Embed Size (px)
Citation preview
Points % P/Ex P/Bx Div. %
Banks and Investment 8,794.50 -21.16 -0.24% -6.19% 13.14 1.68 2.85%
Industry 7,218.30 -145.15 -1.97% -3.07% 9.87 1.97 4.90%
Service and Insurance 2,638.96 162.22 6.55% -2.33% 9.77 2.24 6.00%
MSM 30 6,553.33 80.57 1.24% 2.90% \ 1.85 4.04%
Total market 11.04 1.71 4.03%
% Chg % Chg
Volume # of shares 32.15% Market Cap. In Bn OMR 7.10 $18.442 OMR 6.90 $17.584 2.90%
Value Traded OMR 23.92% Advance - Decline 37 34 51 16
No. of Transactions 37.17% Volume # of Bonds
Company Name Close Change% Y-T-D% PE x PB x DIV. % Company Name Close Change% Y-T-D% PE x PB x DIV. %
Main Indicators*52-Week
Current Month Previous Month
348,854 432,036
High Low
8,414.86
42,508 30,989
(A member of the Arab Bank Group)
INVESTMENT MANAGEMENT GROUP - RESEARCH DEPARTMENT
Monthly Report October 2010
Previous Month
CloseIndex Name
Market Activities
254,925,434
2,307.14
5,905.18
10,284.45
7,909.95
2,777.54
6,959.03
Current Month
105,577,243
192,910,571
85,195,805
6,611.89
Top Gainers % - Adjusted for cash, stock Div., & split
ChangeY-T-D %
Top Losers % - Adjusted for cash, stock Div., & split
6,440
6,460
6,480
6,500
6,520
6,540
6,560
6,580
6,600
6,620
5,000
10,000
15,000
20,000
25,000
30,000
3-
10-1
0
4-
10-1
0
5-
10-1
0
6-
10-1
0
7-
10-1
0
10-
10-1
0
11-
10-1
0
12-
10-1
0
13-
10-1
0
14-
10-1
0
17-
10-1
0
18-
10-1
0
19-
10-1
0
20-
10-1
0
21-
10-1
0
24-
10-1
0
25-
10-1
0
26-
10-1
0
27-
10-1
0
28-
10-1
0
31-
10-1
0
Gen
era
l In
dex
# o
f Tra
ded
Share
s '0
00
# of Traded Shares General Index
5,000
5,200
5,400
5,600
5,800
6,000
6,200
6,400
6,600
6,800
7,000
1-N
ov-0
9
15-N
ov-0
9
29-N
ov-0
9
13-D
ec-0
9
27-D
ec-0
9
10-J
an-1
0
24-J
an-1
0
7-F
eb-1
0
21-F
eb-1
0
7-M
ar-1
0
21-M
ar-1
0
4-A
pr-
10
18-A
pr-
10
2-M
ay-1
0
16-M
ay-1
0
30-M
ay-1
0
13-J
un-1
0
27-J
un-1
0
11-J
ul-
10
25-J
ul-
10
8-A
ug-1
0
22-A
ug-1
0
5-S
ep-1
0
19-S
e p-1
0
3-O
ct-1
0
17-O
ct-1
0
31-O
ct-1
0
General Index 50 per. Mov. Avg. (General Index)
Company Name Close Change% Y T D% PE x PB x DIV. % Company Name Close Change% Y T D% PE x PB x DIV. %
DHOFAR POULTRY 1.262 60.76% 362.27% 12.70 1.95 0.00% TAAGEER FINANCE 0.18 -13.88% -18.55% 8.17 0.88 4.44%
AL FAJAR AL ALAMIA 0.752 58.99% 9.99% 3.16 0.91 6.28% NATIONAL MINERAL WATER 0.084 -13.40% -49.70% NA 0.57 0.00%
DHOFAR POWER PREF SHARES 2 40.85% OMAN CEMENT 0.628 -8.05% -16.04% 6.83 1.43 5.89%
ASAFFA FOODS 0.434 36.91% 329.70% 1.33 0.32 23.04% GLOBAL FINANCIAL INVESTMENT 0.075 -6.25% -33.04% 48.18 0.60 0.00%
PORT SER. CORPORATION 0.515 13.94% -15.57% 8.39 1.46 9.71% OMAN FLOUR MILLS 0.633 -5.94% -0.94% 11.86 2.12 1.90%
Close Change % Close Change %
NATIONAL BANK OF OMAN 0.359 5.59% BANK MUSCAT 0.875 2.82%
GALFAR ENGINEERING AND CON. 0.577 8.26% GALFAR ENGINEERING AND CON. 0.577 8.26%
OMAN INVESTMENT AND FINANCE 0.243 7.52% NATIONAL BANK OF OMAN 0.359 5.59%
BANK MUSCAT 0.875 2.82% RENAISSANCE SERVICES 0.899 7.54%
AL JAZEERA SERVICES 0.208 3.48% ASAFFA FOODS 0.434 36.91%
This report has been prepared and issued by the IMG- Oman Arab Bank SAOC on the basis of publicly available information, internal data, and other sources considered reliable. While the utmost care has been taken to ensure that the facts stated are accurate and the opinions given are reasonable, neither Oman Arab Bank SAOC nor any of its employees shall be in any way responsible for the contents. This report is not to be construed as an offer to buy or sell the securities referred to in the report.
* Based on annualized figures of latest published financials & current market prices. (Dividend yield is based on the latest announcement or if not available on our internal estimate)
PEx: last closing price / Earnings per share (times). PBx: Last closing price / Book value of the share (times). Div. Yield%: Cash Div. / Last Close × 100 NA: Not Available or not applicable (Negative PE)
13,998,929
12,185,318
10,882,771
OMR
27,814,236
#
19,488,466
15,594,877
4,746,595
14,142,437
Turnover OMR.
8,986,736
9,688,457
Top Volume
# of Traded Shares
6,440
6,460
6,480
6,500
6,520
6,540
6,560
6,580
6,600
6,620
5,000
10,000
15,000
20,000
25,000
30,000
3-
10-1
0
4-
10-1
0
5-
10-1
0
6-
10-1
0
7-
10-1
0
10-
10-1
0
11-
10-1
0
12-
10-1
0
13-
10-1
0
14-
10-1
0
17-
10-1
0
18-
10-1
0
19-
10-1
0
20-
10-1
0
21-
10-1
0
24-
10-1
0
25-
10-1
0
26-
10-1
0
27-
10-1
0
28-
10-1
0
31-
10-1
0
Gen
era
l In
dex
# o
f Tra
ded
Share
s '0
00
# of Traded Shares General Index
5,000
5,200
5,400
5,600
5,800
6,000
6,200
6,400
6,600
6,800
7,000
1-N
ov-0
9
15-N
ov-0
9
29-N
ov-0
9
13-D
ec-0
9
27-D
ec-0
9
10-J
an-1
0
24-J
an-1
0
7-F
eb-1
0
21-F
eb-1
0
7-M
ar-1
0
21-M
ar-1
0
4-A
pr-
10
18-A
pr-
10
2-M
ay-1
0
16-M
ay-1
0
30-M
ay-1
0
13-J
un-1
0
27-J
un-1
0
11-J
ul-
10
25-J
ul-
10
8-A
ug-1
0
22-A
ug-1
0
5-S
ep-1
0
19-S
e p-1
0
3-O
ct-1
0
17-O
ct-1
0
31-O
ct-1
0
General Index 50 per. Mov. Avg. (General Index)
PO Box 2010 Ruwi 112, Muscat - Sultanate of OmanTel: +968 24 827 399 Fax: +968 24 827 367
Web Site: http://www.oabinvest.com Email: [email protected]
News & Financial Announcements
Omantel CEO Sees 2010 Growth In Subscriber Base, Broadband………………6 Oct 2010 Oman Telecommunications Co., or Omantel, expects the number of its subscribers to grow between 12‐15% in 2010, a top executive of the company said Tuesday.
"We are still witnessing growth in the number of subscribers," Amer Al Rawas, chief executive officer of Omantel, told reporters on the sidelines of a telecoms conference in Dubai. "We have 2.2 million subscribers. This is looking to grow although the market is 148% penetrated," he added.
Omantel, which is mainly owned by the Omani government, provides fixed‐line, mobile, internet, and other related services.
He said the company was also "witnessing a phenomenal growth in mobile broadband" and believes "there's a growth potential in our fixed broadband and mobile broadband" business.
The telecoms company lost its monopoly when Omani Qatari Telecommunications Co., also known as Nawras, launched its service March in 2005 after being awarded the Sultanate's second fixed line license. Nawras is currently selling a 40% stake in an initial public offering, or IPO, slated to run until Oct.14.
Al Rawas admitted that the "competition has been playing on" Omantel's earnings for the past six years. "The fact that our competitor is on IPO can only be positive for us. This means that their performance will be more visible for us and the rest of the market."
In 2008 Omantel had said it would sell a 25% stake through a bid that was later canceled by the ministry of finance due to the
economic downturn. Source: Zawya Dow Jones
Siemens receives major order for two turnkey combined cycle power plants in Oman ………………6 Oct 2010 Siemens Energy has been contracted to build two turnkey combined cycle power plants in Oman. The purchaser is a consortium led by the French utility GDF SUEZ. Siemens will build the two 750‐megawatt plants Barka III and Sohar II together with its South Korean partner GS E&C. Siemens as consortium leader, will supply two gas turbines, one steam turbine, three generators as well as electrical and control equipment for each of the plants. The project also includes a long‐term service agreement for the gas
turbines. The overall investment volume is approximately USD1.7 billion. The order value for Siemens will not be disclosed. Source: Company Announcement
Finance Ministry Okays Three Agreements………………6 Oct 2010 The Finance Ministry today okayed three agreements worth (RO. 6.058.000) as part of the government's plans and programmes to implement a number of projects in various developmental projects.
The agreements included the construction of the AGCC Consultative Authority's HQS' worth RO. 3.993.000 with implementation duration of (571) days, construction of Al Tufail bin Amr Basic School which includes (24) classrooms in the Wilayat of Al Musan'aa worth (RO. 2.280.000) with implementation duration of (379) days and the construction of Alaya Fida Basic School for males which
includes (10) classrooms in the Wilayat of Dhank worth (RO. 785,000) with implementation duration of (379) days. Source: Oman News Agency
Bids for Sur independent power project due in March 2011………………6 Oct 2010 Oman Power and Water Company (OPWP) has set a deadline of 5 March 2011 for bids to build a 1,500MW independent power project (IPP) at Sur. The deadline for purchasing the request for proposals (RFP) document has now passed. The 29 companies that bought the RFP are:Marubeni Corporation (Japan)
• Mitsui & Co (Japan) • ACWA Power International (Saudi Arabia) • Siemens (Germany) • Saudi Oger (Saudi Arabia) • Sojitz Corporation (Japan) • AES Oasis (US) • Sembcorp (Singapore) • Wartsila (Finland)
News & Financial Announcements
• Consolidated Contractors Company (Athens‐based) • Suez Tractebel (Belgium) • Mubadala (UAE) • Jindal Power (India) • Taqa Arabia (Egypt) • Tata (India) • Lanco (India) • IL & FS Energy Development Company (India) • Abu Dhabi National Energy Company (UAE) • International Power (UK) • Al Hassan Engineering Company (Oman) • Tokyo Electric Power Company (Japan) • Sinohydro Corporation (China) • Itochu Corporation (Japan) • International Free Company (Iraq) • Procomon & Asociados (Panama) • Enka (Turkey) • Posco (South Korea) • General Electric (US) • Ozaltin Construction (Turkey)
The tender will be carried out with an integrated request for qualification (RFQ) process. Developers have until 18 October to respond to the RFQ. The companies that are prequalified to bid for the project are expected to be notified by mid‐November. Bids to build the project are to be fully‐financed and must be submitted by 5 March 2011. The winning bidder will bring 400MW early power capacity online by summer 2013 to help the country meet its peak demand needs during the hot months. Full commissioning is scheduled for completion by the following summer. OPWP had originally intended to build an independent water and power project (IWPP) at Al‐Ghubrah to take advantage of existing infrastructure in the area and allow the older plant at the site to be retired. However, due to environmental impact issues associated with the Al‐Ghubrah site and its proximity to residential areas in Muscat, OPWP decided to cancel the Al‐Ghubrah IWPP in favour of a facility at Sur. Sur is located south of the capital on the coastline and offers a large area, which is ready for construction and access to an existing pipeline that feeds the Oman LNG plant operating on the outskirts of the site. Further, Oman Electricity Transmission Company (OETC) is already implementing projects to reinforce the transmission system around Sur, which will allow power to be exported to the Main Interconnected System. The advisory team that was selected to work on the shelved Al‐Ghubrah plant was transferred to the Sur IPP in July. Ernst & Young, DLA Piper and British Power International, all from the UK, are now consultants on the Sur project. Source: MEED
Board awards 139.3m‐rial tenders………………7 Oct 2010 The Tender Board held its meeting under the chairmanship of HE Dr Ali Bin Mohammed Bin Moosa, Deputy Chairman of the Central Bank of Oman (CBO) Board of Governors and Chairman of the Tender Board, on Wednesday. The board awarded 139,336,621 rials worth tenders for the following projects: > Construction of water supply lines, tanks and pumping station and linking them to the existing water networks in the Wilayats of Salalah, Taqah and Mirbat in Dhofar governorate worth 47,230,177 rials. > Construction of sanitary water treatment plant, 50,000 cubic metre capacity per day in Darsait in Muscat governorate worth 37,018,412 rials. > Construction of a new building for the Civil Aviation in Muscat governorate as part of Muscat international and Salalah airports development project worth 25,728,000 rials. > Leading a vessel for Oman Refineries and Petrochemicals Company to transport oil products worth 5,067,563 rials. > The opening and closing ceremonies for the second Asian Beach Games 2010 in Muscat worth 3,060,000 rials. > Supply of accessories for the medical laboratories and blood transfusion services for the Health Ministry worth 2,865,065 rials. > Correcting and updating the data for the local ring of Oman Telecommunications Company (1,312,000 rials). > Operation and maintenance of power and water desalination plant in the Wilayat of Masirah in Al Sharqiyah region worth 1,189,600 rials. > Temporary installations for the sites of the second Muscat Asian Beach Games 2010 in Barr Al Jissah, northern Al Hail, Al Qurum Natural Park and Al Rahbah Farm in Barka worth 1,800,000 rials. > Construction of a roundabout and pedestrian path in the Wilayat of Nakhal in Al Batinah region worth 800,000 rials. > Supply of medicines for the Health Ministry worth 808,500 rials. > Provision of the consultancy services to develop the infrastructure for Ghala Industrial Estate in Muscat governorate worth 703,159 rials. > Construction of Ja’afar Bin Abi Talib School for Basic Education for Boys (8 classrooms) in Al Rawdha in the Wilayat of Saham in Al
News & Financial Announcements
Batinah region worth 663,329 rials. > Partial replacement for Mazoon School for Basic Education in Al Mudhairib in the Wilayat of Al Qabil in Al Sharqiyah region worth 614,437 rials. > Provision of the consultancy engineering services (design and supervision) for the construction of new Sinaw hospital in Al Sharqiyah region worth 530,000 rials. > Provision of light meals for students taking part in the students’ festival during the 40th National Day celebration at the Sultan Qaboos Sports Complex in Bausher (520,525 rials). > Supply, installation and operation of medical equipment for cancer treatment centre and daily care at the Royal Hospital (499,742 rials). > Supply and installation of medical equipment for different health institutions (fourth stage) (478,657 rials). > Provision of emergency services and maintenance of the electricity network in Musandam Governorate (first group) (433,800 rials). > Emergency works and maintenance of the electricity networks in Hajj and Sirab area in Al Wusta Region and the Wilayats of Masirah, Khuwaimah and Dhafrat in Al Sharqiyah region (first group ) (393,120 rials). > Special equipment for the TV transmission to cover the events of the second Asian Beach Games, Muscat 2010 worth 316,988 rials. > Provision of emergency and maintenance services for the electricity networks in Musandam governorate (second group) (296,400 rials). > Provision of emergency and maintenance services for the electricity networks in the Wilayat of Haima in Al Wusta region, Al Nahida in Al Dakhiliyah region, Wadi Al Aswad in Al Dhahirah region (third group) (292,291 rials). > Supply, installation and testing of diesel generator (2 mg, 11 kv) for power production plants in the wilayats of Madha in Musandam governorate (281,925 rials). > Replacement of porcelain insulators (220 kv) with silicon insulators in the northern and southern Al Batinah region (250,809 rials). > Provision of engineering consultancy services (design and supervision) for the construction of new Al Mazyonah hospital in Dhofar governorate (195,000 rials). > Provision of engineering consultancy services (design and supervision) for Tawi Ateer Health Centre, Al Haq City Health Centre in Dhofar governorate (73,996 rials). > Additional works for the construction of sanitary water drainage plant and treated water networks for Darsait, Aynt, Al Wadi Al Kabir and Al Hamriyah (4,895,786 rials). > Additional works for maintenance and support of private equipment related to availing IPS service (466,984 rials). > Additional works for the operation and maintenance of withdrawal and restoration of cooling water in Sohar Industrial Port (276,750 rials). > Additional works for the design and supervision for the implementation of water supply project in the Wilayat of Quriyat (159,953 rials). > Additional works for the supply, installation and operation of current breakers, connection and disconnection switches (132 kv) for Oman Electricity Transmission Company (833,672 rials). The Board also opened bids for the following tenders; > Tender No. 202/2010, supply of water to the Psychiatric Hospital in the Wilayat of Al Amerat (International). > Tender No. 260/2010, levelling and filling up of lands in Kamzar in Musandam Governorate. > Tender No. 10/2010, provision of consultancy services for preparing the urban lay out for the Al Duqm city in the Al Wusta region (International). > Tender No. 138/2010), provision of the consultancy services for the interior design for the Al Qala’ah Hotel project. > Tender No. 152/2010, the design, engineering, supply and construction of mercury removal plate in Sohar refinery. > Tender No. 237/2010, provision of the consultancy services for the initial and final design, as well as, management services for Sohar Refinery expansion project (International). > Tender No. 242/2010, construction of Hafsa Bint Sireen school for basic education (15 classrooms) in the Wilayat of Al Buraimi in Buraimi governorate. nTender No. 243/2010, construction of Al Farooq school for basic education for boys (12 classrooms) in the Wilayat of Al Buraimi in Buraimi governorate. > Tender No. 244/2010, construction of water desalination plant in Uwaifiyah in the Wilayat of Bahla in the Al Dakhiliyah region. > Tender No. 267/2010, construction of 18 classrooms and other facilities at Abu Bilal school for basic education for boys in Sinaw in the Wilayat of Al Mudhabi in the Al Sharqiyah region. > Tender No. 268/2010, construction of basic education school for boys (12 classrooms) in Daghmar in the Wilayat of Quriyat in Muscat Governorate. > Tender No. 270/2010, supply of equipment and mobile drilling equipment for Oman Dry Dock company (international). > Tender No. 271/2010, meter reading work and electricity bill preparing and collection for Mazoon Electricity company (International).
News & Financial Announcements
The Board also approved a number of Variation Orders related to the on‐going projects, reviewed topics related to projects referred by ministries and government departments. Source: Oman News Agency First full‐scale EOR project opened………………7 Oct 2010 The official opening of the first full‐scale Enhanced Oil Recovery (EOR) project in the south of PDO’s concession area was held at a ceremony here yesterday. Held under the auspices of Dr Mohammed bin Hamad al Rumhy, Oil and Gas Minister, the opening was attended by Shaikh Bakhit bin Salim al Maashni, Wali of Shaleem and Halaniyat Islands, senior officials from PDO, Oil and Gas Ministry and local dignitaries. PDO’s new Managing Director Raoul Restucci said: “This is a historic occasion for the company as it represents a new chapter in the company’s development as this is the first full‐ scale enhanced oil recovery, or ‘EOR’, — a project which establishes PDO as the region’s leader in EOR technology. “The new project aims to add a further 8,000 barrels per day of oil production from the Marmul reservoir.” He pointed out that the company’s oil production has achieved high rates with the use of traditional technologies. Then the production started declining from a number of fields. This was the case at Marmul, the first big field discovered in PDO’s southern concession area, which started producing oil in 1980. “After 20 years of production, the Marmul output started falling, but our sub‐surface studies showed that there was still plenty of oil left in the ground. After studying a wide range of EOR technologies, the team identified polymer flooding as the optimum solution. This involves adding polymer granules to the water that is injected into mature fields to ‘sweep’ or push the oil towards producing wells,” he added. “Adding polymer to the water increases its viscosity or thickness, which leads to a more effective oil sweep; this in turn helps increase production and, most importantly, the ultimate recovery of the field. “This first phase of the Marmul Polymer Project will lead to an increase in the oil recovery factor by 10 per cent in the targeted area,” he noted. He pointed that after evaluating the response of the field to the current technology, hopefully “we will increase the recovery in the coming stages.” He said that no company in the region has implemented the polymer project before. The water treatment plant is designed to process a staggering 80,000 cubic metres per day and the polymer preparation facilities can handle an impressive 17,500 cubic metres a day. “At present, PDO has three other EOR projects under way using two other main EOR technologies. At Harweel, we are working towards the completion of a major project using miscible gas injection, while at Qarn Alam and Amal, we are using steam injection technology. “Once these projects have been completed, PDO will be the only oil company in the world using each of the three proven EOR technologies. PDO is also producing over a million barrels of oil equivalent (BOE) per day of oil, gas and condensate from more than 120 active fields." Dr Al Rumhy, Minister of Oil and Gas, Chairman of Petroleum Development of Oman (PDO), unveiled a plaque of the ERO project south of the concession areas in Marmul. The minister and guests toured the project. Dr Al Rumhy said that polymer project in Marmul Oilfield is considered a gate for applying the modern method of the oil extraction in the Sultanate rather than the traditional way still being used in some oilfields. Dr Al Rumhy told Oman News Agency (ONA) that the project started by using the polymer‐supported oil extraction in Marmul oilfield since 2005 as an experimental stage. After confirming the success of the experiment, it has been widely used in this oilfield, indicating that modern methods of oil extraction will be used in some other oilfields in Harweel, Qarn Al Alam and Amal. Dr Al Rumhy added that the modern method in oil extraction would contribute by 50 per cent of the production. The modern method will also provide job opportunities for Omani youth and execute spin off industries and other opportunities. He emphasised that the company will work on preparing a study about such industries and training opportunities that required by the application of the modern method of oil extraction. Source: Oman News Agency
Anwar Ceramic posted a net profit of R.O 4.16mn in 9M'10………………10 Oct 2010 Al Anwar Ceramic Tiles Co, today reported results for the third quarter ended September 30, 2010. The company reported total income (including Sales and other income) of RO 4.38mn for Q3’10, compared to RO 3.86mn in Q3’09 (+13.3% y‐o‐y) and to RO 4.55mn in Q2’10 (‐3.7% q‐o‐q). Total expenditure was RO 2.85mn in Q3’10, representing a 16% increase from the previous year and a decline of 4.3% on quarterly basis. However, this lead net profit margin to be stable at 30.7% in Q3’10 compared to 30.4% in Q2’10. Net profit in Q3’10, was +8.6% y‐o‐y to RO 1.34mn (although compared to Q2’10, it declined by 2.6%). Source: Company Announcement, OABINVEST
Majlis panel reviews study on Omanisation………………10 Oct 2010 The Human Resources Development Committee at the Majlis Addawla in a meeting here yesterday reviewed the speech of His Majesty Sultan Qaboos before the Council of Oman and a study on Omanising technical and administrative jobs. The study looks into the challenges facing the Omanisation process and recommendations to raise the number of Omanis in the designated sectors. Source: ONA
News & Financial Announcements
Foreign investment in 8th Plan tourism sector………………10 Oct 2010 The Tourism Ministry aims, among other things, to attract increased foreign investment in quality infrastructure and services as part of its strategy for tourism development during the 8th Five Year Plan. The initiative is one of several key objectives outlined by the Ministry for implementation during the next five‐year (2011‐2015) developmental plan, according to Tourism Under‐Secretary Mohammed bin Hamoud al Tobi. In comments to the Observer, Al Tobi described the upcoming five‐year‐plan as a period of "great strategic value" to the country's tourism industry, especially as the Ministry ramps up efforts to boost Oman's profile as a quality business, tourism and leisure destination in key source markets. Listing a number of objectives set out in the 8th Five Year Plan, the Under‐Secretary emphasized the bedrock "principles and practices of sustainability" that will continue to underpin the Ministry's tourism development activities. Further, the Ministry will work to maintain the right balance in tourism development on the regional development, he said.
A key goal of the 8th Plan, Al Tobi said, is to diversify the range of quality tourism products and attractions offered to international visitors. Also on the agenda is an initiative
to increase local community involvement in tourism development and flow‐on activities. The strategy envisages support for the growth of small to medium sized enterprises (SMEs) as a tool to increase the spread of benefits to local communities. "This set of objectives is aimed at delivering industry‐wide and sustainable outcomes that are required to take the tourism sector to the next level," Al Tobi stated.
Significantly, the 8th Five Year Plan for tourism development also calls for the implementation of a Tourism Human Resources Strategy suitably formulated for the benefit of the entire sector. In fact, employment generation has been an underlying objective of the ministry's tourism development strategy from the outset, according to the under‐secretary. "Our collective success ‐‐ the ministry and the industry ‐‐ is that in remarkably short time, we have forged a robust framework to develop a highly competitive industry and destination. In this respect, our competitiveness is greatly assisted by the potential of Oman's people and their positive outlook, and its natural beauty and values."
Since the ministry's formation in 2004, Oman has recorded double digit annual visitor growth (around 1.7 million visitors in 2009) with the industry now contributing close to three per cent of Gross Domestic Product (GDP), Al Tobi explained. "These outcomes are important because job generation is tied to growth, and here again the outlook is positive as nationally significant tourism projects like the Oman Convention and Exhibition Centre allow Oman to tap new visitor segments, and as new resorts come on line."
He further added: "The good news from a jobs generation perspective is that the tourism sector is highly labour intensive with some of the highest job generation multipliers because it draws on so many sectors (IT, transport, food and hospitality) and levels of management. For these reasons, Oman is well placed to meet its job creation targets and make a sustainable contribution to national, regional and local economic development." Source: Zawya
Oman Cables records 9M’10 Net Profit of RO 5.9mn………………11 Oct 2010 Oman Cables today reported results for the third quarter ended September 30, 2010. The company reported sluggish revenue of RO 51.6mn for Q3’10, compared to RO 50.2mn in Q2’10 (+2.8% q‐o‐q), while on annual basis sales were up by 41.2% y‐o‐y. As the cost of sales as a percentage of sales increased significantly from 90.6% in Q2’10 to 92.45% in Q3’10, thus gross margins declined. Although administrative expenses in Q3’10 were maintained at previous quarter level, but slower revenue growth and higher direct expenses led to decline in net profit on quarterly basis from RO 2.36mn in Q2’10 to RO 1.83mn in Q3’10 (‐22.4% q‐o‐q). Consequently, net margins were down from 4.7% in Q2’10 to 3.55% in Q3’10. Source: OABINVEST, Company Announcement
Oman Oil Marketing Company secures two new aviation fuel supply contracts ………………11 Oct 2010 Oman Oil Marketing Company SAOG secured two aviation fuel supply contracts with Pakistan International Airlines (PIA) and Bangladesh Airlines (BIMAN) for one year. Both contracts start from 1st October 2010 and are envisaged to contribute 6% in sales volume to the company's aviation business.
PIA is the flag carrier airline for Pakistan operating scheduled services to 24 domestic destinations and 39 international destinations. It is partly owned by the government of Pakistan and partly public. BIMAN is the flag carrier airline of Bangladesh. BIMAN provides international passenger and cargo services to Asia and Europe, as well as domestic routes. The Airline was wholly owned and managed by the government of Bangladesh until 2007 when it was transformed into the country’s largest public limited company Source: MSM
News & Financial Announcements
19 firms eye Salalah Port contract ………………12 Oct 2010 Nineteen local and international firms are in the race for a contract to build a major General Cargo Terminal and Liquid Jetty at the Port of Salalah. The project, estimated to cost around RO 75 million, represents the first stage of an ambitious expansion strategy designed to entrench Salalah’s dominance as a major maritime hub overlooking the Indian Ocean. Of a total of 41 firms that collected bid documents when the competitive tender opened in May this year, only 19 companies submitted firm offers by yesterday’s deadline set by the Tender Board.In the reckoning for the prestigious contract are BAM International, Afcons Infrastructure, Galfar Engineering & Contracting, Consolidated Contractors, Ballast Nedam International, Archirodon Construction (Overseas), Hindustan Construction, Sambu Construction, Essar Projects, Muhibah Engg (Malaysia), Strabag Oman, National United Engineering, Carillion Alawi, 115 Construction & Installation, Simplex Infrastructures, Gammon India, China Harbour Engg, STX Construction, and GS Engineering & Construction. The Ministry of Transport and Communications is overseeing the Salalah Port expansion project, which centres on the development of a dedicated General Cargo Terminal and liquid jetty inside the Southern Breakwater. The expansion will cater to the phenomenal increase in bulk commodities being handled at Salalah.The project entails the construction of 1,266 metres of new quay wall built with concrete precast blocks. In addition, the harbour basin in front of the General Cargo Terminal will be dredged to a depth of ‐18 metres, allowing for even major cargo ships to dock at Salalah. A combination of dredged material, imported fill, and stones, will be used to reclaim land for the terminal yard. Protection for the revetments will be provided by more than half a million cubic metres of rocks and crushed stones. In addition to installing berthing, mooring and navigation aids, the selected contractor will also put in place nearly two kilometres of railing for cranes along the quay wall. The contract also calls for the provision of utility services, such as potable water supply, fire protection, sewerage and drain systems and electrical supply, besides administrative buildings. Importantly, the new General Cargo Terminal will also incorporate a liquid jetty suitably equipped to handle product tankers and other carriers that service the petrochemical projects either in operation or planned in the future at the nearby Salalah Free Zone. Initially, the jetty will primarily serve the methanol plant of Salalah Methanol Company which came into operation earlier this year.A 20‐year revised master‐plan approved by authorities last year envisages a phased scale‐up of the General Cargo Terminal’s capacity to a whopping 40 million tons of dry bulk commodities and five million tons of liquid products annually. Also under the revised master‐plan, the port’s centerpiece Container Terminal is proposed to be gradually expanded. Envisioned in the next phase of the Container Terminal’s expansion is the development of ‘Terminal 2’, which will add three additional deepwater berths totalling 1,350 metres to the existing 2,581‐metre linear quay. The port’s container handling capacity will consequently be boosted to 9 million TEU. Longer‐term, the Container Terminal will be progressively enlarged over a 20‐year‐timeframe to reach a total quay length of 8 kilometres, boosting the port’s capacity to a mammoth 15 million TEUs per annum. Source: Observer
Board awards tenders worth 64.62m rials………………12 Oct 2010 The Tender Board issued tenders worth 64,622,257 rials on Monday in its 26th meeting of the year. The Council headed by the Deputy Chairman of the Central Bank of Oman (CBO) Board of Governors and Chairman of the Tender Board HE Dr Ali Bin Mohammed Bin Moosa also approved a number of orders related to projects underway. The tenders include: > To lay a 220kv‐electricity line connecting Barka Power Plant (III‐stage) and Al Misfat Power Plant in the Wilayat of Bausher in Muscat Governorate (25,292,300 rials). > Expansion of main water supply system and tanker filling station in the Al Sharqiyah Region (19,852,543 rials). > Construction of gas line for Barka power plant (III‐stage) and Sohar Power Plant (II‐stage) (7,696,572 rials). > Levelling of the land allocated for Oman International Conference and Exhibitions Centre (I‐stage) in Muscat Governorate (2,681,953 rials). > Connecting Hajj Village at the Wilayat of Mahout in the Al Wusta Region with water distribution network (2,301,151 rials). > Maintenance of the systems used by Oman Telecommunications Company (1,813,512 rials). > Construction of water distribution units in Souqarah and Al Kahl village at the Wilayat of Al Jazir in the Al Wusta Region (1,626,958 rials). > Expansion of water desalination plant in Khuwaimah at the Wilayat of Ja’alan Bani Bu Ali in the Al Sharqiyah Region (1,218,885 rials). > Expansion of the water desalination plant at Lima area in the Musandam Governorate (803,824 rials). > Supply and installation of fire fighting systems at the transformers in the power stations (458,829 rials). > Collection of Oman Telecommunications Company and Oman Mobile Company’s bills with 3.9 per cent. > Additional works related to the construction of water supply line connecting the Wilayat of Bahla with the Wilayat of Al Harma in the Al Dakhiliyah Region (587,246 rials). The Board also opened bids for the following tenders: > Tender No. 151/2010, for the construction of additional berth at the general cargo terminal and bulk terminal (Salalah Methanol)
News & Financial Announcements
in Salalah Port. > Tender No. 210/2010, works related to the construction of the Automatic Control Building of the Public Authority for Electricity & Water. > Tender No. 239/2010, for the construction of veterinary quarantine at Sual area in the wilayat of Bidbid. > Tender No. 240/2010, for the construction of sports and games training centre at Al Jabal Al Akhdhar. > Tender No. 245/2010, for the construction of drainage station at Belad Seet in the Wilayat of A’Rustaq in the Al Batinah region. > Tender No. 274/2010, the construction of a specialised treatment unit at Khoula hospital. > Tender No. 276/2010, for the maintenance of Sultan Qaboos Complex in Bausher. > Tender No. 277/2010, for providing power supply to the Hajj Village at the Wilayat of Mahout in the Al Wusta Region. > Tender No. 278/2010, for the supply and installation of electric condensers (2x20 MFAR) at the transformer stations in Al Wadi Al Kabir and Airport Heights in Muscat Governorate. > Tender No.279/2010, for the construction of a building for Oman Export Credit Guarantee Agency at the Airport Heights in the Wilayat of Bausher in Muscat Governorate..Source: ONA
Galfar commissions high capacity gathering station in Marmul for PDO………………13 Oct 2010 Galfar has successfully brought on line the Marmul A expansion project for the Petroleum Development Oman (PDO). This project enhances Marmul production facilities by entirely decommissioning the existing Marmul A gathering station and installing 3 new Pumps capable of exporting 30,000 cu.m per day to the Marmul main production station. This EPC project involved On Plot and Off Plot construction activities. Galfar Engineering and Contracting has been an active player in PDOs development process. The On Plot activities involved gathering station with 3 pumps, surge tank, 2 separators, 4 de sanders, control building and AP & LP flares. TR Engineering, a leading Oil and Gas consultancy firm in Oman provided the engineering support. Project manager Salim Bin Musallam Al Jassasi together with project engineer Sameer Al Lamki and other PDO team members have appreciated the efforts put in by the Galfar team headed by Janardhanan, senior executive vice‐president, Oil and Gas, Mustafa Kamal (Project Director) and Verma, the executive vice‐president EPC and supported by the project manager Surya Rao and others including the engineering services providers Suresh Pillai, TR Engineering and his team. The commissioning team at site led by Galfar’s EPC division Anil Rakehja, have ensured the rapid completion of the project. Galfar’s role in carrying out works in the Oil and Gas sector goes back to 1987 with the start of its first mechanical service contract in 1988. Since then Galfar has been active in EPC in the Oil and Gas sectors constructing projects together with many international Oil and Gas Giants. Galfar, the largest employer of Omanis in the private sector, has surpassed the $ 1 billion barrier. Galfar intends to be a successful partner in the development of not only Oman but also Asia and Mena region. Source: Oman Tribune Nawras extends public offering period to Oct. 21………………13 Oct 2010 Nawras on Tuesday extended initial public offering period by a week to October 21.Following the completion of the majority of the institutional investor meetings in Oman, the GCC and Europe, the Nawras IPO has received a very positive response with indications of significant demand from both Omani as well as international investors, the firm said in a press release. Given this is the first time bookbuilding is used in Oman and to ensure all investors have sufficient time to complete and submit their applications, Nawras had consulted with the CMA for an extension to the offering period and the CMA has granted a one‐week extension, the firm added.The subscription process remains the same for all investors, as stated in the Nawras prospectus. The new pricing date is expected to be October 31 and the new listing date is expected to be November 3. Source: Oman Tribune No move to withdraw fiscal stimulus measures: CBO………………13 Oct 2010 The Central Bank of Oman (CBO) has no immediate plans to wind down the fiscal stimulus measures introduced by the apex bank in the wake of the global financial crisis in 2008.According to Executive President Hamoud bin Sangour al Zadjali (pictured), continuing concerns over the pace of the global recovery, as well as the sluggish recovery of Oman’s non‐oil sector, do not warrant a lifting of the stimulus measures at this juncture. Since the last quarter of 2008, the CBO has been pursuing an accommodative monetary policy to protect the domestic recovery from the adverse impact of the international financial crisis.The global recovery, which has been underway since the middle of 2009, suffered a setback during the second quarter of this year following the sovereign debt crisis in Greece and several other European countries, said Al Zadjali. “It is widely acknowledged that downside risks to the global recovery have increased since the outbreak of the sovereign debt crisis.Keeping in view heightened uncertainties as regards the global recovery in the second half of 2010, and also the modest recovery of the non‐petroleum sector in Oman so far, there is no proposal, as of now, to withdraw the stimulus measures introduced by the CBO at the height of the financial crisis in 2008,” the Executive President stated in comments to the Observer. Keen to stimulate growth and get credit flowing, the Central Bank had implemented a number of fiscal incentives in the wake of the global financial meltdown.It reduced the reserve requirement for banks from eight per cent to 5 per cent. Further, the lending ratio ceiling was restored to 87.5 per cent from 85 per cent with effect from January 2009 to avoid any regulatory induced credit contraction. Moreover, with the intention of providing adequate dollar liquidity support to local banks following the global financial credit squeeze, the apex bank in consultation with, and with the support of the Omani government, kept open a lending facility of up to $2 billion. Al Zadjali also underlined efforts by GCC central banks to put in place “an early warning system” designed to alert banks to an impending financial crisis. “Open economies are always exposed to the adverse effects of financial globalisation. In view of the
News & Financial Announcements
recent credit default problem in Saudi Arabia and Dubai, the GCC central banks are working on an ‘early warning system’ to ensure better supervision of their banks. Oman is actively participating in this endeavour.” While central banks have deliberated on co‐ordination strategies in support of the proposal, no agreement has yet been reached on the modus operandi of the proposed ‘early warning system”, he stated. The Sultanate, for its part, is taking all necessary measures to safeguard the health and integrity of its banking institutions, the Executive President noted. “So far as banks in Oman are concerned, we have asked them to make enough provision for non‐performing loans. Although central banks in the GCC will continue co‐ordinating among themselves to prevent an impending financial crisis, banks must be vigilant and calculate risks when they extend loans to customers,” Al Zadjali stated. Asked about moves to set up a financial stability unit within the apex bank, the Executive President added: “Worldwide, the importance of financial stability and monitoring of industry/economy‐wide risks have come to the fore in the wake of the global financial crisis. Given the enormous cost of mitigation of a systemic crisis, there is a strong need to study the industry‐level risks and macro‐prudential indicators more closely. In this regard, some work is already being done in the CBO. Now, in the wake of the financial crisis, further focused work is felt necessary, which would be facilitated better with a dedication function/unit for the purpose.” Source: Observer Muscat airport expansion to be complete by 2014………………14 Oct 2010 Oman’s transport ministry has said that the expansion of Muscat International Airport is scheduled to be complete by March 2014, Times of Oman has reported. The expansion involves construction of the passenger terminal building and northern runway setting up the Air Traffic Control (ACT) Tower and Air Traffic Management (ATM) system. The second phase of the expansion is designed to raise the terminal passenger handling capacity to 24 million. Source: MEED
Award of Tender for Oman National Engineering And Investment Comp. ………………17 Oct 2010 With great pleasure, I would like to inform our esteem shareholders & investors that Rural Areas Electricity Co. SAOC has awarded Oman National Engineering & Investment Company (SAOG) the contract for Operation and Maintenance of Masirah Power and Desalination Plants for the sum of RO 1,189,600(Rial Omani One Million One Hundred Eight Nine Thousand Six Hundred Only) for the period of (4) years. The company anticipates realization of reasonable profit margin. Source: MSM Certificates of deposit tender (RO 116mn)………………17 Oct 2010 Certificates of deposit (Issue No 689) tender was held at the Central Bank of Oman (CBO) last week. The total amount allotted was RO 116 million. A bulletin issued by the CBO stated that the average interest rate of these certificates was 0.6 per cent while the maximum accepted interest rate was 0.7 per cent. The tenor of these certificates is 28 days so their maturity date is of November 10. The certificates of deposit issued to licensed banks by the CBO as a monetary policy instrument aimed at absorbing excess liquidity at the banking sector in particular and maintaining stability of the interest rate and the money market in general. The Repo rate during October 13 to 19 is 2 per cent. Source: ONA Duqm Port can receive all types of commercial vessels………………17 Oct 2010 Said bin Hamdoun al Harthy, Under‐Secretary of the Ministry of Transport and Communications for Ports and Maritime Affairs, has said that 70 per cent of Al Duqm Port is ready and that the project will be handed over as scheduled by mid‐2012. In a statement to Oman, Arabic daily sister of the Observer, Al Harthy said that the port, with its 42 berths, its 18‐metre draft, its main 4.1 km breakwater, its 4.6 km secondary breakwater and its 19‐metre deep 10km‐wide entrance channel, will be capable of receiving all types of commercial vessels of the current generation and the next generation. Al Duqm Port now figures among the world’s important seaports, thanks to its strategic location along the Arabian Sea and close to international marine lines Work on the Dry Dock will be completed in December this year and its trial operation will start in April next year. Source: Observer NBO net profit up by 15.8% y‐o‐y to RO 7mn in Q3’10………………17 Oct 2010
• In Q3’10, customer deposits increased by 7.6% y‐o‐y and 2.5% q‐o‐q to RO 1.34bn. Net loans increased by 3.7% y‐o‐y (+1.2% q‐o‐q) to RO 1.43bn in Q3’10
• On quarterly basis while net interest income remained flattish at RO 14.1mn in Q3’10 but non‐interest income substantially declined by 17% q‐o‐q to RO 5.5mn, thereby pushing down the total operating income by 5.6% q‐o‐q to RO 19.6mn
• During the same period, total expenses rose by 11% q‐o‐q to RO 10.3mn, consequently operating profit plunged by 19% q‐o‐q to RO 9.3mn in Q3’10
• Due to higher expenses and lower income, cost‐to‐income ratio accelerated from 44.5% in Q2’10 to 52.4% in Q3’10.
• Lower operating profit and higher expenses badly impacted the quarterly performance, thus NBO posted net profit of RO 7mn in Q3’10 (+15.8% y‐o‐y and ‐11.6% q‐o‐q). We will further comment on this once full details are published.
• Provision coverage ratio was slightly higher at 109% in Q3’10 as against 108% in Q2’10. At the same time NPL/gross loan ratio reduced from 3.7% in Q2’10 to 3.6% in Q3’10
News & Financial Announcements
Source: OABINVEST, Company announcement Ahli Bank’s Q3’10 net profit up by 36.5% y‐o‐y but remained flattish on quarterly basis…………18 Oct 2010
Preliminary result highlights for Q3’10 are:
• Bank reported RO 6.7mn operating income in Q3’10, representing a growth of 29.5% y‐o‐y and 5.4% q‐o‐q
• 15% q‐o‐q rise in operating expenses to RO 2.4mn in Q3’10, negated the positive impact of higher operating income. Cost‐to‐income ratio increased from 33.3% in Q2’10 to 36.4% in Q3’10. Consequently, bank’s operating profit increased marginally by 0.5% q‐o‐q to RO 4.27mn in Q3’10
• Based on our calculation, it seems net provisions on q‐o‐q basis have increased around 15.6%. Bank posted Q3’10 bottom line growth of 36.5% y‐o‐y to RO 3.6mn (higher than our estimates of RO 3.3mn), while on quarterly basis net profit remained flattish
• Bank’s net loan book growth of 8% q‐o‐q (+41.8% y‐o‐y) to RO 575.3mn is impressive. Deposits were up by 45% y‐o‐y and 1.2% q‐o‐q to RO 528.7mn in Q3’10
• NPL/gross loan ratio at 0.33% in Q3’10 (v/s 0.31% in Q2’10), remained well below banking sector average of 4.7%
Source: OABINVEST, Company announcement
Buraimi cement plant to be operational by year‐end…………18 Oct 2010 Work on a new cement plant, under construction in Buraimi Governorate, is nearing completion and is expected to be brought into operation before the end of this year. Al Madina Cement Company LLC, the Sultanate’s third cement producer – after Oman Cement Company in Muscat Governorate and Raysut Cement Company in Dhofar Governorate – is preparing to commission its integrated facility ahead of its commercial launch later this year, according to a company official. The plant, boasting an installed capacity of 2,500 metric tons of cement per day (tpd), will go a long way in enhancing security of supply of a commodity crucial to the Sultanate’s vital infrastructure, construction, housing, and real estate sectors. Al Madina Cement is promoted by the Al Buraimi Group, a well‐diversified business house with interests in, among other areas, mining, quarrying, hospitality, and courier services, as well as the manufacture of petrochemicals, lubricants, petroleum products, pharmaceuticals and chemicals. The Group also has investments in neighbouring United Arab Emirates. The plant, located in the Wadi Saa area of Buraimi Governorate, will mainly produce Ordinary Portland Cement (OPC) for the construction industry. Other cement products, including sulphate resistant cement and oil well cement, could be added to the plant’s product range in the future. Raw materials for the project will be mainly sourced from the Group’s extensive mines and quarries located in and around Buraimi Governorate. Future expansions are not ruled out as Al Madina Cement’s manufacturing license allows for a significant scale‐up of output far higher than the initial 2,500 tpd capacity planned at start‐up. When operational by the year‐end, Al Madina Cement is set to add around 750,000 metric tonnes per annum of new capacity to the Sultanate’s total domestic cement production capacity. Raysut Cement, the larger of the country’s two main cement producers, boasts a capacity of 2.4 million tonnes per annum of clinker and 2.7 million tonnes per annum of cement. Oman Cement, the Sultanate’s first cement manufacturer, produces around 2 million tonnes of cement annually, and has boosted its clinker capacity to around 2.4 million tonnes per year. Both companies have reported marginally lower cement sales during the first half of this year, a decline they partly blame on cement inflows from the United Arab Emirates and sold locally at discounted prices. In July this year, both cement manufacturers announced reductions in the selling price of cement, aimed ostensibly at boosting the competitiveness of their products in the face of stiff competition from UAE suppliers. Still, overall domestic demand for cement remains vigorous, fuelled in large part by ongoing government investments in major port, airport and road infrastructure. The Port of Duqm, with its dry dock complex, continues to consume significant quantities of cement. So do airport developments at Muscat, Sohar, Ras al Hadd and Al Duqm. Also driving demand are ongoing developments at the Port of Sohar, including its deepwater jetty and major industrial ventures. In Muscat Governorate, a string of ministry buildings and other high profile landmarks, such as the Majlis Oman building, National Museum, and a host of mixed use residential and tourism developments, is expected to keep demand strong over the foreseeable future. Source: Observer
Inflation to hover around 4% this year…………18 Oct 2010 The average inflation rate in the country could firm up to four per cent during the current year, mainly on account of weakening US dollar, to which Omani rial is pegged, and crop failures in countries from where Oman imports essential food items, said a senior official at the Ministry of National Economy. The sluggish trend in US dollar made imports dearer, which in turn aided inflationary pressure in the domestic market in recent months. The projected inflation rate for this year is higher than last year’s 3.4 per cent, and a similar inflation rate witnessed in August this year. Reasons “With the weak dollar, the cost of imported goods is going up. I am also expecting some increase in foodstuffs like rice and wheat, due to natural calamities in Pakistan, which will affect the prices of essential food items in Oman,” Dr Abdul Malik bin Abdullah Al Hinai, undersecretary for Economic Affairs at the Ministry of National Economy told Times of Oman. Al Hinai also noted that the drought in countries like Russia is also going to jack up the prices of wheat and wheat flour. These are the reasons for an increase in inflation of essential food items — the largest item accounting for 30 per cent of the consumer price index. The prices of tomatoes, cucumber and coriander have shot up in the last
News & Financial Announcements
couple of months. According to traders, a decline in vegetable production in Oman, coupled with shortage in vegetables in countries from where the Sultanate imports, has resulted in prices soaring in local markets. CBO Executive President Hamoud Sangour Al Zadjali had said in April that the annual inflation could reach 4 to 5 per cent this year due to cost escalation in importing countries. In order to maintain price stability in the domestic market, Oman government is taking several new measures to enhance both food reserves and storage facilities to ensure food security, and thereby, maintain price stability within the country. The Public Authority for Stores and Food Reserves has been entrusted with the task of stocking four essential commodities, including rice, sugar and oil. Also, as part of the move, 52 new warehouses will be set up in different wilayats with an envisaged investment of RO42 million to ensure availability of food reserves even in remote villages. The country now has reserves of 200,000 tonnes of rice, 70,000 tonnes of sugar and 250,000 tonnes of wheat. Rice reserves are enough for two years’ consumption, sugar for one year and wheat for nine months. Referring to projected economic growth during the current year, Al Hinai said gross domestic product (GDP) in real terms is expected to grow by seven per cent. “For the first half of the year, the GDP growth in market prices was 30 per cent,” he noted .Source: Times of Oman
Oman August M1 Money Supply Growth Accelerates to Annual 17.5% …………18 Oct 2010 Oman M1 money supply growth accelerated to an annual 17.5 percent in August, compared with 10.9 percent in July, according to the country’s central bank website. M2 money supply grew 8 percent year‐on‐year in August, from 6.3 percent in July, the central bank said. Source: Bloomberg RO 100m govt bonds at 3.25 pcpa…………19 Oct 2010 The Central Bank of Oman (CBO) has announced the 38th issue of government development bonds. The size of the new issue is fixed at RO 100 million with a maturity period of 4 years and will carry a coupon rate of 3.25 per cent annually (pcpa). A bulletin issued by CBO indicates that the issue will be open for subscription from October 24 to November 4, 2010, while the auction will be held on November 8. The issue/settlement date will be on November 1, 2010. Interest on the new bonds will be paid on May 11 and November 1, every year until maturity date on November 11, 2014. Investors may apply for these bonds through competitive bidding process only. Investors may submit bids through licensed banks operating in the Sultanate. Investors with applications of RO 1 million and above can, if they so wish, submit their bids directly to CBO after getting them endorsed from their banks. Prospectus and application forms can be obtained from any licensed bank operating in the Sultanate. The bulletin affirms that the bonds are direct and unconditional obligations of the government of the Sultanate. The bonds can be used as a collateral security to obtain loans from any local licensed bank. The bonds can also be traded at prevailing market rates through the Muscat Securities Market (MSM). The details of the bonds allotted will be recorded in the register maintained by the Muscat Clearing and Depositary Company (MCD). This particular issue of government bonds is offered to all investors of any nationality residing in the Sultanate only. It is not open for subscription to investors residing abroad. Source: ONA
OAB launches ‘Visa Infinite’ card for premium customers…………19 Oct 2010 Oman Arab Bank yesterday announced the launch of ‘OAB Infinite’ card, which will cater mainly to the high‐end customers of the bank. The Infinite card provides the cardholders the ultimate purchasing experience and a unique set of high‐end benefits, including world‐class service from a round‐the‐clock concierge team and comprehensive travel insurance and purchase protection. The OAB Infinite card, which is the top tier card product in the industry, is exclusive for the bank’s affluent segment and will be distributed by invitation only “This launch of Infinite card is in line with our overall strategy to constantly enhance and upgrade our product offering in order to meet the industry's highest standards and better respond to customers' expectations and concerns. With the new OAB Infinite card, we have launched an exclusive and top‐of‐the‐range product, reflecting our commitment to introducing premium products,” stated Abdul Qader Askalan, CEO of Oman Arab Bank. There is a growing sophistication among the affluent and high net worth individuals in the Sultanate. Oman Arab Bank recognises this trend and seeks to meet the financial and lifestyle needs of this discerning clientele. With new initiatives such as the Infinite card, OAB is also proud to consolidate its leadership in the premium payment solutions industry and make a sustained contribution to the economy of Oman. Through world‐class services and innovative banking solutions, we hope to become the 'Bank of Choice' for discerning individuals, corporations, and government entities,“ said Rashad al Shaikh, Head Retail Marketing and Business Development. Every OAB Infinite cardholders will be assigned with professional Customer Service Managers who are dedicated to serve them 24 hours a day, 365 days a year. Renowned and respected everywhere, it opens a new gateway to a world of privileges, a world in which clients enjoy truly personal service. The wide range of exclusive privileges includes: Concierge Service that will take care of the travel needs of its customers, global customer assistance that ensures continuous multi‐lingual support anywhere in the world, offering medical, legal or financial help and advice. It also offers emergency cash up to $5,000 and payment authorisation is guaranteed within 24 hours in case the card is lost or stolen and medical services include telephone advice, referral to a local specialist and monitoring during and after hospitalisation. Elaborating on the benefits of the card, Farah Abdullah Moosa, Product Manager ‐ Cards at OAB said: "Apart from providing the customer with unlimited purchasing power anywhere across the globe, the Infinite card has many exclusive features for its users.” “The Concierge Service is a complimentary added value available to any Infinite cardholder. Through this service, specialised professionals are assigned to every OAB Infinite cardholder, and are responsible for taking care of his or her air travel arrangements, hotel reservations, international airport reservation services, currency exchange, packaged holiday reservations, transportation, luggage handling and more. The cardholder can easily access these services by calling a toll‐free number. “All Oman
News & Financial Announcements
Arab Bank products and services have evolved over the years in line with specific customer requirements, fulfilling their financial dreams and aspirations. To meet and exceed customer expectations of its premier clientele, OAB offers several privileges and benefits to Infinite cardholder that reflects their status of being in a class of their own,” commented Hisham Abdulhadi, ADGM, Card Centre. Oman Arab Bank operates through a network of 54 branches and offices throughout the Sultanate. The bank offers a wide range of products and services in Retail, Corporate and Investment Banking. There were a number of unique initiatives that accelerated OAB’s performance. These initiatives include innovative retail products such as OAB Markabati Plus car laon, AL Dar Housing loan and the opening of OAB’s Fil Khidma call centre service. the bank has also recently been declared the best Investment Bank in Oman in 2010 by World Finance magazine. Source: Oman Observer
Renaissance Engineering Subsidiary Awarded US$100m EPC Contract…………19 Oct 2010 The engineering division of Renaissance Services subsidiary, Topaz Energy and Marine, has been awarded a Rial 38.5 million (US$ 100 million) engineering, procurement and construction (EPC) contract from client GPS Chemoil for the construction of an oil storage terminal in Fujairah, United Arab Emirates. The 560,000 m3 terminal is one of the largest EPC tank terminal projects awarded to Topaz Engineering in the recent past in terms of project value and terminal size. The oil storage terminal will be fully automated and equipped with a facility for loading and receiving jet, gas and fuel oil from shipping berths via eight loading and receiving pipelines. The scope of work is expected to be completed in two years and includes the commissioning and hook up to the existing facilities at the Port of Fujairah. Saif Al Salami, CEO of Fujairah National Group, GPS Chemoil’s majority stakeholder, commented on the project award saying, “GPS’ ongoing investments in Fujairah are reflective of our confidence and commitment to the Emirate’s growth and strategic importance to the region. In executing our development plans in Fujairah we consider Topaz Engineering a key partner on account of its efficient and safe project delivery for GPS in the past.” Renaissance recently announced that its engineering division had successfully delivered its largest construction project to date, a massive 12,400 ton deck structure for an offshore oil platform, without a single work‐related injury. Bill Bayliss, COO of Topaz Engineering said, “With major ongoing projects in the region, Topaz Engineering has emerged as one of the leaders in the oil and gas industry on the eastern coast of the Emirates, particularly for onshore plant construction works on an EPC basis. The confidence shown by GPS Chemoil in Topaz’s EPC project capabilities with this award reflects our successful execution of vital projects on GPS’ behalf.” Source: MSM
Galfar submits bid offers…………19 Oct 2010 We hereby announce that we submitted, today, to the Tender Board our bid offer for Tender No. 273/2010 on “Construction of Vocational Association Building at Airport Heights, Wilayat Bausher, Muscat Governorate”, for the Ministry of Social Development.We also submitted, today, to the Tender Board, our bid offer for Tender No. 238/2010 on “EPC of Control System Replacement for Al Ghubrah and Wadi Jizzi GSS” for Oman Gas Company. Source: MSM
National Aluminium Products Co (NAPCO) posted a net profit of RO 1.61mn in 9M’10…………19 Oct 2010 • The company reported revenue of RO 5.33mn in Q3’10, compared to RO 5.44mn in Q3’09 (‐2.2% y‐o‐y) and to RO 5.47mn in Q2’10 (‐2.7% q‐o‐q). • Total expenditure (including selling & distribution expenses, administrative & general expenses, net other income, net financing income and gain / loss on fair valuation of derivative) remained almost same at RO 4.79mn in Q3’10 , compared to the same period last year, and RO 4.77mn in Q2’10. • Despite of stable expenses, due to decline in Q3'10 revenue total expenditure as percentage of sales increased from 87.2% in Q2’10 to 89.9% in Q3’10 • NAPCO net profit declined to RO 0.47mn in Q3’10 against RO 0.58mn in Q3’09 (‐18.8% y‐o‐y) and to RO 0.61mn in Q2’10 (‐23.9% q‐o‐q) • Net margins were down to 8.8% in Q3’10 v/s 11.3% in Q2’10 (and 10.6% in Q3’09) Source: OABINVEST, Company announcement
Topaz wins 38.5m‐rial EPC contract to build oil terminal…………20 Oct 2010 Topaz Energy and Marine, the engineering division of Renaissance Services, has won a 38.5‐million‐rial ($100m) engineering, procurement and construction (EPC) contract from GPS Chemoil to construct an oil terminal in Fujairah, UAE. The 560,000‐cubic‐metre terminal is one of the largest EPC tank terminal projects awarded to Topaz Engineering in the recent past, in terms of project value and terminal size. The terminal will be fully automated and equipped with a facility for loading and receiving gas, jet and fuel oil from shipping berths through eight loading and receiving pipelines. The work is expected to be completed in two years. The new terminal will be connected up to the existing facilities at the Port of Fujairah.“GPS’ ongoing investments in Fujairah are reflective of our confidence and commitment to the Emirate’s growth and strategic importance to the region. Topaz Engineering is a key partner on account of its efficient and safe project delivery for GPS in the past,” said Saif Al Salami, CEO of Fujairah National Group, GPS Chemoil’s majority stakeholder.“Topaz Engineering has emerged as one of the leaders in the oil and gas industry on the eastern coast of the Emirates, particularly for onshore plant construction works on an EPC basis. The confidence shown by GPS Chemoil in Topaz’s EPC capabilities with this award reflects our successful execution of vital projects,” said Bill Bayliss, COO, Topaz Engineering. Renaissance announced that its engineering division had delivered its largest construction project to date, a 12,400‐tonne deck structure for an offshore oil platform, without a single work‐related injury. Source: Oman Tribune
News & Financial Announcements
NBO’s currency ratings upgraded…………20 Oct 2010 The currency credit ratings of National Bank of Oman (NBO) have been upgraded by Capital Intelligence (CI). NBOs foreign currency ratings have been raised to BBB+ long‐term and A2 short term (from BBB and A3 respectively). The ratings upgrade reflected CI’s increased confidence that government support for the local banking sector will be high in case of need. “However, the support rating is unchanged at 3, since ownership is largely in private hands. The financial strength rating is affirmed at BBB with the bank’s good operating profitability, capital adequacy and asset quality being supporting factors. NBO’s H1 2010 results have been good overall, with asset quality and profitability ratios recording improvements. The outlook for all the ratings is therefore, stable,” a CI release said. “We are proud to have our currency ratings raised to BBB+ long term and A2 short‐term. We will continue to strive towards upgrading our ratings by remaining focused on improving our financial performance,” Salaam Said Al Shaksy, Chief Executive Officer of NBO, said. Source: Oman Tribune CMA to monitor Nawras IPO price determination process…………20 Oct 2010 The Capital Market Authority (CMA) will carefully monitor the Nawras IPO’s book‐building process with a view to curbing any potential for “conflicts of interest” in the price determination mechanism and final bid price of the telecom operator’s maiden public offering. In a statement, the market regulatory outlined steps to ensure that the price determination process and final bid price were not influenced in any way by certain Category II investors. “The ongoing Nawras IPO is the first IPO in Oman which is following the book‐building process for determining the issue price. While book‐building is new to Oman, it is practised quite commonly in the international markets,” the CMA statement said. It further added: “Due to the sensitive nature of the bid prices provided by the Category II investors in determining the final offer price and to avoid any conflicts of interest in price determination process, the Capital Market Authority would like to draw to your attention that the applications will be reviewed by the CMA to ensure that they are not an interested party.” According to the CMA, all parties related to the ‘Selling shareholders’ will be treated as an interested party as per the regulator’s related party rules set out under Article (1) of the Executive Regulation of the Capital Market Law following the Administrative Order 1/2009. The following will be treated as interested parties: (i) Directors of the company or the parent company or any of the subsidiaries or associates, during the period of last twelve months; (ii) CEO or General Manager or any employee who directly reports to the board of directors of the issuer; (iii) Any person who holds 10 per cent or more of the voting rights in the company or the parent company or the subsidiaries or associates; (v) Any person who is related to any of the natural persons mentioned in (1, 2, and 3 above) including the father, mother, sons, daughters, husbands, wives as well the entities in which they jointly or severally hold 25 per cent or more of the voting rights, and (v) Any person who is associate of any of the juristic persons mentioned in (1, 2, 3) including the parent company, subsidiaries, associates and the companies in which he severally holds at least 25 per cent of the voting rights and the entities their directors acts on the volition of the issuer. While these interested parties are allowed to apply for shares in the institutional category, their price bids will be excluded from the price determination process, the CMA said. “Thus the price will be determined on the basis of bids received from non‐interested parties. This will ensure that the price determination process is fair and completely market driven,” the regulator said “The Capital Market Authority will continue to closely monitor the IPO process and the price determination mechanism and the final price for the IPO will be announced in consultation with CMA,” the Authority added. Source: Oman Observer Prices of some steel types come down…………21 Oct 2010 Prices of some types of steel fell last week while other types maintained their levels for two weeks. The latest survey of the Department of Consumer Protection, Ministry of Commerce and Industry, conducted last Tuesday on a number of distribution points in the Governorate of Muscat points out that iron from UAE scored the most prominent declines after its price per tonne fell down to RO 257, compared to RO 261 on September 21 in al Ansari Company.The price per tonne in Bahwan and Oman Contracting for Building Materials was RO 260. The survey conducted by the department every two weeks reveals that well‐known Omani iron, Sharq Sohar, declined in the Middle East Company to RO 265 from RO 270 two weeks ago. Yet another brand, Majan iron was settled in the building materials company at RO 262 for the third successive week In Bahwan Company the price of Omani iron, one which wasn’t mentioned in the survey, was at RO 265 despite a surge in construction."The prices of steel have sort of stabilised for a couple of months but recently, they have come down and settled between RO 255 and 265", says A V S Hameed, a dealer in building materials and steel. "Steel is a high‐value low margin product and will be sold like hot cakes in a construction‐oriented society such as Oman, UAE and Qatar", he said, adding the peak year for realty industry was 2007 and it dropped in 2008 but again came up in 2009. The Turkish iron at Bahwan registered the lowest price that was RO 260 per tonne, and it fell down in Al Ansari to RO 262 down from RO 267 two weeks ago, while other companies were running short of Turkish iron. The total price of iron imported from Qatar per tonne was RO 260 in Bahwan and RO 265 at the Oman Company of building materials. The Periodic Survey conducted by the Department of Consumer Protection in the Ministry of Commerce and Industry includes four distribution points which are Bahwan Inc, Al Ansari, Middle East and Oman for the construction of building materials. It includes four types of iron, namely Sharq Sohar and Majan, and iron imported from Qatar, UAE and Turkey. Source: Oman Observer Oman Investment & Finance get Electricity Contracts for Capital and Interior Regions …………21 Oct 2010 This is to inform, that following four tenders were floated by the Tender Board in relation to Electricity contracts in the Capital and interior regions of Oman. Our Company has submitted bids for all these tenders. Details of the four tenders are listed below: Tender No 228/2010 – Rural Area Electricity Company SAOC. Details‐ Meter Reading, Bill Production, Collection and Deposit into Rural Areas Electricity Company.
News & Financial Announcements
Tender No 250/2010 – Muscat Electricity Distribution Co. SAOC. Details‐ Engagement of a company to perform meter reading, bill production, bill delivery, payment collection & deposit into the Supply Licensee’s bank account, Account Reconciliation and Information. Tender No 252/2010 – Majan Electricity Company SAOC. Details‐ Engagement of a Company to perform Meter Reading, Bill Production, Bill Delivery, Payment Collection and Deposit into the supply Licensee’s bank account, Account reconciliation and information reporting. Tender No 271/2010 – Mazoon Electricity Co. SAOC. Details‐ Engagement of Company to perform Meter Reading, Bill Production, Bill Delivery, Payment Collection & Deposit into the Supply Licensee’s Bank Account, Account reconciliation and information reporting. Source: MSM
Transport ministry signs 10 pacts worth 75.8m rials………………24 Oct 2010 Ten agreements worth 75,822,787 rials, related to the development of civil aviation, ports, roads and land transportation, were signed on Saturday at the Ministry of Transport and Communications. The agreements are part of the government’s bid to develop the infrastructure to activate the role of these sectors for the benefit of national economy. The agreements were signed on behalf of the Sultanate’s government by HE Dr Khamis Bin Mubarak Al Alawi, Minister of Transport and Communications, and general managers of respective companies. In the civil aviation sector, the first agreement worth 27,855,604 rials was signed with Strabag Oman company for the construction of Sohar Airport in the Al Batinah region (second stage). The second agreement worth 4,377,670 rials was signed with the Arabian Catering and Contracting Company for the development of civil aviation houses. The third agreement worth 355,379 rials was signed with Oman College for Aerial Observation and Control for training and rehabilitating Omanis for the airport projects. In the field of ports and marine affairs, first agreement worth 38,925,617 rials was signed with Galfar Engineering and Contracting Company for the construction of a harbour and road network in Al Halalaniyat Islands in the Dhofar Governorate. The second agreement worth 616,000 rials was signed with Spring International Company for consultancy services for technical and economic feasibility study, for preparing designs, supervision of implementation, management studies and operation of Shinas Port Development (first stage). In the roads and land trans portation sector, the first agre ement worth 2,800,000 rials was signed with Oman Renaissance Company for the design and construction of a road from Al Zahiyah to Uwaifiyah/ Qarat Al Milh in the wilayat of Adam in the Al Dakhiliyah region. The second agreement, worth 543,000 rials was signed with Wadi Al Shaab Trading and Contracting for the construction of Al Ghamb and Al Jahl road in the Niyabat of Tiwi in the wilayat of Sur in the Al Sharqiyah region. The third agreement worth 242,000 rials was signed with United for Road Works and Maintenance for the design and construction of Hail Al Hareem / Ghabrat Al Tam road and Al Qabriyah road in the wilayat of Dima Wal Tayeen in the Al Shar‐qiyah region. The fourth agreement, worth 198,000 rials was signed with United for Road Works and Maintenance for the construction of dirt roads in the Niyabat of Al Jabel Al Akhdhar in the wilayat of Nizwa in the Al Dakhiliyah region. The fifth agreement worth 126,290 rials was signed with Consier and Co for Engineering Services company for the consultancy services for the supervision of the design and implementation of road connections in Hamra’a Al Dro’a in the wilayat of Ibri in the Al Dhahirah region. Source: ONA Shell Oman Marketing posted a net profit of RO 11.28mn in 9M'10………………24 Oct 2010 Shell Oman Marketing revenue at RO 82.9mn in Q3’10 was up by 7.8% y‐o‐y and on quarterly basis it increased by 2%. Net profit was +10.1% y‐o‐y (+10% q‐o‐q) at RO 4mn in Q3’10 compared to RO 3.69mn in Q3’09 and Q2’10. Net profit margin slightly improved to 4.9% in Q3’10 from 4.5% in Q2’10. Comparing 9M’10 performance ‐ revenue increased by 10% from RO 217.4mn in 9M’09 to RO 239.2mn in 9M’10. Source: Company announcement and OABINVEST Al Omaniya 9‐month profit jumps 10%………………25 Oct 2010 Al Omaniya Financial Services nine month profit after tax (PAT) rose by 10 per cent to touch 2,903,000 rials compared to a 2,639,000 rials in the same period last year. According to a statement released on Sunday, the hire purchase assets of the company rose by 15 per cent to touch 132 million rials compared to 115 million rials in the same period last year. The company has provided 940,000 rials towards allowance for impairment for the period. The total provision stands at 6.374 million rials as of September 30, 2010. “The economic climate in Oman looks extremely positive. The growth will continue albeit at a slower pace. The credit growth is witnessing moderate growth. With stable oil prices and continued government spending on infrastructure projects, augurs well for the economy. The Muscat Securities Market also shows positive signs. This has created optimism and confidence in the market,” Al Omaniya chief executive officer Aftab Patel said. Patel further stated that the company has successfully raised 7.7 million rials unsecured compulsorily convertible bonds through rights issue. “This will help the company to improve its liquidity and will enhance the capital structure.”“The company therefore maintains very positive outlook for the year’s performance and is expected to continue its track of increased earning and dividends on the strength of robust asset size and increased lending opportunities,” he added. The company continues to maintain its number one position as the Sultanate’s Largest Non‐Banking Financial Institution with largest asset size, market capitalisation, net worth, lowest non‐performing loan and highest profit, the firm said in the statement. Source: Oman Tribune Omantel, MSM sign major MPLS deal………………25 Oct 2010 Omantel and Muscat Securities Market (MSM) on Sunday signed an agreement to connect the banks and brokerage firms dealing with the market through a cyber network using Multi‐Protocol Label Switching (MPLS) system. The service provides a different range of bandwidths to suit the specific demands of the 26 sites that will be connected through Omantel’s MPLS cloud system –
News & Financial Announcements
with the cloud acting as a hub to connect the MSM and the different bank and brokerages without the need of leased lines.“Moving away from traditional leased lines to MPLS technology enables companies to save cost and delivers a greater return on investment for the companies who sign up to use the solution,” said the Sultanate’s telecom giant. The new contract will help to boost the financial institutions’ trading efficiency with the MSM and the new system will be administered by Omantel’s Corporate Business Unit, added the firm.“This is an important development for the MSM and the banks and brokerages houses. The installation of the new MPLS system will help us to ensure that our transactions are more secure, faster and efficient than in the past,” MSM Operations and Surveillance deputy general manager Sulieman Mohamed Al Rashdi said. “This agreement is an important step in helping to enhance the effectiveness of the Muscat Securities Market and the banks and brokerage houses that interact daily for trading purposes on the stock market here,” Omantel VP Finance and acting vice‐president Corporate Business Unit Talal Al Mamari said. “This deal will provide a more comprehensive back‐up system for all of us as it will connect the banks and brokerage houses with Disaster Recovery Centre and will help to ensure that MSM continues to incorporate and use the most advanced technology for our operations now and in the future,” MSM IT Director Humoud Talib AL Shaqsi said. “The agreement is supported by a Service Level Agreement (SLA) that guarantees a 99.99 per cent standard quality throughout the year. Omantel monitors the MPLS traffic through its advanced Network Management Centre that works round‐the‐clock to monitor all sites and ensure remote failure repairs,” Al Shaqsi added. “Omantel’s MPLS solution allows seamless integration of voice, data, and video applications on the same network and has the capacity to grow with the individual demand of the business. The new technology will provide total back up for all parties,” Omantel Sales Manager Financial Sector Eng. Khaild Mohamed Al Raisi said. Omantel has already signed a number of agreements with several banks and leading companies operating in the Sultanate to link their branches in the various regions of the Sultanate via the MPLS technology. An agreement has also been put in place with the Oman Government as part of its ongoing efforts to strengthen e‐Government in the Sultanate. Source: Oman Tribune Ministry approves 24.1m‐rial projects………………25 Oct 2010 The Ministry of Finance on Sunday okayed five agreements and one change order worth 24,178,000 rials, as part of the government’s plan to implement a slew of development projects in the Sultanate. The major projects that got the ministry approval included the construction of Masirah Hospital in the Al Sharqiyah region worth (13.5 million rials) with an implementation duration of 25 months, implementation of the project ‘Hasik’ in the Governorate of Dhofar worth 5.37 million rials with implementation duration of 554 days and the construction of a building for Wadi Al jizi basic education school in the Wilayat of Sohar worth 804,000 rials with implementation period of 379 days. Project to construct a basic education school at Qalhat in the Wilayat of Sur (735,000 rials) and the construction of a Veterinary Laboratory in the Wilayat of Bidbid (649,000 rials) were also got approved. The ministry also approved a change order of the project to construct a dry dock in the Wilayat of A’Duqm, Al Wusta Region (3,112,000 rials). Source: ONA Oman GDP to grow over 6% in 2010………………26 Oct 2010 The Sultanate forecast the gross domestic product (GDP) to grow by over 6 per cent in 2010, the Minister of Commerce and Industry HE Maqbool Bin Ali Bin Sultan said on the sidelines of the OER Debate 2010‐The Way Ahead. “The year 2009 ended on a positive note for the Sultanate’s GDP and although the growth rate was lower than usual owing to the global economic recession, it was much better than a lot of other countries, at 3.7 per cent,” said the minister of commerce and industry. However, the only way to ensure the country’s continued progress and development is to foster greater public‐private partnership, the minister said. “The private sector in Oman has made great strides in the progress and development of the nation, however, the government understands that the best way to come to terms with the nature and depth of challenges that we face as a nation today, is to ensure greater public‐private partnership.” According to him, the greatest challenge facing the country today is that of harnessing its human resource potential. “Finding jobs for youngsters remains the biggest challenge, and Oman is not alone in this respect. It is a worldwide problem, but the private sector here can do much to create jobs for young Omani citizens. What usually happens is that the private sector considers Omanisation as a burden. However, there is no greater investment that will give higher returns to a company, than investment in human resources. The real test lies in picking the best and most eligible youngster for a job, and I’m confident that the private sector can do a better job in this regard,” Maqbool said. The role of small and medium enterprises (SMEs) also need to be reassessed, the minister opined. “The number of SMEs in our country is large, but the role played by these enterprises in the growth of our GDP is limited. There is therefore, a need to re‐ examine and encourage the growth of SMEs in the country.” The OER debate was organised under the auspices of His Highness Sayyid Tariq Bin Shabib, editor‐in‐chief Oman Economic Review and Yahya Al Jabri, executive president, Capital Markets Authority. The panellists included Dr Mohammed Abdulaziz Kalmoor, Bank Sohar CEO, Wael al Lawati, Omran CEO, Pankaj Khimji, Khimji Ramdas Group director, Stephen R Thomas, OBE, CEO, Renaissance Services, Ross Cormack, Nawras CEO, Dr Mohammed Ali, Galfar Engineering and Contracting vice‐chairman and managing director, and Dr Brian Dennis Buckley, Oman LNG general manager and CEO. Source: Oman Tribune 706m‐rial projects awarded to expand Muscat airport………………26 Oct 2010 The Tender Board on Monday issued tenders worth 706,300,070 rials to construct new buildings and facilities at the Muscat International Airport. The first stage of the airport expansion project is expected to be completed in 38 months. The tenders were awarded at the board’s 28th meeting chaired by HE Dr Ali Bin Mohammed Bin Moosa, Deputy Chairman of the CBO board of governors and Chairman of the Tender Board. The board awarded tenders worth 897,188,500 rials. Once the new terminal is completed, Muscat International Airport will have the capacity to handle 12 million passengers annually. It will have 104 counters for passengers clearances and the main building will be 460 metres long and 200 metres wide. It will include a four‐star hotel with 90 rooms. The board also awarded tenders for the construction of a new control tower at the Muscat airport (56,576,746 rials),
News & Financial Announcements
leasing houses for employees at Oman Dry Dock company (117,087,154 rials), installation of the Scada system for the electricity distribution network in Muscat Governorate (6,825,510 rials), additional works for the construction of Hajeef/‐Jahnin/Aseer in Dhofar Governorate (649,054 rials), design, supply, installation, testing, integration and operation of TV sets for the Information Ministry (2,127,227 rials) and the supply of rice (1,554,053 rials). The board also awarded tenders for the construction of a co‐educational school of 16 classrooms at Hatt in the Wilayat of Al Rustaqin, Al Batinah region (821,473 rials), construction of a girls’ primary school at Falaj Al Sedereien, Wilayat of Yanqel, in the Al Dhahirah region (762,901 rials), fixing medical equipment in the Royal Hospital (764,716 rials), providing consultation services for Castle Hotel interior designing (730,538 rials) and additional works for the construction of engineering section in Shinas Technical College (699,446 rials). Other projects include constructing air quality observation units in Sohar Industrial Estate (580,000 rials), additional works of Nizwa Ibri dual‐carriageway from Jabreen to Ibri (476,840 rials), constructing housing units in Wilayat of Sohar, Al Batinah Region (416,240 rials), improving the electric networks in Wilayat of Khasab in Musandam Governorate (264,285 rials) and supplying medicines to the Ministry of Health (211,515 rials). The board also opened bids for the following tenders: Tender No. 8/2010, the project of Bidbid to Sur dual‐carriageway (1st phase). The tender No. (123/2010) providing consultation services for designing and supervising the development of Sahour Cave in Wilayat of Salalah, Dhofar Governorate. Tender No. (241/2010) supplying furniture to the premises of Ministry of Higher Education in the Airport Heights in Muscat Governorate. Tender No. (272/2010) offering temporary power services in the main network of the Sultanate for 2011. The Tender Board also approved a number of change orders concerning the projects being implemented. The meeting also discussed various issues concerning these projects and took appropriate decisions. Source: ONA Award of Omantel Contract to OIFC………………27 Oct 2010 OIFC: Further to our disclosure on October 20, 2010 and based on the letter received from Oman Telecommunications Company SAOG (Omantel) dated October 26, 2010, we are pleased to announce that the Tender No. 90/2010 floated by the Tender Board for “Factoring Services for Omantel’s and Oman Mobile’s Private Accounts Receivables” has been awarded to OIFC for a period of not less than three years commencing from January 1, 2011 at a commission rate of 3.90%.The company anticipates realisation of reasonable and sustainable profit margins form this Tender. Source: MSM website High‐powered body to oversee development of Duqm………………27 Oct 2010 Oman’s government is in the process of setting a high‐powered body to steer the development of Duqm into a world‐scale industrial and economic hub anchored by a seaport and ship repair yard. The proposed Duqm Authority, according to a top official of the Supreme Committee for Town Planning (SCTP), will oversee the phased development of a massive coastal tract covering an area of 1,276 square kilometres around the seaport. Muneer bin Baqir al Mousawi, Secretary‐General, said the Authority, whose establishment is due to be announced within “one or two months”, will be tasked with implementing the government’s vision for Duqm, billed as one of the Sultanate’s most ambitious industrial and urban initiatives. Speaking at the 1st Omani‐Spanish Business Forum, which began at Al Bustan Palace Hotel yesterday, Al Mousawi outlined the government’s strategy for transforming a largely barren coastal swathe into a future dynamo for industrial and economic development. Duqm, from Oman’s standpoint, is “at the centre of the world”, roughly equidistant from major economic cities such as London, Madrid, Beijing, Hong Kong, Shanghai, and so on. This promising strategic and geographical location will be suitably leveraged to develop a world‐class industrial and economic hub at Duqm, he noted. The Supreme Committee, which is overseeing the master‐planning of the Duqm Development, has already earmarked zones for the establishment of a Free Trade Zone, Industrial Park, Fishery Harbour, Tourism Zone, Residential Township and Airport, as well as dedicated areas for utilities, such as power and water, wastewater and solid waste management. Allocated within the Free Zone and Industrial Park are special sub‐zones for port related industries (373 hectares), fishery activities (1,430 ha), and other industrial and economic activities. Minerals processing, for example, has the potential to generate an estimated 4 million tonnes per year in dry bulk export cargo by the 2025, Al Mousawi said. Also prospective is the export of aggregate, limestone for the steel industry, limestone fillers, silica sand and quartzite. Fish exports alone are projected at 40,000 tonnes per annum. The industrial park will also house an oil refinery and petrochemicals complex, the Secretary‐General stated. An ongoing study by Oman Oil Company and IPIC of Abu Dhabi has yielded “positive signs” of the project’s feasibility, he said, adding that Duqm’s proximity to a great number of oil wells in the Wusta region also makes it an attractive location for the establishment of an oil export terminal. Al Mousawi identified a number of opportunities for economic investment in Duqm, including industry, fisheries, downstream petrochemicals processing, gas‐based industries, value addition activities, warehousing and cold storage, real estate and tourism.The land use plan for Duqm earmarks 2,422 hectares for tourism projects, the official said. One plot within this zone has already been allotted to state‐owned tourism investment vehicle Omran, which is developing a hotel resort. Another plot has been assigned to a private Omani developer. Additionally, Omran has signed an MoU with South Korea’s Daewoo Shipbuilding and Marine Engineering (DSME) to develop a resort complete with hotel, convention centre and marina, Al Mousawi said. Significantly, the Duqm master plan also envisages a sprawling Residential Zone made up of a total of 11 quarters each of around 100‐150 hectares. Fully equipped with all social amenities, each quarter will cater to a population of around 2000‐3000 residents. Around five quarters, offering a total of over 2000 plots for individual villas and multifamily units, will be developed in the initial stages.Longer‐term, the Residential Zone is designed to accommodate around 100,000 people over a 20‐year developmental timeframe. Substantial investments are also being made in the development of transport and utility infrastructure at Duqm, the Secretary‐General said. Six‐lane carriageways will link the seaport, airport and other economic centres, while plans are also afoot to build a 1000MW gas fired power plant to support the hub’s electricity needs. Potable water needs will be initially met by a 5.6 million gallons per day desalination plant. Source: Oman Observer
News & Financial Announcements
RO500m earmarked for desalination plants ………………27 Oct 2010 Public Authority for Electricity and Water (PAEW) is expected to spend over RO500 million over the next five years on transmission and network station to extend the coverage of desalinated water to the largest percentage of population, said Mohammed bin Abdullah Al Mahrouqi, chairman of PAEW. He was speaking as chief guest at a seminar conducted by Medesa GmbH and the German Industry & Commerce Office Muscat (AHK) on the advantages of compressed mechanical vapour desalination technology at Crown Plaza Hotel Muscat yesterday. "This is the kind of investments that would be required on desalination plants and a large percentage of this will be funded by the private sector," he added. Intention of the seminar was to introduce a more efficient and environment friendly process to desalinate sea water and was especially suited for small to middle size requirements of potable and industrial fresh water. Al Mahrouqi informed that PAEW is taking a number of initiatives including updating the water master plan which was completed in 2009 conducting a water security study from Oman which has been completed and currently under review by government for approval and recommendation. Saying that water desalination in Oman like other countries has its own challenges, he said, "in recent years red tides has caused a big challenge to the functioning of desalination plants in Oman. This challenge is likely to continue and PAEW seeks to explore new techniques to solve this problem." Angelika Storz‐Chakarji, the German ambassador in Oman gave a brief on the excellence of German technology in the field of water desalination. Dietmar Tietz, managing director, Medesa Technology GmbH and Clause Mertes, managing director DMR German desalination, were the other prominent speakers at the seminar. Source :Times of Oman Sultanate 4th in Economic Efficiency indicator………………28 Oct 2010 The Sultanate was ranked fourth in the Economic Efficiency Indicator for 2010‐2011, which was included in the Arab Competitiveness Report 2010 published by the World Economic Forum and published on its website on Tuesday night. As per the indicator which measures the quality of the product and the development of capital market, the employment of available technology and growth in adopting innovation, the Sultanate came after Qatar, Saudi Arabia and Tunisia on the Arab level and 34th on the international level. The Sultanate went up seven positions at the Economic Efficiency Indicator compared to the ranking in 2009‐2010 when the Sultanate was ranked 41st on the international level. The Sultanate also came fourth in the overall indicator for the Arab competitiveness for 2010 after Qatar, Saudi Arabia and Tunisia. The Sultanate came on the 34th place on the intentional level. The report affirmed that the advanced ranking earned by the Sultanate came as a result of the improvements witnessed by the Omani national economy in the last few years. It pointed out that this improvement reflects the Sultanate’s commitment to accelerate the pace of economic development which aims at diversifying sources of national economy, reducing reliance on oil sector and ensuring sustainable economic growth. It pointed out that the economic development started in mid 1990 and was crystallised in Oman Vision 2020, which was unveiled by the government. The report added that the outcomes point out the Sultanate’s competitive stance benefited from two main factors, namely the strong institutional framework and the excellent macroeconomic environment. The Sultanate benefited from efficiency, transparency, good performance of the public institutions which are mainly attributed to the efficiency of the government, the report said. The report added that it is not strange then that the stability degree of the Omani economy is high and moving forward. It pointed out to the importance of going ahead with the steps taken to develop education and public health system both on the qualitative and quantitative levels to place the future economic growth of the Sultanate on solid ground. The quality of education has witnessed improvement in the last years which helped the Sultanate from the 63rd place in 2008 to the 52nd place in 2010. This reflects the efforts undertaken as part of Oman Vision 2020. Source: ONA Investments in Oman’s solid waste sector set to cross RO 2.5bn over 10 years………………28 Oct 2010 Oman’s solid waste sector is expected to attract investments in excess of RO 2.5 billion over the next decade, according to a top official of Oman Environmental Services Holding Company SAOC (OESHCO), which has the mandate to restructure and privatise this sector. Azhar Haroun al Kindi (pictured), Chief Executive Officer of the state‐owned holding company, said the investments will go into the development of state‐of‐the‐art solid waste management infrastructure, complete with landfills, waste treatment plants and waste transfer stations. Addressing the 1st Omani‐Spanish Business Forum, which concluded at Al Bustan Palace Hotel yesterday, he said the solid waste sector will offer significant potential for private investment as OESCO embarks on the process of restructuring and privatising the sector. Almost all of the country’s total solid waste, currently estimated at 1.5 million tonnes per year, ends up in landfills, for want of suitable recycling or treatment facilities, according to the official. The waste is currently disposed of at 350 landfills located around the country, of which only two are engineered sites. The remainder, along with the country’s solitary hazardous waste storage site and waste transfer station, must be rehabilitated or shut down under the government’s strategy for modernising the solid waste sector, he said. Set up by Royal Decree in August 2009, OESHCO’s vision is ‘To Move Oman Towards Zero Waste’ by providing safe, efficient and economical environmental services in innovative ways, said Al Kindi. National strategies drawn up by the holding company envisage a holistic approach to solid waste management, covering all aspects of the chain — from prevention and minimisation of waste, to classification and segregation, recycling, composting, treatment, re‐use, recovery and landfill management. OESHCO is also supporting the development of a regulatory framework, underpinned by a new Sector Law, that addresses the gamut of solid waste management issues. As part of this regulatory framework, the holding company will promote public awareness campaigns, formulate waste policies and enforcement norms, draw up tariff structures for waste collection and disposal, and outline standards for waste collection, transport and landfill management. Based on the recommendations of the National Solid Waste Management Strategy, OESHCO has identified the need for a series of projects to be developed on an ‘emergency’ basis, said Al Kindi. They include 16 engineered landfills, 65 waste transfer stations and four waste treatment plants, all of which are planned for implementation over the 2011‐2015 timeframe. Documentation work in preparation for their tendering is currently underway,
News & Financial Announcements
he said. In addition, a host of ‘fast track’ implementation are envisaged under the strategy. They include proposals for a new landfill in Muscat, a solid waste management project in Barka, a medical waste treatment and disposal facility in Dhofar Governorate and a National Hazardous Waste Management project at Adam in the Interior Region. Projects and programmes lined up for implementation during the 2016‐2020 timeframe will address all issues across the solid waste chain, from waste generation, collection and transportation to treatment and disposal. In his presentation, Al Kindi also outlined opportunities for private sector participation in the solid waste sector. Private firms, he said, can provide advisory services on the construction of waste facilities, transfer schemes, standards and operations, and tariffs. Experienced firms can also play a part in the design, construction, operation and management of waste infrastructure, waste‐to‐energy plants, treatment facilities, engineered landfills and waste transfer stations. Source: Oman Observer Al Jazeira Services Company posted a net profit of RO 1mn in 9M'10………………28 Oct 2010 Al Jazeira Services Co. reported an increase of 20.1% y‐o‐y (+2.8% q‐o‐q) in revenue at RO 2.48mn in Q3’10. Operating expenses as percentage of revenue remained flattish at 76.7% on a quarterly basis. The company registered 62.5% y‐o‐y (+4% q‐o‐q) increase in its operating profit to RO 0.578mn in Q3’10. In addition, a notable increase in gain from investments to RO 0.299mn in Q3’10 compared to a loss of RO 0.738mn in Q2’10 played a key role in supporting the bottom line which registered a net profit of RO 0.877mn in Q3’10 compared with net loss of RO 0.182mn registered in Q2’10. Source: OABINVEST, Company Announcement Oman Oil Marketing Company posted a net profit of RO 4.88mn in 9M'10………………28 Oct 2010 The company disclosed initial results for the period of 9M’10. Oman oil reported sales at RO 56.62mn in Q3’10 increased by 26.8% y‐o‐y (up 2.18% q‐o‐q). Net profit in Q3’10, +was 0.67% y‐o‐y to RO 1.56mn (although compared to Q3’10, it declined by 9.83%). Source: OABINVEST, Company Announcement
Certificates of deposit tender results………………31 Oct 2010 Certificates of deposit (Issue No 691) tender was held at the Central Bank of Oman (CBO) last week. The total amount allotted was RO 348 million. A bulletin issued by the CBO stated that the average interest rate of these certificates was 0.06 per cent while the maximum accepted interest rate was 0.07 per cent. The tenor of these certificates is 28 days so their maturity date is of November 24. The certificates of deposit issued to licensed banks by the CBO as a monetary policy instrument aimed at absorbing excess liquidity. The Repo rate during October 27 to November 2 is 2 per cent. Source: ONA Sohar Aluminium smelter expansion proposal in pre‐feasibility stage………………31 Oct 2010 Oman Oil Company SAOC (OOC), which owns a 40 per cent stake in Sohar Aluminium, is hopeful that a long‐standing proposal to expand the capacity of the $2.4 billion smelter will come to fruition. On Wednesday, a top executive of the state‐owned company which has major investments in the energy, petrochemicals and industrial sectors, revealed that moves towards a possible expansion of the giant smelter were in the “pre‐feasibility” stages. “I think, subject to meeting other conditions, an expansion is likely,” Mulham al Jarf, Deputy CEO, Oman Oil Company, said. “We are already looking at the pre‐feasibility of that, but this will be largely driven by gas availability,” Al Jarf added in comments to journalists on the sidelines of a joint Omani‐Spanish Business Forum, held at Al Bustan Palace Hotel. Asked about the scope of the expansion envisaged by shareholders, Al Jarf said: “It would have to be a full (additional) line, which today is 360,000 metric tonnes.” Any eventual decision to proceed with the expansion of project, which hinges largely on a government commitment to provide additional natural gas volumes, would lead to the establishment of a mammoth smelter of a world‐class capacity of 720,000 metric tonnes per annum. Sohar Aluminium is also owned 40 per cent by the Abu Dhabi National Energy Company (TAQA), which is a subsidiary of the Abu Dhabi Water and Electricity Authority (ADWEA), and 20 per cent by mining giant Rio Tinto Alcan. The company also owns and operates a state of the art 1,000 MW combined cycle captive power plant. Earlier, in a presentation at the Omani‐Spanish Business Forum, Mulham al Jarf outlined Oman Oil Company’s expanding investment footprint within the Sultanate and across the globe. Incorporated in 1996 to pursue investment opportunities in the energy sector both locally and internationally, OOC plays an important role in the Sultanate’s efforts to diversify the Omani economy and to promote Omani and foreign private sector investment, Al Jarf said. Significantly, the wholly government owned investment vehicle now boasts an impressive portfolio of 32 investments in nine countries spanning the energy value chain. These investments cover seven key areas: Hydrocarbon Exploration and Production (27 per cent), Energy Infrastructure (10 per cent), Refining and Marketing (34 per cent), Petrochemicals (15 per cent), Power (per cent), Shipping (2 per cent), and Metals (9 per cent). In addition to sizeable investments in the Sultanate, Oman Oil also has investments in China, India, Pakistan, Spain, Hungary, South Korea, Kazakhstan and the GCC, he noted. Later, in comments to journalists, Al Jarf outlined initiatives by Oman Oil to strengthen its upstream activities in the Sultanate through the establishment of a dedicated operating company. “As you know, we get a 20 per cent right to participate in any new exploration blocks during their development phase. Our strategy now is to build up our own operating company. We have spun off a dedicated upstream company to focus and manage those investments.” Asked about plans for Block 60, which was recently relinquished by international energy firm BG, he said Oman Oil had been asked by the government to “take it forward”. “Yes, we are reviewing it for the government; we are looking at it now,” Al Jarf stated. In June, BG announced its decision to exit from Block 60, an onshore concession covering an area of around 1,500 sq km, and which includes the Abu Butabul gas and condensate reservoir. BG’s departure, Al Jarf said, had “nothing to do with the asset itself”, but “with its own priorities as a global company”. More about the Abu Butabul field’s promising hydrocarbon potential, he added, would be known over the next few months. Significantly, Oman Oil is also exploring the potential to set up its own power company in the Sultanate. “We are studying creating our own power development company. We are in the process of it. We have enough captive power plants in Oman, whose
News & Financial Announcements
experience we can use to develop it further. We have Sohar Aluminium with 1000MW and OMIFCO with 120MW; so we have quite a bit of experience in this regard,” Al Jarf stated. Source: Oman Observer Nawras shares to begin trading tomorrow………………31 Oct 2010 Nawras announced that following the successful completion of its IPO, at the request of the Capital Markets Authority (CMA), the first day of trading for Nawras shares has been brought forward to Monday, November 1. The shares will trade under the ticker symbol, nwrs. The IPO involved the sale of 40 per cent of the share capital of Nawras and raised a total of RO 182 million for the selling shareholders, which include TDC‐Qtel MENA Investcom, which is controlled by Qtel, and a number of Omani pension funds. Based on the IPO offer price, the initial market capitalisation of Nawras is RO 456 million ($1.18 billion). Commenting on the announcement of the price range, Shaikh Salim bin Mustahil al Maashani, said: “We’re very proud to have completed the biggest IPO in Oman since 2005. As of this morning, we are a top 5 Omani company by market capitalisation, an enormous achievement in only five years since the launching services in 2005. We warmly welcome our new investors to the Nawras family.” Ross Cormack, Chief Executive Officer of Nawras, added: “The success of our IPO underlines the fact that the investment community shares our enthusiasm for the Nawras story and for the company’s future. We look forward to working to fulfil our promise to our shareholders of value creation by continuing to change the telecommunications landscape in Oman and offering pleasingly different services. Source: Oman Observer Contract for Salalah Airport soon………………31 Oct 2010 A much‐awaited contract for the modernisation of Salalah International Airport is due to be awarded shortly. In contention for the prestigious contract, with an estimated value in excess of RO 300 million, are three well‐known bidding groups: the joint venture of Larsen & Toubro and Galfar Engineering & Contracting, which has submitted the lowest bid; followed by the joint venture of Alsim Alarko and NCC; and J&P. The contract is the second largest in value of a total of five main packages covering the modernisation and expansion of Muscat and Salalah international airports. The biggest of these packages, centring on the construction of the Muscat International Airport terminal, was awarded last week at a cost of RO 706 million. The selected bidder will win a contract to build an international‐class gateway in Salalah that has the potential to give robust impetus to socio‐economic development in Dhofar Governorate. Tourist traffic and tourism investment in the region are expected to soar when the upgraded airport is operational by around the year 2014. As with all airport projects, the Ministry of Transport and Communications is overseeing the modernisation of Salalah International Airport. As part of the upgrade, a new passenger terminal covering an area of 71,000 sq metres will be built with a capacity to cater to one million passengers per annum. A new 4km‐long runway, large enough to handle even the superjumbo Airbus A380, will be built. Also envisaged as part of the airport’s modernisation are a state‐of‐the‐art air traffic control tower, fuel farm, passenger boarding bridges, cargo terminal, MRO facility, catering building and other facilities. The upcoming contract award will bring to a close a keenly contested tendering phase for the high‐profile project.A tender for the modernisation of Salalah Airport was first floated two years ago. Three prequalified bidders — Alsim Alarko/NCC JV, Larsen & Toubro/Galfar JV and J&P — submitted offers. Recently, the Tender Board issued a revised project scope and invited all three parties to submit their final offers. Those final offers were opened last week. According to observers, the protracted course of the tendering process reflects the complex and challenging nature of the airport contract — a project that only firms with robust experience in airport development can successfully undertake. Moreover, each bidder’s ability to adopt an integrated approach to executing a myriad of complex project components is also being carefully evaluated by authorities. All three bidders have varied expertise in airport development to their credit. L&T, which has joined hands with Galfar to bid for the Salalah Airport project, has completed three of the largest airport developments in India, and is also upgrading the Mumbai International Airport. Galfar has executed the Engineering‐Procurement‐Construction package of three airports built for Petroleum Development Oman (PDO). Partners in the Alsim Alarko/NCC JV have experience in airport construction in Turkey and CIS countries. J&P has to its credit, among other contracts, the construction of the existing Salalah Airport. A 30‐month construction time frame has been specified for the execution of the Salalah Airport package. The design of the airport will allow for future expansions to be undertaken with relative ease. The modernised airport will also serve as an international and domestic hub for sea cargo in conjunction with the Port of Salalah and the Salalah Free Zone. Source: Oman Observer
Passenger traffic increases at Muscat, Salalah airports………………31 Oct 2010 The total passenger traffic through Muscat International Airport has increased by 28 per cent to 4,210,902 passengers during the first nine months of 2010 compared to 3,293,460 passengers for the same period in 2009. Statistics issued by Oman Airports Management Company pointed out that the number of arriving passengers (excluding transit passengers) at Muscat International Airport increased by 14 per cent to 1,459,783 during the first nine months of 2010 compared to 1,281,442 in the same period of the year 2009. The number of departing passengers (excluding transit passengers) increased by 17 per cent to 1,416,565 passengers as at the end of September 2010 comparing to 1,214,345 passengers during the same period of 2009. The increase in arrival and departure traffic into and from Muscat International Airport is attributed to several reasons. They are increase in economic and tourism activity, operation of new airlines such as Fly Dubai and Kenya Airways, the increase in the number of flights by some airlines such as Air India Express, Shaheen Air International, Pakistan International Airlines and Air Arabia and the increase in the number of Oman Air flights and expanding its flights. The civil airplanes movement in Muscat International Airport witnessed an increase by 25 per cent during the first nine months of 2010 to 49,881 flights compared to 39,753 flights duirng the same period in
News & Financial Announcements
2009. Meanwhile, Salalah Airport witnessed an increase by 5 per cent in the total number of passengers to 338,827 passengers during the first nine months of 2010 compared to 321,791 passengers for the same period of 2009. Source: Oman Observer
Majan Electricity plans expansion ………………31 Oct 2010
Eng. Ahmed bin Saif Al Mazrouy, the general manager of Majan Electricity said that the company is investing RO25 million per annum in the implementation of investment projects and extension of power networks. The company seeks to improve service in order to allow these networks to serve the largest base in all sectors, he added. In a statement, Al Mazrouy pointed out that the company primarily concentrates on investment in the industrial estate projects to provide infrastructure, whether in the areas under control of the Sohar Industrial Estate or the estates affiliated to the Public Establishment for Industrial Estates (PEIE). He indicated that the company would invest RO10 million in the next three years to reinforce the volume of electricity in these estates to meet the growing power needs. Al Buraimi : He also said that the company would invest RO5 million in the next three years in the indusial estate of Sohar port, for expansion of 250 mega watts, in addition to the current 200mw being supplied. It will also invest RO500,000 for generating 50mw at the Sohar Industrial Estate affiliated to PEIE, thus making the total capacity of 150mw after three years. Al Mazrouy said that another expansion is expected in Buraimi with 150mega watts at the cost of RO2.5 million, making the total capacity to 200mw, as well as, additional expansion of 50 mw in the Ibri Industrial Estate at the cost of RO2.5 million, making the total capacity to 100 mw. It will also improve the Dhahirah electricity distribution networks in order to provide power for the industrial housing and commercial usage. The general manager also stated that Majan Electricity, in cooperation with Sohar port company, are preparing an initial study about the financial prospects of implementing the infrastructure of the port free zone as it is expected that the electricity investment would be RO1 to 2 million. 138,000 customers : For the volume of consumption, he said there are about 138,000 customers, consuming 3.7gw/h and it is expected to increase to 4.5gw/h next year, thus increasing the power consumption by 12 per cent, while the company income recorded RO46 million, uncovered by the government subsidy which forms two thirds of the company revenue. Al Mazrouy said that the company is currently covers 99 per cent of the areas franchised, including the northern Batinah region, the Buraimi governorate and Dhahirah region, indicating that the power covers almost all these areas excluding some border farms. He explained that the highest growth with regard to customers was in the industrial sector by 20 per cent compared to 2008. The percentage of domestic customers represented the highest weight from the total number of customers at 77 per cent, which increased by 5 per cent from 2008. The highest percentage of energy was distributed to the domestic sector, which was more than 50 per cent from the total energy distributed followed by the commercial sector (19 per cent) and the industrial sector (15 per cent) from the total distributed energy. Saving electricity : Al Mazrouy also indicated that the company pays much attention to the awareness amongst the customers regarding the importance of electricity rationalisation since 2007. There is good response from customers as they have started using phosphoric lamps that save electricity compared to the normal lamps. He called upon the industries to rationalise the electricity usage and try to avoid the production process during peak hours. He said that the major challenge for the company is to meet the growing electricity demand that records about 11 per cent, surpassing some of the countries, which normally does not exceed 20 per cent. It requires huge investment and budgets, in addition, to other challenges concerning the spread of awareness about the electricity rationalisation amongst the customers, as well as, the hygiene and safety challenges. He also said despite unpaid balances of RO12 million, the company is satisfied about the customers' response, indicating that Majan Electricity exerts much efforts to collect such unpaid balances. He indicated that the existence of electricity linkage between the Gulf Cooperation Council states would help the electricity companies to provide more power, particularly during peak hours. Regarding the Omanisation percentage in Majan Electricity, the general manager said that out of 246 employees, 236 are Omanis, which constitute about 93 per cent of the total company manpower, ensuring that the company aims at increasing this percentage. It is worth mentioning that Majan Electricity company was established after the restructuring process of the electricity sector as per the Royal decree. Source: Times of Oman
GCC MENA IPO Tracker
Status Terms Date Country Equity Offered
Announced CNIA Saada Assurance 02Nov10 - 05Nov10 Morocco 15.00%
Announced Aman Syria for Takaful Insurance Q4 2010 Syria 51.00%
Announced Axiom Telecom Q4 2010 UAE 35.00%
Announced Saudi Aramco Total Refining and Petrochemical Company Q4 2010 Saudi Arabia 25.00%
Announced Al Aqeeq Real Estate Development Company H2 2010 Saudi Arabia 50.00%
Source Zawya Dow Jones
OAB–IMG Team (www.oabinvest.com) ‐ Asset Management 24762308; Brokerage 24762324; Corporate Finance 24762305; Research 24762317;
Private Banking 24762338; NRI Services 24762307; Customer Service 24762321
OAB–IMG Team (www.oabinvest.com) ‐ Asset Management 24762308; Brokerage 24762324; Corporate Finance 24762305; Research 24762317; Private Banking 24762338; NRI Services 24762307; Customer Service 24762321
GOVERNMENT DEVELOPMENT BONDS
Issue No. Maturity Date Issue Value (RO) Coupon Listing Date
31 Nov. 3, 2010 70,000,000 5.25% Jan. 12, 2004
34 Nov. 1, 2010 52,000,000 5.00% Jan. 25, 2005
35 Aug. 3, 2013 80,000,000 4.00% Sep. 10, 2008
36 Sep. 6, 2012 50,000,000 4.00% Oct. 4, 2009
Oman Arab Bank - IMGMain Indicators for Components of MSM Index-30
Last Closing
Annualized 31/10/10
Banking & Investment Sector
Bank Muscat BMAO.OM 9M'10 96,267 -10.2% 0.875 1,178,115 20.85% 36.57% 12.24 1.65 2.29%
Bank Dhofar BDOF.OM 9M'10 33,867 17.9% 0.771 627,243 11.10% 19.47% 18.52 2.88 1.95%
National Bank of Oman NBO.OM 9M'10 28,913 10.8% 0.359 388,079 6.87% 12.05% 13.42 1.59 3.34%
Oman International Bank OIB.OM 9M'10 17,257 -16.8% 0.257 234,705 4.15% 7.29% 13.60 1.49 8.56%
Bank Sohar BKSB.OM 9M'10 11,019 86.1% 0.220 220,000 3.89% 6.83% 19.97 2.03 0.00%
Ahli Bank AHBK.OM 9M'10 13,817 71.0% 0.272 193,769 3.43% 6.01% 14.02 2.05 2.57%
Oman Int. Dev. & Inv. (OMINVEST) OMAN.OM H1'10 11,452 -13.1% 0.421 96,830 1.71% 3.01% 8.46 0.66 2.38%
Dhofar Int. Dev. & Inv. Holding (DIDIHC)
DIDI.OM H1'10 8,902 -44.7% 0.517 103,400 1.83% 3.21% 11.62 1.51 5.80%
Oman Nat. Inv. Corp. Holding ONIC ONIC.OM H1'10 20,119 158.9% 0.401 66,231 1.17% 2.06% 3.29 1.59 4.99%
Oman Inv. & Finance (OIFC) (March 31)
OIFL.OM H1'10 2,928 -26.6% 0.243 29,160 0.52% 0.91% 9.96 1.71 4.12%
Global Financial Investments GFIC.OM H1'10 467 -88.3% 0.075 22,500 0.40% 0.70% 48.18 0.60 0.00%
Oman & Emirates Holding OEIO.OM H1'10 -587 75.9% 0.197 24,009 0.43% 0.75% NA 1.05 0.00%
Al Anwar Holdings (March 31) AITC.OM Q1'11 988 -66.5% 0.157 17,270 0.31% 0.54% 17.48 0.85 3.82%
Gulf Investment Services GIS.OM 9M'10 851 -53.2% 0.085 12,770 0.23% 0.40% 15.00 0.71 8.24%
Financial Services Co. FSPP.OM 9M'10 -1,002 -179.3% 0.118 7,670 0.14% 0.24% NA 1.02 0.00%
Sector Aggregate 245,258 14.37% 3,221,752 57.03% 100.00% 13.14 1.68 2.85%
Industry Sector
Raysut Cement RAYC.OM 9M'10 25,379 -21.3% 1.256 251,200 4.45% 29.46% 9.90 2.37 7.96%
Oman Cement OCCO.OM 9M'10 30,413 34.9% 0.628 207,788 3.68% 24.37% 6.83 1.43 5.89%
Oman Flour Mills (June 30) OFM.OM FY'10 8,407 72.3% 0.633 99,698 1.76% 11.69% 11.86 2.12 1.90%
Oman Cables Industry OCAB.OM 9M'10 7,736 68.4% 1.259 112,932 2.00% 13.24% 14.60 2.51 2.38%
Al Anwar Ceramics Tiles AACT.OM 9M'10 5,559 8.5% 0.319 51,756 0.92% 6.07% 9.31 2.29 0.00%
Al Jazeera Steel Product Co. AJTM.OM 9M'10 2,031 285.1% 0.311 38,843 0.69% 4.56% 19.12 1.26 0.00%
Al Hassan Engineering HEC.OM H1'10 2,070 10.7% 0.525 39,484 0.70% 4.63% 19.07 2.94 2.67%
P/Bx Div.%Cap. to
Market %
% to Sector Index
P/ExCompany NameReuters Ticker
Financials Date
Net Profit (RO.'000)
%chg Market Cap. (RO. '000)
Voltamp Energy VOES.OM 9M'10 2,664 38.4% 0.581 31,955 0.57% 3.75% 12.00 2.11 6.02%
National Aluminum Products NAP.OM 9M'10 2,147 -15.4% 0.567 19,035 0.34% 2.23% 8.87 2.82 10.58%
Sector Aggregate 86,406 17.07% 852,691 15.09% 100.00% 9.87 1.97 4.90%
Services & Insurance Sector
Oman Telecommunications Co. (Omantel)
OTL.OM H1'10 122,000 -16.4% 1.201 900,750 15.94% 57.20% 7.38 2.28 8.33%
Renaissance Services RSC.OM H1'10 19,576 -1.5% 0.899 253,599 4.49% 16.10% 12.95 1.49 1.33%
Shell Oman Marketing SHEL.OM 9M'10 15,045 11.3% 2.101 210,100 3.72% 13.34% 13.96 7.61 5.71%
Galfar Engineering & Contraction GECS.OM H1'10 3,172 -81.2% 0.577 173,100 3.06% 10.99% 54.57 2.19 1.73%
Al Jazeira Services AJS.OM 9M'10 1,342 -81.8% 0.208 23,237 0.41% 1.48% 17.31 1.48 4.81%
Oman Fisheries (March 31) OFC.OM Q1'11 -9 -100.4% 0.112 14,000 0.25% 0.89% NA 0.90 0.00%
Sector Aggregate 161,126 -21.34% 1,574,786 27.88% 100.00% 9.77 2.24 6.00%
Overall Aggregate 492,790 2.66% 5,649,229 100.00% 11.46 1.85 4.04%
Notes:Sorted according to Market Cap.For Shell Oman Marketing only ordinary shares are included in the market capitalization for the calculation of the index
Banking & Investment
Sector 57.0%
Industry Sector 15.1%
Services & Insurance
Sector 27.9%
Sector weight in MSM 30
1,800
3,300
4,800
6,300
7,800
9,300
10,800
1-N
ov-
09
15-N
ov-
09
29-N
ov-
09
13-D
ec-0
927-D
ec-0
910-J
an-1
024-J
an-1
07-F
eb-1
021-F
eb-1
07-M
ar-1
021-M
ar-1
04-A
pr-
10
18-A
pr-
10
2-M
ay-1
016-M
ay-1
030-M
ay-1
013-J
un-1
027-J
un-1
011-J
ul-
10
25-J
ul-
10
8-A
ug-1
022-A
ug-1
05-S
ep-1
019-S
ep-1
03-O
ct-1
017-O
ct-1
031-O
ct-1
0
1-year sectoral performance
Banks & Fin. Industrial Services
OAB–IMG Team (www.oabinvest.com) ‐ Asset Management 24827308; Brokerage 24827324; Corporate Finance 24827305; Research 24827317; Private Banking 24827338; NRI Services 24754314; Customer Service 24827321
Volume Turnover Trades High Low ClosePr
Prev.Close Diff % Diff
(OR)LastPr Last Offer Last Bid Security Cap Par
Value1,556,458 3,112,916 4 2.000 2.000 2.000 1.420 40.845 0.580 2.000 0.000 0.000 38,612,600.000 1.000
7,637,704 3,648,347 1,334 0.528 0.450 0.515 0.452 13.938 0.063 0.515 0.515 0.500 48,945,600.000 0.100
117,843 1,088,492 69 10.200 9.050 10.196 9.000 13.289 1.196 10.190 10.185 10.000 70,352,400.000 1.000
86,266 275,537 97 3.520 2.800 3.312 2.944 12.500 0.368 3.315 3.450 3.315 9,936,000.000 1.000
225,350 256,948 63 1.175 1.025 1.175 1.050 11.905 0.125 0.000 1.195 0.000 71,998,125.000 0.100
2,057,232 808,432 540 0.418 0.351 0.390 0.351 11.111 0.039 0.390 0.389 0.385 22,943,896.170 0.100
356,035 177,286 29 0.543 0.472 0.543 0.491 10.591 0.052 0.000 0.573 0.540 97,651,708.200 0.100
19,488,466 10,882,771 4,582 0.599 0.511 0.577 0.533 8.255 0.044 0.568 0.570 0.568 133,287,000.000 0.100
1,878,095 936,778 391 0.525 0.480 0.517 0.480 7.708 0.037 0.500 0.500 0.495 103,400,000.000 0.100
10,171,911 8,986,736 2,452 0.927 0.830 0.899 0.836 7.536 0.063 0.895 0.895 0.892 253,602,914.146 0.100
15,594,877 3,896,629 2,810 0.272 0.224 0.243 0.226 7.522 0.017 0.240 0.242 0.240 29,160,000.000 0.100
25,100 18,817 13 0.753 0.745 0.749 0.699 7.153 0.050 0.000 0.725 0.700 20,801,602.500 0.100
6,099,368 970,104 860 0.167 0.147 0.159 0.149 6.711 0.010 0.159 0.162 0.159 15,900,000.000 0.100
8,388,484 698,252 597 0.091 0.078 0.088 0.083 6.024 0.005 0.087 0.088 0.087 22,001,057.760 0.100
1,553,268 781,747 191 0.530 0.486 0.525 0.496 5.847 0.029 0.000 0.519 0.475 39,484,200.000 0.100
27,814,236 9,688,457 1,196 0.361 0.331 0.359 0.340 5.588 0.019 0.355 0.358 0.355 388,079,000.000 0.100
470,272 971,199 76 2.101 2.000 2.101 2.000 5.050 0.101 0.000 2.101 0.000 199,595,000.000 0.100
13,998,929 2,902,885 1,853 0.219 0.196 0.208 0.201 3.483 0.007 0.208 0.209 0.208 12,730,488.784 0.100
95,703 136,319 270 1.460 1.400 1.448 1.406 2.987 0.042 1.450 1.475 1.431 40,254,400.000 1.000
14,142,437 12,185,318 2,769 0.885 0.852 0.875 0.851 2.820 0.024 0.870 0.873 0.870 1,178,115,001.000 0.100
678,249 526,605 102 0.797 0.730 0.771 0.751 2.663 0.020 0.775 0.775 0.750 627,243,336.864 0.100
20,320 89,299 9 4.425 4.350 4.400 4.300 2.326 0.100 0.000 4.450 0.000 9,680,000.000 1.000
162,065 19,547 32 0.125 0.117 0.118 0.116 1.724 0.002 0.000 0.120 0.118 9,440,000.000 0.100
9,385,643 2,442,377 1,837 0.275 0.244 0.254 0.251 1.195 0.003 0.248 0.250 0.248 5,334,000.000 0.100
4,532,784 1,251,365 473 0.280 0.269 0.272 0.269 1.115 0.003 0.270 0.275 0.270 193,768,615.552 0.100
1,427,028 834,924 810 0.598 0.560 0.581 0.577 0.693 0.004 0.580 0.583 0.580 31,955,000.000 0.100
3,885,016 2,184,202 1,069 0.585 0.540 0.567 0.565 0.354 0.002 0.567 0.565 0.561 19,035,012.150 0.100
11,525,654 2,590,611 1,276 0.229 0.217 0.220 0.220 0.000 0.000 0.217 0.217 0.216 220,000,000.000 0.100
38,589 77,178 78 2.000 2.000 2.000 2.000 0.000 0.000 0.000 0.000 0.000 20,791,400.000 1.000
2,591 1,762 2 0.680 0.680 0.748 0.748 0.000 0.000 0.000 0.000 0.000 24,848,560.000 0.100
113,112 24,893 5 0.230 0.220 0.220 0.220 0.000 0.000 0.000 0.000 0.201 33,001,573.000 0.100
371 620 1 1.670 1.670 1.850 1.850 0.000 0.000 0.000 0.000 0.000 9,250,000.000 1.000
1,915,992 168,483 175 0.090 0.084 0.087 0.087 0.000 0.000 0.086 0.086 0.085 5,818,125.000 0.100
10,568 10,447 6 0.990 0.965 0.990 0.990 0.000 0.000 0.000 1.050 0.990 7,594,569.180 1.000
2,418,145 2,919,911 828 1.222 1.200 1.201 1.203 -0.166 -0.002 1.205 1.205 1.200 900,750,000.000 0.100
7,435,058 2,395,541 1,172 0.327 0.316 0.319 0.320 -0.313 -0.001 0.318 0.319 0.318 51,755,542.839 0.100
1,301,135 551,086 227 0.430 0.420 0.421 0.424 -0.708 -0.003 0.423 0.423 0.420 96,830,000.000 0.100
39,538 24,194 25 0.615 0.600 0.610 0.615 -0.813 -0.005 0.605 0.612 0.605 25,162,500.000 0.100
69,231 96,625 19 1.409 1.370 1.396 1.414 -1.273 -0.018 0.000 0.000 0.000 9,776,182.416 1.000
6,965,204 1,819,028 624 0.266 0.255 0.257 0.261 -1.533 -0.004 0.256 0.256 0.255 234,707,095.260 0.100
1,229,528 598,289 183 0.496 0.480 0.490 0.498 -1.606 -0.008 0.000 0.490 0.480 29,400,000.000 0.100
137,455 37,159 25 0.275 0.267 0.270 0.275 -1.818 -0.005 0.270 0.270 0.260 29,700,000.000 0.100
4,206,587 842,774 573 0.206 0.192 0.197 0.202 -2.475 -0.005 0.196 0.199 0.194 12,004,687.500 0.100
5,031,981 347,080 573 0.073 0.065 0.068 0.070 -2.857 -0.002 0.067 0.068 0.067 5,780,000.000 0.100
926,240 212,898 7 0.230 0.220 0.230 0.237 -2.954 -0.007 0.000 0.000 0.000 35,782,910.100 0.100
268,567 84,564 93 0.325 0.308 0.310 0.320 -3.125 -0.010 0.310 0.315 0.300 9,300,000.000 0.100
3,958,163 1,621,249 1,727 0.424 0.396 0.401 0.415 -3.373 -0.014 0.396 0.396 0.395 66,231,165.000 0.100
2,249,469 2,798,668 707 1.300 1.200 1.256 1.300 -3.385 -0.044 1.250 1.257 1.241 251,200,000.000 0.100
397,905 98,683 73 0.258 0.240 0.242 0.251 -3.586 -0.009 0.000 0.249 0.231 48,400,000.000 0.100
6,374,723 1,023,596 983 0.169 0.155 0.157 0.163 -3.681 -0.006 0.156 0.158 0.156 18,840,000.000 0.100
3,873,454 1,261,389 934 0.339 0.309 0.311 0.324 -4.012 -0.013 0.309 0.309 0.308 38,843,265.560 0.100
2,145,390 2,826,468 963 1.379 1.255 1.259 1.312 -4.040 -0.053 1.255 1.259 1.255 112,932,300.000 0.100
1,038,036 234,025 156 0.235 0.223 0.225 0.235 -4.255 -0.010 0.224 0.228 0.224 15,750,000.000 0.100
2,335,445 265,642 378 0.120 0.110 0.112 0.117 -4.274 -0.005 0.112 0.113 0.112 14,000,000.000 0.100
360,550 43,289 71 0.126 0.117 0.118 0.124 -4.839 -0.006 0.000 0.120 0.117 7,670,000.000 0.100
46,860 10,691 2 0.235 0.228 0.228 0.240 -5.000 -0.012 0.000 0.000 0.000 7,395,376.080 0.100
58,224 75,337 26 1.313 1.250 1.263 1.330 -5.038 -0.067 1.271 1.291 1.271 40,416,000.000 0.500
5,235,219 469,959 585 0.093 0.085 0.085 0.090 -5.556 -0.005 0.085 0.086 0.085 5,001,673.445 0.100
493,315 33,422 105 0.071 0.065 0.066 0.070 -5.714 -0.004 0.066 0.067 0.066 3,960,000.000 0.100
2,377,522 1,538,789 455 0.670 0.630 0.633 0.673 -5.944 -0.040 0.633 0.633 0.629 99,697,500.000 0.100
8,085,384 634,021 496 0.082 0.074 0.075 0.080 -6.250 -0.005 0.075 0.077 0.075 22,500,000.000 0.100
6,208,565 4,073,848 1,017 0.684 0.626 0.628 0.683 -8.053 -0.055 0.628 0.628 0.627 207,788,061.880 0.100
65,998 5,722 28 0.097 0.081 0.084 0.097 -13.402 -0.013 0.084 0.084 0.083 1,690,726.128 0.100
60,226 11,079 23 0.209 0.176 0.180 0.209 -13.876 -0.029 0.176 0.176 0.000 20,385,193.680 0.100
240,849,133 99,601,307 39,149
TAAGEER FINANCE
Sum:
GULF INVESTMENT SER.
AL BATINAH DEV. INV. HOLDING
OMAN FLOUR MILLS
GLOBAL FINANCIAL INVESTMENT
OMAN CEMENT
NATIONAL MINERAL WATER
OMAN CABLES INDUSTRY
DHOFAR CATTLE FEED
OMAN FISHERIES
FINANCIAL SERVICES
OMAN PACKAGING
AES BARKA
MAJAN COLLEGE
ONIC. HOLDING
RAYSUT CEMENT
DHOFAR INSURANCE
AL ANWAR HOLDING
AL JAZEERA STEEL PRODUCTS
OMAN INTERNATIONAL BANK
OMAN NATIONAL ENGINE. INVT.
OMAN HOLDING INTERNATIONAL
OMAN AND EMIRATES INV. OM
CONSTRUCTION MATERIALS IND.
AL OMANIYA FINANCIAL SER.
OMAN TELECOMMUNICATION
AL ANWAR CERAMIC TILES
OMINVEST
SALALAH MILLS
THE FINANCIAL CORPORATION
MUSCAT FINANCE
MUSCAT NATIONAL HOLDING
TRANSGULF IND. INV. HOLDING
UNITED POWER
BANK SOHAR
DHOFAR POWER
MAJAN GLASS
NATIONAL GAS
AL SHARQIA INV. HOLDING
GULF INT. CHEMICALS
AHLI BANK
VOLTAMP ENERGY
NAT. ALUMINIUM PRODUCTS
NATIONAL BANK OF OMAN
SHELL OMAN MARKETING
AL JAZEERA SERVICES
SOHAR POWER
BANK MUSCAT
BANK DHOFAR
RENAISSANCE SERVICES
OMAN INVESTMENT AND FINANCE
MUSCAT GASES
OMAN UNITED INSURANCE
UNITED FINANCE
AL HASSAN ENGINEERING
OMAN CHROMITE
OMAN OIL MARKETING
OMAN CHLORINE
SALALAH PORT SERVICES
GALFAR ENGINEERING AND CON.
DHOFAR INT.DEV.AND INV. HOLD
Security Name
DHOFAR POWER PREF SHARES
PORT SER. CORPORATION
Al MAHA PETROLEUM PRODUCTS MAR
MSM Monthly Trading Bulletin For 10/2010
Regular Market
OAB–IMG Team (www.oabinvest.com) - Asset Management 24827308; Brokerage 24827324; Corporate Finance 24827305; Research 24827317; Private Banking 24827338; NRI Services 24754314; Customer Service 24827321
333,029 214,842 180 0.898 0.480 0.752 0.473 58.985 0.279 0.720 0.790 0.720 37,096,348.000 0.100
12,365,909 4,746,595 2,745 0.478 0.313 0.434 0.317 36.909 0.117 0.430 0.430 0.428 43,400,000.000 0.100
481,563 205,531 162 0.474 0.370 0.426 0.374 13.904 0.052 0.410 0.420 0.412 2,556,000.000 1.000
145,440 124,098 51 0.883 0.809 0.883 0.820 7.683 0.063 0.000 0.870 0.000 15,022,037.500 0.100
51,350 46,156 50 0.938 0.840 0.919 0.860 6.860 0.059 0.000 0.940 0.880 6,433,000.000 0.100
13,332 1,828 5 0.140 0.130 0.140 0.135 3.704 0.005 0.130 0.140 0.130 1,127,000.000 0.100
30,000 4,290 1 0.143 0.143 0.143 0.141 1.418 0.002 0.000 0.143 0.130 21,640,422.518 0.100
11,550 12,528 5 1.090 1.020 1.087 1.085 0.184 0.002 0.000 0.000 0.985 8,696,000.000 1.000
91,564 155,659 3 1.700 1.700 1.700 1.700 0.000 0.000 0.000 0.000 0.000 16,362,500.000 1.000
500 648 1 1.296 1.296 1.344 1.344 0.000 0.000 0.000 1.335 0.000 18,816,000.000 1.000
110 11 3 0.100 0.100 0.100 0.100 0.000 0.000 0.000 0.000 0.100 5,000,000.000 0.100
29 14 1 0.486 0.486 0.540 0.540 0.000 0.000 0.000 0.000 0.000 37,800,000.000 0.100
3,450 207 5 0.060 0.060 0.064 0.064 0.000 0.000 0.000 0.000 0.000 3,903,532.160 0.100
3,340 518 3 0.161 0.153 0.170 0.170 0.000 0.000 0.000 0.160 0.153 22,814,000.000 0.100
300 2,490 1 8.300 8.300 8.299 8.299 0.000 0.000 0.000 0.000 0.000 24,897,000.000 1.000
168,582 91,166 100 0.564 0.519 0.560 0.569 -1.582 -0.009 0.000 0.560 0.000 10,483,200.000 0.100
13,700,048 5,606,580 3,316
5,450 6,848 5 1.300 1.150 1.262 0.785 60.764 0.477 0.000 1.300 0.900 3,786,000.000 1.000
400 31 2 0.090 0.070 0.100 0.100 0.000 0.000 0.000 0.000 0.000 1,000,000.000 0.100
826 594 8 0.749 0.500 0.749 0.749 0.000 0.000 0.000 0.000 0.000 1,417,254.804 1.000
723 95 3 0.133 0.130 0.130 0.130 0.000 0.000 0.000 0.000 0.000 806,093.730 1.000
20,000 1,950 2 0.100 0.090 0.097 0.100 -3.000 -0.003 0.000 0.000 0.000 97,000.000 1.000
27,399 9,517 20
62,254 64,841 20 1.053 1.029 1.052 1.029 2.235 0.023 1.052 0.000 1.052 33,994,339.572 1.000
266,600 274,598 2 1.030 1.030 1.030 1.035 -0.483 -0.005 0.000 0.000 0.000 25,750,000.000 1.000
20,000 20,400 1 1.020 1.020 1.020 1.031 -1.067 -0.011 0.000 0.000 0.000 30,398,917.200 1.000
348,854 359,839 23
Traded Volume Total Turnover Trades Market Cap Sec Traded Up Down Equal
254,925,434 105,577,243 42,508 10,567,644,355 88 37 34 17
Group Buy Buy Value %
Sell Volume %
Sell Value %
Index High Low Value Prev. Value Diff Diff %
Indecies
Monthly Summary
Bonds Market
Third Market
Industry Index 7,430.050 7,218.300 7,218.300 7,363.450 -145.15
6.55 %
OTHERS 8.27 % 10.99 % 5.78 % 9.31 %
-1.97 %
2.87 % 2.18 % 2.61 % 1.98 %
Services and Insurance Index 2,651.520 2,470.650 2,638.960 2,476.740 162.22
16.26 % 16.05 %
Banks and Investment Index 8,999.010 8,794.500 8,794.500 8,815.660 -21.16 -0.24 %
ARABS
MSM30 Index 6,599.630 6,463.670 6,553.330 6,472.760 80.57
OMANIS 81.95 % 79.39 % 75.35 % 72.65 %
1.24 %
GCC 6.91 % 7.44 %
BANK MUSCAT BONDS-NONGUARANT 7
BANK MUSCAT BONDS 6.25
Sum:
Nationalities Trading
BANK MUSCAT CONVERTABLE BONDS7
OMAN FOODS INTERNATIONAL
ABRASIVES MANUFACTURING
Sum:
OMAN CERAMIC COMPANY
Sum:
DHOFAR POULTRY
Al AHLIA CONVERTING IND
OMAN REFRESHMENT
GULF MUSHROOM PRODUCTS
OMAN EDUCATION TRAINING INV.
OMAN MEDICAL PROJECTS
OMAN ORIX LEASING
NAT. PHARMACEUTICAL IND.
DHOFAR UNIVERSITY
AL KAMIL POWER COMPANY
OMAN TEXTILE HOLDING
NATIONAL DETERGENT
SWEETS OF OMAN
MUSCAT THREAD MILLS
NATIONAL FINANCE
DHOFAR TOURISM
AL FAJAR AL ALAMIA
ASAFFA FOODS
Parallel Market
OAB–IMG Team (www.oabinvest.com) - Asset Management 24827308; Brokerage 24827324; Corporate Finance 24827305; Research 24827317; Private Banking 24827338; NRI Services 24754314; Customer Service 24827321
Close This Month
2009Oct 31 2010
Sunday
1 Tunis Se Index ** 4,289.99 5,123.54 -9.48% 19.43%
2 CASA All Shares (Morocco) ** 10,443.81 12,196.70 2.54% 16.78%
3 Doha Securities Market 6,959.17 7,795.95 1.31% 12.02%
4 CASE 30 ** 6,208.77 6,680.50 0.57% 7.60%
5 Saudi Securities Market 6,121.76 6,357.76 -0.54% 3.86%
6 Muscat Securities Market 30 6,368.80 6,553.33 1.24% 2.90%
7 Abu Dhabi Securities Market 2,744.80 2,816.11 5.35% 2.60%
8 FTSE NASDAQ Dubai UAE 20 1,845.21 1,873.86 6.01% 1.55%
9 Kuwait Stock Exchange 7,005.30 7,063.90 1.13% 0.84%
10 Bahrain Stock Exchange 1,458.24 1,462.42 1.22% 0.29%
11 Palestine Securities Exchange 493.00 491.48 -2.43% -0.31%
12 Dubai Financial Market 1,803.58 1,764.54 4.80% -2.16%
13 Amman Stock Exchange 2,533.54 2,335.61 1.26% -7.81%
14 Blom Stk Inx (Lebanon) ** 1,565.76 1,417.82 -1.39% -9.45%
Close This Month
2009Oct 31 2010
Sunday
Arab Market Indices *
International Indices **
Y-T-D % Chg.
Y-T-D % Chg.
M-T-M % Chg.
M-T-M % Chg.
1 BSE Sensex 17,464.81 20,032.34 -0.18% 14.70%
2 DAX 5,957.43 6,601.37 5.98% 10.81%
3 NASDAQ 2,269.15 2,507.37 5.86% 10.50%
4 Dow Jones 10,428.05 11,113.95 3.02% 6.58%
5 S&P 500 1,115.10 1,183.78 3.73% 6.16%
6 HANG SENG 21,872.50 23,096.32 3.30% 5.60%
7 FTSE 100 5,412.90 5,675.16 2.28% 4.85%
8 CAC 40 3,936.33 3,833.50 3.18% -2.61%
9 NIKKEI 225 10,546.44 9,202.45 -1.78% -12.74%
*Source: Reuters at 3.00 P.M Muscat timeSorted according to highest year-to-date returnSaudi market is open from Saturday to Wednesday
OAB–IMG Team (www.oabinvest.com) ‐ Asset Management 24827308; Brokerage 24827324; Corporate Finance 24827305; Research 24827317; Private Banking 24827338; NRI Services 24754314; Customer Service 24827321
Currency U.S. $ Euro U.K. £ ¥en
1 U.S. $ 1.0000 0.7170 0.6233 80.4000 $ / OMR 0.38800
1 Euro 1.3947 1.0000 0.8694 112.1339 £ / OMR 0.62247
1 U.K. £ 1.6043 1.1503 1.0000 128.9857 € / OMR 0.54114
1 ¥en 0.0124 0.0089 0.0078 1.0000 ¥ / OMR 0.00483
M-T-M% Y-T-D%
1,358.05 3.30% 22.73% AED 3.673 SAR 3.750
24.69 11.87% 44.47% BHD 0.377 EGP 5.779
650.00 13.64% 59.51% KWD 0.281 JOD 0.709
1,708.00 2.77% 16.27% QAR 3.641 LBP 0
Oil M-T-M% Y-T-D%
80.09 3.01% 2.53% Amount 3 Months 6 Months 1 Year
Dubai Oil 1M(US$/b) 80.71 3.21% 3.36% 1000 - 10000 0.75 1.00 1.00
North Sea Brent (Spot) (US$/b) 82.68 2.20% 4.80% 10001 - 25000 1.00 1.25 1.25
25001 - 50000 1.00 1.25 1.50
50001 - 100000 1.00 1.25 1.50
M-T-M% Y-T-D% + 100000
Copper 8,190.00 0.92% 10.68%Aluminium 2,355.00 0.88% 3.74%Lead 2,445.00 6.30% 0.20%Zinc 2,425.00 8.96% -6.73%Nickel 23,000.00 -3.77% 23.03%
Source: Reuters
Cross Rate for Major Currency
Gold / Oz
Arab Exchange Rate against $Metals
Foreign Exchange Rates against OMR
Y-T-D%
0.00%
11.31%
-13.42%
14.30%
This report has been prepared and issued by the IMG- Oman Arab Bank SAOC on the basis of publicly available information, internal data, and other sources considered reliable. While the utmost care has been taken to ensure that the facts stated are accurate and the opinions given are reasonable, neither Oman Arab Bank SAOC nor any of its employees shall be in any way responsible for the contents. This report is not to be construed as an offer to buy or sell the securities referred to in the report.
Negative sign indicates depreciation in foreign currency.
OMR Deposits Rate %
For more details, please Contact Treasury on +968 24700169 / 24793219
Silver / Oz
Platinum / Oz
Platidum / Oz
Oman Oil 1M (US$/b)
Commodities -LME 3M Prices (US$/t)
OAB–IMG Team (www.oabinvest.com) - Asset Management 24827308; Brokerage 24827324; Corporate Finance 24827305; Research 24827317; Private Banking 24827338; NRI Services 24754314; Customer Service 24827321
