CAPITALIZING ON GROWTH
With the growing importance of e-commerce in the country, DHL seeks to simplify the customer experience with easy and accessible communication platforms.
BIOGRAPHY
Moustafa Osman is an experienced manager in the logistics and trade industry, with both high commercial and sales operations leadership. He counts 15 years with DHL, having worked and lived in France, Singapore, the UAE, Bahrain, Algeria, and Kuwait before being appointed Country Manager in Oman. Before his DHL experience, he worked for Halwani Bros across different departments, to then join Exxon Mobil and successively SGTB in 2004. He holds a double major in international business and finance from Paris Graduate School of Management.
What have been the major trends shaping the Oman logistics sector, and how is the current macroeconomic environment impacting your business?
All the macroeconomics of Oman have improved considerably since the decline in oil prices in 2016. Projects like Duqm refinery and developments in the oil and gas industry have enabled more production, spearheading the recovery of the sector that constitutes 70% of the country's GDP. While the retail sector has been slow to recover, in the logistics sector, Oman has become a trans-hub for all kinds of logistics services destined to GCC countries. The capacity and volume of both shipments and cargo has increased via air, sea, and road, facilitating the operations of free zones like Salalah and Sohar. In this context, we have been able to strengthen our operations, increasing capacity and enable transshipments. Customers can leverage our bonded facilities in the city and airport to minimize their cost in terms of double taxation and duties. The introduction of the VAT and the expansion of the e-commerce business will keep the retail sector suffering for a while, but the situation will improve in 2020 with the money that will be injected from the oil and gas sector. Indeed, oil and gas will be on a good steady growth for 2021, and the automotive sector will witness a similar boom.
What are your expectations on the e-commerce segment in the short-term and why?
We will continue serving the B2B market as it is one of our main segments. Moreover, we see a good expansion for us in the e-commerce sector next year. Although traditionally Oman has not had a large e-commerce sector, we forecast a good expansion over the next year and a real double-digit growth in the coming years. We have been working closely with the government to understand what is lacking in the current model and to convert Oman into an e-commerce hub to serve the GCC, East Africa, and North Africa. As such, we are leveraging Oman's simple customs clearing process, political stability, and geographical location to attract e-commerce businesses and SMEs. We are offering the necessary warehousing solutions and distribution centers, packaging facilities, and all the necessary requirements to achieve our goal. A major step in this direction will be the 15,000-sqm facility inside the airport, as well as the new DHL easy shop that will allow customers to shop anywhere in the US and other countries and get their shipment delivered within two days to their doorstep. Finally, we are signing major deals to upgrade our fleet and our network, in order for us to fully capitalize on the growth of the sector.
Where else do you feel that technological upgrades and advantages will impact your business the most in the medium term?
Today, technology is affecting every aspect of business and is on the fingertips of every customer. Our main goal is to simplify the customer experience with easy and accessible communication platforms. The next major stride will be on demand delivery. We are currently implementing an application that helps consumers to decide how, when, and where they would like their package to be delivered. Meanwhile, the B2B segment continues to witness an increase in integration between our systems and those of the counterpart, with all the data being stored. The integration is playing a big part for both businesses and consumers. It has the capability to have the systems communicate, impacting for example, customs clearance. At present, we are clearing 97% of our shipments before they even reach Oman. In the future, technology will further improve transport systems through robotics, innovations, and smart systems. In the near future, every shipment will be done through GPS delivery, and government regulations will be major enabler in this development.
CAPITALIZING ON GROWTH
TABLE OF CONTENTS
Focus: Future foreign policy
Friends to all, enemy to none
In championing the late Sultan Qaboos' non-interference foreign policy, the new ruler of Oman, Sultan Haitham bin Tariq Al Said, is determined to work for friendship and peace, justice and harmony, and coexistence and positive constructive dialogue.
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David Kalife, CEO, Oman Oil Marketing Company (OOMCO)
Despite Oman's fuel market slowing down, OOMCO increased its sales volume of lubricants by 36% in 2019 and is constructing a greenfield bunker terminal at the Port of Duqm. The company has transformed while growing its expertise in Marketing and Digital.
read articleInterview
Azzan Al Busaidi, CEO, Ithraa
Azzan Al Busaidi is an expert in competitiveness and economic growth. He was appointed CEO of Ithraa in 2019 after 17 years spent covering managerial roles in the organization. Al Busaidi was previously Ithraa's director general of planning and studies and is a strong advocate of the potential of digitization. He holds an MBA from the University of Strathclyde and a BSc in Economics from Sultan Qaboos University.
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Qais bin Mohammed Al Yousef, Minister of Commerce, Industry & Investment Promotion & Former Chairman, Oman Chamber of Commerce and Industry
Private Omani companies will be able to benefit greatly from the Fourth Industrial Revolution by enhancing their local value-added strategies and upskilling the workforce.
read articleInterview
Tahir Bin Salim Bin Abdullah Al Amri, Executive President, Central Bank of Oman (CBO)
The Central Bank of Oman's job is to ensure there is adequate liquidity in the system and that banks remain robust and resilient to meet the credit requirements of all segments without undermining financial stability.
read articleB2B
Capital markets
CMA and MSM are supporting Vision 2040 by providing financing to government companies that intend to go public, financing expansion of existing and new IPOs, and widening the investors base in Oman by enhancing and developing the investment funds and insurance industries.
read articleInterview
Khalid Al Balushi, CEO, Khazaen Economic City
International investors and business owners can benefit from Khazaen Economic City's strategic location and its close proximity to the main gateways of the country to import, process, manufacture, distribute locally, and export their goods and services.
read articleFocus: Port 4.0
Destined for greatness
Investments in world-class infrastructure have generated huge rewards for Oman. The goal now is to leverage technology as a disruptive enabler, build human capacity across the public and private logistics sectors, and drive operational efficiencies to build an integrated logistics business environment that is benchmarked against the world's best.
read articleFocus: Gap in tourism services
All bases covered
An amalgamation of local companies and unique experiences in Oman has created an original flavor that is further differentiating Oman's tourism offering from other countries and in the process attracting scores of tourists from all across the world.
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Engineering design
Renardet Engineering Consultants and Design Unit Engineering are recognized experts in their fields. While the former is an international company strongly committed to excellent engineering consultancy services and environmental practices, the latter is an Oman-based team of architects and engineers that incorporates local culture and traditions.
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Construction materials
Oman's construction sector is facing a host of challenges, but Hempel Paints and Al Maha Ceramics are confident that a mix of forward-thinking business models, unique products, and strong government initiatives will help them through turbulent times and generate positive returns in the long run.
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Salim Razvi, CEO, Oman Academic Accreditation Authority (OAAA)
Focusing on higher education institutional accreditation, program accreditation, and the updating and maintaining of the Oman Qualifications Framework, OAAA is helping further advance higher education in the Sultanate.
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