Capital Markets
From The Report: Oman 2016
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Although performance has been subdued in 2015 compared to 2014, the market is set to be bolstered by various developments in the sector. Regulatory changes obliging insurance companies to list will add to the offerings pipeline, as should government plans to relax listings requirements. Meanwhile, with the country’s oil revenues down, the government has started to look elsewhere for means of deficit financing, with plans to issue a sharia-compliant bond under way. The country has also seen growing initial public offering (IPO) activity in recent years, spurred in part by regulatory requirements for foreign-backed electricity companies to conduct share offerings. This chapter contains an interview with Abdulaziz Mohammed Al Balushi, CEO, Ominvest.
Articles from this Chapter
Silver lining: Performance in 2015 has been subdued, but the market is set to be bolstered by some new developments
Offering promise: Altered landscape set to spark a rise in the number of new listingsOBGplus
Oman has seen growing initial public offering (IPO) activity in recent years, spurred in part by regulatory requirements for foreign-backed electricity companies to conduct share offerings. While 2015 got off to a slower start than the previous year, recent regulatory changes should help to further boost the IPO pipeline in coming years and in turn to improve liquidity levels on the Muscat Securities Market’s (MSM) equity exchange. These changes include a 2014 law obliging insurance companies to…
Embracing diversity: OBG talks to Abdulaziz Mohammed Al Balushi, CEO, OminvestOBGplus
Interview: Abdulaziz Mohammed Al Balushi How is the low price of oil at the moment impacting performance of the markets in the sultanate? ABDULAZIZ MOHAMMED AL BALUSHI: Oil prices are down by around 60% to $45 a barrel in November 2015 after touching $116 in June 2014. The Ministry of Finance has reported a large budget deficit of OR2.9bn ($7.5bn) in the first nine months of 2015, and for the full year the IMF expects the budget deficit to be around 14.8% of GDP. Going forward, sustained…
Phoenix Power: PowerOBGplus
The Company Phoenix Power’s core activity is to develop, finance, operate, maintain and insure a gas-fired power generating plant located in Sur Industrial Estate between the Oman LNG terminal and Oman India Fertiliser Company plant. The plant has been in full commercial operation since December 2014. Phoenix Power has an operation and maintenance agreement with Phoenix Operation and Maintenance Company, which is managed by the same shareholders as Phoenix Power. The company announced the opening of its initial public offering (IPO) in May 2015, offering 511.9m shares at a price of OR0.11 ($0.28) each, or a total of OR56.3m ($145.8m). The…
Ominvest: InvestmentOBGplus
The Company One of the oldest investment holding companies in Oman, Ominvest was established in 1983 by private business groups, public sector institutional investors and the general public. It has seen steady growth since being listed on the Muscat Securities Market in 1989. Reflecting solid business performance, the stock has delivered impressive gains. Since 1996 Ominvest shareholders have earned a compound annual total return of 15%, versus 6% delivered by the MSM Index. Oman Arab Bank (OAB) is Ominvest’s largest investment, with 51% ownership. The bank has contributed significantly to the group’s success through growth in profits and…
Ahlibank: BankingOBGplus
The Company The publicly listed Ahlibank is engaged in commercial banking activities in Oman through a network of 19 branches. It was formed in November 2007 when Ahli United Bank (AUB) acquired a 35% stake in Alliance Housing Bank, a specialised mortgage finance provider. AUB acquired the stake by way of full subscription of Alliance Housing Bank’s capital increase for a total capital consideration of OR50.9m ($131.8m). AUB also signed an agreement for management control for five years. Since the acquisition, Ahlibank has diversified its business portfolio to become a fully fledged commercial bank, including retail finance, corporate finance…
Al Maha Ceramics: IndustryOBGplus
The Company Al Maha Ceramics (AMC) was set up in 2006 and began commercial production in April 2008, with a manufacturing plant in Sohar Industrial Area spread over 150,000 sq metres. The company has emerged as one of the largest selling ceramic tiles in the years since its inception, due to its popularity in the local market as well as in the export market. Its distribution network is spread wide across the UAE, Saudi Arabia, Qatar, Bahrain, Syria, Lebanon, Jordan, Africa and South Asia. AMC is one of the lowest-cost ceramic tile manufacturers in the region because of proximity to its mines and long-term agreements with the government for fuel…
Bank Muscat: BankingOBGplus
The Company Bank Muscat (BM) is the leading financial services provider in Oman, with a strong presence in corporate, retail, investment and private banking, as well as in asset management. It was founded in 1982 and grew through a series of mergers and acquisitions during the 1990s. Between 2000 and 2014 BM’s consolidated assets grew at a compound annual growth rate of 15%. Its total assets stand at OR12.5bn ($32.4bn). BM has the largest network in Oman, with 144 branches, 440 ATMs and 4500 point of sale terminals, and employs more than 3400 people. Its international operations include branches in Saudi Arabia and Kuwait, and a representative…
Ooredoo: TelecomsOBGplus
The Company Omani Qatari Telecommunications Company (Ooredoo), a leading provider of telecoms services in Oman, was founded in 2004 with its headquarters in Muscat. In February 2005 it was awarded a mobile licence in Oman for 15 years, and in June 2009 it was granted a 25-year fixed licence. Its core business activity is the provision of mobile and fixed telecoms networks and services to residential and corporate customers in Oman. The company’s major shareholder Qtel MENA Investcom (Qatar’s Ooredoo Group) owns 55% of Ooredoo Oman and has operational presence in 16 countries and 95m customers worldwide. In March 2010 it was decided to make…
