DROPPING THE SHOPPING?
Oman has seen an increase in mega mall construction in recent years. But is it the end of an era?
There is no doubt that, globally, retail is facing its hardest time yet. As COVID-19 has customers quarantined at home, major retailers and small businesses alike are facing closures on an unprecedented scale. Add this to the sector's competitor, e-commerce, which has only stood to gain in the past months as consumers use more and more online offerings to get their essential goods, retail's future is looking increasingly uncertain.
The situation may be even more dire for Oman, as its retail sector has seen an increase in mall construction in recent years, thanks to previous positive trends around the sector and its rising contribution to Oman's GDP. Though consumers in the GCC prefer in-person retail experiences to online shopping, e-commerce's impact has definitely been felt across the region, with companies like Souq becoming a household name throughout the GCC. However, for Oman, retail has mainly been seen as a way to increase revenue from tourism, which has experienced growth in recent years. By offering fantasy-like shopping experiences and entertainment venues, Oman hoped to use malls as tourists attractions in and of themselves. This is clearly seen with the Mall of Muscat, which offers an 8,000sqm aquarium, a snow park, and even go-kart tracks.
Oman's latest mall, expected to open door March 2021, is Majid Al Futtaim's Mall of Oman, which plans to offer 140,000sqm of retail space, a family entertainment center, a Carrefour hypermarket, and the country's largest indoor snow park. The mall is to be placed in close proximity to two other large malls, Grand Mall and Avenues Mall, both with similar offerings. Even in normal times, this proximity could offer a challenge through oversupply. But perhaps the mall market in Oman is demonstrative of something else happening in the Sultanate: diversification. With oil prices plummeting thanks to the downturn in global industries, Oman, like other countries in the region, must find a way to create value—and fast. But malls built for tourists and spendthrifts might not be the best way to do this at the moment.
DROPPING THE SHOPPING?
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.
read articleInterview
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.
read articleInterview
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.
read articleB2B
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.
read articleInterview
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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