[BB]We will have to live with competition in the new world order. Everyone is free to produce and sell whatever he likes. Only those who give better service will be the successful sellers
The future of Oman's industries lies in exports. Industries which understand the intricacies of global business will be the one which will see growth," says Mohsin Haider Darwish, a doyen of Oman's business sector.
"The Omani market is very small and anybody wishing to set up an industry should have a clear vision and a very strong marketing team with a focus on exports. Industries which focused on exports earlier on are doing very well. It is only those who are not exporting and which are not strong on marketing, are facing stagnation," he says. "Wrong judgements is sure to cost a great deal. Before anyone starts an industry, he should study the market well and look at what is going to happen to the products."
Though the export market is dependent on the products manufactured, Europe, Russia, Africa, the Gulf and the CIS countries are potential destinations for Omani products. Iran as well is very promising and Oman has very good relations with the country, he says.
Darwish feels the growth of the industrial sector in Oman is very encouraging. "I am confident that now, with the government trying to diversify the national economy away from oil and putting more emphasis on other industrial projects, the manufacturing sector should do well."
The government is going ahead with big projects such as the aluminium smelter, the Oman-India fertiliser project, the Sohar refinery, etc. This should propel the industrial sector to new heights, he says.
The government is also encouraging the private sector to go into industries, they give soft loans and assistance in other forms. "However, this is not enough. Industries need protection and incentives. Though protection is not a policy of the government now, a committee has been formed by the government to find ways and means to assist not only the industrial sector but the entire business sector in Oman, without affecting the rules and regulations of the Word Trade Organisation."
Darwish says there is some concern among businessmen and industrialists over the impact of the country's entry into WTO. "Naturally, there is going to be a lot of dumping. I hope that will not affect small industries. I think the government will look into this and see that the local industries do not suffer. Already, the government is thinking of taking firm steps against dumping."
"We are lucky that we have got a Minister of Industry and Commerce who is also a businessman. So he knows the problems the community is facing very well."
Speaking on the difficulties faced by some industries, Darwish says it is not peculiar to Oman. "You cannot expect every company to succeed. However, there has to be some reasons for the problems. They may be due to mismanagement or under capitalisation. If a company is managed properly, if it is financially strong and has a good team of people working for it, I honestly think that there is no reason why it should not succeed. These three elements are the main pillars of a successful business. If one pillar is missing, there is going to be a problem," continues Darwish.
He is positive that the recent changes in the foreign investment law will bring about investments in high technology areas. "Already I have been contacted by some companies who are interested in setting up units in Oman," he says.
Commenting on the belief in some quarters that the mushrooming of too many industries of the same nature is creating unhealthy competition, Darwish says: "We will have to live with competition in the new world order. Everyone is free to produce and sell whatever he likes. Only those who give better service will be the successful sellers.
"Businesses also will have to keep margins low. The days when they could set their own margins are over," continues Darwish.
He says ensuring the quality of products is of paramount importance to an industry and backs the idea of industry bodies setting some standards for products.
"Without making good quality products, it may be possible to survive for some time, but in the long run people will not accept this. People are now willing to pay a higher price and get good quality products," he says.
However, he rules out price monitoring as a solution to end the price war among producers. "Within a country, it may be possible to reach an understanding locally, but what about products coming from abroad? If they dump products, all the local producers will suffer. We are living in a world where everybody wants to survive. It is survival of the fittest."
He says Oman's economy is doing well this year because of the high oil prices and next year could also be a very good year, depending on the oil prices. Added to this, the Sultanate has also started exporting LNG which is set to become a major revenue source. "I think we are in a very stable position at this stage," he says.
MHD has 10 divisions: automotive; electrical; engineering products; projects; building materials; gases; computers, office automation and telecommunications; personnel and administration; finance and procurement; and computer systems and internal audit. Its only manufacturing unit is the Gases Division (see separate report).
Darwish, 66, also holds key positions in several companies: He is the chairman of Special Oilfield Services Company; Mohsin Haider Darwish and Liwa Trading; Al Ahlia Holding Company, and the Commercial Bank of Oman. As chairman of the Investors Committee of ORYX Joint Investment Account, he is also the deputy chairman of ORYX Fund Limited (Guernsey).
He is a director in Darwish Ast, Oman Hotels Company, Oman International Development Company, Muscat Electronics Company, Oman National Dairy Products Company and Oman Abrasives.
Darwish is a recipient of His Majesty's Oman Medal Gr. III, Award of Appreciation. Also, the prestigious Gulf Excellence Award for the best Omani Businessman of the Year 2000 was awarded to him recently.
