OER Business Summit 2015 called for creating a business-friendly environment for investors and allowing the private sector to decide its destiny in order to fast track the growth of the Sultanate’s economy.
Organised by Oman Economic Review (OER), the Sultanate’s premium business magazine, the summit, comprising two panel discussions titled ‘Life at $50 per barrel’ and ‘Infrastructure Development-The Way Ahead’ and interspersed with paper presentations by industry experts, set the pace for an engaging session and key insights for over 250 Who’s who from Oman’s corporate sector.
Moderated by Nima Abu-Wardeh, the presenter of the BBC World News weekly financial programme Middle East Business Report, the summit held at Grand Hyatt Hotel commenced with a presentation by Dr Hatem Al-Shanfari, chairman of Gulf Baader Capital Markets Company and faculty member -department of economics and finance, Sultan Qaboos University on ‘Oman’s Economic Outlook for 2015 and Beyond.’ The Sultanate is facing challenging times and the economy has made substantial progress despite the hiccups and drop in oil prices, he said. The Governmental spending has been instrumental in growth, he said adding that there are ample investment opportunities in diverse sectors. What’s needed is a new diversified growth model. Oil prices have not been stable for the past 30 years and it may remain so. There has been a 46 per cent drop in oil prices since June 2014. Fiscal positions are weakening and surpluses are turning into deficits in GCC, he said.
In the first panel discussion on ‘Life at $50 per barrel’, the panelists comprising Ali Mohammed Juma, chief executive, Vision Investment Services Co, Amran al Mahrubi, technical director, PDO; Irshad Al Lawati, head of corporate affairs, Shell Development Oman; Pankaj Khimji, director, Khimji Ramdas; Rashad Al Musafir, acting CEO, Bank Sohar and Reggy Vermeulen, CEO, Port of Duqm Company highlighted the need for allowing the private sector to decide its destiny. There should be least interference in the functioning of the private sector and they should be given more leverage. The drop in oil prices is not going to impact the pace of development, panelists said.
Rashad Musafir said the Government of the Sultanate and the private sector is cautious in spending following the drop in oil prices. But it is essential to continue pursuing projects and creating employment, he said.
Pankaj said the private sector should be allowed to decide its destiny. As regards corporate and other taxes, he said, “We will be receptive to tax today more than ever before provided there is better decision making.”
Reggy said Duqm is a mega project. “We are looking at long-term benefits. Duqm is the future of the country, he said adding that most of the key projects will not be affected because of fall in oil prices.
Mukhtar Hasan, chairman of Al Barij International, set the tone for the second panel discussion with a presentation on ‘The State of Oman’s Economy- Life at $50 per barrel’ where he said that oil prices were trading at $45 to 60 per barrel in 2015 and added that the Sultanate will continue its spending as per Budget 2015. ‘The Sultanate can weather the storm for the next two years,’ he said. However, the country has to ease its rules for doing business and cut down on lengthy procedures.
Bank Sohar and Petroleum Development Oman (PDO) were the strategic partners of the event. Infiniti was the associate partner while Sharq Sohar Steel Group and Worley Parsons were the support partners. Oman Air was the official airline partner and Business International Group, the light and sound partner. Times of Oman and Al Shabiba were the media partners and Mazoon Printing, the print partner. Bloomberg Business Week-Middle East was the knowledge partner.
At the panel discussion that followed, Eng Ahmed Bin Saleh Al- Jahdhami, CEO, Oman Power and Water Procurement Company (OPWP), said that several water and power projects were being implemented. “We are keen to involve the private sector in a big way in water desalination projects,” he said. “Cost cutting is not a strategy. The Government has a strategy for moving ahead, he said. Dr Bhaskar Dutta, CEO, Al Jazeera Steel Products Company; Fabio Scacciavillani, chief economist, Oman Investment Fund; Khalid Ansari, managing partner, KPMG; Lubna al Kharusi, CFO, Omran and Rajeev Singh, partner, EY Oman, who spoke, highlighted the manpower regulations and efforts made to attract private sector participation in tourism related projects and the need to diversify the economy. Lubna said that when there is a paradigm shift in the way decisions are made, tourism will contribute to the growth of the economy. Fabio said there was no major slowdown on infrastructure projects. However, the challenge is to make business environment friendly for investors. The biggest challenge for Oman is to provide employment to Omanis, said Khalid Ansari.