up on the way and a large media campaign about the growing incidence of diabetes took place. As we are one of the largest retailing chains in the region, we have the ability to talk to a lot of people and the board of the Landmark group decided to focus on this one concern. From media reports and government officials we found that diabetes is a growing health hazard in the region and decided to launch this campaign.

As a first step in a series of initiatives, we are organising a 2.1 kms walkathon on November 12, 2010, starting and ending at Centrepoint - Ruwi. As a part of the campaign we will offer free testing and information on how to prevent and combat diabetes. A large number of people who are afflicted by type 2 diabetes are not even aware of the disease and so this is an opportunity for them to get themselves checked. Prevention is better than cure and if detected early, diabetes can be managed much more easily.

Has the Beat Diabetes campaign been launched in other parts of the region?It was launched in the UAE last year and this year we are launching it in five countries – Kuwait, Qatar, Bahrain, Oman and India. We are working very closely with the Ministry of Health in

Oman. The World Diabetes Day is on November 14 and so all activities are planned around it.

What kind of help are you getting from Oman’s Ministry of Health? When we approached the Ministry of Health they were fully supportive of the initiative. The ministry has done a lot of work on diabetes and they fully appreciate the need for education and to raise awareness about the disease. According to their figures 10 years ago 8.5 per cent of Oman’s population suffered from diabetes. The unofficial figure is that 15 per cent of the people in Oman suffer from diabetes now. If you take into account the fact that there has been a rise in the population, then the actual number of people suffering from the disease has become quite high. Type 2 Diabetes is mainly a lifestyle disease and major contributing causes are poor eating habits and lack of exercise.

How will you create awareness about

the campaign and the disease?Apart from the walkathon we will be speaking to the media. In addition, we will be creating awareness through our own stores and with the help of our partners we will be educating people throughout the year. We are keen to tie up with like-minded businesses, to create mobile testing facilities. Though we are starting off in Muscat we will be making these Oman-wide campaigns similar to the the Landmark group’s Pan Arab campaign. At the walkathon we expect several thousand people to turn up and some local celebrities will also join in. Registration forms for the walkathon are available at the customer service counters in all Landmark group stores in Oman, and customers can register themselves. On registering themselves participants will get a registration ID sticker. On the day of the walkathon they can present this sticker and get the kit (T-shirts and caps). We would ask people to read the available literature about diabetes, listen to the advice of medical professionals and work towards reducing the incidence of the disease. The testing will be done by accredited medical professionals. In the UAE 7,000 people have already been tested since 2009 free of charge.

Most businesses have been impacted to some extent by the global financial crisis. How have you fared in the last couple of years?It has been a challenging time throughout the world but in Oman the Landmark Group has weathered the storm well. We offer a range of goods that is difficult to match by any other retailer and these are offered at very competitive prices. Our buyers and merchandisers based

SOCIAL CONSCIENCEClive Freeman, Territory Head, Landmark Group, Oman speaks

about the recently launched Beat Diabetes campaign and the upcoming

walkathon to Mayank Singh

LANDMARK GROUP – AT A GLANCEStores: 900

Retailing area: 13 million square feet

Presence: Middle East, India, Egypt, Turkey, Yemen, Pakistan

Employs: 32,000 employees

RETAIL

69November 2010

in Dubai work very hard on getting the right products at the right time.

Customers became a bit cautious about spending in the last couple of months, did you find the same trend in retailing as well? Over the last two years consumers have become more cautious in their spending habits, particularly when purchasing large ticket items. Retailers generally have responded by creating more promotions and offers in an attempt to stimulate sales. The Landmark Group has always worked on a philosophy of the widest range of product at highly competitive prices and this has helped us in good stand through the crises. This year we are beginning to see increased footfalls in the business, however some caution still remain.

Did you change the way you did business to combat the slowdown? Like all businesses we have revised our operations to improve efficiency, however this has not held us back in our plans. As a group we are always looking to expand and will continue to do so.

On the product side we have excellent team who are always sourcing and developing new products for our business. We listen to our customer needs, source and deliver the product to our stores and are always striving to move forward. We never stand still and are always developing areas of our business to improve product offering, customer service and operational efficiencies.

Supply chain management is an important part of the retailing business. How do you manage this key component? We have just signed a deal to build a 25,000 sq mtr warehouse. Thus we are bringing in new modern warehousing systems. Oman is quite challenging because of the low population of the country in comparison to its geographical size. A town like Salalah is a 1,000 kms away from Muscat and so logistics becomes a key part of one’s business. Our new facility will bring in modern logistics facilities which will see us through the next 15 years. We expect the facility to be up and running in the next 18 months.

70 November 2010

OLIVER CORNOCK

Oman’s position at the heart of major trade routes between Asia,

Africa, and the Middle East has made it a shipping hub for millennia. But there are changes afoot in this ancient sector – changes which have the potential to fundamentally alter the Sultanate’s position in world markets and the underlying economy of the Sultanate itself.

Broadly speaking, Oman’s government has made a significant commitment to developing the country’s transportation networks, providing a sophisticated grid for the movement of goods throughout the second largest country in the GCC. In keeping with the Sultanate’s desire to become a fully diversified and sustainable economy by 2020, the air, rail, road and – most extensively – port upgrades should make the Sultanate ever more successful at handling the transport demands of its growing population, as well as add much more to its development plans.

The projects, most of which were initiated as part of the ‘Vision 2020’ in the course of the seventh five year development plan, are projected to be complete by 2017. The latest batch was announced in July, when 15

agreements were signed by the Ministry of Transport and Communications to fund projects worth a total of RO136.9mn.

AT THE CROSSROADSBut other countries in the region have undertaken infrastructural upgrades, I hear you say. Qatar and the UAE have state-of-the-art airports, Saudi Arabia has some good train networks and Dubai even has a metro. What makes Oman’s new transport network so revolutionary? The reason is as simple as a grammar school class: namely, geography.

Oman, as previously mentioned, sits at the crossroads of three continents. Even more importantly, in a globalised economy which relies heavily on shipping, it sits at the junction of three strategically significant bodies of water: the Arabian Gulf, the Gulf of Oman, and the Arabian Sea. And most important of all, it borders the Straits of Hormuz.

This funnel, through which 40 per cent of the world’s seaborne oil passes every year, is, without a doubt, crucial to global energy supplies. It is also vital to the fast-growing economies of the Gulf countries as the artery through which the bulk of their imports

and exports must pass. If, for any reason, the Straits were to become unnavigable, overland travel through the Sultanate would become the natural, if not only, choice for transporting goods in and out of this region.

SENSIBLE ALTERNATIVEThe mysterious damage to the Japanese oil tanker M Star on July 28 heightened awareness of the vulnerability of ships passing through the Straits. A week after the incident, an al-Qaeda affiliate known as the Abdullah Azzam Brigades claimed the explosion, which left a large dent on the hull of the tanker was the result of an attack by one of their suicide bombers.

While the damage was, in the end, not life-threatening, the news sent shock waves through the shipping industry. It is important not to blow this event out of proportion, but the fact remains that the Straits are a mere 21 miles across and there is a chance, however small, that this waterway could become impassable for a non-trivial period of time.

If that were to happen, goods would have three main avenues in and out of the GCC. Goods coming from or destined for Central Asia, the

Transport tune-upIn a globalised economy which relies heavily on shipping, Oman’s infrastructural upgrades ensure that it will continue to be a desirable shipment and transshipment hub well into the future

The author is Regional Editor,Oxford Business

Group

ECONOMY

Caucasus, and Turkey could make their way through Kuwait and on through Iraq. Goods sourced or bound for Europe could go out from Saudi Arabia’s red sea ports and onto the Mediterranean (though the amount of time this would take would be unsuitable for food and other time-dependent items).

But for trade with Africa, the Americas, and, crucially, Asia, the only sensible option would be to pass through Oman.

PORT UPGRADESSohar port, located on the northeast shore of the Sultanate on the Gulf of Oman, is a natural choice

for much of this trade, and current improvements will make it all the more fit. The existing berths at the port are, on average, 18.5m deep. In addition, Sohar is the first port set to be connected to the upcoming Oman National Railway and, eventually, the GCC-wide train network.

It is also undergoing a significant capacity expansion to keep up with projected demand. Nearly 85 per cent of the land allocated to the company that runs the port – a 50-50 joint venture between the government of Oman and the Dutch Port of Rotterdam – in its original concession is currently leased, which led the company to seek

additional land. Granted earlier this year, the expanded concession will start development with a 500 hectare Phase I.

DUQM DEVELOPMENTAn additional boost should come from the massive development project at Al Duqm, halfway down the Omani coast between Muscat and Salalah.

This project, which aims to create a fully-fledged industrial city and major port, is well on its way to coming to fruition, with construction of the region’s largest dry docking facilities due to be complete by 2010 and the feasibility studies under way

for a massive pipeline to bring gas and oil from Saudi Arabia. Al Duqm’s location, as the closest port to the vast natural gas fields of Saudi Arabia’s Eastern Region, hold tremendous potential both as an industrial centre – powered by economical natural gas – and a shipping hub.

Of course, it is hoped that Oman will never have to become the trading artery that bridges the GCC and Asia, Africa, and the Americas. Regardless, Oman’s infrastructural upgrades ensure that it will continue to be a desirable shipment and transshipment hub well into the future.

74 November 2010

The new GCC roadmap of cooperating with new regional blocs will enhance its economic choices and rectify the traditional trade imbalance that these countries have suffered from

Broadbasing its choices

DR JASIM HUSAIN ALI

The author is an eminent economist

and Member of Parliament, Bahrain

(jasim.husain@gmail.com) Bahrain is s p e a r h e a d i n g efforts to forge closer ties between Gulf Cooperation

Council (GCC) countries and other regional blocs, and for noble reasons. This is happening ahead of a Bahraini candidate, public security chief Abdul Latif bin Rashid Al-Zayani, assuming the rotating chair of secretary-general of GCC. Al-Zayani would take over his job from Qatari Abdulrahman Al-Atiyyah after winning endorsement from the 31st summit scheduled to take place in Abu Dhabi towards end-2010.

Putting the new vision to work, GCC foreign ministers met in Manama in late June to discuss a Bahraini roadmap for the group, which amongst others call for economic-cooperation with regional economic blocs and a joint action over human rights. Undoubtedly, it makes every sense for GCC officials to explore fresh ways every now and then in order to strengthen the group’s position on a global level in an ever-changing socio-economic and socio-political landscape.

Reaching outBahrain first offered the roadmap during GCC summit in Kuwait in late 2009, and ostensibly used the first half of 2010 to explore some of its key proposals. For example, Bahrain Foreign Minister Sheikh Khalid bin Ahmed bin Mohammed Al-Khalifa has spent a considerable amount of time talking to officials from the Association of South-East Nations (Asean). Not surprisingly, strengthening economic ties of six-nation GCC with 10-nation Asean is a key component of Bahrain’s roadmap. Certainly, reaching out to Asean neatly fits the GCC’s efforts of spiraling presence in south-east Asia at large. To be sure, GCC’s first ever deal with any nation was signed in late 2008 with Asean-member Singapore.

Reinforcing economic cooperation with Asean falls in line with newly-founded drive in GCC for reaching out to diverse economic blocs. Earlier this year, GCC signed a memorandum of understanding on commercial and economic cooperation with 19-member Common Market for Eastern and Southern Africa (Comesa), the

first with an African grouping. In 2009 GCC signed a free trade agreement (FTA) with the European Free Trade Association (EFTA), the first such deal with a regional bloc. EFTA comprises Switzerland, Norway, Iceland and Liechtenstein.

Reviving talks with EU Another piece of good news relates to resumption in June 2010 of an annual economic dialogue between GCC and European Union. The last time the two sides had such a dialogue was in 2003. Meeting in Brussels, representatives from EU and GCC discussed three major issues, the first being consequences of the global financial crisis and lessons from the experiences of both sides in addressing the debacle. The second topic concerned comparing notes on implementation of common market projects in both entities. In retrospect, GCC commenced implementation of Gulf Common Market (GCM) project in 2008, in turn designed to allow free flow of factors of production in member countries. Yet, the third item on the agenda related to EU’s handling of Greece’s debt problem.

FDI FLOWS IN 2008

From

GCC

to E

U:

€63.

2bn

From

EU

coun

tries

to

GCC:

€18

.9bn

CLOSE UP

It is probably fair to assume that the EU side felt obliged to engage GCC in the aftermath of Greece’s problem, which amongst others brought about pressures on the value of Euro, in turn a currency for some 16 EU members. Possibly, EU needs access to GCC markets and investments nowadays in order to help addressing its own problems resulting from Greece’s debt crisis. All said and done, the two sides agreed on the need to continue the dialogue with the eventual aim of signing an FTA between the two blocs.

Looking back, the GCC’s General Secretariat suspended talks with the EU in late 2008 in order to signal its displeasure with derailed negotiations. The decision was supposedly designed to apply pressures on the EU in order to modify its conditions prior to singing a

deal with the GCC.

Addressing EU demandsYet, EU countries insist on addressing issues related to human rights and democracy as precondition for signing a trade accord with GCC states. In addition they also insist on the proliferation of democratic teachings in the GCC.

On their part, GCC states demand removal of customs charges on aluminum and petrochemicals products. The EU imposes a six per cent customs duty on imports of aluminum from the GCC. However, the EU remains weary of governmental support such as under-priced gas to GCC producers, a matter that grants them unfair advantage against their European counterparts notably countries joining since 2004. Some 12 countries

joined the EU in a span of five years including Romania, Poland, Hungary and the Czech Republic.

Needless to say, it is to GCC’s advantage to conclude a deal with the EU, in turn the largest trading partner for regional countries. The EU has a comfortable surplus in its trade account with GCC countries. At the same, it is increasingly emerging as a primary receiver of foreign direct investments (FDI) from GCC states. Official EU statistical sources put the amount of FDI from GCC in 27-member bloc at 63.2 billion Euros in 2008. Conversely, EU countries pumped merely 18.9 billion Euros to GCC economies in the same period. Yet, GCC’s appetite for investments in EU members remains as steady as ever, a case in point being the

decision by a sovereign Qatari fund to purchase Harrods for some $2.2bn.

Clearly, lack of FTA between the sides is to EU’s advantage by virtue of enjoying surpluses in trade and investments. As such, GCC countries need to have unrestricted access to EU countries, in turn the largest economic bloc in the world.

Undoubtedly, time is ripe for GCC to reach out to different economic blocs and countries. GCC countries have started free trade talks with Japan, China, South Korea, and Pakistan plus Australia and New Zealand. Also, Turkey and Iran are pushing for separate trade deals with the GCC as a group. In the age of globalisation, economic cooperation with others is the only way forward, with GCC being no exception.

76 November 2010

You have had prior work experience in SME financing in Oman, what made you come back to the Sultanate?I am very keen on small business finance and on Oman. I enjoyed my time here and found the country and people to be very hospitable towards business. I have been working on small businesses throughout my life. I worked in the US as a member of the credit administration of the largest SME lender in the country, and then overseas mostly in Europe, Middle East and parts of the former Soviet Union. All of these assignments have been with regards to small business lending with banks and non banking

finance companies. I have worked as a consultant for a US consultancy group which provided services to the European Bank for Reconstruction and Development (EBRD) on various projects. I would go into a bank which had EBRD financing and set up a loan programme, train loan officers, look at the credit risk, manage the procedures and change these. I studied finance and have an MBA from the University of Chicago, US. GroFin is the fund manager for Intilaaqah and it manages the funds that Shell has given to the Sultanate of Oman. Shell gave $10mn in 2005 and that was when GroFin based in South Africa was hired to manage the fund. Our

mission is to create jobs in Oman and we do that by strengthening the SME market in Oman and by making loans available to small businesses in Oman. But it is more than money as Intilaaqah also gives business development support. So it is an integrated package of finance and advisory solutions.

You were a member of the team that helped set up Al Wathbah, the SME lending arm of BankMuscat. What are your views on SME financing in Oman?The support being given to small businesses in Oman is very impressive and BankMuscat has been a leader in

INTERVIEW

AN INTEGRATED APPROACH

William R Crew, General

Manager, GroFin/Intilaaqah

shares his views on promoting

entrepreneurship and the

challenge posed by ingrained

mindsets with Mayank Singh

in an exclusive interview.

Excerpts:

FACE2FACE

78 November 2010

developing a platform that is sensitive to small businesses and they are very serious about growing small businesses in the Sultanate. The bank did a lot of research in the market and tailored products to suit the needs of small businesses.

What are your plans for Oman and what else are you planning to do that has not been done as yet?These are exciting times as Shell has given an additional $7mn gift to the nation and with that we are integrating Intilaaqah’s training programme and the investment fund. This advisory services will enable us to bring the funding, advisory services, and SME training under the same roof. Historically the training has been classroom training but now it is going to be online and faster. The training will continue to be offered to all SMEs in general, even those who do not received financing from the fund. Thus we are making the package bigger with Shell’s recent offering to the nation.

What is the nature of the money given by Intilaaqah to SMEs, is it a loan or a grant? It is a loan on commercial terms. However, it is much more than money. Intilaaqah advisory and training helps Omani entrepreneurs and SMEs to continue being successful and profitable.

How much is the difference between the loan rates between a commercial bank and the loan given by Intilaaqah?Our financing is based upon cashflow, not collateral. Hence we take on a bit more risk than the normal commercial bank. This increase in risk and the additional advisory services price Intilaaqah somewhat above the commercial SME rate for a loan which has collateral coverage of 100-200 per cent, that is, a secured bank loan. In the case of banks there is always going to be an annual fee, a statement fee and like a bank we also charge a fee for our services; it is hard to pinpoint a number, but we are looking into that now. A bank is always going to want real estate as collateral, but we look at cash flow as it allows the entrepreneur to run his business. In terms of collateral we take personal guarantees, a pledge against business assets and also real estate but we do not take 100 per cent coverage. So that’s how we compete

with banks.

In any country, SMEs are the main job creators. Do you think that this model can be replicated in Oman?Entrepreneurship is the way to go and Oman is doing a lot to support that. I recently read a study which suggested that families in the GCC prefer that their children work for the government versus starting their own business and this is understandable as around 75 per cent of all businesses fail in three years globally. So this may be a reason as to why families want their children to go into the government sector or large corporations. The challenge is to change perceptions about what it means to be an entrepreneur.

Your corpus has doubled, and a certain amount of awareness about entrepreneurship has been generated in Oman. How do you plan to take this forward?Our advisory service and Intilaaqah

training programme are a service in itself and because of this we increase the probability of success of a business. My message to the market is, working with us decreases the probability of failure. In the US many presidents have failed multiple times but they have still gone on to become presidents. If they had stopped with one failure they would not have succeeded. Oman too would be having many such stories and it is important to highlight such stories as we move forward with the new Intilaaqah.

What kind of handholding would you be doing with these entrepreneurs?We monitor the financial health of every client regularly. They submit to us their management account on a monthly basis and audited accounts on an annual basis. We look for business risks, for example if the account receivables are increasing then it means that clients are not receiving debtor payments in a timely manner. So we will sit down with our clients to analyse these risks and to come up with a plan to mitigate them. I was in the interiors this week and found a client who was facing a lot of challenges, so we sat with him and looked at his marketing plan. He is a good entrepreneur but as they say two heads are better than one, so we are in a position to work as an outside consultant. We may be in a position to see things a bit differently than the way that an entrepreneur may see them and together we may be able to come up with a few new ideas. We also make daily connections between our clients and people whom we know using our network.

On what basis do you decide to lend money to clients. Is it their business plan or the spark that you see in them etc?As stated we always look at the ability of a business to generate cash and we judge that ability, by looking at the entrepreneur. The No. 1 criteria is the entrepreneur, his or her managerial experience, commitment to the business and this is more experience versus education. We always look at a CV as past experience gives us an idea as to whether an individual can manage his business and create enough cash flow to pay Intilaaqah, suppliers and to take money out for his family.

A TIMELINE1995: Shell launched Intilaaqah dedicated towards creating awareness about entrepreneurship and training locals to start their own business

2005: Shell launched Intilaaqah Enterprise Fund (IEF) $10mn to support SMEs

2010: Shell merged Intilaaqah and IEF under the brand name Intilaaqah and signed an agreement with GroFin to manage the programme

2010: Shell added an additional $7mn to the fund

Our advisory service and Intilaaqah training programme are a service in itself and because of this we increase the probability of success of a business

FACE2FACE

80 November 2010

Acompany looking to strengthen its cash position can either opt to enhance its capital base through an equity raising or it

can satisfy its funding needs through debt financing. Each of equity funding and debt financing can be structured in different ways. The most common ways are described below.

The obvious distinction between equity funding and debt financing is that equity investors put in cash in exchange for shares in the company (partial ownership) and receive a dividend as a return on their investment if the company generates profits and adequate reserves have been put aside. It is ultimately the majority shareholders’ prerogative to decide whether a dividend is to be distributed to all shareholders pro rata to their equity participation in the company or whether profits are to be retained within the company for working capital needs or future capital expenditure or otherwise as decided by the management of the company.

Debt investors, in contrast, are stakeholders in the company (no partial ownership) with a risk profile that is different from that of the shareholders. Lenders are focused on immediate cash generation within the company whereas shareholders, ideally, are more concerned with the long-term growth of the company. This is because lenders advance funds to a company on the understanding that they will be repaid their principal in full at a pre-agreed time (if one bullet repayment is to be made at the end of the loan) or on regular intervals (if the

FINANCING STRUCTURESAny shares not subscribed to by a shareholder may only be subscribed by other

shareholders of the company in proportion to shares owned by each of them

LEGAL

By Dr Caroline BolleSenior Associate, Al Alawi & Co., Advocates & Legal Consultants

loan is an amortising loan) together with interest payments at regular intervals throughout the life of the loan. Interest may be fixed or floating but does not vary depending on the profits generated by the company and reflects the level of risk that a lender assumes by advancing the funds and is also driven by international debt market forces.

Equity fundingA company may raise additional equity through a capital increase. Increasing the capital requires the unanimous approval of the shareholders of the company and entitles the shareholders to subscribe for the new shares pro rata to their existing participation in the company so as to avoid any dilution of their participation. Any shares not subscribed to by a shareholder of the company may only be subscribed by the other shareholders

of the company in proportion to the shares owned by each of them. Only if all shareholders agree, and subject to a no-objection and waiver of pre-emption rights by all existing shareholders, can a new shareholder invest in the company and subscribe to the new shares, but the management cannot generally solicit the public without violating the capital markets laws and regulations.

Only public joint stock companies have access to the capital markets and can raise capital through a public offering of securities or a private placement of shares. A recent example of an initial public offering is the Nawras IPO in which Omani Qatari Telecommunications Company SAOG (under transformation) issued 260,377,690 shares to the public. Going public will submit a company to the rules and regulations issued by the Capital Market Authority and the Muscat Securities Market and will install a higher level of transparency and disclosure on the company than is the case for private or closed companies.

Debt raisingBy far the most common type of debt financing is a straightforward loan secured against the assets of the company. Other types of financing, such as overdrafts, factoring, letters of credit, export credit finance, project finance, etc. may also be available to certain types of businesses.

A loan in its simple form is evidenced by an agreement setting out the principal amount borrowed, the repayment schedule, the interest and the interest payment dates. If there is only one lender which is party to the loan agreement, this

LEGAL

is referred to as a bilateral loan. Where multiple lenders provide financing to a company and are a party to the same agreement a syndicate of lenders is formed and the loan is referred to as a syndicated loan. Syndication will be necessary where a company’s borrowing needs exceed the borrowing capacity of any single lender (bearing in mind that lenders look for a diversified portfolio of loans and may therefore prefer to take a smaller participation in a loan).

A loan is a secured loan if the lenders have direct recourse against the assets of the company in priority to the other creditors of the company. To create priority in rank, the security interest must be registered with the appropriate governmental authority in Oman.

Although most lenders prefer to be fully secured and to rank first in priority, there is another class of investors, called subordinated investors or mezzanine lenders. Subordinated lenders may have

the benefit of security but agree to be paid in priority after any senior lenders have been paid in full. The right to payment of principal and interest of subordinated lenders will typically be subject to payments under the senior loans having been properly made and subordinated lenders will not be able to take any enforcement action ahead of the senior lenders or without the consent of the senior lenders. The contractual arrangements between the various types of lenders (senior and subordinated) are typically set out in an intercreditor arrangement. The intercreditor agreement will contain what is called a payment waterfall clause, contractually cementing that payments of fees, costs, expenses, principal and interest must first be made to the senior lenders. Once the senior lenders have been paid in full, payments can be made to the subordinated lenders, with any remaining proceeds being payable to the most junior lenders and ultimately to the borrower.

Similarly to tapping the capital markets

for equity share capital through a public offering or private placement, public joint stock companies can tap the debt capital markets through the issue of bonds. A bond is a debt instrument in the form of a security, entitling the holder of the bond to repayment of principal plus interest. Interest is either paid at the end (a so-called zero-coupon bond) or is paid in regular installments (coupon).

ConclusionThe effect that an equity raising or a debt financing has on a company is substantially different as shareholders will, ideally, be focused on long-term equity growth and generation of profits, while debt investors will be concerned about the immediate generation of cash flow in order to make payments of principal and interest at pre-agreed times. However, both types of financing structures will strengthen a company’s balance sheet and make available the necessary funds to finance the company’s operations.

82 November 2010

Urban development is on this year’s Muscat Youth Summit agenda. How will globalisation impact on our cities?In simple terms, globalisation is being driven by mass communications. For example, today’s communications makes it possible for a Manchester-based bank to deal with its customers through a call centre in Mumbai, or for a Parisian sportswear company to design its products in Lyon, make them in Hanoi and sell them in Boston.

Mass communications have made even the farthest-flung place in the world just a mobile phone call away. The Pulitzer

Prize-winning foreign affairs columnist Thomas L Friedman famously said ‘the world is flat’ – that’s so true these days.

Globalisation can be seen as a positive, negative or even marginal process. And regardless of whether it works for good or ill, globalisation is here to stay and it goes without saying that every Omani village, town and city is affected by it. Indeed, it’s shaping Oman’s economy, business community, education system, healthcare, retail, entertainment and cuisine. It’s driving structural change and influencing the sultanate’s demographics – more people than ever are now living in urban areas. In fact, globalisation

is making cities right across the world more important as hubs of economic activity. And from a local perspective, globalisation will also make some Omani cities more important than others in driving the sultanate’s growth.

Urban development and the environment is another issue of concern and will be tabled for discussion at the Summit. Clearly the world needs to reduce its carbon footprint, and cities – as incubators for change – offer a variety of environmentally sensitive strategies for transport and how people can live or conduct their business. Many cities around the world are reducing their reliance on

HH Sayyid Faisal al Turki, COO

of Brand Oman Management Unit

speaks about youth entrepreneurship,

innovation, branding and urban

development. Excerpts from

an interview:

BRANDING THE FUTURE

INTERVIEW

83November 2010

the car but already cities consume 75 per cent of the world’s energy supply and contribute an almost equal amount of the world’s carbon emissions, so a small change in environmental policies and behaviour in cities can have a dramatic effect on the planet’s well-being.

We also need to look to other cities for inspiration. For example, congestion charging in New York wouldn’t have worked if London hadn’t shown the way. Mexico City’s Metrobús is an outstanding success that was inspired by Bogota’s Transmilenio. What will cities learn from how London hosts the 2012 Olympics, how they’ve invested in public spaces and regenerated sections of the capital’s famous East End?

How important is it that we brand our cities and work in partnership with other cities?The urban environment is something that affects all of us. Cities are where most of us live, work and socialise. What kind of urban environment do we want to live in? Are those who live in some remote and soulless suburbs people like us? Do we want to drive everyday for two hours in traffic to an office in a central business district? Do we want to shop in a local and family-run corner shop that offers us local produce or in a vast hypermarket where our every need can be met in a sanitised safe environment?

These days more and more people want to live and work in lively mixed-use, multi-cultural cities, bustling with life, full of independent businesses and creative people. Places that have an authenticity that comes from a deep history rather than from the architect’s office. Somewhere where you can meet people from every corner of the world and walk of life but where you can be anonymous if you wish. We’ll be challenging the Muscat Youth Summit participants to tell us what kind of city they want to live, work and play in.

On attracting business and travellers, let’s be honest. Whether you live in Muscat, Mumbai, Manchester or Melbourne, every city has a brand. Having said that, only a few cities actively pursue forming their brand to reflect how they want to be perceived. Just flick through the pages of any international business magazine

and you’ll see how some cities are going about this – branding themselves as: clean, green, safe, fun, historic, business-friendly, welcoming, beautiful, friendly, relaxing and modern.

I’m a great believer in the fact that a city’s design, planning, development and branding reflects its values and those of its residents. Moreover, the culture and structure of a city are shaped by the experience, aspirations and desires of its citizens. These aren’t things that can be invented – to be successful a city’s brand has to describe it – not prescribe how it should be.

But the built environment alone doesn’t define a city: perception is crucial and attitude can be everything when it comes to attracting talent, travellers and urban investment. In simple terms, the way in which Oman’s cities are branded and built has a profound impact on the people who live there and the ones we’re looking to attract.

There’s no silver bullet or magic formula to becoming a successful city. Instead, successful cities are built on a distinctive economic and social history, physical environment and geography, as well as links with nearby cities, social and economic connections that help them adapt to the changing global economy.

For example, Muscat’s relationship and proximity to other regional and international cities has a significant influence on its opportunities for economic development and sustainability.

We hear a lot about the knowledge economy and the importance of innovation and entrepreneurship – topics that were discussed at Brand

Oman’s recent ‘Inside Stories’ seminar. It’s also another Muscat Youth Summit topic. What’s your take on youth entrepreneurship and encouraging small business development?In my view, youth entrepreneurship is intrinsically linked to national competitiveness, an issue Brand Oman is concerned with. In this regard, and in partnership with, UNESCO and the Ministry of Education we run the annual Muscat Youth Summit.

This year’s three-day residential programme will host a series of workshops on youth entrepreneurship, sessions delivered by representatives from The Prince’s Youth Business International, the Commonwealth Secretariat, Injaz, The Young Foundation, Intilaaqah and Knowledge Horizon. It’s through this type of exposure that we’re looking to encourage Summit participants – aged 15 to 24 - to become entrepreneurs or entrepreneurial thinkers. Hopefully, we’ll achieve this by immersing them in real life learning experiences where they can take risks, manage the results and learn from the outcomes. It’s a step in the right direction.

Perhaps people don’t realise the size of the world’s youth population and its importance to the global economy. The World Bank estimates that by 2015 – target year for the Millennium Development Goals – there’ll be 3 billion people in the world under the age of 25.

Encouraging and facilitating new business formation is one of the most important economic and social activities that Oman can be involved in. We recognise that start-ups, small and medium-sized firms are growing in importance. They create the all important new jobs; contribute to the nation’s GDP; produce innovations; account for a large portion of sales; and employ large numbers of high tech workers - such as scientists, engineers and computer workers. Entrepreneurship isn’t something special that a few people are born with, it’s a way of thinking that can be nurtured – this is what we want Summit’s participants to understand. Indeed, it’s a culture we’re looking to promote amongst Oman’s youth.

If we’re serious about taking Oman’s economy forward, we need to focus more of our energy on helping young entrepreneurs

84 November 2010

Adnan Haroon, HSBC Oman’s Financial Controller, has recently been to the lush green Witham Woods in the heart of Upper Thames in Oxfordshire to attend an employee engagement programme on

climate change as part of HSBC climate partnership. Having spent a week among a team of scientists and volunteers from Earthwatch and visiting the pristine English forests to examine the long term impact of a changing climate on forest ecosystems, he came back armed with the very latest scientific information about climate change and the ideas and inspiration to tackle it. In a candid interview to OER, Haroon explained the objectives and goals of HSBC’s climate partnership programme and its importance in formulating scientific and well-planned measures to understand and counter the repercussions of climate change on our planet earth.

A $100mn, five-year programme, the HSBC Climate Partnership brings together HSBC, Earthwatch Institute, The Climate Group, Smithsonian Tropical Research Institute and WWF to tackle the urgent threat of climate change on people, water, forests and cities. Started in 2007, the partnership focuses on creating cleaner and greener cities, protecting world’s major rivers and the livelihoods of people, conducting field experiments on the long-term effects of climate change and creating ‘climate champions’ worldwide who will undertake research and bring back valuable knowledge and experience to their workplace and communities.

“The partnership is not all about the money that we give to the four international NGOs to implement the projects; but it’s a broader five-year commitment wherein more than 2,000 selected employees will visit and participate in the activities including discussions with scientists and action planning sessions to further their understanding of climate change,” says Haroon. “Back to their work place, these people can develop projects that further HSBC’s commitment to sustainability.”

Haroon says creating awareness is very important.

FOR A GREEN CAUSEHSBC Climate Partnership aims to combat the urgent threat of climate change by inspiring action by individuals, businesses and governments worldwide, reports Muhammed Nafie

ENVIRONMENT

Adnan Haroon, HSBC Oman’s Financial Controller

85November 2010

HSBC operates in more than 80 countries and territories and has over 100 million customers; if 2,000 employees across the globe coming back from the workshop could meet 300,000 employees and 100 million customers, the message can be conveyed to a great number of people. It can bring about a huge change. “No organisation can address the world’s problems alone but we believe HSBC has an important part to play. With around 9,500 offices worldwide, small change can make a big difference,” he says.

Earthwatch is working with HSBC to help their employees learn more about climate change, what it means to the business and what they can do to combat it. Its five-year global programme of forest research focuses on the impact of climate change on temperate and tropical forests. “In five regional climate centres set up in China, India, Latin America, North America and Europe, scientists, supported by local community members and HSBC employees, will carry out field work on forest conservation which will enable forest managers, conservationists and communities to understand how forests are responding to climate change and how they can better manage them, he explains.

Haroon was selected to participate in the workshop on the basis of some criteria and commendable in-house environment-friendly measures he has introduced at his department. “We had a big area which was almost messy with lots of papers. We had a lot of reports some which were not read at all. I reviewed all reports and introduced some rationalisation. We stopped printing some reports and started using double-side printers. By spending an additional RO20, you can save a lot of paper. Besides, we

MB HOLDING COMPANY LLC

discourage use of hardcopies for internal communication and make use of internal servers instead to send them across. We also accord more importance to planting trees and encourage all our employees to voluntarily adher to the disciplines of switching off lights and printers after use,” he says.

The seven-day stay in Oxfordshire, where HSBC’s Europe regional centre is situated, included workshops, presentations on various topics related to climate change and visits to the forest. “We spent four days in the forests watching trees. We are told how old they were and how changes in climate were going to affect them. The Earthwatch is doing research on the entire fauna and flora in the forest including the fallen leaves, which, they said, still produce oxygen. That is why millipedes and centipedes still feed on them. They warn climate change will greatly affect the entire organics system,” Haroon says.

Haroon makes it clear that HSBC is committed to the initiative taken by the government for environmental and energy conservation. “We are part of Oman Green team, dedicated to extending the bank’s environmental awareness and conservation efforts to suppliers, employees and wider stake

holders. The government is doing a lot more in this regard. The announcement of His Majesty Sultan Qaboos bin Said to cultivate one million palm saplings across the country and the recent Royal orders to plant 100,000 coconut trees in the Governorate of Dhofar will undoubtedly contribute to increasing the green cover of the country. In the workshop, they have little knowledge about the initiatives we have taken for natural conservation.

Haroon thinks that in his capacity as financial controller he can recommend some environment-friendly policies. “For instance, I think there are no recycling units in Oman. If some companies will come forward to set up a recycling unit, HSBC would have a policy to support it” he says.

In 2005, HSBC was the first major bank – and FTSE 100 Company – to become carbon neutral.

He stresses the necessity of utilising renewable energy as an alternative energy source. “In gulf countries we are not making use of renewable energy. Since cars are more affordable and oil is cheap, we exude more carbon dioxide. Renewable sources of energy are very costly and less efficient. Until and unless the cost-barrier is abolished, we cannot spend more on the renewable energy.

Haroon also informs that HSBC is seriously considering unification sooner or later. HSBC Oman will soon introduce an integrated machine which will do the functions of photocopier and printer. The machine will not start printing unless one goes there and puts the ID card in. It can save unnecessary consumption of papers due to carelessness.

86 November 2010

BY INVITATIONBY MARILYN ATKINSON

Leadership coaching is now the management model of choice in nearly half of the Fortune 1000 Corporations in North America, and that number is growing each year

Need of the hour

Today’s executives are faced with mounting leadership issues as they navigate

through unprecedented global change. The issues they face are unique to the 21st century: the generational shift of an aging workforce, shareholder demands, increased corporate accountability and the demographics of personnel with a whole new set of attitudes, values and beliefs. It is this soup of complex expectations that keep many executives up nights, and keep team meetings tense. Today, more than ever, executives and companies require coaches.

The impact of leadership coaching can be likened to the early days of the computer: the first banks to computerise their data systems and train their personnel quickly surpassed their competitors. It’s the same thing with executive coaching. With the world’s most successful companies using managerial coaching approaches, the trend is not about to stop any time soon.

FOCUSSED APPROACHEmotional Intelligence (“EI”) relates to flexibility, planning, communication and relationship skills that

are necessary to influence and energise employees.

EI can be developed through the skillful redesign of internal dialogue habits. All of us live inside of these internal conversations and for most people, context is random and therefore internal dialogue is beyond their own control and ‘moods happen’. Solution focused coaching is about shifting that pattern by providing simple, contextual tools for approaching a job with the appropriate internal talk that leads to creativity, power, and success.

This approach assists managers to set a powerful context for doing any job. Most individuals have not learned how to design an internal, integral, “coach position” for many of life’s ‘jobs’. Solution focused approaches from a skillful coach move us beyond roadblocks. The best results happen when coaching programmes are systemic, starting from the top leadership rung and applied with the chief executive officers taking part. Coaches assist to clarify motivation where it counts so that we set out to learn as quickly as possible. Solution-focused managerial coaching increases productivity because it puts the abilities in the

hands of individual leaders and teams to design their own coaching results. Students take control of best practices at the organisational and operational levels.

SUCCESSFUL IMPLEMENTATIONCorporate coaching leaders need to know their business well and follow an integrated coaching model developed for creating positive culture change. Solution focused technologies can be especially powerful for this because they combine rigorous training in “flow states” (recent brain-mind technologies), accelerated learning tools, NLP performance technologies, simple and superior assessment technologies such as 360’s, and creativity skill-sets that truly develop emotional intelligence.

Skill-based coach training is essential for managerial effectiveness in these turbulent times. While it accelerates emotional intelligence and effective workplace communication, it also unleashes untapped creativity and innovation, which causes motivation and commitment to soar. This adds up to billions of dollars annually to the bottom lines of organisations.

In affiliation with Prosper Management Consultancy (www.prosper105.com)

The author is a coaching visionary, a leader and

an author. She is also the president of Ericksson

College International

The Audi A8 L impresses with a presence of powerful confidence – it is a large, distinguished luxury sedan. It’s length and wheelbase

have both been stretched by 13 cms (5.12 in) versus the standard version; the A8 L measures 5.27 mtrs (17.29 ft). All of this added length is to the benefit of rear seat passengers. The Audi A8 L comes with five engines, including the powerful twelve-cylinder with 368 kW (500 hp).

Audi offers two power-adjustable and heated individual seats as an option for the rear, which can be paired with the optional continuous, elegantly-styled centre console with large storage compartments. The individual seats can also be equipped with optional ventilation and massage functions, and features such as a folding table and a cool box make the passengers’ stay even more enjoyable. The top version has the relaxation seat with power footrest. It comes equipped with every available luxury option, including a rear seat entertainment system.

It also offers a number of attractive multimedia modules, including a high-end sound system from Bang & Olufsen and advanced online services. The Audi A8 L is the first automobile in the world to be available with an integrated WLAN hotspot. A UMTS module provides the connection to the Internet.

The interior of the A8 L enchants with its new, light lines, with a craftsman’s level of fit and finish and with extraordinary attention to the smallest of details. The comfort on board is first class – from the ambient lighting to the four-zone automatic climate control system.

The Audi flagship combines a new level of technical intelligence with intuitively simple operation. Its multimedia interface (MMI) includes a pioneering innovation: In conjunction with the optional MMI navigation plus navigation system, it has a touchpad. The MMI enables the driver to control many functions intuitively. The navigation destination, for example, can be entered by tracing the letters on the pad with a finger.

MMI navigation plus is tightly integrated with the assistance and safety systems in the new Audi A8 L. It reads the road ahead and provides the data to control units for the automatic transmission, the headlights and the advanced adaptive cruise control with stop and go function.

With their increased intelligence, these systems can recognise complex scenarios and predictively support the driver. The new Audi pre sense safety system can reduce the severity of accidents and their consequences in many cases. The night vision assistant with its highlighting of detected pedestrians and the speed limit

display enhance the driver’s safety and convenience.

Timeless eleganceThe Audi A8 L is a sedan of classic, timeless elegance. Its body is an aluminium Audi Space Frame (ASF), weighing about 40 percent less than a comparable steel structure. Audi offers optional LED headlights that use light emitting diodes for all light functions (standard with the W12). These represent a revolution in lighting technology with respect to both the technology and appearance.

The new A8 L is debuting with five engines: two TDI and three FSI gasoline units. All of the engines feature increased power and torque, while fuel consumption has improved considerably: by as much as 22 percent. This is due to Audi efficiency technologies such as the recuperation system and the innovative thermal management.

The engine lineup spans a wide range. It begins with two three-litre V6 units. The transmission also plays a major role in the efficiency of the A8 L. The eight-speed tiptronic has a very high overall gear ratio and is controlled electronically using either the elegant selector lever or paddles on the steering wheel. The new A8 L offers both luxurious ride comfort and sporty handling. Its wheel control arms are made of aluminum.

THE FULL-SIZE A8 SEDAN EMBODIES THE VORSPRUNG DURCH TECHNIK FOR WHICH AUDI IS RENOWNED. THE LONG-WHEELBASE A8 L SETS NEW STANDARDS FOR

LUXURY, DYNAMICS AND EFFICIENCY. MAYANK SINGH REPORTS FROM MUNICH

A CLASSA CLASSLEADERLEADER

AUTOTALK

A8 L quattro

Engine type: W12 engine

Valve gear / number of valves per cylinder: Chain drive, continuous intake and exhaust camshaft adjustment, roller cam followers with hydraulic valve play compensation

Displacement in cc: 6299 / 86.0 x 90.4 / 11.8

Max. power output in kW (hp) / at rpm: 368 kW (500 hp) at 6200 rpm

Max. torque in Nm (lb-ft) / at rpm: 625 Nm (460.98) at 4750 rpm

Exhaust emission control: 4 air-gap-insulated manifold converter modules with close-coupled ceramic catalytic converters, each with 2 oxygen sensors

Recuperation: Temporarily stores braking energy in the battery, and thus aids driving off and acceleration

90 November 201090

All-new Nissan PatrolNissan Patrol is now in its sev-enth incarnation, showcasing a radical new design direc-tion, significantly enhanced interior comfort and luxury, powerful new V8 engines, a 7-speed automatic transmis-sion and a new 4WD system. The new Patrol encompasses cutting edge safety features that pay special attention to the needs of GCC drivers with no compromise on quality or performance.

Since the launch of the new Nissan Patrol over six months ago, Suhail Bahwan Automo-tive (SBA), has been inundat-ed with demands from an ea-ger public, hungry to test drive the Patrol over the rugged, specially-created test track created by SBA at Azhaiba. This off-road trendsetter was one of the first dedicated four-wheel-drive vehicles available in the climatically demanding Middle East region.

BYD has recently held a ceremony in Shenzhen to celebrate two significant milestones: It has sold over 1,000,000 ve-hicles since its start of auto business only 7 years ago and launched the tour of its new-energy, dual-mode-electric, F3DM for consumer sales in China. BYD presi-dent and chairman Mr. Wang Chuanfu, BYD shareholders Mr. Warren Buffett and Charles Munger were present at the cer-emony.

“BYD is the right choice for me and I hope it’d be the same for you,” Buffett says at the event. Mr. Warren Buffett holds 10 per cent of Hong Kong-listed BYD’s (short for “Build Your Dreams”) stock, which he bought with about $ 230mn in September 2008. In August, BYD said it hoped to list on the Shenzhen Stock Exchange in the second half of the year.

The Cadillac line-up expands with a dramatically-designed new luxury crossover, ‘SRX’ that brings new dimensions of versatility and efficiency to the strong luxury crossover vehicle segment, the fastest growing segment in the Middle East.Cadillac SRX brings to the segment industry leading technologies and features such as advanced All-Wheel-

Drive, Electronic Limited Slip Differential System, eight-inch high resolution pop up navigation touch screen, USB connectivity and 40GB hard drive, Bluetooth connectivity (with NAV) power liftgate with a memory height, keyless entry, passive push button start and adaptive remote start, and an efficient standard 3.0-liter Direct Injection V6 engine.

Cadillac’s new SRX Luxury Crossover

BYD sells one million vehicles

91November 201091

Vehicle for the young-at-heart The stunningly new and feature-packed Kia Optima zoomed into Oman with a bang! T. J Park, general manager, and S. H Yang, manag-er, Kia Motors Corporation, Middle East and Af-rica Regional office, were present at the launch ceremony. A completely fresh design from the ground up, Kia’s popular and mid-size sedan Optima is absolutely transformed, embodying a bold, athletic and sporty visual energy. An in-telligent combination of Korean, European and American design qualities, the all-new Optima offers numerous standard features such as 16’’ Alloy wheels, Back Warning Sensors, Auto Cruise control, Bluetooth Connectivity, Cool Glove Box, Power Lumbar Support, Escort Headlamps, USB/ Aux Port, Luxury Floor Mats along with fog lights, Rear Ac Vents, Tip Com-puter and gull wing power folding mirrors.

Wattayah Motors has launched its most technically innovative model ever, the new Touar-eg, at Shangri-La’s Barr Al Jissah Resort and Spa. The completely redeveloped Volkswagen unites the world of off-road vehicles with the comfortable dimensions of a luxury sedan and the dynamic attributes of a sports car.

With characteristics that will prove popular with Oman cus-tomers, the new era Touareg is longer, lighter, sleeker,

safer, and roomier than its predecessor. Now weighing 208 kilograms less than be-fore, the nimble new Touareg manages to attain 1,642 litres of cargo space despite its im-proved aerodynamic design, and large variety of new as-sistance and safety systems.World first innovations include bi-xenon headlights with Dy-namic Light Assist, and a standard 8-speed automatic transmission – the first of its kind in the world in the SUV segment.

Zubair Automotive has an-nounced the four lucky win-ners of the eight-week long Mitsubishi Ramadan promo-tion following a draw at the company’s Azaiba Showroom. The winners will be presented with fabulous prizes worth nearly RO30,000 – ranging from a luxury speedboat to Jet Skis and an all terrain vehicle (ATV) from Bombardier Rec-reational Products (BRP) and

Yamaha. To qualify for these great prizes customers had to purchase a new Mitsubishi car or SUV during the “Let’s Cel-ebrate Ramadan Together” promotion that came to an end on 30th September.

The winners have been an-nounced as Ryan Nicol B, Sul-tan Al Amry and Salim Al- Eisri while the fourth winner chose to keep his name secret.

Mitsubishi raffle winners

Aston Martin has confirmed that the Cygnet luxury city car – originally shown as a concept car in March – will go into production in 2011 at the company’s Gaydon headquar-ters in Warwickshire. The As-ton Martin Cygnet is a city car that sets a new benchmark for compact luxury, building upon nearly a century of experience building high performance

sports cars, luxurious long-range grand tourers and ex-tremely competitive racing ma-chines. Cygnet demonstrates Aston Martin’s commitment to innovation and integrity.

“It is time to think differently. Aston Martin is honest and we don’t make compromises” says Aston Martin CEO Dr Ul-rich Bez.

Cygnet confirmed for production

Comes new Volkswagen Touareg

92 November 2010

Ben Crenshaw is one of the most popular and talented players on the grueling PGA circuit. His all-American looks, charisma and grace

under pressure have made him a gallery favourite from his days at the University of Texas, where he was heralded as the next Jack Nicklaus, to the 1984 Masters tournament, where he ended a decade of frustration to capture his first major championship title. His second victory in April 1995 secured his place in golf history.

MilestonesBen Crenshaw was involved in two of the most emotional golf course scenes of the 1990s. His first victory was at the 1995 Masters, just days after the death of his mentor and friend, the legendary golf teacher Harvey Penick. Crenshaw was a pallbearer at Penick’s funeral and four days later he became Masters Champion. After his final putt, he collapsed into the arms of his caddie while the tears flowed.

In 1999, Crenshaw was Ryder Cup captain at The Country Club in Brookline, Mass., where the US team was far behind. “I am a big believer in fate,” Crenshaw said that night. “I have a good feeling about tomorrow. That’s all I’m gonna say.”

The next day, the US staged its greatest Ryder Cup comeback ever, culminating in the raucous celebration on the 17th green when Justin Leonard’s long putt sealed it for the Americans. Crenshaw and Tom Kite were childhood friends and rivals in Austin, Texas. While a senior in high school, Crenshaw placed

GENTLE BENRegarded as one of golf’s greatest putters, Ben Crenshaw’s career reached pinnacles with his 1995 Masters win and the 1999 Ryder Cup matches

GOLFUPDATE

Achievements and awards

World Golf Hall of Fame 2002

Bob Jones Award 1991

Old Tom Morris Award 1997

Payne Stewart Award 2001

Best results in Major Championships

Masters Tournament Won: 1984 & 1995

U.S. Open T3: 1975

The Open Championship T2: 1978, 1979

PGA Championship 2nd: 1979

“golden boy” image and boyish looks led to a strong following among female fans, whose ranks were dubbed “Ben’s Bunnies” or “Ben’s Wrens.”

Crenshaw would go on to win 19 times on the PGA Tour, including two majors. After his competitive days on the PGA Tour ended, Crenshaw focused on golf course design, with only occasional flashes on the Champions Tour. With partner Bill Coore, Crenshaw designed some of the most acclaimed golf courses of the 1990s and early 21st century, including Kapalua Bay Resort in Hawaii and Sand Hills Golf Club in Nebraska. He was inducted into the World Golf Hall of Fame in 2002.

TriviaCrenshaw had occasional bursts of temper on the course, and his “Gentle Ben” nickname was given to him sarcastically. He broke his putter in anger in a singles match at the 1987 Ryder Cup and putted the rest of the match with his 1-iron and sand wedge. Crenshaw lost the match to Eamonn Darcy. Besides, he has one of the worst playoff records at 0-8, including a loss in the 1979 PGA Championship playoff. Sandy-haired, blue-eyed Ben Crenshaw, who stands five feet nine inches tall and weighs 160 pounds, has an easy-going manner both on and off the golf links that has earned him the nickname of “Gentle Ben.”

32nd in the US Open, prompting Lee Trevino to call him “the best eighteen-year-old golfer I’ve ever seen.” At the University of Texas, Crenshaw shared the 1972 NCAA Championship with teammate Kite. Crenshaw turned pro in 1973 and won his first tournament as a professional, the Texas Open. His

94 November 2010

Mistal, the designer watch boutique known for its exclusive brands and discerning clientele, has opened its doors at SABCO Centre in Qurum. Long associated with its flagship store at Darsait, this move shows Mistal’s desire to educate a wider set of customers about the craftsmanship of the masterpieces under its umbrella. Designed to celebrate craftsmanship, Mistal is a place that has always attracted big

names. The showroom, situated on the first level of SABCO, will have the same art gallery feel as the flagship store, and also the same touch of opulence infused with elegance. Each brand has its own space, where all the watches are displayed like the jewels they truly are. The hidden lighting along the walls creates an almost magical pattern of shadows among the panels.

Mistal brings timeless charm to SABCO

CNS for cost effective technology

BankMuscat launched in Quriyat its business incubator programme aimed at creating jobs for women, under the auspices of Manal Mohammed Hassan Abduwani, director-general of coordination and planning - ministry of commerce and industry. The corporate social responsibility (CSR) project will benefit 75 women from low-income families in the wilayat. Manal Abduwani

says, “The BankMuscat business incubator programme seeks to transform local communities and Omani women, including housewives from low-income and middle class families.” Shaima al Lawati, head of CSR, says, “The main objective of the BankMuscat business incubator is to produce successful firms that are financially viable and free-standing.”

BankMuscat launches business incubator in Quriyat

Oracle in association with CNS-Middle East has recently hosted a workshop on cost effective technology solutions. Around 100 participants from various sectors attended the event which is aimed at ensuring smooth business operations. Technical experts from Oracle and CNS made presentations on enterprise solutions, open storage and data centre efficiency and virtualisation. “CNS is a major regional ICT system integrator and managed Services Company in the UAE and Oman. With the recent acquisition of Sun

Microsystems by Oracle, the company is breaking new ground with a dynamic and forward thinking approach to Information and Communications Technology (ICT), defining how it can be best deployed and managed,” says Tom Carson, managing director of CNS, Middle East.

OAB launches Infinite card

Oman Arab Bank has recently announced the launch of its most prestigious OAB Infinite card for its high net worth customers. The card provides cardholders with the ultimate purchasing experience and a unique set of high-end benefits,

including world-class service from a round-the-clock concierge team and comprehensive travel insurance and purchase protection. The OAB Infinite card, which is the top tier card product in the industry, is exclusive for the bank’s affluent segment and will be distributed by invitation only. “With the new

OAB Infinite card, we have launched an exclusive and top-of-the-range product, reflecting our commitment to introducing premium products,” says Abdul Kader Askalan, CEO of Oman Arab Bank.

95November 2010

Pizza Hut’s new Crunchy Cheesy Bites is a marvelously unique pizza offering an eating experience that young people will enjoy and appreciate. The edges, first stuffed with string cheese, a combination of cheddar and mozzarella cheese, are then cut up and topped up. And it is decked on top with more of yummy mozzarella and heavenly parmesan cheese, with a generous sprinkling of corn flakes. Crunchy Cheesy Bites is a real fun experience, at prices

that every family will enjoy. Young people would have a roaring time ripping, pulling and popping mouth-watering bites into their mouth. With every delivery or take away, a 2.25 litre Pepsi comes absolutely free, adding to the dose of entertainment for the family. “Crunchy Cheesy Bites is yet another example of Pizza Hut’s innovative spirit, ever exploring ways to delight the family,” says Anil Khimji, director, Khimji Ramdas.

Mouth-watering bites

Oman International Bank conducted Mandoos Quarterly Draw in Dahra region at Dhank Branch. The draw was held under the auspices of Sheikh Maktoom Matar Al Azizi, member of Majlis A’Shura and was attended by area’s district manager, Sheikhs, branch managers and employees. In this quarterly draw, the bank offered prizes worth RO40,000

distributed among ten lucky winners. Mandoos is one of the biggest and most famous saving schemes in the Sultanate aimed at encouraging saving among citizens and residents. This year Mandoos offers daily, weekly, and quarterly draws, in addition to back to school draw and special draws on Renaissance Day and National Day.

Mandoos draw held at Dhank Branch

Omantel has signed a contract that will connect 25 sites from banks and brokerages companies directly to the Muscat Securities Market (MSM) using its state-of-the-art MPLS (Multi-Protocol Label Switching) system enabling ever faster deals and transactions to be undertaken.The highly tailored service provides a different range of bandwidths to

suit the specific demands of the 26 sites that will be connected through Omantel’s MPLS Cloud system – with the cloud acting as a hub to connect the MSM and the different bank and brokerages. Moving away from traditional leased lines to MPLS technology enables companies to save cost and delivers a greater return on investment.

Omantel’s MPLS to connect MSM

NBO marks Omani Women’s Day

National Bank of Oman (NBO) has joined hands with Layali al Asalah for their international fashion competition which was held on October 21 to mark Omani Women’s Day. The Layali al Asalah fashion show was held, by popular demand, for the fourth consecutive year. The ‘Layali al Asalah’ fashion competition is being organised with the intent to

support and encourage local Omani amateur designers to become entrepreneurs, and hence important for NBO, as a responsible corporate citizen, to be part of this social responsibility. Also, the event which coincides with ‘Women’s Day’ is NBO’s tribute to the women of Oman. Layali al Asalah began preparation for this popular competition in May 2010.

Nawras introduced a new Quran service providing regular Islamic recitations by Shaikh Mishary Rishad Alafasy, delivered directly to customers’ handsets. The service which is already being enjoyed by almost half a million people across the region will be available for the first time in the Sultanate. For only 300 Baiza per week, Nawras customers can receive verses of the Quran,

prayers, sayings of the Prophet Mohammed (peace be upon him) and the latest poetic recitations.

Nawras launches Alafasy Quran service

Oman Air’s Sindbad Frequent Flyer Programme has signed a new partnership agreement with Avis, a leading car hire company. As per the partnership, Sindbad Frequent Flyer members will earn valuable Sindbad Miles on rentals and benefit from special offers and discounts

from Avis. To celebrate the launch, Avis is offering Sindbad members the chance to win up to 100,000 Sindbad Miles. Members are invited to enter the competition before the end of the year and ten lucky winners will be drawn in January 2011 and will win 10,000 Sindbad Miles each.

Oman Air signs pact with Avis

96 November 2010

UAE WORLDCODESAINT HONORE has launched the UAE Limited Edition Worldcode watch in honour of the upcoming 39th anniversary of UAE National Day in December. The UAE Worldcode in elegant PVD titanium finish has a special dial in the colours of the UAE National flag. The back of the watch is engraved with the UAE map and the limited edition number. Only 39 pieces of the watch will be produced to coincide with the national day anniversary. The watch designer’s brief was straightforward - to create a most elegant steel chronograph. The full force of SAINT HONORE savoir-faire rose to this challenge and the result has met every expectation. The sophisticated design honours the traditional codes of great timepieces with particular attention given to the bezel and the strap.

FOR GALLANT SELF EXPRESSIONInspired by the daring horse races that charmed France during the King Louis XV’s era, Parfums de Marly introduces Lippizan fragrance with its remarkable gallant scent. The horse breed Lippizan was developed in the 16th century and spread fearlessness by participating in the royal horse races. Lipizzan is a captivating woody earthy fragrance that opens up with Bergamot, Lemon, Caradmom, Thyme, Tarragon and Clary Sage. The heart note is a gentle blend of Jasmine, Rose, Iris, Galbanum, Patchouli, Cedar and Vetiver. Tree Moss, Vanilla, Leather, amber and Musk form the base note of this fragrance.

NEW GILLETTE EDT Gillette has announced its entry into the Eau de Toilette (EDT) market with the launch of three fresh and inspiring fragrances: Blue Dive, Gold Joy and Black which have been designed to give men that extra boost to succeed everyday. The Blue Dive fragrance is exhilaratingly refreshing with aromatic green accents and a warm, confident undertone. Used in the morning before a busy day it will give the wearer a burst of confidence. The Black gives a sense of deep personal power based on quiet self-confidence. Its sophisticated style will help men express a suave, intelligent but assertive personality in the office and on into the night. The Gold Joy Is an assured, masculine blend of rich, woody scents – a classic combination of strength of character and confidence.

ALL-IN-ONE PRINTERLexmark International launched the Interact S605 all-in-one printer for students and teachers with a 4.3-inch capacitive touch screen and wireless connectivity. Students can easily access their Evernote account via the printer without ever having to turn on a computer. The shortcuts available under Lexmark’s Forms and Templates SmartSolutions category will help the students and teachers get their school work done. Users will be able to print graph and lined paper as well as blank sheet music and wall calendars all from the touch screen on their printers. These new SmartSolutions will save users a great deal of time and energy. Lexmark’s also announcing additional forms and templates including stationery, fax cover sheets and student certificates.

3D LAPTOPIf you’re a bit in a hurry grabbing something that would make your neighbour envious enough, why not snatch HP Envy 17 3D laptop who’s now finally met the shelves for $1,599 base-price tag. Having a 17.3-inch 3D Ultra BrightView display, packs AMD’s 3D tech, it comes with active shutter glasses and a self-explained configuration of Intel Core i7 processors, ATI Mobility Radeon graphics, a wide range of hard drive options and Windows 7 operating systems – isn’t that sweet?In addition, HP’s Wireless TV Connect device is also up for order for $199.99, the device will stream 1080p video from your laptop to your HDTV.

WORLD’S LARGEST LED TVSamsung Gulf Electronics showcased the gigantic C8000 Full HD 3D TV at GITEX 2010. The C8000’s ultra-slim 65” screen is the world’s largest LED TV that is Full HD capable and supports 3D rendering. The Samsung C8000 3D LED TV sets a new standard in cinema-style home theater experience, using explosive 3D capabilities and the immersive Samsung HyperReal Engine to deliver the world as never seen before. Superior picture quality courtesy of Samsung’s proprietary 3D processor, combined with unique Precision Dimming Technology for improved black point accuracy and the impressive motion clarity of 800 CMR make the Samsung C8000 the pinnacle in rich, Full HD 3D content viewing.

98 November 2010

Does Germany’s industrial power-house Mittelsand have any thing in

common with Dharavi, Asia’s largest slum in Mumbai made famous by Slumdog Million-aire? What are the common characteristics displayed by the thriving Edinburgh Fringe Festival in Ireland and China’s emerging financial capital Shanghai? Or what binds In-ternational Baccalaureate (IB), the world’s fastest growing school curriculum and exami-nation system, to the bumpy desert boom in Dubai?

Despite their seemingly different exteriors, they have some unique traits which make them one of the 20 success stories in the world as featured in award-winning journalist Hamish McRae’s What Works, a counterintuitive exploration of some of the most successful communities and organisations from across the globe. The book is a collection of experimental essays looking into the flimsy difference between triumph and failure.

From each experiment he tries to deduce some principles behind success and examines how some initiatives took off while others floundered and how some communities and organisations managed to achieve so much while others struggle. Instead of taking a look at the way the world is changing from a macroeconomic perspective, the book illustrates, through a series of stories, how great and innovative ideas can bring about change. McRae does not advocate a unique model of development for the whole world nor does he believe that one successful

WHY SUCCESS SMILED ON THEM

HAMISH MCRAE’S WHAT WORKS CAPTURES THE COMMON THREAD THAT RUNS

THROUGH 20 SUCCESS STORIES FROM ACROSS THE GLOBE. A REVIEW

BY MUHAMMED NAFIE

BROWSINGCORNER

everywhere. We need to learn from each other,” says McRae.

He proposes some powerful ideas that can be applied to many situations and, if sensitively and thoughtfully applied, can bring about better outcomes. He captures some of the common thread that run through all these narratives such as optimism balanced by realism, excellence tempered by decency, becoming a true magnet for talent, honesty about failure, the need for humility, nimbleness, careful management of resources and having a sense of mission. Though many of his examples such as Ireland, the city of London and property development in Dubai have been adversely affected by the world financial crisis, McRae argues that, in an apologetic vein, their fundamentals have not changed at all.

However, he is not merely glorifying the triumphs but juxtaposes the achievements of each setting with its flipside. For instance, while attributing Tokyo’s remarkably low crime rate to the koban – manned police cabins – dotted throughout the city, he admits the fact that the yakuza, the organised crime syndicates of Japan, have not been controlled. Likewise, he observes how Australia is still faced with an obesity epidemic, notwithstanding its excellent sports training facilities and athletics prowess.

Written in a lucid style without jargon or clichés, the book sketches a broader global perspective for growth and development and proposes indigenously developed mech-anisms as a corrective to the current economic gloom.

idea can be replicated or transplanted in another side of the earth. But drawing lessons from eye-opening ideas from every continent-from America to Europe, from Africa to Asia

and Australia- he suggests to learn a bit from each of these stories and tries to apply some elements of their success. “Good ideas will increasingly come from anywhere and

BEYONDBOARDROOMS

99July 2010

The growth of First Choice from a humble beginning with one staff in

2000 to a 450-member strong team in 2010 has been remarkable. Muneer Ahmed Sulaiman, managing director of the company, ascribed this success story to two attributes which he persistently adhered to throughout his professional and personal life: honesty and hard work. “I always believe in hard work without which you cannot achieve anything. You have to be a hard worker if you want to survive in a highly competitive environment,” says Sulaiman.

He believes that honesty is an important trait for success in personal and professional life. “You have to win the trust of people; otherwise you cannot succeed in your ventures,” he says.

His stay and schooling in

four countries have helped to mould his cosmopolitan outlook towards life. “I have studied in four countries- Oman, Kuwait, Egypt and the US. It was a totally different experience which acquainted me with different cultures and people,” Sulaiman recalls. After completing his MBA from Humberside University in the UK through correspondence, Sulaiman left for the US to do an additional diploma in real-estate appraisal.

Enterprising streakSulaiman started his professional life in Oman in 1986 and then left for Dubai where he ran various artificial jewellery shops. After coming back to Oman in 1990, he, along with his uncle, entered into various enterprises including supermarkets. It was after spending ten years with his uncle that Sulaiman launched First Choice LLC, a real estate company in 2000. Then the company started

Muneer Ahmed Sulaiman, MD, First Choice, thinks that for success in business one has to relinquish many things in personal life

A workaholic

Education

MBA from Humberside • University, UK

Diploma in Real Estate • Appraisal from US

Hobbies

Travelling•

Watching movies and outing •

its operation in Kuwait also after five years.

Referring to his management style, Sulaiman says that he prefers management by exception, a policy by which management devotes its time to investigating only those situations in which actual results differ significantly from planned results. “I will not interfere if everything is smooth and on expected lines. Each department functions well and achieves their respective targets. I do not interfere until and unless a special circumstance arises. Attention is given only to material deviations requiring investigation,” says Sulaiman.

A workaholic by nature, Sulaiman has an unambiguous response to the question about his time management: “You cannot achieve all. You have to sacrifice something for the cost of another thing which is more important for you. For the success in business, which is more important for me, I have to relinquish many things in other fields including personal life. Besides, I enjoy doing my job, I enjoy doing business and meeting people” he says.

However he spends 15 days every year abroad, especially the US which is his favourite destination, along with his family. He believes that the trip helps him to recharge his batteries and come back to work with renewed spirit. He also likes to go out once in a while, mostly in the company of 15 very close friends. Sulaiman is also a lover and regular watcher of western movies and Arab drama. “I would watch Arab plays almost every day in the evening when I am free,” he says.

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