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National Geographic Picks Short Film Shot in Oman For Showcase $OMAG.us

Posted by AGORACOM-JC at 12:25 PM on Thursday, September 1st, 2016

National Geographic picks short film shot in Oman for showcase

 

Muscat Daily staff writer
August 17, 2015
Muscat –

With more than 160,000 hits on the video sharing portal Vimeo, the four-minute film 12 Days in Oman is in the spotlight again as it has been selected by National Geographic’s Short Film Showcase.

Shot over 12 days in Oman, the video has got rave reviews on social media and thousands of ‘thank you’ posts for showcasing Oman’s beauty to the world.

Made by young German traveller and filmmaker Marko Roth

, a footage of the film has also been included in a music video for German music band Gamper & Dadoni.

Short Film Showcase spotlights exceptional short videos created by filmmakers and posted on the Web and selected by National Geographic editors.

“We look for work that affirms National Geographic’s mission of inspiring people to care about the planet,” said Rachel Link of National Geographic.

About 12 Days in Oman Link said, “Immerse yourself in the smells, sights, and sounds of this stunning country situated on the southeastern coast of the Arabian Peninsula. Take in every inch of its beauty as these travellers climb mountains, dive into crystal clear waters, and walk through bustling city streets.”

Roth told National Geographic that choosing Oman as a destination was just by chance.

pic of marko roth-himself

“My friends Lucas, Dominik, Vivi, and I were looking for cheap flights and found one to Muscat. A place we had never heard about meant something new to discover – we had to go,” he said.

The best part of the trip for the team was that they found Oman to be secluded and not over exposed by tourism. “We never saw any big tourist groups, no annoying people with their huge cameras. It was calm. We had to work to discover all the beautiful spots. There were no signs and you couldn’t really trust the GPS. I loved that.”

One thing that struck Roth and his team and also overwhelmed them was how open and cultured Omanis were. “All Omanis were so friendly and helpful. We received amazing feedback for the film. Two Omanis invited us for dinner and we received more than 80 messages thanking us.”

Asked if he were to recommend things for people to do/eat/see while they’re in Oman, he said that for meals, one can get chicken sandwich and dates anywhere. “I fell in love with dates in Oman. It’s almost impossible to find tastier ones in Germany. You get your daily dose of Arabic tea with dates everywhere.”

Recommending exploring Muscat, Salalah, and Musandam and to check out the dry riverbeds or wadis, he said, “There are amazing spots to cliff-jump!”

Roth said he found Oman even safer than his own country.

 

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Omani bank appointed Omagine Phase 1 financial advisor $OMAG.us

Posted by AGORACOM-JC at 9:04 AM on Tuesday, August 30th, 2016

  • Omani bank has been hired as a financial advisor and lender for phase one of the multi-billion dollar Omagine project, which is scheduled to begin in 2017
  • Bank will deliver a term-sheet specifying debt financing and advisory services on or before September 4, to execute phase one of the project

Omani bank appointed Omagine Phase 1 financial advisor

August 29, 2016 | 9:44 PM

by Times News Service

Located in Seeb, the Omagine project features seven pearl-shaped buildings, which will host hotels, offices, residences and entertainment venues, on one million square metres of land.

Sharelines

Omani bank appointed Omagine Phase 1 financial advisor

#Omani bank appointed #Omagine Phase 1 financial #advisor

Muscat: An Omani bank has been hired as a financial advisor and lender for phase one of the multi-billion dollar Omagine project, which is scheduled to begin in 2017.

The bank will deliver a term-sheet specifying debt financing and advisory services on or before September 4, to execute phase one of the project.

A term-sheet is a bullet point document outlining the material terms and conditions of a business agreement.

When asked whether Omagine will agree to the term sheet of the Omani bank, Omagine Chairman Frank J. Drohan said he will not be able to say until he sees it. “We are working on that process now,” he told the Times of Oman.

Located in Seeb, the project features seven pearl-shaped buildings, which will host hotels, offices, residences and entertainment venues, on one million square metres of land.

Phase one of the project is valued at approximately $220 million and will have one hotel, 250 residences and one pearl, said U.S.-based Omagine Inc. in its quarterly report filed with the U.S. Securities and Exchange Commission.

The company, however, did not disclose the name of the bank.

The project is expected to create more than 1,000 jobs for nationals when it is completed in seven years.

“During the July 19 to August 18, 2016 period, shareholders of Omagine LLC met several times, both separately and together, with the senior management of the Omani Bank and the Omani bank has agreed in principle to be the LLC’s financial adviser and to provide debt financing required for LLC to design, develop and construct phase one valued at approximately $220 million,” the company said in the report.

http://timesofoman.com/article/91378/Oman/Tourism/Omani-bank-appointed-Omagine-Phase-1-financial-advisor

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Phase 1 of Omagine project gets shareholders’ nod $OMAG.us

Posted by AGORACOM-JC at 8:41 AM on Wednesday, August 24th, 2016

Omag

The following news pieces were published in the Muscat Daily and the Oman Observer:

Phase 1 of Omagine project gets shareholders’ nod
Phase 1 of Omagine project gets shareholders’ nod

  • Agreed to move ahead with Phase 1 of the eagerly anticipated development with an investment of around $220 million
  • Phase 1 strategy was firmed up during a series of shareholder meetings held over the course of the past two months.
  • Phase 1 envisages the construction of one hotel, 250 residences and the first of seven so-called ‘Pearl’ structures – 20-metre-diameter buildings located along an open boardwalk that will provide an iconic appeal to the overall Omagine project

By Conrad Prabhu — MUSCAT: August 23: The shareholders of Omagine LLC, which is developing a mixed-use tourism and residential real estate scheme just off Muscat International Airport on the Sea of Oman coast, have agreed to move ahead with Phase 1 of the eagerly anticipated development with an investment of around $220 million. The developer’s US-based holding company, Omagine Inc, said in a quarterly filing to the Securities and Exchange Commission (SEC) that the Phase 1 strategy was firmed up during a series of shareholder meetings held over the course of the past two months.

Phase 1 envisages the construction of one hotel, 250 residences and the first of seven so-called ‘Pearl’ structures – 20-metre-diameter buildings located along an open boardwalk that will provide an iconic appeal to the overall Omagine project. At the same time, the shareholders agreed to appoint a local Omani bank as the company’s financial adviser and lender. The bank in question, which has not been identified, has agreed in principle to be the developer’s financial adviser and to provide the debt financing required for Omagine to design, develop and construct Phase One valued at approximately $220 million.

Additionally, Omagine agreed to take steps to formalise an agreement with Lebanon-based multinational construction firm Consolidated Contractors Company (CCC) as the general contractor for the Omagine project. CCC-Oman and CCC-Panama, wholly owned subsidiaries of Consolidated Contractors International Company (CCIC), have a combined 15 per cent stake in the Omagine project.

The revelations mark an important effort to get construction work started in earnest on the ambitious development. The lavish scheme is due to come up a roughly 1 million sq metre beachfront location, whose area will been augmented by a further 100,000 sq metres thanks to the addition of reclaimed land.

Conceived as an elegant integration of cultural, scientific, heritage, entertainment and residential components, the Omagine project will be distinguished by the presence of seven pearl shaped buildings located along the waterfront. These ‘Pearls’ will serve as backdrops for entertainment and exhibitions.
Other notable features of the ambitious development include an amphitheatre and stage, enclosed harbour and marina, boat slips and docking facilities, canal, three hotels of 5-, 4- and 4-star rating, shopping and retail establishments, and commercial office buildings.

More than 2,000 residences will be constructed and offered for sale in the context of the project’s designation as an Integrated Tourism Complex (ITC).

Initial phases of the Omagine project are planned to be completed by late 2021, according to the filing. New York headquartered Omagine Inc has a 60-per cent shareholding in Omagine LLC, which is also owned by Royal Court Affairs of Oman (25 per cent), and two subsidiaries of Consolidated Contractors International Company SAL (15 per cent).

Source: http://omanobserver.om/phase-1-omagine-project-gets-shareholders-nod/

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August 24, 2016

OMANI BANK LIKELY TO BE FINANCIAL ADVISOR, LENDER FOR PHASE ONE OF OMAGINE PROJECT

An artist’s rendering of the Omagine project (Source: omagine.com)

By Gulam Ali Khan
August 23, 2016
Muscat –

Omagine LLC, which plans to develop a US$2.5bn beachfront tourism and real-estate project in Muscat, is likely to hire an Omani bank as its financial advisor, that would also provide debt financing for phase one of the project.

“During the period between July 19 to August 18 Omagine LLC shareholders met several times both separately and together with the senior management of the Omani bank and as of the date hereof, the Omani bank has agreed in principle to be Omagine LLC’s financial advisor and to provide the debt financing required for the Omagine project to design, develop and construct phase one valued at approximately US$220mn,” US-based Omagine Inc – the majority shareholder in Omagine LLC – said in its quarterly report filed with the US Securities and Exchange Commission on Tuesday.

The company, however, did not disclose the name of the bank.

Omagine Inc said Omagine LLC’s shareholders held two meetings on July 19 and August 18 and reviewed and discussed the present status of the project to take it forward. The meetings recommended that the company hire a local Omani bank as its financial advisor and lender.

The foregoing arrangement with the Omani bank is subject to its final due diligence and the execution of an agreement with Omagine LLC, the company said. But the Omani bank, Omagine Inc said, has indicated to the shareholders that, barring any unknown impediment (of which neither management nor the Omani bank are aware), it will deliver a robust term sheet specifying the debt financing and advisory services to Omagine LLC on or before September 4, 2016.

Plans for phase one of the Omagine project – which is presently budgeted at approximately US$220mn – comprise the design and development of one hotel, 250 residences, and one pearl building and associated enabling works and infrastructure within the site, Omagine Inc said.

It said debt financing for phase one is expected to be supplied by the Omani bank and not be syndicated. The Omani bank may, depending upon future circumstances, be Omagine LLC’s financial advisor for follow-on phases or for the entire project, the company said. “As such the financial advisor will arrange the syndicated bank financing for the numbered sections to be constructed subsequent to phase one.”

Omagine Inc further said that it is presently expected that a definitive agreement between Omagine LLC and the Omani bank with respect to phase one will be executed with the next three weeks, but added, “No assurance, however, can be given that any such agreement will be signed until it is actually signed by the parties.”

Notwithstanding the foregoing likely solution, Omagine Inc added the management of Omagine LLC is continuing discussions with other interested investors and contractors in China, Europe and the US.

Read more: http://www.muscatdaily.com/Archive/Business/Omani-bank-likely-to-be-financial-advisor-lender-for-phase-one-of-Omagine-project-4sl7#ixzz4IFfuBsMf

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Omagine In Talks With Chinese Contractors For Oman Project $OMAG.us

Posted by AGORACOM-JC at 6:59 PM on Sunday, May 22nd, 2016

 Omag

An artistic rendition of the $2.5bn Omagine Project (Source: omagine.com)

  • In view of the current weak economic conditions in the GCC region due to the slump in oil prices, Omagine LLC, which plans to develop a US$2.5bn beach-front real-estate and tourism project in Oman, said it is in discussions with two leading Chinese contractors for construction of the project
By Gulam Ali Khan
May 21, 2016
Muscat –

In view of the current weak economic conditions in the GCC region due to the slump in oil prices, Omagine LLC, which plans to develop a US$2.5bn beach-front real-estate and tourism project in Oman, said it is in discussions with two leading Chinese contractors for construction of the project.

In a quarterly report submitted to the US Securities and Exchange Commission (SEC) last week, Omagine LLC’s US-based parent Omagine Inc said that since December 2015 Omagine LLC held multiple meetings with Consolidated Contractors International Co (CCIC), CCC-Oman and Royal Court Affairs (RCA) in an effort to conclude the foregoing arrangements and sign the CCC contract for the project. CCC-Oman is a subsidiary of CCIC.

“All parties are willing but the reality of the current economic scene and the effect it is having on bank liquidity and therefore on future requirements that Omagine LLC will have for construction financing was well recognised by all Omagine LLC shareholders,” Omagine Inc said.

It said that extensive financial negotiations and legal re-drafting of multiple versions of the CCC contract and the amended and restated shareholder agreement have taken place since December 2015.

Given the present liquidity issues at local banks, Omagine Inc said the matter of project construction debt financing is an issue that now moved to the forefront of the agendas of all concerned.

Furthermore, as an exercise in caution, the company said Omagine LLC’s management in February travelled to Beijing and Hong Kong where they held discussions with top executives of two of China’s leading building contractors – each of which is multiple times the size of CCIC.

“These discussions are well advanced at present and negotiations with the larger of the two Chinese contractors are at an advanced stage,” Omagine Inc added.

It said that the proposal being discussed with each of such Chinese contractor is identical and includes a requirement for the award of the Omagine Project construction contract to the Chinese contractor (as a sub-contractor to CCC-Oman) if, and only if, both of the following conditions are fulfilled: (i) an investment into Omagine LLC by the contractor (or its parent company), and (ii) the Chinese contractor (or its parent company) must arrange for the project finance for Omagine Project.

Omagine Inc added the Chinese banks have no such liquidity issue and they are moreover encouraged and directed by Chinese government to support their overseas Chinese contractors in this manner.

“Management is presently cautiously optimistic that it can arrange a transaction involving both CCIC and one of the Chinese contractors which will be beneficial to all parties concerned. No assurance however can be given at this time that management will be successful in this endeavor,” it said.

Omagine Inc added an agreement has been reached with CCIC regarding a new structure of the CCC contract whereby CCC-Oman would be the general contractor and managing contractor (but not necessarily the actual builder) and would oversee and manage the Chinese sub-contractor and CCIC would be paid a fixed fee for this.

“The descriptions of the draft CCC contract as previously disclosed during 2015 are no longer accurate or operative as we have now agreed to a management type general contractor agreement with CCC-Oman based on a flat fee,” the company added.

Omagine said it has held extensive presentations and meetings with local, regional and international banks with respect to the provision of syndicated bank financing, adding “thesediscussions and negotiations are ongoing with Chinese and US-based banks since the onset of the liquidity squeeze in GCC banks.”

Read more: http://www.muscatdaily.com/Archive/Business/Omagine-in-talks-with-Chinese-contractors-for-Oman-project-4pob#ixzz49QZCoxAO

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US Department of State’s Special Representative for Global Partnerships to Discuss Collaborative Innovation for Peace Making at 10th Annual World Summit on Innovation & Entrepreneurship at United Nations $OMAG.us #TheWSIE #WSIEPartners

Posted by AGORACOM-JC at 1:31 PM on Tuesday, May 17th, 2016

Omag

NEW YORK, May 17, 2016 – UNITED NATIONS — One of Wednesday, May 18th’s sessions of The 10th Annual World Summit on Innovation & Entrepreneurship (WSIE 2016) at the United Nations’ General Assembly hall in New York City will feature a discussion about “Innovating for Peace”.

The 20-minute unscripted Innovation for Peace conversation will take place on Wednesday at 12:35 PM EDT by U.S. Department of State Special Representative for Global Partnerships, Andrew O’Brien.

Andrew O’Brien
Special Representative for Global Partnerships
http://www.state.gov/r/pa/ei/biog/209622.htm

Titled “Can We Innovate for Peace?” the discussion will center around the following theme:

Diplomacy is often thought of as a stodgy process – but like all else in this new hyper-connected world, diplomacy must aggressively embrace the innovative use of new technologies, ideas, sustainable designs, citizen-centric solutions and open innovations to enhance how policy leaders think, learn, work and partner to craft good policy outcomes – and avoid bad ones – like wars.

Open models for partnerships in this frenetically fast moving world will foster wider understanding and clearer perceptions of the other side’s interests, needs, fears and requirements — hence, better diplomatic outcomes.

WSIE 2016 is hosted in partnership with the UN Conference on Trade & Development, along with the support of the Secretary of State’s Office of Science & Technology at the Department of State.

In celebration of its 10th anniversary on May 18 – 19th, WSIE will feature panel discussions and presentations profiling the challenges and opportunities faced in seven topic areas by entrepreneurs and enterprises around the world:

(1) Design

(2) Sharing economy

(3) Energy

(4) Industrial Internet

(5) Digital life

(6) Commerce

(7) Health

10th Annual World Summit on Innovation & Entrepreneurship: New Frontiers
http://bit.ly/1R8hzsv

More than 100 presenters — designers, chief executives, innovators, entrepreneurs — will contribute to conversations about new ideas, products, experiences and transformations.

The two-day summit, themed “Celebrating the Crazy Ones: New Frontiers,” offers a bold and provocative exploration of what the future of business, marketspaces, digital trends, products, minds, machines, experiences, and transdisciplinary innovations might look like by 2020.

At WSIE 2016’s “New Frontiers,” 350 attendees — including some of the world’s eminent dreamers and doers — will plot the frontier of innovation and entrepreneurship.

Seating is limited so to ensure proper access to the United Nations Secretariat building, please confirm your attendance at www.thewsie.org/media.

All guests must be confirmed on the WSIE 2016 webpage in order to receive an access badge to UN Headquarters.

If not currently UN accredited please apply for clearance via the link below:

http://www.un.org/en/media/accreditation/request.shtml

WSIE 2016 is presented by Omagine, Inc. (OMAG) and held in collaboration with some of the world’s most innovative companies, including: Gensler, Henry Schein, Libra Group, Mastercard, HCL Technologies, Vancive, Avery Dennison and Direct Energy.

For more information about the Summit, visit www.theWSIE.org or contact Michele Wallace at [email protected], 917-741-5147.

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The Omagine Project at the United Nations General Assembly – May 18, 2016 #TheWSIE #WSIEPartners

Posted by AGORACOM-JC at 7:57 AM on Tuesday, May 17th, 2016

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Smart cities concept in Oman can improve efficiency: Telecom official $OMAG

Posted by AGORACOM-JC at 12:32 PM on Wednesday, April 13th, 2016

Smart cities concept in Oman can improve efficiency: Telecom official

April 13, 2016 | 5:59 PM

By ERIK PRINS/[email protected]

Darren Tong, chief operating officer of Telecom Oman, said that that city planners, developers and businesses should take the opportunity to improve efficiency to reach the goal of a smart city. Photo – Supplied

Muscat: There is a lot of potential to improve efficiency in Oman by introducing the concept of smart cities, Darren Tong, chief operating officer of Telecom Oman said.

“Whatever it is what the city does, whether it’s water management, waste management, traffic management or car parks, there’s a lot of information out there about how things are wasted,” he said. He noted that currently, this information is not being connected and not analysed. “If you do that, you can find means to improve,” he said.

Tong explained that the concept of smart cities is all about reducing waste, improving time management and optimising human interactions. He said that exchanging ideas and knowledge can be made easier by improving connections between people.

“We are having trouble with meeting each other because we are stuck in traffic jams, have trouble connecting with each other because servers are down.

Also, smart technologies can help reduce waste of electricity and water. We are wasting energy because every room has an air condition while not all rooms are occupied,” he said. “Since water in Oman is desalinated and there is no electronic monitoring with electronic meters, when the water leaks, it just flows away and is wasted,” he said.

He said that digitalisation would help here, by connecting sensors with 3G technologies and a data centre absorbing all the information. The information can then be analysed to find ways to optimise the process.

Tong said that city planners, developers and businesses should take the opportunity to improve efficiency to reach the goal of a smart city. “If you identify the needs and certain areas of inefficiency, as an entrepreneur we can go and address it,” he said.

He said that Oman is in a starting stage of introducing smart cities. “Right now, nothing is connected, nothing is studied or analysed. The potential however, is to cut your energy costs by half,” he said.

“Smart city is a way for Oman to participate in the digital economy, train its human resources and take advantage of using data to make government services more efficient.”

He said that Telecom Oman, which is seeking a licence to operate as a third telecom operator in Oman, can provide the infrastructure to help stakeholders make this move towards more efficiency. He said that Telecom Oman is seeking to play a role in the development of Omagine, a new project where smart city technologies will be displayed. “This is where the technologies are showcased, tested and hopefully rolled out to the rest of the country. By 2020 we should be able to see a first version of a smart city here in Oman” he said.

He said that there is also potential for e-business to flourish in Oman.

“A lot of Omani’s are still involved with brick-and-mortar. They like to visit shops and they like to feel and hold the product,” he said. He noted that new technologies like data centres can help the industry to grow in Oman, by inviting big players in e-commerce to base their operations here.

Tong said that as a new telecom operator, it wants to be more than a provider offering phone calls and internet. “We want to be a catalyst in introducing new technologies and solutions to Oman,” he said.

He added that Telecom Oman not only wants to provide the infrastructure like fibre optic or towers, but also provide the products and services on top of it, like apps, data centres.

“Whoever wants to set up a business somewhere, we can do the mobile phone service, internet and ERP and CRS systems and other services, while the entrepreneur can focus on what he is good at,” he said.
http://timesofoman.com/article/81459/Business/Smart-cities-concept-in-Oman-can-improve-efficiency:-Telecom-official

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Omagine’s Margin Of Safety Is Very Real

Posted by AGORACOM-JC at 12:56 PM on Friday, February 19th, 2016

Summary

  • At $1.34/share the stock is trading for just less than 12% of the company’s net current assets.
  • Investors have good justification for being pessimistic toward Omagine’s future profitability.
  • The question is not whether investor sentiment should be low, but whether it is too low.

Omagine, Inc. (OTCQB:OMAG), a Delaware-based holding company, is a stock the market has apparently left for dead. In fact, investors are currently declaring that the company is worth more dead than alive. At $1.34/share the stock is trading for just less than 12% of the company’s net current assets. This means that not only does the market value the firm’s Property, Plant & Equipment at zero, but it is also discounting the net liquid assets by nearly 90%.

Benjamin Graham famously classified stocks such as Omagine as Net Current Asset Value (NCAV) stocks. NCAV is a stock-selection strategy which Graham developed and implemented. The strategy finds stocks trading for less than the difference between current assets minus total liabilities. There is no regard given to the company’s long-term assets or future profits. Warren Buffett nicknamed it the “cigar-butt approach” because:

Investors have good justification for being pessimistic toward Omagine’s future profitability. The company has consistently posted negative earnings and free cash flow in each year for the last decade. The question is not whether investor sentiment should be low, but whether it is too low. The company has reported free cash flow per share of negative $0.064 on average for each of the last five years. If this losing trend continues, it would take 160 years for the company’s net current assets to fall to what they are valued at today.

Without attempting to make any predictions on Omagine’s future prospects, the fundamentals below clearly show that a significant margin of safety is built into the stock price.

  • Current Assets: $490.85 Million
  • Total Liabilities: $288.92 Million
  • Diluted Weighted Average Shares: 17.42 Million
  • Net Current Asset Value/Share: $11.59
  • Current Price: $1.34 (intraday on 2/18/16)
  • Price/NCAV: 11.6%

Individual investors who buy a diversified group of NCAV stocks such as Omagine, can be confident in the long-term results they will achieve by patiently implementing the strategy. Benjamin Graham acknowledged that this approach is “ridiculously simple” but argued for its undeniable success.

Late in his life, he estimated this strategy earned him an average of 20% per year. He said, “I consider it a fool-proof method of systematic investment – not on the basis of individual results but in terms of the expectable group outcome.”

Graham warned that the approach only works “if you can find enough of them to make a diversified group, and you don’t lose patience if they fail to advance soon after you buy them.” For a deep margin of safety, Graham always made an effort to pay no more than two-thirds the NCAV.

At the time of this writing, Omagine is displaying as stock with the lowest price to NCAV on TheStockMarketBlueprint.com.

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Editor’s Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.

Source: http://seekingalpha.com/article/3911376-omagines-margin-safety-real?auth_param=uq7tv:1bcehmb:2cd44cba16e354cad51caa984b08f3c7&dr=1#alt2

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Can Tourism Save Oman From Cheap Oil? – Analysis

Posted by AGORACOM-JC at 11:15 AM on Wednesday, February 3rd, 2016
Oman major oil and natural gas infrastructure. Source: U.S. Energy Information Administration, IHS EDIN
  • Of all Gulf Cooperation Council (GCC) members, non-OPEC Oman is most vulnerable to low oil prices.
  • Oman’s vibrant tourism industry has the potential to become the sultanate’s lifeline as the oil crisis poses a host of new challenges.
Oman major oil and natural gas infrastructure. Source: U.S. Energy Information Administration, IHS EDIN

By Giorgio Cafiero February 2, 2016

Of all Gulf Cooperation Council (GCC) members, non-OPEC Oman is most vulnerable to low oil prices. In the 1990s, the sultanate discovered that its oil reserves were substantially smaller than previously thought and Oman’s sovereign wealth fund is a fraction of the size of other GCC nations. At this juncture, Oman—dependent on hydrocarbons for 84 percent of its revenue and roughly half of its GDP—must increase revenue from non-energy sectors. Many Omanis believe that their nation’s vibrant tourism industry can serve as a Plan B, effectively counterbalancing the financial problems stemming from cheap oil.

As oil prices plummeted last year, Oman ran a USD 11.7 billion deficit. To finance the shortfalls in this year’s budget deficit (expected to reach USD 8.6 billion), officials in Muscat have recently approved belt-tightening measures such as raising corporate taxes, deregulating fuel prices, increasing expat visa fees, removing utility subsidies and indefinitely stopping bonuses for public sector employees.

Last month I travelled to Salalah where I met with hotel managers to discuss the country’s tourism industry and their role in the sultanate’s quest to achieve greater economic diversification. One could be forgiven for doubting that the tropical city of Salalah, situated along the Indian Ocean coast in Oman’s southernmost Dhofar governorate, belongs to the same continent, let alone country, as Muscat. Freshwater springs, waterfalls, fruit plantations, flower gardens, palm groves, and quiet beaches attract many tourists each year. Although travelers from Europe (mainly from Germany, Italy, Slovakia and Sweden) occupy the city’s hotels year round, Arab Gulf state nationals escape the scorching summer heat during the monsoon (or khareef) season between June and September to enjoy Salalah’s natural beauty and cooler temperatures.

Cheap oil has severely damaged Muscat’s economy, but it appears to have benefited Salalah’s. In an effort to diversify Oman’s sources of revenue, Omani officials have invested in large infrastructure projects across the Dhofar governorate, including the state-of-the-art Salalah International Airport that opened last year and the Sultanate’s National Railway network. Oman’s leadership views such projects as strategic investments that will pay off in the long run by enabling Salalah’s tourism industry to accommodate a greater number of international visitors.

Despite the proximity to Yemen, Salalah’s hotel managers maintain that there is no link between that country’s crisis and any decline in hotel occupancy. Fortunately for Salalah’s stakeholders, Yemen’s easternmost territory near Oman has remained relatively stable and peaceful. Yet, recognizing the potential threat that spillover from Yemen’s civil war could pose to peace in Salalah, Oman’s military has closed the border. Indeed, the Russian plane crash in Egypt and the Sousse and Bardo Museum attacks in Tunisia underscore the potential for terrorism to damage tourism industries.

Hotel managers worry less about spillover violence than the hesitancy of European tourists to vacation so close to a war zone, where heavily armed extremists have asserted their growing power through violence. To address this issue, Oman’s Ministry of Tourism has stepped up efforts to communicate to Western audiences that the country remains stable, despite the 187-mile border it shares with Yemen.

In addition to political stability, a peaceful and tolerant culture bodes well for the future of Oman’s tourism sector. As one hotel manager succinctly put it, “Oman is not Saudi Arabia.” In 2014 Oman’s Majlis al-Shura, the country’s elected consultative body, proposed legislation to criminalize alcohol. Yet, understanding the disastrous effect such a law could have on tourism, few in the tourism industry took the proposal seriously. One man in Muscat explained that although many Omanis do not drink alcohol (or do so rarely), it is contrary to the ‘Omani style’ to impose such a code on foreigners who hail from different parts of the world and bring their own cultures and traditions to the sultanate.

As a maritime nation that once governed an empire stretching from Pakistan to Tanzania, Oman identifies not only as an Arab and Muslim nation, but also as an Indian Ocean country. The racial, cultural, and religious diversity within the sultanate’s political and economic elite underscores Oman’s deeply rooted tradition of accepting non-Arabs and non-Muslims, who have long played an important role in the nation’s history. Omanis are an outwardly looking people who are proud of their diversity. The absence of sectarian strife, terrorism, and violence waged against Western expatriates and tourists certainly distinguishes Oman from other Middle Eastern countries.

Of course, Oman’s future is naturally uncertain. Experts have considered several scenarios whereby the death of Sultan Qaboos, on the throne since 1970, could trigger a succession crisis and foment political unrest. Yet if Oman can maintain its peace and stability in the post-Qaboos era, there is every reason to expect that tourism in Salalah and other parts of Oman can flourish regardless of low oil prices.

Oman’s economic model, which has depended on oil exports since the 1970s, has transformed the sultanate from the impoverished and isolated backwater it was during the reign of Sultan Qaboos’ father Said bin Taimur into a wealthy GCC member. However, such an economic model is unsustainable as Oman reportedly has only 15 years before its oil reserves go dry. To maintain long-term prosperity, Omanis must use their existing petro-wealth to diversify the economy and acquire more revenue from non-hydrocarbon sectors.

At present, cheap oil has exposed the risks of maintaining an unhealthy dependence on hydrocarbons. China’s economic slowdown, Saudi Arabia’s oil production policy, the reentry of Iranian oil on the global market, and the rise of the United States as a major energy actor have led analysts to predict that oil prices will remain low for at least a few more years. This dynamic does no favors for Oman’s state finances. However, Oman’s vibrant tourism industry has the potential to become the sultanate’s lifeline as the oil crisis poses a host of new challenges.

MENASource, a blog sponsored by the Atlantic Council, originally published this article.

Source: http://www.eurasiareview.com/02022016-can-tourism-save-oman-from-cheap-oil-analysis/

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Omagine in talks for funding Phase 1 $2.5bn realty project

Posted by AGORACOM-JC at 1:11 PM on Wednesday, December 2nd, 2015

  • Received a term sheet from the unnamed Qatari lender setting out the terms covering the provision of $25 million loan to finance the first phase of the design and construction of the estimated $2.5 billion development
  • Phase 1, due for execution over the next 10-12 months, includes the master planning, design, engineering and construction work necessary for vertical construction to begin and the administrative, financial and marketing activities necessary for the implementation of Omagine LLC’s business plan, it noted

Conrad Prabhu

MUSCAT — Nov 28: Omagine LLC, which has signed a deal with the Omani government to develop a mixed use tourism and real estate project in Muscat Governorate, says it is currently in discussion with a Qatari bank for financing the first phase activities of this ambitious scheme.

The company’s US-based majority shareholder, Omagine Inc, stated in a filing to the US Securities and Exchange Commission (SEC) that it has received a term sheet from the unnamed Qatari lender setting out the terms covering the provision of $25 million loan to finance the first phase of the design and construction of the estimated $2.5 billion development.

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