Content about Oman

Since its inauguration in 2008, investment holding company Foulath has established its position as one of the most comprehensive steel producers in the Middle East, and has developed a unique business model that it is now transferring to Egypt and Oman. Ben Sansom reports.

When the Gulf United Steel Holding Company, Foulath, was formed in Bahrain in June 2008 its aim was to strengthen and develop the steel industry in the Gulf Cooperation Council (GCC) countries and to create stability and security of supply of steel products to the construction industry.

Warren Angus, regional sales and marketing director for the Middle East operations of leading supply chain specialist CEVA Logistics, talks about the vibrant market environment and CEVA’s response to this region of opportunity.

The first new aluminium smelter to be built in the Arabian Gulf in 25 years has become a catalyst for industrial growth in the region, helping to make Oman an attractive destination for multinationals to locate facilities.

Just 10 months after beginning commercial production, Oman Aluminium Processing Industries Limited is planning a phase of expansion to nearly treble the plant’s output. Mr PR Ramakrishnan talks to Ben Sansom about the role the company is playing in Oman’s industrial development.

Having pioneered modern mining in Oman, the government-owned Oman Mining Company (OMCO) is on the threshold of developing a lucrative new copper resource. Ali Waily talks to Gay Sutton about fast tracking the project and protecting the aquifers in an area where water is precious.

GDF Suez and its partners have secured $1.3 billion in financing for the Barka 3 and Sohar 2 independent power projects in Oman.

The greenfield natural gas-fired power plants, which will each have a capacity of 744 MW when operational, carry a total investment cost of $1.7 billion.

Together the plants will add almost 1,500 MW to Oman’s existing capacity of around 3,600 MW. Their power output will be sold under two separate 15-year power purchase contracts to the Oman Power and Water Procurement Company, who will be the sole off-taker.

Privatising power
A major privatisation of the power sector in the Gulf state of Oman is encouraging plenty of investment into a very lucrative sphere. The Al Kamil Power Company is one business benefiting from the system, producing both electricity and excellent results.
Despite the sharp drop in oil prices brought on by the global recession, the Gulf states have, in many ways, been far less severely affected than many Western countries. Governments of Gulf Cooperation Council (GCC) member states have continued to increase spending during the recession rather than slashing it—in total, over the past seven years, it has more than doubled—and in striking contrast to those in the West, private organisations in the Gulf seem to be growing, albeit slowly, rather than collapsing. In fact, on the whole, the GCC states’ demeanour during the crash has been one of relative calm, with substantial overseas assets cushioning many of them from the blow and providing far more stability than in other oil-exporting areas of the world. In fact, in recent months, the Gulf region has been widely regarded as a port in this particularly turbulent storm.