Retail landscape gets brand value

The retail landscape in Muscat has undergone a huge change with the expansion of Muscat City Centre (MCC) and the entry of several other brands that have set up stores elsewhere in the city. Of the new stores that have been added to the mall, 95 per cent of the brands are entering Oman for the first time.

Most want to maintain exclusivity and cater to the discerning customer. Danish company Bang & Olufsen has opened an outlet in Sabco Centre. Tavola, which sells deluxe kitchen products and tableware, and has branches throughout the region, has opened in MQ. Others that are in the pipeline include Bread Talk, a ‘boutique bakery’ that produces its breads and cakes in sleek, open kitchens. The outlet at Shining Shatti is scheduled to open in December. Cafe Ceramica, a ‘pottery café’, is sla-ted to open in January.

Stores open in the new wing of MCC include Zara, Forever 21, Gap, Fat Face and Banana Republic, while Tommy Hilfiger, Lacoste and US superstore, Borders will open later in September, bringing the new store count to 63 since the beginning of 2007. Says Ibrahim al Qasmi, general manager, MCC, “This new expansion will definitely reinforce our dominant position in this market and increase our market share.” Says Kim Jepsen, general manager, IDdesign, “The retail environment will definitely become competitive and force retailers to be more professional in their approach and improve emphasis on customer service.” He however says that certain outlets in the city will not be affected because of their target segment.

Digital media: Changing the world

It gets you no less than 62mn results in Google Search in the fraction of a second and is growing by leaps and bounds every day. So it was hardly surprising that the third quarterly seminar organised under Knowledge Oasis Muscat's Digital Nation banner saw a panel of technocrats and media professionals intensely discuss the emergence of the newest trend in the ICT space – digital media. Held at the Crowne Plaza on September 17 under the auspices of H E Maqbool Sultan, it was attended by business leaders, technocrats, and media personnel.

Moderated by Graham Porter from Cisco, the panel included Karim Rahemtullah, CEO, Infocomm, Mohana Prabhakar, managing editor, Apex Press and Publishing, Andreas Liffgarden, director, multimedia business development, Ericsson, Raed Dawood of Nawras and Ravi Raman, senior business manager, UMS. Porter kick-started the discussion with a brief introduction of the subject. He then got each of the speakers to add their views on the topic.

The impact of blogs and social networking sites such as Facebook and My Space were among the hotly discussed points. Of particular interest was the way in which people worldwide are now using blogs and online forums to catch up with topics of their interest or even news. Liffgarden said that this was because of the popularly of technology among young people. The panel also debated on how traditional media organisations are increasingly letting their audience guide the packaging of content and services offered. Examples such as South Korean Ohmynews.com and Singapore-based Stomp were discussed in this context. The focus then turned to the current scenario in the sultanate.

Mohana explained how the lack of affordable broadband was hampering the growth of digital media in Oman and how cheap broadband could kick-start a whole new range of economic activities. The panel also agreed that cheap, affordable broadband isn’t necessarily a prerogative of large markets. Iceland has only a fraction of Oman's population, but has made high-speed broadband available for its population at less than 15 per cent of its cost here.

Liffgarden then summed up the discussion with what he described as the recipe for digital media's success anywhere – availability of cheap, high-speed broadband; devices that support digital media and the presence of multiple entrepreneurs who come out with new services.

Launch plans for The Blue City

Al Sawadi Investment and Tourism (ASIT) has finalised the eagerly anticipated launch plans for The Blue City, a unique 32 square kilometre project that will create an entirely new city of more than 250,000 people and an estimated total investment of US$15-20bn. ASIT has set out the timetable for the launch of the project and sales of freehold property in its first phase. Says Anees Issa al Zadjali, chairman of ASIT, “The dynamics of The Blue City project and its importance to Oman cannot be underestimated. The success of the first phase of this project is crucial to succeeding phases so it has been imperative to ensure our plans are in line with projected market trends and forces.
“ASIT is pleased to announce that the master-plan and initial artists’ impressions of the first phase will be revealed in October. The first tranche of retail sales will commence in November. Construction on site has already begun and vertical construction is scheduled to commence in December 2007.” Visuals and details of the masterplan for the first phase of the city will be unveiled in the coming weeks and will show the unique architectural style and approach to urban planning which will characterise the Blue City project.

The first phase represents a substantial standalone project in its own right but it is also intended to fit as a component of the overall development. As the cornerstone of the new city, the first phase of the development will set the tone and style for what is to follow and will offer wider opportunities beyond freehold property, believes Zadjali.

Oman moves up in ranking

For the first time since 1985, the sultanate has made it to the top 20 economically free countries in the world. Oman is ranked 18th in the global index and is well ahead of the world average, according to the Economic Freedom of the World: 2007 Annual Report released by the Fraser Institute.

The report, prepared by the institute in cooperation with independent research organisations in 71 nations, including the International Research Found-ation in Oman, measures the extent to which individuals and families are free to make their own economic decisions on where to work, what to buy, what to sell, where to invest and on entrepreneurship.

Fred McMahon, director, Centre for Trade & Globalisation Studies, The Fraser Institute, releasing the report said Oman has been consistently ranking high in the index over the last few years with its path-breaking initiatives, moving up in points and rank every year.

Arab Telsat exhibition

Arab Telsat 2007, a specialised exhibition and conference on telecommunications and information technology, will be held for the first time in the sultanate from October 28-30.

Says Melwin D’Cunha, project manager of Omanexpo, a leading organiser of exhibitions and conferences, "As a major event for the ICT and telecommunications industries in the region, Arab Telsat 2007 will showcase the latest developments in these highly important fields."

The Arab Telsat exhibition will present the most advanced products, technologies, equipment and solutions that drive cutting edge developments in the industry. The international conference that will be held in conjunction with the exhibition will bring together industry professionals for a thorough discussion of the opportunities and challenges in the field as well as the market realities that will shape the future of the industry.

Oman Air to start flights to London Gatwick

Oman Air seems to have a strong tail wind blowing behind it. The airline seems to be adding new routes to its itinerary almost by the day. The flag carrier has announced plans of flying daily non-stop flights seven days a week from Muscat to London Gatwick from November 25. Says Ziad al Haremi CEO, Oman Air, “London is one of our prime markets, and Gatwick offers an alternative to the highly popular Heathrow services. Oman Air is spreading its reach to exciting new destinations to cater to increased demand from a diverse group of travellers.” The Muscat-London Gatwick flight is a part of Oman Air’s route expansion programme. This will reinforce the carrier's position as long haul airline. The airline will use A330-300 six days of the week and an A310-300 on Sundays. Complimentary limousine services will be offered to its business class and gold card frequent flyers while departing and arriving in London.”

In Person

As Eqarat.com, the UAE-based real estate solutions provider enters Oman in a joint venture with Al Balushi Investments of Oman and Kuwait's Al Arabiya Real Estate Company, its CEO, Ali al Rahma, is upbeat about the company's prospects in the new market.

How is Eqarat.com structured in Oman?

Eqarat.com Oman is an equal joint venture between UAE-based Eqarat.com, Al Balushi Investments of Oman and Al Arabiya Real Estate of Kuwait in which all three parties will hold 33.3 per cent each.

What is the reason behind naming the company Eqarat.com?

We started off nearly 16 years ago as a real estate company serving the UAE, and Dubai in particular. We added .com to our name in 2001 because of the changing dynamics in the market using the Internet as one of our sales tools.

Do you see yourself at a disadvantage in Oman on account of being a late entrant and so many established players in a market smaller than Dubai?

I don't think so. We know there are several established players here, but they are only a handful compared to Dubai where there are over 2,100 players. Despite competition we are number three there. The real estate boom in Dubai started only in the last four to five years. Oman has just started moving in that direction with so many integrated tourism projects being launched and a lot more in the pipeline. This is where we come into play.

Will you be entering into arrangements with developers of Salam Yiti and The Blue City?

We are going to tap each and every segment of the market. We have identified our targets. We are in the process of planning and we will be ready in a month's time.

What is Eqarat.com's USP?

For us transparency is very important and we look at it from a customer's point of view. We are confident of our system and focus on customer service. A lot of agents lose sight of that aspect and concentrate on clinching the sale rather than customer service.

Has Eqarat.com outlined expansion plans?

Eqarat.com simultaneously launched operations in Jordan and Oman in September within a week of each other and will move into Kuwait in December. We have lined up aggressive expansion plans in the coming year. In the first quarter of 2008 we have plans to expand into Saudi Arabia, by the third quarter in Morocco and by the year-end in UK and India. If everything goes well, we plan to list in Dubai by 2010.

Do you see a fallout on the real estate market in the Middle East as a result of the sub prime crisis in world markets?

No. In fact, the sup prime credit crisis in the US has worked to our advantage. We have seen investments and funds returning back to their source, which is the Middle East. I can also assure you that you will not see a property bubble because the region has strong growth fundamentals.