RUNNING THE REVOLUTION
The fourth industrial revolution has huge consequences for all sectors of every country's economy. But will they seize the moment?
As data collecting capabilities in every sector have grown since the advent of mainstream usage of computers and internet, the need to harness this data has grown with it. Thanks to the innovations brought by the fourth industrial revolution, including AI, 3D printing, machine learning, and big data analysis, businesses in all sectors, especially manufacturing, will benefit from shrinking labor costs, more efficient processes, and better operations management. To be ahead of the curve, Oman is already starting to view all sectors' downstream processes through the lens of the fourth industrial revolution.
The sector with the largest potential to be impacted by the fourth industrial revolution is that of manufacturing. This is due to revolution's innovations, which will essentially bring more efficient ways of manufacturing by improving automated processes, thus lowering labor costs and reducing CAPEX early in manufacturing processes. Indeed, as Krishna Rao, Executive Director and Board member of SV Pittie Sohar, noted in his TBY interview, “Highly efficient machines increase quality and quantity of output while consuming less power and still allow for high employment without being detrimental to the bottom line."
Furthermore, as manufacturing downstream processes are usually labor intensive and detail-oriented, tools such as more sophisticated automation may lead to increased outputs, but without the rise in labor costs and time. It may also allow companies to introduce value-added processes in their downstream, especially in sectors like mining where business lines are mainly confined to raw material output. “In this sense," said Public Authority for Mining CEO Hilal Al Busaidi in his TBY interview, “innovation for the mining industry will be paramount because it will help utilize every element of minerals, creating value-added products, instead of just exporting the raw materials. It would also help in terms of improving efficiency and cost-effectiveness."
The revolution's tools will also be helpful in processing-heavy sectors, such as F&B. Oman's Industrial Innovation Centre (IIC) has decided to focus on the sector because of its “tremendous room for growth," according to its CEO, Abdullah al Makruki, in an article by Oman Observer. Food sales in Oman are estimated to experience an estimated annual growth of 6.5% between 2019 and 2023, with the sector expected to grow around 7.1% annually in the whole GCC region, according to research by MENA Research Partners. Because of the trend in healthy and plant-based food, the opportunities for introducing downstream processes to create value-added products (i.e. meat alternatives and the like) is enormous. With the processing of big data around food trends and customers' tastes, companies in the sector could create innovative products, without spending money on exhaustive research surveys.
While innovation is, in and of itself, something to be welcomed, especially in downstream processes, collaboration is the oil that keeps the cogs of innovation turning. As Al Mahruki told TBY in his interview: “Partnership is a very crucial factor when you talk about technology transfer and innovation. For innovation to have an impact, there is a need to network with experts and innovation agencies as one ecosystem."
Perhaps therein lies one reason why the fourth industrial revolution hasn't had quite as large of a bang as first postulated. While global trade networks and internet connections have brought large swaths of the world in contact with one another, it has not necessarily led to the creation of one giant ecosystem, with experts working together on how to use these tools to bring about greater advances.
There is no doubt the fourth industrial revolution will force companies across all sectors to rethink how they conduct business. The question is will its true energy be harnessed in the short run? With the government's commitment to integrating the tools of the fourth industrial revolution tools into its economy, Oman could lead the charge forward for the rest of the world.
RUNNING THE REVOLUTION
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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