71% Omani firms targeting growth
A significant 71 per cent of the companies in Oman are targeting growth and higher market share in 2014, according to a survey conducted by Hay Group, global management consultancy.
As many as 868 organisations from 14 countries participated in Hay Group's Middle East business outlook study for 2014, of which 45 companies participated from Oman.
Speaking to Muscat Daily, Harish Bhatia, managing consultant at Hay Group Middle East who led the study, said that 71 per cent companies in Oman are focused on growth, higher market share and increased profitability in 2014, compared with 82 per cent of businesses in the Middle East that are targeting growth this year.
“There is a realistic appetite for growth in the region in 2014. While around 56 per cent companies in Oman saw an revenue growth of over five per cent in 2013, around 38 per cent companies are forecasting over 15 per cent revenue growth in 2014.” he said.
“We see Oman’s government looking at larger infrastructure spending, diversifying the GDP contribution to the tourism sector, and constantly focusing on growing industries in Sohar and Duqm. Local businesses are attracting investments due to the stable environment,” he added.
“In Oman, oil and gas is still a very strong sector and we see few, but large projects in the pipeline, bringing in more employment and opportunities. Nearly two-thirds of the GDP still comes from the oil and gas sector,” he said.
“However, like other gulf governments, there is an effort to make this a smaller portion of the total contribution to GDP,” Bhatia said.
The survey found that 82 per cent of businesses in the Middle East are targeting growth in 2014 and, of this, 87 per cent estimate growth to be five per cent or higher.
“Effectively, 69 per cent of the businesses in the region are focused on achieving their strategic objectives in the medium term of 12 to 18 months,” said Bhatia.
The study also said that in the case of Omani nationals, the attrition rate was higher at around six to eight per cent for junior-level jobs and three to five per cent for senior-level jobs.