REGIONAL BANKING COVERAGE
As the government pushes forward with its privatization drive and PPP program, Ahli Bank and BankDhofar are investing in cutting-edge technologies and partnering with leading fintechs to enrich the customer experience and come out on top.
How do you expect the current macroeconomic situation to impact the banking sector in Oman?
SAID ABDULLAH AL HATMI Oman's banking sector witnessed steady growth in 2019 despite the challenging market conditions and the overall complicated macroeconomic environment. Within this context, the Omani government is proactively taking various measures to improve the economy. More recently, within the context of diversification through the Tanfeedh program, the government enacted several key legislations to attract investment and privatize state-owned enterprises. These measures will positively impact the banking sector, as there will be more opportunities to provide term loans and working capital facilities to the sectors in focus, advising government entities and private companies in raising funds locally and internationally, and offering other financial advisory services.
How is the banking sector positioning itself to successfully capitalize on new digital trends?
ABDUL HAKEEM AL OJAILI Products and services in any industry can be copied. What cannot be copied is organizational culture and customer experience, which is the foundation on which thriving businesses in the service sector stand. At BankDhofar, for example, we have successfully created an organizational culture where we treat our customers like Omanis treat guests. We offer them the highest service quality in the most professional and convenient way. We have equipped all our outlets with cutting-edge technology to further enrich customer experience. We also have a dedicated team of relationship managers, who are trained to cater to our guests, meet their requirements, fulfil their needs, and even exceed their expectations. Our pledge is to offer the best customer experience through service excellence, nurture creativity and innovation, implement a lean operating model, and create a sustainable performance culture that would bring value to our stakeholders.
Which sectors will drive demand in the medium term?
SAAH In the short and medium term, growth in the banking sector is expected to be driven by the key industries outlined by Tanfeedh. Looking at a longer-term horizon, demand for credit from power projects also represent a key area of profitability. The government seeks to increase private-sector participation and monetize its assets to increase its revenues. This will lead to more opportunities for banks to provide corporate finance advisory services. With regards to infrastructure projects, there will be opportunities to set up and operate sector-focused funds for real estate, education, and healthcare. Last but not least, there will be more opportunities for advisory services for PPPs in the field of education and healthcare.
What measures has the bank put in place to achieve its digital strategy?
AHAO We are currently in the fifth year of our comprehensive transformation journey. We have revamped all our digital channels, upgraded our core banking and customer relationship management systems, introduced an enterprise resources planning program, and updated all internal and external processes and procedures. We have also invested in the development of our team's capabilities across all organizational levels. We realize that fintech is the future of the banking industry, so we are currently laying out the infrastructure for further digitalization. For example, we introduced international instant transfer through RippleNet, a brand new blockchain-based remittance service, via BankDhofar mobile banking app. In terms of robotics, we have automated many processes in the back office. We launched a flagship drive-through banking service for the first time in Oman as well as a number of multifunction kiosks in selected BankDhofar outlets.
How is the banking sector engaging with SMEs?
SAAH For banks, the key problem when financing SMEs are the methods used to analyze the creditworthiness of SMEs and the conventional loans granting system. To hedge their risks, commercial banks, together with the government, are running education and tutoring centers, as well as government-backed loan programs. In the long run, these initiatives will reduce banks' risks and increase the appetite for SME lending in Oman. We are starting to see major improvements led by the authorities, which have shifted the focus to Industry 4.0, where many SMEs can develop along the supply chains of bigger players and offer a valued-added proposition.
How do you expect the relationship between banks and fintechs to evolve?
AHAO Banks are gradually shifting toward technology-based applications. The relationship between banks and fintechs is more of a partnership than a competition. We invest in the latest fintech to protect our customers and stakeholders from any security breach. There are some regulatory challenges in terms of information sharing, but the central bank is open to new changes. It is currently reviewing a banking law that would serve the interests of banks and customers.
REGIONAL BANKING COVERAGE
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