IN FOR THE LONG HAUL
Al Anwar Holding has excelled by simply sticking to its tried-and-tested strategy of using chaotic market conditions as an opportunity to invest in key markets.
BIOGRAPHY
Khalid M. Ansari is the CEO of Al Anwar Holding. He is a fellow member of the Institute of Chartered Accountants in England and Wales. He started his career in KPMG England and later moved to KPMG Oman. He has gathered extensive business experience in Oman over the last 32 years. He has advised and assisted private companies and government entities in implementing numerous projects, some of which are of national importance. He has also developed strategies for a large number of companies.
How is the current environment impacting Al Anwar Holding, and what opportunities lie in the private equity sector?
Both the GCC and Oman offer plenty of opportunities for private equity investments, as the government is now trying to encourage the private sector to assume a bigger role. This is clear from the PPP Law and the government's plan to diversify the economy. At present, it is a buyers' market as valuations are low, and the stock market has been going down for the last three years, with a lot of foreign investors pulling out of Oman. If we had more funds available, we would buy a number of companies in our chosen clusters. For this reason, we are looking at various other options such as bringing in strategic investors to support this expansion through additional funding. When we look at investments, we prefer those with good corporate governance. This explains why 90% of our investments are in listed companies. Second, we look at leading companies, especially those with an innovative and forward-looking approach. Oman is a small market, so any major project that is set up here will have to focus on exports. At Al Anwar Holding, we are seeking to capitalize on the opportunities in Oman; our strategy is to invest only in the Sultanate for the next three years. We have made direct investments in the manufacturing, financial services, and education sectors, and we are looking to expand into the healthcare sector in the near future.
How can innovation be applied across the business model of your portfolio companies?
Innovation can be applied at four levels: operational, business development, management, and human capital. Companies have to innovate and use technology and new ideas such as automation to go to the next level. AI is just one way to improve the production process. The youth today uses different methods of communications such as social media, so we have to change our marketing approach. It is crucial for CEOs and management to get the correct information and quickly decide. Finally, innovation needs to be applied to the human capital aspect of a company, especially because retaining talent has become a challenge.
What are your expectations in the short to medium term, and what factors are necessary to increase the depth and performance of the market?
Performance has not been good over the last three years as a number of investors have pulled out of the market, which is not a good sign. Companies are trading below book value today. One of the reasons is the link between the stock market, oil prices, and the geopolitical situation. The depth and liquidity in our stock market needs to be increased, as well the pace of decision-making. Most players who enter the market want an option to exit; however, investors such as ours, who are there for a longer period, do not get too affected by the stock market. The Omani market is a highly dividend-oriented market and not too geared toward capital appreciation.
What are your priorities for 2020?
Our priority is to continue focusing on our four clusters. In the manufacturing cluster, we are trying to create an open-ended SPV that will hold all the investment in manufacturing companies and then offload 40% to the international strategic investors. These investments will not only bring financial returns, but innovation, technology, and new markets. In particular, we are seeking investors who already have a manufacturing appetite. Moreover, we want to diversify the range of products within the same manufacturing companies to offer the customer more choice and gain more market share.
IN FOR THE LONG HAUL
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.
read articleB2B
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.
read article