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OMANTradition of smart planning to boost economic diversificationThis supplement to USA TODAY was produced by United World Ltd., Suite 179, 34 Buckingham Palace Road, London SW1W 0RH – Tel: +44 20 7305 5678 – [email protected] – www.unitedworld-usa.com

Tuesday, November 18, 2014

Our World#Oman

There’s a revolution under way in the Middle East, and it’s not characterized by

mass demonstrations, upheav-al and government overthrows. It’s in the Sultanate of Oman, and has been going on quietly for decades. Under the lead-ership of His Majesty Sultan Qaboos bin Said al Said, the Gulf nation is steadily reinvent-ing itself and, slowly but sure-ly, moving its economy away from dependence on oil to one that generates income and jobs in fields ranging from tourism and industry to mining, farm-ing, and more.

Unlike most of its neighbors – the exception is Saudi Arabia – Oman has a long tradition of economic planning. H.M. Sultan Qaboos and his government launched the first five-year plan for development in 1976.

That plan was driven by the knowledge that Oman’s oil re-serves are neither infinite nor the biggest in the region. In fact, Oman is a minnow in oil terms. It sits on proven reserves of an estimated 5.5 billion bar-rels, or around 0.4% of global oil reserves, and experts have predicted Oman’s wells will run dry in less than 20 years.

The sultanate reached peak oil production of around 960,000 barrels per day (bpd) in 2001, before falling to a low of 710,000 bpd in 2007. By har-nessing enhanced oil recovery techniques and because of new discoveries, Oman has bumped production back up to nearly 960,000 bpd, where the govern-ment is hoping to sustain it for the next five years.

Yet that does not mean it is backing away from its

long-term plan to move away from oil.

Economic diversification away from oil has been at the heart of Oman’s series of five-year plans since they were start-ed in the 1970s. Under the first plan, the government invest-ed heavily in projects to devel-op industry, mining, farming and fishing. Oman is now in its eighth five-year plan, which is part of a broader strategy called Vision 2020 to build a more diverse, sustainable economy that creates jobs for Omanis.

The plan aims, by the year 2020, to boost private sector activity and educate Oman’s workforce so that they have the skills to fill the jobs that are cre-ated. Education levels and skill sets in Oman are low at pres-ent, and many jobs are filled by foreign labor.

But under Vision 2020 and the plan that will succeed it – Vision 2040 – Oman is re-vamping its education system to focus on science, technol-ogy, engineering and mathe-matics. The aim is to prepare Oman’s large youth popula-tion to take on the jobs that H.M. Sultan Qaboos’ vision-ary plans will create, and to give employers the skilled lo-cal workforce they need.

In a report for the London School of Economics, Martin Hvidt, an associate profes-sor at the University of Southern Denmark’s Center for Contemporary Middle East Studies, summarized Vision 2020 as aiming to bring “diversification, indus-trialization, privatization and increased integration into the global economy” to Oman, “in order to achieve the long-

term aim of a productive and diversified economy.”

Among its goals are re-ducing the oil sector’s con-tribution to GDP to 9% by 2020 from its current share of 40%. The plan also aims to increase natural gas’ con-tribution to GDP from 1.5% in 1995 to 10% when Vision 2020 reaches its final year. With an estimated 34.6 tril-lion cubic feet of proven gas

reserves, that’s well within the realm of possibility.

H.M. Sultan Qaboos’ gov-ernment is also seeking to boost tourism, education, in-formation technology, mining

and other sectors to break the economic dependence on oil.

On the tourism front, the government is touting Oman’s diverse geography and un-expected beauty. The third- largest country on the Arabian Peninsula offers unusual land-scapes for the Middle East, with fjords and sometimes snow-capped mountains punctuat-ing desert vistas. Overlooking the Persian Gulf, Gulf of Oman and the Arabian Sea, Oman also offers unspoilt beaches, and its capital, Muscat, combines cosmopolitan charm with Middle Eastern traditions.

Attracting foreign inves-tors is key to Oman’s diver-sification drive, and in that light, the sultanate has been easing the rules on foreign property ownership and for-eign-owned businesses. Since 2006, foreigners have been al-lowed to buy freehold prop-erty in certain parts of Oman, and the laws of the investor’s country of origin dictates who inherits that property.

Furthermore, property own-ers and their immediate family are given residency in Oman. Oman also allows some busi-nesses to be 100% foreign-owned, if the investment is deemed to be in the interest of the country. Most business-es can only be 70% foreign-owned, however.

Developing the sultan-ate’s infrastructure is another key element in Vision 2020.

According to Mr. Hvidt, more than half of total spending in the current five-year plan, which runs until 2015, is ear-marked for the construction and modernization of airports, roads and other transportation means. Another 26% is allocat-ed to developing seaports, wa-ter supply systems and housing. International consortia, main-ly from Europe and Asia, have qualified to bid on a project to build a 1,400-mile-long high-speed rail network, the first phase of which is expected to be operational in 2018.

Oman has already seen some success in cutting its depen-dence on petroleum.

Oil’s share of total export revenues have dropped from 90% to about 65% since 1990, French bank BNP Paribas re-ported last year. That compares favorably to four other member states of the Gulf Cooperation Council – Bahrain, Saudi Arabia, Qatar and Kuwait – where there have been no ma-jor changes in 20 years in oil export revenues.

BNP Paribas also praised Oman for the “spectacular” leap in contributions from the non-oil sector to GDP since 1990. In Gulf countries as a whole, the non-oil sector’s share of GDP grew from 54% in 1990 to 72% in 2010, while in Oman, it rose by 10 percent-age points more – from 43% to 71% – in the same period. A spectacular rise, indeed.

While the hydrocarbon industry remains as a strong backbone to the Omani economy, the sultanate is promoting other sectors and industries as well as bolstering the education system to prepare young Omanis for a future characterized by a larger

private sector and more diversified economic base

‘“I Am WOrkIng fOr OmAn – The cOUnTry And ITS peOple… fOr me IT IS A delIghT TO See my cOUnTry And my peOple In The SITUATIOn I ImAgIned frOm The very fIrST dAy I ASSUmed pOWer. I feel ThAT I Am A mAn WITh A mISSIOn rATher ThAn A mAn WITh AUThOrITy”

H.M. SULTAN QABOOS BIN SAID AL SAID

A UNITED WORLD SUPPLEMENT PRODUCED BY: pablo delcassó, karla Arteaga, lucas nuttall and Andrew machaj. Special thanks to national ferries company and to dr. raman and dr. Arul Shanmugam from Al hayat International hospital

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Bilateral trade on the rise, as is variety of Omani exports

U.S.-Omani relations are nearly as old as the Constitution. Ties were forged

between the two countries un-der the presidency of George Washington when, in 1790, a brig ship called the Rambler, captained by Robert Folger and sailing out of Boston, dropped anchor in the port of Muscat. Five years later, another brig, the Cadet, which sailed out of Salem with Charles Derby at the helm, reached Muscat. Der-by sailed back to Massachusetts with a cargo of coffee, mark-ing the beginning of a thriving trade between the merchants of Salem and Muscat.

Since those early days, the two countries have signed several treaties, and established formal diplomatic relations in 1972. In 1980, Muscat and Washington inked a military cooperation agreement, which was renewed and revised in 2010. And since 2009, they have had a free trade agreement (FTA).

According to the U.S. Em-bassy in Muscat, Omani ex-ports to the United States have increased by 60% and U.S. ex-ports to Oman are up by more than 26% since the FTA was signed. Trade between the two countries consist chiefly of ma-chinery, vehicles, aircraft, agri-cultural products, and optical and medical instruments that are imported to Oman from the United States, and crude oil, jewelry, plastics, fertilizers, and

iron and steel products going in the other direction.

Among the perks given to American investors by the FTA is the right to wholly own companies in Oman, although many foreign com-panies still choose to partner

with Omani companies and tap their local expertise.

The State Department describes Oman in glowing terms: the country with a mod-ern business law framework; respect for free markets, con-tracts, and property rights; low taxes and an easily navigable business registration process.

Oman also offers expatriates “an excellent quality of life: is a safe, modern, friendly, and sce-nic country, with outstanding international schools, widely-available consumer goods, modern infrastructure, and a convenient and growing trans-

A free trade agreement between the two nations has boosted two-way trade. Ithraa, Oman’s investment promotion agency, supports the government’s economic diversification efforts by endorsing the country’s non-oil exports

portation network,” the State Department says.

Minister of Foreign Af-fairs Dr. Yusuf Bin Alawi Bin Abdullah underscores the sul-tanate’s successful efforts, as well, saying: “I think we have been able to create a feeling among world institutions that the environment in Oman is suitable to invest in because of stability and confidence of these financial institutions, companies, banks, that the sta-bility is sustainable stability.”

Oman is actively wooing for-eign investors through Ithraa, the government’s investment promotion agency, which be-gan life in 1997, when it was known as the Omani Center for Investment Promotion & Ex-port Development (OCIPED).

Ithraa’s main mission is to smooth the way for investors in Oman and grow exports of Omani goods and services. The agency works closely with other government entities to ensure Oman is competitive and is seen as “the best place to conduct business” in the Gulf neighborhood and beyond. Ithraa – the Arabic word for “enrichment” – has represen-tatives around the world who help businesses get a foothold in Oman and to stay there and enjoy commercial success.

The country itself makes Ithraa’s job an easy one, says His Highness Sayyid Faisal Bin Turki Al Said, the Direc-tor General of Media and Marketing at Ithraa.

“We have most of the ingre-dients in place,” he explains. “Oman has been working ag-gressively on the legal frame-work and, from a judicial point of view, protecting investments and whatever rights the inves-tors have. The incentive pack-

age is quite interesting,” he says.Efforts to diversify the econ-

omy, and move it away from oil-only, have also helped to open Oman to outside invest-ment. Middle East research company Info-Prod Ltd. says Oman is “actively seeking pri-vate foreign investors, putting specific emphasis in the in-dustrial field. Those investors who allow technology transfer and provide employment and training for Omanis are par-ticularly welcome.”

Ithraa is actively involved in helping Oman to move away from oil and branch out into other sectors. The agency de-fines what it calls “thrust prod-ucts” to promote, based on predicted volume of sales and exports. “We started with about 14 products and now we have over 40,” H.H. Al Said says. “We spend a lot of time to see what exporters are doing and try to assist them to venture into new markets with extensive market research and surveys.”

Ithraa’s export development department identifies “key exhibitions and conferences where we take our exporters, for example food products, food-processing, marble etc,” H.H. Al Said continues.

At those conferences, Omani producers are not only intro-duced to potential clients, but the country’s logistics, agri-culture, food, infrastructure, transport, nascent IT and phar-maceutical sectors are also pre-sented to the business world.

For foreign businesses look-ing to set up shop in Oman, Ithraa provides an extensive, free and confidential package of assistance to help identify the full range of hard and soft benefits of choosing Oman as a business location.

“I Am grATefUl fOr All The U.S. hAS gIven TO OmAn, pArTIcUlArly In... TrAnSfer Of TechnOlOgy TO The yOUng peOple In OmAn“

DR. YUSUf BIN ALAWI BIN ABDULLAH, Minister of foreign Affairs

“preSIdenT ObAmA And The UnITed STATeS Are very grATefUl fOr The rOle ThAT OmAn plAyS In The regIOn AS An ImpOrTAnT fOrce fOr peAce And STAbIlITy“

jOHN keRRY, U.S. Secretary of State

“We lOOk fOrWArd TO hAvIng A meAnIngfUl fdI lAW ThAT WIll plAce OmAn On The mAp In The regIOn“

H.H. SAYYID fAISAL BIN TURkI AL SAID, Director General of Media and Marketing at Ithraa

OmAnI expOrTS TO The U.S. hAve IncreASed by 60% And U.S. expOrTS TO OmAn Are Up by mOre ThAn 26% SInce The fTA WenT InTO effecT In 2009

U.S Secretary of State john kerry speaks to staff of U.S. embassy Muscat, Oman on May 22, 2013 (State Department Photo/Public Domain)

3Distributed by USA TODAY OMAN


Oman targets innovation and R&D to enhance national capability and competitiveness in a transformative vision centered on its human resources

Investing in minds and ideas to promote an inclusive knowledge-based vision

Oman is a small country with a great vision, a country with relatively few natural resourc-es but which has progressed through investing in the de-velopment of its people. For Dr. Hilal Ali Zaher Al Hinai, Secretary General of The Re-search Council (TRC), “hu-man resources constitute the capital of Oman” and he sees the work of TRC as key in the next step, one of investing in innovation and research and development so as to allow the potential of the country’s human genius to flourish and through that to foster national economic prosperity.

Dr. Al Hinai sees two main building blocks in this pro-cess, the first being “research, the generation of knowledge”, and the second being “in-novation, the capturing of value from that knowledge”, focusing investment on areas where Oman has either par-ticular needs or strengths that can be built on.

A key next stage is the development of Innovation Park Muscat (IPM) to pro-vide a catalyzing, dynamic and productive environment for researchers and innova-tors, combined with strong

links to academia, business and industry.

His Highness Dr. Fahad Al Julanda Al Said, Assistant Secretary General for Innova-tion Development, calls IPM “a cornerstone in Oman’s in-novation ecosystem” that will “serve the innovation support programs that are being de-veloped to provide the frame-

work and a sense of innova-tion culture in the sultanate.” IPM will be a place “where researchers can develop new ideas while investors seek out opportunities to collaborate within this community.”

Focus on specific areas of-

ten produces a cascade of re-lated research. For example, enhanced oil recovery (EOR) techniques, important to Oman and with tremendous commercial potential world-wide, require a great deal of treated water which leads on to research into seawater de-salination, also a market with very great potential. Steam in-jection is used in EOR and so research into using solar ener-gy to power that process may also be commercially fruit-ful. Investment is thus being cleverly targeted to achieve a maximum multiplier effect.

Dr. Al Hinai emphasizes the partnership philosophy underlying IPM’s concept, saying, “If you work with part-ners to capture the value from the knowledge and provide a platform for those technolo-gies, then it is always a win-win situation.”

Dr. Abdulbaqi, Director of Science and Technology Parks within TRC, confirms this, saying, “we are creating the ecosystem to support and produce ideas and products for commercialization within a future knowledge-based economy” – a key part of Oman’s Vision 2020.

“The bAckbOne Of OUr heAlThcAre SySTem IS prImAry heAlThcAre. prImAry heAlThcAre IS AffOrdAble, AcceSSIble, And prOvIdeS UnIverSAl cOverAge“

DR. AHMeD MOHAMMeD AL-SAIDI, Minister of Health

“ThrOUgh OUr Three lOgISTIc cenTerS We SUpply nOT Only OUr OWn phArmAcIeS, bUT WIThIn ThAT AreA We AlSO SUpply TO OTher cUSTOmerS, clInIcS, hOSpITAlS And phArmAcIeS “

BAkUL MeHTA, Managing Director of Muscat Pharmacy

Healthcare embraces private sector

Dr. Abdulbaqi, Director of Science and Technology Parks at TRC

Dr. Hilal Ali Zaher Al Hinai, Secretary General of TRC

H.H. Dr. fahad Al julanda Al Said, Assistant Secretary General for Innovation Development at TRC

“We Are creATIng The ecOSySTem TO SUppOrT And prOdUce IdeAS And prOdUcTS fOr cOmmercIAlIzATIOn WIThIn A fUTUre knOWledge-bASed ecOnOmy”

DR. ABDULBAQI, Director of Science and Technology Parks at The Research Council

Over the last 44 years, healthcare in the Sultanate of Oman has exploded from

a dozen hospital beds to dozens of hospitals. And the progress shows no signs of slowing.

Dr. Ahmed Mohammed Al-Saidi, Oman’s Minister of Health, says, “In 1970 we had 12 hospital beds in the whole country, a few expatriate mis-sionary doctors, and not more than 30 nurses for the whole country. The health services were very, very primitive. In the 1970s the life expectancy

for Omanis was only 49 years for men and 50 for women.” Since then, Dr. Al-Saidi says that almost every health out-come has improved.

Bakul Mehta, CEO of Mus-cat Pharmacy and Stores – the biggest supplier of medicines and health equipment for hospitals in the country, estab-lished in 1968 – agrees, saying, “The government has made a tremendous progress in health-care infrastructure.”

The results of this progress have been dramatic. In less than three decades, the life ex-

pectancy for Omanis jumped to 74 years. Over that same pe-riod, infant mortality dropped from 118 deaths per 1,000 ba-bies, to only 10.5. Child mor-tality plummeted from 181 deaths per 1,000 children be-low age of five, to just 9.5. This is largely due to more than 7,000 doctors and 15,000 nurs-es practicing in Oman. Today, an impressive 97% of Omanis have access to healthcare.

Dr. Al-Saidi credits these successes to his predecessors in the Ministry of Health, who “started healthcare the right

Life expectancy is way up and infant and child mortality rates are down. Now the Ministry of Health looks to private players to further improve quality and standard of care in the healthcare sector, thereby opening up new investment opportunities

and affordable way. The back-bone of our healthcare system is primary healthcare,” which Dr. Al-Saidi says is “afford-able, accessible, and provides universal coverage.” At this point the objective is to have a healthcare center for every 10,000 people, even in sparsely populated rural areas. “I have health centers serving popu-lations of less than 700 indi-viduals,” explains the minister, pointing out that proximity to a city should not determine someone’s access to quality healthcare.

Mr. Mehta notes that in Oman today, “everywhere in the country where healthcare is required, there are health cen-ters, polyclinics or hospitals.”

There are plans for a new medical city in Muscat as a response to the area’s growing population. “The expansion is huge,” Dr. Al-Saidi says about the new facilities. The 1,235-acre medical city will be about 30 miles from Muscat Inter-national Airport. And while healthcare will still be free of charge for Omanis in Oman, the new facility will shift the structure of the Omani health-

care system from a public one to a mixed public and private sector system. This will create a multitude of new investment opportunities as the healthcare sector diversifies. Dr. Al-Saidi says that welcoming private healthcare companies with high standards will only im-prove the sector in Oman.

“What I’m looking for,” he says, is for the private sector “to compete with us. I want them to be strong,” he continues, with a “quality and standard of care that is, if not better, then at least matching what we are providing free of charge.”

Mr. Mehta agrees that pri-vate foreign investment can be of great benefit to Oman. In fact, he credits the sultanate’s handling of foreign invest-ment with much of Oman’s sustained GDP growth over the last 20 years. “The real recipe for success in Oman,” he says, “is that the country has very transparent sys-tem as far as the investment is concerned from abroad.” Oman aims to continue this tradition as new opportuni-ties for foreign investment open up in the medical field.

Muscat Pharmacy is one of Oman’s oldest pharmacies, and today boasts 66 retail outlets throughout the country

Attracting foreign in-vestors is one of the linchpins of Oman’s Vision 2020 devel-

opment plan. The government of His Majesty Sultan Qaboos bin Said al Said has long rec-ognized this and has taken numerous steps towards mak-ing Oman a prime destination for outsiders.

Special economic ‘free zones’Special economic zones, called free zones, were es-tablished by Royal Decree in 2002. Their raison d’être is mainly to attract foreign investment by creating busi-ness-friendly areas in Oman.

Currently, Oman has four free zones: Salalah, Sohar, Al Mazunah and Al Duqm. Each provides companies that set up businesses in their bound-aries with certain rights and incentives, and in return, the companies provide the infra-structure and materials need-ed to run their business.

Outside the four free zones, foreigners can have an interest of up to 70% in a business venture in Oman, with the remainder held by an Omani national.

According to Oman’s Com-merce and Industry Minister, Dr. Ali bin Masoud Al Suna-idy, inside free zones, foreign investors can own up to 100% of a business.

The businesses that can be set up in free zones include industrial and processing

units, manufacturing and as-semblage undertakings, logis-tics and distribution centers, and companies that provide services to any of those enti-ties. Each free zone is set up by a separate Royal Decree by H.M. Sultan Qaboos and each specifies the types of business that can be registered inside the free zone.

“We have made available gas and water in these in-

dustrial and free zones, try-ing to attract gas-intensive industries,” Dr. Al Sunaidy says. Among multinationals that have taken advantage of the free zones and their perks are metals company Vale S.A. of Brazil and India’s Jindal Steel.

“These international busi-ness giants have found a loca-tion which is transparent, with ease of use and regulations,

exemptions and availability of gas,” Dr. Al Sunaidy says. “This is the package of incentives we have offered and they find it quite attractive.”

Low taxesDr. Al Sunaidy notes that Oman’s low income tax rate is also a draw for foreign in-vestors. “It still stands at a very low 12%, which makes it attractive for people to produce goods and services within Oman,” he says.

Oman also offers tax breaks on machinery and raw material needed for manufacturing, he adds.

In the World Bank’s Ease of Doing Business rankings, Oman ranked ninth for pay-ing taxes. The United States ranked 64th.

Developing SMEsThe government of H.M. Sultan Qaboos believes that getting Omanis to start their own businesses will also help to reshape the economy and bring in more outside invest-ment. It encourages Oma-nis to team up with foreign investors when they set up their new ventures.

“We think that there has been a change in the skills and initiative of Omanis to own and run their own businesses, so we have made a package of incentives for SMEs,” Dr. Al Sunaidy explains.

The incentives, which are aimed at getting Omanis to leave government jobs and strike out as entrepreneurs, include a year’s salary from their public sector job.

“That is coupled with a new policy to give at least 10% of government contracts to local SMEs,” Dr. Al Suna-idy adds.

Strategically locatedOman’s strategic location – between two continents and on three seas – and its efforts to develop its infra-structure are also attracting foreign investment.

PET plastics manufac-turer Octal, which has a factory in the Salalah Free Zone in the south of Oman, “can get a container from there to New York in 14 days, which is nothing,” Dr. Al Sunaidy claims.

“I think people are discov-ering that downstream man-ufacturing is something they can do in Oman,” he states.


“If yOU lOOk AT bUSIneSSeS In OmAn, The mOST SUcceSSfUl OneS hAve dIverSIfIed“

HAMeD AL HARRASSY,founder and Chairman of Teejan Group

Investment laws and infrastructure to attract FDIlow income tax, free zones, 100% foreign ownership of businesses and of course an excellent geographic location make Oman a top investment destination

Income tax in Oman is very low, at 12%. The World Bank’s ease of Doing Business index ranks the country ninth for paying taxes

OmAn cUrrenTly hAS fOUr SpecIAl ecOnOmIc zOneS – In SAlAlAh, SOhAr, Al mAzUnAh And Al dUqm – Where fOreIgnerS cAn OWn Up TO 100% Of A bUSIneSS

“OmAn hAS A very gOOd legAl SySTem fOr cOmmercIAl lAW. IT IS cleAr And effecTIve“

PReM MAkeR, executive Director of AVOD



Homespun companies identify with local needs

His Majesty Sultan Qaboos bin Said Al Said’s long-term develop-

ment plans have spawned homespun success stories, including the Teejan Group and Areej Vegetable Oils & Derivatives (AVOD).

Since it was founded as a trading and services company in 1974, Teejan has grown to be one of the leading groups in Oman, with construction its strategic business base. It began building schools (to date more than 150), hospi-tals and health centers, and then widened its portfolio to include industrial projects.

“Later on we built malls, factories in Sohar, a power plant in Salalah, and other buildings – iconic buildings,” Hamed Al Harrassy, founder and Chairman of Teejan, says, citing the example of the cruise ship terminal on Mus-cat’s Muttrah corniche.

Wholly Omani-owned, Teejan has grown over the years into a diversified con-glomerate, doing business not only in construction, but also in different fields of engineering, the food and beverage sector, and infor-mation technology.

“We are gold partners with Microsoft to license the gov-ernment and big institutions – and we have been success-ful in that. We have another partnership with a company called EON, from Silicon Val-ley,” Mr. Al Harrassy says with justifiable pride.

Like Oman, Teejan’s suc-cess is based on diversifica-tion. “If you look at businesses in Oman, the most successful ones have diversified,” says the firm’s chairman. “They see this country as a small market so they have to create an oppor-tunity to spread their sources of income in case one doesn’t work out. It is the vision of the government and the vision of the companies as well.”

Mr. Al Harrassy also attri-butes the success of Teejan and its contemporaries to the stable economy, made pos-sible in large part to H.M. Sul-tan Qaboos’ leadership. “The economy has always been well looked after and good plan-ning has benefited the coun-try and the people,” he says.

Areej Vegetable Oils and Derivatives (AVOD) is an-other Omani success story. Founded 30 years ago, AVOD exports high-quality cooking oils, ghee, margarine, spe-cialty fats, and butter prod-ucts around the world from Oman, with clients from Azerbaijan to Zambia, Aus-

tralia to the United States. Global foods giant Unilever sources its vegetable ghee, corn oil and frying solutions from AVOD.

Three of AVOD’s products – Khafeef light frying oil and Minara and Sohar cooking oils – won the prestigious “Superbrands” title in 2013, and Khafeef was named Brand of the Year last year at an event in Muscat. The Su-perbrands award recognizes a product for its marketing, quality and exceptionality. Participation in Superbrands is by invitation only, and of-fered to the most outstand-ing brands in their field.

AVOD Executive Director Prem Maker says the compa-ny developed Khafeef after

finding that consumers were not satisfied with the results they got from frying with different oils. After numer-ous tests and countless fried chicken fillet dinners, AVOD found that a blend of corn oil and super palm olein – from palm fruit – worked best.

“It took a few years to de-velop the technology inter-nally,” Mr. Maker says.

Khafeef is at the cutting edge of what could be called food technology. Dr. Wafaa Hilmi Ayesh, the head of Clinical Nutrition at Rashid Hospital in the United Arab Emirates, says Khafeef con-tains more anti-oxidants and Vitamin E than any other frying oil, doesn’t become thick and sticky during fry-

ing, and is free of trans fatty acids, or trans fats.

Mr. Maker emphasizes that AVOD stays abreast of Oman’s, and the region’s, needs. “You have to lever-age yourself with what the country needs and where it is going. We are in the fast-moving consumer goods business and so we focus on brands that create value, and on constant innovation,” he says. “We are in the process of launching another brand for the GCC, and hope to make it a Superbrand.”

Not only does AVOD address consumer needs, the company also adds to Oman’s skills set through its in-house technical train-ing programs.

companies like AvOd and Teejan are attentive to the needs of the markets, and successfully grow their activity base and product lines accordingly

AVOD’s pRODucTs cAn be Seen On ShelveS AS fAr AWAy AS The U.S., cAnAdA And neW zeAlAnd. In TOTAl, The cOmpAny expOrTS TO 30 cOUnTrIeS

Although Teejan’s flagship business line is construction, it is also active in engineering, food and beverage, cleaning and equipments, furnishing and information technology, among others


“I believe that in the future that transport and logistics will be one of the economic

sectors that the country can rely on to be one of the replace-ments for the oil,” Dr. Ahmed Mohammed Salem Al-Futaisi, Oman’s Minister of Transport and Communications, boldly states. And rightly so. With its prime location on the Strait of Hormuz and the Arabian Sea, Oman is a natural, and histori-cal, logistical base.

Add to this the ambitious and visionary plans the government has embarked on to develop a solid, integrated transport in-frastructure network, and it is clear that Oman is well on its way to building a strong logistic chain that will be the envy of its neighbors. “We are really start-ing to look strategically at how to integrate roads, airports, ports and the planned railways,” says Mr. Al-Futaisi.

Vic Allen, former acting CEO of Oman Airports Man-agement Company (OAMC), believes that the multi-modal logistics hub idea has “huge po-tential for strategic reasons”. “To be south or outside the Straits of Hormuz is a huge strategic advantage,” he says. “As time goes on, that will become in-

creasingly important and as Oman develops its infrastruc-ture and transport links I’m sure that it will grow massively.”

Oman is currently develop-ing a network of five regional airports – in Salalah, Sohar, Ras Al Hadd, Duqm and Muscat. The latter will soon have a new terminal with capacity for 12 million passengers per annum after phase one is completed. If demand deems it necessary, three subsequent phases will expand capacity ultimately to 40 million. According to Paul Gregorowitsch, CEO of Oman Air, once the new terminal has opened, “it will offer 96 check-in counters, 29 passenger board-ing bridges, 30 aircraft remote stands, and will be able to pro-cess up to 5,500 bags per hour.”

A brand new runway, now in its test phase, will soon take over in place of the 40-year old one currently in use, which will in turn be upgraded next year so as to afford the international airport with two runways in the near future.

The country’s five airports will be state-of-the-art, and Mr. Allen


The government is now developing ports, railways, roads and airports in such a way that they will conveniently link up to move cargo and passengers seamlessly

points to investment opportu-nities for the supply of services, concessions, and contracts for operation of commercial activi-ties. New regional airports mean, of course, more convenient ac-cess for passengers to the far reaches of the Arabian country.

“Domestic services have already received a boost with the increase in frequencies be-tween Muscat and Salalah and the launch of our new service to Duqm,” says the CEO of Oman Air. “However, the opening of more new airports in Sohar, Adam and Ras Al Hadd will enable Oman Air to easy and affordable air travel around the Sultanate for both Omani citi-zens and overseas visitors.”

In terms of its ports, there are six under development, three of which will be special economic zones (Salalah, Duqm and So-har) that will have convenient access to their adjacent airports.

The new Muscat airport will have capacity for 12 million passengers per annum

“We ThInk ThAT The rAIlWAy prOjecT WIll be A gAme chAnger In The WhOle lOgISTIc SySTem In The regIOn“

DR. AHMeD MOHAMMeD SALeM AL-fUTAISI, Minister of Transport and Communications

duqm is home to a Special economic zone, complete with world-class infrastructure, including a port, which will serve the area’s mining and other associated activities

New shipping hub emerges in central OmanOman is a country rich with natural resources, which means that much of its econo-my is based on the drilling for oil and gas, and on the mining of minerals buried deep be-neath the earth’s surface. And yet the extent to which these activities can benefit Oman’s exports is largely dependent on the transportation indus-try. That’s where the Port of Duqm, in the mineral-rich Al Wusta governorate, comes in.

Duqm is comprised of world-class infrastructure and state-of-the-art technology, which will allow this port to grow into an increasingly sig-nificant part of the economic landscape for Oman. Its loca-tion is also extremely advan-tageous. Rien Van de Ven, the CEO of Port of Duqm Com-pany says, “If you look at the trading lines on a map, they all pass by Duqm so Duqm will be an excellent trans-shipment hub.” It would seem that Duqm is poised to become the new Middle Eastern center for in-dustry, business and shipping.

Mr. Van de Ven clarifies, however, that Duqm is not meant to compete with Sa-lalah or Sohar – transport hubs already thriving in other parts of Oman. “Duqm itself doesn’t have the same popu-

lation behind it like Sohar,” he says. Indeed, there are just over 11,000 people in Duqm, compared to over 100,000 in Sohar. “Duqm is not meant to be an end destination but a starting point,” he says.

The sultanate of Oman has experienced sustained GDP growth over the last 20 years. Mr. Van de Ven says this has a lot to do with Oman’s interna-tional outlook, which is facili-tated by its ports. “Oman has always been a natural trading country with old trade routes and a rich maritime history,” he says. “The people are used

to open-minded trade. This trade brings cultures together and has developed a liberal mind. Oman is wide open to international activities.”

But while Duqm’s most important purpose at the moment is facilitating the transportation of oil, Mr. Van de Ven says it ultimately serves an even more sig-nificant purpose. “There will come a time when the use of oil will change, therefore you need other things to fuel the economy and keep people working. So Duqm is a post-oil development plan.”

Oman Shipping Company specializes in the transport of liquefied natural gas as well as mineral ore

Two existing ports that will ex-perience a complete change in format are those at Muscat and Sohar. Due to constraints to expansion, and not to men-tion the beautiful setting, adds Minister Al-Futaisi, Muscat Port will be transformed into a tourism port of call, complete with cafés, restaurants and shops, while Sohar will take on Muscat’s commercial activities.

“I think it serves to show just how much tourism is be-coming an important factor in Oman,” states Tarik Al Junaidi, acting CEO of Oman Shipping Company. “Especially between November and March, you see people from the huge cruise ships heading down to the souq area, walk around and go back.”

Speaking about the plan to link Oman’s ports with the planned 435-mile national rail-way network, Mr. Al Junaidi says, “It will definitely change

In the near future, the Port of Duqm will also have links to a new international airport and the national railway

Coming soon: a multi-modal, integrated transport network

the dynamics of logistics. It’s cheaper for shipping lines actu-ally to drop all their containers in Oman, basically in Salalah or Duqm, and then shift them by railway.” Owned by the state and by Oman Oil Company, Oman Shipping Company mainly focuses on the import and export of oil and gas prod-ucts (especially liquefied natu-ral gas, or LNG) and ore.

Passengers who wish to travel along Oman’s coast can do so with the National Ferries Company, which runs services to Oman’s enclave governorate, Musandam, as well as to the is-land of Masirah from Muscat. The company’s CEO, Mehdi bin Mohammed Al Abdwani, also underscores the importance of connecting the country’s modes of transport. “In Oman, land and sea transport is inextricably linked so having an integrated system linking the cities to the ports is essential,” he says.

Perhaps the most ambitious and far-reaching of Oman’s transport infrastructure plans is the railway project. Construc-tion will begin next year on the railroad, which will not only interlink the sultanate’s port cit-ies, but will also connect to the $15.5 billion, 1,400-mile GCC rail project, which will run through all six GCC countries – Oman, Saudi Arabia, UAE, Qatar, Bahrain and Kuwait.



Foreign oil & gas firms capitalize on the sultanate’s friendly and welcoming environment

“OmAn hAS WOrked TO creATe An ATTrAcTIve InveSTmenT envIrOnmenT And fOcUSed On prIOrITIeS WITh A SUSTAInAble bAlAnce“

GONG CHANGLI, CeO of Daleel Petroleum LLC

“The mOST ImpOrTAnT ISSUe fOr Any InveSTOr IS STAbIlITy And fOrTUnATely, OmAn IS A very STAble cOUnTry And hIS mAjeSTy IS A vISIOnAry“

SHAHROkH eTeBAR, CeO of CC energy Development

The heads of foreign companies Daleel petroleum and ccED attribute their companies’ success in Oman to the government’s enabling legislation, which in turn has opened the way for a potential investment of $110 billion over the next decade

One of Oman’s chief exports is oil, sending more than 790,000 bar-

rels per day abroad in 2013. While there was a multi-year decline in oil production in the early 2000s, enhanced oil recovery techniques like steam injection and miscible injection have caused a re-bound in the industry. With 5.5 billion barrels, Oman ranks seventh in the Middle East and 21st in the world for proved oil reserves.

Numerous foreign coun-tries have benefited from investing in Oman’s oil and gas industry. Among them is CC Energy Development (CCED), a Lebanese regis-tered company that set up its office in Oman in 2008. In 2009 it began exploration and drilled two back-to-back suc-

cessful wells. The following year, it brought these wells on stream into production, and today is producing about 25,000 barrels a day. CCED has set the goal to produce 30,000 by the end of 2014.

Shahrokh Etebar, CEO of CCED, says that though the company is still work-ing in primary and second-ary exploration and ex-ploitation, they’re making continual progress.

“We have a reservoir – we call it semi-unconventional – which requires potentially horizontal well drilling and hydraulic fracking,” he says. “We also have some areas that contain bitumen, and they are at a depth of 1,000 meters, so they are very challenging, but we have started looking at these for the future, maybe 10-20 years off.”

Mr. Etebar has an explana-tion for his firm’s success: “I have lots of experience living and working in the Middle East and I find Oman to be very friendly and coopera-tive, and the Ministry of Oil and Gas has been helpful with our progress.”

He also credits the country’s strategic position and its stabil-ity. “The most important issue for any investor is stability and fortunately, Oman is a very sta-ble country and His Majesty is a visionary,” he highlights.

“He is avoiding animosity with any other country near-by and he’s friendly. Under his leadership, a lot of these devel-opments have gone through. When you come to the oil industry, Oman has still a lot of areas to be explored and as I was saying, Oman is stable and a good place for oil com-panies to invest.”

Gong Changli, CEO of an-other successful foreign firm operating in Oman, Daleel Petroleum LLC, also points out the country’s strong suits: “In my view, the most success-

ful factors in Oman are the high standards of the market, transparency of the system and process.”

“Oman has worked to cre-ate an attractive investment environment and focused on priorities with a sustainable balance,” he continues, and il-lustrates this balance by citing Oman’s diversifying economy, with sectors like agriculture and tourism slowly but surely catching up to oil.

Formed in the second half of 2002, Daleel Petroleum is today one of the leading oil producing companies in the sultanate of Oman. It is a 50/50 joint venture between Mezoon Petrogas SAOC (a subsidiary of MB Holding) and Mezoon Petrogas BVI (a subsidiary of China National Petroleum Corporation). Daleel Petro-leum is involved in the explo-ration, appraisal and produc-tion of hydrocarbon reserves located onshore in Oman’s Block 5, roughly 280 miles northwest of Muscat.

Despite the positive sce-nario Oman has developed for oil and gas investors, there are still some challeng-es. Raoul Restucci, Managing Director of Petroleum Devel-opment Oman (PDO), says, “We are getting into more complex oil. Easy oil is gone, if it was ever there.”

Mr. Etebar agrees, saying, “The reservoirs in Oman are not like the huge reservoirs in [other parts of] the Middle East. They are more challeng-ing to find, but they are there. It requires patience and knowl-edge; different technologies.”

Another challenge, Mr. Changli explains, is that it is becoming increasingly costly to operate. “Health care en-hancement, manpower costs, material costs, and mainte-nance costs for the integrity of

the facilities and so on, are all contributing to the increase in operating cost,” he says.

And yet the CEO is confi-dent his company will contin-ue to expand. “Daleel is still in a position to grow in terms of production and investment. We are recruiting more peo-ple and implementing more activities to produce more oil for the country. Daleel will be very busy in the coming five years,” he says.

cced WIll hAve INVEsTED $800 mIllIOn by The end Of ThIS yeAr In OMAN’s OIL AND gAS IndUSTry, WITh AN ADDITIONAL $900 mIllIOn eArmArked ThrOUgh TO 2017

rAOUl reSTUccI Of peTrOleUm develOpmenT OmAn WArnS ThAT neW dIScOverIeS WIll be IncreASIngly mOre chAllengIng TO fInd And explOIT

In 2013, Daleel produced some 40,700 bpd, and targets 50,000 bpd for 2015

CCeD became the fourth largest producer of hydrocarbon in Oman in less than three years of operation

n Oman is the largest oil and gas producer outside the Opec.

n new oil and gas code: 2011 guidelines include provisions for health, safety, security and the preservation of archeological sites.

n Oman boasts a transparent and regulatory fiscal environment for new private investors in this sector.

n Oil and gas production continue to drive development as foreign partnerships help to build local capacity. The hydrocarbon industry continues to play a central role.

n While much of the enhanced oil recovery (EOR) technology being used in Oman has been developed abroad, the sultanate is building up substantial local expertise in its use. resulting knowledge transfer to Omanis and local firms could help them to gain work on eOr projects abroad in the future.

n A U.S.-based global oilfield technologies firm is planning to build an advanced oilfield chemistry production facility and an R&D laboratory in Oman.

n In September 2013, Oman and Iran signed an agreement that will see the development of a new submarine gas pipeline connecting the two countries as part of a 25-year, $60bn deal.

FAcTs & fIgUreS



n If you thought a trip to Dubai could give you a sense of middle eastern tourism as a whole, think again. Oman has a rich culture all its own. hawazen Esber, cEO of The Wave, Muscat, says, “Oman has an authentic history and culture and Omanis are dedicated to developing their country through traditional values.” This, in turn, affords travelers with a culturally authentic travel experience.Oman’s history goes back more than 10,000 years to the Stone Age. modern archeological discoveries suggest that that’s when Al Wattih, in Muscat governorate, was first settled. This makes it one of the world’s very first cities. From there, the history only becomes more fascinating. Al midhmar Mosque, one of the world’s oldest mosques, still stands in Wilayt Samail.

The peninsula’s culturally authentic travel destination

hISTOry, cUlTUre And nATUre...OmAn hAS IT All

n Visitors can dive and snorkel in the Gulf of Oman, or play golf at the two-year-old, award winning golf course at The Wave, Muscat. At the right time of year, whale watching can also be a terrific activity for tourists to take part in. Maitha Al Mahrouqi, Oman’s undersecretary of Tourism, says, “We are so blessed by God to have this nature. We have the potential of adventure tourism, we have a massive potential in medical tourism. We have 1,000 types of tourism. But our main focus is definitely built on culture and heritage,” she says.visitors may also be interested in a night at the royal Opera house. ms. Al mahrouqi boasts that the opera house in muscat is “one of the best opera houses in the world”.

Teeing up and dressing up, all in a day’s rest

n For nature lovers, Oman is likely to be an ideal destination. It is home to such beautiful sights as Jebel shams, a 9,800-foot high peak overlooking the canyons of the Al hajar range and located just 150 miles from muscat. Then there is the town of bandar khayran, with its clear blue waters, filled with coral reefs perfect for snorkeling. finally, there are the beautiful and fertile wadis (valleys), where rivers and streams cut their way through rocky gorges, creating lush oases with palm trees and green grasses.“people will get tired of going to dubai – the traffic, noise, the size,” remarks bernard viola, general Manager of Al Bustan palace. “people won’t escape from new york, Tokyo, and hong kong and come to dubai for the same thing. here in Oman, the beauty is here, but the word is not out yet.”

Beautiful, diverse natural landscapes

“OmAnIS Are dedIcATed TO develOpIng TheIr cOUnTry ThrOUgh TrAdITIOnAl vAlUeS, And ThAT IS A prIme ASSeT ThAT needS TO be mArkeTed“

HAWAZeN eSBeR, CeO of The Wave, Muscat

“I WAnT TO fOcUS On WhAT OmAn hAS TO Offer, nOT Only AS A prOdUcT AS A cOUnTry, bUT OUr peOple And OUr hOSpITAlITy“

MAITHA AL MAHROUQI , Undersecretary of Tourism

despite its stunning landscapes and rich culture, Oman is only just now becoming a tourism hotspot in the middle east

“Beauty has an address” and it’s Oman

The Sultan Qaboos Grand Mosque in Muscat was inaugurated in 2001

With a popula-tion that hov-ers around 4 million, Oman

welcomed 2.2 million tour-ists in 2013, which was 9.8% higher than the previous year. This growth is thanks in part to a successful marketing cam-paign from the Ministry of Tourism, as well as the increas-ing number of upscale hotels to accommodate foreign guests.

One of the most impressive facilities is Al Bustan Palace, a Ritz Carlton hotel since 2011. The 26-year-old resort with a rich history for entertaining royalty and heads of state was originally built to host the Gulf Cooperation Council (GCC) Summit in 1985, and at the time “set the standard for the region,” according to the hotel’s General Manager, Bernard Viola.

Al Bustan Palace is set against

a dramatic mountain back-drop, and offers 200 acres of lush green gardens and a pri-vate beach, one kilometer long, overlooking the Gulf of Oman.

In 2015, one of Oman’s most stunning property de-velopments, The Wave, Mus-cat, will open two new hotels: Kempinski The Wave and Vil-lage Plaza Hotel.

The Wave, Muscat is a large freehold title waterfront desti-

ly recognized for its cleanliness and for its healthy marine life. Its location makes it a prime stop-over hub to the Mediterranean; as such it didn’t take long to start attracting yachts.

While the sultanate of Oman maintains its own distinct culture, with no intention of becoming the next Dubai, its proximity to the United Arab Emirates has certainly been helpful in developing Oman’s budding tourism industry. Mr. Esber says, “Dubai’s growth as a world-class tourism city has had a major positive impact on how tourists view and understand the Middle East region.”

Moreover, Oman, Dubai and Qatar have an agreement whereby visitors can travel among the three states with the same visa. This, coupled with the special 48-hour stopover sightseeing packages that the Omani Ministry of Tourism began promoting in 2012, have helped turned this must-see destination into a viable option for tourists hailing from as far away as Australia and the U.S.

“Building our branding awareness, this is the major task at hand,” highlights Maitha Al Mahrouqi, Undersecretary of Tourism. “We have an interna-tional brand and our motto is ‘Beauty has an address’.”

She adds that Oman’s beauty is a mighty natural resource that, once the Omani popula-tion fully comes to understand its importance, can help bolster the national economy and in a highly sustainable way.

Al Bustan Palace boasts a stunning location between the Al Hajar mountains and the Sea of Oman

nation with a sizable residential component. But CEO Hawa-zen Esber says this “is only 40% of the story”. The Wave, Muscat will also serve as a new hub for tourism, leisure, entertainment, education, business and culture.

“My focus is on bridging these different components with the residential to create a vibrant waterfront community,” Mr. Esber says.

While many similar build-

The Wave, Muscat’s marina was the first in the region to be awarded the international Clean Marina rating for cleanliness and marine life

Under The mOTTO “beAUTy hAS An AddreSS”, OmAn IS WOrkIng TO bUIld cOUnTry brAnd AWAreneSS, eSpecIAlly In The U.S. And eUrOpe

ing projects were put on hold or scrapped entirely in light of the 2008 financial crisis, Mr. Esber says, “Investors and stakeholders of The Wave, Muscat charted their own path and invested heavily in deliver-ing the core public assets such as the golf course, marina and breakwater, which provided the confidence for residential investors to return quickly because of the reliability of the developer to deliver.” As of now, The Wave, Muscat is on schedule to be completed in the next five years.

The parts that have been completed are already making waves in Middle Eastern tour-ism. Just two years old, the golf course has already been award-ed the Gold Award for “Best Golf Course in the Region” at the MENA Travel Awards, and it is home to the annual National Bank of Oman PGA Challenge Tour Golf Classic. The marina at The Wave, Muscat is the first in the region to be international-


tuesday, november 18, 2014 oman · 2015-01-15 · this supplement to usa today was produced by...

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