Crucible of ideas
The 11 semi finalists of the Big Business Idea Competition showcased their flair for business at KOM

Bader al Hinai, a marketing student from Sultan Qaboos University (SQU) expounded on how the SMS can be used to market property and goods, Sami al Khalbani elucidated on the prospects of organic fertilisers, while Maha al Balushi spoke about the benefits that a tourism portal could be put to. All the three were among the 11 semi-finalists of The Knowledge Mine (TKM) - Ernst & Young (E & Y) Big Business Idea Competition. The group of 11 presented a brief summation of their ideas to a group of business people, entrepreneurs, government representatives, media and sponsors gathered at the Knowledge Oasis Muscat (KOM) on October 15.

The 11 semi-finalists came up with a range of ideas, which involved the use of science, technology and design to set up businesses. The winner will get 12 months' rent-free accommodation at KOM's Knowledge Mine incubator programme plus RO6,000 as start-up finance. In addition, the winner will be helped and guided by E & Y to set up business. Says Mohammed al Maskari, director general, "We are delighted with the response to this important annual national business initiative."

Judges will nominate four finalists who will be given the opportunity to deliver a five-minute presentation to the judging panel at the award dinner on November 5. The competition is being supported by E&Y, National Bank of Oman, Ericsson, Nawras, ITA and The Week.

A listing of the ideas reveals a variety of thoughts at work:

• Musallam al Shukairi - online trading strategies for SMEs
• Amal al Maamari - eco-tourism hotel
• Abdullah al Kindi and Zuhair al Harthy - online real estate
• Bader al Hinai - SMS brokerage services for property and goods
• Saada Saif al Harthy - mobile toilets
• Hamed al Aghbari and Musallem al Rahbi - web GIS
• Ammar al Ghazali - recycling
• Sami al Khalbani - organic fertilisers
• Talal Rakha - automated business solutions
• Majda al Hinai and Maha al Bulushi - tourism portal
• Hadia al Baluchi - tourism

Kaya Skin Clinic, Khimji Ramdas tie up
Khimji Ramdas group has signed an agreement with Indian skincare clinic, Kaya. The agreement facilitates the opening of the first Kaya Skin Clinic in the sultanate.

Pankaj Khimji, director, Khimji Ramdas, and Samir Srivastav, business head (MENA), Kaya Skin Clinic, signed the documents relating to the franchise, which will see the centre coming up in Shatti Qurm by this December. With ten service rooms and two dermatologists providing everything from laser epilation to microdermabrasion and everything in between, the clinic, a fifth such chain installation of its kind in the Gulf, promises premium quality skincare for its patients. Kaya's parent group Marico, which supplies hair and skincare products to the spa at The Chedi, has a US$300m annual turnover. Within three years of its creation, Kaya Skin Clinics have 43 surgeries in India, four in Dubai and a further two planned for Saudi Arabia. Says Khimji, "Our continual relationship with Marico is celebrated with a wise business venture down the fastest growing segment of beauty and consumer products."

US$5.5mn contract for adyard
The contract involves the fabrication, loading out and topsides for an offshore platform in Umm al-Quwain

Renaissance Services' Abu Dhabi based oil and gas subsidiary Adyard has won a contract from China's Sinochem to carry out the offshore package of a gas field development in the emirate of Umm al-Quwain. The US$5.5mn contract involves the fabrication, loading out and transportation of the jacket and topsides for an offshore platform.

Adyard will carry out the work at its Abu Dhabi yard and completion of the project is scheduled for next year. The Umm al-Quwain field is shared between Sinochem's subsidiary Atlantis Holding Norway and the Abu Dhabi government-owned Mubadalah Development Company under an agreement with Umm al-Quwain, signed in December 1999. Combined with the Zora field – shared by the emirates of Sharjah and Ajman – it will produce 150mn cubic feet of gas per day in the first phase. Output is set to be double at a later stage.

Adyard is premier oil and gas fabrication and maintenance business with an 80,000m facility with over 300m of waterfront load out capability in Abu Dhabi. The company is currently completing investment projects to expand its facilities and waterfront capacity further. Says Adyard general manager Jim Masterton, "The company has invested in significant quality improvements of state-of-the-art facilities, which will enable Adyard to focus on more specialised engineering and fabrication work." Adyard is considered as a primary turnkey solution provider for EPC contracts, with an excellent safety record.

Renaissance Services is one of the largest public listed services companies in the region. A large proportion of Renaissance business is engaged in providing quality services to the oil and gas sector, where it is a leading turnkey contract services provider. Renaissance is recognised as an Omani company with subst-antial international credentials.

Oman Oil acquires 49 per cent in Pak firm
The project represents a ground-breaking investment for OOC

Oman Oil Company (OOC) has announced the signing of the shareholders' agreement to acquire 49 per cent equity interest in Orient Power Company, Pakistan – a 450 MW plant to be constructed in two phases at Balloki, just outside the city of Lahore. The shareholders agreement was signed on behalf of OOC by Mulham al Jarf, deputy chief executive officer of Oman Oil Company and Nadeem Babar, CEO of Orient Power Company.

Says Jarf, "This project represents a ground breaking investment for OOC in Pakistan, especially when it meets our international investment guidelines. We are delighted to partner up with Orient Power Company who brings in the vast knowledge in operating power plants."

Adds Babar, "We are delighted to have Oman Oil Company join us as a shareholder in its first investment in Pakistan. Our shared vision in terms of long-term commitment to the region for infrastructure development, coupled with the strong bond between Oman and Pakistan, makes for a very beneficial partnership. We hope that this will be the first of many investments for OOC in Pakistan."

code sharing by Gulf Air, Malaysian Airlines
Following the code share agreement with Malaysia Airlines, Gulf Air has begun code-shared flights on the Bahrain-Muscat-Kuala Lumpur sector. Under the agreement, Malaysia Airlines places its code on Gulf Air operated flights between Kuala Lumpur and Muscat-Bahrain. Accordingly, flight GF280 departs Bahrain at 10:45pm every Monday, Friday and Sunday to Kuala Lumpur via Muscat. The return flight GF281 departs Kuala Lumpur at 4:15pm every Monday, Tuesday and Saturday to Bahrain via Muscat. "We are very pleased that we are able to start our code-shared operation within a few weeks after signing the agreement," says Fareed al Alawi, vice president network, Gulf Air. "This is one of the fruitful outcomes of our meeting with the Malaysian Tourism Promotion Board (MTPB) in Bahrain earlier this year, in which it was agreed to explore the possibilities of joint co-operation to promote 50 years of Malaysia's nationhood in 2007."

DHL Oman invests RO10,000 for tracking
DHL recently invested RO10,000 for upgrading its wireless handheld scanners for the company's on-the-go couriers in Oman. The new scanners allow barcode scanning and data entry via a keypad. It automatically downloads data via the GSM phone network as well as a GPRS network. DHL personnel on the field will be connected to the DHL global system to give visibility to both customer service staff and clients, leading to an efficient tracking service. Customers will be able to obtain confirmation within five minutes of delivery. Says DHL Oman country manager, Mark Benton, "With up-to-the-minute shipment information, we can guarantee our customers total transparency so they can track their packages at every step of the process."

OICT opens ahead of schedule
Work on Phase II is progressing rapidly and it is expected to commence operations well ahead of schedule in February

The Oman International Container Terminal (OICT) – a joint venture between the Hutchison Port Holdings (HPH) group, the Government of Oman, Steinweg Netherlands, and three other Omani investors, commenced operations ahead of schedule, transforming the former greenfield site into a world-class container handling facility. Phase I Civil Works, which began on April 1, 2006, was completed in record time to commence operations on September 1, 2006. Phase 1 includes a quay length of 285m with a depth alongside of 16m and is equipped with four post-panamax quay cranes, eight rubber-tyred gantry cranes as well as two reach stackers supported by a fleet of 15 tractors and 33 trailers.

Phase II is progressing rapidly and is also expected to commence operations well ahead of schedule in February 2007. When complete, OICT will have a total quay length of 520 metres and a total of yard area of 28 hectares.

OICT facilities include a gatehouse complex, engineering workshop, a customs inspection area and an administrative building. On the achievement, James Frater, CEO, comments, "The terminal is committed to supporting the divergent needs of the various industries present in the Port of Sohar and the Sohar Industrial Estate, through the delivery of timely logistics solutions. OICT has adopted the HPH Group's award winning Next Generation Terminal Management System (nGen), to ensure the highest level of efficiency as expected from an HPH port. The system will surely enable OICT to rapidly establish itself as the premier container terminal in the Gulf region."

Strategically located outside the Strait of Hormuz, OICT allows vessels to avoid the associated higher premiums once inside Gulf waters, thus potentially reducing shippers' costs. Furthermore, OICT's ability to deliver a swift and efficient service to the growing number of mega-vessels strengthens its port of choice reputation amongst the world's top shipping lines.

BankMuscat launches My Money salary card
BankMuscat has launched the country's first pre-paid salary transfer card. Branded the 'My Money' card, the pre-paid salary transfer card is for use by employers who currently pay monthly salaries or wages by cash. The pre-paid salary transfer card takes away all the laborious administrative and procedural activities involved in paying out salaries in cash and also eliminates the risk associated with cash distribution.

Says Sulaiman Al Harthy, deputy gene-ral manager, "Banking the world over is moving towards empowering the business and the individual customer. The 'My Money' salary transfer card is meant to help employees who currently get paid in cash, manage their finances far more effectively. This, we believe, will help employers manage their administrative duties far more efficiently and cost effectively. The 'My Money' salary transfer cards provides the flexibility and convenience of plastic money to a target segment where research has conclusively shown there is a real need felt by employers and employees alike."

Once an employer signs up with BankMuscat for this arrangement, the 'My Money' cards are issued to all employees. Subsequently the company can simply credit their employees' salary to their respective 'My Money' card accounts. 'My Money' card offers many other advantages to employees: unlike a banking account, the 'My Money' card does not require the customer to maintain a minimum balance in his card account with the bank. The card can also be used for making payments for shopping, groceries, medical expenses etc through any merchant outlets accepting VISA cards.

NBO surpasses 2005 net profit
The bank records net profit of RO20.5mn in nine months

National Bank of Oman (NBO) has announced a record net profit of RO20.5mn for the first nine months of 2006. This net profit for nine months surpasses the net profit of RO20.3mn, which was achieved for the full year of 2005, providing clear evidence of the bank's continued success with its growth strategy. The net profit for the first nine months of 2006 has increased by 88 per cent compared to the same period of 2005.

Says chairman, Sheikh Suhail Bahwan, "NBO's results for the first nine months of 2006 reflect growth across all our businesses. Total assets grew 31 per cent to RO984mn from RO750mn as on September 2005 and 13 per cent as compared to RO870mn till December 2005. Net loans and advances increased by RO142mn (26 per cent) to RO684mn. Cust-omer deposits increased in the same period by RO124mn (20 per cent) to RO740mn from RO616mn in December 2005. Net interest income grew by 15.5 per cent to RO25.7mn and non-interest income climbed by 70 per cent to RO13.1mn. Our business continues to expand, generating sustainable growth."

While the operating cost increased by RO2.4mn over the same period in 2005, there was a significant improvement in the cost to income ratio, from 49 per cent as on September 2005 to 44 per cent as on September 2006, reflecting improved business efficiency. The increase in cost, along with the planned increase in the coming months on people, process and brand, is considered essential so as to enable the bank's progress towards its goal of higher business volumes and profits.

The bank has successfully overcome its past challenges with regard to the large level of non performing loans (NPLs) and its resultant impact on profitability. This is clearly reflected in the 34 per cent lower loan loss provisions of RO8.3mn as compared to 12.6mn for the same period in 2005. Specific provisions on NPLs were RO3.8mn while the balance were general regulatory provisions in the normal course of business.

BSA holds anti-piracy training for officials
The Ministry of Commerce and Industry recently conducted a training programme for the inspectors and law enforcement bodies at the ministry. The training was conducted in cooperation with Business Software Alliance (BSA) and comes as part of the ministry's joint efforts with BSA to bring down piracy in the sultanate.

The training was aimed at equipping the task force, responsible for carrying out investigations against companies suspected or found to be in breach of intellectual property rights (IPR) laws, with the necessary skills to perform their duties efficiently, with a special focus on how to distinguish between original and pirated software. The training programme was the latest in a series of exercises conducted by BSA.

"The ministry has adopted a multi-pronged strategy to boost the anti-piracy drive, which includes awareness programmes, training initiatives and stricter enforcement of IPR laws," says Omar Faisal al Gahadami, director, consumer protection department, Ministry of Commerce and Industry. "Through this programme, we hope to become more acquainted with the ways and means of easily identifying pira-ted software, thus lending further impetus to the country's efforts to curb the threat of software piracy."

Says Jawad al Redha, co-chairman, BSA Middle East, "One of the pre-requisites to an effective anti-piracy strategy involves ensuring that investigating officers gain sufficient expertise to perform their responsibilities efficiently, and we find the Omani authorities' efforts in this direction very encouraging."

Gulf Energy Maritime launches sea cadet programme
Initiative to encourage a career in the sea for youths

Gulf Energy Maritime (GEM), the Middle East's largest independent, commercial product tanker operator with the world's most modern product tanker fleet, has launched a unique sea cadet training programme within the region aimed at encouraging the UAE and Omani nationals to take up a career on the ocean.

Under the programme, Dubai-headquartered GEM plans to train navigational and engineering cadets to serve on its expanding fleet of panamax oil product/easy chemical tankers. "Within only two years of operations, GEM has established itself as a world class player in the energy transportation segment with six tanker vessels already in service and 13 new builds under construction," says Yusr Sultan, CEO, GEM. "GEM intends to remain on the global stage and as an important international player believes that it has a role to play in encouraging the nationals to enter a thriving and expanding business segment and deliver excellence across oceans."

Sea cadet applications are restricted to the UAE and Omani nationals, reflecting the joint venture partnership structure of the company. "As our fleet size grows, we want to nurture and develop our own deck officers and marine engineer officers to serve on board the GEM fleet," says a GEM operations spokesperson.

"We will achieve this by recruiting cadets, sponsoring their training on campus and on board for over a period of four years, including their assignments as cadets, for career progression to officer status." Apart from being paid a monthly salary, GEM will also sponsor cadets' total training costs, including logistics, hostel fees, uniform and text books.

Cadet training will be carried out in India and also at Sri Lanka's Ceyline International Nautical & Engineering College.

AECO Development prepares for Blue City construction
AECO Development, a company belonging to Istanbul-based ENKA Insaat ve Sanayi A and Athens-based Elliniki Technodomiki Teb Group of Companies, announced that they are preparing to mobilise their crew to commence operations for the construction of Phase 1 of Al Madina al Zarqa – The Blue City.

The most visionary urban and lifestyle development project in the region, The Blue City will be at Al Sawadi on Oman's coast and will reshape the concept of urban living and stimulate the further growth and development of Oman to make it a leader in the field of tourism in the greater Middle Eastern area. AECO Development says they are proud to be part of this prestigious project.

Muscat City Centre celebrates five years of operations
The mall to expand by over 31,000 square metres

The Muscat City Centre commemorated its achievements, developments and growth with a special and close-knit event held on October 1, their fifth anniversary. Like every year, they celebrated the wonderful occasion with much fanfare. The Leisure Court was the venue for celebrations. A five-tier cake with a special Muscat City Centre logo was cut. Visitors to the mall were greeted with Muscat City Centre branded balloons and sweets.

The fifth anniversary celebrations are an extension of the huge success of the mall. "As a mall we are constantly looking at making the destination better and more exciting for our customers and an increase in footfall is directly proportional to our popularity in Oman. So we are really happy at this increase as it vindicates our attempts at getting better," says Ibrahim al Qasmi, general manger, Muscat City Centre.

The shopping mall will expand by over 31,000 square metres, which will almost double its current size and add over 60 more stores of international and regional brands. The mall will also extend into the parking area with double-storey east and west wings. The biggest anticipation, however, is about the multilevel parking lot that is being built to accommodate almost 2,250 cars across a sprawling 87,000 square metres.

Muscat City Centre, a part of the MAF sho-pping Malls under the Majid Al Futtaim Group, maintains its position as a major player in Oman's retail sector and is currently the biggest shopping mall in Oman, with over 80 international, regional and local stores.

Samsung appoints Cellucom as distributor
Cellucom, premium distributor and retailer of mobility products and one of the fastest growing retail chains in the GCC region, has been appointed authorised distributor for the complete range of Samsung mobile phones. "Cellucom has earned a solid reputation in the GCC market for its good working relations with other retailers. Moreover, its approach to distribution and sales support to its growing network has led to the establishment of a strong GCC-wide dealer network. We are confident that Cellucom's appointment as a distributor for us in Oman will increase both our visibility and market share," says Steve Han, general manager, mobile division, Samsung Gulf Electronics.

Samsung is the third largest producer of mobile phones in the world. By developing cutting edge technology and combining it with stylish designs and easy-to-use functionality, Samsung is at the forefront of the mobile digital convergence market.

Says Mukkul Shyam, COO, Cellucom, "With changing times the cellular phone has become a necessary accessory. What sets us apart as a distributor and retailer is our wide distribution and retail network and knowledgeable sales teams. We are delighted to have been appointed by Samsung, one of the leading brands worldwide. Cellucom will look to leverage its regional expertise and learning to increase Samsung's market share in Oman."

Cellucom, the only retailer with a pan-GCC presence, has registered an impressive increase in sales over the years. Cellucom's retail footprint in the GCC will increase in the next three months with the opening of 20 showrooms in Bahrain, Oman, UAE and Kuwait.

Oman Air participates in KTM 2006
The sultanate’s flag carrier services six destinations to India

In its quest of promoting the sultanate and boosting its business potential, Oman Air participated in the fourth Kerala Travel Mart (KTM) 2006 held in Kochi, India, during September 28-30. Says Mohammad al Balushi, Oman Air's country manager, "India is one of the destinations that continues to form the backbone of the Oman Air network, and this is likely to remain unchanged given the huge demand and fairly limited supply. The sultanate's flag carrier serves six destinations to India and its growth plans look at acquiring at least 2,000 seats per week every other year. Participation in the Kerala Travel Mart 2006 is considered to be a good chance to inflate business opportunities, since it is the only tourism event in the Indian subcontinent that brings the business fraternity and entrepreneurs together for the promotion of tourism-related products and services in Kerala."

In real time
Central Bank of Oman launches an automated clearing house solution system

HP Middle East has successfully completed the Central Bank of Oman’s (CBO) automated clearing house Solution (ACH) for the Sultanate of Oman. The project will provide ACH services for Oman’s entire banking customer base, complementing the real time gross settlement system (RTGS) implemented last year.

“Customer needs have to be at the forefront of every company’s business direction, and the ability to successfully roll out real time inter-bank payments and settlement services across Oman represents an excellent achievement. “With the active involvement and support of the HP-led consortium, CBO was able to roll out this end-to-end solution in record time,” says Iqbal Ali Khamis Al Lawati, vice president – corporate support, CBO.

CBO formulated a payment strategy for Oman as far back as 2003 in a bid to provide a world-class facility which would lead to real time settlement of payments between banks, commercial customers and consumers. The three main pillars identified by this strategy were RTGS, ACH and the check imaging system. CBO chose HP as a strategic partner for the implementation of the RTGS in 2004. This project was rolled out ahead of schedule. Following this, CBO awarded the ACH contract to HP in 2005.

OIB launches new scheme
Oman International Bank (OIB) launched a new scheme recently, which will promote their ABC Plus Visa Electron card. This scheme will run from October 1, 2006, until January 5, 2007. In total, 108 prizes will be given away to customers who use their ABC Plus Visa Electron card during the festival season. Every month, 36 prizes will be awarded, with 12 customers winning RO250, another 12 customers winning RO100 worth of shopping vouchers and 12 customers winning petrol cards worth RO50 each. In addition, there will be a winner in each district every month.

To be eligible to win these prizes, customers must use their ABC Plus Visa Electron card for purchases. Mohamed Badra, general manager of OIB, says that the scheme will increase awareness about OIB's debit card.

IN THE FAST LANE
With BMW recording double digit growth in the Middle East, Oman has emerged as its fastest growing market

BMW Group Middle East is on course for yet another record sales year in 2006, with BMW’s Q3 deliveries to customers in the region up by 12 per cent year-on-year.

Retail sales of BMW Group Middle East vehicles were 3,606 units in the period July to September 2006, with the new BMW 7 Series, BMW 5 Series, BMW X5 and BMW 3 Series driving growth. Oman is the fastest growing market in the Gulf Cooperation Council region with sales accelerating ahead by 30 per cent, compared to the same period in 2005, followed by Qatar, which is 17 per cent up. Another bright spot was Dubai where sales are also up in the third quarter of this year.

“The Middle East is one of the fastest gro-wing regions in the world for BMW Group, and as usual, BMW Group Middle East has kept its promise with double digit growth over the last year. There is a strong demand for premium products and premium services in the Middle East, and, as a result, the region’s premium car segment is growing much faster than elsewhere in the world. So, we see a very bright future ahead for the remainder of 2006,” says Guenther Seemann, MD, BMW Group Middle East.

Making the cut
Forbes Arabia compiles a list of the Top 40 Arab brands based on loyalty and consumer perception

Forbes Arabia, the Dubai-based Arabic edition of the international business magazine Forbes, has done the first-ever listing of the Top 40 Arab brands in its forthcoming issue.

The survey takes into account Arab companies that cater to markets across 19 Arab countries. They were then ranked on the basis of customer perception and how flexible companies were on adapting their brands to a changing market environment.

“With competition heating up in Arab countries, brands have become an effective way for a company to distinguish itself from competitors in terms of image and product offerings,” says Sulaiman al-Hattlan, editor-in-chief, Forbes Arabia. “The key question for those building Arab brands is how to think globally and act locally.”

An exclusive online survey was conducted for Forbes Arabia by UK market research firm YouGov that drew on consumers from Algeria, Bahrain, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman, the Palestinian territories, Qatar, Saudi Arabia, Sudan, Syria, Tunisia, the United Arab Emirates and Yemen.

The Forbes Arabia research team ranked each brand by giving points for how well customers recognised and trusted each Arab brand, and how well companies adapted their brand to a changing market environment to service their customers. The first of its kind, the Forbes Arabia Top 40 Arab Brands list looks at companies that have created strong brands not only in Arab countries, but are also gaining recognition worldwide,” explains al-Hattlan. Al Jazeera ranks number one in the list, followed by Emirates and Almarai.

Qatar Airways wins top award
Qatar Airways has scooped yet another top international honour at the annual TTG Asia Travel awards by being named Best Airline in the Middle East and Africa. Travel agents from across the Asia Pacific region voted for the best companies in different travel sectors and Qatar Airways came up trumps with the key airline award, further recognising its huge impact in the global aviation industry in the few years since its inception.

TTG is one of Asia’s most prestigious travel trade publications and this year’s ceremony, held in the Thai holiday resort of Pattaya, was attended by the crème de la crème of the global travel industry. Marwan Koleilat, Qatar Airways senior manager, commercial operations, Far East and Australasia, was presented with the airline’s award at a glittering awards ceremony.

Says Qatar Airways CEO Akbar Al Baker, “Qatar Airways has worked extremely hard to get where it is today. I would like to thank our travel trade partners and our staff across Asia and indeed rest of the world for their enthusiasm and support in making Qatar Airways a well recognised brand, turning it into a highly reputed airline.”

Coca-Cola gets McDonald’s award
For the first time in the Middle East, Coca-Cola has been given a ten year partnership award by McDonald’s Gulf Co-op, which represents all the McDonald’s licensees across the region. Coca-Cola Middle East received this award for its service and dedication to the McDonald’s business in the region. “This is a great achievement for Coca-Cola Middle East and we thank McDonald’s for the honour. We have always strived to achieve beyond the expectations of all our business partners in the region,” says Rafik el Toukhi, regional manager, Coca-Cola Middle East. Speaking at the award ceremony that took place in Bahrain, Ali el Hajj, general manager, McDonald's Bahrain, and chairman, McDonald's Gulf Co-op said, “This award signifies recognition for the long-standing and strategic business partnership that we have with Coca-Cola Middle East.”

Forbes Arabia Top 40 Arab Brands