Fastest growing companies in Oman – OER-United Securities Survey 2015

OER-United Securities fastest Growing Companies in Oman Survey 2015, reveals a list of stellar companies which are beating market averages by a stretch. An OER report.
Fastest growing companies conjure up an image of businesses which are agile, have an ability to think on their feet and respond to setbacks swiftly. Though these attributes may sound simple, internalising them into the DNA of a company and practicing them over a period of time is a herculean task. On the other hand, practitioners of these virtues remain ahead of the pack, generate consistent shareholder return and post good numbers. An analysis of OER’s fastest growing companies over the years, throws up a set of reasons that underpin their success, and here is a look at a few of them.
First and foremost, these companies are ‘Great places to work’. They give their employees a stake in the company’s success, in the form of profit sharing, or performance linked bonuses. Whenever the company does well, all employees share in the success. They also provide employees with ongoing opportunities and incentives to learn, develop and grow. Finally, they stand for something that goes beyond profits. They create products or provide service that clearly adds value to customers or stakeholders, giving their employees a sense of fulfillment. These traits enable them to recruit and retain talented people.
Fastest growing companies are successful businesses that keep on moving forward. A number of companies get stuck in their comfort zone, failing to take the leap to the next level. But the best amongst the lot are flexible in bringing about a change in direction and adjusting the way their business operates in an altered environment.
Growth businesses understand the needs of their customers and work assiduously on satisfying them, better than others in the market. They differentiate themselves from the competition, by providing cutting edge products and services. While there is no silver bullet, a stress on R&D, extensive market research and a commitment to provide nothing but the best, gives them an edge.
The inability to raise finance can be a major obstacle for any business. Not being able to access the right level of finance at the right time can hamper growth or even lead to the collapse of a business. Successful companies keep a tab on their cash flow, ensuring that their finances are in order. They are open to innovative new products to help ease cash-flow problems and fund faster growth.
The most successful entrepreneurs are willing to take calculated risks. Failure to take calculated risks can be as damaging as taking the wrong kind of risks. The fastest growing companies assess risk, against potential opportunities and put in place a plan of action to get it right. The courage to go into unknown territory, helps them to make that quantum leap.
In the start-ups stage companies tend to be lean organisations, often with one or two key people doing the majority of tasks. Entrepreneurs are adept at multitasking, but as a business grows, structures and processes need to be implemented. Successful companies bring on board the right skills and expertise to support growth and enlightened business leaders are aware of the need to hand over the reins in various areas to competent professionals, in time.
OER’s fastest growing companies exhibit all these traits and more. They have the maturity and sagacity to realise the needs of their business and grow rapidly. They are also role models whom others can emulate and learn from.
LARGE CAP COMPANIES
Dhofar International Development and Investment Company
Maximising returns
Dhofar International Development and Investment Company has emerged as a leader amongst the fastest growing companies in the large cap segment based on its consistent performance
Dhofar International Development & Investment Company (DIDIC) is one of the leading companies in Oman in the field of promotion and initiation of investment opportunities. As on December 31, 2014, DIDIC’s subsidiaries include Dhofar Investment and Real Estate Services Company; Garden Hotel; Dhofar International Energy Services Company. Its associates are Financial Services Company; Bank Dhofar; Dhofar Insurance Company; Oman Investment & Finance Company; Al Omaniya Vegetable Oil & Derivatives Company; Salalah Medical Supplies Manufacturing Company; Dhofar International Development & Investment Holding. Dhofar University, Dhofar Tourism Company, Salalah Port Services Company, Oman Oil Marketing Company and Iskan Oman Investment Company are other entities where DIDIC has a stake.
Since its inception, DIDIC has focused on diversification of its activities to cover various economic fields, and accordingly it established a bank in Oman, a financial services company, insurance company and tourism company. It played an essential role in the development of Salalah Port and in the inception of a host of factories and industrial plants in the Sultanate. It actively contributed in the establishment of a university in Dhofar Governorate in addition to its keen interest to participate in the development of Salalah Free Zone.
DIDIC contributed, along with other investors, in the establishment of a private power generation project in Salalah. The company played the above roles because of the benefits of the realised contributions in the development of the country and generation of good returns to the investors.
Al Anwar Ceramics Tiles Company
Operational excellence
Continuous improvement programmes, effective global sourcing and employment of appropriate technologies have helped Al Anwar Ceramics Tiles Company to emerge as an industry leader
Al Anwar Ceramic Tiles Company (AACT) enjoys the rare distinction of being the first manufacturer of ceramic tiles in Oman. Established in 1998 with the start of its first manufacturing facility at Nizwa, the company markets its range of glazed wall and floor tiles under the brand name ‘Al Shams’. It provides third firing products, such as borders, highlighters, listelloes, decors, skirtings, and pencils. The company also exports its products to other GCC countries.
The Nizwa plant uses machinery and technical know-how of leading Italian companies. Locally available raw materials, with frits, glazes and pigments imported from leading manufacturers in Italy and Spain are used for production.
In 2014 AACT registered a gross revenue of RO28.8mn and a pretax profit of RO11.05mn, signifying a revenue growth of nine per cent and a profit growth of 23 per cent over the previous year. Its net profit after tax stood at RO9.77mn. The company’s five lines are operating at full capacity and during the year AACT produced 17.13 million sq mtrs of tiles.
The company’s emphasis on continuous improvement programmes, effective global sourcing, employing appropriate technologies and optimum levels of automation has helped it to reduce time, process losses and costs while enhancing throughput and yield. Benign commodity prices have also helped to keep costs in check. At AACT, strict quality control measures are in place to ensure every Al Shams tile is crafted to perfection. An ISO 9001:2000 certification in 2006 was recognition of the fact. Quality coupled with an efficient dealer network has made Al Shams the largest selling ceramic tile brand in Oman.
Oman Cables Industry
Geographical footprint
Oman Cables Industry’s comprehensive distribution network across the GCC gives it a competitive edge in the regional market
The year 2014 was one the best performing years for Oman cables Industry (OCI) in terms of profitability. The company increased its capacity for wires and cables and special projects initiatives. It introduced the latest technological systems and upgraded machinery as well as implemented an Integrated Management System (IMS). As a result of these measures, OCI was ranked as the number two cable company in the GCC by Integer.
OCI develops, manufactures and markets a totally integrated variety of electrical cables and conductors for diverse applications, including medium voltage power cables, low voltage power and control cables, instrumentation cables, pilot cables, overhead power transmission line conductors and building wires. The company has positioned itself as a recognised power cable manufacturer following international standards and accreditations to ensure that highest quality product are delivered to its customers on time. They constantly research the demands and trends within the varying market sectors and provide a specialised service for each customer needs. Oman Aluminum Industries (OAPIL), based in Sohar, a joint venture between Oman Cables Industry and Takamul Investment Company performed well and has made a positive contribution to OCI’s overall results. The company has demonstrated its capabilities in dealing with large international engineering, procurement and construction (EPC) corporations and has succeeded in establishing long term arrangements.
Despite volatilities in metal prices and low oil prices, Oman Cables is poised to manage its operations and customer demands accordingly. The company expects to maintain its presence in the market and to benefit from the continuous expenditure on infrastructural projects in the GCC combined with its competitive cost structure, expansion plans, sound financial position and a reliable customer base.
OMINVEST
Creating value
The recent merger of Ominvest and ONIC Holding has created the largest investment company in Oman, bringing about significant advantages in its trail
Ominvest (Oman International Development and Investment Company) is among the longest established investment companies in the Gulf region and one of the first to be listed both in Oman and the region. It has built its success on the solid foundations of consistent performance from its portfolio of investments within and outside the Sultanate over the 30 years of its existence.
Ominvest’s stated objectives are to provide its shareholders with a consistent annual return on their capital, together with an opportunity to participate in long-term gains from its investments within and outside the Sultanate. The aim is to enhance shareholder value by generating above market returns on share capital with sustainable long term growth. The recent merger of Ominvest and ONIC Holding has created the largest listed investment company in Oman. The well thought-out merger entails significant and sustainable value creation for all shareholders of the combined entity. There are definite advantages of the merger – some of the key benefits include stronger and diversified shareholding base; diversified interests in financial services and other growth sectors; economies of scale, leading to operational and financial synergies; enhanced quality of earnings; much stronger and diversified balance sheet; larger and stronger management teams; bigger market capitalisation, bigger stock float, and increased liquidity.
Ominvest is constantly exploring opportunities to increase and diversify its investment portfolio within and outside the Sultanate with the dual goals of growth in earnings and mitigating earnings volatility. The company also aims to participate in ventures that contribute to the economic development of the Sultanate and function as a fully integrated investment and financial services group.
A’Saffa Foods
Uncompromising standards
A focus on quality, stringent manufacturing standards and conformity to international specifications have helped A’Saffa Foods carve a reputation for itself in the market
A’Saffa Foods, established in 2001, is the largest fully integrated poultry project and food processing plant in the Sultanate. Since its inception, A’Saffa has achieved leadership in most poultry product categories it has ventured into, succeeding in gaining a good reputation through uncompromised quality, stringent manufacturing standards and conformity to international specifications.
A’Saffa Foods is accredited and certified by the highly recognised international certifying body TUV. It has an ISO 9001 for total quality management system; an ISO 14001 for environmental management system and is certified by HACCP – for food quality and hygiene.
The poultry farms are located on a 40-square kilometre area in Thumrait, Southern Oman and the state-of-the-art-plant in Thumrait, produces high quality fresh and frozen poultry produce. ‘A’Saffa’, ‘Khayrat’ and ‘Taybat’ value added processed products are produced at the state-of-the-art, highly automated processing plant in Muscat. A’Saffa maintains its commitment to produce and supply quality poultry products and takes into consideration the ethical concerns in animal welfare.
A’Saffa Foods has further enhanced its leadership position across distinct business verticals – A’Saffa Food Processing and A’Saffa Logistics today, boasts of 24×7 back-end support backed by a constantly expanding sales and marketing network in Oman, GCC and MENA region.
A’Saffa has successfully made inroads into the international markets. Today, A’Saffa has an exceptional track record of exporting frozen chicken to countries like UAE, Qatar, Bahrain, Kuwait, Saudi Arabia, Yemen, Iraq, Lebanon, Egypt, Vietnam, China and Pakistan.
Bank Sohar
Steady course
Bank Sohar’s focus on following a course of sustainable growth helped it post good financial results during the last financial year
The year 2014 was yet another successful year for Bank Sohar as it continued to evolve and make its mark on the banking and financial landscape of Oman. Building on the previous year’s outstanding performance, the bank garnered key gains in a number of core areas of its business in 2014 – the result of an unwavering focus on sustainable growth. The bank’s dedication to excellence is clearly evident in the awards it has received over the years. The bank received 21 local, regional and international awards, with acknowledgements varying from financial excellence and growth to unique products and CSR awards. This includes being named the ‘best financial brand Oman 2014’ by renowned UK based Global Brands Magazine as well as receiving ‘the diamond eye award for quality, commitment and excellence’ from the French based Otherways Management & Consulting Association and ‘business excellence award’ by Texas based, World Confederation for Business (WORLDCOB), among others.
Boosted by its strong operating performance, Bank Sohar registered a net profit of RO29.87mn for the year 2014 compared to RO26.871mn for the previous year, entailing a year-on-year increase of 11.19 per cent. The operating profit for the year was RO38.988mn compared to RO31.73mn in 2013, an increase of 22.85per cent. Net interest income during the year climbed 9.34per cent to RO47.59mn, compared to RO43.52mn in 2013. Impressive gains were achieved in other areas of the bank’s business as well. Net loans and advances jumped 14.02 per cent during the year to touch RO1,423mn, against the previous year’s level of RO1,248mn. Customer deposits grew by 11.44 per cent to RO1,552mn during the year, as compared to RO1,392mn in 2013. The overall gross loans stood at RO1,455mn as of end 2014 compared to RO1,273mn in 2013, representing an increase of 14.25per cent for the year.
The impressive financial performance during 2014 was the result of the continued hard work and commitment of the bank’s staff to deliver excellent service to customers in a competitive environment.

SMN Power Holding
Strong framework
SMN Power Holding’s Barka II and Al Rusail plants clocked a high level of power and water availability underscoring the strength of its operations
SMN Power Holding through Barka II and Al Rusail plants achieved excellent operational performance, with both plants demonstrating a high level of power and water commercial availability during the year 2014. The business model of both the project companies held by SMN Power Holding Company (SMN Barka and Al Rusail) is based on a strong contractual framework with solid and reliable partners. Further, back-to-back contracts significantly reduce the risks over a long-term period.
The company over the year 2014 dispatched an aggregated net power volume of 4,913 GWh and a total volume of 42, 679,362 m3 of potable water. The increase in power volume is linked to higher dispatch at Barka II compared to the previous year. However, there is no impact on the gross profit of the company since financial performance is primarily linked to availability. Barka II commercial availability for the year was 91.7 per cent for power and 94.6 per cent for water. At Al Rusail, the power commercial availability during 2014 was 89.2 per cent. Omanisation is a principle the company embraced and is implementing since its inception. The management believes in a strong internal control system. Control environment has been further reinforced over the year 2014 by continuously enhancing the organisation of the company and further implementing policies and procedures on key processes. The key achievements of the company include an excellent health and safety (H&S) performance with no lost time accident (LTA) in 2014. The management of the company remains confident in 2015, thanks to the robustness of the power sector in the Sultanate, the increasing performance of the plants over the past two years.
Ahli Bank
Banking on efficiency
Ahlibank has continued on its consistent and fast-paced growth trajectory across all verticals
The financial results for the year ended December 31, 2014 reflects Ahlibank’s growth in key areas in line with the bank’s business plan and an increase in core earnings. Net profit increased by nine per cent, and went up to RO25.1mn, as compared to RO23mn in 2013. Total assets stood at RO1,645mn from RO1,339mn last year – an increase of 23 per cent. Loans and advances portfolio increased by 26 per cent, to RO1,389mn in 2014 from RO1,105mn and the loan book continues to be of a very high quality as reflected in our NPL ratio of 0.97 per cent in 2014 (2013: 0.97 per cent). Customers’ deposits grew by 13 per cent from RO955mn to RO1,076mn in line with the bank’s strategy to build a stable low cost deposit base. Continued focus on enhanced productivity and business diversification resulted in an improvement in the operating income by 11 per cent (RO51.6mn in 2014, as compared to RO46.6mn in 2013). Operating expenses (excluding loans and investments impairment net of recoveries) were controlled at RO17.7mn, due to prudent cost spends resulting in a best in class cost to income ratio of 34.2 per cent. Equity increased to RO200mn in 2014, from RO185mn in 2013 (an eight per cent increase).
The bank’s retail lending went from strength to strength, for both conventional and Islamic customers, through an expanded product offering. The bank has over the past year, concentrated on a segmented offering through special packages to companies and ministries by having road shows. In addition, it has tied up with real estate developers to offer under construction property financing at competitive pricing to cater to first time home owners.
Ahlibank’s corporate banking brand continued to grow too. Its industry specific teams have developed a deep understanding of their markets, ensuring fast turnaround times across all competitively priced banking services.
National Bank of Oman
Strategic vision
National Bank of Oman took a number of concerted initiatives to emerge as the bank of choice for customers
The year 2014 marked a milestone in National Bank of Oman’s (NBO) distinguished history for two very important reasons. Firstly, it was an outstanding one in terms of financial performance. The bank recorded its strongest ever net profit, crossing RO50mn for the first time, while net loans, advances and financing activities were up 12 per cent, and operating income by 10 per cent. It’s Muzn Islamic Window, overseas branches in the UAE and the wholesale banking business recorded strong and impressive results. NBO also issued a successful five-year $500mn bond under the Euro Medium-Term Note (EMTN) Programme, which made a significant contribution towards the diversification of the bank’s funding base as well as a reduction in its funding costs.
Secondly, in 2014 NBO began a transformational journey to establish itself as the bank of choice. This included the launch of a series of initiatives designed to improve the bank’s revenues, range of products, operational efficiency and service delivery. Many of these have already started coming on-stream and have begun delivering results.
NBO is operating from a rock solid platform with a crystal clear vision and a robust five-year growth strategy. Notwithstanding the challenges that lower oil prices present, the bank is strongly positioned for continued growth, driven by a stable and well diversified funding base, good asset quality and good Non-Performing Loans (NPL) coverage, a well-established UAE operation and a promising Islamic banking window. The retail and corporate businesses also continue to be core contributors to the bank’s revenues. The bank is strengthening its overall capabilities and focussing on driving digital leadership to enhance customer experience. NBO’s vision is to be the bank of choice by delivering a consistently superior customer experience through all its customer touch-points.
BankDhofar
Social conscience
BankDhofar believes in promoting social welfare by helping SMEs and giving growth opportunities to its Omani staff, as an integral part of its growth strategy
BankDhofar continued to grow in all key areas in the year 2014 and crossed RO3bn in total assets and RO2bn in net loans, advances and financing to customers, showing a growth of 18.42 per cent from RO1.90bn at the end of December 2013. The customer deposits mobilised by the bank achieved a growth of 22.17 per cent from RO2.03bn at the end of 2013 to reach RO2.48bn at the end of 2014.
The key profitability indicators have also recorded positive growth, with net interest and financing income recording a strong growth of 15.46 per cent reaching RO76.79mn for the year 2014 compared to RO66.51mn in 2013. Non-interest and non-financing income such as fees and commission, foreign exchange profit, investment and other income reached RO22.06mn in 2014 as compared to RO23.04mn, achieved in the previous year. The net profit for the year 2014 achieved by the bank was RO40.45mn as against RO35.41mn, showing an increase of 14.23 per cent year-on-year, excluding the effect of legal case write back of RO26.1mn (before taxes), in 2013.
BankDhofar has embarked on a growth strategy to fortify its role as a leading financial institution. In addition to the unique products and services that the bank offers in the market, it is committed to continue providing financial solutions to cater to the needs and requirements of its customers and to meet their aspirations. Supporting SMEs is one of the key pillars of the bank’s operational strategy, in addition to supporting larger corporates and government institutions through customised project financing solutions. The bank has put in place plans to provide more job opportunities for Omanis and to participate in the knowledge transfer and exchange of expertise in the business sector.
MID CAP COMPANIES
Al Anwar Holdings
Growing from strength to strength
The year 2014-15 was very eventful for Al Anwar Holdings, with the company recording the best-ever profit numbers in its history
Al Anwar Holdings is an investment holding company that is publicly traded and listed on the Muscat Securities Market. The company was formed on December 20, 1994 with a mandate to identify, promote and participate in equity of business ventures. Originally promoted for investments in Industrial ventures, the company  has invested in power sector, oil & gas, glass and paints, computer stationery, investment castings, construction & infrastructure and packaging catering to the FMCG industry.
The year 2014-15 was very eventful for Al Anwar Holdings, with the company recording the best-ever profit numbers in its history. Investments in Oman contributed positively by way of share of profits and the company carried out two major divestments. During the year, the IPO of Al Maha Ceramics was successfully completed. The issue was oversubscribed by over 19.5 times and the shares were listed on the MSM with a listing gain of over 69 per cent. Further, the company successfully completed the sale of its entire 33.63 per cent stake in Taageer Finance Company generating liquidity of over RO13 mn.
AAH will continue to pursue its ‘buy and build’ strategy that seeks value creation by increasing scale and unlocking potential in portfolio companies through serial bolt-on acquisitions and strategic initiatives, which ensures income generation and sustainable earnings over the medium and long term.
Oman Fiber Optic Co
Setting new trends
The Fiber Drawing Towers, which will commence in Q4 of 2015 will differentiate Oman Fiber Optic from other players in the market
Oman Fiber Optic Co is registered as a joint stock company in the Sultanate. The company, which was established in 1996 and commenced cable production in early 1999, is engaged in the design and manufacturing of fibre optic cables, trading of copper cables and cable laying services and broadband wireless communication networks. OFO offers a wide range of fibre cable solutions to meet the ever expanding communication needs of telecom companies, utilities, oil and gas sector, defence, institutional users and system integrators. The company’s services extend far beyond design, manufacture and supply of fibre and cable products. OFO offers technical consultancy on choice of fibre types, design of cables and addresses the training needs for various customer segments. The company uses state-of-the-art technology to draw fibre and manufacture world-class fibre cable products. OFO has established a reputation for high-quality fibre cable supplies and has successfully partnered with customers in the AGCC region, the Middle East, Europe, North America and the Asia-Pacific.
The new manufacturing facilities at Rusayl with the latest machinery was installed in 2014. The Fiber Drawing Towers, which will commence in Q4 of 2015 will differentiate OFO from other players in the market.
Oman United Insurance Company
Customer’s delight
To mitigate the negative impact of severe competition, Oman United Insurance Company has placed more focus on retail business
Oman United Insurance Company is one of the leading national companies in Oman, with a futuristic vision and a deep understanding of the day-to-day insurance needs of the general public, and also the industrial, business and medical sectors. The company has seen a steady business growth since 1986 in the insurance market. Keeping in mind the individual’s interests and safety, the company has designed new insurance packages with wide coverage for industry and commerce, lenders and individuals alike. The reinsurance programme led and supported by global leaders enables the company to write desirable business in a flexible way with minimal referral.
The management has been endeavouring to find out alternative source of income. Therefore, it is working on exploration of new products. Revision of the market mix will also be conducted. To mitigate the negative impact of severe competition, the company has placed more focus on retail business.
As far as the local economy is concerned, the expected growth in national gross domestic product (GDP) in 2015, accompanied by the substantial spending in infrastructure projects in the Sultanate all together will enhance the growth of Oman’s economy. The company is hopeful that this will be positively reflected on the insurance sector.
Oman ORIX Leasing Company
Targetting operational efficiency
Oman ORIX achieved the highest profits and business volume in its history during 2014. The company will continue to focus on writing good quality business and will improve its operational efficiencies thereby controlling costs
Oman ORIX Leasing Company (OOLC) was incorporated in 1994 as a joint venture between reputed local and foreign financial institutions including International Finance Corporation, a member of the World Bank group. It was listed on the Muscat Securities Market in August 1994 and commercial operations started in October 1994.
The company’s main objectives are to provide medium term asset financing to productive sectors of the economy with emphasis on serving small and medium-size business enterprises (SMEs) as well as lease financing to the consumer sector.
Oman ORIX achieved the highest profits and business volume in its history during 2014. The profit after tax for 2014 was RO4.54mn, which is 23 per cent higher than the previous year. Lease inc48ome was RO13.15mn compared with RO10.3mn in 2013, an increase of 27 per cent. The networth of the company increased to RO32.43mn, compared with RO29.68mn in 2013.
The company will continue to focus on writing good quality business and will target business growth during the remaining year 2015. The company also aims to improve operational efficiencies thereby controlling costs.
Dhofar Insurance Company
Risk management
Dhofar Insurance Company has initiated steps to launch new branches in the near future to provide better services and care to its clients.
Dhofar Insurance Company, which was established with a paid-up capital of RO3mn, is currently the largest insurance company in Oman and the third largest in the GCC region, in terms of premium value and capital.
The company’s principle activities comprise writing all classes of insurance. The company’s mission is to help people manage the risks of everyday life, recover from the unexpected and realise their aspirations. Its success is built on a foundation of shared values — quality service and relationships, mutual trust, integrity and financial strength. The profit for the year 2014 amounted to RO3.3mn (after tax) compared to RO4.64mn during the year 2013. The gross premium written for the year 2014 amounted to RO64,09mn compared to RO62.44mn for the corresponding period in 2013, while the total underwriting results for the year 2014 amounted to RO9.34mn compared to RO7.99mn for the year 2013.
The company’s vision for the future is to be the customer’s first and best choice in the products and services. Over the years, it has developed substantial relationship on an international level be it in the Europe, Middle East and the Far East. These partnerships have increasingly assisted on the re-insurance and training aspects, enabling the company insure risks beyond hundreds of millions. The company has initiated steps to launch new branches in the near future to provide better services and care to its clients.
Sohar Power Company
Powering the economy
Sohar Power is committed to provide reliable power and water to the growth of the Sultanate, encompassing high standards of safety and corporate governance
Sohar Power Company owns and operates the largest power generation and water desalination plant in the Sultanate.
SPC was incorporated in 2004 after the award of Sohar IWPP project in a competitive tender. The company has built and owns the 585MW electricity generation and 33MIGD seawater desalination plant in Sohar. The plant is located in the Sohar Industrial Port Area in Al Batinah region.
Since its commercial operation on May 27, 2007, it has been selling power and water to Oman Power and Water Procurement Company (OPWP) under a long term power and water purchase agreement (PWPA). In addition to strong operational and financial results, Sohar Power is committed to provide reliable power and water to the growth of the Sultanate, encompassing high standards of safety and corporate governance.
During the year 2014, the energy delivered was 3,497.3 GWh, with a utilisation factor of 75.6 per cent. The total water delivered by the water plant was 48,875,592 m3, with a utilisation factor of 97.6 per cent.
Going ahead, it is expected that the company will operate reliably and deliver continuous supply of power and water to its customers, while undertaking periodic maintenance activities in a safe working environment for its employees, contractors and visitors.
Al-Fajar Al-Alamia
Expanding horizons
Al Fajar Al-Alamia’s vision is to be the most respected and recognised commercial explosives and drilling and blasting operator in the Middle East
Al Fajar Al Alamia Company (formerly Hajar Explosives Trading Company and Hajar Explosives Manufacturing Company) is an Omani company with worldwide connections. It was set up in collaboration with ICI Nobel’s Explosives Company, one of the largest commercial explosives company in the world. Since inception, the company has complied with the strict and uncompromising standards related to explosives. It has been the key supplier of explosives and accessories which have made the construction of an intricate network of roads possible over rocky terrain and has also provided explosives products required for mining and quarrying operations, cutting trenches when laying oil and gas pipelines and in road and harbour construction.
The rock requirement in the region is certain to increase with the development requirement for the 2020 Expo in Dubai and the 2022 Football World Cup in Qatar and the general infrastructure improvement in the GCC region. Major infrastructure projects in the pipeline such as the Railway, Khasab-Dibba Road, Mirbat Naval Base, Thumrait Seismic Project, Duqm Pipeline and the opportunities in the Sultanate for mining activities are certain to enhance the company’s performance in the coming years.
The company’s vision is to be the most respected and recognised commercial explosives and drilling and blasting operator in the Middle East by offering customers the best possible products and optimum service while delivering projects that consistently meet international standards. The company’s mission is to expand and grow steadily, by utilising safe and quality practices to manufacture and deal in commercial explosives for rock blasting, and carry out drilling and blasting projects that consistently meet world standards.
The company has, in order to widen its footprint, decided to venture into overseas markets. The management has already shortlisted a few countries that has good scope for professional drilling and blasting services and feasibility studies are in progress.

Salalah Mills Company
Meeting customer requirements
Salalah Mills Company has planned to add a new flour mill with a capacity of 600 metric tonnes per day, which is expected to commence production in 2017
Salalah Mills Company (SMC) is an Omani joint stock company engaged in the milling of wheat and selling of flour, bran and feed. SMC which commenced its commercial operation on January 1, 1998, is located at the Raysut Industrial Estate. The company markets its products primarily in Oman, Africa and other countries. The company’s subsidiary Salalah Macaroni Company is involved in the production of macaroni pasta and related food products.
SMC was formed in 1995 with about $18mn investment with the intention of milling and distributing premium quality wheat products to the growing Omani market and export to African and other neighbouring countries.
The company’s products include bread flour, baking flour, chakki atta, jareesh, harees, semolina, barley, wheat, barley and bran mix, wheat bran and feed flour. The mill is installed with the state-of-art technology equipment from Buhler, Switzerland which is the world leader for milling industries. SMC is the largest flour mill in Oman with the production capacity of 1,500 metric tonnes per day. The company has planned to add a new flour mill with a capacity of 600 metric tonnes per day, which is expected to commence production in 2017. The new expansion will help the company to mee the growing demand in the domestic and export markets.
Voltamp Energy
Strong credentials
Voltamp Energy has taken a number of steps to reduce potential impact of oil price decline with emphasis on developing new markets for its products
Voltamp Energy is a prominent player in the LV Distribution Systems market. The company is known for manufacturing low voltage switchgear panels in partnership with Schneider, France. The operations of the company include the following subsidiaries:  Voltamp Transformers Oman LLC, a 100 per cent subsidiary of the company that has registered a strong growth in revenue and profitability; Voltamp Power LLC, a 100 per cent subsidiary company that has received product approvals from all the utilities and oil & gas customers from the Sultanate and Oman Transformers (India) Private Limited (OTIPL), a 100 per cent subsidiary that is continuing to provide design and procurement support to VOES and its subsidiaries.
The company has shown strong operational growth during 2014 with the growth in economy and the various measures taken by the management in enhancing capability and productivity. Continued low oil prices may result in slowdown of oil & gas projects from where the company gets part of its revenue. The company has taken a number of steps to reduce potential impact due to this with emphasis on developing new markets for company’s products.
To provide customised solutions to the clients, the company has a full-fledged in house design and engineering team equipped with state of the art, Auto CAD Systems. It regularly upgrades its design capabilities to keep in line with state of the art improvements in low voltage switchgear products. The company has excellent credentials in the market as its clients from across the GCC region vouch for its quality products and reliable aftersales service.
United Finance Company
In growth mode
United Finance Company believes that Government’s development initiatives are expected to generate demand for equipment, heavy vehicles and cars and provide sufficient opportunities for expansion of credit
United Finance Company is one of the leading finance companies operating in Oman. Established in 1997, the company started its business with RO5mn capital with one office at Muscat in 1997. Over the years, the company has established a niche market for itself in small and medium enterprises financing.
The company offers a wide range of financing products, corporate deposits and Bank assurance. It is engaged in the business of providing car finance, equipment finance, commercial vehicle finance, working capital finance, bill discounting, and composite finance and so on. Over the past decade, the company has strived to remain the first choice and the best finance company in Oman. The company’s customer base ranges from individuals to small and medium enterprises and corporates.
The government’s proposed incremental spending on development of infrastructure projects is expected to insulate the economy from the impact of drop in oil price and sustain the pace of economic activity to foster growth. This coupled with private sector participation in developmental activities and promotion of commercial projects would provide opportunities for employment and expansion of business. These developments are expected to generate demand for equipment, heavy vehicles and cars and provide sufficient opportunities for expansion of credit.
SMALL CAP COMPANIES
Gulf Investment Services Holding Co
Strategic investment
Gulf Investment Services Holding Company focuses on minimising the exposure to market investments, by diverting resources to areas which would provide sustainable returns
Promoted in 1995 by a few business groups from Oman, Kuwait and United Arab Emirates and listed on the Muscat Securities Markets (MSM) in 1996, Gulf Investment Services Holding Company (GIS) offers a comprehensive range of investment services.
GIC is the promoter of Gulf Baader Capital Markets, Oman (GBCM) with Baader Bank of Germany. GBCM Oman commenced operations in 2008. GIS has also acquired 18.87 per cent stake in DOM Global Property Investment, which is incorporated in Bahrain and was promoted to develop real estate projects in the emerging European countries, particularly those in the Baltic region. GIS has acquired 33.33 per cent stake in Hotel Management Company, an Omani Company promoted with an objective of managing star hotels and hotel apartments in Oman and other countries in the MENA region.
The main business of GIS is to invest in strategic and portfolio investments in different sectors within and outside Oman. The company attempts to achieve this by exploring investment opportunities with other promoters of profitable and nationally important projects in Oman. For portfolio investments, the company relies upon its subsidiary company’s investment expertise in the GCC region. Investment opportunities outside the region are explored through other investment advisors having requisite expertise. The investments are made on a dynamic basis, depending upon prevailing investment environment and valuations in each region.
The company has faced tough challenges over the past five years on account of global and regional development which have hurt its strategic investment portfolio. This has made the company cautious in making further strategic investments. It has also resulted in slowdown in expansion of the operating business of its subsidiary within the GCC region. Therefore the company looks to hedge it’s overdependence on the GCC investment in the wake of the oil price shock experienced in Q4 2014.
Financial Services Co
Weathering the storm
Although its portfolio was affected by the market decline due to falling oil prices, Financial Services has benefited from its experience in previous years
Financial Services Company(FSCI) which has completed 26 years of operation in Oman is one of the first companies in its area of business. FSCI received the Muscat Securities Market Award 2014 for the oldest listed brokerage firm. The main activities of the company include brokerage, issue management, portfolio management, underwriting, marketing non- Omani securities and investment advice and research. Omani employees represent 75 per cent of the total staff, and the company is conducting continuous training for them.
FSCI was not immune to current decline in the market due to falling oil prices. The total operating income of the company in 2014 came down by 25 per cent to RO925,018 from RO 1.2mn in 2013. The net profit in 2014 came down 62 per cent to RO190,042 from RO501,512 in 2013. Shareholders’ equity at RO4.64mn went up by 20 per cent from RO3.87mn in 2013. Although its portfolio was affected by the decline, the company had benefited from the experience of previous years.
FSCI exerts significant efforts in order to improve its performance and to realise aspirations of its shareholders. The company will continue to focus on maximising its performance by developing approved policies, so that the portfolio revenues return again as a supportive source of its revenues. FSCI expects that the market conditions may improve and enable the company to achieve its stated objectives. The company’s efforts in search for new sources of income will continue to support its revenues.
Dhofar University
Quality education
Dhofar University is the first private university in the Sultanate modelled after the American system of higher education
Dhofar University (DU) is a private, not-for-profit institution of higher education in Salalah, established by Ministerial Decree No. 5/2004. DU formally commenced its operations in September 2004 on the premises of the National College for Science and Technology, which was then officially incorporated into DU. Students enrolled at that college, were then following the curriculum of Yarmouk University in Jordan. These students were allowed to continue their studies under the umbrella of Dhofar University; their programme of study became known as the Yarmouk University Programme (YUP) in order to distinguish it from the new curriculum known as Dhofar University Programme (DUP). The YUP was phased out in 2007.
Since its inception, DU has received academic and administrative support from American University of Beirut (AUB) which oversaw its academic programmes until the year 2010, to ensure quality standards and help DU build its own administrative human resources.
The role of AUB covers three functions: management of DU through secondment of senior staff; design of academic programmes and systems and procedures; and monitoring quality assurance. DU is a young university where campus life is brimming with social and cultural events that reflect the rich heritage of Oman and that of Dhofar such as art exhibits, performances, poetry readings, environmental awareness presentations etc. Its student enrollment has grown steadily from 1347 students at YUP and DUP combined in 2004, to 5,400 students in 2014-2015 academic year. DU is the first private university in the Sultanate modelled after the American system of higher education. It offers two-year diploma and four-year bachelor’s degrees that follow the credit hour system and use English as the medium of instruction.
Global Financial Investments Holding
Strengthening its position
Global Financial Investments Holding has diversified its investments across all economic sectors, thereby reducing the risk exposure to a minimum level
Global Financial Investments Holding is primarily engaged in holding of investments through its subsidiaries and associate companies which are engaged in the businesses of brokerage, investment consultancy services, sales of filters and dates. The company explores investment opportunities in companies with good return and invests in them as a partner or shareholder. Since its inception, the company has diversified its investments in all economic sectors. The diversification policy has reduced risk exposure to a minimum level.
The parent company operates in one business sector, namely brokerage and investments. For management purposes, the Group is organised into four operating divisions. Principal activities includes brokerage and investments in securities and properties; filters industry; vehicles industry and production and manufacturing of gas.
The Global Financial Investments Holding has contributed effectively to the social responsibility of the country, by employing Omani staff in the company and its subsidiaries. As many as 21 out of the total 28 employees in the parent company are Omanis. The company also provides training to the staff and students of universities and colleges.
The company is looking to achieve its goals by strengthening its position in investment and financial securities sector in Oman and the wider GCC region. Locally, the company keeps a sufficient share percentage in listed companies and will invest in new industry projects also. The company will continue to develop and train its staff, so as to provide the best services to its clients, and to achieve the best results to its shareholders.
Majan College
Pursuit of excellence
Majan College has strengthened its financial performance in the core business despite increasing competition
Majan College (University College) offers programmes at both undergraduate and postgraduate levels that address the needs of the local, regional and international markets in a competitive environment.Majan continues to enjoy a well-respected position among higher education institutions through its quality academic provisions. Majan continues its academic partnership with the University of Bedfordshire in UK for validating its higher education programmes in business, English and information technology disciplines and hosting MBA and Master’s in computing and human resources programmes. On August 16, 2013, Majan signed a memorandum of understanding with the Universiti Sains Islam Malaysia to record both parties’ intensions for future collaboration in the field of research, education and in training programmes. On 22 October 2014, Majan signed a memorandum of understanding with the University of Tasmania Australia to record both parties’ intensions for the same purposes.
Majan has strengthened its financial performance in the core business despite increasing competition. In comparison to the previous financial year, total income has increased by 13 per cent which is mainly contributed by increase in the student numbers in the undergraduate, post graduate and professional courses.
In a quality audit carried out in February 2009 by an international panel assigned by the Oman Academic Accreditation Agency (OAAA), Majan was one of the first institutions to go through the audit. The quality audit report was published by OAAA on January 24, 2010. The report shows that Majan is a well-established University College based on sound quality assurance systems and polices. Majan will go through the Institutional Standard Assessment by OAAA and will submit its application in August 2016. In addition, Majan has agreed to take part in the pilot for Standards for the general foundation programme. Majan goes through the institutional review by the University of Bedfordshire, an exercise that takes place every four to five years.

National Gas Company
In expansion mode
National Gas Company has consolidated its operations in UAE, KSA and Malaysia
National Gas Company (NGC) performed well in all its key markets of Oman, UAE, KSA and Malaysia, during the last couple of years. NGC was also successful in getting all approvals for its new subsidiaries in KSA and in Umm Al Quwain in UAE. These entities are expected to contribute significantly to the group operations in 2015 and beyond. The group has LPG sales exceeding 35,000 MT across geographies.
The decline in the group revenue is largely reflective of the declining Saudi Aramco gas contract prices especially in the latter part of 2014 in markets like UAE and Malaysia where revenues are recorded at international prevailing market prices. In Oman, the rising product supply costs as well as operational expenses have rendered the cylinder business unviable with the business seeing no respite with respect to change in cylinder selling prices. The company’s business outside Oman contributed positively through growth in bulk LPG market in UAE and Synthetic Natural Gas projects in Saudi Arabia.
In addition, in 2014 NGC came out with a rights issue in Oman. The company has renewed the sourcing contract for LPG supplies in UAE market for another two years and completed mechanical works of its first LPG storage and distribution facility in UAE.
NGC has emerged ever stronger after a challenging 2014 and is fully geared up to continue raising the bar on operational excellence and financial performance. The company is well positioned to unleash its full potential across its principal market. The company is also evaluating various initiatives to bring in a healthy balance and diversification to its product portfolio.
Oman & Emirates Investment Holding
Cautious optimism
Oman & Emirates Investment Holding Company weathered adverse situation by restructuring its trading investments
Oman & Emirates Investment Holding Company (OEIO) engages in the provision of investment services in Oman and the UAE. Founded in May 1993, and headquartered in Muscat, the company’s core activities include project development and investment banking.
In 2014, the parent company restructured its trading investments to focus more on trading portfolio. The company also utilised part of the sale proceeds to reduce its bank borrowings. These steps have helped the company to sustain its strength in an adverse situation. The unprecedented fall in the oil prices across the world has affected financial markets and stock indices of the oil producing countries such as Oman and UAE. However, OEIO’s investment portfolio in fundamentally strong assets with a good track record could weather adverse reactions.
In another development, the company has divested its 100 per cent holding in Omani Goat Breeding Company which could not start its full commercial operations due to inability to secure well permits in its farmlands.
Having overcome the challenges due to the falling investment valuations towards the end of 2014, the company is now focusing on enhancing the existing position and moving ahead with caution. As an investment holding company, OEIO needs to maintain a delicate balance between long term investments which require a long period of waiting and short term investments which need closer monitoring. In this challenging situation, the company is moving forward with greater optimism and growth strategies. Efforts will continue to fulfill the objectives as stipulated in the business plan and this will include disinvestment of non-performing investee companies in the group, restructuring the investments and reduction of the borrowings.
A’Sharqiya Investment Holding
Well-diversified
A’Sharqiya Investment Holding Company has focused on long-term investments to ride through the wave of short-term fluctuations in asset prices
A’Sharqiya Investment Holding Company was promoted in 1998 mainly by a wide section of investors hailing from the Sharqiya region with a mission for the development of the region and the country at large through promoting projects of regional and national importance. The company was promoted with a paid-up capital of RO6mn of which 40 per cent was subscribed by the public. The current paid-up capital of the company stands at RO9mn.
The principal objectives of the company are to identify and promote suitable projects for investment in financial markets, both local and overseas. The activities of the company can be broadly summarised as follows: Promoting new projects in Oman and overseas; acquiring existing businesses and investing in local and overseas financial markets.
A’Sharqiya has taken significant efforts to stay focused on adding value to its investee companies with a long term perspective. This approach has helped the company’s investment significantly. A’Sharqiya has a portfolio of assets that is well-diversified in terms of business sectors. In anticipation of significant changes in regional financial markets, the company exited some underperforming assets and reinvested the proceeds in a portfolio of regional equities with a long-term perspective. The company believes in long-term investments to ride through the wave of short-term fluctuations in asset prices.
Apart from its public equity and private equity investments, the company has also invested directly in privately held companies such as Vision Insurance and A’Sharqiyah University. A’Sharqiya‘s subsidiaries include Qalhat Real Estate Investments & Services and Rehab for Medical Rehabilitation.
The company also actively pursued a strategy of evaluating investment opportunities in the real economy, which are expected to fructify in the forthcoming years.
Sahara Hospitality Company
Partner in growth
Sahara Hospitality Company supports Petroleum Development Oman’s interior oilfield operations by providing high-standard hospitality services
The main business of Sahara Hospitality Company (SHC) is the provision of accommodation, catering and related services to PDO contractors’ staff in the interior locations such as Fahud and Nimr and Rima. Initially SHC constructed 384 and 264 room facilities at Fahud and Nimr respectively. However, in view of increased demand for accommodation, additional 740 rooms were built and extensions of related facilities were carried out at above facilities during the last five-year period. This is in addition to Rima PAC facility that has been awarded during 2012 which include 142 available rooms and 36 rooms added thereafter.
In accordance with PAC contract with PDO, SHC is expected to provide accommodation, messing, housekeeping, recreational and medical services as well as maintenance of facilities. However, SHC has entered into a service agreement with Catering and Supplies Company (CSC) wherein CSC provides all required services and operates the PACs in line with contract terms and conditions. The success of SHC’s business depends on providing excellent services and achievement of maximum level of occupancy. Based on current activities and availability of additional room facilities, the company expects improved results in the coming years.
Hospitality is a specialised trade that requires good expertise and considerable amount of efforts to provide the required services to people in the remotest areas. Although SHC’s current core business is the provision of hospitality services at the PACs, the company is looking to expand its business to other avenues. SHC’s future business seems to be promising within the current contract, but the company is evaluating investment plans that may lead to a new strategy to become well-diversified company.
Oman Education & Training Investment Company
Opening up new vistas
Sohar University, a subsidiary of Oman Education & Training Investment Company, is entering into the second phase of its development
The principal activity of Oman Education & Training Investment Company is providing educational services. The subsidiary companies controlled by the group are Sohar University, Sohar International School, Modern Catering Company and Sohar Transportation and Shipping Services (yet to be operational).
Sohar University is run in partnership with prestigious international academic institutions. Recently, the faculty of computing and information technology of the University obtained the accreditation of Australian Computer Society. Sohar University has also signed an agreement with Petroleum Development Oman for a collaborative research programme including trials, product development, capability and technology development in various technical areas. Sohar University has also been selected by the Oman Academic Accreditation Authority (OAAA) to pilot their Institutional Standards for Assessment.
The University has also got the approval of the Ministry of Higher Education to set up its Postgraduate Research Centre. More recently, the university has increased its emphasis on research. Its staff has been successful in winning research grants from The Research Council of Oman and from international research funding bodies. Sohar University is entering into the second phase of development after its inception and growth over its first decade.
The Sohar International School currently has 945 students enrolled from Kindergarten to Year 12. The school plans to complete its programmes with CIE A Levels in Grades 12. The school is also looking to house itself in a single campus at Al Uwainat.
Methodology
The universe of the Fastest Growing Companies in Oman 2015 survey comprised companies that were listed on the Muscat Securities Market (MSM) earlier than June 2012 and had a market capitalisation of more than 10 million rials as on June 30, 2015. The companies were divided into large cap, mid cap, and small cap based on the market capitalisation as on June 30, 2015.
Large cap companies were defined as those companies which had a market capitalisation of RO100mn and above.
Mid cap companies were defined as those with a market capitalisation between RO25mn and 100mn
Small cap companies were defined as those with a market capitalisation between RO10mn and 25mn
The study loosely follows Fortune magazine’s model for identifying the 100 fastest growing companies. The listed companies in Oman were ranked by their compounded average revenue and net income growth rates for the three year period ending December 31, 2014. The three-year annualised total return to investors for the period ended June 30, 2015 was also considered. The overall rank is based on the sum of the three ranks. In case of a tie, the company with the higher net income growth received the higher rank.
Notes and observations
The ranking covered 98 per cent of the total market capitalisation of the eligible MSM companies as on June 30, 2015.
The large cap section comprised 22 companies representing 81.5 per cent of the total market capitalisation of the MSM.
There were 24 companies in the mid cap section, comprising 13 per cent of the total market capitalisation of eligible companies.
The small cap section included 19 companies covering three per cent of the total market capitalisation.
Three out of the five industrial companies in the large cap segment made it to the list this time. These companies had invested significantly in capacity expansions over the last three years, which helped them to record double digit growth rates in revenue and profits. This has paid off for the shareholders in the form of price appreciation of these stocks.
In another first, the smaller banks made it to the list this time. These banks have been aggressive in expanding their business and have thus created their niche in a highly competitive and overcrowded sector, helping their relative outperformance over the sector based peers.
The data for the survey was provided by United Securities, Oman.

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