Two tourism projects launched

The tourism complexes will each comprise four five-star hotels, golf course, marina and residential units

Two major tourism complexes in Muscat and Salalah have been announced. Both are under the aegis of the Oman Tourism Development Company (Omran) and Muriya Tourism Development Company, which is jointly owned by Omran and Orascom Hotels and Development. H E Dr Rajiha bint Abdulameer, Chairman of Omran and Minister of Tourism, and Samih Sawiris, chairman and chief executive officer of Muriya Tourism, signed the agreements on July 1 at the Ministry of Tourism premises.

“These agreements represent a key milestone in the development of the tourism industry within the sultanate and will be integral in placing Oman on the international tourist map,” says Sawiris. Both the Sifah and Salalah projects are tourism and residential seafront resorts, providing business and employment opportunities integrated into the Arabic culture, heritage and geography of Oman. Both projects are aiming to provide an upscale style of living, catering to the tastes and expectations of international and regional tourists, GCC, Omani and foreign homeowners, as well as creating business and employment opportunities.

Both the tourism complexes will each comprise four five-star hotels, a golf course conforming to international standards, a marina with 200-boat capacity, shopping centres and residential units.

Sawiris expects both the projects to be completed by 2012. He added that the developments mark the beginning of a move away from concentration on the capital. He said Muriya Tourism is fully committed to preserving the natural treasures on which its success is built, especially the rare and fragile coral reefs that remain the central attraction of Al Soda, and the beaches of Salalah and Sifah.

GBM roadshows feature IBM storage solutions

Gulf Business Machines (GBM), the regional distributor for IBM products and services in the region, has organised a series of region-wide roadshows to promote ‘IBM System X and Storage Solutions’. The roadshow, which kicked off in Kuwait, has now visited Dubai, Oman, Qatar, Bahrain and Abu Dhabi.

A panel of well-known experts across the region was invited to speak at these events. Guest speakers and hosts included IBM System X regional sales manager for the Middle East and Pakistan, Andy Parkinson; and Monis K Joseph, System X country sales manager for Levant and Bahrain.

A major highlight of the road show was an overview of GBM solutions around ‘IBM System X’, the fastest-growing brand under the IBM portfolio. The cutting-edge ‘blade infrastructure’ enables a company to house its entire network, including server integration with multiple operating systems, power, cooling and desktop consolidation, in one data centre. Among the helpful topics and solutions presented by the team during the roadshows were Storage Management Solutions with Tivoli Storage Manager, and recommendations on disaster recovery best practices.

Says GBM Oman general manager, Oliver Mouries, “GBM is a solutions- oriented company. We wanted to move away from the traditional IT roadshow format of pure product update and instead provide our customers with value-added information relevant to their business needs.”

OUTSOURCING LOGISTICS

Aramex ties up with Oman Post to serve as key logistics provider for the handling of express deliveries

Aramex, the total transportation solutions provider, has announced that it has partnered with Oman Post to handle express deliveries on its behalf to the Mena region, Indian subcontinent and Europe. As per the agreement, Aramex will serve as key logistics provider for the handling of express deliveries on behalf of Oman Post.

Through its multi-mode transportation solution, Aramex guarantees an efficient regional model whereby Oman Post’s deliveries are set to reach an unprecedented level of efficiency. Aramex offers an innovative solution that stretches across the AGCC, Mena and south Asian regions. The benefits of the relationship for Oman Post are that Aramex has the capability, resources and flexibility to reach markets previously untouched by the government shipment arm that are key to placing Oman Post on the map of influential postal service providers.

Says Michael Hudson, general manager, Oman Post, “We are confident that Aramex will enhance the services of Oman Post through its industrial understanding of our express delivery system. In our search for a suitable partner, we requested a service provider that would offer a well-organised, cost-efficient and industrially sound solution. It is these qualities that set Aramex apart from the competition.”

Says Salim Khoury, Aramex Oman’s country manager, “Aramex is delighted to work with Oman Post through this highly esteemed appointment. The aim of the partnership is to combine the fruits of Oman Post’s existing client base with Aramex’s industry know-how and geographic reach to create an innovative solution for the sultanate’s deliveries.”

Aramex has started delivering on behalf of the Omani government through this partnership which comes as proof of the company’s commitment to the Omani and wider AGCC communities.

Oman Air khareef holiday packages

Oman Air Holidays has received a tremendous response to its packages for the Khareef Festival 2007. To meet the demand, the airline, which is the diamond sponsor and official carrier of the festival, has increased its Salalah frequencies to a total of 36 flights per week – 30 flights from Muscat, four from Dubai and two from Kuwait. In addition, Oman Air offers convenient connections between Salalah and more than 18 destinations via Muscat.

Oman Air holiday packages offer visitors various options. Within Oman, the khareef packages start from RO119 per adult (based on two sharing), and include return economy Oman Air flights from Muscat, transfers and three nights B&B accommodation in a four-star hotel in Salalah. The packages are valid until September 10.

Omasco’s Honda team wins award

The Honda generators and power products division of Oman Marketing and Services Company (Omasco) was awarded the ‘Best Business Growth for the years 2005 and 2006 in the Middle East and Africa’ award at a conference held by Honda in Thailand. Honda power products, generators, water pumps and tillers provide energy and life support solutions for homes, offices, business, agricultural and recreational activities. The Honda four-stroke outboard engine finds use in a wide range of marine activities. Michael E Hansen, managing director of Omasco, said that the hallmarks of Honda power products are eco-friendliness and emission rates that meet world standards.

AHB at regional banking forum

Alliance Housing Bank has been region-ally acknowledged as a fine example of branding within the banking industry. A press release from the bank said that Karim Boukarroum, head of marketing, AHB, delivered a presentation to banking branding experts from across the Middle East region at the Second Annual Branding Forum in Banking and Finance.

AHB was the only Omani bank to be represented at the conference and joined other prestigious organisations including HSBC, Citibank, Emirates Bank, Ahli United Bank, Doha Bank, National Bank of Dubai, National Bank of Kuwait and the National Commercial Bank.

Karim Bourkarroum spoke about various subjects, including how to undertake branding without actually re-branding. “At AHB we are committed to providing superior solutions and part of our role is to ensure that the people of Oman and the region are fully aware of the products and services available to them.”

Banking on education
Bank Sohar symposium explains ‘Al Mumayaz’ Educational Service

Bank Sohar organised a symposium on the recently launched ‘Al Mumayaz’ Educational Scheme. The event was attended by key personnel from ministries, universities and colleges. Says deputy chairman Mohammed Abdulaziz Kalmoor, “This product is in tune with the core vision of the founders of Bank Sohar. The founders undertook to establish an institution that acts as a catalyst for the development of the country. What is a better catalyst than programmes that upgrade human resources? If we look at the economic success stories of today, we find that the human element stands as the key driver in all of them.”

The ‘Al Mumayaz’ Educational Scheme is a premier service from Bank Sohar, wherein students and professionals are provided with the dual benefits of financial assistance and professional higher education guidance. The bank finances higher educational expenses inclusive of tuitions, on-campus accommodation and travel costs, at interest rates of 6.75 per cent per annum throughout the study tenure and for the six-month grace period after completion of studies. During this period customers pay only 50 per cent of the interest amount. The key highlights of the scheme are the loan limit and tenure, which is set in relation to the specialisation and the periods of study, as well as the dual insurance coverage on a single premium for the parent/guardian and candidate. Adds Kalmoor, “Bank Sohar’s educational scheme serves the objectives of the government and the requirements of the economic development process.” Khalfan Rashid al Tal’ey, DGM retail banking, highlighted the product specifications and details. Ahmed Amour Al Rawas, a senior manager at Al Ajiyal for higher education, briefed the audience on the consultancy services and guidance offered under the scheme.

The bank recently signed an Educational Services agreement with Al Ajiyal for higher
education to provide consultancy services for aspiring customers of Bank Sohar under the ‘Al Mumayaz’ Educational Services. The services provided by Al Ajiyal involve counselling the eligible students on quality higher education options available in Oman and abroad. This includes researched career guidance on the areas of specialisation available and counselling the students’ on career prospects. A detailed career orientation programme is charted to suit an individual student’s needs and thereby dispense specialised career and education advice, thus ensuring that the student is clear about their perspective and goal. Al Ajiyal also undertakes suitable college placement and continuously monitors the progress of students joining the programme.

Big Business idea competition

The Second TKM-Ernst & Young Big Business Idea Competition (BBIC) was launched on July 9 at Knowledge Oasis Muscat (KOM) under the patronage of H E Ahmed al Dheeb, Undersecretary for Commerce and Industry, Ministry of Commerce and Industry. A press release from KOM said that this is the largest such competition in Oman and is now well established as a prestigious launch pad for new science and technology businesses.

“Last year’s competition attracted over 70 entries from local entrepreneurs, business people and academics,” says Abdullah al Jufaili, director, The Knowledge Mine (TKM) incubator programme. Sponsored by Ernst & Young, Ericsson, Nawras, NCR, Infocomm and OER, the competition is viewed by many in Oman’s business and public sector circles as a springboard for participants to successfully raise investment for their commercial ventures.

The competition is limited to Omani nationals and the organisers welcomed entries from individuals, teams, students and entrepreneurs. The idea should be original or a significant improvement on an existing business.

“Entrants will receive high-level feedback on their business idea and the chance to learn more about processes of business,” said Karim Rahmatulla, CEO, Infocomm, and a sponsor of the competition.

Entrants have until September 9 to enter their business plan. The best plan will earn its writers a prize of RO6,000 and rent-free accommodation at TKM for 12 months.

Winning streak

BankMuscat has achieved a net profit of RO40.2mn for the half year ended June 30, 2007, as against a net profit of RO28.0mn reported during the same period in 2006, an impressive growth of 43.6 per cent.

Net interest income increased by 28.9 per cent to RO59.3mn during the first half of 2007 from RO46mn reported during the corresponding period in 2006, mainly driven by asset growth. Non-interest income has grown by 39.5 per cent to RO20.8mn for the first half of 2007 as compared to RO14.9mn of the same period in 2006. Operating expenses were up by 28.3 per cent in the first half of 2007 due to an increase in manpower and other administrative costs as a result of increased business activities and expansion of business lines. However, cost-to-income ratio reduced to 39.5 per cent in 2007 as against 40.6 per cent in 2006. The bank’s net loans and advances stood at RO2,199mn, a growth of 41.45 per cent. Customer deposits, too, have grown by 41.1 per cent to RO2,152mn.

The bank’s share of profit from associates increased from RO1.9mn in the first half 2006 to RO2.7mn in the first half 2007 due to better performance of associates and contribution from Mangal Keshav Holdings, India, where the bank has taken a strategic stake of 43 per cent in April 2007. The basic earnings per share on an annualised basis works out to 88bzs for every 100bzs share of the bank.

Bank Sohar performance better than expected
The bank has managed to contain operating expenses at 72.5 per cent of total first half income

Bank Sohar has reported a net loss of RO2.18mn for the period that ended June 2007. It has taken into account non-specific credit loss provisioning of RO1.70mn and written off pre-incorporation and pre-commencement expenses totalling RO931,000. But it is worth noting that before the above adjustments, the bank made an operating profit of RO455,000, achieved mainly by customer loans and advances. The bank managed to contain operating expenses (before pre-incorporation and pre-commencement expenses) to 72.5 per cent of total income for the period. In just 80 days Bank Sohar built a customer credit exposure of RO105.3mn and customer deposits of RO117.6mn, servicing 3,556 customers.

BMI to open its first overseas branch

Bahrain-based BankMuscat International (BMI) has announced that it has received a licence to set up its first overseas branch and operate at the Qatar Financial Centre (QFC). The banking licence, issued by the Qatar Financial Centre Regulatory Authority (QFCRA), permits the bank to engage in regulated activities including accepting deposits and dealing in investments.

“BMI is the first Bahrain-based retail bank to be granted authorisation by the QFC, and this is a significant achievement for us,” says Sheikh AbdulMalik al Khalili, chairman of BMI. “BMI was set up with a vision to become a dynamic regional bank and with the planned launch of our first branch outside Bahrain we are well on our way to achieving it. Having a physical presence in Qatar enables us to tap into one of the world’s fastest-growing economies,” he adds.

Reusable shopping bags from Carrefour

Carrefour has became the first commercial entity in the country to launch reusable shopping bags, each priced at just 200bz. “This is the next step after taking the initiative to protect the environment,” says Jean Luc Graziato, vice president, marketing and sourcing, Carrefour GCC. According to him, more steps need to be taken to educate the next generation so that they do not make the same mistakes as the previous one.

Carrefour is eager to reduce the millions of plastic bags that are polluting Oman’s once pristine terrain. This initiative will also help to reduce emissions of toxic gases that are poisoning the air. “By using the bag just four times, you will be reducing the usage of plastic bags by 18 per cent,” adds Graziato.

The intention of pricing these bags at 200bz is to ensure that they are taken care of properly instead of being misused like other plastic bags. Furthermore, if these bags get torn or are damaged, they will be replaced at any of the Carrefour outlets free of charge.

US$600mn tourism project
Green Acres project targets families providing facilities for all

Green Acres, a joint venture between Oman-based Radiance International and the Malaysian company Transmit Nanyang, officially took off at a ceremony held at the Grand Hyatt on July 5. The US$500-600mn recreational and adventure tourism project that targets families moves away from the current trend that focuses on beachfront development and water sports. Attending the function were H H Khalifa bin Taimur al Said, chairman and CEO of Radiance International; H E Mohammed Zamri Mohammed Kassim, the Malaysian Ambassador; H H Harub bin Taimur al Said, managing director, Radiance International; and Mohammed Faizal Razabi, head of the Malaysian Chancery in Oman.

NBO posts strong Q2 results

NBO has announced its results for the first six months of 2007. The net profit for the six months of RO19.2mn reflects robust and continuing evidence of the bank’s successful growth strategy. The net profit for the first six months of 2007 has increased by 46 per cent compared to 2006.

Net loans and advances increased by RO94mn to RO798mn from RO703mn in December 2006. Customer deposits increased in the same period by RO77mn to RO893mn from RO817mn in December 2006. Net interest income grew by 13 per cent to RO18.8mn and non-interest income climbed by 32 per cent to RO11.4mn.

While the operating cost increased by RO2mn over the same period in 2006, the cost-to-income ratio remained stable at 42.7 per cent as of June 2007, reflecting continuing focus on business efficiency.

Overseas operations in both UAE and Egypt have contributed to the overall improvement in the company’s profitability. Non-performing loans have now reduced to 7.8 per cent of total loans and nearly 90 per cent of these are covered by provisions.

Hamptons International, BankMuscat tie up

BankMuscat has signed a memorandum of understanding (MoU) with Hamptons International to provide its suite of Baituna home finance products to purchasers of residential units at the various integrated tourism complexes in the sultanate. Says AbdulRazak Ali Issa, chief executive of BankMuscat, “As the nation’s leading bank, we are committed to offering our customers nationwide with a choice of housing solutions that cater to their taste and lifestyle. This MoU with Hamptons International will assist us in helping both our national and expatriate customers realise their dreams of owning a property in the sultanate.”

Says Lee O’Donoghue, manager, mortgage division, Hamptons International, “We are delighted to have BankMuscat as part of our mortgage panel. Our sole goal is to offer independent advice to our clients and therefore the inclusion of Oman’s biggest bank is essential.”

Hamptons International set up its mortgage advisory division to enable it to offer advice to all nationalities buying property in Oman. The company has sold properties in The Muscat Golf and Country Club and has been appointed as lead sales agents to several other developments including The Blue City and Salam Resort and Spa at Yitti Beach.
The Baituna suite of products is aimed at first-time buyers and purchasers of second homes or retirement homes. Financing is offered primarily to Omani nationals, although the products also provide financing options for GCC nationals and expatriates wanting to buy in the sultanate. BankMuscat also provides refinancing options to customers with existing housing loans from other organisations.