< Previous10 AB/Oman Supplement Vol. 22/17S – November 2021/ AREEJ MOHSIN HAIDER DA R WISH arabianbusiness.com 11 BY NABILA RAHAL From youth-training to solar energy, MHD ACERE’s goals are perfectly aligned with the sultanate’s targets for Vision 2040 TOGETHER ON THE PATHWAY TO A SUSTAINABLE AND DIVERSIFIED OMANI ECONOMY A s one of Oman’s largest conglomer- ates operating in the sultanate for several decades now, Mohsin Haider Darwish (MHD) LLC, has borne witness to all the milestone develop- ments the country has under- taken as it seeks to transform its economy to a diversified one and build a sustainable future for its citizens. Having joined the company 27 years ago, Areej Mohsin Haider Darwish is now at the helm, and has been playing a key role in MHD’s business operations. “We have seen a steady transformation through development plans with the predominant focus on economic diversification,” Areej told Arabian Business’s sister publication CEO Middle East in an interview in July. “We have seen growth in infrastructure, logistics, smart cities, strategic devel- opment of free zones and economic diversification,” she continued. MHD LLC was founded by Mohsin Haider Darwish, Areej’s father. Today, her son, named Mohsin, is CEO 1994 The year in which Areej Mohsin Haider Darwish began her career with MHD LLC q WE PLAY A KEY ROLE IN OMAN’S SUSTAINABLE FUTURE AND OUR GOALS AND OBJECTIVES ARE ALIGNED WITH 2040 OBJECTIVES”12 AB/Oman Supplement Vol. 22/17S – November 2021 C OVER S T O RY / AREEJ MOHSIN HAIDER DA R WISH u MHD LLC expanding its footprint into new sectors by building new relationships and partnerships 2021 The year in which MHD LLC won an award for the Best Corporate Brand from MENAA q OMANISATION IS A KEY FOCUS AREA FOR US AND WE ARE COMMITTED TO EMPLOYMENT OF NATIONAL LABOUR” of the company’s Automo- tive, Construction Equipment & Renewable Energy (ACERE) division, which she is chair- person. In her roles as leader and the middle generation of the family business, Areej has gained insight into a number of areas. Areej values the mixture of experience and youth that she and Mohsin offer MHD LLC. “My son has different thoughts and ideas on how to expand our presence and I have the experience of fore- sight.” However, while she recognises that handing over the corporate reins of power completely is on the horizon, Areej remains focussed on the present. MHD LLC itself has under- taken several developments which reflect its commit- ment to sustainability and diversity in the workforce and highlights its alignment with Oman’s Vision 2040. Areej tells Arabian Busi- ness how, under her leader- ship, MHD LLC has explored business opportunities in new sectors such as tour- ism, education and sustain- able energy. The company’s training institutes support the upskilling of Omani youth and MHD ACERE has recently started introducing electric vehicles and venturing into solar energy business, which Areej describes as “the future of tomorrow.” Oman’s Vision 2040 arabianbusiness.com 13 aims to increase the share of Omanis in the private sector workforce; the government has taken steps to make sure Omanisation goals are being met. Asked what she is most optimistic about when it comes to Oman’s future, Areej says it’s the economic and business growth opportuni- ties which would surely attract foreign global investment into the sultanate. Indeed, in June, Oman introduced a new residency scheme for those looking to invest in the sultanate begin- ning from September, in the latest move to boost foreign direct investment into the country. In a wide-reaching exclu- sive interview with Arabian Business, Areej explores these subjects in depth, shedding light on Oman’s Vision 2040 and revealing her conglom- erate’s continued legacy in growing with the sultanate. How are you helping to contribute to Oman’s Vision 2040? Oman’s Vision 2040 is a devel- opmental plan which aims at generating opportunities and stimulating growth to keep pace with the regional and global changes. It aims at development of a sustain- able and diversified econ- omy driven by the private sector. Vision 2040 focusses on diversification, sustain- able economy, modernising the educational ecosystem and business growth, among other objectives. As a private sector establishment, we play a key role in Oman’s sustain- able future and our goals and objectives are aligned with 2040 objectives. With diversification as a key driver, we have explored business opportunities in new sectors such as tour- ism, education and sustain- able energy. Diversifying our business has helped build a bigger reach. One of Vision 2040’s strategic objectives is to develop a dynamic labour market. Omanisation is a key focus area for us and we are committed to employ- ment of national labour. Our endeavor is to nurture the talent of our Omani work- force. Our training institute focusses on upskilling Omani youth in order to maxim- ise their capabilities and skills. This enables them to compete in the global market. As a board member of the UNICEF Leadership circle, the Upshift initiative was launched in collabora- tion with Oman’s Minis- try of Culture, Sports and Youth wherein I represented the private sector. This programme aims at build- ing skills and encouraging entrepreneurship among the Omani youth. Besides business objec- tives, we are also committed to sustainable growth and development. As every indus- try is turning towards more environmentally-friendly technology, there is a growing trend and use of electric vehi- u Areej Darwish’s vision for MHD LLC is to see the organisation fl ourish by looking for new opportunities q OUR TRAINING INSTITUTE FOCUSSES ON UPSKILLING OMANI YOUTH IN ORDER TO MAXIMISE THEIR CAPABILITIES AND SKILLS” / AREEJ MOHSIN HAIDER DA R WISH14 AB/Oman Supplement Vol. 22/17S – November 2021 u MHD ACERE engages in a myriad of activities and services in Oman to contribute to the sultanate’s growth cles, which can drastically cut down on transportation costs. We have taken the lead and leveraged this opportu- nity by introducing electric charging stations. This is a relatively new concept but we foresee immense potential in this sector. We also believe in creat- ing a sustainable economy by venturing into sustainable business ventures. Sustain- able energy is the future of tomorrow and work- ing towards this, we have ventured into the solar busi- ness as conservation of energy is a national priority. How has the government supported other businesses in Oman and how is it aligned to the nation’s broader goals? Oman has a long-standing commitment to economic diversification. In order to achieve its long-term goals, the Omani government has endeavored to create an attractive business environ- ment for all. The government has taken various steps to encourage entrepreneurship and private businesses through various incentives. The efforts of the government are multi- pronged and commendable as they issued a number of legislations to stimulate the economy. The recent legisla- tions included a law on part- nership between the govern- ment and the private sector and an investment law. Changes to Oman’s investment law have attracted overseas investors and we have seen a surge in FDI. The government has also given many incentives which are beneficial for businesses. The PPP law promulgated by the government encour- ages public-private-partner- ships which form an impor- tant part of Oman’s plan for sector as they contribute to the socio-economic growth. It provides multiple benefits to SMEs in order to assist them with their expansion. Aside from the funding, Omani SMEs are supported with training and mentoring which are held in association with internationally renowned institutions. The assistance and encouragement extended by the government helps economic liberalisation which encourages private sector investment in key projects. The sultanate also places a strong emphasis on its SME SMEs to realise their potential in the developing economy. The business sector was severely affected as result of the Covid-19 pandemic. The government introduced a range of incentives which aimed at economic diversi- fication and combating the economic slowdown contrib- uted primarily by the ongoing global pandemic situation. The incentives are part of u Oman’s tourism is another sector poised for further growth 1.5% Oman’s non-hydrocarbon GDP growth for 2021, according to projections by the IMF C OVER S T O RY / AREEJ MOHSIN HAIDER DA R WISHarabianbusiness.com 15 the economic diversification plans of the government and essential for leading sustain- able development. How has the business envi- ronment in Oman changed over the years? Oman has achieved remark- able progress and prosperity in every sector of the economy and has seen a steady trans- formation through develop- ment plans. This is also evident from different local and interna- tional indicators. Oman’s Vision 2040 strategy seeks to catapult the sultanate into the ranks of the world’s most developed nations. It is build- ing a productive and diversi- fied economy with innovation, infrastructure, education, development of workforce, sustaining national resources and modern legislative frame- work as its key drivers. The business environ- ment has seen rapid changes over the years. We have seen a surge in investment across all sectors. Leveraging its strategic location, Oman has invested in infrastruc- ture and has become a global logistics centre. Tourism is another sector which has expanded rapidly, with tourists and hotel estab- lishments having doubled in number over the last ten years. Considering the sultanate’s rich and diverse set of natural, historical, and cultural attractions, this sector success. I am very optimistic about Oman’s growth as the economic outlook has been improving. The economic goals set by the government look promising as we have seen a shift from dependence on energy as we have diversi- fied our economic base. Oman has distinct advan- tages which makes it an ideal investment destination. In my opinion, the sultan- ate’s stable economy is the strongest reason for any investor to go ahead with his investments. Coupled with this, its geographic location which is characterised by the most strategically placed ports in the world also opens new horizons for investors. Its friendly policies have enabled the sultanate to establish strong bilateral ties with countries around the world and integrate with the global economy. With the introduction of economic reforms combined with the implementation of the value added tax, the economic outlook is promising. I am optimistic about the business environment as it is definitely poised for further growth as Oman embarks on its Tanfeedh (government initiative plans) across multi- ple sectors. Expansion will encourage more investors in the country to invest into projects here, while exter- nal investors will also look at Oman as a viable option. Global partnerships will expand the production base of various sectors and increase the contribution of exports to the sultanate’s GDP. This will be a win-win situation as in the long-term this will lead to more jobs for people in the country and increased production across multiple sectors will make Oman self-sufficient across more areas. is poised for further growth. Oman is actively seeking foreign investment, and as such has created a business- friendly environment which has promoted investment in manufacturing, higher education, healthcare, and renewable energy and we have seen a gradual shift from hydrocarbons to a diversified economy. What are you most optimistic about in the next two decades? Oman’s story over the past five decades is one of u Mohsin Bin Hani Al Bahrani, CEO of MHD ACERE u Oman’s Vision 2040 strategy seeks to catapult the sultanate into the ranks of the world’s most developed nations q MY SON HAS DIFFERENT THOUGHTS AND IDEAS ON HOW TO EXPAND OUR PRESENCE AND I HAVE THE EXPERIENCE OF FORESIGHT” q THE SULTANATE’S STABLE ECONOMY IS THE STRONGEST REASON FOR ANY INVESTOR TO GO AHEAD WITH HIS INVESTMENTS” 3.8% The contribution of the industrial sector to Oman’s economy in 2022, according to estimates by the Economist Intelligence Unit / AREEJ MOHSIN HAIDER DA R WISH16 AB/Oman Supplement Vol. 22/17S – November 2021 FEATURE / XXXXXXXXXXXX ENTREPRENEURSHIP: A NECESSITY FOR OMANarabianbusiness.com 17 / XXXXXXX BY LAUREN HOLTMEIER Oil-dependent Oman’s economy has lagged, especially as the pandemic hit oil prices hard. With a large youth population, entrepreneurship is key to economic diversifi cation and creating jobs 18 AB/Oman Supplement Vol. 22/17S – November 2021 FEATURE / ENTREPRENE UR SHIP Small and medium-sized enterprises in Oman are on the rise as the Gulf country has made a push to provide greater financing facilities for SMEs and micro-projects. The number of SMEs operating in Oman at August’s end stood at 56,687, an increase of 24 percent compared to the amount recorded over the same period 12 months previously. This comes after Oman’s Capital Market Authority (CMA) approved licensing for crowdfunding platforms in August, the first of which is set to launch by year’s end. The move created a new u Employment generation is a key policy priority for Oman 2.5% Oman’s economic growth this year, according to estimates by the International Monetary Fund (IMF)/ ENTREPRENE UR SHIP arabianbusiness.com 19 2.4% The decline in Oman’s fi scal defi cit as a percentage of gross domestic product this year, according to IMF q THESE TYPES OF FINANCING OPTIONS WILL BE OF GREAT BENEFIT TO SMES, AS WELL AS MICRO- ENTERPRISES” u Oman has been seeking ways to diversify the economy u Oman aims to boost the private sector’s contribution to GDP financing option for SMEs in the sultanate. “These types of financ- ing options will be of great benefit to SMEs, as well as micro-enterprises,” an offi- cial from the CMA told Times of Oman. “Crowdfunding will not need guarantees, as is often the case with the banking sector.” The CMA said that the approval of crowdfunding platforms is intended to create more jobs, encour- age economic development and allow financial inclu- sion for SMEs. The official continued: “Owners of companies of this nature often face chal- lenges in securing finances, since banks often ask for guarantees, and are unwill- ing to risk committing funds to them.” The CMA’s launching and regulating of crowd- funding platforms will help to overcome what the CMA report identified as one of the key challenges facing these projects: “The bank- ing sector’s reluctance to fund such projects due to the related risks and lack of proper guarantees to convince the banks to grant funding facilities beside the impact of the global financial crisis and the Covid-19 pandemic on the banking sector and the liquidity crunch.” Oman’s oil-dependent economy has slowed down, especially as the pandemic hit oil prices hard. But ratings agency Moody’s changed the outlook on Oman’s credit rating to stable from nega- tive and affirmed its rating at Ba3. According to Moody’s, the change in outlook reflected the significant easing of pressures on government liquidity and external financing. It came as a result of the ongo- ing implementation of the Medium Term Fiscal Plan and a relative rise in oil prices since the middle of 2020, which led to a steady decline in the direct govern- ment debt burden to around 60 percent of GDP by 2024. Moody’s expects that oil prices will average above $60-a-barrel during the coming years, increas- ing the likelihood that these pressures will remain under control. The country has been seeking ways to tame its budget shortfall and diver- sify the economy as crude reserves dwindle. With a youth unem- ployment rate of nearly 50 percent and 40 percent of its population under 25 accord- ing to the World Bank, youth employment generation is a key policy priority for Oman.Next >