Giving you the business support and finance you need to make your business a success.Intilaaqah proragmme managed by GroFin

“Al Ghadeer Mineral Water Bottling Factory is owned by Mr. Abdullah Al Sharji. The factory is located in Qurriyat 110 kilio meters far from Muscat. The project is funded by GroFin-Intilaaqah programme. The project is monitored by our business team who provide professional consultancy services to different SME entrepreneurs. It is one of the good projects that show the importance of developing industrial projects in Oman.”

www.intilaaqah.orgOffice No: 2469 7949 / 2469 7122Fax No: 2469 7323

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CONTENTS

FRANCHISING GETTING POPULAR AMONG ENTREPRENEURSDo you know that in US there are almost a million franchise businesses across 300 business lines supporting nearly 18 million jobs and generating $2.1 trillion of economic output to the national economy? This is just the tip of the iceberg as world over, the size of the franchise business is manifold.

The franchise business is picking up in Oman in the last couple of years. McDonald’s franchise business in Oman has been a great example. Number of new brands especially in the food and hospitality segment have been brought to the Sultanate by enterprising Omanis. The shining examples are Nando’s, Second Cup, Caribou Coffee, Dunkin’ Donuts, etc. However, most of the activity is concentrated in the food and restaurant segment. Gradually, Omani youth are realizing the importance of taking up low cost franchises in other industry segments as well.

Though franchising is probably a faster and more effective route to have a start-up, there is a merit in studying the pros and cons of conceptualizing your own business initiative instead of promoting someone else’ s brand. One can consult a franchise business expert before taking a plunge.

Do share your feedback on Ruwad’s cover story ‘Business Franchising – Is It Right For You?’ and email your thoughts and experience on franchising with us.

CONTENTKhalfan Al RahbiTurki Al Balushi

DESIGN

Art DirectorsSandesh S. Rangnekar

DesignersKhoula Rashid Al Wahaibi

Aliya Saif Al Wahaibi

Senior PhotographerRajesh Burman

Basim Al Maharbi

Production ManagerGovindaraj Ramesh

MARKETINGChandni Maniar

CORPORATEChief ExecutiveSandeep Sehgal

Executive Vice PresidentAlpana Roy

Senior Business Support ExecutiveRadha Kumar

Published byUnited Press & Publishing LLCPO Box 3305, Ruwi, Postal Code - 112Muscat, Sultanate of OmanTel: (968) 24700896, Fax: (968) 24707939Email: akshay@umsoman.comAll 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. Alam al-Iktisaad Wal A’mal accepts no responsibility for advertising content.Copyright © 2012 United Press & Publishing LLCPrinted by Oman PrintersCorrespondence should be sent to:Ruwad, United Media ServicesPO Box 3305, Ruwi 112, Sultanate of Oman. Fax: (968)24707939

An Alam al-Iktisaad Wal A’mal Presentation

VIEWPOINT20 QUESTIONS YOU MUST ASK! . 04F RANCHISING . . . . . . . . . . . . . . . 09

START-UPTHE WOMAN BEHIND ‘DEEMA’ . 06

SUCCESSFUL ENTREPRENEUR‘NO NEED TO REINVENT THE WHEEL’ . . . . . . . . . . . . . . . . . . . . 14

FROM THE EDITORIAL DESK

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COVER STORY BUSINESS FRANCHISING

10GUEST COLUMNKEY SUCCESS FACTORS IN BUSINESS . . . . . . . . . . . . . . . . . . . 16

FUNDINGCROWDFUNDING – BOON FOR START-UPS . . . . . . . . . . . . . . . . . . 20

EMERGING TALENT MUSTAFA BARAMI, THE INNOVATOR . . . . . . . . . . . . . . . . 22

DistributionUnited Media Services LLC

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FOR THE NEXT GENERATION OF BUSINESS LEADERS

NEWS IN BRIEF

The delegation organized by OPAL in collaboration with Petroleum Development Oman (PDO) included local companies mainly SMEs providing supplies, drilling and engineering services to oil and gas producers

33 OMANI COMPANIES PARTICIPATES IN A SUMMIT IN MANCHESTERFollowing the In-Country Value proposition introduced earlier this year, a delegation led by Oman Society for Petroleum Services (OPAL) including 48 Executives of 33 Omani companies operating in oil and gas sector headed to Manchester to participate in a business summit hosted by Energy Industries Council (EIC) and UKTI towards the end of May. The delegation organized by OPAL in collaboration with Petroleum Development Oman (PDO) included local companies mainly SMEs providing supplies, drilling and engineering services to oil and gas producers. The summit “Opportunities in Oman and Iraq with Shell” was to facilitate discussion and promote partnerships between UK, Omani and Iraqi companies doing business in and around MENA region. It also highlighted opportunities available for UK, Iraqi and Omani companies

in projects currently being developed by Shell International within the MENA region.

WORKSHOP ON ENTREPRE-NEURSHIP IN A CHANGING BUSINESS ENVIRONMENTSharakah delivered a workshop to 30 students at Gulf College. The workshop titled “Entrepreneurship in a Changing Business Environment,” focused on educating participants on how to develop and manage cash flow forecast for Small to Medium size businesses. It also focused on providing a better understanding on how to manage a business in an ever changing business environment taking into consideration the internal and external factors that might affect any business.For around five hours, the students were engaged in discussing terms about entrepreneurship and SMEs, as well as risks associated with businesses. A case study was presented to the students in order to understand how Cash Flow Statements work. “It is one thing starting a business and it is another managing it through turbulence and a changing environment. Aside from promoting entrepreneurship, we believe that it is important for business owners to understand how to manage cash flow,” commented Maher Al Mahrouqi, Project Specialist at Sharakah

Emad Al Abduwani, student and one of the participants of the workshop said: “Overall, the workshop was interactive

and informative. The students showed their interest through their intensive participation during the workshop and they commented that there is no doubt this workshop will help them now in their studies as well as in their future occupational life.”

A presentation followed the workshop presented by Halima Al Riyami, Marketing Specialist. She gave overall information about Sharakah’s services and schemes. Halima highlighted Sharakah’s role in supporting SMEs and presented three financial schemes Sharakah provides for SMEs namely Loan, Equity and Bill Discounting.

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UPCOMING EVENTSIN MUSCAT

Oman Transport Infrastructure Summit10-12 September 2012

Oman Office Show10-12 September 2012

Imtex Oman17-19 September 2012

MedHealth & Wellness Exhibition25-27 September 2012

Traffic Safety Expo16-18 October 2012Oman Healthcare Summit16-18 October 2012The Home Show 201218-20 December 2012

A five-day exhibition highlighting the outcome of Muscat Youth Summit 2011 was organized at BankMuscat head office. AbdulRazak Ali Issa, Chief Executive of BankMuscat, inaugurated the exhibition in the presence of HH Sayyid Faisal bin Turki Al Said, Chief Operating Officer, Brand Oman Management Unit (BOMU) and organizer of the annual Muscat Youth Summit (MYS).

AbdulRazak Ali Issa said: “BankMuscat is proud to host the Muscat Youth Summit exhibition which spotlights the vision of youth in tackling issues faced by the world. BankMuscat understands the importance of youth in shaping the future of Oman and is delighted to showcase their collaborative efforts with youth from around the world. The exhibition provides insight into tapping the skills and talents of youth to benefit all.” The exhibition highlighted the

outlook of youth on their world shaped by technology and social networks. MYS 2011 attracted 240 student participants from across Oman and over 20 countries.

They attended 18 workshops on social entrepreneurship, urban development,

social media, art and culture. MYS 2011 provided 15 - 24 year-olds with an extraordinary opportunity to interact with entrepreneurs, artists, broadcasters, architects, academics, journalists, photographers, social media specialists and leading business people.

MOHAMED AL BARWANI PARTICIPATES IN WORLD ENTREPRENEUR EVENT

BankMuscat is proud to host the Muscat Youth Summit exhibition which spotlights the vision of youth in tackling issues faced by the world. BankMuscat understands the importance of youth in shaping the future of Oman and is delighted to showcase their collaborative efforts with youth from around the world.

Dr James Mwangi, CEO and Managing Director of Kenya’s Equity Bank Limited, was named the Ernst & Young World Entrepreneur Of The Year 2012 at a prestigious awards ceremony held in Monte Carlo. Mwangi was picked from among the 59 country finalists vying for the title across 51 countries, each of whom had already been named the Ernst & Young Entrepreneur of The Year in their home countries.Oman was represented for the first time in the programme’s 25 year old history, by Dr. Mohamed Al Barwani. Dr Barwani, was named winner of the Ernst & Young Oman Entrepreneur Of The Year 2011 Awards, held in Muscat on 17 March. Dr Barwani won the prominent award for establishing MB Group of companies.

Ernst & Young’s Entrepreneur Of The Year recognises outstanding entrepreneurs for their vision, innovation, courage, and leadership in building and growing successful businesses that influence the way we live, the products and services we depend on, and the economic vibrancy of our local communities and global markets.

BANKMUSCAT HOSTED MUSCAT YOUTH SUMMIT EXHIBITION

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FOR THE NEXT GENERATION OF BUSINESS LEADERSFOR THE NEXT GENERATION OF BUSINESS LEADERS

VIEWPOINT

4

• What sectors do you support? Is my business activity in the sectors that you are supporting? Before you go further with your questions, ensure that your business activity is supported by the financier.

• What is the minimum and maximum amount of financial support that you provide? It is likely that your financial needs may not fall within the range of the financier.

• Can I be employed elsewhere and still run my business? Some organizations give preference to unemployed nationals as a means for job creation and developing local capacities.

• Do you have any restrictions in

Abdullah Al Jufaili, General Manager, Sharakah

20 QUESTIONS YOU MUST ASK

IT’S NICE TO KNOW THAT YOU HAVE FINALLY MADE YOUR DECISION TO APPLY FOR FINANCE AND ESTABLISH YOUR BUSINESS. HOWEVER, BEFORE YOU TAKE THAT STEP, YOU NEED TO KNOW MORE ABOUT THE FINANCE OPTIONS AVAILABLE. LET ME HELP YOU SELECT THE PACKAGE THAT SUITS YOUR BUSINESS REQUIREMENTS. HERE IS A LIST OF QUESTIONS THAT YOU NEED TO ASK BEFORE YOU CHOOSE THE FINANCE PROGRAMME.

Omanization levels? For similar reasons as mentioned in the previous point, one of the objectives of these organizations is to provide employment opportunities for locals.

• Do you concentrate on a specific age group? Most of these organizations concentrate on entrepreneurs between the age of 18 to 40 years.

• Do you have any special services for minority groups like disabled, retiree or women entrepreneurs? Some programmes like “Mawarid Al Rizq” at the Ministry of Social Development concentrates on social welfare families.

• What should I submit with the finance request? All financiers request

an up-to-date business plan for a minimum of three years. If it is an existing business, you will need to submit audited financial statements for the previous years. They will also request the resume of all owners, copies of their identification cards, a copy of the registration at the Ministry of Commerce & Industry, a copy of Oman Chamber of Commerce and Industry (OCCI) membership and other documentation according to the nature of the business activity.

• How long does it take until my application is approved? In best scenarios, the process takes anything from 45 to 90 days provided that all required information is presented and complete.

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• Is the whole amount going to be disbursed directly to the business account or to a third party like the supplier? Keep in mind that most financiers prefer to disburse the investment amount on tranches according to the business needs. This is to ensure that the investment amount is not misused.

• Can you provide me with a list of fees that I should pay prior to and after approval? Some of these fees include a processing fee that varies between 1 to 5 per cent of the investment amount. It may also include loan interest fees, in most commercial banks it varies between 9 to 11 per cent.

• What financial schemes do you offer? Most financiers offer either long or short term loans. Some organizations like GroFin and Sharakah, offer equity participation scheme. You should decide what scheme is more suitable for your business.

• Do you require collateral? If so, is it calculated as a percentage of the investment amount and what percentage would that be? What type of collateral security that you require?

• What other fees do I have to pay? Below is a list of some fees that have to be paid to a third-party organization

– Registration fees at Ministry of Commerce & Industry

– Membership fee at Oman Chamber of Commerce & Industry

– Municipality fees – Ministry of Manpower fees

– Property evaluation fee – Property or commercial mortgaging

fees – Mortgage releasing fee

• For loans, how much interest do you charge? Is it compounded interest? Is it flat or reducing based on balance? Do you also charge for risk associated with the business? If so, than how much do you charge?

• What is the maximum number of years allowed until I pay you back? Is there a grace period? How long is the grace period? Do you charge interest before or after the grace period?

• Do you invest 100 per cent? If not, than what is the minimum contribution for existing and startup businesses?

• Do you allow foreign investors as partners of the business? If so, is there a certain percentage. Note that in general, all businesses with foreign investors have to comply with the foreign investment law.

• Do you provide any other services aside from financing? If so, can we get a list of those services? Would you follow up and monitor the progress of our business periodically? Would you help us in marketing?

• Do you have any products or schemes that comply with Islamic finance? Do you require life insurance coverage?

• Do you provide services to businesses across the Sultanate? Do you have branches everywhere?

‘ANSWERS TO THESE

QUESTIONS CAN BE FOUND

ON MOST WEBSITES OF THE

SUPPORTING ORGANISATIONS

OR THEY CAN BE OBTAINED

BY PHONE. IF YOU WANT TO

GET A COMPARISON TABLE

OF ALL OF THE FINANCING

ORGANISATIONS, PLEASE

CONTACT US. REMEMBER,

IT’S IMPORTANT TO SELECT

A FINANCIAL PACKAGE THAT

SUITS YOUR BUSINESS NEEDS.’

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FOR THE NEXT GENERATION OF BUSINESS LEADERS

SHADYA AL-ISMAILY CHUCKED HER SUCCESSFUL CAREER IN FINANCE & INVESTMENT TO CHASE HER DREAM TO BECOME AN ENTREPRENEUR IN JEWELRY DESIGNING. SHE SHARES HER ENTREPRENEURSHIP JOURNEY IN HER OWN WORDS:

THE WOMAN BEHIND ‘DEEMA’

Deema is an exclusive and authentic jewelry designing house that captures the latest trends and insights of the prestigious jewelry markets. Its main objective is to combine this with classical Islamic arts and designs and Omani heritage, to come up with state-of-the-art designs for the Islamic and Omani jewelry

I n January 1989, I joined the Ministry of Finance and was trained as the first Omani dealer in international markets for crude

oil, for purposes of hedging against price fluctuations. Following this, I undertook the role of Head of Letters of Credit, and, finally, as Head of Financial Operations (short term) in the international financial markets. Then in 2000, I joined Petroleum Development Oman Limited as Head of Financial Services for Employees, then, the Manager of the Pension Fund of the Company. By the end of 2005, I became the Head of Operating Expenditure, and finally, Skillpool Manager for the Department of Finance of the company.

After 22 years in the field of finance and investment, I finally decided to follow my passion and dreams. In February 2010, I resigned from Petroleum Development Oman Limited to dedicate my time fully to jewelry designing.

The TriggerWith Omani women entering the job market, it became highly impractical to wear Omani traditional jewelry during the day. As time passed, the use of Omani jewelry drifted from being an everyday adornment to becoming more restricted to important social events such as weddings, Eid celebrations, and other

START-UP

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special events… I felt it was my patriotic duty to preserve our heritage from fading out; to primarily encourage modern Omani women to revert to our culture and also to promote our custom among women of different cultures within and outside Oman. And thus the concept of Deema Collections came about with the objective of incorporating a new blend of inter-cultural artistic tranquility between traditional Omani jewelry and the latest trends in the exalted international jewelry markets.

Initial StepsMy passion for art and design goes back to my school days; I was naturally attracted to all things related to arts and design. It was my dream to join the school of arts immediately after graduating from the secondary school, but, instead, I specialized in an area that has no connection with arts or designs - I ended up in the world of numbers and numerical analysis. I studied Accounting at the University of Ain Shams in Cairo, and then gained my MSc in Finance from Strathclyde University in Glasgow in 1996. Although I undertook various exciting roles in the area of finance, my passion for arts and design did not shy away. I continued to follow my passion, occasionally, by taking up various artworks like painting, home designing projects, and eventually got into jewelry designing and making. Following encouragement from friends and my family, specifically my daughter, and two years of evaluation, I began designing my first Omani contemporary designs in January 2008.

Our intention was to keep this line of work active and lively; it was important to brand our jewelry, which made us

decide on the name ‘Deema’, as suggested by my youngest daughter. By November 2008, Deema was registered as a designing house for luxury jewelry. On 25 January 2009, under the Patronage of Sayyed Hamoud bin Faisal Al Busaidy, the then Minister of Environment and Climate Affairs, we marked the launch of ‘Deema’ as the first Omani fine jewelry brand and the Deema collection was unveiled at Bait Al Zubair.

Unique PropositionDeema is an exclusive and authentic jewelry designing house that captures the latest trends and insights of the prestigious jewelry markets. Its main objective is to combine this with classical Islamic arts and designs and Omani heritage, to come up with state-of-the-art designs for the Islamic and Omani jewelry - in its new modern look, and in exclusive and limited editions. Deema collection includes rings, pendants, necklaces, earrings, bracelets and bangles in precious metals and incorporating an array of precious and semiprecious stones, and pearls. As demand for its exquisite oriental influenced designs increased, Deema branched out into designing of fine interior related products. They are commissioned by our clients to meet their unique requirements for customized features and represent limited edition issues.

Underlying PhilosophyDeema’s philosophy in designing its jewelry has been largely influenced three key elements: The Omani Heritage: Oman is rich in its heritage, beautiful patterns and other legacies that cannot be ignored. Hence, it was logical that Deema be affected by this beautiful legacy. The viewer of Deema’s

collection would instantly realize that we do not just make ordinary jewelry pieces, but is also a melting pot of heritage tell us stories as diverse as the ancient stories of our seas and marine journeys.

The Islamic Art and Designs: The Islamic architecture and its designs also have a special imprint on Deema’s work. This line was included to promote the beauty of Islamic art and creativity. This line attracted the attention of many who are interested in architectural design during Deema’s participation in the International Jewelry London (IJL) exhibition. An interesting example would be an Italian architect who spent four hours at Deema’s stand admiring the way Deema employed Islamic architectural designs in its Jewelry.

The Environment and Nature in Oman: This is also considered as a source of inspiration in the designing of Deema’s work. A special line is dedicated to nature. The ‘Palm’ collection is inspired by the dates’ tree, and was the first collection under the ‘Nature’ line. Every element of the tree was carefully employed in a piece of jewellery. The ‘Palm’ was launched at the International Jewellery London (IJL) at the Earls Court Exhibition Centre in September 2011. The collection caught the eyes of many visitors and attracted high traffic into the stand.

Measurable TargetsA quick valuation of Deema’s performance to date would suggest that we are ahead of our five years plan. Within the first three years of establishment, Deema has already managed not only to establish a name regionally, but also internationally.

After 22 years in the field of finance and investment, I finally decided to follow my passion and dreams. In February 2010, I resigned from Petroleum Development Oman Limited to dedicate my time fully to jewelry designing.

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FOR THE NEXT GENERATION OF BUSINESS LEADERS

Deema was selected amongst handful international designers to be featured in an international prestigious book that will be published in November 2012. Deema’s work was selected and used for a cover page of a British jewelry magazine called ‘Jewellery Focus’ – November 2011 issue. Deema was approached by a music company to borrow Deema’s jewelry in a music video of a new singer who is predicted by The Times, The Guardian and other newspapers to be the next Madonna!

As far as the future course of action is concerned, Deema will be a well-established name, at least, in the region. Secure a supply contract with an international renowned company as their prime jewelry supplier. And open an outlet. Our key goal is to position Deema as a high-end designing house, internationally.

Words of AdviceTo be a successful person, it is not necessary to be a doctor, an engineer, an accountant, or a lawyer. You will be successful if you are passionate, enjoy what you do, and committed. Once you have determined what you are passionate about, have a clear vision of your project and where you wish to take it to. Have a business plan in place, implement it and evaluate your performance very frequently. Surround yourself with positive people, and do not take ‘No’ for an answer. We cannot be experts in all fields, so seek help in areas that you lack expertise and delegate them to the experts.

In a nutshell, my recipe for success would be; passion, focus, positive, influential network, dedication, and delegation.

MILESTONES:

2008 Founding of Deema. 2009 Launch of the first collection. Participation in the first International Jewelry Exhibition in Oman. 2010 Participated in the Arab Jewels Exhibition in Bahrain.2011 Launched ‘Living’ by Deema, an interior line. Commissioned to design tableware for two restaurants of a 5 stars international hotel in Muscat. First model shooting. Showcased Deema collection at the International Jewelry London (IJL) Exhibition. Designed a special collection for a prestigious car company.

START-UP

Deema was selected amongst handful international designers to be featured in an international prestigious book that will be published in November 2012. Deema’s work was selected and used for a cover page of a British jewelry magazine called ‘Jewellery Focus’ – November 2011 issue.

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VIEWPOINT

Kakul Agha is an Assistant Head, Department of Postgraduate Studies & Research, Middle East College of Information Technology (MECIT)

F RANCHISING-A VIABLE BUSINESS MODEL IN OMANFOR THE NAÏVE ENTREPRENEURS, FRANCHISING CAN HELP REDUCE RISK, SHORTEN THE LEARNING CURVE AND PROVIDE A SUPPORTIVE ENVIRONMENT

A review of research in franchising is an eye-opener! Contemporary research work by Combs

et al. (2011) reveals that franchising is about understanding the long term contractual agreement between two types of firms – one being the franchisee who is entrepreneurial in nature, identifies an opportunity and is ready to take the risk to replicate the venture in new geographical markets; and the other is the franchisor who also sees an opportunity to expand and grow the business.

Stakeholders see franchising as a tool for symbiotic benefits among firms when they own a mix of franchised and company-owned outlets. The Sultanate of Oman is seeing a surge in young entrepreneurs and hence franchising is also become more proliferating.

In a recent panel discussion organised by the Muscat American Business Council (MABC) and McDonald’s Oman at the Sultan Qaboos University, the central theme was “Franchising as a Viable Business”. It was understood that franchising is the most preferred and exciting business model for SMEs in Oman.

Why do firms go for franchising? Firms get access to franchisees’ capital, managerial and local knowledge and are able to balance resource scarcities and build economies of scale. Hence the local Omani knowledge and market expertise can be best understood for customer satisfaction through franchising, rather than if foreign firms intend to grow through company ownership in the Omani market.

Another critical reason why firms tend to franchise is that distance makes direct observation costly and result in difficulty in decision making. Thus, extant evidence shows that franchising helps substituting for company

ownership when the cost of monitoring managers is high.

The symbiosis of firms and franchisees is mutually beneficial. Franchisees foster innovation and local market adaptation; resolve operational problems and identify potentially profitable new products that cater to local customer needs and cultural requirements although company owned outlets promote system-wide standardization.

The Omani entrepreneurs can make a difference to the economy by adopting the franchise model in the country. They can omanise the products and services to suite local needs and innovate the environment of market, to an extent that customers are delighted and the business becomes a success. For the naïve entrepreneurs, franchising can help reduce risk, shorten the learning curve and provide a supportive environment.

This model also brings latest concepts, technology, and products for the customers, thus increasing sales and profits for the Omani entrepreneur and thereby positively benefitting the thriving economy of Oman.

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If we look around, we are bound to see some homegrown brands in the market but in the organized sector, most of the market leaders

are multinational brands operated by local franchisees. McDonald’s, Starbucks, Dunkin Donuts, Nando’s, H&M, Zara and Subway, etc. are some of the prime examples. With an established brand name, business practices and products or services, it is easy for an entrepreneur to start a new business with a higher degree of success probability.

What is a Franchise?The renowned international law firm Curtis has made an easy to understand and legally correct description of the term franchise. According to Curtis: “Although the word ‘franchise’ often conjures images of particular kinds of businesses – such as fast food restaurants or budget hotel chains – franchising is actually used across a broad spectrum of enterprises. What all franchises have in common are (i) a branded line of products and/or services, (ii) an operating system prescribed by the franchisor, and (iii) one or more fees

BUSINESS FRANCHISING – IS IT RIGHT FOR YOU?ONE DOESN’T NEED MILLIONS OF RIALS TO OWN A FRANCHISE. AND IT OFFERS BETTER OPPORTUNITIES TO SUCCEED AS LONG AS THE ENTREPRENEUR BRINGS IN THE RIGHT FRANCHISE IN THE MARKET

With an established brand name, business practices and products or services, it is easy for an entrepreneur to start a new business with a higher degree of success probability.

COVER STORY

Hani Mirza, Partner and Managing Director at Bin Mirza International

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charged to franchisees for the right to participate in the business system by selling the branded products and/or services and by utilizing the franchisor’s operating system. Franchisors and franchisees are independent business entities, and franchisors typically derive their income from initial and ongoing fees paid by their franchisees. Sometimes franchisors also sell items to franchisees or collect fees from franchisees’ suppliers.

“For example, in the case of a fast food restaurant such as McDonald’s, the franchisor, McDonald’s Incorporated, has created and maintains (i) a brand together with intellectual property (e.g., the golden arches logo) and products (e.g., the Big Mac hamburger) associated with the brand, and (ii) a system for operating McDonald’s restaurants, which likely includes detailed guidelines

for restaurant layout and decoration, food preparation guidelines, customer service guidelines, and many other requirements. McDonald’s franchisees, namely the businessmen and companies that own and operate McDonald’s restaurants throughout the world, pay franchise fees to McDonald’s Incorporated in exchange for the right to use McDonald’s Incorporated’s brand and operating system.”

Legal Framework for Franchising in OmanAccording to Curtis, “In some jurisdictions, there is a separate legal framework that governs franchises. However, in Oman franchises are simply considered another form of commercial agency. Accordingly, franchise agreements, like any agency or distribution agreement, are governed by Oman’s Commercial Agency Law,

Franchisors and franchisees are independent business entities, and franchisors typically derive their income from initial and ongoing fees paid by their franchisees. Sometimes franchisors also sell items to franchisees or collect fees from franchisees’ suppliers

In some jurisdictions, there is a separate legal framework that governs franchises. However, in Oman franchises are simply considered another form of commercial agency. Accordingly, franchise agreements, like any agency or distribution agreement, are governed by Oman’s Commercial Agency Law

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unless the agreement is expressed to be governed by the laws of a country other than Oman, coupled with an arbitration clause. To form a legally valid franchise relationship in Oman, it is necessary for the franchisor and franchisee to enter into a franchise agreement and to register in the Commercial Agents Registry at the Ministry of Commerce & Industry.

“The franchise agreement is naturally a very important document to the franchisor and the franchisee alike. Although the franchise agreement will usually be based on the franchisor’s standard form, it is important for the franchisee (and, we recommend, the franchisee’s legal advisors) to review the franchise agreement carefully and negotiate its key points with the franchisor. From the perspective of an Omani franchisee, the key issues are likely to be:

• The fees that the franchisee will be obliged to pay to the franchisor.

• The services that the franchisor will provide to the franchisee (for example, training and marketing support).

• The scope of the franchise rights (for example, geographical reach).

• The reasonableness and attainability of any performance targets or restrictions that the franchisor may impose on the franchisee.

• Whether the franchisee is being appointed on an exclusive or non-exclusive basis; and

• The governing law and jurisdiction clause.

Is Franchising the Best Option?Ruwad spoke to some of the industry experts on their view points on the case for and against franchise route for an entrepreneur. Commenting on why becoming a franchisee is better than starting from scratch, Hani Mirza, Partner and Managing Director at Bin Mirza International said: “A franchise is better if you are entering a new business line, as the product or service has already been tried and tested. A franchise also gives you the networking and brand exposure of a wider geographical area that you would not get had you started from scratch. The franchisor may also provide support through periodic newsletters, a toll-free telephone number, a website or schedule.”

Bin Mirza International has been behind bringing international brands such as

It is always best to have a solid understanding of the franchisor before signing any contract. Explaining the local market conditions, support expectations and the development plan will help you avoid many conflicts in the future

COVER STORY

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Second Cup Cafes (from Canada), Nando’s Peri Peri Chicken Restaurants (from South Africa), CinnZeo Bakery Cafes (from Canada) and BreadTalk Bakeries (from Singapore) to Oman quite successfully via franchise model. He added, “It is always best to have a solid understanding of the franchisor before signing any contract. Explaining the local market conditions, support expectations and the development plan will help you avoid many conflicts in the future.”

When he was asked what are the business areas (especially with low investments) that holds significant business opportunities for franchisees in Oman, he replied, “I believe there is a wide gap in the added-value services market in Oman. As these concepts have low start-up costs and can operate from home there are significant business opportunities available.”

On the issue of few successful examples of franchising business in Oman, he said, “There are many distinguishing factors that prove Oman to be challenging when it comes to franchising. This includes large territory fees to obtain rights, continuing royalty payments and restrictions on the goods and services that are sold. This does not appeal to the inexperienced business owner as the size of the Omani market pales in comparison to that of neighbouring countries. In addition, some businesses purchase the franchise for the whole GCC region including the Sultanate, but may not implement operations.”

Moving on, Ruwad also spoke to Seenie who has been providing consultancy in this line for number of years in Oman. When he was asked what factors

should be kept in mind while finalizing a franchisor by a potential franchisee, he said: “Here are a few points that I recommend but it does matter on the entity that you are going to take on. Can I afford this entity? What is the shelf life of the product or service? What marketing strategies have been outlined? Does the market support your product? Read all the fine print; have a good management team around you. Visit the franchise entity in another country or where it was created to experience the product or service directly.”

He further said, “Our company Omozz provides A to Z personalized service. Each client is different with their needs, so each brief is tailored accordingly.”

On the potential of franchising in the hotels and restaurants’ business in Oman, he said: “Potential opportunities arise according to the balance of internal and external factors, but once again follow your brief. Financial gains for any business is a welcome, but be ready to make a loss as well as not all great competitive teams win. Allow yourself to have a passion for your product or service, this will drive the business on long journeys. If you enjoy learning and being creative, this is part of the entity

that you could never learn and experience in any educational institute. As the saying goes - it is an experience of a life time.”

Though franchise is quite popular in restaurant and retailing businesses but the opportunities exist in other industries as well. Take for example, Ziebart Automotive Services of the US. Some of the services offered by Ziebart stores globally include rustproofing, automobile detailing, scratch, dent, & scuff repair, window tinting and the installation of

after-market accessories. Ziebart’s has a franchise in Oman. In a recent panel discussion ‘Franchising as a Viable Business’ organized by the Muscat American Business Council (MABC) and McDonald’s Oman at the Sultan Qaboos University, Rahwan Al Murazza, local franchisee of Ziebart Automotive Services said: “One of the advantages of franchising is that one doesn’t have to be a mechanic to acquire the Ziebart franchise. I’m not a mechanic myself and I don’t have that particular experience to run an automotive business. But as a proven formula, franchising gives you access to the complete business system from A to Z, thereby enabling you to run it as your own business.”

One of the advantages of franchising is that one doesn’t have to be a mechanic to acquire the Ziebart franchise. I’m not a mechanic myself and I don’t have that particular experience to run an automotive business. But as a proven formula, franchising gives you access to the complete business system from A to Z, thereby enabling you to run it as your own business.

There are many distinguishing factors that prove Oman to be challenging when it comes to franchising. This includes large territory fees to obtain rights, continuing royalty payments and restrictions on the goods and services that are sold.

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There is no short-cut behind it. Hard work, self-belief, persistence and a good motivated team are a must for any entrepreneur to be successful.

SUCCESSFUL ENTREPRENEUR

said Ali K. Daud, Development Licensee and President of McDonald’s Oman.

The entrepreneur par excellence has not looked back since opening his first McDonald’s restaurant in 1994. Wherever he has opened the McDonald’s restaurant in Oman, it has been an instant success. What’s the magic formula? “There is no short-cut behind it. We have always looked after our customers and not compromised on our promised standards. We always serve quality food in a clean and wholesome environment with fast and friendly service. Hard work, self-belief, persistence and a good motivated team are a must for any entrepreneur to be successful,” he replied.

Ali K. Daud has been a role model for any aspiring entrepreneur. One critical factor which distinguishes him from others is that he is not just a business owner; he is an owner-operator. Many businesspersons lack knowledge of the line of business they operate in. Many of them also lack the requisite skills which are a must to manage the different functions of the business. As a result, their involvement becomes minimal and they over rely on their staff for even

Recently, McDonald opened their latest restaurant in Darsait. With motorists stopping by to grab a bite of

their favourite burger or shoppers’ at Lulu looking forward to a world-class eating-out experience after finishing their grocery purchasing, McDonald’s latest addition to its restaurant network in Oman has been a runaway success.

Driven by the franchising business model, McDonald’s has been repeating its success story in every part of the world. McDonald’s may not be the first franchise business in the world but it has emerged as one of the most successful case studies in franchise business model.

In the late 1980s, the brand caught the attention of young Ali K. Daud who was pursuing a graduation degree in New York. He found McDonald’s franchise model quite interesting and thought of bringing the brand to Oman. His dream became a reality when he opened the first McDonald’s restaurant in Oman in 1994. Was it a cake-walk for him? Just pay the money and get a readymade business! On the contrary, he had to go through a period of tough scrutiny and

intense training before he got the franchise.

“When I was a university student, I met a family which ran the franchise of McDonald’s in New York. After talking to them, I developed a serious interest in bringing the franchise to Oman. When I contacted McDonald’s, they told me to wait till they start implementing their expansion in the Middle East region. I used to keep following up with them on a regular basis. Finally in 1990, they decided to consider my application. I had to undergo various rounds of interviews at different levels in the UK and US. I was finally selected after a strenuous evaluation process.

That was not all. After the selection, I underwent rigorous training for one year in the UK, Singapore and the US. I worked in the restaurant as a crew member initially; thereafter I held various positions in the restaurant management before becoming a Restaurant Manager. I was trained in various disciplines such as operations, marketing, real estate selection, purchasing and construction, etc. that are critical in the building and operations of a McDonald’s restaurant,”

‘NO NEED TO REINVENT THE WHEEL’THE SERVICES’ SECTOR HOLDS LOT OF PROMISE FOR OMANI YOUTH INTERESTED IN A FRANCHISING BUSINESS, SAYS ALI K. DAUD, THE MAN BEHIND THE SUCCESS OF MCDONALD’S IN OMAN

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There is a general belief that franchising is a capital-intensive business model and more suitable for people with deep pockets looking to set-up a large-to-medium size enterprise. But that’s not correct, according to Daud.

critical decisions. Consequently, this proves to be their nemesis.

Daud is a hands-on person. He not just owns the business, he also operates it. “If you leave it in other people’s hands, you run the risk of having a mediocre business. Having said that, it is also important to develop a capable team as the business grows. A smart entrepreneur should not try to do everything himself,” he said.

Recently speaking in a panel discussion on ‘Franchising as a Viable Business’ organized by Muscat American Business Council (MABC) of which Mr. Daud is also the President, he said: “Franchising is a

powerful and effective way of building successful entrepreneurship and SMEs. A good franchise provides training, mentorship and proven systems to operate a successful business. Especially, for the first timers, franchising reduces risk, shortens the learning curve and provides an environment where you are not on your own. This also mitigates risk for the lenders, making it easier for the franchisee to secure funding (in other words, banks are more likely to lend you money).”

There is a general belief that franchising is a capital-intensive business model and more suitable for people with deep pockets looking to set-up a large-to-

medium size enterprise. But that’s not correct, according to Daud. He said, “We want to dispel the myth that franchises always need a lot of money to get started or you have to be a large company. There are a lot of franchises out there, in the US particularly, that really don’t need large capital. They can be as small as a one or two-man show to begin with. For example, a fumigator, plumber, electrician, carpet cleaner, etc. My advice to the youth of Oman who are looking to obtain a franchise is to focus on the services sector: and my advice to the government would be to bring on board expertise to run SME strategy from countries that have done it successfully, and not to try and rein vent the wheel.”

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GUEST COLUMN

activities-on those most important activities – on those two or three (no more) key success factors. In any business, there are two or three activities that are primary determinants of success. Two activities might lead to less concentration on primary activities.

Determining the Key Success Factors helps executive decision makers and managers to think more deeply about their enterprise than they ever have before. Time spent on less important activities to make them good might result in improper allocation of resources.

Micro/Startup BusinessesThe process of setting up your key success factor should not be difficult. Simply ask yourself what are the key activities that if you do them well, will ensure your success as a business. Hereunder we list number of key success factors for startup businesses:

• Sell each unit at profit.

• Continue to reduce overhead costs.

• Develop new products while maintaining the high quality of existing products.

• Find and retain high – value customers.

Key Success Factors are the important elements for success in a given market which businessmen/

businesswomen should follow in order to enjoy ‘success’ in their businesses. The success shows ‘where preparation and opportunity meet’. When writing a business plan, it is crucial to identify what will make your business a success. The key success factors, also known as critical success factors, keep you and you employees on track to make your business a success.

They are different questions might be asked to know success. How do you define and measure the success in your business? How do you know, if your business is a success? Can you tell if you are progressing as per your business plan or not? If you are not, what corrective action(s) can be taken?

How to determine your Key Success Factors:

• Review your business activities in the previous year(s).

• Develop a short list of activities at which you have got to be especially good.

• Conduct a ‘situation analysis’.

• Identify your internal strengths and weaknesses.

• While itemizing your strengths and weaknesses, keep your lists short and well-focused.

• Keep the strengths and weaknesses that relate to your Key Success Factors.

• Finally, your key success factors will serve as a guide in determining potential strengths and weaknesses, you actually include in your lists.

To maintain focus, it is important to limit your list of Key Success Factors to two, or at most three. For example:

After creating a list of activities at which you have got to be especially good, the management team might have a list of six or eight activities. Typically, they may list ‘understanding customer needs’, ‘producing a low-cost product’, ‘managing expenses’, ‘hiring good people’ and ‘developing innovative marketing programmes’. The above list is certainly complete and so inclusive but it lacks a focus on key activities for success.

Maintaining focus is exactly what is required for success. Focus on few

KEY SUCCESS FACTORS IN BUSINESSDETERMINING THE KEY SUCCESS FACTORS HELPS EXECUTIVE DECISION MAKERS AND MANAGERS TO THINK MORE DEEPLY ABOUT THEIR ENTERPRISE THAN THEY EVER HAVE BEFORE

Hashim Al Hassani, Deputy General Manager, Shell Intilaaqah

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• Create and maintain the highest level of customer satisfaction.

PitfallsIf management of any business has not identified their Key Success Factors they might face the following problems:

• Unable to possibly function well in the market.

• Performance measurement, monitoring and reporting will be a random process creating an army of measures producing numerous numbering reports, full of measures that monitor progress in a direction very remote from the organization’s strategy.

• The staff might work in a direction very different from the intended course.

BenefitsKnowing, communicating and

measuring progress in an organization’s Key Success Factors leads to the following profound benefits:

• Discovery of organization’s ‘winning KPIs’.

• Elimination of unimportant measures those are unrelated to Key Success Factors.

• Buildup of staff awareness on organisation’s strategy.

• Reduction of number of reports that are produced and unrelated or irrelevant to organization’s strategy.

• Encouraging clearer summary reports to the board and senior management based on progress within the CSFs.

Type of Key Success FactorsThey are different type of key success factors the organization may implement are as follows:

Measurable Key Success Factors: Increase sales of a product or services, increase profit margin etc.

General Key Success Factors: Increase number of new customers, retains quality employees, and increase customer satisfaction.

Regulatory Key Success Factors: Improve compliance with the regulatory bodies.

Industry-Specific Key Success Factors: These are factors relevant to the industry you are in.

Temporal Key Success Factors: These are factors related to short term situation such as crises. They are important but are usually short-lived.

The process of setting up your key success factor should not be difficult. Simply ask yourself what are the key activities that if you do them well, will ensure your success as a business. Hereunder we list number of key success factors for startup businesses

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INCREASED SALES (MAKE MONEY)More time with customers - Consumers spend more time with mobile apps compared to the web. Your customers are consumers, too. Marketing content presented via mobile app leverages the same dynamic. Apps

TUTORIALS

How this device is going to make money for me? Or save money for me? The questions were raised by

the CEO of a company when his sales heads suggested purchase of iPads for themselves.

Ofcourse, he was not an Apple fan but he wanted to know the value of investing in one of the most desirable tablet machines. If you are also in double mind on the efficacy of an iPad, here are the top 10 business cases for an iPad enterprise rollout:

Experiential learning is more impactful than passive learning. Just as kids will remember more about dinosaurs by visiting the natural history museum than they will from a simple class lecture, adults retain more when content is interactive

DO YOU NEED AN IPAD?IPAD HAS BECOME A MUST TOOL FOR MAKING BUSINESS PITCHES THESE DAYS. BUT DOES IT JUSTIFY THE ROI?

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Ever wonder what your sales reps are showing to customers? What about how much time they’re spending on site? And where the focus is during the presentation? An iPad sales app can help you get smarter about your sales effort from a human perspective.

hold people’s attention longer.

Message Retention - Experiential learning is more impactful than passive learning. Just as kids will remember more about dinosaurs by visiting the natural history museum than they will from a simple class lecture, adults retain more when content is interactive. An iPad app can offer a self-guided experience that lets someone travel the threads interesting to them, at their own learning pace.

Message Efficacy - To improve our messaging, we must first measure it. That’s tough to do with printed brochures and PowerPoint presentations. An iPad + app will let you track every screen and interaction

on it, offering new insight into your clients’ focus. Use this data to craft more effective messaging.

Sales Team Efficacy - Ever wonder what your sales reps are showing to customers? What about how much time they’re spending on site? And where the focus is during the presentation? An iPad sales app can help you get smarter about your sales effort from a human perspective. Great content doesn’t do you much good if your reps are skipping over the key points.

COST SAVINGS (SAVE MONEY)Less Waste - Printed collateral is expensive, forgettable and usually discarded. It’s the definition of a waste of money. Moving sales collateral to digital reduces the cash and environmental cost of paper. For deployments in financial services, pharma, and employee training – where printouts are the norm – the benefits are particularly pronounced. What’s more, making these documents dynamic and updateable reduces confusion around versioning.

Fewer Lawsuits - Centralized control of content to keep reps on message reduces the possibility of your sales team going off script and making promises inconsistent with company policy.

Fewer Annoyed Customers - Align expectations and reality by demonstrating your offering with an interactive multimedia experience. Your customers will know exactly what they’re getting; you’ll know that they know. Narrowing the delta between “what I thought I was getting” and the deliverable reduces customer service friction.

Productivity - The iPad creates new occasions to compute. What does that mean? It’s easy to pull out an iPad in a hallway, standing next to someone at the coffee counter, or in other informal

occasions where a laptop might be cumbersome. Ultimately, these are new opportunities to positively interact with co-workers and clients. Experience shows us that it’s the spontaneous conversations in the hallway – not the conference room – which drive innovation.

DIFFERENTIATIONCool Factor -Your competitors are still using laptops and spiral-bound handouts. Use technology to show that your company is forward thinking – and leverage the iPad’s feature set to express what makes your offering preferable. For now, the iPad is still a novelty to most people. Leverage this.

Better Storytelling - Give your sales team a leg up in explaining complex elements of your offering. Leverage the iPad’s non-linear navigation elements to answer questions before they’re asked. Bring your story to life with a depth and dimension unavailable on other platforms. Ultimately, use the iPad to communicate better.

BONUS POINTPersonal Publishing - Use an iPad app as way to distribute sales content on a personal basis. Integrate an iPad sales platform into your closed loop marketing efforts to target sales prospects with unique content delivered directly to their device.

Imagine being able to marry the specificity of email marketing, the scale of web publishing, and the interactivity of an iPad app — delivered to someone’s device with analytics to track the whole exchange. That’s the future of your content marketing funnel.

Your competitors are still using laptops and spiral-bound handouts. Use technology to show that your company is forward thinking – and leverage the iPad’s feature set to express what makes your offering preferable

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FUNDING

Crowdfunding is an alternative method of raising finance for a business, project or idea, popularised by Kickstarter.

com in the United States. Unlike angel investment, in which one person typically takes a larger stake in a small business, with crowdfunding an entrepreneur can attract a ‘crowd’ of people – each of whom takes a small stake in a business idea, by contributing towards an online funding target. The ‘crowd’ is easier to gather. The colossal power of social networking websites has really been the catalyst that has made crowdfunding possible. You can spread your venture to your friends, followers and connections with ease. Crowdfunding for startups has finally arrived.

It is believed that, in many cases, this model is more successful than attempting to source the full investment required from a single individual or organisation. Furthermore, while some investors may be hesitant to invest in an unproven idea, crowdfunding provides an alternative way to source seed capital from a number of backers. The main benefit of crowdfunding is that it creates a strong network of support for the start-up. With the equity model in particular,

CROWDFUNDING – BOON FOR START-UPSCROWDFUNDING HAS EMERGED AS A POPULAR MODE OF RAISING FINANCE FOR ENTREPRENEURS

The ‘crowd’ is easier to gather. The colossal power of social networking websites has really been the catalyst that has made crowdfunding possible. You can spread your venture to your friends, followers and connections with ease.

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the investors are likely to become ambassadors for the brand – promoting it among their networks, tracking the progress and becoming returning customers themselves. They may also offer to lend a hand, for example by providing free legal advice or accountancy services.

If an entrepreneur promotes the investment bid successfully, crowdfunding can also provide a powerful platform to raise awareness of the start-up. It gives a newsworthy story to pitch to the media (which may attract further new business). If an entrepreneur reaches the target it also gives a clear message to potential clients, suppliers or future investors that you have the support of the public behind you. Furthermore, crowdfunding can provide a very fast way to raise cash – several start-ups have reached their target in just a few days – and there are normally no upfront fees, keeping the process simple.

Is crowdfunding right for my start-up? Crowdfunding works best for start-ups that have a story to tell – whether a personal reason for starting the business, a passionate vision for what it could become, or a social mission. People have to feel inspired to invest so you need to write a charismatic pitch to get potential investors’ pulses racing, or else display evidence of outstanding innovation. If you have a mundane or complicated concept which the public will struggle to connect to, crowdfunding may not be right for your start-up. However, any business can succeed with the right pitch – the key to crowdfunding success is: keep it simple.

What if someone copies my idea? There is always a risk of copyright infringement when you release your concept into a

public domain, such as the internet, before you launch. However, the chance of someone copying your idea shouldn’t be any higher through crowdfunding than in the period between launching and your business becoming well-known.

Also, because of the scope for crowdfunding to raise awareness of your business, if your idea is original it may actually gain a reputation as the first of its kind – deterring copy-cats. It is important to remember that the nature of a crowd is, not everybody will agree. Some people may think that your idea is flawed, which may further safeguard it from imitation.

What happens when I reach my crowdfunding target? As with most business deals, when your online target is reached there will be a short ‘cooling-off’ period. Investors will be asked to confirm their investment and those who can’t follow through may be given the option to withdraw their pledge. If you are offering equity, investors may be sent a certificate detailing their shareholding.

How involved will investors be in my business? If you are using a reward-based platform your commitment to your investors officially ends when their rewards are delivered. However, the more involved you keep them in your start-up, the more they will support and endorse your business as it progresses. You may wish to create a mailing list to send them newsletters or seasonal

discounts to maintain their interest. The same principle applies if you crowdfund through an equity-based model, although you may also want to include evidence that you are delivering on forecasted growth and meeting financial targets. In the latter case, you do have some level of responsibility to your investors, however you shouldn’t be concerned about interference with the day-to-day running of your start-up. Depending on how much equity you released, generally each investor will only hold a point of a percentage stake in your business.

The key to successful crowdfunding is understanding the commitment the process entails. Crowdfunding can provide a fantastic opportunity for small businesses, but it should not be entered into lightly and, to be successful, requires a careful strategy. Make sure you have the resource in place to promote your pitch daily, as well as take every phone call and answer every email from potential investors. You need to create and maintain momentum to meet your target.

Prior planning is crucial – how are you going to create a buzz around your business? Find out who your potential customers are and court them for several months before launching your pitch, finding out what kinds of rewards would entice them to invest. That way, when you launch the crowdfunding, peop le will be excited and you can get your business off to the best start.

As with most business deals, when your online target is reached there will be a short ‘cooling-off’ period. Investors will be asked to confirm their investment and those who can’t follow through may be given the option to withdraw their pledge.

If an entrepreneur promotes the investment bid successfully, crowdfunding can also provide a powerful platform to raise awareness of the start-up

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I believe that the government and the private sector should teach people how to do ‘fishing’ instead of giving them the ‘fish’. As an innovator and entrepreneur, I am always optimistic that my idea will see the light in the near future.

EMERGING TALENT

I graduated from Sultan Qaboos University in February, 2011. I’ve specialized in Chemistry and Petrochemicals. During my

university days, I was very much focused on applied science and knowledge and tried to link it to our life. I believed that innovation and entrepreneurship are the fundamental necessity for the economic growth of any nation! Innovation enables us to dig for new resources and develop existing products and services.

MY IDEAThere are around 8 million palm trees in the Sultanate occupying about 80 per cent of the agricultural land. About 160,000 tons of palm leaf waste is being generated annually. Unfortunately, most of this waste ends up being burnt and of course, burning causes huge environmental issues like emission of CO2 and other unwanted gases.

I’ve come up with an idea to solve this environmental issue and make it contribute to the economical growth of the nation. My idea is to convert this palm leaf waste into paper. Economically, converting all this waste into papermaking can meet around 50 per cent of the Sultanate’s demand for paper. It could be a very healthy number considering that the paper industry does not exist in the Sultanate due to the lack of one essential ingredient which is

the fibre for papermaking. Additionally, every year, the Sultanate spends around RO 80 million towards purchasing paper products which accounts for roughly 1 per cent of the country’s GDP. Additionally, the plastic bags we use are non-biodegradable materials. Most of them end up being thrown after use which has led to some ecological issues such as the death of some animals like turtles as these animals eat the plastic bags by mistake. One of the green solutions to solve this issue is to convert the usage of plastic bags by paper bags made from palm leaves which are biodegradable material.

Nowadays, the prices of paper products are increasing due to environmental reasons, as it is known that the paper products we use today are mainly produced from wood by cutting down trees. Trees are the lung of our planet. They breathe CO2 and give

us oxygen which we breathe. It is a totally reverse process. For this reason, the environmental tax to pulp and paper companies has been increased. So, I believe that shifting to other environmentally friendly sources for papermaking will hopefully help protect the environment and will enhance the economical growth of the country.

IMPLEMENTING THE IDEAThe biggest obstacle which most of the innovators face to turn their ideas or ambitions into reality is the kick-off! In other words, the financial support at an early stage is what most of the innovators seek to conduct their feasibility studies for implementing their promising ideas.

I think the public and private sectors should support the innovators as part of their CSR programmes. I believe that some of the organizations are already taking the initiative to support the innovators and entrepreneurs. In the coming years, hopefully the implementation of these ideas would provide jobs to the local people and thus strengthen the economy.

I believe that the government and the private sector should teach people how to do ‘fishing’ instead of giving them the ‘fish’. As an innovator and entrepreneur, I am always optimistic that my idea will see the light in the near future.

MUSTAFA BARAMI IS A YOUNG OMANI WHO IS SEEKING FUNDING TO GIVE COMMERCIAL SHAPE TO HIS INNOVATIVE AND ECO-FRIENDLY ENTREPRENEURIAL PROJECT. READ HIS STORY IN HIS OWN WORDS:

THE INNOVATOR