al jawhar

Issue 12. Vol 1

Our Message Executive Summary Market Update Real Estate 2017 Budgets Oil and Gas Exclusive Interview

Feature Story Travel Corner News

CONTENTS
OUR MESSAGE ... 3

EXECUTIVE SUMMARY ... 5

Austerity plan begins to bear
fruit for Oman

MARKET UPDATE ... 7

GCC stocks back on
investors radar

REAL ESTATE ... 9

Investors increase focus on
Oman property

2017 BUDGETS ... 12

GCC states remain prudent despite
raising 2017 budget

OIL AND GAS ... 15

Global oil demand seen
picking up

EXCLUSIVE INTERVIEW ... 18

OAMC has bold vision for
Omans airports: Al Hosni

FEATURE STORY ... 20

Staying fit and healthy
in Oman

TRAVEL CORNER ... 22

Where to go in MENA for your
next golf holiday

NEWS ... 24

2
OUR MESSAGE
Dear Valued al jawhar Client,
Oman welcomed 2017 on a positive note, as it continues
to embrace prudent spending and diversification
initiatives in a bid to drive the economy forward.

This years budget targets a revenue of OMR 8.7 billion,

which is 1.16% higher than that in 2016. The 2017

expenditure stands at OMR 11.7 billion, or 1.7% lower than last years allocated
spending.

The overall focus of the 2017 budget comes in line with the approach adopted
over the past couple of years that of rationalising spending and enhancing
operational efficiency. In addition, the government is implementing the National
Programme for Enhancing Economic Diversification (Tanfeedh), in order to
improve the Sultanates investment climate.

So far, we have seen encouraging developments, following the oil markets

gradual recovery. Oman crude price is now well positioned above the average USD
45-per-barrel mark set in the 2017 budget.

Despite oil prices returning to health, cautious optimism prevails in the GCC
region, with the International Monetary Fund (IMF) urging governments to cut
back on spending and continue diversifying their respective economies.

Omans bold reforms, which were geared towards limiting the impact of falling oil
prices, have been lauded by the IMF. With low debt-to-GDP ratio and access to
strategic reserves, sustainable economic growth remains the focus for Oman.

Meanwhile, bank muscat Premier Banking greeted the New Year with a focus on
enhancing the distinct banking experience of our customers. At a time when
financial rewards and incentives are a premium, the bank sprung a surprise by
retaining the biggest prize of OMR 10 million for the 2017 al Mazyona Savings
Scheme.

asalah Priority Banking customers also have a reason to celebrate this year with
exclusive chances to win OMR 30,000 every month; OMR 100,000 every quarter;
and OMR 250,000 at the end of 2017. al Mazyona prizes, which are reserved for
al Jawhar Privilege Banking customers, include OMR 20,000 monthly prizes and
OMR 50,000 quarterly prizes.

The banks parting gift for 2016 was al Mazyona year-end prizes totalling OMR
1 million and shared by two customers as well as a OMR 500,000 cash prize for
a lucky asalah customer.

In addition, the 2017 al Mazyona Savings Scheme introduced an exciting salary

transfer scheme, which would reward winners with OMR 500 every month for a
year. This is the first time a prize scheme offering a fixed monthly salary prize is
being introduced in Oman. To qualify for this scheme, customers need to transfer
their salary of OMR 500 or more to bank muscat. Around 15 customers will be
rewarded every month.

3
OUR MESSAGE

We are also honoured to receive accolades from international institutions. In

recognition of our excellent performance and strategic initiatives, we were named
the prestigious Best Private Bank in Oman awards by Euromoney and
Emeafinance. Earlier, we won the Best Private Bank in Oman award by Global
Finance.

With regards,

Abdulnasir N. Al Raisi,
Deputy General Manager Premier Banking

4
EXECUTIVE SUMMARY

Austerity plan begins to bear

fruit for Oman

Reducing budget deficit highlighted
the Sultanates commitment to survive
and thrive in this economically
challenging period.
It is time to repair the fiscal buffers and
replenish the reserves.
The efforts are paying off as the Muscat Securities Market was the
second best performing market in the Gulf region. Investors see Omans
long-term economic potential and prospects for higher corporate
earnings.
Management consultant KPMG stated that the countrys GDP growth of
2% is achievable despite strong economic headwinds as the government
expeditiously implements its Tanfeedh and privatisation programmes.

The International Monetary Funds (IMF) praise
for Omans austerity budget underscores the
governments prudent decision to bring down
deficit even as crude oil prices increase and the
global economy shows signs of recovery.
The Omani government has decided to
persevere with an austerity plan that it outlined
two years ago. Such approach aims at
rationalising spending and enhancing its
efficiency, as well as keeping public spending
within sustainable levels, the budget
statement said.
Indeed, there are high hopes from the Tanfeedh initiative or the National
Programme for Enhancing Economic Diversification, which was
introduced to create a more attractive investment climate and attract
domestic and foreign investors.
The first phase of Tanfeedh targets the manufacturing, tourism and
logistics sectors, with 121 initiatives to be implemented from 2017, and
is expected to boost GDP by OMR 1.7 billion, while generating 30,000
jobs.
Such stimulus will help Oman weather any global and economic
disruptions that 2017 may bring.

In addition, the government intends to regularly

review non-oil revenues and raise their GDP
contributions so as to reduce the Sultanates
dependency on oil revenue.

Allison Holland, IMF mission chief to Oman,

told the media that efforts to reduce the deficit
are very welcome.

While higher oil revenues are expected to

contribute substantially to reduce the deficit, it
is encouraging to see the governments
commitment to take additional measures to
reduce government expenditure and increase
non-oil revenue, she said.

5
MARKET UPDATE
GCC stocks back on
investors radar
Dubai and Omans resilience
shone through in 2016, as the
GCC equity market posted a
last-minute recovery, thanks to
recovering oil prices.
Gulf markets rallied hard in the fourth
quarter of last year to emerge mostly in
the black, despite weathering tough
economic conditions for much of the
year. The S&P Pan Arab LargeMid Cap
Index soared 7.4% in 2016, on the back
of a spirited growth spurt of 5.8% in
December alone.
All GCC stock markets were upbeat in
the last month of 2016 after OPEC and
non-OPEC members agreed to
collectively cut crude oil output by
around 1.8 million barrels per day (bpd).
Brent crude prices galloped ahead on
the news, rising to USD 57 per barrel at
one point in December, nearly doubling in value from its February low of
USD 28 per barrel. A Reuters poll of 29 economists forecast crude oil
prices to hit USD 60 per barrel in 2017.
OPECs concerted action to balance the market and its ability to bring in
non-OPEC producers such as Russia, Mexico and Oman, among others,
suggest that oil inventories are expected to deplete and markets will move
swiftly to a price range that would be comfortable for both producers and
suppliers. Overall, Brent crude jumped 12.6% in December, finishing the
year 52.4% higher than at the start of the year.
Other catalysts were expansionary budget announcements from Saudi
Arabia, Qatar and UAE in December that suggested Gulf economies were
putting the worst of the economic downturn behind them, and focusing on
growth once again.
Investors have taken that as a cue that its time to return to markets. The
month also saw Qatar emerge as the best-performing market, rising 6.6%
to climb out of the red and eke out a 0.1% gain for the year.
MUSCAT BUCKS THE TREND
Oman was the GCC regions second best-performing bourse not only in
December, but the entire year. The Muscat Securities Market (MSM)
expanded 5.4% during the period, taking its overall growth for the year to
7%.
7
Indeed, the MSM has emerged as the regions most improved
market performer, turning around a 14.8% decline in 2015 to a
7% gain in 2016.
All the other GCC markets also fared well in December, with
Saudi Arabia jumping 3%. Kuwait weighted 3.5%, Dubai 5.1%,
and Bahrain with a nearly 4% increase.
The Gulf markets outperformed their emerging and frontier
market peers, during the month, comfortably outpacing MSCI
Frontier Markets Index (2.9%), MSCI Emerging Markets Index
(decline of 0.1%) and the US S&P 500, which grew a modest
1.8% in December.
For the whole year, Dubai was unequivocally the top performing
market in the Gulf, rising 12.1% in 2016. The strong
performance was partly attributed to its diversified economy,
which helped reduce its exposure to oil prices. In addition, its
tourism and logistics sectors remained stable despite a regional
slowdown.
After Oman, Abu Dhabi also grew a respectable 5.6% last year,
as the UAE capital also managed to weather the economic
downturn thanks to its fiscal strength.
Saudi Arabia was the most volatile market throughout the year,
vacillating from a 13.2% decline in January 2016 to surges in
April (9.4%) and November (16.4%), as investors responded to a
spate of news from the Saudi government.
The kingdom launched an ambitious National Transformation
Plan to reduce its dependence on crude oil. It also initiated a
privatisation process spearheaded by a public offering of Saudi
Aramco, the worlds largest crude oil exporter. However, Saudis
economy also bore the brunt of a decline in low
oil prices, hurting business and consumer
sentiment.
HIGH YIELDS
Middle East markets are also currently
enjoying some of the lowest price-to-earnings
ratio and high dividend yields anywhere in the
world.
Dubais 8.7x price-to-earnings is the lowest in
the region, with Bahrain (9.3x) and Oman (9.5x)
also among the most inexpensive markets in
the world. In contrast, the emerging market
index boasts PE ratio of 16x ratios and
developed markets at 21.8x PE ratio. Kuwait is
the most expensive market in the Gulf region
at 16.3x, while the Saudi Tadawul market
stood at 13.4x at the end of last year.
The markets with some of the lowest
price-to-earnings ratio are also enjoying some
of the highest yields. Abu Dhabi led the region
in dividend yield a measure that expressed
dividend as a percentage of a current share
price with a 5.6% yield. Oman was a close
second with yield averaging 5.1% last year,
followed by Dubai with 4.4% yield. Among
major global markets, only Czech Republic
Stock Market had a higher yield at 6.6%,
according to Star Capital AG.
With a spring in their steps, thanks to an oil
price boost, Gulf markets are hoping that they
can continue to rally higher this year.
8
REAL ESTATE

Investors increase focus on

Oman property

The real estate sector remains a

vital component of the
Sultanates economy, as it
posted triple-digit growth in
2016.

The trade value of property in Oman

surged a whopping 124.3% in the first
10 months of 2016, as investors piled
into the sector.

Data from the National Centre for

Statistics and Information (NCSI) show
real estate traded in the country
reached OMR 7.67 billion between
January and October last year,
compared to OMR 3.4 billion in the
same period in 2015.

The trade value of mortgage contracts number of properties issued also slipped 1.5% to 196,651 between
also shot up 186% during the period to January and October, data shows. In addition, the number of properties
OMR 6.8 billion, as against OMR 2.3 sold to GCC citizens declined 24.5% to reach 1,480, as low oil prices
billion the previous year. compelled them to hold back on new investments.

Despite the surging values, the number
of sales contracts fell 9.8% during the
period to 59,997, compared to 79,613
in the first ten months of 2015. The
Meanwhile, the number of residential lands granted by governorates fell
11.4% in the first 11 months of 2016.
While Muscat (up 22%), Musandum (up 527% from a low base) and
Adh-Dhahirah (up 85.6%) were among the governorates that saw a surge
in government land grants, Dhofar (down 66.4%), Al-Batinah South (down
33.6%) and Ash-Sharqiyah South (down 25.4%) saw significant declines.

RENTS FALLING

Despite the surge in real estate sales activity, rental rates were more
subdued in the key market of Muscat.

The third quarter saw average residential rates in the capital city declining
2.3%, adding to the 3.9% fall in the second quarter, and taking the drop in
the first nine months of 2016 to 8.1%. Year-on-year rents were also
depressed by 11.6%, according to real estate brokerage Cluttons.

In the case of both villas and apartments however, the rate of rental
decline appears to have moderated in the third quarter, following a
challenging summer, Cluttons said.

This, together with the underlying weakness in the economy, has meant

9
that the summer months were among the quietest
experienced by the market in recent years. Still, the
weakness in the residential market has persisted well
over a year now with demand gradually ebbing over
the course of 2016.
The real estate sector has been impacted by the wider
slowdown in the economy, which has seen
redundancies and short-term lethargy in economic
activity as the Sultanate absorbed the impact of low
crude oil prices.
But analysts believe these are short-term hiccups that
wont materially impact the structural strength of the
real estate sector, or the desire by tenants and home
owners to secure quality housing, which remains in
short supply.
Indeed, Cluttons believe the limited amount of new
supply in in-demand areas, such as Al Mouj, will
support rental prices in those areas.
In spring last year, the property consultancy predicted
that overall residential rents in Oman will decline by
10% to 15% in 2016, which may be a boon for
consumers as they channel spending into other areas,
including retail and consumption.
Omani real estate was also under pressure since the
government last year enforced a 3% to 5% fee on all
tenancy agreements. An official of the Muscat
Municipality Council, however, told the media that
another hike was unlikely to be implemented.
So far, we have not discussed the reviewing of rental
fees this year. Most probably, there will be no increase
this year, said Salim Mohammed Al Ghamary, a
Muscat Municipality Council member.
COMMERCIAL SPACE
Commercial real estate in Muscat has held up despite
the economic slowdown, which speaks to the
fundamental strength of the economy.
Sought-after areas such as Qurum and Shatti Al
Qurum have seen rents hold up as they are home to
some of the citys best Grade A offices, which remain
in limited supply.
However, other areas such as Al Khuwair have been
under pressure, as tenants have taken advantage of
the slowdown to move to higher grade spaces at
lower prices.
Some new projects were also announced over the past
month, as investors continue to see Oman as a viable
real estate investment destination.
Al Sedrah Real Estate unveiled its latest residential
project, Lotus Complex at Ras al Hamra in Qurm. The
project will feature 110 apartments 40
one-bedroom apartments, 65 two-bedroom
apartments, and five three-bedroom apartments.
The residential complex is a five-floor development
featuring a shopping centre. Al Sedrah also completed
the Al Yasmin residential and commercial complex at
Al Khuwair; the Oasis Mall Complex at Madinat Sultan
Qaboos; a logistics complex at Barka; and the InterCity
Hotel at Salalah last year.
Another domestic developer Zawaya, also launched an
USD 18.18 million project in Madinat Sultan Qaboos,
featuring 87 units of office space and commercial
units.
Omans real estate sector will continue to be steady,
and while low rents are hurting developers and
investors, they give tenants more disposable income
to spend elsewhere, which is vital to stimulate the
wider economy.
10
2017 BUDGETS
GCC states remain prudent despite
raising 2017 budget
Increasing infrastructure
spending and slashing deficit will
be the priority for most countries
in the Gulf region.
Governments across the GCC region are
unveiling their respective budgets for
2017, with the goal of increasing
spending in key areas of the economy,
despite remaining prudent in an era of
subdued crude oil prices.
OMAN'S BUDGET: STRIKING A
BALANCE
Omans 2017 budget, announced on
January 1, aims to strike that balance,
even as energy prices start to
accelerate.
The overall framework of the 2017
Budget comes in line with the approach
adopted in the last two years. the
Ministry of Finance said in a statement.
Such an approach aims at rationalising spending and enhancing its
efficiency, as well as keeping public spending within sustainable levels.
The ministry is keen to raise the contributions from non-oil sources as it
seeks to wean itself off oil revenue. In addition, the ministry wants to
enhance government revenue sources and use income from higher oil
prices to slash deficit, before embarking on a spate of new developments.
Despite the fact that deficit-to-GDP ratio is considered low, according to
international indicators, and can be financed by global debt markets;
reducing deficit is one of the priorities specified by the budget due to
deficit accumulation, the ministry said.
Government spending in 2017 is projected to reach OMR 11.7 billion with
revenues at OMR 8.7 billion, leading to a deficit of OMR 3 billion. In
contrast, last years deficit stood at OMR 3.3 billion, based on spending of
OMR 11.9 billion and revenues of OMR 8.6 billion.
While reducing the budget deficit remains a key priority, the Sultanate also
aims to rationalise public spending, revitalise non-oil revenues and raise
their contributions in total government revenues and encourage private
sector investments.
PRIVATE SECTOR PARTICIPATION
Such measures should help ensure Omans GDP expands at around 2% in
12

2017, with non-oil activities leading the way with a
4.7% jump in economic growth, according to
government projections. The authorities predictions
are more conservative than the 2.6% growth forecast
by the International Monetary Fund for 2017.
A key plank of Omans 2017 budget is the National
Programme for Enhancing Economic Diversification
(Tanfeedh), which is expected to submit
recommendations to help reduce dependence on
hydrocarbon revenues, and improve the countrys
investment climate.
Another major aspect of the budget is enhancing the
role of the private sector and increasing investment
rates in GDP.
Focusing on investing in promising and productive
sectors specified in the Ninth Five-Year Plan. The aim is
to enhance economic diversification, increase
employment rates, achieve medium-term fiscal and
economic stability, and strengthen social
development, the budget statement noted.
It is clear though that Oman entered the economic
downturn from a period of strength and that helped
the country manage the slowdown, and even raise
funds with relative ease during the period.
Omans fiscal strength ensured that the country was
able to obtain funding from external sources. The
government issued OMR 1.54 billion in international
bonds last year, and secured a syndicated loan of OMR
1.92 billion. In addition to issuing OMR 192 million of
Islamic bonds, as well as loans worth OMR 769 million
provided by an export credit agency.
Borrowing from domestic and external sources, and
issuance of Islamic bonds, development bonds and
treasury bills accounted for 72% of total funding, while
the rest was covered by drawing on reserves.
However in 2017, the Omani government is aiming to
rely only on external borrowing to finance
development projects and budget requirements.
SAUDI BUDGET: INCREASED SPENDING
Saudis more expansionary budget follows the theme
of spending, while maintaining fiscal discipline, to
revive the economy.
The kingdoms spending in the 2017 fiscal budget is 6%
higher compared to 2016 and 8% higher than 2016
actual, with total spending of OMR 91 billion.
If actual 2017 spending comes in line with the
budgeted OMR 91 billion, this would imply an increase
in spending for the first time in the last two years
(2015/2016).
Spending on military and security services constitutes
the largest single share in this years budget, at 32%,
followed by education (23%). An allocation accounting
for 12% has been introduced to support the National
Transformation Plan (NTP) initiatives to the tune of
OMR 4.3 billion, compared to the OMR 923 million
spent in 2016.
13
QATARS BUDGET: CUTTING DEFICIT
Qatars budget for 2017 also aims to reduce budget
deficit, as the government channels funds to key
infrastructure investments, including projects for the
FIFA World Cup.
The Qatar Ministry of Finance plans to cut deficit by
38.9% from OMR 4.9 billion in 2016 to OMR 3 billion in
2017.
The deficit is expected to decline due to a pickup in
government revenues and continued rationalisation of
current expenditure. However, capital spending is
expected to increase in 2017 to support Qatars
preparation for the World Cup and economic
diversification objectives, according to Qatar National
Bank.
The government has also outlined in the budget an
intent to further accelerate investment and
infrastructure spending in the coming years.
Like Oman and Saudi Arabia, the Qatari government
aims to finance the deficit through domestic and
external debt instruments.
UAE BUDGET: PRUDENT PLANS
In December, the UAE's Federal National Council
approved a OMR 5.1 billion budget for 2017, focusing
on education, social development and health.
The budget is marginally higher than the OMR 5.08
billion budget set for 2016, highlighting fiscal discipline
by the UAE despite an improvement in crude oil prices
and prospects of a rally in energy markets in 2017.
Just over a fifth of the budget is to be spent on
education, while healthcare (8.6%), public sector wages
(8.2%), social development (6.6%) and housing (3.3%)
will get significant allocations.
The UAE federal budget typically makes up around 14%
of total fiscal spending in the country, with the seven
emirates also unveiling their own respective budgets.
Sharjah approved a record OMR 2.3 billion budget, with
an eye on infrastructure spending to boost growth. The
emirate, which has the third largest economy in the
UAE after Abu Dhabi and Dubai, aims to raise
infrastructure spending by 7% from last year, making
up 30% of the budget.
Sharjahs government expenditure in 2017 will rise 3%
higher than in 2016, while revenue is expected to
surge 7% compared to last year. The budget aims to
create 1,800 new government jobs for nationals.
Dubai also plans to raise infrastructure spending this
year, with a OMR 4.9 billion budget for this segment
and aims to create around 3,500 jobs. The budget will
see a 27% jump in the allocation to the construction
sector, as the emirate gears up for Expo 2020.
Dubai is expecting a deficit of OMR 262 million, with
total expenditure of OMR 4.95 billion, up from OMR
4.83 billion for 2016. The deficit represents a mere
0.6% of the emirates total gross domestic product
(GDP).
14
OIL AND GAS

Global oil demand seen

picking up

The crude oil market is starting

the new year on a positive note,
with prices likely to jump further
as worldwide consumption
gathers pace.

While global crude oil markets are

fixating on supply, some good news is
emerging from the demand side in
early January.

Chinas December crude oil imports set

a record at 8.6 million barrels per day
(bpd), up 8.8%, month on month, or
9.6%, year on year. This has sent
full-year imports to 7.63 million bpd on
average compared with 6.73 million
bpd in 2015.

For 2017, with declining domestic

crude production, increasing SOE
(state-owned enterprises) refining
capacity, and potentially up to 100
million barrels of strategic storage to
fill, Chinese crude imports are again
likely to grow materially, supporting
crude prices, according to Citibank.
Non-OPEC countries including Russia, Oman, Mexico and Kazakhstan have
The increase in crude oil demand also agreed to cut as much as 600,000 bpd of production collectively,
comes at a time when the Organisation which should accelerate the balancing of markets.
of Petroleum Exporting Countries
(OPEC) set a 32.5 million bpd OPEC has revised its growth estimate for global oil demand to 1.15 million
production agreement with bpd in 2017, taking total demand to average 95.56 million bpd. The
country-level commitments that organisation expects OECD states to contribute some 0.15 million bpd to
exceeded market expectations. oil demand growth in 2017, while non-OECD will contribute the bulk of
growth with 1 million bpd.
OPEC announced detailed plans to
reduce crude production by
approximately 1.2 million bpd to bring
US DEMAND ON THE RISE
its ceiling to 32.5 million bpd effective
Overall oil and liquid fuels demand in the US is also set to increase by
January 1, 2017. The adjustment would
300,000 bpd in both 2017 and 2018, led by growth of gasoline and
be in effect for six months, with an
distillate fuels. Elsewhere in the developed world, demand in Europe may
option to be adjusted and extended for
taper as a combination of political changes and switch to renewables
another six months at the next OPEC
reduce crude oil demand.
meeting on May 25, 2017.
Among other major consumers, China and India are expected to lead
demand for oil in the future.

15
The US Department of Energy expects China's consumption
growth to also average 300,000 bpd in both 2017 and 2018,
led by consumption of petroleum and other liquid fuels,
Meanwhile in India, consumption growth averaging 200,000
bpd in both 2017 and 2018 is expected to result from increased
use of transportation fuels and of naphtha and ethane for new
petrochemical projects.
In addition to increases in China and India, consumption
growth in the Middle East is forecast to average 0.3 million bpd
in both 2017 and 2018, up from 0.1 million bpd in 2016, the
Energy Information Administration (EIA), the statistical arm of
the US Energy Department, said in its short-term energy
outlook.
Saudi Arabia is a key contributor to this growth. Although
Saudi Arabia decreased the use of crude oil for electricity
generation in 2016 by burning more natural gas, the expected
increased use of natural gas as a petrochemical feedstock in
2017 and 2018 will once again result in an increase of direct
crude oil burn for electricity generation, EIA noted.
INVESTMENT IN OIL SPENDING
Another major reason why markets are
expected to balance is the decline of
investments in the oil and gas sector.
Energy consultancy Wood Mackenzie expects
the investment cycle in 2017 to show the first
signs of growth since 2014 and final
investment decisions (FIDs) will double,
compared with 2016.
"2017 will demonstrate how efficient the oil
and gas industry has become; showing
projects in better shape all round," said
Malcolm Dickson, a principal analyst for
Upstream Oil and Gas for Wood Mackenzie.
The consultancy forecasts global upstream
investments to rise OMR 173 billion, 3% higher
than 2016, but still 40% below the heady days
of 2014.
"Some governments will be tempted to
increase tax rates, but those with
uncompetitive fiscal regimes will have to make
changes to ensure they can attract still-scarce
new capital, Wood Mackenzie said. Getting
the risk-reward balance right will be a critical
factor in attracting scarce investment capture
in 2017, even for resource-rich hotspots such
as Iran and Mexico."
Barclays Capital expects international oil
companies (IOC) spending in the Middle East
to rise 2.6% in 2017, after a brisk pace of 8.8%
in the depths of the oil price crisis in 2016.
Overall, spending by IOCs would rise to OMR
155 billion in 2017, a 7.3% increase over the
previous year.
With OPEC putting a floor on oil prices,
operators have greater confidence to drill and
complete, although the early stages of the
recovery will be uneven, Barclays noted.
16
EXCLUSIVE INTERVIEW
OAMC has bold vision for
Omans airports: Al Hosni
Oman Airport Management
Companys CEO Aimen Ahmed Al
Hosni says their efforts to
modernise the Sultanates
airports are starting to bear fruit.
Devising a strategy that will entice
travellers to visit Oman and bask in its
pristine beauty requires a collaborative
effort between the public and private
sectors. One of the agencies at the
forefront of this initiative is Oman
Airports Management Company
(OAMC). As a government company,
OAMC is responsible for the
management and operation of Omans
airports.
Aimen Ahmed Al Hosni, CEO of OAMC,
discusses the steps taken by the
company in delivering world-class
services in its facilities, and the
benefits those improvements will bring
to Oman. He also touched on the
challenges they had to overcome, as
they position the Sultanate as a
tourism gem in the Arabian Gulf.
WHAT WERE OMAN AIRPORT MANAGEMENT COMPANYS
VISION FOR THE SULTANATES AIRPORTS?
Last year was a significant year for OAMC as we created a new vision with
more challenging goals than before. In 2016, we focused on a particular
mission and have created the goal that Omans airports will be among the
best 20 airports in the world by the year 2020.
WHAT CHANGES AND IMPROVEMENTS HAVE BEEN MADE
AT OAMC?
One of the most significant improvements in 2016 for OAMC was the
amendment of the administrative structure of the company, as well as the
approval of flexible working hours, which aligned our policies with
international standards. We also signed a number of agreements that will
ensure the achievement of OAMCs goals.
We have enhanced the Muscat International Airport with additional
supporting projects and solutions to accommodate the rapidly growing
number of travellers, by ensuring the flow of work and flexibility of the
facilities. We hope to create a smooth travel experience for all the airports
passengers.
WHAT WERE OAMCS BIGGEST OPPORTUNITIES IN 2016?
OAMC had the opportunity to coordinate with the strategic logistic plans
of the government to strengthen the national economy, diversify income
sources and achieve sustainable development. This is being achieved by
improving the investment and economic climate of the Sultanate.
However, the biggest opportunity was the membership of Oman in the
Global Council of Airports, representing Asia and the Pacific. This huge
achievement is an indication of Oman airports global status. It is both an
opportunity and recognition, indeed. This will open up many partnership
prospects and an exchange of experiences with other major airports
around the world.
WHAT CAN WE EXPECT FROM OAMC IN THE FUTURE?
By implementing OAMCs new strategy, we expect growth to continue
over the next five years. We have improved services and facilities in the
Salalah Airport, which now boasts state-of-the-art technology is now
equipped to handle an increased flow of passengers. In addition, we are
expected to transition to the new Muscat International Airport in the
foreseeable future.
With this, and our coordination with strategic partners, we are working
towards our goal of Omans airports being among the best 20 airports in
the world by 2020.
18
It is worth mentioning that transportation movement and air navigation in Muscat International Airport, Salalah
Airport and the regional airports have witnessed a significant growth during 2016. The latest data show that the
number of passengers traveling through Muscat International Airport, Salalah Airport and Duqum has increased
since the end of December 2016 by 17% in comparison with the same period in 2015. The number of passengers
traveling through Omans airports has exceeded 13 million and a steady growth in the number of travellers within
the next five years is expected.

WHAT ARE LESSONS YOU HAVE LEARNED IN LIFE?

As Allah Almighty said in his book: Verily, we shall not suffer to perish the reward of any who do a righteous deed.

Thinking of this verse makes me believe that sincerity, effort, and contributing and giving this country what it
deserves is the true path to success. I ask Allah to increase everyone's faith in us.

HOW WOULD OAMC FARE IN 2017, COMPARED WITH ITS ACHIEVEMENTS IN 2016?

OAMC works to draw an investment policy that is consistent with the governments goals. We hope to attract direct
and indirect investments by promoting opportunities both internally and externally, and through legislations that
guarantee the protection of investors rights.

WHAT IS THE MOST CHALLENGING MOMENT OR TURNING POINT IN YOUR CAREER?

Perhaps one of the most challenging moments in my career was my entry into civil aviation as general manager of
Muscat International Airport though Ive added more to that list of challenges over the course of my career. Until
now, the biggest challenge is being CEO of OAMC. I am proud of our achievements, including opening the new
Salalah Airport. I am also currently working on implementing a strategy of developing clear goals and milestones for
Omans airports, so they can reach our 2020 target. Naturally, this challenge will not be any less difficult than the
future opening of the new Muscat International Airport.

IN YOUR OPINION, WHAT ARE THE MAIN COMPONENTS FOR THE SUCCESS OF ANY PROJECT?

The success of any project requires hard work. Success wont be reached easily and is dependent on several
essential elements and components, including management. Management is considered a crucial component for
the success or failure of any project. The available resources may be deemed sufficient, the employees efficient, but
if there is poor management, the efforts will just lead to failure.

Other important elements of success include empowering the human element of the organisation by creating a
healthy working environment and a sense of passion of work. Human resources are one of the main pillars of the
success of any organisation in any sector.

19
FEATURE STORY
Staying fit and healthy
in Oman
Take advantage of the Sultanates rich
natural landscape, as you remain
committed to your fitness goals.
With its spectacular mountain ranges,
pristine coastlines, and sprawling urban
green spaces, Oman is an outdoor
enthusiasts dream playground. Having
these natural wonders at the
Sultanates doorstep also means your
fitness regime need not be confined
within the four walls of a gym.
Hiking, rock climbing, cycling ,
snorkelling, swimming and scuba diving
have been popular outdoor activities in
Oman. These activities are often
arranged individually or among friends,
but now theres also a growing trend of
fitness groups organising outings,
making it easier for beginners to take
up a new hobby for better health.
If the great outdoors is not your cup of tea, fitness centres across the
country offer a more convenient alternative to getting in shape. Dynamic
fitness classes and personal training programmes are becoming
increasingly popular in the country.
WORKING OUT OUTDOORS
Oman has a topography ideal for outdoor pursuits, even during the
summer season. For example, hiking in the mountains can be enjoyable as
the higher altitudes offer cooler clime. Despite the rough terrain, hiking
remains one of the best ways to enjoy Omans mountainous areas.
Climbing hills or mountains may be hard work, but it engages a range of
muscle groups predominantly the core and lower body while
simultaneously giving you a cardiovascular workout. Besides burning
calories, hiking never gets boring. Skip the gym and explore the beauty and
views Oman has to offer.
There are a variety of hiking routes in and out of Muscat including,
Mattrah, Jebel Shams, Samhan mountain and Majlis Al Jinn Cave. Hiking
route maps are available by the Ministry of Tourism at
www.omantourism.gov.om
20
With its unique and exotic terrain, Oman is also known as one
of the best places in the Middle East for rock climbing and sport
climbing. There are several areas in the country that would
appeal to both beginner and advanced climbers.
Rock climbing is a great full-body workout for those looking to
build strength. It targets your shoulders, biceps and triceps.
Complex climbing also uses the arms and legs, targeting your
core muscles. Virtually every major muscle group is utilised,
providing you with both physical and mental health benefits.
Climbing requires problem-solving skills to tackle new routes. It
boosts self-confidence, as climbers are consistently presented
with new challenges. As they conquer obstacles, they are also
rewarded with breathtaking views.
With an array of places to climb, climbers can find something
within their skill level at many sites including Wadi Tiwi, Wadi
Daykha, Jebel Misth, Jabel Kawr, and Kubrah Canyon.
Another great outdoor workout is swimming and in Oman,
youll be spoiled for choice when it comes to open sea and hotel
beachfront attractions. Access to hotel swimming facilities is
possible either through a fitness membership or day passes.
Swimming has always been known as one of
the best ways to stay fit. It boosts your
metabolism by burning fat, building muscle,
and improving lung capacity without putting
strain on your joints. Some may enjoy the
solitude of swimming alone, while others may
be more inclined to a explore Omans open
waters in a group.
Some of the best places to go for a swim
include Shatti Al Qurum, Bandar Al Khayran,
Yiti and Kalbuh Beach.
Omans winding mountain roads make cycling
an adventure guaranteed to get your heart
racing. Cycling works your glutes, quads and
hamstrings but more than that, it is a great
aerobic exercise for overall weight loss,
typically with lower impact. It is also a great
workout that can help reduce stress, allowing
you to get out, explore, and enjoy the outdoors.
Popular cycling routes in Muscat include the
PDO loop, Muttrah Corniche, Shatti Street,
Qantab Road and Al Khoudh Street.
INDOOR TRAINING
Meanwhile, in gyms, more people are
abandoning group trainings and cardio classes
in favour of personalized training.
The number of people joining martial arts
classes has also increased partly due to the
stress-relieving aspects of this workout.
Individual personal training sessions, as well as
small group sessions in preparation for a set
fitness goal has become more in demand. An
increased number of triathlon and marathon
participants in Oman and the region has also
created a demand for personalised training
sessions to help participants meet their goals,
increase their stamina and strength.
Gyms serious about helping you get in shape
include RX Fitness, Elite Game and the recently
opened Golds Gym in Oman Avenues Mall.
21
TRAVEL CORNER
Where to go in MENA for
your next golf holiday
Practice your golf skills and
enjoy the scenic landscapes in
one of the Middle East and
North Africa regions
well-manicured greens.
What better way to get some exercise
while enjoying nature than by playing
golf? Savour the smell of fresh-cut
grass and the suns warmth on your
skin, as you walk through a sprawling
green landscape. Regardless of your
skill level or age, golf can be a
fascinating hobby to take up.
If youre looking for a golf holiday
destination, you need not look further
than the Middle East and North Africa
(MENA) region. Here are some resorts
to consider:
MARRAKECH, MOROCCO
Set between the Atlantic Ocean and the Atlas Mountains lies the
Amanjena Resort a golfers paradise in Marrakech, Morocco. Just
minutes away from this award-winning resort is the Al Maaden Golf
Course, an 18-hole course, joined by the Marrakech Royal Golf Club, a 27
hole course.
Stay in one of Amanjenas pavilions or maisons with its classical arches,
stone courtyards, lush vegetation and historic gardens dating back to the
1930s. Walk through the resort grounds, covered in date palms and olive
trees, and enjoy the sound of cascading fountains. When you are ready to
take a break from golf, you can explore the ancient city of Marrakech, with
easy access to the Medina.
RAS AL KHAIMAH, UNITED ARAB EMIRATES
As well as luxury hotels and restaurants, the UAE offers great
opportunities for a round of golf. Around 45 minutes away from bustling
Dubai is Ras Al Khaimah (RAK). Steeped in culture and history, this emirate
has over 60 kilometres (km) of white sandy beaches, stunning landscape,
and rich desert plains.
Stay at the Waldorf Astoria with its two 18-hole championship golf
courses, both with top notch golfing facilities and optional private
concierge service. This golf resort is ideal for leisure getaways and its nine
22
NEWS
PSC shareholders agree to defer liquidation
plan
The shareholders of Port Services Corporation (PSC)
have agreed to defer the company's liquidation until
January 2018. PSC held an extraordinary general
meeting (EGM) of its shareholders on Tuesday which
agreed to nullify the decision resolved in the company's
second EGM held on December 7, 2016 to liquidate the
company with effect from January 1. 2017.
OMAN
Orascom to launch projects in Oman, Egypt
Switzerland-based Orascom Development Holding
Company intends to launch new projects in Egypt,
Oman and Switzerland in 2017 involving hotels, malls,
houses and other facilities, its CEO has said.
Khaled Bichara told Zawya Projects that work on the
$300 million City Walk project in Muscat would begin in
the first quarter of 2017.

The PSC will operate and manage PSQ for another year He said the project would be built on land leased from
as the Ministry of Transport and Communications the Omani government for 50 years, and includes a
recently agreed to extend the concession agreement up five-star 123-room hotel, a cinema house, a shopping
to December 31, 2017- Muscat Daily Read More >> mall and offices - Zawya Projects News Read More >>

2% GDP growth achievable for Oman: KPMG
A modest two per cent growth in the Gross Domestic
Product (GDP) in 2017, as projected in Omans State
Budget for the year, is attainable provided the
government makes headway on privatisation reform,
as well as in the implementation of its Tanfeedh-led
non-oil economic diversification strategy, according to
leading audit, tax and advisory services firm KPMG.
The Budget Statement presented by authorities last
week envisions GDP growth at two per cent this year,
aided in part by expectations of an uptick in oil prices.
Non-oil activities, on the other hand, are projected to
rise by 4.7 per cent- Oman Daily Observer
Read More >>
Tehran, Muscat to launch auto
manufacturing plant
Iran's Charge d'Affairs in Oman, Mohammad Totonchi,
said Iran and Oman are in talks to launch and establish
an auto manufacturing plant in this southern Persian
Gulf country.
Speaking to the media on Thursday, Totonchi said Iran
is to build an auto manufacturing plant in al-Duqm
economic zone of Oman.
Simultaneously with holding a large exhibition in Oman
from January 23-27, Iran and Oman will take steps
forward to boost relations, the official added - IRNA
Read More >>

Oman to develop 8 large aquaculture projects

Omans Ministry of Agriculture and Fisheries will

announce within weeks the names of the winners of
large-scale commercial aquaculture projects at eight
sites. The ministry selected these sites for
development in June 2016 and sought applications
from potential investors.

We will tell investors about the successful

applications, and then these companies can start their
feasibility studies and apply for environmental
permits, Dr. Hamed Said Al Oufi, undersecretary of
fisheries wealth at the Ministry of Agriculture and
Fisheries, told Times of Oman - Times of Oman
Read More >>

24

Saudi's SABIC to acquire remaining 50 pct of
Shell venture for $820 mln
Saudi Basic Industries Corp (SABIC) has signed an
agreement to acquire the 50 percent that it does not
already own in its petrochemical venture with Shell
Arabia, a unit of Royal Dutch Shell , for $820 million,
SABIC said on Sunday.
"As per the partnership agreement between the two
companies that stipulates the right of SABIC to renew
or end the partnership by the end of 2020...SABIC
decided to acquire the full stake of Shell, which is 50
percent," it said. - Reuters Read More >>
Abu Dhabi creates $125 billion fund by
merging Mubadala, IPIC
Abu Dhabi's government merged two of its top
investment funds on Saturday to strengthen their
financial clout in an era of low oil prices, creating a
company with assets totalling about $125 billion.
The new fund, Mubadala Investment Co, was formed
by merging Mubadala Development Co and
International Petroleum Investment Co, which own
corporate stakes in the energy industry and other
sectors across the world - Reuters Read More >>
Higher oil prices to aid Gulf external balances
but growth outlook still low: Reuters poll
A rebound in oil prices over the past few months looks
set to improve the external balances of rich Gulf Arab
countries but economic growth will stay low, a
quarterly Reuters poll of analysts found.
Brent crude is now trading around $55 a barrel, up
from last year's average of about $45. If current prices
hold, that will boost Gulf states' export revenues and
ease pressure on their currency pegs to the U.S. dollar.
- Reuters Read More >>
GCC
GCC healthcare construction market grows at
a steady rate
The healthcare construction market in the GCC appears
to be growing at a steady rate as various high-value
construction projects are being developed in the region.
According to the BNC Project Intelligence Database,
there are approximately 709 healthcare construction
projects with a combined estimated value of $65 billion
out of which 133 healthcare projects are each worth
over $100 million. These projects make up almost 80%
of the total value of all healthcare projects in the region.
- The Saudi Gazette Read More >>
GCC insurers under pressure to increase
retention levels for high-rise buildings: A M
Best
The Gulf Cooperation Council (GCC) insurers are coming
under pressure to increase retention levels for high-rise
buildings to demonstrate their alignment of interests
with those of reinsurers, which are now tightening
terms and conditions in view of large number of fire
incidents in skyscrapers, according to A M Best, a global
insurance credit rating agency.
Property insurance is a key component of insurers and
reinsurers market profiles in the GCC markets and has
been a major issue given the frequency of losses
experienced over the past decade, A M Best said in a
report - Gulf Times Read More >>
GCC real estate sector fastest growing in the
world
Dubai, Abu Dhabi and Doha have emerged as the top
three real estate markets in the Gulf Cooperation Council
(GCC) region, said a report.
The GCC region has witnessed rapid economic
development and demographic changes, including the
influx of expatriates, which in turn has increased the
regions overall population. This coupled with a rise in
per capita income has fueled the demand for residential
units in the region, said the real estate review report
issued by Al-Masah Capital. - Arab News Read More >>
26
restaurants will leave you spoiled for choice. After youve had
your fill of golf, head to its the award-winning spa or take
advantage of the on-site water sports. You can also play tennis,
volleyball, ride a horse, or book a desert safari adventure.
Also in RAK are the Al Hamra Golf Club and the Tower Links Golf
Club, which have hosted a number of regional golfing
tournaments. For guests looking to try their hand at golf, the
clubs offer private lessons. Play under the stars at the Al
Hamra Golf Clubs floodlit course.
ANTALYA, TURKEY
Facing the Mediterranean Sea is the Gloria Resorts in Antalya,
Turkey. This network of golf destinations includes the Gloria
Golf Resort, Gloria Serenity Resort, Gloria Verde Resort, and the
Gloria Villas, all of which have access to the Gloria Golf Club.
Designed by the famous golf architect Michel Gayon, the Gloria
Golf Club is the ideal place for a golf getaway. It has the largest
golf course in Turkey, and you can choose from one of the clubs
two 18-hole championship courses or the nine-hole verde
course.
If you are interested in improving your game,
take a lesson at the Gloria Golf Academy where
sessions are available for individuals, groups
and juniors. Outside of golf, you can swim in
the Mediterranean Sea and sunbathe on the
idyll coastline. The resort offers a personalised
service, with a staff member always on hand
to attend to your needs. Relax in a resort pool
or have fun in the Gloria Golf Resorts
Aquapark.
ABU DHABI, UNITED ARAB EMIRATES
Abu Dhabi, the UAE capital, also ticks the right
boxes when it comes to a world-class golf
getaway. Choose among three golf courses,
including Yas Island Links, Saadiyat Beach Golf
Club one of the Gulf regions first beachfront
golf courses designed by renowned golfer Gary
Player and the Abu Dhabi Golf Club, host of
the PGA European Tour Abu Dhabi Golf
Championship.
Stay at the St. Regis Saadiyat Island Resort,
which has access to the Saadiyat Beach Golf
Club. It has a private beach, indoor and outdoor
pool, children pool, tennis courts, and
state-of-the-art athletic club. The additional
perk of your stay is a personal butler service.
EL JADIDA, MOROCCO
If you prefer to be near the water, Mazagan
Beach and Golf Resort in El Jadida, Morocco is
a great option for families looking to relax and
hit more fairways. The resort lies just 7km
from the Atlantic Ocean. It includes tennis
courts, a hot yoga studio, equestrian club,
facilities for a range of beach and outdoor
activities. Explore the local medina, souk, fish
market, as well as the towns historic
architecture, including a Portuguese city.
Mazagans 18-hole golf course is spread over
dunes and valleys in harmony with the natural
topography. Designed by South African golfer
Gary Player, it is Moroccos longest course.
Players of all levels looking to improve their
handicap can schedule individual lessons or
week-long courses at the Mazagan Golf
Academy.
23
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