TAKING IT TO THE NEXT LEVEL
By working to make the investment process in Oman as transparent and simplified as possible, the Public Authority for Mining seeks to encourage more competitive biddings by the private sector.
BIOGRAPHY
Hilal Al Busaidi has been the CEO of the Public Authority for Mining since 2015. Previously, he worked with Petroleum Development Oman (PDO). Throughout his long career, he has held many different posts, with the latest as petroleum engineering manager. He started his career in 1991 after graduating as a petroleum engineer in the US.
Can you give us a brief overview of today's landscape for mining activity in Oman and how will the new mining law impact the business environment?
In 2018, we issued 26 mining licenses and 35 exploration licenses. This had created about 400 new jobs specifically for Omanis for an investment of OMR700 million. Based on the framework for the mining blocks offerings, we drafted the mining law and sent it for endorsement of those specifications. In order to improve the specifications, we developed an electronic platform that manages all mining and exploration activities and licenses. The platform has the potential to be linked to all governmental systems needed to get an approval. We are planning for the licenses to be applicable for at least five years rather than one, with the option of renewal until 25. We are also trying to put devices that recognize production amounts and send them to the authorities, in order to make follow-up production amount applications unnecessary.
Another law that recently came out is the PPP Law. Under an infrastructural point of view, how can this new law help the mining sector?
PPPs will constitute a key aspect of the infrastructural developments under the new mining strategy, as Oman needs to ensure high-quality road connectivity to either the manufacturing site or production hubs. There are ongoing discussions to build two ports with the Ministry of Transport. In addition, we awarded a consultancy study to define the infrastructural requirement to improve and develop the downstream industry, because that is where the added value could be created. Today, we are offering these blocks for investors, though if they want to build a factory that requires some of the minerals they extract, they have priority over other players, without the need to go through the bidding process.
What is your mapping of the private sector engagement in Oman's mining industry, and how does that define your priorities for 2020?
There are 300 companies with mining licenses, not including exploration licenses, and we have yet to define the criteria to ensure that each company is the best for the right block. A great deal still has to be brought in from abroad, either from the know-how or the investment because over the last decades we have seen exploration activities fall, and we need to manage a healthy portfolio. Larger players need to be given priority, and first and second processing manufacturing are also important. In this environment, our first priority is to focus on a framework for competitive biddings and launching new licenses. Indeed, we aim to make the investment methodology a continuous, transparent, and simplified process. This will allow us to maximize the economic value of the blocks we announced as open for bids and to understand the full contribution of each mining block and the spinoff activities and opportunities that could arise from them both for other businesses and communities. In this sense, 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.
TAKING IT TO THE NEXT LEVEL
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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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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