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 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.

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.

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

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.

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

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.

 

Entrepreneurial Education in Oman

As  a proponent of educating young, ambitious minds in the skills and practices of entrepreneurship,  I was happy to see this article about a workshop that was put on recently at the Caledonian College of engineering, but on by Minister of Commerce and Industry.  The workshop was two days long, and directed at experienced educators and entrepreneurs, with the intent of examining and relating personal endeavors in entrepreneurial education- what are the most frequently-encountered roadblocks, what must be done to advocate teaching entrepreneurial skills at the level of higher education, and so on.

Oman’s economy is in need of young entrepreneurs with new ideas in order to expand and diversify the economy and help Oman to grow as a global business force. One issue preventing people from trying to climb the ranks of the business world is the wealth from the discovery of oil in the state, which has thus provided subsidies to citizens, keeping them wealthy and with no incentive to make money by way of business endeavors.

Efforts need to be directed toward Colleges and Universities as well, in that they are teaching entrepreneurial skills, as well as becoming entrepreneurial entities themselves. Small and Medium enterprises, known as SMEs are something that young aspiring entrepreneurs need to be educated about as well.  There needs to be a teaching of not only business tactics, but values as well- students need to be educated on why entrepreneurship is necessary, the possibilities it creates for an individual and the rewarding career that it offers.

 I feel that this workshop is a good place to start on raising awareness about how to educate and motivate people to become hardworking, successful entrepreneurs, but more needs to be done.  We need to have courses set up in universities that are dedicated to entrepreneurship- skills, history, economy, etc- we need to make all the information we have available and accessible to students.  Similarly, we need make businesses and entrepreneurs themselves aware of the need to diversify our economy and encourage them to offer help to small businesses that are just starting up, as well as offer their expertise and advice to these young people/businesses.  I am hoping to see development in not just the area of entrepreneurship, but in the area of education of the field as well.

Businesses Hiring in Oman: Potential Progress for Small Businesses

Qais al-Khonji’s New Post!

A recent article I came across discussed the job market in Oman and how things were starting to look better for my country.  I thought I would take some time to review this article and explain my own opinion on the current situation a bit.

The article showcases a survey conducted by Bayt.com and YouGov that indicate Oman as a country with one of the best employment opportunities and is hiring the most people to private companies in the upcoming three months.  This survey suggests that 33% of companies in Oman will definitely be hiring and another 21% of companies are likely to be hiring.  The survey includes these statistics for a great deal of companies in the Middle East and North Africa, noting that Saudi Arabia has the highest hiring expectancy in the upcoming 3 months (41% of companies definitely hiring) while Morocco has the lowest (17% of companies definitely hiring).  When this data is stretched to include the next 12 months, the data indicates that companies’ hiring rates should remain relatively the same, possibly with a slight increase.

Specifically, Oman businesses will be needing roughly 25 graduates specializing in business management, 23 specializing in engineering and 16 in the field of commerce.  There is also interest in graduates with administrative training, computer science qualifications and those with IT degrees, according to the study.  Similarly, a large portion of these jobs across the region will come from the private sector, led by large local companies, multinational companies and small-medium local companies.

It is good to hear that small-medium local companies will play a part in the hiring of young, intelligent graduates in the upcoming year, however, I worry that the larger businesses still may maintain a large upper-hand in the business world.  There is a low survival rate for small businesses, so it remains to be seen if, despite these young businesses hiring new employees, they will be able to stay afloat and expand.  Similarly, these well established businesses are not doing much in the way of aiding/partnering with 

That being said, this article does give me hope.  If smaller and/or newer businesses are given opportunities to flourish, I believe we will see a great deal of positive change in Oman’s economy.  These aforementioned companies have the potential to bring young, ambitious, aspiring entrepreneurs into the business world, allowing them to diversify the currently stagnant economy, bring about new, innovative ideas and lead Oman to a better future.

via Qais al-Khonji http://qaisalkhonji.net/businesses-hiring-in-oman-potential-progress-for-small-businesses/

Young Entrepreneurs: What’s Holding Them Back and What Needs to be Changed

As the CEO and founder of Genesis International, I am passionate about the expansion of business and entrepreneurship in Oman.  I recently came across this article in the Times of Oman, discussing a topic that I personally have a lot of interest in, which is young entrepreneurs in Oman and the difficulties they are having getting their ideas off the ground due to the way the business world is structured by the government.

There are such strict regulations and, “red tape,” as the article calls it, that make it extremely difficult for young, talented, aspiring entrepreneurs with great ideas to actually set their ideas into motion and see them flourish.  Rather, these restrictions tend to force these young people into unemployment.  In order to reach their goal, these young individuals are required to complete countless forms, paperwork and regulation checks that take extensive amounts of time and make it nearly impossible to get new businesses off the ground.

Due to these difficult procedures that make new business a rigorous and discouraging process, the economy is inevitably hindered greatly.  Similarly, this creates a monopoly situation for the large businesses that have been around for some time and keeps the economy stagnant.  In order for it to grow and develop, it is absolutely necessary that these fresh, new, young minds be allowed to enter.

The idea of new businesses is threatening to the established, “trade heavyweights,” but allowing new businesses would bring healthy competition and positive change for Oman at large.  These new entrepreneurs will lead Oman to a better, stronger future and will help to transform the economy to a more productive entity that offers a wider range of employment opportunities.

What needs to happen is a change in government agency policies in reducing the difficulty of their financing, licensing and labor requirements, along with business protection allowing more easily-navigated processes for small businesses to get off the ground, rather than block them with, “red tape” and convoluted steps to get through in order to reach their goal

Right now, start-up businesses are at an extreme disadvantage.  Many cannot even get off the ground, because they do not have the resources to do so, while those that do expand beyond the start-up phases do not last for long.  In fact, statics point out that a new small to medium sized business only has about a 30% chance of establishing itself for the long-term.  These small companies have the ability to significantly help with employment, but cannot survive for the long-run without the support of the government.

Oman needs to address the structural issues of the system, as these are the issues that prevent small businesses from establishing themselves. There needs to be a change-over from officials who have outdated ideas about the economy and business world to younger, more innovative, up-and-coming businessmen who can create changes for the better.  The government needs to lend a hand by supporting these young businesses and making it a requirement that businesses that are well-established partner with them in a mutually beneficial relationship so that both businesses can flourish, thus causing the Oman economy to do the same.

The future of Oman economy holds so much potential; there are so many bright, capable young minds who can take new businesses and the economy to great heights with their ideas.  I am hoping to see these changes start to come about so that this country can be the best it can be.