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Saudi’s PIF eyes $5bn Oman investments

The Public Investment Fund (PIF) announced that it has signed a Memorandum of Understanding (MoU) with the Oman Investment Authority (OIA).

The MoU is intended to expand cooperation and investment between the two entities, enabling new and promising investments in Oman’s rapidly growing economy.

PIF to invest in Oman
The MoU provides benefits and incentives for PIF and its portfolio companies, which intend to unlock investment opportunities in Oman.

The MoU also represents a significant milestone in PIF’s and OIA’s strategic partnership as it aims to expand PIF’s portfolio in Oman, building on the recent establishment of the Saudi Omani Investment Company (SOIC), a PIF-wholly owned company, which intends to invest up to $5bn in promising sectors in Oman.

SOIC recently closed its first investment in Oman as a 20 per cent anchor investor in Abraj Energy Services’ IPO and continues to seek other investment opportunities with OIA and its companies.

Through this MoU, Public Investment Fund aims to streamline its investment activities in Oman across a wide range of asset classes and target industries.

The OIA is expected to explore attractive investment opportunities for cooperation and partnership with Public Investment Fund, in addition to providing all aspects of support required in the Omani market.

Deputy Governor and Head of MENA Investments at Public Investment Fund Yazeed A. Al-Humied said: “This MoU is an important step in further strengthening the relationship between PIF and OIA to expand investment and cooperation in the fast-growing Omani economy.

“PIF aims to create long-term strategic partnerships in the region that support the creation of sustainable returns, deliver value to local economies, maximize PIF’s assets, and diversify the Saudi Arabian economy in line with Vision 2030.”

Deputy President for Investment at OIA Mulhem Basheer Al Jarf said: “This MoU builds on our existing relationship with PIF and enables greater cooperation, driving economic diversification in Saudi Arabia and Oman.

“It aims to facilitate partnership opportunities for the private sector in both countries, in alignment with OIA’s efforts to attract FDI to the Sultanate of Oman through Oman’s 2040 vision.”

As a key government entity responsible for strategic investments, OIA plays a leading role in Oman’s efforts to diversify the economy, foster sustainable development, and create a prosperous future for its people.

By attracting capital, championing innovation, and implementing strategic initiatives, OIA plays an instrumental role in advancing Oman’s economic growth, elevating its global competitiveness, and driving the nation toward a prosperous and resilient future.

Source:https://www.arabianbusiness.com/money/sovereign-wealth/saudis-pif-eyes-5bn-oman-investments

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Oman’s annual inflation rate reaches 0.69%

The annual inflation rate in the Sultanate of Oman reached 0.69 percent at the end of June 2023, according to the monthly consumer price survey data issued by the National Centre for Statistics and Information (NCSI).

The inflation rate was driven by the increase in most of the main groups that make up the consumer price index. The prices of the food and non-alcoholic beverages group rose by 2.18 percent, due to the increase in the prices of most of the group’s components, led by milk, cheese and eggs by 9.78 percent, fish and seafood by 5.19 percent, oils and fats by 4. 81 percent, fruits by 4.3 percent, other foodstuffs by 3.91 percent, bread and cereals by 2.34 percent, and non-alcoholic beverages by 0.67 percent. Meat prices decreased by 0.12 percent and vegetables by 5.65 percent.

The prices of restaurants and hotels groups increased by 3.68 percent, furniture, fixtures and household equipment, and routine home maintenance work by 2.93 percent, miscellaneous goods and services by 2.33 percent, tobacco by 2.11 percent, culture and entertainment by 1.73 percent, health by 1.28 percent, and clothes and shoes by 0. 56 percent, and education by 0.05 percent, and the housing, water, electricity, gas, and other types of fuel group, which rose by 0.02 percent. The prices of the transportation group decreased by 1.74 percent, and communications by 0.22 percent.

The inflation rate increased by 0.23 percent compared to the previous month as a result of the increase in food and non-alcoholic beverages groups by 0.97 percent, led by tobacco by 0.35 percent, culture and entertainment by 0.28 percent, miscellaneous goods and services by 0.23 percent, and furniture, household equipment and household maintenance by 0.03. percent, compared to a decrease in the prices of transport groups by 0.1 percent, communications by 0.05 percent, restaurants and hotels by 0.04 percent, and the stability of prices for housing, water, electricity, gas, and other types of fuel, clothing, shoes, health, and education.

Al Buraimi Governorate recorded the highest inflation rate among the governorates at 1.3 percent, compared to the lowest inflation rate in the North Al Sharqiyah and South Al Sharqiyah Governorates at 0.2 percent. Muscat Governorate recorded an increase in inflation by 1 percent, while Al Dakhiliyah Governorate recorded 0.7 percent, Dhofar Governorate 0.7 percent, Al Dhahirah Governorate 0.6 percent, and North Governorate. Al Batinah 0.4 percent.

Source:https://timesofoman.com/article/134420-omans-annual-inflation-rate-reaches-069

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Oman’s natural gas production rises 2.3%

The total domestic production of natural gas amounted to 26.19 billion cubic metres until the end of June 2023, an increase of 2.3 percent compared to the same period in 2022, when the total amounted to 25.60 billion cubic metres.

Statistics issued by the National Centre for Statistics and Information (NCSI) showed that industrial projects accounted for 58.7 percent of the natural gas uses in the Sultanate of Oman at 15.39 billion cubic metres until the end of June 2023.
The total use of natural gas for oil fields amounted to 6.76 billion cubic meters, power plants at 3.89 billion cubic metres and industrial areas at 131.50 million cubic metres.

It is noteworthy that the non-associated production of natural gas, including imports, amounted to 20.89 billion cubic metres, while the associated production of natural gas amounted to 5.30 billion cubic metres.

Source:https://timesofoman.com/article/134421-omans-natural-gas-production-rises-23

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MSX index rises marginally in weekly trading

The industrial sector recorded the best performance among the indices of the Muscat Stock Exchange in last week’s trading.

The industrial sector index rose during the week’s trading to the level of 6,170 points, recording its best level in 3 weeks, but it was unable to maintain these gains and ended the trading at 6,150 points, recording a weekly increase of 58 points.

This rise came in conjunction with the Sultanate of Oman’s ranking 56th in the world and fifth in the Arab world in the Competitive Industrial Performance Report for the year 2023 issued by the United Nations Industrial Development Organisation (UNIDO), which indicated that the Sultanate of Oman had achieved an improvement in diversifying industrial activities from the added value of the industrial sector. Increasing the volume of industrial exports from the volume of global industrial exports.

The past week also witnessed a good performance for the financial sector index, which rose by 48 points and closed at 7,867 points.

The benchmark main index rose by three points and closed at 4,783 points, while the services sector index declined by 6 points, and the Sharia index recorded a decline of two points.

Last week witnessed an increase in the shares of Voltamp Energy and National Gas, Oman Cables Industry, Al-Saffa Foods, Raysut Cement, Building Materials Industry, Oman Mills and Oman Cement. These increases stimulated investors to buy shares of industrial companies.

Trading value increased last week by 61 percent, exceeding OMR15.1 million, compared to transactions amounting to OMR9.3 million in the previous week. However, the number of deals executed declined by 6.6 percent from 2,015 deals to 1,881 deals.

Last week, the Muscat Stock Exchange recorded gains in its market value by OMR36.70 million to rise at the end of Thursday’s trading to OMR23.91 billion.

Source:https://timesofoman.com/article/134419-msx-index-rises-marginally-in-weekly-trading

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Oman plans new global vaccine, drug development factory

scion industrial engineering pvt. ltd.

Opal Bio Pharma (OBP), a pharmaceutical company in Oman, has begun the construction of the country’s first factory dedicated to manufacturing essential medicines and vaccines.

The foundation stone for this groundbreaking facility was laid at Khazaen Economic City, with an estimated cost of OMR60 million ($156 million), according to a report by Times of Oman.

Spanning an area of 37,000 square meters, the factory’s construction will occur in two phases, with the second phase costing approximately OMR60 million.

The implementation of the project is expected to be completed within two years. The facility is projected to commence production in the final quarter of next year, marking a major milestone for the country’s healthcare industry.

Oman’s emergence in the pharmaceutical industry
The primary objective of this project is to establish local production capabilities for vaccines and medicines, aiming to reduce dependence on imports, particularly during times of crises and pandemics.

By boosting domestic production, Oman aspires to achieve drug security and strengthen its healthcare infrastructure.

The Chairman of the Board of Directors of Opal Bio Pharma said that the factory, the first of its kind in the Sultanate and the Middle East region, will not only cater to the local market but also export vaccines and vital medicines worldwide.

This landmark achievement positions Oman as a significant player in the global pharmaceutical industry.

Souce:https://www.arabianbusiness.com/industries/healthcare/oman-plans-new-global-vaccine-drug-development-factory-report

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Saudi Arabia announces travel ban to Lebanon

Scion Industrial Engineering pvt. ltd.

Saudi Arabia‘s Embassy in Lebanon has urgently advised its citizens to evacuate Lebanese territory as tensions rise in the region.

The escalation follows violent clashes near the Ein Al Hilweh Palestinian refugee camp earlier this month.

In an official statement, the Saudi embassy urged citizens to steer clear of conflict areas.

Although the statement didn’t specify the exact areas to avoid, it is implied that particular caution should be exercised around southern Lebanon and the vicinity of the Ein Al Hilweh Palestinian refugee camp.

Saudi Arabia urges citizens to leave Lebanon “immediately”

The embassy underscored the necessity for swift departure, emphasising that Saudi citizens should leave Lebanon “immediately.”

The statement also reiterated the existing ban on travel to Lebanon for Saudis.

In early August, the kingdom updated its travel advisory for Lebanon, strongly discouraging all non-essential trips, particularly to the aforementioned regions in southern Lebanon.

Violent confrontations between the Fatah movement and radical Islamists near the Ein Al Hilweh camp have resulted in 13 confirmed deaths, with a primary majority among militants, according to sources within the camp.

The clashes erupted on July 29, signaling a significant escalation in hostilities.

The United Nations Relief and Works Agency for Palestine Refugees in the Near East (UNRWA) has stated that Ein Al Hilweh is the largest of Lebanon’s 12 Palestinian refugee camps.

The camp provides shelter to an estimated 80,000 of the 250,000 Palestinian refugees dispersed across the country.

Source:https://www.arabianbusiness.com/industries/travel-hospitality/saudi-arabia-announces-travel-ban-to-lebanon

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Oman announces new law change for employees

Scion Industrial Engineering

The new Oman Labour Law terminates the need for employers to withhold employee passports

Sultan Haitham bin Tarik of Oman recently issued a new labour law aimed at ensuring a fair and balanced relationship between employers and employees while promoting transparency in labour practices.

The Labour Law 53/2023, this legislation, issued via Royal Decree, features various provisions to protect workers’ rights and outline the circumstances under which an employer can terminate an employee’s service.

Article 43 of the law specifically focuses on the conditions of employee termination, providing clarity on the matter.

The law allows termination if an employee fails to meet required performance standards. However, employees are granted a six-month grace period to improve their performance, and if the level remains unsatisfactory, termination may occur.

For Omani employees, the company must replace them with another Omani national in such cases.

The law also allows for termination in situations like a business shutdown, bankruptcy declaration, a reduction in the scope of business activities, or implementation of an alternative production system affecting staffing needs.

Moreover, economic factors may necessitate employee termination, but this requires the employer to submit an application to a committee within the Ministry of Labour for approval.

New Oman labour law changes protect expat workers
Expat workers are also protected under this law. Employers are prohibited from holding their passports or private documents without written consent.

If an expat worker is dismissed, they have the right to file a complaint within 30 days of notification.

The new labour law ensures employee leave entitlements, including a minimum of thirty days of annual leave after six months of employment and the ability to combine leaves based on mutual agreement.

Non-Omani workers are entitled to a return air ticket to their home country, and they receive their full wage during official holidays.

The law also permits employers to grant unpaid special leave based on the worker’s request and subject to conditions.

Additionally, the law mandates a six-month grace period for performance improvement before termination and emphasises the need for employers to maintain an attractive work environment.

Provisions for the transfer of workers to different projects and the requirement to hire Omanis for old projects with equal wages and benefits further enhance the law’s equitable approach.

Other aspects of the law address temporary job assignments, shifts changes based on ability, an hour of childcare for women after childbirth, and the necessity for sick leave applications to be approved by the Ministry of Health from private hospitals.

Source:https://www.arabianbusiness.com/jobs/oman-announces-new-law-change-for-employees