Changing Role
Oman has been undergoing a gradual process of evolution and a dynamic private sector is a result of this says Dr Mohammed M Al Yousef, Group Chairman, Al Yousef Group

The private sector has indeed grown and prospered side-by-side with the growth and development of the country. No doubt, such a pleasant partnership is a direct result of the wise leadership of His Majesty Sultan Qaboos bin Said. This leadership has provided Oman with unmatched security, stability and consistency of macro and micro socio-economic policies and an environment where racial harmony and equal opportunities prevail. These are, in fact, the key ingredients for any country to prosper. Before the start of oil exports in 1967, Oman’s economy was more oriented towards domestic and international trade. Imports were mainly for meeting basic domestic needs whilst exports were limited to dates, limes and fish. Interestingly, Oman at that time was also an exporter of manpower. All that has changed for the better and Oman has itself become a large importer of labour.

Sea change
If you look at the progress of Oman’s private sector, in the early 1970s most of the businesses were concentrating on trading, small scale real estate developments and obtaining agencies for foreign made products but that changed gradually – first towards industrialisation for import substitution and thereafter towards industrialisation for exports. The large scale industries of fertilisers, methanol, steel and LNG, are a testimony to Oman’s march towards that goal. Furthermore, the private sector has, now moved into areas where the government was hitherto the sole provider. For example, you can now see an increasing role for the private sector in health, education, electricity and water production, transmission and distribution.
The role of the private sector, which in most economies is the main wealth creator, is dynamic and always changes with the various stages of development a country normally moves through. In Oman, for example, in 1970’s and 1980’s, the government was either acting as sole investor or as a major partner in setting up industries like Oman Cement, Oman Flour Mills, banks like Oman Housing Bank and Oman Development Bank, hotels etc. This role has evolved now and the private sector has become the dominant investor in hotels and tourism complexes, industries and even hospitals and clinics, universities and colleges.
Although private businesses are driven by profits, and they should be, but their role in national building and socio-economic development will always remain crucial. The role of the private sector, for example, in job creation is extremely important. Today in Oman, the private sector employs more than two thirds of the total labour force. Providing job opportunities to Omanis is the key to spreading prosperity and enhancing the quality of life.

The Key Economic Driver
Mohammed Al Barwani, Chairman, MB Holding Co points to the increasing numbers of Omanis getting jobs in the private businesses as a proof of the corporate sector’s contribution to nation building

When I joined Petroleum Development Oman (PDO) in 1976 as a petroleum engineer, there were only four rigs with a daily production of 200,000 bpd. Thirty-three years later, PDO has over 50 rigs deployed all over the Sultanate with production peaking at 800,000 bpd. In those days, we used to think that oil production would finish by 2020, however today the production is still going strong. Definitely, the country has grown tremendously in these intervening years under His Majesty Sultan Qaboos bin Said.

Again, in those days, most of the oil companies were international but today, you have a majority of local companies providing allied services to PDO. I left PDO in 1986 to start my own company. In this period, the country has changed a lot. The GDP of Oman has doubled or tripled and if you look at the number of schools, hospitals and infrastructure development, the country has come a long way. The whole place has changed.

The private sector of Oman is maturing nicely, comparable to any other developed nation. It has also emerged as the main job-creator. If you look at the increasing number of Omanis being employed in the private sector, it gives you an indication of the development of the private sector.

Taking out a leaf
Where would India be without the Tatas, Reliances and Infosys? Where would Germany be without Siemens and BMW? In Japan and Korea, Toyota and Samsung respectively contributed to nation building. Everywhere, the private sector has been the key economic driver.

Of course, we do make profits. However, if we are providing employment to thousands of Omanis and making some wealth as well, what is wrong with it? I think it is more important to highlight the contribution of the private sector to the national economy. But some of the existing labour policies have to change in order to allow the private sector to expand smoothly in the future. Like for example, we have no issues in employing any number of Omanis but we should also have the right to hire and fire. The future looks great but we should work to make it great.

Main Conduit of Employment Generation
A prosperous private sector will sow the seeds of employment opportunities and drive the economy to greater heights avers Kanak G Khimji, Director, Khimji Ramdas

In 1957, I travelled on a dhow from Muscat to Sur for a business purpose. It took 18 hours. You also could take the camel train between the two destinations. Today you have a superfast coastal highway along the same path, taking you to Sur in a fraction of the time it took me then.

Definitely, the country has grown tremendously in the last 39 years under the benevolent leadership of His Majesty The Sultan. I can say that we are truly blessed. What makes a country is its people. Oman’s greatest asset are its people. The social fabric is multicultural and multi-ethnic and the people are very hospitable. It is a very open society where you can practice your own faith.

When you talk of nation-building, the private sector has a very big role to play, as it is the main conduit for employment generation. A prosperous private sector will sow the seeds of employment opportunities in the country and drive the economy. Earlier only one person in a family of 10 would work, now you have four or more members of a family seeking employment.

Joint efforts
The government has started public-private partnerships in many sectors. It is the responsibility of the private sector to take the country to the next level. Improving efficiency and productivity of workers will greatly contribute to the growth of private businesses.

We are in a time capsule at the moment where the country is about a generation-and-a-half-old. We are celebrating 39 years of modern Oman, so if you look at the work culture there is so much more maturity that is required.Things are however in a state of change. So what we have not achieved in the last 39 years in terms of efficiency and productivity, will surely be done in the coming years.

Looking at the future, I feel that too many holidays are hampering work flow. The government should have emergency windows for banks, immigration etc during holidays to ensure continuity of business. And the government should not specify Omanisation percentages in each sector, but look at the overall numbers employed in individual organisations.


Socially Aware
Maqbool Hameed al Saleh, Chairman, OHI Group of Companies dispels the impression that businesses are merely driven by a motivation to make profits

The private sector is playing a pivotal role in the nation building process, thanks to His Majesty Sultan Qaboos bin Said’s vision. He has encouraged the private sector to play an active role in building the national economy, whereby the corporate sector has contributed as well as benefitted from the process. The private sector has been playing its role in nation building hand-in-hand with the public sector. Being a young country, the public sector set up those industries, which were priorities in the area of infrastructure and which required a huge capital investment. The government now intends to privatise many of these investments, again emphasising the role assigned to the private sector.

We are now in the 39th year of the blessed Renaissance. Right from the start His Majesty provided the opportunity for entrepreneurial skills in the corporate sector to flourish. With 39 years of experience behind us, I do believe that businesses are fully capable of taking on the role of wealth and job creators. Any person who is doing business his or her aim is to contribute to the nation.

Profit driven growth
The perception that businessmen are only driven by profits is not right. In a capitalist economy, profit is an important component for businesses to flourish. It is the profit motive which attracts risk capital to flow in, thereby growing the economy. However, there is an increasing awareness and recognition that profit alone cannot be the barometer to judge business success. This is true in Oman as well. Businesses are recognising the concept of triple bottom line reporting, which has the elements of profits, sustainability and community development. To cite an example, the OHI group has two radio stations – Hi and Hala FM, while they may not be money spinners, these stations are playing an important role in information dissemination in society. When we built hotels in Sohar and Muscat in the 1970s and 1980s, it was to give tourists and business travellers adequate facilities while visiting Oman. Thus every business makes a contribution in its own way.

I would not say that there are impediments to hold back the private sector. Having said that, the bureaucratic machinery would benefit with more operational streamlining, enabling a speedier decision making process. I am sure this will happen as the will to make this happen is there at the very top.

Reaching Out
Companies in Oman are realising that CSR is not a black hole but a worthwhile investment says Hani Zubair, Member of the Board, The Zubair Corporation

As a part of an economy, if a business does not invest back in the economy and society then it would be self defeating. The corporate sector needs to invest in Omanis and look at developing the SME sector as it is the backbone of any economy and the biggest employment generator. The private sector in Oman has played a big role in promoting innovation and information technology (IT). While 40 years may sound like a big number, in the life of a nation or a race, it is a very short span of time. When the blessed Renaissance started in the 1970s, most of the employment was in the public sector, but gradually over the years the private sector has been playing a bigger role in employment generation.

The corporate sector is working as a partner in the government’s Omanisation policy. While the policy needs to be aligned with the needs of the private sector, companies and businesses can do much more on their own. The Zubair Group has started its own Gold programme, to bring more Omanis into middle and senior management positions.

Catching on
The more mature a organisation, the more it is capable in terms of corporate social responsibility (CSR). Slowly and surely people in Oman are realising that CSR is not a black hole but a worthwhile investment. It is great to see companies like Nawras and OmanMobile playing a big role in giving back to the society.

The private sector will touch everyone’s lives on a day-to-day basis only if it controls the infrastructure of the country. This kind of a transfer of ownership has happened in developed economies, but the corporate sector in the Sultanate is not ready to take on that role.

For example, the government owned Oman National Transport Company (ONTC) manages the public transport system. Its mandate is to provide such a service for the majority of people. If this service was handed over to a private company, chances are that they may not be interested in running unprofitable routes. Finally, the government has taken great strides and we are pleased with the level of transparency and systems that have been put in place.
 

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