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Oman— the opportunity Brief introduction
Renaissance began in 1970 with the ascension of His Majesty to the throne. Initial developments were linked to the oil deposits. However, progressively diversified into other
sectors such as banking, gas, industrial and tourism. Oman enjoys a stable political, economic, and social system. Oman has strong ties with international allies and excellent relationship with neighboring countries.
Oman’s Demographics
Population 3.1 million Which includes around 570 thousand expatriate population。 Age Structure 0-14 years: 42.7% 15-64 years: 54.7% 65 years and over: 2.6% Land Total land area is around 309,500 Km2 with extended costal line of 1700km. Oman is the third largest country in the Arabian Peninsula.
Oman’s Strategic Location
• Meeting point of the two continents - Indian sub continent and Africa.
• Falls between two economic powerhouses: Europe and the newly industrialized Asian countries.
• Oman's strategic location in the west-east trade roots and as a gateway for Asia, Europe, and Africa.
Oman’s Infrastructure
• International airport with extensive air cargo facilities. • Number of domestic terminals at important centers such as Salalah,
Musandam, Masirah and Sur. • Ultra modern port facilities at Raysut, Sultan Qaboos, Salalah, and
Sohar Ports.
• State-of-the art telecommunications system that is continuously being
upgraded with new technology. Comprehensive telephone, internet, mobile facilities.
• Well- organized private banking sector provides a wide range of financial services and credit facilities to investors.
Oman’s Economy Total revenue increased by 25% in 2006 compared to 2005. The year 2006 exceeded the budget expectations, both for oil and gas and the economy as a
whole. Out of 22 Arab nations, Oman is ranked No 3 in the list of “most inspired country in economic
confidence” just slightly behind Saudi & Qatar Oman’s Vision 2020 program aims to diversify Oman’s economy beyond oil industry through
tourism, industrialization, and privatization. Private sectors are greatly encouraged to play more vital role in financing various infrastructure
projects within the country. Total investments for major infrastructure projects are estimated to be R.O. 15 billion between 2002
and 2010. Oman’s Economy – Vision 2020
GDP Sector
2005 2020
Oil 45.5 9.0
Gas 9.0 10.0
Agriculture/Fish 1.5 5.1
Manufacturing 8.5 15.0
Trade 10.3 15.0
Tourism 0.7 5.0
Others 29.9 40.9
Total 100 100
Oman’s Foreign Investment Incentives
Oman has a strong and stable local currency (Rial Omani 1 = US$ 2.58) and fully convertible. Oman’s law allow free transfer of capital funds and profits and entry to foreign workers. Soft loans through Oman Development Bank. Exemption on income tax for 5 year period renewable. Planned infrastructure setup for industrial units. Duty free equipment, machines & raw materials. Established privatization policy. 100% foreign capital ownership allowance in specified cases. Business friendly environment encouraging rapid growth of private enterprise
Oman’s Business Environment • Business Environment : On average 34 days to start business - world average 48 days. • Trade Policy: Tariff rates reduced drastically in particular sectors after US FTA. • Fiscal Programme: Very low duty on products, moderate corporate tax and no personal income
tax. • Monetary Policy: Low inflation less than 3.5% percent. • Investments: Select foreign ownership can be 70%. Non residents could hold foreign exchange
accounts. • Business Transparency: Good corporate governance environment with least corruption among
MENA countries. Oman’s International Agreements • Bilateral relations with brotherly and friendly countries. • Member of a number of Arab, regional and international organizations such as AGCC, IOR, & WTO • Numerous trade agreements. Most recent is the Free Trade Agreement with USA. • “Free Trade Zones” with long term tax incentives. • Salalah FTZ complete. Sohar FTZ under development FREE TRADE ZONE BENEFITS Beside the competitively low initial cost of setting up, and a one-stop-shop arrangement for licences,
permits, visas, customs clearances, etc., a whole host of other investment-friendly incentives are available to businesses operating at Free Zones.
The array of special incentives include A lease for 50 years (renewable for another 50 years) 100% foreign ownership Zero customs duties on imports and exports No minimum capital investment requirement No taxes on profits or dividends for 30 years No tax on personal incomes No restrictions on repatriation of capital, profits and investments Omanisation requirement level of only 10% Flexible customs procedures
Oman’s FDI Achievements
86 Foreign Direct Investment projects between 2002 and 2006 amounting to 6.2 billion. FDI Projects by Key Business Function in Oman
FREE TRADE ZONE Licenses The Free Zone issues various types of licenses. A General Trading License allows the holder to import, export, distribute, and store all items as per
the Free Zone rules and regulations. A Trading License allows the holder to import, export, distribute, and store items specified on the
license. A Trading License allows the holder to import, export, distribute, and store items specified on the
license (Please note that the above are applicable as of now to Salalah Free Zone, however, other Free
zone benefits would follow similar benefits). Advantage Oman The Location
Strategically located on key sea/air routes & positioned as the “Gateway” to the Gulf Region. Infrastructure
Well established infrastructure and communication network. Political & Economic Climate
Politically stable and excellent business environment with internationally certified fiscal policies. Market Access
Excellent market access via Free Trade Agreements in place for the MENA region, GCC countries and USA
Tax Incentives Well defined tax incentives to assist in building a sustainable and profitable long term business base.
Raw Material Availability At Sohar Industrial Estate Aluminium, steel & plastic raw materials will be accessible resulting in saving in transport & energy. e.g. In the case of Aluminium which could be obtained in molten form.
PUBLIC ESTABLISHMENT FOR INDUSTRIAL ESTATE
Rates of Services
SNO Service Unit Charges(USD)
1 Lease of industrial plots
Square meter/ per annum
0.65 USD for the first 5 years, thereafter, 1.3USD
2 Electricity KW/hour with bank capacitor
0.0312 USD. August - Mar) 0.0624 USD (April – May)
3 Water Gallon 0.0078 USD
4 Gas M3 0.0533 USD
5 Construction permits Permit 26 USD 6 Construction
drawings Plan 1.95 USD
7 Duplicates of lost construction drawing/permit
Plan or Permit Rate of original document
8 Duplicates of lost contract documents
Contract 13 USD
9 Construction insurance deposit
Permit 390 USD (refundable)
Advantages to business with Oman
Available land and premises at highly competitive prices Highly developed infrastructure and transport Trained and competitively priced workforce A multicultural and multilingual workforce High level of managerial and professional skills Excellent business support services and local business partnerships International sea ports; Mina Sultan Qaboos - a major freight terminal; Salalah Port - one of the
Middle East’s largest container ports Seeb International Airport offers direct daily flights to destinations in the Middle East, the Indian
sub-continent, Europe, the Far East, Africa and the US Fast and easy access to emerging markets in the Middle East, Asia and Africa Assistance with promoting and marketing products A pro-business-oriented government Growth in inward investment WTO Member
Advantages for life Rich selection of housing Excellent schools, colleges and healthcare Extensive choice of shopping World class sports and recreation facilities Unparalleled quality of life Unspoilt areas of natural beauty - all within easy reach One of the finest cultural and historic heritage areas in the Gulf
Education for Industry Training programmes, seminars and B-2-B networking sessions Partnerships with internally accredited training institutes and business organizations Business Mentor
The Zubair Corporation
The Chairman, Mohammad Al Zubair established the Muscat Trading Company in 1967.
The company initially traded in electrical equipment, tools and building materials.
In parallel with the Renaissance in 1970, Muscat Trading Company diversified into other areas.
This led to the company changing its name to Zubair Enterprises in 1973.
The 70’s
In 1973, Zubair Enterprises and the Government started the first public transport company – Oman National Transport Co.
In that year, it obtained its first automotive agency Chrysler
Built the first modern furniture factory in 1975. Together with other Omani companies, initiated many national projects.
Restructured for Growth
In the beginning of the 80’s, the company was restructured for growth. Decentralized the operations. Continue to diversify into other attractive areas such as oil and gas, finance, computers, etc. With effect from 1 Jan 2000, Zubair Enterprises became
“The Zubair Corporation” Positioned for the future
In 2002, The Zubair Corporation was realigned into 9 operating divisions. This alignment was done to leverage synergies by industries and to provide a focused approach to each of the business sectors.
Divisions are professionally managed with a formal Board of Directors overseeing operations. Around 56 Subs were restructured to fit into the following new divisions:
• Automotive • Furnishing • Electric • Energy • Home & Business Solutions
• Information & Communication Technology • Property & Construction • Travel & Tourism • Investment
Our Vision Statement
To support the future positioning, The Zubair Corporation will aggressively pursue its vision. The vision for The Zubair Corporation is to build a company that will withstand the test of time …
Through a diversity of competitive businesses; Each with distinctive capabilities and competencies and Well managed to fully explore and exploit appropriate business opportunities.
All of which create and maximize shareholder value Business Development
In order to take advantage of the immense opportunities emanating in the Country, The Zubair Corporation has an independent Business Development Department at the Corporate Head Quarters.
The Business Development Division operate within the guidelines set by the Corporate strategy and core value of the Corporation
Business Development Division’s primary task is to assist in identifying growth opportunities for the Corporation and the Group Companies.
Business Development assists the Group Companies by identifying new technologies / services which enhances their competencies and also assist in market expansion. This process assists the Group companies to expand their capabilities in Oman and the region and also help the new Principals to have quick entry capabilities into these markets with a secure, sustainable business capability.
Business Development Division continuously identifies new opportunities, to assist the Corporation in expanding its business capabilities.
The process involves early identification of the projects, securing the right partners and assisting in all stages of development till formal commissioning of the Project.
BD Areas of Activities
Project - All major projects Development - Tender projects
- Privatization schemes - Private Finance Initiatives (PFI’s)
New Business Ventures Mergers & Acquisitions New Markets and New Sectors of Activities New Alliances. Support to Group companies
Pen picture of each division
ZedCorp has 9 core divisions
• Automotive
• Furnishing
• Electric
• Energy
• Home & Business Solutions
• Information & Communication Technology
• Property & Construction
• Travel & Tourism
• Investment
Automotive
One of the largest automotive dealers in the Sultanate of Oman. Structured as five independent companies. Wide product range covering passenger cars, heavy trucks and light
commercial vehicles.
Distributor for Mitsubishi, Bentley, Chrysler, Peugeot, Volkswagen, Audi, Skoda and Citroen – passenger cars.
Light Commercial vehicles – Mitsubishi, Renault and Volvo trucks.
17 branches in the country to provide convenient and efficient after sales service.
The first automotive ISO 9002 company Furnishing
• Largest furniture factory in the GCC with an area more than 13,500 sq.m. • State-of-the-art manufacturing facility employs the latest equipment and
work practices • Leading interior decorator and turnkey contractor. • Some of the Major projects handled are Shangri-La's Barr Al Jissah Resort
& Spa, Al Bustan Palace Hotel-Muscat, Intercontinental Hotel, Royal Abjar-Dubai, Forte Grand – Dubai & Abu Dhabi, Hilton Arc de Triomphe in Paris, Marriott Hotel-Zurich, Vienna and Leipzieg etc.
• Doing business with a total of 29 countries now including North American Market.
• An ISO 9001 Company.
Electrical
Operations covering the Sultanate of Oman & UAE. Represent and distribute internationally reputed brands. Product range covers all electrical and lighting needs for infrastructure
/ residential / commercial / industrial / sports / retail / entertainment / amenity / roads & tunnels.
Offer comprehensive product support including product selection and lighting design solutions.
Energy
• Zubair Oil & Gas – Providing specialized services to Oil Industry. • Oman Oil Industry Supplies & Services (OOISS) – represents
over 100 manufacturers from all over the world. Leading supplier of materials / services to the local oil industry (Petroleum Development
Oman). • KMC Oiltools – Provides products and services for oil and gas
industry. • ISO 9002, ISO 14001 and OHSAS 18001
Home & Business Solutions
Home and Business solutions comprises two companies.
Business International Group is a successful turnkey solution provider and has a strong presence in the Educational, Health, Oil and Gas and Hospitality Sectors. They have executed several prestigious projects with well-known EPC contractors in Oman as well as in GCC countries.
Zakher International FZE, based in the Jebel Ali Free Trade Zone,
Dubai, UAE, is the principal representative for the GCC, Middle East and Africa regions and the Indian subcontinent for several leading multinational brands related to home and car entertainment.
Information & Communication Technology
OCS Infotech Industry Domains – Telecom, Banking, Hospitality, Business
Intelligence Technology Domains – Storage, Disaster Recovery, Data
Centres, S/W development Software platforms – Oracle, .NET etc Markets – Oman, ME, USA
Offices – Oman, UAE, India Zubair Telecom
Industry Focus – Govt, Telecom, Oil & Gas, Tourism, Defence etc
Technology Focus – Infrastructure projects, Video Conferencing Solutions, Security solutions, high-end EPABX solutions etc
Infocomm – new ICT services and solutions venture in partnership with the iGroup of Singapore
Construction
• Larsen & Toubro (Oman) – Engineering and Construction expertise
from L & T (India). Specialist in turnkey projects.
• L & T Electromech LLC – A specialized company in the field of electrical, mechanical and engineering projects.
• L&T Modular Fabrication : A joint venture partnership has been
established recently with Larsen and Toubro, India to set up a Modular Fabrication facility at Sohar Industrial Port targeting the oil and gas upstream and downstream opportunities in the Middle East
Real Estate
The Group owns several premium residential and workplace properties in Oman & UAE
Division ensures that proper development, utilization, administration and management of these properties is done in a professional manner.
Primary focus on in-house operational and residential needs.
Investments
• Al Hilal Investment Company – Manages a diversified portfolio of investments – local and international.
• Ominvest – Largest integrated investment company in Oman – owns majority stake in Oman Arab Bank.
• Fincorp – Leading Stock brokers and Merchant bankers. • National Finance Company – A leading leasing company in
Oman • Oman United Exchange – A leading money changing house.
Travel & Tourism
The newly opened Shangri-la’s Barr Al Jissah Resort & Spa sits
amidst a spectacular site just south of Muscat. It is one of the largest private ventures in Oman and continues to be a great success.
In the heart of Dubai, the group owns a 4-star business hotel,
also managed by Shangri-la International Hotels & Resorts.
Zubair Tourism Development LLC (ZTD) is the catalyst for Zubair's future Tourism & Hospitality ventures, commencing with SAMA Tourism Villages LLC, a blossoming network of heritage & adventure accommodation Villages.
Other Operations
Jawahir Oman – Line of jewellery and sterling silver gifts, especially the Heritage collection. Polythene & Plastics Products – Plastic extrusion manufacturing and plastic films and bags. Oasis Water Company – Manufacturers and distributors of purified and ozonised drinking
water. The Zubair Group Firsts The group’s ability to work closely with major international companies in successful projects in
Oman has been repeatedly tested and proven over years. Since its establishment in 1967, it has several firsts to its credit. Some of the key initiatives of the
group include: One of the founders of the first privately owned power projects in the Gulf Associated with the mega LNG project on the contracting side.
The Academy for Fire Fighting and Safety the only one of its kind between Singapore and UK. First Omani electro-mechanical contracting company in J.V. with a British firm. First transport organization in Oman. First modern furniture factory in Oman. First National telephone network.
Eminent Joint Venture Partners
Nabors International, USA Larsen & Toubro Limited, India Oiltools International, Singapore Sodexho International, France Marsh Jaidah Motors, Doha, Qatar
Major sponsorship agencies
LM Ericsson, Sweden Alfa Laval International, Sweden
Foster Wheeler, USA
Textron, USA
Dyncorp Services, USA
Founder promoters with other groups
Port Services Corporation Oman National Electric Company Oman United Agencies / United Engg. Services Oman Lubricants Company Oman Bitumen Company Oman Drilling Mud Products Company United Power Company Sohar Power Company Marina Bander Al Roudha Chiyoda-Foster Wheeler
Concluding Remarks Zubair’s as partners
A proven track record of sustainable business profitability in a diversity of industries. The “Zubair Brand” has established a very high level of respect, trust and dependability with all its
partners. Its business philosophy is based on building long-term relationship. This is supported by professional integrity, and investment support to ensure a high level of
success.