GOING DIGITAL
The launch of eOman is a big step towards creating IT awareness in the sultanate

EOman, Oman’s new e-government initiative, from the Information Technology Technical Secretariat (ITTS) of Ministry of National Economy (MONE), was launched under the auspices of H E Maqbool Ali Sultan, Minister of Commerce and Industry, in a ceremony attended by members of the royal family, ministers, under secretaries, diplomats, IT heads and professionals and leading members of the public and private sectors.

The launch marked the unveiling of the eOman logo and Arif, the official eOman mascot, along with the official website – www.itec.gov.om – in an innovative manner. A multimedia film showcasing Oman’s foray into e-government, various eOman initiatives and their benefits was also screened.

EOman is founded on His Majesty Sultan Qaboos bin Said’s vision to transform Oman into a knowledge society and a knowledge based economy. Spearheaded by ITTS, in partn-ership with various public and private sector entities, eOman aims to create an effective government-community-citizen infrastructure providing better services to people, for a meaningful information flow between the government and citizens.

“EOman will offer every citizen, business and government entity in Oman a wide variety of convenient, cost-effective and customer-oriented electronic services that will empower and transform life,” said H E Moh’d Nasser al Khusaibi, Secretary General, Ministry of National Economy. He talked about the strat-egic direction in the implementation of the Digital Oman strategy and stressed the need for awareness among the public about the potential of harnessing Information and Communication Technologies (ICT) in all walks of life. Increasing IT awareness, IT literacy and capacity building for manpower will be addressed in the implementation of Digital Oman.

EOman is a momentous initiative of the government in its endeavour to transform the nation and empower citizens to build a knowledge society. Creating awareness about the potential of ICT is the prime focus of eOman.

QATAR AIRWAYS RECEIVES FINANCE DEAL OF THE YEAR AWARD
Qatar Airways is celebrating another key achievement after picking up the Middle East Finance Deal Of The Year Award for the second time in three years. The airline was recognised for striking a unique financing deal for its Buyer Furnished Equipment (BFE) with a group of three banks that was put in place last year.

BFE comprises items such as galleys, seats and inflight entertainment equipment, which Qatar Airways buys directly from suppliers and delivers to Airbus for installation on its new aircraft in production. Previously, Qatar Airways made all BFE payments from the airline’s cash reserves.

The judging panel at the Annual New York Air Finance Conference was impressed with the way in which Qatar Airways struck the deal. The awards ceremony took place at a gala night during the two-day conference, held at the Waldorf Astoria Hotel in America’s financial capital. Qatar Airways general manager, finance, Richard Forson received the award on behalf of the airline.

Organised by Air Finance Journal, a prestigious London-based magazine publi-shed by Euromoney Plc, the conference – now in its 26th year – brought together airlines, venture capitalists, banks, investment institutions and financial advisors. The award-winning facility will finance over US$250mn worth of BFE over a four year period in the deal struck last year with BNP Paribas, Citigroup and Qatar National Bank. The 2006 Air Finance Journal Airline Deal of the Year Awards demonstrate how lenders are now prepared to be more creative in their investment decisions. Says CEO Akbar Al Baker, “The Airways is honoured to receive the prestigious Middle East Finance Deal of the Year award for the second time in three years. This award recognises the diligent efforts of our team to negotiate creative financing deals.”

Oil prices scale new trading high
Oil smashed through record highs on April 21, cruising past US$75 a barrel on continued fears of supply disruptions in Iran and Nigeria and reports of spot gas shortages on the US East Coast. US oil for June delivery set a new trading high of US$75.35 before easing to settle at US$75.17 a barrel on the New York Mercantile Exchange, also a new closing record. One trader said the tense interna-tional situation left many investors reluctant to bet prices were going to come down soon.

By the second half of April, oil prices were hovering around US$71 a barrel, after hitting new peaks overnight amid rising tension between Iran and the international community. In London, Brent crude dipped to US$72.34 after climbing to a record of US$72.64. Prices have risen by over 16 per cent in the past month as Iran’s nuclear row has worsened and Nigerian supplies have been disrupted. Analysts say prices will continue to head upwards as long as Iran’s dispute with the international community over its nuclear intentions remain unresolved.

Militia violence in Nigeria, which has led to the suspension of 25 per cent of its output, has also forced prices upwards in recent weeks. Global demand for oil remains intense, particularly in the run-up to the US driving season, while available supplies remain tight. “The basic thing underlying the industry is that global demand remains very strong,” says Tobin Gorey, commodities strategist with the Commonwealth Bank of Australia. Countries in the Opec oil producers’ cartel say there is little they can do to quell the rise in prices.

ENERGY ENDEAVOUR
The recently concluded Oil & Gas West Asia Conference focused on challenges as well as opportunities in the sector

At the fifth edition of the Oil & Gas West Asia Exhibition and Conference, held from April 9-11 at the Oman International Exhibition Centre in Seeb, the focus was on challenges. H E Dr Mohammed bin Hamad al Rumhy, Minister of Oil and Gas, says, “It is more important to discuss the challenges because then the opportunities take care of themselves.”

Pointing out that the global demand for energy is poised to grow at a robust pace, H E Rumhy says developing economies are expec-ted to drive much of the growth. “The key to Oman’s success will be the deployment of new technologies and a focus on human resources.” The government is investing US$10bn during the course of the Seventh Five Year Plan to sustain oil production in the sultanate. He says the government is working out details of agreements with multinational companies to develop oil blocks in Oman.

The minister also highlighted several other concerns in the sector. “The 120 oil fields, which constitute three per cent of the total number of fields in the world, produce 50 per cent of the world’s total oil. And most of these fields are over 50 years old. This is not a good sign,” he says.

“An additional investment of US$500bn is required in the Middle East for meeting the ever-increasing world demand for energy.”

Also required will be a good deal of innovation. With the world demand for oil, currently at 84mn barrels a day, expected to touch 138mn barrels a day by the year 2030, it is obvious that no option can be ignored to get the best possible results. As emerged from discussions at the conference, conventional thinking on reservoirs will only yield average results.

John Malcolm, managing director, PDO, says that the waves of development in the industry are driven by need and necessity. “Sustainable development – achieving a balance between short, medium and long-term goals – is very important. Improved technol-ogy and more enterprise from our people will help achieve that.”

SUM OF ALL CHANGES
Muscat recently played host to the World Summit on Innovation and Entrepreneurship

The World Summit on Innovation and Entrepreneurship, held from April 1-3 in Muscat, was a meeting ground for new ideas that would work for new generations. Over three days, business and government leaders as well as students, among other participants, discussed measures that would help transfer global technologies to local communities. Speakers, among them H E Maqbool bin Ali Sultan, Minister of Commerce and Industry, Michael D White, chairman, PepsiCo International, and Sam Hamdan, chairman, Global Leadership Team, talked about how challenges in the way of global competitiveness would have to be identified and tackled.

In a ‘town hall’ style meeting, speakers including Rick Little, founder of the International Youth Foundation; Claude Béglé, COO, DHL; and H H Dr Sheikha Hissah Saad al Sabah, president, Council of Arab Women, discussed strategies to promote an innovation society. Says H H Sabah, “We need to understand the importance of networking to economically empower entrepreneurs.” Taking this concept to its logical start, Little explains, “There is a need to view young people as problem solvers, as opposed to problems that need to be solved. We have to inculcate the right attitudes in them and provide them with marketable skills.”

Speakers, panelists and participants agreed – through a voting process – that what got in the way of the right attitudes was red tape. Says Robert Lifton, chairman of the board, Medis Technologies, “Small businesses, that don’t have to face bureaucracy, can do more than large companies.” Partnerships between government and private sector investors to provide the right platform and necessary funds for entrepreneurs were viewed as essential by panels at the summit.

Kenneth Morse, managing director, MIT Entrepreneurship Centre, says, “A network of business angels (investors who fund entrepreneurs) in the region can go a long way in inspiring economic innovation.” Particularly relevant for Oman at the summit was the announcement about the setting up of an Innovation Valley. H E Sultan described the project as a centre where ideas and innovations could be exchanged.

Fujitsu GENERAL HONOURS KHIMJI ramdaS
Khimjis felicitated by the Japanese company for its outstanding performance

Japan’s world renowned Fujitsu General, recently honoured the sultanate’s leading business house Khimji Ramdas (KR), with Fujitsu General award for outstanding performance in promoting the General brand of air conditioners. Mitsuhiro Oishi, president, Fujitsu General, presented the award to Pankaj Khimji, director, Khimji Ramdas, at a glittering ceremony in April.

Khimji Ramdas has been Fujitsu General’s exclusive agent in Oman since 1972. Over the years, brand General has grown in magnitude, both quantitatively and qualitatively. General AC boasts of the largest installation base in Oman. “While General AC with reciprocating compressor remains the popular choice among residents owing to high ambient conditions, the success of General AC in Oman can be attributed to KR’s wide distribution and service network, besides product’s merit and range,” says Khimji. Vijay Kumar, general mana-ger, Khimji Ramdas, adds that Khimjis have been able to reach the leadership position thanks to their innovative schemes.

SETTING UP SHOP
Huawei Technologies’ new office is a big step in Oman’s quest of moving towards a knowledge-based economy

Huawei Technologies has set up a new office in Knowledge Oasis Muscat (KOM). The new set-up comes in the wake of Oman’s policy of following a knowledge-based economy. Says Philip Liang, general manager, Huawei Tech Investment, “Oman is one of the markets with the greatest potential in the Gulf region. We also found that Oman has great influence in Middle East and Africa. The opening of our new office will show our permanent existence in Oman and ensure the resource to guarantee the service to all our valuable customers. We believe the new office will bring us enormous business opportunity.”

Huawei has had a presence in Oman since 2003. In three years, it has managed to get a number of major projects like the EETN proj-ect, WLL project, IP backbone for Omantel and Oman Mobile’s HLR project. Huawei, which has an Omanisation percentage of 35 per cent, is looking at recruiting and training qualified Omanis. Says Liang, “It’s our long term stra-tegy to build up a localised entity to provide localised services.”

Bahrain gets Gulf Air Simulator Training Centre
The Gulf Air Simulator Training Centre, the airline’s BD3.5mn facility, was inaugurated recently in Bahrain. H H Shaikh Salman bin Hamad al Khalifa, crown prince and commander-in-chief of the Bahrain Defence Force, opened the centre, which is located at Gulf Air’s headquarters in Muharraq.

With its modern visual systems, computer graphics and screen projections, the centre will offer real-time, simulated on-board training to pilots on Boeing B767, Airbus A320 and A330/A340 in three flight simulators. James Hogan, Gulf Air president and chief executive, says the centre will help to position Bahrain as the new financial harbour of the Gulf. For Gulf Air itself, the centre was a practical measure.

NEW YORK MEETS LONDON
The New York Stock Exchange is in preliminary merger talks with the London Stock Exchange

The owner of the New York Stock Exchange (NYSE), the NYSE Group Inc, has reported in a United States Securities and Exchange Commission (SEC) filing that it is holding preliminary merger talks with the London Stock Exchange (LSE). “We routinely engage in discussions with industry participants regarding potential strategic transactions. We are currently engaged in discussions with certain participants, although no definitive terms have been discussed or agreements reached,” the NYSE’s filing with the SEC says. The report comes in the wake of NYSE rival Nasdaq Stock Market Inc having purchased a 15 per cent stake of the LSE on April 11, after having a £2.4bn (US$4.2bn) takeover offer rebuffed. The 300 year old LSE, which has been wooed by Australia’s Macquarie Bank Ltd and Deutsche Boerse, among others, says it is considering talks on tie-ups with other exchanges but could thrive on its own.
It also emerged that the NYSE has had private conversations with big LSE investors to see if they are interested in selling out. Two US-based hedge funds, which own shares in the LSE but declined to be identified, revealed that they had been approached on behalf of the NYSE. They were asked if they would sell their stakes at a price of about £11.75. It is understood that the funds declined to indicate their interest in selling at any price.