We don't need no edukation! Riots & multiple Arson attempts in Omani high schools

Oman's students are revolting. Oh yes, protests have broken out at schools across the Batna coast. Some schools were closed by the ROP, and there were multiple arson attacks - one successful. As the newspaper Times of Oman, Anees Al Zedjali's much admired throbbing organ of the Omani 4th Estate, put it here, the crimes were committed by "miscreants" [I love the olde worlde English the expat staff at ToO use, especially when the thesaurus comes out!]

Photo: Widespread school protests in Oman are leading to acts of Arson.

Arson in Al Khoud school
Seeb: Unidentified miscreants yesterday morning set ablaze some classrooms in an Al Khoud school, located in the wilayat of Seeb.

Sources said that the culprits set the classroom afire with the help of tyres.

This incident follows a wave of protests that has lashed some schools in some regions of Oman following the high failure rates in the examinations and discontinuation of the previous promotion policy by the Ministry of Education.

Investigations are on to nab the culprits, a spokesman from the Royal Oman Police said.

And it's great to see it being reported, again in ToO. The kids are upset that they actually have to pass exams, and are blaming the teachers. How the arson helps their cause, I don't know.


Omani Student's are demanding to pass their exams, 'or else'.

High failure rate leads to protests in schools

Muscat: Students of some schools in the Sultanate launched protests against the high rate of failure in the examinations for Grades 10 and 11, citing the abolition of the earlier promotion system for this.

Some schools reportedly also witnessed acts of arson following the protests that occurred last week.

Scores of students gathered at Moosa bin Nadeer School in Al Hail area and went on a protest in the morning protesting the high failure rate in the school compared to other Muscat schools. The students blamed “unqualified” teachers for their failure in the examinations.
...

The Majlis had a meeting about Education a couple of days ago. As with all Majlis reporting, there is zero information about their discussion, problems, goals, progress, actions, et al.

Majlis panel meets to find solutions to education snags

Majlis panel meets to find solutions to education snags
Muscat: The Education and Culture Committee of the Majlis Al Shura yesterday held its meeting under the chair of Khalid bin Hilal Al-Nabhani, head of the Committee.

During the meeting, members reviewed the suggestions sent to the committee by citizens and took appropriate decisions.

They also discussed a number of educational issues and the problems facing government and private educational institutions and sought to find solutions to overcome these issues.

Excellent. Good to see the problem is in safe hands, and that plans are in place! This does not bode well for Oman's education system. There are already huge issues with teachers allowing plagiarism and rampant cheating. The schools in general churn out poorly educated & unmotivated students. English is terrible. The cirriculum is based on repetition and rote.

But at least they can line up at the 'job seekers' office later on and get $400 a month. Or 'supervise' an Indian worker.

In the same edition, Editor in Chief Essa Al Zedjali raves about the 1 Omani who just got a patent in Spain for an energy invention (which is good news, I agree), and goes on to claim this indicates how Omani education is soaring, and heralds an intellectual renaissance in the Sultanate. [Note, I'm advised all of the Opinion pieces are actually written by the (Indian) senior Editor, and then tweaked by Essa. LOL]

...
Sheikh Hilal is a product of this Blessed Renaissance — an empowered and unfettered mind and a child of liberalism ushered by the visionary ruler, His Majesty Sultan Qaboos bin Said. Einstein said: “All of science is nothing more than refinement of everyday thinking.”

The uninterrupted run of peace and modernisation of the past 41 years of Omani Renaissance has indeed helped many brilliant Omani minds to refine their everyday thinking. Sheikh Hilal has proved the paradigm true.

A brilliant mind, hard working and competent to his core, Sheikh Hilal has proved our yet another conviction. Given the right ambience, opportunity and encouragement, Omanis too are competent enough to prove their worth in every conceivable field of human activities, especially in science and technology. Sheikh Hilal is the brightest testimony of the fact that Renaissance has been a benign movement and the country is indeed moving along the right track of modernisation.
...

Looking at the photos of the protestors, I can see they all look like the sort of bright talented hard working young minds that will be generating patents, creating world dominating businesses and being nominated for Nobel prizes.


Hey, at least we're better than Yemen.

Muscat Confidential plugged by Times of Oman, and an update on 123Orion's charity gig

Sorry folks, I've been a very busy Dragon of late, jetting around a lot and focused on earning treasure for my new employer.

So it was very nice to see Muscat Confidential mentioned in a recent Times of Oman article on Omani blogging by my favorite Omani journo, Saleh Al Shaibany (thanks for the tips S & MM).

...
However, among websites that has really caught up the interests of many surfers is muscatconfidential.blogspot.com.
The web is hosted by an individual who said on his website that he once was an expatriate working as a government consultant. The site posts controversial topics alleged to have happened in the country.
“The muscatconfidential site posts news that cannot be confirmed and it has a wide following by expatriates. However, Omanis do write to this site to express their own views,” Al Rawahi said.
...

The article nicely skirts the issue on the use of VPNs in Oman. Until a few months ago yes, there was a lot of VPN (virtual private network) use in Oman, for all the reasons Saleh mentioned (VOIP, access to USA sites that demand a USA IP location, relatively anonymous internet usage), and the ones he didn't mention (tunneling through Omantel's porn sensitive websites filter). But since then, Omantel and Nawras have upgraded the filter (thanks Siemens IT geeks!!) and blocked all VPNs as far as I could tell. If anyone has a working one, email the details?

The recent events in Egypt and Tunisia (and Iran earlier) also highlight the huge problem this new world of the internet poses for the autocratic regime. When you're used to censoring the news and public communications, restricting the power of association, issuing licenses for anything to do with civil society, listening into all telephone calls (and don't forget locking up your unmarried daughters away from potential suitors), how the hell do you control the 'net, smart phones, twitter, facebook, blogs, forums, encrypted skype and blackberrys, all powered by an instantaneous global news cycle fueled by camera phones and a gazillion citizen reporters? Hosni Mubarak is trying to figure that out right now...

I'm not convinced restricting the use of VPN in Oman is addressing the root of the problem.


In other news
The recent 123Orion charity gig raised over 500 rials [US$1250] for Dar Al Atta's "Let's Read" program. Great job Jon G & the team! Lucky reader Scarlet Pimpernel scored 2 free tickets and reported a great time was had by all.


Photo: 123Orion rocking out at the Royal Flight club last week. (courtesy of 123Orion guitarist Jon G)

Love the bubble machine.

Times of Oman article on Abused construction workers: Well done Saleh

In a refreshingly honest article a couple of days ago, Times of Oman's reporter Saleh Al Shaibany wrote about the continued abuse of Oman's construction labourers. See here.
Post-post addendum: And great to see Saleh now employed by a local paper, hopefully on a respectable stipend. He is def. the best Omani English reporter I've seen. We need a LOT more Omani reporters (and dare I hope, journalists too) in his vein.

The issues are captured, along with actual interviews with a couple of construction supervisors (although I'm not so sure naming them was a good idea). They point to the lax Government inforcement and inaction by workers' Embassies, as well as the unscrupulous and callous actions of local Omani building contractors.


Photo: Labourers in hazardous conditions are a common site across Oman. (from ILO, photographer P. Deloche


However, I would also blame the people employing these contractors. People, when you are having a new villa built, it's up to you to ensure the workers are well treated. Don't just shrug your shoulders and put it on the contractor. YOU.

Please step up and act - Insist the contractor adhere to the law. If necessary, call the Government officials and complain. Take responsibility. Let's see those oft-cited Omani cultural strengths of fairness to all, kindness, and moral values applied in your own back yard. These poor people are working for you.

If there was ever a case for an NGO to act, this would be a good one. It would be great to see more proactive stuff from the International Labor Organisation too: how about sponsoring some law suits for wrongful death and injury?

I also wish these workers would be allowed to properly unionise - they can't do that under current Omani law.

And well done ToO and Saleh. More please.

Contractors ignore labour rights

Saleh Al-Shaibany
01 December 2010 09:59:55 Oman Time

MUSCAT: Construction labourers are still working and living in appalling conditions across the country as contractors ignore their basic rights while the government inspectors continue to turn a blind eye.

Little has changed in the past 40 years for labourers as most construction site workers still have to live in wooden shacks braving both the smouldering heat during the summers and the winter chill.

The hygiene conditions of most of these sites are non-existent with toilet facilities being just a hole in the ground, a few metres away (in most cases) from the kitchen and the living quarters. Construction debris is strewn all over the place, ranging from sharp brick fragments to rusting steel. Common complaints of the labourers are food poisoning, heat stroke, injuries and fall from scaffoldings.

After hard physical labour and working in hazardous conditions, these workers are paid a pittance. The monthly salary ranges from just RO80 to RO120 with free medical facilities but they have to fork out money from their pockets to buy their own food. “Nobody cares about their welfare, not even their embassies. All of them come from a poor background arriving here to earn money so they could look after their families back home,” Hussein Al Lawati, general manager of Capital Manpower Services, said.
Construction workers in Oman are mostly south Asians, including those who work for companies building bridges and road networks. According to the latest Manpower Ministry statistics, there are 900,400 foreign workers in the private sector in Oman, out of which more than a third work in the construction sector.

Lawati said that the number of labourers is a third of all foreign workers and the figure is increasing every year due to the construction boom fuelled by higher government spending. According to official data, there were 306,150 construction workers in the country by the end of August 2010, a rise of eight per cent compared to August last year.

With the effect of the global financial crisis diminishing, the government is expected to announce a record spending budget of $20 billion for next year’s expenditure buoyed by more oil exports and rising oil prices in the last two years. “The boom is supported by cheap labour and yet, we don’t look after the people who toil all day to help the progress of the country. The government must acknowledge it and make sure that construction workers are given their rights with inspectors regularly visiting sites,” Lawati added.

Prakash Menon, a supervisor of a construction site in Al Khodh, said that he lost a labourer last summer from a fall and another worker broke a leg after a cement mixing machine rolled over. “The summer heat is a big problem, apart from lack of safety equipment like a harness to secure workers climbing the scaffolds. Contractors are also reluctant to buy new equipment even though major accidents occur,” Menon, said.
Ram Kumar, another site supervisor, said that his workers regularly end up in medical clinics from heat exhaustion, food poisoning and breathing problems. The wooden shacks, Kumar pointed out, are a major cause of fire since labourers use them as kitchens as well as sleeping accommodation.

He pointed out at the slimy water accumulated at a corner of his site overflowing to the road. “It is toilet water and the contractor refuses to pay for the weekly removal of the waste water because he wants to save money,” Menon, said.

Lawati said it was about making maximum profit from the construction contracts where contractors cut corners and deny basic rights to their workers. “The biggest culprits are contractors of private villas. The only way it would work is for both the embassies and the government to work together to come up with a law that would punish offending contractors,” Lawati, said.

Interview with Y Magazine, Facebook Fan Page, and the ROP up the ante

I was flattered to be on the cover of this week's Y Magazine, with an interview about blogging and the impact of the internet on the professional media. You can find the issue on-line here.

Photo: Y Magazine cover this week. Twice in 2 months Muscat Confidential has graced the pages of Oman's print media. Note to self: Must up the ad rates...

The full interview is at the end of this post, and it discusses a lot of things that didn't end up in the article.

Big thanks to Kiran and Y magazine for the opportunity for Muscat Confidential to reach a new audience. Must admit, I sent my dear ol' Mum an e-copy. [Dragon's ARE vain, after all].


A Reminder:
This is your last chance to register for the Hi FM free ticket to awesome comedy draw. It will be drawn at midnight tomorrow! Keep watching for the even harder to get Sir Tom Jones tickets coming soon... [big thanks to Hi FM and Darren Shortt]


Meanwhile, speaking of Social Media...
I know many of you are on Facebook, but I was surprised to see some enterprising Omani fans had created a Facebook Fan Page for Muscat Confidential.

Don't be mis-lead by their flagrant ripping of my avatar, it's not me running the site, but they seem to be doing a good job. You can easily find it by searching Facebook for 'Muscat Confidential'. It lets you see the posts, nicely summarised for important points, and participate in the occasional discussion.

It's also beyond the reach of Omantel's evil net filters, so even if you're on a local dial up you can still see what's been posted if I get blocked yet again... I'll try and bring you an interview with the founders next month.


And in a sign I hope, of progress against the huge rise in crime, Bad Boys, Bad Boys, What you gonna do?
Hats off to the ROP for actually publishing the initials and mug-shots of 5 local Omani youths who were arrested for smashing the windows of 15 cars in Seeb to steal ashtray change.

This is real progress.

If they are found guilty, I hope they make the spoiled little bastards do community service for 3 months, 12 hrs a day, cleaning streets in orange cover-alls all summer with "I'm a stupid useless Twat" stenciled on the outfit. Only after having spent a couple of days entertaining 'Big Abdul' in the local prison, obviously. Don't pick up the soap boys!

Seriously. They haven't even been convicted yet. And if you know them (hey, yes you Ahmed!), you'd be able to recognise them despite the wonderfully old school little black rectangles.

Excellent. A huge thumbs up to the ROP for issuing the press release and for being up front that they are Omani. And well done to Muscat Daily for being on the case and printing it first. (I am noticing improvement...)

More please ROP. When people are convicted, it should NOT be illegal to publish their full names, photos (without the rectangles), the crime and their sentence. Let's start to incentivise parents to take a little more control of their kids.

And Y Magazine: how about an article on what its like inside Oman's prisons? It might encourage these wastrels to stop being such anti-social dickheads...


Finally, as promised:
Interview between Undercover Dragon and Y Magazine.

Y Magazine: Why do you blog, particularly about such controversial subjects that could ultimately land you in trouble?

Undercover Dragon: There are many reasons I blog. Its a hobby, for example, and I'm not a big fan of TV. So I guess it helps to keep me off the streets and out of the health clubs. But primarily I blog because I think the cultural tendency in Oman to avoid bad news, or to not discuss or even acknowledge in public many things that go on in the country, will prove to be a limiting factor to the nation's economic and cultural growth.

That many of the topics are 'controversial' is because these are things not being talked about in the public domain, or are even things many people would prefer didn't exist. A lot a 'good news' stories I could write about are already out there, and so the blog does therefore inherit a 'negative bias'. In order to counter this general negativity I try to use a tabloid style and to use sarcastic or ironic humour, as otherwise I doubt as many people would want to read the stuff I publish. This approach is deliberate.

I also include controversial topics to experiment with where the 'edge' actually is, because the location of this 'boundary' between what is culturally and legally accepted is not well known. Again, it's deliberate, to push the boundaries a little and see what happens.


Y: Were you involved in blogging or politics before you left your home country?

UD: No, not at all. But I've always been interested in politics and economics. Being in the Middle East stimulated my thinking on the issues of how Government policies get decided and assessed, and especially the observation that the core principals of democracy are far better served through a free media and public debate than simply the act of 'voting'. This continues to be a theme.


Y: Was there any particular event which spurred you on to write your first blog and begin writing?

UD:I was shown a few local blogs at the time and started lurking. But when I realised that there were so many stories about life in Muscat that were still not getting into the public domain - at least not in English - I realised I could stop complaining and start my own blog. So I did!

There was - and is - so much corruption and incompetence in Omani society that seemed to be being actively suppressed by the very people who needed to be exposed.


Y: In your opinion, how do the two worlds of professional print media and ‘citizen journalism’ relate? Do you agree that there is the threat that print media could ultimately suffer at the hand of good quality unofficial e-media and if so, how can this be reconciled?

UD:The growth of technology - internet, camera phones, wifi, twitter etc - have created a vast amount of information that is generally publicly available, in real time. The professional print media are exploiting that, and have the advantage of resources, revenue and a dedicated audience. I don't think there is a threat to professionalism in media however. No-one has the time to review 1,000,000 blogs and twitter feeds, so people to collect and turn this data stream into information that is tailored to an audience will be needed even more than before.

Printed media may fade with time as the stone tablet did, and develop into a Huffington Post type outfit, especially once the technology enables this and there is a better funding/revenue model. The real competition will perhaps come from the organic news sharing network that SMS and twitter has become, so that news and stories become self organised.

The lack of reliability and professionalism remain an issue with Citizen Journalism, and society still requires a filter for this news as well as resources to execute real investigative journalism. But I predict so-called newspapers, printed on paper, that simply reprint stories from the wire services will be a thing of the past in future.


Y: How reliable are blogs? Is there a danger that misconstrued information can be spread or inexperienced bloggers are in danger of releasing information without it being sufficiently fact-checked? The results of this could ultimately mean further restrictions on professional media, so how do you ensure your information is accurate?

UD:Bogs are usually opinions, observations and rumours. People should doubt these as they appear on some internet website as much as they would the same thing in real life. When the blog is anonymous this caution is even more applicable. Fact checking is essential but can be difficult - although there again the net is very good at self correcting, with people pointing out errors or alternate points of view or conflicting facts. I don't think it will have a big impact on professional media except to make them subject to the same correcting mechanisms.

I try to double check stories via independent sources. I haven't been doing the blog for long, but my list of reliable and confidential sources keeps increasing, so this fact checking gets easier. The main motivation for this is to build and maintain the brand reputation of Muscat Confidential. If I kept publishing things that aren't true, pretty soon people would simply stop reading.

The law in Oman still acts as a significant blocker to a lot of stories I would like to publish. While I'm anonymous to you and my readers, I am under no illusions when it comes to the real professionals, who I know do know where to find me if required. So I continually make huge efforts to remain within both the letter and the spirit of the law in Oman. Muscat Confidential is legal, (at least according to my very well qualified legal advisors) and will remain so. I think the fact that I have not been blocked (except for a couple of times over trivial technicalities) demonstrates that Muscat Confidential has the support of the right people.


Y: Why do you blog anonymously?

UD:First, I do have a professional life, and the blog would probably impact that, which I don't want.

Second, the legislation for media and publishing in Oman is very poorly defined (in law) as to what is legal and what is not. As it stands now, it would be easy to publish something that is arguably illegal, and I don't want the hassle and expense of defending myself in the courts against either the Government or an individual, especially as the penalties include significant periods in jail. There have been so few cases tried in the courts that there is also no legal precedent to help in this regard (and what precious little there is is not encouraging).

Lastly, I'm saying things on the blog that are, to a few people, threatening and offensive. Unfortunately, there are some of these people who might decide to act on their opinions and do me or my family harm. I have received death threats from people who seem deranged and capable of violence, and I'd rather not have to deal with that, as its not like I'm getting paid to do this, and it would allow a tiny minority of embittered nutcases to deny people something they clearly enjoy and appreciate.


Y: Why do you believe you are such a successful blogger?

UD:What constitutes "a successful blogger"? All I know is that I'm getting growing readership numbers and lots of supportive emails. This is probably because they want to read what I write, at least more often than not, and is probably because there is not a lot of competition either (at least in English).


Y: What threats have you faced from blogging and have there been any particular moments when you thought about giving up blogging?

UD:I discussed the threats earlier. And I'm sure there are a few people of some influence would would make efforts to see me in court or to at least have the blog at least blocked/banned in Oman (in fact, I know several of them have made efforts to use 'wasta' to have me banned).

I have thought about stopping blogging a few times, either when I'm depressed by evidence that things are not really changing in Oman, or by the idea that I might be risking my family's physical or economic security. And sometimes because it can seem like a lot of work, as to sustain a blog for more than a few months takes a certain amount of dedication to just keep publishing regular stories that people might be interested in!


Y: Where do you get your leads? Would you send information of such leads to mainstream media publications if it was a significant story which needed breaking?

UD:See The great Times Of Oman Story. Yes, I do send leads to mainstream media, but not very often to those in Oman, as if I can't publish it, they certainly can't/won't.


Y: You are very critical of the media in this country, but do you not believe that the parameters change once you use your real name in print journalism?

UD:The owners of the media in Oman seem focused on making short-term profits by pandering to special interests and the Government. They treat with contempt the greater goals of protecting and addressing the public good and their traditional role in influencing politics and society that are both common elsewhere and were the actual drivers of their origin. This is partially the publics' own fault, in that subscription is no longer how such media are funded, and most advertising is controlled by the business interests and Government.

The anonymous argument is a cop-out. If there was a story of obvious public interest it could be published under the name of the paper rather than an individual with a byline. The editors could stand up for themselves, as they seem to be able to do in much more draconian societies such as Egypt, Iran, Russia or China. This massive failure and intellectual poverty of the mainstream Omani media is probably because (1) the papers are generally owned and controlled by people aligned with those same special interests and (2)because the staff are predominantly expats who are both vulnerable to the law, here for money and lifestyle, and do not have the same long term interest in improving Omani society as locals would have.


Y: When there are restrictions to the freedom of press how can bloggers help rectify this situation?

UD:Bloggers are allowing the printed media to print more daring stories because they are already being openly discussed. Plus, when a journalist is thrown in jail it will be the internet media and bloggers/forums that get them out!

Times of Oman Interview with Undercover Dragon.

I few days ago I was contacted by a local reporter working for Times of Oman, along with many other English Bloggers in or about the Sultanate, for a story on blogging in Oman.

Picture: The Dragon does an interview. (From The Paperbag Princess).

Here is the unedited interview in full. The interview was held via email on 8th Feb, 2010. I'm publishing this here hopefully the day before the story is printed in Times of Oman. While I'm not yet convinced there will be any mention of Muscat Confidential in the story, I am thinking that if I am mentioned it will be in pretty derogatory terms... So I wanted to put the interview on public record. Maybe I'm just getting paranoid.

I'm very pleased to have been given the opportunity to answer some questions, many of which I hadn't considered before.

It wasn't something I'd thought of doing, but in hindsight I'm glad I did. I tried to answer the questions as much as I could. It is bit schizoid being the author of the Dragon, I must admit. I'm sure most of you realise, especially those who blog, that Mr Dragon is as much a character as he is myself.

Hope you enjoy. And well done Times of Oman*.

Undercover Dragon,
Muscat 2010.


>>>>
>>>> How is it that you have your finger on the pulse of much that is Oman,
>>>> all the time?
>>>>
I probably only scratch the surface of what's going on with what I can
publish. But there have been a few stories that people are interested
in that have never been picked up by the print media or other on-line
news suppliers. Actually, a lot of what I write about is already
somewhere in the public domain, and its just connecting some dots or
making some observations.

>>>>
>>>> Are you not afraid your cover will be blown?
>>>>
While it would not be good to be public with my identity, as I'd
prefer to keep it separate from my professional and personal life, it
doesn't keep me awake at night! More importantly, it would probably
make the blog far less entertaining. And it's very important to be
entertaining. No-one wants to just read stale news items.


>>>>
>>>> (Dare I ask this?) How do you cover your web footprint?
>>>>
Its not that difficult to protect ones internet footprint from casual
observers, or to a certain extent, even from the internet service
provider. But unless one goes to extraordinary lengths there is no way
to protect yourself from the professionals. Occasional lapses in
Omantel's internet censorship software indicate that Omantel is
tracking the TCP/IP numbers that access Muscat Confidential within
Oman. The website itself is hosted in the USA. In fact, how do you
really know I'm in Oman at all?

>>>>
>>>> Does anyone know who you are?
>>>>
A few people do. But there are not very many, and they are very, very
close personal friends who know how important maintaining that
anonymity is. You don't have to know who I am to know that Undercover
Dragon exists or is real. That's one of the fascinating things about
the internet.


>>>>
>>>> Have you ever gotten into any kind of trouble with the authorities?
>>>>
No, not really. Some of my posts have annoyed some individuals within
the Government, but being annoying is not illegal. If the real
authorities thought the blog was illegal it would be trivial to block
access to the site, and they haven't done so. Oman's internet and
freedom of speech laws are potentially draconian as they stand, but in
practice they are not as bad as a lot of people think. The problem is
that the laws are so vague and poorly drafted they conceptually
include almost any critique of anyone connected to the Government,
even when the information is in the public domain already and the
statements are accepted as true. The punishments include some serious
jail time, and have not really been tested in the courts at all, so
no-one knows what the laws really mean or where the legal boundaries
are. Just look at the recent court cases involving the internet forums
and the sudden deportations of journalists.


>>>>
>>>> What is it that you are trying to achieve with your blog?
>>>>
First, I think Oman is in a period of transition
from an economy based on exporting oil and gas to, well, whatever the
future holds. Its obvious that the present growth rate in the
population far exceeds the growth in net foreign income from oil and
gas (and the export industries based on gas, like aluminum and
petrochemicals), while at the same time we continue to import almost
everything the country needs to live, including much of our food,
technology, labour and skills. People have become accustomed to a
highly paternalistic state providing everything for them, and expect
all the nice things a modern lifestyle can provide, without earning it
on their own merits. Its unsustainable.

 I think a key part of that transition is having a society much more
open to criticism, to improve the Government and the performance of
the economic agents within the country. I'm personally convinced that
His Majesty has long foreseen a time when Oman's Government will be
able to be based on a model closer to a constitutional Monarchy,
perhaps more similar to a Northern European model, with an elected
representative chamber that exercises real control over the executive
branches of Government. But democracy is not primarily about votes.
This is where the West has made a huge mistake. Free speech, a free
press, intellectual freedom, freedom of information and freedom of
association are far, far more important than votes to ensuring a
Government has the support of the people it governs. It's almost
irrelevant if people actually cast formal ballots. Just look at Iran.
People need to be able to discuss openly how the Government's money is
being spent, the quality of their schools and healthcare, abuse of
power, and how their various Government Ministers are performing. I'd
like to think the blog is a very small part of the beginning of that
in Oman.

As you work for Times of Oman:
I presume you're curious about my occasional criticism of Times Of Oman Editorial by Essa Al Zedjali. I often make comments about the
Times of Oman editorials because I think the newspapers here could
really help drive this transition, instead of blindly supporting the
idea that everything the Government does is perfect and couldn't be
improved; its pure propaganda. This therefore supports a culture where
power and corruption win over true principals of equal rights, and
treats the people like idiots. That waste offends me deeply. I also
think that many of the comments made about Israel and 'Jews' are both
illegal under Omani law and simply serve to make the solution to the
problem of Palestine much more difficult to attain, namely a 2 state
solution based on the 1967 borders (with adjustments of equal areas to
balance realities). It's part of the attempt to distract people in
Oman from what's wrong here by getting them to think about Israel.  I
think the opportunity to really lead opinion, given the tremendous
reach and resources the printed press has in Oman, is being wasted in
the pursuit of pontificating vanity, pandering to ugly prejudices and
ignorance, and trying to obtain wasta while covering up ineptitude. In
addition, these opinions have often been picked up elsewhere in the
world media and sometimes make Oman, as a nation, look as ignorant
and, to be frank, bat shit crazy as somewhere like Yemen or Pakistan.
Unfortunately, so much of the material published by Times of Oman, and
most of the other media outlets, is so ironically entertainingly
stupid and asinine that it would be more difficult to blog if it were
otherwise! I know I'm joined by many true Omani intellectuals in my
derision of these aspects of the Omani press and TV.

>>>>
>>>> How long have you been in Oman?
>>>>
Quite some time. Lets just say, many years.

>>>>
>>>> How do you cultivate your sources?
>>>>
It's taken time. By sticking with the blog and growing its reputation,
increasingly people email me directly with various stories and
information. I also hear a lot from people who know things and talk
about it in public, when they perhaps shouldn't. Most of it I don't
publish, because I like to double or even triple check what I blog,
and to do that in many situations is almost impossible without
compromising either my sources or myself. I also take great efforts to
protect my sources' anonymity, so one develops a relationship based on
mutual trust and respect. There are some stories I would love to be
able to post, but to do so from within Oman would be illegal under the
censorship laws here, so I don't. The internet is also a wonderful
source of free information if you take the time to look, and do some
research.

>>>>
>>>> Have you seen any tangible results of all that you critique, discuss and
>>>> put forth for debate on your blog?
>>>>
Thats debatable I guess. I'd like to think that part of the reason we
are seeing slightly more bravery in the printed media here over the
past 18 months or so, especially led by Apex publishing and Muscat
Daily, is due to the fact of what I blog. Muscat Confidential has been
showing, perhaps, that things are not as bad as publishers or
journalists originally thought about the law. It's early days though.
Omani culture, nor the authorities in general, are not even ready to
see what is demonstrably true being published, let alone opinion that
is offensive to some people. In the USA, for example, a standard and
total defense against libel is that what was published is true. That
is not the case in Omani law, nor is it accepted by most Omanis.
Several of my posts have been picked up in the Arabic forums which are
far more popular, and have triggered discussion on topics such as the
recent story I published on the abysmal quality of Oman's higher
education.

>>>>
>>>> How do you relate to Omanis that you deal with on a regular basis? I
>>>> mean to ask, do you see the attitudes of this country or the projected
>>>> attitudes, reflected in colleagues, friends, acquaintances that are Omani?
>>>>
I don't see such stereotypes as being very relevant or useful. There's
a range in all societies. What counts is behaviour and intellectual
integrity, not your passport.


>>>>
>>>> Why hasn't anyone found you out yet?
>>>>
Probably because I don't meet with people, even though I've often been
asked. And I'm careful to ensure that what I write is generally
unsourcable to a unique individual. I'm sure that if I was a threat to
Omani security (which I am not) or posting things that are seriously
illegal (which I don't), that Internal Security could find me in
moments! Fortunately, Internal Security are both very good at what
they do, and have more important things to do than worry about
bloggers that occasionally offend self-righteous and incompetent civil
servants, pseudo-intellectual editors, rapacious property developers
or unemployed and woefully ignorant University students. Thank
goodness.

>>>>
>>>> What do you think of the Omani bloggers and their work on the
>>>> blogosphere, especially the women?
>>>>
Perhaps the only reason Oman has made the progress it has is its
hardworking women, and Oman has fortunately had a relatively
progressive attitude to women in society, especially compared to the
rest of the region. I think the internet has been a tremendous boost
to empowering women in Oman and the region. All strength to them.
Plus, most of the interesting Omani blogs are in Arabic, which I don't
read very well.


>>>>
>>>> Has blogging made you more aware and seeking of information? How has
>>>> your blog and people's response to it affected your personality?
>>>>
No, not really. While I'm always looking for interesting stories, I
still have to hold down a job and live a normal life. It's just a
blog, lets not get too carried away. But its always nice when it comes
up in conversation. There is a certain self-centered vanity to
blogging that's hard to deny.

>>>>
>>>> I know it sounds redundant, but a lot of what you say in your blog could
>>>> get you into trouble, despite you disclaimer. People will misinterpret
>>>> anything, you will agree. So how have you stayed out of trouble for this
>>>> long?
>>>>
I've stayed out of trouble because I take pains to stay within the
law, and to remain anonymous. That I haven't been blocked despite
numerous complaints may indicate that some people at a sufficiently
high level within the Government support the concept of Muscat
Confidential and agree that Oman needs a greater degree of discussion.
Or they just haven't noticed and/or don't care, because nothing I do
is in any way a threat to the status quo and I don't blog in Arabic.
And people have a very short attention span.


>>>>
>>>> Your analyses is usually very incisive and pretty harsh on the whole,
>>>> about various topics. What do you hope to achieve with taking that kind of a
>>>> stance on these things?
>>>>
If people want to get smoke blown up their ass, and live in a
delusional world populated by Unicorns that crap butterflies and spend
all day patting themselves on the back, they already can get plenty of
that from the mainstream Omani media. Critique and satire is the
essence of what the blog is about. It's much more entertaining that
way, and people like to be amused. If the blog was boring and
happy-clappy, no one would read it, and then there wouldn't be much
point, would there?


>>>>
>>>> Will you tell me where your sources are? And how you gain their trust?
>>>>
Oh yes. I get a lot of emails from .... I'm kidding. Of course not.
But I suspect some of them are real life journalists who come across
things they can't print; or ordinary people who don't like something
but can't tell anyone because they would loose their job. And I have a
lot of friends in the various Ministries who tell me things.  A lot.
The trust comes from being accurate, or saying things that are true
and interesting.


>>>>
>>>> Thank you for the interview.
>>>>

Thank you for the opportunity, and for even trying to do this story. I am curious to see how it turns out. Keep up the effort.

* I know. Even I'm having difficulty actually seeing that phrase in print on MC...

Undercover Dragon

Spin by ONA, and a telling off for Essa!

Regular readers of the scintillating Times of Oman were treated to a special mid-week 'Viewpoint' OpEd piece from Chief Editor Essa Al Zedjali yesterday (Essa normally fills the front page with his thoughts on a Sunday). Earlier this week, indeed, Essa had expressed concern that the Omani Ministry of Health wouldn't be able to handle the costs and emergency care requirements of H1N1.

On reading his new piece, it seems the next day he was called up the Minister and told in no uncertain terms that everything totally under control and to stop criticising the Government. LOL.

Laudable govt efforts to reassure citizens
Essa bin Mohammed Al Zedjali
Wednesday, September 09, 2009 12:09:34 AM Oman Time

IN my Viewpoint column titled “Combating H1N1 requires huge funding” published last Sunday, I said that the “capabilities of the Ministry of Health for making available efficient treatment and extending all types of health facilities to citizens as well as residents to help them combat the disease effectively or extirpate it altogether do not seem sufficient as it requires huge funding for the medications, especially the vaccines and the establishment of new laboratories”.

...

In fact, I was glad to have a telephone conversation with Dr Ali bin Mohammed bin Moosa, minister of health, on Monday morning, during which I enquired as to how we source additional funds for combating the H1N1 pandemic. The minister replied reassuringly that the government of His Majesty the Sultan has, through the Ministry of Finance, made available whatever additional finance the ministry needs ....

In other news:
A laughable headline in this morning's Oman Observer, as all the local papers struggled to find the good news spin to describe Oman's performance in the World Bank Ease of doing business ranking report.

Bottom line facts:
Oman was ranked 65th out of 183 countries for overall ease of doing business, down 3 places from last year when we were 62nd.

We ranked 7th in the MENA region, up 1 place, but still worst of all the GCC countries.

More work to be done chaps.

Sultanate ranked top on Doing Business 2010: report
WASHINGTON — The Sultanate was ranked number six on the ‘Doing Business Index Report for 2010 among the Middle Eastern and North African countries.’ The report was published by the World Bank (WB) yesterday in collaboration with the International Financing Institution on its website.
According to the ranking which covered 183 countries from April 2008 to June 2009, the Sultanate was ranked sixty-five. It was ranked second on the Employing Workers’ and the third on Registering Property Index and the fourth on Paying Taxes Indices at the Middle East and North African countries.

The report ranked the Sultanate 39 as a High Income country out of 47 countries included on the list and ranked the 6th on the Middle East and North African countries level. Each country is ranked under ten indices, such as, employing workers, processing of work permits, registering property, protecting investors, paying taxes and inter-border trade.

Despite the many challenges, in 2008/2009 more governments implemented regulatory reforms aimed at making it easier to do business than in any year since 2004, when Doing Business started to track reforms through its indicators. Doing Business recorded 287 such reforms in 131 economies between June 2008 and May 2009, 20 per cent more than in the year before. — ONA

Debate on Essa Al Zedjali's Times of Oman editorial on Jews continues

The debate is continuing on the recent post referring to our local Hitler sympathist and holocaust apologist, Essa Al Zedjali,




and his front-page published observations and opinions on the on-going conflict in Gaza, religion, culture, race and ... err... Jews and genocide.

What do you think? Tell us at Muscat Confidential Comments.

I wonder if this editorial made the international media?

Times of Oman editor Essa Al Zedjali says Hitler justified in his actions against the Jews

I figured Essa Al Zedjali, Editor in Chief of Times of Oman, would launch an opinion piece raging against Israel today, but this time he's really out-done himself.

He basically says the actions of the Nazi Party and Hitler against the Jews were justified, excusing the mass murder of millions of civilians. This gem is proceeded by a summary that could be Cliff notes for the infamous forgery The Protocols of the Elders of Zion.

In fact, it's so 'out there' that it may well be illegal under Oman's famously pro-free press laws...

I would say its covered under several clear injunctions:
1/ that newspapers not publish anything that is politically, culturally, or sexually offensive;
2/ not to publish anything that ... creates hatred toward ... any ethnicity or religion;
3/ not to publish anything that ... promotes religious extremism;
4/ not to publish anything that ... insults other states.

It's perhaps the most disgusting, bigoted, conspiracy theory crap ever to grace the front page of an Omani newspaper (no, really, these days he modestly puts his weekly opinion piece on the front page, above the fold). Its quite unbelievable.

It would seem Mr Al Zedjali is now acting as a defacto-national spokesman for the wacko Iranian President's point of view of such things. Great!

Viewpoint this week

How Israel became a terrorist state
Essa bin Mohammed Al Zedjali
Sunday, January 04, 2009 12:37:52 AM Oman Time

...
It is illustrative to browse through the relevant pages of history to know the real history of the Jews in Germany. You would then come to know why Hitler had taken harsh measures against them. The entire economy of Germany, including banks, publishing houses, jewellery stores, light and heavy industries and almost all economic organisations of consequence, was under the total control of the Jews.

They muddied every aspect of the economy by perpetrating fraud after fraud on common people. This unprepossessing situation annoyed the German citizens no end and impelled Hitler to punish the Jews for their bad deeds.

He then goes on to say how the press in the USA are totally controlled by 'The Jews'...

Viewpoint (cont.)

...The United States today finds itself in the same predicament as Germany back then. Now in the US, the Jews wield enormous control over all important decisions, whether they relate to politics, economy or media. No American citizen is free today to utter a single word about international or even national issues. This is the reason the American views on various issues being relayed to the world through the media are in fact the views of the Jews.
...

Perhaps his reading hasn't covered such US publications as the controversial book published in 2007 by two US academics, John Mearsheimer of the University of Chicago and Stephen Walt of Harvard University,'The Israel Lobby and US Foreign Policy'. See the wiki link for an extensive example of freedom of debate in action in the USA, even over a topic as supposedly controlled as the role of the Jewish lobby in the USA.

In fact, in my opinion the best place to get top flight intellectual criticism of the USA is ... from within the USA.

It's ironic that Essa, editor of a newspaper in a country where the publication of almost anything - from photos of traffic accidents to any criticism of a Government Minister - is illegal, has the gall to accuse the USA of not having a free press.

A great Omani intellectual? LMAOFOFL.

Oman, you deserve so much better than this drivel. By publishing such idiocy, he helps make real and deserved criticism of the bombing of Gaza by Israel seem synonymous with antisemitism. This is of great assistance to those who do accuse any critique of Israel as being racist.

Meanwhile, Israel has commenced its invasion of Gaza using tanks and troops. Its going to get pretty messy.

Omani papers continue to print any PR crap they are sent

MSM trading flat, everyone off for the Eid holidays, yawn... Stinking Red tide still everywhere (more than 3 weeks now) from Mussandam to Sur.

But, a piece printed in the Times of Oman today shows how the press here will print any old crap sent to them as a PR piece. It's essentially an advertorial filled with total bullshit, pumping some dodgy minor UAE real estate developer 'Sweet Homes', who are trying to sell to the Omani market a planned development called Ajman Uptown in the middle of no-where in Ajman, UAE. You can compare the total PR drivel and hype, mixed with out-dated non-sequitors on the Oman economy, below with comments made over the past few days from people actually trapped in the ‘Ajman Uptown’ development already...

Basic story: Sweet Homes apparently advertise a deal based on a 10% deposit, regular payments until 50% paid, followed by 25% on completion and a further 25% after that. It seems Sweet Homes asks for post-dated cheques from 'investors' who purchase, and then proceed to cash them, because the contract is in reality based on a pre-defined project time schedule and is not related to actual physical construction milestones, simply against a promise to finalise contruction. And all they've done so far at Ajman Uptown is level and compact the land, even though prepayments on some previously sold units are already at 40%.

Here's what it looks like in the brochure (I do love the way the artists foresee the current barren desert miraculously turning into a tropical lush jungle during the coming few years)



and here's what it looked like a few days ago.


Its rather sad. Reading a lot of the comments, many of these development companies have taken large amounts of money from the life savings and personal borrowings of Non-Resident Expats who believed they could buy their dream and secure a UAE residence visa as well. And in the specific case of Ajman Uptown, real construction has still not even started. These so-called developers can take lots of money up front, proceed to pay themselves a fortune in salaries, dubious fees, expenses and generally live the good life, all with no need to progress actual construction according to promises at the time of sale; and in the end the only losers will be those who have paid good money for a patch of sand and a promise.

So Muscat, be very wary. As the UAE real estate bubble springs more leaks and the river of borrowed cash dries up, these UAE guys will be doing a lot to try and pull other GCC investors into their sinking mire of debt, with tactics of aggressive hard sell time-share style, performed by some very talented professional sales people chasing big commissions, with contracts that don't align with verbal assurances, and of course pre-payments. Assurances based upon escrow accounts, contractual penalties, etc, don't seem to be worth anything. Resist the tales of discounts, guaranteed rental income, penalties for non-completion, easy payment schedules, etc etc. Once they have your money up front, they have you by the short and curly's.

And when you see the hundreds and hundreds of multi-tower skyscrapers being built or planned right now, its clear (to me at least) that the best strategy, if for some bizarre reason you do want a property in the UAE, is to wait and pick them up post-completion at much cheaper prices than now, with a standard mortgage from a real bank.

Meanwhile, expect more and more media bullshit about how everything is totally fine and there has never been a better time to buy than right now.

STOP Press Oman Developments: A source tells me the decision was made on Wednesday to continue the Salaam Yeti development in Oman, BTW. But I'll be curious if this will be predicated on the off-plan sales business funding model, which I think is now effectively bankrupt.

From the Times of Oman's Irresponsible PR dept:

Sweet Homes generates large investor interest for its Dh3b ‘Ajman Uptown’ project in Oman

Times
Friday, December 05, 2008 11:47:25 PM Oman Time
MUSCAT — Sweet Homes, a leading UAE-based developer and multi-service provider to the real estate sector, has announced that it has generated huge investor interest in Oman for its Dh3 billion ‘Ajman Uptown’ project following the completion of roadshow organised in Oman.

The developer has a state-of-the-art sales office in Muscat and has attributed the success to growing interest from Omani investors towards villas and townhouse communities.

Sweet Homes had previously opened its offices in Oman to market ‘Ajman Uptown’, a community development that is set to offer a total of 1,504 G+2 villas and townhouses and 7 G+4 buildings spread over 4 million square feet of land in Ajman, UAE.

Recent studies show that real estate investments in Oman totalled $4.2 billion in 2007, up from the $0.75 million figure posted in 2005, and this is expected to further consolidate and reach $20.8 billion by 2010.

As part of a programme to reduce the oil sector’s contribution to GDP to nine per cent by 2020, Oman has been actively pursuing a development plan that focuses on industrialisation, privatisation and diversification, particularly in high-potential investment platforms such as real estate developments.

In addition, investors are also actively looking at investment opportunities in the UAE real estate market, with many having set their eyes on ‘Ajman Uptown’, which offers the benefits of community living within the commercial and residential towers, hotel and hotel apartment complex, and villas and townhouses comprising the development project.

“The growing interest for ‘Ajman Uptown’ shows that our intensified marketing campaigns in Oman are paying off. With a growing number of Omani players looking to invest in residential communities outside of Oman, we are confident that ‘Ajman Uptown’, which offers 8 different types of two, three and four-bedroom townhouses and exclusively designed five-bedroom VIP villas, will be met with overwhelming response. Our project has generated positive ROI’s for our investors and we’re aiming to do the same with investors in Oman,” said Fahad Sattar Dero, CEO, Sweet Homes Group.

The opening of Sweet Homes’ Oman operations coincides with the country’s growing boom in economic growth.

In 2007, Oman’s GDP posted a 12.9 per cent growth attained through a notable rise in non-oil activities and an 18.3 per cent increase in non-petroleum activities.

Despite the fact that its real estate sector is considered to be in its infancy and only posts 3.8 per cent of Oman’s GDP, developer’s such as Sweet Homes are strategically positioning themselves in a sector that is forecasted to grow exponentially in the coming years.

“We are definitely expecting to generate more market response for our projects from these intensified campaigns as there is a huge pool of potential investors and property buyers who are very interested in our unique real estate offerings.

“Further, the success of our expansion initiatives in Oman and also in Qatar have further emboldened us to reach out to more areas in the region, providing international customers an exclusive and convenient platform to facilitate the acquisition of their dream properties and real estate investments in the UAE,” concluded Dero.

With a current project portfolio valued at Dh4.7 billion, including its two primary projects in Ajman, ‘Rainbow Towers’ and ‘Ajman Uptown’, Sweet Homes has earmarked exclusive projects in Dubai and Abu Dhabi as part of its extensive expansion plans.

The developer is positive that its future projects within the UAE will set new records for the company, strengthening the solid reputation it has built in Ajman and building a significant presence in the entire UAE real estate market.

With offices in the UAE, Qatar, and Oman, Sweet Homes continues with its vision of providing more residential developments in the region and to further expand operations to cater to the growing interest across the region.

Actual Local Investigative Journalism - Legal limits on Car loans avoided.

I stumbled across this rather hidden actual Omani Media Investigative Journalism piece in.... Times of Oman. Yes. A story on car loans.





Read between the lines, and the story is that while the Central Bank have decreed that all car loans are to be for a maximum of 80% of the car value and the remaining 20% paid by the customer, dealers are getting around it by simply 'over invoicing' on the value of the car, enabling customers to effectively borrow 90% or more from their banks and flaunt the intent of the CBO's law.

Loopholes are a common problem in Omani law, especially as the lack of either personal income tax or VAT means a lot of the economy is uncontrolled and not easy to police. But it isn't hard to make this sort of transaction even more legal.

For example, I could actually charge you full price, but then offer an instant cash rebate, free gifts (that can be exchanged for cash), and include insurance, 'free' servicing, etc.

It is an example of how these simple 'micro-managing type' laws are often by-passed almost immediately. People are just too damn clever to easily be made to do something they don't want to do, especially when there's a buck in it.

Excellent work, Aftab H. Kola. This is good to see. More please!!!!!! [Essa, Bonus?]

Is CBO regulation putting a spoke in car sales through finance?

Aftab H. Kola
Times of Oman, Wednesday, December 03, 2008

MUSCAT — One of the key sectors in Oman — the auto finance industry — faced fluctuations in fortune this year following a new regulation from the Central Bank of Oman (CBO).

It may be recalled that the CBO in the beginning of the year had issued circulars to all financial companies that a borrower who wants to buy a car through loans should pay a minimum of 20 per cent down payment of the cost of the vehicle.

CBO instructed that personal loans for purchasing of vehicles have been mounting significantly and with a view to improve prudence and moderation the step was necessitated.

Cars in Oman have been within the close reach of consumers due to easy instalment schemes offered by auto finance companies. In fact, industry sources attribute this success of auto companies to the effectiveness of their alliances with financing institutions. The increased preference for financing car purchases through loans, thus, seemed justified.

According to reliable industry sources, out of 30,000-odd cars sold in Oman every year, 65 per cent are through finance. Says Aftab Patel, CEO, Al Omaniya Financial Services, “The down payment rule is applicable to individuals and not for corporate or business buying. There has not been a significant demand reduction in car sales through finance as the consumers have taken it in a positive spirit. If you look at the other way, instalments will come down.”

Another official from a car finance company said: “Smart money managers who make a 20 per cent down payment have more freedom to make a change in the car they drive. During the second year, when the car depreciates at a much slower rate, they would begin to build equity in their car. During a trade-in, they would actually get a positive credit towards the new car.”

Major players in retail car financing refused to comment on how the CBO rule has affected the car finance market. However, Mohammed Nazim, deputy general manager credit and collection, Suhail Bahwan Automobiles is candid: “The down payment rule has affected the car market marginally, but people are just crazy about cars here.”

Another official from one of the leading finance companies frankly admits that the car sales have been affected to a fairly good extent. He observed: “It is extremely difficult for new employees to pay 20 per cent down payment.”

But reports suggest that some car dealers who have in-house finance schemes are offering car loans without sticking to 20 per cent down payment. They charge less than 10 per cent down payment.

Consumers like Mohammed Hisham, a government employee find it extremely difficult to shell out a big initial amount to buy a car on finance.

He says: “The down payment component is important to a low-salaried man like me. I just got a licence and I’m keen to buy a car. But I don’t think I can buy one if they insist on 20 per cent.”

There are many like Hisham who echoed similar views. Then there are some smart agencies who know how not to send away a potential buyer either by ‘over-invoicing’ or ‘trade-in’ tricks. Industry experts now feel that the future of the automobile sector is now directly linked to the ever-increasing youth population, which is the prime target segment for most of the dealers.

And so they are devising some new schemes so that down payment does not deter them from buying cars.

Naughty naughty...

Ministry and The Times of Oman say ‘Everything’s OK in the Markets’

Both the Ministry of Commerce and Essa Al Zedjali say everythings alright in the market, well regulated, etc etc. So that’s OK then. (but always interesting to see how a comment by HE Maqbool or HE Mackie is always followed by an obsequious follow-up of unquestioning support in the Times of Oman the next day).

But, strange that if everything’s so great why the Government have not issued a guarantee to all depositors and promised to stand behind inter-bank loans, as was done in the UAE earlier this week. If everything’s so solid, it wouldn’t cost them anything would it?

I’d also still like to see something a little more detailed on the banks' liabilities, not withstanding Muscati’s comment that the big institutional investors had been briefed by Bank Muscat last month. They haven’t told the smaller guys or the public, nor issued a formal statements to shareholders apart from the usual profit/loss statement.

If you’d followed my tip on buying BM & Galfar on Sunday you’ll already be up. Good luck. The main thing is oil price. If it stays above $60, Oman is fine.


Maqbool allays fears of financial meltdown

ONA Tuesday, October 14, 2008
MUSCAT — “There is nothing to worry about the current global financial crisis and the government is closely monitoring the economic situation,” said Maqbool bin Ali Sultan, minister of commerce and industry and chairman of the Capital Market Authority (CMA), yesterday.

He was addressing a press conference on the CMA premises during which he pointed out that the Sultanate’s financial and economic situation in general, and that of the banks and public companies in particular, were excellent.
...

This was followed the next day by Essa's exhortion to buy shares, neglecting to mention that if you'd listened and acted the last time HE Maqbool pumped the market you'd have lost around 30% of your money, but hey, details.
Cashing in on crisis

Times News Service
Wednesday, October 15, 2008
WHEN Maqbool bin Ali Sultan, minister of commerce and industry and chairman of Capital Market Authority, comes out to console the worrying investors with a “there’s nothing to worry about” message, one has to stop and listen.
...

The ferry saga continued – Business Consultant Essa to the rescue!

I should have done a post on this last week, but, ah, work sometimes gets too crazy.

Essa Al Zedjali, Editor of the hard-hitting Times of Oman, and (according to the Times of Oman) one of Oman’s most eminent intellectuals and authors, took issue last week with the pricing of the infamous new ferries, saying they were far too expensive and should cut their prices, and effectively asking for public money to subsidise the ferries even more than they are already... (see below). I actually agree with him.

I’d have preferred he comment on the lack of jetties, the half-assed decision to buy them in the first place, the lack of trained Omanis to run it, and who's actually paying for all this, but let’s get the financials right first!

The details are below, but the bottom line is:
- Almost no matter what they charge, the ferries are highly uneconomic. The cheapest way to operate the boats is to, er, not operate them at all.
- The most likely face saving 'solution' is to write-off the capital investment of the boats and jetties, and then try to cover the visible running costs through fares. Thats what the NFC is for, and is trying to do at least on paper. Even then, the Government is effectively subsiding the tickets by a HUGE amount.
- By my estimate, the true cost to the Government of a return ticket is around 400 rials per person if they only run 3 times a week and get some money from transporting cars eventually. Not counting the 90% fuel subsidy, the cost is around 140 rials per person per trip.
- To break even just on running costs, with generous assumptions on occupancy and cheap fuel, prices would need to be ~twice what the NCA currently charge.

Taking account of the true value of diesel, running the trip only 3.5 times a week, the Government will need to provide an effective annual subsidy of ~12-13 million rials a year, mostly through cheap fuel and providing the boats for free.

Ignoring the cost for the boats and jetties, and the fuel subsidy, the Government will still have to subsidise operations to the tune of 1.5 to 2 million rials per year.

Countries all over the world subsidise their ferry’s for social benefit reasons. Its obvious from the basic calculations below that Oman will have to do the same. I think the real answer is that the subsidy should be transparent, so people are aware that it is NOT an economic business. And you have to avoid giving the ferry company principals a blank cheque to pay themselves a fortune for running a money losing business.

At current fares, they will only pull in at most about 1 million a year, and with Essa’s suggested prices about half that. Compared to the costs, it makes no real difference to the real subsidy either way.

So, as I said on this blog previously, this is a great trip, mostly paid for by the Ministry of National Economy. And I’m almost afraid to say, I amazingly find myself agreeing with Essa. (I know, I find it hard to believe too. That’s why I had to run the numbers myself!) The subsidy needed is so high, that the price of the tickets is almost immaterial. Better to make them as cheap as you can, at least for Omani’s or residents, and fill the boat. Make up some of the money in the Khasab hotels, and on food and booze.

Personally, I’d take the second ferry and turn it into a floating Casino, based out of Khasab. And maybe think about running the ferry to Dubai and or Iran, as well as the Muscat-Khasab route.

I'm just glad I don't own the ferries... But I wish I was able to be Chairman of the company that does, and pay myself heaps of Government money for running a loss making business. Nice work if you can get it.

Picture: One of Oman's ferries in its most economic setting: out of the water, unused.

Details
I decided to try and guestimate the breakeven price for the tickets.
Capital Costs
2 Ferries: reported purchase price ~26 million rials
Jetties: I dunno, but lets say another 5 million
Assuming a 6% discount rate (seeing as how the Government effectively owns them and can borrow the money pretty cheaply), and a 20 year life, that means you need 2.6 million rials per year to pay all that off.

Operating Cost
Crew of 12 x 2 ferries, manpower to run the jetties, some marketing people, … Probably about 1 million rial per year at least
Maintenance: Those ferries are pretty high tech: say 200k per year
One Ferry return trip Muscat to Kasab burns about 60,000 litres of diesel. Even at Government subsidized rates of 130 biaisa per litre, that’s 7,800 rials per return trip. (You should note, at current international rates for diesel, the Government could instead sell that same diesel for ~60,000 rials!).

If we do a trip every day (just to try and get the investment back by working the ferries as much as possible) that’s 2.8 million rials worth of subsidised fuel per year.

So, combining the above, it means every trip costs the owners ~18,000 rials. Just to break even. Running on highly subsidized fuel. What a deal.

Now, the income side.
The boats seat ~200 people. I don’t have the exact numbers, but lets say 10 VIPs, 20 1st Class, and 170 Tourist class. At the current rates from NFC, assuming VIPs don’t pay, and a 90% capacity, they receive ~8,300 rials in fares if they fill the boat. At Essa’s suggested rates they would take in at most ~3,700 rials.

So, even with current NFC rates they lose at least 10,000 rials per trip, 3.6 million rials a year. If they cut them further as suggested by Essa you’d lose around 15,000 rials a trip, or 5.3 million a year. (Note: If they had to pay real prices for the fuel though, that would amount to annual losses of ~27 million rials a year, and they may as well give away the seats it makes so little difference).

Of course, if the boats are empty at current prices, Essa’s absolutely right that you are probably better of cutting prices to fill the boat. The NCA’s original prices seem to be designed to roughly cover visible running costs based on subsidized fuel and assuming almost full occupancy. Their latest fare cut is probably just to try and lose less money and get more than 5 passengers a day. And of course the last thing you actually want to do is run the boat at all, because it just burns more cash!

Opinion: Times of Oman 5th October 2008

Two giant ferries in the Gulf of Oman!
Essa bin Mohammed Al Zedjali
Sunday, October 05, 2008 11:57:50 PM Oman Time

A FEW weeks ago I had read a news item in local papers that the second ferry named ‘Hormuz’ had joined the fleet of the government-owned National Ferry Company (NFC). A few days ago the local papers reported that the NFC has reduced the Muscat-Khasab-Muscat ticket price from RO74 to RO44 for the economy class and to RO85 for the first class.

The news item has been warmly received by the citizens. But we still demand that the company offers further reductions which are more in line with the income of the citizens and take into account the cost of living and the price hike that has affected people from all walks of life. This reduction is demanded because the two-way air ticket costs only RO49 for the 45-minute flight while it takes 6 hours by ferry.

A committee comprising representatives of the Ministry of Tourism, the Ministry of Transport and Communications, the Ministry of Commerce and Industry, the Ministry of National Economy and Oman Chamber of Commerce and Industry should have been formed before the launch of the ferries to determine the right prices of tickets. But it seems the board of the National Ferry Company has fixed the prices without taking into account the opinion of the said authorities.

This shows that the decision to fix the prices of tickets is taken randomly by the NFC board, without any consultation or coordination with the government authorities concerned, which has shocked and upset the citizens and made this issue the talk of the town during the last two months.

This project is of vital significance and aimed at facilitating the movement of citizens and residents to and from the northern coastal areas as part of the government’s wise policy of boosting domestic tourism. For this purpose, the NFC should have financial support from the government in order to enable it to run such a project safely and efficiently. The company could, at present, reconsider the prices of tickets, though it may increase them gradually later on.

We once again appeal to the National Ferry Company to reconsider the ticket prices and suggest a two-way ticket of RO20 for adults and RO10 for children for the economy class provided the ticket price does not include provision of food and drinks. We also suggest that the two-way first class ticket should not cost more than RO50 and should not include food and drinks. The passengers could have their meals at the coffee shops on the ferry.

By doing this, the NFC could rightly achieve the objectives of its logo "navigation in nature" as many people will prefer to travel within the country by two of the fastest ferries in the world in complete comfort and safety.

No real news - everyone on holiday. Oman's Luvvies celebrate drama initiative

Took a few days off during Eid, hence no posts. But what a wonderful time off. Nothing but beach, pool, food and, finally being able to hit the bars again (as they were closed to all but 5 star hotel guests during Ramadan).

I hope you all enjoyed the end of Ramadan too. And, of course, back to work tomorrow (unless you're in the private sector and already back at work).

How to maximise your chances of dying in a car crash - don't wear a seatbelt...
First, some local Indian workers and their visiting relatives and friends ended up rolling down a ravine in a rented Land Cruiser over the weekend, in a tragic accident coming down from Jebel Akhdar.

Five Indians dead, 6 injured in Jabal Al Akhdar accident

Times News Service
Friday, October 03, 2008 11:10:25 PM Oman Time
MUSCAT — Five people were killed and six others injured when the vehicle they were travelling fell into a ravine in the niyabat of Jabal Al Akhdar in the Wilayat of Nizwa.

The ill-fated 4WD vehicle carrying a number of Indian expatriates fell into the ravine yesterday while the occupants were returning from a trip to Jabal Al Akhdar, killing five of them on the spot.

The Royal Omani Police (ROP) promptly rushed to the spot and took the injured to the Nizwa Referral Hospital for treatment. A reliable source confirmed that the wounded persons were in stable condition.
...
The picnic that turned a nightmare
Times News Service
Sunday, October 05, 2008 12:01:05 AM Oman Time
MUSCAT — The ill-fated Land Cruiser that slipped into a ravine near Jabal Al Akhdar on Friday, apparently fell prey to a sudden brake failure that resulted in five people dying on the spot and six being injured including two children.
...

What's really sad is that brake failure is being blamed. When perhaps more could be made of the fact that there were 11 people in the damned car. Thank goodness the poor kids seem only to have been injured.

More from the Times of Oman department of shameless self promotion
Last week also saw the publishing of another banal "Viewpoint" on the front page of that awesome organ of the 4th Estate here that is, The Times of Oman. (Is there any other so-called leading newspaper that outs editorial on the front page above the fold?) This one was gushing about His Majesty's recent instruction for Ministers to develop theatre and drama in the Sultanate, presumeably to ensure some decent local content can take up the opportunity presented by the new Opera House being built in Shatti. But it's interesting that Essa Al Zedjali is clearly a big theatre buff, even expressing a preference for 'method acting', a specific form of acting technique developed by American Lee Strasberg, based on the famous work of turn of the century Russian actor and Director Constantin Stanislavski, and popular with some of Hollywood's greats like Al Pacino. Must admit, I didn't pick out Essa as a luvvie, but there you go. The squeals of joy from FODs across the Sultanate on hearing of the drama initiative must have been legion. I look forward to seeing an Omani Laurence Olivier one day, but perhaps a local Marlon Brando is where we'd best start.

Perhaps the first order of business for the high powered committee will be to try and make ordinary Omanis see the theatre as a place for anyone to have a respectable career. I think the majority of Oman's common culture in general still sees the acting occupation to be in line with prostitution and loose morals, somewhat similar to western society of the late 1800s - 1930s...

...
In fact, all sincere efforts extended during the past years in the field of drama and theatre for establishing an Omani theatre movement, in the full sense of the word, and for production of distinct local drama, were not extended within methodological frameworks and plans, and were without regulatory measures, leading to a state that was less than what was desirable.

It is hence important here to point out the requirements for the success of any theatre movement, particularly in the Sultanate. The most significant requirement would be a change from the concept of ‘amateurism’ to a state of ‘professionalism’ through establishing an institute that specialises in method acting, production and other related works. This is in addition to the necessity of the vital role the private sector needs to play here. Another important requirement would be the reconsideration of the wages of actors/actresses and all who work in the field of drama and theatre. Initiating a mechanism for promoting and marketing local drama abroad would enable the Omani theatre to make its presence felt in the Gulf, Arab and international arena.

The field of drama and theatre also requires induction of ‘new blood’, every year. This can be made possible by setting up a specialised academic institute that would shoulder the objectives of the theatre in the Sultanate. An association of theatre artistes and performers, similar to the associations of journalists and writers, could also be formed. Such an association will care for the affairs of the artistes and those working in the field of theatre and TV drama for further advancement of the march of theatre in the Sultanate in coordination with the government and private sector institutions concerned. Such a step would also lead to introduction of objective local drama that deals with the present and future issues of the society in the light of the deep-rooted Omani heritage.

And from the 'No common sense please we're Bahraini' dept
In other news, the Bahraini Foreign Ministry and Bahraini foreign minister Shaikh Khalid Bin Ahmad Al Khalifa have been taking some flack from
local Islamo-nutters in Bahrain for daring to suggest a formal forum for regional dialogue with Israel and other non-Arab countries might be a useful step to get some positive change in the Israeli-Palistinian problem. See Gulf News. The right wing types don't even want to acknowledge the validity of any Jewish state in the area. Intersting how in line this group are with the right wing in the States who similarly want to set impossible preconditions on Iran before talking to them either.

...
However, the Bahrain Society for Anti-Normalisation with the Zionist Enemy, a prominent non-government organisation (NGO) rejected the call.

"The formation of a regional organisation that includes the Zionist entity is in fact an implementation of the US plans to support Israel in the Arab world and is part of the so-called Greater Middle East which seeks to integrate the Zionists in the region," the society said in a statement.
...

Don't Panic!!! Sky not falling on PDO Camp

I've been pestered lately by some of my acquaintances who work for the big oil and gas company Petroleum Development Oman, aka PDO, about the news article on OHI, saying how they are about to go ahead with a hotel/condo/retail redevelopment at 'PDO Heights'. You would have thought the sky was falling. Even the maids are fretting.

However, they should - temporarily perhaps - be reassured. The glorious Times of Oman got it wrong, by saying the redevelopment was PDO Heights (see below), home of various run down bungalows and semis that house many of the expats and senior Omanis who work for PDO, and possibly the best piece of real estate in Oman. OHI will actually be redeveloping the small hill known as Burhan Heights, just opposite the Shell Petrol Station, demolishing the old flats, doing some major 'flattening' of the hill, and building said massive development. (Interesting how the Muscat Municipality coincidentally decided to dual the road leading to it. How convenient for OHI!).

Before it was called Burhan Heights, it was called Shanfari villas I think, and was owned by the previous Oil Minister, who subsequently sold it to OHI.

The reason the article caused such panic, of course, is that it is common knowledge that the Ministry of Tourism and others have been salivating for years over the idea of getting their hands on the large chunk of prime real estate that is PDO Camp. It contains possibly the best private beach in Oman, lots of hills, great views, and is (now) in the heart of Muscat. Talk was of 3 hotels (at least), golf course, plus the usual mass of condo and villas. Think of the rivers of cash that baby would enable. Contracts left, right and centre, and perhaps some nice plots of land for those who have been extra good. The area has even been put into the official portfolio of properties the Government holds in their redevelopment department. Although some in the Government were expecting development to begin in 2010, that doesn't look too likely IMHO. The land isn't going anywhere, the Government have their hands rather full with other projects, and neither the oil company nor the Ministry of Oil and Gas are very keen. The camp is a huge part of the reason PDO can attract the skilled expats it needs for the money the offer, and at current oil prices there is still a huge problem getting the right people to come to Oman.

But, eventually, yep, it will happen. Just not right now, despite what crack reporter Mrudu Naik of the Times says.

For the original source of the panic at PDO, thank The Times of Oman

OHI, UAE realtor ETA Star announce luxury township
by Mrudu Naik
Saturday, September 06, 2008 8:30:50 PM Oman Time
MUSCAT — Dubai-based developer ETA Star Properties and Oman’s OHI Group have signed an agreement to launch a premium luxury township in the heart of Oman on the PDO heights.

The “yet to be named” multi-purpose project with residential apartments, offices and retail spaces, blending luxurious living with high levels of convenience will be launched by the end of the year.
...
The cost of the project is estimated to be RO400 million. The target customers for the project are AGCC nationals. “We would be targeting middle to upper middle class income group as our clients,” said Junaid.

On being asked what the USP of the property would be, Saleh said: “The biggest attraction would be that it is right in the heart of the city unlike other projects. We expect a substantial demand because of the beautiful location. The design of the project will have a lot of Omani touch.”

Stating that the commencement of the construction would start by the end of the year, Junaid said: “It will take 30 months for the project to complete after commencement.”
Informing that the various sized 1000 residential apartments would be housed in many buildings, Saleh clarified that number of floors had not been decided yet.

“Since there is a little bit of relaxation on the number of floors which was earlier restricted to three, we will be discussing with the municipality authorities before deciding on the number of floors,” he said.