Oman Market Report 2016

OMAN MARKET
REPORT 2016
on the Food & Hospitality Industries
26-28 September 2016

Oman Convention & Exhibition Centre
Muscat, Sultanate of Oman
Table of Contents
The Oman Tourism Industry
Major Tourism Projects in Oman
The Food Industry in Oman
News on the Food & Hospitality Industries in Oman

Oman, Japan to form $400m fund to invest in food sector
Pact for S40m food processing plant at Sohar Freezone
Indias Usher Agro JV to set up $40mn rice and pulses distribution hub in Sohar
Ghantoot transport to build RO70mn Shaza Salalah resort
8 Fish landing centres planned
Shaza oman signs financing deal for Muscat five-star hotel project
Tourism sector set to grow 8 to 10 per cent
Beachfront Jumeirah Hotels at Saraya Bandar Jissah to redefine hospitality in Oman
Sheraton Oman to reopen after nearly 10 years
Omran inks $78m deal for OCEC Crowne Plaza
Sultanate considering farming offers abroads
TIME Hotels set for Oman debut
$620 million project to boost Sultanate's food security
Eight new tourism projects up for investments
Ascott to open first Citadines Aparthotel in Oman
$300mn EPC contract signed for Oman's 1st sugar refinery
Steady, sustainable growth forecast for the GCC food industry
Agriculture sector grew by 8.4 per cent
OMR500m allocated for fisheries sector
Oman star hotel revenue advances 10.3% in 2014
Omran board gives nod to five-star hotel
Retail sector in region set for promising growth, says study
Massive dairy plant planned in Sultanate
RO 66m projects to boost food security
Sohar Port eyes big role in packaging sector
Food & Hospitality Oman 2016 Market Report

The Oman Tourism Industry: Experiencing Significant Growth
Omans tourism industry is positioned for the countrys economic dependency on oil
long-term growth and is increasingly and shift attention to property, retail and
taking up most of the Sultanates annual leisure industries, singling out tourism to
GDP share. Continued growth is projected play a growing role in future economic
over the next 10 years. growth.
Tourism and inward investment are the The plan also focuses on intensifying
governments top priorities, aiming to tourism promotion programs and plans
transform the sector into a main that include the construction of billion-
contributor of the economy. It aims to dollar hotel properties, tourist resorts,
attract 12 million visitors yearly by 2020 hospitality schools, and developing the
a significant increase from the estimated countrys infrastructure.
2.5 million visitors in 2010.
A robust pipeline of residential and tourism
This is part of the Five-Year Plan (2011- projects as well as hotels and resorts
2015) and its overall Vision 2020 worth US$ 10 billion are underway.
development plan that aims to diversify
Tourism is a key pillar of the governments Vision 2020 plan, which targets
investments in several sub-segments and offers incentives to providers
operating in integrated tourism complexes. (The Report, Oman 2014)
GDP
In 2014, Omans direct contribution to first quarter of 2014, this was about 4.6
travel and tourism was US$ 1.9 billion, per cent, where the hotels and restaurants
which was 2.6 per cent of GDP. This was segment showed identical growth. (The
forecast to increase by 5.2 per cent in Report Oman 2015, Oxford Business
2015 to US$ 2 billion, as a result of the Group)
economic activity generated by industries
such as hotels, travel agents, airlines and According to statistics provided by WTTC,
other passenger transportation services the percentage contribution of travel and
(excluding commuter services), and tourism to GDP is expected to increase
activities of the restaurant and leisure from 6.7 per cent in 2009 to 9.9 per cent
industries directly supported. by 2019. Projects are expected to raise
The WTTC forecast growth of 10.4 per GDP by 20 per cent.
cent in the sector in 2014 to US$ 2.8 By 2024, the direct contribution to GDP to
billion. According to the National Centre travel and tourism will be 3.9 per cent by
for Statistical Information (NCSI), in the
2024, at US$ 4.7 billion.

Investment Opportunities
As part of the governments long-term A considerable percentage of this are four-

Oman Tourism Strategy (2015-2040), the and five-star hotels and resorts, integrated
Ministry of Tourism has launched new tourism complexes (ITCs), road systems,
projects in line with its plans to boost airports, seaports and industrial zones.
investments in tourism and generate
investment opportunities for small and More high-end hotels are set to open in
medium enterprises. the next two years, including the 210-room
Shaza Salalah, the 100-room Crowne
Omran, the company set up by the Plaza Salalah extension, the 115-room
government to deliver major projects and Antara Hotel Resort and Spa and a 160-
to manage assets and investments in room hotel in the city proper.
Omans tourism sector, is presently
involved in 10 resort-style projects worth The 300-room JW Marriott, 300-room
about US$ 10 billion. Crowne Plaza, the 300-room W Resort
Muscat and the 250-room Muscat Hills
Investment opportunities in tourism are Intercontinental are also slated to open.
estimated to be worth US$ 35 billion,
including the cost of infrastructure. The Ministry of Agriculture and Fisheries
has allotted more than US$ 1.3 billion for
WTTC reports that the industry attracted the development of the fisheries sector till
capital investment of US$9.45 billion in 2020.
2012, rising by 9.9% in 2013, and forecast
to grow at a yearly rate of 6.4% (US$19.3 Upcoming processing plants at the
billion) in 2023. Growth is a result mainly Fisheries Industrial Zone in Duqm are set
of investment in hotels. to make the site the largest multi-purpose
fisheries facility in the Middle East.
Major Development Projects
According to the Ministry of Agriculture
A number of food-, agriculture-, tourism-, and Fisheries, 19 projects with a value of
related property development projects US$ 337 million are in the pipeline in the
(and which are presently at various stages aquaculture sector, where some have
of construction) are being implemented. already been initiated.
Major Tourism Projects in Oman

PROJECT PROJECT DESCRIPTION PROJECT COST
Muscat and Salalah Airport A major expansion of the Muscat and US$ 5.2 billion
Project Salalah airports. Muscat International
Airport will consist of the construction of a
new control tower and data center, a
passenger terminal building, and a cargo
building. Salalah International Airport will
involve the construction of a new terminal
building, expanding the length of the
runway, and addition of a cargo building.
The Wave Muscat An integrated tourism complex with a total US$ 3.5 billion

s
area of 2.5 million square meters that
includes four hotels, a golf course, a 400-
berth marina, commercial and
residential spaces, retail facilities,
restaurants, and coffee shops.
Jebel Sifah Complex Construction of 18 apartments and 63 US$ 2.5 billion

villas
Al Sodah Island, Salalah Phase 1: Construction of five hotels,

including one boutique hotel
Salam Yiti Resort A five-star beach resort hotel with 300 US$ 1.7 billion
rooms, a deluxe beach hotel and spa
with 150 rooms, a luxury mountain hotel
with 150 rooms; an 18-hole golf course; a
150-berth marina; a 25,000-square foot of
retail space in a souk; and an eco-center
City Hotel A five-star resort hotel with 250 rooms, a US$ 1 billion
five-star hotel with 350 rooms and 100
service apartments and
Duqm Hotel Project A four-star business hotel with 230

rooms, a business center, and conference
facilities
Fort Hotel A five-star boutique hotel with 120 guest

suites, and restaurant and spa facility
Oman Convention & Design and construction of a convention US$ 1 billion

Exhibition Centre centre with capacity of 5,500-6,000 seats,
a 30,000-square metre exhibition
centre/multi-user sports centre, including
several hotels in 5, 4 and 3-star
categories, 20 meeting rooms (each with
250 seating capacity), a business park
covering approximately 70,000 square
metres, restaurants, cafes, press centre,
shopping mall (125,000 square metres)
and recreation facilities.

s
Saraya Bandar Jissah Omans latest integrated tourism complex US$ 600 million
Project that comprises 398 hilltop villas, stylish
townhouses, duplexes and luxury
apartments spread across five residential
zones, a beachfront, recreational club,
and a landscaped park on a 2.2-million
square kilometer land and a high point of
250 meters above sea level
Mall of Oman A mega shopping mall set to be Omans US$ 470 million
largest and most comprehensive
shopping mall to be built on 157,000 sqm
of land and housing 350 stores
Duqm Fisheries Industrial The development of a commercial harbor, US$ 250 million
Zone fisheries, 60 processing plants, cold
storages, training centers and testing
laboratories
Kempinski Wave Hotel A five-storey beachfront hotel and resort US$ 140.6
that includes a 309-room, 5-star hotel and million
77 hotel apartments, seven restaurants, a
ballroom that can accommodate more
than 750 people, a luxury spa, a beach
club with recreational and health facilities
including tennis courts, a spa and
swimming pools, a six-lane bowling alley,
salon and various luxury F&B outlets.
Muscat Palm Mall Covering a plot of 180,000 square US$ 129 million
meters, it features the largest theme park
in Oman, an ampitheater, food courts,
family entertainment area, and 70
branded hotel apartments.
JW Marriott Hotel Project Construction of a 5-storey, 5-star hotel US$ 91 million

(Phase 1) with 300 rooms, a ballroom, swimming
pools, a spa and lounge area.
A robust pipeline of residential and tourism projects as well as hotels and resorts worth
US$10 billion are underway
s
With the economy performing well and quality, convenience, facilities and
market confidence increasing, growing environment that these developments
signs of interest from potential buyers are provide, accompanied by the changing
seen in the secondary ITC development lifestyle resulting from higher income and
market. Demand is mainly driven by the availability of more competitive mortgages.
The Retail Segment

Omans retail market is developing in the golf course and retail center. Eight retail
same pace and is seen to become an outlets opened here since 2011.
attractive market.
The value segment is presently one of the
Retail is divided between the shopping strongest in Omans retail sector, owing to
malls or destination shopping centers and the relatively lower average incomes in
smaller roadside retail units that are Oman than elsewhere in the region. This
situated on the ground floor of residential segment includes global brands which are
and commercial buildings. well-received by the buying public.
There is a rapid growth in destination The retail sector offers several investment
shopping centers, which cater to the opportunities in niche markets, one of
value, middle-class and higher-end which is adventure tourism products and
markets. Several new retail outlets are equipment, apart from the larger, more
part of multi-use developments. traditional segments.
Omans first major ITC, The Wave, a Overall, the sector is seen to expand, with
project costing about US$2.5 billion, offers value-driven retail remaining a key driver,
residential freehold property in addition to but still with opportunities to invest in
tourism-related infrastructure such as a luxury retail. (Source: The Report: Oman
2013, Oxford Business Group)

s
The Food Industry in Oman
Oman is emerging as one of the fastest- are foreign visitors, who come to Oman as
growing markets for international suppliers business or tourist visitors.
to the foodservice industry. The increased
purchasing power of the Omani population The Hypermarket Segment
has resulted in the growth of hypermarkets Hypermarkets are also a strong segment
in the last few years. Currently, regional in Oman, catering to the lower, middle and
and international chains have been higher-end market. These are patronized
entering the market, while Muscat-based because of the value of the products
chains have been expanding to other parts offered. UAE and France-based chains as
of the country. well as the local chains, are continuously
opening outlets all over the country. Apart
Restaurants and coffee shops are from the hypermarkets, there are a fair
attracting a wide market due to their value- number of street front retail and small
for-money factor. Majority of their patrons shops that are mostly located in the
outlying areas of Muscat.
Lulu Hypermarket Muttrah Fish Market Carrefour Supermarket
Agriculture and Fisheries
Agriculture, livestock and fisheries are it plans to invest about US$ 520 million in
among the oldest and most important a variety of agriculture and fisheries-
sectors of Omans economy. They play a related infrastructure projects and
vital part in feeding the population, upgrades in existing facilities. This will do
providing employment for a large number much to boost national export revenues.
of Omanis and helping to boost the
country's GDP. In recent years, the government has been
focusing on the modernization and
The fisheries industry has been the development of the agricultural and
primary non-oil export earner in the fisheries sector.
Sultanate. With a coastline over 1,700
kilometres long, Oman is the largest While the Sultanate has produced a
producer of fresh fish in the region. variety of crops and other agricultural
products for many years, recent public and
Under the governments 8th Five-Year private investments have the potential to
Economic Development Plan (2011-2015), turn the sector into a significant economic
contributor and boost national security.

s
NEWS
ON THE
FOOD & HOSPITALITY
INDUSTRIES
IN OMAN

s
Oman, Japan to form $400m fund to invest in food sector
Source: Times of Oman, 27 October 2015
Omans biggest sovereign wealth fund has The Gulf Japan Food Fund will be owned
agreed with Japanese institutions to set up 37.5 per cent by Omans State General
a joint $400m fund that will invest in food Reserve Fund. State-run Oman National
and agribusiness industries, Omani Investments Development Co and Gulf
officials said on Sunday. Investment Corp, owned by the six GCC
staates, will hold a combined 12.5 per
The fund will facilitate direct investment in cent.
Gulf Cooperation Council states by
Japanese food and agribusiness firms, Japans Mizuho Bank and Norinchukin
ranging from grains and feed to Bank will provide the remaining half of the
vegetables, milk and dairy products, capital. The sultanate is trying to diversify
logistics and research firms, they said, its economy beyond oil, using state funds
aiming to spend at least 35 per cent of the in international ventures that steer
money in Oman. investment and technology back to Oman.
Pact for S40m food processing plant at Sohar Freezone

Indian agribusiness firm Usher Agro Ltd, The facility will also incorporate a 25,000
through its 100 per cent subsidiary Usher TPA capacity rice fortification plant based
Worldwide FZE and Prime Trading LLC, on patented technology provided by PATH
has signed a Joint Venture Agreement a non-profit organisation supported by
with Al Mada Project Management the Bill and Melinda Gates Foundation.
Company (AMPMC) and Sohar Food
Cluster Company LLC for setting up a rice The rice will be fortified with vitamins and
and pulses storage, processing and minerals to address nutrition requirements
packaging facility at Sohar Port & and is envisaged to be sold as a premium
Freezone. product and also supplied to the
government for welfare activities in the
Alpen Capital India Private Ltd acted as wider MENA region.
the sole financial advisor to Usher Agro on
this project. The basmati rice products of the facility
will be distributed within MENA countries
The initial facility will be set up at a total whereas pulses products from the facility
estimated project cost of $40 million and will be distributed in India and MENA
will feature a polishing, grading, blending Countries.
and packaging unit for 100,000 tonnes per
annum (TPA) of premium long grain rice The parties expect to commence the
including basmati rice and a state-of-the- operations of the facility by end of FY
art milling unit for 100,000 TPA of pulses. 2016.

s
The proposed food logistics and way trade with Port of Sohar as a hub. We
processing hub at the Port of Sohar are confident that this project once
(SIPC) will provide a unique opportunity launched will help in food security efforts
for the new Joint Venture in a strategic of the region and contribute to the creation
location, capitalising on direct access to of significant shareholder value, added Dr
agro/food berths and proximity to many Vinod Kumar Chaturvedi, Promoter and
export markets in the GCC and the MENA Managing Director, Usher Agro.
region, said Essa al Ghurair, Promoter &
Managing Director, Sohar Food Cluster We are extremely delighted that all
Company LLC. parties have come to a mutually beneficial
agreement to commence the execution of
We are delighted to partner with Manal al this project. We are proud to be
Abdwani of AMPMC and Essa al Ghurair associated with AMPMC, SFCC and
of SFCC to set up a rice and pulses Usher Agro and hope that our expertise in
distribution hub at Port of Sohar. the GCC-India corridor will add value to
this landmark project at Port of Sohar,
India is the largest exporter of rice and net stated Rohit Walia, Executive Chairman,
importer of pulses. The Joint Venture Alpen Capital India Private Ltd and Alpen
company aims to participate in this two- Capital (ME) Ltd.
Indias Usher Agro JV to set up $40mn rice and pulses

distribution hub in Sohar
Source: Muscat Daily, 26 October 2015
Usher Agro Ltd, India's leading agro- Stock Exchange (BSE) on Friday. The
processing company, in a joint venture initial facility will be set up at a cost of
with Al Mada Project Management Co and US$40mn. The facility will contain a
Sohar Food Cluster Co will set up a rice polishing, grading, blending and
and pulses hub at Sohar Port to distribute packaging unit for 100,000 tonnes per
the products within the Middle East and annum (TPA) of premium long grain rice,
North Africa (MENA) region. including basmati rice, and a milling unit
for 100,000 TPA of pulses.
Usher Agro Ltd, through its 100 per cent
subsidiary Usher Worldwide FZE and The facility will also contain a 25,000 TPA
Prime Trading Co, signed the agreement rice fortification plant under the patented
with Al Mada Project Management Co and technology provided by PATH a non-
Sohar Food Cluster Co for setting up the profit organisation supported by Bill and
rice and pulses storage, processing and Melinda Gates Foundation.
packaging facility at Port of Sohar, Usher
Agro Ltd said in a filing with the Bombay

s
The rice from the facility will be distributed strategic location, capitalising on direct
within MENA countries whereas the access to agro/food berth and proximity to
pulses will be distributed in India and many export markets in the GCC and the
MENA countries. The parties expect to MENA region, said Essa al Ghurair,
commence the operations of the facility by promoter and managing director of Sohar
the end of FY2016, Usher Agro Ltd said. Food Cluster Co. Dr Vinod Kumar
Chaturvedi, promoter and managing
Alpen Capital India acted as the sole
director of Usher Agro Ltd, said India is
financial adviser to Usher Agro on this
the largest exporter of rice and net
project, according to a press release
importer of pulses and the JV aims to
issued by Alpen Capital on Sunday.
participate in this two-way trade with
The proposed food logistics and Sohar Port as hub. We are confident that
processing hub at the Port of Sohar will this project once launched will help in food
provide a unique opportunity for the new security efforts of the region and
JV in a strategic location, capitalising on contribute to the creation of significant
direct access to agro/food berth and shareholder value, Chaturvedi said. Rohit
proximity to many export markets in the Walia, executive chairman of Alpen
GCC and the MENA region, said Essa al Capital India and Alpen Capital (ME), said,
Ghurair, promoter and managing director We are extremely delighted that all
of Sohar Food Cluster Co. parties have come to a mutually beneficial
Alpen Capital India acted as the sole agreement to commence the execution of
financial adviser to Usher Agro on this this project. We are proud to be
project, according to a press release associated with Al Mada Project
issued by Alpen Capital on Sunday. The Management, Sohar Food Cluster and
proposed food logistics and processing Usher Agro and hope that our expertise in
hub at the Port of Sohar will provide a the GCC-India corridor will add value to
unique opportunity for the new JV in a this landmark project at Sohar Port.
Ghantoot transport to build RO70mn Shaza Salalah resort


s
Taameer Investment has awarded the destinations, a 1,500sqm hammam and
main construction contract in the Shaza spa, a 300sq m kids' club, and five private
Salalah Hotel and Resort project to swimming pools for daily rental. The
Ghantoot Transport and General project also holds a separate banquet hall
Contracting company. which can host events for up to 1,000
guests, and a shopping arcade where
The total investment cost of the project local handicrafts will be displayed.
(earlier Dhofar Beach Resort) is RO70mn
approximately, and the hotel is expected In 2012, Hill International was awarded the
to open in 2017. With a built-up area of contract for project management, while
approximately 55,000sqm, the resort will Godwin Austen Johnson Architects were
offer 80 exclusive villas with individual signed on as design consultants.
plunge pools, a 130-room hotel, and 80
serviced apartments. Taameer Investment is developing
another hotel with Shaza Hotel in Muscat.
Although the project was announced by In May 2014, it signed a second contract
Taameer Investment in 2012 with the with Shaza Hotels for its new project, The
signing of Resort Management Contract Wave Plaza Hotel, which will comprise
and a Hospitality Management Contract 200 rooms and suites. It will be located at
with Shaza Hotels at the Arabian Travel the marina of The Wave, Muscat and will
Market in Dubai, it was officially launched include restaurants, a business centre,
with a new identity in February 2014. multi-function rooms, rooftop recreation
facilities and a fitness centre.
Taameer has awarded the contract after
mobilisation and levelling of the ground. UAE-based Ghantoot earlier this year was
The design works have been completed. also awarded the construction contract of
An official from Ghantoot confirmed the the staff accommodation zone by Saraya
contract acquisition to Muscat Daily. Bandar Jissah.
According to Shaza Hotels, the Salalah In May, the Ministry of Transport and
project will be its first resort project. Shaza Communication awarded the company a
Salalah will be the most luxurious resort in contract worth RO109.9mn for the first
town, a ten-minute drive from the airport. phase of the dualisation of Adam-Thumrait
The resort will also offer four dining road project.
8 fish landing centres planned

Source: Oman Daily Observer, 14 October 2015
Omans Ministry of Agriculture and located at various intervals along the

Fisheries has unveiled plans for the coast. By developing suitably designed
establishment of a string of modern Fish landing centres, the ministrys goal is to
Landing Centres at key locations along the enable help local fishermen get their fresh
Sultanates lengthy coastline. The landing catch to lucrative markets around Oman,
facilities are proposed to serve small, but as well as to commercialise their harvests
thriving, Omani fishing communities that through value-added processing and
fall outside the scope of fishery harbours exports.

s
In all, eight new fish landing centres are locations, the Fish Landing Centres are
envisioned in the current phase of the proposed to be comprehensively designed
ministrys strategy to modernise the and built.
countrys fishery infrastructure, which is
critical to sustaining and developing the On the water side, each centre will boast
nations pivotal fisheries sector. the usual protective structures such as
seawalls, revetments, ramps for boat
Locations have been identified at Hellat al hauling, beach landing facilities, and
Ghanbah and Abu Baqrah (Al Batinah navigation aids.
North Governorate), Al Sawadi (Al Batinah
South Governorate), Qurun and Tiwi (Al Facilities on the shore-side will be
Sharqiyah South Governorate) and Ayjah, elaborate, and include fish handling and
Haql and Shaikh (Al Wusta Governorate). auction halls with sun-shaded fish loading
areas, as well as fish packing halls.
As a first step, the ministry is preparing to
appoint a number of consultants to Also envisaged in the master-plan for
undertake the feasibility study, design and each Fish Landing Centre are dedicated
construction supervision of each of these areas for industrial plots that can be
Fish Landing Centres. Contract awards leased to investors for setting up ice
are due to be announced before the end plants, chilled storage facilities, and
of this year. related support infrastructure.
The selected consultant will be required to Furthermore, the ministry sees opportunity
prepare an optimum layout, as well as a for investment in ancillary fish industries
conceptual master plan, with various for fish salting, fish drying/curling, fish
options, for the phased for full-fledged canning, fish drying yards and solar
development of the landing centre specific dryers.
to the proposed location. Specific areas will also be set aside for
At Hellat al Ghanbah in Al Batinah North boat repair yards, marine supply stories,
Governorate, for example, the ministry has fuel outlets and so on.
proposed the establishment of landing At Abu Baqrah in Shinas Wilayat, the
centre facilities suitable for a tentative fleet ministry is weighing the development of a
size of around 60 FRP boats (skiffs). Fish Landing Centre suited for a tentative
The needs of government and security fleet size of around 150 fishing skiffs.
departments, including the Royal Oman Tiwi in Sur wilayat is proposed to host a
Police, Coast Guard, National Ferries Fish Landing Centre capable of
Company, Ministry of Tourism, and accommodating a fleet size of around 35
Ministry of Transport and skiffs, while Qurun in Jaalan Bani Bu
Communications, will have to be Hassan will feature a modest size facility
evaluated as well specific to that location. large enough to cater to around 25 fishing
Given their importance as nodal areas for skiffs, according to the ministry.
fisheries activities in their respective

s
Shaza oman signs financing deal for Muscat
five-star hotel projects
Shaza Oman has signed an agreement being constructed by Shaza Oman Co

with BankDhofars Islamic window, SAOC. The project is located in Al
Maisarah Islamic Banking Services, to Khuwayr, adjacent to the Muscat Grand
finance the construction of its flagship five- Mall (MGM).
star hotel in Muscat.
The hotel comprises standard rooms,
The agreement was signed by Abdul executive rooms, suites, ballroom, themed
Hakeem al Ojaili, acting CEO of restaurants, among other facilities. The
BankDhofar; Eng Abdul Rahman Ba hotel is to be managed by Millennium &
Omar, CEO of Al Madina Real Estate; and Copthorne Hotels and is scheduled for a
Eng Mohammad al Ghassani, CEO of soft launch in December this year.
Glorei.
Faisal al Tamimi, head of wholesale
The signing ceremony was also attended banking at Maisarah, said, We, at
by Eng Khamis Mubarak al Kiyumi, Maisarah, continue to be the leading
chairman of Shaza Muscat; Sohail Niazi, provider of Sharia'a-compliant products
chief islamic banking officer, Maisarah; and services. This agreement comes as
and a number of officials from both sides, part of our broader strategic plan and
a Maisarah press release said on Sunday. continuous efforts and to provide tailored
financial solutions to our diverse customer
As per the agreement, Maisarah is to base.
finance the five-star hotel that is currently
Tourism sector set to grow 8 to 10 per cent

Amid speculations following the slide in oil public entities in projecting Oman as a
prices, Omans tourism sector is 365-day-tourism destination to the world.
foreseeing a growth rate of not less than 8
to 10 per cent during the 9th-Five-Year We have had a robust growth so far and
Plan which will also see hundreds of there is a rise in investments in the sector
rooms being added to its burgeoning and we are foreseeing a growth rate of not
hospitality sector. less than 8 to 10 per cent during the 9th-
Five-Year Plan. This year, we have 1,500
Foreign investments in the sector have rooms being added to the existing hotels
seen a massive rise, thanks to the and we are in the process of adding more
unyielding efforts by the Ministry of rooms to the existing, Maitha bint Saif al
Tourism along with other initiatives of the Mahrouqiyah, Under-Secretary at the
government, as well as other private and Ministry of Tourism, said.

s
Speaking to the Observer on the sidelines infrastructure advantages and the
of the opening of Six Senses Spa at Al response is overwhelming.
Bustan Palace, A Ritz-Carlton Hotel,
Maitha added that to carry out various Additionally, she said, the hotels are
projects and to add more facilities in the witnessing massive awakening in terms of
sector, several MoUs have been signed domestic occupancy and domestic tourism
with both public and private entities. is growing.
Tourism has become a key factor in Common GCC tourist visa

signing MoUs, thanks to the governments The Sultanate will take part in the GCC
vision as this sector is playing a key role in tourism ministries meeting, due to be held
the economy. We have signed several in Qatar on Wednesday. Omans
MoUs with public and government entities
delegation will be led by Ahmed bin
which also will take off in the years to Nasser al Mahrzi, Minister of Tourism.
come.
The meeting aims at highlighting the joint
She admitted that oil prices have impacted
efforts being exerted to support tourism
the region but Oman, with His Majestys sector in the GCC countries and also
long-term vision, has not been affected includes discussions related to
and that the Sultanates economy is cooperation in the field of tourism.
stable, politically and socially and the
nation is seeing a good investment The ministers will explore the immense
scenario so far. potential to work together to contribute to
inclusive economic growth, social
It is quite obvious from the fact that development, and protection of heritage.
government funds including the pension
fund are looking at tourism sector as a The meeting is also expected to discuss
great opportunity to invest and is a major the issue of common tourist visa for the
source of income diversification. GCC, significance of private participation
in the tourism sector and setting up of a
We are very positive and optimistic of the Gulf federation for handicrafts.
days to come. The national carrier has
begun to fly to new sectors and The Sultanate will also take part in the
destinations, and is adding more capacity. 27th meeting of the GCC Justice Ministers
This is a good indicator that Omans due to be held in Doha on October 6 and
tourism is all set to grow further. 7.
She reminded that more airlines opting to

fly to Salalah is another sign and Oman The Sultanates delegation will be led by
has invited several countries to take Shaikh Abdulmalik bin Abdullah al Khalili,
advantage of its geographical as well as Minister of Justice.

s
Beachfront Jumeirah Hotels at Saraya Bandar Jissah
to redefine hospitality in Oman
A fanatical attention to detail will ensure The Jumeirah Group is known for their
beauty and serenity for guests at the 5- high-end, luxurious and distinctive
Star Jumeirah Hotels within the new properties, and the two hotels are a
Saraya Bandar Jissah development, perfect fit for their brand ethos.
currently under construction on the
outskirts of Muscat. Ashraf Mahmoud, a chartered member of
the Royal Institute of British Architects
The Senior Design Manager for Saraya (RIBA) is overseeing the design and
Bandar Jissah, Ashraf Mahmoud, talks technical aspects of the unique
about how the two upcoming hotels will development, with the two beachfront
deliver an authentic Omani experience for hotels offering a distinct choice of
guests, coupled with Jumeirahs luxurious Boutique or Resort style guest
reputation for hospitality. Great effort has experiences, operated by the pioneers in
been made in blending together a sleek the hospitality business, Jumeirah Hotels
and individual contemporary design with & Resorts.
the surroundings of Bandar Jissahs
mountainous topography, incorporating Omani themes
traditional Omani architectural themes and The Jumeirah Group has been involved in
design elements. the development of the hotels from day
one, so that Saraya Bandar Jissah and
Commenting on the two landmark Jumeirah achieve the highest possible
Jumeirah Hotels rapidly taking shape in design and construction standards,
Bandar Jissah bay, Ashraf Mahmoud working in a partnership manner to
notes, On the foreshore of Saraya Bandar achieve high end destination status. The
Jissah are the resort and boutique hotels. team of international consultants have
The resort hotel will have 206 keys while hands-on experience in developing high-
the boutique hotel will offer 112 keys. The end luxury properties, with the emphasis
Jumeirah Group making its debut in the for Saraya Bandar Jissah to be designed
Sultanate at Saraya Bandar Jissah in a way that preserves the topography of
significantly raises the bar in terms of what the site and the environment, and to
Omans tourism industry will have to offer. maintain its stunning natural beauty.

s
Sheraton Oman to reopen after nearly 10 years
The Sheraton Oman Hotel in CBD, which We expect the commercial launch of the
has remained closed since late 2006 for hotel to be somewhere around Eid al Fitr,
refurbishment, will throw open its doors by he said.
the first half of 2016.
Its been nearly nine years that the
The new push for completion of the project landmark property in CBD has been
comes after the Lulu Group bought a closed. The hotel has been closed for too
stake and now co-owns the hotel with the long and everybody is keen to see it up
Al Hashar Group. and running, the official said.
A senior official from the Lulu Group He added that the renewed push for the
working on the refurbishment project told completion has come after the Lulu Group
Muscat Daily that work is on in full swing. came on board.
We intend to complete the project by We are also working on some additional
March 31 and have a soft opening in next features like a multi-storeyed car parking
two months. We have got all the and a new food and beverages section
contractors back on board and are with special features.
currently working full time on the project.
Omran inks $78m deal for OCEC Crowne Plaza

Source: Construction Week, 30 September 2015
The Oman Tourism Development signing ceremony held at Omrans

Company (Omran) has joined hands with headquarters in Al Khuwair.
Bank Sohar as the chief financial partner
for the development of the Crowne Plaza The agreement was signed by Eng Said
within the upcoming Oman Convention al-Qasmi, chief project officer of OCEC on
and Exhibition Centre (OCEC) precinct. behalf of Omran and Rashad Ali al-
Musafir, acting CEO of Bank Sohar, in an
The financing agreement, which is valued event attended by senior officials from
at $78m (OMR30m), was formalised in a Omran and Bank Sohar.

s
Eng Ali al-Rasbi, acting CEO of Omran operated by Crowne Plaza Hotels and
noted, As our financing partner for the Resorts, part of the InterContinental Hotel
new Crowne Plaza hotel at the OCEC Group.
precinct, Bank Sohar is playing an
important role in the development of one The hotel, currently under construction,
of the most comprehensive conference includes food and beverage outlets,
and exhibition centers in the region. The meeting facilities and a health and leisure
new Crowne Plaza hotel adds significant club, will add an additional 296 keys to
guest capacity to the hospitality offering in hotel offerings in the Sultanate.
Muscat, allowing us to welcome greater Construction works on the OCEC continue
numbers of business visitors to the at pace with exhibition halls scheduled for
Sultanate. opening in Q1 2016.
He added, The agreement is part of the Omrans role extends beyond that of a
financial model pursued by Omran master developer. We have noticed an
whereby private institutions work hand-in- increasing appetite from investors to
hand with the government on commercial become involved in the nations rapidly
projects. We are currently looking at a growing tourism sector. Through
similar model of funding for the upcoming agreements such as this, we are catering
JW Marriott Hotel also under development for such enthusiasm and at the same time
at the OCEC, which like the Crowne enabling greater development within the
Plaza, is scheduled for completion in sector, added al-Rasbi.
2017. The new four-star hotel will be
Sultanate considering farming offers abroad

Source: Times of Oman, 14 September 2015
Oman is seriously considering proposals government. We hope it will not take too
to carry out farming abroad in order to long, Al Sajwani told reporters at the
ensure food security, said Fuad bin Jaafar Oman Chamber of Commerce and
Al Sajwani, minister of agriculture and Industry (OCCI) on Monday. He was
fisheries wealth. There is some good speaking on the sidelines of the In-
news. We are receiving offers of land, and Country Value (ICV) Conference 2015,
are considering these seriously. We are held by Business Process Outsourcing
prioritising these areas, and the final Services (BPOS) in association with the
decision will be (taken) by the OCCI.

s
Asked which countries were being tonnes in the next couple of years, which,
considered, the minister said, I cannot tell considering the multiplier effect, will be a
(the names of) the countries but I can sizeable contribution to the economy.
assure you that we have received land
(plots), (in fact) huge pieces of land in two New Projects
countries. According to Al Sajwani, 19 projects with a
Proposals have been received so far from total value of OMR130 million are in the
two countries, he clarified. We would like pipeline in the aquaculture sector. Some
to see that these things are finalised, of them have been already initiated, he
signed and then we can announce the said, expressing the hope that they would
investment opportunities. But these are start production as soon as possible.
not really restrictive. We are still looking at
Asked about plans for new fishing
other areas, Al Sajwani said, adding, We harbours, the minister said it is hoped that
require a safe investment place where we the number of fishing harbours in Oman
know that, whenever we need, the food would reach 31 by the end of the ninth
would come to Oman.
Five-Year Development Plan (2016-2020).
Duqm Fisheries Zone Some of them were completed late last
year while the rest are either under
Commenting on the planned fisheries construction or in the tendering or design
zone in Duqm, the minister said the tender phase, he explained.
will be floated very soon, certainly before
the end of the year, and the total Commenting on the projects announced
investment will be around OMR100 to earlier for fishermen to help them during
OMR110 million. adverse weather conditions, Al Sajwani
said, We approved (a proposal) to
This is the largest fishing harbour in the support 500 modern vessels to replace the
Sultanate. It is not only a harbour; it is a small boats and the traditional boats as
complete hub for fishing activities in the well as granting of licence to 500
Sultanate. It would include harbour as well advanced boats.
as a fishing industrial estate and also all
the facilities to promote the fishing industry Since last year, we have already started
in Oman, he said. giving licence and approval to companies
and private individuals to purchase the
It is supposed to attract fish from Oman vessels. The ministry, of course, provides
as well as from the neighbouring some financial support for these vessels,
countries, the official added. he noted.
Al Sajwani noted that the fish production in He also said that there are many
Oman is almost 235 per cent of the local investment opportunities in the ICV
requirement, which means that a lot of fish projects in areas related to food
is exported and there is still great potential processing, food production, agriculture,
to be utilised. In addition, he said Omans livestock and fisheries, which will benefit
annual fish production is expected to rise the small and medium enterprises (SMEs)
from 160,000 tonnes in 2011 to 460,000 involved in these activities.

s
We call upon Omanis, especially young The conference featured a number of
people, to come and benefit from these presentations by local and international
opportunities, the minister said, adding, speakers, who shared their experience
We would like to see more and more about various aspects of the ICV
Omanis engaging themselves in these initiatives.
activities.
Mohsin Al Hadhrami, vice president and
In his speech at the conference, the general manager, Schlumberger Oman &
minister said the agriculture and fisheries Co, spoke about sharing best practices
sector production in 2014 was worth about ICV in the oil and gas sector.
around $1.4 billion, with an annual rate of Dr. Omar Al Jabri, assistant professor,
growth of 5.8 per cent in 2014. department of natural resources'
economics at the Sultan Qaboos
He also expressed the hope that the event University, discussed aspects of achieving
would provide a platform for the private food security and sustainability through
sector companies to participate in the ICV SMEs. Parth Tewari,
initiatives, which are crucial for economic
development, diversification and World Banks lead private sector
productivity. specialist, shared his views about the role
of SMEs in economic development, the
Utilising local goods, services and international perspective and experience.
resources will also contribute to the In addition, Aubrey Joachim, a renowned
Omanisation plans, Al Sajwani said, strategist and financial expert from
highlighting the investment opportunities in Australia, briefed the participants on
logistics as well as agriculture, fisheries productivity, the source of generating ICV.
and aquaculture sectors among other
fields.
TIME Hotels set for Oman debut

Source: Times of Oman, 17 June 2015
UAE-headquartered Time Hotels visiting Oman quite often this year to take
Management will enter the Omani things forward, he said.
hospitality market, with a hotel each in
Salalah and Muscat. The property in each An international hotelier with over 28 years
of the places has not been finalised, and of experience, Awadalla has worked with
the company is currently looking at land some of the leading global hospitality
and some existing properties as well. companies including Mvenpick Hotels &
Resorts, Hilton International, Rotana
We have properties in the UAE, Egypt Hotels and now TIME Hotels Management
and Qatar and my next destination is L.L.C. TIME Hotels Management are
Oman, said TIME Hotels CEO Mohamed currently managing 10 hotels in the UAE,
Awadalla. Egypt and Qatar while four other hotels
are in the pipeline.
He also described Oman, which has got a
very rich culture, as a very promising We are planning to open 20 hotels in the
destination for tourists. For this, I will be Gulf Cooperation Council region by 2020,
he said.

s
He also said that there is a growing He also provided a detailed update on the
demand across the GCC for new budget status of two properties currently under
brands with a quality pedigree from development, the TIME Royal Hotel &
respected operators that travellers can Spa, Dubai, and TIME Rako Hotel, Qatar.
trust to deliver comfort, connectivity and
creativity when it comes to supporting The first five-star UAE-based property for
services and facilities. For this we are the company, the 277-room TIME Royal
very excited to debut our brand in Oman Hotel is located in the Dubai Healthcare
soon, he said. City, adjacent to the popular Wafi
shopping and leisure complex.
He also unveiled the details of a second
hotel in Doha plus news on the Dubai Set to open in Q2 2016, it will have a
Healthcare City property status and strong medical tourism focus with facilities
imminent launch of the TIME Express specifically designed to accommodate the
brand. Located in Al Khail, just 10 minutes needs of wellness tourists, such as
from Hamad International Airport in Qatar, signature spa featuring temperature-
the four-star hotel is scheduled to open in controlled pools, gymnasium with
the first quarter (Q1) of 2017. rehabilitation equipment, and health and
juice bar. It will also have 20 rooms
It has been a busy year for TIME Hotels accessible to the differently-abled. The
with the launch of our first luxury resort in other property will be the four-star 112-
Hurghada, Egypt, plus a raft of room Time Rako Hotel & Suites, situated
announcements including two new in Al Wakra on the outskirts of Doha. TIME
Residences in Abu Dhabi, our first Hotels pipeline of current projects also
footstep into Doha, and a new five-star includes the first in its TIME Express
hotel for Dubai. We have also launched a brand.
number of new corporate initiatives such
as our Slow Food programme and taken The three-star no frills, city centre-based
our hugely successful Carbon Offset Hotel concept will target budget-conscious
Stay into its second year. Now we are business travellers and will launch in
setting our goal in the Oman market, he Dubai with a 133-room property, which is
said. set to open in Q3 2016, he added.
$620 million project to boost Sultanate's food security

Source: Oman Daily Observer, 16 June 2015
Oman Food Investment Holding Company Mazoon Dairy Company SAOC,

SAOC, established by the government to established a few months ago by OFIC, is
invest in food security projects, is moving in the process of establishing a RO 100
forward with three projects at a total million ($258 million) fully integrated dairy
estimated investment of $620 million to set farm, centralised processing plant, in the
up massive dairy, poultry and red meat Wilayat of Al Sinaina of Al Buraimi
factories. Governorate, aimed at achieving food
security in dairy production.

s
About 70 per cent of the capital products to 70 per cent of total demand by
investment for the joint venture is derived 2020. Mazoon dairy farm, once
from state-owned entities, including Oman established, will initially have 4,000 milking
Food Investment Holding (OFIC 20 per cows, which will be gradually increased to
cent), and other strategic investors, a total of 25,000 cows. Commercial
according to Salim bin Saif al Abdali, chief operation is expected to start by 2017.
of follow-up and studies at the OFIC.
Since Oman has limitation in growing
The poultry project (named An Naama), cattle feed due to water shortage, OFIC is
estimated to cost RO 100 million will be planning to set up a project outside in an
set up in Ibri. It will produce 60,000 metric Asian or African country such as
tonnes of poultry meat annually, three Tanzania, Ethiopia or Sudan, to secure
times more than the current yearly feed for the cows.
production of Asaffa Foods, boosting
domestic production in a big way. Set up in 2012, OFIC is a state-owned-
enterprise mandated to promote food
Currently, all the poultry farms in the security in essential products. Focusing on
Sultanate together meet just 30 per cent of import substitution, rural development and
the demand for poultry products in the export-promotion, OFIC is keen to improve
country, and for the remaining 70 per cent Omans food security in main food items
the country is dependent on imports. such as dairy, poultry and red meat.
Similarly a project for food security in red
meat project, estimated to cost RO 40 Oman needs to improve its food security
million is also in the pipeline. For red meat in key food items like dairy, poultry and
project, OFIC plans to import sheep and red meat on an urgent basis. OFIC has
cows from Tanzania and Sudan and will several such projects in planning stages.
set up slaughtering houses in Salalah.
Omani authorities are also thinking
Presently, Oman produces 20 per cent of beyond food security and self-sufficiency
the countrys demand for red meat and the in that they want to ultimately be in a
remaining 80 per cent is imported and the situation wherein they not only meet the
aim is to reverse this situation. Expected domestic demand for dairy, poultry and
to generate 400 direct and indirect jobs, red meat products but also leverage the
the dairy project will produce fresh milk, competitive and comparative advantage of
fresh juice, mineral water, laban and its strategic location by positioning Oman
yogurt and market them under the brand as a centre of excellence in food products
name National Pride. and a hub for food processing activities.
Experts say the Mazoon dairy project Experts say food security today is not just
assumes great significance because about self-sufficiency, it is also about
hardly 27 per cent of Omans annual 164 recognising the fact that food is a global
million-litre demand is met by local commodity and a major force in that
companies and the remaining 73 per cent market.
is by way of imports. The aim is to
increase domestic production of dairy

s
Eight new tourism projects up for investments
Source: Oman Daily Observer,8 June 2015
The Ministry of Tourism is seeking governorates. Ahmed bin Nasser al

investments in a number of major projects Mehrzi, Minister of Tourism, had earlier
which are proposed to come up in different said that new projects including new
governorates of the Sultanate. The heritage houses and artefacts markets
projects include an environment tourist would be launched in different
camp, adventure tourism centre, governorates of the Sultanate. The
entertainment centre and chalets, tourism exploitation of heritage houses to
recreation centre and four three star accommodate tourists will encourage
hotels. individuals to attach attention to old
buildings and refurbish them for tourism
The eight new projects to be launched at purpose thereby encouraging small and
a number of tourism lands in different medium enterprises to enter this field, he
governorates are aimed at boosting said.
tourism and generate investment
opportunities for small and medium Among the new tourism projects
enterprises, said an official at the envisaged by the ministry include setting
ministry. up of guest houses in farms in accordance
Investing in tourism has become a with the specifications and conditions
required for obtaining licences. In other
common feature of Omans economic
plans. The total volume of investment as tourist sports which lack basic tourist
part of the long-term Oman Tourism facilities some houses will be used as
Strategy (2015-2040) is estimated at $35 guest houses for tourists, Al Mehrzi said.
billion including the cost of infrastructure.
The main goals of Omans tourism
strategy is to increase the contribution of
According to the official, the preparation
for the Tourism Strategy is in an advanced the tourism sector in GDP, as one of the
stage and will be unveiled in September main sources of income.
this year. According to World Travel & Tourism
Councils report, the Sultanate showed
As part of the countrys vision to leverage impressive overall progress in its tourism
on Omans competitive advantages in the sector, which is higher than other GCC
area of tourism, the ministry is developing countries in most categories. The sectors
its historical and cultural heritage contribution to GDP and in generating jobs
alongside the natural potentials, based on has been significant and forecasts see it
the principles of sustainable development, only rising. This means that the strategy to
and compatibility with the Omani culture, use tourism to veer the economy away
the official said. from oil-dependent revenue is on the right
track.
Although the environmental tourist camp is Travel and tourisms direct contribution to
to be constructed in North Batinah Omans GDP in 2014 was RO 765.1
Governorate, the other seven investment million which is 2.6 per cent of the total
projects are scheduled for both north and GDP.
south Sharqiyah and Al Dahirah

s
Ascott to open first Citadines Aparthotel in Oman
Source: Oman Daily Observer,8 June 2015
CapitaLands wholly-owned serviced Residents can choose from a range of

residence business unit, The Ascott studios and one bedroom apartments,
Limited (Ascott), has secured a contract to fully-equipped kitchens, living areas and
manage its first Citadines Aparthotel in separate work spaces. Guests can enjoy
Oman achieving its target of 40,000 an array of amenities such as swimming
apartment units globally ahead of its pool, fitness gymnasium, breakfast
planned schedule of end 2015. lounge, residents lounge and Internet
A management agreement for Citadines Al corner to cater to their work and
Ghubrah Muscat was concluded between recreational needs.
Ascott and Omans Al Ruzaiqi Group of
Companies. Lee Chee Koon, Ascotts Chief Executive
officer, said: Ascott has been expanding
We are extremely pleased to enter into aggressively to achieve our milestone of
this management agreement with Ascott, 40,000 units globally ahead of schedule.
internationally renowned for its brands, This year, Ascott has so far added 17
management and service excellence. We properties in China, Malaysia, Thailand,
are confident that the Citadines Turkey, Vietnam, Oman and the UAE. We
ApartHotel brand is perfectly in line with also opened eight properties with another
Omans growth of leisure, commercial and 15 more to open in China, India,
extended-stay tourists visiting Muscat, Indonesia, Korea, Malaysia, the
said Mohammed Hamed Salem al Philippines, Oman and Saudi Arabia this
Ruzaiqi, Chairman, Al Ruzaiqi Group of year. Such an expansive growth demands
Companies. an intimate understanding of the market
and an ability to establish the right local
Citadines Al Ghubrah Muscat is alliances. To double our portfolio to 80,000
strategically located close to Muscats units by 2020, our strategy is to expand
main artery (Sultan Qaboos Street) linking through investments, management
Muscat International Airport to Ruwi contracts, strategic alliances and
Central Business District. The property is franchises. The Ascott Limited is a
also close to the new Oman Convention Singapore company that has grown to be
and Exhibition Centre slated to open in the worlds largest international serviced
2017. residence owner-operator.

s
$300mn EPC contract signed for Oman's 1st sugar refinery
Source: Muscat Daily,7 June 2015
Oman Sugar Refinery Co (OSRC) on refining capacity is 11mn tonnes. And that
Sunday signed a US$300mn engineering, means a shortfall of 4mn tonnes, which is
procurement and construction (EPC) met by imports.
contract with China's Sinolight Corporation
for building the country's first refinery in OSRC plans to import raw sugar from
Sohar Freezone. various countries and refine it using
different processes and the finished white
Construction will start in the third quarter sugar will be sold as a branded product.
of this year with completion set for end- The company is still working on the
2017. The plant is expected to be branding of its products, Rana said. OSRC
operational by the first quarter of 2018, had secured natural gas and land for the
said Ashwin D. Rana, chief executive factory through earlier agreements.
officer of OSRC.
On exports from the facility, Rana said,
The proposed sugar refinery will have a "We are looking at selling 35 per cent of
capacity of 1mn tonnes per annum and is the company's output in the domestic
coming up on an 18-hectare plot near market, 40 per cent in GCC and the rest in
Sohar port. It will employ the latest Iran and Iraq."
technology to produce the highest quality
refined sugar. The contract will be The project will create employment
managed on behalf of OSRC by Bosch opportunities for 500 people once
Projects of South Africa, Rana said. The operational and the initial Omanisation
plant would involve a total capital level will be around 25 per cent, which will
expenditure of $300mn, which is also the eventually be raised to 92 per cent over
value of the EPC contract. OSRC plans to the next ten years. The EPC agreement
raise the required capital through a mix was signed by Nasser al Hosni, managing
equity and debt. director of OSRC, and a senior official of
Sinolight.
Gulf nations are heavily dependent on
imports, with most countries in the region The ceremony was attended by H E Yu
importing about 80 to 90 per cent of their Fulong, China's Ambassador to Oman;
food requirements. Jamal Aziz CEO of Sohar Freezone; and
officials from OSRC, Sohar Port and
Total consumption of sugar in the region is Freezone and the Chinese embassy in
currently 15mn tonnes per year, while Muscat.
Steady, sustainable growth forecast for the GCC food industry

Source: Times of Oman, 29 April 2015
The food demand in the GCC is driven by for a westernized diet, introduced by the
several factors including a growing increasing expatriate population, are
population base, increasing affluence and bringing about a change in the regions
rising tourist inflow within the region. High dietary habits, creating demand for
health awareness and a developing taste

s
organic and international foods. In Based on the International Monetary Fund
contrast, the GCCs food production is (IMF) data, the population in the Gulf is
restricted due to its arid climate, less projected to increase at a 2.4% CAGR
arable land, and water scarcity, making it between 2014 and 2019 to reach 57.6
heavily reliant on imports. However, the million.
regions abundant oil revenues have
supported its food imports as well as The already high rate of urbanization
enabled the governments to make multi- across the GCC is only set to rise in the
billion dollar investments towards future which will also impact the GCC food
improving the countrys food security, industry.
says Sameena Ahmad, Managing Urban lifestyles have raised the standard
Director, Alpen Capital (ME) Limited. of living of individuals and changed their
The GCC countries are overwhelmingly eating pattern, resulting in a shift in the
reliant on food imports to meet their diet towards protein-enriched foods as
growing requirements. The inherent well as packaged and fast foods.
growth potential of the industry largely due Consumption of such premium products
to population growth, changing has contributed to the growth of the food
consumption patterns, continued industry. The regions per capita income is
modernization of the value chain and the likely to increase at an annual average
vibrant tourism industry which is rate of 2.5% between 2014 and 2019.
complemented by the regional
governments efforts to enhance food Rising income levels have led to strong
supply, is encouraging international as preference for discretionary and high-
well as local players to enter and expand priced food products such as organic, cut-
their foothold in the sector. vegetables, ready-to-cook, marinated
meat, and flavored milk.
We see growing interest from these
companies to invest in the food sector This has, in turn, drawn international as
which expectedly will play a major role to well as local food retailers and
significantly reduce the food imports by manufacturers to establish and expand
the region in the foreseeable future. says their presence in the region.
Mahboob Murshed, Managing Director,
Alpen Capital (ME) Limited. International tourist arrivals in the GCC
region are expected to show an annual
Industry Outlook average growth of 7.8% between 2014
According to Alpen Capital, food and 2024, adding to the demand for food,
consumption in the GCC, backed by especially packaged products and cooked
encouraging macroeconomic drivers, is meals in restaurants.
expected to grow at a 3.5% CAGR
between 2014 and 2019 to reach 51.9 Modern retail formats of hypermarkets and
million metric tonnes (MT). supermarkets are gaining popularity
among busy consumers in the GCC, as
Growth drivers they cater to diverse tastes and
Rising population is one of the key drivers preferences through their wide array of
of food consumption in the GCC as it food products and brands.
naturally increases the demand for food.

s
Agriculture sector grew by 8.4 per cent
Source: Oman Daily Observer, 23 March 2015
The Sultanate is taking all steps to In 2013, the ministry started formulating a
develop agriculture and fisheries sectors comprehensive strategy to develop animal
and associated activities by introducing and plant divisions of the agriculture
modern technologies. sectors (2010-2040). The strategy, which
has been developed in collaboration with
This was stated by Dr Fuad bin Jaafar al
Food and Agriculture Organization (FAO)
Sajwani, Minister of Agriculture and
aims at ensuring optimum use of
Fisheries, during the 13th regular sitting of
resources, developing agricultural and
the Majlis Ashshura, which was held
food systems, enhancing food security,
under the chairmanship of Shaikh Khalid
generating jobs, increasing income and
bin Hilal al Maawali, Chairman of the
enhancing competitiveness of the Omani
Majlis.
products, he added.
The minister said that the two sectors
The total production of agriculture stood
have seen many achievements over the
at 1,515,000 tonnes in 2014 compared to
past five years resulting in the growth of
1,484,000 tonnes in 2013; a growth by 2
the added value of the two sectors by 8.4
per cent due to increased productivity from
per cent in 2014 compared to that in 2013.
vegetable cultivated areas from 313,000
The ministers statement covered a tonnes in 2013 to 335,000 tonnes in 2014;
number of themes highlighted by Majlis a growth of 7 per cent per year due to
including food security, strategic plan to introduction of modern systems and
develop fisheries sector (2013-2020), technologies, the minister added.
strategy of the sector (2020-2040), plant
Regarding animal sector, he pointed out
production and the animal stocks.
that the agricultural census (2012/2013)
These indicators point out that the growth pointed out that the number of animal
levels will be maintained over the coming wealth increased by 39 per cent compared
years. to that in from 2004/2005 census.
Dr Sajwani also pointed out that the The strategic plan for development of
contribution of the two sectors to the GDP fisheries sector (2013-2020) aims at
rose from RO 371 million in 2013 to RO enhancing fish production, increasing its
402 million in 2014, and that this increase efficiency and protecting natural resources
has been achieved despite the fact that from extinction.
the available resources are the same (soil
It also aims at securing safe supplies of
and water).
fish production for local consumption,
This reflects an increase in the production better utilisation of fish reserves,
and implementation of initiatives by the increasing investment by private sector
private sector. and attracting foreign investments to fish

s
and fish processing industries, as well as stressed the need to regularise expatriates
acquaculture. working in these sectors.
The members of the Majlis gave their They also discussed with the minister the
remarks on the role played by the ministry, fair distribution of investment projects and
the projects and the role of the ministry in food stores among the governorates.
protecting natural catch areas. They
OMR500m allocated for fisheries sector

Source: Times of Oman, 22 March 2015
As much as OMR500 million has been Duqm is expected to hit OMR80 million
allocated to finance the strategic plan for and this include the investments in the
the development of fishing sector between fishing port, which will be the biggest
2013 and 2020. The Ministry of Agriculture fishing port on the Omani coasts.
and Fisheries has already started
implemented this plan. The infrastructure for the fish processing
complex includes internal roads,
Fisheries sector is one of the promising electricity, water and communication
sectors in diversifying sources of the networks, as well as rehabilitating 60 land
national income, creating job opportunities plots for fisheries investments.
and ensuring high added value.
The Sultanate of Oman's fish production
The budget for 2015 gave priority to two from the seas and aqua farms, which now
major fisheries projects namely the fish stands at 210,000 tonnes, is expected to
processing complex in Duqm and gradually reach 0.5 million tonne by the
infrastructure development to increase the end of 2020 when the Ministry of
production of aqua farming. Agriculture and Fisheries completes the
implementation of its strategic plan.
About OMR53 million worth finance
agreements have been signed on The contribution of fisheries sector during
Wednesday with the Saudi Fund for the Ninth Five Year Plan (2016-2020) is
Development to finance construction of expected to increase to 3 per cent by the
fishing port and fish processing complex in end of the plan.
Duqm.
The Ministry of Agriculture and Fisheries
The agreement confirms the Omani endeavours to increase the number of
Government's commitment to enhance ports over the upcoming five years from
natural resources use in the Sultanate 19 currently to 30.
especially in the field of fisheries and
development of infrastructure. The number of workers at the artisanal
and coastal fishing sector is about 45,000
The government's investments in fishing fisherman and 10,000 in fish related
port and the fish processing industries in supportive services, such as transport and
sale.

s
Omran board gives nod to five-star hotel
Source: Times of Oman, 4 February 2015
Construction work to build a five-star hotel Three subsidiaries

at Shatti Al Qurum in Muscat will start The board members ratified the
soon, according to Oman Tourism restructuring plan of the company, which
Development Company (Omran). has resulted in the establishment of three
subsidiaries - the National Omani
Approvals have been given to build Hospitality Company (NOHC), which will
auditorium and convention rooms at Oman manage the hospitality facilities of
Convention and Exhibition Centre (OCEC) selected Omran properties, the Oman
by the board of Omran. Further, Omran Heritage Development Company (OHDC),
board has decided to restructure the which will develop and manage heritage
company by forming three subsidiary facilities in Oman, and the Oman Project
firms. The board announced the Management and Development Company
company's intention to commence (OPMDC), which is responsible for
construction works for a third five-star developing projects with a specialisation in
hotel located at Shatti Al Qurum. the hospitality sector, handling single
assets.
The W Muscat Hotel will be set in an
unparalleled location, complementing The Omran board members also
some of the most important buildings in discussed the master plan progress on
Muscat and giving guests the opportunity Oman's largest mixed-use project; the Hay
to experience the rich arts and culture Al Irfan Urban Development, which was
scene with the nearby Royal Opera recently awarded to Allies & Morrison.
House.
The meeting was presided over by Dr Ali
The new development will offer iconic bin Masoud Al Sunaidi chairman of
design and contemporary standards of Omran, and was attended by members of
luxury, coupled with the unique cultural the Omran board of directors. The meeting
experience that comes from visiting discussed the company's ongoing plans
Muscat. Omran board, which met on and projects for 2015 and the performance
February 1, approved assigning the works of Omran projects.
of third phase of Convention Centre and
facilities, which include auditorium and Board members were updated on the
theater, conference rooms and supporting progress of the OCEC, and the
facilities. developments in construction works for
the different phases of the project
The board members emphasised on the including the exhibition centre, and the
importance of adhering to the agreed construction contracts for the four-star
deadlines for each construction phase and Crown Plaza Hotel and the five-star
for the timely delivery of the completed Marriott Hotel with construction works of
first phase in 2017. both hotels planned to start this year.

s
Retail sector in region set for promising growth
Source: Muscat Daily, 2 February 2015
The retail sector in the GCC is expected to economic growth, rising purchasing
grow at a 7.3 per cent compound annual power, growing population comprising a
growth rate (CAGR) between 2013 and large proportion of expatriates, changing
2018 to reach US$284.5bn, according to consumption patterns and increasing
Alpen Capitals GCC Retail Industry penetration of international retail players.
report.
Retail structure in the GCC region is
Among other key driving factors of the undergoing significant transformation,
industry is the increase of retail sales driven by the social and economic
area, growing e-commerce segment, easy developments that have resulted in an
availability of credit and interest payment increase in modern retail formats such as
plans, increasing consumer confidence hypermarkets and supermarkets. The Gulf
and government initiatives to promote is also gearing to host events such as
infrastructure, hospitality and tourism World Expo 2020 and FIFA 2022, leading
sectors, the report said. to a growing influx of tourists and creating
immense opportunities for existing and
Food retail sales growth is anticipated to
new retailers in the region, said Sameena
outperform non-food retail sales due to
Ahmad, managing director, Alpen Capital.
higher demand for healthier and high-
value food in the region. Airport-based duty free sales in the Middle
East are estimated to increase from
Sales of supermarket and hypermarkets in
US$3.9bn in 2013 to US$6.6bn in 2018.
the region are expected to reach at
US$59.3bn, translating into a five-year This growth is expected to be driven by
CAGR of 9.2 per cent. This growth is robust passenger traffic across all the
expected to be driven by increasing leading airports in the region, the report
disposable incomes and modernization of added.
the industry.
Socio-political stability coupled with the
government initiatives directed at
The retail industry continues to maintain a increasing economic diversification is
positive momentum attributed to key creating a positive environment for
factors influencing the market like robust investors in the GCC.

s
The M&A activity in the sector has picked Damas International, Lulu Group and Al
up pace in recent times. In recent years, Meera Consumer Goods Co, said
several deals have taken place in the Mahboob Murshed, managing director,
sector that involved some of the regions Alpen Capital.
leading retailers including Savola Group,
Massive dairy plant planned in Sultanate

Source: Times of Oman, 22 January 2015
Oman government is in the process of Holding told 'Times of Oman' in an

establishing a mega dairy project with a interview.
sizeable capital investment of OMR100
million, in a move to achieve self- The OFIC will have a 20 per cent stake in
sufficiency in dairy production and food the dairy firm, which will create 400 direct
security. and indirect jobs, and the remaining 80
per cent stake will be given to investment
The joint venture is being promoted by funds (including pension funds) and
state-owned Oman Food Investment private investors.
Holding (OFIC), with active equity
participation from private sector, Oman Food Investment Holding is being
established by the government to invest in
Salim bin Saif Al Abdali, chief of follow-up food security projects, which focus on
and studies at Oman Food Investment import substitution and rural development.
Apart from fresh milk, the dairy project is production of dairy products to 70 per cent
aimed at producing fresh juice, mineral of total demand by 2020."
water, laban and yogurt. The total capital
expenditure of OMR100 million will be by "We are going to start with 4,000 milking
way of equity capital (50 per cent) and cows, but it will be increased to 25,000
term loan from financial institutions. cows by 2020."
The project will come up in a large area of
Highlighting the significance of the dairy four square kilometres. He also noted that
project, Al Abdali said that only 26 per the long-term plan is to achieve more than
cent of Oman's 162 million-litre demand is 100 per cent domestic demand in dairy
met by local companies and the remaining products and probably to export the
74 per cent is by way of imports, mainly product from Oman.
from other Gulf Cooperation Council
(GCC) countries. Al Abdali also noted that the work on the
project would start this year and the
"We need to improve our self-sufficiency commercial operation would commence
and food security of Oman in main food after two years by 2017.
items like dairy, poultry and red meat. This
is the first among several projects that are "We are also going to invest in another
planned (by the company)," Al Abdali said, project outside the country (probably in
adding: "Our plan is to raise domestic Sudan or Tanzania) to secure feed for

s
animals," Al Abdali said, adding that it have discussions with some investors in
could be by way of a contract with a third Tanzania and Sudan. We may also look at
party or by investing in a foreign reaching contracts with suppliers in
country. Oman has limitation in growing Australia or Brazil for securing feed for
grass (feed) for animals due to water animals." The company is in the process
scarcity. "That is why we are going to of identifying a location for the project,
bring feed from outside the country. We since it needs a large dry area.
RO 66m projects to boost food security

Source: Oman Daily Observer, 22 January 2015
Shaikh Saif bin Mohammed al Shabibi, benefit from the available natural
Minister of Housing, yesterday signed resources in the country. He also said the
usufruct agreements for the lands Ministry of Housing, in collaboration with
dedicated for fish farming by two private the Ministry of Agriculture and Fisheries,
sector companies. He also handed over has identified locations for these projects.
the final licenses for a third company to
set up fish farming projects worth RO 66 Al Shabibi also pointed out that the
million. ministry is currently identifying other
locations to set up more fish farming
The first usufruct agreement was signed projects. He added that certain locations
with Arabia Marine Development were specified for tourism use and have
Company to set up shrimp farming project been handed over to the Ministry of
at Qaroon village in the Wilayat of Jaalan Tourism to sign usufruct agreements for
Bani Bu Hasan in the Governorate of them.
South Al Sharqiyah over 500 hectares at a
cost of about RO 29 million. More locations were also allocated for
investment, therefore respective public
The second agreement was signed with Al organisations should select the investors
Jazeera Investment Company to set up for these projects.
abalone and grouper fish farming project
using the closed system in the Niyabat of Speaking on the occasion, Dr Fuad bin
Sharbathat in the Wilayat of Shaleem and Jaafar al Sajwani, Minister of Agriculture
Al Halaniyat Islands in the Governorate of and Fisheries, said that the three fish
Dhofar. The project, which stretches over farming projects will provide the local
30 hectares of land, will cost around RO market with around 7,330 tonnes of
34.5 million. seafood, such as shrimps, grouper fish
and abalone. The projects will also provide
In a statement to Oman News Agency more than 800 jobs for citizens. He said
(ONA) and the Public Authority for Radio that the agreements come within the
and TV, the minister said the signing of efforts of the ministry to develop fish
the agreements comes within the farming sector in collaboration with the
government interest to provide food other government organisations, such as
security, diversify sources of income and the Ministry of Housing.

s
The minister added that the projects will The production will cover a large chunk of
contribute to the development of the local the Sultanates needs. Moreover, there will
communities nearby the project sites. The be more fish farming public companies
Ministry of Agriculture and Fisheries has that will be unveiled in the coming period
19 fish farming projects which have met when the construction works start, he
the requirements and are ready to pump added. Adnan bin Salah al Ghassani,
their investments, he added.
Business Development Manager at Al
With regard to food security, he also said Jazeera Investment Company, said that
that the Omani government is doing its the project implemented by the company
best to set up projects and public in Sharbathath in the Governorate of
companies, such as Oman Investment Dhofar at a cost of around RO 43 million,
Holding to venture into poultry production will focus on abalone, grouper fish
and sale, export of gums which cost more farming.
than RO 200 million.
He added that the project which will be set
up on about 30 hectares will produce
about 1,500 tonnes per year for of
grouper, 1,000 tonnes of abalone per
year.
The project will provide 70 employment

opportunities, in addition to a number of
training courses for locals interested to
work for the company, he added.
Sohar Port eyes big role in packaging sector

Source: Oman Daily Observer, 15 January 2015
Sohar Port and Freezone plans to take full completion, our aim is to attract new
advantage of the expansion of its investment in food and food processing
petrochemicals industries in order to industries and create a cluster than can
attract downstream plastics manufacturers feed the region. Grain silos and a sugar
to the logistics hub ahead of the refinery are already in the pipeline, and as
construction of Omans first dedicated this sector grows, the opportunities for
agricultural terminal. This was the packaging companies to serve
message delivered by SOHAR officials to multinational businesses will grow.
industry leaders and experts at Arabplast
2015 and GPCA PlastiCon 2015 trade We are pleased to see the response that
shows, both held in Dubai this week. we have had to the news that more than
1.5 million tonnes of environmentally-
With the planned construction of an friendly packaging materials will soon be
agricultural terminal and anticipated influx produced at SOHAR, led by Oman
of grain products that will accompany its International Petrochemical Industry

s
Company. This will centre on production of Thirty per cent of packaging is made from
PET typically used in the manufacturing of plastics, and 90 per cent of the regions
single-serve beverage and soft drink foodstuffs are imported. Much of this is
bottles, said Executive Commercial pre-packaged elsewhere at a higher cost
Manager, Edwin Lammers. and our aim is to leverage our low-cost
energy resources to reduce that cost.
In addition, the Liwa Plastics Project will
provide polyethylene and polypropylene to However, packaging is not the only option
packaging companies interested in setting available to potential investors. High
up operations at Sohar Port. This $3.6 density polyethylene and PET can be
billion steam cracker project is being extruded for use in large-scale water and
developed at Sohar Port by Oman Oil other types of piping, for example.
Refineries & Petroleum Industries and will
be integrated with the existing refinery, This bodes well for the regions
aromatics plant, and polypropylene plant. construction industry, though we do not
envision Sohar being able to supply this
But packaging is not the only option, industry just yet.
according to Lammers. The link between
food and plastics is clear. The global Nevertheless, all of the plastics that will be
packaging industry will generate $975 produced at the port remain extremely
billion in sales by 2018, and 60 per cent of versatile, he said.
that will be created in the food industry.

s

Oman Market Report 2016

Hochgeladen von

Dokumentinformationen

Originalbeschreibung:

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Oman Market Report 2016

Hochgeladen von

Copyright:

Verfügbare Formate

OMAN MARKET

26-28 September 2016

News on the Food & Hospitality Industries in Oman

Food & Hospitality Oman 2016 Market Report

Food & Hospitality Oman 2016 Market Report

As part of the governments long-term A considerable percentage of this are four-

Major Tourism Projects in Oman

Food & Hospitality Oman 2016 Market Report

Jebel Sifah Complex Construction of 18 apartments and 63 US$ 2.5 billion

Al Sodah Island, Salalah Phase 1: Construction of five hotels,

Duqm Hotel Project A four-star business hotel with 230

Fort Hotel A five-star boutique hotel with 120 guest

Oman Convention & Design and construction of a convention US$ 1 billion

Food & Hospitality Oman 2016 Market Report

JW Marriott Hotel Project Construction of a 5-storey, 5-star hotel US$ 91 million

The Retail Segment

Food & Hospitality Oman 2016 Market Report

Lulu Hypermarket Muttrah Fish Market Carrefour Supermarket

Agriculture and Fisheries

Food & Hospitality Oman 2016 Market Report

Food & Hospitality Oman 2016 Market Report

Pact for S40m food processing plant at Sohar Freezone

Food & Hospitality Oman 2016 Market Report

Indias Usher Agro JV to set up $40mn rice and pulses

Food & Hospitality Oman 2016 Market Report

Ghantoot transport to build RO70mn Shaza Salalah resort

Food & Hospitality Oman 2016 Market Report

8 fish landing centres planned

Omans Ministry of Agriculture and located at various intervals along the

Food & Hospitality Oman 2016 Market Report

Food & Hospitality Oman 2016 Market Report

Shaza Oman has signed an agreement being constructed by Shaza Oman Co

Tourism sector set to grow 8 to 10 per cent

Food & Hospitality Oman 2016 Market Report

Tourism has become a key factor in Common GCC tourist visa

She reminded that more airlines opting to

Food & Hospitality Oman 2016 Market Report

Food & Hospitality Oman 2016 Market Report

Omran inks $78m deal for OCEC Crowne Plaza

The Oman Tourism Development signing ceremony held at Omrans

Food & Hospitality Oman 2016 Market Report

Sultanate considering farming offers abroad

Food & Hospitality Oman 2016 Market Report

Food & Hospitality Oman 2016 Market Report

TIME Hotels set for Oman debut

Food & Hospitality Oman 2016 Market Report

$620 million project to boost Sultanate's food security

Oman Food Investment Holding Company Mazoon Dairy Company SAOC,

Food & Hospitality Oman 2016 Market Report

Food & Hospitality Oman 2016 Market Report

The Ministry of Tourism is seeking governorates. Ahmed bin Nasser al

Food & Hospitality Oman 2016 Market Report

CapitaLands wholly-owned serviced Residents can choose from a range of

Food & Hospitality Oman 2016 Market Report

Steady, sustainable growth forecast for the GCC food industry

Food & Hospitality Oman 2016 Market Report

Food & Hospitality Oman 2016 Market Report

Food & Hospitality Oman 2016 Market Report

OMR500m allocated for fisheries sector

Food & Hospitality Oman 2016 Market Report

Construction work to build a five-star hotel Three subsidiaries

Food & Hospitality Oman 2016 Market Report