What's next for AHB?

In spite of Alliance Housing Bank’s MoU with Ahli United Bank, BankMuscat may still be very much in the picture

BankMuscat (BM) is in no way out of the race to acquire Alliance Housing Bank (AHB) despite all reports that indicated that the deal was done with Ahli United Bank (AUB) and it was only a matter of formalities to get the necessary approvals.

On June 16, the US$21bn AUB announced in Kuwait that it had entered into a memorandum of understanding with AHB to take a 35 per cent share in the company by subscribing to a capital hike. A private placement of 113,076,932 shares at 450 baizas will bring in a total of RO50.9mn, taking its equity capital up to RO32.3mn. While the board at AHB has indicated their decision to recommend this deal to the shareholders, the word is clearly out that this is still a deal that can be blocked.

There seem to be some ambiguity in terms of whether all parties concerned in this decision be it the board or shareholders of AHB are in agreement between themselves or with each other. Undoubtedly, AUB is the one with the attractive bid at the moment, but sources say that AHB and BM are already in talks about a possible revision of the latter's earlier bid of 375bz.

Article 124 of the Commercial Companies Law 4/1974 states that if 25 per cent of the shareholders (of AHB) are in favour of the offer made (by BM), they can request the chairman of the board to convene an EGM to seek an overall approval on the merger proposal from the shareholders. There would have to be 75 per cent representation of (AHB's) shareholders at this meeting for the EGM to be successfully convened.

Roadshows introduce IBM System X solutions

Gulf Business Machines (GBM), the regional distributor for IBM products and services in the region (except Saudi Arabia), organised a series of region-wide roadshows to promote 'IBM System X and Storage solutions'. The roadshow, which was kicked off in Kuwait, has toured across the region in Dubai, Oman, Qatar, as well as Bahrain and Abu Dhabi.

A panel of well-known experts across the region were invited to speak at these events. Commenting on the event, GBM - Regional Intel/AMD Base Systems X products manager Boutrous Habbouche says, "With an extensive range of services in GBM's portfolio – from consulting to deployment, and integration to support – the objective of holding these road shows is to provide more in-depth knowledge about our services and their integration in any kind of business environment. We also aim to inform all our valued clients and customers about the best practices that we follow in the industry and what we would want them to inculcate. The ultimate aim, however, would be to increase awareness of GBM's initiative and to advise clients on some of the key drivers that are affecting IT managers of today."

bahrain gets salary tax

One per cent tax to double unemployment benefits funds, expatriates also eligible for the scheme

The Bahrain government recently announced a one per cent tax on salaries to pay for an unemployment scheme for its citizens. The salary tax is set to double the funds available for unemployment benefits through deductions that have already begun, though people will not start receiving benefits until December. The scheme is part of the government’s efforts to bring Bahrain’s labour laws and policies in line with international standards, though the move has drawn protests from sections of the country’s working population. The country’s trade union federation, the General Federation of Workers’ Trade Unions in Bahrain (GFWTUB), is also reportedly unhappy with the situation, and plans to conduct a poll among members on the tax.

Under the scheme, undergraduate and postgraduate Bahraini nationals will receive between BD120 (US$320) and BD150 (US$400) per month, and are required to join training programmes under the government’s National Employment Project to help them find work. Nationals who lose their job after paying contributions for a minimum period of 12 months will be eligible to receive 60 per cent of their salary every month – with a maximum payment of BD500 (US$1,326) and a minimum of BD150 (US$400).

Expatriates who pay contributions for at least a year will also be eligible to receive benefits, but the Ministry of Labour has said that it will determine the circumstances under which they are compelled to stay in Bahrain and benefit from the scheme.

In 2005, the Ministry of Labour began implementing the National Employment Project to tackle the problem of unemployment in the country. The project, which includes providing training programmes for job seekers, also provides incentives for companies to employ Bahraini citizens. Currently, the country’s unemployment rate stands at below four per cent.

full development of PDO’s Mabrouk field

Petroleum Development Oman (PDO) announced that it has received shareholder approval to advance with the full development of the Mabrouk field. The new development plan for the field, which was discovered in 1979 and is currently producing around 8,000 barrels a day, calls for the drilling of up to 80 new wells and the construction of a new production station and gathering system.

The project is being fast-tracked so that the additional incremental production is expected on stream in late 2009. When all the new hardware has been fully commissioned, the field is expected to produce around 15-20,000 barrels a day of oil and 1-2 million cubic metres a day of gas. The gas will be delivered to the Saih Rawl gas processing plant, where it will enter the Government Gas System. The project has been split into two engineering, procurement and construction (EPC) packages that will be carried out under existing service agreements. Work on 'on plot' facilities will be carried out by in-house engineering and maintenance contractor, International Equipment and Contracting Company, while 'off plot' facilities (the oil and water flowlines and associated hardware outside of the field site) will be executed by Galfar Engineering and Contracting. To date, just one per cent of the oil-in-place at Mabrouk has been produced. The full-field development plan will increase the recovery factor to around 10-12 per cent.

Lighting it up

Shangri-La's Barr al Jissah Resort and Spa scooped two of the top awards at the Middle East Lighting Design Awards Ceremony (MELDA) held in Dubai. The MELDA awards recognise the professional achievements and excellence of leading lighting designers in enhancing the region's built environment through the power of light, the fourth dimension of architecture. The first award that Barr al Jissah picked up was for 'Outstanding lighting design in hospitality and leisure environment', where it was pitted against projects like the Four Seasons, Jordan; Emirates Palace, Abu Dhabi and the Park Hyatt, Dubai. The second award the hotel received was the 'Project of the Year.' The awards were picked up by Lawrie Nisbet and Douglas Hamilton from LDP International, UK, the company in charge of the lighting design of Shangri-La's Barr al Jissah Resort and Spa. Zubair Electric Oman, the main lighting supplier of the resort was also represented. Among the professionals on the judging panel for the awards were Paul James, editor of Mondo*arc, the leading international publication for architectural, retail and corporate lighting design and Riad Saraiji, associate professor of Architectural Engineering in UAE.

Standard Chartered bags banking awards

Standard Chartered Bank has won the prestigious Asian Banker Award 2007 for 'Excellence in Retail Banking.' The bank collected five awards at the annual ceremony organised by The Asian Banker in Shanghai in June. These were the 'Best Retail Bank' award for Standard Chartered Pakistan and Standard Chartered Sri Lanka; 'Best Deposit Product in Asia Pacific and Gulf States' for Standard Chartered Singapore, Xtrasaver; 'Excellence in Mortgage and Home Equity in Asia Pacific and Gulf States' for Standard Chartered Hong Kong; and 'Best Retail Banker of the Year' to Mike DeNoma, group executive director and consumer banking chief executive, Standard Chartered Bank.

Said Ravneet Chowdhury, CEO of Standard Chartered Bank Oman, after the awards were announced, "We are delighted to win the Asian Banker Award which is a recognition that reaffirms our status as a fast-growing and high-performing international bank that is leading the way in Asia, Africa and the Middle East."

zero per cent loans from BM

BankMuscat customers with salaries of RO500 or lower are eligible for the loan targeted at cyclone affected

BankMuscat has launched zero per cent interest loans in aid of cyclone victims, which are expected to provide support to over 20,000 of its customers across Oman. BankMuscat customers with salaries of RO500 or lower are eligible for the loan, which will be an amount equal to a maximum of three months salary. The loans will be available till August 15, 2007, following which the bank will evaluate the continued need for such loans. Repayable over a one-year period, the Al A'Awn (support) loans will be processed in 24 hours, and will also be free of bank charges. BankMuscat chief executive, AbdulRazak Ali Issa, said that the new product would be available with immediate effect to all existing BankMuscat customers in the Muscat Governorate and Sharqiya who have their salaries assigned to the bank (on the date of the launch of the programme).

He adds, "The zero per cent Al A'Awn loans will help over 20,000 of our customers nationwide take a small step toward rebuilding their lives." One month before the expiry of the loan tenure, all customers will receive a reminder informing them that their loans are due for repayment. In the event of nonpayment of the loan on the due date, the outstanding loan amount will be merged with the existing loans of the customers on the same terms and conditions prevailing at that time.

New plastering system from Assarain

Assarain Concrete Products (ACP) has recently introduced a high speed fully mechanised plastering system in the Oman market. The new mechanised system uses dry mix plasters in bulk, to which quantified water is released within a closed environment through a calibrated device, at the point of plastering. Then, with the aid of the plastering spray machine, high speed plastering is carried out very effectively with minimal wastage. The process ensures a high level of quality control, consistency and reproducibility. ACP has introduced its silomat system with automated plastering machine and these silos, having 30 tonne capacity each, will be placed at the site. Its unique transport and refilling system provides mortar at the building site at the touch of a button. Its major benefit is that large areas of plastering can be carried out at very high speed. Says ACP general manager A R Varma, "A major benefit of this system is that large areas of plastering can be carried out at very high speed.”

Hamptons, HSBC tie up to offer mortgage

Hamptons International, through HSBC Bank Middle East Limited, Oman, has arranged the first non-national mortgage in the sultanate. The arrangement aims at giving all purchasers on various Integrated Tourist Complexes (ITC) the confidence to raise the required finance. Hamptons International set up their mortgage advisory division last year so that they could offer independent advice to buyers of property seeking mortgages for all properties within ITCs in Oman.

Says Lee O'Donoghue, manager of Hamptons International Mortgage Division, "It is exciting for both Hamptons International and HSBC to achieve this milestone. With mortgage finance now a reality, properties within ITCs will become even more appealing to the international market. By offering independent advice on the various mortgage products available, we hope to enhance the experience for property purchasers in obtaining a mortgage in this market". Adds Richard Groves, CEO, HSBC Oman, "The partnership with Hamptons International fully supports us in the implementation of our successful growth strategy in the mortgage business. We look forward to providing non-resident expatriates our customised mortgage service that is designed to cater to their specific needs, by extending affordability and financial convenience. This compliments our already growing mortgage business."

Alliance Housing Bank announces 'Crisis Care Package'

Product offers customers an advance payment at five per cent interest for a two month period

Alliance Housing Bank (AHB) has introduced the product 'Crisis Care Package' to help customers with rebuilding measures after Cyclone Gonu. The 'Crisis Care Package' allows AHB customers to take an advance payment at a low interest rate of five per cent for a two month period, which may be repaid by the insurance claim later. AHB CEO, Abdulaziz al Balushi, said that the initiative was part of its corporate responsibility to provide support. He informed that the bank would also be deferring loan installments by one month, to ease the pressure on customers caused by the cyclone. He continued that he would not, however, encourage clients to take the waiver, and that they should choose the 'Crisis Care Package' instead. Said Balushi, "The waiver will ultimately be a burden, not a relief." He added that customers not wanting to avail the deferment need to contact the bank.

The bank’s deputy general manager, Ali Moosa, added that the new product would allow customers to start rebuilding immediately, without waiting for an insurance payout. All AHB customers receive home insurance as part of their home loan agreements, and Moosa added that service level agreements had been decided with the insurers, Al Ahlia Insurance Company.

Zahara-UFC offer travel loans

Zahara Holidays has joined hands with United Finance Company (UFC) to offer travel loans to customers and travellers of Zahara Holidays. Says Rajesh Ghosh, divisional manager, UFC, "UFC has tied up with Zahara, considering its market leadership in the travel segment and its dealings with a good and high profile customer base and corporate houses. This tie up will surely boost the sales and customer loyalty of Zahara and benefit UFC in a big way."

The arrangement initiated keeping in mind the travellers of Zahara Holidays who may fall short of the requisite funds to visit destinations of their choice. The travel loans can be acquired to fund vacations and excursions and be paid back in installments over a stipulated time period. The loans can be used to upgrade travel plans including more destinations or even to extend a vacation.

Added Gautam Broota, general manager, Zahara Travel and Tours, "At Zahara we constantly endeavour to further improve on our offerings to our customers ensuring their convenience and satisfaction. We are confident our tie up with UFC will prove to be of great benefit for our customers."

TRACCS opens Muscat office

Trans-Arabian Creative Communications (TRACCS), one of the leading public relations firms in the Middle East and North Africa, has opened a full-fledged office in Muscat, to serve its growing range of clients. Says managing partner, Hassan al Saleh, "We are building a robust operation to include carefully selected Omani professionals and are bringing the collective expertise of the largest public relations network in the Middle East and North Africa, which operates in 14 countries in the Levant, GCC and Africa, as well as of our global affiliate, Fleishman-Hillard International Communica-tions, the world's leading international public relations company."

He adds, "We believe there is a great opportunity in Oman, where private and public
sector organisations are coming to the realisation that public relations is an essential
discipline to create and deliver key communication messages and implement integrated marketing strategies."

Oman Air ties up with SpiceJet

First batch of six pilots of SpiceJet to reach Muscat soon

Oman Air has signed a strategic agreement with the India’s SpiceJet to provide the Omani airline with pilots. Says captain Hamed al Jabry, senior manager-line operations, Oman Air, “Oman Air was recently in India looking for a partner who could provide us with quality and well-trained Boeing 737 pilots. Following a brief visit to India and meeting with SpiceJet Limited chairman and CEO, Siddhanta Sharma, and executive vice president-Flight Operations, captain Dhillon Jati, SpiceJet was the airline that Oman Air preferred to partner with, since it was ideal to provide the company with qualified pilots. We entered into a strategic tie-up with SpiceJet after an extensive and careful inspection. Their pilots will fly with Oman Air on a contract basis for a period of one year.” Jabry added that SpiceJet was keen to provide their first officers with international exposure through Oman Air’s network. The first batch of six first officers of SpiceJet would reach Muscat soon.

Meanwhile, Oman Air has designated a group of young dynamic school leavers to undergo training for full Joint Aviation Authority Airline Transport Pilots Licence at Atlantic Flight Training in the UK. Of these, four have already completed their training in the UK.

DSS apprenticeship programme launched

Following its successful pilot launch last year in Saudi Arabia and Kuwait, the Dubai Summer Surprises (DSS) is out with a bigger edition of its apprenticeship programme. Now covering seven key markets across the region – including Oman, Saudi Arabia, Kuwait, Qatar, Bahrain, Lebanon, and Egypt – and more than 20 universities invited to participate, the internship scheme offers the best and the brightest marketing students the chance to get valuable experience and insights in the staging of DSS, one of the most successful tourism marketing events in the region.

Says Laila Suhail, DSS executive project director, "The apprenticeship programme had such a positive impact on both the students and DSS that the next logical step was to expand its coverage to include more students across the region. This way, the ideas that will be developed by the students will reflect the diversity of their backgrounds and experiences. This will mean a summer extravaganza that will be even more appealing to regional and international tourists."

Sultan Qaboos University, Majan College, Modern College for Business Studies and Muscat College confirmed participation in the programme by nominating six of their best marketing students, who will complete a rigorous selection programme, supervised by a distinguished panel of judges. Evaluation will be based on academic excellence, quality and originality of submitted essays and character to determine the top student who will be awarded the apprenticeship, including an all-expense paid trip to Dubai.

Gulf Air focuses on ‘getting well’

Over 200 members of Gulf Air’s marketing and sales force gathered in Bahrain in June for a day-long annual marketing and sales conference. The conference is a major event for Gulf Air, where the top management meets with the company’s worldwide marketing and sales team to review its past performance while making blueprints for the forthcoming year.

Focusing on the theme, ‘We can do it’, this year’s conference opened with president and chief executive, André Dosé, presenting the restructuring ‘Get Well’ programme for Gulf Air. Michael Wette, a member of the Gulf Air Board of Directors, presented the new network schedule to be introduced from July 1.

Says Gulf Air’s executive vice president, marketing and sales, Lee Shave, who made a presentation on Gulf Air’s marketing and sales plan for the coming year, “Revenue generation is the backbone for any company’s survival and the marketing and sales teams play a very prominent role in this. Given the competition and the opportunities in the Middle East aviation industry, we need to arm ourselves with well-planned sales and marketing strategies. Our conference just did that.”