There are no uneventful years. Only years that whiz past you faster than you can say "Turmoil!" As 2004 takes its final step towards being etched into history, the one thing that the year will surely be remembered for is the oil price gone crazy. From an average of $31 per barrel in 2003, the price of the benchmark West Texas Intermediary (WTI) peaked around $51 per barrel in early September, and was hovering around the $49-mark at the time OER went to Press in late November. Despite the war in Iraq getting over last year, the continuing geopolitical instability in the region ensured that the 'fear premium' remained high.

The reasons for such a high price, according to analysts, vary from the steady increase in the Asian economies' thirst for oil to the mixed signals sent by the Russian government with regard to Yukos' future and the speculative activity on the part of market movers. The truth may be a combination of all of these, and much more.

Another reason that is being cited now more regularly than ever before for the spiralling oil price is the systematic and utter dominance of the once brawny dollar by currencies such as the pound, the yen and the euro. From a little less than a dollar to the euro in January 2003, it takes $1.32 to buy a euro today (November 26, 2004), an increase of over 33 per cent in a matter of less than two years. The London P.M. gold price, or the afternoon fix as it is more popularly known as, ended 2003 at $417.25 which, incidentally, was that year's highest quoted price, and is today hovering around $451 (November 26, 2004).

The passing year saw the re-election of US President George W. Bush Jr for a second term in office, defeating John Kerry by a margin of 3 per cent of popular votes. This happened in the same year that saw the unearthing of the Abu Gharib prison abuse scandal, in which haunting images of Iraqi prisoners' abuse by some of the US and British troops were splashed across the media in US and elsewhere.

The year witnessed the death of Palestinian leader Yasser Arafat and UAE President Sheikh Zayed bin Sultan Al Nahyan in the month of November, and that of former US president Ronald Reagan's in June. In the worst natural disaster of the year, an Earthquake, measuring 6.4 on the Richter scale, killed as many as 628 people near north coast of Morocco on February 24, 2003. While OER has no record of the number of lives lost in 'man-made' disasters, some estimates put the death toll in just Iraq this year as high as over 10,000.

The year 2004 wasn't all about bad news, though. The Rover landed on Mars amid hopes that there might have been life on the planet. Two new chemical elements--Ununtrium and Ununpentium--were created while scientists in South Korea announced to have cloned human embryos. Ten new countries joined the European Union, bringing the number of member states grew to 25. The 63-year-old Michael Melvil became the first civilian pilot to steer a spaceship.
Closer home, UAE-based group won two mobile phone licences in Saudi Arabia while Oman itself witnessed huge advances in its privatisation drive, with the second mobile licence being awarded to Nawras Telecom, a consortia led by Qatar's Q-Tel, in June. In anticipation, the government formed a new mobile company, Oman Mobile, in March, and slashed tariff rates by up to 30 per cent.

Oman's media law was also amended, with the new law allowing privately owned radio and TV stations to be set up in the country. The Ministry of Manpower signed training agreements worth RO1.7 million with companies in the private sector in August. According to ministry statistics, 54,885 male and female job seekers were enrolled at the ministry from January 1, 2004 to October 31, 2004. And, 9,020 male and female citizens were selected for vacant posts in the private sector while 31,202 job opportunities were availed in the public sector.

True to its promise of giving the tourism sector a boost, the country saw the establishment of the Ministry of Tourism in June, with HE Rajha bint Abdulameer, formerly undersecretary at the Ministry of National Economy, being appointed as the Minister of Tourism. The Sultanate also saw the launch of a host of development initiatives, including the unveiling of $805-million The Wave seafront resort tourism project. The government relaxed the country's property laws, allowing GCC nationals to own property in the Sultanate. The country saw impressive advances in its stock market, the Muscat Securities Market (MSM), with the index posting over 25 per cent improvement over its 2003-end figures.

Hindsight is always 20:20. Whether disasters could have been averted or better progress made in the time now past has been and will always remain open for debate. But that is what life is all about - a potent mix of struggles won and lost, opportunities missed and gained, and feats accomplished and failed.

While we acknowledge that it is, of course, impossible to capture all the events and happenings of the year in a few pages, this is our attempt at chronicling the major events that we think may have an impact on the time to come.

Budget 2004 unveiled

HE Ahmed bin Abdulnabi Macki, the minister for national economy and vice-president of the Financial Affairs & Energy Resources Council, announced a growth-oriented deficit budget. Projected revenue and expenditure were RO2,925 million and RO3,425 million, respectively, leaving an anticipated deficit of RO500 million. The government was planning to borrow RO240 million from domestic and overseas markets to partially cover the budget deficit. However, this deficit of RO500 million was based on a projected conservative average oil price of $21 per barrel. With Oman's crude oil price for the month of May 2004 reaching $35.45 per barrel, the highest for 20 years, the projected deficit should have turned into a surplus. However, declining PDO production may have reduced the amount of final surplus recorded in 2004.

Budget Highlights

? Negative growth of 9 per cent in GDP due to anticipated decline in production.
? Oil production estimated to drop to 710,000 bpd against 763,000 bpd budgeted in 2003.
? RO500 million deficit budgeted based on oil price of $21 per barrel.
? Investment expenditure projected at RO912 million - an increase of 48 per cent arising mainly from LNG and oil condensate investment expenditure of RO255 million.
? Corporate tax revenue budgeted at RO55 million.
? Customs revenue estimated to rise by 10 per cent to RO55 million.
? The government was to divest 30% of Omantel's equity.

Al Kamil Power plant inaugurated

The 285MW Al Kamil Power Plant was opened by HH Sayyid Shabib bin Taimour al Said, advisor for environmental affairs to HM Sultan Qaboos bin Said. The RO48 million plant consists of three GE 9E gas turbines and would replace diesel plants in the wilayats of Sur, Al Kamil Wa'l Wafi, Bilad Bani Bu Hassan, Al Mudhaibi and Al Mudhairib.

Salalah gas pipeline inaugurated

HE Sheikh Mohammad bin Ali Al Qatabi, minister of state and governor of Dhofar, inaugurated the RO68 million Salalah gas pipeline at Raysut Industrial State. The 700-km pipeline is expected to produce 4 million cubic metres of gas a day.

Spirit rover lands on Mars

The Spirit rover survived the plunge through the Martian atmosphere after a seven-month voyage from Earth. The second rover, Opportunity, also lands on Mars.

Fahud-Sohar gas pipeline project inaugurated

HE Ahmed bin Abdulnabi Macki, minister of national economy, inaugurated the 300-km Fahud-Sohar pipeline project worth RO47 million on the OGC site at Sohar Industrial Port. The project allowed the transport of 91.5 million cubic metres of gas per day.

Smart ID cards launched

Oman became the first Arab country to introduce a machine-read smart card with stored thumbprint when the country's first ID card, belonging to His Majesty Sultan Qaboos Said, was issued in the first month of the new year.

RO105 million power plant inaugurated

HE Sayyid Badr bin Saud bin Hareb Al Busiadi, minister of defence affairs, inaugurated the 242MW and RO105 million Salalah power project. The new power station replaced diesel-fired stations in Salalah, Raysut, Mirbat, Sadah and Thumrait.

Virus affects millions of computers

Worm, called My Doom or Novarg, spread through Internet servers. About 1 in 12 e-mail messages got infected and 1.2 million computers got effected in just 24 hours! This was perhaps the worst virus till date.

US begins fingerprinting foreign visitors

The United States began fingerprinting and photographing visitors from most countries in a controversial programme to try to prevent potential terrorists from slipping in by plane or ship.

Report exonerates Blair

British judge Lord Hutton said Prime Minister Tony Blair did not intentionally exaggerate intelligence on Iraq's weapons.

Parmalat scandal unearthed

The much publicised unravelling of Italy's eighth-largest industrial empire, the food giant Parmalat, caused reverberations around the world. The flagship Italian producer of some of the most popular dairy products, collapsed, and its founder Calisto Tanzi was jailed. Major players from the world of finance were also under scrutiny.

Former Enron CFO pleads guilty

Andrew Fastow admitted to covering up Enron's financial woes and defrauding the company. His wife, Lea, pleaded guilty to a tax felony.

The Wave tourism project unveiled

Oman's largest tourism development project till date--The Wave seafront resort--was launched in February. Stretching along 7.3 km of pristine beachfront just west of Muscat and occupying 195 hectares (2mn sq m), the $805 million (RO 310mn) resort project is being developed with the help of the Dubai-based Majid al Futtaim Group, which committed RO35mn to develop Phase I of The Wave later in September 2004. The project involves land reclamation, infrastructure development and site improvement including a golf course and a marina.

''The Wave is designed to contribute to the experience of Oman, a country with a fascinating heritage and astonishing natural beauty,'' explained HE Mohsin bin Khamis Al-Balushi, Oman's undersecretary of tourism, at the launch party. "We have a clear vision for The Wave which will be a fully integrated premium tourism and residential resort in Oman. The country offers graceful living in an authentic atmosphere unspoiled by commercial excesses, and is not flooded by low-end package tours," he had said at that time. The Sultanate promised to contribute the original land and part of the equity, and domestic and international investors were invited to join forces with the government.

Halliburton accused of overcharging for gas

Two former employees claimed that the oil services company, which secured no-bid contracts for reconstruction projects in Iraq, "routinely overcharged" the US military. Halliburton, formerly headed by US vice-president Dick Cheney from 1995 to 2000, was under investigation by several government agencies.

The company drew criticism from Senator John Kerry and other Democrats during the election campaign later in the year because of the no-bid contracts it received for much of the Iraqi work, especially after military auditors found evidence of possible overcharging for some work.

Halliburton executives said previously they expected criticism to die down after the election and that the company's share price, which trades at a discount to its peers such as Schlumberger and Baker Hughes Inc., would rebound. But the company still faces a number of problems over its Iraq contracts.

In the latest move, the US Army Corps of Engineers' top contracting official called for an investigation into the award the of multi-billion dollar contracts to Halliburton, calling it the worst case of contracting abuse she had seen.
Bunnatine Greenhouse, in a television interview, said, ''It was misconduct, and part of the misconduct was blatant.'' At the centre of Greenhouse's complaint is a no-bid contract worth $7 billion (RO2.7 billion) awarded last year to KBR to rebuild Iraq's oil industry. US auditors have also accused KBR of being unable to account for over a third of the items it handled in Kuwait under a work order for the US occupation authority in Iraq.

In addition, the US Army is threatening to withhold payment of 15 per cent, or about $600 million (RO230.77 million), of Halliburton's bills because of a dispute over whether KBR properly documented its bills for feeding and housing troops in Iraq and Kuwait. Halliburton has consistently denied any wrongdoing in its work in Iraq, where KBR's contracts have brought in $5.2 billion (RO2 billion) in revenues so far this year (till November) and about $8.8 billion (RO3.38 billion) since the start of the war last year.

GCC citizens can own property in Oman

A Royal Decree was issued allowing citizens of the Gulf Cooperation Council (GCC) to own property in Oman. "GCC citizens would be allowed to rent and own built real estate or land for the purpose of residence or investment in any member state and would be treated as citizens of the state where the real estate was situated," said the decree. But land acquired by a GCC citizen in Oman would have to be put to use within four years or the State would have the right to reclaim it back after "giving its owner appropriate compensation," according to the Decree.

Scientists clone human embryos

Scientists in South Korea announced that they had created 30 human embryos by cloning. The scientists had taken the genetic material from normal cells in women donors and combined it with their eggs. The resulting embryos were then grown up to produce so-called stem cells that could divide into any tissue in the body. The aim was to use the cells to replace ones that had failed in patients with problems such as Alzheimer's disease.

OLNG celebrates 10th anniversary

Oman LNG completed 10 years in the business. His Majesty Sultan Qaboos Bin Said had issued a Royal Decree on February 9, 1994, establishing Oman LNG as one of the Sultanate's biggest new industries. Oman LNG is one of the leading companies in the global LNG industry. It was reported that investments in the country's manufacturing sector had witnessed an annual growth of 44 per cent during 1997-2001, significantly because of the commencement of LNG production. Oman LNG, who would be setting up its third train of LNG at Qalhat, finalised a long-term sales contract for 1.6 million tonnes annually with Union Fenosa of Spain.

Pakistani scientist admits to selling weapons technology

Pakistan's chief nuclear scientist, Abdul Qadeer Khan, confessed to sharing nuclear technology with Iran, Libya and North Korea in a 12-page document presented to Pakistan president Pervez Musharraf, who later pardons him on popular demand.

Researchers report new elements

Scientists created two new chemical elements, named Ununtrium (Element 113) and Ununpentium (Element 115). Each had many more protons and neutrons in their nuclei than any naturally occurring elements found on Earth. The discovery would encourage researchers hoping to fill apparent gaps in the periodic table with 'islands' of stable, massive atoms that may exhibit new chemical properties and atomic shapes.

Bird Flu impacts business

Bird Flu (Avian Influenza) raced through poultry farms in a almost a dozen Asian countries from Japan to Pakistan, where tens of millions of birds were slaughtered in an effort to check its spread. Demand for boneless meat, estimated at 4,000 tonnes annually, was met almost exclusively from Brazil at higher prices.

Oman Mobile comes into being

In keeping with the government's policy of deregulating the country's telecommunications sector, Omantel announced the incorporation of a separate mobile company called Oman Mobile Telecommunications Company LLC. The new company became the first firm licensed to provide mobile telecommunication services in the Sultanate.
The establishment of the new mobile telecommunications company followed the issuing of two licenses for Omantel, the first for providing basic fixed general telecom services for 25 years and the second for providing basic mobile telecom services for 15 years, under a Royal Decree. As a part of its drive to extend its services, Omantel later introduced broadband to its customers.

PDO begins oil production at Zalzala

Petroleum Development Oman (PDO) began to produce oil from the Zalzala field, which is in the Harweel cluster of fields about 80 kilometres southwest of Marmul. The field has been producing oil and gas from a depth of some 5 km, making it PDO's deepest producing oil field.

Blair meets Gaddafi

In a State visit that marked Britain's willingness to welcome Libya back into the international community, British PM Tony Blair met with Libyan leader Moammar Gaddafi, saying that the two shared a common goal in defeating the al-Qaeda terrorist network. The British PM and the Libyan leader promised to battle terrorism.

The visit ended nearly 30 years of diplomatic isolation of Libya, which announced that it would surrender its nuclear weapons. Blair promised not to forget "the pain of past actions," such as the 1988 Lockerbie bombing by Libyan agents, which killed 270 people. But he added that Libya should be welcomed back into the international fold.
Britain has taken the diplomatic lead in ending Libya's international isolation, and Blair's visit--the first by a British leader since Gaddafi seized power in 1969--was seen as Gaddafi's reward for dismantling his nuclear weapons program and renouncing terrorism.

EU Commission rules against Microsoft

The European Commission (EC) fined the software giant Microsoft RO232 million ($603 million) and ordered the company to stop bundling its products, such as Windows Media Player, with its operating system. The EC ordered the company to sell a version of Windows in Europe with Windows Media Player software code stripped out.

This ruling raised the threat that the EC would regulate how Microsoft integrates new features into Windows. Microsoft had also been ordered to provide valuable proprietary software code and technical information to competing companies. Steve Ballmer, chief executive officer of Microsoft, had said that in spite of the ruling, the company "would continue to invest in new technology breakthroughs, and would continue to work to bring innovations."

Oman International Rally

Top rally drivers from the Middle East participated in the Oman International Rally, the third round of the 2004 FIA Middle East Rally Championship. The event was held under the patronage of the Royal Oman Police and Mohsin Al Balushi, Under Secretary of Tourism. The rally took place as a championship round for the first time since 1998, although the Oman Automobile Association ran a candidate event last October. Action started with a timed two-km Super Special stage in the wadi behind the Al Araimi Complex in Qurum. Nasser Al-Attyia from Qatar and Creis Patterson from Great Britain won the rally on their Subaru Impreza.

Highway ambulance service launched

The Highway Emergency Ambulance Service (HEAS) was launched at the Police Stadium, Wattayah. The service, the first of its kind, would provide quality and urgent pre-hospital medical care for road accident victims at the scene of a traffic accident. The Ambulance Unit was to operate from six round-the-clock service centres in Muscat Governorate initially, and was scheduled to expand to cover other parts of the Sultanate. Each team from the centre comprised of three first-aid specialists. The number was to be increased gradually.

Sultan Qaboos Chair at Harvard University

A chair was established at the Harvard University in the US in the name of His Majesty Sultan Qaboos bin Said. The 'Sultan Qaboos Professorship Chair in International Relations' would conduct research and teach contemporary international relations with special focus on the role of regional and global cooperation. A ceremony was held at Harvard University in the US to inaugurate Chair. HE Yusuf bin Alawi bin Abdallah, the minister responsible for foreign affairs, and HE Mohammed bin Ali bin Thani al Khusaibi, Oman's ambassador to the US, attended the ceremony.

US ends trade ban with Libya

Citing Libya's decision to end pursuit of weapons of mass destruction, US president George Bush lifted trade restrictions against the country. The US relaxed its trade embargo on Libya to allow US firms to buy Libya's oil and invest in its economy for the first time since 1986 in a reward for Tripoli giving up weapons of mass destruction.

White House spokesman Scott McClellan made it clear that the US actions stemmed from Libya's surprise decision on December 19, 2003, to give up its pursuit of chemical, biological and nuclear arms, and its work since to eliminate its stockpiles and programs. ''Libya has set a standard that we hope other nations will emulate in rejecting weapons of mass destruction,'' he had said.

Abuse reported at Iraqi Prison

CBS' 60 Minutes II broadcast graphic photos, taken in late 2003, of American soldiers grinning as they abused Iraqis in the Abu Ghraib prison. Images sparked outrage around the world, especially in the Middle East. British PM Tony Blair condemned the pictures but defended the thousands of other British troops serving in Iraq. A representative of the Mirror newspaper, which carried photographs of abuse on its front page, told CNN in London that the photographs were obtained from British soldiers who had returned from serving in the region. Blair had said: ''Let me make it quite clear that if these things have actually been done, they are completely and totally unacceptable. We went to Iraq to get rid of that sort of thing, not to do it."

Omantel launches MaxNet

The government's drive to usher in the digital age in the Sultanate received a major boost with the launch by Oman Telecommunications Company of its ATM Corporate Broadband Solution. The new service, introduced under the brand name MaxNet, was based on a nationwide multi-service broadband platform, which allowed the convergence of data, voice and video services.

Oman floats Electricity Holding Co.

In an attempt to establish a competitive power sector and to step up the privatisation process, the government floated a holding company named Electricity Holding Company.

Residency cards for expatriates

The Directorate General of Civil Status, Royal Oman Police, began issuing residency cards to all foreign workers in the public sector and their family members aged 15 years and above.

Suhail Bahwan is NBO chairman

National Bank of Oman (NBO) appointed a majority stakeholder as the new chairman of the bank. Shaikh Suhail bin Salim Bahwan replaced Khalfan bin Nasser Al-Wohaibi who stepped down after serving for 12 years.

Crude oil prices rise sharply

Oman's crude oil price for May reached $35.45 per barrel, the highest for 20 years. The price surge was attributed to the unstable situation in the Middle East.

European Union expands

Ten countries joined the European Union (EU)--eight of the formerly Communist Central and East European (CEE) countries (Czech Republic, Hungary, Poland, Slovakia, Slovenia, Latvia, Lithuania, and Estonia) plus Cyprus and Malta. This was the largest expansion in the history of the EU and will bring profound changes to Europe.

Future Iraqi PM named

Former exile Iyad Allawi was chosen to head an interim Iraqi government after sovereignty was to be handed back on June 30, 2004. The Governing Council endorsed Allawi--a Shia Muslim--unanimously. A UN spokesman said UN envoy Lakhdar Brahimi--who is charged with choosing the interim government--'respected' the nomination.

Picasso work sold for record price

Picasso's 1905 painting Boy With A Pipe sold for $104 million (RO40 million) at Sotheby's, breaking the record for an auctioned painting. The previous record was set by Vincent van Gogh's 1890 Portrait Of Doctor Gachet, which was sold to a Japanese billionaire for $82.5 million (RO31.73 million) in 1990 at Christie's.

Alan Greenspan gets fifth US Fed term

The US Senate confirmed Alan Greenspan as chairman of the Federal Reserve for a fifth and final term. The unanimous vote came just days before Greenspan's current term was due to expire and after he was re-nominated by President George Bush. Greenspan, 78, first became chairman in 1987 and has served under Presidents Reagan, Bush Sr. and Clinton.

Nawras bags second mobile licence

Nawras Telecom consortium, formed by Q-Tel along with TDC and Omani partners, won the public tender for the second mobile licence in Oman. Nawras Telecom intends to cover 60 per cent of the Omani population within the first six months of ots operations. Nearly RO654 million would be needed during the first 10 years and Nawras also paid RO40 million as licence fee to the government of Oman.

Nawras won this licence against a particularly strong international competition of 28 consortia including Vodafone and Orange as well as the elite of the regional operators with MTC and Cable & Wireless/Batelco. The company unveiled its corporate identity later in November 2004.

First SBI branch in Muscat opens

State Bank of India (SBI) opened its first branch in Muscat's Central Business District. This leading Indian Bank has group assets exceeding RO38.46 million and has injected an initial capital of RO0.5 million for its Oman operations.

Ministry of Tourism formed

Royal Decree No 61/2004 established a new Ministry of Tourism. HE Rajha bint Abdulameer, formerly undersecretary at the Ministry of National Economy, was appointed as the Minister of Tourism.

New government in Iraq

A Cabinet of 36 Iraqis assumed power from the Iraqi Governing Council. This Interim government was led by PM Iyad Allawi. Ghazi al-Yawar was named President. PM Allawi agreed to honour interim constitution, which recognised Kurds' autonomy and gave them a veto over new constitution, until elections in 2005. L. Paul Bremer III, the US administrator in Iraq, formally transferred sovereignty to Iraqi Prime Minister Iyad Allawi, who formally took oath of office.

Iraqis take custody of Hussein

Americans handed over legal custody of the former Iraqi dictator Saddam Hussein and 11 of his aides. The US, however, retained physical custody of the prisoners.

Ronald Reagan is no more

Ronald Reagan, the 40th president of the United States, died at age 93. He had been suffering from Alzheimer's disease.

Civilian reaches space

Michael Melvil piloted SpaceshipOne into space, becoming the first person to do so in a privately developed aircraft. Although supporters hailed the flight as a milestone in opening space travel to the public, serious problems marred the brief but historic voyage of SpaceShipOne. Melvill had to battle to stabilise the craft, and the vehicle barely made it to 62 miles in altitude, widely considered the threshold where space begins. Even with the problems, Melvill flew well beyond 50 miles, qualifying him for US astronaut status. After the flight, an official from the Federal Aviation Administration gave a tearful Melvill the USA's first "commercial astronaut wings."

Former Enron chief indicted

Former Enron chairman and chief executive Kenneth Lay, who ran the company as it grew into an energy trading giant and then fell into ruins as a symbol of corporate greed, was indicted for his role in the company's collapse. Houston-based Enron was the US' seventh largest publicly owned firm when it unravelled in the final months of 2001 amid disclosures that it had used off-the-books deals to hide billions of dollars in debt and inflate profits.

MSM 30 Index reconstituted

The Muscat Securities Market (MSM) restructured the components of the General Price Index (MSM 30). For the first time, insurance companies were included in the service sector. The restructuring was based on three criteria - firstly, market capitalisation, which was the crucial criteria for choosing index component, which represented a 45 per cent weighting. Secondly, liquidity of a company's share, a 40 per cent weighting, and, finally, financial performance of the companies at 15 per cent weighting. Nine new companies were added to the Index and as many removed. The MSM also underwent an image makeover later in the year.

Construction at Ground Zero begins

A ceremony was held in New York to mark the start of building on the skyscraper, which would replace the destroyed World Trade Centre. A 20-tonne granite block was laid as a cornerstone of Freedom Tower, planned to be one of the tallest buildings in the world at 1,776 feet (541 m).

The project, designed by visionary architect Daniel Libeskind, had been mired in controversy. Initial replacement designs put forward by the body, which controlled the site, were greeted with disappointment by the public. Anger at the perceived blandness of the proposals provoked a second competition to provide a master plan, which was won by Libeskind.

Oman rated 18th freest economy

The annual Economic Freedom of the World Report issued by the Cato Institute in America ranked Oman and Kuwait 18th and the UAE 16th out of 123 countries. The survey was based on five variables, which determine the economic freedom in a country. These five categories included the size of the government, which was determined in part by spending taxes, the legal structure and security of property rights, access to sound money that is not weakened by inflation rates, the freedom to exchange goods and services with foreigners and the degree to which business and credit and labour markets were regulated by the government.

Summer Olympics held in Athens

The XXVII games opened amid heightened security and sluggish ticket sales. Athens hosted 11,099 athletes; the largest number ever and also the most women athletes ever. Representatives from 202 countries took part, more than any other sport event. Before a crowd of some 70,000 and beneath a full moon and flourishes of fireworks, Greece bid farewell to the 2004 Olympic Summer Games. The US topped the medals tally with a total of 103 medals.

Privately owned radio and TV stations allowed

A Royal Decree was issued that allowed for the creation of private TV and radio stations in Oman. The Private Radio and TV Companies' Law allows Omanis to open up 'closed-share' broadcast outlets. A new Committee for Private Radio and TV firms is responsible for granting the new 10-year licences.

UAE-based group wins mobile licences in Saudi

A group led by the United Arab Emirates' Etisalat won two mobile licenses in Saudi Arabia. Etisalat would spend RO385 million to develop its business in the first year.

Google goes public

Google finally revealed the terms of its widely anticipated flotation. The company said it would sell as much as $2.7 billion (RO1.04 billion) of stock in the company. Number of shares offered to public in auction was reduced, with demand lower than expected. Price of shares was $85, lower than the $108-$135 range initially targeted.

Oil prices break the $50-a-barrel mark

Oil prices surged past the $50-per-barrel milestone in overnight trading in response to the triple threat of turmoil in the oil-rich countries of Nigeria and Iraq and a decline in production in the hurricane-battered Gulf of Mexico.

Ghattami is new OCCI chairman

HM Sultan Qaboos Bin Said named Salem Bin Said Al Ghattami, Majlis As'Shura member from Nakhl, as the new Oman Chamber of Commerce and Industry (OCCI) chairman. Al Ghattami took over from Abdullah Bin Salim Al Rowas, who was named Minister of Regional Municipalities, Environment and Water Resources

Wahaibi new CEO for OOC

Oman Oil Company named Ahmed bin Salim Al Wahaibi as its new CEO in place of David C. Douglas, who resigned earlier.

PDO strikes oil at Malaan

Petroleum Development Oman (PDO) struck oil in one of the Sultanate's most productive geological formations, giving a boost to the company's prospects. The oil was discovered in the Shuaiba formation in the Malaan area.

Merger forms world's biggest bank

Japan's Mitsubishi Tokyo Financial Group clinched a deal to take over rival UFJ Holdings who suffered due to bad loans. The deal formed the world's biggest bank with RO654 billion in assets.

Oman Qatar Insurance Co. formed

The Insurance market in Oman saw a new player with Oman Qatar Insurance Company (OQIC) starting operations. This is a joint venture between Qatar Insurance Company (QIC) and Oman-based Saud Bahwan group, Mustafa Sultan Enterprises and Jawad Sultan International. OQIC will be a nonlife insurance company and will cover risks relating to property, consulting and pecuniary or financial loss.

BankMuscat-NBO merger announced

BankMuscat, Oman's largest bank in terms of assets, and National Bank of Oman (NBO), which had been wilting under the burden of bad loans, made their first moves toward a merger. This is the biggest merger of financial institutions in Oman's history, which is expected to usher in a new chapter in the development of banking in the country.

MAF bags bid for The Wave

The Dubai-based Majid al Futtaim Group committed RO35 million to develop Phase I of The Wave. The project involves land reclamation, infrastructure development and site improvement including a golf course and a marina.

Final census results are out

Muscat emerged as the most densely populated city, according to final results of the Census. Oman's total population, including expatriates, stood at 2,340,815 with 27 per cent of them residing in the most developed city of the Sultanate, Muscat, which in size is the smallest governorate among the seven regions of the country.

GEM Conference held

The Gulf Enterprise Meet attracted over 25 leading business practitioners, government policy-makers, bankers, marketers, HRD and ICT professionals.

Al Kamil IPO oversubscribed

The RO5.7 million IPO of Al Kamil Power Co. was oversubscribed as the issue mobilised over RO6 million. Al Kamil entered the capital market on July 27, 2004, with an IPO of 3,368,750 shares at RO1.710 per share, aggregating to over RO5.7 million.

Oman Mobile launches 'Taif'

Oman Mobile's new mobile service, based on next-generation GPRS technology, was unveiled. Dubbed 'Taif', the service enabled post-paid GSM subscribers to experience the exciting world of Wireless Application Protocol (WAP) and Multimedia Messaging (MMS), and was based on General Packet Radio Service (GPRS) 2.5G mobile technology.

340 die in Russian school tragedy

Armed Islamic guerrillas, most of them Chechen, took about 1,200 schoolchildren, parents, and teachers hostage in Beslan. On September 3, the standoff ended in tragedy, as about 340 people died as the militants detonated explosives inside the school. On September 17, Guerrilla leader Shamil Basayev claimed responsibility for the terrorist attacks.

US Airways files for bankruptcy again

US Airways filed for bankruptcy for the second time in two years after failing to get unions to sign a cost-cutting deal. The airliner had been going through tough times due to pressure by low cost rivals, soaring fuel prices and a failure to win new labour concessions. The troubled airline agreed to a financial package in later in November that will give it access to much needed cash as it seeks to restructure its operations. The carrier has struck a deal with its biggest creditor, General Electric, to get a cash lifeline and to defer debts.

Government takes charge of airports

After nearly three years of private sector control, the government of Oman re-assumed the management of Seeb and Salalah airports. The Oman Airports Management Company (OAMC) had been managing the two airports since 2002. The much-publicised privatisation contact was awarded to a consortium made up of Suhail Bahwan Group, British Airport Authority Plc and ABB. The shareholders of OAMC, which was established in January 2002, were Capital Aviation Services LLC (75 per cent), the government of Oman (20 per cent) and Oman Aviation Services (5 per cent.).

The shareholders of Capital Aviation Services, a company incorporated in Oman, were Suhail Bahwan Group (47 per cent), BAA Plc (33 per cent) and ABB (20 per cent). In addition to the equity commitment, BAA also held a technical consultancy agreement for the duration of the concession. In a joint statement issued to the press, the Ministry of Transport and Communications and OAMC said: "The government appreciates the contribution that OAMC has made to Oman's aviation industry. Though many options were explored, the government and the partners of OAMC regret not to reach an agreement on the financial basis for the development of a new terminal at Seeb International Airport."

Sultan of Oman Chair

The Sultan of Oman Chair in Arabic and Islamic Studies was launched at the University of Melbourne, Australia. HE Dr Rawya bint Saud al Busaidiyah, Minister of Higher Education, attended the ceremony.

Lady minister for social development

His Majesty Sultan Qaboos Bin Said named a third woman minister. Dr Sharifah Bint Khalfan Bin Nasser Al Yahyaeiyah was made Minister for Social Development, thus becoming the third woman minister of the Cabinet rank.

Sports ministry created

A new Ministry of Sports Affairs was formed with HE Ali Bin Masoud bin Ali Al-Sunaidi, former undersecretary at the ministry of commerce & industry, as minister.

Jump in government revenues

Thanks to an 8.5 per cent surge in oil net revenues, Oman government's revenues rose by 17.4 per cent during the first seven months of this year, touching RO2,131.2 million, as against RO1,815.1 million during the corresponding period in 2003.

Report concludes no WMD in Iraq

The final report by chief weapons inspector Charles Duelfer said Iraq "essentially destroyed" all illicit weapons by the end of 1991 and had no such programs underway. The report also said Saddam Hussein had intended to resume weapons programme.

Skeletons of tiny people found

Australian and Indonesian archaeologists have unearthed skeletons of tiny people who are being called Homo floresiensis. These 3-foot-tall people had very long arms, heads the size of grapefruit, and are believed to have disappeared only 13,000 years ago, or perhaps even more recently.

Foreigners can own land in Oman

In a landmark decision taken by the Ministry of Housing, Electricity and Water, foreigners are to be allowed to own real estate in tourist resorts in Oman. Non-Omanis, both individuals and corporates, would be allowed to purchase and own real estates in licensed integrated tourist complexes once the bylaws are drafted and issued before the end of this year. The move is in line with the government's drive to encourage investment and attract foreign capital. Foreigners buying land within such complexes will be given four years to complete construction work.

Reliance in race for deepwater oil blocks

India's Reliance Industries (RIL) made a bid for acquiring an oil and gas block in Oman. RIL had put in a very aggressive bid in the Oman government tender for three Oman deep-water blocks. The blocks were believed to hold crude oil and condensate reserves.

Fifth phase of Sanad programme underway

The Sultanate of Oman would complete Omanisation of the foodstuff grocery stores in all the 59 wilayats by May 1, 2006. The fifth stage of Sanad programme for Omanising grocery stores started on November 1 and included 45 wilayats. Three regions had already completed Omanisation of grocery stores. They were Sharqiya, Dhahirah and Wusta.

Muscat hosts GCC Industrial Estates meet

The GCC Industrial Estates Meet, held at the Al Bustan Palace Hotel on November 29 and 30, 2004, covered issues such as developing and improving GCC-based industrial estates; establishing and managing estates; and encouraging and attracting investment into the region's estates. |

Landor Associates to promote Brand Oman

Oman will be promoted as a brand shortly, and an agreement for it was signed recently between the government of the Sultanate of Oman and Landor Associates, a leading international branding company. The deal will produce a brand strategy to promote the image of Oman and it will focus on four major sectors of the economy tourism, trade, education and information and communication technology.

Oman's mobile subscribers reach 664,893

The number of mobile phone subscribers in Oman reached 664,893 at the end of August, recording a whopping 124 per cent rise when compared to a year earlier, according to official statistics. Customers of the pre-paid Hayyak service accounted for 475,578 of the total.

India's LIC comes to Oman

In a bid to attract investments from the over 300,000-strong non-resident Indian (NRI) community in Oman, Bahrain based LIC (International) E.C., a 98 per cent subsidiary of the government-owned Life Insurance Corporation of India, launched three new products in Oman.

George Bush wins a second term

President George W. Bush was re-elected President of the United States. Bush led John Kerry by about 140,000 votes in Ohio after the polls closed on November 2, but uncounted provisional ballots resulted in delaying the official announcement of the winner. It was clear by November 3, however, that Kerry would not have enough votes to win the state even if the provisional ballots were included in the tally. As a result, the Kerry campaign conceded the election to Bush on November 3.

Pact on Muscat Golf Course project signed

An official signing ceremony, attended by consultants and project managers, was held at the residence of His Highness Sayyid Kais bin Tariq Al Said, promoter of Muscat Golf Course Project, to mark the next phase of work.

Sheikh Zayed dead

The veteran ruler of the United Arab Emirates, Sheikh Zayed bin Sultan al-Nahyan of Abu Dhabi, died at the age of 86. His son, Sheikh Khalifa bin Zayed Al Nahyan, was elected as the new President. Sheikh Zayed had been President of the UAE since its birth in 1971, and was a traditional figurehead.

Sheikh Zayed bin Sultan al-Nahayan, one of the world's wealthiest rulers, died at age 86. Streets were quiet, most businesses were closed and flags flew at halfstaff across the Emirates on November 3, the start of 40 days of mourning for the death of President Sheik Zayed. The Sultanate too declared a 3-day mourning.

Sohar Power signs $620m financing pacts

Sohar Power Company (SPC), which was in the process of developing Oman's largest independent water and power project in the private sector, signed RO238 million financing agreements with a syndicate of international and local banks.

Yasser Arafat is no more

Palestinian Authority President Yasser Arafat, 75, the leader who passionately sought a homeland for his people but was seen by many Israelis as a ruthless terrorist and a roadblock to peace, died on November 11 in Paris.
Arafat had been sick with an unknown illness that had been variously described as the flu, a stomach virus or gallstones. He flew to Paris October 29 seeking medical treatment and was hospitalised with what Palestinian officials said was a blood disorder. He had been on a respirator since slipping into a coma November 3
Ariel Sharon has announced that he would end his boycott of the Palestinian leadership and begin a new era of working with Yasser Arafat's successors. The Israeli prime minister said he was prepared to meet Mahmoud Abbas, the interim Palestinian president, who is the favourite to assume the role formally after elections. An opinion poll indicated late November that Palestinian Liberation Organisation Chairman Mahmoud Abbas is the leading candidate for Palestinian president, voting for which is scheduled for January 9, 2005.

Banking conference

Future Event, in association with Omantel and Scanit Middle East, is to organise a conference on banking, financial technology and security awareness from December 11- 12, 2004 under the patronage of HE Hamood Sangour Al Zadjali, executive president of the Central Bank of Oman. The conference will be an open forum for discussing the future banking and financial technology trends in the region especially e-banking.

Second annual CxO to be held

The second annual Chief Executive Conference (CxO), 2004, will take place on December 12 and 13. Some of the speakers at this premier business forum include: Alan Stevens, Director of MediaCoach UK, General Sir Michael Rose, Director, Control Risk Group and HH Sayyid Tarik Bin Shabib, editor-in-chief, Oman Economic Review. This event, now a regular annual fixture on the business calendar, is geared towards providing corporate top management with an opportunity to join their peers and take stock of events-- business and otherwise--of the previous 12 months and look ahead towards what to expect in the coming year.

Emerging Oman 2005

The Oxford Business Group, the publishing and consulting firm specialising in the markets of Eastern Europe, Central Asia, the Middle East and North Africa, has recently brought its flagship Emerging Markets series of annual country intelligence books to Oman. The eagerly awaited Emerging Oman 2005 is set for launch in December 2004 under the auspices of HE Maqbool Ali Sultan, the Minister of Commerce & Industry. The book promises to be the most comprehensive review of this exciting, dynamic and increasingly important economy ever produced.

Ron-dezvous with Kaufman

OER presents Marketing Guru Ron Kaufman, who will present a full-day seminar on 'Service Partnerships and Customer Focus' in Oman on December 7, 2004. The first part of the session, 'Up Your Service', will cover the different practical aspects of superior customer service. The second part, 'Up Your Service -- Insights', features true stories of winners and losers in the quest for superior service. The day concludes with an interactive and participatory Q&A session.

Mark set to become first person to kayak along Oman Coast

Adventurer Mark Evans will become the first person to kayak along the coastline of Oman, much of which is remote, unspoilt wilderness when he embarks on his seaexpedition two months later. Mark, who was duly recognised by Britain last year for his work taking young people on challenging educational ventures (Buckingham Palace invited him as a Pioneer of the Nation in October last year), will launch his 17ft kayak into the waters off Musandam on December 16, this year, as part of the Around Oman expedition. Several months, and 1,700km later, he will reach the border with Yemen, becoming the first person to kayak the coastline of Oman. The first leg of the journey--which will be from Khasab to Masirah Islands--will be done in December this year and the second leg next December.
The aim of Around Oman is not only to raise people's awareness of what Oman has to offer as a tourist destination, but also to raise funds for and awareness of the Oman National Cancer Awareness Group, set up by Yuthar Rawahy, herself a survivor of cancer, whose aim it is to promote a better understanding of the treatment and early identification of cancer in Oman

© Oman Economic Review 2004