OER Business Summit discusses growth imperatives for Oman’s economy
Private sector was urged to embrace innovation, drive productivity and take up more responsible roles in catalysing growth
Under the auspices of His Excellency Yahya bin Said Al Jabri, Chairman of Special Economic Zone Authority at Duqm (SEZAD), a cross section of policy makers and business leaders brought to the table their wisdom and explored new imperatives of growth and diversification for Oman’s economy, at the tenth edition of OER Business Summit on Wednesday at Sheraton Oman. His Highness Al Sayyid Dr. Adham Turki Al Said, Assistant Professor of Economics at the College of Economics and Political Science, Sultan Qaboos University, delivered the keynote address. Nima Abu Wardeh, an award-winning bilingual English Arabic broadcast journalist and noted columnist, moderated the two panel discussions at the summit.
Under the topic ‘Oman: Catalysts for growth’, the summit focussed on unlocking the growth potential of the sectors in which Oman has a distinct advantage such as - manufacturing, logistics, tourism, mining, SME etc. Comprised of two panel discussions titled ‘Actioning growth enablers – An imperative’ and ‘Leveraging Oman’s competitive advantage’, as well as a mix of paper presentations, the summit deliberated on how certain key enablers such as innovation, digitalisation, regulatory changes and a more business friendly environment could help the Sultanate maintain its growth momentum in the coming years.
Welcoming the august gathering at the 10th edition of the OER Business Summit, Alpana Roy, Executive Vice President of United Media Services, said, “OER Business Summit started off with a genuine intent to bring together members of the government and the corporate community on a single platform to engage in an open dialogue. Over the last decade, it has taken a life of its own growing into a national forum where leaders from government and business have shared their wisdom and learning with their peers enriching them with knowledge and expertise.”
She added, “The other big strand was
to encourage a more open discussion, where different viewpoints could be synthesized to arrive at practical solutions for challenges impacting the economy. We are proud to state that we have achieved some of these objectives over the years and have contributed in our own small way to effect positive changes in policies that are helping businesses to succeed and thrive in Oman.”
In his keynote address, HH Dr Adham Al Said called on the private sector to embrace innovation and take up more responsible roles in catalyzing growth. “The key challenges for Omani economy are innovation, comprehending the complexity of the economy and having a sustainable growth model. Currently the private sector is not driving productivity but is doing business as usual,” he said.
HH Dr Adham added, “Servicing foreign debt has been a challenge for the economy. The government spends almost RO800mn for servicing its debts and it’s expected to reach RO1bn by the next year. This has become an enormous burden on the government. We need to do things differently. The government can no longer be the key player in the economy. The private sector needs to take up its role.”
He added, “We are still in the midst an economic slowdown. Although the economy has picked up slightly, it is because of the oil price increase and not because we have done anything differently. One of the most contentious
Servicing foreign debt has been a challenge for the economy. The government spends almost RO800mn for servicing its debts and it’s expected to reach RO1bn by the next year. This has become an enormous burden on the government
issue is unemployment. Beyond the numbers, we have to look at the social impact of unemployment. Majority of the unemployed are college graduates. Economic growth should aim at creating meaningful jobs for the national workforce and not GDP growth only. Women, who constitute 50 per cent of the population, are suffering from unemployment more than men.”
In his presentation, Dr. Imran Mushtaq, Director PwC Oman, said taxation could be used as an effective revenue generator for the government of Oman, as governments across the world traditionally relied on taxation to fund their operations. He said that broad based indirect taxation such as VAT would be more effective, adding that governments needed to consider tax policy and approach.
In his presentation, Fahad Al Adi,
Head of Corporate Support, Minerals Development Oman (MDO), the new flagship of Oman’s mining and mineral processing industry, said MDO was seeking to build on the nation’s rich and ancient mining heritage that goes back over 5,000 years. He added, “A five-year strategic plan is in place that defined our portfolio. We are also focussing on other commodities driven by market needs such as Gabbro &
Salt and considering the possibility of developing up middle and downstream for value addition.”
Jalal Al Lawati, Director of Marketing and Promotion, Special Economic
Zone Authority at Duqm (SEZAD), did a comprehensive presentation on the current and upcoming developments in Duqm. In another presentation, Meenakshi Sundaram, tax director, KPMG Oman, said human resources, technology, national resources and foreign investments were the key catalysts for Oman’s economic growth.
ACTIONING GROWTH ENABLERS
Talking in the first panel discussion, Dr Khalfan Al Barwani, Vice President - Admin, Investment and Market Operations, Central Bank of Oman, said, “Deficit has been a big challenge since the oil price fall. Initially we thought it would subside after a short while; but now it has become a new normal. Going forward, we have to find new avenues of growth and focus on increasing nonoil revenues; it’s high time we rationalised the government expenditures.”
Pankaj Khimji, Director, Khimji Ramdas Group, stressed the importance of making economy more attractive and competitive for the investors. He said, “Today we have more regulations and enforcement than incentives. We have implemented a lot of reforms. How far we can stretch? We are trying to attract FDI and develop core industries. But if we are not attractive and competitive, we cannot attract foreign investors.” He added, “Over the last 50 years, Oman has posted steady and marginal growth which fuelled various sectors. Surprisingly, in the last year we saw a drop in the per capita consumption of food products. This is a significant development we need to look at.”
Eddy Abboud, General Manager – Oman, GBM, chimed in saying, “We need to be more agile when it comes to regulation. International companies are leaving the country while we desperately need foreign investments. We had plans and strategies which have not taken off as expected and failed in reaching the execution level.”
Aiman al Shukaili, Head of Renewable Energy, PDO, said, “Energy transition is a priority for PDO and other oil and gas sector companies. Doing things differently is a must. It is not a luxury. The cost of renewable energy has dropped drastically, because of government subsidies. PDO has commissioned larger projects in this area.”
George Freiji, Vice President, PET Resin SBU & Procurement, Octal, called for government’s intervention in opening up new markets for Oman’s manufacturing companies, by enhancing diplomatic relations and opening up bilateral trade with the various countries and regions.
Khalid Ansari, CEO, Al Anwar Holdings, opined that working in silos remained the biggest impediment to growth. He said, “In the last 49 years, the government of Oman has invested heavily in building infrastructure and good regulation. Oman is blessed with
political stability and have almost one billion consumers at its door step. Yet things are not happening because of the silo syndrome.”
LEVERAGING COMPETITIVE ADVANTAGE
Talking in the second panel discussion, Nasser bin Saif Al Maqbali, CEO, Minerals Development Oman (MDO), talked about the new trends and developments in Oman’s mining sector. He said instead of allowing everyone to come and invest in this vital sector, MDO is looking at investors with solid experience and superior technical prowess and financial capabilities.
Reggy Vermeulen, CEO, Port of Duqm, said private sector played a pivotal role in the development of Duqm. He said, “Minerals are Oman’s new oil.
The country should also explore the enormous opportunities in renewable energy by taking advantage of the solar and wind potential in Oman’s mountains and deserts.” He said under Asyad Oman had broken the silo syndrome in logistics, one of the key diversification sectors. He opined that ports in Oman could work together rather than compete one another as each one of them has unique specifications.
Malak Al-Shaibani, Director General, Marketing and Media, Madayn, corroborated reiterating the importance of packaging and promoting Oman as a country. The biggest challenge is to position Oman in the changing market situation and keeping abreast of the unprecedented technological changes in the manufacturing sector, she added.
Jamal Al Azki, Regional Vice President – Europe, Oman Air and Salim Al Flaiti, Acting General Manager,
Oman Convention & Exhibition
Centre, explained how the tourism and allied sectors had achieved a remarkable collaboration among its different stakeholders. The formation of Oman Aviation Group contributed significantly in breaking the silo and integrating the entire aviation sector in the country, Jamal added.
Vishal Goenka, CFO, Renaissance Services, said new laws and regulations would improve the ease of doing business in Oman. He said the government was responsive to the grievances of the private sector while implementing certain law and regulations.
Petroleum development Oman (PDO),
Octal, Omantel, Renaissance Services, Sohar International, the Public Establishment for Industrial Estates (Madayn) and Port of Duqm were the Strategic Partners of OER Business Summit 2019. GBM Oman was the Digital Transformation Partner while Oman Air was the Official Airline Partner of the event. Al Anwar Holding and Muscat Eye Laser Center were the Support Partners; Dhofar Insurance - the Insurance Partner; Takaful Oman Insurance-the Islamic Insurance Partner; Genesis-the Automotive partner; the Special Economic Zone Authority at Duqm (SEZAD) -the Endorsing Partner; and Arabian Research Burea - the Survey Partner. Times of Oman and Al Shabiba were the Media Partners; Businessliveme. com- Digital Media Partner and Mazoon, the Print Partner.
OER’s Top20 Awards and Business Excellence Awards 2019 were also presented at the Business Summit. The awards were presented by His Excellency Yahya bin Said Al Jabri, Chairman of Special Economic Zone Authority at Duqm, Atulya Sharma, CEO of United Media Services and Alpana Roy, Executive Vice President of United Media Services.