1954 -59

Major agreement signed with British to supress slave trade

Expulsion of Portuguese... and, except for brief period of Persian rule, Omani independence is secured

1930 1960

1957

1958

1951

1937

1932

1920

1915

Discovery of low-grade oil in isolated Dhofar region

Gwadar, last remaining Omani dependency on mainland Asia, is ceded to Pakistan

Renewed dispute between Imam of Oman and Sultan of Muscat over sovereignty of inner Oman precipitates British intervention... Sultan terminates 1920 treaty and voids office of Imam

Treaty of Sib grants Imam of Oman autonomous rule in the interior while recognising nominal sovereignty of the Sultan of Muscat... present-day Oman essentially becomes two nations

UK recognises Muscat and Oman as fully independent states... signs new Treaty of Friendship, Commerce, and Navigation

Oil prospecting begins... first concession agreement signed with Petroleum Concessions, a subsidiary of Iraq Petroleum Company

Said bin Taymur Al Bu Said succeeds his father as Sultan of Muscat and Oman

Sultan of Muscat faces rebellion by Ibadi sect residing in the interior

1910

1873

1650

t i m e l i n e

1981

2003

1985

19841970

1965

Southern boundary with Federation of South Arabia (present-day Yemen) defined by British as an “Administrative Line”

Sultan Qaboos bin Said Al Said assumes power. Country name changed to the Sultanate of Oman and steps to bring the nation into 20th century

Dhofar Liberation Front formed to liberate Dhofar. Guerilla rebellion ends in 1975

Discovery of oil in the interior near Fuhud ... production in 1967 by Petroleum Development Oman

Gulf Cooperation Council (GCC) founded with Oman as charter member

Agreement with US allows access to military facilities in emergencies

21 women candidates participate in Majlis al Shura elections

Oman becomes the first Arab country to appoint a woman to head an overseas Embassy. Khadija al Lawatia appointed as sultanate’s Ambassador to the Netherlands

His Majesty Sultan Qaboos made a personal donation of 1.5 million rials to 42,000 families on social security

Oman joins coalition forces to oust Iraq from Kuwait during Gulf war

Rapprochement with bordering South Yemen (present-day Yemen) ... agreement signed under GCC aegis

2000

2005

2010

1995

1964

1990 -91

16 Foreword

SEVENTIES20 Deserts shall bloom

24 Rivetting times

28 Traditional treasures

32 The foreign policy

36 Oman and the world

40 Sultan’s Armed Forces

2010ContentsThe foreign policy

32

Traditional treasures28

Rivetting times24

Deserts shall bloom20

EIGHTIES44 Business backing social causes

48 Apromisefulfilled

52 Desalination

56 Hail and hearty

60 Cultivatedfishing

62 Where legends become reality

Contents

Hail and hearty 56

Apromisefulfilled48

Cultivatedfishing60

Business backing social causes44

NINETIES66 A door opens

70 Burning the fuel

74 Beauty beckons

78 Time to soar

82 Privatising power

84 Meaningful difference

2010ContentsBeauty beckons

74

Meaningful difference84

Privatising power82

Burning the fuel70

MILLENNIUM92 Destination Duqm

96 Steady growth

100 Creating ripples

104 Marching ahead

108 Game point

112 Redefininghomes

116 Green Oman

120 Heal the earth

128 Power of giving

132 Desert rose

138 Royal gift

ContentsPower of giving

128

Green Oman116

Game point108

Creating ripples100

Foreword

In the name of God, the compassionate and the merciful. “My people, I will proceed as quickly as possible to transform your life into a prosperous one with a bright future. Every one of you must play his part towards this goal. Our country in the past was famous and strong. If we work in unity and cooperation we will regenerate that glorious past and we will take a respectable place in the world…” So began the reign of His Majesty Sultan Qaboos bin Said on 23 July 1970. Today as the country celebrates the 40th National Day, The Sultanate rewinds time and savours the milestones of each decade. Join us on our journey that starts from the pioneering falaj, the only source of water for agriculture before desalination plants became operational, to the charm of ancient trade routes. From the legend of a perfumery to the challenge of equipping every child with world-class education and every individual with modern health care. Our homage commemorates the single-minded dedication

of His Majesty as he led Oman from a closed economy to a vibrant and well-diversified nation. Today under his able guidance, the country soars in areas of tourism and real estate. It maintains its amazing biological diversity, promotes its heritage, harnesses alternative sources of energy and continuously focuses on sustainable growth. Let’s revel equally in the technology drive of the nation, the power of its youth and the event of the millennium – 2nd Asian Beach Games Muscat 2010. As you turn the pages of this book you will start to appreciate the skill and passion that has gone into the making of this nation, aptly called, ‘The Jewel of Arabia’.

The Sultanate embodies the design and feel that reflects Oman across four decades. You will find the design, layout, fonts and colours just as it was during those days.

Hope you have as much pleasure reading it, as we had putting it together for you.

Sands of time

ChairmanHatim al Taie

Editor-in-ChiefAbdullah al Taie

Published byDeenar Press & Publishing LLCPO Box 139, PC 102, Al Qurm Sultanate of OmanTel: +968 24696868 Fax: +968 24693569Email: info@deenarmedia.com

Printed atOman Stationeries and PrintersRusayl, Sultanate of Oman Copyright © 2010 Deenar Press & Publishing LLC

General ManagerRathish Ramachandran

Asst. General ManagerTerry Mathukutty

EditorSujata Sengupta

Assistant EditorJose Vincent

Editorial ConsultantHyesha Barrett

Senior DesignerShyniben Koyakkil

DesignerMuneeb Khan

Sales ManagersEmily Matthews

Mehri VatanparastSami Dalwai

credits

SeventiesDeserts shall bloom .................................... 22

Rivetting times ............................................ 26

Traditional treasures ................................. 30

Foreign policy ............................................ 34

Oman and the world .................................. 38

Sultan’s Armed Forces ............................... 42

Seventies20

AGRICULTURE

Deserts shall bloom

Oman has been an active crop cultivator in spite of its arid climate. The answer to this lies in the traditional irrigation system, the aflaj. The origins of this irrigation system may date back to 500 AD., but archaeological evidence suggests that irrigation systems existed in this extremely arid area as early as 2,500 BC. Aflaj is the plural of falaj which, in classical Arabic means to divide into shares and share equitably the scarce resources to ensure sustainability. This is the hallmark of the aflaj irrigation system. Using gravity, water is channelled from underground sources or springs to support agriculture and domestic use, often over many kilometres. Threatened by the lowering level of the underground water table, the aflaj represent an exceptionally well-

Deep aflaj shafts tapped ground water for irrigation of the arid regions of Oman. This tradition dates back to 500AD

21

The aflaj irrigation system

The aflaj revolutionised

the conditions for agriculture by

providing access to groundwater

preserved form of land use.

In ancient times, Omanis possessed technical knowledge of digging deep aflaj shafts to tap ground water and bring it to the surface through tunnels, before it was directed to the cultivated lands. The early settlers of Oman found in this irrigation system, which helped in building more organized communities, their aim for a permanent and stable water supply. The aflaj revolutionised the conditions for agriculture by providing access to groundwater.

The system plays an integral part in village life. It provides water for crops as well as for domestic use. Aflaj will remain the main irrigation water source despite the fluctuation in rainfall. It provides water to most of the northern Omani farms. Several challenges have threatened this inherited system such as labour immigration, modern water tankers, bottled and cooking water. While it is easier to manage modern electric water pumps and irrigation systems, there is the likelihood of salinity in falaj water due to the ecological soil deterioration of surroundings.

Today the aflaj irrigation system is a part of the UNESCO’s world heritage list. Following this tradition and improving it further, Oman is moving towards self sufficiency in the food crops production. The coastal Batinah plain is the most densely populated and heavily cultivated region of the country. Agriculture is

Seventies22

totally dependent on the aflaj irrigation system. High quality dates are the major product of the Batinah plain, while lime is grown in good quantity, then dried and exported. Mangoes, bananas, tomatoes, onions, aubergines and tobacco are grown for domestic consumption. The area under cultivation on the Batinah coast has increased greatly in the last quarter of a century. The introduction of the diesel machine pump replacing the donkey as a means of lifting water from wells has resulted in many more wells being sunk resulting in more water being drawn from the aquifers. This leads to overdrawing of water from the aquifers and the intrusion of salt water from the sea in the coastal regions. Salinity in the well-water increased to such an extent in some areas that cultivation of the land has become impossible. Urgent measures are being taken to bring this situation under control.

Dates are the major product of the cultivated areas in the interior, in addition to other fruits and vegetables. Altogether,

The aflaj system is a part of the UNESCO’s world heritage list today. The government is committed to follow this tradition and improve it further

23

35,000sqm of land are planted with date palms throughout the Sultanate, and 28,000 sqm with other crops, including 11,000 sqm planted with rotation crops. In the South, on the coastal plain around Salalah, coconut palms are grown in place of date palms, which are not suited to the local climate. Bananas, papaya, and other fruits thrive in quantity on the coastal plain. Cattle fodder is also grown, but there are plans to transfer fodder cultivation to the inland side of the coastal range, in view of increasing pressure on water resources on the coastal plain.

The Ministry provides every Omani farmer with a number of services which he is unable to undertake on his own, and which require high technical and other facilities. Spraying teams from the Ministry have been operating over large areas of date gardens against a damaging date palm grub. They have also been assisting farmers in protecting their fields with the use of general pesticides. The Ministry offers farmers ploughing services for nominal hire charges at its agricultural development centres. The Ministry subsidises the cost of agricultural mechanical equipment to encourage farmers to use it. Items covered include ploughs, reapers, binders, chemical sprayers, mechanical saws and small agricultural implements. Other subsidies cover chemical fertilisers, seeds, pesticides, fruit seedlings, plastic covers, cloches and compost. The government has also reduced unit prices of electricity and diesel used for farming and agricultural industry projects.

Water is channelled from underground

sources or springs to support agriculture

Farming thrives on the Batinah plains

Seventies24

Rivetting timesWhat began as camel trains has grown to today’s expansive distribution and logistics network. Khimjis share their history

Kanaksi Khimji in front of a picture taken when Gokaldas Khimji met His Majesty Sultan Qaboos bin Said on the 15th National Day in 1985

ECONOMY

25

The legendary tradition of exceeding expectations began over a century ago when Ramdas Thackersey set sail from the coastal town of Mandvi in Kutch, on India’s western coast. He was followed by his son Khimji Ramdas who sowed the seeds for a global enterprise.

In a reminiscing chat with us, Kanaksi Gokaldas Khimji and Pankaj Kanaksi Khimji traced the history of their trade links with the Sultanate of Oman.

Their forefathers, dhow merchants from Mandvi, landed in Sur in the mid 1800’s. As traders they brought grain, tea, spices and other commodities from India and took away dates, dry lime, frankincense from the sultanate. Muscat was then a very active and important port as trading ships used to anchor here as a stopover on their way to Aden and Zanzibar. These were

days before the launch of motorised navigational ships.

It was during the world wars that the Khimjis became the appointed suppliers for the entire base of the allied forces for provisions. This gave them an opportunity to earn revenue and strengthen themselves. “We were rewarded and recognised. We learnt the art of supply chain management and maritime shore support. We grew from strength to strength,” said Pankaj Khimji.

Recalling the life before the renaissance, Kanaksi Khimji said, “The pre-70’s were very different times. There was no electricity, no water. We went to wells to take bath and clean clothes. At least one lantern was a required to walk on the streets after sunset. It was a close knit community that lived in Muscat and Muttrah. The gates of Muscat closed at sundown.”

The first bank to be set up in Muscat was HSBC, the building constructed by the Khimji Ramdas (KR) group 60 years ago. Before that trading was either barter or through silver. Money exchange houses

Muscat was a very active and important port, anchoring ships enroute Aden and Zanzibar

The title of ‘Rai Sahab’ was awarded to the Khimjis by the British

His Majesty in his younger days and Gokaldas Khimji

Seventies26

were unheard of back then. The ‘Indian red rupee’ was used for a period followed by the Saidi rial. Bait al Falaj (Ruwi) was the first airport in Oman, which was built by the Khimjis. To match the growing needs of a nation in bloom, the new

airport came into existence in 1973.

For a company that is proud of its widespread distribution and modern logistics to the present day, the initial years had started with camel

trains. Camels were used to transport goods to the nearest port. It would take days or even weeks for the goods to reach the port cities of Sur and Muscat. The Khimjis acquired the Ford dealership in 1969. The Sultan ordered their first

A section of the Khimji family tree

27

car. During the 70s the size of the automotive market in Oman was 12 per year.

The Khimjis maintained cordial ties with people irrespective of society strata. This is one of the reasons that today they are intrinsically woven into the fabric of this nation.

“We stuck to our core business of trading and prospered with the Renaissance setting in, we were expanding as the country was growing economically, and as an organisation Khimjis struck roots across the country. New beginnings, new foundation-laying processes and new procedures were set and a government was put in place. This was a time to fly high on the merits of your acumen and hard work,” states Pankaj Khimji.

Established in 1870, Khimji Ramdas LLC (KR) is a leading corporate house in the Sultanate of Oman. KR represents over 100 leading global brands in a wide spectrum of business and services.

The group diversified its business in four strategic arenas: Consumer Products, Lifestyle, Infrastructure and Projects & Logistics

serving customers throughout the length and breadth of the country with zeal, enthusiasm and dynamism.

Kanaksi Khimji and his son Pankaj Khimji at their head office

Seventies28

HERITAGE

Traditional treasures

Rich and diverse, the traditional craft industry of Oman is among the most important cultural survivals in the Arabian Peninsula. Across the country, and for many centuries, Omanis have worked with the raw materials available within their local environment and those obtained through trade, to create objects of both functional utility and exquisite artistry.

The examination of traditional craft industries presents themes that link Oman directly with other cultures of the world. Such industries chart the course of human interaction and development, and whether utilitarian or artistic in their origin gives form to human aspirations and endeavours. Most importantly, these crafts provide a means of cultural expression, a

The legacy of art, folklore and craftsmanship of Oman is time tested and provides cultural expression to the nation today

The art of making traditional dhows is

being revived

29

A shop owner at the Muttrah souq with

traditional silver artefacts

Palm fronds are used for making vessels

to store dates. Also a traditional metal pot

source of pride and self confidence, that is crucial in developing countries and all nations in where the quality of human existence is under threat from industrial standardisation. Oman became a member of UNESCO in 1972, shortly after the accession of His Majesty Sultan Qaboos bin Said. Since that time, and in spite of a rate of development almost unprecedented in the modern world, Oman’s commitment to preserving both the tangible and intangible aspects of traditional heritage and culture has been resolute. It enjoys the distinction of having five registered World Heritage Sites: the fort and oasis at Bahla, the Arabian Oryx Sanctuary, the tower tombs at Bat and wadi al-Ayn, and the ancient frankincense trade route of southern Oman, including archaeological sites at Shisr, Khor Rori and Al-Balid, together with the unique natural habitat of wadi Daika which nurtures the groves of frankincense trees. In addition, cultural initiatives such as the Silk Road Project have highlighted the important position occupied by Oman in ancient trade networks.

To start with, the ubiquitous palm tree has provided more than dates for the natives. The leaves are used to make ‘mukhraf’(a bag for collecting dates), baskets and intricately designed shoulder bags called ‘murbah’. Oman has a wealth of approximately eight million palm trees of varying types. The leaves are stripped from the tree and used by skilled craftsmen to manufacture a host of household objects, such as ropes,

Seventies30

A potter at his craftbaskets, bird cages, pergolas, mats, fans and fishing cages.

Goats and sheep are not only considered a vital source of food in Oman, but also an important source of hair and wool. Wool is sheared from the sheep, cleaned, carded and spun to make threads which are used in their natural colours or dyed with natural dyes and then used to make tents, rugs, blankets and saddlebags, in a variety of designs. The mountain villages of Jebel al Akhdar are also famous for their colourful carpets woven from goat’s hair.

Oman’s silver industry is an ancient trade. Practised for many centuries throughout the sultanate, it has developed with time-honoured tradition into a highly complex and innovative skill. Centred primarily in Nizwa, this business is widespread and can be found in Muscat, Muttrah, Salalah, Ibri, Bahla, Rustaq and Sur. The national emblem of Oman is the Khanjar. With its unique design, ornate appearance and silver embellishments, the Khanjar is considered one of the most distinctive

Archaeological discoveries have revealed that potteries were active throughout Oman during the fourth millennium BC

31

silver artefacts of all. Silver jewellery has always been an important part of the traditional Omani attire. Necklaces, bracelets, ear rings, anklets, ear pendants, bangles and hair decorations are typical examples of this craft.

Archaeological discoveries have revealed that potteries were active throughout Oman during the fourth millennium BC Pottery styles were influenced by ancient civilisations like the Sumerian. Further down the timeline, the Omani industry saw its influence coming from the pottery of Samuraa’, Siraf and Yemen, where Islamic crafts flourished.

Bahla is known as the centre for pottery where you can still find potters at their wheels throwing clay pots, jugs, urns, incense burners, and decorative items which are then fired in kilns.

Wood carving is also popular in the coastal areas. One of the most obvious examples of these are the elaborate wooden doors of almost every domicile. The craft also lends itself to the design of chests, shelves and miniature DHOW REproductions.

The Omani Craft Heritage Documentation Project was initiated in 1996 by His Highness Seyyid Shihab bin Tariq Al Said, with the aim of assessing and documenting the different types of crafts in all parts of the country. Due to this project, we now have an archive of information and images pertaining to Oman’s craft traditions.

A traditional Kahwa dispenser

Antique shop at Muttrah souq

Seventies32

The foreign policyFor Oman, ties with other Arab states is of utmost importance. To appreciate its foreign policy is understanding skilled diplomacy

Geography has always played a crucial role in the making of Omani foreign policy, as Muscat competed with its immediate neighbours to exercise its influence in the Persian Gulf region.

For Oman, relations with other Arab peninsula states were of utmost importance, and historical ties coloured much of the current policies. In some ways this was inevitable because the relations between the Arabian tribes were always very fluid. Equally important were the key relationships that successive Omani rulers developed with Great Britain. Although not an outright colonial power, London enjoyed the influence of a colonial power and shaped Oman’s outlook

throughout the region. Internal dimensions that shaped Omani foreign policy, included the

size of the population, it’s growth rate, the country’s multi-racial composition, ethnic

His Majesty Sultan Qaboos bin Said and the Indian Prime Minister Dr. Manmohan Singh on the latter’s visit to Muscat

NATION bUILdING

33

and area divisions, religious differences, literacy and health levels. His Majesty successfully managed Omani public opinion, concentrating on what he perceived as the main ideological threat to the state and on what kind of country the sultanate ought to be. The Dhofar rebellion shaped His Majesty’s vision of Omani foreign policy.

Thus was formed the backbone of the foreign policy of Oman which worked on the principles of non-intervention in other countries’ affairs, respect for international law, and adherence to a non-aligned policy.

The vision was to make Oman a regional power, and towards that end His Majesty established direct diplomatic relations with Arab states and by gaining admittance to the League of Arab States (LAS) and the United Nations in 1971. The unique foreign policy of this country evolved through four

phases, from 1970 to 1994.

The first phase, 1970-1975, entailed building relations with the Arab and the larger world in an effort to mitigate Oman’s dependence on Britain. Legitimising the country’s independence and achieving internal unity by dealing with political unrest in the North was also part of the first phase.

The second phase, 1976-1980, brought more financial attention to domestic needs. To deal with internal issues, Oman asked for, and received, significant

financial assistance from several Gulf States. These ties did not prevent Oman’s independent show of public support for Egyptian President Sadat’s peace efforts with Israel, in 1977. Oman was one of only three Arab states not to break diplomatic relations with Cairo for recognising Israel. In 1979, when the Shah of Iran was deposed by the Ayatollah Khumayni, His Majesty Sultan Qaboos kept the established Omani-Iranian tie in place. Simultaneously, he tried to prevent possible aggression by proposing a USD100mn protection

His Majesty the Sultan in dialougue with King Abdullah of Jordan

London enjoyed the influence of a colonial power and shaped Oman’s outlook throughout the region

Seventies34

plan for the Straits of Hormuz.

The third phase, 1981-1985, saw war between the two largest regional states, Iran and Iraq, continuing. That conflict and tensions in other areas finally led to the culmination of His Majesty’s long-time efforts to help form the Gulf Cooperation Council (GCC), which brought the six conservative Gulf countries together in what was the Arabian Peninsula’s first jointly provided security effort. While participating in all regional security activities as part of the GCC, Oman took no side in the Iran-Iraq War, managing to retain all regional relationships and its security

ties with the West. In the last phase, His Majesty was recognised as the regional figure, who could be turned to with confidence on security issues. After Iraq invaded Kuwait in 1990, Omani

forces participated in the UN liberation effort, and Oman granted the United States access to prepositioned supplies and facilities in Oman via the Facilities Access Agreement.

His Majesty Sultan Qaboos welcomes US Secretary of Defence Robert M. Gates at the Bait al Barakah Palace in Muscat, Oman, April 5, 2008

While participating in all regional security activities as part of the GCC, Oman took no side in the Iran-Iraq War

35

Seventies36

Oman and the worldOman’s strategic position on the ancient trade route has endowed it with a varied history of economic fortune

Historical sources show that over a thousand years ago, sailors travelled the seas between Oman and China. By the middle of the 9th century there was an established trade route between Muscat and trading ports in the Far East. Independent first-hand sources give a reasonably clear picture of this route. Vessels would set off from Muscat, Sohar, Qalhaat or Sur in Oman, crossing the Gulf of Oman and the Arabian Sea, to reach India. From India, passage would be made to modern-day Sri Lanka and then across the Bay of Bengal to the Strait of Malacca. Merchant ships would then sail between the Malay Peninsula and the island of Sumatra before trading

in Singapore or heading north towards Vietnam. Arab merchants would either seek

supplies in Singapore or trade goods there. Those who sought contact with mainland China,

Muscat was an active trading port throughout history

NATION bUILdING

37

however, continued through the South China Sea, before sailing towards Canton, stopping only at the Paracel Islands for food and water.

In the aftermath of the Kuwait War and the dramatic fall in the price of crude oil in the world markets, the strategic importance of the Straits of Hormuz remained intact and the vital role of the Sultanate of Oman in ensuring its security, unchanged. However, Oman’s proximity to the Straits of Hormuz was among the significant factors in the country’s renaissance. The internal economy took a turn in the late 1980s, when sweeping economic reforms were introduced by His Majesty to safeguard the assets of the country. An effort was made during the mid 1980s to liberalise key investment regulations.

After two decades of state building (1970-1990), during

which the Persian Gulf was ensnared in the East-West conflict, Oman entered the last decade of the 20th century identifying with its past and without neglecting the intrinsic need to face future challenges.

When Maqbool Ali Sultan, Minister of commerce and industry, signed the WTO membership protocol on October 10, 2000, the Sultanate of Oman officially ‘arrived’ in the eyes of the international commercial

community. For the Omani economy, keen on moving away from its hydrocarbon dependency, this membership holds the key to future growth strategy.

However, the coveted membership came with a price. Trading practices had to be restructured, with a WTO-approved tariff system in place and subsidies and licenses phased out. Oman agreed to liberalise the services sector.

India is among the fore-runners in the countries that share very impressive trading ties with the sultanate. The trade relations between India and Oman have grown by leaps and bounds and touched USD two billion last year despite the global reversionary phase. Giving it yet another fillip is the India-Oman Joint Investment Fund (IOJIF) which is taking its final shape and will soon be signed. Infrastructure, tourism, health, telecom and real estate are the key areas which are being exploited through trade ties between the two countries.

Trade routes were established between Oman and China by the middle of 9th century

The internal economy turned around in the late 1980s, when sweeping economic reforms were introduced

Seventies38

Strengthening servicesOman has transformed itself from a country with limited infrastructure to a thriving nation built on a strong economy

In spite of numerous challenges Oman remains one of the most economically and politically stable nations in the region. With less abundant resources than some of its neighbours, the sultanate has been pursuing a policy of economic diversification for years. The state, unleashed an expansionary budget in the face of the global downturn, a support mechanism that has kept the economy humming through difficult times and should leave Oman well-placed to meet the coming upswing in global demand across numerous sectors as the recession fades.

Since His Majesty Sultan Qaboos bin Said’s ascension to the throne in 1970, the country has

been pursuing a programme of political and economic reform, which continues until today. Oman

is the oldest state in the Gulf Cooperation Council (GCC) and also one of the most stable in

Ruwi, late seventies

NATION bUILdING

39

the region. Since 2009, three women are serving in the Council of Ministers and the state has had female ambassadors to the US and the Netherlands – a first in the Arab world. Foreign policy looks both East and West. It maintains strong ties with the US and the UK while also employing moderate and engaging policies throughout the Middle East region. In recent years it has sought to stabilise relations with Iran, with whom it contains the Straits of Hormuz – a transport corridor for nearly 40 per cent of the world’s oil.

The measured and deliberate growth pace over the last few years has helped set the sultanate on a path of sustainable expansion over a long-term period. The economy was spared the worst effects of the global financial crisis, with Oman’s banks remaining well capitalised, its stock market relatively stable and with no direct exposure to toxic assets.

Oman is diversifying away from hydrocarbons and building its non-oil sector under the long-term economic road map, ‘Vision 2020’. Sectors such as industry, tourism and education continue to gain ground while the state remains committed to its ‘omanisation’ goal to increase the proportion of nationals in skilled-labour positions. The country has made concrete moves to develop trade links with Asia, including

investments in three major ports on the Indian Ocean and numerous free trade agreements within the region.

Trade links with Asian powerhouses, India and China in particular are on the rise – China now buys about 40 per cent of Oman’s oil. The sultanate also occupies a central position in terms of integrated efforts to boost trade and commerce among the GCC member states.

The MBD area, late seventies

The growth over the last few years has set the sultanate on a path of sustainable expansion

Seventies40

Sultan’s Armed Forces

Oman has a military history which dates back to the 7th century. At that time, the forces of the Azd tribe were powerful enough to help Prophet Mohammed’s companion Abu Bakr in the War of Al Mortadeen. It is said that even before that, the Azd tribe, led by Malek bin Faham, was able to defeat a Persian force which controlled Oman at that time.

The Sultan’s army was re-organised in the 1950s under a British soldier, Colonel David Smiley. The Batinah Force was renamed the Northern Frontier Regiment and the remnants of the Muscat and Oman Field Force merged into the new Oman Regiment. In 1964, a rebellion began in the southern province of Dhofar. The initial aims

of the rebellion were greater autonomy for the region, and an improvement in its living standards. The Sultan’s forces

in Dhofar then consisted of local “jibali” tribes. Only in 1965 were two battalions of the SAF sent to the province. Most

Military parade in the late seventies in Oman

SECURITY

Oman’s military history dates back to the 7th century. It became a powerful force during the reign of Said bin Sultan

Through the ‘hearts and minds’ campaign in dhofar, an amnesty was declared for surrendered rebels

41

units of the Omani Army at this time lacked strength, and were badly equipped. The Air Force consisted of a few piston-engined transport and ground-attack aircrafts. The navy possessed a single dhow.

His Majesty Sultan Qaboos bin Said had attended the Royal Military Academy of Sandhurst and served as an officer in the British Army. His outlook was far wider and more liberal. He instituted major social and military reforms throughout the country. As part of a ‘hearts and minds’ campaign to win over the population of Dhofar, an amnesty was declared for surrendered rebels. The former rebels formed firqat irregular units, were trained and assisted by teams from the Special Air Service.

Meanwhile the regular units of the Army expanded and re-equipped. More Omanis were recruited. Large numbers of

officers and instructors seconded from the British Army and Royal Marines were attached to units. Two new infantry units were raised in 1971, the Frontier Force in Dhofar, and the Jebel Regiment in the interior of Oman.

In the years following the end of the Dhofar rebellion, the SAF continued to expand and modernise. In the mid 1980s the Sultan of Oman’s Air Force (SOAF) operated SEPECAT Jaguar and C-130 Hercules aircraft from an in-country air base at Thumrait.

In 1990, the Iraqi Army unexpectedly invaded Kuwait,

also a member of the GCC. A large international coalition was formed to discourage further Iraqi aggression. Oman’s role in the first Gulf war was mainly that of a base area and staging post for the large United States Air Force and British Royal Air Force contingents deployed to the Persian Gulf. Some transport aircrafts and tanker aircraft flew out of Masirah, but the Sultan of Oman’s Air Force did not directly participate in the attacks on Iraq. An Omani battalion served in Saudi Arabia as part of the GCC contribution to the ground war to liberate Kuwait.

A navy ship of Oman

In the mid 1980s SOAF operated SEPECAT Jaguar and C-130 Hercules aircraft from an in-country air base at Thumrait

46 Businessbackingdocialcauses

50 Wherelegendsbecomereality

52 Apromisefulfilled

56 Desalination

60 Hailandhearty

64 Cultivatedfishing

44 EIGHTIES

The first financial institution in the sultanate to establish an independent department for Corporate Social Responsibility, BankMuscat’s CSR policy reflects its concern and care for various segments of society. Established in 1982 as Oman Overseas Trust Bank and now with 125 branches across the nation, BankMuscat is working towards realising its dream of one million satisfied customers by the end of the year. The bank, in fact, considers its human resources as the most critical asset.

"BankMuscat has focused on building relationships with its key customers and this has helped the bank to successfully position itself as a top-notch financial services provider," says AbdulRazak Ali Issa, Chief Executive, BankMuscat. On the Corporate Banking side, BankMuscat has been providing world class

expertise to corporate houses in Oman for over a quarter of a century. It caters to the domestic and overseas needs of small businesses, medium and large establishments by offering a wide range of corporate finance products ranging from traditional working capital finance to project finance.

Al Mazyona, a unique scheme run by the bank for the past 16 years, has not only inculcated a strong savings habit in the customers but also has rewarded loyal customers for the trust reposed in the bank. The bank offers one of the best health insurance schemes in the sultanate. Provided by Bancassurance, the Hayatuna scheme offers Family Protection which helps a family in the eventuality of an unfortunate event leading to the death or disability of the main breadwinner. The scheme also includes a Medical Care Plan which offers up OMR10,000 compensation

BusinessBackingSocialCauses

AbdulRazak Ali Issa, CEO, Bank Muscat

EConomy

BankMuscat aims at achieving a correlation between development and environment. The purpose is to protect ecosystems and natural resources

45

against seven critical diseases for only OMR7 a month.

This is the first bank across the Middle East region to adopt the Equator Principles (EPs). The EPs are a voluntary set of international standards for determining, assessing and managing social and environmental risk in project financing. They have become the de facto standard for banks and investors on how to assess major development projects around the world.

The Bank has a vision of according equal consideration to environmental, social and economic issues when pursuing efforts aimed at achieving development and ameliorating the living standards of all segments of society. It aims at achieving a correlation between development and environment for the purpose of protecting ecosystems and managing natural resources.

The most people friendly bank of the sultanate seeks to ensure its social responsibility through: • Working closely with voluntary BankMuscat head office in CBD

BankMuscat has become the first and only corporate entity from Oman to be listed in ‘The Forbes Global 2000’

46 EIGHTIES

organisations and government bodies in support of their activities that contribute to social development. • Recognising that its operations must aid sustainable development, it strives to ensure that the direct and indirect impact of its activities on the environment and society is beneficial.• ‘BankMuscat Hearts’ comprises 25 young employees from across different departments of the bank. It is responsible for raising funds and supporting various social causes. The movement’s objective is to find ways to ‘give back to society’ - poor

families, the needy, the unwell and the environment, through means of physical and financial contributions. It conducts charity and social activities throughout the year.• BankMuscat supports all major environmental campaigns. The bank joined hands with the Environment Society of Oman (ESO) in the ‘Say No to Plastic Bags’ aimed at the conservation of Oman’s environment. The campaign was promoted by a series of road shows, competitions and marketing initiatives in Sur, Sohar, Nizwa, Ibra, Salalah and Muscat. The

Bank is also working with ESO on a ‘mooring buoy campaign’ aimed at protecting coral wealth and the sultanate’s rich and unique marine biodiversity.• BankMuscat has joined an elite group of 160 financial institutions who work closely with the United Nations Environment Programme Finance Initiative to develop and promote linkages between the environment, sustainability and financial performance.

The Bank recognises that the social

responsibility of the private sector is not merely participation in charitable works and organisation of voluntary campaigns, but it encompasses responsibility towards social development which is considered the prime mover of national economy.

BankMuscat has achieved a rare distinction, becoming the first and only corporate entity from Oman to be listed in ‘The Forbes Global 2000’ featuring the biggest and most powerful listed companies of the world.

Members from BankMuscat and Omantel, the team of ‘Together for Happier Eid’ Campaign

‘BankMuscat Hearts’ comprising 25 young employees is responsible for raising funds and supporting various social causes

47

48 EIGHTIES

EDuCAtion

Apromisefulfilled

The realisation of a promise announced by His Majesty Sultan Qaboos bin Said during the 10th anniversary of Oman’s National Day in 1980 stands before us today as The Sultan Qaboos University (SQU).

Set in a valley beneath the stark panorama of the nearby mountains, the University is a tasteful array of arches and courtyards. Constructed in white and pink sandstone, it reflects traditional Omani architecture. SQU was constructed on an axis in the valley with one end aligned towards Mecca.

The campus portrays the rich heritage of Oman, incorporating all the

efficiencies of modern day life. The result is an educational and living environment which is both functional and attractive. It was in this peaceful backdrop that Dr Fahim al Marhubi, Dean, College of Commerce and Economics (CCE), spoke about the various aspects of the Sultan Qaboos University (SQU) as a whole and the CCE in particular.

The official inauguration of the CCE took place in October 1993 under the patronage of His Majesty Sultan Qaboos bin Said during the fourth graduation ceremony. This college like all the other colleges of SQU provides the best education, resources and facilities to students, all free of charge.

Dr Fahim al Marhubi, Dean, College of Commerce and Economics (CCE), Sultan Qaboos University

The University that changed the education scene in Oman holds

a proud place in the entire Middle East region

49

The top students from schools all over Oman are enrolled in the under-graduate programmes based on their secondary school performance

College of Commerce and Economics, SQU

50 EIGHTIES

The admission to the University depends solely on the applicant’s secondary school performance. The top students from schools all over Oman are enrolled in the under-graduate programmes. Students are provided with course books, research facilities, food and accommodation for their tenure, with the government bearing the entire cost. The CCE student enrollments have increased from 122 in September 1993 to 1,844

in June 2009. The faculty and staff numbers have also grown from seven to 121.The CCE offers eight fields of specialisation at the under-graduate level. This include economics, finance, management, marketing, accounting, operations management, business statistics and management information system. In the first two years of the credit course, the students are exposed to all the functional areas of a business. In the beginning of the

third year the student majors in one of the eight fields offered. At present the only post graduation programme available for students in the CCE is the MBA. This was launched in 2004 and 100 students are currently enrolled in the programme. This is open to all graduates of the CCE, graduates of other colleges of SQU, and bachelor degree holders from other recognised universities; provided all admission requirements are met.

All educational institutions in Oman have to be accredited by the Oman Accreditation Council. The CCE is shortly to follow through with international accreditation.

High-quality faculty is the key element of any reputable university. Dr Marhubi, with immense pride, explained the internal recruitment system of SQU. Each year the best of the graduating students with an academic inclination are given

A view of the mosque within the campus Graduation ceremony in SQU

To honour the services and expertise of the unmatched faculty, SQU offers sabbaticals, to travel and enrich their knowledge

51

scholarships to pursue a masters programme from a list of highly recommended colleges all over the world, following this they are given scholarships to complete their doctorates. These students then return to the university and join as teachers. SQU is extremely proud of the ex-students who are a part of the faculty today. This recruitment is a long-term process, yet as it started from the initial days of the SQU, the benefits are already

noticeable today. The University also recruits staff from all over the world, proceeding a rigorous process of interviews by a panel and presentations by the applying candidates. To honour the services and expertise of the unmatched faculty, SQU offers benefits like sabbaticals, wherein the faculty is given paid leave of up to a year to travel and enrich their knowledge.

The college works in close tandem

with the industry at all levels. The public as well as the private sector are invited to give feedbacks on their recruited students from the college. Workshops and career fairs are also held within the campus. The fore-runners of the industry are often invited to give lectures to the students.

The wealth of knowledge is complimented with their hands on experience and sense of

direction. The summer internship programme is also a step in this direction. Throughout the tenure of the programme, the student is monitored by the industry as well as by the University.

A university that offers the best education free of charge amidst an abundant and copious environment can have only one goal: continuous enhancement in the quality of knowledge imparted.

Students working in a laboratory Students participating in a workshop

To honour the services and expertise of the unmatched faculty, SQU offers sabbaticals, to travel and enrich their knowledge

52 EIGHTIES

Oman utilises the distillation process and the Reverse Osmosis membrane technology for the production of potable water

Desalination

The word desalination usually triggers thoughts of oil-rich, water-poor countries in the Middle East. Oman is located in an arid region with limited groundwater resources. Thus to meet the growing demand for potable water, large and small brackish and seawater desalination units have been installed in different parts of the country. Oman has an average annual rainfall ranging from a few millimetres in the Najd to 300mm over the northern mountains. By contrast, the evaporation rate varies from 1,600mm to over 2,000mm. This means that water loss in the sultanate exceeds water gain.

However, domestic consumption is estimated to account for just five per cent of all water demand in Oman. Industrial demand for water is also less than five per cent. The greatest water consumer in Oman, therefore, is agriculture. It uses over 90 per cent of renewable freshwater resources.

The Middle East Desalination Research Center (MEDCR), based in Muscat has invested heavily in regional training by conducting

short courses and sponsoring students and professors involved in research projects. Training locals to operate desalination

plants is another future challenge. A minimum of 50,000 additional technical experts from various professional levels would be

The desalination plant in Al Ghubra

inDuStry

53

The MEDCR based in Muscat has invested in regional training by conducting short courses and sponsoring students and professors involved in research

needed to service the desalination industry in the region.

All power generation and water desalination companies in Oman are set to be privatised. This is the result of an agreement that includes the privatisation of Oman’s electricity and related water sector restructuring process. Oman’s Minister of National Economy and Deputy Chairman of Energy Resource Council, Ahmad Bin Abdulnabi Macki, along with other senior

officials signed the AI Rusail/Birka II project with the preferred bidder, the Suez Tractebel, Abu Dhabi-based Mubadala, Development and National Trading Company consortium.

Over the past ten years there has been a huge increase in the number of water desalination plants in Oman, utilising distillation process and the reversed osmosis membrane technology for the production of potable water. Oman has experienced both: water

desalination from sea water intake and brackish water. The first major water project to be undertaken was the construction of a desalination plant in Al Ghubra, which went into production in 1976, with a capacity of 19 million litres per day. In 1978 natural gas was brought by pipeline from the Yibal oilfield to become the main source of energy for the power station and desalination plant. Today the largest plants at Al Gubrah and Sur are on their way to a total production

Over the past ten years there has been a major increase in desalination plants all over the Middle East region

54 EIGHTIES

capacity of 159mn and 6mn litres per day, respectively.

The Duqm Desalination Plant is a part of power generation and water desalination facilities. It is

being developed by the Rural Areas Electricity Company (RAEC) at Duqm to help support Duqm’s development in the short term. The proposed reverse osmosis desalination plant will be built adjacent to the power plant in

Duqm. The project also includes a seawater intake system to supply water to the desalination plant. Construction is currently in progress. Sohar has a 586 MW power plant and a 6,250 cu.m/hr water desalination plant which began in 2004 and is now fully operational.

The Barka II desalination plant, located 100km north of Muscat has a 678MW power plant and a 5,000 cu.m/hr seawater desalination plant using reverse osmosis technology supplied by Degremont. The first phase (410 MW) is now operational.

PAEW is finalising steps to begin the setting up of the world’s biggest desalination unit in al Ghubra area to produce potable water in the governorate of Muscat. The project is a set of 48 containers and tanks pumps that will use sea water to produce fresh drinking water. The unit is expected to begin production by mid-July 2010 and will continue to develop over three years. It will begin with a daily capacity of 22.7mn litres and will cost OMR8mn, while operation and maintenance will work out to nearly OMR16mn. For the implementation of the project, PAEW had signed a contract with Septech, a major global operator in the field of desalination.

PAEW is finalising steps to begin the setting up of the world’s biggest desalination unit to produce potable water in al Ghubra area

The desalination plant in Sur

55

56 EIGHTIES

Perhaps no country in the world has achieved so much in so little time in terms of healthcare as Oman has in the last three decades

HailandHearty

The Sultanate of Oman in present times is one of the world’s advanced nations when it comes to healthcare. The Five-year Development Plan of the sultanate, which began in 1976, follows a results-based strategy and highlights the priorities of the country’s public health policy.

However, before 1970 Oman, a country larger than Britain with a population of just over one million, had only eight kilometres of paved road and less than 100 doctors. Dr Dan Bosch, who had worked for 34 years in the sultanate, was an American missionary in a 75-bed maternity hospital, one of the two existing hospitals back then. When His Majesty Sultan Qaboos bin Said took over and set about constructing a national health service, Dr Bosch and the mission handed over the hospital and staff to the government.

In 1970 the government spent OMR534,282 on its health service and by the end of the year it had 13 doctors and 12 hospital beds. The 1986 figures show the sultanate with 45 hospitals and three maternity centres with

1096 doctors and 3348 hospital beds.

One of the first hospitals to be set up was

the Royal hospital. Established in December 1987, it is a large, tertiary, acute-care hospital, which provides state-of-the-art services in the

Dr. Dan Bosch in front of the American missionary hospital

HEAltH

57

Working on the principle that ‘prevention is better than cure,’ the health care provided by the sultanate today includes education as well as treatment

The Royal Hospital

58 EIGHTIES

specialties and sub-specialties of medicine, surgery, pediatrics, obstetric & gynecology, oncology and laboratory medicine. It is an important milestone in the development of health services in the sultanate.

Located in the al Ghubra area of Muscat, the Royal Hospital is organisationally, an autonomous Directorate General reporting to the Minister of Health. It is the apex referral centre for Ministry of Health institutions. As a teaching hospital it

provides excellent teaching facilities to Omani under-graduate and post-graduate medical and nursing trainees, and to students of allied healthcare disciplines with a view of attaining Omanisation and local self-sufficiency in the medical field.

Around 500 outpatients referred from the various regional hospitals in the interior and from health care facilities in the capital area attend the various specialist clinics of the hospital each day. Additionally, about 150 ambulatory emergency walk-ins report at the adult and pediatric emergency departments.

Working on the principle that ‘prevention is better than cure,’ the health care provided by the sultanate today includes education as well as treatment. A special initiative on non-communicable disease prevention and control designed to fight current and potential future problems such as obesity, cardiovascular disorders and diabetes is in place alongside programmes to provide physiotherapy rehabilitation services as an essential component of the country’s overall health care package.

The Ministry of Health pursues an e-Health strategy with information shared across the various institutions concerned

Dr. Wells at his clinic

59

The Ministry of Health regularly monitors the incidence of all communicable diseases through its epidemiological and disease surveillance

directorate, and contributes to the safeguarding of national and global health by responding with alacrity whenever an international health

emergency like the Bird flu or H1N1 arises.

The sultanate operates extensive child immunisation programmes. A baby-friendly hospital initiative promotes breast-feeding, proper nutrition, advocacy for birth spacing and other community-based projects. Free medical attention is available to Omani citizens throughout their lives.

The Ministry of Health pursues an e-Health strategy, according to which Information Technology and Communication will be used comprehensively in all health care institutions, with information shared across the various institutions concerned. The Ministry plans to evolve a National e-Health Records Repository.

There are 58 hospitals in Oman today and 897 medical centres, dispensaries and clinics. Only nine of the hospitals are of the private sector. The World Health Organisation’s Annual Report 2000 ranked Oman as the first among 191 countries for its level of health attainment and 8th with regards to its health system performance. This is indeed an unbelievable jump from the sultanate’s health scenario of the eighties.

Oman Medical College

60 EIGHTIES

More than 150 species of fish and crustaceans have been identified in Omani waters. Some 35 types of grouper are found in the waters of the suItanate

Cultivatedfishing

Until 1970, the economy of the country was almost entirely based on agriculture and fishing. In the case of fishing, no facilities existed for freezing, storage or transporting the fish, so fishermen’s catches were confined to the local communities for their own consumption.

The sultanate, with a 1,700km coastline extending from the Musandam peninsula in the North to the border with the Yemen Republic in the South, holds extremely rich fishing grounds. Fisheries are a valuable adjunct to the oil-based economy. Great efforts have been made since 1970 by the government to develop the industry and to exploit its potential. Restrictions have been imposed in recent years on the fishing of certain species, such as lobsters, abalone and kingfish, which has seen a noticeable decline in stocks.

In 1980, the Oman National Fisheries Company (ONFC) was formed with government assistance to purchase, distribute and export

the catches made by local fishermen. It also handled the fish caught by concessionaires. In 1987, the Oman Fisheries Company (OFC)

was established, into which the ONFC merged. More than 150 species of fish and crustaceans have been identified in Omani waters, ranging

The Marine Science and Fisheries Centre, Sidab, Muscat

FiSHEriES

61

Restrictions have been imposed in recent years on the fishing of certain species, such as lobsters, abalone and kingfish

from sardines to tuna. 35 types of grouper, or hammour as they are known in Oman, are found in the waters of the suItanate. Schools of sardines netted off the Batinah Coast have long been used as animal feed and fertiliser. Large numbers of lobsters are now caught off Masirah Islands and the coast of Dhofar during the open season.

The total quantity of fish and crustaceans rose sharply through the 1980s, reaching a peak in 1988, after which there was a decline. Research carried out by the Marine and Science Fisheries Centre has indicated that over-fishing has played a major role in this decline. As a result, fishing for lobsters and abalone is now restricted to two months a year: December and January.

The Marine Science and Fisheries Centre was set up in 1986 near Sidab, on the coast near Muscat. This research facility has the consultative support of UNESCO and FAO. In cooperation with the Sultan Qaboos University its role includes studies of different stocks of resources and the future development and management of the vast range of marine species found in Omani waters. Particular emphasis on the conservation of ecosystems and endangered species, including turtles, is also part of the research programme.

The Fisheries Centre has shown that over-fishing is not the sole reason for the decline in fish stocks. It is strongly suspected that pollution, which now widely affects the oceans

plays a big part in this, particularly through damaging the mangrove ecosystem, which provides a breeding ground for many types of fish and crustaceans.

The fish market in Muttrah

62 EIGHTIES

Wherelegendsbecomereality

Fascinating, legendary, mythical and real. The ingredients that go into the making of celebrated perfumes are gathered, designed, assembled, packaged and bottled simultaneously in six countries across the world. This is Amouage for you.

Started in the late 1980s at the desire of His Majesty, Sultan Qaboos bin Said to have a luxury brand of perfume that reflects the traditions as well as the history of the country, Amouage today is an international brand of perfume based in the Sultanate of Oman.

Owned by the Omani Royal family, Sayyid Hamad bin Hamoud al

Busaidi, restored the great Arabian art of perfumery. Renowned for creating some of the most finely crafted and exotic fragrance in the world, Amouage has restored artistry to perfumery. The company sources the globe for unique and the highest quality ingredients.

The perfumes are created by internationally recognised perfumers in Grasse, in the south of France. While most mass-market perfumes are not much more than ‘scented water,’ Amouage’s products are derived from nature and developed using the world’s best ‘noses,’ as they are known in the trade. “We are giving value back to the customer with our high quality David Crickmore, CEO, Amouage

inDuStry

The making of a perfume is never done in a hurry, but rather is

the culmination of years of patience and hard work

63

products,” said Mr. David Crickmore, CEO, Amouage. According to him, in Oman, the land of frankincense, there are several legends and royal stories to bolster the nation’s tradition for perfume and fragrance. One legend is that gold, frankincense and myrrh offered to child Jesus by the three kings came from Oman. And keeping with the tradition, Amouage

launched the tagline ‘Gift of Kings’ four years ago.

The making of a perfume is never done in a hurry, but it is rather the culmination of years of patience and hard work. Amouage today is an ambassador for the country as the product’s finery speaks a lot about the nation to other people.

“Amouage is doing extremely well in Europe,” said Mr. Crickmore. They plan to develop retail outlets across the globe. “Our goal is to open an Amouage shop in all key opinion-making cities in the world like Paris, New York, London, Milan, Munich, Tokyo, Hong Kong and so on,” he said about Amouage’s future plans. In fact, the first international mono-

brand store is now open in Dubai. ‘Waves of emotion’ is the Arabic meaning of Amouage, and today this wave is part of a lifestyle sought after by only the sophisticated international consumer. The various collections of Amouage extend from fine perfumes to home fragrances, bath and body products, leather goods and travel accessories.

The first Amouage showroom in Oman

Amouage’s products are derived from nature and developed using the world’s best ‘noses,’ as they are known in the trade

A door opens66

Burning the fuel70

Beauty beckons74

Time to soar78

Privatising power82

Meaningful difference84

66

A door opensThanks to focused government planning, the sultanate’s economy is right on track towards growth and diversification. A major boost in this area came from the signing of the Free Trade Agreement, between Oman and the USA

Eng. Nisreen Ahmed Jafar , Director General , Investment Promotion

ECONOMY

67

Faris Ben Nasser Al Farsi , Acting Director General , Export Development

The Omani Centre for Investment Promotion and Export Development (OCIPED) is a government establishment, formed by a Royal Decree of the Sultanate of Oman,

on 26 June 1996. The vision of OCIPED is ‘Creation of wealth through investment promotion and export’, and is derived from the Oman’s economic vision which states that the “basis of national economy is justice and the principles of free economy”.

Mr. Faris Ben Nasser Al Farsi, Acting Director-General of Export Development and Eng. Nisreen Ahmed Jafar, Director-General of Investment Promotion elaborated on the role of OCIPED, in taking Oman forward, as the country diversifies from an oil dependent economy.

The export performance has been in line with the strategy adopted by OCIPED for the period 2006–2010. Twenty-nine thrust sector products for focused promotional efforts have been identified. These products together accounted for 70% of the total Omani origin non-oil exports.

OCIPED is actively involved in helping the Omani exporter by providing trade and market information through trade maps and product maps. A comprehensive source of tariffs and market access measures are made available to a registered exporter. A new endeavour by OCIPED in this area, is the launch of ‘The Match Maker’ service. Through this, an Omani exporter of thrust products receives mail with addresses of 10 importers, daily. Participation in international exhibitions and trade missions help in building bonds between the exporter and prospective importers. Workshops and seminars on international trade are a regular feature. The exporter is free to

68

make the maximum use of the centre’s representative network abroad. There are regular visits to exporting units to discuss ways to enhance their exports through specialised exhibitions, promoted by the centre.

The Directorate-General of export development is confident that in spite of the global credit crunch, the value of non-oil Omani origin exports will meet the target set for 2010, as per the export strategy prepared by OCIPED. In Oman there are 6 industrial estates and 3 free zones. These are located in the regions of Muscat, Salalah, Sohar, Sur, Buraimi and Nizwa. They are equipped with complete state-of-the-art infrastructure facilities. In the south there are two free zones: Salalah free zone and Al Mazunah free zone.

The investment division of OCIPED organises events for potential foreign investors in Oman and also

provide them assistance for the necessary government approvals. Ten priority sectors and twenty-six targets along with the main stake holder for each sector have been identified based on various parameters. Apart from promotion and facilitation, a major role is played in policy advocacy. The major FDI flow was from USA, UK, UAE, India, Kuwait, Qatar, Bahrain and the Netherlands.

The US-Oman Free Trade Agreement (FTA) came into force on January 1, 2009. The FTA contains trade facilitation measures for increasing the movement of goods and the provision of services between Oman and the US. For Omani businesses, this means that they will have full access to the USD 14 trillion U.S.A market, the world’s largest. Overall, the FTA will improve the ease of doing business and provide a fair and level playing field for local and international investors.

0 200 400 600 800 1000 1200

2010

*20

09

*ProvisionalSource: Directorate General of Customs - Royal Oman Police, Ministry of Oil & Gas, Oman Refinery Company and Oman LNG.

Note: The numbers may not add up due to rounding.

1068.9769.6

569.1 113.3 161.9

155.1 144.2

575.2

737.1

844.4

Merchandise Exports and Imports (Million Rials)

Imports

Exports:

Oil & Gas

Non-Oil

Re-exports

On the investment side, there are many reasons for international companies to consider Oman as an investment destination. These include:

• Strategic location with easy access to the Gulf, Europe, Asian and African markets

• Excellent infrastructure• Young and energetic labour force• Political and economic stability• A stable currency with full convertibility• Free repatriation of capital and profits• No personal income tax• Free Trade and open market policy• Exemption from custom duty on import of plant

and equipment, and on raw materials for certain sectors

• Fully serviced land in industrial estates• Corporate tax holiday of up to 10 years• Export credit insurance through the export

guarantee and financing agency• 70% Automatic Foreign ownership and 100%

ownership for specific projects• Foreign ownership of land in designated areas

70

Burning the fuel

Oman’s growth into a successful oil and gas producing nation had humble beginnings. A geological survey of the country in 1925 found no conclusive evidence of oil. 12

years later, however, when geologists began intensively searching for oil in neighbouring Saudi Arabia, Oman’s Sultan Said bin Taimur granted a 75-year concession to the Iraq Petroleum Company (IPC). Pausing only for the Second World War, exploration for oil was under way in Oman. With little or no infrastructure to assist survival in Oman’s hostile desert environment, the early explorationists confronted hard times. Problems were compounded by political unrest.

The Sumail Gap, a vital route to the interior from Muscat, was often made impassable by the hostilities between warring tribes. As a consequence, the logistics of supplies was problematic. When the IPC finally decided to drill its first well in Fahud in early 1956,

supplies had to be transported from Duqm in the south of the country; across more than 300km of some of Oman’s most inhospitable terrain. The hardships endured came to an impasse as the well was dry. Finally, they struck oil at Yibal in 1962, and from these meager beginnings, an oil-producing nation was born. When PDO’s gas-exploration campaign in the early 1990s made it clear how bountiful the country’s gas fields were, the government decided to establish a completely new industry, the export of liquefied natural gas (LNG).

In 1996, PDO concluded an agreement with the government to develop the central Oman gas fields in order to supply gas to an LNG plant in Qalhat, near Sur. To fulfill its agreement, the company had to drill wells, hook them up to a new gas-processing plant at Saih Rawl, and then transport the processed gas via a 352km pipeline to Qalhat. Furthermore, PDO would then be responsible

INDUSTRY With little infrastructure to aid survival in Oman’s hostile desert environment, the early explorationists confronted hard times

71

An Oil field in Oman

for guaranteeing the delivery of gas for 25 years. This upstream LNG project, costing USD1.2bn, is the single biggest project in PDO’s history. And it was executed as planned.

The Saih Rawl Central Processing Plant and the gas pipeline from Saih Rawl to Qalhat were dedicated to the nation in November 1999. The first downstream LNG cargo was shipped to Korea in April 2000, and His Majesty the Sultan officially opened the LNG plant six months later.

Heeding the warnings of the mid 1980s that Oman was probably a ‘mature oil province’, PDO directed attention to optimising production from the existing fields. This focus proved invaluable to the company as it experimented several enhanced oil recovery (EOR) techniques, including steam injection and polymer-thickened water-floods.

Experimentation with the latest technologies then

72

An oil rig in the desert led directly to many of the techniques that PDO is implementing today. But, it was not until after the turn of the millennium, that PDO recognised that EOR would have to be applied to much more than pilot projects. There is no doubt that PDO’s major capital investments over the next several years will be its EOR projects, namely the Harweel miscible-gas injection project and the steam-injection project, at Qarn Alam.

The Harweel EOR project is expected to deliver around 100,000bpd once it comes on stream, whereas the Qarn Alam EOR project is expected to produce volumes in the order of 20,000bpd. By 2010, some 20 per cent of PDO’s production will come from these two EOR projects.

In 1937 the BP-led Iraq Petroleum Company came to Oman and established Petroleum Development (Oman & Dhofar) Ltd.

73

74

Beauty beckons

The tourism sector has been one of the important components of ‘Oman 2020’, a visionary plan for Oman’s economic growth, that was launched and adopted as the long-term development strategy for the country. Deriving enormous strength from the diversity of its rich heritage, Oman has the necessary elements to succeed in today’s competitive travel and tourism market.

Diverse in its natural beauty, the landscape of this country changes in front of us. Oman has it all, the serene ocean, the stunning beaches, the rugged and bronzed mountains gently leading to the copper dunes of the mid-land desert. The country also has an abundant marine and wild-life. The hospitality of the locals makes Oman a cherished location for every tourist. The heritage of the land is evidently preserved, and this sets apart the country from the other nations of this region.

Major steps were initiated by the government in the mid nineties to expand adventure tourism, cultural tourism and eco-tourism. Oman has a coastline of 1700km and

has some of the cleanest, most spectacular beaches. The mountainous landscape and gushing wadis in Oman provide guaranteed prospect for adventure tourism. Over 500 forts, castles and historical monuments in the country are gradually being developed by the Ministry of Tourism. Eco-tourism has the prospect of being developed to promote ecological, educational and scientific activities surrounding the exploration on Oman’s wetlands and creeks. On the verge of becoming a tourist destination, Oman started easing visa restrictions from the early nineties. The government’s tourism-oriented policy initially started in 1987, allowing in only business-travellers and high-end package tourists. In 2000, this was extended to nationals from 63 countries being granted the possibility of acquiring visas at any border post, as well as both in the Seeb and Salalah airports. This includes not only nationals from GCC countries, but also expatriates living in these countries. The easing of visa regulations, coupled with other developments, stimulated inbound

TOURISM Oman started easing visa restrictions from the early nineties. The government’s tourism-oriented policy initially started in 1987

75

The Sultan Qaboos Grand Mosque, a must see for all tourists

76

Over 500 historical monuments are being revived by the government

tourism. Earlier, in 2006, the Omani government issued a decree under which all nationalities, including non-GCC nationals, were able to own freehold property in Oman. Although ownership rights are restricted to certain tourism-designated areas, this has spurred demand for new projects, such as The Blue City and The Wave; as the decree entitles non-Omani buyers and their immediate relatives to special residence visas. In an effort to broaden the reach of Oman’s travel and tourism industry, the Ministry of Tourism launched ‘Get Going’ – Oman’s official guide and atlas – in August 2009. The 308-page guide includes 101 maps and covers 985 destinations in Oman. During 2009, Oman participated in the Geneva Tourism Festival as a guest of honour, a position highly sought after by many countries across the world. The Omani Ministry of Tourism participated in the festival and included 24 tents showcasing the sultanate’s travel and tourism potential. While there was previously a rather cautious approach to tourism in the sultanate, the pace of change is now picking up.

The number of low cost carriers (LCC) currently operating in the country, is expected to increase in the coming years

77

Dhofar during the Khareef season

The Middle East’s low-cost carrier (LCC) market is currently under-penetrated compared with other regions, which have at least 15 per cent LCC market penetration. There is hence a huge opportunity for development of the Middle East LCC market. In Oman, airport slots are available to LCCs, both in Muscat and Salalah. A number of LCCs currently operate in the two airports, including Air Arabia and Air India Express, and the number of LCCs operating in Oman’s airports is expected to increase in the coming years. This is a decisive fillip to the traveller headed to Oman. The recession and the H1N1epidemic have taken their toll on Oman’s travel and tourism industry, but there are positive developments on the horizon, with the country hosting the Asian Beach Games – scheduled for December 2010 in Muscat – which will add sports tourism to Oman’s tourism offerings. Secondly, with a large number of projects under way, such as the Blue City; the Omani government is working hard to put in place the necessary infrastructure to enhance travel and

tourism, in terms of flights, promotional campaigns, integrated tourism complexes and an adequate accommodation supply.

The national carrier of the Sultanate of Oman is pursuing an ambitious expansion programme in line with the country’s dynamic growth plans, where huge infrastructure development projects are under way. Oman Air has already launched its new business and first class products that are superior to those in its competitive set - a strategy that adheres to the Oman Ministry of Tourism’s

objective, to attract the high-end leisure market.

The sultanate’s leading travel and tourism show – Oman Travel Mart (OTM) – is backed by Oman Air, as the main sponsor. Showcasing a wide range of unique products and services, OTM took place from 17th to 19th May, 2010 at the Oman International Exhibition Centre. Providing tangible quality service, Oman Air is continuously working closely with the Ministry of Tourism and hotels in Muscat, to put together special packages and marketing campaigns, to boost traffic during off-peak times.

78

time to soAr

The economy of Oman enjoys a freedom that is rare in this part of the globe. A stable government and low taxes make the country a desirable location for entrepreneurial ventures

Abdullah al Jufaili, , Director, Shell Intilaaqah

ENTREpRENEURShIp

79

Abdul Wahid al Farsi, former director during 1998-2003

Hard working with a strong motivation to succeed. A willingness to take personal responsibility, a desire to set moderate achievement goals and take calculated risks.

These are possibly the strongest traits of an entrepreneur. However, just traits are not enough, there is the need to build a definite skill set to become successful in the intangible arena of entrepreneurship. This was the objective of Intilaaqah – a shell livewire programme.

Launched in 1995 during the celebration of the sultanate’s 25th National Day, Intilaaqah has helped over 7,200 young people in Oman, to explore the option of starting a business, and has helped over 4,200 businesses start up. Recognising the fact that start-up businesses go through many obstacles, the programme addresses these through providing necessary training and counselling the business owners.

We met the current and the previous directors of this ingenous programme, to find out more about the journey

of Intilaaqah in Oman. Apart from demonstrating the Shell commitment to sustainable development, the Intilaaqah programme helps to alleviate the growing disparity between the job-seeking Omani youth and the opportunities available in the job market.

Abdul Wahid al Farsi, who headed the organisation for five years from 1998, spoke to us on the initial obstacles faced by the organisation. The recognition of the programme by government agencies and would be partners was a major challenge. Something like this had no takers to begin with. As the director,

he mapped out a campaign to raise awareness about Intilaaqah throughout the sultanate. The success of the programme had to come from an ongoing partnership with government agencies and the private sector. To build this was a feat in itself. The initial years were spent roping in funding partners, as well as gaining recognition from the government. By the time he left, Intilaaqah had spread widely across the country. There were eager candidates willing to enroll, and funding partners were showing interest as well. In spite of having moved on to different responsibilities, Abdul Wahid continues to watch the growth of the programme, and

80

feels that Intilaaqah has taken long strides to improve in terms of services, scope and spread.

Starting a business can be one of the most difficult decisions. It is quite challenging at the early stages.

Entrepreneurs work longer hours and use all their skills and knowledge to achieve the maximum returns. However, dedication and commitment towards the business, pays off generously. The business environment has changed over the years in Oman. ‘Ruwad Amal’,

Arabic for entrepreneurship, is not an ambiguous term anymore. Many locals, thanks to the Intilaaqah programme, are embarking on the entrepreneurship bandwagon.

Mohammed al Balushi took over the baton of the Intilaaqah programme in July, 2003. At that point the programme was focusing mainly on school graduates and college dropouts. A new branch was initiated within the programme, at this point, to focus on university graduates, and how they could be trained to be future entrepreneurs. The funding institutes were showing keen interest by now. The commercial banks also stepped in with funds, that targeted the small business categories. It was now up to Intilaaqah to take advantage of all the parameters that were opening up, and use them to their full potential. Another major initiative that was taken during this time, was to imbibe the rudimentaries of entrepreneurship in the high school curriculum, of all public schools in Oman. This

Mohammed al Balushi, former director during 2003-2007

81

was a step towards making entrepreneurship a viable career option, to students from an early age.

Of all the initiatives Mohammed al Balushi is proud of the ‘Intilaaqah Best Entrepreneur Awards’. Previously running on a limited scale, the idea was expanded further during this time. A specific time was fixed for it every year and the awards became a sought after event on the calendar. This, in turn, gave wide publicity to the programme. There was tremendous support from media and all the six newspapers that were running in the country at that time. This was one of the very few programmes that received media sponsorship, from all the six daily newspapers.

The cash prize awarded was raised to OMR5000. Anybody who fits into the criteria of being a young citizen of the country with a small or medium enterprise, could be nominated for the awards. This helped expand the Intilaaqah programme. The participants of these awards programme have now joined Intilaaqah, for further counselling and guidance. This led to a different training programme. The past trainees were often the panel members, for judging the winner.

Headed currently by the dynamic Abdullah al Jufaili, the programme statistics bring forth the heartening fact that entrepreneurship is neither age nor gender-based. Some of the trainees of the Intilaaqah

programme are experienced professionals, who decided to take an early retirement, to concentrate on building their business. “Entrepreneurship is no longer a terminology. We are witnessing the spread of an entrepreneurial culture across sectors and regions. It is clearly visible that entrepreneurs are not restricted to age, gender or educational background. On top of all this, in the early stages, the majority of the entrepreneurs were in the retail market and now we see many in the service industry. A few others have started industrial-based businesses,” says Abdullah.

The development of various sectors in Oman brought about opportunities for start-up businesses as well. The government, represented by the Directorate General for the Development of Small and Medium Enterprises at the Ministry of Commerce & Industry, is playing a major role coordinating the role of these various initiatives.

Salma Noor al Balushi, Business Development Manager, Abdullah al Jufaili and Salim al Maskiry, Training Manager (left to right)

The success of the Intilaaqah programme comes from an ongoing partnership with government

agencies and the private sector

82

Privatising power

Oman is a pioneer of private power in the GCC, having seen the first Independent Power Project (IPP) in the sultanate begin generating electricity in 1996. Fuelled by

private industrial activity, demand for electricity in Oman has been growing at six to seven per cent per annum in recent years.

In the year 1996, the Manah project was implemented as the first experiment of privatisation in the electricity sector in Oman and was developed as BOOT project (Build, Operate, Own and Transfer of ownership to the government). A private sector company, United Power Company, was awarded the concession for 20 years. Its production capacity was 90MW and increased to 280MW in 2000, after an expansion project was initiated in 1999.

The successful implementation of the expansion of Manah power project was a drive for privatisation of other enterprises in this sector. In March 2001, a

concession was granted to the private sector to invest in the Salalah Electricity System.

The project involved the establishment of a gas turbine station producing 240MW of power, development, operation and maintenance of the existing station and the installation of power transmission and distribution cables. The Salalah Power project is considered the first power project to be assigned to the private sector in the Middle East. Oman Power and Water Procurement Company (OMWP), in coordination with electricity distribution companies and government agencies, prepare annual statements which assess the need of electricity in the sultanate. Based on the last figures issued in December 2009, it is expected that there will be an increase in the demand of electricity in the main network, from 3031MW in 2008 to 5348MW in 2010, representing an average annual increase of 8.5 per cent.

All the power plants and factories in the sultanate

INDUSTRY Privatisation began in the 90s with the power and desalination industry. The Manah project was the first experiment in this regard

83

The Manah Power Project was a drive towards privatisation

are gas-operated, and coal has not been used in this country with the exception of few power plants using diesel.

However, in case sufficient quantities of gas is not available in the future, coal is one of the alternatives that may be used in addition to solar and wind energy. There are new techniques to use coal and reduce carbon emissions, which is the major drawback of this fuel. Oman has identified these technologies and is ready to go ahead with them. The use of coal for procuring power is the least expensive of the other options.

The Duqm Independent Water and Power Project (IWPP) will be the first coal-fired power plant in the country, and one of the first in the Gulf region. The 1,000MW scheme is key to realising the government’s goal of developing Duqm into a major industrial and maritime hub, anchored by a world-scale port and dry dock complex.

84

meAningful difference

Despite the group’s diverse business lines, the company’s leadership identified 12 Renaissance values that shaped the overall corporate identity, and guided employees to conduct business from a moral high ground

Stephen Thomas, CEO, Renaissance Services

CORpORATE CARE

85

Corporate Social Responsibility (CSR), in a straightforward definition, is a company’s commitment towards sustainable development. Meaningful CSR programmes

aim at enhancing the standard of living in a manner that serves the economy by such services as encouraging local employment, protecting the environment and creating opportunities for citizens to run sustainable and positive causes. Successful CSR programmes work closely with local communities, to ensure that the objectives target the real needs.

Whilst interviewing Mr. Stephen Thomas, CEO of Renaissance Services, he explains that the company’s concentration on local development since its start in 1996 has been integral to its success. He discusses the Renaissance philosophy behind its CSR programme.

When Renaissance Services was listed as a public company on Oman’s Muscat Security Market in 1996, the company employed nearly 2,000 people and was managing flourishing businesses in multiple service industries. Despite the group’s diverse business lines, the company’s leadership identified 12 Renaissance Values that shaped the overall corporate identity and guided employees to conduct business from a moral high ground. Renaissance’s vision was to be recognised as a world-class, internationally competitive service company. To achieve its goal, the company trained

its businesses to put community development into practice, in order to reach sustainable profits.

“We have a simple CSR philosophy that says we must not reap where we have not sown,” says Thomas. Having started out as the group’s General Manager, Stephen Thomas took over as CEO in 1998 and has seen the company grow from 2,000 to 11,000 employees, and into the multinational company it had set out to be. “The group has always been involved in CSR initiatives, even before we began formally allocating 1% of the previous year’s profit to the corporate CSR programme,” explains Thomas. “It is important to understand that CSR is part of our raison d’être. CSR is part of who we are and is one of the reasons why we are in business.”

As a matter of business-as-usual practice, Renaissance businesses focus on providing employment opportunities for local workforces, and mitigating any environmental impact of their services. TISCO, the contract catering and facilities management company of the group has been recognised by the Ministry of Manpower as among the top Omani employers, for the past five years. Renaissance’s corporate culture has instilled a firm health, safety and environmental code to ensure protecting its people and the environment. Reducing waste and the energy the company uses is also regarded as part of the company’s CSR programme.

Thomas goes on to explain that the social aspect of the company’s CSR programme focuses on five key areas: helping those less fortunate than ourselves to lead fulfilling lives; providing opportunity to help people improve themselves and make a valid contribution to society; improving the economic well-being and quality of life in local communities where Renaissance operates; supporting good causes in the community; and

Renaissance’s corporate culture has instilled a firm HSE code to

ensure the protecting its people and the environment

86

Nabil al Busaidy at the summit of Mount Vinson and a teacher at the Association of Early Intervention for Children with Disabilities (right).

showcasing local talent and helping people fulfill their potential. In recent times, as Renaissance’s corporate CSR programme has become more formalised, the company has taken steps to transparently report its corporate initiatives, within its annual report and on the company website.

The company sponsored sport institutions and individuals such as the Oman Sail and Nabil al Busaidy. On January 17th, this year, Nabil al Busaidy became the first Omani adventurer to summit Mount Vinson, as he planted the Omani flag atop one of the seven highest summits on the seven continents. Nabil was recently honoured by the sultanate’s Ministry of Sports for his successful 2009 expedition, to become

the first Arab and the first Omani to reach the magnetic North Pole.

“Our programmes are not just about giving cash, we want to make a meaningful and positive difference in people’s lives. We do look for opportunities to support Omanis who are making a standout contribution and

Among the initiatives that Renaissance supported in 2009, educational institutions received the largest share of donations, totalling OMR168,450

87

show that Oman can go anywhere, whether it’s to the top of the world on a mountain, or on a vessel going round the oceans of the world, or to the head of board rooms. Showing that Omanis can compete with the best in the world and supporting that, makes sense to our programme”.

The annual BizPro Awards, sponsored by the Renaissance CSR programme, is a social investment initiative by the National Training Institute, that aspires to motivate Omani youth, encourage social development and add direction for the national economy.

Renaissance Services has presented OMR250,000 over

three years to the Association of Early Intervention for Children with Disabilities, as part of its pledge to support 45 Omani teachers enrolled in the diploma programme, in a special education at Nizwa University. One of the objectives of the Association is to encourage the enrollment of these children in regular schools, with proper support, and to minimize their disabilities.

Looking ahead, Thomas says that raising environmental awareness and backing sustainable initiatives on the nation’s green agenda, is an important focus area. He adds that Renaissance’s CSR programme will continue to feature sustainable programmes and reach into local communities.

The winner of the Young Achiever’s Award with

Stephen Thomas and other dignitaries.

88

89

millennium 90

DE

STIN

AT

ION

DU

QM

92

STE

AD

Y G

RO

WT

H96

CR

EA

TIN

G R

IPP

LE

S10

0

104

MA

RC

HIN

G A

HE

AD

GA

ME

PO

INT

108

112

RE

DE

FIN

ING

HO

ME

S

GR

EE

N O

MA

N11

6

120

HE

AL

TH

E E

AR

TH

132

DE

SER

T R

OSE

138

RO

YA

L G

IFT

128

PO

WE

R O

F G

IVIN

G

91

millennium 92

Destination DuqmnAtion Building

93

A port and dry dock facility, a refineryandpetrochemicalcomplex, a modern airport, power and desalination

infrastructure, various tourism projects and a residential town capable of accommodating a population of 64,000 is set, in a span of the next twenty years. All of this is set to happen in the sleepyfishingvillageofalDuqm.SoonalDuqm is expected to eclipse Sohar, the sultanate’s industrial hub, and be a force to reckon with in the entire Gulf region.

Al Duqm is a component of the vision 2020 plan mooted for the economic development of the sultanate. The Duqm port is expected to become a major player in the region where a dry dock is under construction, which is expected to commence by the end of this year. A multi-billion dollar plan for the development of the hinterland area of Oman, the port will include a crude oil export terminal and a strategic storage facility. Duqm, situated about 700km South of Muscat, is expected to be the maritime gateway to serve as an ambitious industrial and commercial hub, due to its proximity to the busy regional

sea-lanes traversing Oman’s coast. The sultanate and the Belgian port of Antwerp have signed an agreement, to set up a joint port management company for Duqm port development.

Parsons International, a US-based engineeringconsultancyfirm,isadvisingthe government on the design and construction of al Duqm airport. Parsons is drawing up the design and assisting in preparing tender documents, cost estimation, as well as in selecting a contractor for building the airport. The airport will be built on international standards with a terminal capacity to handle 500,000 passengers annually. A runway length of 4km has been designed for this airport.

The Duqm master plan proposes to have an oil/condensate export terminal and to feature an integrated 200,000-300,000 bpdrefiningandpetrochemicalcomplex.This will be a joint venture between Abu Dhabi state’s international petroleum Investment Company (IPIC) and the government of Oman. The feasibility study is being revisited and will be tendered soon. IPIC and the Ministry of Oil and

A multi-billion dollar plan for the development of the hinterland area of Oman, the Duqm port will include a crude oil export terminal and a strategic storage facility

millennium 94

the Duqm airport will be built with a terminal capacity to handle 500,000 passengers annually. A runway length of 4km has been designed for this airport

Gas (MOG) are considering a revised plan dividing the project into phases. The feasibility study will enable the partners to decide on capacities, depending on market prospects for the coming decade. Oman Oil Corporation (OOC) will be IPIC’s partner and their shares will be decided before the end of this year. Construction is scheduled to begin in 2011.

Authorities overseeing the development of Duqm on the Wusta coast, are laying down the groundwork for the

establishment of a model city, that promises to be the pride of Oman’s urban landscape in the future. Boasting world-class amenities and all the trappings of a modern urban setting, the proposed city of Duqm will be an integral part of the ‘Duqm Development Plan’. A number of well-known local and international consultingfirms,havesignalledinterestin the contract.

In master-planning the urban design of the city, the selected consultant will

Dry dock pump pipe

95

Ariel view of the Duqm Port

take into account, among other things, urban growth patterns and development densities,trafficandtransportpatternsand provisions, projected population and demographic growth and provision of public amenities. Other issues to be addressed by the master plan include: projected employment opportunities linked to the various industries planned, provision of community support services such as health and education, public parks and recreation areas, water resources, and wastewater and energy resource management. A detailed transportation, road network, infrastructure and utilities plan will also be incorporated in the scheme. The port city will eventually be linked to the proposed national rail network, running north to Muscat and south to Salalah.

issues to be addressed by the master plan include projected employment opportunities, linked to the various industries planned at Duqm

millennium 96

steAdy growth

economy

Oman’s government put in place variousinitiativesthathavedefinedthe economic growth of the country.

Commenting on these initiatives, Munir Makki, President and Managing Director of the Financial Corporation Co SAOG (Fincorp), said that these initiatives have focused on gradually transforming the economy to reduce its dependence on oil resources,

increase private sector participation, and enhance the role of nationals in its work force.

Vision 2020 aims to reduce the GDP oil share to 9 per cent by 2020. It intends to raise the gas industry’s contribution to the GDP to 10 per cent by 2020, from 1.5 per cent in 1995.

Mr Makki observed that a sound infrastructure is essential to achieve

Munir MakkiManaging Director & President, FINCORP

the government has established industrial estates close to its shipping ports to help leverage the strategic location in the Gulf

Oman’s 25 year economic vision (Vision 2020) completed its half way mark in 2008 with some significant achievements. Fincorp analyses the economy

}

97

the long-term growth objectives. He explained, “The government plans to build four new airports in the country, in Adam, Duqm, Sohar and Ras al Hadd, while upgrading airport infrastructure in Muscat and Salalah. The country also opened its firstpassengercruiseterminalatPortSultan Qaboos in Muscat, which will help increasetouristinflowintothecountry.The proximity of Muscat and Sohar sea

ports to Dubai should see a strong growth in sea-borne trade. Oman already has in place free trade agreements within the GCC as well as with the United States, Japan, China and India.”

‘Vision 2020’ – On track Oman’s 25 year economic plan (Vision 2020) completed its half journey in 2008 withsomesignificantachievements

registered since it started. “With regard to the contribution of various sectors to the GDP, the transport, communications, public services and a few private services have already surpassed their targets. Other sectors such as construction, trade, tourism,bankingandfinancialservicesare close to achieving their intended targets,” observed Mr Makki.

The Fincorp team

millennium 98

Muscat Securities Market (MSM) Mr Makki said that the MSM is a very well regulated and transparent stock exchange. He had the following suggestions for further improvement.

● Though the MSM has been successful increatingsignificantwealthforinvestorssince its inception, it is only a beginning and a lot needs to be achieved. More family businesses should be encouraged

tolisttheirfirmsonMSM.Toencouragemore investor participation, trading costs should be made lower. Currently, brokerage commission is somewhat high and poor liquidity in some counters makes trading unattractive.

● Besides attracting new IPOs and reducing commissions, liquidity can improve from allowing short sales and limited margin trading. An introduction of

the government has established industrial estates close to its ports, to help leverage the strategic location in the Gulf, to act as an international transport hub

The MSM building

99

the flagship mutual fund, Fincorp Al Amal Fund, has consistently outperformed the mSm 30 index, delivering superior risk-adjusted returns since its inception

limited margin trading may alleviate the problem of illiquidity in a down trending market, as investors will be able to buy stocks at attractive levels with a lower cash requirement. Maximum margin should be restricted to 25 per cent of the value of an investor’s portfolio in order to prevent excess speculation in stocks in bullish conditions

● Liquidity in select stocks with sound fundamentals can be improved by creating market makers; in a manner that is suitable for the MSM trading environment besides launching Exchange Traded Funds (ETF) on the benchmark MSM 30 index and sector indices.

● The brokerage industry in Oman is already highly fragmented, which may prove to be detrimental to the industry’s long-term growth prospects. The Capital Market Authority (CMA) therefore should refrain from issuing new brokerage licenses until a time that average daily market turnover crosses a certain level, say OMR20mn.

● Index futures and options may be introduced on the MSM, that will give protection to investors on the downside through shorting futures, buying ‘put options’ while they can participate on the upside by buying ‘call options’.

Fincorp – The journey so farFincorp’s journey from the year of its establishment, in 2003, as a result of the merger of three companies, has been a steady progress. Starting with modest operations primarily focusing on Brokerage, Asset Management and Corporate Finance and Advisory, Fincorp has over the years grown to position itself as one of Oman’s leading Investment Banking Companies. With its recent foray into Private Equity, Fincorp now offers services covering the entire gambit of investment banking.

Fincorp launched an Oman-centric ‘Fincorp Oman Private Equity Fund’ in 2009. Aiming to raise about USD75mn, the fund focuses on investing primarily in businesses with a strong growth potential, thereby contributing to Oman’s economic growth, and encouraging Omani entrepreneurship.

Itsflagshipmutualfund,FincorpAlAmalFund, has consistently outperformed the MSM 30 index delivering superior risk-adjusted returns since its inception. “The journey for Fincorp from its inception to a leading organisation in its domain brings with it a host of challenges, and has been an educative and exhilarating experience for all those associated with it,” concluded Mr Makki.

millennium 100

reAl estAte

Creating ripples

101

Situated on 6km of natural coastline, The Wave Muscat promises the discerning investor an authentic experience in

Arabian style. An incomparable residential opportunity, combining world-class amenities, The Wave offers its residents, tourists and the local community a lifestyle worth the cost. The Wave, in fact, hasredefinedmodernlivingwithintheSultanate of Oman.

With the modern Arabian award for architecture on its cap, The Wave’s project is setting new standards in the region in terms of quality, design, construction andfinish.Itoffersmorethan4,000newhomes, a 400-berth marina, a Greg Norman signature Links golf course, three premier 5-star hotels, including Kempinski and the Fairmont chain of hotels, together with retail, leisure and dining opportunities. Granted its status by a Royal Decree, it is thefirstprojectinthesultanatetoofferfreehold status to all buyers.

Under the sultanate’s new foreign ownership laws, foreigners are entitled to own freehold properties on The Wave Muscat project area, thus offering a wide

variety of highly attractive investment options to both Omanis and non-Omanis. The residential quarters include exciting townhouses, villas with garden, waterfront or beach views, and apartments situated around the vibrant Al Marsa village.

World-class architects of the Triad Oman Consultants International and ER International have translated traditional Omani designs and a way of life into a modern, practical and enlightening master plan for a new village community. Villas, townhouses and apartments are set in carefully landscaped grounds featuring wide tree-lined boulevards, green parks, inlandpools,andwaterwaysfilledwithgently moving seawater. Planting has been carried out with water conservation in mind.

One of the best features of The Wave, is its Greg Norman Links golf course which is expected to lure golf fans from across the Arab region and the world, to and set new benchmarks in terms of design and quality for golf enthusiasts. The Wave recently appointed Southern Golf Oman as the Golf Course Construction Contractor who will construct the 18-hole PGA standard course, the par 3 academy

Despite the challenging global market conditions, the Wave, muscat, continues with its record breaking sales. We discover the reasons

millennium 102

courseandthefloodlitdrivingrange.Theaim is to open the initial 9-hole golf facility, including Academy Facility, by the end of 2010, with the full 18-holes following in 2011. The Golf Clubhouse is currently under design, and will be constructed to open once the full 18-holes course is operational.

The Wave’s Al Marsa Village is the heart of the project, offering a 400-berth marina, shops, cafés and a chance to socialise and unwind. The atmosphere and vibrancy brought on day and night, can bring residents and visitors together against a backdrop of spectacular ocean vistas.

A tribute to Oman’s rich maritime tradition and one of the project’s most prominent features, the village will enhance the area, attracting motorboats

and the type of yachts that have rarely been seen in Oman. It is poised to become the entertainment centre of this master-planned community with a wide range of retail facilities, offering al fresco dining and shopping, making it the most lively and vibrant atmosphere in Muscat.

ReflectingitscommitmenttoOman’senvironmentally conscious strategies, The Wave has conducted a comprehensive Environmental Impact Assessment,

detailing the project’s execution methodology and mitigation plans. Emphasis has been placed on integrating “green” initiatives to the design and development of an eco-friendly and sustainable community. This includes the development of a submerged protective reefandenergyefficientmodulesforthe construction structure. Adopting best practice principles in creating green spaces; innovative approaches to landscaping and sustainable techniques for

Villas at The Wave

103

recycling water to ensure minimal impact on the environment.

With the government’s support of the freehold ownership legislation, The Wave has drawn huge interest among potential buyers from Oman and the region. Despite the challenging global market conditions, The Wave achieved a new milestone with unprecedented sales during

its 7th property release in March. This year 60 per cent of the 160 properties on offerweresoldwithinthefirsttwodays.With this success, The Wave Muscat has become the only real estate developer to sell properties off-plan in the sultanate for a considerable time, which bears testimony to the strength of the project and the investorconfidenceitenjoys,bothlocallyand internationally.

emphasis has been placed on integrating “green” initiatives to the design and development of an eco-friendly and sustainable community

Aerial view of The Wave Muscat

millennium 104

The Sultanate of Oman is one of the most advanced countries in the Gulf region as far as women’s rights are concerned. The Omani

government has actively promoted female education with impressive results. Omani womenhavebeenworkinginvariousfieldsand actively participate in the national development process. They enjoy many political, social and economic rights. Womentodayholdhighprofilepostsinthegovernment and private sectors, and their contribution to the country’s development is indelible. However, the situation was drastically different four decades ago.

In 1970, there were no schools for girls

women

Marching aheadit is imperative that the focus lies on sustaining Omani women’s progress, by tapping into the latent potential of women across the country

Working with men in all sectors

105

in the country. It was estimated that during the mid-1970s only 5 per cent of the Omani girls in the age group of 6-11 years old were enrolled in school. As part of its modernisation drive, the government of Oman put special emphasis on the expansion of education, to both males and females. By the late 1980s, 87 per cent of the males and 81 per cent of females in the age group of 6-10 years old were enrolled in school. By the mid 1990s the percentage reached 94 per cent and 92 per cent among males and females, respectively.

In some cases, female enrollment in universities has exceeded that of males. In 2002, 54 per cent of the students enrolled at the Sultan Qaboos University were women. Though Oman was the last of the GCC countries to introduce universal education, its young women already are in the fore-front, both in achieving gender equality in the workplace, and also in

assuming full responsibility at all levels for running their country’s affairs.

The project, ‘Women’s Participation in National Development’, implemented within the National Community Development programme with UN assistance, has helped the nation by improving the quality of women’s life. With the introduction of basic training system, Omani women became aware of their social role and many of them volunteered their services to the community development programmes. In 2006, Omani women comprised 16 per

cent of the labour force.A Women’s Voluntary Work Coordination Committee helps to regulate the activities of the women’s associations and helps Omani women play a higher role in the country’s economic and social development programmes. Women’s Training Centres – some established by the government and some through local initiatives – have been set up to improve the productivity of Omani families, while helping preserve the country’s heritage through teaching traditional crafts and skills. There are four government centres as well as six non-government

Women miners

millennium 106

centres across the country. They help raise women’s general awareness about cultural, health and social issues, develop their productive skills, and enable them to makeprofitableuseoftheirleisuretime.

The Ministry of Social Affairs, Labour, and Occupational Training is responsible for women’s issues at the governmental level. The Ministry supports women’s affairs by funding and supporting the Omani Women’s Association (OWA). The OWA has 23 branches all over the country with a membership of 3,000 people. Typical OWA activities include sponsoring health or sociological lectures, kindergarten services, and handicraft training programmes.Therearealso50affiliatedgroups throughout the country that work to improve the status of women, and their contributions to society.

Women have the right to vote and run forofficeinelections.Theparliamentary

elections in October 2003 were the firstinwhichwomenwerefreetoparticipate without restrictions. About 95,000 women registered to vote out of 262,000.Asignificantdifferencefromthe 5,000 registered female voters in the 2000 elections.

Presently, nine women serve in the State Council (Majlis a Dawla), appointed by His Majesty. Her Excellency Khadeija bint Hassan bin Salman al Lawatiyah wasthefirstfemaleAmbassadortotheNetherlands, appointed in September

1999 and H.E. Hunaina bint Sultan al Mughairyah, Ambassador to the United States in 2005. Her Excellency Rawya bintSaudalBousaidiwasthefirstfemaleMinister in Oman’s history as Minister of Higher Education. In 2003, an Omani woman was appointed head of the United Nations Information Centre, based in Geneva, Switzerland, with authority over an international network of 77 information centres and more than 300 staff. Oman is the only government in the Gulf, which appointed four women in ministerial positions.

Marine Science Centre

107

millennium 108

gAme point

BeAch gAmes

Come December this year, the Sultanate of Oman will host the biggest sporting event in its history, the

second Asian Beach Games. The event will help showcase the country as a premium sporting destination and will take advantage of Oman’s natural beauty and pristine coastal environment.

While the Muscat Asian Beach Games

Organising Committee (MABGOC) will conduct the games, OMRAN, the sultanate’s tourism development and investment arm, is responsible for the site development. The new world-class development will comprise a mixture of temporary and permanent facilities, and will act as a legacy for the people of Oman. It will be the major force to help transform the area into a leading sport, leisure and tourism resort.

Wael lawatiCEO, OMRAN

the features will include an Olympic standard athletes’ village, a marina hotel, apartment block and a games command centre

As host of the 2nd Asian Beach Games event, OmRAn will have the chance to show-case their ability to create world-class tourism and sporting destinations

}

109

OMRAN is developing the one-million sqm site at Wudam al Sahil in Musannah, 70km away from Muscat. The site will have temporary and permanent facilities. The key features of the development will comprise an Olympic standard athletes’ village, a marina hotel and apartment block, a games command centre and temporary grandstands for the Games.

The sporting facilities will consist of a 350-400 berth marina, dedicated playing pitches with temporary stands to accommodate around 300 spectators for preliminary events, and up to 5,000 spectators for the finalevent.Abespokeman-madelagoonwill be constructed at the heart of the site and will be used for all the water-based events, and for docking sail boats.

Other infrastructure developments include a 4-star hotel for players and guests, accommodation for media and administration staff and a variety of restaurants in the athletes’ village. The media will be catered with a dedicated press centre with full meeting and conference

The marina under construction and (below) the infrastructure for

the 2nd Asian Beach Games is nearing completion

millennium 110

facilities, studios, restaurants and a business centre. OMRAN’s CEO, Mr Wael Lawati told us that the work on the project began in June 2008. While the marina work is 100 per cent complete, 70 per cent of the overall work is over and all the facilities are expected to be ready well on time ahead of the games. Mr. Lawati said once the games are over, the facilities at the site will form a new mixed-use residential and commercial development with a sports theme, providing housing and employment for the local community.

The 2nd Asian Beach Games will have 14 disciplines and are equally divided between Musannah and Muscat. The al Musannah Sports City will host beach soccer for which Oman is the defending Asian champion. Musannah will also have beach handball, sepak takraw, volleyball, water polo, jet-ski sport and sailing. The events scheduled to be held in the Muscat governorate are kabaddi, woodball, body building, swimming marathon, triathlon, tent pegging and water-ski. Tent pegging will take place in al Rahba farm in Barka.

So far 1,500 volunteers have come forward to be part of the games and impart their skills in various fields, like broadcast and media, event management, it and PR

Date trees adorn the entrance to the 2nd Asian Beach Games site

111

Woodball, kabaddi and the triathlon will be held on the beach, off The Wave at al Seeb. While Qantab beach will play host to marathon swimming and water skiing, body building competitions will be held at the City Amphitheatre, in Qurum. Various non-competitive events showcasing the culture of the sultanate, will also be held in Muscat.

According to the organisers, most of the events will be held in the evening to ensure crowd participation. An item connected

with the beach games that has been receiving an overwhelming response is the ‘Volunteers Programme’. Over 1,500 volunteers are reported to have come forward so far, to be part of the games andimparttheirskillsinvariousfieldslikebroadcast and media, event management, IT and transmission, marketing and Public Relations and games services.

The organisers are expecting to have 4,000 volunteers as the games near. At present there is one volunteer centre near

the Sheraton Hotel. One more centre will be opened at the Technical College in Al Musannah. The mission of the programme is to create a platform for community involvement, education and togetherness for the youth in the country.

The inauguration of the Games is scheduledforDecember8.Forty-fivenations from across Asia are expected to participateinthegames.ThefirstAsianBeach Games were held in Bali, Indonesia in October 2008.

Work under way for beach games

millennium 112

Redefining homesever since Oman formulated rules on land ownership in 2006, the real estate scene in the sultanate has received a real fillip. Omani freehold is making waves and the fundamentals of a real estate boom are all there to see

reAl estAte

113

From the perspective of a real estate developer, seeking out a potential investment destination is similar to diving into the deep

blue sea. One is driven by the possibility offindingthatraregem,inthiscaseanuntouched location, that has the potential tocreateamagnificentsustainabletourist destination. Oman is fast evolving into a real estate developer’s dream.

Oman is commonly known to be the friendliest and most welcoming country in the Gulf, due to its historical interaction with different cultures and given its natural borders and costal access to the Gulf of Oman. The historical wealth of Oman is augmented by its rich cultural assets that grace the country with an awe-inspiring splendour which is as unique as the landscape.

The single largest tourism development company in the sultanate, Muriya, was established in March 2006 as a joint

venture between Egypt’s Orascom Hotels & Development and Omran (Oman Tourism Development Company), a fully Oman government-owned company.

”Oman caught our attention because of its untouched beauty, its virgin coastlines and the renowned Omani hospitality and culture,” says Bahaa Kareem, Director of Marketing, Muriya. The company aims to build fully integrated, self-contained destinations designed to propel

community living.

“Our aim is to ensure that the Omani peoplewillbethefirsttoreapthebenefitsofthissustainabledevelopment.Our projects intend to provide opportunities for business, employment, residency and tourism,” adds Bahaa.

Today Muriya, has four ambitious projects which are under various stages of execution and located in prime areas

Freehold villa at Jebel Sifah

millennium 114

Construction work at As Sodah island in progress

Jebel Sifah’s distinctive appeal as a destination lies in the property being a beckoning getaway, accessible in less than an hour’s drive from muscat city

such as Salalah, Sifah – a City complex in Muscat – and the unique As Sodah Island. Muriya’s partner in the projects is Orascom Development Holding (ODH), a leading developer of integrated towns with over 20 years of experience and a strong foothold in Egypt and the Middle East.

A tranquil haven of relaxation, only 45km away from downtown Muscat, Jebel Sifah is a scenic destination fringed by sandy white beaches and turquoise waters of the Arabian Sea, with a backdrop of

the majestic Hajjar mountain range. The distinctive appeal of Jebel Sifah is its close proximity to the capital city, accessible in less than an hour’s drive. Muriya is in theprocessofbuildingaself-sufficient,fully-integrated resort in this very location. Jebel Sifah spreads over an area of 6.2 million sqm. This dramatic mountainous setting will be home to luxurious freehold apartments and villas. Four 5-star hotels and one marina boutique hotel, up to 150 berth inland marina and marina town, retail venues, restaurants & cafés are on offer in

115

Apartment blocks on Salalah beach

this location. The real estate properties forming part of this Integrated tourism complex are freehold properties, which allow 100 per cent foreign ownership.

The uniqueness of Jebel Sifah’s architecture is the blend of century old indigenous elements, with the classic style of middle-eastern designs. Low building density, wherein only 25 per cent of the land is used as built-up area, leaves the remaining 75 per cent to commune with nature, giving the dweller an incomparable sensation of space and freedom.

In Salalah Beach, Orascom plans as for JebelSifah,tobuildaself-sufficient,fully-integrated community. The project comprises a total land area of 15.6 million sqm and includes the

developmentoffivehotels,threeofwhich will be under the management of international hotel operators, namely, Mövenpick, Rotana, and ClubMed. Other components under construction in this development phase includes town centre, marina, two 18-hole PGA golf-courses, road networks and all related infrastructure. Just ten minutes drive from Muscat International Airport, on an area of 312,000 sqm, the City complex project will consist of a shopping promenade, with retail outlets, cafés,

restaurants,officespaceanda five-starMarinahotel.An exclusive top luxury eco-friendly boutique hotel is being introduced by Cheval Blanc, the French hotel operator established by the LVMH Hotel Management, an entity of the Moët Hennessy Louis Vuitton. The hotel will be located on the southern coast of Oman, on 11sqkm with 32 lavishly created villas, each with its own beach and swimming pool. The opening of the hotel is expected in 2012.

millennium 116

environment

Green Oman

117

Since the environmental movement began, there have been many differing opinions as to what role the government

should play, in protecting and preserving the environment. What standards should the government set, and at what expense? Most environmental or “green” issues are often presented as choices, of either economic growth or environmental protection. This idea of having to choose between the environment and the economy, has often delayed the green movement from making necessary strides. However, more and more organisations are currently looking toward options, that include both environmental protection and economic growth.

As a young nation with an aspiration to develop on all fronts, Oman has made giant strides, but in this march towards prosperity, the concept of eco-consciousness was in its infancy. But now, a growing class of educated Omanis have realised, that to preserve the country and its environment for the future generations, the conservation of oil supplies, preservation of the natural wildlife heritage, and water resources, is a must.

Several organisations including corporate houses, institutions and schools are involved in relentless efforts to protect and preserve the environment. Residents of Oman are being encouraged to ‘go green’, and a booklet full of useful tips and advice was launched to further this cause. Supported by OMRAN and the Environment Society of Oman (ESO,) the Origin Oman Go Green Guide was launched in 2008 under the patronage of HE Ahmed al Dheeb, Under Secretary, Commerce and Industry, Ministry of Commerce and Industry (MoCI).

Every individual can contribute towards making life a little more green, and a little less affected by their carbon foot prints. Awareness drives such as the ‘go green’ book is a remarkable step in this direction. Moving from individual to industry, the government’s ‘vision 2020’ aims at reducing the country’s oil reliance, by dropping the oil sector share of GDP from approximately 40 per cent to 9 per cent, by the year 2020. As non-oil industry in the country is now becoming more commercially viable, the government is striving to maintain a judicious balance between the need for development and its

Several organisations including corporate houses, institutions and schools are involved in relentless efforts to protect and preserve the environment. Residents of Oman are being encouraged to ‘go green’

millennium 118

impact on natural resources.

The Authority for Electricity Regulation (AER) commissioned a report in 2008, to assess the potential of renewable energy sources in the sultanate. The results showed that Oman has a number of options when it comes to renewable energy, the most powerful being the harnessing of solar and wind energy.

Towards the end of 2008, the Authority invited the Rural Areas Electricity Company (RAEC), to identify possible locations for diesel system hybrid pilot projects, and make information available for potential developers.

Several international and local companies expressed interest in developing pilot projects within the

the government is striving to maintain a judicious balance between the need for development, and its impact on natural resources

Seagulls on a pristine beach in Oman

119

the policies of the government on environment are exemplary, and the world can take a leaf out of the book of the sultanate with regard to its initiatives

Turtle hatchlings at R’as al Hadd

preliminary framework developed by the AER. After initial coordination with RAEC, they submitted renewable energy pilot project proposals for approval. While the AER is keen to facilitate early implementation of renewable energy projects, it will only approve projects that are technically robust, do not risk the security of supply to customers, and thosethathavewiderbenefits.

The policies of the government on the environment are exemplary, and the world can take a leaf out of the book of the sultanate with regard to its ground-breaking green initiatives. What makes its achievements even more unique, is the fact that despite the semi-arid climatic condition typical to the region, the country has been able to extend its green cover.

millennium 120

heAl the eArth

environment

In 2004, a group of individuals sharing the same vision and passion towards conserving the environment in Oman,

got in sync and formed The Environmental Society of Oman (ESO). Their mission was to raise awareness on environmental issues among the general public, enable those interested to participate in conservation activities, carry out research in order to provide

information for conservation, and work with the government to protect the environment.

ESO has come a long way since its conception. The diverse ecological assets of the country seem to be in safe hands now. As stated by Executive Director, Lamees Abdullah Daar, “There are many funding constraints that government agencies face. We are able, as an

Lamees Abdullah DaarExecutive Director, ESO

the doors of this organisation are open to any individual, seeking to contribute to the conservation of Oman’s environment

Biodiversity is one of the vital treasures of any nation. A healthy biological diversity contributes immensely to the economy and protecting this natural heritage is important

}

121

NGO, to get international funding and expertise that they might not have access to.”

Green, hawksbill and loggerhead turtles nestinOmaningloballysignificantnumbers, and the sultanate is known for nesting spots such as Ras al Hadd, the Damaniyat Islands and Masirah Island. Over three years ago, The Ministry of EnvironmentandClimateAffairsidentifiedESO as a partner in its turtle conservation project, and designated ESO as the officialrecipientoftheawardfromtheUS Marine Turtle Conservation Fund (MTCF). Their work has included satellite tracking of loggerhead turtles, recruitment and training of Ministry of Environment rangers, collating data collected by rangers over the last two decades, and training Omani team members on project management and survey techniques. ESO has also funded equipment used by rangers in the Masirah Island, as well as put survey protocols in place for rangers to use on a regular basis.

Another research programme that is being carried out by this society, involves

the whales and dolphins of Oman. The aim of this project is to learn as much as possible about their distribution and ecology. ESO conducts distribution and abundance studies, genetic research, population studies, acoustic and behavioural studies, investigations of

pollution and health concerns. Results of this research are shared with government agencies, in order to develop conservation strategies.

The Frankincense Research Project will enable to determine the maximum cuts

Beach cleaning drive at Salalah

millennium 122

that can be made to a tree before it is permanently harmed. Safe guarding and nurturing the wealth of frankincense is a pivot project. Likewise, the anti-litter project is a massive drive in tandem with the municipality, and is aimed at providing sufficientbinsattheremotestplacesinOman.

Working with the Ministry of Education, ESO has been involved in creating a document to allow environmental issues to be included into public school

curriculums. The organisation has been continuously raising awareness within the public schools of Oman, on how each individual can practically contribute in minimizing their carbon footprint in every day life.

The doors of this organisation are open to any individual seeking active participation in contributing to the conservation of Oman’s environment. Lectures are held for the public every month to raise awareness on the

ESO spreads awareness of the hazards of plastic bags in Ibra

Working with the ministry of education, eSO has been involved in creating a document to allow environmental issues to be included into public school curriculums

123

numerous environmental issues facing their country. However, Lamees feels the society requires more media attention, and hopefully the recently launched new website eso.org.om, will allow more to join in the effort.

Most people these days are aware of the major environmental concerns that are faced globally. The aim of this society is to raise the awareness on local environmental problems such as fresh waterdeficiencies,turtlepopulationsdropping at a rapid rate, the effect that

sharkfishingcanhaveontheoverallfoodchain, how damaging it can be to plant non native trees in your garden, and so on.

Funds are raised through various methods. Individual members pay betweenfivetotenrialsandcorporatemembers pay OMR1000 annually. An annual fundraising ball is hosted as well. These funds go mainly towards the administrative costs of running the society. National, as well as international grants, are received for the projects.Lamees says, “We have had success with

a large number of our projects. However, I feel that the collaboration that we have managed to achieve with various partners, is our biggest achievement.”

Oman is on the brink of change. Development is going to be extremely fast paced in the coming years. What needs to be avoided is a run in the wake of an avalanche. ESO supports His Majesty’s vision to develop Oman and hopes that mitigation measures are put in place in planningphases,ratherthantryingtofixarising preventable effects.

ESO’s Green Pace event for the ‘NO to Plastic Bags’ campaign

millennium 124

Renewable energyWith the widespread knowledge that the supply of oil and gas will eventually expire, the public eye has turned toward finding renewable sources of power. moreover, fossil fuels are amazingly destructive to the environment

environment

125

Since the discovery of petroleum in the 1860s, fossil fuels have become the foremost source of power in the world. For

over a century after their inception, their availability was seldom called into question. The 1973 oil crisis, however, brought this issue to the forefront. With the widespread knowledge that the supply of oil and gas would eventually expire, thepubliceyehasturnedtowardfindingrenewable sources of power. Moreover, fossil fuels are amazingly destructive to the environment. The burning of oil for power creates great amounts of carbon dioxide, a gas that contributes a great deal to the greenhouse effect.

“Oman is looking into building solar and wind power plants to meet the rising demand, as the Gulf oil exporter faces a gas shortage,” said Zahir al-Suleimani, the Director-General, Projects, Public Authority for Electricity and Water (PAEW), in an interview to Reuters last year.

“We are now turning to renewable energy like wind and solar to reduce the reliance

on gas, as the major fuel for power stations,” said Suleimani and added, “Electricity consumption is increasing by 15 per cent, annually and water by 10 per cent due to industrial and infrastructure projects, as well as domestic use.”

As the sultanate has been witnessing immense social and economic development in recent years, there has

been a considerable rise in the demand for electricity. It was 16 per cent in June 2009, compared to that of June 2008. Meanwhile, the highlights of a study commissioned by the PAEW, points to the potential of renewable energy resources. It says the level of solar energy density in Oman is among the highestintheworld.Thereissignificantscope for developing solar energy

Oman is gearing up to harness solar energy

millennium 126

resources throughout Oman, and solar energy has the potential to provide sufficientelectricitytomeetallofOman’sdomestic electricity requirements and provide some electricity for export purposes.

Thestudyidentifiessignificantwindenergy potential in coastal areas in the southern part of Oman and in the

mountains, north of Salalah. Wind speeds in these areas are comparable to recorded wind speeds at inland sites in Europe, where large numbers of wind turbines are installed and operational. Wind speeds are observed to be the highest in summer months, which coincide with peak periods of electricity demand in Oman.

Apart from being clean and free of any

Oman’s first venture into large-scale development of renewable energy, meanwhile, has attracted major international attention

Study under way to harness wind energy in the southern coast of Oman

127

greenhouse gases, power from the sun is a renewable source, and is virtually unlimited. The solar panels used are reliable and require little maintenance as there are hardly any parts which would require replacing. They create no noise, rendering them one of the only silent renewable energy collectors. The only expense involved, is the initial outlay of funds to install the panels. With a wide variety of panels available, there is the possibility for people from different income groups, to enjoy this advantage andbeself-sufficient.

Oman’sfirstventureintolarge-scaledevelopment of renewable energy, meanwhile, has attracted major international attention. More than 50 firmshaveindicatedtheirsupporttothe planned set-up of a solar power

plant. The government has appointed the PAEW to study the possibility, as well as to implement the project in Oman. The project, billed as “strategic and urgent”, is among a broad range of initiatives that are being supported by a Ministerial Committee, set up last year to oversee renewable energy development in the sultanate. The installation of wind generators in Sur, Masirah and Thumrait has also been quite promising.

Amajorbenefitofwindpoweristhatitis one of the least expensive source of sustainable and renewable energy. It also does not produce any harmful gases. Since a wind farm does not take up much space, the local agriculture can still continue unaffected, and livestock can graze up to the base of these turbines. Renewable energy offers not only an environmentally-friendly substitute to the burning of fossil fuels, but is also economicallybeneficialtoOman.

Solar technology is to be used for desalination plants shortly

millennium 128

The power of givingnumerous charitable organisations are at work in the sultanate, bringing hope and warmth to the souls of the under-priviledged. Spearheading the philanthropy drive is the vision of His majesty Sultan Qaboos bin Said

philAnthropy

129

Charity is about changing lives, even that of the giver. At the upper end of the philanthropy spectrum, wefindprojectssuchasthese

that are making faces smile throughout the sultanate.

National Association for Cancer AwarenessThe National Association for Cancer Awareness’ primary function is to advocate and create awareness about all types of cancer to the community through education, training and supporting research. The programs are community-based and individually tailored.

A cancer survivor, Ms Yuthar Al-Rawahy, promised herself while she was under active treatment, that if she were to survive her third cancer, she would dedicate the time to develop a patient advocacy group in Oman. Upon her return to Oman in October 2002, she organized a very successful meeting and with two other survivors and they talked to the public about their experiences stressing on early diagnosis and successful management.

This humble beginning was followed by enormous interest. A huge support from individuals and relatives of the cancer patients joined hands. A task force was formulated and in November 2002, the founding committee meeting was organised and a working committee was elected. The committee was mandated to register the group as an association,

according to the rules and regulations of the Ministry of Social Development. In April 2004, the Oman National Association forCancerAwarenesswasofficiallyregistered.ThisisthefirstpatientadvocacygroupinOman.Anofficewasopenedwithatoll-free facility for patients. The organization helps to get early appointments for new

The Human Pink Ribbon event on 15th October, 2008

millennium 130

patients. They raise funds through donations and support research on cancer in form of grants. Awareness meetings are conducted at numerous locations. NACA sponsored the launching of a book of poems “Within My Self” written by a young Omani lady whose father was a cancer patient.

The association, in a short time, has exceeded its expectations. A mobile mammography unit sponsored by NACA travels throughout Oman offering free mammograms to women over 40. The association has successfully campaigned

for breast cancer throughout the country. The involvement has been huge as is apparent from their ‘Human Pink Ribbon’ campaign. Thanks to the government, the private sector, and some individuals’ support, it is evident that the message is getting through by the number of patients who sought early intervention and achieved successful treatment.

Dar Al Atta’aDar Al Atta’a is a Muscat-based non-profitvoluntaryorganisation.Setupin2006, in accordance with the Ministry

Hospital programme of Dar al Atta’a focuses on organising entertainment activities for sick children at various hospitals. in addition to this, they also donate toys to the children’s wards in hospitals

Tailoring workshop organised by Dar al Atta’a

131

of Development’s ministerial decision number67/2008,asanon-profitvoluntaryassociation, which works towards improving the quality of life for those who are less fortunate in the Sultanate of Oman.

Currently, there are four major aid and assist programs that Dar al Atta’a is focusing on: Family Sponsorship Programme, which aids under-privileged families by helping them meet basic needs such as food, shelter and clothing. Besides actually providing them with these basic amenities, the association also helps them support themselves by providing information that will allow them to make their own living.

Hospital Programme focuses on organising entertainment activities for sick children at various hospitals. In addition to this, they also donate toys and books to the children’s wards at hospitals. Student Care Programme provides underprivileged school children with uniforms, school stationary and books. The

association also provides students with nutritious meals through its food program.

Housing Projects is a programme that provides more sustainable living conditions for the less fortunate families, Dar Al Atta has completed construction of twenty three houses and now is in the process of constructing 6 more.

Association for Early Intervention for Children with Special NeedsTheassociationwasofficiallycharteredbythe ministerial order (144/2000) issued on

May, 20, 2000 in Muscat. The mission is to serve children from birth up to 6 years old, who are at risk or with a disability, with a comprehensive early intervention programme that covers social, medical, physical, academic and therapeutic services. The objective is to have these children enrol in regular schools or minimize their disabilities to ensure a better quality of life for them and their families.

A key function of the association is to sensitise the community at large through educational programs and mass media.

Dar al Atta’a supplies basic amenities to the less fortunate of the country

millennium 132

A destination in their own right, these beautiful dunes can keep the visitor occupied for days. Home to the bedouin, the sands

offer the visitor a glimpse of a traditional way of life that is fast disappearing, as modern conveniences limit the need for a nomadic existence.

It is possible, but highly challenging, to drive right through the sands from north to south, camping under the seams of native ‘ghaf’ trees or tucking behind a sand dune. It is imperative that you go with a guide, or at least with another vehicle, driven by someone who knows the route and the basics of dune driving.

For the casual visitor, the best way to explore the sands is by staying at one of the desert camps.

Desert Nights Camp, the only luxury desert camp in Oman, is an ideal base for your desert adventure, with spectacular craggy mountains fading off in the distance, endless dunes and crystalline wadis. It is only a two-hour drive from Muscat. The camp is sprawled across silken sands, secluded 11km within the vast isolation of the Omani desert. 30 luxurious bedouin style tents await those who seek the ultimate desert adventure vacation.

Enjoy the unique experience of a camel

tourism

Desert RoseCamping under the starry sky of the Wahiba dunes is one of Oman’s major tourist attractions. Desert nights Camp takes us on a tour

133

ride at sunset. After a long day of dune bashing and dune biking in the golden red sands of the Wahiba, relax in the fully air-conditioned rooms and pamper yourself in the luxurious en suite bathrooms. Drift into magical nights and feast on

traditionalOmanifareintheflickeringglowofthecampfire.Whetheryouarelooking for a day out or a long weekend getaway, a stay at the Desert Nights Camp will give you the holiday you are dreaming of. The peaceful seclusion of

the camp provides the perfect canvas for you to paint your ideal vacation. Whatever you’ve got in mind: romantic getaway, an adventurous holiday, or a relaxed atmosphere with no distractions, you can findithere.

The Desert Night Camp in Wahiba Sands

millennium 134

Going that extra mileWith a proactive approach to Corporate Social Responsibility (CSR), nawras recognises the importance of giving back to the community. the Goodwill Journey undertaken each year is a case in point

corporAte cAre

135

What began with 250 people, the vast majority of whom had never worked in a mobile company before,

today proudly seats a team of over 550 employees, who are among the best mobile professionals. With approximately 85 per cent Omanisation, Nawras is rapidly progressing towards its aim of becoming the ‘employer of choice’ in the sultanate. Committed to the country and its people, Nawras has invested more than RO400mn on the people, infrastructure, customer service and operations, since its launch in 2005.

The Nawras Goodwill Journey began soon after the company launched in March 2005, when a group of employees sat together, united by a common desire to come up with a great plan for giving back to the society in a pleasingly different way. They developed their ideas together and presented their proposal to senior managers. What began as an employee

Ross Cormack, CEO, Nawras on the nawras goodwill journey and (below) Nawras representatives with children

on the yearly goodwill journey

millennium 136

Spending quality time together

the nawras Goodwill Journey began soon after the company launched in march 2005, when a group of employees sat together, united by a common desire to come up with a great plan for giving back to the society

idea generated during a brainstorming session has gathered increasing strength.

Every year since 2005, volunteer employees have travelled the length and breadth of the Sultanate of Oman, to spend time with those running charitable institutions and to give a range of donated items to help with the everyday needs of the less fortunate in the community.

ChiefOperatingOfficer,KhalidalMahmoudrecalls that in November 2007, this heartfelt commitment was recognised on the international stage, when Nawras was awarded the ‘Middle East Business Achievement Award for Social Corporate

Responsibility’, at the highly prestigious Leaders conference held in Dubai. A huge logistical exercise, the Goodwill Journey takes a great deal of advance preparation to obtain the often specialist items that charities require. Nawras discusses the needs of each institute in advance to ensure that their requirements are met, a task overseen by Nasib al Qarni, Procurement Specialist, who has travelled with the team every year.

Taking place during Ramadan, the members of the Goodwill Journey team are all fasting and yet they do not let this stop them from travelling through the desert heat to spread their caring message.

IDS

millennium 138

nAtion Building

The Royal Gift

139

Muscat will soon be the only country in the region to host its own opera house, along the likes of the Royal Opera

House in London, The Metropolitan Opera in New York and the Sydney Opera House in Australia.

The Royal Opera House, Muscat is a daring and visionary project initiated by His Majesty Sultan Qaboos bin Said and is expected to bring together multiple strands of creativity and innovation in both architectural form and structural design. The Royal Opera House that has been under construction since April 2007 at Shatti Al Qurum, is scheduled to be unveiled end of 2010. Built

on contemporary Omani architecture, The Royal Opera House will accommodate upto 1,100 people.

The Royal Court Affairs of Oman had invited bids from international design consultants for the project in 2003. After several stages, WATG was short-listed and invited to lead the team for completing and supervision services, while TPC-UK took over the design of stage engineering, theatre equipment, sound and light. The prominent external facade will be cladded with Omani desert rose stone, while the interior decor will be unique with a touch of traditional Arabic design.Thestagewillbeextremelyflexiblewith the ability to accommodate symphony concerts, recitals, chamber music, as well as fully staged productions of opera, dance, musicals and other aspects of more popular entertainment.

The three-tier auditorium will be fully-equipped to provide an ideal acoustic and theatrical environment for all musical performances. The stage will be fully convertible, based on theatre or concert needs. Another unique feature of the theatre stage will be a 32-metre highflytowerwhichwillfacilitatetheatrical wizardry during performances.

The artistically-designed monument will serve as a world-class performing arts centre with excellent acoustic effect so thatthefinenuancesofjazzorstrainsof classical tracks or plays can be at the highestfidelity.

Built on 80,000sqm out of which 50 per cent will be used for landscaping elegant gardens, the work on the Royal Opera House is on in full steam with an average of 1,200 workers sweating it out to meet the deadline. The cultural icon will incorporate another fascinating element where a commercial souq will be a part of theedifice.Thesouq,dividedintothreesegments,willhavefive-starrestaurants,coffee shops, high-end boutiques, lifestyle retail outlets and an art exhibition gallery.

In order to ease out parking woes, the double storey car park facility will have 550 slots. A new road network incorporating thecountry’sfirstthree-laneboulevardis also under construction. The new boulevard running between the Foreign Affairs Ministry roundabout and the Intercontinental intersection, is aimed to reducetrafficcongestionandoffereasyaccess to and from the theatre to Sultan Qaboos Highway.

muscat will soon find a place on the world’s musical scene. the Royal Opera House is attracting keen interest in opera circles, ahead of its completion

millennium 140

reAdy for An ict lifestyle

Affordable computers and easy internet access for people,” this is the focus of the Information Technology

Authority, says, Dr. Salim Sultan al Ruzaiqi, CEO.

“We are preparing the society to enable people to make information and communication technologies (ICTs) a central part of their lifestyle, and we hope to achieve this in the

next three years or so,” said Dr. Ruzaiqi. The Digital Oman Strategy, called e.oman for short, is the nation’s IT strategy that sets the goals for the creation of a knowledge society and a road map to implement it. e.oman is built on His Majesty Sultan Qaboos bin Said’s vision to create a knowledge society in the sultanate, in accordance with Oman’s economic vision 2020.Created through a Royal Decree on May 31, 2006, ITA is a public,

Salim Sultan Al RuzaiqiCEO, Information Technology Authority (ITA)

Greater partnership with the private sector is another interest area, helping businesses save time and money through smart electronic services

the Digital Oman Strategy, called e.oman for short, is the nation’s it strategy that sets the goals for the creation of a knowledge society and a road map to implement it

}

ict

“

141

autonomous organisation responsible for the implementation of e.oman projects and initiatives. Spearheaded by the ITA, e.oman aims to create an effective government-community infrastructure that provides better public services to people, resulting in ameaningfulinformationflowbetweenthegovernment and citizens.

Whether one is a citizen, resident, visitor, business enterprise or government entity in the country, e.oman offers a wide variety of convenient, cost-effective and customer-oriented electronic services, that will empower and transform one’s life for the better.

“Oman’s initiative is different from other countries around the region. While others do it in bits and pieces, we do it on a foolproof measure, under the umbrella of the Information Technology Authority (ITA). The ITA has an advisory body which also evaluates its projects,” said the CEO.

When speaking about e.oman projects and initiatives, Dr. Salim Al Ruzaiqi said the organisation is busy with an integrated ongoing awareness campaign, comprising

seminars, presentations and other contact programmes across the sultanate. In this campaign, ITA aims to target all segments of society, in an effort to enhance awareness of eGovernment services, to recognise the importance of such services, tobenefitfromopportunitiesinIT,andto encourage individuals to gain digital literacy skills.

The ITA has to date established four Community Knowledge Centres (CKCs) in the different governorates and regions of the sultanate, complete with computers, digital literacy programmes, internet services, and other training programmes. Six more CKCs are in the pipeline.

“Some 1,000 people are on the waiting for the training programmes. This shows its acceptance and popularity,” said Dr. Salim Al Ruzaiqi.

Duringthelatterhalfof2009,theofficialeGovernment Services Portal was launched. The aim of the Portal is for it to serve as a single-entry point for the public to access government services offered electronically. For example, one of the key eServices that has been running for sometime is the Higher Education Admissions Centre Portal. It is a ‘single-window’ system, making it transparent andefficient.“Peoplefromfar-offplaceslike Salalah don’t have to physically travel

One of the Community Knowledge Centres of ITA

millennium 142

to the universities and colleges here, in Muscat to seek admission. All educational services, including admissions and results, can be accessed via the portal. And this is the beauty of integration,” Dr. Ruzaiqi said.

“The ITA’s aim is to integrate the various government departments to provide better andefficientpublicservicesthrougha single window, as people now are approaching different agencies for the same service,” said the CEO pointing towards the future. Greater partnership with the private sector is another area of interest, helping

businesses save time and money through smart electronic services.

“One of the areas that we think is important is to create an environment for young people to start their own businesses and make their own products – an opportunity that we don’t want to miss. We are fortunate that we are dealing with young people. They have a lot of ideas and we want to capitalise on them,” Dr. Salim al Ruzaiqi continued.

Another e.oman initiative is the Oman National Computer Readiness Team (OCERT). It was established to face the challenging security issue within a digital economy and to serve as the trusted focal contact point for any ICT security incident in the sultanate. Cyber safety is a prime concern to the ITA. “We started from scratch. Though this cyber security initiative has really moved forward, we still have a long way to go. The future is very promising. We are hopefully moving in the right direction,” ITA’s CEO added, sounding optimistic.

Whether one is a citizen, visitor, business enterprise or government entity in the country, e.oman offers a wide variety of convenient, cost-effective and customer-oriented electronic services

The ITA pavillion at Comex 2010

143