The money trail
IPS and Trowers & Hamlins embark on a campaign to enable Middle East institutions to collect millions of dollars due to them

Middle East investment funds are missing out each year on hundreds of millions of dollars due to them and their investors from the US shareholder settlements. Many have been victims of frauds such as the Enron and Worldcom scandals. In an effort to help institutional investors in the Middle East to recover this money, Institutional Protection Services (IPS), a UK-based company, in association with Trowers & Hamlins, launched in Oman the first of a seminar series to be held throughout the Middle East aimed at educating institutio-nal investors about the US shareholder settlements and the process for claiming the money to which they are entitled. The plan was outlined at an awareness seminar held under the auspices of CMA in Muscat.

Says Caroline Goodman, managing director, IPS, "This is an overdue service for Middle East investors. At last they can cost-effectively access money due to them because of fraud, false financial forecasting or corporate misgovernance. We are dealing with the money already on the table but which international institutions have had difficulty in seeking to access, until now."

Goodman was formerly the head of International Business Development and also headed the New Business Streams at the London Stock Exchange. She also sat on the exchange's management committee. She has also worked in various market regulation roles and for Credit Lyonnais in Paris.

The seminar series is designed to tell large investors from Oman, the GCC and the wider Middle East about overcoming the technical barriers that have until now made it very difficult to collect the money to which they are entitled. "At most just half of all funds entitled to claim are doing so – so billions go unclaimed – and virtually no Middle Eastern or European funds make claims. There is a real need for a service like IPS to help asset managers to carry out their fiduciary duties and enable their members or shareholders to get what they are eligible to receive," says Goodman.

Thailand launches official Arabic website
Website aims to promote greater people-to-people contact

Thailand launched www. thai2arab.com, its first official website in Arabic, in September. The launch ceremony was presided over by Thailand’s Foreign Minister H E Dr Kantathi Supha-mongkhon and was attended by several eminent personalities from the diplomatic corps, different Thai agencies, academics, as well as members of the national and international press.

The website was constructed to enhance the windows of knowledge on Thailand for a wider Arab and Muslim public and consequently to promote greater people-to-people contact. It provides a glimpse into Thailand's society with a diverse spectrum of information from Thailand's beloved monarch to the Kingdom's thriving economy and renowned arts and culture. It has a bilingual feature that reaches out to a wider range of audience, not limiting it to only Arab and Muslim users.

Around the time as the website launch, a delegation comprising representatives from the Middle East Press called on Sihasak Phuang-ketkeow, deputy permanent secretary of the Ministry of Foreign Affairs of Thailand. During the call, Phuangketkeow, with director-generals from the Department of International Economics and the Department of South Asian, Middle Eastern and African Affairs, briefed the delegation on Thailand's policies and relations with the Middle East.

The call was part of an eight-day familiarisation trip organised by the Ministry of Foreign Affairs to enable delegates to gain a greater overall understanding of Thailand, its society, economy and culture.

Intilaaqah's Entrepreneur Awards announced
Intilaaqah comprises seven different award categories, with the top prize being RO5,000

Intilaaqah recently announced that it would be running its Best Young Entrepreneur Awards for the third successive year. The competition is open to young Omanis in the age group of 18-32, who have operated their ent-erprises for longer than six months and less than 18 months.

Intilaaqah (Arabic for take-off) is part of Shell's social investment programme in Oman and is modelled on the Shell-funded initiative LiveWire that is currently active in 25 countries. Oman is the first country in the Middle East to start the Intilaaqah programme.

There are seven different award categories, with the top prize for Best Young Entrepreneur carrying a reward of RO5,000. Other categories include the best business idea, best organised business, best progressed start-up and most promising start-up. The winners in these categories will each take home a prize of RO1,000. There is also a RO500 prize for the best display. In addition, a special category was introduced last year for students from the Sultan Qaboos University for the best business plan. There are five prizes worth RO2,500 to be won here.

Director of Intilaaqah Oman, Mohammed al Balushi, explains that the scheme's mission exists in three parts, where the first is to prov-ide young Omanis with the tools to start their own business. Intilaaqah also aims to aid the government in diversifying away from gas and oil and to help alleviate the growing unemployment rate. To achieve their mission, free services, such as business training and counselling, are offered. These are in addition to the annual awards for the best young Omani entrepreneur.

Entry forms for Intilaaqah can be picked up from Shell Select outlets across the sultanate. The deadline for applications is October 13, 2006, while the awards ceremony will be held on November 12.

Constancy in numbers
Oman is the first in the Middle East to introduce MNP

The launch of mobile number portability (MNP), a system that gives subscribers the option to switch from one mobile operator to another, while retaining their mobile number, has opened up an entirely new line of possibilities in Oman. With the MNP system in place, the Telecom Regulatory Authority (TRA) and operators Nawras and Oman Mobile have made Oman the first country in the Middle East to have MNP.

The process of transfer under MNP involves visiting the new operator's customer service centre, filling of a transfer application form and paying a portability fee, which goes to the old operator. After the completion of these procedures, users can expect to start using their old number under the new operator's services within two or three days. MNP can be availed by pre-paid and post-paid customers.

The introduction of MNP has certainly encouraged competition. Both operators have come up with attractive offers and more competitive tariffs to retain and attract customers. Though operators have not revealed exact numbers of how many customers have switched post-MNP, Nawras CEO Ross Cormack says, "Since the introduction of MNP, hundreds of customers have chosen to move to Nawras." Adds Khalid al Kharousi, branding and market communication manager, Oman Mobile, "Our MNP advertising campaign has been very successful, a lot of customers have joined Oman Mobile after MNP was launched."

MNP has also achieved an advertising campaign face-off with homegrown heroes. While Oman Mobile has footballer Emad al Hosni egging subscribers to switch to its services taking advantage of MNP, Nawras has footballer Ali al Habsi in its campaign.

Meanwhile, it is obvious that customers will be in a controlling position now to choose their preferred mobile provider. And the choices that they make will determine the effect of the changing equations in the sultanate’s telecom sector.

HSBC injects US$18mn capital
Capital and reserves of HSBC in Oman now reach RO40mn

HSBC Bank Middle East Limited, Oman, has recently received a US$18mn increase in its capital from its head office in Jersey, Channel Islands. This raises the capital to RO18.7mn, an increase of RO7mn. The Central Bank of Oman requires foreign banks to have a minimum capital of RO10mn in place by the end of 2008. The total capital and reserves of HSBC in Oman have now reached RO40mn.

HSBC Oman achieved strong growth in 2005 with an increase in net profit of 49 per cent. Business growth has continued in 2006. "The increase in capital will allow us to continue our strong growth in our corporate, commercial and business banking, and personal finance business" says Richard Groves, CEO, HSBC Oman. "We are proud of being the first and largest international bank in Oman and are committed to playing our full part in fostering the economic devel-opment of the country and providing financial opportunities for our customers, companies and individuals alike."

Earlier this year, HSBC opened its sixth branch in fast growing Sohar. The bank offers its customers a full range of personal financial products including home and car loans, and corporate, commercial as well as business banking products and services.

Roundtable solutions
Inaugural Business Roundtable discussed economic issues

The Inaugural Business Roundtable with the Government of Oman, organised by Economist Conferences on September 10, was a forum to exchange insights, strategies and analysis by bringing together key executives from international and local corporations as well as government decision makers. Said H E Maqbool Ali Sultan, Minister of Commerce and Industry, in his keynote address at the event, "We have gathered here to have free, transparent and interactive discussions on the economic challenges facing the sultanate."

Described as a closed forum for open discussions on Oman's business future, the roundtable conference included off-the-record exchange of views between Oman’s government and the private sector. The issues that were covered included the private sector's role in diversification from oil and Oman's attractions as an investment destination.

Bigger than ever
Nissan inaugurates its biggest warehouse in the region

Nissan has inaugurated its largest warehouse in the GCC at Al Amerat. The opening cere-mony was attended by Toru Hasegawa, managing director of Nissan Middle East, Sheikh Ahmed Bahwan, chairman of Suhail Bahwan Automobiles, and K S Kumar, managing director of Suhail Bahwan Automobiles. The warehouse, which is sprawled across 16,500 square metres with a stock of 75,000 line items, will bring up spares availability for Nissan's range of vehicles up to 98 per cent. With over US$5mn having been invested in the construction of this warehouse, it will also generate employment for 70 people including staff, pickers and drivers.

Addressing the gathering, Hasegawa described Oman as one of the fastest growing markets in the GCC. "Nissan's score in Oman has improved dramatically to reach second position in sales and third in service," he said, adding that the warehouse in Al Amerat would further contribute to the improvement of customer satisfaction. The warehouse and the newly inaugurated showroom in Salalah are part of Nissan's expansion plans that will see a series of showrooms coming up in Sinaw, Bidaya, Izki, Seeb and Rustaq.

Meanwhile, Kumar told the gathering that the philosophy of customer satisfaction was the most important rationale behind such an investment as the warehouse. "The hardware that we have installed in this warehouse is supported by the necessary software that will help us keep detailed stocks of inventory. All this has been done so that our customers enjoy a level of support and satisfaction that they deserve in their dealings with Nissan."

Nissan, which currently has a 20-model line up in the GCC, plans to introduce 19 new models over the next three years. "For 2007, it is our target to sell 7,000 to 8,000 units per annum," declares Hasegawa.

While the warehouse will cater primarily to Nissan's customers, it will also stock spares for the Infiniti range of cars and for Renault vehicles as well.

Partners in governance
Hawkamah, CMA announce corporate governance partnership

Hawkamah Institute for Corporate Governance (Hawkamah), a subsidiary of the Dubai International Financial Centre Authority, has announced that it has signed a Memorandum of Understanding (MoU) with the Capital Market Authority (CMA) of the sultanate to actively promote and improve corporate governance practices in Oman. The MoU creates a partnership framework whereby Oman's experience on implementing corporate governance frameworks in the securities market can be shared as regional best practice throughout the region by Hawkamah.

The CMA has issued a series of regulations dealing with corporate governance in Oman, which arguably comprise the most comprehensive corporate governance regime in the region. The primary regulation is the Code of Corporate Governance, the first in the region, put in place to ensure that the governance structure of public limited companies in Oman provides the shareholders and investors with quality disclosure, working towards harmonisation of corporate governance standards in the region.

Says Dr Nasser Saidi, executive director, Hawkamah, "Our partnership with the sultanate is further evidence of the momentum behind good corporate governance in the region. The commitment from the CMA demonstrates that the Sultanate of Oman takes corporate governance seriously and values the benefits that a sound corporate governance framework can bring to the commercial and financial sectors of the country."

Says Hamid Sultan al Busaidi, acting director general, research and development, CMA, "We are increasingly aware of the importance of a strong corporate governance framework, and our partnership with Hawkamah fits with our strategy of improving the current corporate governance climate.