June 16, 2006

THE OMANI-LEBANESE FORUM SETS UP THE BASES FOR ECONOMIC, FINANCIAL AND TOURISM COOPERATION BETWEEN THE SULTANATE OF OMAN AND LEBANON. FAHD BIN MAHMOUD AL SAID DEPUTY PRIME MINISTER RECEIVES SAAD AL-HARIRI AND THE LEBANESE DELEGATION AND REVIEWS WITH THEM WAYS TO ENHANCE COOPERATION BETWEEN THE TWO COUNTRIES. SARAYA LAUNCHES WITH THE OMANI GOVERNMENT A JOINT TOURISTIC AND HOUSING PROJECT. The Omani-Lebanese business forum, which concluded in Muscat, mooted a common market for Arab nations. Arab countries, having a combined population of more than 310 million, should promote the idea of a single market with free movement of goods, services and capital. A common Arab market, according to leading Omani and Lebanese businessmen, will help Arab countries face the challenges of globalisation and free trade. "More importantly, it will transform the region into one of the largest free trade zones in the world. A common market will also make us more competitive in the face of growing free trade agreements," a senior Lebanese government official told the Times of Oman. The need of the hour, according to Fady Abboud, president of Association of Lebanese Industrialists, is an Arab free trade bloc to keep up with the fast changing global economic environment, especially, after 9/11. He said a common market would also reduce regional disparities, if any, in terms of economic and business standards. "It will equip us to face international competition collectively. The total Arab GNP (22 countries) is estimated to be less than one per cent of the world GNP at more than $600-$700 billion. The growing Arab population could constitute a great market and a great economic bloc. At the concluding session of the two-day forum, organised by Confex International, Beirut, in association with Oman's Ministry of Commerce and Industry and Oman Chamber of Commerce and Industry, at Shangri-La Barr Al Jissah Resort, Sheikh Mohammed bin Abdullah bin Isa Al Harthy, minister of transport and communications, said: "Oman believes in building world-class infrastructure, and the nation already enjoys good infrastructure facilities, and undoubtedly, the forthcoming projects, including new airports and seaports, will further strengthen the market. Indeed, free trade zones will continue to stimulate economic growth and regional market integration, and trigger inter-Arab trade." As part of enhancing business ties between the Omani and Lebanese private sector, Rashad M. Al Zubair, deputy chairman and group president of Zubair Corporation, and Jihad Anees Tinir from Lebanon signed a memorandum of understanding to form an Omani-Lebanese business council. The key objective of the council is to further promote economic relations between the Sultanate and Lebanon, and encourage businessmen to explore investment opportunities in the two countries. In line with the MoU, all formalities and legal procedures for the formation of the council will have to be completed within three months. Subsequently a final agreement will be signed. "This is purely a private sector initiative from our side to boost business partnership with Lebanon. "Apex bodies such as OCCI and OCIPED are already playing a crucial role in promoting trade, industry and exports," Rashad M. Al Zubair said. "It's our endeavour to promote partnership between Omani and Lebanese businesses," Al Zubair said. Dr Rajiha bint Abdul Amir bin Ali, minister of tourism, made a comprehensive presentation on Oman's tourism sector, especially on its growth potential. She called on the Omani and Lebanese businessmen to exploit Oman's tourism potential. In his presentation, Dr Salim bin Nasser Al Ismaily, executive president of Ociped, said Oman is a fascinating market for its neighbouring countries. He urged Omani and Lebanese industrialists to utilise the vast potential that both the countries offer. Mohammed Al Safadi, Lebanese minister of transport and communications; Balsam Al Khalil representative of Bank of Beirut; Abdul Kader Askalan, CEO of Oman Arab Bank; and Khalid Mohammed Al Zubair, vice-chairman of the Oman Chamber of Commerce and Industry, have also made comprehensive presentations. The forum hosted a series of roundtables, and exchanged views to strengthening cooperation and exploring opportunities in Oman and Lebanon. The forum played the role of a distinctive platform for both Lebanese and Omani businessmen to exchange investment opportunities. One of the main objectives of the forum was to create a network between businessmen of both countries that will improve economic and investment cooperation on the private sector level. Sayyid Haitham bin Tareq al Said, Minister of Heritage and Culture, of the Sultanate of Oman presided over the opening ceremony of the Lebanese-Omani Business Forum at Shangri-La's Barr Al Jissah Resort and Spa. The 2-day forum aimed at giving businessmen from both countries the chance to meet and discuss opportunities of investment in tourism, trade and industry, banking and insurance as well as provide a channel of communication to enhance the bilateral economic co-operation. A delegation of prominent Lebanese businessmen took part in the forum led by Saad Rafiq al Hariri, Head of the Future Parliamentary bloc in the Lebanese Parliament. Organised by the Ministry of Commerce and Industry and Confex International, the forum was held among a wide-scale participation of more than 300 business and economic personalities from both countries. A number of Omani ministers and high-profile officials presented business papers in open dialogue sessions that are expected to open doors of understanding and further co-operation between Oman and Lebanon. In his opening speech, Maqbool bin Ali Sultan, Minister of Commerce and Industry, said: "Our governments have gone a long way in establishing strong infrastructures that assist the efforts of the private sector and its creative initiatives, by passing legislations and creating the appropriate atmosphere for trade and investment freedom." "The agreements signed between the two countries form a perfect umbrella to support a fruitful future co-operation such as the Avoidance of Double Taxation Agreement between Oman and Lebanon and the Free Trade Zone signed with the GCC countries as well as others. As a result of all these efforts, we look forward to see the Omani and Lebanese private sectors taking the lead in promoting the economic co-operation and reaping the fruits of this unique partnership especially in light of the freedom and trust our countries allocate to private sector establishments in developing trade activities and investments." In his address, Maqbool bin Ali Sultan, minister of commerce and Industry, said: "Arab countries, in general, face numerous challenges in today's rapidly changing global economic environment. More importantly, the six-member Arab Gulf nations have a crucial role to play in augmenting the region's economic growth. "To face the challenges of globalisation, we foresee ample opportunities for the Omani and Lebanese private sector to explore and strengthen economic ties. We are eager to set up joint ventures in potential sectors, and the government, through Ociped, PEIE, OCCI and Export Credit Guarantee Agency, will continue to encourage the private sector to rightly explore such opportunities and share expertise in various areas." Development of tourism, IT, transportation and small and medium enterprises, Maqbool said, is a top priority for the government. Omani and Lebanese private sectors could identify potential projects such as SMEs, and augment ties. Saad Hariri also expressed his happiness to lead his country's delegation to the forum and said the relationship that ties Oman to Lebanon is deep-rooted in history and received further development under the wise leadership of Sultan Qaboos. "Lebanon looks with great interest and concern in developing its relationship with Oman based on the strong partnership and mutual interests aided by the presence and efforts of the Lebanese community in Oman who have worked hard to develop this friendship through the years. We give the co-operation between our country's private sector a great importance which echoes ex-prime minister Rafiq al Hariri's call to take it to the next level when he visited Oman five years ago," he said. Lebanon was among the leading Arab countries who called for easing trade and customs laws in the Arab world and supported the Arab Common Market idea. Therefore it has become a priority to activate the work of the joint Omani-Lebanese Committees and ease all hurdles seeking to sign mutual economic and investment agreements. I believe both our countries are looking forward to this dream and will work hard to achieve it." The forum's programme started with 3 open dialogue sessions, the first dealt with the banking legislations and dimensions of bilateral investment. Keynote speakers were Ahmed bin Abdul Nabi Macki, Minister of National Economy and Deputy Chairman of the Financial Affairs and Energy Resources Council who gave a background of the Omani economy and government plans till 2010. He was joined by Dr Sami Haddad, Lebanese Minister of Economy and Trade, Dr Joseph Torbey, Chairman, Union of Arab Banks, and Dr Ashrab al Nabhani from the Capital Market Authority. In his address, Ahmed bin Abdulnabi Macki, minister of national economy and deputy chairman of Financial Affairs and Energy Resources Council, said: "The Sultanate is witnessing all-round growth in economic activities, and the GDP is growing at a faster pace. "Nevertheless, our financial strategies and economic policies are, now essentially pointing to diversification." The minister also elaborated on the salient features of the Seventh Five-Year Plan (2006-2010). "As I said in the past, the new Five-Year plan is a new phase in Oman's economic and social development. The key objectives of the plan are: Improvement of the standard of living of the citizen; maintenance of stability of prices; upgrading education and expanding the higher education opportunities; strive to provide employment opportunities for the nationals; social welfare, human resources development; infrastructure development; enhancing the water resources and provision of safe water; preserving the national heritage; strengthening the capabilities of the judicial system and upgrading its performance level; development of tourism, fisheries, industry sectors and encouragement of export processes; and encouragement of local and foreign private sector investments." The government, Macki said, will continue to encourage local and foreign investments, and is expected that the average growth in investments, will rise to about 24 per cent of GDP during the current plan period as compared to about 16 per cent in the previous development plan. The total size of investments is expected to touch RO13.1 billion during the plan. The public sector contribution is estimated to be about 54 per cent, while the private sector (local and foreign) will contribute 46 per cent. "Development of tourism and infrastructure continues to contribute to growth. The government's policies are largely focused on social development. The plan also aims at maintaining the inflation at lower levels at an average two per cent during the plan period," Macki said. The plan, Macki said, will strive to achieve this objective through adopting sustainable fiscal policies and appropriate monetary policies. The fiscal framework of the plan, it is expected, that it will enhance the capacity to achieve its economic and social objectives. The dimensions of the framework also involve the following: realising sustainable expenditure levels through its rationalisation; enhancing the financial reserves by transferring budget surplus realised during the plan period; strive to enhance the non-oil revenues; and priority to productive sectors such as oil and gas. The second session tackled the investment opportunities and examples of success in both Lebanon and Oman. Speakers were Ahmed Janahi, Vice Chairman of Al Sawadi Investment and Tourism Company "Blue City", Ali Kolaghasi, Vice Chairman of Saraya Holdings, Ziyad al Zubair, Managing Director of Tourism in Zubair Corporation, Mohsin bin Khamis al Balushi, Adviser at the Ministry of Commerce and Industry, and Ousama Kabbani, Vice Chairman of Millennium Development Company. The afternoon session discussed the Omani-Lebanese co-operation and the role of central banks where Hamoud Sangour al Zadjali, Executive Chairman of the Central Bank of Oman, presented a paper on the Central Bank and the economic and banking co-operation between Lebanon and Oman. From the Lebanese side, he was joined by Marwan Nsouli, Deputy Governor of Banque Du Liban, and Rafiq Zantout, Chairman of Confex International. The two-day forum has been organised by Beirut-based Confex International in association with Oman"s Ministry of Commerce and Industry, Oman Chamber of Commerce and Industry, the Omani Centre for Investment Promotion and Export Development (OCIPED), Banque du Liban, Union of Arab Banks, the Chamber of Commerce, Industry and Agriculture, Beirut and Mount Lebanon, and the Association of Lebanese Industrialists. The Omani-Lebanese Business Forum has been set up to provide a conducive framework and platform for both Omani and Lebanese businessmen to meet and discuss investment opportunities in the various economic sectors, with focus on tourism, trade, industry, transport, banking, finance, insurance, information technology and other areas. It also aims at encouraging networking among businesspersons of both countries thereby contributing to economic and investment co-operation at the private sector level. Around 300 prominent businessmen and personalities, including leaders in the fields of finance, investment, tourism, trade, industry and transportation, took part in the deliberations. Various papers and presentations looked at opportunities for enhancing bilateral trade by highlighting the primary importance of mutual investments and co-operation in the various economic sectors. Underlining the importance accorded to this forum the first such major bilateral forum involving Oman and Lebanon a number of leading Arab and international TV and media networks were handed to cover the discussions. Experts view this event as significant to the cause to enhancing Arab economic co-operation. Over the course of the two-day forum, a series of roundtables and panel sessions were held featuring keynote speeches by high profile speakers and panellists from Oman, Lebanon and other Arab countries. The presentations addressed the following topics: Banking Legislation; Mutual Investment; Developing Co-operation in Trade and Industrial Sectors; Omani-Lebanese Co-operation and the Role of Central Banks; Investment Opportunities and Success Stories; Role of Omani and Lebanese Banks in Fostering Development; and the Role of Ports and Arab Free Zones in the Development of Inter-Arab Exchanges. Sayyid Fahd bin Mahmood al Said, Deputy Prime Minister for the Council of Ministers, received Shaikh Saad al Deen Rafiq al Hariri, head of the Future bloc in the Lebanese parliament, and ministers and under-secretaries participating in the Lebanese-Omani Businessmen's Forum. Sayyid Fahd welcomed the guests, praising the excellent bilateral relations and stressing the importance of the forum which will support bilateral economy and trade co-operation. They reviewed bilateral relations and ways to develop economic co-operation and stimulate investments in the two countries. They also touched on regional and international issues of common concern. Al Hariri stressed Lebanon's appreciation of Oman's considerable economic development and policies to promote domestic and foreign investments during the prosperous reign of Sultan Qaboos. The meeting was attended by Maqbool bin Ali Sultan, Minister of Commerce and Industry, and Afeef Ayoub, Lebanese Ambassador to the Sultanate. Oman and Lebanon called for strengthening economic cooperation between the two nations to trigger growth in investment and bilateral trade. "We are committed to strengthening cooperation in trade, industry, banking and finance, insurance and tourism. Oman and Lebanon can promote cooperation in various sectors and work towards achieving sustainable growth," Sheikh Saad Al Hariri, president of Future bloc in the Lebanese parliament, told the Times of Oman on the sidelines of an Omani-Lebanese business forum here. Arab nations, Hariri said, must join hands to face the challenges of economic liberalisation, arising out of globalisation. "Lebanon is implementing major political, administrative, legal and economic reforms to face these challenges. Institutional level transparency and accountability have become imperative, the world over, and we have recognised the importance of sustainable growth long ago," Hariri added. Hariri, who was leading a top-ranking delegation to the Sultanate, said that the Lebanese private and public sectors were keen to expand business opportunities in Oman. "The Lebanese private sector is very eager to explore investment opportunities in Oman. The forum is part of our endeavours to enhance mutual Arab economic cooperation and development that will pave the way for Arab economic integration," Hariri said. A memorandum of understanding (MoU) was signed at Barr Al Jissah Resort to establish an Omani-Lebanese Businessmen"s Council, on the sidelines of the businessmen forum. It was signed by Rashad bin Mohammed al Zubair for the Omani side, while Jihad Anees Taneer, member of the Lebanese economic symposium, signed for his side. The council aims to find and achieve further development and enhance bilateral trade and economic relations and promote investment opportunities. According to the MoU, each party has to complete all official and legal procedures within three months and obtain approval of the respective government and other authorities in the two countries to establish the council. State-owned Oman Tourism Development Company (OTDC) and Saraya, one of the leading real estate development and asset management companies in the region, signed a memorandum of understanding to set up a mega tourism joint venture in Muscat. The master plan for this mega project is yet to be developed. Details on the cost of the project and other parameters are in the process of discussions. Both the parties are expected to reach a consensus soon. Dr Rajiha bint Abdul Amir bin Ali, minister of tourism, and Ali Kolaghassi, vice-chairman and CEO of Saraya, signed the memorandum of understanding during the Omani-Lebanese business forum, at Shangri-La's Barr Al Jissah Resort. Sheikh Saad Hariri, president of Future Parliamentary bloc, Lebanese parliament, is the chairman of Saraya. In line with the MoU signed, OTDC and Saraya will develop a world-class tourism project in Muscat. The project will offer residential and entertainment facilities for tourists. "Our strategy is to develop Oman as an internationally acclaimed tourist centre, and increase the pace of Oman's economic development. This project, we believe will support our strategies of reinventing Oman as one of the major tourism destinations in the Middle East," Dr Rajiha bint Abdul Amir bin Ali, minister of tourism, told Times Business. "We will utilize Oman's diverse tourism potential and endeavour to create job opportunities and good returns for our investors. This project will be a model, in terms of planning, implementation and management," Ali Kolaghassi, vice-chairman and CEO of Saraya told the press. "Saraya is committed to developing all its projects in an environmental-friendly and cultural-conscious manner. Tourism will not only stimulate economies but also provide the local communities with enormous benefits, such as job opportunities," a Saraya official said. Saraya, headquartered in Amman and the UAE, has invested in a number of projects in Jordan and the UAE. Its first investment is Saraya Aqaba, a $800 million beachfront travel destination on the Red Sea built around a man-made lagoon, spanning nearly 610,000 square metres in the centre of Aqaba, adding approximately 1.5km of beachfront in the heart of Aqaba. Saraya has invested in Ras Al Khaimah, the first of a series of premium projects in the UAE. The $1.2 billion Saraya Islands will be spread over 1.2 million square metres, with a range of five-star hotels, family and all-senses roots, private beaches, a water theme park, and cultural and commercial venues. On the other hand Intilaaqah hosted the first youth enterprise forum 2006 highlighting the small business enterprise scenario in Oman. As another initiative in the area of entrepreneurship and empowerment of Omani nationals, Intilaaqah's youth enterprise forum also served as a platform for young entrepreneurs. The forum was held under the auspices of Hamed bin Khamis A1 Amri, undersecretary of technological education and vocational training, Ministry of Manpower at Al Bustan Palace Hotel. As the first of its kind in Oman, the forum shed light on the current small business enterprise scenario in Oman, their needs and the impact on the Oman economy. The forum was divided into two sessions: The first session covered an introduction to the Intilaaqah programme, outlining the achievements of the programme and its contribution to the society over the last 10 years, and discussed the additional roles that Intilaaqah can play in the future. The second session focused on an entrepreneur's needs to start and sustain a business. The different services for this: awareness, training, finding, business development assistance, etc were explored at length. Intilaaqah is a non-profit programme, which has been modelled on a Shell-funded initiative called 'LiveWIRE', which is running now in 25 countries. The purpose of Intilaaqah is to stimulate and encourage unemployed young Omanis to consider the option of starting their own businesses, and to provide assistance to those who wish to take-up that option. The programme has been presented to the nation by Shell in the occasion of the Sultanate's 25th National Day in November 1995, as one of Shell's social investment programmes in Oman with ambitious objectives to: * Provide young and unemployed Omanis with the tools to develop their business ideas by offering personal counselling and referral to training in preparation for staring a business. * Help the Omani government's aim of diversifying of the economy away from oil and gas. * Help alleviate the growing unemployment amongst young Omanis. * Demonstrate Shell's commitment to the sustainable development of the Sultanate. The programme is supported by a number of government and private institution in Oman namely Sanad programme, Knowledge Oasis Muscat, Sultan Qaboos University, Bank Muscat, National Bank of Oman and Oman Air.