Transforming the oil and gas industry through cutting-edge technologies
Muscat: To enhance efficiency, safety, and sustainability, the oil and gas industry sector is embracing a range of cutting-edge technologies while contributing to Oman's In-Country Value (ICV) goals.
Cutting-edge technologies help to extract, refine, and distribute oil and gas resources while the ICV program in Oman aims to develop the skills of country's workforce and
increasing in-country spending on local goods and services.
For this, SERVILINK, a renowned group of companies established in India and a platinum partner of Rockwell Automation has entered a strategic partnership with Heyad
LLC, an associate partner of Majees Technical Services LLC in the Sultanate of Oman.
Jagdish Shukla, Director, SERVILINK Systems and Manager, SGH Energy Systems, said SGH Energy Systems is aimed at delivering cutting-edge solutions while
contributing to Oman's In-Country Value (ICV) goals.
Mohammed Al Shaidi, Manager of Heyad LLC and SGH Energy Systems LLC, said that this partnership aligns with Oman Vision 2040 by focusing on fostering economic
diversification and driving technological advancements within the Sultanate.
'By leveraging SERVILINK's expertise and Heyad LLC's local market presence, the collaboration seeks to provide innovative and high-quality automation solutions that
cater to Oman's industry,' he said at the press conference on Tuesday SGH Energy Systems is participating in the Oman Digitalization and Digital
Transformation, Industrial Communication Systems, and Instrumentation Control and Automation Forum (DMS Event) which is being held on February 25 and 26 in
Muscat, alongside Majees Technical Services.
SGH Energy Systems specializes in a wide range of solutions, including industrial automation (DCS, PLC & RTU Panels), purge panels and wellhead control panels
(WHCP), SIL-2 and SIL-3 emergency shutdown (ESD) systems, legacy system migration, industrial battery chargers, DCDB, and DCSP, substation SCADA, electrical
panels (IEC61439 Type Tested MCC Panel, IMCC, MCC, APFC, VFD, and PDB), detail engineering and skillset upgradation, OT cybersecurity, industry 4.0, and AI-Based
Vision Analytics.
SGH Energy System's vision is to add value to Oman's industrial automation capabilities, fostering local talent, and ensuring alignment with Oman's aspirations for
sustainable industrial growth and technological progress.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Observer
13 hours ago
- Observer
Opportunity Oman: Real estate market and its vital role in economic growth
Oman's real estate sector is undergoing a dynamic transformation, playing a crucial role in the nation's economic growth. The sector's evolution has positioned it as a cornerstone of Oman's economic development strategy, contributing significantly to job creation, attracting investment, and boosting the national GDP. A significant impact of Oman's thriving real estate sector is its contribution to job creation. The industry generates employment across various sectors, from construction and architecture to property management and real estate broking. The ripple effect extends to supporting industries, creating a robust employment ecosystem. Market analyses suggest that for every direct job in real estate development, approximately three indirect jobs are generated in related sectors. According to the 7th edition of the Al Habib Annual Property Market Report series that provides latest up to date insights for the economy and Oman real estate market, a soft optimum in a period of continued stability. The government's Vision 2040 strategy recognises real estate as a key pillar in reducing the country's reliance on oil revenues. By developing a strong property market, Oman is building a more diverse and resilient economy. This transformation is evident in the growing number of mixed-use developments and integrated tourism complexes (ITCs) across the country, creating new lifestyle opportunities for residents and visitors. Oman's progressive policies have made it increasingly attractive to both foreign and domestic investors. The government's new investor visa programs, offering residency options for property investors, have been highly effective in attracting foreign capital. The real estate sector's influence extends far beyond property development. The tourism industry has experienced significant growth through the construction of hotels, resorts, and leisure facilities. The banking sector has benefited from increased demand for mortgages and property financing products, contributing to the overall development of Oman's financial services industry. This interconnected growth has created a robust ecosystem that supports sustainable economic development across multiple sectors. The construction sector has also seen substantial growth as demand increases for residential, commercial, and tourism properties. This growth has created a positive cycle of economic activity, supporting various auxiliary industries and services, from building materials suppliers to interior design firms. The Ministry of Housing is playing a significant role in improving the business environment in the real estate sector in the Sultanate to encourage local and international investors. Market performance has been notably strong, with trading volume experiencing a 6% rise in 2023. In the first quarter of 2024, the total value of real estate trading reached RO 587.5m, according to the National Centre for Statistics and Information. Foreign investment has been particularly robust, with Kuwait leading the charge in 2023 (RO2 6.7m across 319 deals), followed by India (RO 12.2m in 70 transactions) and the United Arab Emirates (RO 5.3m across 319 transactions). The government's progressive policies have enhanced Oman's appeal to both foreign and domestic investors. The Investor Residency Programme, offering 5 to 10-year residency options for property investors, has proven highly effective in attracting foreign capital. This success is evident in the increasing number of international investors choosing Oman as their preferred regional investment destination. Several major developments are driving sector growth: - Sultan Haitham City and new city projects in Salalah, Sohar, and Sur. - Development of new economic zones and industrial hubs. - Expansion of integrated tourism complexes (ITCs) and luxury hospitality projects. - Significant infrastructure investments in road networks, airports, and planned public transportation systems. These projects are strategically positioned to meet rising regional and international demand while creating new lifestyle opportunities for residents and visitors alike. The sector is expected to attract approximately 70% of total foreign direct investment (FDI) in Oman in the coming years. The government's focus on infrastructure development has been particularly noteworthy. Major investments in road networks, airports, and planned public transportation systems are enhancing connectivity and creating new growth corridors for real estate development. These infrastructure improvements are not only making various locations more accessible but are also opening up new areas for development and investment. While the market shows strong potential, it faces certain challenges that are being actively addressed. Market liquidity, while improving, remains an area for development. The government's continued focus on economic diversification is helping to reduce the market's exposure to oil price fluctuations. Additionally, efforts to streamline property registration processes and enhance market transparency are making it easier for investors to participate in the market. Looking ahead, Oman's real estate sector is positioning itself for sustainable growth. There is an increasing focus on green building practices, which appeals to environmentally conscious investors and tenants. Plans for improved public transportation infrastructure, particularly in Muscat, are expected to enhance property values and accessibility across different locations. With strong government support, progressive policies, and growing investor interest, the sector is well-positioned to continue its role as a key driver of economic growth and development. The combination of strategic government initiatives, market reforms, and innovative development projects creates a compelling environment for both domestic and international investors. As Oman continues to develop its real estate sector, it strengthens its position as an attractive destination for property investment while building a more diverse and resilient economy for future generations. Dr Yousuf Hamed al Balushi The writer is founder and CEO - Smart Investment Gateway, economists, board adviser & business transformation mentor.
Observer
13 hours ago
- Observer
The silent SME killer: The late payments challenge
'If you raise this issue, you will never do business with our entity again.' This stark threat, shared with me by a determined entrepreneur, didn't come from a shadowy figure. It came from a director at a government entity — punishment for simply asking about a payment her small business was owed for work completed, over a year prior. Across the emerging Sultanate of Oman's business environment, a silent challenge festers: the systemic, damaging culture of late payments to SMEs and start-ups. Having worked alongside Omani founders for years, I've witnessed the hidden toll. The talented innovator sweating over payroll. The promising start-up owner draining personal savings just to survive while waiting for a client to finally settle an invoice. With SMEs making up a colossal 98 per cent of registered companies in Oman, this isn't a minor irritation, it's an economic stranglehold. As we push hard for economic diversification, smoother business processes and attracting investment, allowing this cash flow crisis to continue is like trying to win a race with concrete blocks tied to our feet. Why Do Payments Disappear? Large entities, whether public entities or private corporations, understand the vulnerability of smaller suppliers. Adding to this is over-processing quicksand, sometimes referred to as bureaucracy, particularly within the public sector and large companies. Complex approval chains, lost paperwork and outdated procurement systems can turn weeks of waiting into months, or even years. While improvements are happening, Oman's public sector still wrestles with this inefficiency. Sometimes, the delay is deliberate. Cash flow management becomes a weapon, with larger players essentially using SMEs as an interest-free credit line to bolster their own liquidity. This practice isn't just unfair; it's corrosive. Underpinning all this is insufficient enforcement and a troubling cultural acceptance. The Crippling Ripple Effect Late payments do not only slow down SMEs growth, they also slow down their contribution to Oman Vision 2040 goals. They starve these vital businesses of the working capital needed for daily operations, paying staff, buying supplies, covering rent and investing in growth. Too many potentially successful ventures collapse simply because they run out of money waiting for payments they've rightfully earned. When survival is the overwhelming daily focus, there's no capacity to invest in research, hire new talent, or explore new markets. Ultimately, this creates a significant drag on our entire economy. Unhealthy SMEs mean lower tax revenues, fewer jobs created and slower overall economic progress — directly undermining our national vision. Perhaps most damagingly, it erodes the fundamental trust necessary for a dynamic business environment. Best Practices We are not alone in this struggle. Our GCC neighbours face similar challenges, offering valuable blueprints for action. Saudi Arabia took decisive steps with its "Watiq" platform to track government payments and implemented stricter penalties for delays. The Saudi Central Bank (SAMA) also actively champions supply chain finance solutions. The UAE enacted Federal Law No (2) of 2020, mandating 30-day payments for private sector dealings with SMEs (extendable to 60 days only with mutual agreement). Dubai further strengthened this with its "Prompt Pay" policy for government contracts. The European Union's Late Payment Directive sets clear 30-day limits (60 days for public bodies) and empowers SMEs to claim substantial late payment interest and compensation. Oman Needs Bold Solutions Mimicking regulations isn't enough. Firstly, we must mandate and enforce with real teeth. We need a robust Omani Late Payment Law establishing strict maximum payment terms. Critically, this law must impose automatic, significant penalties for late payment. These should include substantial interest and fixed compensation that kicks in without forcing the SME into a costly legal battle. Technology offers powerful tools. We should actively foster 'invoice trading platforms'. These fintech solutions allow SMEs to sell verified invoices (especially those owed by government or large corporates) to investors for immediate cash, albeit at a small discount. This transfers the waiting risk away from the vulnerable SME, providing instant liquidity. Globally, such platforms are proving transformative. Leadership must start at the top. The public sector must become the role model. Implement real-time digital tracking for all SME invoices moving through government approval stages, with strict internal deadlines and clear accountability for delays. Creating an official, secure (and initially anonymous) platform where SMEs can safely report chronic late payers would be powerful. The Time for Action is Now Solving the late payment crisis isn't about charity; it's an absolute economic necessity. It demands unwavering policymakers' will, innovative financial mechanisms, rigorous enforcement, and a fundamental cultural shift where paying SMEs fairly and promptly becomes an unquestioned norm. Having sat with founders facing this relentless pressure, I know the human cost is immense. Let's end the silence, stop choking our most vital businesses, and finally unleash the true potential of Omani SMEs. Our economic diversification, our growth, our future, they all depend on it. The time for excuses is over. The time for decisive action has arrived.
Observer
14 hours ago
- Observer
Oman's non-oil exports fall 16% as Duqm fuels refined oil surge
MUSCAT: Oman's non-oil exports declined by 16 per cent in 2024, even as refined oil shipments surged, underscoring the economy's continued dependence on hydrocarbons, according to a new report by Enjaz Consultancy. The May 2025 edition of Enjaz's Economic Analysis Series, authored by well-known Omani business personality Dr Mahmood Sakhi al Balushi, reveals that crude oil still accounts for 45 per cent of total exports. Refined oil exports, fuelled by the Duqm refinery, doubled to reach 17 per cent of export volume, partially offsetting a sharp downturn in non-oil sectors. 'Excluding crude, Oman's trade balance continues to register deficits despite oil price gains,' said Dr Al Balushi. Non-oil exports declined for a second consecutive year—down 1.1 per cent in 2023 and 16.3 per cent in 2024—while overall imports rose by 12 per cent, adding pressure to the current account. The UAE remained Oman's largest trading partner, with both exports and re-exports rising over 10 per cent in 2024. Imports from the UAE also topped RO 4 billion, according to the report. Trade with Kuwait strengthened, reflecting increased demand for minerals and equipment linked to Duqm's industrial expansion. Imports and re-exports surged, making Kuwait one of Oman's fastest-growing trade routes. Meanwhile, trade with Saudi Arabia weakened, with exports and imports down 19 per cent and 30 per cent respectively. New coastal infrastructure, including Al Suwaiq Port, helped boost re-export activity with Iran. Despite spikes in energy-linked exports, Oman's trade deficit (excluding oil and gas) has remained consistent over the past decade. The report shows non-oil exports now account for just 28 per cent of total export value—highlighting a key vulnerability as the country implements Vision 2040 economic reforms. Imports surpassed RO 6.5 billion last year, with the top sources being the UAE, China, and a wide 'Others' category that includes emerging markets. The report calls for intensified export diversification to address structural imbalances. Analysts say Duqm's refining and logistics capacity could anchor future non-oil growth if matched by industrial policy and foreign investment. 'Refining gains are clear, but sustainable trade surpluses require broader value-added exports,' Dr Al Balushi noted.
