SECURING STABILITY AND GROWTH
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.
BIOGRAPHY
Tahir Bin Salim Bin Abdullah Al Amri was appointed Executive President of CBO in 2017. He is an experienced treasury and finance professional with a successful track record in all aspects of treasury and finance functions. He serves as a board member of a number of private and public entities, from a leading local bank to sovereign wealth funds, and the oil and gas industry. He has played leading roles in negotiating financing agreements, writing articles of association, technical licensing and construction contracts, oil and gas upstream agreements, shareholder agreements, shipping contracts, establishing credit policies and procedures, and board audit committees.
How are digital services shaping the traditional retail and wholesale banking sector?
The customer-centric business model is always vital for the growth and profitability of the banking sector, regardless of the changing contours of delivery modes. The increasing digitalization in banking has improved the pace, scale, scope, and ease of both retail and wholesale banking services over the last few years. At the same time, it has led to increased efficiency and productivity in the banking sector, in turn, reducing the cost of conducting business. The technological innovation driven by ever-evolving customer expectations and the quest for improving business processes has paved the way for increased digitalization in the banking sector globally. Notably, the banking sector in Oman has always been a front-runner in adopting new ideas, technologies, and business models to provide hassle-free banking services to customers. Banks in Oman have implemented cutting-edge technologies, such as internet banking, mobile banking, and so on, and are currently exploring new technologies such as blockchain and AI.
How can the Omani banking sector fully capitalize on the opportunities brought by infrastructure projects, new PPPs, and SMEs?
As part of efficient and prudent financial intermediation, banks always have to look for sound and viable projects for funding. CBO, on its part, ensures that there is adequate liquidity in the system and banks remain robust and resilient to meet the credit requirements of all segments without undermining financial stability. Currently, there is ample scope in the banking sector to provide for higher credit to different segments of the economy. The reduction in the minimum capital adequacy ratio by 1% in 2019 and measures announced recently in the wake of the COVID-19 pandemic, such as 50% reduction in Capital Conservation Buffer (CCB) to 1.25%, increase in lending ratio from 87.5% to 92.5%, and reduction in interest rates on standing facilities would ease credit conditions considerably. Therefore, given the availability of credit, banks should be willing to explore the credit opportunities being offered by infrastructure projects, new PPPs, and SMEs. Recent government policies including the promulgation of key legislations related to foreign investment, PPP, privatization, and bankruptcy, among others, would also create opportunities for banks to extend credit.
How can Oman's banking sector help make the Sultanate a destination for international investors and funds?
A healthy and resilient banking sector is necessary to ensure financial stability and growth, and attract international investors. Oman's banking sector has been displaying robustness and resilience over the years. Omani banks are equipped with state-of-the-art technologies and excellent human capital resources, which enable them to provide banking services that are at par with multinational banks. The banking sector in Oman is well-poised to support the country in attracting international investors and funds.
What are CBO's strategic priorities for 2021, and what will be the main macroeconomic factors driving them?
In its pursuit to support growth and ensure financial stability in the Sultanate, CBO will continue to strive for a healthy and strong banking sector that is able to provide quality banking services to all segments. Furthermore, CBO will respond to the evolving macroeconomic conditions in a proactive manner so that the intended objectives are achieved while ensuring the sector's resilience. For example, in response to the COVID-19 pandemic, CBO announced a slew of measures to ensure adequate liquidity in the system, ease credit conditions, and provide temporary and timely relief to borrowers. CBO is also engaged in improving financial outreach and banking services. A fintech set up has been constituted to study, recommend, and oversee the establishment and development of the CBO's fintech agenda, which will feed into the aspired Oman agenda. CBO has also formed an internal taskforce that is actively working with the concerned institutions to adopt new Industry 4.0 technologies.
SECURING STABILITY AND GROWTH
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