OER August 2010

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EDITORIAL

Editor-in-ChiefHH Sayyid Tarik Bin Shabib

Group EditorMayank Singh

Assistant EditorVisvas Paul D Karra

DESIGN

Senior Art DirectorSandesh S. Rangnekar

Art DirectorMinaal G. Pednekar

Senior DesignerM. Balagopalan

Senior PhotographerRajesh Burman

PhotographerSathyadas C. Narayanan

Concept and Cover DesignChanjeet Singh

Production ManagerGovindaraj Ramesh

MARKETING

Business HeadJacob George

Senior Advertising ManagerAvi Titus

Assistant Advertising ManagerJinu Mathew Varghese

CORPORATE

Chief ExecutiveSandeep Sehgal

Executive Vice PresidentAlpana Roy

Vice PresidentRavi Raman

Senior Business Support ExecutiveRadha Kumar

DistributionUnited Media Services LLC

OER Presentations

– A Special Report on Electricity Holding Company

Published byUnited Press & Publishing LLCPO Box 3305, Ruwi, Postal Code - 112Muscat, Sultanate of OmanTel: (968) 24700896, Fax: (968) 24707939Email: [email protected]

All rights reserved. No part of this publication may be reproduced without the written permission of the publisher. The publisher does not accept responsibility for any loss occasioned to any person or organisation acting or refraining as a result of material in this publication. OER accepts no responsibility for advertising content.

Copyright © 2010 United Press & Publishing LLCPrinted by Oman Printers

Correspondence should be sent to:Oman Economic ReviewUnited Media ServicesPO Box 3305, Ruwi 112, Sultanate of OmanFax: (968)24707939Email: [email protected]: www.oeronline.com

No 121 August 2010

Arising tide raises all ships is an oft repeated phrase in economic parlance.

The Oracle of Omaha, Warren Buffet summed it up more graphically,

“It is only when the tide goes down that you know who is swimming

naked.” A slowdown or any other crisis doesn’t just separate good leaders

from the mediocre ones it also often brings out the best in true leaders.

Turbulence focuses the mind wonderfully and that is why some of the best ideas come

out during a downturn.

In current leadership research a lot of stress is being placed on contingency or situational

leadership models. While this is not a single theory but different variations of the

same theme, the essential premise of leadership model is that the situation defines the

leadership that is required. A leader is successful only if he can change behaviour and

style in accordance with the needs of the situation. Quite often, a leader who is superbly

successful in one situation may fail completely when the situation undergoes a radical

change. Even people who do not agree with this model of leadership agree on one point.

Crises requires a very different sort of leadership than normal times. And the global

economic crisis tested the leadership mettle of various leaders.

Though there have been lots of busts, slowdowns and recessions in the past, the global

economic crisis was unique in the sense that it tested managerial and leadership skills of

corporate leaders to the limit. And it created havoc across industries and geographies.

The economic history of the 20th century is often seen in terms of pre-Great depression

and post Great Depression. It is likely that when the economic history of the 21st century

is written it will be similarly divided into the pre and post Lehman Brothers era’s.

It is not as if there were no boom-bust-boom cycles prior to the Lehman Brother’s

bankruptcy. It is simply that the global financial and economic meltdown triggered by

the bankruptcy seems to have changed the economic realities of the world forever. The

corollary of this argument is that the norms of leading a company in this new world will

be very different from the rules that were followed in the older days and this calls for

new skills and ideas.

This issue of OER is important not just because it provides insights managing boom-

bust cycles better but it’s insights are pretty timeless. The interviews in this issue have

thrown up some of the most candid observations on leadership and management, and

some rather innovative ideas on how to deal with turbulence.

LEADERSHIP ESSENTIALS

Mayank Singh

To read, click on link at: www.oeronline.comOER -magazine

4 August 2010

SOCIAL CONSCIENCEThanks for the Green issue covering Oman Green Awards. It was great to read about the environment initiatives being undertaken by so many institutions and individuals in Oman. While a lot more needs to be done to promote environment consciousness in Oman,

OER has taken the right step with Oman Green Awards. The Awards is a great platform to disseminate information about such measures and to encourage others to follow suit. I really admire the efforts being made by schools like Indian School – Nizwa and American British Academy in fostering environment

awareness amongst its student as it will go a long way in creating a greener Oman.

Salma al Balushi on e-mail

Write to us with yourcomments/feedback at: [email protected]

His Excellency Mohammed Nasser Al-Khasibi, Secretary General of the Ministry of National Economy and

Chairman of ITA and TRA unveiled Progress, the prestigious annual publication from United Media Services (UMS). His Excellency was happy to launch Progress, especially as it coincides with the celebrations for the 40th Renaissance day. Speaking on the occasion His Excellency said, “This book highlights the achievements in the Sultanate over the past forty years and will be an important reference point for researchers who wish to know about what has been achieved during this period. Progress documents the Sultanate’s achievements through letters and images and is sure to enrich Oman’s library.”

The unveiling ceremony was attended by Sandeep Sehgal, Chief Executive, UMS; Alpana Roy, Executive Vice President, UMS; Mayank Singh, Group Editor, UMS; Khalfan Al Rahbi, Deputy Editor, Alam Aliktisaad Wala’mal and Talal Al Rahbi, Chief of Information and Awareness Division, ITA. Says Sehgal, “Progress has chronicled the Sultanate’s social and economic growth for the last 16 years. On the 40th anniversary of the Blessed Renaissance, we humbly dedicate this year’s edition to the visionary leadership and guidance of His Majesty Sultan Qaboos bin Said.”

Progress 2010-2011, takes a look at 40 landmark achievements that have defined the Sultanate’s march towards develop-ment, modernisation and prosperity. These pages give a bird’s eye view of Oman’s

Progress unveiled by HE Mohammed Bin Nasser Al-Khasibi

PUBLICATION

transformation from an underdeveloped and isolated country to a developed and modern nation. This year’s edition also stands out for its exhaustive coverage of various sectors like Oil and Gas, Banking and Finance, Capital Markets, Education and Healthcare, Insurance, Agriculture, Retailing, Aviation, Information Technol-ogy, Real estate, Telecom, Manufacturing, Power, Infrastructure and Tourism. Apart from top draw articles, this edition of Progress stands out for contributory pieces from a number of ministers.

HE Ahmed bin Abdulnabi Macki, Minister of National Economy and Deputy Chairman of the Financial Affairs and Energy Resources Council says, “Significant economic achievements have been made, mainly by adopting prudent economic management of the

oil wealth to improve the macroeconomic fundamentals, strengthening the financial system, and advancing the economic diversification programme.”

HE Maqbool bin Ali Sultan, Minister of Commerce and Industry writes, “The Ministry is trying its best to accomplish its goals in all crucial sectors such as commerce, industry and minerals.”

Progress has seen an overwhelming participation of the corporate sector. Leading companies from various sectors which have contributed to the development and growth of Oman have showcased their achievements and felicitated His Majesty Sultan Qaboos bin Said on this momentous occasion. The 2010 edition with its variety of content and pleasing layouts is sure to appeal to a cross section of readers.

His Excellency Mohammed Nasser Al-Khasibi, Secretary General of the Ministry of National Economy unveiling Progress/Al Takkadum along with Sandeep Sehgal, Chief Executive, UMS. Also seen in picture (from right to left) are Alpana Roy, Executive Vice President, UMS; Khalfan Al Rahbi, Deputy Editor, Alam Aliktisaad Wala’mal; Talal Al Rahbi, Chief of Information and Awareness Division, ITA and Mayank Singh, Group Editor, UMS

6 August 2010

24PERISCOPEThe coming rally in emerging markets!Strong fundamentals and a low downside risk make emerging markets an attractive proposition, writes Matein Khalid

52OIL & GASMaking its presence feltA report on how AL-GHALBI International has grown from strength to strength as a reliable contractor and service provider for the Oil & Gas industry

BEYOND BOARDROOMS

Striking the perfect balanceWasila al Rahbi, Group Legal Advisor,

Al Sulaimi Group on how she has used time management skills to scale new heights

83

ENGINEERINGStressing on core

competenceK V Rangaswami, Member of the Board and

President – Construction, L&T, speaks on commodity price escalation, India’s invest-

ment driven growth strategy and more

46

MEDIAThe yellow book for

investorsAn exclusive interview with

Natalie Toon, Country Director on OBG’s presence in Oman

62

48VIEW POINTLearning from the past, looking to the futureSince its inception, the technology industry has followed a nimble and adaptive business model, writes Sridhar Sridharan

54ECONOMYStrength in AssessmentThe Sultanate’s real estate market has remained relatively insulated from the global financial crisis, writes Oliver Cornock

C O V E R S T O R Y

LEADERSHIP IN TIMES OF TURBULENCE

26

8 August 2010

76BY INVITATIONRaising awarenessAn SQU report on the level of awareness of Oman’s public regarding the origin and effects of the global financial crisis

67SPOTLIGHTCreating Efficiency; Saving CostsOffice automation has taken a big leap in the last few years and is helping save time and money

By Kannan Murali

CARTOON CORNER

Editorial 2

Economy Watch 10

Business Briefs 12

Executive Movements 18

In the News 20

Auto News 60

Golf Update 66

Billboard 78

Market Watch 80

Gizmos 81

Browsing Corner 82

56HOSPITALITYAhead of the packA special report on Crowne Plaza Muscat’s HACCP certification

58 AUTO TALKKia Sportage

64CLOSE UPBroadbasing its choicesThe new GCC roadmap of cooperating with new regional blocs will enhance its economic choices, writes Dr Jasim Husain Ali

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10 August 2010

NUMBERS

A period of stability The residential and office

property market seems to have

stabilised, though rates in the

first quarter of 2010, are way

below those witnessed in the

first quarter of 2008

Residential Prices for residential properties within Integrated Tourism Complexes (ITCs) dipped significantly from the highs of early 2008, but have now stabilised and signs of a recovery are starting to show. Confidence seems to have come back into the market with increased sales activity becoming evident.

In addition, property owners who have not been able to sell their properties are increasingly looking to rent their properties until the sales market rises to meet their expectations and/or financial requirements. Rental values for residential, is not as much as seen in the first quarter of 2008, but nonetheless are steady. In the first quarter of 2008, a 4BHK villa fetched closed to RO3000, while the same was almost slightly above RO2000 in the first quarter of 2010 at the Shatti Al Qurum area. For other areas as well the trend is the same.

Office Rental values for prime office stock appear to have stabilised to some degree following falls over the last 18 months. There is, however, a significant supply of office space that will become available within the capital area over the next 18 months which is likely to result in further reductions in rental values.

Source: Cluttons Oman property market update, July 2010

Average rental price (4 bedroom villa)

Oman

i Ria

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onth

0

250

500

1000

1500

2000

2500

3000

3500

Shatti Al Qurum

Qurum Madinat Qaboos

Azaiba/ Ghubrah

NorthQ1 2008 Q1 2010

800

Average sale price (residential land)

Oman

i Ria

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er s

q m

0

100

200

300

400

500

600

700

Shatti Al Qurum

Qurum Madinat Qaboos

Azaiba/ Ghubrah

NorthQ1 2008 Q1 2010

800

Average sale price (4 bedroom villa)

The Wave

Oman

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00)

0

100

200

300

400

500

600

700

Muscat Hills Golf & Counry Club

Barr Al Jissah

Q1 2008 Q1 2010

P.O. Box 330, Postal Code 112, Ruwi, Sultanate of OmanWadi Kabir HO. Tel: 24815971 Fax: 24816782

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12 August 2010

OMAN AIR NOMINATEDOman Air, the national carrier of Oman, has been nominated for one of the UK travel industry’s most prestigious awards. The airline has been shortlisted for the Airline of the Year prize in the TTG Travel Awards, run by the industry’s leading trade newspaper, Travel Trade Gazette. Oman Air’s nomination follows a year in which the airline has introduced new airbus A330 aircraft to its fleet, each with spacious and luxurious interiors and state-of-the-art in-flight entertainment.

PDO’S WATER TREATMENT PLANTS AT DHAHBOON AND BARBAZOMPetroleum Development Oman (PDO) has opened two PDO-funded reverse-osmosis (RO) water treatment plants at Dahboon and Barbazom in Dhofar. A special ceremony was held under the auspices of HE Sheikh Amor bin Salim Kashoob, Wali of Thumrait and attended by local dignitaries and senior company officials. The construction of the new plants, will provide clean water to Dhahboon and Barbazom.

UNIVERSITY OF SALFORD REPRESENTATIVE VISITING MUSCATSituated on a green riverside campus, less than three kilometres from the centre of Manchester, Salford University hosts part of the largest student population in Europe. Al Ahlam Higher Education Services is a local representative for Salford. The institute hosted Andrew Finch, Senior International Officer in Muscat recently. From September 2010 Salford will be offering one of the biggest scholarship schemes in the UK.

On February 16, 2010, Jewel of Muscat slipped her moorings and left Port Sultan Qaboos in Muscat on a voyage of rediscovery. Nearly five months later, on July 3, 2010, she was greeted on arrival at Keppel Bay Marina by the President of Singapore

SR Nathan and HH Sayyid Harib bin Thuwainy al Said and an official delegation comprising HE Sayyid Badr Bin Hamoud al Busaidi, secretary general of the Ministry of Foreign Affairs, HE Mohammed Bin Yousuf al Zarafi, undersecretary at

the Ministry of Foreign Affairs and other senior officials. The Jewel sailed an epic voyage commemorating the historic trade links that have long existed between Oman and Singapore, around the Indian Ocean rim via ports in India, Sri Lanka and Malaysia.

Jewel of Muscat reaches Singapore

A new branch of Bank Sohar was inaugurated recently in Al Khoudh under the auspices of Sheikh Mohammed bin Abdullah Al Busaidi, wali of Seeb. Customers, local dignitaries and senior managers of the bank were present at the function. After the inaugural ceremony, Dr Mohammed Abdulaziz Kalmoor, CEO - Bank Sohar took the chief guest on a tour of the facilities offered at the branch followed by a cake cutting ceremony. Mazin Mahmood al Raisi, AGM marketing, briefed guests on the bank’s history and its products and services. “It gives a tremendous sense of

Bank Sohar inaugurates Al Khoudh branch

pride to formally inaugurate our Al Khoudh branch especially in the year when the country is celebrating the 40th anniversary of the nation’s Renaissance,” noted Dr Kalmoor. “From the day we opened for business,

Bank Sohar has allied with the national objectives and national priorities. The bank has kept these goals in mind in the course of everyday business and once again dedicates its efforts to the national cause,” he added.

14 August 2010

NAWRAS’ 940 RANGE LAUNCHEDIn celebration of the Sultanate of Oman’s 40th National Day anniversary, Nawras, a Qtel Group company has launched a brand new postpaid mobile number range, appropriately featuring the digits ‘40’. “Being an Omani company, Nawras is always keen to support and warmly greet all Nawras family members along with the wider community on such important occasions as this,” Nashat Ahmed al-Riyami, Nawras product manager said.

NEW PLEDGE FROM MINISTRY FOR ‘SAVE ENERGY OMAN CAMPAIGN’ The Ministry of Interior (MOI) is the latest to commit to the ‘Save Energy Oman’ campaign pledging to conserve Oman’s energy resources. The MOI is among numerous organisations to vow to reduce its electricity consumption over the summer period by changing the way they use their air conditioners.

QNB GROUP DECLARES RESULTS HE Yousef Hussein Kamal, chairman of the board of directors of Qatar National Bank (QNB), which has a branch in Oman, announced that, once again, QNB was able to deliver strong growth across the range of its activities both domestically and internationally which positively contributed to its profitability that surpassed QR2.7bn. For the six months ended June 30 2010, net profit reached QR2.7bn, up 30.8 per cent on the net profit delivered in June 2009. QNB Al Islami also succeeded in achieving excellent results during the first half of 2010, with net profit increasing by 140 per cent to reach QR443.2mn.

Forty children, who evocatively captured the essence of Oman in stunning paintings of the country’s magnificent achievements and development realised during the past 40 years of the glorious Renaissance led by His Majesty Sultan Qaboos, won top honours

in the ‘Celebrate Together’ national initiative launched by BankMuscat and Omantel. The winners comprising Omani and expatriate children were announced at a ceremony on July 20 under the auspices of HH Sayyid Fatik Bin Fahar al Said, secretary-general at the Ministry of Heritage and

40 children win top honours in ‘Celebrate Together’ Culture. Sheikh AbdulMalik

bin Abdullah Al Khalili, chairman of BankMuscat, said, “BankMuscat is delighted to note that the ‘Celebrate Together’ initiative set in motion a unique celebration to mark the 40th Renaissance anniversary. The campaign has created a lasting impression in the hearts and minds of the younger generation regarding the age-old Omani value systems.” Dr Amer bin Awadh al Rawas, CEO, Omantel, said, “The scope of this campaign has been unprecedented as it successfully united the nation as one family in adoration and appreciation of His Majesty Sultan Qaboos, the architect of modern Oman. The notable outcome of the initiative is that children are convinced of their social obligations and role as future citizens.”

Apollo Medical Centre, an associate of Apollo Hospitals Group, India has performed its first arthroscopy procedures on four Omani patients. The team lead by Dr C. Lenin Chinnusamy – visiting consultant arthroscopy and knee replacement surgeon from Apollo Hospitals, Chennai and Dr Sanjay Anvekar - orthopedic surgeon at Apollo Medical Centre performed for the first time at the Apollo Medical Centre, Muscat. Dr Lenin said, “All the four operated cases were Omanis who were suffering from sports injury and having anterior cruciate ligament tear with instability of the knee. A tear of this ligament can

Apollo performs arthroscopy procedures

cause knee to give way during physical activity.” Among the four operated cases, one was a revision ACL tear with meniscal tear. All the four

patients underwent transportal ACL reconstruction surgery with hamstring grafts, a new technique which makes surgery and recovery safe.

15August 2010

In a new model of public-private partnership, the Ministry of Education (MOE) and KIMS Oman hospital have signed a Memorandum of Understanding (MOU) to provide medical services and health education sessions to MOE employees. KIMS Oman is a 50-bed hospital providing

secondary healthcare in over 20 medical disciplines. Hashim al Moosawi, head employee benefit at MOE, Yousuf Darwish al Molahi, director of staff care at MOE and VMA Hakkim, executive director of KIMS announced the details of the MOU at a press conference held recently.

KIMS Oman inks MOU with Ministry of Education

ahlibank has announced the results of its monthly draw of ‘MyHassad’ saving scheme. Abdullah Hamed Salim Al Fana, a customer of Sur branch emerged as the lucky winner of the RO10,000 cash prize. “I’ve been very happy with the bank’s excellent serv-ice and with this prize money, I will definitely continue to use ahlibank as my financial partner. I know that ahlibank will help me make sound financial decisions and I am

looking forward to the grand prize draw of ‘Salary for Life’ in July,” Fana said. Congratu-lating the winner Ghaya Al Barwani, head of marketing at ahlibank said,” At ahlibank, we believe in helping people realise their dreams by open-ing a host of opportunities and MyHassad scheme is the perfect example of our ongo-ing commitment. The saving scheme helps our valued customers to earn enhanced returns on saving with us.”

Larsen & Toubro, a joint venture partner of The Zubair Corporation completed the Delhi International Airport on July 3, 2010. The new airport features 168 check-in counters, 95 immigration desks, 63 elevators, 35 escalators, 92 automatic walkways totalling nearly five kms, 12 baggage carousels – five each for domestic and international

and an additional two as interchangeable and a five level screening inline baggage handling system (first of its kind in India) that offers a process time of 45 minutes at the outer limit for both boarding and alighting passengers. The terminal has two piers, each 1.2 kms from end to end and one each for international and domestic operations.

Larsen & Toubro completes Delhi International Airport

ahlibank’s Sur customer wins RO10,000 in MyHassad monthly draw

16 August 2010

DRIVING BUSINESS TO THE PARK INN The Park Inn Muscat is offering a variety of specials throughout the remainder of the summer months. Residents of Oman can avail discount schemes at the food and beverage outlets, in addition to lowered rates on the hotel’s SkyClub gym memberships, which also entitles members to use the rooftop swimming pool.

KHIMJI’S MART OPENS ITS 21ST OUTLET IN SINAWKhimji’s Mart, the largest chain of supermarkets in Oman, opened their 21st retail outlet at Sinaw. Sheikh Saif bin Salim bin Saif Al Qarwashi, Asst of Wali-Al Mudhaibi, Neyabat Sinaw inaugurated the outlet, amidst excitement and fanfare. The directors of Khimji Ramdas, Kanak G. Khimji, Anil Khimji, Nailesh Khimji and Hritik Khimji were present during the inaugural function. Expanding its operations and customer’s reach, Khimji’s Mart Sinaw spans over 30,000 sq ft with three floors, housing a wide variety of products that cater to the daily needs of consumers.

TARANIS COMBAT AIRCRAFT THUNDERS INTO VIEWA prototype unmanned combat aircraft of the future, Taranis, has been recently unveiled by the UK Ministry of Defence for the first time. Named after the Celtic god of thunder, the concept demonstrator will test the possibility of developing the first ever autonomous stealthy Unmanned Combat Air Vehicle (UCAV) that would ultimately be capable of precisely striking targets at long range, even in another continent

Oman Air showcased one of its new Airbus A330-200 at Al Ain International Airport recently. Abu Dhabi Airports Company (ADAC) welcomed senior government officials and a trade delegation which were on board. Oman Air established its Muscat – Al Ain route in May this year. The new two class A330-200 offers Economy and Business Class cabins. Both are fitted with brand new seats that offer more space, greater comfort, fantastic in-flight entertainment options, and the very latest in communications technology. In fact, the Business Class seat goes way beyond what many airlines offer in First Class. Oman Air’s new Business and Economy products are configured with

Al Ain International Airport Hosts Oman Air’s New Product

20 business class seats and 196 economy class seats. Oman Air’s decision to display its new aircraft in the airport of the Garden City of the UAE

is testament to the strong business partnership between the airline and ADAC, and the value it places on its new Al Ain route.

Muscat Finance Co. officially inaugurated its new corporate office in Al Khuwair. The beautiful office was inaugurated by HE Dr Omar bin Abdul Munim al Zawawi,

special advisor for External Liaison to His Majesty Sultan Qaboos bin Said. HE Dr Zawawi was also the founder chairman of Muscat Finance, the first

HE Dr Omar al Zawawi inaugurates Muscat Finance’s corporate office

finance company to be established way back in 1987. The Zawawi group continues to be one of the major shareholders of Muscat Finance till date. The other major shareholders comprise Al Yousuf Group, Al Siraj Investment Holding & HBG Investment Holding. Ajit Engineer, CEO, Muscat Finance, said, “We have always believed in nurturing relationships, especially with our valued clients who have grown with us over the last two decades. It is by the success of our customers that we measure our own.”

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Dr Pritima Kaushik, MBBS, DGO, DRCOG, DFPA, MRCOG, FRCOG (UK), Senior Consultant Obstetrician & Gynaecologist has resumed her duties at Muscat Private Hospital following her accident. She has been successfully practicing at this hospital for the last eight years in Woman’s Health Services, which is equipped with all the modern facilities. Dr Pritima has trained and worked in the

UK in Obstetrics and Gynaecology. She obtained Membership in the Royal College of Obstetricians and Gynaecologists (MRCOG), worked at the St Georges Teaching Hospital London and was elected to the Fellowship of the Royal College in Obstetrics & Gynaecology (FRCOG) in London. She has worked as a Consultant, Senior Consultant and Head of the Department in Obstetrics and Gynaecology at various posts in the UK and the Middle East.

CAR RENTAL MARKET UPBEAT IN OMAN: DOLLAR RENT A CARDollar Rent A Car, a subsidiary of the Dollar Thrifty Automotive Group, has reported a 65 per cent growth for the first half of 2010 compared to the first six months of 2009. “Car rental has expe-rienced a boom in Oman due to the government increasing invest-ment in tourism,” said Goutam Chakraborty, general manager, Dollar Rent A Car, Oman.

As part of the bank’s ongoing efforts to empower Omani staff, National Bank of Oman (NBO), has promoted Nasser Mohammed al Hajri as assistant general manager – Projects, Procurement and Facility Management (PPFM), reporting to the general manager and chief operating officer. Al Hajri joined the bank in August 2009 as divisional head - Projects, Procurement and Facility Management. He is also responsible for the bank’s physical security, health, security, environment (HSE) and administration services. He holds a bachelors degree in Electrical Engineering from University of Toledo, Ohio, USA and an MBA from University of Hull in the UK. He has over 20 years of working experience.

BankDhofar went live with its new core banking system – Finacle on July 4, 2010. Finacle is a leading banking software used by banks worldwide. The landmark moment was initiated by Kris Babicci, CEO, BankDhofar, who pressed the ‘Enter’ key on the Finacle screen, in the bank’s MBD branch at 7:30am in the presence of the

bank’s staff and management team. At 8:00am, the first customer to be served at the branch using the Finacle system was Aflah Abdullah Said Suqry. The core banking implementation programme began in December 2008. Since then, BankDhofar has successfully completed phases I and II of the programme – the launch of

BankDhofar Online internet banking, and the launch of Finacle treasury during 2009. Phase III, the launch of Finacle core, Trade Finance and CRM was successfully completed on July 4, 2010 by implementing the new system across all the branches of the bank in the Sultanate, applying the ‘Big Bang’ approach.

BankDhofar Goes Live on Finacle Core Banking Solution

The Board of Directors of National Bank of Oman (NBO) has announced the appointment of Sayyida Rawan bint Ahmed bin Thabit al Said, as deputy chairwoman. Sayyida Rawan holds a Master of Science degree in Economics and Finance, from Loughborough University, UK and a Post Graduate diploma in Investment Analysis, from Stirling University, UK. Sayyida Rawan received her bachelor’s degree in Economics and Political Science from American University, Cairo. She is currently a Board Member of a number of MSM listed companies. The bank has also appointed Suresh Motiram Shivdasani as a Board Member representing Suhail Bahwan Group (Holding) LLC in replacement of Sheikh Ahmed bin Suhail bin Salim Bahwan, subject to Central Bank of Oman approval . NBO’s chairman Omar Al Fardan said “

We are indeed very pleased to have someone of Sayyida Rawan’s caliber heading the

Board as Deputy Chairwoman. We believe that Sayyida Rawan’s distinguished

career, her extensive board expertise and strong background in investment, is an asset to the Board.” Sayyida

Rawan is group chief executive of ONIC Holding. Prior to joining

ONIC, she held the position of deputy CEO (Investments) at the State General Reserve

Fund (SGRF) Oman. She has over 20 years

experience in the investment field.

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Technical Training

NTI Training Center in Ghala

NTI Training Center in Al Khuwair

NTI Training Center in Sohar

EX

CE

LLENCE IN TRAINING

FOR

20 August 2010

Nawras unveiled an exciting portfolio of fixed residential services, including Home Broadband & Voice, all

available across the Sultanate from July 20, 2010. Nawras is now delivering new opportunities for customers to get closer to friends and family with broadband internet and voice access at home. Overall, 54 per cent of households have coverage through the first WiMAX technology network in Oman, and this is expected to grow quickly to reach over 80 per cent of households during 2011.

“As an Omani company, Nawras and its customers have benefitted tremendously from the encouragement and guidance of His Majesty’s leadership,” says Ross Cormack, CEO, Nawras, “By entering into the fixed market, we look forward to changing the telecom landscape in Oman once again, in turn supporting His Majesty’s Vision 2020,” he added.

The plug & play simplicity of the Nawras Home Broadband & Voice packages allows customers to set up internet access within minutes, and Nawras has made it easy for customers to buy, use, pay and get help. Customers can simply walk into any Nawras Store or selected Nawras Premium Dealer, register for the service, buy a modem, take it home, connect it to a laptop or desktop computer, enter their username and password, and start surfing. Nawras has even posted coverage maps on its website so that customers can see exactly what kinds of services are covered within their town or village.

Postpaid packages start from RO15 per month including a 6GB data allowance with up to 1 Mb/s downlink speed, spend capping to control broadband internet budgets, and a free-of-charge telephone connection with no extra line charges – the latter being an innovation and a Nawras first. Customers also benefit from a number of other flexible

Nawras launches exciting internet and voice services for residential customers

IN THE NEWS

options and price plans including a prepaid service package, another Nawras first in Oman.

Starting at just RO5 per week, prepaid customers can enjoy a 2GB data allowance with up to 1 Mb/s downlink speed, or can choose a monthly plan with the same prices and benefits as the postpaid options. Customers who sign up now for either a postpaid or prepaid package will receive double data allowances absolutely free plus 50 per cent off Nawras broadband modems until October 13 as part of the launch promotion.

The Nawras Voice packages also offer customers a wide range of different services. Customers can benefit from the transparent and affordable Home Voice prices or select NawrasTalk, which offers bundled minutes at a very attractive price to any other Nawras fixed or mobile customer. Even better, with NawrasTalk calls between Nawras fixed customers will be completely free until October 13 as part of Nawras’ special launch offer.

Other features like the My Favourite Countries reduce rates for international calls by an additional 10 per cent to two selected countries.

With the Nawras fixed telephone connection – provided free with every broadband internet connection – customers enjoy even better international call rates with the option of a unique Nawras voice over internet protocol (VoIP) service, giving further discounts to six selected destinations: India, Pakistan, Bangladesh, Indonesia, Sri Lanka and the Philippines. The first residential service of its kind in Oman and another Nawras first, Nawras VoIP is automatically included with the Nawras Home Broadband & Voice packages and simply involves dialling ‘0902’ before a number to switch the phone call to VoIP for that call, for example, by dialling 0902 91 plus the number for calls to India. Nawras VoIP offers the most attractive call rates to these six Asian destinations when compared to any other player in the Omani telecom market.

22 August 2010

BankDhofar has emerged as the No. 1 bank in Oman Economic Review-Gulf Baader Capital Markets Best Banks in Oman

Survey 2010. BankDhofar’s resilience, determination and drive has enabled it to emerge as the No.1 bank in the Sultanate. Kris Babicci, CEO, BankDhofar, was presented a No.1 trophy by Sandeep Sehgal, chief executive, UMS recently.

Despite the global financial unrest during the last year BankDhofar continued to achieve good results throughout 2009. The total assets of the bank reached RO1,486.9mn as compared to RO1,323.8mn at the end of 2008, signifying a sustained growth of 12.32 per cent. The net loans and advances to customers stood at RO1,194.2mn compared to RO1,018.4mn in 2008 reflecting a growth of 17.26 per cent. Says Babicci, “Although the region is yet to fully come out of the global economic crisis, BankDhofar

managed reasonably well in all key areas, posting good growth rates. We continued to enhance our positioning due to a focused business strategy.” Anticipating an adverse economic environment the bank held onto the basics coupled

with strict risk management practices. The bank’s approach to the challenges thrown up by the financial crisis was to take stock and consolidate its position in order to reduce the adverse effects of any potential fallout.

At Al Namoo Private School in Sohar, students are encouraged to get involved in all school activities, be they

academic or extracurricular. Principal and managing director Usha Ramesh Mani insists that activities at the school are designed to interest and engross

students. She should know well, as Mani has more than 24 years of teaching experience behind her and continues to play a major role in shaping the lives of little ones, far away from her home country, in Sohar, Oman. Usha completed her Master’s in Education from the prestigious Bombay University

in India and started her teaching career in 1986 and over the years has worked in Saudi Arabia, Lebanon, Dubai and now Oman.

The school’s beautiful location complements its well-rounded syllabus. Usha explains that the school provides the best in education from the West and the East. “Academically we have the Cambridge affiliation. And it is the only school from Shinas to Tareef to be a Cambridge International Centre. We have the most advanced, most extensive Maths Genius Programme which no other School in the Sultanate of Oman has. Under this Programme we are going to teach our students the Japanese Abacus and Mental Mathematics which is affiliated to Miyojama Institute of Soroban (Abacus) Education – Osaka, Japan,” she elaborates.

The numero unoBankDhofar presented with the OER-GBCM Best Banks in Oman’s No. 1 trophy

Passion for EducationAl Namoo School, Sohar is working on providing well-rounded education to bring a ‘different’ kind of quality education to the Sultanate

IN THE NEWS

(L-R): Sandeep Sehgal, Chief Executive, UMS with Kris Babicci, CEO, BankDhofar

24 August 2010

The coming rally in emerging markets!Strong fundamentals and a low downside risk make emerging markets an attractive proposition. A composite fund that invests across countries is an option that investors should look at seriously

BY MATEIN KHALID

Emerging markets have swooned since late April when US, European and

Japanese equities peaked in a classic global growth scare. Economic softness in the US, Europe and China is undeniable. US private payroll growth and new home sales data suggests that a V-shaped recovery is a cruel illusion, that the economic supertanker has hit a soft patch. However, financial markets extrapolate the mass neuroses of the recent past, so it does not surprise me that US equities price a double dip recession. Why else is the 10 year Treasury bond yield a mere three per cent and the S&P500 index trading at a modest 12 times forward earnings, at least 250-300 points below the last decade historical multiple range?

The Chinese factorThe Chinese squeeze is all too real. Bank loan growth, industrial production, power consumption and car sales definitely indicate that the Middle Kingdom’s GDP will grow at eight to nine per cent, far below the 11.6 per cent first quarter peak. Europe’s fiscal

austerity, enforced by German Chancellor Merkel and the interbank funding markets, has just begun. Japan is still mired in deflation and the new DPJ Prime Minister Kan faces a succession of political crises.

India and South Korea are two major emerging markets whose central banks raised interest rates to combat an inflation surge. Oil has fallen $15 from its highs. Copper has lost one fourth of its value since April. The Chinese Politburo is determined to pop the property bubble and the Beijing central bank has not eased monetary policy. The Shanghai stock index has lost 20 per cent since January. The macro tea leaves hardly argue for a bull run in the emerging markets.

However, I believe a near term bottom in the asset class is imminent. The Morgan Stanley Emerging Market Index Fund (symbol EEM on the New York Stock Exchange) has fallen from 46 to 37. This is an ideal index fund because it enables investors to put money to work in the six leading emerging markets in the Morgan Stanley index,

(Brazil, South Korea, China, Taiwan, India, Russia) across a broad spectrum of blue chip companies. While disappointments in the US earnings calendar, a hard landing in China and external shock (credit black swans like a Greek sovereign default?) will definitely hit EEM, I doubt if downside risk is more than 20 per cent from current levels. At 33-36, this index fund enables investors to gain exposure to the world’s fastest growing, least leveraged, most youthful economic bloc at a valuation multiple that is below 10 times earnings. This is my definition of long term value and successful investing.

There are myriad catalysts for EEM to move 20-25 per cent higher to my target of 50-52 in the next six month. One, since investor sentiment is priced for deflation, the snapback will be huge when the markets scramble to buy beta, risk and asset reflation themes – fancy Wall street jargon for emerging markets.

Two, the IMF estimates 4.6 per cent global GDP growth. This is nowhere near global recession. Three, crude oil still

The author is a renowned investment

banker based in Dubai

25August 2010

PERISCOPE

AT 33 – 36, THE MORGAN STANLEY EMERGING MARKET INDEX FUND

ENABLES INVESTORS TO GAIN EXPOSURE TO THE WORLD’S FASTEST

GROWING, LEAST LEVERAGED, MOST YOUTHFUL ECONOMIC BLOC

trades in the $70-75 range without a new OPEC oil cut. In a global recession, black gold would have plummeted to $20. The Australian dollar, a pure play on commodities and China, trades near its recent highs at 0.86-0.88 cents. The smart money pooh poohs the deflation argument. So should you.

Three, there is no doubt that the Federal Reserve, the ECB and the Bank of Japan will dare raise interest rates as long as global banking remains haunted by systemic risk. Central banks act as lenders of the last resort during financial crises, not anti-inflation vigilantes. In any case, American inflation is falling. Zero interest rates mean the world’s top three central banks act as planetary monetary pumps. Who are the ultimate beneficiaries of zero dollar interest rates, underweight fund managers and a global liquidity surge? Emerging markets.

Place your bets My favourite emerging market is now Russia, whose forward valuation is a mere six times earnings at a time when the Kremlin has floated its first

sovereign Eurobond since Yeltsin’s August 1998 rouble devaluation. Incredibly, Russia trades at a 40 per cent discount to both Brazil and China. I am reluctant to invest in India at Sensex 17000-18000 since Dalal Street is one of the most expensive markets in the world at a multiple of 16, the Reserve bank of India (RBI) is behind the curve in monetary tightening and food inflation means political risk for Congress, as the recent strikes proved.

Turkey is not expensive at 11 times earnings but the lira is hostage to foreign capital and political risk is rising with the next general elections and the war with the PKK Kurdish rebels in Anatolia. I believe China is finally cheap at only 14 times earnings for 20 per cent profit growth and the recent revaluation of the yuan both averts a protectionist backlash in Washington and ignites the economy of 1.3 billion consumers. China will not aggressively tighten because the Politburo does not want or need a hard landing. Emerging markets are cheap, unloved and underowned. This is the potential winner asset class of 2011.

THE MORGAN STANLEY EMERGING MARKET INDEX FUND

Has fallen from 46 to 37

At 33 – 36, this fund gives investors exposure to the world’s fastest growing economic bloc

These markets are trading at below 10 times earnings

CHINAIts GDP will grow at eight to nine per cent, below the 11.6 per cent first quarter peak

Beijing central bank has not eased monetary policy

The Shanghai stock index has lost 20 per cent since January

RUSSIAForward valuation is a mere six times earnings

It trades at a 40 per cent discount to both Brazil and China

INDIA At 17000-18000 the Sensex is one of the most expensive markets in the world

Trading at a multiple of 16

Reserve Bank of India is behind the curve in monetary tightening and food inflation

26 August 2010

COVERSTORY

Good business leaders create a vision, articulate the vision,passionately own the vision, and relentlessly drive it to completion.– John Welch

Effective leadership is not about making speeches or being liked; leadership is defined by results not attributes. – Peter Drucker

Difficulties mastered are opportunities won.– Winston Churchill

Leadership: The art of getting someone else to do something you want done because he wants to do it.– Dwight D. Eisenhower

Innovation distinguishes between a leader and a follower.– Steve Jobs

A leader is one who knows the way, goes the way, and shows the way.– John Maxwell

The key to successful leadership today is influence, not authority. – Ken Blanchard

27August 2010

It is only when the tide goes away, that you know who is swimming naked,” is a proverb that has been often quoted by captains of industry in the last few years. And, perhaps rightly so, as the tide of the last couple of years, has seen behemoths

collapse, companies being taken over, bailed out, or simply restructured. Such has been the global debacle after the Lehman Brothers collapse, that when the economy history of the 21st century is written it would be well segregated as pre and post Lehmann eras.

Of course, during the heydays, many sins were hidden, that have now come to light. Over exposure, bonus excesses, exorbitant salaries etc., were some of the cardinal sins that are not pardonable anymore.

In all the economic mayhem, what may have come to the fore, are leaderships that have managed to tide over the crisis, and successfully weather the storm. So why has effective corporate leadership assumed such significance in the last few years? It is simply because corporate captains have had to deal with crisis in several areas, at one go. Crisis of consumer confidence, sagging employee morale, demanding customers, tough bankers et al. The recession or the global economic downturn, as the case maybe, has separated the good leaders from the mediocre ones. Effective leaders may have been the ones that were able to motivate employees; ensure nimble-footedness; remain astute while negotiating with bankers; and last but not the least ones that were able to boost demand. In fact, the present recession has bought about the best in some

leaders, who were able to deliver extraordinary reactions to a crisis. In Oman, it was a case of business downturn, more thawn a recession. The Oman Economic Review spoke to several corporate chieftains here in Oman on the role of a leader and how they managed to overcome the crisis. We got some thought provoking and interesting insight into how some of them responded to the crisis.

Take for example the case of boosting employee morale. Ali Mohammed Juma, Chief Executive of Vision Investment Services SAOC, dealt with employee morale by ensuring transparency with employees on the company’s performance, creating a fun environment, and helping employees focus on opportunities that had arisen because of the crisis. At the Al Sulaimi Group, it was a contrarian call of hiring. “During the crisis, employees all around the world were concerned about job security. At the Al-Sulaimi Group we assured all our employees that we won’t lay off anyone and we explained to them the reasons for the decision. In fact, we went about hiring people, as quality talent was available,” says Haitham Al Fannah, COO of the Al Sulaimi Group.

These are just a few examples of corporate czars managing the crisis. We got examples where visionary leadership, astute business acumen paid rich dividends in boosting demand, employee morale and overall business conditions.

Clearly, the crisis had found effective leaders, who were separated from the ordinary ones; just like wheat is separated from the chaff.

LEADERSHIPIN TIMES OF

TURBULENCEBy Sunil Fernandes, Mayank Singh and Visvas Paul D Karra

COVERSTORY

28 August 2010

COVERSTORY

What are the essential qualities of a leader that come to the fore during a crisis like

the global financial crisis?Never Panic. Immediately plan actions that need to be taken for survival of the organisation. Ensure that you collect all outstandings, even if you have to make certain concessions. Open-up all avenues to dilute your stocks and

have a management meeting with the work-force, to explore all avenues

of cost cutting that do not lead to more damages in the future.

Essential capital goods expenditure can’t be just

put on abeyance. These choices are of prime

importance during a crisis.

Is it right to say that leaders are c a t a l y s t s and facili-

tators who make effec-

tive use of talents and resources during

a crisis?Yes, but they can’t do it alone. They have to build-up confidence in the management and the work-force with positive action and seek their assisstance in the goal and objectives set out to tide over the crisis.

How did you manage your manpower effectively without

hurting employee morale during the past two years?A joint decision with the management and work-force was taken for a salary cut and all incentive schemes temporarily suspended. Furthermore, other steps included a judicious use of overtime work and reduction of contract labourers to a minimum.

How should a leader manage cus-tomer expectations during a crisis as everything seems to be unknown and fuzzy?We definitely need to support our customers and must also understand that they are in the same shoes as us. Therefore, we gave some concessions on prices and also extended the time for outstanding repayments. We can now boast that despite all these facilities provided to our customers, we did not have a single bad debt during the crisis and till date.

How did you manage customer, employee and shareholders expec-tations at Al Jazeera Steel in 2009?I must appreciate the full support that I got from all concerned, namely: customer, employee and shareholders. Everyone understood the gravity of the situation and supported the management in full. It was difficult to convince banks to lend during this period. The board took personal pains to approach bank, who having the goodwill for Jazeera Steel also supported us with rescheduling of loans. We are proud to say that we met all the committments with the bank before the promised dates.

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hat are the qualities of that come toduring a c

the global financial crisis?Never Panic. Immediately plthat need to be taken for survorganisation. Ensure that yall outstandings, even if yomake certain concessions.all avenues to dilute your

have a management meetinwork-force, to explore a

of cost cutting that dto more damages in

Essential capitaexpenditure can

put on abeyachoices are

importaa cri

Is to leac aan

tatomake

tive use and resources

a crisis?Yes, but they can’t do it have to build-up confidmanagement and the with positive action andassisstance in the goal anset out to tide over the cr

How did you manmanpower effectively

“PLANNED ACTION NEEDED”Effective leaders need to be calm in times of

crisis and never panic, says Bhaskar Datta,

CEO, Al Jazeera Steel Products Company

30 August 2010

COVERSTORY

“PASSION TO APPLYVISION NEEDED” A good leader should be a visionary, who has the

passion to apply his vision to steer the company

forward, says Haitham Al Fannah,

Chief Operating Officer, Al Sulaimi Group

What attributes of a leader have come to light, due to the glo-

bal financial crisis?The financial crisis was not something that anyone anticipated; that’s precisely why leadership qualities played a major role in the survival of organisations, during turbulent times. We have seen large corporate behemoths collapsing during the financial crisis and of course that can be attributed to many factors. I believe the most important quality a leader should have is his vision; a good vision that will determine how you tackle

31August 2010

Leaders are catalysts and facilitators who make effective use of talents and resources at all times, not only during a crisis

as the saying goes “tough times requires tough decisions.”

Does a good leader make ef-fective use of talents and re-sources?Most certainly. Leaders are catalysts and facilitators who make effective use of talents and resources at all times, not only during a crisis. During a crisis we could say that a leader can effectively maintain good productivity as supply is more than the demand.

How did you manage your manpower effectively with-out hurting employee morale during the past two years?This is a very interesting question. At the Al-Sulaimi Group, we did not layoff any employees. When the financial crisis erupted, we had a group board meeting to discuss our strategy for dealing with the financial crises and chalked out plans to tackle the crisis.

After careful analysis of all financial implications, the board took a decision not to layoff, in fact we started hiring. You must be wondering “why hire?” Well, it was the right time to pick and choose as there was abundance of talent. We thought this was an investment for the future, and we now have an immensely talented crop of employees. Our employees have always felt confident and secure and we have always received optimum performance, despite the financial crisis. Now that the markets have recovered, we are very well equipped to handle a bigger share of the market, with a talented pool of employees.

How should a leader man-age customer expectations during a crisis as everything seems to be unknown and fuzzy? During the crisis supply was more than the demand, (i.e. buyer’s

market) competition was at its peak and customer expectations increased drastically. As you said everything was unknown, it was a time when you had to work with several scenarios (Plan “A” and Plan “B” simply weren’t enough). At the Al-Sulaimi Group our goal has not only been to meet customer’s expectations but rather to exceed it. Therefore, we had a real challenge as expectations were very high. We have been determined to meet and exceed customer expectations and that is something we will not compromise on.

How did you manage customer, employee and shareholders expectations at the Al Sulaimi Group in 2009, which was largely a difficult year?For us, the customer comes above the rest. Our endeavour has always been to meet customer’s expectations simply by offering them high quality service. At the Al-Sulaimi Group customers are share holders, they are the owners of our business, without them we would not have existed.

For us, employees are the soul of our organisation, and we work like a family. During the crisis, employees all around the world were concerned about job security. At the Al-Sulaimi Group we assured all our employees that we won’t lay off anyone and we explained to them the reasons why we had taken that decision. As for our shareholders, I would like to note that our shareholders believe that a successful business entails a good vision supported by satisfied customers and employees. That’s why by formulating a vision for the future; satisfying our customers and employees we have created a recipe for a successful business, which in turn has met our shareholders’ expectations.

a crises. It is always easy to say let’s cut cost and lay off employees but what are the consequences of that? You might end up losing good employees that contributed a lot to the organisation during the good times and would have contributed more in the future. Any organisation’s strength lies in its employees and once you start laying-off employees, a crisis could precipitate.

Therefore, a good leader should be a visionary, who has the passion to apply his vision and steer the company forward. Leadership qualities are best known and best used during tough times, and

32 August 2010

COVERSTORY

What are the at-tributes that a good leader should have

during challenging times? I believe that preparedness is the key and a leader’s role starts way before challenging times hit. In this context I am reminded of the phrase, “If you fail to plan, you plan to fail.” It is the role of the leader to ensure that macro risk related factors are well thought of in advance and contingency plans are formulated. More importantly the leader should proactively inculcate the habit of being vigilant and realistic in all the team members. By setting a blue print in place the leader is well-equipped with the required armour to deal with risks arising from macro events.

As far as the soft issues are concerned; during challenging times employees tend to go into a state of confusion, panic and sometimes even depression. In such circumstances the primary responsibility of a leader is to boost the morale of the employees while channelising their energy towards managing risks and identifying opportunities that may arise therein.

How would an effective lead-er manage employees during a crisis?Communication is the mantra during challenging times. One cannot over emphasise the importance of being close to the team and keeping an open and interactive channel of communication with the employees. A leader must be transparent about the challenges the company is facing and should promote a participative environment. This will enhance the sense of ownership in the employees and as a result retain talented people who will work efficiently and effectively during such times.

On a personal note, I strongly believe that nothing works better than creating an ambiance of fun; and during challenging times it becomes even more important that the leader lead by example. He should maintain an upbeat attitude with frequent sessions of fun and laughter.

That brings forth one of the most important challenges a leader faces during such times: managing oneself. If the leader fails to properly manage his

state of mind and have clarity of direction in which he wants to lead the organisation; it will obviously limit his ability to lead and may have a negative impact on the company.

What about seizing opportu-nities that may come during lean times?This is a very interesting question. Usually during challenging times organisations are busy managing the consequences and ramifications or exercising a ‘wait and see’ approach. However, I believe a good leader must have the ability to distance himself and have a birds’ eye view of the whole situation to identify and seize opportunities.

For example, during the current global financial crises, we launched our 3rd Fund, Vision Real Economy GCC Fund. Initially we were reluctant and it required strong conviction to swim against the tide. This is where while building our team and company, the preparations we had taken to keep focus and spirit during tough times, held us in good stead and resulted in a very successful launch.

How does a good leader

WHEN THE GOING GETS TOUGH… THE TOUGH GET GOINGAli Mohammed Juma, Chief Executive of Vision Investment Services

outlines the attributes of a good leader that come to light, especially

during challenging times

manage customer expectation during times of crisis? In our industry managing customer expectation is one of the real challenges. We are an investment company and here it’s all about customer’s money. As I often mention “For human beings ‘Money Matters’ matter the most”.On a serious note, the leader has to ensure that there is no lax in the services provided. It

is his responsibility to reinforce the need to add value to the customers to manage their risk and be sympathetic.

As far as our industry is concerned, we operate in a highly regulated structure and therefore, there is little scope for us to adjust on the pricing front. Professional ethics and excellence in service are the two binding factors that help

retain customers. We capitalised on the current financial crisis by utilising this time to build on our customer base. Our service model, research information, and infrastructure support have always found to offer impeccable standards and we have used this opportunity, to meet, listen and strengthen customer requirements, wherever there was a need for one.

A leader must be transparent about the challenges the company is facing and should promote a participative environment

34 August 2010

COVERSTORY

Hardly anyone would think that a one and a half litre water bottle would contribute to a 60

per cent reduction in expenses. But that was what the Omzest group of companies was able to achieve – merely by replacing the half litre water bottle with a one and a half litre one. What’s more, this gem of an idea came, not from a top management executive, but from the lower rungs of the organisation when the management invited all its employees to share ideas during the turbulent times of the past year.

“Most of the ideas which are needed to steer a company during a crisis come from within the

organisation and a resourceful leadership should be able to create brainstorming sessions to look for inputs from different people at different levels,” says KS Cheema, executive director (Legal & Projects) of Omzest. “A leader has to be resourceful at all times but this ability comes into focus during a crisis,” he adds.

“Sometimes you tend to ignore important inputs just because the person is not at the right position. So I think you need to be open while communicating with your employees, your customers, as well as with your peers and get whatever best ideas you can. Getting an idea is one part but putting it to use is

the more important part of it,” Cheema says.

Focus areasBasically having open communication which motivates your employees and adopting changes in management policy like in terms of newer ways of doing business and addressing changes which take place at a global level are areas which leaders of organisations need to focus on.

According to Cheema, some of the biggest concerns confronting businesses are the reduced demand for products, pressure on prices, longer sales cycles and uncertainty over raw material prices, longer

“PUT INNOVATION FIRST”Open communication

with employees and

a customer focus on

addressing global

changes will help to

overcome challenging

times, says

KS Cheema,

Executive Director,

(Legal & Projects),

Omzest

36 August 2010

COVERSTORY

receivables and cash conversion cycles and lower employee morale and job security. In order to address these concerns, an organisation needs to focus on developing new markets, on cost competitiveness, on higher employee productivity, speeder inventory management and on collection and receivables management.

Talent managementIt is said that leaders are facilitators and catalysts who make effective use of talent during a crisis. In this regard, managing human resources without affecting their morale becomes critical. As a highly diversified group with companies in various sectors like manufacturing and automobiles, Omzest also had its ups and downs.

“In such a scenario, organisational restructuring is often a very painful exercise when non-value adding processes and sometimes personnel associated with those activities come under the axe. We were very sensitive to this. We did cut off some of the activities which were not value additions but fortunately did not cut off our employees who are our most important resources. And even when we had to change people from one profile to another we ensured that they had the right activity within the organisation and that kept both the organisation’s and employees’ morale up,” explains Cheema.

“Once you take care of your employee morale, they almost vow to pay back in some form or other and that clearly boosts the organisation,” he added.

The group also made effective use of lean management theories which, however, did not mean retrenchment but utilisation of same people in multiple activities. So if an employee was contribut-

ing only three hours to a particu-lar activity, the company tried to understand where his balance six or seven hours could be utilised. This helped to reduce costs.

“Earlier we used to have a separate receptionist and telephone operator. We realised that both of them were not only sitting idle but wasting each other’s time. Now we have moved one of them to another department and we have realised that both have become more productive and one of them can multi-task. So it is as simple as looking for such ideas,” Cheema stated.

Crisis of sentimentQuite often it is negative sentiment that creates a crisis. The best way to deal with this is to have open communication with the people, assure them that as long you do your best, the organisation will look after your needs. That does not mean just paying salaries at the end of the month. In fact, it also means treating employees with honour and respect as before. And once employees are treated in such a way, I think you win them over psychologically and if employees are psychologically with the company, then their productivity goes up four times higher than normal, says Cheema.

He also advises that sometimes when you do tend to lose your temper you should know the art of putting your arm around your employee and treating them like friends and family. Just like for example when you shout at your wife, you kiss and make up.

Another aspect of an effective communication is to lay the company’s objectives on the table and notify what the company is doing. Says Cheema, “A good leadership quality is in being able to communicate to your team

members about your strategies to tackle a crisis and how you intend to steer into the future. So communication and open discussion are the keys to a successful leadership.”

It’s all about moneyUltimately, cash management becomes an overriding factor during difficult situations. Manage your cash flows and you will have managed the crisis, declares Cheema. And there are various ways of doing it: Whether by reducing your input costs or whether by increasing your turnover; whether by reducing the cycle of your receivables or whether by incentivising people to move inventories faster (promotion sales). Whichever way, it applies across all sectors.

Giving examples, Cheema says that in the manufacturing sector, companies are now trying to identify sources of cheap raw materials and also scouting for new markets to sell their produced goods in bulk. And then you can also put more people in receivables. If your turnover is one $1mn and you improve your receivables by five days it adds to almost $50,000. Once you take care of these costings, it has a multiple cascading effect. Because, if you reduce your debt costs, your procurement will become cheaper as you are buying in cash and you don’t have to pay interest.

Again, manufacturing companies dependent upon procurement from open markets, must become innovative in procurement procedures and philosophies. Like for instance, breaking long term contracts for listed commodities which were based on certain formulas and going to the open market to buy. Accept the realities, clean your books and move forward. That’s the way forward.

Once you take care of your employee morale, they almost vow to pay back in some form or other and that clearly boosts the organisation

38 August 2010

COVERSTORY

“A LONG TERM VISION NECESSARY”Dr Rashid Ali Al Balushi, Managing Director, Iskan Oman Investment

Company believes that a good leader must have a vision and ability to

assess a crisis with an open mind. He outlines other characteristics of a

good leader, while talking to OER

39August 2010

What are the es-sential quali-ties of a leader that come to the

fore during a crisis, like the global financial crisis?What’s important for a leader during difficult times is to have a clear long-term vision for the business. A good leader would know his strength and would need to believe in it. An important attribute of a leader would be to discuss, and get on board participation from all stakeholders including employees and shareholders, even while motivating and opening all communication channels. Communication with shareholders would ensure that transparency is maintained and that they are kept in the loop about all developments – whether adverse or favourable. So clearly, a good leader is one that is able to communicate, motivate and have a clear long term vision about the company.

So, how did you as the Managing Director of Iskan Oman Investment Company lead the company during the precarious times of 2009?We commenced our activities in 2008 and have had a very strong set of shareholders. It was a conscious decision to gradually grow the business and hence our exposure to the real estate sector was minimal. Also, from our core business which has been real estate, we gradually diversified to other areas. As a leader one of the important attributes is to make prudent decisions after taking into confidence stakeholders interests.

In what areas did you actually diversify?We have moved into the education

sector, as we believe that we can cater to the growing needs of imparting quality education. We have taken over one school and are planning to expand with more campuses. We have also diversified into the Food and Beverage industry and gradually will consider other services sector like healthcare.

How does a good leader meet customer expectations?A good leader would always ensure timely delivery of the customers’ promises and expectations. For example, for our real estate project at Salalah, the approach we adopted was not to rush into selling the project. Instead, we have first appointed leading international consultants to design a quality product that is affordable and now we are focusing on project development and construction. The construction on the project site has already commenced, before we begin to sell the project, thus ensuring that we have put in place what it takes to ensure that customers know what they are buying.

We are certain to deliver what we promise and they can see the construction on site before they pledge a single Rial to the project. In short, we are building the trust and confidence of our customers for the very long term and this is what effective leadership means.

Were you compelled to take tough decisions in 2009, say for example salary cuts?As mentioned earlier, Iskan Oman commenced operation only in 2008 and began a gradual process of building the organisation. Since

then, we have been a nimble footed and a lean company. So obviously, there was no question of cost cutting and other demoralising decisions to take.

A good leader would make use of opportunities. Did you see any opportunities that came by in 2009?Bad times always bring with it opportunities. Our Salalah project is once again a good example. With the downturn in the real estate sector, we did not shelve or postpone our project instead we seized the opportunity and took advantage of low construction prices and invested our resources in project development. This will ensure our project is on schedule as planned and we are benefitted by the low prices and the benefits will be shared with our customers with very affordable pricing – a win-win situation for all.

How would you summa-rise the qualities of a good leader?I believe that there are five measures that a good leader must look into, particularly during times of crisis. The first is to assess the situation and do so with an open mind. The second step would be to work on a worst case scenario; thus preparing staff, shareholders and other partners would be important. The next step would be to look at cash flows and not solely profits. The fourth would be to involve your people in all decision making. And finally, a leader must lead the company to be aggressive and innovative during difficult times, something that we have done here at Iskan Oman.

A good leader would always ensure timely delivery of the customers’ promises and expectations

40 August 2010

COVERSTORY

How important is it for people to see that the leader has the right vision

that they can follow him?I think it is extremely important and the reason for that is because part of my work is like a coach, I have to get my team to understand the vision that we are trying to pursue. I need to communicate with them asking for ideas to develop strategies that will take us to market areas that we wish to compete in and to develop strategies for doing so. As a company we want to differentiate ourselves and get financial returns. If we deploy resources into a certain set of objectives, we need to analyse whether they will meet our shareholder expectations.

The leadership aspect is important as I need to be aware of what my team expects from me. Overall, they want to see behaviour that is passionate, committed, that they feel comfortable, energetic and want to share in. This in turn helps me to shape their behaviour towards the objectives that we have set and then helps us to steer the business using our team skills. What the team expects from me are integrity, good values, honesty so that they can say, “I

like this leader and want to be a part of this vision that the team is trying to achieve and want to be involved and committed to making these business strategies a reality.” Leaders should provide leadership that is critical in its sustainability and commitment to achieving goals.

Do leadership styles change according to the exigencies of the situation?Leadership styles do change according to the situation, but it operates at two levels – one, there is a strategic perspective that does not change too much. This is a long term vision about where we want to compete, how we want to run our business and how we behave in our values and these remain constant. But in the short term, it changes quite a lot.

During challenging times, objectives that one may have wanted to reach in a period of time might require an extension. In a crisis the team focuses on core profit streams and core behaviours. The team starts listening to what the market is saying, changed customer expectations and trying to meet those needs. What we noticed during 2009 was that in the first six months of the year, the

market was affected emotionally by what was happening globally and regionally (in Dubai) and it made us prudent. The underlying fundamentals of this country, its people, the wise government leadership, the sustained spending on infrastructure projects all meant that there was an underlying business need that would continue. In summary, plans need to be developed for the long term, but tactically some decisions have to change rapidly in the short term.

Did you change your leader-ship style at OMASCO last year?Yes of course. If you take OMASCO we have a three year development strategy, that is updated annually and for the last eight years the vision has been the same to be the No. 1 in customer experience and that has not changed. In a difficult year, it is important to develop strategies to meet this

“OFFER VALUE”Michael Hansen, Managing Director,

Oman Marketing and Services Company feels

that while long term strategic vision remains

constant, short term goals change according

to the exigencies of the situation

41August 2010

vision. We require the continued deployment of resources, we need to find people that have the right skill set and attitudes to help this business to become great and that continues apace. On the other hand, some of the expenditure that we would have liked to make on new buildings, a bigger network had to be delayed as we wanted to see as to how the market developed. For us the key success factor is keeping the team motivated by providing them an environment of learning and involvement. As a team we can discuss strategies for business continuity and growth. This process is not entirely directed by me as a leader but is based on an involved sharing approach in which everyone has a say.

Does meeting customer ex-pectations become more dif-ficult in a tough year?Yes it does; in a tough year the customer sees opportunity. In

Oman, some players offered discounts to get rid of excess stock, and the customer quickly linked value to price. In our opinion, offering a better price is a short term gain. Instead, once we saw the market deteriorating, we tried to match our stock levels to the demand curve and thus protected longer term values such as resale value and an ability to bring in new models. OMASCO has moved away from price to an emotional relationship with the customer that is linked to confidence in the brand, receiving the right advice and protecting the inherent value of the product. We have seen wholesale discounting by some of our competitors which over the ensuing months will significantly destroy the resale value of these vehicles. In fact, it takes away real value from customers and we have kept away from such an approach.

How difficult is it to control inventory as forecasting for

vehicles is done in advance? We look at a yearly target but it is tested and adjusted on a monthly basis against market conditions and the prevailing outlook. Right now we feel that we are starting to see a growth phase, so we are looking at increasing inventory levels slightly. This is being done on our core volume models but we are not taking a risk on sports cars or highly accessorised vehicles. As the market improves we look at real value, real advice and real customer needs.

How did the year 2009 work out from a business point of view?The year 2009 was like a hockey stick, the first three months saw a definite slowdown in customer activity, but from April, particularly from August onwards there was an increase in sales volume. Overall, the actual impact was not so huge, but it provided a good opportunity for customers to bargain for better prices. In the beginning of 2009, there was an element of fear, certainly concern for the future. On a global basis none of us had foreseen the situation that we saw in late 2008 or early 2009. But having a great team, good brands, courage and taking swift action to reposition the business by reinterpreting consumer needs and moving ahead with a lot of hard work helped us to come across 2009 in a most satisfactory manner. A combination of clear directives and a sense of humour aided the process.

What are the leadership es-sentials that you use at your company?A lot of my role entails being visible, listening and having the courage to take swift actions to achieve business continuity and growth. The year 2009 was an opportunity to revisit certain parts of the business, to study them and to see how to do the business better.

During challenging times, objectives that one may have wanted to reach in a period of time might require an extension

42 August 2010

COVERSTORY

The business model followed by Al Omaniya Financial Services (AOFS) has

stood it in good stead over the years. Can you share some details about the model with us? At AOFS we have a number of advantages like having an opportunity to build this business brick-by-brick since its inception. Being here since the beginning has helped me to create every aspect of this business model and this has proved to be a big advantage as we did not have to deal with legacy issues. Our effort has been to create a business model that is a win-win for every stakeholder – our shareholders, directors, employees, the government (as we pay taxes) and customers. If anyone in this loop feels that he

is not getting value he will not be in the business. Employees want better salaries, job satisfaction and avenues of self-actualisation. Customers want the best service, consistency and low prices; the government wants higher taxes. These are all conflicting objectives. So you need to create a business model that balances all these conflicting objectives and delivers value in terms of higher earnings and dividends for stakeholders.

Do you believe that leadership styles change according to the exigencies of the situation?Everyone has a vision and foresight, but the challenge is to convert this into a strategy and to create something. At AOFS we have been fortunate in having the right ideas and putting a step-by-step game plan to meet these expectations. I do not feel that there is anything called situational

“TAKE CARE OF CONFLICTING INTERESTS”Every leader has a vision and

foresight, but the challenge

is to convert this into a

successful strategy, says

Aftab Patel, CEO,

Al Omaniya Financial Services

43August 2010

leadership. Leaders have multi-layered personality traits and based upon the situation one of those personality traits emerges to address that specific situation or threat at a critical point of time. We know that business cycles go up and down, so our strategy is to reward our shareholders well during good times and to reward them reasonably well during bad times. The idea being to build long term sustainability in the business plan. Once you come to execute this you need to have a clear idea of the products that you are selling so that you can create a value proposition for that product. It is easy to launch a product but very difficult to sustain it.

We have changed with the times. When we started we were seen as a car finance company and our corporate slogan was, ‘The first name in car loans.’ When we moved into the second phase, our slogan changed to, ‘We understand finance better,’ and we started machinery and heavy equipment financing. Today, we call ourselves, ‘Corporate finance specialists’ as we cater to a large number of companies on a variety of products, just like mainstream banks. When you change, it has to be genuine and substantial rather than merely cosmetic. As management theories will tell you, the external environment is a given and one cannot change it; a business leader has to adapt to this and still create value. If the external environment was to your liking, then you would not require business managers as anyone can buy and sell.

How did you go about negotiating the downturn in late 2008 and 2009?We could see the crisis coming before it actually hit in 2008. The role of a leader is to provide direction and as we were prepared for the problems, the impact

was minimal. We put in place various measures to negotiate the slowdown. One, we realigned our maturities. Second, we did a lot of stress testing, with all the institutions that we deal with. Third, the company started to maintain a much larger cash position and triggered it’s contingency planning. For example more focus started being given to housekeeping. The corporate marketing and retail marketing teams started to focus on remedial credit and managing debt rather than adding new business. The first thing that I did at AOFS was to call our staff and tell them in no uncertain terms that no one would be terminated from this company. This gave people the confidence and they pooled in their efforts. These measures helped us to tide over the problems. In 2009 we made more money and profits than in 2008 and paid a 25 per cent dividend to our shareholders.

What are the values that a leader needs to have in today’s business environment? In business you have to be pragmatic, as one is sitting on other people’s money. The two hallmarks of my leadership philosophy is that we do not compromise on honesty and transparency. The customers know that this company will not take them for a ride. We follow all laws and regulations to the T. These principles come from a belief that in business you work with the community and not against it. My objective is not just to maximise profits as that would be a short term objective. Instead, our aim is to see whether we can provide valuable service to the community that we work in. By creating value for the community we create value for ourselves. This guiding principle enables us to maintain the asset quality that we have. AOFS has one of the best capital structures. This has allowed us to have low capital servicing,

higher leverage capabilities, better lending prowess and a solid capital base. That sums up why Al Omaniya has been a forerunner and a consistent success.

How do you go about man-aging employee morale and expectations in a downturn?One can have the best strategy but you still require a team to execute it. This in turn requires people who believe in what the company stands for. Employees also require an environment where they can grow and meet their own goals. We have successfully created a company where there is no conflict between the goals of the organisation and individuals. By advancing the goals of everyone we ensure that everyone is pulling in the same direction. AOFS has created what in modern parlance is known as an ‘engaged employee.’ For example, when someone rings up our company, the person says, ‘How can I help you.’

If there is a query related to accounts and the call has come to marketing, the executive will ring up the accounts department, get the information and pass it onto the customer. There are certain prerequisites for creating such an environment. The company has few departmental or functional barriers, enabling people to look at a situation in a holistic way. Departmental barriers create power centres and ego centre’s. When you manage to do away with this and have a seamless organisation it creates an engaged employee. It is a difficult process and happens over a period of time. The command structure at AOFS is almost flat, and though functionality is maintained, the doors are open for everyone to come and speak to others. Overall, barriers to communication are minimal and problems do not develop into a crisis, as things get communicated quickly and resolved.

When you change, it has to be genuine and substantial rather than merely cosmetic

44 August 2010

COVERSTORY

Some companies by virtue of the nature of their business are better placed than others to tide over

difficult periods. During the turbulent period of mid-2008 and 2009, most companies in Oman, like their counterparts around the world, went through challenging times. While many managed to sustain their businesses with their opening order book backlog, companies like Al Hassan Engineering Co (AHEC) faired better. In such situations, it’s important to remain focussed in order to stay ahead of the rest.

Says Peter Hall, CEO, AHEC, “If we were to review our operations in 2009, we opened the year with a strong order book. So in terms of revenue growth we had a good platform on which to start. We also had a number of upcoming target projects on which we based

our order winning strategies. These projects provided us with revenue for 2009 and a backlog for 2010 and beyond. All this enabled the company to achieve a good performance in 2009, giving greater value for the shareholders. The turnover increased by over 20 per cent and net profit increased by 30 per cent on 2008.”

Hall is obviously very happy with the results but admits that it was a challenging year. But since the company had put in place a number of strategies and initiatives to both win the targetted projects and to ensure their commercial performance through the execution phase, the desired results were achieved.

Significant ordersAmong others, the major new projects that AHEC won in 2009 included the 260 MW Amal

Power Plant project from PDO. It was also a particularly significant milestone as AHEC became the first Omani contractor to take a full EPC contract for a power plant in the country. This project is scheduled for completion by mid-2011. Hall is quick to point out that over the years AHEC has been involved in over 40 per cent of power plants in the Sultanate including the 1000MW power plant constructed for Sohar Aluminium by Alstom of France for whom AHEC was a major subcontractor.

The second major project in 2009 was the Gas Depletion Compression project at Kauther for PDO. This was another significant milestone for AHEC as it gave an opportunity to develop our business relationship with a new customer, the internationally renowned main contractor

“CREATE A WINNING STRATEGY”Excellence in what you

do is an advantage during

difficult times says

Peter Hall, CEO of

Al Hassan Engineering

COVERSTORY

45August 2010

Petrofac who awarded AHEC a sub-contract for civil, mechanical, electrical and instrumentation installation. Work on this project is due to be completed in early 2012.

Streamlining systemsElaborating on the strategies and initiatives implemented, Hall says that in terms of business performance there are a number of activities that were examined including internal costs, efficiency and business process re-engineering in order to optimise the effectiveness and overall efficiency of the organisation. One specific area was that of materials management; many improvements were made in the supply chain management cycle which have resulted in significant improvements in the operational performance of the business. We also made many improvements in our financial/accounting reporting systems giving us greater transparency and timely reporting of information on which we base our business decisions.

“The company went in for a major revamp of its website keeping in mind its global audience of potential partners, job seekers, customers, journalists and investors. Google analytics reports have shown a 200 per cent increase in the number of unique website visitors,” says Hall. The company’s website www.al-hassan.com also won the First Prize in Corporate Category at the prestigious Pan Arab web Awards in June 2010.

Hall did not fully support the view that the industry was in crisis management mode, more than that the dynamics of the market had changed albeit significantly as a result of the prevailing economic climate. Oman, however, was perhaps less significantly affected as elsewhere in the region. “By

that I mean that very few, if any of the projects that we were working on were cancelled or shelved. It may have taken them longer to move through to the contract commitment stage but they did not actually stop. In this regard, I would say that Oman has demonstrated more stability than other parts of the region thanks to the policies put in place by His Majesty’s Government. So those projects that we had targeted went ahead as planned and our winning strategy worked well,” Hall informs.

Excellence in what you do is an advantage during difficult times as it provides customers with confidence in your delivery capabilities. And that was what AHEC did. “We wanted to maintain our position in power generation where we have a market share of 40 per cent. This consistency allowed us to move up the value chain by undertaking the full EPC for PDO’s power plant,” Hall points out.

Similarly, in winning the Kauther project, where AHEC is a subcontractor to Petrofac, AHEC’s strong reputation in successfully completing a number of gas projects was a key factor. In particular, the more recent Burhan/Harmal Gas pipeline project where AHEC in very close and open collaboration with PDO were able to bring in the project completion some four months ahead of schedule clearly helped demonstrate their capabilities and gave tremendous support in securing this work with Petrofac as a new customer.

HR managementAn essential leadership quality is ability to build a good team. A team that is able to carry on the good work with the necessary help and support and with the right level of autonomy to do their job.

Staff retention is an area AHEC paid attention to bringing in new people with essential skills to grow the business.

The company appointed in early 2009 a professional and experienced HR manager who has undertaken a number of initiatives including structured staff development programmes and a management development centre to formalise and control how it trains and develops staff. “Since we carried over good order books in 2008 and 2009, if anything, we are increasing the numbers of our people as opposed to cutting down because of our growth. In addition, we had to refocus ourselves and rearrange ourselves and our processes to optimise the efficiency of our organisation in order to maximise our productivity,” says Hall.

Opportunities in Oman are good but clearly there is increased competition which has challenged AHEC to implement its strategies and initiatives to take advantage of the situation and build on its reputation of safely delivering quality projects on time.

“We’ve got a reputation of delivering projects on time and most importantly safely without lost time injury (LTI). We have a total of more than 35 million man-hours without LTI since 2007. We are a flexible organisation and we understand the needs of our customers and we always strive to fulfil their requirements. At the same time with our management systems we ensure that we complete projects within budget which is a significant consideration for us,” Hall says. As they say, leaders do some situational changes, AHEC improved its communication process so that everyone knew about the challenges the company was facing.

Since we carried over good order books in 2008 and 2009, if anything, we are increasing the numbers of our people

46 August 201046464646464646464646466666666446 AAugAugAugAugAugAugAugAugAugAugAugAAugAugAugAAAAAugAugAugAAAugugugAAuAAAu ustusustustustustuststustustustusustuuustuuustu ts 2020 2020202020 202020 20 2020202022022020202202 1010101010101010101010010100010

Can you give us a brief on Larsen & Toubro (L&T), its operations and financials?L&T is the largest construction and engineering company in India and we have many divisions. Out of this, the division pertaining to construction is the largest and it accounts for about 50 per cent of L&T’s turnover. Heavy Engineering is also an important division and we do work for defence, ship building, aerospace etc. We also have an oil and gas division which is known as Engineering and Construction (E&C). Then we have manufactured industrial products, which includes loaders, excavators etc. And finally there is Electrical and Electronics (E&E). These are the five broad areas of our operations. We recently started another company called L&T Power because of the Indian government’s thrust on power projects. In L&T Oman we have operations pertaining to the construction arm of L&T called Engineering Construction and Contracts (ECC) and E&C or hydrocarbons in Sohar. For the year that ended March

STRESSING ON CORE COMPETENCEK V Rangaswami,

Member of the Board

and President –

Construction, Larsen

& Toubro was in Oman

recently. He speaks to

Mayank Singh about

commodity price

escalation, India’s

investment driven

growth strategy and the

outlook for FY2010.

Excerpts:

ENGINEERING

47August 2010

2010, our revenue was around $10bn. We have over 200 jobsites in India, with the airports in Mumbai and Delhi being our biggest projects.

As a company we are trying to focus on our core competence which is engineering and construction. Internationally, wherever we can operate directly we do so like in Dubai or Abu Dhabi, where we can operate as a branch of an international company. In countries like Oman you need to have a local partner and so we have partnered with The Zubair Corporation. In the Gulf we have established ourselves in Doha and have some business in Kuwait. We are looking at re-entering the Saudi market in a big way. We have operations in South Africa but only for certain jobs. Whatever we are doing in Bhutan, Nepal, Bangladesh and Sri Lanka, that we do not consider as an overseas job, but as an extension of our Indian operations.

The global financial crisis proved to be a difficult time for most companies, how has L&T’s performance been in the last two years?The year 2009-2010 was a difficult year. During the first three quarters of the financial year the growth was not appreciable because we did not have a good order book. India was not directly affected by the global meltdown, but there was a spillover effect. But in the last quarter our sales shot up by 40 per cent and we made up for that deficit. We finished the year with a 11 per cent growth which was quite creditable given the circumstances. Our order inflow grew by more than 35 per cent in 2009-2010. Our consolidated order book is around $25bn. The company has performed well under difficult times during the past couple of years as reflected in the numbers below.

2008-09(INR bn)

Growth over

PY (%)

2009-10(INR bn)

Growth over

PY (%)

Order inflow

516.21 23 695.72 35

Sales 340.45 35 369.96 11

PAT 270.90 29 437.60 26

Order Book

703.19 33 100.23 43

India is working on an investment (infrastructure spending) driven approach to development. Is this helping L&T?It is definitely helping us. If you see even in the US when they had a downturn they realised that the only way to get out of it was by investing in new jobs and to kick start the economy. In India’s case there is a demand supply gap when it comes to infrastructure. Thus infrastructure spending has a twin effect: one it is an antidote to the global slowdown and secondly it fulfils our infrastructure gap. We expect the government investment in infrastructure to gain momentum and this will provide immense scope and opportunities for the company.

What are the major projects that you are working on in Oman?L&T Oman should be achieving an order inflow of $500mn in 2010 and is expected to grow at 10-15 per cent in 2011.

JobValue

(in RO mn)

Buildings and Utilities

Muscat Golf Course 38

Asian Beach Games Package 3 39

Al Ameen Mosque 29.32

Internal Development and Services Oman Botanical Gardens

14.80

Mixed Used Development 12.07

Infrastructure

Ghala Al Ansab Road project and Al Athaiba Bridge project

21.63

Power Transmission and Distribution

Grid Station and Overhead Tower Lines at Salalah

27.09

220/33kV Grid Station and 220kV TL, Blue City

22.85

Substation at Duqm 18.00

Substation at Ibri Dank 28.77

How important is Oman as a market for L&T?Oman has good business potential. With an RO23.5bn ($61bn) economy, and an average growth of six per cent, it presents huge prospects and opportunities related to our business. Moreover, Oman

government’s efforts to shift from oil dependency to non-oil revenues, thrust on infrastructure development, airports and power distribution will open up new prospects for construction companies. The development of new growth centres like Duqm and Salalah will lead to new growth avenues. Oman’s GDP is estimated to grow from RO25.1bn in 2010 to RO32.7bn in 2014 (research data source BMI). The contribution of construction to GDP will be around five to six per cent every year.

Fluctuating commodity prices have been a challenge for most engineering companies. How are you negotiating this challenge?On an average 65 to 70 per cent of our contracts have a price escalation clause linked to Reserve Bank of India’s price indices and we also have a few contracts that are on a cost plus basis. In addition to this we have commodity (e.g. zinc, copper, aluminium) and currency hedging to safeguard our exposures.

A number of our government contracts have an escalation clause. There is a formula, sometimes the formula compensates fully for the commodity price rise sometimes it does not. When we work out a tender we see what relief we get from the formula and if there is a small difference, we provide for it upfront in our price. In the case of private clients we ask them to put a target on the cost of commodities like steel, cement etc, during implementation instead of an escalation clause. If the price goes up you pay, if it does not, you do not pay. Quite a few of them see merit in this approach. There are other clients who want us to guess estimate any inflation and we do it for them. Sometimes we gain and sometimes we lose.

What is the company’s outlook for 2010 and 2011?The company expects a revenue growth of 20 per cent and a growth of 25 per cent in its order inflow for 2010-11. The large order book of the company provides sufficient visibility to its growth momentum in the medium term. The company is ready to harness the opportunities thrown-up by power, infrastructure, defence, hydrocarbon, building and industrial sectors.

48 August 2010

Since its inception in the 1950s, the technology industry has followed a nimble and adaptive business model due to compressed product lifecycles and a competitive environment

Learning from the past, looking to the future

BY SRIDHAR SRIDHARAN

The economic crisis hit technology companies with falling demand for both corporate

IT and consumer technology products. The industry’s tradition of high speed and agility combined with still-fresh lessons from the dot-com bust is helping its leading companies to execute an extraordinarily rapid, effective response.

While the industry continues to evolve rapidly, the crisis actually accelerated movement toward managed services and adoption of some of the newest business models – particularly the various forms of cloud-computing models because of the pricing advantages they offer. In addition, the increasing pervasiveness of technology in everyday life has helped put a floor under falling demand.

When an industry that normally enjoys growth is hit by double-digit revenue declines, it’s fair to expect a period of adjustment before an effective response is developed and implemented. But leading technology companies could be touted as models for rapid response

and excellent execution in the face of the economic crisis. Technology companies are used to being lean and moving fast. And thanks to the severe ups and downs historically experienced in the technology sector, they also know what it’s like to have the bottom drop out. These two factors, when combined, afforded technology the speed to react, and with few exceptions, companies in the sector were able to take decisive action on many fronts simultaneously.

In the current global eco-nomic environment, technol-ogy companies are primarily focused on two issues:

Building and maintaining a 1. flexible business modelStaying ahead of trends to 2. meet future demand

Due to the industry’s history and dynamics, the typical technology company sees more opportunity ahead and is taking action to position itself to benefit from it.

Technology’s balancing actTechnology companies have a higher tolerance – perhaps even an appetite for strategic risk. That appetite is fed not only

by low operational gearing but also by low financial gearing (the amount of a company’s debt relative to equity). As such, leading technology companies have a different approach to risk management – an approach that, overall, appears to be working for them. Leading companies also are dealing with global currency fluctuations and considering plans to license yet maintain protection for intellectual property. Balance is the common key issue across all these areas.

Among the leading companies, cost-control efforts have not distracted their focus on generating revenue. A handful of companies even maintained revenue growth through the crisis. In addition, some companies found their own cost-cutting initiatives contributed to their strategies for revenue growth. As they innovated in their own use of technology to cut costs and increase flexibility, they were in position to take those ideas to their customers quickly.

Another common factor among technology companies that have done well through the crisis so far is the rapid

The author is a Managing Partner,

Ernst & Young, Oman (sridhar.sridharan@

om.ey.com). This article is extracted from Ernst

& Young’s publications on Lessons From

Change

VIEWPOINT

A BIG LESSON WAS TO TAP INTO SOCIAL NETWORKS IN A FEARLESS WAY TO LEARN WHAT

CUSTOMERS REALLY VALUED AND TO MAKE TECHNOLOGY FAR MORE USABLE TO BROADER

POPULATIONS OF USERS. – AND TO IDENTIFY THE RIGHT MOMENTS

deployment of performance improvement programmes to extract additional cash from current assets. Certainly, many technology companies enjoy greater flexibility, or more specifically, lower levels of financial and operational gearing, than other industries. But the point is that they moved quickly to exploit their advantages.

One specific action for asset performance improvement that we’ve seen emerging from the crisis is the rapid adjustment of pricing strategy. A premium approach is viable in good times, but among the most successful technology companies this year are those that aggressively pursued a switch to a value-based

pricing strategy. Technology companies, generally, have very well-managed supply chains. During the downturn, however, leading technology companies were increasing their ongoing reassessments of strategic sourcing by identifying the right mix of outsourcing, near-shoring and in-house activities for a full range of core and noncore functions and processes.

IP protection and revenue potentialTechnology companies fiercely protect their IP in good times and in bad. During the current downturn, however, companies increasingly are considering selling or licensing IP to generate cash flow. If properly managed

and protected, the availability of such IP for sale or license has the potential to spur innovation based on or around the technology, even while it generates additional cash for the seller/licensor.

The biggest and toughest IP protection issue for the software sector is piracy. Meanwhile, working with governments around the world to crack down on piracy and vigorously prosecute offenders is beginning to accrue benefits. In August 2009, a Chinese court jailed and fined prominent software pirates in a landmark case, and the UK announced it is considering a plan to join France in cutting off internet access to users who repeatedly download content

in violation of copyrights.

Tax regulations affecting technologyNow, more urgently than ever, technology companies must be prepared to adapt to rapidly changing tax and regulatory rules and the associated risk resulting from these changes. Governments that made big economic stimulus investments to help counteract the downturn, both in spending and tax “holiday” measures, have run up historic deficits. Next, they are likely to accelerate efforts to tighten tax enforcement and compliance and consider revenue-enhancement actions.

Given the current environment, leading technology companies

1. Professionalising HR.

2. Enhancing and disseminating high standards of HSE.

3. Ensuring compliance with labour law.

4. Analysing and checking Omanisation.

50 August 2010

VIEWPOINT

are becoming more proactive in dealing with tax issues. They are focusing on cash management, looking for incentive programmes that support business goals, actively monitoring tax policy developments and working to improve relationships and communications with tax authorities.

Most successful companies recognise that proactive tax-cost management can offer significant bottom-line performance improvements, particularly in challenging times. Further, they recognise the importance of understanding the full impact of current tax proposals and the need to get involved in the policy-making process. It’s no surprise that transfer-pricing controversies dominate tax conversations. With global supply chains, products can be sourced and moved around the world with a single mouse click. Cross-border migration of intangibles is commonplace and complex new derivative transactions are being designed to hedge and improve investment returns.

Sustaining the futureHindsight, as the saying goes, is 20/20. So let’s look back, from the vantage point of 2014, to see what lessons from the economic crisis of 2008 to 2009 shaped the technology industry winners and losers over the last five years.

One of the biggest lessons that heralded success in 2009 can be summed up in two words: high performance. Increasing global competition and the rapid pace of technological change set high performance as the minimum cost of market

entry. In an era in which market volatility strengthened the axiom that “cash is king,” these companies were able to increase cash reserves, even in the face of direly adverse markets. These are the companies that are well positioned to acquire others. As mentioned previously, they became the “consolidators” of the industry.

Perhaps the most important lesson of 2008 to 2009, however, was a bit more subtle and, therefore, harder to grasp except in hindsight. That lesson’s catchphrase was, “information is power.” As information technology became more deeply embedded in the products and services of other industries, the technology industry began to transform rapidly from a source of innovation to an enabler of innovation in other industries.

The increasing recognition of the ability of sustainability initiatives to increase efficiency and cut costs is worth calling out as a separate lesson. Efficiencies

derived from sustainability activities served as a way for technology companies to cut their own costs and raise performance, in the same way that these activities served as a strategic growth opportunity to empower similar results for other industries.

The power of information – properly managed and made widely accessible via differ-ent types of communications networks – led to important value creation in those indus-tries. Consequently, technol-ogy accelerated innovation in all other industries, helping them grapple with the huge social and economic dynam-ics of our time.

A big lesson was to tap into social networks in a fearless way to learn what customers really valued and to make technology far more usable to broader populations of users. Winning technology companies learned to leverage the flexibility built into their organisations in order to adapt rapidly to

these changes-and to identify the right moments (i.e., when strategic risk was falling) to exploit their low financial and operational gearing and grow market share.

Adapting and leading changeOur look back illustrates the ability of the technology industry to adapt and lead change. At the same time, continued economic volatility will require technology companies to focus on areas such as cost, flexibility, operational efficiency and customer management in order to sustain a prosperous, high-growth future. The economic crisis already is causing realignment in the technology industry, and a situation of “haves” and “have-nots” is starting to emerge.

The “haves” – those that will live long and prosper – are companies that create extraordinarily flexible operating models to complement good strategic plans, and that constantly reevaluate both. They focus on cost management/reduction, improving cash flow and working capital and controlling liquidity – but not at the expense of product innovation that focuses on customer needs and thereby generates revenue growth, either today or in the immediate future.

The “have-nots” are stressed companies. In order to secure their future, they are restructuring and divesting assets. They also focus on working capital and cash management but typically require drastic remedial measures.

IT INDUSTRY’S NIMBLE RESPONSEThe crisis actually accelerated movement toward managed services and adoption of some of the newest business models – particularly the various forms of cloud-computing models because of the pricing advantages they offer

Technology companies are used to being lean and moving fast. Thanks to the severe ups and downs historically experienced in the technology sector, they also know what it’s like to have the bottom drop out.

A premium approach is viable in good times, but among the most successful technology companies this year are those that aggressively pursued a switch to a value-based pricing strategy

The technology industry began to transform rapidly from a source of innovation to an enabler of innovation in other industries

52 August 2010

AL-GHALBI International Engineering & Contracting was established in 1999 as a local community contractor providing oil

field services for major oil companies like Petroleum Development Oman (PDO), Occidental Mukhaizna, Oman Refinery Petrochemical Company (ORPC), Daleel Petroleum, PTTEP Oman, Petrogas etc as well as Government.

AL-GHALBI’s main business activities involve pipeline construction & maintenance, mechanical, engineering, electrical and instrumentation, civil, structural, provision of contracting services for project management, procurement, commissioning and installation activities associated with oil, gas and power sectors.

AL-GHALBI’s services are highly technical in nature. The company has a professional management team, competent engineers, qualified supervisory team and highly skilled employees who work together to meet client’s requirements.

Administration and logisticsAhmed Suleym al Junaibi, administration and logistics manager, having masters degree in quality, says that the organisation is implementing ERP software to enhance its operations with the help of modern technologies.

Ahmed, who has been with AL-GHALBI for the past three years, explains that the company’s administration and Logistics team have enough capacity and skills to support its operation. “Our camps, workshops, and offices spread all over

Oman in north, central and south Oman to support all our operation activities. We have specialist team that look after all our equipment and fleet,” he adds.

Opportunities for womenAL-GHALBI believes in providing equal opportunities to all Omanis and hence has a healthy mix of men and women working in various key positions in the company.

Says Raiya al Habsi, administrator, HR department, “I joined in AL-GHALBI in May 2007 having heard a lot about the company while I was working in National Beverages, through the local newspapers and also from various personal contacts. I was motivated to enter Al Ghalbi because it is a growing and dynamic company and I was inspired by their vision.

MAKING ITS PRESENCE FELT

Beginning as a modest

oil field services

company, AL-GHALBI

International has

grown from strength to

strength as a reliable

contractor and service

provider, Visvas Paul D

Karra reports

OIL & GAS

Ali Suleym Al Junaibi, CEO, AL-GHALBI International Engineering & Contracting

53August 2010

Al Habsi says that she has been working as an administrator in the HR department handling a variety of jobs including initial processes of recruitment, assisting the HR manager for selection and other HR related matters.

As an Omani company, AL-GHALBI is totally committed to meet the Sultanate’s Omanisation policy requirements and its policy is to recruit Omanis with relevant qualification from the university, college or an experienced candidate from the oilfield services. The company has already exceeded its Omanisation targets and it complies with OPAL standards.

“I would like to say that, AL-GHALBI is providing very good opportunities to Omani women employees and treats them with dignity, so much so that many times I feel I am working with my own family members,” adds Al Habsi.

Work environmentAL-GHALBI boasts a challenging working

environment, which has attracted top talented people from the market. Mohammad Choudry, contract manager, who was working with PDO, joined AL-GHALBI in 2008 after noticing that the company had taken the responsibility to execute major and complex contract with PDO.

“That challenge motivated me join to AL-GHALBI. My overall responsibility include to ensure that planned activities are completed on schedule with required quality and minimum expenditure. I’m the focal point for all communications and liaisoning with PDO for technical, commercial and contractual matters and ensuring that effective planning is in place and the development of LCCs are in compliance.

The company’s aim is to satisfy customers by providing required services in time by concentrating on safe methods of executing the work, without any damage to equipment, existing facilities and environment.

Raiya Al Habsi, Administrator, HR Dept, AL-GHALBI International Engineering & Contracting

ProcurementFor Talal al Rawahi, procurement manager, the prospect of growing with a young company was attractive enough to join AL-GHALBI. His overall responsibility is to ensure timely delivery of materials with required quality and specification. Part of his responsibility includes maintaining database information system, initiating and maintaining vendor evaluation lists, updating and developing purchasing systems and procedures. “We have introduced a new software for the procurement department that will enable us serve our customers in an efficient way that will save us time and paper work” added Talal.

Quality customer serviceC.G Sujikumar, assistant manager (QMS), says that his company strives to implement and maintain its quality management system in line with international standards. Sujikumar’s role is to prepare system procedures, update the quality system manual and assist the top management in the formation of policies and procedures.

Presently, AL-GHALBI has an ISO 9001:2008 Quality Management System. As part of this, the company undertakes frequent audits and inspections to verify the status of the systems and analyses the data derived from the findings based on customer feedback and suggestions from employees. These are then presented at the management review meetings to discuss and take action.

Sujikumar, who is also performing responsibilities of deputy management representative for Management System Functions, discloses that AL-GHALBI is planning to incorporate further management systems in the forthcoming years, which will add more stability to their systems and help them to succeed in the international business world.

Further, the company is also developing strategies for environmental protection rules and policies as per required standards. In the forthcoming years the company will be laying more emphasis on protecting natural resources including air, water and earth, says Sujikumar who has been with AL-GHALBI since August 2007.

54 August 2010

OLIVER CORNOCK

Oman’s real estate market was able to sail through the economic

downturn relatively unscathed, a fact many attribute to opening up to foreign ownership in 2005 for GCC citizens and in 2006 for the rest of the world, and then only in designated areas known as Integrated Tourism Complexes (ITCs). This spared the Omani property market from the levels of property speculation which led to market volatility elsewhere in the region.

Like any generalisation though, this is too simplistic. The strengths of Oman’s real estate market are many, and stem from both proactive government oversight and the nature of the Omani market – as well as the kind of investors it attracts. And, there are weaknesses too, making Oman more vulnerable in some respects than it need be to future swings in the global financial markets.

Chief among these is the fact that there is little reliable information available about the real estate market. This is a problem not just in the Sultanate, but the wider region too. In the absence of regulation and publicly reported statistics that govern the real estate market in most

western markets, it is difficult to assess how the Omani property market is faring today and how resilient it will be in the future. With this in mind, OBG has talked to a wide range of sources in the industry, from government ministers to the top real estate firms in the country. What we’ve learned would fill small volumes, but for OER’s readers we’ve done our best to distill the state of the market into a convenient who, what, where and why.

Who is investing: Oman has never been a big market for speculators, and that’s still the case. The majority of Oman’s properties are sold to end us-ers or those who buy to rent. In keeping with the Sultan-ate’s reputation as a conserva-tive, family-focused country, Oman is an ownership society: 85.5 per cent of citizens own their house, according to the Ministry of National Econo-my. As previously mentioned, foreigners have only been able to buy property in ITCs. The most well-known of these is The Wave, located near Seeb International Airport, which will account for 50 per cent of the freehold product available in the Muscat area through 2013.

What is available: Pretty much everything. A variety

of projects commissioned in 2006-2007 are reaching completion, meaning there are villas, apartments, retail and office space on the market. Due to falling prices for a number of construction materials in 2009-2010, the most recent projects are often able to undercut the prices of products which came to the market in 2008-2009. Two to three bedroom apartments are the most in demand, according to a number of realtors.

The biggest gap in the market at the moment is affordable housing – a problem often faced by countries with fast-growing populations and a GCC-wide trend. In Muscat in particular, development has produced a number of high-end properties and fewer large housing projects. One reason housing has remained focused on the higher-end is the height cap on buildings, which has historically stood at five floors. Recently, the government designated a number of areas in the capital where apartment and office complexes of up to twelve stories will be permitted, a move which should lead to a better supply of affordable housing.

Where to invest: New developments in up and coming neighbourhoods. This

Strength in AssessmentThe Sultanate’s real estate market has remained relatively insulated from the global financial crisis, with the current price trends suggesting a period of stability

The author is Regional Editor,Oxford Business

Group

55August 2010

THE BIGGEST GAP IN THE MARKET AT THE MOMENT

IS AFFORDABLE HOUSING – A PROBLEM OFTEN FACED

BY COUNTRIES WITH FAST-GROWING POPULATIONS AND

A GCC-WIDE TREND

ECONOMY

counts in both Muscat and the wider country in general. In the capital, the prime neighbourhoods of Qurum and Madinat as Sultan Qaboos are fully developed and demand some of the highest rents in the country. Yet, Muscat is a dynamic city, and developments in the west in particular show tremendous promise. Seeb, which lies west of the airport, currently houses Sultan Qaboos University, the premier university in the country, and a handful of developments, and the area looks set to take off. In 2009, 52.5 per cent of all building permits issued by the Muscat Municipality were for plots in this area, with the remaining 47.5 per cent distributed throughout the other five districts in the capital.

Because Oman does not restrict office space to certain zones – people are allowed to work and run businesses from their homes, if they wish – a lack of office space has not been as much of an issue in Oman as it has been in other parts of the Gulf. However, a number of companies have moved, or plan to move, to purpose-built office buildings in Airport Heights, which is projected to become the next business district, housing a number of ministries and major

companies. Then, of course, there is the rest of the country. The government has proven itself keen to invest in alternate population centres to avoid overcentralisation in Muscat. Improved infrastructure links, from the development of four new airports at Sohar, Duqm, Ras al Hadd, and Adam to the upcoming country-spanning railway, will cut transit time throughout the GCC’s second largest country, making far-flung cities like Salalah and Ras al Hadd all the more attractive.

One area particularly worth monitoring is Duqm. The site, which is at the early stages of development, is envisioned as the next great industrial hub for Oman and perhaps the Gulf region. At 1234 km2, Duqm

will be the largest Special Economic Zone (SEZ) in the Middle East, with a focus on industry, logistics, and tourism aimed at generating employment. Depending on how the project progresses, the area could become a magnet for developers keen to diversify away from more established cities.

Why Oman: Anyone reading this magazine probably does not need to be convinced that Oman is a desirable place to live. Muscat is popularly said to be the second cleanest capital city in the world (after Singapore), and in the running for the most livable. Traffic is minimal throughout the country and an emphasis on sound urban planning has kept development in check. But of course most

residents will tell you that Oman’s greatest richness lies not in its cities, but the wealth of natural beauty outside them. The Omani people, too, are justly famous for their warmth towards strangers. With the four new airports currently under development, exploration of the country’s interior will soon be easier than ever.There are, of course, limitations. Oman does not have a detailed legal framework to deal with property disputes yet. Valuing property is difficult because of a lack of standard valuation procedures. These are problems common throughout the GCC and Oman would do well to become one of the first countries to move on this front.

Several industry insiders told OBG that while the timeline for projects tends to be longer in Oman as compared to other countries in the Gulf, there is much less risk involved. The government and private sector have proven themselves genuinely committed to bringing projects through to completion. Developments are often ambitious, but also realistic. Given this track record, the real estate sector’s conservative but steady growth looks set to weather future storms with the same fundamentals that saw it through 2008-2009.

REAL ESTATE MARKET The Wave, located near Seeb International Airport will account for 50 per cent of the freehold product available in the Muscat area through 2013

In 2009, 52.5 per cent of all building permits issued by the Muscat Municipality were for plots in the Seeb area

The development of four new airports at Sohar, Duqm, Ras al Hadd, and Adam along with the planned railway network, will cut transit time making far-flung cities like Salalah and Ras Al Hadd attractive

Duqm could become a magnet for developers keen to diversify away from more established cities

56 August 2010

Crowne Plaza, Muscat has recently been awarded a Hazard Analysis Critical Control Point (HACCP) certification. HACCP is a

systematic preventive approach to food safety and pharmaceutical safety that addresses physical, chemical and biological hazards. Says Herve Corvest, general manager, Crowne Plaza, “HACCP reflects our focus on hygiene, sanitation and we see it not merely as a process for the hotel but for the country as a whole. When we apply and get an HACCP certification we force our suppliers and ministries to apply similar standards in the country.” Realising the benefits, all hotels in Dubai were asked to become HACCP compliant a few years ago.

Says Janet Turner, director of sales and marketing, “We are protecting the interests of the local suppliers as presently HACCP is not mandatory in Oman. The idea is to introduce HACCP to the wider community producing food and to benefit everyone.” The hotel has communicated the HACCP standards to its suppliers and is enforcing them amongst them. Being an international certification HACCP gives a lot of comfort to tourists when they visit a country. Adds Turner, “The more health and safety standards that a hotel follows, the more appealing it is for international travellers, thus HACCP will help attract tourists to Oman.”

The process The hotel started working on getting a HACCP certification two years ago. This was further broken down into three month modules. Says Gireesh Nair, executive chef, “The idea of HACCP is to have traceability so that everyone is accountable for the products that they are sending out into the market. It is documented and there are seven implementation principles.” Traceability means that if the hotel gets a complain that a stake was not good then it can go back and check when it was processed, from which supplier it came from, and when and where it was imported from. Thus it can be traced back to the farm where it was slaughtered.

As a part of the process, the hotel started to audit suppliers to make sure that they were following the standards

at their end. Overall, it required money, equipment and processes. The hotel spent RO150,000 in getting an HACCP. Training of the staff is another issue that had to be looked into as there were people from different cultures speaking various languages. “We did courses in Arabic and in English to familiarise people with the essentials. Once the staff got trained, then we started implementing the standards on the floor. Then the equipment came down and we changed some of our processes,” explains Nair.

Once the staff was comfortable with what they had achieved, Crowne Plaza invited the Norwegian company (SGS) which does an HACCP certification.

HACCP was introduced during the moon mission, as the risk of food poisoning had to be ruled out. In a hotel though things are more complicated as there are numerous production lines, and so the chefs have random samples kept over a period of time, which are tested. The hotel has a reporting, pest control, maintenance, temperature control and a reheating system for the food that has been cooked. Says Nair, “The main import of HACCP at the Crowne plaza is to advertise that we serve safe food and we have an internationally recognised system in place.” Adds Corvest, “It is where the food industry is going and we would not like to catch up but be ahead of it.”

AHEAD OF THE PACK

Crowne Plaza Muscat has recently been awarded an

HACCP certification giving it the distinction of being

amongst a handful of hotels in Oman who can boast

of such standards. Mayank Singh reports

HOSPITALITY

L-R: Janet Turner, Gireesh Nair and Herve Corvest

1

OER’s Company Special on Oman Oil Marketing Co.

Scaling New Heights

THE KIA SPORTAGE 2011 PACKS A PUNCH WITH ITS COMFORT, CLASS DEFINING FEATURES AND REFINED DRIVE QUALITY. AN OER REPORT

AUTOTALK

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BEST INBEST INCLASSCLASSBEST INBEST INCLASSCLASS

58 August 2010

Kia Motors all new 2011 Sportage stands out for its design, features and engine refinement. Designed under the direction of Kia’s chief de-

sign officer Peter Schreyer, the Kia design teams have created a third-generation Sportage incorporating Kia’s new design DNA and many features from the 2007 Kia Kue concept car, and it is immediately identifiable as a Kia and stand’s out in an increasingly crowded segment.

What strikes one immediately is the spa-cious cabin which looks roomier and dy-namic. The cabin is dominated by the sweeping dashboard, which broadens from the edges and then narrows dramatically in the middle to create an eye-catching centre console. Longer, wider and lower than the previous model (by 90 mm, 15 mm and 60 mm respectively), the all-new design suc-cessfully retains the key SUV features – the commanding driving position, heightened sense of security and powerful road pres-ence – which made the second generation Kia Sportage so popular. The new Sportage is significantly sleeker and lighter than the previous model, with an aerodynamic drag figure of CD 0.37 (down from 0.40) and a significant weight loss of 91 kgs compared with the previous model – enhancing fuel economy and refinement.

The Sportage redefines the segment with a host of luxury features like a keyless entry system, glove box cooler, power/tilt steer-ing, full-length panoramic glass sunroof, auto cruise control, foglamps, gull wing type folding mirrors, steering audio remote etc. The audio system features a radio and CD player with MP3, USB and iPod con-nectivity – with a speaker in each door and a tweeter at each end of the dashboard. The quality of the cabin is greatly enhanced and makes for a quite ride.

Drive qualityComing to performance the 2.0 litre engine generates 164 hp. The all-new six-speed automatic transmission now available for

the new Sportage is ultra-compact – and can feature a new optional ‘paddle shift’ system which allows drivers to change gear without taking their hands off the steering wheel. The driver can choose from two operating modes – fully auto-matic or ‘Sport’. For city driving, fully auto-matic mode is ideal, while ‘Sport’ mode al-lows for clutch-less manual gear changes for greater driver involvement – either us-ing the selector lever or the new steering wheel-mounted paddles.

Whenever the car is stopped for more than a few seconds, the new transmission’s in-novative ‘Neutral Control’ function auto-matically shifts the transmission from ‘D’ to ‘N’, improving fuel economy especially in city driving. Fitted as standard, new safety features includes antilock braking system, escort headlamp, back warning sensors, auto cruise control and driver airbag. A new rear-view safety camera, which trans-mits an image to an LCD colour display integrated into the interior rear-view mirror, will be an available option in EX grade. The Sportage is also available in a 2.4 litre variant with a 175 hp spread.

The new Sportage is significantly quieter and more refined than its predecessor. The all-new bodyshell design and greater use of high tensile steel have resulted in a stiffer and safer vehicle in which occupants will be aware of fewer vibra-tions from the road surface or mechani-cal components. The luggage space in new Sportage benefits from the 70 mm increase in the vehicle’s rear overhang. With the rear seats upright, the cargo bay is 80 mm longer and 110 mm wider at floor level, thanks to the more compact design of the rear suspension. Cargo capacity is among the best in class and ranges from 564 litres with the rear seats occupied to 1,353 litres with the rear seats folded down. So if you looking for a comfortable and luxurious CUV with an ability for that occasional off-roading, then you need not look any further than the new Kia Sportage.

SPECIFICATIONS:

Engine capacity: 2.0 litres, 4 cylinder, Dual CVVT Engine

Power: 164 HP/6200 rpm

Torque: 20.1 Kg.M/4600 rpm

Transmission: 6 speed automatic

Drive: 4x4 wheel drive, active torque on demand

59August 2010

60 August 201060

The Fluence, with its enhanced overall length and wheelbase, truly stands out as “a big car in its class”. “Renault Fluence is designed with the aim of standing out as the most attractive car in its class. Fluence has several features that will set it apart from rivals: beneath its strong, sporting exterior, Fluence features a comfortable cabin and a wealth of useful technological aids, and targets customers looking for a status-enhancing saloon,” said a

senior spokesman for Suhail Bahwan Automobiles, the sole importers of all Renault cars into Oman. Renault Fluence’s chassis delivers an efficient, comfortable and enjoyable ride. The aim of Renault’s engineers was to combine steering and handling precision with minimal noise and vibrations. Fluence’s front suspension features MacPherson-type struts with rectangular lower arms, while the rear incorporates a programmed-deflection flexible beam.

Renault Fluence in Oman

World car of the yearThe only Japanese car ever to win the prestigious “World Car of the Year” overall award, the legendary Mazda2 is going to be available in Oman soon. “World Car of the Year” (WCOTY) is the most respected award for any automobile company and is chosen by a jury of 48 top auto journalists from 22 countries. Till date only three German car brands have won this award due to its highly stringent criteria. Mazda2 offers good visibility and spaciousness in the driver’s area coupled with convenient

equipment that makes driving easy. Mazda2 will be available in 1.5 ltr engine with the whole lot of advanced features as standard which are not currently being offered by other competitive models in its class. Annurag Chawla, head of marketing and Communications, Towell Auto Centre says, “Since its launch, the Mazda2 has received more than 50 awards globally. At TAC, we believe that the new Mazda2 will make an immense contribution towards further establishing the Mazda brand in the Sultanate.”

Megacity vehicleThe BMW Group is once again breaking new ground with the Megacity Vehicle (MCV), due to come onto the market in 2013, “The Megacity Vehicle is a revolutionary automobile. It will be the world’s first volume-produced vehicle with a passenger cell made from carbon. Our LifeDrive architecture is helping us to open a new chapter in automotive lightweight design. Indeed, this concept allows us to practically offset the extra 250 to 350 kilograms of weight typically found in

electrically powered vehicles,” says Klaus Draeger, member of the board of Management for Development. With the revolutionary LifeDrive concept, the BMW Group engineers are developing the car’s architecture from scratch and adapting it to the demands and conditions of future mobility.

Oman was chosen as the venue for the prestigious Subaru Pan-Arab and Africa Distributors Meet 2010. This two day meet included distributors from neighbouring countries. Oman’s amazing landscapes and terrains lend well to the Subaru performance where customers actually feel the driving pleasure of Subaru. The choice of the venue also compliments the popularity of the Subaru brand in Oman where it enjoys a very high patronage.

Hidetoshi Kobayashi San – member of the Board, corporate VP and chief GM - Subaru, Tsuyoshi Nakai – corporate VP & senior GM – Subaru, Hiroyuki Karamatsu – president, Subaru Technica International – the people behind the world famous Subaru rally car and Yasushi Nagae – GM were the top officials from Subaru who attended the event. OTE group chairman Sheikh Saad Suhail Bahwan, V R Dilip and other key executives were also present on the occasion.

Subaru’s Pan-Arab meet

61August 201061

Clean unfettered design

A show stopperBe the envy of friends and family this summer by becoming the proud owner of the new Peugeot 308 CC from as little as RO10,595 at Zubair Automotive Group. The all new coupe cabriolet, available in Sport, SE and GT models, allows drivers and passengers to enjoy the benefits of the fully retractable roof which transforms the car from a stylish coupe to a fun cabriolet in just 20 seconds.

Envious onlookers will stop in their tracks to admire the new 308 CC as it glides elegantly through Muscat resting at coffee shops, restaurants and shopping malls.Classically designed to incorporate more sporty features, the Peugeot 308 CC comes with 17 inch alloy wheels and tinted glass as well as a leather steering wheel with tilt and telescopic adjustable power steering.

Range Rover’s 40th anniversary

As the Sultanate of Oman celebrates 40 years of the Blessed Renaissance, Range Rover is proud to celebrate the unique milestone of achieving 40 years of high- performance luxury and engineering excellence. One of the most significant vehicles in the history of motoring, the Range Rover was the world’s first vehicle as good on-road as off-road. It was the first fully capable luxury 4x4 and was a milestone in the development of the SUV (Sport Utility

Vehicle). The Range Rover celebrated its 40th birthday on June 17, 2010. The Range Rover was the world’s first fully capable luxury 4x4. There have been three generations of Range Rover: the original (Classic) in 1970, second-generation (P38a) in 1994 and third-generation (L322) in 2001

Second model line – Range Rover Sport – launched in 2005 became Land Rover’s biggest selling vehicle worldwide in 2007.

The latest Nissan Maxima is a vehicle that is unique in both appearance and driving feel, with renewed relevance for today’s active and ambitious sedan buyers. “Maxima always enjoyed a certain ‘duality’ – a unique fusion of sedan practicality with the soul of a sports car,” said a senior spokesman for Suhail Bahwan Automobiles (SBA), the sole importers of all Nissan vehicles into Oman. “Nissan is reclaiming its rich 4-Door sports car heritage with an infusion of emotional design, driving excitement and advanced technology –

creating a silky, stimulating sports sedan like no other on the road today.” The exterior design theme for the new Maxima is “Liquid Motion” – focusing on the flow of its powerful and beautiful surfaces, like the undulation of a wave.

New Nissan Maxima

The 2010 Chevrolet Camaro is a modern sports car that acknowledges its heritage with design cues from the first-generation Camaro, produced from 1967 through 1969. The Camaro’s evolutionary and revolutionary design builds on a classic design that has always been popular in the Middle East, for a completely modern interpretation of a sports car. The Camaro’s

exterior is defined by a long hood and short deck that are pushed to the far corners of the muscular fender, and a fast, 67-degree rake windshield that is as functional as it is appealing. All Camaro models feature the classic “V” design motif in the nose, along with a 63.5 mm power dome in the aluminium hood, hinting at the power of the engine beneath.

THE YELLOW BOOK FOR INVESTORSIn an exclusive

interview with

Visvas Paul D Karra,

Natalie Toon,

Country Director, talks

on OBG’s presence

in Oman since 2004.

Excerpts:

MEDIA

62 August 2010

Oxford Business Group (OBG), the global consulting, research, and publishing company specialising in economic

country intelligence, brings out a yearly edition featuring a review of the political and economic developments in the Sultanate. The publication has been one of the key providers of targeted information, analysis and advice to the global business community with regards to investment and business potential.

OBG’s forthcoming 250-page publication, ‘The Report: Oman 2011’, will provide a review of the key economic sectors with comprehensive information and analysis with regards to investment and business potential in Oman.

How long has OBG been in Oman and how has it performed?OBG has been on the ground for seven years and in this period has developed a very strong relationship with the local business community. The recent memorandum of understanding signed with Brand Oman Management Unit (BOMU) is a testimony to this and recognition of how ‘The Report’ has become a significant resource not only within Oman but further afield.

Additionally our ongoing relationship with our partners Al Busaidy, Mansoor Jamal & Co; and Abu Timam Grant Thornton allows us to provide specific technical advice to our readership. This, coupled with the very strong pool of research sources we have developed over the past seven years is the bedrock of our publication. Indeed, as a ground approach, working with respected partners is one of our hallmarks.

We have consistently secured contribu-tions to our Oman publications from His Majesty Sultan Qaboos bin Said; Ahmed bin Abdulnabi Macki, Minister of National Economy; and Sayyid Fahad bin Mahmood Al Said, Oman’s Deputy Prime Minister, to name a few.

What have been the major sectors that have been covered by OBG in Oman so far. Do you plan to cover any new sectors for this year?OBG publications follow a format that our readers have come to know and expect. We provide 250-300 pages of in depth analysis of all the most pertinent sectors of an economy – from a macro-economic and political overview at the beginning to chapter-by-chapter break down of all industries including energy, industry, banking, insurance and tourism. In addition to this standard format, we often include chapters which are unique to the country in question. So in Oman we have a regions chapter which particularly focuses on the opportunities and development in Salalah, Sohar and Duqm. As Sohar and Duqm continue to grow there may well come a time when we have specific chapters for each of the regions. Additionally this year, we have added a new chapter on culture, youth, and sports with the assistance of BOMU.

What is the mechanism of information gathering apart from interviews?OBG’s ‘The Report’ draws opinions and thoughts from leading contemporary and influential personalities, both from the government and the private sector, conducting first hand, on the ground research on Oman. The information from interviews makes up the majority of our content. This includes interviewing opinion makers, business leaders and high level governmental decision makers, using their expertise and experience to put together a comprehensive economic guide. To supplement this, we work closely with research partners and access existing data.

How do you overcome the clear and present danger of using outdated data and information in the OBG report? Indeed, this is a challenge that all of us in the business of information provision deal with, not only in Oman, but much of the rest of the region too. The issue of accurate and up-to-date statistical information is one that is widely debated. We seek to overcome this by coming back annually and having a team on the

ground for 6-8 months. We also draw on a lot of material, which we always source and try to ensure it is the most updated available. When we have no choice but to use material that is 12-18 months old, we make it very clear that at the time of printing it was the most recent available. It is pleasing that over the past few years we have seen some very positive improvements in Oman on this front.

What does OBG mean to Omani businessmen and investors?‘The Report: Oman 2011’ will be, as the previous editions have been, a comprehensive and accurate analysis of political, macroeconomic and sectoral developments in Oman, including banking, construction, insurance, capital markets, energy, infrastructure, industry and real estate. Omani businessmen and investors can draw their own conclusions and identify opportunities from the information provided. In addition, ‘The Report’ can be a valuable tool for businessmen to share information about the country with potential partners and investors too, should they wish. It provides information on all major sectors of the economy but also a series of signposts pointing to investment opportunities.

What is the methodology of your circulation and does OBG reach your target audience?‘The Report: Oman 2011’ will be available in print and online version and is available directly from OBG and not in bookstores. Many of our clients buy ‘The Report’ in bulk to distribute to their own customers and investors. The target audience of Oxford Business Group’s Reports is potential investors to a region and judging from the amount of reports purchased by government entities to provide to potential investors, it would appear that they are successful in doing so.

‘The Report’ is complemented by OBG’s online economic briefings that provide regular in-depth market analysis on Oman and will be made available to our corporate subscribers worldwide.

63August 2010

64 August 2010

The new GCC roadmap of cooperating with new regional blocs will enhance its economic choices and rectify the traditional trade imbalance that these countries have suffered from

Broadbasing its choices

DR JASIM HUSAIN ALI

The author is an eminent economist

and Member of Parliament, Bahrain

([email protected]) Bahrain is s p e a r h e a d i n g efforts to forge closer ties between

Gulf Cooperation Council countries (GCC) and other regional blocs, and for noble reasons. This is happening ahead of a Bahraini candidate, public security chief Abdul Latif bin Rashid Al-Zayani, assuming the rotating chair of secretary-general of GCC. Al-Zayani would take over his job from Qatari Abdulrahman Al-Atiyyah after winning endorsement from the 31st summit scheduled to take place in Abu Dhabi towards end-2010.

Putting the new vision to work, GCC foreign ministers met in Manama in late June to discuss a Bahraini roadmap for the group, which amongst others call for economic-cooperation with regional economic blocs and a joint action over human rights. Undoubtedly, it makes sense for GCC officials to explore fresh ways every now and then in order to strengthen the group’s position on a global level in an ever-changing socio-economic and socio-political landscape.

Reaching outBahrain first offered the roadmap during the GCC summit in Kuwait in late 2009, and ostensibly used the first half of 2010 to explore some of its key proposals. For example, Bahrain Foreign Minister Sheikh Khalid bin Ahmed bin Mohammed Al-Khalifa has spent a considerable amount of time talking to officials from the Association of South-East Nations (ASEAN). Not surprisingly, strengthening economic ties of six-nation GCC with 10-nation ASEAN is a key component of Bahrain’s roadmap. Certainly, reaching out to ASEAN neatly fits the GCC’s efforts of spiraling presence in south-east Asia at large. To be sure, GCC’s first ever deal with any nation was signed in late 2008 with ASEAN-member Singapore.

Reinforcing economic cooperation with ASEAN falls in line with the newly-founded drive in GCC for reaching out to diverse economic blocs. Earlier this year, GCC signed a memorandum of understanding on commercial and economic cooperation with 19-member Common Market for Eastern and

Southern Africa (COMESA), the first with an African grouping. In 2009 GCC signed a free trade agreement (FTA) with the European Free Trade Association (EFTA), the first such deal with a regional bloc. EFTA comprises of Switzerland, Norway, Iceland and Liechtenstein.

Reviving talks with EU Another piece of good news relates to resumption in June 2010 of an annual economic dialogue between GCC and European Union. The last time the two sides had such a dialogue was in 2003. Meeting in Brussels, representatives from EU and GCC discussed three major issues, the first being consequences of the global financial crisis and lessons from the experiences of both sides in addressing the debacle. The second topic concerned comparing notes on implementation of common market projects in both entities. In retrospect, GCC commenced implementation of Gulf Common Market (GCM) project in 2008, in turn designed to allow free flow of factors of production in member countries. Yet, the third item on the agenda related to EU’s handling of

65August 2010

CLOSE UP

EU COUNTRIES INSIST ON ADDRESSING ISSUES RELATED

TO HUMAN RIGHTS AND DEMOCRACY AS PRECONDITIONS

FOR SIGNING A TRADE ACCORD WITH GCC STATES

Greece’s debt problem. It is probably fair to assume that the EU side felt obliged to engage GCC in the aftermath of Greece’s problem, which amongst others brought about pressures on the value of Euro, in turn a currency for some 16 EU members. Possibly, EU needs access to GCC markets and investments nowadays in order to help addressing its own problems resulting from Greece’s debt crisis. All said and done, the two sides agreed on the need to continue the dialogue with the eventual aim of signing an FTA between the two blocs.

Looking back, the GCC’s General Secretariat suspended talks with the EU in late 2008 in order to signal its displeasure with derailed negotiations. The decision was supposedly designed to apply pressures on the EU in order to modify its conditions prior to singing a deal with the GCC.

Addressing EU demandsYet, EU countries insist on addressing issues related to human rights and democracy as preconditions for signing a trade accord with GCC states. In addition they also insist on the proliferation

GCC-EU FDI FLOWS IN 2008

From GCC to EU: €63.2bn

From EU countries to GCC: €18.9bn

of democratic teachings in the GCC. On their part, GCC states demand removal of customs charges on aluminum and petrochemicals products. The EU imposes a six per cent customs duty on imports of aluminum from the GCC. However, the EU remains weary of governmental support such as under-priced gas to GCC producers, a matter that grants them unfair advantage against their European counterparts notably countries joining since 2004. Some 12 countries

joined the EU in a span of five years including Romania, Poland, Hungary and the Czech Republic.

Needless to say, it is to GCC’s advantage to conclude a deal with the EU, in turn the largest trading partner for regional countries. The EU has a comfortable surplus in its trade account with GCC countries. At the same, it is increasingly emerging as a primary receiver of foreign direct investments (FDI) from GCC states. Official EU

statistical sources put the amount of FDI from the GCC regions in 27-member bloc at 63.2 billion Euros in 2008. Conversely, EU countries pumped merely 18.9 billion Euros to GCC economies in the same period. Yet, the GCC’s appetite for investments in EU members remains as steady as ever, a case in point being the decision by a sovereign Qatari fund to purchase Harrods for some 1.5 billion pounds or $2.2bn. Clearly, lack of FTA between the sides is to EU’s advantage by virtue of enjoying surpluses in trade and investments. As such, GCC countries need to have unrestricted access to EU countries, in turn the largest economic bloc in the world.

Undoubtedly, time is ripe for the GCC to reach out to different economic blocs and countries. GCC countries have started free trade talks with Japan, China, South Korea, and Pakistan plus Australia and New Zealand. Also, Turkey and Iran are pushing for separate trade deals with the GCC as a group. In the age of globalisation, economic cooperation with others is the only way forward, with the GCC being no exception.

66 August 2010

Tom Watson was introduced to golf relatively late in life when he studied psychology at Stanford University. In fact, he proved so good that

he qualified for the university’s golf team. After his graduation, he turned professional in 1971.

In the early years of his career, Watson seemed to lose his nerve when it became possible for him to actually win a tournament. Whether true or not, the media played on it and earned Watson an ‘also ran’ reputation. Bryon Nelson approached Watson after a tournament and offered his assistance.

Watson began working with Byron Nelson, who would become a great friend and mentor, and in 1974 broke through with his first PGA Tour victory. In 1975, he won the Byron Nelson Classic, then his first British Open title. Watson was off and running.

Watson won the first of his five Open titles in 1975. His dedication to the Open earned him enormous respect in the United Kingdom especially as so many Americans see world golf as beginning and ending on the US shoreline. By 1977, the years he won his first US Masters, Watson became leading money winner and the greatest challenge to Jack Nicklaus. In the period of time between Jack Nicklaus’ peak and Tiger Woods’ peak, Watson was head-and-shoulders above any other golfer in the world.

Watson stood up to Nicklaus on numerous occasions, one of the few golfers who consistently went toe-to-toe with Nicklaus and came out on top. Their duel at the 1977 British Open – where Nicklaus shot 66-66 over the final two

MAGNIFICENT VICTORIES!Tom Watson earned victories through perseverance and determination,

carving himself a place in golfing history

GOLFUPDATE

These were golden years for Watson. He was five times leading money winner, six times US PGA Player of the Year. He won the US Open in 1983. He was awarded the Vardon trophy three times and in 1986 was awarded the Bobby Jones Award. However the US PGA always eluded with a second place his best finish. Watson had a genuine affinity for the sporting element of golf and although financially successful, he did not always chase the buck. Tom Watson was inducted into the World Golf Hall of Fame in 1988.

Watson retired in 1991 and his magnificent victories earned through perseverance and determination, set an example. In 1999, Tom Watson was made an honorary member of the Royal & Ancient Golf Club of St. Andrews. He joined four other Americans to receive that honour: Arnold Palmer, Jack Nicklaus, President George H.W. Bush and Gene Sarazen.

While he has perhaps not earned the popularity that he deserves, his place in golf’s history is assured.

TOUR VICTORIES

PGA Tour: 39

Senior PGA Tour: 6

Major Championships

Masters: 1977, 1981

U.S. Open: 1982

British Open: 1975, 1977, 1980, 1982, 1983

Awards and Honours

Member, World Golf Hall of Fame

PGA Tour money leader five times

PGA Tour Vardon Trophy winner three times

PGA Tour Player of the Year six times

rounds, while Watson shot 66-65 to win by one - is one of the greatest head-to-head battles the sport has ever seen. Watson robbed Nicklaus of another major at the 1982 U.S. Open with his famous chip-in on the 17th hole at Pebble Beach.

m Watson was introduced golf relatively late in life

hen he studied psychology Stanford University. In

ct, he proved so good that for the university’s golf

s graduation, he sional

arly years of his career, ed to lose his nerve when it ble for him to actually win . Whether true or not, the on it and earned Watson reputation. Bryon Nelson

Watson after a tournament s assistance.

67August 2010

SMART OFFICE SPOTLIGHT

Smart technology at the office place is revolutionising the way people, process and technology integrate. Conference calling, web

conferencing, unified messaging, voice mail, replay line, fax-on-demand, virtual office, software solutions are some areas where cutting-edge technology is required to make an office look smart.

Electronic systems used in an office environment are comprised of hardware and software components. When used together, these components are capable of storing, retrieving, manipulating, transferring, computing, and printing information. Hardware components include, but are not limited to, electronic typewriters, word processors, personal computers, work stations (keyboards and visual displays) linked to a

computer, and associated equipment such as printers, optical scanners, and modems. Typical types of software used in office automation work include word processing, electronic mail, calendar, project management, database management, desk-top publishing, graphics and spreadsheet.

Nowadays, office interiors are being renovated to accommodate the

CREATING EFFICIENCY; SAVING COSTSOffice automation has taken a big leap in the last few years

and is helping save time and money

SMART OFFICE SPOTLIGHT

SPOTLIGHT SMART OFFICE

68 August 2010

Oman Modern Electronics Company, a member of Al Hashar Group, along with its

sister company Saeed Bin Nasser Al Hashar is one of the largest integrated marketing organisations in the Sultanate of Oman. OMEC-SBNAH, as it is popularly known, since its inception three decades ago has grown and diversified. Today, the Office Automation division of OMEC-SBNAH handles various world-class brands such as SHARP and KARDEX as a sole distributor in Oman. Apart from these the division also handles many other brands Lexmark-Printers, Taxan-Projectors, LifeSize Video conferencing system, Sharp Solar Solutions etc.

SHARPOMEC under this world class brand markets a number of Business Solution Products such as digital multifunctional copiers – both colour and black & white, DLP Multimedia Projectors, Information professional display panels (large format LCD monitors), Faxes – plain paper, laser, heavy duty & multifunction, Cash registers, Calculators, Ion Generator, Solar Panels and its related solutions. To meet the customers demand, SHARP has been introducing various models to cater to the ever growing segment of the copier market. Sharp offers a wide range of copiers from 16cpm to 110cpm in monochrome category while 23cpm to 50cpm in Colour category. These new higher-volume MFPs are designed to help businesses maximise their document workflow efficiency while providing outstanding performance and ease-of-use.

The customisable Home Screen and My Menu simplify use by bringing access to Sharp OSA® (Open Systems Architecture) applications and commonly-used features to the forefront of the display for one-touch operation. Sharp OSA® enables copiers to offer multiple customised office solution based on different needs to enhance work efficiency as well as cost reduction. It also has the option of a retractable keyboard, simplifying jobs

that require repetitive data entry tasks such as email-distribution, archiving or scanning to a document management application, while also enabling quick interaction with network applications.

With Sharp’s latest award-winning, multi-level document and network security suite, customers can be assured that their information is secure. Sharp remains on course for success with its current powerful MFP lineup, says Jaydev Nair, General Manager, OMEC. For no less than the third time, the electronics group has won the coveted “Line of the Year” award from Buyers Laboratory Inc. (BLI). Moreover, 13 individual commendations from BLI and the renowned Business Equipment Research & Test Laboratories (BERTL) have now been added to Sharp’s already extensive collection of accolades.

KARDEX Kardex is one of the world’s leading manufacturers of automated storage, retrieval and materials handling solutions. The products are designed to increase productivity, optimise storage space and improve the efficiency of our customers working practices. Kardex takes the time to listen to the customers, understand their requirements and objectives and provide them with the best possible solution from a wide range of world class products such as Kardex – Lektriever for box and hanging file applications, Kardex – Pharmatriever for storing various medicine / clinical products, Kardex – Industriever for storing various engineering / industrial parts and tools, Kardex – Mobile shelving for keeping the archive files and recently launched KARDEX-Shuttle which brings the ultimate storage solution for large organisation to save their cost and increase the efficiency. A highly optimised new generation Shuttle XP system maximises product storage density and access flexibility with minimum storage footprint.

LEXMARKLexmark International is a leading developer, manufacturer and supplier

of printing solutions including laser and inkjet printers, multifunction printers, devices, WI-FI enabled printers, associated supplies and services for offices and home. Recognised worldwide for its customer-driven approach to developing its wide array of products and services, Lexmark meets the demanding and constantly changing workflow management needs of today’s businesses, and the performance and convenience demands of home and office printing consumers.

‘LifeSize’ Video Conference SystemLifeSize Communications is a world leader in high definition video communications and telepresence. LifeSize pioneered high definition video communications to make communicating at a distance as natural and effective as being in the same room, for anyone, anywhere in the world. With the industry’s only complete HD video product portfolio, LifeSize delivers on the promise of video communications by providing a telepresence experience that is lifelike, useful, reliable and affordable. LifeSize built an HD video architecture from the ground up focused on high quality, mainstream visual communication as easy as a phone call. LifeSize understood that customers have different needs and different environments and wanted to ensure that customers have the best experience regardless of what their environment can provide. In addition to technology, service and support, LifeSize offers the most exceptional quality and user simplicity, making remote communications a more productive, true-to-life experience. LifeSize difference is the LifeSize experience: Superior video communications across cities, across countries, across continents.

OMEC-SBNAH markets the entire range of Business Solutions through its showrooms, dealer network and hyper Markets. Specialised products are available through the Corporate Sales Division. The division can be contacted on email id- [email protected] or, 24781655.

OMEC and SBNAH offer world-class business solutions

Makes BetterBusiness Sense

Sharp empowers your business

with the most efficient and

secured office automation solutions

to grow your profitability and

productivity through the Sharp range,

which uses latest technology

and is also convenient to use.

Calculators& Diaries

Laser FAX

Cash Register

DLP Projectors

Entry Level Copiers

Multifunction (Colour & B/W)

Productional Multifunction

OMAN MODERN ELECTRONICS Co.Off: Oman House Tel - 24797079 / 24781655, Fax - 24795045, Ruwi (Al Hashar Bldg.) 24706004,

Ruwi High Street 24832891, Salalah 23291405, Sohar 26840763, Sur 25544613.email: [email protected] / www.alhashargroup.com

Multifunction FAX

SPOTLIGHT SMART OFFICE

70 August 2010

Gulf Infotech established in 2008, as a focused Cloud Computing Solution provider in Sultanate

of Oman, has got a very significant presence in the Corporate Sector for its Cloud Solution offering. Gulf Infotech with unique and efficient model operations with managed support & development center in India has proved that the Cloud Model is a highly cost effective for Corporates in Middle East.

The Company represents Google Inc., Zoho Corporations, Box.net, Cloud Sigma and many other leading Cloud Providers. The strongest expertise the company possesses is on delivering the most efficient Business Application Model which is SaaS (Software as a Services), Cloud application development services which is PaaS (Platform as a Services) & Enterprise Mobility Solutions which is Mobile Application Development.

Gulf Infotech strongly believes in services and has built the entire business model around high quality professional grade services for the corporates which has been very well appreciated by Oman customers. The services are not just enablement of the solutions or deployment of solution, but the most important is Training and Post-sales support. Both training an post-sales support are with state of the art Online delivery Platform where in the client can join our monthly training session online and also for support can open any trouble shooting ticket online.

The company focuses on the following area on any business and has built the solutions and services around it,

Business Productivity Solutions• Business Enhancement Solutions•

Business Mobility Solutions•

Business Productivity Solutions are the modern ways on improving the overall performance of the Business, has been grabbing a lot of attentions of all CXO worldwide. Gulf Infotech brings suite of solutions specialized on improving Business Productivity of the Company. Our Solutions not focused around technology like traditional solution providers like Microsoft, but our solutions are User centric which enables the business productivity. People efficiency = Business Efficiency that’s our Mantra.

Solutions in Business Productivity are Google Apps –• A Cloud Based Enterprise Messaging and Collaboration Solution which improvise Communication and Collaborations drastically and also helps companies reduce cost.

Enterprise Search –• Google Search Appliance, this brings the powerful Google Search for your Company and provides the information which your employees need in a lightning fast speed. This really improves the productivity as the employee does not waste a lot of time searching for the right information.

Business Enhancement Solutions are again focused to enhance the Business Performance by using new technologies. In today’s competitive world everyone would like to increase performance and enhance the Business for Growth, Reputation, and Customer loyalty.

Solutions in Business Enhancement are PaaS Development –• This the key

to enhance the overall the Business, PaaS provides the right platform to Build or Covert a Legacy application to a Web Based Online Application which can be access over the internet from anywhere in the world any time. Many Companies in Oman are having legacy applications which are not flexible and accessible from outside of office, this really limits the business performance. Moving to Cloud Platform really help to get the Business Application on the Cloud to access the information securely over the Internet and extend better services to Employees, Partners and Customers.

MBS –• Message Broadcasting System, very unique solutions which bridges a very vital gap of large corporates in Corporate Communication. Today most important messages or communication are sent by Paper or Emails or faxes, which can be ignored or got not get the users attentions when required. MBS is tool by which the corporate can send a Attention grabber message as a Forced Pop-up on the Screen, a Running Scroll or a SMS to mobile phone, a Video or Audio in an Instant or Scheduled manner.

Business Mobility Solution are purely focused on the again enabling Business to happen on the Move, we provide specialized application development for all the leading Mobile Platforms which are Android, iPhone, Blackberry, Nokia – Symbian, and Windows. We are specialized in provide your Employees the access to information of your In-house ERP through a special Application Built run on their phone.

Gulf Infotech – An Enterprise Cloud Computing Solution Provider

demands of such communication, keeping aesthetics and space management as top priority. Overhead projectors, plasma screens, surround sound systems, sleek microphones, video cameras and other gizmos find discreet space.

AutomationOffice automation refers to the varied computer machinery and software used to digitally create, collect, store, manipulate and relay office information needed for accomplishing basic tasks and goals.

Office automation helps in optimising or automating existing office procedures. The backbone of office automation is a Local Area Network (LAN), which allows users to transmit data, mail and even voice across the network. All office functions, including dictation, typing,

Gulf ITYou Demand, We Deliver

Bringing Cloud Computing Technologies to Sultanate of Oman

Gulf ITYou Demand, We Deliver

Gulf Infotech LLC | Tel : +968 24614566 | Website : www.gulfinfotech.com | Email : [email protected]

Nominated for Oman Green Awards

Go GreenSwitch to Cloud Computing

Business Enhancement Solutions

Business Mobility Solutions

Business Productivity Solutions

Google Apps - A Enterprise Messaging & Collaboration Solution.

Google Search Appliance - A Enterprise Search Solution from Google Inc.

Cloud Development - PaaS (Platform as a Service) for moving Business Application to Cloud for improved accessability and flexibility

MBS - Message Broadcasting System. A Corporate Communication Solution.

Business on the Move, Enterprise Mobile Application development for extending your ERP, CRM or any Business application to Blackberry, iPhone, Android & Windows Phones.

SPOTLIGHT SMART OFFICE

72 August 2010

filing, copying, fax, telex, microfilm and records management, telephone and telephone switchboard operations, fall into this category. Office automation was a popular term in the 1970s and 1980s as the desktop computer exploded onto the scene.

A universal truth is dawning on the multinational brand names the world over that brands are incidental and the solution is the driver.

Decision makers today treat information technology (IT) as their basic need for any business. Recovery cost depends on the customer. The earlier the customer decides to put implement IT solutions, the faster the returns. Spiralling costs can be handled in many ways. And one of them is to optimise on the functions of the gadgets like printers, fax machines, printers, notebooks and laptops, scanners etc.

Staying connectedIt has been found that when employers give employees an environment they feel comfortable and good in, they become more productive and satisfied in the workplace. Staying connected is also critical in a company’s ability to respond to a customer’s changing needs, with the latest technology to work around. The Smart Office equipments now come in portable sizes too, so that the user may even cart it along to another part of the continent – and never have to miss out on an important meeting.

Researchers who studied teams of software programmers working on a project and huddled in one room for four months revealed that they (software developers) spent less than half their time at tasks like programming and coding; the remainder of their day was spent on meetings, problem resolution with team members or clients, product testing, etc.

Isolated in cubicles, communication between programmers was impaired; researchers found that the further apart team members were, the less they talked to each other. The net effect of ineffective communication was that projects habitually came in overtime and exceeded their budgets.

This research confirmed the positive effect of locating employees in a more flexible, open space. Time-to-market, or cycle time for the software programmes developed by the teams dropped by one-third as compared to a company baseline. Communication and problem resolution were enhanced by close proximity to others on the team. Once upon a time, every employee was housed in a cubicle or individual office. These days, there are fewer permanent addresses; not every employee needs a personal work station in a digital workplace.

On offer here is a diverse range of attractive and cost-effective office furniture – backed up

by professional advice and support. The services provided include space planning and interior refurbishment proposals.

Elite offers the latest and most up-to-date designs and innovations. On display over 300 sq.m. at the newly opened showroom in Al Khuwair is a superb and diverse range of office furniture. These products are geared to meet the rising demands for efficient office spaces – giving due consideration to the people who use them.

With Elite Office Furniture and Interiors the Choice is Yours!

Office Furniture and Interior • Solutions: a complete turnkey service for you and your business

Interior Design and Space planning • Service: to make the most of your

office space - however large or small

Extensive Furniture Ranges from • Spain, Malaysia, Hong Kong and Thailand to choose from the widest range of styles, budgets, colours under one roof

Partitioning, Ceilings, Electricals, • Flooring, AV and more: we can provide everything you need to complete your project

Full Project Management:• to take away the stress of your project while you take care of your business

Retail:• An individual customer can also enjoy a retail experience.

The Elite showroom at Al Khuwair operates from 9am to 7pm from Saturday to Thursday.

Product rangeOffice Furniture: The range of office furniture covers a variety of executive

and junior level desks, work stations and seating products. Elite can cater to the needs of all customer segments – Omanis and expatriates, Western and Asian, individuals or corporate, local or multinational organisations.

Quality furniture is imported from around the world along with professional services. Wherever the customer or whatever the business, we strive to create and provide a perfect work environment.

Index Home Furniture CentreIndex provides a range of designs of all forms of living, dining, bedroom and outdoor furniture that can be made available on Retail Purchase or the Easy Finance Scheme (to be launched shortly) along with swift delivery, installations and with interior design services.

Index provides a hassle free, unique and competitive service that allows the individual to furnish conveniently.

Elite – The Office In FutureElite is one of Muscat’s specialist outlets for office furniture and office interiors

SPOTLIGHT SMART OFFICE

74 August 2010

The average office space used to be 70 per cent cubicles and 30 per cent collaborative or shared space. Today, that equation is 55 per cent cubicles and 45 per cent shared space. In the agile office, a hybrid solution often works best: small private rooms for concentrated work, personal work stations in open office settings for team work, and a variety of formal and informal meeting spaces. Work spaces are simultaneously shrinking: from a standard unit of 8 by 10 feet to one as small as 6 by 6 feet in an open office plan. Work station walls are coming down, to open up views and allow occupants to enjoy natural light.

Healthy workplaceFurther, as health and safety of employees becomes paramount for companies, most corporate offices are switching to ergonomic and functional furniture. These areas are designed to break the monotony of workplaces and create a healthy working atmosphere where employees feel relaxed. The trend is to create a friendly ambience for both management and employees like a community, where everyone is familiar with another, a place where all needs are met, physical as well as psychological.

Therefore a smart office will strive to create an environment that has a smart, attractive, friendly design and can form an office ambience which is flexible, effective and welcoming for employees, which makes them feel like coming to work, and motivates them to increase productivity. Creating a non- or low-toxic workplace would be a plus point for a

smart office. For example: Use low-VOC paints along with 100 per cent virgin wool carpets made without chemicals or dyes (wool carpet lasts much longer than does synthetic carpet, so the carpeting will not need to be replaced as quickly).

Natural carpet padding (made of jute fibres encased in recycled paper) when tacked to the floor help avoid the chemical offgassing that would have occurred had they been glued. Several practical steps can help you to create a healthier workplace. The key to a healthier office is prevention – in other words, use healthy and efficient building, lighting, and HVAC design, and use nontoxic building materials, furnishings, and office supplies.

The best way to create a green and healthy environment is to begin by carrying out an environmental audit to study the duct system, building and lighting design, and office furnishings and to survey employees. The company can create corporate policies that encourage healthier purchasing decisions and production methods and support employee health.

Designer officeUtilities such as mobile phones, computers or laptops, telephone network, printers, scanners, fax machines and photocopiers use or share computer based data and software applications for higher productivity, saving on time. Creative and insightful planning and refurnishing of work environments are essential to remaining in the race. Design is no longer an expense; it is an investment. This means investing

heavily at the front end to ensure productivity and higher staff retention.

Innovative design trends are becoming prevalent and attention is being paid to creative and strategic thinking and interactive idea exchanges. Some of the facets of new work environments include: attractive and inviting private and group work spaces; tree-lined interiors and an emphasis on views; creative thinking areas with drawable walls and surfaces; and even whimsical props such as stuffed animals for inspiration.

Traditionally conservative firms are moving away from the old-fashioned look and designing in terms of flexibility, technology and service to create smart office environments for their employees. Cardinal zones in different colours, diffuse, luminous lighting, and an atmosphere that feels more like home as well as systems that include retractable drawable surfaces, spatial dividers of wire mesh, luminescent plastic panels for privacy, and trees.

Teejan furnishing LLC offers a wide selection of quality office furniture and its complete selection of

office furniture includes Office Tables, Book cases, Computer Desk, Office Chairs, Filing cabinets, Fire proof safes, Workstations and Partitions systems and much more. They have a team of experienced office furniture expert available to help the customer select the right furniture.

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76 August 2010

For more than a year now we have witnessed a lot of discussion about the Global Financial Crisis (GFC). I am assuming most of you,

know what the GFC is. For those who are not aware, the GFC was triggered by the eruption of the US subprime lending (lending to poor quality borrowers) crisis in the summer of 2007 and the subsequent liquidity and confidence crisis that has spread on a global scale and peaked in September and October 2008. The crisis is the result of both market and regulatory failures. The US subprime crisis, according to pundits, is a result of a multitude of factors which include:

A protracted period of abundant liquidity;Excessive, reckless lending in the subprime sector, especially for poor quality housing;Lack of adequate prudential regulation over financial institutions; andThe bursting of the housing price bubble.

The consequences of the GFC have been far reaching. Across the globe many busi-nesses have gone under, investors have lost billions of dollars as stock markets have collapsed, jobs have been lost and the list goes on and on. In the US for example despite the injection of billions of dollars as stimulus package, the unemployment rate now stands at 9.8 per cent which is 26 years high and still climbing.

The spillover effects of the GFC on Oman’s financial and real economic activity have so far been, and will likely continue to be, relatively limited. A report by Robert Wigglesworth in the FT.com on October 5, 2009 for example indicate that the net profit of commercial banks in Oman rose

RAISING AWARENESSSQU has done an investigation on the level of awareness of Oman’s

public regarding the origin and effects of the global financial crisis.

By Dr Msafiri Daudi Mbaga and Basma Mohamed Abdullah Al-Harthy

almost 10 per cent last year. In terms of Omani banking shares, by October 1, 2009, Oman banks had gained 2.6 per cent from a year ago, while banks in other GCC countries during the same period had registered loses. The report attributes the condition of Oman’s banking sector to the efficient surveillance framework and sound regulatory structure of the Central Bank of Oman (CBO), which is considered the strictest regulator in the GCC region.

What is troubling though regarding these crises is that they are becoming much more frequent lately (Reinhart and Rogoff, 2008). The late 1940s to the early 1970s was relatively calm. This calm is said to have been due to the heavy-handed

use of capital controls that followed for many years after World War II. Since the early 1970s however, financial and international capital account liberalisation took root worldwide – so too have the financial crises. The US had its savings and loan crisis beginning in 1984. During the late 1980s and early 1990s, the Nordic countries experienced some of the worst banking crises following a surge in capital inflows and real estate prices.

In 1992, Japan’s asset price bubble burst and ushered in a decade-long banking crisis. Problems in Mexico and Argentina (1994-1995) were followed by the famous Asian crisis of 1997-1998, and then the troubles of Russia and Colombia, among

BYINVITATION

77August 2010

others. This was followed by Argentina in 2001 and Uruguay in 2002 and then the current GFC which began in the summer of 2007. This means we are bound to see more of these crises in the recent future. The former US Federal Reserve Chairman Alan Greenspan, speaking to the BBC recently, to mark the first anniversary of the collapse of US investment bank Lehman Brothers, said another GFC is inevitable and Britain will be hit worse than the US because it has a globally-focused economy.

If the world is likely to be hit by another financial crisis, then countries needs to be concerned and needs to prepare by taking the necessary precautions, if there are precautions to take. Public awareness is perhaps one way to prepare the populace to face future crises so as to minimise their disruptive effects. To plan and launch public awareness programmes, the government needs to know the level of awareness of the Oman public. This study therefore seeks to investigate the level of awareness of the Omani public regarding the origin and the effects of the current global financial crisis.

Why public awareness is importantStudies in the US such as the one by National Council on Economic Education, Markow and Bagnaschi (2005) and the National Foundation for Credit Counseling (2008) all have documented very weak understandings of economic and personal finance topics among teens and adults. High school graduates go to college or the workforce ill-prepared to understand the financial contracts that they sign and to realise consequences of their obligations. Adults do not fare much better either. These findings support the need for public awareness programmes to bolster public financial literacy. Sultan Qaboos University has embarked upon such an awareness study.

Public awareness survey dataData for this study was collected by means of a questionnaire administered to a random sample of 103 respondents. Our sample is comprised of professors, students and staff at Sultan Qaboos University. The sample also included members of the public from outside the university. Students and staff were picked for the sample based on where they come

from across the Sultanate, in such a way that each region of the Sultanate was proportionately represented. Therefore the sample used in this study is reasonably representative of the population.

Public awareness survey resultsData from the survey was analysed using Microsoft excel spreadsheet. Simple statistics were computed. Results show that 93 per cent of the people are aware or have heard about the GFC. The remaining seven per cent said they haven’t heard of the GFC and most of them were students. Regarding the origin of the GFC, 78 per cent of the people who heard about the GFC said its origins’ lay in the USA housing market. Few people said the origin is political. In addition, nine per cent of the people had no idea where the GFC originated from.

Respondents were asked to explain how the GFC is going to affect them and their families. From the sample 25 per cent said they are not affected, five per cent said they expect to be affected but at the moment they are not. The overwhelming majority 62 per cent said they are already affected. Out of this group 40 per cent said they are already affected in terms of increase in the prices of goods and services. Another 40 per cent (61 per cent of them students) said GFC will affect their career prospects, because the recession will make it difficult for them to find employment. The remaining 20 per cent said they have been affected through their investments. On the positive note, some respondents said they think real estate prices (land and houses) will return to their pre-GFC levels in the near future.

With respect to how the Oman economy will be affected by the GFC, 13 per cent of the respondents had no idea, 26 per cent said the economy will not be affected much, and 10 per cent said the economy will not be affected. A larger group of 52 per cent of the respondent said the Oman economy will be affected in the following ways:

Most of the Oman investment abroad (in USA, UK) has been lost, and therefore there are no prospect for future returns on that capital.The Oman currency (Rial Oman) is linked to the US dollar which is depreciating in value.

In relation to the on going foreign in- vestments in huge projects, because the in flow of Foreign Direct Investment is decreasing as a result of the GFC.Fall in gas and oil prices because of the slump in the overall demand in the world market.

Interestingly, respondents did not say anything in relation to the impact of the decline of property prices in Oman. This has a severe effect on many corporate and personal balance sheets – reducing the value of assets whilst leaving the liabilities untouched. If people and businesses want to restore their balance sheets by saving more and spending less this will affect consumption.

The main objective of this study was to investigate the level of awareness of the Omani public. A random sample of 103 people comprised of professors, students and staff at Sultan Qaboos University and members of the public was used in this study.

Result shows that people are reasonably aware of the origin of the GFC, however only a small percentage of them were able to pinpoint correctly how they were going to be affected by the GFC. These results seem to suggest that there is a need for public awareness programs to increase the awareness of the Omani public.

With regard to recommendations, the gov-ernment should consider the following:

As a long term strategy it will be good to introduce financial literacy courses in secondary schools so that teenagers can be financially literate, a knowledge that they will need to function properly when they start workingThe establishment of institutions gov- erned by the values and ethics, because of the weakness of the commitment of individuals to the principles and regulations of financial and non-financial institutions in timeThe development of simple and fair investment tools, because of the proli-feration of many complicated investment tools that are difficult to understand.Establish institutions that will assess and approve investment instruments offered to the public in order to avoid any misunderstanding or exploitation.

78 August 2010

The excitement of the second RO400,000 jackpot prize from BankMuscat’s al Mazyona savings scheme is building up with the countdown beginning for the grand draw in August. Coinciding with the Salalah Tourism Festival, the grand prize winner will be picked amid the Khareef celebrations in Salalah. BankMuscat has made its presence felt at the ongoing Salalah Tourism Festival which celebrates the monsoon splendour and cultural heritage of Oman.

Supporting the tourism extravaganza as main sponsor, BankMuscat has spared no efforts in enlivening the festival atmosphere. Taking the popular savings campaign deeper to the hearts of people and linking it to issues benefiting society, the bank has enhanced the appeal of al Mazyona with the dedicated micro-site www.almazyona400000.com prompting the public to respond with views on ‘What would you do for your society if you win RO400,000?’

Countdown begins for RO400,000 al Mazyona prize

Zain Property Development handed over the keys to customers of the Phase I of ‘Dar al Zain’; their debut development project. The ambitious Seeb based development is Muscat’s first ‘affordable’ development, with 160 plus units, covering an area of over 62,000 sq mts. The project is aimed solely at middle-income families seeking luxurious community living. Phase I, consists of 36 high-quality five-bedroom twin villas. Mish’al Moosa, managing director of Zain Property Development said, “I am delighted to hand-over the keys to these homes on time, as promised to our Phase I customers. In a market where every other GCC project is invariably running behind deadline, we have delivered as per schedule. Zain Property Development

is a family business, and as a result keeping my word, and maintaining an immaculate reputation as a reliable and responsible developer has been of paramount importance to us.”

Bank Sohar hosted an exclusive social get-together for its customers and well-wishers from the Dhofar Governorate at the Al Baleed Hall - Salalah Hilton recently. The event was a part of the bank’s tradition of meeting and interacting with people from all walks of life and from the different regions on an on-going basis. Corporate customers, eminent personalities and prominent citizens of the area responded to the bank’s

invitation. A team of senior managers from the bank were present at the venue to welcome guests and to spend time with them. Mazin Mahmood al Raisi, AGM marketing & publicity, Bank Sohar said, “We are convinced that it is only our customers who can convey to us what they expect from their bank and what they would like by way of products and services. It is this conviction that brings us back to Salalah.”

National Bank of Oman (NBO) recently sponsored a symposium on ‘Youth Projects’ organised by the Oman Chamber of Commerce and Industry, Nizwa Branch. The symposium was held under the auspices of Sheikh Salah bin Hilal bin Nassir al Ma’awali, director general of Small and Medium Enterprises (SMEs), at the Ministry of Commerce and Industry. The event was well attended by a number of businessmen, university students, youth projects’ support funds and

representatives of government institutions concerned with SMEs. Adil al Saleh, NBO’s senior relationship manager SME - corporate banking, made a presentation on possible credit facilities that could be granted to SMEs. He also explained to SME entrepreneurs on how to approach banks to get the required credit facilities, what type of banks to look for during the evaluation process, and how to build up mutual beneficial relationship with these banks.

Zain hands-over phase I of ‘Dar Al Zain’

Bank Sohar customers select RO240,000 winner

NBO sponsors symposium supporting ‘Youth Projects’

79August 2010

Panasonic and Omasco have launched the 2010 line of VIERA Plasma high definition televisions, including Full HD 3D TV’s featuring a screen size of 50 inch and VIERA series of flat-panel plasma and LCD TV’s. Plasma technology offers a number of important advantages with respect to 3D, such as cross-talk reduction, crisp and clear high quality moving pictures, enhanced

luminance efficiency and improved picture quality even when viewing 2D content. “Panasonic the industry and technology leader in high definition TV’s is targeting a marketshare of 50 per cent for large screen 3D TV’s by 2012 and 25 per cent marketshare for over 37 inch TV’s in the Middle East region,” said Abby Thomas, senior product manager, Panasonic Marketing Middle East.

Panasonic introduces HD 3D technology

A lucky draw for the consumer promotion of ‘Noor- Shine of Health Shine of Diamonds’ was held recently at the premises of IFFCO Distribution in the presence of Ministry of Commerce and Industry officials. 25 winners were drawn, each of whom won a Damas diamond necklace. According to Abdullah Adawi, spokesperson of

IFFCO the promotion was aimed primarily to reward loyal consumers of Noor Oil. “Obesity rates in the region are very high as transfats get accumulated in the body and result in obesity and heart problems. Thus consumers are advised to prefer Noor transfat free products for healthier life,” a release from IFFCO stated.

Khimji’s Mart conducted a special world cup SMS campaign “Yalla Koora”, which concluded with the World Cup 2010 finals. The campaign was conducted in association with Times of Oman and Al Shabiba. With prizes worth up to RO25,000, one winning entry for every match got a gift hamper worth RO300 from Khimji’s Mart, LG, Damas and Times of Oman/Al Shabiba. 63 selected winners

from the predict & win SMS contest watched World Cup 2010 Final live at Crowne Plaza. One lucky winner Khalfan Amur Khalfan Abrawi from Ibri drove back home a new Nissan Tiida 1.8 L. Madhu Nambiar, general manager, CPG retail division, Khimji Ramdas said, “The response was outstanding! The football aficionado in Oman voted their hearts-out with huge number of SMSes being received in a span of 30 days.”

Lucky draw held

Khimji Mart’s Yalla Koora evokes a good response

College of Banking and Financial Studies sponsor’s GHEDEX

The College of Banking and Financial Studies (CBFS) was the Platinum sponsor at GHEDEX 2009, a major academic event in Oman. CBFS, a government organisation provides need-based programmes, catering to the development of knowledge and skills in the field of business, IT, banking and financial services in the country. The three-day exhibition saw many aspiring students attracted to CBFS,

for its graduate, post graduate and professional programmes. The institution has an affiliation with reputed universities such as Strathclyde University, Bradford University, the Arab Academy of Banking and Financial Studies, Edexcel, CAT, AICB, ACCA, among others. In training and short-courses, the institution is affiliated to Queen’s School of Business in Canada and Target SIM from Zurich.

80 August 2010

DISTINCT AND DESIRABLE Since the launch of the OMEGA Seamaster Aqua Terra collection, it has been warmly received by watch enthusiasts. OMEGA now introduces a number of stunning new family members: the mid-sized Seamaster Aqua Terra Jewellery Co-Axial 38.50 mm watches. Like the rest of the collection, these new Aqua Terras feature the trademark “Teak Concept” dial whose vertical lines are reminiscent of the wooden decks on luxury boats. The Seamaster Aqua Terra Co-Axial is powered by OMEGA’s revolutionary Co-Axial technology which delivers longer service intervals and outstanding long-term chronometric performance. Each timepiece is a COSC-certified chronometer.

COLLECTOR’S PRIDE Montblanc’s Patron of Art Edition has annually honoured a legendary benefactor of the arts and culture since this special writing instrument line was originally conceived in 1992. This year’s edition is dedicated to an all time great cultural force - Elizabeth I.

Regarded the most successful monarch to ever ascend an English throne, under Elizabeth’s astute and skillful rule, England “came of age” Elizabeth I was

also a gifted writer and the 2010 Montblanc Patron of Art Edition is therefore composed of two

writing instruments Elizabeth I Limited Edition 4810 and Limited Edition 888 conceived with sumptuously striking and clever adornments celebrating her intellect and inimitable regal flair.

ART OF LUXURYThe Aigner woman is sophisticated, elegant and feminine. She lives life to the fullest and appreciates true luxury. For her this is a fragrance that defines the concept of L’Art de Vivre, one of French Culture’s greatest achievements. Etienne Aigner Pour Femme reflects the elegance and the top quality demonstrated by the Aigner brand. The top note is spicy and citrus fresh with hints of bergamot, black pepper, dew and mandarin; the middle note is floral with whiffs of Bulgarian rose, Freesia and Apricot while the base note exudes a wood, almond and Oriental flavour with White Musk, Cedarwood, Patchouli and Amber.

INSPIRED BY TRADITIONSony VAIO’s EA Series 14-inch Mystic Arabesque-themed notebooks will soon be available in three new luxurious colours – Gold, Pink and Black – embellished with a characteristic etching pattern. Developed by Sony after a comprehensive survey of the Arab region’s youth, the colours and patterns will allow users to match the VAIO notebook with their personal styles. The notebook computers sport a unique decorative etching pattern reflecting an ‘arabesque’ motif that serves as a fitting testimony to the region’s fashion and interior design trends. BEST IN CLASS

Samsung Digital Imaging Company has unveiled the Samsung NX10 in Oman. The NX10 incorporates a fast and decisive auto focus, 14.6 MP APS-C size CMOS sensor and unique, large 3.0” AMOLED screen, allowing users to easily view their images, even in bright sunlight. Users can also record in HD movie to create the full story. Available in two colours, Noble Black and Titan Silver, the Samsung NX10 is small, light and ergonomically designed to ensure maximum portability for everyday use.

NOKIA LAUNCHES SMARTPHONENokia has launched business smartphone Nokia E5. The Nokia E5 can manage busy schedules with a variety of productivity applications available in the Ovi Store. The Nokia E5 mobile phone will run on the popular Symbian OS v9.3, along with a S60 third edition feature Pack 2 increasing the speed of the device. Offering rich features like full QWERTY keypad, 5MP camera, Wi fi, easy access to email, the smartphone supports 2G as well as 3G. If you lose your way, you can let the phone’s A-GPS capability point you towards the right direction with Ovi Maps, Nokia’s free mobile navigation solution. The product is available at a very affordable price at all Nokia outlets of Mohsin Haider Darwish LLC.

In Too Big to Fail Andrew Ross Sorkin, an award-winning chief merger and acquisitions reporter

for The New York Times unfolds the first true behind-the-scenes, moment-by-moment account of how the greatest financial crisis since the Great Depression evolved into a global disaster. From inside the corner office at Lehman Brothers to secret meetings in South Korea, and the corridors of Washington, Too Big to Fail is the definitive story of the most powerful men and women in finance and politics grappling with success and failure, ego and greed, and, ultimately, the fate of the world’s economy.

This book deals with several issues during the period of the US economic recession. First, Why the US government let Lehman Brothers fail in 2008, but not American International Group (AIG). Also, how the bailout process proceeded, starting with AIG and how US financial officials convinced bankers to take bailout cash.

This book is easy to read and follow despite its 600 pages. It is a true story not just a look at banks that were ‘too big to fail’, but a real-life thriller about a cast of bold-faced names who themselves thought they were ‘too big to fail.’

HOW THE MIGHTY HAVE FALLEN

TOO BIG TO FAIL IS AN INSIDE STORY OF HOW WALL STREET AND WASHINGTON

FOUGHT TO SAVE THE FINANCIAL SYSTEM AND THEMSELVES.

A REVIEW BY HATIM AL KINDI

BROWSINGCORNER

David Einhorn and the list goes on. Even Jim Cramer makes an appearance. Sorkin has also managed to gain access to personal e-mails and confidential documents. Such as the resignation letter of Lehman Brothers CEO Richard S. Fuld sent to the chairman of the Federal Reserve of New York, abandoning his position on the regulator’s board in the days before the investment bank filed for bankruptcy.

Indeed, this is a unique book. It is not just an ordinary business book but what his publisher call “a true-life financial and political thriller,” that includes dialogue of powerful bankers and top government officials. The genuinely written details of the events, gives the reader a sense of living the book. For example, the author describes a Saturday morning meeting in July 2008 at the Rye (NY) mansion of Morgan Stanley chief John Mack, during which Lehman’s Fuld gives hints on the possibility of a partnership between the two firms. In addition, very few commentators have managed to shed light on Lehman’s last days, thus making this book even more unique.

For all of this, if you are a reader of business books, most especially accounts of the shocking financial crisis, Too Big to Fail is nothing less than required reading.

Ring side view Sorkin interviewed more than 200 people, spending some 500 hours with high government officials, Wall Street luminaries, and others privy to critical moments.

These included Dick Fuld of Lehman Brothers, Hank Paulson the Treasury Secretary (and former Goldman Sachs bigwig) at the time of the meltdown, Jamie Dimon, George W. Bush,

The publication featured in Browsing Corner is provided by WHSmith Bookstore

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Cut out this coupon from OER and present it at the WHSmith’s

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BEYONDBOARDROOMS

83July 2010

Never give up in life, if you stop it is like going back in life. Once you

start anything you should go on till you reach your goal,” says Wasila. And there could hardly be a better proponent of this credo than Wasila herself. Having started her career as a public relations officer at Sahel Enterprises at the age of 18 she has risen to the top echelons of the corporate sector. After working at Sahel for two years she joined OHI as a secretary and a receptionist. Despite having a job she continued to pursue her education simultaneously and moved to the accounts department in OHI within two years in an internal shift. When OHI

listed on the Muscat Securities Market (MSM), a department was created to liaison with the stock market and she took charge of it. As the company grew the need was felt for an assistant to the legal advisor and the responsibility fell on her shoulders.

“There were times when people used to ask me – so where have you done your college from and I would feel really ashamed as I had merely finished secondary school at that time.” But since then there has been no looking back – a Bachelors degree in Law from Beirut College in Lebanon in 2006, helped her to become a junior group legal advisor at OHI. In January 2009 she left OHI and joined the Al Sulaimi Group as their group legal advisor. She says, “I like challenges and believe that one should build one’s future from nothing as that gives you the satisfaction of having done things on your own.”

Time managementTime management has helped this mother of five to juggle her responsibilities at home and at work. Apart from these she also finds time for painting,

writing poetry and writing columns in periodicals. Wasila has also managed to pursue her education simultaneously. After her graduation she did her Masters in Law from the Arab Academy for Sciences and Technology in Egypt. She is currently pursuing a PhD in Law from Al Manar University of Tunisia.

Talking about time management she says, “It is important to arrange ones time in the right way, one should compartmentalise time between one’s family, work and studies and never mix them. She has also used novel ways to utilise her time like using the waiting time at a petrol station to catch up with her reading. A firm believer in the fact that there is no difference between men and women she says, “if you are strong and want to get something, you have to work hard and get what you want.” She is grateful for the support that she has got from her husband and children. My children come to me and ask me “Why are you not studying and encourage me to do better,” she says in jest. Wasila is indeed a role model for others to look upto.

Wasila al Rahbi, Group Legal Advisor, Al Sulaimi Group has used time management skills to scale new heights. An OER report

Striking the perfect balance

EducationBachelors degree in Law from • the Beirut UniversityMasters in Law from the Arab • Academy for Sciences & Technology in EgyptDoing a PhD in Law from Al • Manar University of Tunisia

HobbiesPainting and writing poetry•

AVAILABLE AT:

CO01_123_OER_18.5x25cm.indd 1 7/26/10 4:19 PM