ruwad-eng-aug2011

JUL-SEP 2011

CONTENTS

LOOKING INWARDFrom this issue onwards, we are going to feature SMEs related reports and extracts of whitepapers prepared by Dun and Bradstreet, globally renowned knowledge provider. In this issue’s D&B’s column ‘Small is the new Big’ focuses on the SME segment from the GCC perspective. It states that the governments in the region have been increasingly demonstrating a greater focus on the SME sector in last few years. The initiatives adopted by governments include – setting up of SME focused development institutions, improving regulatory environment to enhance ‘Ease of Doing Business’ and encouraging exports.

Within the GCC, Saudi Arabia and Bahrain have a relatively higher standing whereas Kuwait, Oman and Qatar lag behind on ‘Ease of Doing Business’ as per IFC Report 2011. In terms of ease of ‘Getting Credit’, Qatar and Oman have relatively low global ranks of 138 and 128 respectively whereas Saudi Arabia and UAE perform better at ranks 47 and 72. The comparatively low standings for GCC countries suggest that the region needs to accelerate its reform agenda for business in order to emerge as a preferred location for entrepreneurship and enterprise.

As we come back to you with the last quarter’s edition of the year of Ruwad, we may have a lot to dwell upon the Islamic Banking and new labour law which is expected to be introduced soon.

Enjoy reading the issue!

CONCEPTAkshay Bhatnagar

CONTENTKhalfan Al RahbiTurki Al BalushiGhalib Abdullah Al Fori

DESIGNArt DirectorsSandesh S. Rangnekar

DesignersKhoula Rashid Al Wahaibi

Aliya Saif Al Wahaibi

Senior PhotographerRajesh Burman

PhotographersMotasim Abdulla Al Balushi

Production ManagerGovindaraj Ramesh

MARKETINGKush Gupta Chandni ManiarJisha Velluvan

CORPORATEChief ExecutiveSandeep Sehgal

Executive Vice PresidentAlpana Roy

Vice PresidentRavi Raman

Senior Business Support ExecutiveRadha Kumar

Business Support ExecutiveZuwaina Said Al-Rashdi

DistributionUnited Media Services LLC

Published byUnited Press & Publishing LLCPO Box 3305, Ruwi, Postal Code - 112Muscat, Sultanate of OmanTel: (968) 24700896, Fax: (968) 24707939Email: [email protected] 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. Alam Aliktisaad Wala’mal accepts no responsibility for advertising content.Copyright © 2011 United Press & Publishing LLCPrinted by Oman PrintersCorrespondence should be sent to:Ruwad, United Media ServicesPO Box 3305, Ruwi 112, Sultanate of Oman. Fax: (968)24707939

An Alam al-Iktisaad Wal A’mal Presentation

News in Brief . . . . . . . . . . . . . . .2

In Focus . . . . . . . . . . . . . . . . . . .6SANAD – THE NEW ROAD MAP

Viewpoint . . . . . . . . . . . . . . . . .10REPORT BY DUN & BRADSTREET

Insight . . . . . . . . . . . . . . . . . . . .16EVENT & EXHIBITION MANAGEMENT SECTOR

Column . . . . . . . . . . . . . . . . . .18BY ABDULLAH AL JUFAILI, SHARAKAH

Top Shot . . . . . . . . . . . . . . . . . .19LARRY PAGE, GOOGLE

FROM THE EDITORIAL DESK

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Successful EntrepreneurMARIAM AL ALAWI, SOCIAL MEDIA NETWORKING ENTREPRENEUR

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FOR THE NEXT GENERATION OF BUSINESS LEADERS

NEWS IN BRIEF

Infra Oman 2011, an international exhibition will highlight the Sultanate’s rapid economic growth as seen in its world-class infrastructure projects. Infra Oman 2011 will be held on September 20-22 at the Oman International Exhibition Centre.

CAMPUS FOR CREATING NEW GENERATION ENTREPRENEURS

The proposed new campus of Gulf College Oman, to be located in Al Maabela area of Muscat Governorate, will be a centre promoting start-up enterprises for students as well as serve as an engine for employment generation for the wider society. Plans for the building revealed at the ground-breaking ceremony show business incubator centres, a community hall and offices for international companies to enable knowledge-sharing co-existing alongside the conventional library, lecture classrooms and college faculties for business and computer studies.

“There will be a big research centre and a business incubator centre here,” said Prof. Taqi bin Abdulredha al Abduwani, Dean of Gulf College Oman, providing details of the structure to occupy an area of 24,000 square metres, allotted free-of-charge by the government as part of the Sultanate’s unrelenting efforts to give priority to education.

“We already know from research that 70 per cent of the jobs are in the small self-employed projects. Our concept for this college will enable students start thinking about their own businesses from their first day here. The business incubator will provide students with opportunities to work with experienced hands by bringing them in contact with entrepreneurs and academics who will guide them in setting up their own businesses when they graduate.”

The college also expects to foster an engagement with the business community in the Al Maabela vicinity, an area shaped predominantly by a number of small repair shops for cars, a couple of medium-sized industries and car sales & service centres of major auto dealers for Toyota, Honda and Kia.

DISTRIBUTION HUB AT SALALAH PORTThe Port of Salalah has signed a Memorandum of Understanding with Spain-based global logistics leader Algeposa Group for the construction and operation of a state-of-the-art distribution centre within the port. The initiative promises to enhance Salalah’s pre-eminence as a hub not only for transshipment cargo and logistics, but distribution as well. The development is expected to open new avenues for SMEs. The venture is expected to generate over 400,000 tons of cargo annually and enable both international and Omani businesses easier access to emerging markets.

FIRST GCC-ASEAN BUSINESS FORUM IN OMANAiming to explore further trade and investment opportunities in many areas, the Sultanate will host the first GCC-Asean Business Forum in February next year. To be organised in co-ordination with the various chambers of commerce, the forum will address key issues such as connectivity, service sectors and e-commerce which are vital for development. The major areas include connectivity such as infrastructure, transportation and communication along with construction and other service sectors and IT services. The third key area includes incubation and support to small and medium enterprises.

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TRC APPROVES 53 PROJECTSThe Research Council (TRC) has agreed to finance 53 research projects covering various cultural, scientific and social fields, as well as the sectors of education, human resources, energy, industry, health, environment, biological resources, telecommunication and information systems. TRC, which aims to support researchers in implementing studies in their areas of choice that serve the Sultanate, is also considering 19 other projects.

This came in a statement by Dr Ali al Lawati, Director, TRC’s Department of Research. Al Lawati said that, till April 2011, the proposed research projects stood at 112. TRC supported 17 PhD students and 43 Masters students as part of the Council’s 2010 plan to enhance national human resources in the field of research. TRC began to set up a database for researchers in the Sultanate to help streamline contact with them. It is also supporting the holding of conferences and local institutions wishing to organise forums with a view to transferring knowledge between the local and international community.

FANTASIA WINS PRESTIGIOUS INTERNATIONAL AWARDSFantasia, a start-up media and art production company was awarded the top prize for a documentary short clip that they have produced for Information Technology Authority (ITA). The award was presented to ITA officials at the United Nations awards ceremony. The clip titled “Developing Knowledge Administration in the Government 2011 highlighted the development of the Information Communication Technology sector in the Sultanate of Oman.

Commenting after receiving the award, Zakaria Al-Zadjali, General Manager of Fantasia Establishment for Art Production and Distribution said, “All of us at Fantasia are overwhelmed to have received such prestigious award during the first year of our operations. This is credited at first to the team efforts, past experience and knowledge in the field as well as the support we have received from Sharakah to manage our business.”

“We are aware that the media industry is relatively small in the local market, yet we chose to start a business in this field because we are passionately involved in art production. Our aim is to develop projects that on one hand caters to the needs of local organization and on the other applies best quality,” added Al Zadjali.

NEWS IN BRIEF


Infra Oman 2011 will also showcase all types of building materials, heavy equipment, construction supplies, engineering and consultancy services, architectural services, and other products and services that are necessary for the successful implementation of any infrastructure project

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Sanad programme has been very strongly associated with the promotion of entrepreneurship in Oman.

For the uninitiated, Sanad programme was established almost 10 years ago to provide opportunities to Omanis to become self-employed and develop small businesses. Atleast 1,748 projects have benefited from Sanad so far leading to a

generation of thousands of employment opportunities. On the flip side, there have been many failures as well and the programme has been criticized on various grounds on number of occasions.

The most notable grouse against Sanad was that it offered limited credit facilities. The ceiling of RO 10,000 has been one of the main reasons that limited the ability

of many projects to expand. Recently, the ceiling has been raised to RO 50,000, a step which many experts consider as a move in the right track. In another related key development, a special report has been prepared by Majlis A’Shura to serve as the road map ahead for Sanad. Ruwad spoke to HE Ali bin Musallam Bin Rashid al Badi, Chairman of Sanad Evaluation Team and a member of the

SANAD - THE NEW ROAD MAPTURKI AL BALUSHI LOOKS AT A MAJLIS A’SHURA REPORT FOR REVAMPING THE SANAD PROGRAMME TO STRENGTHEN SME SECTOR IN OMAN

IN FOCUS

The new Sanad credit Limit Most notable grouse against Sanad was that it offered limited credit facilities. The ceiling of RO 10,000 has been increased by five times.

HE Ali bin Musallam Bin Rashid al Badi, Chairman of Sanad Evaluation Team and a member of the Majlis A’Shura

RO50,000

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Majlis A’Shura on the shortcomings of the programme and an overview of the report that will guide Sanad towards success path.

It should be noted that Omanizing certain activities was not the right decision to support the beneficiaries of Sanad programme. This impacted the Omani economy, at the macro as well as the micro level. For example, the Omanization of sewing profession has affected the textile/garments related industry. Many units have been hit very badly. There is a lack of skilled Omani women. Many of them don’t have adequate training. As a result, due to lack of confidence, many customers prefer to go to the neighboring countries to sew their dresses on important occasions such as religious festivals. In such a scenario, non-Omanis should be allowed to work to protect the local entrepreneurs.

Al Badi stressed that Sanad Programme Committees in different wilayats should play their role more seriously and take the required decisions that benefits the society in general. “These decisions should be carefully studied and evaluated to understand the expected added value that could result from Omanizing any profession. If such studies are made, outcomes will be clear-cut and serve the interests of all stakeholders,” he said.

“While working on the evaluation report of Sanad Programme during the last 10 years, Majlis A’Shura team found that the working of Sanad committees in different wilayats is not streamlined and varies from one wilayat to the other. The team concluded that many committees lacked the resources to implement the initiatives. And the relevant authorities

had to revoke some of the decisions that were found to be incorrect,” he added.

On the protection to domestic industries from foreign companies, he said that the Sultanate has provided protection to local entrepreneurs which have also adversely impacted the SMEs. “Oman has signed many international trade agreements such as the World Trade Organization (WTO), bilateral free trade agreement with US and other similar kinds of pacts. Consequently, Oman has to allow entry to foreign players in many segments. It should be noted that the success of Sanad Programme has relied to a great extent on the protection to

domestic businesses against foreign competition in many segments. Such support could not be guaranteed forever due to the socioeconomic changes in the national and global economy.”

On the issue of proper training plan for Sanad beneficiaries, Al Badi said that there is a lack of comprehensive strategy for training despite the fact that such strategy is very crucial for

the survival of small businesses. The Omanization of certain professions is not going well in many cases as many of them have failed to provide the required high quality services such as the sewing by females and foodstuff sales, which were Omanized in 2002. Despite the Omanization, the female sewing profession still constitutes only 21 per cent of the market as the beneficiaries are not able to ensure services of high quality on a sustainable basis. The Majlis A’Shura report highlighted lack of training as one of the main challenges that not only hindered the progress of many Sanad projects but led to the complete halt of some of them.

On the other hand, manufacturing oriented projects received the least support from Sanad Programme. Out of a total of 1748 projects supported by Sanad, only three of them were in the manufacturing segment. The total amount provided to these projects was a meager RO 20,000 out of RO 6.9 million disbursed. This is quite disappointing as manufacturing projects play an important role in the growth of national economy

Lack of TrainingThe Majlis A’Shura report highlighted lack of training as one of the main challenges that not only hindered the progress of many Sanad projects but led to the complete halt of some of them.

The decisions should be carefully studied and evaluated to understand the expected added value that could result from Omanizing any profession. If such studies are made, outcomes will be clear-cut and serve the interests of all stakeholders

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and generating job opportunities. Moreover, such projects also make the nation self-reliant by meeting demands of a section of the market and society. The Sanad Evaluation Committee opined that promoting entrepreneurship should go beyond creating job opportunities for one or two persons. It should rather be a part of the national strategy that expands the production base and diversify sources of

national income through developing the small and medium size enterprises which are the mainstay of the business sector in any country.

The special report proposes to set up an independent agency to be in charge of developing the small and medium size enterprises. This agency will be managed by a board comprising highly

qualified and professional members from the public and private sectors as well as specialists from the government.

It also proposes that Sanad Programme should be part of the organizational chart of this agency. Sanad is currently under the Ministry of Manpower. The committee recommended that technical and marketing support for Sanad projects should continue; conducting regular evaluation of their performance; eliminating the difficulties faced by entrepreneurs; simplifying the procedures to set up such projects and providing entrepreneurs with the required training. The recommendations also include assisting entrepreneurs in conducting the feasibility studies for their projects.

The report also highlighted the fact that many aspects should be taken into consideration before taking a decision to Omanize any business such as the dynamics of the local society, how far it accepts entrepreneurship and the possibilities for success.

Proposals have been made to provide the required guarantees to cover the risks of the loans provided to projects under its jurisdiction. This guarantee will be provided after ensuring the feasibility of the project. It also recommended cancelling the 2 per cent interest rate on the loan and the guarantor.

Al Badi pointed out that this roadmap has been made to bring Sanad Programme back on the right track. “It is a step forward in promoting entrepreneurship and encouraging entrepreneurs to have their own ventures,” he said.

Sanad’s New Road Map

• Focus heavily on training• Provide guarantee to cover the risks on loans• Remove the interest on loans• Assist in conducting feasibility studies• Simplify the procedures• Sanad to be transferred under an independent agency• Government should have a more realistic Omanization policy

IN FOCUS

The New Direction Promoting entrepreneurship should go beyond creating job opportunities for one or two persons. It should rather be a part of the national strategy that expands the production base and diversify sources of national income through developing the small and medium size enterprises

A Sanad shop in Muscat

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SMALL IS THE NEW BIGSMALL BUSINESS IS NOW ‘BIG BUSINESS’, SAYS PHIL STRANGE. HE EXAMINES NEW RESEARCH ON THE SUBJECT FROM A GCC PERSPECTIVE, AND DRAWS SOME CONCLUSIONS OF THE FUTURE POTENTIAL OF ENTREPRENEURISM AND SMALL TO MEDIUM ENTERPRISES IN THE REGION.

Recent research by Dun & Bradstreet shows that small to medium enterprises (SMEs) contribute more than 60 per cent of employment in high-income countries, and about 50 per cent of the gross domestic product (GDP). Similarly, in emerging markets, SMEs play an important role, although their contribution to these economies has been relatively lower for a variety of systematic reasons.

In the Gulf Cooperation Council (GCC) region, oil revenues have of course traditionally been a leading contributor to GDP. Consequently, the role for SMEs has been relatively limited. While no precise statistics are available (due to a general lack of research about SMEs in the region), as per estimates from Dun & Bradstreet, the contribution of SMEs to GDP in GCC countries is between 15 and 40 per cent.

However, most GCC governments have embarked on a programme of economic diversification and a greater role for private sector in economic growth. GCC governments have also identified the promotion of SMEs as a key instrument of economic diversification and for furthering increased participation of GCC nationals in the private sector.

In its National Vision 2030, for example, the Qatari government has recognized the need to diversify the economy and to promote the SME sector, as it is widely recognized that the SME contribution to Qatar’s GDP is currently relatively low. Furthermore, much of the private sector/SME activity is focused on lower-value added activities like trading and retail.

With its focus on building a knowledge-based private sector, Qatar is looking to enable development of new enterprises through creation of an environment conducive to entrepreneurism.

GCC SME ChallengesSMEs in the GCC region as a whole face multiple challenges. While these are generally similar to those faced by SMEs globally, the economic and regulatory environment in GCC region tends to make some more acute.

One of the key challenges is access to finance. During a survey by Dun & Bradstreet in Qatar, for example, 38 per cent of SMEs expressed that credit limits provided by banks were not sufficient and 40 per cent said that banks require unreasonably high collateral for extending credit to SMEs.

VIEWPOINT

Contrasting PictureSmall to medium enterprises (SMEs) contribute more than 60 per cent of employment in high-income countries, and about 50 per cent of the gross domestic product (GDP).

Phil Strange, Chief Financial Officer, Dun & Bradstreet Middle East & South Asia

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Furthermore, until recently, there have been limited avenues for innovative SMEs to access venture capital. Some of the other challenges that SMEs in the region face are:

• Lack of clarity in regulatory environment – While most GCC economies have an overall liberal economic regulatory regime, there remain areas of concern. Regulations pertaining to insolvency, intellectual property, enforcement of contracts, ownership and succession need to be clarified and strengthened for SMEs to grow in the region.

• Lack of access to information and advice – Entrepreneurs in the GCC do not have access to precise market information owing to relatively less developed statistics in the region. This often prevents entrepreneurs

in the GCC from making scientific choices about business and investments.

GCC Government InitiativesThe governments in the GCC region have increasingly demonstrated a greater focus on the SME sector in the last few years. The initiatives adopted by governments include setting up of SME focused development institutions, regulatory improvements to encourage exports and to increase international ‘Ease of Doing Business’ rankings.

SME Development in the GCCFrom the multiple government initiatives in place for the sector, it is clear that the SME sector is a priority for development across the region. However, the efficacy and adequacy of these initiatives will only be visible in the long-term.

Absence of Market IntelligenceEntrepreneurs in the GCC do not have access to precise market information owing to relatively less developed statistics in the region. This often prevents entrepreneurs in the GCC from making scientific choices about business and investments.

GCC governments have also identified the promotion of SMEs as a key instruement of economic diversification and for furthering increased participation of GCC nationals in the private sector

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That said, there exist a number of areas in which progress needs to be made, failing which many of these initiatives may not realize their full potential:

• Developing a standardized SME definition- One of the major challenges in ensuring productive development of the SME sector is the sheer lack of data relating to the sector in GCC. Most countries in the GCC do not have a formal definition of SMEs that is commonly accepted by government, financial institutions, statistical agencies and development institutions.

• Developing detailed SME statistics- Statistical agencies in the GCC countries do not regularly publish detailed SME statistics – in terms of their contribution to GDP, employment and exports. Without formal, regularly published statistics, it is difficult for SME development institutions to monitor the impact of their respective policies and programmes.

• Encouraging ‘good value’ SMEs- Even as the SME has become a talking point in the region, it needs to be highlighted that having a greater number of SMEs itself may not constitute ‘progress’ or ‘development’. In fact, some economists argue that large enterprises may generate greater value-added per employee than ‘a typical SME’. The key word being the ‘typical SME’ as historically, SMEs in the GCC have focused on sectors resulting in a large base of unskilled workers and low employee productivity. With the

economic policy of governments in the GCC (especially in Qatar and UAE), focused on the agenda of nationalization and knowledge economy, it is imperative that SME programmes must encourage innovation and productivity.

• Are entrepreneurs born or are they made? – Even as there are no clear answers globally to this classical debate, in the GCC economies, there is evidently little choice but to believe that entrepreneurs are made. Most GCC economies have rapidly growing populations and a national population dominated by the under-25 age group. Consequently, governments must look to encourage and foster entrepreneurship – especially among nationals. Currently, government and oil & gas sectors, and lately banking, have been the employers of choice for national youth in the Gulf region.

Availability of better choices, lack of awareness and training and perceived higher risks of entrepreneurship have been strong deterrents for GCC national youth to start new enterprise, so there is a crucial need to find local solutions consistent with local social, cultural and economic considerations.

• Competitiveness – Historically, GCC economies have been import-dependent for a range of goods and services, thereby local SMEs have focused only on trading, retail and low-end manufacturing sectors. In a bid to increase the role of SMEs, governments in the GCC have to enhance competitiveness of local industry from a regional as well as a global perspective. Boosting

VIEWPOINT

Dilemma for Youth Availability of better choices, lack of awareness and training and perceived higher risks of entrepreneurship have been strong deterrents for GCC national youth to start new enterprise, so there is a crucial need to find local solutions consistent with local social, cultural and economic considerations.

Even as the SME has become a talking point in the region, it needs to be highlighted that having a greater number of SMEs itself may not constitute ‘progress’ or ‘development’

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the competitiveness of local SMEs in emerging/higher value-added sectors like manufacturing, tourism, information technology, media, healthcare, and green technologies should be a priority.

• Improving access to finance – This is an issue commonly highlighted and forms a part of the agenda for most SME-focused development institutions in the GCC. However, most of the solutions have focused on a direct intervention approach, where government agencies have set up funds for financing SMEs directly or through credit guarantee schemes. However, these mechanisms do not address the core structural issue of the information asymmetry that exists between banks and the SMEs.

To address this issue, governments must look to develop a robust and comprehensive financial information infrastructure – covering credit bureaus, rating agencies, asset registries, trade payment bureaus, financial reporting norms and accounting and auditing standards (Qatar Central Bank recently announced the set-up of a Credit Bureau that will ultimately help improve availability of credit to individuals, SMEs and corporate).

Future SuccessWhile progress has been made in this area in most GCC countries, actual implementation of such institutions and systems has been protracted due to the complexities related to the involvement of multiple stakeholders.

In the GCC, the process could benefit

if a roadmap for such financial infrastructure is laid out in the national economic agenda. Economies may also benefit through enhanced regional co-operation in this arena, by enhancing better sharing of information and experiences.

The SME development agenda is designed to yield economic diversification over the long-term and the government priority for SMEs must be seen as natural.

However, there is a need to link these initiatives to specific short-term and long-term targets. One of the crucial acid tests will be whether fledgling SMEs in the GCC could grow to be the Microsofts, Hondas or Apples of tomorrow. Only time will tell.

Lack of Focussed Approach Most of the solutions have focused on a direct intervention approach, where government agencies have set up funds for financing SMEs directly or through credit guarantee schemes. However, these mechanisms do not address the core structural issue of the information asymmetry.

EASE OF DOING BUSINESS

COUNTRY RANK IN 2010 RANK IN 2011

Bahrain 25 28

Kuwait 69 74

Oman 57 57

Qatar 39 50

Saudi Arabia 12 11

UAE 37 40

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All of us enjoy using facebook or sablat to connect with our friends and like-minded people. But how about using

social media as your business? Mariam Ghalib Al Alawi started her venture Soshteck Oman to make companies leverage the power of social media to promote their products and services by connecting them with their relevant stakeholders including customers.

The young Omani is armed with a Bachelor’s degree in Information Technology with specialization in Internet Technologies from India. During her study, Mariam was very active in the blogs and interactive websites. This helped her to expand her knowledge base and network with relevant communities. When she came back to the Sultanate, she started as a public relations professional in Intercontinental Hotel and thereafter moved to the real estate sector. Thereafter she set up her unique venture in social media.

“I benefitted a lot from coming in direct contact with customers through the internet. I managed to identify their needs. After working for some time, I joined hands with Tariq al Barwani to devote attention to KnowledgeOman.

SUCCESSFUL ENTREPRENEUR

Learning Curve The young Omani is armed with a Bachelor’s degree in Information Technology with specialization in Internet Technologies from India. During her study, Mariam was very active in the blogs and interactive websites. This helped her to expand her knowledge base and network with relevant communities.

HARNESSING THE POWER OF SOCIAL MEDIAMARIAM AL ALAWI OF SOSHTECK OMAN IS ONE OF THE FEW ENTERPRISING OMANI WOMEN WHO ARE MAKING A BUSINESS OUT OF SOCIAL MEDIA. TURKI AL BALUSHI REPORTS

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Enjoy your Work and Education She got a big thrust and momentum after obtaining the MA degree from Liverpool University through distance learning. She found the study quite interesting as it was in the same field in which she is working.

com. I also established my Arabic website. Joining KnowledgeOman.com was a step forward for me. Moving on, I joined an IT and networking company. I worked for Tamami Networks, one of the pioneering and specialized companies in the field of IT in Oman. I then realized that this job is just a bridge through which I can venture into social media field,” she said.

Elaborating more on her early steps, she said, “I received a number of offers from companies to provide social media services. I managed to open many channels though social media. At this stage, I started to consider setting up a company specializing in social media. The Omani market was in a definite need for such services.” During the first stage of establishing her company, she consulted Khalfan al Uraimi, a renowned human resource development (HRD) expert. He helped her in devising the strategies and plans for the company. “He helped me a lot in developing the strategies and was a great source of inspiration for me,”

she added.

“When ideas were crystallized, I became more serious about taking the plunge as I felt the market was ready for such an initiative. In the early stages, I used to visit companies and offer my professional services,” she said. Apart from social media solutions to corporates, she also provides copy writing and advertising related services. She has managed to create a professional team to take her company forward.

She got a big thrust and momentum after obtaining the MA degree from Liverpool University through distance learning. She found the study quite interesting as it was in the same field in which she is working. “Study plays an important role in enhancing my knowledge and skill. This kind of learning has reflected positively on my career,” she added.

“Unfortunately many youths start their ventures without conducting the required studies and developing the proper plan.

It is very crucial for any start-up project to devise the details of the plan before starting the work. They also need to get advice from professionals and experts in the field,” she said.

Mariam is managing a number of social campaigns on facebook. She believes that volunteerism and corporate social responsibility (CSR) are very important. She affirms that CSR is not restricted to big companies or brands but is a responsibility of small enterprises as well. “Volunteerism does not mean that you give your time for things that will not profit you. On the contrary, involvement in such initiatives will ensure your presence and open new horizons for you,” she added.

“Social media started gaining momentum and thrust in the Sultanate that is the reason I feel optimistic about the future of this industry and the growth rate it may achieve. With the rapid development in the products and services market in Oman coupled with the new technologies that are emerging every day, I am sure my business will witness remarkable growth in the years to come,” she concluded.

Study plays an important role in enhancing my knowledge and skill. This kind of learning has reflected positively on my career

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Events of co

T he business scenario has changed quite a lot in Oman in the last seven years. More companies and a number of

new projects have created vibrancy in the market. As a result, the exhibition and conference market has seen plenty of action in the last few years. Earlier few specialist firms had served the growing demand for creating and managing events of different nature and scale. But the scenario is no longer the same anymore. The field has become more competitive with the entry of many players. Limited competition has paved the way for intense competition with a major thrust on investments in different sectors of the economy. Though opportunities have mushroomed all over the market but it has become difficult for smaller companies to survive with many large companies dominating the fray. SMEs mantra for survival is innovation.

At the time when the social, sports and business events are witnessing remarkable growth, the door is now wide open for event management companies. Many events held in the Sultanate now require special expertise in event management. The Sultanate currently hosts about 58 consumer exhibitions which means that on an average four exhibitions are organized in a month. This means that smaller companies seeking to have a foothold in the market have a good opportunity to thrive provided they can create a differentiated service by offering creative solutions in a market undergoing evolutionary change. When the companies operating in the field of exhibition management compete with each other, they can succeed only by providing value to their clients in the most efficient manner. Such opportunities also lead to scenarios whereas smaller firms collaborate with larger entities to work together in

making an event successful. The smaller firms have to identify their niche and work around their strengths to have a share in this sector. They need to do their best to develop new methods and avenues. So despite the fact that the Sultanate has witnessed many events in the last few years, still the smaller companies operating in this vital sector face a lot of challenges. “There have been official demands to expedite the enforcement of the Exhibition Organization and Management bylaw prepared by the Ministry of Commerce and Industry.

“This bylaw urges companies to abide by the international standards and use it as a reference point for governing the investment, operation of exhibition management companies as well as the competition among them,” said Ayman al-Hassani, a member of Oman Chamber of Commerce & Industry (OCCI)


INSIGHT

Opportunities Galore Many events held in the Sultanate now require special expertise in event management. The Sultanate currently hosts about 58 consumer exhibitions which means that on an average four exhibitions are organized in a month.

THE SMALL EXHIBITION AND EVENT MANAGEMENT COMPANIES ARE SET FOR A NEW PHASE WITH THE IMPLEMENTATION OF FRESH RECOMMENDATIONS TO OVERHAUL THE SECTOR. TURKI AL BALUSHI REPORTS

TIME FOR A RETHINKING

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Tough Time for Smaller Event Firms The terms stipulated in the bylaw will force the small and medium companies to identify better business avenues because they are going to face major challenges from large companies and need to provide high quality that should be ensured all the time.

comex oil & gas auto expo

and Chairman of OCCI’s Committee on Industry and Promotion. OCCI’s Exhibition Committee has submitted a proposal to establish a committee to be chaired by the Minister of Commerce and Industry and comprising representatives from some private agencies in addition to OCCI. “This committee will be in-charge of developing the sector and evaluating how far the exhibition management companies abide by the rules and regulations of this bylaw.

The committee will also reconsider the mechanism used in distributing the consumer exhibitions to the companies operating in this field. The distribution will be made according to the size of the company and the number of exhibitions it has organized in the past three years. We have stressed on the importance of regular revision of the laws and regulations that regularizes the sector. It has highlighted the importance of involving OCCI in ensuring compliance with this bylaw. However, many small companies believe that it is very tough for them,” he added.

“The terms stipulated in the bylaw will force the small and medium companies to identify better business avenues because they are going to face major challenges from large companies and need to provide high quality that should be ensured all the time. These challenges may be overcome only through extensive participation at the conferences and promotional seminars as well as playing an active role in OCCI to benefit from the expertise of the leading companies and improve their abilities to organize local and international exhibitions. If the small and medium companies follow this strategy, they will be able to strengthen their presence in the market in the coming period,” he said.

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COLUMN

Basic Elements The cash flow statement is divided into two elements mainly the revenues (the amount generated by the project) and the expenses (the amount spent by the project). Revenues are the amount that has a positive impact on the organization.

STATEMENT OF CASH FLOWS IT IS AN EFFECTIVE TOOL TO UNDERSTAND THE PERFORMANCE AND EFFICIENCY OF AN ORGANIZATION. IT ALSO HELPS IN IDENTIFYING THE SOURCES OF INCOME.

While developing the business work plan to obtain the required financing for a project,

we usually look into a number of criteria. The most important of which is the monthly cash flow statement of the organization. This statement shows the availability of liquidity at different points and monthly intervals. We would like here to point out the basic elements of such statement and how to prepare it.

Basic Elements The cash flow statement is divided into two elements mainly the revenues (the amount generated by the project) and the expenses (the amount spent by the project). Revenues are the amount that has a positive impact on the organization. Theses are the amounts generated in cash or through credit selling.

The expenses are the amounts spent to manage or set up the organization. They are divided into two types namely fixed expenses and variable expenses. The first one does not change depending on the size of production and are paid in timely manner such as salaries, rent fees, registration or renewal fees and others. The variable expenses include the cost of the raw material, the businesses carried out by

the organization such as promotion of services or products. The expenses are divided into many categories such as administrative expenses, operational expenses and others.

The objectives of the statement are: Assist the owner in deciding the costs incurred in the setting up and operation of the organization as well as the future forecasts of the cash flows. Assist the investor in deciding the ability of the company to continue and meet its financial obligations.

Importance of the statement As we said earlier, it gives a clear view about the performance of the company at different intervals. It is an effective tool to understand the performance and efficiency of an organization. It also helps in identifying the sources

of income. It shows the expenses and costs incurred in the operation of an organization. It identifies the detailed costing of the project especially the higher costs. This helps in reducing the high costs and well as the total costs. It shows the viability of an organization. It reflects the organization’s ability to meet its obligations. It assists investors in evaluating the performance of the company and its ability to repay the investors.

There are two ways for preparing the statement namely the direct way and indirect way. We have highlighted here the direct way as it gives a clear picture that helps the decision maker in making an informed decision. If anyone start up or an existing entrepreneur is interested in knowing more about it, they are most welcome to contact us

Statement of cash flow for 12 months 1 2 3 4 5 6 7 8 9 10 11 12 Total

Revenues Cash income Credit sale Capital Revenues Expenditure ( cost ) Registration and renewal Salaries and wagesElectricity and water Promotion and marketing Total expenses Cash (surplus/ deficit) = total revenues – total expenses

Abdullah al Jufaili, General Manager, Fund for Development of Youth Projects (Sharakah)

JUL-SEP 2011

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Lawrence “Larry” Page is an American computer scientist and an entrepreneur who, with Sergey Brin, is best known as the co-founder of Google. He is also the Chief Executive Officer of Google. His personal wealth is estimated to be $19.8 billion. Born in Michigan, Page belonged to a family of computer professionals. His father earned a Ph.D. in computer science in 1965 when the field was in its infancy, and is considered a ‘pioneer in computer science and artificial intelligence’. Both he and Page’s mother were computer science professors at Michigan State University.

Page holds a Bachelor of Science degree in computer engineering and a Master’s degree in computer science. While at the University of Michigan, Page created an inkjet printer made of Lego bricks (actually a line plotter). During an interview, Page recalled his childhood, noting that his house ‘was usually a mess, with computers and Popular Science magazines all over the place.’ His attraction to computers started when he was six years old when he got to ‘play with the stuff lying around.’ He became the ‘first kid in his elementary school to turn in an assignment from

a word processor.’ He said that ‘from a very early age, I also realized I wanted to invent things. So I became really interested in technology and business… probably from when I was 12, I knew I was going to start a company eventually.’

After enrolling for a Ph.D. programme in computer science at Stanford University, Larry Page was in search of a dissertation theme and considered exploring the mathematical properties of the World Wide Web, understanding its link structure as a huge graph. His supervisor Terry Winograd encouraged him to pursue this idea, which Page later recalled as ‘the best advice I ever got’. Page then focused on the problem of finding out which web pages link to a given page, considering the number and nature of such backlinks to be valuable information about that page. In his research project, nicknamed ‘BackRub’, he was soon joined by Sergey Brin, a fellow Stanford Ph.D. student.

At the time Page conceived of BackRub, the Web comprised an estimated 10 million documents, with an untold number of links between them. The computing resources required to crawl such a beast were well beyond the usual bounds of a student project. Unaware of exactly what he was getting into, Page began building out his crawler.

To convert the backlink data gathered by BackRub’s web crawler into a measure of importance for a given web page, Brin and Page developed the PageRank algorithm, and realized that it could be used to build a search engine far superior to existing ones. It relied on a new kind of technology that analyzed the relevance of the back links that connected one Web page to another. In August 1996, the initial version of Google was made available. In 1998, Brin and Page founded Google, Inc. We all know that Google is firmly entrenched in our life, professional as well as personal. And it is gaining more and more importance in our life -- Chrome, Chromebook, GooglePlus…

Source: From the web

TOP SHOT

Universal Role Model In 2003, Page received an honorary MBA from IE Business School “for embodying the entrepreneurial spirit and lending momentum to the creation of new businesses. In 2011, he was ranked 24th on the Forbes list of the world’s billionaires and as the 11th richest person in the United States.

THE WHIZ KIDLARRY PAGE, THE CO-FOUNDER OF GOOGLE, HAS BEEN AMONG THE MOST HIGHLY SUCCESSFUL ENTREPRENEURS IN THE LAST 15 YEARS

Job – Co-founder & CEO, GoogleAge – 38 yearsPersonal Wealth - $20 billion

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