The Entrepreneurial Revolution in Oman

 

Oman

As recently at the 1970’s, the Sultanate of Oman was simply a simple nation, with poor infrastructure, poor educational facilities and a closed economy. Now, as elan reports, is seeing something of a renaissance: literacy rates are around 90%, there is educational parity between boys and girls, and the country has created a number of new large-scale structures such as universities and a state of the art airport.

But more than that, Oman is seeing its economy begin to diversify. Oil revenues still represent the overwhelming majority of government funds and that will not be changing anytime soon. However, there are the beginnings of entrepreneurial boom in Oman.

Entrepreneurial Incubator

Oman has positioned itself to be the type of place where start up businesses can thrive. The country is a tax haven to residents and investors who wish to do business without levy. There has been a focus on fiscal, trade and labor freedom within Oman that does not exist elsewhere in the region. The country is also awash in government and non-government organizations – such as “I’m an Entrepreneur” and “Sharakah Youth Fund”- meant to foster the entrepreneurial spirit in Omani youth.

Challenges

The primary challenge facing Oman’s new economic ecosystem is the period required for a start up company to become a mature and stable venture. Population growth in the country is outpacing economic growth such that roughly 45,000 jobs would have to be created every year in order to satisfy the needs of that growing working population.

Serial Omani entrepreneur, Qais al-Khonji, believes that Oman suffers from two basic market issues that, if faced head, can be overcome. The founder of Qais United Enterprises Trading and Genesis International, al-Khonji thinks that slow payment cycles slow productivity and thus slow growth. He also believes that the country’s small population leaves most entrepreneurs competing for the same market. But he also believes that diversifying businesses, particularly the service economy, can overcome these challenges.

To read the original article, head over to elan.

Building a Path for Growth in Oman

Qais al-Khonji

Oman, like many Middle Eastern nations, has generated many fortunes out of its energy production but still suffers from widespread inequality. According to a report on Oximity, widespread unemployment is still the norm in Oman, going as high as 25% for young people between the ages of 18 and 29. And with oil and gas revenues representing 45% of government funding and 50% of GDP, it is safe to say that the economy of the Sultanate of Oman is heavily dependent upon natural resource exports.

In recent years, however, an economic strategy has emerged in oman to strengthen the private sector in Oman through entrepreneurship. The strategy involves diversifying, courting foreign investment, and moving the country away from its heavy dependence on natural resource production.  One of the men spearheading this strategy is Omani entrepreneur Qais al-Khonji, who has started many business in the country and is currently the CEO of Genesis International.

Al-Khonji believe that the greatest problem with Oman’s economic prospects has been what he calls “the two ‘S-S’”- too slow and too small. Slow in the respect that the market is slow to execute business orders leading to increased execution costs and a shorter project budget cycle. It is small because the population of the market is small, with an active population that is even smaller. With this type of market, it can be difficult to foster a diverse economy. For young investors and entrepreneurs, al-Khonji emphasizes services over goods, to diversify the market for long term growth.

But to foster long term growth, al-Khonji believes that Oman needs what he calls “feeder brains.” These are the minds of educated young people with eye toward entrepreneurship. He considers this key for making far-reaching structural change in Oman society. He notes that there is a growing movement within the youth of his country towards entrepreneurial activity. There are many youth-oriented programs in Oman, some of which are headed by al-Khonji, that attempt to instill entrepreneurial spirit in the next generation.

Oman has many built in strengths for future economic expansion and long-term job growth, according to al-Khonji. The number of multinational corporations at work in Oman provide a significant amount of foreign investment in profitable Omani enterprises. Also, Oman’s natural industry exports give the country strong business ties to emerging economic powerhouses, such as China.  A stable plan for growth will allow Oman businesses to thrive and build an economy outside of oil.

To read the whole interview, head over to Oximity.

Entrepreneurial Possibilities in Oman

Qais al-Khonji’s Latest Blog Post

Qais al-Khonji and Fellow Entrepreneurial Influencers

It has only been in past hundred years or so that Oman has become a more contemporary nation in terms of education and economy. Prior to 1970, the nation maintained highly traditionalist society. There were no females allowed in the education systems, they had hardly any international relations with nearby countries, let alone those in different continents, and their communications network was subpar.

However, Oman has come a long way since these more traditionalist times. The country has reinvented itself; now boasting gender-equal classrooms, literacy rates at roughly 90%, a number of Universities sprinkled about, cutting edge airports and airlines, and a green infrastructure that has been cultivated to develop and support new entrepreneurial endeavors. The population of the nation as a whole is extremely young- 43% of Oman is made up of individuals aged 15 or younger. This young population makes for the possibility of a strong entrepreneurial revolution that could transform the Oman economy into a contender in the global marketplace.

Oman has cultivated an environment that is truly a conducive springboard for any entrepreneurial ventures. With its three crucial components of entrepreneurial success, which are fiscal freedom, labor freedom and trade freedom, there is a workplace mobility within Oman that sets it apart from nearby nations. The existence of lower-priced duties, a higher rate of profit-retention, and affordable non-monetary expenditures, like health benefits, make for an ideal platform for launching new, innovative business ventures.

The government and non-government groups have recognized the importance of new business and budding entrepreneurs in the facilitation of the economic growth of Oman, and have thus launched initiatives to spread awareness of entrepreneurial possibility and inspire creativity in the youth of Oman. Campaigns such as “I’m an Entrepreneur,” and “Shakarah Youth Fund,” are among some of the initiatives that target youths and aim to get them excited and thinking about the entrepreneurial possibilities that lay ahead of them.

To learn more about the entrepreneurial climate of Oman and Qais al-Khonji’s influence on the growth of the nation’s economy, check out this article.

via Qais al-Khonji http://ift.tt/1ftp3qg

Entrepreneurial Possibilities in Oman

Qais al-Khonji and Fellow Entrepreneurial Influencers

It has only been in past hundred years or so that Oman has become a more contemporary nation in terms of education and economy. Prior to 1970, the nation maintained highly traditionalist society. There were no females allowed in the education systems, they had hardly any international relations with nearby countries, let alone those in different continents, and their communications network was subpar.

However, Oman has come a long way since these more traditionalist times. The country has reinvented itself; now boasting gender-equal classrooms, literacy rates at roughly 90%, a number of Universities sprinkled about, cutting edge airports and airlines, and a green infrastructure that has been cultivated to develop and support new entrepreneurial endeavors. The population of the nation as a whole is extremely young- 43% of Oman is made up of individuals aged 15 or younger. This young population makes for the possibility of a strong entrepreneurial revolution that could transform the Oman economy into a contender in the global marketplace.

Oman has cultivated an environment that is truly a conducive springboard for any entrepreneurial ventures. With its three crucial components of entrepreneurial success, which are fiscal freedom, labor freedom and trade freedom, there is a workplace mobility within Oman that sets it apart from nearby nations. The existence of lower-priced duties, a higher rate of profit-retention, and affordable non-monetary expenditures, like health benefits, make for an ideal platform for launching new, innovative business ventures.

The government and non-government groups have recognized the importance of new business and budding entrepreneurs in the facilitation of the economic growth of Oman, and have thus launched initiatives to spread awareness of entrepreneurial possibility and inspire creativity in the youth of Oman. Campaigns such as “I’m an Entrepreneur,” and “Shakarah Youth Fund,” are among some of the initiatives that target youths and aim to get them excited and thinking about the entrepreneurial possibilities that lay ahead of them.

To learn more about the entrepreneurial climate of Oman and Qais al-Khonji’s influence on the growth of the nation’s economy, check out this article.

Developing the Private Sector of Oman’s Economy

Oman City

In order to develop a nation with a strong economic presence, said nation must implement quality education in order to produce a population of young people who can improve and expand the nation’s economic presence.  In recent years, the Sultanate of Oman has seen a tremendous growth rate and has seen an increasingly large budget deficit in the face of the rising prices of oil.  The economy of Oman is highly dependent on revenue from energy, which makes up roughly 45% of government income and somewhere near 50% of the gross domestic product (GDP) of the nation.

That being said, there is currently an issue of unemployment in Oman.  The unemployment rate has stayed at 15% for nationals for some time, but has crept up to 25% in the demographic of young people between the ages of 18-29 years old.

The nation is thus seeking to move away from such a heavy dependence on energy for revenue, and has thus created a strategy for the economy that focuses on the development of the private sector and small, up-and-coming businesses.

The private sector of Oman is mainly in the areas of tourism, retail, agriculture and textiles.  The private sector of Oman is extremely sturdy and offers a wide variety of opportunities, thus making it an attractive niche for young entrepreneurs.  Similarly, the private sector offers more opportunity for international relations and the development of Oman as a larger contender in the global marketplace.  Above all, increased business ventures within the private sector home to create more job opportunities and thus decrease the unemployment rates, primarily for the younger demographic.

As a successful entrepreneur himself, Qais al-Khonji understands what it takes to be successful in the economy of Oman and seeks to educate the Omani youth on entrepreneurship and all of the opportunities for success they have at their fingertips in the current economy.

To see more about what Qais al-Khonji had to say about the Oman economy, have a look at this article for his full interview with the Fair Observer.

Things to Avoid with a Start Up

Qais al-Khonji’s Latest Blog Post

It is very common for startups to fail. Here are some red flags to avoid with your startup:

1. A Small of Unscalable Idea: Investors have a bias against ideas that throw out the largest nets possible in terms of potential customers. Investors would rather deal with products that appeal to everyone rather than a small niche business that only appeals to a narrow market.

2. Wrong Market Positioning: You must properly research the market before deciding to startup a business in it. Investors would rather back one of the first businesses in a field than the ninth or tenth.

3. No Go-To-Market-Strategy: Instead of being so focused on building your product, make sure you think how your go-to-market strategy will help you to achieve a proof-of-concept to attract growth capital.

4. No Focus: Launching a business is hard but it’s even harder to try to launch multiple businesses. Make sure you focus in on what your business is to be about.

5. Know When To Cut Losses: Entrepreneurs need to know when to take a turn in a plan while there is still enough capital in the bank and enough time to implement changes.

6. No Passion or Persistence: An entrepreneur needs to love the business in order to make it through the good and the bad times. A persistent mindset s required to get past the hurdles of a startup.

7. Wrong or Incomplete Leadership: A startup team needs to think differently than a Fortune 500 team. Investors would rather back a team than a person.

8. An Unmotivated Team: The team needs to work together to make the startup work. The management team has to have the same incentives ad the founder. This can be done by putting a certain percentage of the company into the hands of your employees.

9. No Revenue Model: A revenue model does not have to be in place on day one of the startup but there should be a clearly communicated revenue plan for the future. This plan needs to be material enough to make it enticing for an investor.

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Tips for Launching a Startup

Qais al-Khonji’s New Post!

Making the choice to quit your job and launch your own business can be risky but it can be made easier if you start up in an industry where you already have knowledge, connections, and credibility. This means the company you’re leaving can actually become an asset in your entrepreneurial venture.

For example, Ian McAfee left a mid-level executive job at a well-known forex brokerage firm to start a company in the same industry. McAfee and his two partners started Shift Forex, a firm that provides consulting services to forex firms. The first year of Shift Forex saw $200,000 in revenue and McAfee says a portion of the success dealt with having a strong relationship with his former employer. How can you turn your former employer into an asset? Here are some tips:

1. Show Respect: It is important to let the company know that you did your best to serve the company’s interests while you worked for them. This means not talking to the company’s clients, suppliers, and fellow employees about your new venture until you officially leave.

2. Share Your Plan When You Leave: Your current employer may be worried you plan to steal their customers or provide an identical service when he/she hears you are leaving to start a company in the same industry. Explaining your plan to your boss allows you to make them feel less threatened by your new business.

3. Offer to Help With The Transition: Your departure from your employer ma leave a hole in the workforce that is difficult to fill. You can offer to be a paid consultant who completes certain tasks until the company finds someone to replace you. The company might not choose to take you up on this offer but it shows you care about the firm and want to have a good relationship in the future.

4. Let Them Know How They Can Help: Leaving on good terms allows you to ask your old employer for help. They can provide you with references, refer you clients, or provide you with favorable vendor terms.

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Increased Job Creation Due to Mobile Business Units

Qais al-Khonji’s New Post!

Oman Capital City

In a recent article in the Oman Times, it was stated that the government of Oman has decided to begin granting licenses to smaller and mid-sized business to become mobile business entities that offer a wide range of useful services the people of Oman.  This was disclosed to the Times of Oman by the  upper tier of the SME’s department in an exclusive interview.

In the launching of this new granting of licenses, there has been a committee put together which will meet and decide upon which businesses will be granted licenses.  The committee will also be a supportive entity, meant to embolden these small and medium enterprises (SMEs) in their endeavors, so that they will flourish as they grow and develop, ultimately providing a number of job opportunities for the youth of Oman in the future.

This plan for the promotion and encouragement of mobile businesses is an effort by the Omani people to offer better services to Omani citizens and allow for more opportunities for small businesses to contribute to the economy of the country.  The economy of Oman has seen a great deal of improvement over the years, but will remain stagnant if they do not make way for the growth of up and coming smaller businesses, which truly have the power to greatly contribute to the development of a more economically diverse Oman.

Al Maawali, one of the committee members on this new SME licensing organization has commented on the efforts of said organization to raise awareness about SMEs and spread the understanding of their importance. He has said the committee is very pleased with the success they have seen in terms of shifting the old mentality of thinking only large businesses were the key to success, towards a mind that is more supportive and welcoming to SMEs.  ”Everybody knows about SMEs now,” said Maawali.

This initiative is a great idea for the supporting and distribution of SMEs.  It will be interesting to see how the organization develops and thus affects the successes of SMEs.

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Agreement Between Sohar Port and Freezone and Harsco

Qais al-Khonji’s Latest Blog Post

Sohar Port and Freezone

Recently, a global company based in the United States, known as Harsco, signed a tenancy agreement with the Oman company Sohar Port and Freezone.  The agreement between the two companies lends credibility to the expansion of Sohar Port and Freezone’s influence and success within Oman and its economy.

As of late, Sohar Port and Freezone has greatly grown in terms of its capacity to handle container, general cargo and liquids at their port and has had an increased number of downstream companies engage in business relations within their freezone.  The proceedings of the arrangement and the signing of the agreement were overseen by Sultan Bin Salim Al Habsi, who is the chairman of the board of directors, as well as assumes the position of secretary general of the Supreme Council for Planning.  Members of the Sohar Port and Freezone as well as members of Harsco Minerals of Arabia were also in attendance to observe and participate in the signing of the agreement.

The objective of this Harsco project in Sohar is the obtaining of by-products from industries that produce steel in and around the Sohar Port and Freezone. They will take these by products and re-process them into environmentally-friendly raw materials that will be extremely beneficial to other industries.  This type of project is what Harsco does on a worldwide scale, having upwards of 160 sites for harvesting steel by-products, located in 37 countries.  The work being done by Harsco is tremendous in that they are finding a solution for industrial by-products, which can be harmful and wasteful, and turning them into a positive output that is environmentally conscious.

Harsco is not just invested in executing their business endeavors with the utmost supremacy, but also in cultivating a culture focused on the notion of “zero harm,” throughout various aspects of life.

This arrangement between these two companies is one that will be mutually beneficial, but will also serve the greater good of humanity and contribute to the preservation of the environment.  To read further on this topic, check out this article from the Times of Oman.

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Global Entrepreneurship Summit in Dubai Provides Great Advice for Aspiring Entrepreneurs

The global entrepreneurship summit of Arabia took place at Dubai in late December. The summit had a great panel of speakers and networking opportunities for young entrepreneurs. In going from lecture to lecture, the main points are summarized below.

First, that entrepreneurship is not something that can be taught in an academic setting but rather is something that must be simulated in hands on environments. This coupled with mentoring from local leaders is the perfect approach to teaching entrepreneurship. Secondly, that entrepreneurship does not require a college degree. Although it is helpful to have an educational background prior to going into an entrepreneurial venture, the main selling point is experience over a degree. Companies will look to see that you have some educational experience but the real world, hands on experience goes further.

The third main take away from the summit was the importance of active and focused conferences. In an era where technology makes information sharing easily accessible, conferences now must achieve their differentiation in more than just the content. This is done by delivering the message in an active maybe even humorous and focused manner.

Finally, the need for collaboration in this era is essential. Entrepreneurs must utilize what new technologies have allowed in the way of communication. Information sharing as stated above is just the tip of the iceberg. Collaboration in idea generation, innovation, and every other functional area can dramatically increase the efficiency of an operation.  For the entrepreneur, it can help in creating the value proposition for a viable business.

For Oman, these lessons are crucial in expanding the market for entrepreneurs. With limited business currently available, the possibilities are endless. However, the right guidance and mindset could lead to a quick launch in the market of Oman.