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New labs to unlock growth in Oman’s fisheries sector

Plans to accelerate development of the Omani fisheries industry are gaining pace, with a series of temporary labs designed to help operators overcome challenges.

Launched in September by the Ministry of Agriculture and Fisheries (MoAF) and running until October 26, the fisheries labs brought researchers and industry experts together to look at ways to maximise growth in the sector, with a focus on aquaculture, catch and export.

Among the key goals of the project is boosting the contribution made by fisheries to GDP, increasing the value of fish products and creating more job opportunities for Omanis.

Push to more than double fish production between 2014 and 2020
The initiative forms part of a broader national roadmap, developed in cooperation with the World Bank. Fisheries has been identified as one of five key focus areas in the government’s current five-year development plan (2016-20), which seeks to ensure the industry’s sustainability through to 2040.

The government has pledged to invest $1.6bn under the National Fisheries Development Strategy 2013-20, with the aim of increasing production from 200,000 tonnes in 2014 to 480,000 by 2020, and creating 20,000 new jobs.

A cornerstone of the strategy is the establishment of a fisheries harbour at the Port of Duqm, where the government plans to create a special economic zone that will include 60 processing facilities, cooling and freezing stores, and ship maintenance workshops.

Robust fisheries growth, sector financing trends
These efforts come on the back of strong growth in the fisheries sector. Total fish production increased by 9% last year, and the industry has recorded average annual growth of 12.1% since 2011, according to the MoAF. Total catch volumes also rose over the period, from 158,000 to 280,000 tonnes. Fish production has exceeded 1m tonnes since 2011, contributing around OR975m ($2.5bn) to the economy.

This consistent growth, coupled with government support, has enabled the sector to attract substantial financing; fisheries accounted for 29% of all loans dispersed by the Oman Development Bank (ODB) in the first eight months of this year.

The ODB granted 1152 loans worth OR4.8m ($12.5m) to the fisheries sector, making it the second-highest recipient of funding from the bank, behind only industry, and ahead of agriculture, health and education.

Despite recent expansion, fisheries contributed 0.8% to GDP in 2016, demonstrating the significant growth potential of the industry and prompting the World Bank to call for national operators to move beyond only harvesting fish and establish themselves across the entire value chain. This includes processing, logistics, wholesaling, marketing and retail.

Fishing to boost Omani employment and self-sufficiency goals
Unlike many other industries in the country, traditional artisanal fishermen are responsible for the overwhelming majority of output, with small, local fishing operations making up 99% of production, according to the World Bank. An estimated 45,000-50,000 Omanis rely on fishing and related activities for their livelihoods.

October brought news that under a new scheme, an additional 700 licences will be made available to locals wishing to work in the traditional fishing segment – a sign the government is keen to encourage continued participation of Omanis in the sector.

The country also represents a strong homegrown market for its produce, with the population consuming almost double the global average amount of fish. As such, fishing plays an important role in long-term goals for food security and self-sufficiency.

Overall, Oman produces more fish than it consumes, meaning that it is able to export a substantial amount. Last year, it exported 41% of total produce caught, according to the National Centre for Statistics and Information. Further expansion would therefore boost international trade opportunities.

Source:https://oxfordbusinessgroup.com/news/new-labs-unlock-growth-oman%E2%80%99s-fisheries-sector

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Oman’s new mining legislation set to address stakeholder demands

As part of PAM’s responsibilities in sector governance and organisational structure, the primary objective of the law is to address the factors that have historically hindered foreign investment in Omani mining. Drafting was reportedly completed in 2015, with the legislation submitted to government ministries for review.

Priority Issues
Subject to final approval, the new mining law is expected to decrease complexity in the sector and make operating in Oman easier and more transparent for potential investors. The draft law envisages, for example, longer mining leases, making it attractive for investors to enter the sector. It is also expected to centralise a process of licensing applications that currently involves multiple agencies.

Stakeholders are hoping that the regulatory revamp will lead to increased legal clarity. “Mining has huge potential in Oman, but we have yet to see a large-scale project be undertaken in the country, and thus regulating the industry is still a work in progress,” Ernst Grissemann, managing director for Bauer Nimr, a German construction firm, told OBG.

To create the draft legislation, PAM reviewed mining sector regulatory frameworks from around the world, reportedly focusing on provisions including local content, investment incentives, investor clarity, extending the duration of licences, penalties for lack of investment and benefits for local communities. Fixed royalties and tax rates are expected to be purposefully left out of the new law in favour of adjustable royalties that can incentivise investment by triggering lower rates during periods of very low commodity prices. Hilal bin Mohammed Al Busaidy, PAM’s CEO, has suggested that local content development will be a priority objective once the new law comes into force.

The new law is also intended to implement more regulations to protect the mining sector and prescribe heftier fines and jail terms for violations, a concern regularly raised by members of the Majlis Al Shura, the lower chamber of the Council of Oman.

“Oman’s mining law needs more teeth to combat evaders of royalty. The government is losing tens of millions of rials in revenue from this sector,” said Tawfeeq Al Lawati, a member of the Majlis Al Shura, speaking to local press in 2015. “Although the government has put in place a ban on exports of mining products in the form of raw materials, there are several companies and individuals that do the opposite,” he said. Al Lawati attributes a sharp rise in construction material prices on the local market to poor regulation, which enables exploitation by companies.

Sector Impact
Despite the anticipated positive effects of the new law on the sector, the immediate impact of PAM’s draft legislation has been to slow down the licensing process. Even well-capitalised companies report having difficulties obtaining licences for new projects, with the authority seemingly holding off on many applications until the new law is ratified.

However, the longer-term implications of the law are expected to be more positive. By rationalising the mining sector and streamlining unnecessarily bureaucratic licensing processes, PAM is providing real incentives for investors looking to enter the mining sector in Oman.

“What sector players want more than anything from the anticipated mining law is a clear and concise framework under which we can operate,” Dean Cunningham, CEO of Kunooz Oman Holding, told OBG. “This should be established based on international benchmarks and best practices in order to ensure the attractiveness of the sector to global capital,” Cunningham added.

Source:https://oxfordbusinessgroup.com/analysis/improved-regulation-sight-new-legislation-expected-address-stakeholder-demands

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Industry at the forefront of economy, say experts

sohar

Muscat: Experts discussed the importance of the industrial sector to the Sultanate’s future, ahead of Oman’s Day of Industry, tomorrow.

“The industrial sector is a pillar of the national economy and contributes to the creation of employment opportunities for Omani youth,” Managing Director of Sohar Steel Group Khalid Tawfiq Abdul Rasoul said.

The industrial sector has become the backbone of Oman’s drive to become a manufacturing-based economy because of the government’s prioritisation of localising industries and diversifying away from oil.

Numerous initiatives were launched to achieve this objective, including the establishment of a bus factory and other projects designed to build local capacities in multiple areas.
“Industry remains at the forefront of the world’s economic sectors and plays an important role in increasing the income levels of countries and establishing sustainable job opportunities for its youth,” Dr. Said Al Mahrami, a member of the State Council, said.

Economic and industrial experts stressed that Oman was steadily moving towards achieving sector-wide development, leading to the construction of specialised industrial zones, new roads, and ancillary services. “Industry has the benefit of three revenue streams, which are difficult to sustain in other sectors, due to its ability to add value to oil, mining, farm and other sectors.

“In addition to achieving financial returns through export or supplying the local market with commodities and keeping the largest amount of money inside the country, which in turn contributes to the expansion of the economic cycle and doubling of trading,” Al Mahrami added.

The use of technology in national industries has become necessary to reduce costs and compete globally. Oman’s successful push on both fronts drew praise for industrialists.

Industry Day

“Since the founding of Omani Industry Day, we have witnessed an increase in the number of factories, a growth in the finance of industrial projects, as well as funds for SMEs,” Kamla Al Awfi, CEO of World Natural Stones, said.

Sulaiman Al Rashedi, Chief Executive Officer of Raki, said: “The industrial sector has contributed to the progress of many countries, such as Singapore and Japan, which despite having few natural resources are among the strongest economies in the world, thanks to their industrial prowess.”

“We look forward to seeing large industrial cities in the time to come,” he added.

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Saudi Arabian economy ‘to return to growth’ in 2018

The kingdom’s real GDP growth dropped 1 percent in the first half of 2017

The Saudi Arabian economy will remain contracted in 2017 before returning to “modest” growth of 1.3 percent in 2018, a report has claimed.

Oil production cuts as part of the OPEC agreement will see oil sector growth remain in negative territory in the second half of this year, while the private non-oil sector continues to face headwinds, amid government spending cuts to a number of infrastructure projects, according to an analysis from BMI Research.

Real GDP growth in the kingdom stood at -1 percent year on year in the first half of 2017, after having alreadty contracted by 0.5 percent in the first quarter of the year.

This contraction was largely driven by the oil sector, which accounts for over 40 percent of GDP and contracted by 2 percent in the first six months of 2017, BMI said.

Meanwhile, the non-oil sector has also struggled to regain traction, expanding by a sluggish 0.6 percent year-on-year over the same period – up from 0.2 percent throughout 2016.

Based on conservative expectations for growth, BMI said it predicts the economy to recede by 0.5 percent in 2017 before picking up to 1.3 percent in 2018.

Source:http://www.arabianbusiness.com/politics-economics/380392-saudi-arabian-economy-to-return-to-growth-in-2018

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Turkey’s Industrial Production Growth Slows In October

Turkey’s industrial production grew at a slower pace in October, the Turkish Statistical Institute reported Friday.

Industrial production climbed 7.3 percent year-on-year in October, slower than September’s 10.4 percent increase. Nonetheless, the rate exceeded the expected increase of 5.3 percent.

Within total industry, mining and quarrying grew only 0.5 percent. At the same time, manufacturing advanced 7.7 percent and electricity and gas output gained 7.3 percent.

Energy output logged an annual growth of 6.1 percent in October.

On a monthly basis, industrial output growth held steady at 0.7 percent in October. Production had remained flat in August. Economists had forecast a 0.3 percent increase for October.

Source:http://markets.businessinsider.com/news/interestrates/Turkey-s-Industrial-Production-Growth-Slows-In-October-1010574845

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UAE, Saudi ‘Well Positioned for Industrial Revolution 4’

The UAE and Saudi Arabia are well positioned for the Fourth Industrial Revolution, according to American global management consulting firm A T Kearney.

The UAE has the opportunity to take advantage of emerging technologies and changes in production, as it ranks in the top quartile of countries performing well in the areas of technology and innovation, human capital and trade, said the report.

Saudi Arabia has also ranked highly and has huge opportunity along with the plans underway to meet Saudi Vision 2030, according to the new Readiness for the Future of Production Report produced by World Economic Forum, in collaboration with global management consultants, A T Kearney.

The report, which measures how well-positioned 100 countries and economies, across all geographies and stages of development, are to benefit from the changing nature of production. It reveals that only 25 countries are strongly positioned to benefit, as production systems stand on the brink of exponential change.

The UAE, which aims to increase its manufacturing share of gross domestic product (GDP) to 25 per cent by 2025, along with Saudi Arabia, are flagged as ‘high-potential’ countries and are positioned to leapfrog in the emerging production paradigm. These countries have a relatively small current production base, but have the resources and potentially the right combination of other capabilities to capitalise on opportunities.

Johan Aurik, managing partner and chairman of A T Kearney, said: “In a changing production landscape, each country will need to differentiate itself, capitalise on competitive advantages and make wise trade-offs in forming its own unique strategy for the future of production.”

“Given the speed and scale of changes occurring in the environment, the new diagnostic and benchmarking tool can help raise awareness and sharpen a country’s response,” he said.

As the Fourth Industrial Revolution gathers momentum, the report highlights how decision-makers from the public and private sectors are confronted with a new set of uncertainties regarding the future of production.

Rapidly emerging technologies—such as the Internet of Things (IoT), artificial intelligence, wearables, robotics and additive manufacturing—are spurring the development of new production techniques, business models, and value chains that will fundamentally transform global production.

Mauricio Zuazua, partner, A T Kearney, said: “This is just one aspect of a vastly shifting landscape. It is imperative that government and business leaders take a fresh look at how their countries and corporations will contribute to the world’s fast-changing value networks to capitalize on future production opportunities, mitigate risks and challenges, and be resilient and agile in responding to unknown future shocks.”

This report is a key contribution to the World Economic Forum’s initiative on Shaping the Future of Production. The initiative brings together global leaders and decision-makers in seeking to address how the transformation of production systems, from R&D to the consumer, can drive innovation, sustainability and employment, to benefit all people, it stated.

Source:http://www.manufacturingtrade.com/news-detail:9117ad87-516c-5b06-a8ff-5a6f219c0c9c.html

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More than 6 million foreign tourists visit Iran in 2017

iran tourism

Once off limits to many because of international sanctions, Iran is making a big comeback as a tourist destination.
More than 6 million people visited Iran in the year ending March 2017, up 50% on the previous year and three times the number in 2009, according to official data.

The surge in visitors follows the 2015 nuclear deal between Tehran and world powers that resulted in many sanctions being lifted early the following year.

European airlines such as British Airways and Lufthansa (DLAKY) resumed direct flights to the country, and Iranian authorities relaxed visa requirements. And as more people arrive, demand for accommodation is skyrocketing.

That’s creating opportunities for local entrepreneurs and foreign businesses.

Unlike some Western firms, who are reluctant to invest in Iran because they fear President Trump could yet torpedo the nuclear deal, international hotel chains are moving fast to meet the need for more rooms.

France’s Accor (ACCYY) was the first chain to open in Iran in 2015. It now operates two hotels there.

Spain’s Melia (SMIZF) will open its first hotel next year. Rotana of the United Arab Emirates also has one hotel in the pipeline for early next year and plans three more by 2020.

EasyHotel, a U.K.-based budget chain, is reported to have signed a deal in July to deliver 500 rooms. It did not respond to a request for comment.

And the market clearly has room for many more players. Iran wants to attract more than 20 million visitors by 2025, according to the state tourism agency.

Many of the new visitors are young backpackers from Europe and Asia, drawn by Iran’s history and culture. The most popular destinations include the ancient cities of Esfahan and Shiraz. It’s also home to Persepolis, a UNESCO World Heritage site.

Many of those travelers are looking for budget accommodation, said Jalal Rashedi, who runs five hostels across the country. He offers bed and breakfast for as little as $15 a night, including internet access.

Trump keeps scaring investors away from Iran

“During the past few years we have had a rise in the number of tourists who are young, and they’re individual travelers,” he told CNN. “They’re young, curious, adventurous people who want to discover the truth about Iran, and they mostly stay at hostels.”

A World Economic Forum report earlier this year named Iran as the world’s cheapest travel destination.

But travelers still face obstacles.

Americans, Brits and Canadians need to apply for a visa in advance, while citizens of many other Western countries can get one on arrival.

And because some sanctions remain in place, the country has few links to international banking networks and Western credit cards won’t work there.

That means it can be difficult to make payments in advance to secure reservations. To get around that, Rashedi launched a website to allow travelers to make reservations at his hostels, and those operated by others, without payments.

Source:http://money.cnn.com/2017/09/05/news/economy/iran-tourism-boom/index.html

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Iraq to offer 3 refineries for investment in Kuwait conference

Baghdad (IraqiNews.com) Iraq plans to offer three of its oil refineries to investors during an upcoming conference of Iraq donors, the government said Thursday.

Anadolu Agency quoted a statement from the state’s investment authority saying that the refineries include Faw, in the southern Basra province, with a production capacity of 300.000 barrels a day, besides another in Anbar (150.000 barrels per day) and Nasseriya, Dhi Qar province (150.000 barrels per day).

Iraq imports and estimated USD5 billion in petroleum products for local demand, most of which is used for electricity generation.

Iraq’s need for petroleum products intensified after Islamic State militants took over the Baiji refinery in Salahuddin province, which secured nearly a third of the country’s needs with a capacity of 170.000 barrels per day.

Kuwait will be hosting Iraq donors conference from 12th to 14th February. Nearly 70 participants are expected at the event which will hopefully collect USD100 billion dollars for the reconstruction of the country and repair of damage caused by the war against Islamic State militants.

The investment authority said last Tuesday that Iraq was planning to offer a total of 157 projects to investors during the conference.

Iraq’s crude oil exports for December stood at nearly 109.9 billion barrels, with revenues of nearly USD6.5 billion.

Source: https://www.iraqinews.com/business-iraqi-dinar/iraq-offer-3-refineries-investment-kuwait-conference/