Acute cement shortage
Construction companies are facing difficulties on account of a severe cement shortage in the domestic market

The market is facing a severe cement shortage. The reason? Demand-supply mismatch. The demand for cement in Oman stands at around 3.68mn tonnes a year, while the production capacity of Oman Cement and Raysut Cement, the two cement manufacturers in the sultanate is around 3.40mn tonnes (Oman Cement – 1.2mn tonnes and Raysut 2.2mn tonnes per annum). Says C K Khanna, general manager, corporate, Bahwan Engineering, “Projects are going into cost overruns and delays because of the shortage.” Year-on-year there has been a 25 per cent increase in demand for cement in 2007, but the supply has lagged behind. Aware of the problem the government is reportedly looking at importing cement.

The price of a 50kg bag of cement which is supposed to be retailed at RO1.300 is being sold for RO2 per bag. In areas like Sohar, this goes up to RO2.200 to RO2.300. “We recently faced a situation wherein we could not get cement for 15 days at a stretch and had to fall back on our reserve stocks,” says Lakshman, procurement manager, L&T Oman.

Gonu, the cyclone which hit the sultanate in June, has worsened the situation. One, it disrupted production at Oman Cement’s plant. The daily production at the factory has gone down from 40 trucks a day to 15 trucks. Two, the market has been flooded by an additional demand for cement to repair the damage wreaked by the cyclone.

Certain companies in Oman used to get cement supplies from Yemen and Abu Dhabi but with an all-round construction boom in the GCC, these supply lines too have stopped. “The demand for cement in the GCC is forecast to grow at 36 per cent every year,” says Shantonu Roy, senior research analyst at Amwal Investment. Overall, there seems to be little respite for cement users in the near future.

Galfar IPO opens for subscription

Galfar Engineering and Contracting's RO60.2mn public issue, which opened on August 12 is offering 100mn shares at 602bz per share to finance its ongoing capital expenditure. The issue, which is open to both Omani and non-Omani investors, closes on September 10. The shares will be allotted on September 24.

The promoters' shareholding after the initial public offering will stand at 60 per cent. The minimum subscription for individuals is 1,000 shares. For corporates, investment funds, and pension funds, the minimum is 10,100 shares. The company spent RO43.5mn in 2006 on capital assets for enhancing its project execution capability, achieving a substantial growth in revenue. The company has estimated capital expenditure on plant and machinery of RO12mn, RO11mn and RO10mn in 2007, 2008 and 2009, respectively.

Galfar is one of the largest, multi-disciplined engineering, contracting and construction companies in Oman and the Middle East. Established in 1972, its turnover stands at US$700mn. The company has the experience and expertise in project management, engineering, procurement and construction in areas like oil and gas, civil, electro-mechanical, roads and bridges and environmental projects.

The range of projects executed covers oil and gas pipelines, oil and gas production, service contracts in the petroleum industry, commercial and residential complexes, monuments, water line and sewer line networks, bridges, roads, dams, electro-mechanical works, HVAC systems, power transmission lines, maintenance of hospitals, water line and sewerage networks. Galfar, which employs over 20,000 employees, maintains a fleet of 6,200 vehicles. It has operations and presence in all corners of the sultanate, providing a one-stop solution to all types of construction requirements.

All operations of Galfar are certified for ISO 9001. It has had many successful joint ventures with the global giants in construction and is one of the most sought after construction partners in the region.

Turbulent times
The crisis-ridden Gulf Air tries to maintain its course despite the departure of its CEO, Andre Dose

Gulf Air has been in a tizzy for a month now, with Andre Dose stepping down as CEO barely four months into the job. The airline maintains there were no differences with Dose on how to nurse the airline back to health, which apparently is losing more than US$1mn a day. The fact remains that the differences – on how to run the carrier – were irreconcilable. The Bahrain police are now investigating the airline for financial irregularities. But Hisham Abu Alfateh, head of corporate affairs & PCE office, Gulf Air, continues to maintain that it is business as usual.

What are the chances of a Bahraini national heading Gulf Air?
This is a hypothetical question. All options are open. Gulf Air has appointed Bjorn Naf as acting CEO and has not approached any other party for the top post. Naf is extremely qualified and capable for the job and the search is currently on for a permanent CEO to lead the airline and it can be a Bahraini or a foreigner, depending on the capability of the person to lead Bahrain's national carrier.

Was Gulf Air approached by Oman Air for the Heathrow slots? Any particular reason for selling it to American Airlines?
No. American Airlines is our major code share partner and Gulf Air went for the best commercial option.

What is the latest on the Muscat call centre? Has Gulf Air abandoned the two-hub approach?
The call centre continues to offer full-fledged services. It will be shifted to Bahrain in 2008. Since Bahrain is now the full owner of Gulf Air, the carrier has shifted to a single hub strategy.

As of the now how many flights does Gulf Air operate between Manama-Muscat? What is in store for the sector?
Gulf Air has five daily fights to Oman. Oman is an important market for Gulf Air and we are always looking at ways to improve our services.

Is Gulf Air looking at a merger/stake sale or a strategic partner to get out of this mess? Or will Bahrain continue to pump in money?
A lot of options are on the table and Gulf Air has the full backing of the Bahrain government. Also assure you that there is no mess: the restructuring plan is working and we are reaping its benefits.

Is Gulf Air looking at the idea of using aircraft fuselage for advertising, apart from promoting F1 in Bahrain?
We have successfully used the belly and tail of the aircraft for previous successful F1 campaigns. It might be an option to consider such means of advertising.

Any other information that Gulf Air would like to share with us?
It is business as usual at Gulf Air which is now undergoing a restructuring programme.

Expanding vistas

Bank Sohar has opened its first branch in the Batinah region with the avowed aim of being a one-stop financial super mall offering products and services across various segments. H E Hilal al Busaidy, the Wali of Sohar formally inaugurated the Sohar branch of Bank Sohar at Souq Sohar at a function attended by dignitaries, senior government functionaries, senior management of Bank Sohar and members of the public.

Sohar is no longer just the half-way halt on the drive between Muscat and the country's northern borders and has metamorphed into a big city in the last five years. "The sheer scale of the economic development now under progress in Sohar makes it an ideal time for Bank Sohar to make its debut in the city," says Nani Javeri, chief executive officer of the bank. "The bank ventures into Sohar at a time when the economic environment and the infrastructure for conducting business both local and international are at its prime."

Industrial activity in Sohar began in 1992 with the establishment of the Sohar Industrial Estate which offers its tenants easy access to domestic as well as international markets. The estate is home to 60 businesses and 18 units under construction. Another 44 units are expected to come on stream in the near future. The new industrial activities in the industrial port area form three groups namely logistics, petrochemicals and metals. Some of the world's leading companies have already set up base in Sohar.

Oman gets first venture fund
The 100mn euro Oman Venture Capital Fund will invest in promising technology-driven companies

The Omani Centre for Investment Promotion and Export Development (OCIPED) is creating Oman Venture Capital Fund with a corpus of 100mn euros to invest in technology-driven companies in the telecommunication, electronics and software sectors. The fund will be supported by Hamburg-based Neuhaus Partners, which has expertise in venture capital financing in Europe. The OCIPED-backed fund will provide financial services to small and medium enterprises (SMEs) and address the capital needs of new entrepreneurs through venture capital to establish a knowledge-based economy in the sultanate.

Says Dr Gottfried Neuhaus, managing partner, Neuhaus Partners Gmbh, "We will invest up to 20mn euros in the GCC region, with special focus on Oman. We will be cooperating closely with Ociped, the Youth Fund, Knowledge Oasis Muscat, and global technology firms."

The fund is looking at tapping investment from institutional investors and high net worth individuals, with a minimum investment of 5mn euros.

The Oman Venture Capital Fund aims to create employment opportunities for the youth and develop a new middle class of entrepreneurs by providing comprehensive services to address the needs of SMEs, such as access to finance, appropriate technology and mentoring to support their growth and development and special products for women.

Says H H Faisal bin Turki Al Said, head of follow-up and development division at Ociped and CEO of Oman Brand Management Unit, "Technology-based companies have achieved phenomenal growth in recent years and the establishment of Oman Venture Capital Fund will encourage more young Omanis to venture into this line of business."

Alliance Housing Bank is keen on supporting the initiative once it officially transforms into a full-fledged commercial entity and the Youth Fund has also extended support to successful entrepreneurs in the IT sector. Adds Sayyid Khalid bin Hamad Al Busaidi, chairman of AHB, "This fund is an attestation to Ociped's continued commitment to increasing partnership with the private sector which will undoubtedly support the development of the national economy given that 70 per cent of enterprises in Oman are categorised as SMEs."

Benefits of the collaboration between Ociped, Neuhaus Partners and other local and international entities include promoting a culture of innovation and entrepreneurship, stimulating a knowledge-based economy and workforce, attracting key talent and scientist, improving the stature of Oman's science and technology communities and enabling new business development.

Recreate the Disney magic
A one-day programme in Dubai will introduce participants to innovative Disney business strategies

Disney Institute is bringing its professional development programme, The Disney Keys to Excellence, to Dubai on October 24. Sponsored locally by The Emirates Academy, part of the Dubai-based luxury hospitality group Jumeirah, the full day event will give business professionals a chance to discover the business behind the Disney magic. The sessions will introduce participants to innovative Disney business strategies, which it is hoped, participants can easily implement in their own organisations.

"The professional development programmes that we offer to groups meeting at the Walt Disney World Resort have proven extremely popular," says George Aguel, senior vice president for Walt Disney Parks and Resorts. "Community leaders around the country started asking us to bring similar programmes to their cities, and The Disney Keys programme does just that. Participants will discover Disney success stories and learn about management philosophies and behind-the-scenes operations that have made the Walt Disney World Resort a benchmark for businesses around the world." According to George, Disney Institute programmes are unique in the world of business.

Shangri-La's special offers this Ramadan

Al Tanoor, the restaurant at Shangri-La's Barr al Jissah Resort & Spa, will offer a traditional Iftar buffet featuring a lavish selection of Arabian dishes during the holy month of Ramadan, a press release from the resort announced. The restaurant's authentic Middle Eastern décor, view over the Sablah area and live entertainment will complement the experience and make Al Tanoor the perfect ambience for a family Iftar.

The release also informed that the restaurant, Shahrazad, will offer an authentic Moroccan Iftar, featuring a select menu of traditional dishes, authentic ambience and live music this Ramadan, while the Sablah area of Al Bandar hotel will revive the authentic ambience of a local village with traditional Arabian tents and live entertainment. The resort will offer special room rates starting from RO65 in the five-star Al Waha, RO105 in the five-star deluxe Al Bandar and RO205 in the exclusive Al Husn. Rates are inclusive of tax and service charge as well as breakfast/sohour, the release said. Chi, the resort's premium spa, also has a Ramadan offer: guests will be entitled to 50 per cent discount on their own treatment if they book a friend for the same treatment at the same time.

MCC inaugurates flyover

Muscat City Centre's (MCC) dedicated flyover is now operational and will connect customers to the fully functional multi-level parking lot directly from the Sultan Qaboos Highway. Customers driving to the mall from the Muscat area, now will not have to go to the Al Mawaleh roundabout to access the mall.

They can now get direct and easy access through the newly opened flyover. The flyover will also ease movement for customers coming from Bausher and Al Sahwa, while customers coming from Seeb will continue to use the original, older access.

Oman Air launches e-ticketing facilities at Hyderabad
New system improves passenger check-in processing

Hyderabad in India has become the eleventh station to be linked to Oman Air's departure control system and move over to electronic ticketing. This system reduces cost without compromising quality, and has improved passenger check-in processing with new, user-friendly display screens.

Various experts from IT, training, central departure control, and weight and balance sections were involved in the venture. Since September 26, 2005, when e-ticketing was launched, about 1mn passengers have used e-tickets. Commenting on the success of e-ticketing, Hamad Saif Hilal al Harthy, senior manager of reservations and global distribution, who is also the project manager, stated that Oman Air has realised 60 per cent penetration on e-ticketing by June 2007, far above the IATA achievement of 51 per cent in the Middle East and North Africa. He said apart from Oman Air and GSA offices, and the Oman Air website www.omanair.aero, all approved travel agents could also issue e-tickets.

E-ticketing is already the default process of issuing tickets for the majority of airlines. The travel data is stored electronically and can be accessed at any time – and, unlike paper tickets, it is never lost or stolen. Passengers can print their e-ticket receipt from the Oman Air website at any time. A passenger with an e-ticket can check in faster, too, by producing the e-ticket printout and an appropriate ID. With the implementation of Interline Electronic Ticketing (IET), passengers travelling on more than one airline can travel with a single electronic document.

Avis rent-a-car opens counter at Salalah airport

Avis rent-a-car recently opened its new car rental service counter at the Salalah Airport. The new counter located at the arrival hall is a full service unit providing self-driven car rental and chauffeur-driven services to tourists and traders for their inbound transportation needs. The new counter is its second in Salalah as the first Avis outlet is based in the heart of the city's commercial hub, Al Nahda Street.

Says Rajesh Joshi, manager, Avis rent-a-car, Oman, "The new location has been chosen in view of the inbound travel needs of tourists and businessmen visiting the country by air. We are excited to introduce this full service counter which facilitates easy and convenient travel options to our international customers."

Avis rent-a-car has six offices located across the sultanate. The company's airport counter provides simplified rental facilities with options of airport transfer services, city-tours in and around Salalah, international bookings and a vast choice of saloon cars and four wheel drives to suit the taste and preference of each customer.

Says Gautam Broota, general manager, Avis rent-a-car, "With the demand for reliable and efficient services on the rise, we aim to provide value-added services to our customers and cater to the growing transportation needs in the country."

Beach-cleaning equipment launched

Surf and Turf has launched a range of beach cleaning equipment. The company's Marnett range of coastal cleaning equipment can clean beaches of garbage and oil, floating and semi-floating deposits.

"The diverse topography of Oman makes it an exclusive tourist destination. However, the current environmental issues faced by the sultanate such as the debris lining the beaches and red tide seasons would prove detrimental to marine life and threaten delicate coral," says Nader Zanout, general manager of Surf and Turf. "To add to this, the impact of Cyclone Gonu has been severe, contaminating the coastline in several regions. We believe that our initiative to introduce beach cleaning services in Oman will facilitate maintenance and protection of the coastline and eventually attract tourists to the country," he adds.

Surf and Turf is the first privately owned venture to offer customised environmental protection services in the Middle East.

Telemedicine services at Apollo
Network provides patients ready access to specialist doctors in India

H E Dr Ahmed bin Abdul Qadir Ghassani, Undersecretary, Health Affairs, Ministry of Health, inaugurated the telemedicine services at Apollo Medical Centre. H E Anil Wadhwa, Ambassador of India was also present on the occasion. Apollo Group of Hospitals, the largest private healthcare provider in Asia, has created yet another landmark with the launch of telemedicine services between the sultanate and India. The telemedicine centre located at Apollo Medical Centre, Al Hamriya, is linked to the Apollo telemedicine network and links the people in Oman with specialist doctors across the Apollo group.

The Apollo telemedicine network, inaugurated in 2000 at Hyderabad, India, is the largest telemedicine network in the region. Linked with over 100 destinations in India and abroad, Apollo telemedicine has demonstrated the benefits of using technology for the benefit of patients. The network provides ready access to specialists and super-specialists in India for consultation and for second opinion services.

KLM to resume service to Muscat

After an absence of more than five years, KLM Royal Dutch Airlines is resuming its service to Muscat this winter. From December 3, KLM will operate five weekly roundtrips to Muscat with Airbus A330-200 aircraft, offering 30 business class seats and 221 economy class seats. KLM had suspended its Amsterdam-Muscat service in early 2002. Flight KL459 will depart for Muscat, via Kuwait, from Amsterdam on Monday, Wednesday, Thursday, Friday and Sunday mornings. The return flight, KL460, will depart Muscat the following morning. KLM Royal Dutch Airlines operates passenger and cargo services to over 90 destinations.

More flights by etihad

Etihad Airways is to increase its Muscat to Abu Dhabi service from one to three flights a day when the airline introduces its new winter flying programme on October 28. The flight uplift will open up many short- and long-haul connections for Oman-based travellers flying via Etihad's base in Abu Dhabi.

Passengers will be able to connect conveniently to more than 20 Etihad destinations, including Manila, Casablanca, Sydney and Singapore. James Hogan, chief executive, Etihad Airways, said, "The increased number of flights and improved time will enhance significantly the long-haul travel options from Muscat with a short transfer time in Abu Dhabi on many routes." When it is introduced, the airline's new programme will increase the total number of weekly flights across all Etihad destinations by 21 per cent. In its biggest route network and schedule revamp to date, the UAE's national carrier will boost its weekly flights from 564 to 716. The extra flights will improve 17 routes across Etihad's global network: Bahrain, for instance, doubles from 14 to 28 flights a week; and Doha rises from seven to 14 flights per week. Flights to Frankfurt will rise from seven to ten a week, Geneva moves from three to four per a week, and London Heathrow increases from 14 to 19 flights a week. Etihad's services to the Indian subcontinent will also receive a boost as the two Kerala routes, Kochi and Thiruvananthapuram, and the Bangladeshi capital of Dhaka, will increase to daily flights.

Air Arabia logs net profit of AED115mn in first half

Low-cost carrier Air Arabia has reported a 342 per cent increase in net profit for the first half of 2007 to AED115mn, compared to AED26mn for the first six months of last year.
During the first half of 2007, the company registered a turnover of AED513mn, up 67 per cent from AED307mn for the first half of 2006. The airline served 1.23mn passengers during the first half of 2007, a 57.9 per cent increase compared to the same period last year. Air Arabia's net profit increased 66 per cent between the first and second quarters of 2007, from AED43.3mn to AED71.7mn. Passenger traffic reached 646,000 during the second quarter of 2007, up 11.5 per cent compared to 580,000 passengers during the first quarter of 2007.

Says Adel Ali, chief executive officer and board member of Air Arabia, "We are proud to continue along this upward trend in financial performance. The company has received acceptance and support from the market, and our business has expanded rapidly. We look forward to continued growth and prosperity for the carrier and our investors."

He adds, "We intend to maintain our leadership in the low-cost carrier market by continuing to serve the most routes in the Middle East and North Africa region at affordable fares. The convenience and comfort of our passengers will always be at the centre of our strategy."

The financial results for the first half of 2007 represent the continuation of a trend of profit and growth for the carrier. In 2006, Air Arabia recorded a net profit of AED101mn, up 222 per cent compared to AED31.3mn in 2005.

Badr al Samaa opens in al khoud
The clinic is equipped with state-of-the-art equipment

Badr al Samaa has officially opened its fifth branch in Oman, complete with the latest technology and state-of-the-art equipment for all patients. H E Dr Juma Ali al Juma, Minister of Manpower, inaugurated the new institute on August 22, in the presence of the board of directors, Abdul Latheef, V T Vinod and P A Mohammed. The branch is located in Al Khoud, near the roundabout, and will be offering free consultations from August 22-28 in an effort to show 'their commitment to the people.' This polyclinic is the start of many new projects already in the process of being planned. These include plans to open another polyclinic in Nizwa and to set up a super-speciality hospital very soon in the sultanate.

The aim is to stop people from finding it necessary to travel outside the country to obtain specialist treatment, and to bring facilities and specialists in different fields (such as cardiology and genealogy), within the easy reach of the people in Oman. Expansion is one of Badr al Samaa's biggest objectives: it believes it is currently without competitors in its mission to bring the best healthcare possible to the population of Oman.

Credit Suisse expands private banking team

Credit Suisse has hired a team of private banking relationship managers for the Middle East market, based in Zurich, underlining the bank’s commitment to further strengthening its activities and services to clients.

Says Bruno Daher, head of private banking in the Middle East/Indian sub-continent and co-CEO of the Middle East, “I am delighted that these talented individuals are joining Credit Suisse to complement our existing team of specialists for the Middle East. As a team, they will be instrumental in helping us to further strengthen our presence in this important and rapidly growing private banking market.”

L&T sets business target
Regional office in Dubai looking to grow business to US$100mn in three years

L&T Infotech, a wholly owned subsidiary of the US$5bn Larsen & Toubro (L&T), is to open a regional office in Dubai to service the Arabian Gulf and Levant with a target of US$100mn in business within three years.

L&T is India's largest technology, engineering and construction company with global operations. More than 60 per cent of L&T's business currently comes from the oil and gas industry, ranging from the fabrication of oil platforms; construction and commissioning of platforms and refineries; control and automation for refineries; and supply, installation and commissioning for petrochemical retailing. An exhibitor at GITEX Technology Week, at the Dubai International Convention and Exhibition Centre from September 8-12, L&T Infotech is also developing business in other sectors, including financial services; manufacturing (auto, industrial, chemical, aero, construction equipment and engineering and construction); and product engineering services.

"Our company services clients across the energy value chain from exploration and production, storage and distribution, refining, logistics and retailing," said D P Sharma, associate vice president responsible for the Middle East. "The services and solutions we offer include applications for information management, IT for capital projects, connectivity, data analytics and locational intelligence, among many others. Our ultimate objective in establishing a regional office in Dubai Internet City is to grow our business to US$100mn."

Revised HR policies at Al Hashar Group

As a part of its new restructuring initiative, the Al Hashar Group launched its newly revised human resources policy and procedures manual at an exclusive in-company event. Chaired by Al Hashar Group CEO Werner K Koch, the meeting was attended by all the company divisional and departmental heads as well as representatives from KPMG, the global consulting firm which is supporting the group's efforts in streamlining the process the company has lately undertaken for operational and strategic change.

Says Koch, "Times are changing. What worked yesterday may not work today. While experience is a good teacher, it will be a liability unless the people gaining experience have an open mind, ready to change and adapt to new situations."