ALL ABOUT HALAL
While not perhaps the lowest hanging fruit, opportunities for investing in Oman's growing halal food industry are nevertheless ripe for the picking.
In response to mammoth increases in global demand for food, and in particular demand for halal food, the Omani government is keen to attract investment in its blossoming halal agribusiness industries.
Worldwide, the trend is already growing. While Southeast Asia, and in particular Malaysia, Thailand, and Singapore, is still the main force driving the market, in recent years there has been more interest in and around the Gulf region. The fact that the inaugural Global Halal Tourism Summit was hosted by the Arabian Travel Market (ATM) in Dubai earlier in 2017 serves as further proof that investors in the GCC may have found something they can sink their teeth into. And, with 90% of panelists at the event confirming a belief that there is a gap in the market for halal cuisine, prospects are looking juicier and juicier.
“Halal" is Arabic for “permissible" or “lawful," and is found in the Quran denoting not just foodstuffs, but also practices in general, that are compatible with the Islamic faith. This is wide-ranging and usually refers to consumer habits, as well as services such as finance and logistics. Until now, halal food has been considered a niche segment, usually found separated from mainstream products in the average supermarket.
Muslim spending on halal products and services is set to increase 52% to USD2.74 trillion by 2018. On halal food and beverages alone, spending will reach USD1.6 trillion by 2018. Furthermore, considering there are nearly 2 billion “de facto" consumers of halal food in the world, this seems just the tip of the iceberg of the industry's growth potential.
In Oman specifically, there has been 200% growth in the retail halal food market since 2012. However, at the moment, demand is for the most part plugged with imports, sourced from the UAE, India, Saudi Arabia, the Netherlands, and Germany. In fact, in 2015, Oman represented 3.99% of global imports in food products, and just 1.6% of exports.
Elsewhere in the Middle East, governments are ramping up their investments in domestic halal production. This is due in part to a desire to eradicate imports and to develop internal capacity that can eventually satisfy domestic demand. However, these governments are also not blind to the wealth of prospects here for economic diversification, seizing, in many cases, the chance to capitalize on the opportunities proffered by halal markets.
Though Oman has been largely absent from such investments in the halal food segment, the tides may be about to turn. At the next Agro Food Oman exhibition, due to be held in April 2018, there will be a whole section dedicated to promoting halal food investment opportunities. Oman is looking to attract companies pioneering innovative agricultural solutions, such as hydroponics, precision agriculture, and cellular farming, which themselves may be considered halal methods of production. Moreover, the Ministries of Agriculture and Fisheries is allocating 50,000 agriculture plots in Al Maghsar, south of Mussannal, for integrated agriculture and aquaculture projects, targeting specifically youth farmers and SMEs. These sites will be fitted with greenhouses, water irrigation facilities, and aquaculture units to allow for diverse methods of production.
In March 2017, promise of weight behind such initiatives came in the form of an OMR30-million (USD77.6 million) sukuk approved by the Capital Market Authority for investment in Islamic and sharia-compliant ventures, some of which could well be earmarked for halal agribusiness ventures.
Ultimately, the Omani government has big plans for its halal market. While the seeds are just being planted now, the government's rhetoric indicates a desire to transform the Sultanate into a hub for halal food production not just to supply domestic demand, but also, in the long term, making use of strategic geography and connectivity links for exports to the region and beyond.
ALL ABOUT HALAL
TABLE OF CONTENTS
Focus: Oman-Iran Relations
Nothing Personal
A new automotive production venture and undersea gas pipeline project highlight the long-term and historic friendship between Oman and Iran, underscoring their policies of transparency and non-interference with the aim of achieving the best possible conditions for the economies and people of both countries.
read articleInterview
Abdullah Nasser Abdullah Al Bakri, Minister , Manpower (MoM)
TBY talks to Abdullah Nasser Abdullah Al Bakri, Minister of Manpower (MoM), on its ongoing efforts to boost Omanization across sectors, streamlining the employment process in the private sector, and developing human resources in the country.
read articleInterview
HE Talal Al Rahbi, Deputy Secretary General , Supreme Council for Planning (SCP)
TBY talks to HE Talal Al Rahbi, Deputy Secretary General of the Supreme Council for Planning (SCP), on its key responsibilities, ensuring a more sustainable policy, and the importance of economic diversification.
read articleInterview
Dr. Hilal Al-Qamshoey, Project Director, Oman National Spatial Strategy (ONSS)
TBY talks to Dr. Hilal Al-Qamshoey, Project Director of Oman National Spatial Strategy (ONSS), on the importance of addressing the challenges to growth, assessing potential, and attracting greater FDI.
read articleInterview
Khalid Al Yahmadi, CEO, Muscat National Development and Investment Company (ASAAS)
TBY talks to Khalid Al Yahmadi, CEO of Muscat National Development and Investment Company (ASAAS), on its projects to diversify Oman's economy, sectors with growth potential, and its goals for 2018.
read articleCommuniqué: Ithraa
Exports Matter
Exports matter because they represent the very sectors that drive wealth, attract investment and talent, boost productivity and innovation, and generate employment. Industry accounted for 47.6% of Oman's GDP in 2017 and our non-oil exports were over USD6.2 billion. Today, Omani firms export to 135 countries.
read articleInterview
Khalifa Abdullah Al-Barwani, CEO, National Center for Statistics and Information (NCSI)
TBY talks to Khalifa Abdullah Al-Barwani, CEO of the National Center for Statistics and Information (NCSI), on the many benefits of its information apps, the growing focus on logistics, and supporting the public and private sectors with valuable data.
read articleInterview
Dr. Dhafir Awadh Al-Shanfari, CEO, Oman Authority for Partnership for Development (OAPFD)
TBY talks to Dr. Dhafir Awadh Al-Shanfari, CEO of Oman Authority for Partnership for Development (OAPFD), on the goals of the authority, its current projects, and its focus for the medium term.
read articleInterview
Khalid bin Al Safi Al Haribi, Acting CEO, Public Authority for SMEs Development (Riyada)
TBY talks to Khalid bin Al Safi Al Haribi, Acting CEO of the Public Authority for SMEs Development (Riyada), on instilling an entrepreneurship culture amongst Omanis, key areas for development, and doing more with less.
read articleInterview
Yaqoob Saif Al Kiyumi, CEO, Oman Power and Water Procurement Company (OPWP)
TBY talks to Yaqoob Saif Al Kiyumi, CEO of Oman Power and Water Procurement Company (OPWP), on the challenges of growing water and electricity demand, planning for renewable energy projects, and its key objectives in the long term.
read articleInterview
HE Tahir Bin Salim Bin Abdullah Al Amri, Executive President, Central Bank of Oman (CBO)
TBY talks to HE Tahir Bin Salim Bin Abdullah Al Amri, Executive President of the Central Bank of Oman (CBO), on revising the country's FDI laws, financing the fiscal debt via issuing bonds, and its efforts to promote SMEs.
read articleInterview
HE Abdullah Salim Al Salmi, Executive President, Capital Market Authority (CMA)
TBY talks to HE Abdullah Salim Al Salmi, Executive President of the Capital Market Authority (CMA), on promoting greater activity in the financial services sector, encouraging investors to go beyond the banking sector, and its upcoming projects.
read articleInterview
Dr. Ashraf bin Nabhan Al Nabhani, Chairman, Muscat Securities Market (MSM)
TBY talks to Dr. Ashraf bin Nabhan Al Nabhani, Chairman of Muscat Securities Market (MSM), on the evolution and maturity of the stock market, increased privatization initiatives, and plans to demutualize.
read articleInterview
Murtaza Jariwala, Executive Director, Vanguard Engineering & Oilfield Service
TBY talks to Murtaza Jariwala, Executive Director of Vanguard Engineering & Oilfield Services, on manufacturing and value addition, successful long-term partnerships, and how to best thrive as a truly local company.
read articleInterview
Hilal Mohammed Hamoud Al Busaidi, CEO, Public Authority for Mining (PAM)
TBY talks to Hilal Mohammed Hamoud Al Busaidi, CEO of the Public Authority for Mining (PAM), on increasing metal exploration, sharing the risk with investors, and banking on the rare commodity of quality.
read articleInterview
Dr. Salim Sultan Al Ruzaiqi, CEO, Information Technology Authority (ITA)
TBY talks to Dr. Salim Sultan Al Ruzaiqi, CEO of Information Technology Authority (ITA), on facilitating the investment experience in Oman, taking a coordinated approach to cybersecurity, and giving young people the right exposure.
read articleInterview
Firas A. H. Al-Abduwani, Founder & CEO, Hussam Technology Company (HTC)
TBY talks to Firas A. H. Al-Abduwani, Founder & CEO, and Mohammed Al-Abduwani, COO of Hussam Technology Company (HTC), on making Oman a better place to do business, meeting an ever-expanding customer base, and diversifying one's project capacity.
read articleInterview
Sheikh Aimen Ahmed Sultan Al-Hosni, CEO, Oman Airports Management Company (OAMC)
TBY talks to Sheikh Aimen Ahmed Sultan Al-Hosni, CEO of Oman Airports Management Company (OAMC), on providing a functioning operational platform, top notch end-to-end logistics, and creating competitive advantages for Omani shippers.
read articleFocus: Integrated Tourism Complexes
A Land for All
Oman's integrated tourism complexes (ITCs) allow foreign nationals to own property on a freehold basis. They have given the country's tourism and real estate sectors an innovative boost and might pave the way for further liberalization.
read articleInterview
HE Hamed Said Al-Oufi, Undersecretary, Fisheries Wealth of the Ministry of Agriculture & Fisheries Wealth
TBY talks to HE Hamed Said Al-Oufi, Undersecretary of Fisheries Wealth of the Ministry of Agriculture & Fisheries Wealth, on food security, opportunities for development in the industry, and new infrastructure projects.
read articleInterview
Eng. Saleh M. Al Shanfari, CEO, Oman Food Investment Holding Company (OFIC)
TBY talks to Eng. Saleh M. Al Shanfari, CEO of Oman Food Investment Holding Company (OFIC), on Oman's competitive advantages in food, growing demand for diverse food products, and becoming a regional food hub.
read articleInterview
Ahmed Akaak, Chairman, Oman National Livestock Development Company (ONLDC)
TBY talks to Ahmed Akaak, Chairman of the Oman National Livestock Development Company (ONLDC), on partnerships to boost the quality of animal feeds, the agriculture industry, and the Sultanate's national economy.
read articleReview: Education
New School
Oman's education sector has made massive strides in recent years, and moving forward, government officials see improving teacher quality and increasing international exchange as keys to giving a young and growing population the tools they need for the future.
read articleInterview
HE Dr. Hamood Khalfan Al Harthi, Undersecretary of Education & Curriculum , Ministry of Education
TBY talks to HE Dr. Hamood Khalfan Al Harthi, Undersecretary of Education & Curriculum of the Ministry of Education, on meeting international standards, increasing the teaching staff, and implementing reforms.
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