That's the idea
Big Business Idea Competition launched

It's the first of its kind competition in Oman and aims to provide young Omanis with a comprehensive support system for their commercial start-up ventures. Says H E Ahmed al Dheeb, undersecretary, Ministry of Commerce and Industry, who was present at the launch of the Big Business Idea Competition, "We have many talented youngsters in Oman. What they need is support from the government and the private sector. This competition aims at providing both to young entrepreneurs. It will make their journey from idea to implementation. It will transform job seekers into job providers."

Organised by The Knowledge Mine (TKM) Incubator Programme, Ernst & Young and the Information Technology Authority and supported by isurf.co.om, Nawras, Ericsson, National Bank of Oman, NCR, and TheWeek, the competition invites original ideas or a significant improvement on an existing business idea from applicants. All applicants will be offered a one-on-one advisory consultation session with a TKM business advisor. Ideas will be short-listed based on level of innovation, understanding of commercial realities and overall potential for long-term success. The competition has a top prize of RO6,000 for the winning entry. Entrants have until 1:00pm on September 2 to submit their business plan. Semi-finalists will be announced in mid-September, with the final taking place on November 5. Says Ericsson's Rob Clark, who is one of the judges at the competition, "The development of entrepreneurs is critical to the development of the economy as they tend to become the largest employers. Besides, working with entrepreneurs revitalises the existing businesses."

To help potential entrants with their ideation, Ernst & Young will be organising three workshops at Knowledge Oasis Muscat. The workshops, to be held on June 25, July 2 and July 9, will cover the structuring of a business plan, communication techniques, market research, operations, finance, marketing and steps to raise investment. Details can be downloaded from www.kom.om/bbic.

Omantel signs agreement with CBO
Omantel has signed an agreement with the Central Bank of Oman (CBO) for the establishment of multi-protocol labelling switching (MPLS) network for advanced computer technology and communications super-highway (BankNet). It is the latest and fastest system in electronic telecommunications technology. The establishment of BankNet will see a comprehensive change in the money flow among the banks in the sultanate.

Omantel will be gaining annual revenues of RO162,984 from this project. The agreement was signed by H E Hamoud al Zadjali, executive president, CBO, and Dr Mohammed al Wohaibi, executive president, Omantel. H E Zadjali said that plans are ready for the application of state-of-the-art technologies in all areas of the national payments. Dr Mohammed al Wohaibi says Omantel adopted MPLS for the BankNet project to guarantee confidentiality of dealings. Omantel is conducting a 24x7 distance follow-up of the programmes of the central bank through the network management centre at the Knowledge Oasis, Muscat.

New HSBC branch in Sohar
HSBC Bank Middle East has opened its sixth branch in Oman, in the heart of Sohar, on Al Waqiba Street. It was officially opened by the Wali of Sohar, H E Sayyid Mohammed al Busaidi. Says Richard Groves, CEO, HSBC Oman, "Sohar has become the hub of a massive economic investment plan centred on the new port and the petrochemical industry. With over US$12bn to be invested in the development of area adjacent to the new port over the next few years, Sohar has already attracted major multinational companies and will provide employment opportunities for both locals and expatriates.”

US$100mn for BankMuscat
Housing, real estate and the SME sector will be the primary beneficiaries of this credit line from IFC

The International Finance Corporation (IFC), the private sector arm of the World Bank, has announced its single largest investment in the Middle East and North Africa region that will take the form of a US$100mn long-term subordinated loan to BankMuscat. Says Sheikh AbdulMalik al Khalili, chairman, BankMuscat, "We are indeed privileged to have IFC as our partner for both the mortgage finance and SME finance sectors. World over, a vibrant small-scale sector and strong demand for housing and real estate have proven to be vital growth engines for developing economies like ours." Says Michael Essex, director of IFC's Middle East and North Africa department, “During the course of due diligence, we were impressed with BankMuscat's dedication and professionalism. I must admit that it will be one of the best managed banks in our global portfolio.” IFC has ramped up its activities in Oman over the last two years with investments running up to about US$200mn.

The IFC financing which will qualify as Tier 2 financing, will go towards strengthening BankMuscat's capital adequacy, support growth of the bank's long term mortgage financing as well as its SME portfolio, adds Essex. In addition to the loan, IFC is providing technical assistance to help BankMuscat grow its SME business.

Essex is of the opinion that the housing market in Oman is currently 'under-served with housing loans of US$1bn accounting for 3.8 per cent of the GDP. Compare this to Lebanon's four per cent, Morocco's seven per cent and 11 per cent in Jordan. "There is a great demand for affordable, quality housing in Oman, especially for the middle-income group. IFC's long-term funding will help address this need." BankMuscat hopes that with its planned focus in the housing loan area, their share will grow to 35-40 per cent of the estimated US$3-4bn housing market in the next five years.

Japanese companies acquire stake in Qalhat LNG
Itochu, Mitsubishi and Osaka Gas get three per cent each

The Government of the Sultanate of Oman recently signed agreements to transfer nine per cent share of Qalhat LNG to three Japanese companies. According to the terms of the share transfer agreements, Itochu Corpo-ration, Mitsubishi Corporation and Osaka Gas of Japan acquire three per cent each of the equity shareholding of Qalhat LNG.

The agreements were signed by H E Ahmed bin AbdulNabi Macki, Minister of National Economy and deputy chairman, Financial Affairs and Energy Resources Council, H E Mohammed al Rumhi, Minister for Oil and Gas and representatives of the Japanese firms.

Consequent to these agreements, 46.84 per cent of Qalhat LNG will now be owned by the Government of Oman, 36.8 per cent will be held by Oman LNG Union, 7.36 per cent by Fenosa Gas, three per cent each by Itochu Corporation, Mitsubishi Corporation and Osaka Gas respectively. Both Mitsubishi Corporation and Osaka Gas already have long-term LNG supply agreements with Qalhat LNG under which the company supplies 0.8mn tonnes of LNG per year to each of these two companies. While Mitsubishi Corporation will transport its volume to both the US and Japan, Osaka Gas will transport its share only to Japan. Itochu Corporation has already entered into a sales and purchase agreement with Oman LNG for lifting a similar volume of LNG on a long-term basis.

Qalhat LNG was incorporated in 2003 by the government in keeping with the decision to initiate a new LNG company that would own a third train in Qalhat, located in Sur.

Intilaaqah holds Youth Enterprise Forum
Intilaaqah, the programme that aims at increasing awareness among young Omanis to start their own business, recently hosted a Youth Enterprise Forum for young entrepreneurs. It was held under the auspices of H E Hamed al Amri, Undersecretary, technological education and vocational training, Ministry of Manpower.

In the first session, Mohammed al Balushi, director, Intilaaqah Oman, introduced the programme to the audience, spoke about its achievements over the years, and discussed the role that Intilaaqah could play in the future. "The Intilaaqah programme provides career awareness as well as sustainable social and environmental development. It works towards ensuring that the inequa-lity gap doesn't grow," says Balushi.

Intilaaqah offers courses of varying durations in business training as well as in business counselling. It also has a career awareness programme in the form of a website for SQU students at www.fanaar.org that helps students look at the options available to them once they graduate. The second session of the day focused on what an entrepreneur would require to start and sustain a business. Factors like awareness, training, funding, and business development assistance were also discussed at the event.

Dual force
Lebanese-Omani Business Forum discusses potential for cooperation in trade and tourism

At the Lebanese-Omani Business Forum, held on June 3-4 at the Barr al Jissah Resort and Spa, cooperation and reforms formed the focus of meetings and discussions. At the opening session of the forum, Minister of Commerce and Industry H E Maqbool bin Ali bin Sultan said, "There are several practical aspects to the forum, which will offer opportunities for joint projects in tourism as well as for small and medium-sized enterprises. The discussions and meetings here will pave the way for future growth. Through organisations such as the Omani Center for Investment Promotion and Export Development (OCIPED), Public Establishment for Industrial Estates (PEIE), the Oman Chamber for Commerce and Industry (OCCI) and with support from Lebanon, both countries will be able to reap the maximum benefits of this association."

A joint project between the Oman Tourism Development Company and Saraya, a real estate development and asset management company, also took off at the forum. H E Rajiha bint Abdul Ameer bint Ali, Minister of Tourism and chairman of the Oman Tourism Development Company, signed an MoU with Ali Kolaghassi, vice chairman and CEO of Saraya, to launch the project. The MoU states that the two signing parties will develop a world class tourism project that will offer state-of-the-art residential and entertainment facilities.

The sessions at the forum included banking legislations and dimensions of bilateral investment, the role of Omani-Lebanese banks in expanding development, and the role of Arab Ports and Free Zones in promoting inter-regional Arab trade. Says H E Sheikh Saad Rafic Hariri, head of the Future Parliamentary Bloc in the Lebanese Parliament, who was guest of honour at the forum, "The Arab region has seen a lot of development but there are also various challenges that have to be faced. The main issues that face us involve the creation of job opportunities and also the creation of reforms."

Stressing that economic, legal and administrative hurdles had to be removed for investment in the private sector to grow, H E Hariri called for all-round modernisation as well as accountability and transparency.

Mobile solutions from Nawras
Operator holds seminar to mark commercial commissioning of its new mobile e-mail service

Nawras Mobile e-mail service puts the familiar Microsoft Windows experience on a variety of handheld devices, according to Peter Arthur Honore, head of alliances and partnerships, Nawras. He was speaking at a seminar held under the auspices of H E Salim al Ghattami, president of Oman Chamber of Commerce and Industry, to mark the commerical commissioning of the new mobile e-mail service from Nawras.

Nawras, in partnership with Microsoft and i-mate, launched the Nawras mobile e-mail service, what the company claims is the first mobile email solution for the Omani business market, in April. Trials were earlier initiated with eight major Omani companies in November 2005 and their inputs were incorporated into the service.

"We have built a very successful consumer base and asked major companies what they wanted. We are here to try and understand the needs of each business," says Ross Cormack, CEO, Nawras. "The phones used for Nawras Mobile e-mail come with special versions of Microsoft Word, Excel and Powerpoint," he adds.

Busy executives on the move can use it for surfing the Internet, checking e-mail and updating their contacts and appointments, by simply clicking away on their mobile phones. Globe-trotting customers can use the service across the GCC region, Serbia, UK and Turkey. More countries will be soon added to the list, according to company officials.

A satisfied customer at the seminar hailed it as the best way of carrying the office in the pocket. Says Deepak Katyal, manager, special IT projects, Bank Dhofar, "There was an increase in productivity and it bridged the already shrinking gap between home and office." The seminar drew to a close with a raffle. Ahmed al Balushi from Asail Trading walked away with a brand new i-mate K-Jam handset.

Shell oil kicks off World Cup promotion
The oil company has also started conducting road shows across various cities and towns in the sultanate

Shell Oman Marketing Company has launched an exciting new promotion for Shell Helix, Rotella and Rimula range of products. The promotion, directed at customers and influencers, offers up to two exclusive branded T-shirts free along with a carton of Shell engine oils. "In keeping with the current heightened interest in the game of football during the World Cup, this promotion aims at giving our valued customers more reason to cheer as they support their favourite teams," says Waqar Siddiqi, general manager-commercial, at Shell Oman.

"We see this as an opportunity to say 'Thank You' to our customers," says Irshad Lawati, managing director at Shell Oman. "But the promotion aspires not only to reward regular customers who are familiar with the advantages of Shell lubricants, but also to encourage more motorists, vehicle owners and specialists to put to test and experience the superior quality and long-term benefits of using Shell engine oils. We blend these global brands and world-class formulations at our state-of-the-art lubricants blending plant in Oman. They are the only brand that carries the 'Made in Oman' tag. Also we are the only company in the country to be ISO 9001 (2001) accredited for lubricant storage, handling, distribution, and associated services."

Shell has additionally embarked upon conducting road shows across various cities and towns in the sultanate to communicate and interact with the brand users/influencers.

No holds barred
United Finance Company's (UFC) plans to change its legal status into a holding company will not be materialising. The Central Bank of Oman (CBO) has rejec-ted the company's proposal for the conversion, which had received approval from other regulatory authorities. The proposed conversion process was to convert UFC into United Holding, and form a new closely-held company – UFC – with an authorised capital of RO20mn, divided into 200mn shares with a nominal value of 100bz each. In a communication to CMA, UFC's CEO Raghavan K Murti said, "The board regrets to note that the company's plans have not received the CBO's approval, based on the CBO's policies not gener-ally favouring the conglomerate set-up for licensed institutions. In view of this situation, the board decided to abandon the plan."

How to grow the millionaires
The number of people globally with more than US$1mn in net assets rose 6.5 per cent in 2005 to reach 8.7mn

Results from the tenth annual World Wealth Report by Merrill Lynch and consultants Capgemini reveal that the group of millionaires reaching 8.7mn owned US$33.3tn in net assets in 2005. Those with financial assets of more than US$30mn – known as ultra high net worth individuals – grew 10.2 per cent to 85,400.

South Korea saw the biggest rise in millio-naires last year, with their ranks swelling by 21.3 per cent. It was followed by India, up 19.3 per cent, and Russia, up 17.4 per cent. Meanwhile, South Africa, Indonesia, Hong Kong, Saudi Arabia, Singapore, the United Arab Emirates and Brazil all posted double-digit increases. Numbers in China grew 6.8
per cent.

The number of US millionaires slowed, growing 6.8 per cent compared to 9.9 per cent in 2004, as rising oil prices and higher interest rates hit stock market returns, but it remained home to the greatest number with 2.67mn millionaires.

Germany had 767,000 millionaires, the UK had 448,000 and China had 320,000 in 2005, according to the survey. Brazil had 109,000, Russia had 103,000 and India had 83,000.

By region, there were 2.9mn in North America, 2.8mn in Europe, 2.4mn in Asia Pacific, 300,000 in Latin America, 300,000 in the Middle East and 100,000 in Africa.

The survey forecasts that the financial wealth of millionaires around the globe will reach US$44.6tn by 2010, growing at an annual rate of six per cent

Get communicating
Microsoft and Yahoo will soon give their customers more choice in how they talk to each other, whether it's using text, voice, or other plug-in applications. Instant Messaging (IM) has already made itself at home in many workplaces, and these new forms of IM could make them all the more tempting, creating yet another security headache for IT managers.

Microsoft's latest version of Windows Live Messenger, available since June, comes with a new feature called Verizon Web Calling that lets users place local, long-distance, and international calls from their computers to almost any phone, including cell phones. Users can make the call by clicking an entry within their contact list or by typing a phone number into the Windows Live Call online dial pad. But calling's not free. Customers need to sign up for Verizon Web Calling through the Windows Live Messenger Program, and buy calling time from Verizon to use with the service.

Arcelor bids get competitive
Mittal faces pressure to match Severstal offer

The world's biggest steelmaker Mittal is facing further pressure to raise its 23bn euro bid for rival Arcelor after Russian company Severstal improved its friendly merger offer. Towards the end of June, directors from Arcelor gathered in Luxembourg, home of the world's second largest steelmaker, to discuss which of its suitors in the five-month-old battle would make the best match.

The situation has bettered for Arcelor because Severstal has improved the offer substantially and this might force Mittal to plump up its offer if it really needs Arcelor. Shares in Arcelor were up 1 per cent at 35.8 euros on June 21 while Severstal shares were off 0.3 percent at 280 roubles after reaching an earlier high of 285.87. Mittal shares, traded in Amsterdam, were up 1.2 per cent at 25.65 euros, valuing its current offer of 1 new share and 10.05 euros in cash for every Arcelor share at 35.70 euros.

On June 20, Severstal revised the terms of its merger proposal, saying that majority owner Alexei Mordashov would settle for 25 percent of the new group rather than the initially proposed 32.3 per cent and raised its offer by about 2bn euros. Under the previous deal, which envisaged Arcelor acquiring Severstal for shares on the basis of valuing Arcelor at 44 euros a share or 29.5bn euros, Mordashov would end up owning 32.3 per cent of the group after buying an additional group of new Arcelor shares.