the majestic 2013

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In the name of God, the compassionate and the merciful

Oman is making major strides under the able leadership of His Majesty Sultan Qaboos bin Said. In its Eighth Plan, the government has allocated RO1.6bn on initiatives focused on infrastructure and social programmes. These provisions include expansion of ports, highways and airports, aimed at the progress of the country. While oil and gas sector is doing well, leisure and business tourism is being developed as a successful alternate economy. All these endeavours will create job opportunities for Omani nationals. The Government targets between 200,000 and 275,000 placements by 2015. Higher education is becoming imperative for developing human capital in today’s knowledge economy. For promoting higher education in the sultanate, Royal Directives have been announced for scholarships.

While Duqm has started delivering, government is making new plans for development of Musandam governorate. Prospects of tourism and trade activities in this region are significantly good. Pilot studies are now being executed that are taking environmental, demographic and social factors of the governorate into consideration to prioritise the development process. This year The Majestic puts Oman’s achievements in perspective. As Oman basks in its rich heritage, the nation makes progress in a modern environment. Old yet new, that lends Oman a unique flavour, which we bring out in this book.

Significant progress

Foreword

Printed at Ruwi Modern Printers

AcknowledgementsHM’s Photograph by Mohammed Mustafa

© 2013 All rights reserved. This publication may not be reproduced or transmitted in any form in whole or in part without the written permission of the publishers. While every care has been taken in the preparation of this book, the publishers cannot be held responsible for the accuracy of the information herein, or any consequences arising from it.

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Renaissance Man

A challenging task

Holistic approach

Sustainable alternative

Called by many as ‘Oman’s Renaissance Man’, His Majesty Sultan Qaboos bin Said is known for his good governance and able leadership and the political, economic, and cultural rebirth of the country in the late twentieth century after a long spell of downslide. The way he reversed the trend and turned Oman into a modern state, yet retaining its traditional flavour makes an inspiring story

A sound government policy has helped Oman’s natural resources like oil and gas to develop successfully against complex geological structures of the sultanate

In Oman’s drive for diversification, substantial investment is highlighted for infrastructure development which will accelerate Oman’s growth

A lot is going on in Oman’s industrial sector to diversify successfully from oil and gas economy

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CONTENTS



43rd National Day

AL NASR Group of companies

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Power of beauty

Festival of traditions

The gift of education

Broadening opportunities

Big strides

The Ministry of Tourism is geared to bring sustainable growth to the tourism industry, at the same time generating employment for Omanis

Under the wise leadership of His Majesty Sultan Qaboos bin Said, the Muscat Municipality is now looking forward to receiving the continued support of the private sector for this spectacular festival

Royal Directives have announced scholar-ships for promoting higher education in the sultanate

With the arrival of Islamic banking services in Oman, the banking sector has undergone changes significantly and generated interest among people

Oman is one of the leading Gulf countries when it comes to gender equality and continues to make positive headway

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Exploring the pastAbdul Latif Al Balushi’s private collection is well worth a visit. As an ace chronicler, he tells enchanting stories about Oman from the past

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Oman’s treasure trove

Lifeline of Oman

Active participationHeritage, culture and arts are integral parts of nation’s identity which need to be preserved. Both government and private sectors are developing Oman’s museum segment to this end

The government has taken steps to encourage private sector participation in the healthcare sector with incentives like granting of free land, technical support and soft loans

His Majesty’s concern for Omani youths has enhanced the sports infrastructure of the country, which has emerged as a global destination for sporting events

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Spotlight MusandamThe Royal initiative visible in the major development projects that are about to start in the Musandam Governorate has a holistic approach and will augur well for the country as a whole

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CONTENTS

Congratulations to His Majesty

Sultan Qaboos Bin Saidand the people of Omanon the occasion of the

43rd National DayP.O. Box 1040, Postal Code 112Sultanate of Oman, Tel: 24526001, Fax: 24526051Cable: TOWELL MUSCATE-mail: [email protected]: http//www.wjtowell.com

ص.ب : ١٠٤٠ ـ روي ـ الرمز البريدي : ١١٢ ـ سلطنة عمـــانهاتف : ٢٤٥٢٦٠٠١ ـ فاكس : ٢٤٥٢٦٠٥١

برقيا : تاول مسقط

Steps forward

Air of confidence

New horizonTo develop a grand project and create an alternate economy was the grand vision of His Majesty Sultan Qaboos bin Said. As Duqm delivers, the nation hopes to achieve his expectations for the country

Public Authority for Civil Aviation (PACA) has been set up to upgrade the civil aviation sector, which will contribute significantly to the growth in different economic spheres

A new league of institutions have been set up with a broad perspective of achieving sustainable development

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Congratulations to His Majesty

Sultan Qaboos Bin Saidand the people of Omanon the occasion of the

43rd National DayP.O. Box 1040, Postal Code 112Sultanate of Oman, Tel: 24526001, Fax: 24526051Cable: TOWELL MUSCATE-mail: [email protected]: http//www.wjtowell.com

ص.ب : ١٠٤٠ ـ روي ـ الرمز البريدي : ١١٢ ـ سلطنة عمـــانهاتف : ٢٤٥٢٦٠٠١ ـ فاكس : ٢٤٥٢٦٠٥١

برقيا : تاول مسقط

leading light of oman24

Leading light of

Oman

THE MAJESTIC | 2013 25

His Majesty Sultan Qaboos bin Said is known for his wise governance and able leadership and was called by many as ‘The Renaissance Man’. In the late twentieth century Oman witnessed the political, economic and cultural rebirth of the country. Retaining its traditional flavour, he turned Oman into a modern state in tune with global environment, which has become an inspiring story for all of us.

Renaissance Man

26

The very thought of Oman conjures up in mind a land of pristine beauty, date palm trees and rugged mountains. In this land of exotic beauty, on November 18, 1940, Sultan Qaboos bin Said was born in Salalah, the lush green city of Dhofar governorate, south of Oman. He was the only son of the late Sultan Said bin Taimur, the eighth direct descendant of the royal Al Busaidi line founded in 1744 by Imam Ahmad bin Said. His mother, Miyzun bint Ahmed Alma’ashani, was daughter of sheikh of the Bayt Mu’ashani clan of Dhofar’s dominant Qara tribe. The newborn was named Qaboos after the brave warrior prince of the legendary Lakhmids, a name he validated throughout his lifetime. Birth is a significant event for any family and for a nation it can be equally significant as Sultan Qaboos’ contribu-tion has shaped the course of Oman and has a significant bearing on its history.

Early years: Values instilledHis Majesty Sultan Qaboos’ early life was spent in the royal premises in Salalah, where he received private tutoring from local teachers from the Madrasa a’ Sayyidia School, Salalah’s only educational establishment. Inquisitive since his childhood, Qaboos loved exploring his surround-ings. Chests, books, rugs - all that were there in the palace room intrigued him and hence he

found them worth exploring. The early years in the palace was the most carefree for the young Sultan. But this eagerness to learn lingered on throughout his adulthood. One of his favourite leisure activities as a child was to study books and maps of Oman and travel in his imagination from one country to another. A British staging post was established not far from Salalah, when

The young Sayyid Qaboos bin Said

A star is born


the young prince was three years old. This became one of the strategic points along the air routes from Europe to the Middle East and India. Heavy American aircraft transporting ammu-nition through Iran to the Far East and Russia started to land regularly in Salalah. The young Qaboos enjoyed watching from his window the dark grey freighters and the fighter planes, swift and accurate as falcons, landing and taking off with surprising precision.

Young Qaboos was drawn to common people and learn from life. He enjoyed encounters with desert dwellers, fisherman and merchants as he realised that these were his best teachers. His peers often commented on the close attention

the young Qaboos paid even at chance meet-ings with countrymen during his all too infre-quent trips outside the Al Husn Palace.

When he was 16, Qaboos was sent by his father Sultan Said bin Taimur to a private school in England in 1958. He spent two years in Suffolk doing groundwork for admission in The Royal Military Academy Sandhurst of Britain, from where he graduated in 1962 as an officer cadet.

He then spent a year with a British infantry battalion on duty in Germany and then held a staff appointment with the British army. Sultan Qaboos said about his realisations after he received the military training. “The values that I absorbed have remained with me forever afterwards. I learned that discipline is not just something one imposes on others; it is something that one has, above all, to apply to oneself, if one is to be a worthy leader of men. I also learned the true meaning of service: that is, to give, and not to expect to receive, and that it is the team, and not oneself, that matters. I learned that with responsibility comes obligation.”

Having completed his military service, His Majesty studied local government in England and then set on a tour around the globe. On his return to Oman, he studied Islam and Omani history for six years in Salalah. But his aspira-tions went beyond that. Qaboos wanted to bring change to the prevailing socio-economic milieu of the country.

His Majesty (top row, left) at his graduation ceremony, Sandhurst Military Academy, UK


Slice of history Until the mid-19th century Oman was a leading maritime state in the Indian Ocean and Arabian Gulf region. But by the early 20th century Oman’s rulers became dependent on British support. The country faced slow growth and its society disintegrated when many Omanis moved out to more wealthy lands. This down-turn was stemmed by Sultan Qaboos’ father when he became Oman’s ruler in 1932. By 1960, Sultan Said retrieved his dynasty’s glory and consolidated his sovereignty all over Oman. But when oil was discovered in Oman’s interior in 1964, it was then when Said decided to restrict the petroleum-driven modernisation that was changing the face of the rest of eastern Arabia. His conservative stance triggered opposition

from all corners. On July 23, 1970, through a bloodless coup, the 29-year-old Qaboos bin Said ascended Oman’s throne.

Ascension to the throne Very similar to his famous ancestor Imam Ahmad, the founder of the Al Busaidi dynasty, Sultan Qaboos inherited a stagnant, conflict-ridden country. But like him, Qaboos had been able to bring peace and stability to Oman within a short span of time. In between, he had to quell insurgency in the south and political dissatis-


faction in the north. Alongside, he had to build infrastructure, too as he had inherited only the basic rudiments of a modern state in July 1970. In his first address to the nation, he declared that the country would be unified as the Sultanate of Oman, with a new flag, and that he would bring an end to restrictions on freedom of move-ment. He urged Omanis who had left home to come back to contribute to the development of the country and to harness their talents and expertise to set up a modern government. He pledged, “I promise you to proceed forthwith in the process of creating a modern government. My first act will be the immediate abolition of all the unnecessary restrictions on your lives and activities. I will proceed as quickly as possible to transform your life into a prosperous one with a bright future.”

During the first decade of Qaboos’ reign, he exerted his sovereignty over Oman’s political system, and quelled internal conflicts. British, Jordanian, and Iranian troops rallied round the new Sultan, who channelised most of his oil revenues to military reinforcement. At the same time, Qaboos began to lay the institutional foun-dation for his country by implementing facilities for a modern port, airport, road system, education and healthcare, housing and a communication network. At the beginning, Oman’s development focused on facilitating petroleum production and basic infrastructural requirements such as ports, roads, hospitals and schools. Economic diversi-fication emphasising private enterprise involve-ment came much later.

Though he consolidated his power within a short span of time and transformed his country from an unstable and regressive state to socio-economic modernised entity, the military expansion remained a high priority for the country. In 1980, an Omani-American defense relationship was initiated, which was followed by the financing of the process of modernisation of Omani military bases by the United States of America. By 1985,


Oman’s military mustered well equipped troops, including air and naval units, plus police and internal security units.

Once internal bickerings and instability were quelled within his country, the Sultan sought to strengthen Omani relations abroad, not only with Gulf States but nations across the globe. Pursuing a pro-West foreign policy, not aban-doning Oman’s independence, he garnered support from neighbouring countries and the West. Qaboos, who is globally reputed as a moderate Arab and Islamic leader, adopted an independent foreign policy based primarily on Omani political and economic interests, rather than on any ideology.

In a quest for improving long term peace and stability in the Middle East, his role was often progressive than traditional which at times had drawn flak from conservative Arab leaders. In 1981, he was actively involved in forming the Gulf Cooperation Council (GCC), an alliance among conservative Gulf countries to create a joint security front in the region. Later, he called for dialogues between Israel and Palestine to settle the Arab-Israeli conflict. In 1993, in the aftermath of the Gulf War, Qaboos signed the last of the border treaties with Oman’s neigh-bours, including Iran, emphasizing the shared responsibility of Iran and Oman for the Straits of Hormuz. Quite evidently, Sultan Qaboos has adopted a policy of peace all throughout. The aim was to enhance and retain Oman’s prosper-ity in a protected Gulf region. Oman has also


spearheaded the founding of the Indian Ocean Rim Association for Regional Cooperation.

Larger issuesOn his way to consolidation, Qaboos started devoting more attention to larger political and

development issues at home. Qaboos’ policies and way of functioning are influenced by four factors: his military background; his apprecia-tion of Omani history and culture and the will to Omanise the Sultanate; his desire to balance the tradition of royal sovereignty with the demands of popular participation in government; and his love for the environment.


In 1974, Qaboos introduced major changes to the cabinet when members of the Omani commercial establishment, mostly hailing from Al Bu Sa’id regime, were brought into the government. Their support helped to maintain centralised authority under the Sultan. By 1976, in the wake of a financial crisis and a World Bank study of the Omani economy, Qaboos contem-plated on structuring economic development

and make it more organised by approving the first comprehensive five-year plan. He felt the need for building Oman from the ground up.

The country had no tradition of the majlis (a gathering for discussion) that is otherwise a part of traditional leadership in the Arabian Peninsula. In 1975, His Majesty Sultan Qaboos launched “Meet the People” tours in which he and his


ministers and other government officials took up residence in some part of the country to hear and deal with local complaints. The intention was to develop grass root connection.

Sultan’s absolute monarchy was balanced by the opinions of a circle of advisers selected from the ruling family, Omani entrepreneurs, and influential British, American, and Arab experts. This possible step towards democra-tisation was institutionalised in October 1981 in the appointment of a State Consultative Council (Majlis al Dawla) which is the Sultan-ate’s first representative consultative body. It comprised government officials, business community, and popular representation, all appointed by the Sultan, to discuss social and economic matters.

A decade later, this body evolved further when Qaboos replaced it by the Majlis al Shura. Qaboos had always remained aware of the political tradition of shura, or consultation, a central tenet of Oman’s Ibadi school of Islam. A significant change with the new body was that the representation came exclusively from the common people. The selection process at first involved local nominations and royal appoint-ment but ultimately evolved into direct election by universal adult suffrage. Although confined to social and economic issues, the Majlis reviews all proposed legislation and can propose laws.

Referring to the expanded regulatory and legisla-tive powers granted to the Council of Oman with

its two component bodies of the State Council and the Consultation Council, His Majesty had expressed his hope to see the Council take a decisive step forward.

In November 1996 Qaboos made announce-ment for Basic Statute of the State, Oman’s first constitution-like document. While the docu-ment upholds the sovereignty of the Sultan, the document ensures personal rights and freedoms, tempered with duties. Many of the general provisions of the Basic Statute have been implemented, most notably the judi-cial reform, which established a much more independent judiciary, and legislation expand-ing personal freedoms, such as the legalisation of labor unions in 2006. An important matter addressed by the Basic Statute was the question of succession.

The concept of collective decision-making by the people and the government has been evident in His Majesty’s political thinking. From this understanding, Oman’s population, both men and women, have been provided with full access to education and economic, social and cultural developments, with the Basic Law of the State ensuring the freedom and rights of all citizens. Open meetings at the state level ensures that popular participation is encouraged. In November 2002 the right to vote was granted to every Omani citizen, both men and women, above twenty-one years. In another develop-ment, the Supreme Court was created in the following year.


Meanwhile, in 2000, the Sultan marked his 30th anniversary, celebrating the creation of a thriving and stable modern state that was ready to keep pace with the new trends of a new millennium. Having been transformed into a modern state in just 30 years, Oman’s challenge was to embrace an expanding private sector along with the robust public sector to enhance Oman’s progress and prosperity.

On October 31, 2011, addressing central issues of public concern in his speech at the opening of the Council of Oman (Majlis Oman) fifth term in the wilayat of Manah in Dakhiliyah Governorate, Sultan Qaboos expressed his confidence in his people and urged them to work diligently and be aware of their responsibilities and duties.

Sultan Qaboos’ speech also touched on the consultation process in Oman. He explained that it was established on firm principles which would ensure it evolved naturally, in a number of stages, in direct response to the demands of each successive stage of national development. It was, he noted, designed to meet the needs of the Omani community and, as part of a clear-sighted vision of the future and of the steps needed for its Implementation, which will keep pace with Omani society’s aspirations towards greater participation in shaping national decision making.

The need for freedom of expression which is one of the crucial elements of Omani society. His Majesty emphasised on balance and modera-tion and expressed that intolerance for different

views are unacceptable as they carry with them the seeds of their own destruction. “The State’s laws and regulations guarantee every Omani the right to express his opinion and to contrib-ute constructive ideas to enhance the march of progress in the country,” he said.

“We have always believed it is important there should be a wide range of different ideas and opinions, and that people should not be prohib-ited from thinking freely, because this is the evidence of a community’s strength and its ability to benefit from these opinions and ideas to serve its aspirations for a better future and a finer, happier life. However, freedom of expres-sion does not mean that any one party has the right to force its opinions on others or suppress the rights of others to express their ideas freely, since this has nothing to do with democracy or law; and keeping up with the times does not mean imposing ideas on other people,” Sultan Qaboos added.

Retaining Omani flavourFrom a broader national perspective, Qaboos never wanted to sacrifice Omani traditions and identity at the altar of socio-economic change. His value system is reflected in many aspects of life. In all spheres of Oman’s long-term devel-opment strategy, the Omani citizen is the top priority. For a sustainable development of Oman, they are the nation’s most precious resource and developing this human resource is one of


the important features of Qaboos’ leadership. Sultan Qaboos stressed on the fact that people are the cornerstone of any development process designed to promote human happiness, decent living standards and guaranteed security.

Oman has a free market or laissez faire model of economic development. In a bid to develop an alternative source of economy, there was a

rapid expansion of all economic sectors which resulted in an influx of expatriate labour from workers to managerial level, required for their knowledge and expertise. Sultan Qaboos has encouraged the adoption of Omanisation programmes that emphasise the creation of a highly skilled Omani workforce developed through education and training programmes that would eventually create a strong Omani


workforce and replace expatriate labour. It should be mentioned here that in most of the industrial sectors Omani workers are now visible and Omani women are increasingly being appointed to government positions.

Sultan Qaboos said, “The forthcoming stage will witness, with God’s permission, even greater focus on providing more opportunities for youth

to enable them to expand their knowledge,” His Majesty said. “Education is the cornerstone of progress and development, and in order to produce a responsible, aware generation endowed with expertise, skills and aspirations towards a higher level of knowledge, a compre-hensive assessment of the country’s educational progress needs to be carried out in order to ensure that those aspirations become realities and enable people to benefit from the available job opportunities in the public and private sectors.”

Sultan Qaboos also encouraged the development of myriad cultural and religious institutions. One of them was the Ministry of National Heritage, entrusted with developing a national cultural museum and archive, publishing historical and religious texts, preserving historic buildings, and promoting national handicrafts. Qaboos also began funding the construction of mosques and various religious institutes throughout the coun-try. The Sultan Qaboos Grand Mosque in the capi-tal area is one of the largest in the world. Qaboos, all along had maintained the traditional character of his country, preserving low-rise heritage and historical buildings.

Man of varied interests With cautious steps in the beginning, Sultan Qaboos transcended to a different level in course of time. With assurance, forceful speeches, calm demeanour and well groomed appearance, he has presided over an era of unprecedented


change, continuing with the transformation of Oman and fostering stability in the region.

Dignified, soldierly, and somewhat withdrawn, Sultan Qaboos has an appreciation for music and reading and a love of fast cars, horses, and well-appointed palaces. His Majesty is a man of diverse interests. An enthusiastic horseman since childhood, he enjoys playing tennis. He has keen

interest in weapons and military equipment and he is an adept marksman. A voracious reader, he has studied a variety of subjects ranging from religion to astronomy and the environ-ment, languages, literature and history. The Royal Oman Symphony Orchestra, established in 1985, reveals his passion for music. His Majesty also attaches great importance to culture and science in Oman itself. The magnificent Royal Opera House Muscat was inaugurated in Muscat in October 2011. His Majesty opened the Sultan Qaboos University Cultural Centre as part of the Sultanate’s 40th National Day celebrations and the foundation stone was laid for the Sultan Qaboos Cultural Centre in Salalah.

Recognition abroadIt is true that being a head of the state, military affairs and political matters have taken away much of Qaboos’ attention, but his interest in the natural environment has resulted in Oman being recognised as one of the few developing coun-tries in which conservation and anti-pollution policies have been initiated during development period. As early as 1974, when Qaboos was grap-pling with political issues, he promulgated Oman’s first environmental law and created an office for conservation of the environment. The flora and fauna surveys were commissioned by the government, and the first nature reserves in Jabal al-Akhdar and the coastal wetlands at Qurum were established in 1979. The major conserva-tion effort by Oman was the reintroduction of the Arabian oryx. The oryx was hunted to extinction


in its natural habitat in 1972. The Omani govern-ment, in partnership with the World Wildlife Fund, the International Union for the Conservation of Nature (IUCN), and American zoos, reintroduced a herd of oryx to the Jiddat al-Harasis region of central Oman. Apart from the oryx project, Qaboos has taken up the cause for conserving marine environment. Governmental programmes have focused on sea turtles in the Ras al-Hadd nesting area and coral reef preservation. All these efforts have catapulted Oman to international limelight. Sultan Qaboos received the United

Nations Educational, Scientific, and Cultural Organization (UNESCO) award for conservation in 1989, and was invited to deliver the keynote address at the 1992 Earth Summit.

Two years later, the oryx reclamation project received United Nations World Heritage Site status. In the same year, Oman was elected to the IUCN governing council and in 1996, Qaboos was awarded its Philips Memorial Medal in recognition of his environmental activism in 1996 by the IUCN council.


Every two years since 1991, UNESCO awards a new winner the Sultan Qaboos Prize for Environ-mental Preservation in recognition of Qaboos’ personal commitment to environmental issues.

To promote cultural harmony, a number of academic chairs have been established in the name of Sultan Qaboos for the study of Arab and Islamic civilisation. There are chairs at 16 of the world’s leading universities, including – among others - Harvard and Georgetown in the United States, Cambridge in the United Kingdom, Melbourne in Australia, Utrecht in the Neth-erlands, Beijing in China, Tokyo in Japan and Lahore in Pakistan, as well as several universities in Gulf, Arab and Islamic countries.

In the field of education, an agreement signed in March 2003 with Melbourne University for the creation of this Chair is one example in a series of endowments to prestigious universi-ties throughout the world. In December 14 2005, a chair was created for Water Management and Economic Diversification at the Roosevelt Academy affiliated to Utrecht University in the Netherlands.

The Dutch government launched HM Chair in recognition of His Majesty’s contributions and efforts in the field of international peace and cooperation, and development of the Sultanate as a modern state under his leadership.

In the home front, Royal Decree No. 18/2011, issued on 27th February 2011, instituted the

Sultan Qaboos Award for Culture, Arts and Literature and provided for the formation of its board of trustees. There are two versions of the Sultan Qaboos Award; the first of which is awarded by His Majesty for culture, arts and literature in the Sultanate and the Arab region, while the second is specific to Oman. One winner is chosen for each of the three catego-ries, which means there are three winners annually – one cultural, one artistic and one literary. The Sultan Qaboos Award for Voluntary Work was launched to encourage and highlight the role of the voluntary sector in serving the community. The non-government voluntary organisations are vehicles of the Sultanate’s sustainable social development. The Award is also designed to promote co-operation and a sense of social responsibility.

Summing upInitially, Oman’s physical or administrative infrastructure was at a bare minimum, and Sultan Qaboos, with his vision, did the admi-rable task of turning an undeveloped country into a formidable modern state. It is true that Oman had begun to exploit its oil reserves in the late 1960s, but its health services, educa-tion, housing and communications were rudi-mentary. Today the scenario is very different with marked improvements visible in every sphere of life. There is no denying that Oman has undergone a political and economic trans-formation under Sultan Qaboos’ rule, thanks to his modernisation drive.


It has been 43 years since Sultan Qaboos came to power and will always be remembered as the founder of modern Oman. The uniqueness of Oman’s socio-economic fabric under His Majesty Sultan Qaboos bin Said lies in its pres-ervation of traditional values, rooted in its Ibadi

version of Islam and at the same time adapting to a contemporary lifestyle. The Sultan’s vision-ary and strong-willed leadership, together with the human resources represented by the people of Oman, has resulted in the country’s unprec-edented growth.


On the path of

Growth

man’s oil and gas sector is challeng-ing yet dynamic. The government made a smart move by revers-ing a trend of declining

oil production. The Ministry of Oil & Gas (MOG) executes its policy through Petroleum Development Oman (PDO), in which the government retains 60 per cent of stake. Today PDO is the largest operator in the sector, with control over 90 per cent of crude oil reserves and account for about 75 per cent of total oil production. Over the next decade, the company will invest USD26bn in the oil and gas sector, as part of its long-term plan. PDO makes up most of the sultanate’s natural gas supplies, though private investment is alter-ing the public-private sector balance. The nation’s energy needs, whether industrial or domestic, are fulfilled by an increased production level of natu-ral gas, which can be called a money-spinner as an export commodity.

While upstream activity remains PDO’s forte, the government of Oman controls a big part of the industry through the state owned Oman Oil Company (OOC). It is true that Oman has a modest size of oil reserves as compared to its GCC counterparts. But nevertheless, for international oil compa-nies, it remains an attractive proposition. Shell’s 34 per cent stake in PDO, an interest in Oman LNG, as well as a share in the Mukhaizna concession makes it the most significant overseas investor in the sector. Occidental Petroleum is the second largest oil producing operator in Oman. More than 20

local and global hydrocarbon firms are engaged in produc-tion and exploration activities in Oman. Other companies operating in various capacities are Total, BP, CNPC, KoGas, PTTEP, Tethys and Repsol.

Though a small number of offshore concessions were granted in the past, Oman’s oil and gas sector is mostly an onshore business. Its oil and gas fields are mainly located in

the north and central onshore areas. PDO’s concession, Block 6 (90,874sq km) is the largest in the country and located in central and southern Oman. To its north lie two blocks of Occidental’s portfolio, which are Blocks 9 (4083 sq km) and 10 (1254 sq km). The Block 53 (694 sq km) is a new addition and much smaller in size. But it holds one of the most signifi-cant projects in Oman. Other significant concessions include names of industry majors like BP, Maersk and Petrogas.

A challenging taskA sound government policy has helped Oman’s natural resources like oil and gas to develop successfully against complex geological structures of the sultanate

A petrochemical plant

N a t u r a l r e s o u r c e s

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on the Path of growth46

In 2012, the government invited local and global companies to bid for exploration licenses in seven blocks. It included both onshore and offshore blocks with an emphasis on the latter. This was a point of divergence from its previous policy.

Growing demand for natural gas In recent times, Oman has seen the growing importance of natural gas. International companies operating in oilfields enjoyed the right to utilise the associated gas for running their wells. It is estimated that Oman’s oil reserves will run out in 17 years’ time unless it upgrades its recovery rates or look for economic diversification. The sultan-ate’s drive for an alternate economy became easier with the discovery of huge reserves of non-associated natural gas in the late 80’s. It was quickly adopted as Oman’s primary source of power. Electricity and desalination plants were fuelled by this new-found resource. The liquefied petroleum gas (LPG) is now used at homes, commercial enterprises and industries.

At present, the state-owned Oman Gas Company (OGC)

operates a 2500 km, government gas network and delivers gas feedstock to 39 major gas consumers like power and desalination plants, petrochemicals, and fertiliser industries, oil refineries, and others.

The scale of the non-associated gas finds in the late 80s and 90s gave boost to export that has seen Oman becoming a significant provider of liquefied natural gas (LNG) to the Asian

market. In 1994, Oman LNG was established by Royal Decree as the nation’s first LNG plant.

More exploration

The Petroleum Development Oman (PDO) is preparing to spend significant amounts to boost exploration and produc-tion (E&P) activities in the next five years.

in 2012, the government invited local and global companies to bid for exploration licenses in seven blocks. it included both onshore and offshore blocks with an emphasis on the latter

A gas processing factory

47THE MAJESTIC | 2013

Despite Oman being a developed oil producer, MOG zeroes in on exploration to maintain production levels in future. Since early 90s, the country has been successful in increas-ing its reserves. About seven to eight billion barrels of oil were produced over the past few years, indicating that explora-tion programmes are progressing well. The recent discov-ery at Amal speaks of MOG’s success in this field. Located in the southern region of Oman, this oilfield is estimated to

hold some 300m barrels. More opportunity for exploration came when the MOG bid for seven concessions in 2012. The private sector also plays an important role in explora-tion activity. Swedish firm Tethys discovered conventional oil about six km east of the Saiwan oil field in which it retains a 30 per cent stake alongside other entities.

The large reserve in Khulud Gas Westfield is PDO’s most

recent discovery, announced in 2010. According to industry experts, this indi-cates the future discoveries in Oman. But utilisation of such finds will rely primarily on the technique of hydrau-lic fracturing, another name for frack-ing, a cost-effective technology gaining ground in Oman. The process is useful for exploring the huge reserve of gas that lie underneath. At the end of 2011, Oman’s natural gas reserves stood at 948.6bn cu metres.

Oil production in the sultanate is getting associated with enhanced oil recovery (EOR) techniques. Bringing Oman’s oil to the surface, from deep inside its geolog-ical structure, had always been a very daunting task, which has encouraged oil companies to adopt EOR methods. There are many successful EOR stories in Oman. It projects a production level of 40,000 bpd by 2015. With advanced

recovery techniques, oil companies in Oman have adopted an array of advanced drilling methods. By 2021, six Enhanced Oil Recovery technologies, covering thermal, chemical and miscible recovery methods, implemented by PDO, are expected to boost production by 27 per cent.

While more return is expected from nation’s oil and gas infrastructure, MOG’s concern had been to expand Oman’s

the Petroleum development oman is preparing to spend significant amounts to boost exploration and production activities in the next five years

Sohar Refinery undergoing an upgrade


crude oil. But the complex geological structures have made this a daunting task. The production has dipped from 970,000 bpd in 2000 to 713,000 bpd in 2007. MOG has been able to reverse this declining trend, by investing in new wells, entering into partnership with foreign firms, and by adopt-ing state-of-the-art technology to increase efficiency. Oman’s fiscal posi-tion has also remained strong over the years, primarily due to the revenues generated from crude oil sales.

Oman exports more than 90 per cent of its crude oil production to foreign markets, predominantly in East Asia. Much of the residue goes to ORPIC’s two refineries, Mina Al Fahal (Muscat) and Sohar, the largest facility which is undergoing an upgrade. According to current plans, a 230,000bpd facility is coming up in Duqm in 2017. Both these developments will more than double refinery capacity, enabling Oman to export refined products.

In a nutshell

Hydrocarbon revenues accounted for 75.8 per cent of the total government revenues in 2007, increasing to 85.4 per cent of the total revenues as of 2012. The revenue gener-

ating from oil and gas sector is of major significance to Oman as it will take care of the increasing government expenditure, diversification plans and development of other sectors keeping in line with Vision 2020. Oil produc-tion in Oman, which made a significant progress over the past two decades, is expected to go up in 2014. But since the country wants to reduce the reliance on the oil & gas industry anticipating the future scenario, the economy

has been gradually diversifying into petrochemicals and other industries. The New Energy research report by Busi-ness Monitor International aptly says that Oman’s plans to expand its downstream sector with a new grassroots refinery in Duqm, demonstrate the positive outlook in the sultanate’s hydrocarbons sector.

milestones

1 On the occasion of His Majesty

Sultan Qaboos bin Said’s visit to Iran, the

governments of Oman and Iran signed

agreements of co-operation oil and gas

sector. A prestigious gas pipeline project

between the two countries is on the anvil.

2 The new integrated entity that has

resulted from Oman LNG and Qalhat

LNG joint venture has more operational

efficiencies now and enjoys synergies

from common facilities of both the outfits;

it represents Oman’s total LNG export

infrastructure.

3 Al Duqm Refinery, when complete, will

have a capacity of 230,000 barrels a day. It

will cater to local need, set up petrochemicals

plants to operate along with the refinery for

maximising revenue and supporting Oman’s

economy.

4 In 2012, the Ministry of Gas announced

that it will spend around USD70bn between

2013 and 2022 on oil exploration and USD

40bn for gas resources. This large scale

investment will bring opportunities to the

private sector.


ndustry plays a big role in Oman’s drive for economic diversifica-tion. Although its contribution in the overall economy is relatively small compared to that of the oil and gas sector, but neverthe-

less it is significant and goes beyond expectations. The Seventh Five Year Plan (2006-2010) had a strategy to achieve an annual growth rate of 11.7 per cent. But the actual growth rate exceeded 18.8 per cent annually. During the beginning of the first quar-ter of 2012, the industrial sector earned total revenue of RO222.7mn, which is about RO15.6mn higher than the reve-nue earned during the same period a year ago. The share of the industrial activities currently is above 17 per cent of Oman’s overall GDP for some years until 2011. In the beginning of 2012, the industrial sector contributed RO1.09bn to the economy.

New developments

Fertiliser production is a new emerg-ing area, which is directly related to the diversification of national income and growth of downstream indus-try in Oman. That the industry major like Oman Refiner-ies and Petroleum Industries Co, along with other petro-chemicals firms at Sohar, is joined by the fertiliser factory of Sohar International Urea & Chemical Industries in the Sohar Industrial Estate, is an indicator of this trend.

The sultanate’s downstream hydrocarbons and petrochem-icals segments are on an expansion mode with the comple-

tion of several projects, one of them being the oil refinery, formed by a joint venture in 2012 between The Oman Oil Company and Abu Dhabi’s International Petroleum Invest-ment Co, to be completed by 2017 in Duqm. This refinery will have a production capacity of 230,000 barrels per day.

A petrochemical complex is also being developed for cater-ing to Oman’s domestic consumption. Oil & Gas experts

feel that more stress has to be given to the internal devel-opment of the downstream industry, which gets mani-fested in the government’s in-country value (ICV) strategy. It benefits business development, contributes to people’s skill development and stimulates productivity of the econ-omy. It also helps to broaden the knowledge base of Omani entrepreneurs in fertiliser as a new area of exploration and other segments. According to ministry sources, an interna-

Sustainable alternativeA lot is going on in Oman’s industrial sector to diversify successfully from oil and gas economy

I

d i v e r s i f i c a t i o N


tional consultancy agency, Accenture Management Consulting is delegated the job to prepare a draft for an ICV for Oman. This is supported by the Minis-try of Oil and Gas and Oman Society for Petroleum Services (Opal).

Another key development in petro-chemicals is the expansion of OCTAL Pharmaceutical’s manufacturing facili-ties for polyethylene and terephthalate (PET) resin, a lightweight plastic used in packaging food and beverages and other consumer products. In the Sala-lah Free Zone, OCTAL has executed an expansion worth USD200m, mostly catering to markets in Europe, Asia, and North and South America.

Industrial hubs

Sohar industrial zone is now Oman’s most active industrial hub in the coun-try. There are three manufacturing sites in Sohar: Sohar Industrial Port Area (SIPA), Sohar Free Trade Zone (SFZ) and Sohar Industrial Estate (SIE).

In addition, there are local industrial areas planned at Barka and Al Muwaylah in Sohar which are partially developed. It is envisaged that the high quality heavy industrial facilities in SIPA will further provide opportunities for downstream manufacturers. The heavy industrial activity in the industrial port area concentrates on the petrochemicals and metals sectors with supporting logistics facilities to service both freight and heavy industry.

The Sohar Industrial Estate, owned and managed by The Public Establishment for Industrial Estate (PEIE), includes 60 operational businesses, of which 18 are under construction and a further 44 businesses are expected to be implemented in the near future. The manufactur-ing units in SIE include marble, paper recycling, foodstuffs, detergents, leather, furniture, toothpaste, beverages, ice cream, resins, glass, steel bars, and engine oil. The Sohar

Aluminum smelter (which owns the world’s longest single pot line) is located in the industrial estate. A salient feature of the SIE is the low land rental charged to tenants. The Sohar Free Zone is located approximately 5 km inland from Port of Sohar.

Salalah’s free zone, an 1800 ha area, divided into two major plots next to the Salalah port is operated by the govern-

Sohar industrial zone is now oman’s most active industrial hub. it includes 60 operational businesses, of which 18 are under construction and 44 in the pipeline


ment owned Salalah Free Zone Company. It has enhanced the Port of Salalah’s value as a shipping and logistics hub. Investors who operate from the free zone enjoy tax exemptions and are not bound by import restrictions. Full foreign ownership along with a one stop-shop licensing process comes as added benefits. The free zone, attached to the port, allows setting up businesses, utilising the road and air connectivity to the advantage of entrepreneurs.

The Salalah port is connected to the world, with direct service to 50/60 ports in the world, including the US.

The free zone has been able to attract major names; Oman’s largest container shipper, OCTAL Pharmaceutical, is stationed in Salalah free zone as mentioned earlier. Other major industrial firms operating in the free zone include Salalah Methanol Company, and Dunes Oman, a manufac-

turer of truck components and brake parts. Deutsche Post DHL would be setting up its facility soon and SALT-ECH has started making investments. Port of Salalah enjoys around 10 per cent of the regional transshipment market, and is trying to grab a bigger share by doubling its capacity.

Growing clusters

In 2008, the Brazilian mines and metals conglomerate Vale and Sohar Indus-trial Port Company signed an agree-ment. Accordingly, a facility was set up to produce 4.5m tonnes of direct-reduction pellets each year. Located on the SIE, the plant started operating in 2011. Jindal Shadeed Iron and Steel (JSIS), the Indian Steel conglomer-ate had commissioned a steel plant in the SIE near the end of 2010, with

a production capacity of 1.5m tonnes per annum (tpa). To suit the current domestic demand, the firm has expansion plans up its sleeves.

Oman’s metal cluster is further bolstered by the planned addition of two ferro-chrome smelters. One of them is the one to be built by a joint venture signed between Freezone Sohar and Gulf Mining Materials Co.

the sultanate’s downstream hydrocarbon and petrochemical segments are on an expansion mode with the completion of several projects


A relatively recent entrant in the region’s metal market and a prospec-tive downstream client of Sohar Aluminium, Oman Aluminium Rolling Co (OARC) is setting up an aluminium rolling plant in Sohar to manufac-ture flat sheet and aluminum foil to cater to European and MENA region markets. Scheduled to operate in the third quarter of 2013, the plant is expected to have an initial production capacity of 140,000 tpa. Located at the SIE, Sohar Aluminum operates a 1.2 km long single potline smelter that produces around 360,000 tonnes of aluminium annually.

The sultanate’s mining sector has seen substantial growth. According to Ministry of Commerce and Industry, gypsum output soared more than 90 per cent in 2011, so also production of laterite, marble, copper, limestone, though a little less. The general mining production has gone up significantly and the segment has also developed into new areas like commercial mining of manganese in 2011.

However, such operations being capital-intensive are the reserve of large firms, though SMEs have a miniscule market here for equipment leasing and maintenance.

Institutional supportA number of government bodies are involved with industrial activities in Oman. The Public Establishment for Industrial Estate, as mentioned earlier, develops and manages a number of industrial estates, including the sites at Sohar, Rusayl, Nizwa, Al Mazunah Free Zone and Sur industrial estates, apart from a technology park. It also guides an entrepreneur to understand the provi-

sion of incentives available to firms and facilitates the process of securing industrial permits required for setting up industries.

His Majesty Sultan Qaboos bin Said has also issued Royal Decree No. 35/2012 for setting up the Public Author-ity for Investment Promotion and Export Development (PAIPED). The authority is specialised for developing a


strategy for investment promotion as well as exports and preparing plans and conducting studies and researches for the same. Also authorised to aid investors in legal issues and in any obstacle they may face, PAIPED can also organise programmes for investors to visit the sultanate to review investment opportunities available in the country. The authority will also provide information to exporters and importers about Omani products by

organising seminars and workshops and providing assis-tance to Omani exporters and importers.

Positive Outlook

As Oman’s industry sector continues to grow and diversify, a number of additional challenges will need to be worked through. Industry majors have pointed out that there is

a general lack of supporting industries in the sultanate, compelling them to look abroad for some machinery parts. But they are not without hope. Large expansion projects are under way. Government efforts to facilitate innovation (through research and development and the Industrial Inno-vation Centre) and increase the availability of skilled labour should help propel the sector over coming years.

fertiliser production is a new emerging area, which is directly related to the diversification of national income and growth of downstream industry in oman

PO Box 515, PC 132 Al Khoudh, Sultanate of OmanTel: +968 24542255 / 24542552, Mob: +968 95661858, Fax: +968 24545441

www.gulflaboratories.com

GULF GEOTECHNICAL SERVICES AND MATERIAL TESTING LLC



43rd National Day


PO Box 515, PC 132 Al Khoudh, Sultanate of OmanTel: +968 24542255 / 24542552, Mob: +968 95661858, Fax: +968 24545441

www.gulflaboratories.com

GULF GEOTECHNICAL SERVICES AND MATERIAL TESTING LLC



43rd National Day

man’s transporta-tion network is faced with challenges of geographic nature. The mainland Oman is divided into three parts:

the northern region, where the capital city of Muscat or the hub of industries in Oman is located; it has a mountain-ous interior with a populous coastal strip. The Dhofar region in the south is also precipitous with long coastal lines. The central part is a rather underdevel-oped territory, mostly a plain gravelly desert. This geographical landscape has made the job of laying the transport infrastructure quite challenging, though not unattainable. So what we see today is a well spread out transport network, the expansion of which in Oman is a direct outcome of the government policy that stresses the need to encour-age public private partnerships (PPPs) and other forms of private sector involvement.

The Eighth five-year plan has allocated USD75.88bn as a total investment for infrastructure sector. A major share is earmarked for transport infrastructure development, of which, USD4.18bn is assigned for airports, USD3.12bn for roads, and USD1.27bn for sea ports.

Ports as multi-modal hubs

Oman enjoys a strategic central position to meet the world shipping traffic passing through the Arabian Sea. The coun-try has some of the best deep water ports in the Indian

Ocean, capable of serving as a major trading hub for quick service to ports of east Africa, western India and Pakistan.

The Omani government, however, does not look at ports as isolated means of communication but as transporta-tion network as a whole. With this approach, the Sultan Qaboos Port in Muscat will be transformed into a tourism-oriented venue, while Sohar Port will expand its commer-

cial and industrial strengths and Sur Port its LNG. Linking these ports and thus transforming them into more effec-tive, multimodal hubs, is an integral part of the road, rail and air building plan. To accelerate the process of Muscat’s transformation into a tourism and maritime heritage port, in July 2011 His Majesty Sultan Qaboos bin Said directed ministers to transfer Port Sultan Qaboos’s (PSQ’s) cargo and container operations to Sohar Industrial Port (SIP) in

Holistic approachIn Oman’s drive for diversification, substantial investment is highlighted for infrastructure development which will accelerate Oman’s growth

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the al Batinah governorate. This will let PSQ to function as a dedicated tourism port.

Located south of the Strait of Hormuz, SIP is an integrated, fully operational, 6300-ha deep-sea industrial port with a draught of 18m. The port hosts petro-chemicals, logistics and metals clus-ters. It is also undergoing one of the largest port development projects in the world, with investments of over USD14bn. SIP has evolved into an indus-trial port equipped with modern facili-ties. A 50-50 joint venture between the government of Oman and the Port of Rotterdam, SIP is operated by Sohar Industrial Port Company (SIPC) and is International Ship and Port Facility Secu-rity (ISPS) certified.

Cluttons has announced the first phase of the upcoming develop-ment of state-of-the-art warehous-ing and light industrial units for the rental market in Freezone Sohar. This development will be availed by free-zone companies on a leasehold basis and will be completed shortly.

The development layout and units have been designed after extensive market research and analysis to determine tenant requirements. The developer is Al Siraj Logistics which has worked closely with the freezone authority on this project. Cluttons has been appointed as the sole marketing and leasing agent for the development.

The layout and design of the 14 units (during Phase 1)

match international standard and allow for both business flexibility and operational efficiency. The units boast insu-lated walls and roofing with natural lighting and ventila-tion. There is dedicated car parking for each unit and a loading and unloading area, with two bays and a ramp. For those with larger space requirements, units can be joined together to create a larger space. Each unit is connected to suitable power, water, drainage and tele-

communications services. “The Al Siraj Logistics devel-opment is an exciting step forward for the light indus-trial and logistics sector in Oman, and provides much needed facilities for companies looking to take advan-tage of being located in Freezone Sohar. There is a strong demand for this type of unit that has not been catered for until now,” comments Matthew Wright, Head of Logistics & Industrial for Cluttons in Oman.

the eighth five-year plan has allocated USd75.88bn as a total investment for infrastructure, of which, a major share is earmarked for transport infrastructure development


Located on the coast, roughly halfway between Muscat and Salalah, the port of Duqm is the sultanate’s newest maritime trade facility and one of its most important centres for ship repair and shipbuilding.

The port is currently handling project cargo, oversized or overweight items for specific projects, mainly in oil and gas or construction, along the 2200m of quayside.

The Port of Salalah is also evolving into a multimodal trans-port centre, with air, road and, soon, rail links to local and global markets. Tenders for consultancy studies are under-way to build new terminals for the purpose of commerce, services and tourism at the port. In its next stage of devel-opment, running up to 2014, the port will see cargo capac-ity increase to more than 20m MT per annum, while a new liquid bulk facility should be able to handle more than 6m

MT per year. The quay length is also set to rise to 3130m.

Highway projects

We have seen a remarkable growth in the development of road and other transport networks in Muscat and adjoining areas. Old style infrastructure is replaced by new ones to ease traf-fic in the city and its outskirts. The road network in the country is growing with some challenging highway projects either underway or in the pipeline.

In terms of length, the most ambitious of these schemes is a new Muscat-Sala-lah road. Linking north and south, the current highway is a dual carriageway from Muscat to Nizwa, followed by a single carriageway thereafter. The plan at present, which is still in the design phase, is to introduce grade separation the whole way, with a 71km stretch from Adam to Thumrait to be dualised. Parsons International was awarded the contract for design and construction supervision services for the Nizwa-Thumrait stretch of the highway in July 2012 by MOTC.

A second key roadway initiative is to further boost connec-tivity between Muscat and Sur, which lies 337km southeast of the capital. Sur is an important Liquefied Natural Gas (LNG) terminal, with an important port and growing popu-lation, yet its road connection to the capital has long been unsuitable for modern-day traffic. This project commenced some years ago, with the section from Muscat to Bidbid

linking the ports and thus transforming them into more effective, multimodal hubs, is an integral part of the road, rail and air building plan of the government

Muscat International AirportPhoto courtesy Oman Airports Management Authority


Photo courtesy Port of Salalah


being complete. The intention now is to link Bidbid to Sur, a distance of approximately 200km, by dual carriageway.

A third major project under way is the construction of a parallel highway to the one currently linking Muscat to Dubai in the UAE. The current highway, which is being upgraded, is an extremely busy link route, both for busi-

ness and tourism purposes leading to severe conges-tion. Hence, construction of a new, 265km road is now under way. It is also referred to as the al Batinah Express-way project after the Omani region through which much of it passes. The MOTC announced in September 2012 that the project has been divided into 11 different pack-ages, with the total worth around USD2.59bn. Under the Eighth five year plan, the Nizwa-Thumrait road has been allocated USD632.33mn; the Bidbid-Sur road will receive USD607.03mn, while the al Batinah Expressway is to get another USD632.33mn.

Partnering with European construction giant Ferrovial Agroman, a well-established contractor Federici Stirling Batco LLC, (FSB) mounted a successful bid for an array of prestigious road and bridge schemes in the sultanate and has been awarded Package 5 of the Batinah Express-way Project at a cost of RO132.6mn. It will cover a 41-km length of the ambitious carriageway project from Sohar to Liwa. Given the undulating terrain through which Pack-age 5 will negotiate, the JV will also undertake 17mn cubic metres of earthworks. When completed tentatively by the 2016, the Batinah Expressway will serve as a new all-weather, eight-lane superhighway extending from Muscat to Khatmat Malaha on the sultanate’s border with the United Arab Emirates. The project will fetch economic investment as well as aid Oman in emerging as a logistics gateway to the Gulf region.

Railway network

The Ministry of Transport and Communications is over-seeing the implementation of Oman Rail, which plays a pivotal role in the modernisation of the country’s freight

distribution system, connecting ports with population centres, industrial hubs and mineral sites. Some elements of the network are due to come into operation by 2018. A 2244 kilometre long network, extending from Buraimi in the north to Salalah in the south, is envisioned. En route, the network will touch upon Khatmat Malaha, Sohar Port, Muscat City, Duqm Port and Salalah Port.

The first phase of the GCC rail project is scheduled to be operational in late 2018, with the railway eventually extending all the way down the coast of the sultanate from Muscat to Salalah. At 1061km, Oman’s stretch of the GCC railway is expected to become a major asset to the country’s infrastructure and boost its transport and logis-tics sectors. To develop and build this stretch of rail will cost the government more than USD5bn.

The national railway project is planned to unfold in three stages. The first will see a 136km link up between the UAE city of Al Ain and the industrial port of Sohar, with an 8km spur line to Buraimi. The line will then continue to Muscat, and thereafter to stations at Sinaw, Ibra, and the new port of Duqm. Stage two will connect Duqm to the southern port city of Salalah, while stage three will connect across the border to Yemen. Completion of the design phase is scheduled for the end of 2014, with the construction phase set to begin in mid to late 2014.

The next few years promise significant transformation for the sultanate. New and expanded roads, a handful of new airports and airport extensions, and major port develop-ments are under way, with opportunities for both local and international transport and logistics players also rapidly expanding. Oman is positioned well in the global market.

federici Stirling Batco, a reputed contractor has been awarded Package five of the Batinah expressway Project at a cost of ro132.6mn


man’s physical beauty is breathtaking, though not without chal-lenges when seen from economic point of view. The undulat-

ing terrain and stubborn rock forma-tions pose difficulties for construction projects. But the very geographic forms that pose challenge for economic development become a plus point when seen from the country’s tourism perspective. The natural landscape of Oman is defined by rugged mountains, blue waters and sandy shores; added to this are the relics of the past which make the country look magnificent. It is a country of enormous diversity. With modern facilities and hospitable Omanis, Oman has become an attrac-tive tourist destination for discerning travellers. In 2011, Muscat was picked up by the Lonely Planet travel maga-zine as the world’s second best tourism destination to visit in 2012.

The drive for developing an alternate economic source, away from oil and gas economy, has led the leaders take up tourism as a top priority. As the government accorded importance to this sector, a Royal Decree was passed in 2004, establishing a Ministry of Tourism. The potential for tourism in Oman is very high as the country basks in the glory of its pristine scenic beauty which helps it to stand out in the region. This is a criti-cal factor for Oman as other countries are also spending billions in investments in tourism sector. Oman had been making its own investment and the prospect looks good.

In 2012, tourism sector represented three per cent of the GDP which is worth RO768.9mn (USD2bn).That was up by 5.8 per cent on 2011, according to the London-based World Travel and Tourism Council.

Accommodation for tourists

The government was not keen on promoting the sultan-

ate to tourists until it was ready to accommodate them. Now, with a sound infrastructure network, a wide range of international hotels and a lot to be seen and done, Oman opens its doors to visitors from around the world.

Omran, the ministry’s commercial arm, is execut-ing many tourism projects, one of them being Duqm Crowne Plaza Hotel, catering to both leisure and busi-

Power of beautyThe Ministry of Tourism is geared to bring sustainable growth to the tourism industry, at the same time generating employment for Omanis

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Riyam Park overlooking the Arabian sea


ness travellers in the area. Its five star Alila Jabal Akhdar Resort is a landmark project set to become a high-end tourism destination.

Between 2012 and 2022, tourist arriv-als are expected to grow at a CAGR of 5.7 per cent. Occupancy rates are expected to increase from 53 per cent in 2011 to 58.6 per cent by 2016. According to the Ministry of Tour-ism, hotel room capacity in Oman is forecast to grow at a CAGR of 5.3 per cent over the period 2011 to 2016. An additional 2000 will be made avail-able by 2013-end. Many of the hotels are located outside the periphery of the capital so that payback from the sector is enjoyed by different regions across the country.

Projects like the new USD80mn Azaiba Hotel indicate a growing hotel market. The Four Seasons plans for a hotel in Oman as part of its expansion into the Middle East luxury market and Dubai-based Gloria Hotels and Resorts will open one of its hotels in Oman in 2015 in May. The Ministry of Tourism reviews and updates star ratings at hotels and hotel apartments periodically as part of quality control exercise.

Several well designed Integrated Tourism Complexes or ITCs are also being planned. The idea is to provide the visitors all the facilities under one single roof.

Adventure tourism

Oman’s unique topography exhibits various geographical forms and diverse climates, the most famous of which is the

Khareef or the south-east monsoon. During Khareef, when the weather cools down in the Dhofar region in south-ern Oman, visitors, local or foreign, flock to this part of the country. Their number is continually rising, informs Ministry of Tourism. The growth potential in Oman’s domestic tour-ism market is as good as that in global market, according to observations made by experts.

Alila Jabal Akhdar ResortPhoto courtesy Omran

the potential for tourism in oman is very high as the country basks in the glory of its pristine scenic beauty which helps it to stand out in the region


Oman’s mountains and valleys are ideal for camping and adventure segment. The mountains have a network of caves, cliffs and river valleys (wadis) and the ministry is making investments in this largely untapped sector. The ministry is looking to expand its network of geotourism expertise involving relevant companies and has a number of initiatives underway to promote camping and adven-ture segment. At the beginning of 2012, the Ministry of Tourism announced its plans to upgrade the Via Ferrata (VF) hiking and climbing trails meandering through Oman’s

canyons and wadis. Via Ferrata is an Italian expression for ‘iron road’ in Italian, adopted by the Omani government. During the First World War, the term was used for trail networks built to facilitate troop movements through the Italian Alps.

The ministry has installed three routes in in Oman – one at Jebel Shams (VF1) in Al Batinah Governorate, one at Snake Canyon (VF2) near Bilad Sayt and one at Bandar Khayran (VF3). One of the initiatives to promote adven-

ture tourism, Oman hosted the fourth annual event of Red Bull Cliff Diving World Series in Wadi Shab, a popular tourist spot. The event drew an esti-mated 5000 visitors.

Oman has vast potential for outdoor recreation and the government has plans to expand the niche further. As its geography is diverse and different from the neighbouring countries in the region, exploiting the existing natural features for outdoor activities catapults Oman to a position of unique tourist destination in the GCC. The govern-ment has gone one step ahead by uplifting rural areas, helping regions fetch increased tourism revenues.

An increased number of flights connecting Salalah and Dubai and Sharjah have also fetched higher tour-ism revenues in recent times. The

country is seeing a growth in locations outside Muscat, with significant investments pouring into the hospitality sector in Salalah, Khasab and Duqm. The opening of Wadi Dayqah Dam near Quryiat for recreation is a good exam-ple of how non-tourism infrastructure upgrades are giving a boost to tourism development endeavours.

Oman Sail was a natural outcome of Oman’s long associa-tion with sea. The organisation is offering sailing education programmes and training a new generation of Omani sail-

Red Bull Cliff Diving World event in Wadi Shab


Tourists enjoy adventure sports in Oman


ors to compete internationally. As sailing grows in popularity, along with the development of marinas and ports infrastruc-ture, the country could enjoy a heightened international profile and more tourism based water sports, like boat racing.

Conservation issue

Oman’s strategic location along the sea has grabbed global attention. Local groups along with the Persian, Portuguese, Ottoman and British fought to gain control of different regions of today’s sultanate. 500 forts, castles and towers

hold testimony to that history. The Ministry of Heritage and Culture has made efforts to upgrade and expand the sultan-ate’s museum network and conserve its forts.

While the work on National Museum is going on, research and archaeology has drawn foreign interest. It is the minis-try’s objective to increase the footfalls in the museum. Investments in museum and conservation will have posi-tive effects on tourism. The sultanate’s tourism revenue from international visitors increased from USD996m in 2011 to USD1.095b last year, according to a recent report by United

Nations World Tourism Organisations report. It is for the first time that the international receipts exceeded USD1bn for the first time in 2012, making it one of the top tourism destinations in the Gulf region.

Business tourism

The majority of tourism revenues come from leisure tourism. But work on devel-oping further facilities has been going on for quite some time. Oman already has a handful of venues like Oman Exhibition Centre and major hotels are currently serving the need for the meetings, incentives, conferences and exhibitions (MICE) segment. Expanding MICE facilities has been a major priority for the country’s tourism authorities for promoting business tourism offerings. A number of measures are currently undertaken in this direction.

One is the Oman Convention & Exhibition Centre (OCEC), set to be a 22,000 sq m facility just outside of the capital. In addition to a 3200 person auditorium and 14 theatre style meeting rooms, the OCEC include a Crown Plaza hotel, two exhibition halls along with a ball room. This variety will allow the facility to serve a wider range of events. The time-line for completion is 2016. For the convenience of visitors, the Ministry of Tourism last year announced a new class of less costly visa in 2012 which could incidentally boost the MICE sector.

many of the hotels are located outside the periphery of the capital so that payback from the sector is enjoyed by different regions across the country


A number of tourism -related infra-structure projects were initiated to handle an increased number of visi-tors from business, leisure and other purposes. A total of four new regional airports are under construction at Sohar, Ras al Hadd, Duqm and Adam, while Muscat International is in the midst of a major expansion.

As a holistic approach, maritime connections are scheduled for upgra-dations. The construction of a dedi-cated cruise passenger terminal is under way in Salalah. Although the port in Salalah already receives cruise liners, authorities hope to increase the region’s capacity and build on the success of Muscat’s Port Qaboos cruise terminal, which became oper-ational in February 2010. In July 2011 the government decided that Port Sultan Qaboos (PSQ) should be converted into a fully-fledged tourist hub and that all commercial import and export operations should be relocated to Sohar Indus-trial Port. In 2011 and 2012, the Ministry of Transport and Communications and the Ministry of Tourism, in collabo-ration with the relevant government departments and private sector institutions drafted plans for PSQ and the services and utilities it would provide in its new role.

As Oman develops its tourism sector through more hotels, conference venues, and outdoor activities, the economy

as a whole prospers, though challenges cannot be ruled out. While the government is investing heavily in infra-structure development, Oman has to wait for some time before the process comes to full effects. The Ministry of Tourism, along with government players, private inves-tors, and foreign developers, is now evidently set to bring sustainable growth to the industry, while generat-ing employment for Omanis. Omran’s internship initiative is accelerating the process of employment of Omanis in

tourism sector. In September 2012, Omran had received highest number of student interns’ intake from Omani colleges and universities. By working along with the professionals, they will acquire a better understanding of how the sector operates and where they can apply their skills effectively. Their hospitable nature comes as a bonus point for the travellers.

the sultanate’s tourism revenue from international visitors exceeded USd1bn for the first time in 2012, making it one of the top tourism destinations in the region

The upcoming Oman Convention & Exhibition CentrePicture courtesy Omran


he Muscat Festival is a major cultural event of Oman held every year in different parts of the capital city. Launched in 1998 as a forum for

cultural and artistic events, many prestigious events, shows and sports events, recreational in essence, are showcased by the Muscat Municipal-ity, the organising committee of the festival. People hail from all across the country and international and neighbouring Arab countries to host and attend the vibrant festival, which helps promote social interaction among people and develop an ambi-ence of harmony. Although the exact dates keep varying, the festival usually happens in the months of January and February.

Every year the festival is launched in a renewed form that carries numerous features and highlights, mixed with heritage and contemporary trends, conveying a message of welcome to everybody to visit this historic city. Since its inception, the festival received large audiences for enjoying the events and activities.

Events galore

Though events with global outlook and orientation enhance the allure of the festival, it is Oman’s culture and heritage that are essentially showcased through various events that take place in Muscat’s sprawling parks like Al-Naseem

Park and Qurum Natural Gardens. Al-Amerat Park is a new inclusion this year. Some popular activities include, but not confined to, the Tour of Oman with bikes, which has six new terminals and is one of the biggest cycling events in the Middle East. Muscat Fashion Week, Oman Food Festival and adventure sports like Mountain cycling, also receive exten-

sive media attention and applause. For food connoisseurs, the Oman Food Festival is a delight, which reveals Oman’s culinary history and an array of various food delicacies. It also includes laser shows, fireworks, carnivals and folklore in addition to acrobatics, the World Circus shows, free style presentations from a group of artists and musical concerts.

Festival of living traditionsUnder the wise leadership of His Majesty Sultan Qaboos bin Said, the Muscat Municipality is now looking forward to receiving the continued support of the private sector for this spectacular festival

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Photos Sanak Roy Choudhury


These entertainment events are to carry on till the tail end of the festival. Parks are wide open throughout the festival period with a small access fee for the young and adults, and some-times free of charge. For shopaholics, Muscat Festival provides the platform for enjoying the best bargains and win some interesting shopping deals.

In addition, the Omani Heritage and Culture Village, brings together Omani craftsmen for showcasing their tradi-tional arts and crafts. They display their work, crafted in front of the viewers, who can directly see the manufac-turing process of traditional Omani products, like Omani baskets and silverware, well-known for quality and mastery of manufacture, in addition to the well-known conventional potteries and others like traditional Omani rugs made from goat hair that have distinc-tive colours and patterns and mats woven from palms and reeds. Many of these stalls are run by community groups and staffed by women. The number of participating artisans, musical troupes and work-ers in the heritage village goes up to 3,000 in headcount. The heritage village aims to promote the Omani tradition and culture for its sustenance.

In 2013, the Muscat festival has integrated with the Inter-national Festival of Traditional Crafts and Arts for the first time, attracting some of the best craftsmen in the world,

who competed for Muscat International Award for Inno-vation and Creativity in Crafts. The festival brings together more than 30 of the top international innovators and craftsmen in the International Village for Traditional Crafts and Arts to showcase their artistic skills and today’s inno-vative techniques.

Visitors of the international village saw skilled craftsmen

of the participating countries from the region and abroad showcase their diverse handicraft and heritage products. A gallery containing drawings, pictures and books and a dedicated area for sale were also visited by people.

Glittering laser shows have become an important element of the Muscat Festival for quite some time. A large stage is equipped for impressive spectacles which are distinguished

every year the festival is launched in a renewed form that carries numerous features, mixed with heritage and contemporary trends, conveying a message of welcome to everybody


by the participation of international bands such as this year from France, South Korea and China. Sometimes competi-tions are also held among students in order to reflect their cognitive perceptions about the natural and marine envi-ronments, harmonizing with dazzling laser shows, melodi-ous musical performances, and water shows.

The Muscat Festival hosts numerous popular entertain-

ment and social events which create an ambience of joy for families and visitors. The daily events include the Elec-trical and Electronic Game Village as well as the clown shows, acrobats, the magic shows. A shopping gallery from other countries to sell dresses, antiques, clothing and cuisine attract visitors from all walks of life. Fireworks launch in the evening illuminate the sky with sparkling colours that looks spectacular.

Aiming to promote tourism and culture in the sultanate, the festival is dedicated to people of all ages and tastes. All the participating stakehold-ers in the festival, especially Royal Oman Police, extend their coopera-tion to visitors to the festival so that they can have access to facilities. Flex-ibility is exercised at the border points and at the airport so that both visitors and tourists, to the sultanate in general and the festival in particular, can get through checkpoints and enjoy the Muscat Festival’s diverse events and activities in all locations.

The Muscat Festival 2013 witnessed active participation of the private sector compared to that of the previ-ous years. Many private companies

have supported the festival by being its gold, silver and bronze sponsors. Support also comes in a big way from the Ministry of Tourism and premier houses like Bank Muscat, Omantel and Zubair Group. The festival manage-ment coordinates with companies and hotels to provide discounts and facilities, showing a kind of agreement on this issue, whereby they in turn, gear up to make the festi-val a total success.

the omani heritage and Culture Village brings together omani craftsmen for showcasing their traditional arts and crafts. they display their work, crafted in front of the viewers


Spreading the good wordSpecialised media centres are set up to follow up the events and activi-ties and make reports for daily press coverage. A specialised media team monitors the events for local and Gulf newspapers that allocate daily supple-ments on the festival. Specialised radio and television programs familiarise people with the events of the festival. The media and marketing campaign is regarded as one of the most crucial factors of success in attracting larger numbers of visitors both from local level and beyond the sultanate.

In this regard, the organising commit-tee of the Muscat Festival broadcasts and publishes advertisements of Muscat Festival in the various local and external media to promote the festival events. The adver-tisement is promoted at Muscat International Airport, Dubai Airport and Doha International Airport. It is broadcasted and aired in reputed Arabic and English satellite television and radio channels.

It is hoped that the next festival will make a unique stride with the addition of many new activities that would come

along with the allure of the Arab, Islamic and international participations. Renewal in regular events and notable termi-nals like the heritage village and popular exhibitions make the event worth waiting for. Under the wise leadership of His Majesty Sultan Qaboos bin Said, the Muscat Municipal-ity is looking forward to witnessing the concerted efforts and receiving continued support of the private sector for this spectacular occasion.


t was May 2011, when His Majesty Sultan Qaboos bin Said issued a royal decree for introducing Islamic bank-ing in the sultanate, paving the way for Oman to be a part

of global business. Islamic banking, bonds and insurance are fast grow-ing global industries that were not there in the sultanate earlier. Now that Islamic financial services have arrived in Oman, it has given impe-tus to capital markets and interbank competition. This new development, which is expected to change the face of its banking services, is welcomed by Omanis. Islamic banks can now deposit their assets in sharia-compli-ant investment products.

One month after the Royal decree was issued, the Central Bank of Oman (CBO), released a circular which allowed the conventional banks to open Islamic banking services and open Islamic windows.

While established conventional banks have opened Islamic windows, the two institutions that had come forward to acquire Islamic banking licenses were Bank Nizwa and Al Izz International Bank. For acquiring licenses, they had to satisfy a list of criteria in compliance with sharia laws. Setting up their own sharia boards and ensuring the products offered were sharia-compliant, are the two basic conditions that became the basic requirements of Islamic banks seeking licenses. New Islamic banks had to start with a minimum of RO100mn in

capital. Part of this capital is to be raised through initial public offerings (IPOs) of 40 per cent of their shares, to be enlisted on Muscat Securities Market (MSM). Bank Nizwa fetched RO681mn in bids, which was 11 times the sum it was initially trying to raise. Al Izz International had begun its IPO in late 2012, with 400mn shares on offer at 102 baisa per share, oversubscribed for 1.15 times.

Islamic windows were opened by conventional banks following the Royal decree. The National Bank of Oman (NBO) launched a sharia-compliant brand known as Muzn; Bankmuscat launched Meethaq; Ahli Bank launched Al Hilal and Bank Sohar enlisted consultancy Dar Al Sharia to help set up its window. These shifts are in compliance with the Islamic Banking Draft Framework (IBDF) prepared by

Broadening opportunitiesWith the arrival of Islamic banking services in Oman, the banking sector has undergone changes significantly and generated interest among people

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Photos Sathyadas Kidangoor


Ernst & Young and the CBO, the regu-lation of Islamic banking windows. The regulations also stress on the fact that there must be a clear-cut distinc-tion between Islamic and conven-tional products and operations. In accordance with the IBDF directives, Islamic banking windows must have dedicated branches. Conventional banks are now geared to re-brand their branches.

IBDF also sets a 12 per cent mini-mum capital adequacy ratio, with a minimum paid-up capital of RO10m to open a window. The conventional banks are mobilizing funds to rein-force their new windows.

Flow of deposits

The Islamic banks and windows are expected to gain from three sources of deposits-1: Those existing bank custom-ers who transfer to sharia–compliant accounts. 2: Those who do not avail of banking system, they enter Islamic banking. This is particularly evident in the conservative regions of Oman’s interior. 3: There is likely to be a flow of repatriated funds from abroad, as many Omanis have

parked their accounts in neighbouring countries where Islamic banking is present for a long time.

Bank Nizwa and Al Izz will have six branches each and so also Bank Muscat. After the first flush of excitement, pricing and products are likely to become the main arena for competition. So finally the success of Islamic banks in Oman will be subject to the pricing policy of their prod-ucts. It is observed by experts that Islamic financial insti-tutions may not downright outdo conventional banks in

competition, but rather vie with them for market share.

While more awareness needs to be generated for Islamic banking in the country, its introduction in Oman is help-ing banks, regulators and customers alike to learn about the benefits this system of banking. Many Omanis, who earlier had worked in Islamic banks abroad, now bring their knowledge and proficiency back to the sultanate. It is expected that Oman will, in course of time, become a significant market for this global industry.

the iBdf regulations stress on the fact that there must be a clear-cut distinction between islamic and conventional products and operations


MakingA nation in the

promise you to proceed forthwith in the process of creating a modern govern-ment,” pledged His Majesty Sultan Qaboos bin Said on his ascension to the throne

in 1970. With his promise to the nation, the creation of a contempo-rary education system became a dire need in the 70’s as it was the only means to equip Omanis with skills and knowledge for developing a modern economy. A significant portion of the proceeds from hydrocarbons fortune were spent on this sector. From three rudimentary schools in Muscat and Salalah, with a total of 909 pupils, and not more than 30 teachers and no base for higher education, today the system has grown into a super-structure that speaks of the progress of the sultanate, keeping in line with the modern world.

Growth of higher educationOman’s higher education sector, which is relatively young, is a blend of public and private enterprises. With the founding of Sultan Qaboos University (SQU) in 1986, the state-owned university system started operating. Prior to this, Omani students aspiring for university education had to leave homeland for either neighbouring Arab countries or UK or US. With SQU, students now got the chance to study on home ground. Four more colleges were added in recent times to the existing five under SQU. In the academic session of 2010/11, more than 17,000 students were enrolled in SQU,

which has earned its reputation as a centre of teaching, research and community activities.

The six state run Colleges of Applied Sciences in regional cities, with 8000-odd students, have evolved from teacher training facilities to entities offering degree programmes that comprise IT, international business, communication studies, design and engineering.

The government also provides vocational education at tertiary level. The Higher College of Technology with more than 10,000 students is presently the second-largest after SQU. Upgraded in 2001, the college offers programmes up to undergraduate level. This apart, there are six other tech-nical colleges at Salalah, Ibra, Al Musanaa, Niza, Shinas and Ibri that offer programmes up to higher diploma levels in IT, business, science and engineering. Along with voca-

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The gift of educationRoyal Directives have announced scholarships for promoting higher education in the sultanate

a nation in the making76

tional training, good grooming and impeccable style is becoming inte-gral to look the part in any corporate set up. So, institutions are offering behavioural training as its popularity is increasing.

By the middle of 1990s, Omanis, settled abroad, approached the government for raising the domestic capacity in tertiary sector, which has accelerated the growth of the private sector in the education arena.

Since 2000, a number of positive measures have been initiated to accel-erate the growth of higher educa-tion institutions, which included land grants and a matching grant system for private universities. Omani students now had the option to choose between public and private institutions for higher education. Private colleges burgeoned in recent years, and there are a total of 19 in 2012. Seven private universities have also been established in Muscat, Sohar, Dhofar, Nizwa, Buraimi and Sharqiyah. The German University of Technol-ogy in Oman (GUtech) was founded in Oman in 2007 in collaboration with Aachen University. With Royal directives promoting training courses and extensions of colleges of technology, private colleges are now zeroing in on the growing sectors that require trained workforce.

Private institutions now play a significant role in prepar-ing a qualified labour force. During the current year, the number of private higher education institutions rose to

19 private colleges and seven private universities spread across different governorates of Oman. Such institutions offer different specialties and programmes at the diploma, graduate and post-graduate levels, where the number of students is multiplying.

The operation and development of private universities and colleges, public colleges of education, teacher train-

ing colleges and SQU are overseen by the Ministry of Higher Education.

Rise in research pursuits

A significant rise is seen in research activity. In addition to USD1.3mn from His Majesty’s Trust Fund Grants to pursue strategically important long-term projects, the reputed

recently royal directives were announced to provide 1,500 external scholarships and 7,000 internal scholarships to students in the higher education institutions


SQU research centre receives USD1.3mn from the univer-sity. Fund is also generated for the centre by the regional and global agencies, industry and individuals. A national body, The Research Council (TRC) set up in 2005, grants 70 per cent of its fund to SQU. TRC is to promote and act as a focal point for research and innovation in the coun-try. It plays an active role in promoting open research and strategic research in private sector institutions. With TRC

grant, GUtech undertook a study of locally sustainable urbanisation, and Dhofar University is conducting research on the optimal use of Oman’s resources. As a facilitator for research activity, TRC in tandem with group of institutions, monitor reforms across the entire education sector.

The Eight Plan has granted the highest spending alloca-tion over other sectors in the 2011 budget at RO927mn

(USD2.42bn), which is 34 per cent of the total current expenditure. More is on the anvil. In return, the government expects to bridge the gap between industry and institutions.

Scholarships announced

Recently Royal directives were announced to provide 1,500 exter-nal scholarships and 7,000 internal scholarships to students in the higher education institutions, leading to an increase in their admission rates in the higher education institutions. Students will now have the opportunity to avail of external as well as internal schol-arships to develop expertise that the Omani market requires.

The External Scholarships Department is an important entity at the Directorate General for Schol-arships, assigned to perform tasks related to supporting the General Diploma graduates and enrolling them in govern-mental external scholarships or other scholarships provided by leading universities and academic institutions of friendly countries. This will qualify them for receiving the bachelor’s degree in different academic specialties needed by the labour market in the sultanate.

Students at Sultan Qaboos UniversityPhoto courtesy Sathyadas Kidangoor


A Royal directive was issued to allo-cate 1000 external scholarships for those studying for the master’s and PhD degrees in the scientific special-ties like engineering and medical and agricultural sciences, followed by tourism, languages, law, and renew-able sources of energy. New coun-tries that have been added for schol-arships in the academic year 2012-13 are Malta, Cyprus, Poland and Austria. Similarly, new specialties like logis-tics, environment conservation, natu-ral disasters and railway engineering have been added.

Royal directives also led to an increase in the number of internal scholarships students in 27 private universities and colleges. It contributed an addi-tional 7,000 full scholarships at the bachelor’s level. The ministry also allocates scholarships for members of the social security families and the low-income families.

The Royal grant given by His Majesty Sultan Qaboos bin Said, allocated 500 full scholarships for women students scoring more than 80 per cent led to an increase in the number of internal scholarships.

All these Royal directives are testimonial to His Majesty’s interest in the education sector. “The growth of the quali-tative and quantitative achievements so far made in the education sector is a source of pride for every Omani. These achievements show the utmost care given by His Majesty in developing the education sector,” said Dr Rawi-yah bint Saud Al Busaidiyah, minister for higher educa-tion. He further said, “This special care and attention has

resulted in providing specialised knowledge, which is essential for any society. The youth had joined the process of building up the nation. This allowed them to lead a successful life desired by His Majesty since the dawn of the Blessed Renaissance.”

More than 17,000 students were enrolled in SQU in 2011Photo courtesy Sathyadas Kidangoor


is Majesty Sultan Qaboos bin Said’s commitment towards the progress of Omani women in the contemporary world is evident in his action

plan followed since his ascension to power. His major objective has been to empower women in becoming more active members of the society. The outcome was positive. Gradually shifting from their previous household confinement to the public sphere, women in Oman today go through professional training and pursue careers in various fields. In response to the Royal directives of His Majesty the Sultan in 2010, Oman Women’s Day (October 17) was celebrated for the first time in the sultanate’s history. Since then, October 17 is observed every year as the Omani women’s day. The gesture is much appreciated and backed by accomplishments.

During initial years of development of the sultanate, Omanis, who had been living abroad for education or professional reasons, returned to build up the new nation. They brought with them the liberal mindset of their host countries, including the idea of equal gender rela-tions. Sultan Qaboos, who belonged to the same league, introduced reforms funded largely by the oil revenue. In 1996, the Sultan issued “The Basic Law of the Sultanate of Oman” - a form of written constitution. This document grants the Omani people their basic civil liberties as well

as guarantees gender equality and protection under the law. “Education for all” was the foremost agenda in Sultan’s plan of action.

There was a marked increase in female attendance in schools from zero per cent in 1970 to 49 per cent in 2007. In the following years, about 600,000 students, both male and female, enrolled in over 1000 schools, bringing

Oman closer to the goal of “education for all.” The reforms introduced by the Sultan brought a remarkable growth in school attendance. The gender equality was the focus of the education reform, especially after “Vision 2020” that put the spotlight on the country’s economic future. Consequently, in 2003 to 2004, 48.4 per cent of students were female and out of 32,345 teachers of both genders, 56 per cent were female.

Big stridesThe Sultanate of Oman is one of the leading Gulf countries when it comes to gender equality which continues to make positive headway

e m p o w e r m e N t

HPhoto courtesy Sathyadas Kidangoor


Earlier a privy of the royal family and his appointed cabi-net, the Majlis al-Shura (Consultative Council), an elective body that reviews legislation, was opened for the common people. They could now enjoy more control in their govern-ment through a participatory process. In the September 2000 elections, 83 candidates were elected for seats in the Majlis al-Shura, including two women, though many Omanis feel this number should go up.

In 2002, universal suffrage was granted to all Omanis over the age of 21. The Sultan’s Royal Decree in 2008 gave women the equal right to own land as much as their male counterparts. Sultan Qaboos also recently signed the Decent Work Country Programme, a service dedicated to increase job opportunities for women.

Oman is one of the leading Gulf countries when it comes to gender equality and continues to make positive strides. In 1997, with the implementation of Omanisation Policy, which aimed at gradually bringing down the dependence on expatriate labour and replacing them with Omani workers, created an opportunity for women to participate in the work-

force, thereby making jobs more accessible to all Omanis. Women now make 30 per cent of the workforce in all walks of life and even serve in ministerial positions. The ministers of higher education, tourism, and social development in the cabinet are all women, as well as the US Ambassador and the head of national authority for industrial craftsmanship. One would find women in off-beat professions also. Shortly, Asya Saif, the first woman taxi driver in Oman, started driving a taxi on Muscat roads.

Many brought glory to Oman’s name through their accom-plishments in the international field. Dr Salma Al Kindy, a professor of chemistry at Sultan Qaboos University, became the first Omani national to be elected member of The Acad-emy of Sciences. Different from stereotypes, Sumaya Al Riyami is a renowned beautician and is the only Omani to have taken part in the Miss Universe pageant as a make-up artist. Mention must be made of the first all-female Omani Sailing team, Raya Al Habsi, Intisar Al Tobi an Tahira al Yahyai, sailing the waters of the Arabian seas. There are many others who have created their own position in the society through their own rigour and intellect.

However, the most common role for the Omani women is the role of housewife. The housewife, dubbed as home-maker in urban areas, essentially looks after the upkeep of the family and in the villages takes command of all agri-cultural production while her husband is away for months. These women work hard to support their families and tend to matters traditionally looked after by men.

Awareness building

Omani Women Campaign was proud over what the country had accomplished in terms of women empower-ment in the past 40 years of glorious Renaissance. It’s a non-profit campaign whose aim was to highlight achieve-

ments of the Omani women, especially those who had become role models in different regions, was launched in 2010. Through events, competitions, media, market-ing and internet, the campaign’s aim was to ensure that there was a direct interaction with society. Another nota-ble coup for the women in Oman was the ‘My Message’ campaign, whose aim was to create the longest message in the world at 2,000m long and 1.25m wide. This message carried notes of gratitude, praises and loyalty from the Omani women to His Majesty the Sultan.

the gender equality was the focus of the education reform, especially after ‘Vision 2020’ that put the spotlight on the country’s economic future

Progressive interpretation of Sharia lawOman’s progressive interpretation of Sharia law says that women have the right to participate in politics, society and workforce to the optimum, but at the same time they should not disregard their duties towards their families. In accordance with the Sharia, the country has made a concerted effort to enhance the rights of women without overlooking their responsibilities at home.


man has a rich past with historical relics strewn all across the country. In a bid to preserve the country’s cultural heritage for its

posterity as well as visitors, the Minis-try of Heritage and Culture (MOHC) has attached enormous importance to the innumerable relics found in archaeological and cultural sites and from sources other than these. Global best practices and cutting edge tech-nology are applied to the conser-vation of these vestiges of ancient period. To this end, Oman’s museum segment has been developed in the recent past through public and private investment. This expansive infrastruc-ture is supervised by MOHC’s Direc-torate of Archaeology and Museums. Four of the major museums come under MOHC: The Natural History Museum (1985), Oman’s Children Museum (1990), which are the two most popular public sector muse-ums, and the Omani French Museum (1992) and the Museum of Heritage and Culture.

Sohar Museum, which opened in 1993, is presently closed to public view for renovation. Museums like Muscat gate and popular Armed Forces Museum are run by other government agencies like Diwan of Royal Court and the Ministry of Defence, respectively.

For some years, Bait al Zubair Foundation Museum, a private sector institution, established in 1998 by Zubair

family, has been operating virtually as a national museum of the sultanate. Housing the finest private collection of Omani artefacts in the country, the museum’s operation is funded by the Zubair group. A pioneer in the adoption of curatorial methods, the museum is a venue for cultural events, workshops and conferences. Bait al Zubair’s role was so exemplary that in 2010, MOHC introduced new regulations to oversee the activities of a rapidly growing

segment of private museums. The regulation focuses on collection authenticity, display criteria and building norms and facilities. As a result of this, the MOHC has officially certified three museums -- Bait al Zubair, the Modern Art Museum and the Omani Costume Museum.

There are also a handful of private museums initiated by people who has a repertoire of interesting collectibles

Oman’s treasure troveHeritage, culture and arts are integral parts of nation’s identity that need to be preserved. Both government and private sectors are developing Oman’s museum segment to this end

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Bait al Baranda museum, Muscat


they would like to share with public. Bait Adam and Ghalya’s Museum of Modern Art are two shining exam-ples of this category and attract many visitors.

It should be mentioned here that the total footfall in all MOHC museums reached 49,473, recording a plunge from the previous year; the reason could be the closure of two museums for renovation.

The upcoming national museum

Scheduled for completion in June 2014, a public sector museum, which could be Oman’s largest, is coming up in the government quarter of Muscat. The new National Museum occupies a 27,500sqm plot and will house 13 permanent galleries, displaying more than 6000 Omani objects comprising artefacts, manuscripts and documents of historical relevance. While the names of UK based design consultants Jasper and Jacob and Carillion are approved for consultancy and construction, international cultural organisations are expected to be involved in exhibition, research, restoration and manage-ment. The authority has invited tenders for developing the national museum.

Before being converted into a bona fide national museum, it will start off as an exhibition, which will continue for a year. The displayed artefacts and documents will be changed quarterly in the exhibition so that people know about Oman’s historic importance in the region. Owing to its stra-tegic geographic location, the country developed relations with various parts of the world through different phases of history, which enabled the country to enjoy a signifi-cant position in the region. National Records and Archives

Authority (NRAA) has precious artefacts, maps, manuscripts and documents of historical relevance to Oman, which can give glimpses of the life and times in Oman in differ-ent periods. It is learnt that NRAA has recently acquired a 16th century letter from an Omani national, written by one Portuguese to an Omani named Mohammad, whose identity is not ascertained. But this letter is a very important piece of document which speaks of the relations of Oman with the Portuguese during that period.

Muscat Gate Museum


ittle did Abdul Latif al Balushi know that his boyhood interest in philat-ely and postcards would lead to other areas of inter-est out of which a grand

repertoire of antiques would develop. They are rare coins, maps, historical documents and artifacts worth seeing - all related to Oman, collected from different corners of the world, some-times auction houses. Balushi has converted his house, rather a treas-ure a trove, into a museum in 1999 and called it Bait Adam, named after his son, who is closely involved with him in the operations of the museum. The house is built in Arabic architec-tural style, befitting the collectibles on display inside.

Tour of the museum

Abdul Latif al Balushi had started off modestly with collection of stamps, and coins when he was a student four decades ago. But, in course of time, his passion for collecting relics from Oman’s past has transcended him to a different level. He became a collec-tor of maps, coins, banknotes, docu-ments, photos, manuscripts and rare priceless objects, which offer a unique insight into the life and times of Oman.

Latif gave up on a regular government job in 1991 to chase his dream which gradually became the purpose of his life. Since the last two decades he has been collecting a variety

of antiques. He leaves no stone unturned to collect a rare piece when he stumbles on a clue. It is his astuteness that helps him to track down rare objects in remote corners of the world. The artefacts are displayed in five galleries and Balushi does extensive studies on each object. Take for

example one of the precious pieces of antiquity here, the encased ivory chessboard, which was a gift of the then monarch Sayeed bin Sultan to the seventh president of United States, Andrew Jackson in 1833. The letter written by Sayeed Sultan for this occasion is placed just beside the

Exploring the pastAbdul Latif Al Balushi’s private collection is well worth a visit. As an ace chronicler, he tells enchanting stories about Oman from the past

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Bait Adam gallery,Madinat al Sultan Qaboos

Photos Sathyadas Kidangoor


original gift. It took 20 years of rigorous research work to finally discover the precious piece.

Balushi is the collector, curator, researcher, interior designer and inves-tor - all in one for Bait Adam. Such a huge collection calls for big invest-ment, too. Balushi has done it all singlehandedly and invested a fortune, without any support from public or private sector. But he has no regrets. There may be moments of self-doubts, but it is his zeal that keeps him going. With a positive mindset he says, “If Government of Oman wants any of my artifacts, I am ready to handover.”

Balushi’s mission is to preserve vestiges of Oman’s rich history for the posterity. Oman’s awareness for archiving lies at a nascent stage. Balushi says, “The value of historical collec-tion is not accepted in its true worth. Oman’s history is not only about khanjars, dishdashas, potteries or masars. It is much more than that. Many historical artifacts have been bought over or taken away from our land. We need to bring it all back. But again, awareness is required in our society about the importance of preserving history. So we have to create this awareness together as history is an integral part of every nation. ’’

Maryam, the little wonderWhat amazes visitors apart from the antique collection of Bait Adam Museum is the presence of a little girl who greets you with an impish smile as you enter the visitors’ gallery. For next few hours she will be your guide throughout the tour of the museum. She is Maryam, daughter of the respected collector. The 11-year old girl, donning gorgeous traditional Omani attire with wand in her hand, is a delight for visitors. Well conversed in the artifacts of the museum, she deliv-

ers in impeccable English. Her proud father informed she is equally fluent in Bulgarian and Arabic. Maryam’s mother hails from Bulgaria.

Cruise liners bring visitors to Bait Adam from all over the globe. Westerners from Europe, from the USA and Scandi-navian countries, for whom Omani heritage is very diverse, listens to Balushi’s scholarly commentary with rapt atten-tion. Then suddenly the quiet ambience becomes lively

Maryam as museum guide at Bait Adam

Maryam in front of Bait Maryam


with Maryam’s narration. The father and daughter duo seems to have good understanding between them and in sync with each other. Sometimes Maryam picks up the thread where her father has stopped and breezes through the names and tenure of presidents of America one after another without faltering. She leads visitors to rooms where artifacts are displayed and introduces them to the visitors with all little details. People are amused to see a young cura-tor at work. She does her job with élan, in all seriousness. Maryam has become a star attraction being the youngest

curator in Oman, and possibily in the world, apart from a museum guide. Al Jazeera, Bulgarian TV and New Zealand TV have featured this little wonder when she was seven. Today at 11, she is more evolved and composed, never awed by the tourists, even when the numbers multiply. She had ushered in 220 guests at a time. What is remarkable is her sense of responsibility and the right attitude to do a job meant for grownups.

This seems to be a very uncommon pastime for a girl of her

age, which triggers curiosity in our mind as to how it all had begun. Maryam has seen how her father, single handed, takes tourists around the museum and guide them through the galleries, often telling stories and anecdotes from the past. Very eagerly, she wanted to help her father. By 2009 end, she became the museum guide during the evening hours after school and during holidays. She had to slog a trifle to learn about the historical relics in the museum. But being a quick learner, aided by his father’s easy manner of explaining, Maryam found it fun to learn about the curios in the museum in the perspec-tive of Oman’s history.

In every other respect, Maryam is just another 11 year old who has managed to study and play, while doing the museum task. She watches DVDs inside her tree house and plays with her PSP, laptop and pets, a dog, a parrot, turtles, rabbits and iguanas, and recently a cat.

When she grows up, she says that she would be a teacher, but will also work for the museum.

Since Bait Adam is named after his son, Balushi has built another section Bait Maryam, a befitting gift to her daughter. He feels good that both his children are assist-ing him in running the museum and hopes that both will take this museum further after him and continue with the legacy of preserving Oman unique history. He can be contacted at 99356676.

Adam with tourists


Latif al Balushi makes commentary on Oman’s heritage

country that has 60 per cent of its population as twenty-plus, it is under-stood that sports will be an integral part of the nation’s life. In Oman,

dhow racing, horse racing, camel racing, bull fighting and falconry are still enjoyed as traditional sports. But the modern sports infrastructure in Oman was created more recently in 2004. Apart from setting up sports centres and clubs across the country, the Ministry of Sports Affairs (MoSA) has organised national youth leagues in popular disciplines like football and beach sports.

Sporting activities during the summer holidays got more interesting when in June 12, ‘My Youth 2012,’ was launched. Held at sports centres and clubs all over the country, the scheme saw hosting of competitions in popu-lar sports combined with cultural contests such as short story writ-ing, Quran memorisation, painting and arts. Developed in accordance with the Oman Sports Strategy and supported by the Council of Ministers, the ‘My Youth 2012’ initiative was the first of its kind in the sultanate. It also worked as an awareness building exercise for benefits of sports. MoSA has also sought to raise sports awareness in the rural areas in a similar way.

Virtually, MoSA’s role is pivotal in sporting activities, enhancing the sporting capability and performance of Omani youths. Providing adequate infrastructure is central

part of its objectives. The most significant sports projects are funded from sport development allocations made in the national five-year plans.

The seventh five-year plan (2006-2010) brought improve-ments in sports complexes, such as the development of a hockey stadium at the Sultan Qaboos Sports Complex, as well as the created and upgraded sports clubs. The

Eighth Plan makes provisions for yet more infrastruc-tural developments, including RO6mn for upgrading the Sultan Qaboos Sports complex and RO5mn for improving other complexes and clubs, as well as RO13.6mn for new complexes in Ibra and Musanah.

The Oman Olympic Committee (OOC) runs accord-ing to the statutes approved by the International Olym-

Active participationHis Majesty’s concern for Omani youths has enhanced the sports infrastructure of the country, which has emerged as a global destination for sporting events

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pic Committee in 2011. OOC is the National Olympic Committee (NOC) representing Oman. It is a national constituent of the worldwide Olym-pic movement, responsible for nomi-nating the Omani athletes to the Olympic Games. The OOC, funded by the Ministry of Finance through MoSA, co-operates with national sporting federations that collectively come up with development plans for coaches and athletes. OOC also disseminates research and techni-cal information regarding specific sports and also offers scholarships to athletes preparing for specific events, such as the Olympics.

A sports destination

The recognition for Oman as a sports destination in the global arena came through OOC’s stewardship of the Asian Beach Games of 2010. Reve-nues worth about USD260.6mn was brought by the event to the coffers of the sultanate. Hotel occupancy went up for a week of events that included beach handball, water polo, football, volleyball, Jet Ski racing and triathlon. These games were the biggest events organised by the OOC in Oman to date and attracted big names from the global sports arena. OOC also introduced a legacy of new infrastructure, such as the Millennium Hotel and Sports City as well as a new sailing academy enabling Oman to establish as a destination for competitive sailing.

Oman Sail was established in 2008 by the Ministry of

Tourism which has become popular in the international circuit for its professional racing teams. All its activities within Oman are directed towards creating 30,000 Omani sailors by 2015. It is possible with its growing number of sailing schools. Oman Sail has been able to garner public funds with private sector sponsorship both from local and global markets, thereby leading the way for other devel-oping sports in the sultanate.

Oman’s approach to sports is multi-dimensional and is keen on investing in the less tangible gains in the sports arena. MoSA has been working with Bank Muscat to develop the Green Sports Programme, an initiative designed to provide finance to sports clubs across Oman that wish to green their playing turfs. As the sultanate’s infrastructure contin-ues to develop, so too its ability to stage large-scale sport-ing events. Here again the country has a feather in its cap.

‘my Youth 2012’ initiative was the first of its kind in oman, which also worked as an awareness building exercise for benefits of sports

Al Filaij Race Track, BarkaPhoto courtesy Sathyadas Kidangoor


In November 2012, MoSA announced that the NBO will act as the principal sponsor for the Oman Golf Classic to be held at The Wave, Muscat in October 2013. The tourna-ment will be the first Challenge Tour event to be staged in the GCC, offering prize money of USD300, 000.

A holistic approach

In 2011, His Majesty the Sultan issued Royal directives to enhance the financial allocation for different sports author-

ities like associations, clubs and committees. Widening the scope of their activities and enhancing the capabilities of athletes to connect them to their communities was the ultimate goal. The directives were meant to support the activities of the OOC to enhance the presence of national teams at international competitions as well as support sports associations to enhance the level of local compe-titions. Increasing the level of the annual subsidy to the clubs was also proposed to encourage them to introduce sports, social and cultural activities, which meet the needs

of various categories of society. Supporting junior centres at various governorates and regions were also focused on so that they could act as the nucleus for the forma-tion of national teams. Helping to inculcate administrative and technical knowledge among sports officials is also stressed on. They in turn can develop human resources in the field of sports.

This year in July His Majesty Sultan Qaboos bin Said issued Royal directives to provide subsidies worth RO1mn to each

the eighth Plan makes provisions for infrastructural developments, including ro6mn for upgrading the Sultan Qaboos Sports complex and ro5mn for improving other complexes and clubs


of the sports clubs in the sultanate which come under the MOSA. The fund will be allocated for infrastruc-ture projects, equipment and other requirement for these clubs. The new directives are expected to accelerate the pace of progress for the sports sector in the sultanate. The Royal directives show His Majesty’s care and concern for the youth of the country and the role played by different sports clubs in governorates across the sultanate.

HE Sa’ad Bin Mohammed Al Mardhouf Al Sa’adi, Minister of Sports Affairs said that the Royal support for the clubs is a part of the continuous care and attention by His Majesty the Sultan to the progress and development of sports and youth sectors. Since the beginning of the Blessed Renaissance, His Majesty the Sultan has paid great attention to the develop-

ment of sports and youth sectors to enable and encourage all members of the community to develop their skills.

He added that the Royal care had resulted in positive outcome as many youths have made their mark on the national and international arena. He said the aid provided to the clubs will help complete the infrastructure of sports club to meet the current requirements. He added that

the upgradation of the infrastructure will draw greater numbers of young people to sports clubs.

The nation’s youth are at the receiving end of an endeav-our that raised the bar for Oman’s sporting infrastructure and sportsman’s competence, an approach that estab-lished Oman as a growing destination for international sporting events.

Al Filaij Race Track, BarkaPhoto courtesy Sathyadas Kidangoor


man has made a significant stride in the health sector, owing to the huge investment made by the govern-ment as well as the

private sector. From just two 12-bed hospitals and 10 clinics in 1970, today a public healthcare system has emerged that cater to Oman’s major cities and interiors.

During the early years of the Omani Renaissance, the sultanate brought in health workforce from other countries in large numbers, because its educa-tional infrastructure was not adequate at that time. This policy was adopted in order to enhance health services for the people of Oman.

A three-tiered system

Citizens now have access to public medical facilities based on a three-tiered system, operated by Ministry of Health (MOH). Primary health care is delivered through 150 health care centres and extended health centres, spread across the country. Services that are offered at this level are mother and child treat-ment, the prevention of common ailments, and aware-ness building exercise in major health issues. Each region has one regional hospital and a number of wilayat hospi-tals, through which secondary care, both ambulatory and in-patient, is delivered. These referral institutions provide services in general medicine and general surgery, cardiol-ogy, obstetrics, and others. MOH runs hospitals and health

centres at national, regional, sub-regional and local levels, which are integrated in a referral chain.

Tertiary care is delivered through national referral hospitals, Royal Hospital, Khoula Hospital, Ibn Sina Hospital and Al Nadha Hospital. All these referral hospitals operate specialist facilities, such as the Royal Hospital’s oncology unit, which has under-gone expansion in 2012. Royal Hospital enjoys the position

of an apex institution within the MOH system. Other national hospitals enjoy autonomy to an extent as they fall under the jurisdiction of the Directorate - General of Health Services of Muscat Governorate. The public health care system run by MoH comprises 50 hospitals and 176 health centres. The ther-apeutic services provided in MOH hospitals are supplemented by other government hospitals or clinics run by the Sultan Qaboos University, Ministry of Defence, Royal Oman Police

Lifeline of OmanThe government has taken steps to encourage private sector participation in the healthcare sector with incentives like granting of free land, technical support and soft loans

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and the Petroleum Development Oman. It includes five hospitals, 45 dispensaries and primary health care centres alto-gether. To sum up, now there are 5847 beds per 10,000 people.

The private sector participation today looks much more impressive from what it was half a decade back. There are seven private hospitals with a combined bed capacity of 279, the largest of them being the Muscat Private Hospital. It has out-patient and in-patient services across major specialities, including a diagnostic centre with CT scanning and MRI capability. The Badr Al Samaa group is the largest private health care group in Oman, operating eight hospitals and polyclinics in areas like Al Khuwair, Al Khoud, Barka, Nizwa, Sohar, Sur and Salalah. Among the recent arrivals are New Life Healthcare Centre, which focuses on genetic research, the Star-care Hospital of UK-based Starcare healthcare systems and the Sagar Polyclinic from India. It is in the Poly-clinic segment that the private sector has made the most impact. Accord-ing to MOH statistics, 814 private clin-ics now operate in Oman, compared to 471 in 1995.

New facilities

In the public segment, the construction on the new Sultan Qaboos Hospital project in Salalah began in 2012. Once completed, the five-story hospital will offer facilities for paedi-atric emergency services, general medicine and surgery,

orthopaedics, psychiatry, neoro-surgery and radiology. The proposed Muscat General Hospital to be established near the international airport currently lies at planning stage. It would be the secondary hospital to service the Muscat city. A number of new facilities are also planned by the MOH in Dhofar Governorate by 2015.

Set to launch in 2016, the International Medical City

(IMC) will be developed in a tranquil backdrop on the Arabian Sea coast, east Salalah, where patients may stay in a supportive environment with their families. The master plan was recently completed by PSOMAS, a lead-ing US-based consulting transportation and infrastruc-ture engineering firm. Allocated by the Ministry of Tour-ism and partnered by the Ministry of Health, the project sprawls across 870,000sqm waterfront plot.

while capacity-building and infrastructural development remain the two areas of growth in the national five-year plan, moh is pursuing a new level of efficiency in the existing system


IMC fills up a gap in the healthcare sector in the region through expert services for which patients from the GCC often have to fly to Europe and the US.

The development will house region’s first multi-specialty transplant centre, Oman’s first 250-bed tertiary care multi-specialty hospital, a high-tech diagnostic centre, a health-care resort, a wellness centre, a luxury hotel, medical and

nursing colleges and a purpose-built research and devel-opment centre complex. Developed by the Saudi based Apex Medical Group, the project will be implemented in three phases. In the first phase, development of infrastruc-ture will begin this year. There is scope for private invest-ment in specialised tertiary care and organ transplanta-tion as these areas are identified with an increasing gap between supply and demand.

MOH plays a pivotal role in the health-care system. From health system design, to development of new poli-cies and programmes, the ministry also serves as the major regulatory body for health services, including the supervision of drugs and phar-maceuticals as well as patient care. It sponsors patients to travel abroad in cases where the required facilities are not available in Oman. All requests or recommendations for overseas treat-ment are processed through a ‘Treat-ment Abroad Committee.’

MOH is responsible for the registra-tion of drug manufacturers and prod-ucts, control of narcotics and other controlled drugs, issuance of the necessary customs clearances for import and re-export of drugs. Very recently, MOH has issued a drugs policy by which it retains control over phar-maceutical prices in the retail market.

Responsible for private pharmacy licensing, it monitors the functioning of the private pharmacies.

The current five-year plan takes the developments made in primary health care infrastructure and services to its next level. It also focuses on the improvement of secondary and tertiary health care through increasing hospital autonomy. Developing human capital, boosting blood services and


attracting non-remunerated donors are its other areas of concern. The main objective is to reduce mortality rate due to disease. A special attention is drawn to the provision of sanitary drainage services.

While capacity building and infrastructural development remain the two areas of growth in the national five-year plan, MOH is pursuing a new level of efficiency in the exist-

ing system. Primary health care centres are now sufficiently equipped to alleviate the pressure on secondary and tertiary systems. The 28 new health centres that will be opened across the country as part of the current plan are expected to address this issue successfully.

Challenges galore

Development in infrastructure and treatments has almost

eradicated communicable diseases in the country, such as measles, malaria and typhoid. But with the progress in economy, with an altered Omani lifestyle, affluence has brought in sedentary lifestyle which has given rise to non-communicable diseases. Despite vast improvements in healthcare system, this is posing as a new challenge to public health. According to MOH, 15 per cent of the popu-lation suffers from diabetes, while 25 per cent is clinically

international medical City fills a gap in the region’s healthcare sector through expert services for which patients from the gCC often have to fly to europe and the US


obese. Obesity, diabetes, and heart disease are on the rise and in 2011 accounted for around 50 per cent of outpa-tient morbidity in the Sultanate, up from 42.5 per cent in 1966 as per MOH data. MOH has addressed the issue at the right time and attempts to reverse the trend. Screening and treatment programmes at hospitals and clinics are meant for diabetes. A National Centre for Diabetes and Endocrine Systems is coming up as proposed by the Eighth Plan.

Screening programmes at national level for other non-communicable diseases such as hypertension, obesity, etc have been there since 2007. MOH also runs educational campaigns to raise awareness.

Ministry of Health (MoH), for achieving total self-reliance in human resources, continues to pursue a number of strat-egies: Offering basic education in nursing and paramedic

professions, post-basic specialized training in nursing & midwifery, contin-uing professional development of staff, collaboration with SQU and Oman Medical Specialty Board, international colleges / boards and overseas educa-tion and training for different profes-sions and medical specialties.

Role of private sector

Experienced medical consultants working part time in the private sector has been able to sustain the growth of Oman’s private health care sector. In its country co-operation strategy for the World Health Organisation (WHO) recognizes the steps taken with regard to developing a private health care sector in Oman. Catering to a burgeoning population, the health-care system is becoming financially

heavy. The government has taken steps to encourage private sector participation in the healthcare sector with incentives like granting of free land, technical support, and soft loans. As a result, expansion of private healthcare facilities has taken big strides and come to the aid of MOH. The kind of investment the private sector is making now is a pointer to a future when the sector will play a larger role in health care services.

The private sector participation looks much more impressive today

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he aviation sector of the sultanate envisages heavy investments with six airport projects under-way, two involving the expansion and rebuilding

of existing airports– Muscat Interna-tional Airport and Salalah Airport and four new regional airports on green-field sites – Sohar, Duqm, Adam and Ras al Hadd. The Muscat International Airport is perhaps the largest civil engineering project ever undertaken in the history of the country.

As per Eighth five year develop-ment plan, the resource allocation on airport development amounts to RO2.38bn (USD6.01bn). According to the Ministry of National Economy, RO1.9bn (USD4.81bn) has been allo-cated current projects at Muscat Airport and Salalah Airport, with an additional RO 294mn (USD743.61mn) assigned to the latter for new projects. In addition, RO183.7mn (USD464.63mn) has been earmarked to develop the four regional airports. It is the Oman Ministry of Transport and Communications that authorised the current airport expansion plan for Muscat International, expected to be complete by 2014. A range of international companies including Turkey’s TAV, Bechtel, Thales, Munich Airport, Raytheon and others are involved in implementing the expansion project.

Phase 1: The project at this stage involves the capacity

increase of a new terminal building from 6.48m passen-gers in 2011 to about 12m passengers by 2014. The number of runways will also double up to accommodate big jets. Along with the extension of the existing airstrip, a new one will be added so that Muscat Airport in due course will have two 4000 by 60 metre runways. On the cargo side, the new airport will have a capacity for 2,60,000 MT annually, a significant rise from the 98,780 MT cargo handled in 2011.

Expansion of existing airportsTill the new airport is complete, OAMC is setting up temporary buildings as passenger and cargo arrivals are on the rise. Passenger arrivals in August 2012 were up 18 per cent year-on-year from 2011. Similarly, the same period saw cargo growing 14 per cent. The national carrier, Oman Air, added routes to Zurich and Tehran in 2011 and 2012, respectively. The three new airline opera-

Air of confidencePublic Authority for Civil Aviation has been set up to upgrade the civil aviation sector, which will contribute significantly to the growth in different economic spheres

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Photo courtesy Oman Air


tions that have been established in recent times are IndiGo, Ethiopian Airlines and United Airways of Bang-ladesh. It has been observed that in the next two decades, the main growth market in source countries will not hail from European markets but from Asian market, including the Indian sub-continent.

Salalah Airport is Oman’s second airport located in the Dhofar region. The airport serves both as a tourist gateway to the area as well as a multi-modal transport alternative for the expanding Salalah Port. Muscat Airport has one inbound season for tourists – the October–April period. European travellers find this stretch of time comfortable to be in Oman. As against this, Salalah Airport enjoys two inbound seasons during Khareef or the monsoon that stay from June to Septem-

ber. This is also outbound season for Muscat Airport when Omanis and expatriates leave for south to escape the scorching heat.

What brings travellers to Dhofar is its lush green natural beauty along with other attractions. Passenger arrivals have risen by 24 per cent in August 2012 from the corre-sponding period in 2011. Cargo was quite static, though it

has gone up from 1283 MT to 1366 MT between 2010 and 2011. The new terminal under construction will expand passenger capacity to 1m per year by 2014. In decades ahead, it will expand to 2m, 4m and 6m capacity. While a new runway of 4000 metres by 60 metres is being built to handle larger aircraft, the existing runway will be converted to a taxiway. Cargo terminal capacity will increase to 100,000 MT per annum.

Operating from the airstrip site of the old Beit Al Falaj, the Seeb International Airport was dubbed Muscat International Airport in 2008. Its current operator is the government–run Oman Airports Manage-ment Company (OAMC), which is gearing up for major capacity upgrades.

Upcoming terminal at Muscat International AirportPicture courtesy Oman Airports Management Authority


The principal consultant for the airport expansion is Copenhagen Airports, along with Denmark’s Larsen Archi-tects. Other companies on a global scale that are engaged in the project are Thales, Indra, Vanderlande and Munich Airport. The main project consultants are Aeroports de Paris for both Muscat and Salalah Airport.

Regional airports

Boosting regional airport capacity is a critical factor for

Oman’s aviation industry. With this growth objective, four regional airports are coming up in the sultanate. The only criterion for the selection of the locations is the economic development potential of the area. So, Sohar Airport is being developed in line with the Sohar Special Economic Zone and the rapid expansion of Sohar Port. The airport is set for a passenger capacity of 500,000 passengers per year and a new 4000 by 60 metre single runway, with cargo capacity of 50000 MT per annum. Strabag Oman has already won two packages of contracts.

Duqm Jaaluni Airport at the heart of the country is being upgraded along with that of the seaport at Duqm, which zeroes in on the oil industry and the new dry dock. While cargo and business travel being at the centre of attention, the airport is expected to drive tourism activities in the region. The terminal will have a capacity of 500,000 passengers per annum, a single runway as big as Sohar Airport, and cargo capacity of 50,000 MT per annum. ADPI is the project manager with contracts awarded to Thales, Indra, Parsons International and Desert Line and others. The timeline for completion is 2014.

The third new airport at Ras al Hadd is near to Sur in the south-east of Muscat, entirely dedicated to the growth and development of high-end tourism, ecotourism being a special allure. The new terminal will have the same passenger and runway capacity as the previous two.

Partly opened in 2010, Adam airport is the smallest of the four, located in the northern interior. It also has tourism as focus with the new terminal capable of handling 250,000 passengers per year. Strabag Oman has the civil works and

Aerial view of the Muscat International AirportPhoto courtesy Oman Airports Management Authority


runway construction contracts and Indra and Thales the air traffic manage-ment and navigational aid work.

For these regional airports, 2014 remains the year of completion, though extension remains a possibility.

Role of PACA

His Majesty Sultan Qaboos bin Said has recently issued a Royal Decree to develop a system for the Public Authority for Civil Aviation (PACA).

This has set the objectives of PACA, the most crucial of which is to upgrade the civil aviation sector and its related bodies, enhance the quality of services, improve civil aviation safety, contribute to the growth taking place in different economic sectors, strengthen the relationships with all countries as well as the regional and international organisations while keeping pace with the recent progress in civil aviation on the regional and international levels.

As per the Royal Decree, the chairman of PACA board of directors, appointed by the Council of Ministers, will issue the appropriate regulations and decisions that are needed

for the implementation of the new system. PACA will be headquartered in Muscat though it is possible to set up branches in the governorates if needed.

The new system has introduced 16 new fields of juris-diction which comprises the following: suggesting the general policies of the civil aviation and referring them to the Ministry of Transport and Communications to be reviewed and then to the Council of Ministers for approval; proposing laws and regulations relating to the civil avia-

tion; laying down and implementing safety programmes; signing international agreements and treaties in the area of air transport as well as executing their implementation. As per the Royal Decree, PACA will set up a database of aircraft registration, validity certificate as well as identify the country of origin and registration in co-ordination with the National Centre for Statistics and Information.

as per eighth five year development plan, the spending on airport project amounts to USd6.01bn. in addition, USd464.63mn has been allocated to develop the four regional airports

Oman Air Business Class LoungePhoto courtesy Oman Air


man Government’s grand plan for Duqm, a port town on the Arabian Sea, is set to transform the land-scape of the Al Wusta

region in central-eastern Oman. That it was once a small fishing hamlet will be part of history soon. Within a decade, Duqm, will turn into a vast port and business hub on an international scale.

Duqm’s geographically strategic loca-tion is what has made it a favourite of its stakeholders. Ships plying from Asia to Europe hug Oman’s coast en route to the Suez Canal. So situated midway between Muscat and Salalah on the Arabian Sea, Duqm becomes an attrac-tive destination for commercial shipping en route Asian, European and Middle Eastern ports. The idea is to use Duqm as an export hub to make Oman’s econ-omy less reliant on dwindling reserves of oil. Hence drawing upon Oman’s heritage as a maritime trading nation, Oman’s government has laid out a plan to develop new port facilities to build an alternate economy through trade and tourism in a sustainable way. Plans are being made to build roads and railways to link Duqm with Saudi Arabia and the United Arab Emirates. At a local level, the project is a catalyst for development of the Al Wusta region.

The beginning of transformation

In 2001, the government selected Duqm in the Al Wusta region as the location for a new shipyard and port

complex. Ten years later, Oman initiated a new phase in the formation of free zones by establishing Al-Duqm Special Economic Zone Authority (SEZAD), the apex body for Duqm development.

Duqm is envisioned as a world class investment vehicle by Oman’s government in partnership with the private sector. A total of 1,770km² have been apportioned for the

entire zone, in which phase one of the project, under the management of Port of Duqm Co, will include the devel-opment of the port, dry dock, a modern airport, new township, sewerage, railway line, desalination project, solid waste management, refinery, 60km² of industrial area and tourism zone. The urban township is expected to be complete by the end of 2014. Around 100,000 people are targeted to stay in Duqm.

Steps forwardTo develop a grand project and create an alternate economy was the vision of His Majesty Sultan Qaboos bin Said. As Duqm delivers, the nation hopes to achieve his expectations for the country

a G r a N d p l a N

O

Photo courtesy Special Economic Zone Authority, Duqm

Duqm Photos Special Economic Zone Authority, Duqm


duqm Blueprint• duqm residential township

• Commercial port, Ship repair Yard

and dry dock complex

• liquid jetty

• Jaaluni airport

• oil refinery

• oil Storage facility

• Petrochemical Complex

• free trade Zone

• Power & desalination plant

• luxury hotelDuqm Port and DryDock


The total investment of 32 development projects in Duqm economic zone, which are under different stages of evalu-ation, tendering, implementation and completion, is esti-mated at RO4.575 bn.

Commercial marine activity

Today Duqm is an industrial oil town with a notable port. The port has started its early operations. The first phase of the port will handle containers, general and bulk cargo. The inner basin is (-18 m) deep and has commercial quay (2.25km by 350m.) which can accommodate eight vessels. Built on an uninhabited Greenfield site, Duqm’s greatest advantage lies in its huge size. Petroleum Development Oman and other oil companies have now started using the port to move large equipment to their oil fields in and around Duqm. The port has been able to cut down on the distance and cost of transportation as the equipment can no longer has to travel via ports of adjacent countries at great cost to the companies.

Crude oil will be imported through liquid jetty, which will be made operational by 2017, eventually receiving vessels

of 150,000 deadweight tonnes. Refined products will be re-exported from a 230,000 bpd plant, making the jetty a key project for the port, attracting investors.

A dry dock, said to be the second biggest in the MENA region, has already been built at a cost of USD1.5 bn. It consists of two docks that run for 10m. Furthermore, there is a 2.8 km of quay available for additional ships to be repaired. Ten ships can be repaired at a time, includ-ing some of the largest tankers in the world such as ultra-large crude carriers at capacities up to 600,000 dead-weight tonnage. The dry dock, for the past two years, is working at full capacity. Building a floating dock is on the anvil. The dry dock is operated by Daewoo Shipbuilding and Marine Engineering Company of South Korea. To this end, the government of Oman established Oman Dry Dock Company (ODC) to manage and operate the facility. The shipyard will lead to creation of job opportunities for Omani citizens.

Industrial landscape

The Oman Oil Company, in cooperation with a UAE entity,

will commence the establishment of an oil refinery with a potential capacity of 230,000 barrels per day. Once estab-lished, the complex will provide upstream and down-stream opportunities for the Duqm industrial landscape.

Duqm’s industrial zone (365km²) can expand business on heavy industry, oil refining, petrochemical processing, minerals, small and medium scale manufacturing, logistics, warehousing, fisheries, food manufacturing, clean tech-nologies building materials and others. The Port of Duqm’s recent announcement that it is gearing up for mineral exports, augurs well for the commercialisation of the Wusta region’s massive limestone deposits. Duqm’s connections to ports and airports enhances its logistical, warehousing, distribution and re-export business opportunities. DHL has expressed an interest in setting up a bureau in Duqm.

Set to attract USD15bn investments and generate 20,000 jobs, SEZAD is committed to making the zone attractive and convenient for foreign investors to set up operations. They are guaranteed 100 per cent foreign ownership of busi-nesses, with necessary approvals and infrastructure being provided by the authority. For the development of fisheries,

Public beach at DuqmPhoto courtesy Peter Farrington


a fishing harbour at -6m depth, with all facilities required to accommodate small and medium size fishing boats, will also come up.

Tourism: Diversifying Duqm’s economy

Attention is being paid to preserve Duqm’s unspoiled beach with its migra-tory birds and its historic antiquities to make Duqm an attractive tourism desti-nation. A designated tourist area with 26 square kilometers and 18 kilometers of stretch of beach is created on the pristine Arabian Sea, apart from large public beach area offering a variety of water sports to accommodate recrea-tional interests of residents and visitors. Duqm is a weekend getaway destina-tion. Two hotel resorts are built to meet the needs of both business and recreational visitors, one being the Crown Plaza Hotel. Duqm Floating Hotel Veronica is a 4-star floating hotel located in the heart of Duqm Port which arranges local excursions and outdoor activities.

New Township

An area of 23km² has been designated for a new town for sustainable living at Duqm, which initially will accommo-date up to 67,000 people with further provisions to extend

it to 110,000 residents. Due consideration has been given to Omani culture. The proposed town centre will have high profile facilities and social amenities with a variety of indoor and outdoor sport facilities and a youth stadium.

Power is distributed throughout Duqm through seven substations. A reverse osmosis water desalination plant with an initial daily capacity of10,000 m3, has been completed. Oman Gas Company will supply Duqm with clean natural gas from gas fields in the Al Wusta region.

Connecting Oman to the worldThe SEZAD master plan has made provision for land, air, sea, and railway transportation network for creating a multi-modal hub for connecting Duqm with different parts of Oman and GCC countries and the world at large.

The Ministry of Transport and Communication has imple-mented a number of road projects of which the construction of two main roads has been completed. To link Duqm with Muscat and other regional and international destinations

Hotel Veronica, a floating hotel at Duqm


by air in 2005, MOTC has awarded the Parsons Corpora-tion a contract to study and design a new Duqm Jaaluni Airport for increasing tourism. Expected to be opera-tional by 2015, the airport will have a passenger terminal with a capacity of 500,000 travelers per year. The govern-ment of Oman is working on a fast track basis on the national railway project, with an estimated cost hover-ing around RO5-6bn for building 2,244kms of railway line. In 2014, the first contract for the project will be awarded and in 2018, a section of the railway project will become operational.

The new Oman Railway Company, operating under the MoTC, would carry out the implementation of the project. The government has planned to train 50 Omani engineers overseas for preparing them to work for the railway project. The total envisaged investment for long-term development plans amounts to more than RO100bn. Ahmed bin Mohammed Al Futaisi, Minister of Transport and Communications, said in a forum that the region now represents the fastest-growing market for the railway sector across the globe. It will make Oman not only a gateway for the entire region, but also a centre

of trade between east and west. Since the project is of national importance, private sector’s involvement in this development is no less significant and sought after by the government.

Future perfect

In the next decade, Duqm’s transfor-mation into a vast port and interna-tional business hub could challenge Dubai’s dominance as the region’s trading hub. The project will play a key role in balancing Oman’s regional development.

It is expected that the Duqm project will generate 20,000 new jobs and attract USD15 billion in investment within the next 10 years courtesy 100 per cent foreign owner-ship and tax exemptions. A multi-billion dollar industrial, tourism and urban venture, supported by a world-class port and dry dock complex with logistic and transport connections, the economic zone will be a driving force in Oman’s long-term development. The visions of His Majesty is sure to catapult Duqm on the world map in coming years.

Duqm Rock GardenPhoto courtesy Peter Farrington


We extend our warmestcongratulations to

His MajestySultan Qaboos bin Said.

May God protect him and the people of Oman

on the occasion of the43rd National Day

InitiativesNew

eeping in line with a series of national goals, achieved over a succes-sion of five year plans, His Majesty Sultan Qaboos Bin Said has always taken

Oman to its next stage of development. This time too, under the Eighth Plan, a high profile entity was dissolved and a new league of institutions were set up with a broad perspective of achieving sustainable development and exploring mechanisms that will implement poli-cies and devise strategies to achieve economic diversification.

A royal decree scrapped the high-profile Supreme Committee for Town Planning (SCTP) and most of its prerog-atives was assigned to the Ministry of Housing. The ministry will now have the jurisdiction to propose legislations related to urban planning, develop bylaws that regularise and guide urban planning activities in the country.

According to Royal Decree No. 30/2012, issued by His Majesty Sultan Qaboos Bin Said, The Supreme Coun-cil for Planning (SCP) and the National Centre for Statistics and Data are being created and entrusted with many of the functions and responsibilities of the erstwhile Ministry of National Economy.

The Ministry of National Economy was abolished last year owing to the changes initiated by the government as part of economic and political reforms urged by citizens of the country. The secretariat-general of the new autonomous

council is located in Muscat which will receive allocations and assets of the dissolved ministry. All the administrative departments affiliated to the ministry’s under-secretaries for economic affairs and development affairs and their and SCTP’s employees are transferred to the council’s secre-tariat-general.

According to the Royal Decree the council is being chaired by His Majesty Sultan Qaboos Bin Said, while the minister

of commerce and industry being the deputy chairman of the council. The council members include ministers of the following sectors: Interior, financial affairs, higher education, housing, transport and communications, and agriculture and fisheries. The council can also invite other experts to attend the meetings and participate in discussions.

The council has to meet, through an invitation from the chairman, at least four times a year. The council is a platform

New horizonA new league of institutions have been set up with a broad perspective of achieving sustainable development

K

Supreme Council for Planning

i N s t i t u t i o N

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where the Council of Ministers and other specialised panels can meet on different issues, as the council is enti-tled to form panels from its members or from outside its periphery. The state administrative units have to cooperate with the council. The Royal Decree also say that, the council meetings can be chaired by His Majesty the Sultan or by the deputy chairman but in such a case the decisions have to be approved by His Majesty the Sultan.

A Royal Decree was also issued for appointing the secretary-general of the financial and administrative secre-tariat of the council. The secretariat has a separate budget, as the fiscal year begins on January 1 and closes on December 31.

Oman 2040The Supreme Council for Planning has strategically decided to step up the initial groundwork for preparing the sultanate’s long-term economic vision between 2020 and 2040, which is known as Oman 2040. Various government departments and education institutions, the governorates and the private sector are the stakeholders in this endeav-our. The council met in June this year under the chair-manship of Dr Ali bin Masaud bin Ali Al Sunaidi, minister of commerce and industry to review the initial steps for preparations of Oman 2040. The SCP Secretariat-General has made an evaluation of the local, regional and inter-national economic and social developments to realise the vision 2040. The significance of identifying opportunities

that are there in the market and the optimum utilisation of the benefits of Oman’s economic sector, particularly the airports and ports were focused on during the discus-sion. Also, it was said that resources will be allocated for expansion of the self-employment projects and balanced progress of the sultanate’s various governorates.

The initiation of the preparations will concur with the preparation of the Ninth Five-Year development plan (2016-2020). The sultanate’s future vision priorities will be identi-

fied in conformity with the Royal Directives of His Majesty Sultan Qaboos bin Said.

On another occasion, Sultan bin Salim Al Habsi, secretary-general, Supreme Council for Planning, had said that SCP will set the structure of the sultanate’s economic collaborations with states and global organisations, while conducting stud-ies as directed by His Majesty. The focus of development strategies and policies are expected to bring social improve-ment, which will enhance living standards of Omani citizens.

the Supreme Council for Planning is entitled to exercise the following authorities:

1. Chart out a comprehensive national strategy for a sustainable development.

2. Implement real estate strategy for the Sultanate and approve urban planning policies.

3. Implement a national strategy for statistics and information.

4. Set standards for the priorities of development projects and methods of development planning.

5. Approve annual development budget.

6. Adoption of the draft of five-year development plans and their financial allocations.

7. Carry out a periodic evaluation of strategies, future visions, public policies and the five-year plans.

8. Set the basis of the Sultanate’s economic cooperation with organisations at states, regional and global level.

9. What is referred by His Majesty the Sultan is to be studied.

SCP has reviewed the comprehensive plan for Musandam


Spotlight MusandamThe Royal initiative visible in the major development projects that are about to start in the Musandam has a holistic approach and will augur well for the country as a whole

N e w p r o j e c t s

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look at Oman’s map shows that the Musan-dam Governorate pro-trudes into the Strait of Hormuz, and from there it makes a narrow entry

into the Persian Gulf. The area enjoys great strategic importance owing to its proximity to the Strait of Hormuz. About 20 per cent of the world’s petro-leum, and about 35 per cent of the petroleum traded by sea only, passes through the strait, making it an impor-tant strategic location for international trade. This makes Musandam a potential hub for traders in the region as well as global market. Its potential for tourism is no less significant either. With its pris-tine beauty along with hospitable local people, Musandam is a favourite spot for tourists from all over the globe.

The Musandam peninsula is an exclave of Oman, separated from the rest of the country by the United Arab Emir-ates. One can take flights or drive down to Musandam peninsula though it is a passenger ferry service that makes the place more accessible. National Ferries Company’s high-speed catamarans are operating in the Muscat-Khasab, Khasab-Lima, and Shinas-Khasab routes. While Duqm has started delivering, the government of Oman has also come up with new plans for the development of Musandam governorate. In 2011, His Majesty Sultan Qaboos bin Said has awarded Royal care to projects in wilayats of Khasab, Bukha, Daba and Madha. His Majesty has directed the government to implement major projects in the governorate of Musan-dam, for which RO500mn is allocated in the Eighth Five-Year

Plan (2011-2015). This Royal initiative is visible in the major projects that are about to start in various sectors, such as energy, tourism, roads, power, ports, health, and education and will generate employment opportunities for local people.

A ministerial committee led by HE Sayyid Hamoud bin Faisal al Busaidi, Minister of Interior and a number of ministers and undersecretaries visited the wilayats of Musandam in August this year and held meetings with sheikhs and dignitaries of the wilayats. The purpose was to evaluate the progress of

development projects being undertaken in the governorate. The Governor of Musandam, Sayyid Khalifa bin Al Murdas al Busaidy, reiterated that discussion with officials included the execution of a timeframe for each project. The committee urged on the importance of accelerating the pace of project work to meet the timeline. The ministerial committee visited the sites of proposed projects. The challenges and possible way out were discussed in detail.

Sultan bin Salim al-Habsi, Secretary General of the

Aabout 20 per cent of the world’s petroleum and about 35 per cent of the petroleum traded by sea only, passes through the hormuz Strait, making musandam an important strategic location for international trade

Kumzar, a traditional village in Musandam


Supreme Council for Planning (SCP) said that the royal directives of His Majesty Sultan Qaboos Bin Said to set up service and development projects in Musandam Gover-norate come as add-ons to the approved projects to Musandam Governorate during the Eighth Five-Year Plan. SCP earmarked additional budgets for implementing these developmental and service projects in the Musan-dam Governorate.

The organization will carry out a feasibility study to iden-tify areas of economic activities in the governorate. The

study takes into consideration the location along with the tourism and commercial prospects of the governo-rate. The environmental, demographic and social factors of the governorate will also be of prime concern to set the development priorities, keeping in line with the Vision 2020.

Expansion of Port Khasab

The Khasab Port in the Musandam area had been brought under focus as it has the potential for promoting tourism

and economic activities. Directives for expanding Khasab Port during the next five year plan (2016-2020) came from His Majesty Sultan Qaboos bin Said. The

directives also include the construction of docks for commer-cial and tourism purposes, which include living quarters and other amenities for ship owners and commercial boats. Facilities for organising training courses for complex opera-tors are also being developed.

Ministry of Transport and Communications signed a memo-randum of understanding with Port Services Corporation for managing and operating the port of Khasab for its develop-ment and expansion to accommodate economic, commer-cial and tourist activities in Musandam Governorate.

Fjords in Musandam

Quaint KhasabHailed as the “Norway of Arabia,” because of its stunning fjords common in Scandinavian coun-tries, Khasab is the local capital of the Musandam peninsula. Located 500 kilometers from Muscat, this quaint peaceful fishing village, which was once a Portuguese colony creates the perfect ambi-ence for a weekend getaway for people living in the Emirates.

114 new initiatiVeS

The port is still managed by the government though names of special-ized companies are considered for all practical purposes. The objective could be commercial or tourism use, though the port still needs to go through some overhaul to make it fit for this drive.

Once the port entrance is dredged deeper tours will be operated by the National Ferries Company, between different wilayats and nearby ports. The expansion of Khasab Port and airport is expected to draw tourism flow to the governorate.

Consultancy studies for develop-ing the Khasab Port would begin in the first quarter of 2014. Atkins is commissioned to conduct a detailed market definition study and prepare a master plan for the diversification and expansion of the existing port facility at Khasab, Oman.

The ministry of agriculture and fisheries has an integrated plan to develop fishing harbours like Khasab and Diba to cater to the needs of Governorate of Musandam. The minis-try has initiated steps for Kamzar Harbour in this direction. Furthermore, plans are afoot to widen the basin of the harbour and to extend wave breaker while providing services for fishermen.

Road networkCompanies, some of whom are construction majors on a global scale, are vying for participation in the construc-tion of one of the most expensive road projects in Oman called the Diba-Lima-Khasab road project. That a total of 72 companies had collected tender documents is indica-tive of the strong international interest in the project. This is a new arterial carriageway that features numerous wide roads and wadi bridges and some of the longest tunnels in Oman. The project bodes well for the socio-economic development of Musandam and it paves the way for a

new era in the governorate. Thirty-one local and interna-tional firms have showed interest in the project bidding.

The construction of the 65-km section of the carriageway is overseen by the Transport and Communications Minis-try. The USD1bn project is one of the most complex road alignments to be launched in Oman, courtesy the undu-lating terrain of Oman. State-of-the-art technologies are deployed to meet the challenges.

The selected bidder will develop a 65-km stretch from

Canoeing through the fjords


the Al Khalidya to Diba and seven tunnels of 7.320 kilo-metres in total coverage. According to officials, the project is exclusive in many ways. The largest tunnel will meas-ure 2.2-kilometre-long, which will be the longest in the sultanate, a civil engineering wonder of its time. About 18 wadi and valley bridges add up to 3.790 kilometres and the longest road stretches up to 420 metres. Two major inter-change bridges will also come up at crucial intersections.

The most important feature of the project is the Design, Build and Operate or DBO strategy adopted by authorities

to procure the project. Besides designing and construct-ing the project, the selected contractor now will also operate and maintain all assets attached to the undertak-ing for a span of 20 years. This is the major but maiden civil construction project in Oman which is integrated with a DBO contract or to be precise, a new ground-breaking procurement strategy and happening for the first time in the Gulf region. The DBO feature opens the door to an era of build-operate-transfer or BOT projects that may reinforce major road development schemes in the future.

The DBO procurement strategy addresses a number of issues. The government has smartly added the Operation and Maintenance compo-nent to the procurement strategy with a hope to bring qualified contrac-tors with relevant expertise into road tunnel operation. The successful bidder will provide experienced work-force and know-how in the operation and maintenance of the road network. Also the DBO approach will ensure flexibility in design during construc-tion phase, necessary for the difficult terrain. COWI is playing an advisory role on the project supervision and preliminary design.

The Diba-Lima-Khasab road project is an all-weather carriageway, with street-lighting along its entire length and has good prospect for footloose travellers visiting tourist spots in and around the governorate.

Gas project in Bukha

The Musandam Gas Plant (MGP) in Bukha is a very signifi-cant project for Oman and the Musandam Governorate. Developed by Oman Oil Company Exploration and Produc-tion (OOCEP) to process well fluids from the existing West Bukha platform, the MGP project is very significant for Oman in general and the Musandam Governorate in particular. The project will lay the foundation for additional oil and gas developments in Oman. With MGP expected to begin commercial operations in the second quarter of 2014, the

Road projects bode well for the over-all growth of Musandam

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design, procurement, and site prepa-ration activities have commenced, according to the OOCEP website. The company is the upstream subsidi-ary of the government-owned energy investment firm Oman Oil Company, has awarded a contract valued at USD480mn to Hyundai Engineering Co Ltd (HEC) for the implementation of a gas processing plant in the Musandam Governorate.

As part of the engineering, procure-ment and construction contract, HEC will build a gas separation and oil treatment plant that will process hydrocarbons from Oman’s West Bukha field offshore Musandam peninsula. A 36-month timeframe has been specified for the completion of the project. The Musandam Gas Plant is part of a major integrated develop-ment comprising West Bukha field development, interlinking offshore pipelines crude storage, export facili-ties and gas fired power plant.

Power network

Wilayats of Bakha, Hasib and Daba in the Musandam gover-norate will be connected through a 132kV transmission network project which will meet the needs of these wilay-ats. The total project cost hovers around RO37mn. The project’s substantial cost is attributable to the extremely rugged terrain through which the transmission line will be laid during the project’s two-year timeframe.

The network will be set up following an agreement between the Rural Areas Electricity Co (Raeco) and Saudi Arabia-based National Contracting Co (NCC). Raeco will source engineering material from NCC, which has been awarded a contract worth USD98m to develop the first major power transmission line in the Musandam Governorate. The project is a key part of a tranche of major infrastructure schemes being implemented in Musandam following the directives of His Majesty Sultan Qaboos bin Said.

The 132kV overhead transmission line will start at Tibat in

Wilayat Bukha, where the power plant will be located. It will travel around 18km to Khasab and extend a further 80km all the way to Dibba. Also, as part of the project, 132kV grid stations will be built at Tibat, Khasab and Dibba.The company will use international practices to employ gas for the project and would give up the use of diesel. Electricity from the power plant, with its expected capacity of 120MW, will be supplied to towns and villages in Dibba and Khasab, replacing diesel-based generation for the first time in the governorate. Natural gas as fuel for the power plant at Tibat will be sourced from a new integrated oil and gas processing

Tranquil waters of Khasab


plant currently under development by OOCEP. Besides this, the Musandam Power Project is also set to come up near Tibat in Bukha.

Hub for tourism

Musandam is one of the most impressive natural beauty locations, which has a tremendous potential for tourism. A lot is also being done to perk up this sector, which is the lifeline of the governorate. Attractions for visiting Musan-dam are many. The combination of sea and mountains is an exclusive feature of this place. The stunning beauty of shimmering blue-green water inlets cutting into the fjords

is simply breathtaking. Added to this, the hospitality of the Omanis around is another factor which has an enormous appeal to the visitors. The peak tourism season is between October and April. That is when the governorate comes alive with a lot of visitors.

The place is ideal for adventure sports. The sparkling water offers great diving and snorkelling opportunities. Camp-ing, hiking and rock-climbing are the other popular options. Amidst the rock formations, the shimmering colours of the water, the still mountains, the dolphins playing in the water, and with the little fishing villages dotting the edge of the cliffs, visitors enjoy memorable excursions in boats and dhows.

The Khasab Castle

Musandam is also rich in archaeologi-cal sites. One of them is the Khasab Castle, which is a favourite with the visitors. It was built by the Portuguese in the beginning of the 17th century. Now a regional museum, the castle once upon a time held prisoners; in recent centuries housed the Wali and his family. The present Khasab Castle was built on the ruins of the old castle. Remnants of the old castle are still visible through the circular tower that stands in the middle of the present castle, which has four strongholds. Renovation work has been going on in the living quarters in the castle which houses an exhibition of tradi-tional clothes and ornaments. The

castle’s gigantic middle tower has also gone through the process and turned into a museum that displays handi-crafts and the archaeological collection from Musandam governorate.

Apart from this, the Bayt Al Qefel (the lock house) model on the castle’s courtyard, the dhow that this governorate is renowned for, a model of the Al-Arish suspended house, a well that demonstrates the method of drawing water, and a traditional oven and hand mill -- all these exhibits give visi-tors a glimpse of traditional Musandam.

At Tawi village, prehistoric rock carvings, representing

musandam is a potential hub for traders in the region as well as global market. its scope for tourism is no less significant either. also, the holistic approach towards its development projects will generate employment opportunities

Khasab Castle, built by the Portuguese, attracts tourists

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animals and warriors, can be viewed by visitors. It dates back 3,400 years and bears testimony to the ancient settlement in the region. The town Kumzar, accessible only by boat, is another unique spot. The inhabitants still practice a culture dating back over 500 years.

Musandam also houses the unique village-style resort, Six Senses Zighy Bay, located in the Zighy village. Jabal Hareem Fossils, Lima Village, Lion’s Jaws Gate, Khawr Najd, Qannah, Wadi Ar Rawdha, Khawr Sham, and the

Strait of Hormuz are the other attractions worth seeing. It is a land worth exploring.

Looking forward

Khasab, Diba, Bukha, and Madha, the four wilayats of Musan-dam governorate will certainly be benefited by the develop-ment projects. Apart from the projects mentioned above, also on the anvil are housing projects and related facilities,

a youth complex in Khasab and Diba Sports Club, a ground water recharge dam in Ghamdha in Bukha, a vocational training centre, a cultural centre, construction of a referral hospital in Khasab and the modernisation of Khasab airport. The holistic approach towards the development projects of Musandam will bode well for Oman as they will generate employment opportunities, and ensure a decent standard of living for citizens as part of a broader development strategy extending to all parts of the country.

Telegraph IslandThis island has interesting history. At the time when it took four to six weeks for a letter to move from London to Karachi, the gateway to Britain’s Indian Empire, this small isle, then called Jaz Al Maqlab, in Khawr Sham, acted as a relay station for the first telegraphic messages from Britain to India. In 1865, the island lost its original name and was rechristened Telegraph Island. It takes around 45 minutes by boat from Khasab town to visit this enchanting place.

Six Senses Zighy Bay, a village-style resort, in Musandam


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The Salalah Marriott Resort is set on the idyllic shores of the Arabian Sea on the white sandy beaches of Mirbat Cove and at the foot of Jebel Samhan.The Resort in Mirbat offers luxurious rooms and suites with sea and mountain views as well as chalets at the beach.

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