Times Of Oman — MILAN — Sayyid Badr bin Hamed bin Hamoud Al Busaidi, secretary-general of the Foreign Ministry, opened the economic symposium on ‘Cooperation Opportunities between Omani and Italian Companies,’ at Manzoni Hall at the National Establishment for Foreign Trade here yesterday. The meeting was attended by a number of officials at the public and private sectors in the Sultanate and Italy and representatives of more than 80 Italian companies. In a speech delivered at the opening of the seminar, Sayyid Badr expressed his gratitude for the efforts made by the Italian Economic Development Ministry, the Italian Institute for Foreign Trade, Stefania Gabriella Anastasia Craxi, secretary of state for foreign affairs in enhancing positive relations between the two sides. He also thanked the city of Milan for hosting the first economic event of its type, which comes within the framework of developing economic and investment relations between the Sultanate and Italy. Sayyid Badr also appreciated the Italian government’s efforts and the Sultanate’s profound respect to the role being played by Italy in supporting joint programmes on technical assistance rendered in fields of environment, climate affairs in the Middle East and North Africa in collaboration with the World Bank and the European Commission since they receive a global attention and their relations to issues of water scarcity, regional security and peace. He also pointed to the great progress in the trade and investment laws system witnessed by the Sultanate during the past years, the availability of modern infrastructure, legislative frames that support development in the Sultanate and free economy. This ensures that the investment atmosphere in the Sultanate is economically, culturally, socially and politically prepared to attract more investments and constructive partnership in a number of vital fields. Sayyid Badr pointed out that the Sultanate occupies advanced ranking among countries of the world in terms of peace and stability. The Sultanate is also enjoying a free economy that is based on competition, free markets and mechanism of prices. Stefania Craxi affirmed in her speech the importance of organising the seminar and working papers to be presented that explain the real investment opportunities in the Sultanate of Oman and the economic co-operation between the Sultanate and Italy. Then, a working paper by the Commerce and Industry Ministry in collaboration with the Capital Market Authority (CMA) was presented by Dr Abdullah bin Ali bin Zaher Al Hina’ei, director-general of industry at the Commerce and Industry Ministry familiarising with economic status in the Sultanate. During the seminar, a working paper by the Omani Centre for Investment Promotion and Exports Development (Ociped) in collaboration with Oman Chamber of Commerce and Industry (OCCI) titled ‘Available investment opportunities in the Sultanate,’ was presented by Nisreen bint Ahmed Ja’afar, director-general of Ociped’s investment promotion, which dealt with the Sultanate’s investment plans’ programmes and as per Oman Future Vision 2020, the current development plan 2006-2010 as per oil production in the Sultanate and price per barrel. During the seminar, Hamed bin Saloom Al Athoobi, director of developing projects at Oman Oil Company (OOC), gave a briefing on the OOC, its objectives investment portfolio of the company, in addition to, sectors that the company invest in and outside the Sultanate. The Tourism Ministry also presented a working paper on tourism potentials in the Sultanate and available investment opportunities in the Sultanate presented by Ameenah bint Abdullah Al Balushiyah, director of census and geographical information at the Tourism Ministry. The seminar was attended by Dr Abdulmalik bin Abdullah Al Hina’ei, National Economy Ministry’s undersecretary for economic affairs, Said bin Nassir Al Sinawi Al Harthy, Sultanate’s ambassador to Italy and Talib bin Miran Al Ra’esi, head of economic and technical cooperation department at the Foreign Ministry. On the sidelines of the seminar, a number of meetings between Omani and Italian businessmen and businesswomen were held aimed at discussing the possibility of cooperation between the two sides and identifying the business features in their companies.

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Times Of Oman — MUSCAT — The MSM-30 index rose marginally to close 0.73 per cent higher at 5,747 points yesterday with advance to decline ratio of 0.86:1. The total shares exchanged increased by 7.8 per cent to 38.916 million shares against the previous day’s 36.107 million shares. The total value increased by 20.7 per cent, from RO14.042 million to RO16.950 million. Foreign investors were net sellers yesterday; they sold a net of two per cent (RO0.33 million) in the total turnover. The Industry sector was the only gainer yesterday which closed 4.07 per cent higher at 6,809 points. However, the Banking & Investment and Services & Insurance sector declined to closed at 0.48 per cent lower at 7,716 points and 0.05 per cent lower at 2,361 points, respectively. The market was weak with 22 declines and 19 advances out of 54 traded securities. The top two gainers were: National Aluminum (9.54 per cent) and Al Jazeera Steel Product (8.58 per cent) to close at RO0.402 and RO0.405, respectively. The top two losers were: Oman Chemical Industry (-46.09 per cent) and AES Barka (-4.14 per cent), both closed at RO0.062 and RO1.712, respectively. The top two by volume traded were: Oman & Emirates Inv. (OM) (3.3 million shares) and BankDhofar (2.9 million shares). The top two by value traded were: Renaissance Services (RO1.8million) and BankDhofar (RO1.5million). NAVs as of June 7, 2009: Muscat Fund RO1.214, Oryx Fund-RO1.193 and BankMuscat MSCI Kuwait Fund: (June 4,2009) $0.6759.

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Times Of Oman — MUSCAT — Oman’s Gulf Cup hero Hassan Mudhafar yesterday signed a one-year contract with Al Wahda to fill the berth left for an Asian professional for next season. The 29-year-old midfielder, moves to Abu Dhabi on a free transfer after a season with Qatari club Al Rayyan. The Number 17 national player who is in prime form was on a hunt by various clubs in the region ever since Sultanate clinched the Gulf Cup for the first time in its history. Hassan Rabe’ea, who is playing for Al Nasr Club in Saudi Arabia is the most expensive player in the Middle East. With Hassan Mudhafar’s departure from Al Rayyan, Imad Al Hosni will be the lone Omani player for this season’s Emir Cup finalist. Speaking to Times Sport from UAE, an Al Wahda Club official on condition of anonymity confirmed Hassan’s contract with the club. “Hassan coming to Al Wahda is excellent news and with the kind of form he is in at the moment, we are sure he can deliver for us too,” said the official who refused to comment on the price tag they brought Hassan for. He can now play alongside UAE star player Ismail Mattar. Meanwhile, after a brilliant performance against South Korea in Dubai last week, Le Roy coached star-studded Oman team will take on Bosnia in France today in the last friendly match ahead of their crucial Asia Cup qualification round in October against the Socceroos. Le Roy is expected to test his reserves including upcoming star Said Shalhoob. Times Sport has learnt from close Oman FA sources that, Le Roy’s team will have few preparatory camps in France soon after the match against Bosnia.

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Times Of Oman — MUSCAT — With a view to avoid discrimination, the new tax law provides for a parity of tax rates between foreign and local companies. Foreign companies, prior to 2001, were paying taxes at certain income levels, at the rate of 50 per cent. This rate was reduced to 30 per cent in 2001 and now to 12 per cent. Further, foreign companies like local companies, would not pay tax on the first RO30,000 of profits. With this development, Oman’s tax rates are the lowest in the region amongst countries that impose taxes. 90-days threshold Foreign companies are liable to corporate tax (other than withholding taxes) only if they have created a permanent establishment (PE) in Oman. Foreign companies previously had encountered difficulties in arguing that a PE is not created in case of limited visits to Oman. The new tax law provides for clarity by specifying a 90-day threshold in a tax year for creating a service PE. The new tax law also clarifies that a PE can be created for a foreign company through a dependent agent. Agency PE rules were always strictly applied in Oman. Hopefully the new law will help in confirming that a PE cannot be constituted for a foreign company through an independent agent. Income liable to tax There has been much debate under the old tax law on the scope of income accruing to foreign companies which would be liable to tax in Oman. The practice of the tax authorities has generally been to tax all income accruing to a foreign company from a contract which requires a permanent establishment in Oman irrespective of whether such income relates to activities carried out in Oman or outside. It is only with countries with whom Oman has a Double Tax Avoidance Treaty that the tax authorities have generally accepted that profits attributable to activities carried out outside Oman are not liable to tax. The new tax law does not contain any special rules to determine the income which could be taxed in Oman. In fact, the new tax law provides for taxation of all income wherever earned. This is likely to encourage the tax authorities to tax profits arising from activities carried out outside Oman in relation to a contract which requires a permanent establishment in Oman. Capital gains tax The new tax law specifically provides for taxability of capital gains wherever earned. When a foreign company, therefore, disposes of their operations in Oman, they would be liable to tax on the capital gains they make from the sale of their business. This has been the position even under the old tax law for the last few years in view of certain Supreme Court judgements confirming that there is nothing in the old tax law prohibiting taxation of capital gains. Withholding tax Withholding taxes of 10 per cent are applicable on certain specified categories of payments made to foreign companies who do not have a permanent establishment in Oman. These comprise:  Royalties, which are now defined to include rental of equipment and know how;  Fees for research and development; and Management fees. Transfer pricing The new tax law does not contact specific transfer pricing rules either in respect of head office expenses or other transactions. Our discussions with the tax authorities indicate that these would be specified in the executive regulations that are likely to be issued later this year and which would be effective from January 1, 2010. It is widely anticipated that the current rules for allowance of head office overhead expenses would be changed with a view to remove the artificial capping of the allowance to the average of the allowance given in the previous three tax years. Foreign companies would be eagerly awaiting the new rules to understand to what extent expenses charged by regional centres and other affiliates of the head office would be covered by the new head office expenses rule. We believe that directly identifiable expenses whether charged by the head office or its affiliates would continue to be an allowable deduction. It is also likely that rules on allowance of interest to the head office and other affiliates (internationally referred to as thin capitalisation rules) would be introduced. It remains to be seen whether the executive regulations would specify rules for transfer pricing in the case of other transactions. The author can be contacted at ahariharan@kpmg.com. The views expressed are his own

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Times Of Oman — MUSCAT — His Majesty Sultan Qaboos bin Said has issued Royal Decree no. 34/2009 issuing first class License for the Omani-Qatari Telecommunications Company SAOG for installing and operating a common fixed telecommunications services system. Article one: Issued first class license to Omani-Qatari Telecommunications Company SAOG for installing and operating a common fixed telecommunications services system for a period of 25 years. However, the Frequent Spectrum rights shall be granted to the Broad Range Access Networks for a period of 15 years as per manner attached to license. Article two: The decree takes effect from date of issue.

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Times Of Oman — MUSCAT — Ahli Bank has announced the results of its monthly draw of ‘My Hassad’ saving scheme. Ali Salim Said Al Shibli of Sohar branch emerged the lucky winner of RO10,000 cash prize. Rabani Rahim Al Balushi, branch manager handed over the cheque to the winner. Ali Salim Al Shibli was excited to win the RO10,000 just before the summer holidays. The new MyHassad scheme, launched by Ahli Bank in March 2009, continues to create a sensation in the country, encouraging people to open new accounts. The prize scheme offers a chance to win RO250,000 as RO1,000 Monthly Salary for Life (250 months) by the end of September as well as RO10,000 monthly prize draw while maintaining its daily prize draw scheme. Congratulating the winner, Ghaya Al Barwani, head of marketing in Ahli Bank, said: “I would like to congratulate our lucky winner and wish him all the best on behalf of the bank. We have received excellent response from the market since the launch of this saving scheme and we, at Ahli Bank, make every effort to understand our customers’ needs and provide the very best for them. With Ahli Bank’s MyHassad account there are no limits to the number of times you can win, as long you maintain the balances required in the account.” Customers need to open their MyHassad account with RO100 for their chance to win RO1,000 in the next working day’s draw hence their chance to “open today and win tomorrow” started in 2008 continues. To participate in the RO10,000 monthly draw, customers need to maintain a minimum RO250 during the month. This highlights the commitment of the bank to its long-term MyHassad account holders. Further more, every RO500 maintained each month with effect from March 1, 2009, gives the customer one chance to win in the ‘Salary for Life’ draw. Therefore, a customer opening an account with RO500 today and maintaining this balance will get five chances to win RO1,000 in each daily draw, two chances to win in each monthly draw as well as one chance per month to win in the Salary for Life draw.

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Times Of Oman — MUSCAT — His Majesty Sultan Qaboos bin Said has sent a cable of condolences to His Majesty King Hamad bin Isa Al Khalifa of the Kingdom of Bahrain on the death of Sheikh Khalid bin Salaman bin Abdullah Al Khalifa. In his cable, His Majesty expressed his sincere condolences and sympathy praying to Allah the Almighty to rest his soul in peace and grant his family patience to bear the loss.

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Times Of Oman — MUSCAT — The Arab Fund for Economic and Social Development yesterday agreed to part-finance the RO47.8 million Thumrait-Salalah dual carriageway project by extending a loan of RO28 million. Ahmed bin Abdulnabi Macki, minister of national economy and Deputy Chairman of Financial Affairs and Energy Resources Council said the loan will contribute to financing the 73km-long carriageway. The loan will cover the cost of constructing a new road and rehabilitating the existing one that links the two regions, a senior government official said. The amount will also be used to reconstruct roads, besides constructing rain water drainage systems, lighting and installing traffic safety signs, the official said. While Ahmed bin Abdul-nabi Macki signed the loan agreement on behalf of the government, Abdul Latif Yousef Al Hamed, director-general and Chairman of the Board, signed for the Arab Fund for Economic and Social Development. The signing ceremony was attended by Sultan bin Salim Al Habsi, undersecretary of the Finance Ministry and other officials at the national economy and finance ministries. The construction of the dual carriageway began at the end of 2006, officials said.

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Times Of Oman — MUSCAT — Fashion event management company Layali Al Asalah started its second annual exhibition yesterday under the patronage of Her Highness Sayyida Thuraya bint Thuwaini bin Shihab Al Said. The exhibition displays the participants’ creativity, which vary from casual wear, to stylish abayas, jewellery, exquisite evening gowns, stunning jalabiyaat, amazing Omani traditional and modern dresses, and much more. Layali Al Asalah began its journey in 2006. Samah Al Wehebi and Nadia Al Zakwani were the only owners of the company. After the success of their first exhibition, Najla Al Kindi joined the group. The company is specialised in organising annual events and activities related to fashion. Further, it organises a yearly competition in fashion, which aims to combine different cultures from all over the world. “In 2006, the competition was about creativity in designing dresses to combine the cultures of Oman, Morroco and India,” Najla Al Kindi told Times of Oman. “In 2008, we concentrated on the Omani, Chinese and Yemeni cultures. This year’s competition, which will be held in October, will focus on the cultures of Oman, Zanzibar and Turkey,” she added. This year, Layali Al Asalah’s all-women exhibition displays several items, which include different designs of abayas and shelas, jalabiyaat, sweets, children’s wear, gift packaging, beauty and healthcare products, shoes and accessories. The event also offers paid photo shoots with full make-up and a dress chosen by the customer. The all-woman event is due to continue till June 12. It is open to customers from 9am to 10pm everyday. The exhibition venue is Asalah villa located at Al Ghubra South.

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Times Of Oman — MUSCAT — ‘Parenthood a Family Affair’, a two-day event held at Qurum City Centre, was a great hit with families. Parents and children enthusiastically took part in the quiz, entertainment and games. The audience observed the chefs from Park Inn prepare four varieties of salads. After a quiz session they thoroughly enjoyed the magic show. Parenthood a Family Affair was held in association with Oman Mobile, presented by Qurum City Centre and supported by A’saffa and Park Inn. The event was organised by White Candle Entertainments and electronically supported by Omasco. Siham Al Riyami, from the Ministry of Education, spoke about the role of children and parents in education. She spoke to children and parents, which turned out to be a lively session. “The children were so open about their thoughts and feelings. I think it was a learning experience for the parents and me. It was great to see the children and parents in an informal setting. “The children’s response encouraged the parents to join the discussion,” said Siham Al Riyami on Radio Oman’s Road Show that was live from Qurum City Centre on the first day of the event. Adults and children won gifts on both the days from Oman Mobile and A’saffa. “It was a great time for the whole family but it was also a time to reflect,” said a father whose children participated in the games. Language was no barrier as the show was presented both in Arabic and English. On the 90.4 Live Show, parents were asked for tips. Mothers gave some valuable advice such as it all depends on how you talk to the children, and not ordering them around, giving examples to follow and praising good behaviour. One father questioned: “How about listening to them We tend to be from the old school. Many a times a five-year-old can come up with some wonderful suggestions.”

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