SMART BUILDINGS
Alargan Towell and Oman International Group are integrating innovation and technology to differentiate their offerings, attract newer generations, and generate better returns for shareholders.
What can be done to address the challenges facing Oman's real estate industry?
MOHAMMED AL ABRI The government should start regulating the market and issue licenses to real developers. Prices have been declining and considerable competition is pushing those prices even lower. For example, the land we bought has lost its value over time, but it will eventually go up. For example, we previously bought a mixed-use plot of land for USD12 million, and now it is hardly worth USD6 million. For this reason, we decided to shift our focus to integrated tourism complexes (ITC), with the aim of creating affordable, smart, and sustainable ITCs. The government does not spend on big projects because the private sector in Oman is small, and there are not many companies that can take on big projects. The government's only way forward is to sell assets and encourage investors and developers to invest more in the economy. Therefore, the government has to give some of its roles to the private sector in order for the private sector to drive the economy. We see this process as a potential avenue for growth in the future.
What were the major highlights of 2019, and how do they reflect the current status of the Omani economy?
TIM VALLANCEY In 2018, we expanded our main service area of commercial cleaning across the country and identified the catering business line, especially on the institutional side, as a potential area of expansion. That said, our expertise is in the camp/construction catering sector and this market has contracted with the decline in the number of construction projects. On the other hand, in the hard services or maintenance segment, we have witnessed almost 100% growth, and for 2020 we expect the same amount of growth, if not more. This segment of the market is maturing and while there are still a lot of small players out there, the clients' expectations are changing. These expectations help high-quality service providers like Oman International Group.
What is your definition of innovation? How are technology and digitalization impacting your business?
MAA Today's generation want a variety of different amenities. We need to do something different and new in order to attract buyers. We introduce different technologies to appeal to the youth and build environmentally sustainable buildings to attract environmental activists. This, for us, is innovation. Technology is available everywhere and to everyone. It is essential in this new day and age; this is why we are incorporating it in our projects. It appeals to customers because technology makes life convenient.
What role can technology play in your business model?
TV There are many building management technologies on the market, but clients still need to understand their costs and benefits. The attitude is still very much short term and focused on price, although the efficiency and cost of maintaining or managing a building can be reduced by incorporating standards and technology during the design phase. Technology needs to be incorporated during the early stages of building design and that possibly requires some regulation. With the emphasis now shifting toward efficiency and sustainability, the overall attitude toward technologies will certainly improve in the medium to long term.
How will the concept of community change in the future?
MAA Community is the place where you feel integrated. We are working on having many amenities within the community, such as offices in residential projects for residents to be closer to home, thus eliminating the need for residents to commute to work every day. Our goal is to make our residents' lives more convenient.
What are your priorities and expectations for 2020?
TV We started the year well and have won a number of new big contracts. The government's focus on enabling the private sector bodes well for us, and the policies being put in place encourage the development of the private sector. Our priority is to grow our revenue and maintain shareholder returns. We also place a high priority on in-country value and expect to see more Omanis coming into the business. We are also looking at different technologies to increase productivity.
SMART BUILDINGS
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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