Our fuels are backed by unique technological expertise, and over 100 years of research and development by some of the best scientists from around the world.

Shell Super is the only petrol available in Oman which has a special formula designed to give you extra kilometres* at no extra cost.

QUALITY FUELS DESIGNEDFOR EXTRA KILOMETRES*

AT NO EXTRA COST.

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*Comparison between a standard fuel and the same standard fuel containing our fuel economy formula. Actual benefits may vary according to vehicle, driving conditions and driving style.

2 July 2011

Mayank Singh

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

Senior DesignerM. Balagopalan

Senior PhotographerRajesh Burman

PhotographerMotasim Abdulla Al Balushi

Cover conceptSandesh S. Rangnekar

Production ManagerGovindaraj Ramesh

MARKETING

Business HeadJacob George

Senior Advertising ManagerAvi Titus

Advertising ManagerArif Abdul Bari

Assistant Advertising ManagerSanjeev Rana

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

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 © 2011 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 132 July 2011 E-BUSINESSH

olding up an iPhone 4, one of the speakers at a recently held Gartner

Summit on Enterprise Architecture in London said, “As a mere phone,

this is a terrible phone, but it is probably one of the best smart phones

around and there is no going back.” How true, the march of technology

is an irrevocable and linear trend. According to Gartner Research, 50

per cent of the technology and equipment currently in use will be obsolete over the next

ten years. The pace of change is not merely going to quicken but get turbocharged.

The promise offers a big business opportunity for companies. The Middle East region

is catching up rapidly in the IT sweepstakes. According to a recent report from the

Economist Intelligence Unit, the Middle East IT services market is likely to hit

$3.5bn by 2012. There are 41.8mn internet users across 16 Arab countries with Arabic

emerging as the seventh most popular language on the net. Oman has been going

through its own digital revolution. The IT services market is poised to grow by 10 per

cent reaching $0.53bn by the end of 2011. According to Arab Advisory Group data,

cellular penetration in Oman stands at 132.9 per cent. This growth has made Oman

an attractive IT destination for local, regional and international companies. Given the

right enablers, the sector has the potential to emerge as a regional powerhouse. This

issue’s cover story gives a few pointers in this direction.

As promised, the second edition of Oman Green Awards (OGA) proved to be a thumping

success. The post event reactions, press coverage and word of mouth goodwill

generated by OGA has helped to raise environment consciousness in the Sultanate. A

number of other organisations have initiated environment conservation efforts in its

trail and it is heartening to see the Green Oman movement gaining traction.

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

4 July 2011

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

GREECE PROBLEMS RESURRECTEDSovereign debt concerns in Greece have once again come to the fore, sending global stock markets into a tailspin. Economic chaos seems to have once again re-surfaced with growth in the US going nowhere, and lower than anticipated growth rates in emerging economies like India and China. All predictions that growth in the major economies would

Khalfan al Rahbi, Executive Editor of Alam al-Iktisaad Wal A’mal (AIWA), Oman’s leading Arabic business magazine, has won the prestigious media excellence award for the year 2011 by the Ministry of Information. He was felicitated by HE Hamad bin Mohammed al Rahbi, minister of information, at an august award ceremony organised by the ministry at Intercontinental Hotel.

Khalfan’s article on ‘fake portfolios’ published at AIWA’s April issue titled ‘the dream of being rich turned into a nightmare’ got the third place in features category of the awards . The article looked into how various fake portfolios operating in the Sultanate had cheated innocent people

by making them believe that their money will be invested properly. The swindlers were arrested by the Royal Oman Police and referred to the court for punishment.

Shaikh Abdullah bin Shuwain al Hosni, undersecretary at the ministry of information, says that 533 entries were considered for this year’s media excellence awards, an increase of 217 entries compared to 2010. Apart from newspaper and magazines articles, various radio and

television programmes were chosen for the awards. The biannual media excellence award is set up by the ministry of information to honour Omani journalist working in the different local media institutions.

Khalfan al Rahbi bags media excellence award

see an acceleration during the course of the year, now seem to be far-fetched. As things stand now, it seems that the economic recovery around the globe still seems to be fragile. All eyes are now on the Federal Reserve to see if a third round of Quantitative Easing III. If that does happen, we may well see another rally in commodity prices, which may not be desirable at this stage.

Anil Fernandes, Seeb

CORRIGENDUMIn the cover story of OER’s May issue, it was erroneously stated that Oman Cables Industry had 100 people with an Omanisation of 70 per cent. Oman Cables Industry has 640 employees with an Omanisation rate of 55 per cent. The error is regretted. – Editor

Mohammed Redha A. Jawad, Acting CEO, BankDhofar is presented with OER’s Best Banks in Oman trophy by Sandeep Sehgal, Chief Executive, United Media Services. BankDhofar emerged as the No. 1 in Oman Economic Review - Gulf Baader Capital Markets Best Banks in Oman survey 2011

6 July 2011

Bridging the digital divide

OMAN GREEN AWARDS

For a greener OmanOman Green Awards has come of age as a

platform to honour and appreciate outstanding environmental vision in the Sultanate

43

INSIDE

FACE2FACERetire in peace

i2Offshore has launched a financial product that caters to the growing demand for

a pension and savings scheme that will complement the existing PASI schemes and

end of service payments for expatriates

40

FINANCELearn from best practices

Ashar M. Nazim, Director, Islamic Financial Services and Abid Shakeel, Financial

Services/Advisory, Ernst & Young, Bahrain talk about the roadmap and potential of

Islamic Finance in Oman

38

26

22PERISCOPEInvesting in gold mining, oil sharesGold’s role as a monetary currency and a store of value will only be amplified by the inexorable shift of financial power from Wall Street and Europe to Asia

64GOLF UPDATEIncredible performanceRory McIlroy has recently won the US Open Championship, his first major, setting record scores on his way to an eight-shot victory

8 July 2011

Editorial 2

Economy Watch 10

Event 12

Business Briefs 14

Executive Movements 20

78AUTO TALKThe Porsche Drift

BOOK REVIEWContrariancallJohn Paulson’s is a story of daring gamble and momentous triumph

68

INSIDE

69SPOTLIGHTSafeguardingagainst uncertaintiesAs a method designed to offer protection from the financial consequences of various disasters and uncertainties in life, insurance forms a vital part of sound financial planning

66CLOSE UPReliable energy leaderThe six-nation Gulf Cooperation Council leads the world in exports of crude oil and LNG

Auto News 80

Billboard 84

Market Watch 86

Gizmos 87

CARTOON CORNER By Kannan Murali

10 July 2011

ECONOMYWATCH

NUMBERSHealth check

Sources: Ernst & Young

Hospitals and clinics

0

180

120

160

140

100

80

60

40

20

2009

212

1970

55

172

Life expectancy (Life Expectancy – years)

73.4

2000

66.5

1990

51.5

1980

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80

60

70

50

40

30

20

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2009

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Hospitals beds (No. of hospital beds)

5190

2000

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1990

1879

1980

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1000

2000

3000

4000

5000

6000

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Doctors (Doctors per 10,000 persons)

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1990

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18.1

The healthcare sector of Oman has been one of the pivotal successes of the Sultanate’s modern Renaissance. The sector has achieved remarkable progress and the key indicators bear testimony to this growth. The Sultanate offers world class healthcare standards across various disciplines and treatments and this is being strengthened by the entry of new players.

12 July 2011

EVENT

Top achievers in Oman’s corporate world were felicitated with AIWA Awards 2011 for Best Performing Companies at a gala event

at Shangri-La Barr Al Jissah Resort & Spa. The awards have been instituted by Alam al-Iktisaad Wal A’mal (AIWA) Oman’s leading Arabic monthly business magazine, published by United Media Services (UMS).

Held under the auspices of HE Dr Rasheed bin Al Safi Al Huraibi, chairman, Tender Board and in association with Capital Market Authority, AIWA Awards 2011 attracted the top echelons of the corporate community and senior government officials in the Sultanate. The high profile event was powered by Voltamp, Vertu from Khimji’s Watches, BankMuscat, Hyundai Centennial and Samsung.

Delivering the key note address, HE Yahya Bin said Al Jabri, executive president, CMA says, “AIWA Awards reflect positively on the business environment and national economy apart from the winning companies. This award is an encouragement to the companies to become more competitive and improve upon their performance. This quest for leadership will ultimately strengthen the national economy.” On the occasion, UMS’ chief executive Sandeep Sehgal states, “Our endeavor behind AIWA Awards 2011 is to celebrate the success of Oman’s corporate sector that has

SPURRING COMPETITION,BOOSTING ECONOMYAIWA Awards 2011 for Best Performing Companies

felicitated top achievers in Oman’s corporate world,

encouraging them to improve upon their performance

and strengthen the national economy

LARGE CAPAhli BankNawrasOman Oil MarketingBankDhofarShell Oman Marketing

MID CAPAl Anwar Ceramic TilesMuscat FinanceOman RefreshmentA’Saffa FoodsAl Omaniya Financial Ser.

SMALL CAPOman ChromiteMuscat GasesOman Fiber OpticsOman ChlorineSahara Hospitality

Winners of AIWA Awards for Best Performing Companies

continued to excel despite challenges from different quarters and has met its responsibilities towards the shareholders and society admirably.”

The event was marked by an amazing display of violin playing in a bubble by a renowned international artist. Towards

the end, an enthralling performance by an all-Oman Orchestra group left the august audience gasping for more. AIWA Awards 2011 was supported by Al Shabiba, Times of Oman, Sablat, Al Wisal, Merge FM, Ruwi Modern Printing Press (RMP), SPANCO, Gulf Brands and Mawarid Trading.

12 July 2011

13July 2011

Khalfan Al Rahbi, Executive Editor, Alam al-Iktisaad Wal A’mal HE Yahya bin Said Al Jabri, Executive President, CMA

AIWA Award for Excellence in Corporate Leadership – BankMuscatAIWA Award for Excellence in Corporate Leadership – Omantel

AIWA Lifetime Achievement Award – Sheikh Suhail Salim Bahwan – received by Salim Saad Bahwan AIWA Global Omani of the Year Award – Mohammed Al-Barwani

Dazzling display of violin playing in a bubbleUnveiling of Jawharat Oman – which chronicles 40 Super Achievers of the Sultanate

13July 2011

14 July 2011

BankMuscat hosted a round-table discussion at its headquarters recently to deliberate the prevailing economic situations, aspira-tions of younger generations and best practices for the way forward. The discussion held in the presence of HE Yahya Bin Said Al Jabri, executive

president of Capital Market Authority (CMA), was attended by CEOs and executives from top corporations across the Sultanate. The moderators of the discussion included some of the most prominent personalities in the Sultan-ate including Majid Al-Toki, managing resident partner of

Trowers & Hamlins, Dr Fahim Al Marhoubi, dean of college of commerce & economics, SQU and Dr Hatem Shanfari, professor, department of eco-nomics & finance, SQU.

The Port of Salalah General Cargo Terminal (GCT) handled a record 764K metric tonnes of cargo in the month of May 2011. This is the largest volume of cargo handled in any month since the port began operations in 1998. The GCT has seen double digit growth every year for over a decade and the record

volume of May is 31 per cent higher than the same month of the previous year. The GCT primarily handles local cargo and has seen little effect from the recession over the past few years with volumes continuing to grow. The largest growing exports from the terminal are limestone and gypsum which now account

for 58 per cent of exports. This growth in business is due to an increasing demand for minerals from the subcontinent and Oman has some of the highest grade minerals as a natural resource. Cargo handled at the Container Terminal during May was 267K TEU (20 foot container equivalent units).

BANKMUSCAT’S ONLINE TRADING CAMPAIGN Marking a pioneering initiative, BankMuscat has created a buzz, becoming the first corporate in Oman to tap social media to attract tech-savvy customers to the bank’s innovative products and services. Making an online splash, BankMuscat has effectively unleashed social media to catalyse positive changes towards online trading.

NOKIA’S ARABIC OVI STORENokia has announced full Arabic support for its popular Ovi Store across all existing platforms. Consumers whose devices are set to the Arabic language user interface will automatically view the Ovi Store in Arabic when entering. “Arabic is the third most spoken language in the world with more than 300 million native speakers,” says Tom Farrell, general manager, Nokia Lower Gulf.

THE WAVE PROJECT SHOWCASED FOR KUWAITIS Oman’s premier $3bn integrated residential and tourism project was recently showcased for the first time to Kuwaiti investors and members of the press at the Marina Hotel following its milestone handover of 500 homes. In 2010 alone, the project celebrated over $90mn in off-plan sales.

HSBC NAMED BEST SUB-CUSTODIAN BANK 2011 HSBC Securities Services (HSS) Middle East has been named “Best Sub-Custodian Bank” in Oman and the Middle East by Global Finance magazine in its eighth annual ranking of the “Best Sub-Custodians”. The bank also secured seven other country awards across the MENA region.

CEOs brainstorm future strategies

Oman Air has expanded its cargo trucking services by setting up Pan-European trucking in partnership with Jan de Rijk Logistics. Pan-European trucking will provide road feeder services covering Oman Air’s major European gateways of London Heathrow, Paris Charles De Gaulle, Milan Malpensa,

Munich and Frankfurt, with Zurich following later in the year. Jan de Rijk Logistics will also provide offline handling services across Europe for Oman Air.

Announcing the new service, Oman Air’s chief commercial officer, Abdulrazaq Al Raisi, says, “We are delighted to

be working with the highly experienced specialists at Jan de Rijk Logistics to provide cargo trucking services in Europe. Pan-European tucking will complement our recently launched Pan-GCC trucking services and we are confident that it will prove to be a vital element in the expansion of the Oman Air Group.”

Oman Air launches pan-European trucking

Record cargo at Port of Salalah

OER and AIWA were the media partners for the event.

Omantel’s procurement and contracts division has received international recognition for the quality of its systems with the awarding of the prestigious ISO 9001:2008 certification at an event held at the company’s Muscat headquarters, recently.

Omantel’s CEO Dr Amer Al Rawas was officially presented with the certification in the presence of HE Dr Rasheed bin Al Safi Al Huraibi, chairman of Tender Board and Sudhir Pandra, regional manager, Velosi Middle East, representing the internationally renowned ISO certification authority. Omantel’s

Omantel gets ISO 9001:2008 certification

procurement and contracts division is responsible for ensuring the procurement of all equipment and services required by the company

to efficiently and effectively manage its operations across the sultanate. Speaking at the presentation ceremony, Dr Rawas says, “As a business

Omantel is fully committed to testing our services at the highest international level to ensure we are on a continual road of improvement.”

16 July 2011

STRONG BUSINESS GROWTH FOR OMANTEL BUSINESSOmantel Business, the corporate arm of Oman’s leading telecommunications company, has announced strong business growth for the first five months of 2011 as it strengthens its position as the telecoms supplier of choice to the Sultanate’s private and public corporate sector. Omantel Business has seen growth of eight per cent in terms of new business customers and companies that have moved back to Omantel.

MPIRE FORAYS INTO SOCIAL MEDIA MARKETINGMPiRe, a Muscat-based boutique PR firm, announced that it has officially expanded service offerings to include social media marketing. Services will allow greater impact and outreach in online presence, and allow clients to market and communicate via densely populated online networks.

NBO SPONSORS SALON UBHARNational Bank of Oman’s “Al Sadara” Wealth Management, in coordination with Ubhar, recently organised the fourth Salon Ubhar, aimed at discussing and sharing diverse artistic and cultural interests of the Omani community, at Bareeq Al Shati Commercial Complex in Qurum. The function was led by Eyhab Al Hajj, co-founder and executive director from Prosper Management.

AMERICAN EXPRESS NAMED BEST CORPORATE CARD American Express Middle East won the award for the “Best Corporate Card” in the Middle East at the an-nual Smart Card Awards Middle East. Mazin Khoury, chief operating officer, American Express MENA region, received the award at a glittering award ceremony in Abu Dhabi.

LBH Zawawi to operate out of Sohar

Microsoft Oman signs MoU with TawasulMicrosoft Oman signed a memorandum of understanding with Tawasul for launching the “Digital Inclusion” initiative for civil society organisations CSOs (non-governmental organisations-NGOs) in the Sultanate.

The partnership is aimed at advancing the e-maturity of Oman and expanding the e-skills of Omani youth and women through NGOs. In this initiative, Tawasul, the first national, independent and private think tank which promotes an effective and

efficient civil society in Oman, will serve as an umbrella organisation for other NGOs in Oman. The digital inclusion programme will thus support

various NGOs across the sultanate by empowering them with specific IT skills through access to software, applications and ICT tools.

Jotun Paints opens new warehouse

Jotun Paints Oman has expanded its operations by investing in a state-of-the-art external warehouse near to the existing factory at

Rusayl Industrial Estate. The new warehouse is designed to cater to the demand of increasing volumes in the paint market in Oman. It

will double the capacity of the existing facilities. Jotun Oman is also introducing a new ERP system which is aligned to Jotun’s global ERP system. The new warehouse will utilise Auto ID Data Capture (AIDC) technology, such as barcode scanners, mobile computers, wireless LANs and potentially Radio-frequency identification (RFID) to efficiently monitor the flow of products. There is batch synchronisation with a real-time wireless transmission to a central database.

LBH Zawawi Shipping & Logistics has announced the commencement of its operations in Oman at the port of Sohar. A leading operator in the shipping agency business worldwide specialising in dry and

liquid bulk commodities, LBH Group was founded in the Netherlands almost three decades ago and currently has its presence in 20 countries covering six continents. “Together with our partners, we are looking

forward to extending our services to the shipping and logistics community active in this region and explore various opportunities in this growing market,” says Jan Lagendijk, president of LBH Group.

Loay International LLC, the authorized distributor for Epson’s complete range

of Printers, Peripherals, Projectors, Large Format Printers, Epson Solutions

for retail and hospitality in Oman launches the new Epson’s Business

inkjets range designed for a wide range of SME’s, Large Corporates and

Governments.

Epson’s new office business inkjets ranges are more competitive than ever,

with colour that costs upto 50% less than competitive lasers. The combination

of Speed, versatility, print quality and value, makes these products a genuine

alternative to laser printers for small business users.

Epson Business Inkjet B310N/B-510DN (www.epson.co.uk)

Give your business the benefit of our highly productive, high quality printer

and experience first class colour printing with pleasingly low running cost.

Maximise productivity with print speeds upto 37 ppm while enjoying full

media flexibility and excellent reliability. You can also adapt the Epson

Business inkjet series B-310N and B510DN to the individual needs of your

business, including the office, retail, small shops, medical and educational

environment. Epson’s Business Inkjets are tailored for High Productivity,

Excellent reliability and with extensive media support ready for your business

straight away.

Epson’s new Business Inkjet B-310N gives a monthly cycle of upto 10,000

pages and B-510DN gives a monthly cycle of 20,000 pages due to the Micro

Piezo print head which lasts the life of a printer and a very strong paper

feeding mechanism. The Auto Nozzle Check System keeps the print head

clean to maximise print quality at any time and automatic Duplexing. And

thanks to high-speed networking you can share the use of the printer across

work groups. It also has extensive paper handling with 650 pages standard

capacity,

Print on a very wide range of media and paper sizes including; letterheads,

plain and recycled envelopes. It is also ideal for fast, crisp text and high quality

full colour marketing materials. You’ll experience the best in quality in either

colour or black and white text printing when combined with our pigment-

based Epson DURABrite Ultra Inks, which dry very quickly and are durable,

water and smudge resistant thanks to the ink’s special resin coating.

Professional printing with very low energy consumption, these power-

efficient ENERGYSTAR® qualified printers help reduce your impact on the

environment, whilst saving you money with lower energy bills.

ENGINEERED FOR SPEED

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18 July 2011

SHARP LAUNCHES LATEST AC TECHNOLOGYLeading global electronics manufacturer, SHARP has launched its new range of air-conditioners to a select audience of contractors, consultants and architects in Muscat. Sharp is keeping itself ahead of the crowd with the addition of two of its unique technologies, namely the ‘all aluminum heat-exchangers’ and ‘plasmacluster Ions’ into its line-up of ACs.

GULF AIR TO CHAIR WACRAGulf Air, the national carrier of the kingdom of Bahrain will be taking a leading role at the next annual Worldwide Airlines Customer Relations Association (WACRA) to be held from in September in Iceland. Gulf Air’s senior manager customer care & service quality control, Kavita Sharma Jassim, who is also the chairperson of WACRA, will be chairing the conference.

GEH LAUNCHES ‘GET FIT’GE Healthcare launched a global competition on Twitter to raise public awareness about cancer prevention and healthy living. For the next two months, the ‘Get Fit’ campaign will encourage people from all over the world to tweet about their own health and fitness activities that have been shown to reduce the likelihood of developing cancer.

BMW ANNOUNCES £500MN INVESTMENT IN UKThe BMW Group has announced an additional £500mn investment in its UK production network over the next three years and confirmed that the UK will be a production location for its next generation MINI models.

Dr Salim Al Ruzaiqi wins Pan Arab web awardDr Salim Sultan Al Ruzaiqi, CEO of Information Technology Authority (ITA) has been named ‘IT Man of the Year’ by the Pan Arab Web Award Academy, at the seventh Pan Arab Web Awards, in Beirut, Lebanon. Considered as one of the top web awards programme, the Pan Arab Web Awards event was created to recognise excellence in web design, development and showcase the creativity in a competition organised in different Arab countries for the best website in the Pan Arab region. Through

Nawras unveils VAMOSNawras has recently unveiled VAMOS, a new feature designed to enable customers to benefit from greater capacity delivered over an existing network without the need for operators to build additional infrastructure, at the Annual Mobile Network Optimisation

Summit in Dubai. Nawras is the first operator in the world to implement Ericsson’s VAMOS (Voice services over Adaptive Multi user channels on One Slot) feature and test it. VAMOS is a new way to expand the capacity of an EDGE network in order to provide greater service

for more customers without a corresponding need to increase hardware. Nawras engineers are working with a team from Ericsson to study and record the performance of this innovation. Results are very promising and Nawras was able to outline the success achieved to date.

Bank Muscat to finance Freezone SoharBankMuscat and Freezone Sohar recently signed an agreement for financing the

infrastructure development of the first phase of Freezone Sohar. Funding from

BankMuscat will cover around 80 per cent of the estimated RO30mn investment that will go into the development of infrastructure for Phase 1 of the free zone. This development is slated to be completed by December 2013. Top officials of the free zone authority inked the agreement with BankMuscat, marking the financial close of the infrastructure financing of a 500-hectare plot.

the Pan Arab Web awards event, participants have the opportunity to widen contacts and networks, foster cooperation, enhance knowledge, build capacities and exchange information. Dr Al Ruzaiqi was singularly

selected for the ‘IT Man of the Year 2011’ for his outstanding achievements promoting the Arab digital world and for his unwavering commitment to the e.oman strategy and developing the IT industry in Oman.

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20 July 2011

P K Raj has been appointed as the new general manager of Asian Paints in Oman. The appointment of Raj is set to further strengthen the company’s position as a colour partner of choice. Raj started his career with Asian Paints (India) in Mumbai and after a long stint in Bangalore, Guwahati and Kolkatta, he was deputed to the international business operations of the company in South Pacific region. He had served at Asian Paints’ Tonga, Fiji and Mauritius operations. After the acquisition of Berger Paints International by Asian Paints in the early part of 2000, Raj was deputed to Berger Paints Emirates in Dubai, UAE as marketing manager and headed the sales and marketing of the organisation handling both UAE and Qatar for almost seven years.

Muscat Eye Laser Centre has appointed Dr Juan G. Gaviria, a highly qualified refractive surgeon, to its world-class team of professionals, to ramp up its clinical, surgical and research capabilities.

Dr Gaviria, a Colombian citizen of international repute, joins the centre as scientific director – a new post especially created in line with the centre’s expanding role not only as the nation’s premier eye-care facility in the private sector, but also as an up-and-coming specialist research institution in its own right. In his new role, Dr Gaviria will provide added impetus to the centre’s growing scientific, clinical and surgical responsibilities.

GE Lighting has appointed Diederik de Stoppelaar as director of the company’s new commercial organisation – Luminaire Solutions. Diederik will lead a team of industry experts to provide effective lighting design and specification assistance to end users across a number of key market segments. Diederik will be leading a new team, which will focus on the best in class solutions for the core market segments: indoor commercial LED luminaires, indoor core luminaires and outdoor lighting. Simon Fisher will lead indoor commercial LED luminaires as general manager for the Europe, Middle East and Africa (EMEA) region. He will head both project and indoor product and lighting design teams to drive innovation in LED solutions across industrial and commercial interiors.

Zurich has appointed Samer Abou-Jaoude as chief administrative officer for its general insurance business in the region. Reporting directly to Maroun Mourad, CEO of Zurich’s general insurance business in the Middle East, Samer will be instrumental in supporting Zurich’s growth initiatives for the region across all segments and will work closely with country general managers to accelerate the build-up of Zurich’s retail operation. The addition of Samer Abou-Jaoude to the Zurich team comes at a pivotal moment for the company as it gears up to roll out its broader general insurance proposition. Samer brings both multinational and regional expertise to the table. He has extensive operational, project management and consultancy expertise in the insurance industry.

JAIFER AL KHABOURI TO REPRESENT OMAN IN DSSJaifer Al Khabouri, a fourth year student at the Modern College of Business & Science was chosen to represent Oman in the sixth edition of the highly coveted Dubai Summer Surprises (DSS) Apprenticeship Programme 2011. He was chosen by Dubai Events and Promotions Establishment (DEPE).

AUB group CEO wins Euromoney awardAdel El-Labban, member of the board of directors of Ahli Bank and group CEO and managing director of parent group Ahli United Bank B.S.C, was announced as the 2011 recipient of the “Outstanding Contribution to Financial Services in the Middle East” award by Euromoney, a leading international financial publication. The award, which

honours banking leaders who made major contributions to advancing the financial services industry in the Middle East over the years, was formally presented to El-Labban at a special award ceremony held in Dubai, attended by some of the region’s most senior bankers and government officials. Euromoney editor, Clive Horwood says,

“Adel El-Labban has clearly made a name for himself as one of the most effective chief executives of his generation. The leadership he provided at the helm of some of the region’s most successful banks whether in Cairo, London or Bahrain, was instrumental in consistently raising the bar for banking in the Middle East.”

22 July 2011

Investing in gold mining, oil sharesGold’s role as a monetary currency and a store of value and hedge against inflation and deflation will only be amplified by the inexorable shift of financial power from Wall Street and Europe to Asia

BY MATEIN KHALID

Gold was the ultimate asset class in the past decade, rising from $260

in 1999 (when the Bank of England sold its bullion reserves under orders of the then Chancellor Gordon Brown!) to $1,577 in May 2011. The debasement of the dollar under George W. Bush after 9/11, the Federal Reserve’s zero interest rates and successive liquidity creation sprees, the geopolitical shocks in the Middle East, the Greek/Portuguese sovereign debt crisis, the determination of central banks and private investors in the emerging markets (particularly India and China) and speculative flows from macro hedge funds all combined to create the most spectacular bull run in gold since the 1970s.

Yet it is important to remember that even secular bull markets can have savage short term corrections, as gold did in summer 2006 and winter of 2008, after the failure of Lehman Brothers. I am now nervous about gold at current levels or at least above $1400. For, first of all,

risk aversion on Wall Street and a soft economy could hit prices. Secondly, the collapse of the Gaddafi regime or another ECB/EU/IMF bailout of Greece would reduce risk premia in the yellow metal. Besides, rising interest rates in India, China, Russia and Brazil reduce the appeal of gold to their citizens and sovereign wealth funds. Moreover, Saudi Arabia’s decision to raise oil production will lead to lower prices for oil and gold. George Soros has sold $800mn in gold and publicly called it the “ultimate asset bubble”. Short term, I agree. Long term? No way.

It is entirely possible that gold could correct down to the $1,350-1,450 range if there is a meltdown in the financial markets. However, the macro forces that triggered the bull market are not going to disappear. The European monetary union has been devalued by Greece. The crisis in the Arab world has escalated in Yemen, Syria and Libya. The Federal Reserve cannot raise rates and tighten liquidity as long as one-third of homeowner mortgages are underwater and the unemployment rate is 9.1

per cent. The US budget deficit is now a colossal $1.5trn and Uncle Sam is de facto bankrupt. With the Euro’s Greek woes, the only viable diversification option for dollar-overweight central banks and sovereign funds in the Gulf, Southeast Asia, China, India, Russia and Latin America is, after all, gold. Gold has been a monetary currency for 2000 years because it is a store of value and hedge against inflation, deflation, fickle governments and reckless deficit spending. This role will only be amplified by the inexorable shift of financial power from Wall Street and Europe to Asia, the new hard money epicenter of world finance at a time of negative dollar real interest rates. It will not surprise me to see gold prices rise as high as $1,800 in the next 12 months. The trend is your friend until the trend comes to an end and this trend has not come to an end.

Investors who are reluctant to buy a ten tola bar or a gold ETF at current levels should consider gold mining shares, who have lagged the performance of the gold prices despite a surge

The author is a renowned investment

banker based in Dubai

24 July 2011

PERISCOPE

THE FUTURE PRICE OF BLACK GOLD WILL BE DETERMINED IN THE ROYAL PALACES OF RIYADH AND JEDDAH, NOT THE GLASS TOWER OPEC SECRETARIAT IN VIENNA

in operating margins and earnings growth. I can easily find miners whose valuations reflect $1,200 gold, not the $1,500 plus prices in the spot market. The idea is to focus on miners with low operating costs, long life reserves, no unquantifiable systemic political risk (I definitely prefer exposure to Canadian politics than, say, those of Congo or Kazakhstan!) and an unhedged asset book.

Goldcorp is one of the world’s leading gold mining companies, with a dozen mines in the US, Canada, Mexico and Argentina. Goldcorp trades on the NYSE under the symbol GG. The shares have fallen from 56 as gold has corrected to 46 but I would ideally wait for the 36-38 as the optimal entry point. Gold mining output growth in Goldcorp is among the highest in the world and increases in cash flow/dividends will be exponential, though its valuation is not low at 17 times earnings. If Goldcorp falls to 36-38, the risk/reward calculus becomes compelling.

A cheaper alternative to Goldcorp is Newmont Mining,

the world’s leading gold miners. Newmont trades on the NYSE under the symbol NEM. Newmont has also corrected from its 65 high and would be an ideal buy in the 44-46 range where its valuation multiple would be a modest 10 times earnings, as Newmont can deliver $4.25 EPS in 2011, up from $3.80 in 2010. Newmont is trading well below its historic valuation ranges and, if bought at 45, could well enable long term investors to double their money in three years, as I estimate the price will be between $90-100 in the summer of 2014 if my projections on cash flow, dividends, EPS are accurate and gold/copper prices do not collapse.

The message of the last OPEC meeting at Vienna is unmistakable. Saudi Arabia has now decided to increase its production from the current 8.7 million barrels per day (mbd) to 10 mbd by late summer. The future price of black gold will be determined in the royal palaces of Riyadh and Jeddah, not the glass tower OPEC Secretariat in Vienna. The fall in oil prices will be amplified by the end of Federal Reserve quant easing (Bernanke’s money printing boosted the price of oil) and the unmistakable economic slowdown in the US, China, Eurozone and emerging Asia. Oil company shares have at least 10 per cent downside risk, even low beta colossi such as Exxon and Royal

Dutch Shell. Yet the strategic rationale for owning Big Oil shares is a simple macro equation. Global oil demand will grow at 2 million barrels per day every year in the next five years while new supply growth will be only one million barrels per day as long as global GDP growth remains above 4 per cent. The mathematics of black gold means the world economy will need 100 mbd sometime in the next five years. This means even if oil prices fall in 2011, the snapback will swift and the secular trend is (I believe) $160 Brent in five years. Exxon shares are valued at $85 West Texas even now, though I would reinvest in the world’s leading integrated oil super major in $74-76 range. Exploration companies (Apache, Marathon Oil) will remain takeover candidates. Offshore drilling, new seismic/drilling technologies and the capex plans of state-owned oil giants (e.g. Aramco, Rosneft, KOC, ADNOC, PDO) mean secular growth opportunities for Schlumberger, Baker Hughes and Halliburton, the world’s leading oil services companies.

SNAPSHOTGold prices may go up to $1800 in the next ¡12 months

Gold could correct down to $1,350-1,450 range if ¡there is a meltdown

George Soros sold $800mn in gold ¡

Shares of Goldcorp fell from 56 as gold corrected ¡to 46

COVERSTORY

26 July 2011

BankMuscat inaugurated its new headquarters at Airport Heights in December 2010. The 32,000 sq mtrs office built at an estimated cost

of RO50mn combines modern and traditional Omani architecture and interior design with a view to enhance the working environment. The custom made building incorporates the latest technology and trends, meeting the key requisites in terms of functionality, security and business continuity planning. IMTAC, working with its business partners, implemented the technology solutions for the new building by installing the network, data centre, structured cabling, IP telephony, IP Television etc. Says Fareed Al Hinai, vice chairman, IMTAC, “BankMuscat has set a benchmark and seeing the benefits that the bank has derived in terms of customer goodwill and functionality other organisations are sure to deploy a similar infrastructure.”

The state-of-the art technological prowess of the new office reflects the strength of the IT services industry in Oman. While the sector may not be in your face, IT companies in the Sultanate have been doing cutting edge work in the region and beyond. Looking for a

BRIDGING THE DIGITAL DIVIDEAbsence of skilled manpower, the lack of economies of scale and an

overwhelming dependence on the government sector are holding back Oman’s

IT industry from realising its full potential. A report by Mayank Singh

Fareed Al-Hinai, Vice Chairman, IMTAC

27July 2011

state-of-the-art centralised payment and collection platform to replace its legacy systems, the Government of Egypt was faced with the challenge of implementing a solution that was capable of managing seven million pension payments and six million plus salary payments per month. In addition, the system had to handle 20 million tax and custom transactions annually. The solution needed to be scalable, secure, improve citizen services, increase operational efficiency, reduce turnaround time and bring about speedy administration.

Bahwan CyberTek developed CUECENT ePay -- a National Payment Gateway Solution, to address these specific requirements and deliver on what the government of Egypt was looking for. The CUECENT ePay National Payment Hub provides an end-to-end ePayment solution for the Ministry of Finance and other government entities in Egypt. It has multi-language capability and supports multiple currency, organisation and location operations for payment of any defined services. The gateway facilitates

INSEAD AND WORLD ECONOMIC FORUM’S GLOBAL INFORMATION TECHNOLOGY REPORT 2010-2011

MENA Rankings World Rank 2010-2011 World Rank 2009-2010 Change

1. UAE 24 23 -1

2. QATAR 25 30 5

3. BAHRAIN 30 29 -1

4. SAUDI ARABIA 33 38 5

5. TUNISIA 35 39 4

6. OMAN 41 50 9

7. JORDAN 50 44 -6

8. TURKEY 71 69 -2

9. EGYPT 74 70 -4

10. KUWAIT 75 76 1

11. MOROCCO 83 88 5

12. LEBANON 95 - -

13. ALGERIA 117 113 -4

14. SYRIA 124 105 -19

15. LIBYA 126 103 -23

S. Durgaprasad, Director and CEO, Bahwan CyberTek

COVERSTORY

28 July 2011

the collection of taxes of over $220mn and custom collection of $190mn plus annually. Says Mahmoud El-Gamal director (operations), eFinance, Egypt, “We are pleased to find IT players from this region attain international acclaim and that too in creating valuable intellectual property.”

Bahwan CyberTek Group has emerged as one of the largest IT software products and services companies in the GCC region. An SEI CMMI Level 5 company, BCT employs over 1,300 knowledge professionals, spread across the USA, Middle East, Africa and India. BCT has over 300 customers globally, including Fortune 500 companies and clocked a turnover of over $101mn in 2010.

The growth has not been restricted to tier 1 companies but has also helped small and mid-sized companies. Integrated Systems, which defines itself as a systems integrator and solutions provider grew by 15 per cent in 2009 and 2010. The headcount of the company has grown from 24 to 42 over S Jayakumar, General Manager, International Information Technology Company

Fawzi Al Harrassy, Managing Director, Exceed IT

the last two years. Al Kay’s International which started in 2006 has recorded a year-on-year growth of 35 per cent since inception. An impressive feat even after factorising the small base effect. Al Kay’s has implemented a smart card system at an oil major’s offshore fields. The card enables the client to monitor the number of meals served by the contractor in the canteen on an ongoing basis. The oil company has reportedly recovered the cost of implementing the solution within four and a half months.

ITA driven initiativesA large part of the credit for fostering a digital culture in the Sultanate rests with the Information Technology Authority (ITA). The Authority was established in 2006 as a part of a national strat-egy regarding e-governance and build-ing a digital strategy. Since then, ITA has undertaken a number of IT related infrastructure projects, helped the gov-ernment to provide its services online and has equipped public sector employ-ees with the right skills to benefit from technology. Says S Jayakumar, general

COVERSTORY

30 July 2011

manager, International Information Technology Company (IITC), “ITA has brought about a focus on the industry as a standard driving entity. It is encourag-ing the usage of IT and bringing in an ICT culture.”

As a part of its mandate ITA is undertaking a number of ICT related initiatives. As a part of the National IT Training and Awareness Framework (NITTA), it is working on a nation-wide eOman initiative which aims to develop ICT awareness, skills and capability within the government and the community. The Government IT Training and Certification (GITC) project under NITTA aims to provide internationally recognised digital literacy certification to all civil service employees in a phased manner during the period 2008- 2011.

The Authority is training 100,000 government employees as a part of GITC programme. Replacement tests for 40,000 employees have been completely recently and over 23,000 civil service employees

have finished training. Community Knowledge Centres (CKC) are being established throughout Oman to provide free training of basic IT skills. Anyone from the community who is literate and above the age of 15 is eligible to join these centres. These centres also double up as places where people can access the Internet or use government services online.

To facilitate public access to government services through a single entry point an official eGovernment Services Portal has been launched. The portal serves as the main gateway to electronic services offered by the government leading to convenience and cost savings. A National e-Payment Gateway (ePG) allows secure online payments (e-payments). The ePG will operate as a critical shared service within the e-governance architecture along with Oman’s forthcoming Government eServices Portal. The gateway is expected to increase the adoption of e-Services along with electronic payments, particularly Internet-enabled payments which are easy and efficient.

A Data Centre has been conceived as a part of the Digital Oman Strategy. The Data Centre will enable government organisations to provide better business continuity and more effective risk management. Says Fareed, “ITA is rolling out a number of national level infrastructure projects and focussing on security in a big way.” An Innovation and Support Center (ISC) has been established to provide ICT incubators for local entrepreneurs, nurture skill and to transfer knowledge. The first centre, established in association with Microsoft Corporation, houses consultants who work with a local team to identify, design and implement innovative solutions to benefit the government of Oman.

Fillip to IT business The Digital Oman Strategy has come as a shot in the arm for IT companies due to its business potential. And a number of players have been quick to seize on the attendant opportunities. Exceed IT Services and Training, a Microsoft certified gold partner and Microsoft

Sheila H. Jamal, CEO, Al Madina Group of Companies Rahul Bhavsar, Business Head – Middle East, Gulf IT

( 3 S

tar )

( 4 S

tar )

COVERSTORY

32 July 2011

authorised large account reseller has signed an agreement with Oman’s government to provide 22 services like capacity building, knowledge transfer, implementation, deployment etc. The company works with ITA to promote digital literacy across the country. Exceed has trained 1,000 people making them computer literate. In addition, it is providing specialised training to 400 Omanis. These people are being imparted programming skills and a knowledge of applications.

The company signed an agreement with the government to deploy Microsoft’s Windows 7 operating system on 60 per cent of the 31,000 desktops being used by the government in the country from December 2009-June 2012. This works out to 18,000 plus desktops in 70 plus government entities. Says Fawzi Al Harrassy, managing director, Exceed, “We follow an approved methodology in which we run a health check on computers, scanners and printers to see where they stand and what needs to be

done to upgrade their capabilities.” The company chose 60 Omanis from over 1,000 candidates and put them through a rigorous 12 month IT course. These Microsoft certified professionals have been deploying Windows 7 OS across various organisations. “As of today we have deployed over 14,000 desktops and we will reach over 18,000 desktops by June 2012,” adds Fawzi.

Given the sweep of government led initiatives it is hardly surprising that business from the public sector remains the mainstay of business for most Omani companies. The dependence on government led projects increased as private sector clients have become more cautious about spending in the wake of the global financial crisis. Says Haitham Abu Nasser, general manager/partner, Integrated Systems, “2008 was a big year in terms of business. In 2009 and 2010 though the private sector got hit, but the government kept spending on projects. Since February 2011 business has been slow as people

have become cautious and decision’s are taking longer.”

Faced with a slowdown a number of IT companies are innovating to stay ahead of the curve. Bhawan CyberTek has over the years spread its operations to countries like US, India, the Far East and in the Middle East region. This geographical diversification has stood it in good stead. The company acquired 21 new customers in 2010 in the US. These include Fortune 500 companies like Webster Bank, Biogin, SAIC etc. The subprime crisis forced a number of US based companies to look for small and medium sized partners which could deliver the same or better quality of products and services as large vendors at a more reasonable cost. This worked in favour of companies like Bahwan CyberTek.

Says S Durgaprasad, director and CEO, Bahwan CyberTek, “What has enabled us to maintain growth is that we played the game differently. We believed that we need to play the super competition role,

Haitham Abu Nasser, General Manager/Partner, Integrated Systems Tareq Hijazi, Country Manager, Microsoft Bahrain and Oman

33July 2011

while others competed for the run of the mill business. We made some investment in our product initiative and that has paid good dividends. The company built solutions for mission critical application environment in the government, banking and corporates and that’s a sustained growth model. We also went in for thought leadership contracts in the oil and gas sector with PDO.” As a part of the thought leadership programme BahwanCyberTek became the first IT company in the region to offer an outcome based contract. As a part of the contract, the deliverables and outcome are measured by a balanced scorecard method and the company’s earnings are proportionate to the value generated for the client.

IITC has tried to control costs by hiring less people and outsourcing some of its work. The company has outsourced ERP related work to Wipro, the Indian IT company. It also worked on bringing in new efficiencies in its workspace by using less resources to deliver more.

Says Jayakumar, “We diversified into areas like managed services, converged infrastructure implementation, portal implementation, virtualisation and went in for specialised services to meet demands from our customers and to differentiate ourselves from competition.”

New trends in the market “Oman is equivalent if not better in terms of IT preparedness to other countries in

the region,” says Ashok Sardiwal, CEO, IMTAC. The fact that global trends like Cloud Computing, Virtualisation and Convergence are making inroads into the market underscores the point. Says Eyad Shihabi, managing director and enterprise business leader for HP Middle East, “We are focussing on bringing in technological innovations to Oman and are offering Cloud Computing solutions with this in mind. HP has come up with a bundle of

Oman – Key Indicators Rank

Availability of latest technologies 57

Mobile Network coverage, % pop. covered 72

Government Readiness 13

Government Prioritization of ICT 22

Government procurement of advanced tech 11

Importance of ICT to Government vision 10

Mobile Phone subscription /100 pop 17

Government success in ICT promotion 19

ICT use & Government efficiency 18

Sunil Gandhi, Chief Operating Officer, Al Kay’s InternationalEyad Shihabi, Managing Director and Enterprise Business Leader for HP Middle East

Source: INSEAD report

COVERSTORY

34 July 2011

offerings that is focussed on private cloud and this will bring significant value and benefit to organisations.”

Gulf IT which has been selling Google’s Cloud Computing solutions in the market since April 2009, has notched up 60 clients in Oman. Says Rahul Bhavsar, business head – Middle East, Gulf IT, “Business was slow in 2009 and 2010, but 2011 looks promising. A number of large customers are talking to us as group companies want consolidation and a single view of various transactions.” The company recently signed a deal with the Khimji Ramdas group.

Cloud Computing offers clients a number of advantages. A study done by Gulf IT shows that a company with 100 employees would spend RO7,000-8,000 annually on running a conventional IT system (excluding the cost of buying hardware) while on a Cloud platform it would cost RO2,500. Apart from a price advantage Cloud offers enhanced capabilities, scalability and business continuity. So a company can start with five users and

upgrade to 5,000 overnight. Tareq Hijazi, country manager, Microsoft Bahrain and Oman says, “With Cloud you can expand your requirements dramatically. When the demand goes up for your product or services you can expand and vice versa. So you pay as you use.” The fact that the data is stored in large data centres minimises the risk of a breakdown and loss.

Despite such assurances there have been security concerns about Cloud Computing. Says Eyad, “We have a fully integrated solution with security at all levels. HP has invested $40bn in R&D and acquisitions in the last three years and a lot of these acquisitions have been in enhancing the security features of our portfolio.” Companies like Google have gone in for international quality certifications and audits like SAS 70 Type II and FISMA to reassure clients about security. Analysts feel that companies in Oman will adopt private cloud over the next three years, but it will take a while before the market gets comfortable with public cloud. Says Fareed, “Cloud

computing compresses deployment time, but since it is a new idea it will take sometime for clients to buy in.”

Converged Infrastructure is the other big theme that is making inroads into the market. In layman terms it means the convergence of various technologies in a data centre. Jayakumar explains, “Earlier you had different systems such as hardware, network, and applications coming from multiple vendors. This is changing as companies are now offering complete solutions into a converged infrastructure in a data centre, thus enabling efficient use of technology and cost savings for the customer.” HP, Cisco, IBM etc. offer clients a converged managed infrastructure in one console. This console manages the converged infrastructure which includes network, server, software, peripherals, storage etc. Virtualisation is another way of reducing infrastructure costs. If a company wishes to virtualise its server environment it can use a software application to divide one physical server into multiple isolated virtual environments in order to run

Baby Sam, Director Marketing, Al Kay’s InternationalRogeh Hajj, Chief Information Officer, The Zubair Corporation

COVERSTORY

36 July 2011

different applications. So if there were 10 servers running five applications earlier, the same applications can be run on five or less servers via virtualisation.

New regional entrants The debt problems that Dubai faced in 2009 and its fallout across the region has led to enhanced competition as companies like CNS, InterTech, IDS have come to Oman looking for business. Even Indian companies like Wipro, Infosys and Tata Consultancy Services have joined the fray. New entrants have led to aggressive price cutting and eroding margins. A CEO that did not wish to be quoted on the issue says, “It is not that we are averse to competition and our history is a testament to this, but we should be given a fair chance. If UAE based companies are coming and winning big projects in Oman then we should be given projects in the UAE on merit, but sadly that is not the case as the preference there always goes to their local companies.”

There is also a feeling that foreign companies winning business in the Sultanate are not committed to creating jobs for nationals and if the government is keen on promoting Omanisation, then it should strengthen home grown companies. Says Rogeh Hajj, chief information officer, The Zubair Corporation, “In the long term it is a matter of sustainability. Regional companies will not offer delivery or after sales support that well connected local companies can extend.”

Small and medium sized enterprises are also sore about the government’s predilection towards established names. Says Sunil Gandhi, chief operating officer, Al Kay’s International, “ There is no proper rating or evaluation of the top ten companies in Oman and as a result any contract above RO20,000 always goes to the bigger companies though our solutions and prices may be better.” SME’s feel that if they are not given a

fair chance then they will never grow in the market. Others though are more optimistic – “The government has started considering new technology partners and things are changing,” says Haitham.

Undeterred by these challenges, SME’s are adopting best practices. Kay’s IT (a part of Al Kay’s International) recently implemented a Quality Management System ISO 9001:2008. Says Baby Sam, its director marketing, “We strive to create long-term relationships with organisations by mapping their current processes and providing technology driven solutions for better profitability and bringing about a new dimension in the way people work together.” The Al Madina Group of Companies has similarly received an ISO 9001:2008 certification and it is working on introducing leading web based solutions and services.

The lack of skilled IT professionals in the country remains another major deterrent to growth. Though the government mandates a 35 per cent Omanisation level for IT companies a number of them struggle to meet these targets. Says Mohammad Sweidan, branch manager, Exceed IT, “Finding the right candidates with the right competencies remains a major challenge.”

Fawzi recommends incubation programmes for innovation and development to stimulate the industry. He feel that Oman endowed with the right resources but they have not been utilised properly. “Young Omanis are ready to work in the IT sector as it is seen as a comfortable and glamorous sector. The country can be a base for call centres in the region as the Sultanate offers a cost effective environment and good atmosphere,” he adds. Eng. Sheila H. Jamal, CEO, Al Madina Group of Companies says, “The private sector is not generating business like the public sector and the lack of knowledge centres in Oman remains a problem area.”

Durgaprasad adds, “Skill upgradation is the key. The government should insist on companies that do product development rather than trading of software products, as that the only way to grow the industry and generate employment.” He suggests that 4-5 IT companies in Oman should look at neighbouring countries and build competencies (in verticals like auto, oil and gas, banking etc) that can serve the regional market. This will create critical mass as the solutions can be replicated in other countries.

Looking aheadDespite such imponderables Oman remains an attractive market for MNC, regional and local companies. Says Tareq, “Oman is a stable market without large fluctuations and we see a lot of potential in Oman.” The government’s thrust on creating a digital society and a growing economy are the other factors contributing to this confidence. Says Rogeh, “We are very optimistic about ICT in Oman. There will be steady growth as the government is investing heavily in infrastructure and IT literacy is increasing in the Sultanate.” Like BankMuscat’s new headquarters , it’s probably an opportune time for local companies to start establishing new benchmarks in the region.

Mohammad Sweidan, Branch Manager, Exceed IT

38 July 2011

Q: The government has permitted Islamic Finance (IF) in Oman, what kind of business opportunity does this convert into?Nazim: The best way is to look at other markets in the GCC in terms of what IF has done for them and as Oman is very similar to these markets one can expect a similar result here too. We have seen that a majority of banks have asked for IF as a desirable feature, if not a deal breaker. This means that done rightly -- with the correct regulatory framework, the requisite talent pool and the right infrastructure, we believe that upto 60 per cent of the banking market would like to look at Islamic Banking (IB) as a preferred option. Oman has a GDP of $50bn and banking deposits of $42bn and we are talking about a 8-10 per cent market share over the next five years which translates into a $6bn IB industry on the retail side. The other opportunity is on attracting FDI, wherein Oman can emerge as a destination of choice for a number of IF investments. Large scale projects can look at having an IF tranche. So the country as a whole will have access to a new funding pool. Thirdly, it will promote an inclusive financial system and that would mean that a lot of SMEs which have chosen to stay away from conventional banking or a few retail customers who have stayed away from microfinance or the insurance industry as these were seen as being unIslamic will now avail of such opportunities. The

LEARN FROM BEST PRACTICES

Ashar M. Nazim, Director, Islamic Financial Services and Abid Shakeel, Financial Services/Advisory, Ernst & Young, Bahrain were in Muscat to address an Islamic Banking Seminar. Mayank Singh talks to them about the roadmap and potential of Islamic Finance in Oman

global IF industry is around one trillion dollars and despite the financial crisis it is growing in double digits.

Shakeel: Experience in other markets shows that IF grows rapidly after an incubation period of five years. Saudi Arabia, UAE and Kuwait are examples of how a 10 per cent growth rate gains traction after five years. From the customers perspective all things being equal – by which we mean products, availability, distribution, pricing, infrastructure and a guarantee that these products are genuinely Sharia compliant – the population in GCC countries would strongly prefer Islamic products. IF will continue to grow in double digits as more countries come on stream and

as excess liquidity in the Middle East multiplies. IF is poised to become more of a global offering than just being a niche offering.

Q: Now that the government has given the nod to IF, what needs to be done from a regulatory point of view and institutions?Nazim: The regulator needs to come out with a policy statement on regulating full Islamic banks and IB windows of conventional banks. This will be followed by a full-fledged regulatory framework that defines the risks, governance, capital adequacy and liquidity requirements of Islamic banks. I would say that Oman has a chance to take a leadership role in this field, although it is the last amongst

Ashar M. Nazim

FINANCE

39July 2011

GCC countries to allow IF, it can learn from others and think in terms of taking IB to the next level.

Shakeel: There are different method-ologies for the regulator to follow and the Central Bank’s role would be to un-derstand as to what is happening in other jurisdictions and then take a decision on what is appropriate for them. Putting in place the best regulatory regime would make Oman attractive not only for fi-nancial institutions and foreign players who want to do business here, but also for consumers.

Q: One of the criticisms levelled against IF is that unlike conventional banking IF is open to interpretation as there is no single model to follow. How can Oman insure that it stays clear of such problems?Nazim: What you are saying was the case 20 years ago, since then global industry setting bodies have come up. For example the global standard setting body for Islamic accounting standards is Accounting and Auditing Organisation for Islamic Financing Institutions (AAOIFI). It has 45 member countries and 200 different Sharia scholars from different schools of thought and markets, moreover it has a buy in from all the markets. On the regulatory side there is Islamic Financial Services Board (IFSB), which is headquartered in Malaysia. It has 300 members, like commercial banks, investment banks etc, bodies like BASEL, world bank, Islamic Development Bank, and these institutions have converged on a platform to develop a regulatory framework for the industry. Oman should align itself with these industry setting bodies and then customise according to its specific needs. This will ensure local relevance and class leading international best practices.

Q: IB also requires certain changes in commercial law, so that banks can own underlying assets. How long do such changes take?Nazim: There are a number of different underlying contracts for different financial products, it is not always necessary for the bank to buy these products like a house or a car and all this is a part of the learning process. The regulators too are going through the same journey as the financial

institutions and there will be regulatory changes which will be introduced but it will not be as dramatic as everybody is expecting. From a product perspective people need to understand that there are variations there.

Q: IF bucked the global financial meltdown to a large extent as it did not have as much exposure to collateral debt obligations (CDO’s) and real estate as conventional banks. Is this a major plus for IF?Nazim: The key strength of IF is that it is linked to the real economy. It is not a financial bubble like the conventional global financial system where only nine per cent of the money is linked to the real economy and everything else is exotic liquidity. IF has to be asset backed. All transactions have to be asset linked either to a lease, equity or trade. However IF has to mature and during the financial crisis we saw that banks which were focussed on their core banking business did well, but others who had large exposure to real estate got burnt badly.

Shakeel: The basic principles of banking still apply if you have assets they should be spread across various categories. IF is still in its early learning phase and this was the first crisis that it faced. What we are seeing in the last two years is that a recovery in asset prices has helped IB which had substantial real estate

exposure to recover in equal measure, and having learnt a lesson most of the banks are trying to rationalise their real estate assets. IB is not just for Muslims but it comes close to ethical banking or socially responsible banking and it is as appealing to non Muslims as Muslims. Ethical banking means that the roles and responsibilities of various parties have to be balanced, the money is invested in permissible activities etc.

Q: How do you see IF or IB shaping up in Oman in the coming years? Nazim: IB is not going to be a walk in the park for Oman as there is a lot of skepticism worldwide whether what is being offered is Islamic or not. Banks will have to address four key elements. One, they will have to understand their customers better, issues like whether they are happy with an Islamic desk within a conventional branch or do they expect a standalone branch where their money is separate from a conventional bank. Second, the regulator has to ensure that there are qualified Sharia compliant officers and a Sharia Board which can guide in the interpretation of the Sharia. Third, banks need to invest in enhancing their operational capabilities as Islamic and conventional businesses need to be kept separate and accounted for separately. Finally a regulatory regime has to be in place which is in consonance with international bodies and standards.

Abid Shakeel

40 July 2011

As with any rapidly emerging nation with a diverse and increasingly dynamic economy, planning for retirement is becoming a

growing issue in Oman. Countries around the world are facing a mounting struggle to provide their citizens with the rewards in retirement they would like to have, which means that companies within the public and private sector now have to look at introducing their own pension and savings schemes to plug this growing gap.

I2Offshore has come up with a proposal which gives an opportunity for an organisation to create its own bespoke and branded state-of-the-art corporate pension/savings scheme. It has been created to ensure the implementation of the most contemporary on-line financial systems in a pension/savings scheme that would benefit all employees at every level of employment and of any nationality helping to ensure the long-term welfare of an organisation’s whole workforce in today’s changing and challenging business environment.

The Muscat-based i2Offshore has recently launched this unique new pension and savings product that will bring significant benefits to employers and individual employees – both Omani nationals and expatriates.

“The new product is the first in Oman that gives individuals the opportunity to select schemes that can be genuinely 100 per cent capital-protected for the full amount of the investment, are highly flexible in how they are structured and have the security of being backed by a highly respected London-based pension specialist company,” says Barry Woodgate, senior consultant, i2Offshore.

Traditional bank and insurance-based schemes tend to be equity/bond based and no longer offer the flexibility required to ensure that investments are maximised and managed. If the global equity and or bond markets are having a period of volatility – so is your pension. Therefore, i2Offshore believes that to maximise the impact, the company corporate pension/savings scheme needs to be able to respond more quickly, have a more flexible multi-asset approach

i2Offshore has launched a financial product that caters to the growing demand for a pension and savings scheme that will complement the existing PASI schemes and end of service payments for expatriates.

Visvas Paul D Karra reports

expatriates.

“The new produthat gives indivto select scheme100 per cent cafull amount of thflexible in howand have the seby a highly repension specialisWoodgate, senior

Traditional bankschemes tend toand no longer

ore has launched a financial ct that caters to the growing

RETIRE IN PEACE

FACE2FACE

42 July 2011

FACE2FACE

with the flexibility to make investment decisions at a minute’s notice on a truly global scale.

Employer’s responsibilityWoodgate explains that this scheme will not take the place of Public Authority for Social Insurance (PASI) but will act as a complement to it. As an example if an individual is earning RO1,000 per month, in retirement from PASI within the private sector they will receive approximately RO350 per month. According to Woodgate, this means that without making sound provisions individuals will be worse off in retirement.

“This is why we feel that an implemented company pension/ savings scheme will bring great benefit to companies and the individual employees with added bonus of bringing huge benefits to Oman’s retirement structure, as PASI’s percentage is becoming significantly lower year on year. This can help to plug the growing gap and to help individuals to ensure that they have the savings in place to enjoy the fruits of their retirement, says Woodgate.

Currently under the terms of the Social Insurance Law, the PASI will pay social service benefits to Omani employees who have subscribed to the national insurance scheme and have properly invested in the scheme. The private employers are required to make 10.5 per cent monthly contributions towards the PASI fund while employees and the Omani government contribute the requisite balance into the insurance fund.

At the end of their service, Omani employees are entitled to receive social service benefits based on their last drawn aggregate basic salary.

In addition, as per Article 39 of the Omani Labour Law, expatriate employees are generally entitled to the end of service gratuity payment on the termination of their employee contract.

Benefits of the schemeOne of the key benefits of the i2Offshore system can be seen in recruitment, retention and rewarding of senior executives, and in general staff recruitment. With a scheme like this,

new employees will view the organisation as having a visionary outlook in looking after their future. This corporate pension/savings scheme will encourage staff loyalty and make them think twice before considering other career options and senior staff will have more rewards through the scheme.

Generally, employers are recognising the value from an employee engagement perspective, of providing end-of-service indemnities. Retirement or savings plans can also be an effective way to enhance employee engagement and at the same time potentially reduce liabilities associated with indemnities.

Individual investment strategyThe scheme will reimburse the individuals benefits/ savings back to the company within 24 hours if an employee leave or retires. If an employee leaves they can take their benefits/saving at the time of their departure – no lock up period – offering truly flexibility. And there is full on-line reporting and 24x7 internet access via a secure password and log-in.

i2offshore believes that companies who adopt the scheme make themselves more attractive to talented staff in an increasingly competitive labour market in the country — and also help in the longer-term retention of Omani nationals and expatriate employees.

Different accountsi2Offshore says that the product has already generated significant interest among the corporate sector in the Sultanate with many leading Omani organisations already signing up to the product and offering it to their employees. The scheme has been set up in a way that individual companies can brand the product as their own – giving a stronger ownership and sense of belonging to the organisation and its staff.

The beauty of the platform is that an employer can create a scheme that can match the profile of their workforce and meet the employee benefit strategy. Within the scheme will be the availability to individuals/members to each to be able to have their own specific investment strategy-giving clients the option to control investments.

Full protectionExplains Woodgate, “A key differentiator in our product is having trustee partners in the form of Brooklands Trusteeswho are regulated by the FSA/Bank of England, who operate out of offices in the City of London and Dubai and a financial nominee in the shape of Brown Shipley Private Client Bank, a FTSE 100 company in London. Having the pensions and savings in trust ensures the individual’s savings is fully protected.

“The product is already generating interest among Omani businesses, and we believe this will be a real added benefit to companies in their recruitment strategies in recruiting and retaining senior executives and staff, helping them to be seen as visionary in their approach to the financial security of their employees,” Woodgate says.

Investment flexibilityWoodgate added that another important asset for companies was giving them control of the investment strategy working with ourselves with a recommended approach for companies to adopt 100 per cent capital structured products that could give a growth return of 6-17 per cent per annum.

“We wanted to create a product that keeps companies away from the volatility of local or global equity and bond markets – especially in light of the recent global financial downturn from which no one in the world has remained immune,” he added.

The scheme offers multi asset class investing, with asset allocation of bonds both government and corporate, hedge funds, precious metals of gold, silver and platinum, commercial property, equities, commodities, currencies, private equity, cash. i2Offshore believes that diversification and managing the correlations within the client’s portfolio’s investment strategy is absolute key.

i2Offshore is an independent financial con-sultancy that has been operating in Oman for the past 15 years and also has offices in Kuwait and Baku and is part of the Tami-mah Consultancy Group, led by Shaikh Mohammed al Harthy, an aide to the cabi-net of the government of Oman.

The prestigious Oman Green Awards (OGA) 2011 were announced at Al Bustan Palace Hotel’s Majan Ballroom which

turned into a virtual green zone against a tapestry of green messages. Over 20 companies, institutions and ministries made it to the victory podium, having proven their green intent through measures that had the larger interest of the society.

OGA 2011 was presided over by HE Mohammed bin Salim bin Said Al Toobi, Minister of Environment and Climate Affairs, His Highness Sayyid Tarik bin Shabib, Editor in Chief, Oman Economic Review, and Sandeep Sehgal, chief executive, United Media Services (UMS). The OGA, conceptualised and initiated by UMS, and now into its second edition, was attended by a host of executives, institution heads and senior representatives from the corporate world. Officials from the Ministry of Environment and Climate Affairs, Muscat Municipality, Ministry of Health and Environment Society of Oman – main supporters of OGA 2011 – also attended the glittering awards ceremony.

OGA has earned recognition as a platform that honours and appreciates outstanding environmental vision and achievements in the Sultanate. It has,

simultaneously, raised awareness to the larger cause of environment and has encouraged companies to work towards this goal.

HSBC Bank Middle East Limited, Oman, won the ‘Green Campaign’ award, with the special commendation going to Electricity Holding Company. ‘Green Champion’ award went to Renaissance Services and the special commendation to Green Cover. Caledonian College of Engineering grabbed the ‘Green Education’ award, while American British Academy (an IB World School) won the special commendation in the same category. For Haya Water it was the ‘Green Footprint’ award, along with Cowi and Partners who picked the special commendation.

‘Green Habitat’ award went to Bank Muscat and the special commendation to Port of Salalah. Mawarid Mining picked the ‘Green Innovation’ award, with the special commendation going to Al-Abrar Petrogas. On the landscape front, it was Muriya Tourism Development Co who got the ‘Green Landscape’ award and Sultan Qaboos University the special commendation for its ‘Central Control System for Irrigation Water Management Project’.

The Ministry of Tourism and Carillion Alawi won the ‘Green Guardian’

award and the special commendation, respectively. ‘Green Research’ award went to the Directorate General of Agricultural and Livestock Research at the Ministry of Agriculture, with Vale Oman Pelletising Company collecting the special commendation in the same category.

Panasonic received the maximum votes in the ‘Public Choice Award’. ‘Special Jury Award’ was picked by Petroleum Development of Oman and the Department of Soils, Water and Agricultural Engineering of Sultan Qaboos University. Akshay Kumar Parija, Producer of ‘The Living Ghost’ received a special recognition in honour of his commendable work towards environment, through the entertainment media. ‘The Living Ghost’ has, previously, been nominated for an international film festival award at Cairo and the USA.

Over 120 nominations were received in the different categories that had corporate houses and individuals vying for the coveted trophy. The final results were collated on the basis of the marks given by an august panel of judges, who were guided by the effectiveness, innovation and creativity, impact, originality and leadership and continuity and sustainability of the initiatives nominated.

FOR A GREENER OMANNow into its second edition, Oman Green Awards 2011 has come of age as a platform to honour and appreciate outstanding environmental vision and achievements in the Sultanate. A report

43July 2011

OGA –

44 July 2011

Green Campaign AwardWinner:

HSBC Bank Middle East Limited – OmanSpecial Commendation:

Electricity Holding Company SAOC

Green Champion AwardWinner:

Renaissance Services SAOGSpecial Commendation:

Green Cover

Green Education AwardWinner:

Caledonian College of EngineeringSpecial Commendation: Aba-An IB World School

Green Footprint AwardWinner: Haya Water

Special Commendation: Cowi & Partners LLC

Green Habitat AwardWinner: Bank Muscat SAOG

Special Commendation: Port of Salalah

Green Innovation AwardWinner: Mawarid Mining LLC

Special Commendation: Al-Abrar Petrogas LLC

Green Landscape AwardWinner:

Muriya Tourism Development Co SAOGSpecial Commendation:

Sultan Qaboos University for the Central Control System for Irrigation Water Management project

Green Guardian AwardWinner:

The Ministry of TourismSpecial Commendation:

Carillion Alawi LLC

Green Research AwardWinner:

Ministry of Agriculture-Directorate General of Agricultural & Livestock Research

Special Commendation: Vale LLC

Public Choice Award Winner: Panasonic, Omasco

LIST OF WINNERS

Special Jury Award:

Winners:Petroleum Development Oman

Sultan Qaboos University, Department of Soils, Water and Agricultural Engineering

45July 2011

Sandeep Sehgal, CE, UMS

A cross section of the guests

HE Mohammed Al Toobi writing in the green pledge book

A group shot of Oman Green Award winners, Green Oman partners and jury members

Lamees Daar, Executive Director, ESO

HH Sayyid Tariq Bin Said receiving the Minister of Environment and Climate Affairs, HE Mohammed Al Toobi

The Sultan’s School students performing a skit

M B Holding Company receiving certificate of appreciation

Vale Oman receiving certificate of appreciation

Al Bustan Palace Hotel receiving certificate of appreciation

The Sultan’s School students performing a skit

Haya Water receiving certificate of appreciation

Panasonic receiving certificate of appreciation

Sandeep Sehgal with Ali Al Habsi

Gift plants

47July 2011

GREEN CAMPAIGN OF THE YEAR

SIMPLE ACTIONS, BIG CHANGES

SAVE ENERGY, SAVE THE PLANET

One of the best public awareness campaigns in the Sultanate, HSBC Oman’s Earth Hour 2011 instigates a shift in people’s mindsets vis-à-vis their role in saving the planet

Symbolically led by an Arabian Oryx named Noor (light), Electricity Holding Company’s Save Energy Oman is a national campaign calling for a change to the way we use electricity

HSBC Oman’s Earth Hour 2011 was an effective public awareness campaign highlighting the importance of some

simple measures in our daily life in reducing energy consumption. The campaign promoted public awareness on climate change by encouraging students, customers, employees, and the local community to reduce their energy consumption. Advocating a switch-over from incandescent bulbs to energy saving bulbs, HSBC has distributed over 8,000 complimentary energy saving bulbs to the public at all its branches, to all its employees, and to 1,000 students in two government schools in Muscat – Hassan Bin Thabit school for boys and Wadi Al Kabeer School for girls. The switch to energy saving bulbs is a sustainable solution as they would save up to 80 per cent energy and last up to six times longer than standard incandescent bulbs. It has also encouraged switching off the lights for 60 minutes during Earth Hour. The HSBC employees were equally engaged in the campaign, volunteering their time to deliver environmental awareness

presentations at the schools. The feedback was very much positive as it generated more demand from the public for energy saving bulbs and could instigate a shift in people’s mindsets vis-à-vis their role in saving the planet.

Electricity Holding Company’s Save Energy Oman is a national campaign to spread awareness among individual

and corporate consumers of electricity across the Sultanate on the importance of reducing energy consumption, especially during peak summer times. A cartoon character named after Noor, a white Arabian Oryx found in the Arabian and Omani desert, was made the campaign’s ambassador. The choice of ‘Noor’ was not only because she is Omani and looks beautiful but also owing to the fact that The Arabian Oryx is preserved by the

Omani government. The company’s brochures, sunshades and other branded materials for the campaign were distributed both in Muscat and beyond. The company also received paintings of “Noor” from School children who illustrated her switching off electricity or giving advice on saving energy. The campaign’s message along with Noor’s picture was also portrayed on ARAMEX vans which travel across the country for deliveries so that it can be disseminated among a large number of people. The company has also kept a pledge book specifically for the campaign. The campaign won a prestigious award in the UK for being the number one “Cause Related Marketing Campaign” as part of the UK’s Annual “Drum Marketing Awards”.

48 July 2011

GREEN CHAMPION AWARD

In an effort to explore the possibility of eco-friendly stadiums in the Middle East, Green Cover has introduced natural

infill materials in artificial grass instead of chemical materials at Bel Raimaitha Club Stadium in Dubai. The natural infill product has become the most favoured infill for football fields across the region. The composition of this product revolutionises the infill method for an artificial turf field. Thanks to this product, the stadium always looks fresh and tidy and imparts an eco-friendly feeling to the players. There is no smell of rubber in the hot climate. The project is cost-effective as it is not labour-oriented and no water or fertiliser is required.

Besides, quality and stability is assured. Weekly moistening of the infill will expand its life time up to 15 to 20 years. This natural infill can be recycled for agricultural use when the artificial turf comes to the end of its life. As an organic infill of plant origin, it is odourless and microorganism proof. It has characteristics to keep the median temperature of the synthetic turf lower than a rubber infill, very much like a natural grass temperature. The company is looking at doing the same in Oman by educating people about carbon emissions and cultivating a green culture.

The Office Green Team (OGT) of Renaissance Service is aimed at setting up a central department in each subsidiary

to document green activities at various locations and to share that information with the management, colleagues and the headquarters. The OGT could inspire employee action and awareness and document the green activities that were taking place at various multinational locations of the company and share the information with other green teams. As part of the initiative, literature and reviews of eco-conferences have been shared across the company subsidiaries, and presentations were delivered to the OGT and business heads, motivating companies to develop green agendas and individuals to actively organise recycling initiatives. The OGT is a voluntary team and its members are nominated for a period of three months. The meetings are scheduled weekly, and each OGT sets a short term agenda and presents it to the upper management for approval. It has served as a ‘green department’ meant to actively spread

the green awareness message to all levels of the company. Besides OGT, the company has also spearheaded a paper and plastic recycling initiative at the corporate office. Up to 45 kilos of paper is collected each week from offices and goes straight to recycling. Both the OGT and paper recycling programmes are sustainable in that they don’t require many resources and positively contribute to a better world with little consumption of resource. The meetings are conducted in natural light, and notes are taken on the back sides of used papers.

A GREEN DEPARTMENTRenaissance Service’s Office Green Team (OGT) has served as a ‘green department’ spreading the green awareness message to all levels of the company

FOR AN ECO-FRIENDLY STADIUMGreen Cover has introduced eco-friendly infill materials in artificial grass at Bel Raimaitha Club Stadium in Dubai

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Towell Engineering Al Hajiry Group Muscat Pharmacy Muscat Overseas Khimji Ramdas R & N Khimji Oman Electricity Transmission Al Hasaan Group Oman International

Container Terminal Oman Cables Industries Services & Trade Ray International Jindal Shadeed Iron & Steel Veolia Water National Gas Company NTT Oman Cargo Baabood Nabil Biscuits IBN Hamed

TISCO Bhacker Haji IBN Sina Pharmacy Sogex Oman Genetco Majelite Scientific College of Design University of Nizwa Waljat College Al Buraimi College Majan College

Caledonian College International College of Maritime ABIS School

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ENTERPRISEPARTNER

50 July 2011

FOR A SUSTAINABLE FUTUREBy incorporating environmental awareness learning in its mission, the Caledonian College of Engineering seeks to mould a new generation of environmentally conscious young Omanis

YOUNG WATCHDOGSGrade 5 students at ABA-An IB World School have carried out a 3-month long scientific investigation and research to understand some of the vexing environmental issues of our time

ABA-An IB World School’s ‘Grade 5 Exhibition: Sharing the Planet’ was the result of a 3-month long investigation in

which students were able to inquire and learn about various environment problems. They carried out scientific investigations, research, and action to better understand and to educate others about environmental issues. They could learn the causes and effects of the problems and investigate the solutions. The findings were presented to the public through books, power point presentations and movies which were all done by the

The Caledonian College of Engineering has incorporated environmental awareness in its mission for creating a clean

and green academic culture with focus on reducing the use of paper, encouraging recycling, saving energy and water and developing renewable energy. The college has set up an energy efficiency team to implement and monitor energy efficiency concepts within the campus. Posters indicating energy and water saving messages were displayed all over the campus to create awareness among students and staff members. Other important measures include digitisation of the records, introduction of paper-cut software in all PCs and solar lighting at certain places inside the college, appointment of a company for recycling papers and plastic and other materials, replacement of some halogen flood lights with LED floodlights and planting trees and shrubs wherever possible all across the campus.

The college has undertaken a number of research projects on solar energy applications for water treatment, desalination, power generation, water pumping, solid waste management etc.It also organises international and regional conferences on renewable energy to create a platform for discussing and brainstorming innovative and creative ideas on green concepts and student competitions to extract creative ideas from young engineers.

students themselves. There were songs, dances, skits, talk shows and games shows, each showing the problems the environment is facing along with the solutions to these problems. It has also encouraged other students to adopt more sustainable practices at home and school. By placing the responsibility on the students to first learn about the issues and then present it to the community, the project enabled the students to gain ownership of the ideas. When students are directly connected and responsible for their education they tend to retain information and change their habits. ABA has incorporated environmental education into the curriculum. By changing daily habits and raising awareness in the school community, the school seeks to adopt more sustainable practices in water, electricity, and paper consumption. The school also aims to reduce its consumption of water, electricity and paper as well as encourage good environmental practices.

GREEN CHAMPION AWARD

52 July 2011

GREEN FOOTPRINT AWARD

Haya Water has set up its Composting Plant in Al Amerat to reuse sewage sludge (Biosolids) and convert them

to Compost, thereby contributing to reducing greenhouse gas emissions. The entire sewage sludge generated by Haya Water sewage treatment plants is currently composted at the plant instead of dumping them at the landfill, which will cause the formation of greenhouse gases, mainly methane gas. The plant has motivated others to deliver their green waste to Haya Water instead of dumping them at the landfill. The

COMPOSTING SEWAGEAt its Composting Plant in Al Amerat, Haya Water composts the entire sewage sludge generated by its sewage treatment plants

COWI Oman’s Carbon Footprint Initiative seeks to reduce the overall carbon footprint of Oman’s construction

industry. The company has adopted a multidimensional approach aimed at reducing carbon footprint at its workplace and offering climate solutions to all clients. It has established a baseline footprint for its Oman office to measure the annual changes. In addition, there are direct measurements of power consumption, waste production and vehicle use. Though the idea of setting up a visible and meaningful baseline involves an element of risk, COWI international has taken up the challenge and now promotes these activities in its other offices globally. The company has achieved improvements, albeit limited, in power and water consumption. The announcement of the actual figure of carbon emission for 2009 has generated significant interest among the staff members who decided to meet regularly to discuss the means of reducing office

and industry footprint. The momentum has spread to the point where COWI management has decided to move offices to more energy efficient premises. The decision to move the offices, despite being an expensive one, reflected the company’s commitment to climate solutions. Other activities initiated by COWI includes visiting schools to promote carbon footprint calculation, developing own expertise in low energy solutions and making business communication techniques more efficient.

plant will have a long term positive impact on the environment in general and the quality of underground water in particular.

The “Open Agitated Window System” technology used in the plant is not only the best option for a country with plenty of sunshine but also it allows the use of different wastes as a raw material. The plant has branded its product as ‘Kala Compost’ and sells it to generate income which will contribute to the sustainability of the project. The use of Kala Compost – which complies with standards of the Ministry of Environment, GCC and USEPA – by farmers, landscaping contractors and home gardeners will boost soil fertility, protect from soil erosion and creates more greenery in Oman.

GREEN WORKPLACESIn an attempt to give a green hue to the workplaces by reducing carbon footprint, COWI Oman has set up a baseline for its Oman office

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54 July 2011

GREEN HABITAT AWARD

At most ports, during normal operations the floodlights of quay cranes at the boom and operator cabin are usually switched

on. However, after the operations end and the quay cranes are in idle mode, floodlights remain on until someone switches them off manually leading to wastage of power during the idle time of quay cranes. To address this, Port of Salalah has introduced an auto cut-off system for flood lights under the Flood Light project. The project helped the company to save 10 per cent of the total Quay Cranes energy consumption in 2010. Apart from this the port has hired an environment consultant to measure and reduce its Co2

The new head office of BankMuscat in Seeb has turned out to be an architectural masterpiece and an outstanding landmark

in terms of aesthetics and facilities. Designed in accordance with the highest environmental standards, the building redefines modern banking requirements in terms of functionality, security, productivity and business continuity. All timber products required for the building were taken from a sustainable source.

While designing the eastern and western elevations of the building, due consideration was given to the installation of simple windows for protection from heat. Imported Pilkington glass, which is one of the most environment friendly varieties of glass, was used. The Oriel windows of the building reflect the Omani architectural style blended with traditional Islamic architecture. Imported Pilkington glass used for the construction is one of the most advanced and environment friendly types available. Two key air handling units have been

strategically placed to minimise greenhouse effects; and the building is fitted with sensor-based lighting devices to reduce or increase lighting in order to conserve energy. When sunshine is at its peak, the lighting system automatically remains dim. Sensor taps and other latest sanitary fixtures have been used to minimise water wastage. Another attraction of the building is a Moroccan-style garden. Having successfully pushed architectural boundaries, the new BankMuscat headquarters is sure to stand the test of time.

A STUNNING HARMONY

SAVING ENERGY

Designed in accordance with the highest environmental standards, BankMuscat’s new headquarters in Seeb pushes back architectural boundaries

Port of Salalah’s auto cut-off system for flood lights helped it save ten per cent of the total Quay Cranes energy consumption in 2010

emission levels. It has implemented more than 17 environment related initiatives and it monitors environmental improvements and ongoing projects.

The port monitors the improvements of the ongoing projects every month and regular updates are provided to the management team. It constantly reviews the plans, compares it with other ports and shares it with the community through joint projects and education. All projects include continual measurement and improvement. The port is also engaged in a socioeconomic study to understand the impact on the environment. Besides, the port is the first company in Oman to start Carbon Credit trading. It is also part of a global group of more than 58 ports around the world which share data, programmes and initiatives among each other and enjoy access to the service of international sustainability experts and consultants.

55July 2011

Al Abrar Petrogas has introduced Voraxial Technology as an innovative solution for recovering oil from oil spills

and produced water used by oil producing companies. The use of this technology will protect water resources, ground water and sea water from contamination. It was tested during the Gulf of Mexico spillage and the results surprised many people. The technology will also help oil producers and refineries which dump produced water or waster into Oman Sea to treat such wastes and meet environment standards. It will be of great importance to dry dock ports where there

GREEN INNOVATION AWARD

CONSERVING WATER

AGAINST SLIPPAGE

Tailings Storage Facility has helped Mawarid Mining reduce its dependence on external water by recovering process water for reuse in its concentrator

The Voraxial Technology introduced by Al Abrar Petrogas has significantly contributed to combat oil spillage and treat contaminated water

Mawarid Mining’s Tailings Storage Facility (TSF) was prepared for storing tailings from its Lasail Copper

concentrator. It was mainly aimed at reducing dependence on external water resources as much as possible and preventing water table contamination. The mining company had a dedicated team of engineers, environmental specialists and hydrological consultants working on this project. The team looked at the best design where minimum energy consumption is required. A water decant system was applied to make use of gravitational force to drive segregated water outside the dam into the return water ponds. Moreover, all samples were tested on a regular basis to verify there was no contamination of underground water.

Located at a suitable site that minimises potentially negative impacts, the TSF is lined with a 2 & 1.5 mm thick HDPE liner to prevent seepage of process water into the ground. Tailings dam

is monitored on a monthly basis and a fence is installed around to prevent entry of man and animals. Vegetation will be applied on the top of the tailing and it is expected that further seeding of vegetation cover will occur naturally from nearby grasses. Monitoring will continue until water samples meet the required standards. The TSF has become a motivation hub for school students in the region educating them about the importance of the environment and water conservation.

are a lot of oil spills by ships which come for services. This technology will be able to treat the water and recover the oil and return the clean water back to the sea. Voraxial Technology also helps in reducing CO2 emissions as it uses less power and energy.

The Voraxial is efficient as a liquid/liquid, liquid/solid or liquid/liquid/solid separator. The Voraxial Separator is a compact, 2-way or 3-way separator that is able to process large volume of liquids with a small footprint and without any pressure loss. The Voraxial produces a high centrifugal force and generates a vortex to separate a mixture of fluids or a combination of fluids and solids by their different densities. The heavier elements are drawn to the outside of the vortex while the lighter materials are drawn toward the centre, forming the central core of the vortex. A specially designed manifold is utilised at the exit of the separation chamber to collect the separated streams.

56 July 2011

GREEN LANDSCAPE AWARD

Central Control System for Irrigation Water Management at Sultan Qaboos University has effectively employed

water management technology for the maintenance of its large landscape area by utilising available water and energy resources. The University’s technical team worked in association with two manufacturers of the best water management technical expertise – Rain Bird International (USA) along with their local distributor Al Ansari Trading Enterprise, and Hunter Industries Incorporated (USA) with their local distributor Muna Noor Manufacturing and Trading – to design an effective water management technology.

In the first five months from the actual date of operation, water consumption has reduced by 25 per cent compared to the same period in the previous year. In addition, the new technology contributed to reduce ground water table depletion around SQU, prevent the deterioration of water quality, and increases the

GREEN BEACHES

INNOVATIVE IRRIGATION

Salalah Beach Project of Muriya Tourism Development has emerged as a role model for eco-friendly landscape and tourist destinations in Oman

By implementing an effective water management technology, Sultan Qaboos University has reduced its annual water consumption for irrigation by 25 per cent

Designed as a ‘Salalah Coastal Zone Tourism Development’, Muriya Tourism Development Company’s Salalah Beach

Project is a nature-dependent tourist facility in Oman meeting all eco-friendly landscape principles. The project makes use of open spaces, through a master plan which incorporates a beach, Khwars or wetlands, lagoons and a golf course. Its eco-friendly landscape breaks the density of development by providing an overall landscape view, water frontage and recreational activities. The project has been designed to have a minimal visual impact on populated areas of Dhofar. Low density building and infrastructure design minimises adverse environmental impacts. Overall this beach project has emerged as a role model for eco-friendly landscape and tourist destinations in Oman.

The project is aimed at designing a plan for the sustainability and environmental protection of Dhofar region in order to mitigate the environmental impact. A preliminary environmental impact assessment (EIA) was undertaken to determine the potential generic environmental impact and possible mitigation measures for the construction, operation and maintenance of the proposed development. Based on the environmental setting and sensitivities of the proposed development area, alternative master plans were developed and assessed from an environmental perspective. As many as 950 coconut trees were planted for the project so far and 2,050 more will be planted in the future. Besides, when the project will be completed around 1,000,000m2 will be covered by green grass for the golf area.

life of irrigation equipment like pumps, controllers, rotors, etc.The effective implementation of water saving technology has impressed the local distributor and it has become a role model for various government and private sector organisations which are interested in implementing technologies that conserve natural resources. The success of this project has prompted many people and organisations to modify their existing method of irrigation applying the effective central control system which will bring them the ultimate benefit of water saving and effective utilisation of available natural resources.

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58 July 2011

GREEN GUARDIAN AWARD

Carillion Alawi sought to reduce the environmental impact as much as possible by using energy-efficient technologies

and Forest Stewardship Council approved timbers for construction and joinery. It uses FSC-approved timbers for joinery works and PEFC-approved papers through the business. The company is very particular about using energy efficient equipment and advanced and sustainable technologies to joinery works to reduce the process waste as much as possible and to increase the recycling rate. It also recycles the by-product for charcoal preparation and surface layer preparation for poultry firms.

Moreover, it raises awareness among the clients to adopt the FSC-approved products instead of using the traditional trees like teak from non-suitable sources. A pure green initiative, it gives positive motivation to others to adopt and protect the Omani environment from deforestation and avoid the products from non-sustainable sources.

BOOSTING ECOTOURISM

TAPPING SUSTAINABLE SOURCES

With its sustainable tourism policy, the Ministry of Tourism has always given greater priority to conserving Oman’s natural beauty and diversity

Carillion Alawi – Joinery Workshop contributes to avoid deforestation in Oman by using only FSC-approved materials for joinery and construction

The Ministry of Tourism has developed a sustainable and responsible tourism sector in the country with its sustainable

tourism policy, planning and operations, destination marketing and public awareness and education programmes. It has done a review of current international best practices and an assessment of local conditions and industry consultation to formulate a sustainable tourism policy, planning and operational guidelines. The Ministry called on international experts and lead agencies on sustainable tourism to ensure that standards, expectations and benchmarks were fully understood. Its marketing strategy has greatly assisted Oman to emerge as a destination for culture, heritage and nature. In 2010, the Ministry initiated a wide range of inter-connected initiatives to elevate the industry and held discussions on the benefits of sustainable and responsible tourism. As the government’s lead agency for the destination marketing of Oman, the Ministry has reviewed and refined Oman’s brand positioning to give greater priority to nature and natural values. This included a review of messaging and images to better communicate Oman’s natural values to consumer segments as well as to Omanis. Nature was a core theme of the Ministry-sponsored photographic competition which was designed to excite Oman’s photographers to take images that could market Oman to the world, and educate the community on the value of tourism and the environment. In October 2011, the Ministry will host the third International Geotourism Conference to build awareness about Oman’s natural values at an international level and provide an industry training opportunity for Oman’s tour companies.

60 July 2011

GREEN RESEARCH AWARD

ENHANCING PRODUCTIVITY

A VISION FOR SUSTAINABILITY

The Ministry of Agriculture has proved how treated wastewater can be used for growing seasonal forage crops like sorghum, maize and barley at the farms in Saham

Driven by a strong sustainability strategy, Vale Oman Pelletising Company has built a blueprint for preserving the environment and rich biodiversity of the Sultanate

The Ministry of Agriculture – Directorate General of Agricultural & Livestock Research – has explored how

effectively non-conventional water resources can be utilised for agriculture production. The Directorate has studied the use of treated wastewater for producing seasonal forage crops like sorghum, maize and barley in Saham. The idea came to fruition when the regional municipality agreed to provide treated wastewater and farmers in the area showed a keen interest to cultivate such crops. The project has turned out to be a remarkable success with the new method enhancing productivity and reducing the pressure on ground water resources considerably. Sorghum crop was most profitable. Farms which were degraded due to drought or salinity can now be rehabilitated in Batinah and other regions.

The cultivation of fodder by using treated wastewater is likely to boost green land development across the country. This will have a favourable socioeconomic impact due to high crop yield. The experiment points to the necessity of developing new possibilities for reusing treated wastewater for irrigation, especially because of the importance of fodder under food security. Promotion of such projects utilising treated wastewater for increasing fodder supply with the government support is of paramount importance.

Vale Oman Pelletising Company has explored innovative and cost-effective techniques using cutting-edge technology for

better crop management and boost crop yields. It has pursued sustainable development and believes in positively impacting the communities it operates within. It works hand in hand with its partners like the Ministry of Agriculture and Fisheries, The Research Council, Sultan Qaboos University and the local community to build a blueprint for preserving the environment and maintaining high quality natural resources. As a part of the Agriculture Project in Oman, a Memorandum of Understanding was signed with Vicosa Federal University, the leading agricultural educational institute in Brazil to conduct agronomic studies in Oman. The project aims to investigate the effects and

preventive measures that can be taken to reduce the incidence of diseases and pests on Mango, Lime and Date plantations in the Sultanate. Five Brazilian agricultural experts from the University visited Sohar’s plantations to observe first-hand the diseases and pests. This was followed by a Memorandum of Understanding consisting of four years of research and total investment of around RO2mn to fight pests that afflict mangos, limes and dates, important crops in Oman. Furthermore, researchers from SQU visited the commercial mango and lime plantations in Brazil’s semi-arid regions.

PUBLIC CHOICE AWARD

PRESERVING FOR THE POSTERITYA long term vision for a healthier and greener Oman has been at the core of a number of initiatives undertaken by Panasonic

Panasonic (Omasco) has undertaken several environmentally friendly initiatives aimed at conserving Oman’s environment

and preserving its rich biodiversity. It has provided water proof cameras to the Environment Society of Oman (ESO) to help them with their research. These cameras have enabled ESO to take images both under and over water to ensure the safe conservation of the natural habitat of whales and dolphins. The current study is an on-going process which will lead to greater revelations of the habitat of whales and dolphins helping ESO identify concrete steps to preserve the same. An awareness programme was set up by the company at Ras Al Jinz to educate the youth about the threats to our environment and simple solutions that can help save the planet. Pledge boards were set up for people to come and take a pledge to preserve precious resources like water and power. The company has organised various competitions such as eco-diary competition and painting activities for children. Eco Diaries were distributed across the Sultanate for children to put down their views on the environment and what they can do to

preserve it. The company has distributed movie cameras among a group of children to create a short film about the environment, its problems and simple solutions to preserve the planet. Panasonic has also introduced biodegradable bags in all its showrooms across the Sultanate keeping in mind the hazards of plastic bags on the environment.

62 July 2011

SPECIAL JURY AWARD

ADVOCATING A PARADIGM SHIFT

SIMPLE BUT EFFECTIVE

Petroleum Development Oman’s Ecology Centre is a non-profit institution for informing and inspiring the general public to appreciate and adopt an eco-friendly attitude and lifestyle

A low-cost- low maintenance water treatment system developed by Sultan Qaboos University will be helpful in treating ablution water in mosques in order to reuse them for irrigation

The main theme of Petroleum Development Oman (PDO)’s Ecology Centre revolves around the current global

environmental concerns and the necessity of a shift from traditional nonrenewable fossil fuels to renewable Eco-friendly energy resources. The centre is equipped with exhibits, videos and games for different age groups to explain concepts like how energy is produced, generated and worked out for human use. It teaches how people can use alternative fuels to achieve ecological goals. Several learning activities such as workshops and presentations are provided all through the year in order to educate younger generation about critical environmental concerns in Oman and increase awareness of global environmental issues. EcOman is the first of its kind exhibit in Oman that is meant not only to promote environmental awareness but also to educate the public about the best way to make a difference. The internal design of the centre displays the same theme and objective. The LED lighting in the exhibition hall, the double glazed windows, the building architecture are all designed in respect with energy and environmental preservation. The roof is well isolated by using insulation form 15cm sandwich panels and the walls five cm of a form layer were applied.Since the opening of EcOman centre in March 2011 to the public, it has been receiving more than 1,000 visitors every month.

Sultan Qaboos University’s Department of Soils, Water and Agricultural Engineering has designed a low-cost-low-

maintenance treatment system to collect, treat and reuse ablution water from small to medium size mosques. The department has designed and constructed a water treatment system for a selected community mosque after studying the quantity and quality of the ablution water there. The treated water samples tested as a part of this project were found to meet all Omani standards for irrigation water. Treated ablution water was reused to irrigate grass and trees around the mosque.

The system reduces the use of fresh municipality water and the pressure on the sewage treatment network or local septic tanks. The risks of soil and ground water contaminations as a result of septic tank leaks at small community mosques are also considerably reduced. The Ministry of Regional Municipalities and

Water Resources has installed a similar unit at Abu-Hamzaa Al-Shaari mosque in Al-Hail South, Seeb. The structure of treatment unit is relatively very simple and easy to maintain. This is because of the use of locally available materials such as a water storage tank and washed beach sand in its construction. There are more than 13,000 community mosques in Oman where a large quantity of fresh water is being used for ablution. With this low cost- low maintenance ablution water treatment system this water can be re-used to irrigate grass and trees around the mosques.

64 July 2011

Woods was nowhere to be found. He also stripped the Congressional course of its brutish reputation. The US Open is not meant to be this easy but McIlroy made it so. “The whole week has been incredible. I couldn’t have asked for more,” he says, cradling the famous trophy in his arms.

Down memory lane A professional golfer from Northern Ireland, Rory McIlroy (born on May 4 in 1989) has represented Ireland as both an amateur and a professional. He had a successful amateur career, topping the World Amateur Golf Ranking for one week as a 17-year-old in 2007. Later that year he turned professional and soon established himself on the European Tour.

He had his first win on the European Tour in 2009, and on the PGA Tour in 2010. He has featured in the top ten of the Official World Golf Rankings and represented Europe in the Ryder Cup.

McIlroy now has one major championship to his name. The US Open was McIlroy’s first major win and just his third victory overall. The temptation to ask how many more is hard to resist but the truth is no one knows. That’s a long way to Nicklaus’s 18 and 73, and McIlroy knows it. Yet McIlroy is still only 22. He is fit, he is ambitious and, most importantly of all, he now knows he can win on the game’s biggest stage. The sky truly is the limit.

GOLFUPDATE

By winning the 2011 US Open in a style, Rory McIlroy has earned favourable comparison with some of the game’s greatest

performances. The 22-year-old posted a final round of 69 to wrap up an eight-shot success with a record low score for the tournament of 16-under par. McIlroy’s winning score of 268 was a record for an event that has been staged 111 times and competed for by every great golfer who has lived during that time.

With this victory on June 20, Rory McIlroy has followed the disappointment of his Augusta National collapse two months ago with a display that will go down in the annals alongside that of Tiger Woods at Pebble Beach in 2000 – a performance acknowledged by many as the greatest in the tournament’s history. But the dominance shown by the Northern Ireland player was on a par.

His youth, his dominance and his charisma invited the obvious comparisons with Woods, who was 20 when he won the 1997 Masters by an even dozen and turned the world of golf upside down. However, when McIlroy was busy shattering 12 records and winning the US Open by a jaw-dropping eight shots at Congressional Country Club, the ailing

INCREDIBLE PERFORMANCERory McIlroy has

recently won the US

Open Championship,

his first major, setting

record scores on his way

to an eight-shot victory

which has also moved

him up to No4 in the

world rankings

BEST FINISHES – 2011Events Result

US Open Won

The Memorial Tournament presented by Nationwide Insurance 5

World Golf Championships-Cadillac Championship T10

Masters Tournament T15

World Golf Championships-Accenture Match Play Championship

T17

66 July 2011

The six-nation Gulf Cooperation Council (GCC) leads the world in exports of crude oil and LNG

CLOSE UP

Reliable energy leader

DR JASIM HUSAIN ALI

The six-nation Gulf Cooperation Council (GCC) is the global leader in energy

resources, a fact that should provide comfort to many stakeholders. Relying on its spare capacity, Saudi Arabia has traditionally shown the readiness to increase crude output in the event of any foreseeable drop in production due to diverse factors including political turmoil. A case in point is the current production problems

facing Opec member Libya, a country boasting an output of 1.5mn barrels per day (bpd).

Proven reservesTo be sure, Saudi Arabia falls behind Russia in terms of production of oil, but the Kingdom stands out as the largest oil exporter. According to the recently published BP Statistical Review of World Energy, Russia and Saudi Arabia accounted for 12.9 per cent and 12 per cent of global oil output in 2010, respectively. Yet, unlike

Russia, the Kingdom exports a substantial portion of its output. Likewise, other GCC countries too stand out for their export capabilities, notably the UAE and Kuwait, which boast 3.3 per cent and 3.1 per cent of global oil output, respectively. Qatar and Oman account for 1.7 per cent and one per cent of worldwide oil output, respectively.

Bahrain too is sparing no efforts to enhance oil output capacity thanks to a 20-year

The author is an eminent economist

and Member of Parliament, Bahrain

(jasim.husain@gmail.com)

production sharing agreement with Occidental Holding of the US and Mubadala of the UAE. Signed in 2009, the deal aims to enhance output of onshore fields from 33,000 bpd to 100,000 bpd in a span of eight years.

Still, Bahrain’s main crude source is the offshore exploration zone of the Abu Saafa Field. Saudi Arabia and Bahrain equally share the field’s output, which currently stands at 300,000 bpd. Saudi Arabia manages the field and transfers the proceeds to Bahrain after deducting expenses. Saudi Arabia alone sits on 19 per cent of oil reserves, second to none worldwide.

Kuwait and the UAE possess 7.3 per cent and 7.1 per cent of oil reserves, respectively.In reality, GCC countries

account for 77 per cent of Opec’s share of proven oil reserves. Opec’s strength reflects its members’ reserves and steady production capacity.

Conversely, Opec supplied around 42 per cent of worldwide oil output in 2010. Other than oil, GCC states are also noted for their gas reserves. According to BP’s publication, Qatar’s global share of natural gas reserves stands at 13.5 per cent. Only

Russia and Iran possess more gas reserves than Qatar — 23.9 per cent and 15.8 per cent, respectively.

More importantly, Qatar leads the world in the production of liquefied natural gas (LNG). Only recently the country celebrated reaching LNG output capacity of 77mn tonnes per annum, second to none globally. As such Saudi Arabia and Qatar lead the world in exports of crude oil and LNG respectively.

Innovative agreements In addition, innovative production sharing agreements with international oil firms allowed Qatar to boost its oil output from 760,000 bpd in 2010 to 1.5 mn bpd in 2010. Also, the extraordinary initiatives helped Qatar boost its oil reserves from 16 bpd to 26 bpd in the same time span.

By and large, GCC countries are contributing towards sup-porting and maintaining con-temporary quality of life by being reliable energy sources for planes, cars, and machin-ery. The adage about a friend in need being a friend indeed neatly fits the GCC’s working relationship with global con-sumers of petroleum products. At the same time, GCC coun-tries need to export petroleum for the survival and prosperity of their economies. Hence, it is a give and take situation.

OIL AND GAS GIANTSRussia accounts for 12.9 per cent of global oil output ¡Saudi Arabia has 12 per cent of global oil output ¡Qatar’s global share of natural gas reserves stands at ¡13.5 per centRussia has 23.9 per cent gas reserves ¡Iran possesses 15.8 per cent gas reserves ¡

The subprime crisis and its aftermath has fuelled numerous books on how the

global economy was crippled by unscrupulous bankers; greedy fund managers and incompetent regulators. Unlike other books which were about failures, Gregory Zuckerman details the triumph of one man amidst the unfolding crisis.

In 2006, hedge fund manager John Paulson realised some-thing few others suspected – that the housing market and the value of subprime mort-gages were grossly inflated and headed for a major fall. Paulson’s background was in mergers and acquisitions, how-ever, and he knew little about real estate or how to wager against housing. He had spent a career as an also-ran on Wall Street. But Paulson was con-vinced this was his chance to make his mark. He just wasn’t sure how to do it. Colleagues at investment banks scoffed at him and investors dismissed him. Even pros sceptical about housing shied away from the complicated derivative invest-ments that Paulson was just learning about. But Paulson and a handful of renegade in-vestors such as Jeffrey Greene and Michael Burry began to bet heavily against risky mort-gages and precarious financial companies.

Right man at the right placeTiming is everything, though. Initially, Paulson and the others lost tens of millions of dollars as real estate and stocks continued to soar. Rather than

CONTRARIANCALL

JOHN PAULSON SAW OPPORTUNITY IN ADVERSITY AND MADE HISTORY IN THE BARGAIN. THIS BOOK

IS THE STORY OF HIS DARING GAMBLE AND MOMENTOUS TRIUMPH. AN OER REVIEW

BROWSINGCORNER

billions more in 2008 by transforming his gutsy move. Some of the underdog investors who attempted the daring trade also reaped fortunes. But others who got the timing wrong met devastating failure, discovering that being early and right wasn’t nearly enough.

The scale of Paulson’s big bet, “the greatest trade ever”, as Greg Zuckerman describes it, was extraordinary. By piling into complex “credit default swaps” against mortgages – in effect, insurance policies that would pay out if homeowners defaulted – his fund made an unthinkable $15bn in a year, $4bn of which he took home himself.

Zuckerman also tells the stories of others who placed similar, much smaller trades, such as west coast property developer Jeffrey Greene, a friend of Paulson’s before they fell out over his refusal to invest in his hedge fund. All these pessimistic investors were mavericks or outsiders, underlining how tough it was in those heady days to stand alone against the herd of charging bulls.

Written by the prizewinning reporter who broke the story in “The Wall Street Journal,” “The Greatest Trade Ever “is a superbly written, fast-paced, behind-the-scenes narrative of how a contrarian foresaw an escalating financial crisis--that outwitted Chuck Prince, Stanley O’Neal, Richard Fuld, and Wall Street’s titans – to make financial history.

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back down, however, Paulson redoubled his bets, putting his hedge fund and his reputation on the line.

In the summer of 2007, the markets began to implode, bringing Paulson early profits, but also sparking efforts to

rescue real estate and derail him. By the end of the year, though, John Paulson had pulled off the greatest trade in financial history, earning more than $15 billion for his firm--a figure that dwarfed George Soros’s billion-dollar currency trade in 1992. Paulson made

69July 2011

The genesis of insurance can be traced back to the appearance of human societies on the surface of the earth. Chinese and Babylonian

traders had practiced the early methods of transferring or distributing risk as long ago as the 3rd and 2nd millennia BC, respectively. While they were travelling treacherous rivers, Chinese merchants would redistribute their wares across many vessels to limit the loss in the event of any single vessel’s capsizing.

The Babylonians developed a system which was recorded in the famous Code of Hammurabi, c. 1750 BC, and practised by early Mediterranean sailing merchants. As a part of the deal, if a merchant received a loan to fund his shipment, he would pay the lender an additional sum in exchange for the lender’s guarantee to cancel the loan should the shipment be stolen or lost at sea. Insurance is designed to protect people from disasters and their financial consequences. There are many kinds of insurance and the

most important of these is considered to be life insurance which makes financial provision for your family following your death.

As there are various financial commitments, you need to meet in life you also need to provide something even in death to ensure the security of the family, and to help them meet expenses at least for a short time, to protect dependent parents or to provide security for your spouse and children. These

SAFEGUARDINGAGAINST UNCERTAINTIES

As a method designed to offer protection from the financial

consequences of various disasters and uncertainties in life, insurance

forms a vital part of sound financial planning

SPOTLIGHTINSURANCE

70 July 2011

SPOTLIGHT INSURANCE

financial obligations could well include funeral expenses, unsettled hospital and other medical bills, mortgage payments, business commitments and meeting the college expenses of one’s children.

In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the insurance; an insured or policyholder is the person or entity buying the insurance policy. The insurance rate is a factor used to determine the amount to be charged for a certain amount of insurance coverage, called the premium. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice. The transaction involves the insured assuming a guaranteed and known relatively small loss in the form of payment to the insurer in exchange for the insurer’s promise to compensate (indemnify) the insured in the case

of a large, possibly devastating loss. The insured receives a contract called the insurance policy which details the conditions and circumstances under which the insured will be compensated.

Peace of mindPrecisely how much insurance you will need varies depending on your lifestyle, financial needs and sources of income, debts and the number of dependents you are responsible for. In the main, an insurance adviser or agent would recommend that you take insurance cover that is five to ten times your current yearly income. An important part of your financial planning, whole life insurance gives you peace of mind for any uncertainties in life.

Adequately planned life insurance will provide funds in the case of unexpected death to deal with debts, mortgage payments and day-to-day living expenses. It offers protection to the family that one leaves behind and serves as a cash resource. It secures your estate on death by providing tax free cash which can be utilised to pay estate and other death

duties. Life insurance policies can also have a savings or pension provision which can help to fund you during retirement.

Understand ridersSome policies have riders such as restricted coverage of term insurance or critical illness for the children or spouse. There are particular rules considering eligibility for riders, which you will have to clearly understand.

In case of bankruptcy the cash value, together with the death benefits of any insurance policy is exempt from your creditors. Holding a valid insurance plan is considered as having a financial asset and this will improve your credit rating when you need medical insurance or a home loan or business loan. Insurance forms a vital part of sound financial planning but you do have to evaluate both your personal risk and your longer term commitments. Plans, like a whole life insurance plan, give you the security you need for your dependents and also act as a good form of financial security against which you are able to borrow.

Al Ahlia Insurance Co. is one of the oldest insurance companies in the non-life insurance sector in Oman. Established

in 1985 as a public joint stock company, Al Ahlia Insurance Co. was restructured in 1998 as a closely held subsidiary of its holding company following substantial growth in invested funds. In 2010, the company was acquired by RSA, and has since become part of the globally reputed RSA group and the second largest insurance company in Oman.

The newly formed legal entity, Al Ahlia Insurance looks forward to build on the momentum through RSA’s technical capability, the nationwide network of 23 branches and capitalising on its personal lines business. Being one of Oman’s leading insurers, its products are designed for both individual and corporate clients. The portfolio ranges from motor to home insurance for individuals to shop insurance and managing large and complex risks for the corporate sector. The company has the experience and skill-set to devise the right solutions for clients at a market driven competitive price.

Al Ahlia Insurance constantly endeavors to set high standards

of service excellence for its customers. The response time and processes are constantly being monitored and improved in every aspect of company’s business transactions – from proposal stage to underwriting to documentation and claim disbursals. It is this attention to the entire customer journey that helps in creating

and building enduring long-term relationships.

Al Ahlia plays an important role in the insurance industry in Oman. Its products are constantly being enhanced to provide value to customers and address key risk needs of clients. As a part of its social responsibility strategy, Al Ahlia has plans to partner with key bodies to launch initiatives which can help create a safer environment, for the overall benefit of society.

Al Ahlia has been honoured with the inaugural ‘Oman Insurer of the Year 2011’ award at the prestigious annual MENA Insurance Awards by Gulf Insurance Review magazine. It was chosen for the Oman Insurer of the Year award because of its coherent strategy, product innovation, responsiveness to customer needs, enhanced service delivery and successful management of change.

Building momentum post integrationOne of Oman’s leading insurers, Al Ahlia Insurance Co has a wide range of products designed for both individual and corporate clients

72 July 2011

SPOTLIGHT INSURANCE

Oman’s insurance sector was less affected by the global financial crises and its impact on the financial markets and

banking and real estate sectors because insurance companies have diversified investments. Because of the strong regulatory environment of Oman,

insurance investments are governed by the Insurance Companies Assets Investment Regulation issued by the CMA in April 2007 which requires that the investments of local insurance companies shall not exceed 25 per cent of the total investments and the cash shall not be less than 40 per cent of such per cent. Investments in shares shall not exceed 30

per cent and in real estate 20 per cent of the allowed investment abroad.

Thus the companies maintained their solvency that enabled them to continue their business without any exposure to the credit crunch. The Capital Market Authority (CMA) continued its efforts to develop the insurance sector. It achieved

STRONG AND STEADYOman’s insurance sector remained relatively insulated mainly because of the strong financial regulations of the country, despite the global financial crisis hitting worldwide financial institutions

Al Madina is a well-established Insurance company in the Sultanate known for its wide product offering, customer service, focused marketing and top notch insurance

professionals from around the world including the best of talents from within Oman. It is a composite insurance company offering both life and non-life Insurance products in the Sultanate.

Al Madina’s vision is to provide cost effective insurance and superior customer service in a manner that takes into account the culture, social ethos and needs of the community. The company has the ability to listen to its customers, the experience to understand their needs and the skillset to devise the right solution that they require at a price which is competitive. Clients’ needs and financial security are two most important criteria factored in its insurance solutions.

Al Madina’s underwriting philosophy is to reward positive risk features. Its guiding principles are quality and long-term relationships and not market share alone. With a significant treaty capacity provided by a panel of leading reinsurers, it is capable of providing wide acceptances, superior policy coverage and competitive rating. The facultative markets are explored and resorted to only when additional capacities are required. This has been possible only due to its confidence in the risks it underwrites. Its treaties are broadly worded with very few restrictions giving an advantage of hassle-free covers to the clients.

Al Madina endeavours to set high standard of excellence and

set up a process that can deliver it consistently. To this end, it provides service level agreements. The Turnaround Time (TAT) is constantly being improved in every aspect of company’s business – from documentation to claim servicing.

The company today has a wide range of retail package products including travel & domestic helper (Housemaid) insurance and it is continuously expanding the retail offering. Al Madina is expecting to launch Individual health insurance product and home package insurance in 2011, to add to the existing range of retail products. It underwrites the retail SME business in a smart centralised manner underpinned by advanced web-based system. The coming years will see a concerted focus on the package retail and SME business by creating a ‘one stop shop’ for this segment.

The company takes pride in establishing quite a few first-time initiatives in the market. It has signed a Memorandum of Understanding with world’s oldest and most respected insurance company – Chubb for specialty line of business such as Financial Liability. Al Madina is also a member of a regional engineering cooperative called Takaful Engineering Cooperative (TEC) and its sole representative in Oman.

Al Madina believes that living up to the covers contained in the policy issued is the very essence of its existence; and this approach is reflected in its claims settlement which hinges on three guiding principles: empathy, fairness and speed. It sets its own transaction benchmarks and aims to make that known to its customers and then deliver on it consistently.

Driven by ethos Al Madina’s underwriting philosophy is to reward positive risk features; and its guiding principles are quality and long-term relationships

74 July 2011

SPOTLIGHT INSURANCE

remarkable progress in the regulatory supervision through the application of international standards and continued enhancement of legislative infrastructure and building institutional capabilities of the sector, diversification of the services provided to the participants of the sector, easing the processes and upgrading the skills and efficiency of the employees.

Oman has a backlog of financial assets to enable it to ramp up expenditure on key economic projects. The government’s gross financial assets plus the central bank’s foreign exchange reserves amounted to around 75 per cent of GDP, according to Moody’s estimates. Overall debt levels remain comparatively small.

In order to develop and modernise the insurance sector the Insurance Companies Law was reviewed to cope with the requirements of the current stage

to mitigate market risks, protect market participants and improve the services. CMA amended the Executive Regulation of the Insurance Companies Law and the Council of Ministers issued a decision increasing the amount of “Diyyah” (Blood money) to RO15,000.

A number of new guidelines and regulations were issued to insurance companies to streamline the insurance industry in Oman. The CMA issued a circular to all insurance companies on the new guidelines for submitting new general insurance products to ensure compliance with the requirements of Insurance Companies Law, the Regulation, the Code of Corporate Governance for Insurance Companies and the Code of Professional Conduct on provision or marketing of new general insurance products. The guidelines require that the insurance products shall

comply with the Code of Professional Conduct of Insurance Business issued by CMA.

Design and rating of products shall be on sound and prudent underwriting principles and the risks insured under the product shall be clear and transparent without any ambiguity.

With an annual premium of $626 million, the insurance sector has witnessed healthy growth in Oman and the sector has posted a robust 10 per cent growth. The insurance sector is likely to look up further with better market scenario in 2010 and presentation of development oriented state budget and 8th Five-Year-Plan.

Major players According to the latest report prepared by Business Monitor International, the total

Oman Insurance Company (P.S.C.) established by Royal Amiri Decree of 1975 is a recognised leading composite private insurer in the GCC and the Arab

World. Financially sound and professionally managed, it is dually rated as A M Best (A) Excellent, A M Best Issuer Credit Rating ‘a’ and as Standard & Poor’s (BBB+) Strong. It is also rated Brand Value A+ by Brand Finance Middle East and listed amongst the top 25 companies in the UAE.

In 2010, Oman Insurance wrote AED 2.44bn in premiums across all classes returning technical profits of AED 232m and annual net profits of AED 94mn. Shareholders equity of AED1.45bn and assets of AED 4.8bn further demonstrate the leadership, strength and market leading capabilities of the company in the continuing global downturn conditions of the world economy.

Its vision is to be a recognised provider with a passion for excellence and concern for people. Its mission is to provide peace of mind, valued services; to nurture partnerships and delight by integrating people process and technology.

Headquartered at DAFZA Dubai and with over 15 branches, it has a strong presence in every Emirate, Sultanate of Oman and Qatar. Its qualified and experienced insurance professionals provide quality insurance products from across individual personal line policies to risk based solutions for

industrial, commercial, energy, and construction sectors. OIC underwrites all classes of general and medical, life insurances and going that extra mile to tailor make bespoke covers. Its insurance programmes are led by world-class and world leading re-insurers.

Its commitment to the Sultanate as a long-term partner is to help benchmark, lead, create awareness, world-class service, Omanisation, and build robust infrastructure. It has an R & D unit to facilitate development of innovative customer centric products and solutions responsive to market needs of the Gulf population. It takes pride for having been accredited with awards and certifications over the years, to name a few, General insurer Award (2005 and 2006), Training Initiatives Award (2005, 2006 and 2007), Life Insurer Award (2006) Corporate Social Responsibility Award (2007), the prestigious Mohamed Bin Rashid Al Maktoum Business Award in the Financial sector (2007) and the latest AON Hewitt award for ‘Best Employer In The Middle East-2011’.

It continues to work towards greater market recognition across all aspects of its business, training, responsible HR practices, best-practice, good governance, social responsibility, responsible charity, CRM, innovation and market leadership by meeting or exceeding the emerging benchmarks from a challenging and dynamic economy.

On a mission Oman Insurance Company is looking to be a recognised provider with a passion for excellence and concern for people

With Us, You are in the Safest Hands.

76 July 2011

SPOTLIGHT INSURANCE

Falcon Insurance Co. (FIC) was licensed by Capital Market Authority to commence underwriting insurance risks on September 14 in 2005 when

it acquired the local insurance portfolio of Al Ittihad Al Watani insurance Company. FIC is a national company, the majority shareholders being Omani institutions and individuals.

FIC’s board of directors includes prominent representatives from both the public and private sectors. The company’s top management headed by AR Srinivasan who has several years of insurance experience in Oman and the Gulf, comprises qualified professionals who have many years of experience in both the local and international insurance markets. FIC is supported by a panel of major international reinsurers headed by Swiss Re.

Since its inception, FIC has developed a large portfolio of local insurance risks. FIC commenced its Life Division in 2008 and is now a composite insurance company licensed to provide all classes of insurance including life, general and healthcare, and believes in extending excellent customer service. Says AR Srinivasan,“We cater to all types of customers in the private, commercial and public sectors and provide them with a one-stop solution for their insurance needs. FIC is fully licensed to handle the complete range of insurance for its clients.”

FIC’s Head-Office is located in Qurum, with two branches in Seeb and Sohar and is currently in the process of widening its branch network around the entire Sultanate. ‘Rising Above The Rest’ together with ‘Insurance with a Difference’ is the motto of the company.

Insurance with a differenceFalcon Insurance Co. (FIC) is a composite insurance company licensed to provide all classes of insurance including life, general and healthcare

AR Srinivasan, Falcon Insurance Co

premium income for 2010 was around RO231mn – RO191mn constituted by non-life segment and RO39mn by the life segment. By 2015, according to the report, the corresponding figures will touch RO327mn, RO274mn and RO53mn, respectively.

The Sultanate has 23 insurance firms - 11 local and 12 foreign insurers. The locally incorporated or national insurance firms have a combined market share of around 80 per cent. Among this, four firms – Dhofar Insurance, Al Ahlia (which recently merged with Royal & Sun Alliance Oman), National Life and Oman United Insurance – have a major share of the market.

As of now, only motor insurance is compulsory by law and as such majority of the other insurance is dictated by the requirements of the businesses or lenders. This is also a segment that witnesses major undercutting of premium, thereby bringing down margins.

In the life segment, healthcare insurance is fast becoming a top priority for local companies. Both small and large companies are keen on taking group medical policy for their employees.

Healthcare insurance is a cashless scheme wherein the insurance company, which ties up with a network of hospitals/polyclinics, gets volume business and the employees get access to cashless healthcare facilities. Once the company pays its group medical premium, there is no administrative work for the company and all worries related to employee healthcare would rest with the insurance company and the concerned hospital.

Omanisation With a total workforce of 1,800, the

insurance sector in the Sultanate had achieved an Omanisation level of 60 per cent. The Capital Market Authority (CMA) has urged all companies operating in the insurance sector to set a timeframe for the Omanisation. The companies are required to decide the target number of citizens to be appointed, as well as the nature of jobs available.

The step is aimed at securing employment opportunities for job-seekers in response to the Royal orders. His Majesty Sultan Qaboos had ordered the employment of 50,000 citizens whose names are listed in the job-seekers register of the Ministry of Manpower. The Royal orders are aimed at providing decent living for the Omani citizens, availing them an opportunity to serve their country and achieve stability for the Omani families.

The CMA sent a circular to insurance companies and insurance brokers urging them to raise the Omanisation of citizens to 65 per cent by 2012. It also urged them to provide good working opportunities for the national manpower to help benefit from the current boom in the insurance sector.

78 July 2011

AUTOTALK

OPEN ROADS BENDING INTO STEEP CURVES ALONG THE MAGNIFICENT ALPS MAKE FOR THE PERFECT SETTING TO DRIVE A PORSCHE, AKSHAY BHATNAGAR REPORTS FROM MUNICH

Ask any sports car lover about his favourite car and in all likelihood, the answer will be a Porsche. Most of the car enthusiasts make it a point to have a Porsche among their prized possessions. So when Porsche Travel Club (PTC) invited Oman

Economic Review to test drive their beautiful mid-engine Box-ster and Cayman models in serene settings of Alps mountain range, it was a dream come true for yours truly. The invitation entailed a drive from Munich (Germany) to Kitzbuehel (Austria) and back over a period of two days. I was the first one to drive in my team. After driving through the city roads for a while, we reached the winding country roads towards Lake Chiemsee. The Cayman R communicates its willingness to perform to the driver right from the start.

PowertrainGiven its purposeful mid-engine layout, the Cayman R has a power output of 330hp and reaches 282 km/h top speed. It looks and feels like a proper race car thanks to the 19-inch lightweight alloy wheels, sports bucket seats, a lowered body and a retuned sports suspension. Equipped with the seven-speed PDK, the acceleration time from 0 to 100 km per hour is 4.9 seconds only.

By afternoon, we reached Lake Chiemsee – a freshwater lake between Rosenheim, Germany, and Salzburg, Austria. Post lunch, we continued our drive through the foothills of Alps in a new car, Cayman S – another great offering in the Cayman range of Porsche. It boasts a brand-new six-cylinder boxer en-gine, displacing 3.4ltrs and again setting a new benchmark in terms of both fuel economy and performance thanks to direct fuel injection. With a maximum output of 320bhp and impres-

PORSCHE DRIFT

THE

79July 2011

sive acceleration to 100km per hour in 5.1 seconds, Cayman S was a sheer delight to drive. With no speed cameras around, you could easily achieve a top speed of 277km per hour.

By evening, the caravan reached the destination – Royal Spa Kitzbühel Hotel in Austria. The next day, it was time for the jour-ney back to Munich. We got behind the wheel again. This time we got our hands on the Boxster. The highlight of the new gen-eration Boxster is the six-cylinder boxer engine displacing 2.9ltrs in the Boxster. This engine belongs to the same family as the ef-ficient power units introduced recently in the 911 model series.

It comes with its own unique profile, standing out clearly from the Cayman. Seen from the front, the extra-large air intakes characterise the superior look of the model and accentuates its superior performance. Two of the crossbars integrated on either side in the outer air intake scoops are finished in body colour on the Boxster, adding a new graphic effect at the front to make Porsche’s new roadster quite unmistakable at very first sight.

For the last leg of our journey, we had the stylish Boxster S to drive. The combination of wide track with wide wheels and tyres, together with the mid-engine, allows a very dynamic style of mo-toring with enhanced driving stability and lateral acceleration in Boxster S. Body roll and dive are reduced to a minimum, with the long wheelbase of the Roadster ensuring additional stability when driving in a straight line.

I savoured every kilometre of the return journey. As we inched closer to Munich, our tour guide generously allowed me to test the Boxster S to the hilt on a stretch of the expressway. I touched the top speed of 260km per hour to mark a fitting finale to an unforgettable drive!

Porsche Travel Club offers a wide range of paid driving pro-grammes throughout the year in various locations in Eu-rope and other places. If you wish to participate in them, visit www.porsche.com/travelclub for more information.

80 July 201180

The 4,499 cc V8 engine powering the Ferrari 458 Italia has won two categories in the prestigious 2011 International Engine of the Year Awards, taking the accolade of Best Performance Engine as well as winning the Above 4-litre category. The jury for the awards is made up of 76 motoring journalists from 36 countries who assess engineering excellence in engines in terms of driveability, performance, economy and refinement. In assigning the awards the jury

Ferrari 458 Italia wins two EYAs

Reem Batteries & Power Appliances has recently participated at ‘Automechanika Middle East 2011’, the region’s largest automotive aftermarket exhibition where it displayed its entire range of batteries under brands Antara, Antara Gold, Antara Hybrid, Gulfstar, Gulfstar Gold, Gulfracer, Power Pack, Power Pack Gold and Charger. Annually held in Dubai, Automechanika Middle East 2011 features

the best of workshop equipment, tyres and tubes, batteries, parts and systems, repair and maintenance, and accessories and tuning industries. Reem Batteries also participated at the Automechanika in Frankfurt; and the ‘Euro Bus Expo’ in England, where they showcased their wide range of batteries for bus applications as well as futuristic batteries.

Reem attends AutomechanikDesigned to suit personality

Buying a new car is always a personal choice. But buying new Mitsubishi Lancer EX is much more than that - it is an extension of the personality of the individual driver that has been illustrated in a powerful new marketing campaign for the 2011 model. Under the all embracing line of “Whatever Your Personality, there is a Lancer EX for

You” – Mitsubishi Oman has launched three new versions of the hugely popular Lancer EX and has put a personal face to the launch of the new car. Commenting on the new Lancer EX, Mitsubishi Oman general manager Mark Tomlinson says, “If ever one of our models had a personality – it is the Lancer EX.”

General Motors’ dealers in the Middle East reported total sales of 12,800 vehicles in May, a 27 per cent increase compared to the corresponding period in 2010, driven by sales of Chevrolet passenger cars. Combined sales of Chevrolet passenger cars in May, including the Cruze, Malibu, Aveo and Optra, increased by 36 per cent. Total sales of Chevrolet rose

by 36 percent during the month, while sales of GMC experienced a 17 per cent increase. The strong figures represent the best ever May monthly sales on record and the fifth consecutive month of double-digit total sales growth in 2011. It contributed to year-to-date total sales growth of 21 per cent for the first five months of 2011 compared to the same period in 2010.

Chevrolet boosts GM’s May sales

also praised the 458 Italia’s engine for its unmistakable sound. The awards were received by Jean Jacques His, head of Ferrari powertrain department. Ferrari’s dry-sump, flat-crank, 90-degree V8 sets a number of firsts for a naturally-aspirated engine of this displacement.

81July 201181

TAC’s service centre opens at DuqmTowell Auto Centre (TAC) has announced the opening of its brand new service facility at Duqm which will cater to the service needs of all automotive brands. The full-fledged Towell Auto Service offers state-of-art solutions for all branded passenger and light / commercial vehicles, making it a one stop shop for all vehicle needs. Some of the services

offered include periodic maintenance; replacement of engine oil filter, air filter, AC filter, fuel filter, spark plug, drive belt and timing belt; replacement of engine oil, radiator coolant, auto-transmission fuel, manual gear oil, differential oil, brake oil and transfer box oil; running repairs like brake and clutch replacement; suspension repairs; air

conditioning – gas recovery and recharging; battery and alternator testing and repair; minor electric repairs; value added services – engine and coolant flush, water service and vacuuming.

Of all the ways used to describe Infiniti all-new M’s, the 2011 Infiniti M, it all perhaps can be summarised in two words – Technology Inspired. Like the dramatic Infiniti Essence Concept, which served as a blueprint for the new M’s designers and engineers, this next-generation M embraces the essence of all things Infiniti – style, performance, luxury, craftsmanship and

technology. Advanced Safety and Security Systems means the 2011 Infiniti M is available with a number of innovative technologies designed to help avoid potentially dangerous situations. The M offers Infiniti’s Lane Departure Warning (LDW) and Lane Departure Prevention (LDP) systems. The New Infiniti M of 2011 offers the Blind Spot Warning and Blind Spot Intervention systems,

“The car’s a lap down, but we can make that up,” says Corvette Racing team man-ager Gary Pratt with six hours remaining in the 24 Hours of Le Mans. Pratt’s words proved prophetic as the No. 73 Compuware Corvette C6.R driven by Olivier Beretta, Tommy Milner and Antonio Garcia relentlessly pursued the class-leading No. 51 Ferrari 458 Italia, cutting the margin by seconds every lap. American driver Tommy Milner overtook Ferrari driver Toni Vilander with two hours and 10 minutes to go, and

steadily increased his lead as he completed his double stint. Garcia then took over the yellow and black car for the final hour and the run to the finish. The No. 73 Corvette C6.R completed 314 laps and finished two minutes and 29 seconds ahead of the runner-up Ferrari. This victory was the seventh class win at Le Mans for Corvette Racing, and its first in the GTE Pro category. It came as Chevrolet celebrates its 100th anniversary and the 10th anniversary of the team’s first Le Mans victory in 2001.

Corvette Racing wins 24 Hours of Le Mans

A jury of 76 motoring journalists from around the world has voted the Audi 2.5-litre TFSI as the “International Engine of the Year 2011” in the 2-litre to 2.5-litre category. This engine therefore retains the award that it won last year. The 2.5-litre unit fitted to the TT

RS Coupé and Roadster features both turbocharging and FSI direct gasoline injection technology, two of Audi’s core technologies. With a displacement of 2,480 cubic centimeters, this engine produces 340hp between 5,400 and 6,500 rpm and peak torque of 450 Nm from

1,600 to 5,300 rpm. Developed by quattro GmbH, the Audi TT RS Coupé can sprint from zero to 100 km/h in 4.3 seconds (Roadster: 4.4 seconds) and both the Coupè and Roadster have an optional top speed of 280 km/h.

Audi wins engine of the year award

World’s first BSI system

84 July 2011

Gulf Business Machines (GBM), a Cisco Learning Partner (CLP) for MENA region, has announced the launch of Oman’s first Cisco Training Centre. The world-class training centre, part of GBM’s learning services, is located at GBM’s Qurum premises in Muscat.

GBM’s full-fledged centre will offer a broad range of Cisco training services to job seekers and IT professionals in the private and public sectors. The training

sessions will be led by Certified Cisco Systems Instructors (CCSIs) and will deliver Cisco authorised and approved content, including technology, product-specific and certification-preparation courses. “Cisco is very proud to collaborate with GBM in this initiative which we hope will encourage local Omani talent to realise their full potential to be tomorrow’s leaders of the local and regional IT industry,” says Iyad Al Chammat, Cisco general manager in Oman.

GBM launches Cisco training centre

Connoisseurs of fine watches in Oman are in for a treat with Swiss luxury watch manufacturers ROGER DUBUIS unveiling their exclusive Excalibur Lady collection in Muscat. The exquisite collection is available in Muscat at Mistal, distributors of luxury watches and part of the Ajit Khimji Group.

Combining the power of an iconic model - the Excalibur - with the subtle elegance of a feminine design, the Excalibur Lady collection writes a new chapter in the history of the Geneva-based Manufacturer. The feminine collection is distinguished by a finer silhouette that shows off its harmonious curves.

Excalibur Lady unlived

Omantel has recently launched its multiple device self-care application. The first of its kind in the Sultanate, this application is compatible with the four most popular smart devices platforms (BlackBerry, Android, Nokia & Apple iPhone & iPad). This unique and easy to use application will enable Omantel customers to register online, view their account details, bills, add new account, top up self and friends Hayyak lines and more importantly pay their bills in a highly

secured way from anywhere at any time in a very simple way with few touches and slides. Commenting on the launch of this new application, Saleem Abdullatiff, GM marketing at Omantel’s consumer business unit, says, “We are pleased to be the first operator in the Sultanate to offer this multiple device self-care application. This initiative comes in-line with the company’s continuous efforts to provide best in class services for our customers”.

Omantel’s multiple-device application

Oman International Banks (OIB) has announced its best ever credit card promotion for the summer. The promotion gives a double bonanza exclusively for OIB credit cardholders from June 15 to September 15: The first offer is a cash reward of 2 per cent for all OIB credit cardholders each time they use their card. With

this, every OIB cardholder becomes a winner each time his or her card is used at any POS machine around the world. The second offer includes a total of three monthly draws during the period. Each draw will be held after the 15th of the month and the winners from each draw will get cash prizes of RO1000, RO600 and RO400.

OIB’s promotion for credit cardholders

Ramniklal B. Kothary & Co recently invited Management Guru, Dr Pawan G. Agrawal, from the world famous organisation “Mumbai Dabbawalas”. The presentation on “supply chain & logistic management” held at the company’s head office in Darsait was attended by almost all employees

from sales, finance and logistics departments. “Mumbai Dabbawalas” provide logistic services in providing food containers (Tiffin) to the residents of Mumbai (India). They deliver 200,000 tiffin boxes per day with the help of 5,000 employees.

Supply chain & logistics presentation

Panasonic launched a new range of VIERA high-definition television or HDTV along with a range of LCD, LED and Plasma TVs, Blu-ray home theatre system and a sound bar. The new at-tractively designed models combine eco sensibility with superior product performance and enhanced networking functionality. The company also announced that it will launch an expanded range of VIERA Plasma, LED and LCD TVs this year. “This year, Panasonic will expand its range

of 3D and LED televisions to include 13 different 3D and five LED models for consumers to select from,” says Abby Thomas, senior manager, Pana-sonic Marketing, Middle East.

New Panasonic HDTVs launched

85July 2011

New brand for Oman Oil Refineries

Molecules launched Micromax mobiles at Emax, the electronics arm of the Landmark Group and one of the fastest growing electronics retail chains in the Middle East. Emax represents more than 300 brands, with over 100,000 products across 20 plus categories. This, accompanied by good service and competitive value, makes Emax the one stop shop for all electronics

needs. One of the largest Indian domestic mobile handset companies, Micromax believes that consumers in Oman have unique preferences with respect to mobile handsets such as long battery life, dual GSM capability, low-cost Qwerty phones, universal remote control and gaming phones. Its strategy focuses on innovating, designing and using the latest technologies to develop

products at an affordable price. The Micromax commercial launch was held under the presence of high-profile dignitaries from various business segments apart from the team and top management of Emaz and Molecules.

Micromax available at Emax

The Oman based Asia Express Exchange opened its ninth and tenth branches at Lulu Hypermarket Bousher, and Lulu Hypermarket Darsait respectively as part of its expansion plan to serve a larger market. It has re-launched itself very prominently with the guidance of new management under the leadership of Yusuffali MA, chairman and managing director. Speaking about the new expansion plan

Yusuffali MA, says “We have gained immense market insight in Oman through our Lulu retail chain success and this gives me confidence in the Oman market and I am sure, Asia Express Exchange will also move further in the path of progress. With the opening of these two new branches we will be able to serve a larger section of population in much more efficient and convenient way.”

Asia Express launches new branches

Khimji Ramdas Office Furniture Division has introduced ‘Burmatex’ Carpet tiles from the UK, expanding the spectrum of products and services it offers. ‘Burmatex’ is presently one of the leading manufacturers of contract carpets and carpet tiles in the UK. The company offers a wide range of products that include fiber bonded and tufted carpets in sheet and

tiles. Its focus is on the design and creation of innovative products to meet the needs of the architects, consultants and contractors for the education, leisure, commercial, healthcare and public sectors. All Burmatex products are tested to BSI/CEN standards in relation to durability, wear, flame retardancy, antistatic properties and colour fastness.

Burmatex carpet tiles launched

Mohammed Ali Al Balushi, Shell Oman retail territory manager for Batinah won the Shell Global Best Territory manager award at a glittering “Smiling Stars” function held at Rome, Italy recently. Mohammed beat

stiff competition to emerge No.1 from over 700 Shell territory managers representing over 60 countries where Shell operates. Mohammed joined Shell Oman in 2007 as Operations Excellence Executive.

Mohammed wins Shell Global award

BankDhofar launched its exciting credit card summer promotion that presents credit cardholders with access to popular outlets and discounts guaranteed to delight customers across Oman. BankDhofar credit cardholders will enjoy offers at some of the best retail outlets, restaurants, hotels and spas

both in Oman and the UAE with privileged access to several airport lounges during summer travel. “Our customers deserve the best; therefore we have selected the best brands and services to facilitate their needs with which they can enjoy exclusive privileges as cardholders” says Ali Taqi, senior manager card centre.

Bank Dhofar’s credit card promotion

Orpic, the new name and brand for Oman Oil Refineries and Petroleum Industries Company, was launched at the firm’s plants in Muscat and Sohar. Orpic is the culmination of a successful 12-month integration programme for Oman Refineries and Petrochemicals Company (ORPC), Aromatics Oman (AOL) and Oman Polypropylene. With plants in both Muscat and Sohar, Orpic aims to set a new standard for Oman’s refining and petrochemicals industry with increased efficiencies and significantly improved operational and financial performance. Musab Al Mahruqi, CEO, Orpic says, “The launch of the new name and

company brand is the result of wide-ranging consultation with employees and external stakeholders over the past four months.

86 July 2011

TOY WITH XPERIAXperiaTM PLAY, Sony Ericsson’s latest phone in its XperiaTM range of Android-based smartphones and the first PlayStation-certified device, is a true game-changer. With functionalities that even the most serious power users would be delighted to toy with, XperiaTM PLAY offers an immersive gaming experience that is unparalleled by any other device in its category in the Middle East. In portrait mode, the Android smartphone offers all the benefits that users in the Middle East have come to expect from Sony Ericsson’s existing range of XperiaTM smartphones. The five-megapixel autofocus camera with its brilliant four-inch 480×854 FWVGA multi-touch screen suitable for recording video or video chat offers the most convenient social networking features for the best-in-class entertainment experience.

PERFECT STYLINGThe new Giga Tourbillon is a truly exceptional model which required an extremely accurate development. The Franck Muller research and development department has once again drawn on all its expertise to carry off this remarkable technical feat. As the name implies, its special feature is a very large 20 mm diameter Tourbillon that fills half the watch. Another special feature is that its movement has been reversed, with the bridges found on the dial side, while the hour setting and winding section are at the base and the hour hand is positioned on the minute hand. In order to ensure a 10-day operating reserve, displayed at midday, (traditional winding by the crown), the Giga Tourbillon has been given two pairs of spring boxes, in contrast to traditional tourbillons which generally have only one or two.

THE LEGEND BEYOND LEGENDSRomain Jerome transcends the legend with its new collection: Moon Invader amplifies the emotions of the epic lunar saga. It is the fatal weapon of those who wish to escape the bonds of tradition in order to imagine other ways of conceiving legends. Moon Invader is a distillate of new ideas- an aesthetic vision, a technological challenge and a mythological breakthrough. A technically complex 46 mm new case to frame the lunar legend, featuring a more bevelled yet delightfully rounded cushion shape that is almost a rectangle on its hidden side, made from steel coalesced by fusion with spare parts from Apollo 11. Each watch is thereby literally pervaded by memories of the lunar adventure. This case designed like a safe is an alchemist’s crucible: a spaceship capable of exploring boundless horizons, while carrying in its hold Moon seeds that sow dreams.

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87July 2011

HIGH-END NOTEBOOKFujitsu has announced the first shipments of the new LIFEBOOK P771, a fully specified high-end business notebook with the stamina for all-day working that is available in the Middle East from May. From its small size and weight of just 1.3 kg to its long battery runtime and flexible modular bay concept, every aspect of the LIFEBOOK P771 is designed to meet the high demands of road-warrior mobile power users. The Fujitsu LIFEBOOK P771 achieves battery runtimes of up to 18 hours thanks to combining the latest generation Intel® chipset technology and ULV (ultra low-voltage) processors with an energy-efficient notebook design that includes optional SSD (solid state) hard drives, and an optional second battery fitted in the modular bay. The LIFEBOOK P771 is one of the top range of notebooks that will appeal to high-end users.

BLEND OF QUALITY AND COMFORTPhotoCentre has announced the launch of a range of 16 new FUJIFILM cameras in the Sultanate. The new collection of cameras are packed full of features and loaded with some of the latest technological innovations to suit both professional and amateur photographers. It offers a huge selection to the customer by bringing Compact, SLR and Bridge type of camera together at one time. The cameras in the new collection come with innovative specifications and a range of awesome features, and have been designed to give the option of taking high-definition pictures with high sensitivity, high speed and intelligent processor. The collection includes the XP30 and XP20 which are 5 metre waterproof, 1.5 metre shock proof, dust proof and freeze proof. Besides, XP30 has a GPS function.

THE LIFE-PROOF SMARTPHONEMotorola Mobility has announced the Motorola DEFY™ a slim, pocketable Android™ smartphone that comes equipped with advanced Web-browsing capabilities and a 3.7” high-resolution touch screen display that provides edge to edge views of your favourite photos, videos and websites. DEFY has been designed to handle everything that life throws your way, because it is dust proof and water resistant protecting you from life’s little challenges like a sudden rain shower, spilt drink, or dropping your phone in the sand. It also features a large, resilient display that has outstanding protection against scratch damage. With all the features consumers expect in a smartphone, Motorola DEFY packs advanced web browsing, entertainment and messaging capabilities as well as a design that withstands the challenges of everyday life.