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New technologies are pushing electricity providers to create solutions for increasing demand.
BIOGRAPHY
Firas A. H. Al-Abduwani has over 10 years of experience in building, developing, and leading teams on visions with an emphasis on adding value and competitiveness to Oman. Al-Abduwani holds a PhD in petroleum engineering from Delft University of Technology, a master's in petroleum engineering from Heriot-Watt, a bachelor's in mechanical engineering from Imperial College, and is an alumnus of IMD and the National CEO Program. He chairs the SME committee of the Oman Chamber of Commerce (OCCI), is a board member of Oman American Business Center (OABC) a member of Oman Business Forum (OBF), and a member of Public Authority of Electricity and Water's (PAEW) Steering Committee of the Strategic Renewable Energy Program.
What was the significance of 2019 for your business?
HTC established its energy department in 2016 as part of its growth and diversification strategy. 2019 saw this department achieve operational breakeven. A second 2019 achievement includes successfully reaching out and engaging with international and local solar developers to establish partnerships to address local market needs. This is significant, as a key missing aspect in our solar offering was the financial element allowing for plant leases over capital investment. Finally, 2019 was more about efficiency and utilization of manpower. We also introduced KPIs to monitor our employees' productivity. We looked at projects related to the fourth industrial revolution and started carrying out them as sub-contracts, which allows us to better understand the market and the technologies themselves.
What challenges prevent you from engaging with the B2C market?
B2C is a huge market with various hurdles. First, there is a fragmentation of technologies. However, Apple, Amazon, Google, and Zigbee Alliance have founded a consortium to standardize their different protocols. If this consortium develops a single standard of interoperability, this will help galvanize the market. Right now, there are some suppliers for home automation services but there are two different business models. Unifying the standards means the new model will start to erode the margins toward a service market, and we will see something in the middle, which is typically where we play in. The second issue with the B2C market is that the utility tariffs for water and electricity are extremely low, and the incentive for efficiency is low. The third issue is the electricity sockets and light switches. Usually, for home automation to work properly, you need to have a live, neutral cable going. However, in Oman, homes can only have a live, ground cable, not a neutral one. This blocks 95% of the home automation market, as homes need to be able to send their data to a command center. As such, we are trying to understand the safety and technical aspects of this divergence and see how we can address it.
Do you think tariffs will go up and there will be more awareness?
Privatization is having an effect on demand, since Oman is extremely cyclical in terms of energy consumption, as winter and summer demand differ hugely. We have many plants that lie idle during certain times, while there are extremely specific peaks at other times; so, on the demand side, energy storage could be used to fix this. Distribution companies could install batteries in your house at their cost and when the demand and tariff cost are low, they start storing energy. Meanwhile, when demand and tariffs go up, energy could be pumped from the batteries, meaning there is no need for generators. What makes it challenging is that our tariffs are attractive for manufacturers, so solutions will have to wait until they mature. If you do not have a serious challenge, there is no motivation for innovation. If there were carbon credits, they would be another driver toward efficiency and smart solutions. If it remains as it is, it will be challenging.
What are your objectives and priorities for 2020, and what are the drivers behind them?
In telecoms, we purposely chose niche segments that we can excel in and that are typically passed over by the majority of solution providers. As such, we will keep on with our operational efficiency initiative and seek new markets to apply a strategy based on IoT and energy efficiency. The solar industry will grow exponentially in the commercial and industrial segment (where we operate in), and we will remain agile to capitalize on our position to continue leading the market share and value delivered to customers. Finally, we now have maturity and autonomy in telecom and energy, and moving forward we will seek more interaction between the two departments to leverage on markets.
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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.
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