now or never · 2020-04-03 · now or never i oman ceo outlook 2 growth snapshot that growth has...

Now or never

KPMG Lower Gulf

January 2017

Oman CEO Outlook

ForewordFollowing the successful launch of the 2016 UAE CEO

Outlook in December, I am delighted to share with you

the perspectives of some of Oman’s leading CEOs. Over

the last three months, we have spoken to the key decision

makers at many of Oman’s most prominent businesses to

better understand how they are responding to the forces

and opportunities shaping the businesses they lead.

Across the Sultanate and across economic sectors, we

have discussed the strategic dilemmas CEOs in Oman

are grappling with – and how they plan to respond.

What we found was interesting. In a world which seems

set for more unpredictability and change than we have

seen for generations, Oman’s business leaders returned

time and again to the importance of stability – seen, along

with its location, natural beauty and the talents of its

people, as one of Oman’s enviable USPs. The recent

Tanfeedh discussions – which saw remarkable, dedicated

participation from many of the CEOs we spoke to – are an

important indicator of where the government sees the

Sultanate has a regional – and sometimes global –

competitive advantage.

I would like to thank the CEOs who have contributed to our

survey. Their inputs and insights provide a rich platform for

learning that will benefit leaders and key decision makers

here in the Sultanate and across the wider MENA region. I

should also take this opportunity to point you towards the

UAE CEO Outlook which was launched last December.

While some data from that report has been used as a

benchmark in this outlook, it may be of interest as a piece

on its own.

I hope you find Now or never insightful and thought

provoking. If you have any questions or comments, join the

discussion on our website (www.kpmg.com/om), follow us

on Twitter at #CEOoutlook, or connect with us on LinkedIn

- www.linkedin.com/company/kpmg_lowergulf.

Vijay Malhotra

Senior Partner and Chief

Executive Officer

KPMG in the Lower Gulf

© 2017 KPMG, KPMG LLP and KPMG Lower Gulf Limited, registered in the Sultanate of Oman and a member firm of the KPMG network of independent member firms affiliated with KPMG

International Cooperative (KPMG International), a Swiss entity. All rights reserved.

Table of contentsSnapshot

Executive summary

Where will growth come from?

What might the future look like?

What might change the future?

What about employment and talent?

Conclusions

Learnings from other outlooks

Methodology

About KPMG

2

3

5

7

9

10

11

12

13

14

http://www.linkedin.com/company/kpmg_lowergulf

Now or never I Oman CEO Outlook 2

Growth

Snapshot

That growth has buoyed

CEOs – 81 percent are

confident that their

organizations will grow

over the next three

years.

New customers are

seen as the most

important source of

new growth – and

organic growth (52

percent) is seen as the

growth engine.

Strategic direction

96 percent of Oman

CEOs think that a

persistently low oil

price will significantly

impact the Omani

economy.

Streamlining internal

processes (18 percent)

and forging new

alliances (15 percent)

were seen as the most

effective way of

accelerating strategic

execution.

Risk



Fostering innovation –

cited by 21 percent of

global CEOs as the

most important

strategic priority – was

cited by only five

percent of Oman

CEOs.

In Oman, the top three

risks – regulatory,

geopolitical and

interest rates – were

cited by well over half

of the CEOs we

interviewed.

Despite a lower oil

price, roughly a third of

Oman CEOs say annual

revenue has grown by

more than 20 percent

annually for the last

three years.

Developing and

managing talent

was seen as the most

important strategic

priority by Oman CEOs

(21 percent).

Over 80 percent of the

CEOs we spoke to in

Oman tended to feel

that they are taking

about the right

amount of risk in

pursuit of their

growth strategy.

Recent shocks to what seemed to be an increasingly

globalized world – from the UK narrowly opting for Brexit to

the election of Donald Trump as the forty-fifth president of

the United States – suggest that economic and political

landscapes are changing – and changing faster than ever

before. The CEOs that we spoke to are keenly aware of the

scale of the challenges they are likely to face over the next

three years, ranging from unpredictable geopolitical changes

to uncertain hydrocarbon prices, even if it is currently

unclear exactly what those challenges might be. Yet they

remain confident.

There are good reasons. 80 percent of the CEOs we spoke

to have seen an increase in revenue on an annual basis in

spite of a lower price for hydrocarbons.

Executive summary

CEOs in the UAE and Oman had interestingly different

impressions of the significance of three external factors.

Oman CEOs were relatively sanguine about a Chinese slow

down but were twice as likely to see higher interest rates

as a concern. A persistently low oil price was almost

unanimously seen as a challenge – although, as one

interviewee pointed out, this was something that was

completely out of anyone’s control.

Nevertheless, clouds could dampen enthusiasm,

particularly in the short term. Oman’s 2017 budget,

released on 1 January, forecasts a reduction in income

from hydrocarbons (a vital source of government revenue),

suggests non-oil and gas revenues will also drop, projects

spending cuts across the development and defense and

security sectors, and projects a budget deficit of RO3

billion, or 35 percent. Nevertheless, GDP is still projected

to grow in 2017 to RO25 billion – or two percent, slightly

less than the IMF’s latest projection of 2.5 percent for the

UAE but outstripping projections for other Middle Eastern

economies.

Over the next dozen pages, we summarize the views of

many of Oman’s leading CEOs on topics ranging from the

business pulse through corporate strategy to disruption

and innovation.

Now or never I Oman CEO Outlook3

Predicting the oil price

““ We are directly between

the projected growth

centers of China, India

and Africa. We have great

ports and world-class

infrastructure. And we

offer stability.



32%

28%

20%

8%

8%

4%

How has revenue changed over the

last three financial years?

Increase - >20%

Increase - 10%-20%

Increase - <10%

No change

Decrease - <10%

Decrease - 11%-20%

96%

88%

35%

18%

23%

24%

4%

6%

38%

59%

35%

59%

6%

27%

24%

42%

18%

A persistently low oil price - Oman

A persistently low oil price - UAE

Change in global interest rates -

Oman

Change in global interest rates - UAE

Chinese slowdown - Oman

Chinese slowdown - UAE

Assessing the impact of externalities

High Medium Low

80%

29%

20%

71%

12 months 3 years

Stay about the same Recover to well above $50

What are the experts around our global network saying?

John Veihmeyer

Chairman

KPMG International

Isabelle Allen

Global Head of Clients &

Markets

KPMG International

CEOs are telling us

the time for change

is now or never.

We are evolving towards a

world where what’s inside the

company and what’s outside

is not binary. CEOs can’t have

a proprietary or protective

mindset.

You can’t wait until you

have a satisfying level of

clarity, because you

might never get it.

Stephen G Hasty, Jr

Global Transformation

Leader KPMG International

To thrive in this new

environment, businesses

will need a much more

holistic, global view of their

overall tax management

over the three year horizon.

Jane McCormick

Global Head of Tax

KPMG International

Quotations taken from Now or never –

KPMG’s 2016 Global CEO Outlook

This Oman CEO Outlook loosely

follows the format of KPMG’s

global CEO report which was

released in June 2016. For that

report, we spoke to nearly 1,300

CEOs from many of the world’s

leading companies, located in 10 of

the world’s largest economies, to

better understand their views of the

forces and opportunities shaping

the businesses they lead.

We found that, while global CEOs

are confident in their ability to

successfully transform their

business, and to outperform the

general economic backdrop, they

also feel that the next three years

will be critical in shaping their

industry. Put simply, CEOs are

telling us the time for change is

“now or never”.

Despite the change enveloping their

organizations, and predicted global

economic challenges in the coming

12 months, these corporate leaders

are largely confident in their near-

term prospects. In fact, compared

to last year, they expressed greater

confidence in the growth of their

own company and the global

economy over the next three years.

These global CEOs are also alert to

many unfolding challenges. They

acknowledge a growing list of top

concerns, from shifting customer

loyalty to technologies that are

overturning traditional business

models. There are also a number of

additional critical issues that have

emerged recently, ranging from

cybersecurity risks to the need to

master advanced data analytics.

For more findings from our global

report, please see:

https://home.kpmg.com/xx/en/hom

e/campaigns/2016/06/ceo-

outlook.html




Where will growth come from?

While there was general confidence in the medium term with

81 percent of Oman CEOs confident or very confident that

their organization would grow over the next three years, this

contrasted significantly with the immediate national outlook.

With the budget projecting a 35% deficit in 2017 to add to the

2016 actual deficit, it is perhaps no surprise that over half of

the CEOs we spoke to weren’t confident that the economy

would grow over the next 12 months.

This is reflected in CEOs confidence in the growth of their

companies over the next three years. While eight percent

of CEOs were not expecting any growth – in some cases

because of particular circumstances – there was a clear

belief that organic growth (expanding their customer base

or entering into new lines of business or geographies) was

going to be the engine of future success. Inorganic growth

was also seen as contributing to further development –

while in the UAE only six percent of CEOs surveyed

believed this would be the main contributor to future

growth.

Although the government is projecting GDP growth of two

percent, it is clear that some businesses are currently

struggling with over a third of Oman CEOs suggesting that

their industry is in recession – or the initial stages of

recession.

On the other hand, once again there are reasons for optimism

with half of CEOs reporting slow growth across their industrial

sector.


54%

15%

23%

8%

Development plans

Organic growth

Collaborative growth

Inorganic growth

No growth

73%

79%

84%

65%

59%

94%

12%

46%

77%

86%

85%89% 94%

82%

94%

46%

65%

81%

Confident - 12 months Confident - 3 years

50%

12%

12%

Slow growth

Initial stages of recovery

Initial stages of recession

Recession

Where is your industry in the

economic cycle?



Confidence in growth – by nation, industry and company

Global CEOs UAE CEOs Oman CEOs

GDP Industry FirmGDP Industry FirmGDP Industry Firm

26%

Where do CEOs believe this growth is going to come from?

Given four options to choose from – new products,

customers, channels or markets – CEOs were clear: just

under half believe that new customers will be the most

important source of growth over the next three years. Among

other things, including Oman’s status as an emerging

economy, this suggests that CEOs believe that customer

loyalty is relatively weak. New products and new markets

combined represent more than half of the sources of growth.

The Tanfeedh program - a national program aimed at

enhancing and diversifying the national economy – which

began in September 2016 and brought together ministers,

undersecretaries and representatives of the private sector,

academia and civil society in ‘labs’ - full-time workshops - for

six weeks. Focusing on manufacturing, tourism, transport and

logistics, mining, and fisheries, participants were tasked with

brainstorming ways of raising these key sectors’ contribution

to GDP, increasing investment, and creating more job

opportunities.

There was general agreement among the CEOs we spoke to

that Tanfeedh was a considerable step forward. The need to

grow the private sector, generate wealth and employ

increasing numbers of Omanis, while reducing the role of the

government, particularly in terms of job creation, is

acknowledged by both the public and the private sector.

While CEOs in the UAE mentioned a number of factors that

could affect growth - from global economic factors and

geopolitical factors to current competitors and access to

talent – their peers in Oman were clear: domestic economic

factors outweighed all other factors combined. In fact,

domestic and global economic factors together made up 84

percent of suggested responses.

When looking at potential growth areas, almost all corners

of the globe got at least one mention from Oman CEOs:

““ Tanfeedh is a fantastic example of the

ability of Oman’s business leaders to

come together for the national good.

CEOs abandoned their offices – and

their personal agendas - for six

weeks.


25%

4%

42%

29%

Most important source of growth

New markets

New channels

New customers

New products

8%

4%

56%

4%

28%

Cost of doing business

Technology

Domestic economic

factors

Current competitors

Access to talent

Reputational/brand risk

Geopolitical factors

Global economic factors



18%

6%

6%

6%

29%

35%

What might impact growth?

Oman

UAE

25%

7%

6%

6%

2%

1%

7%

12%

18%

16%

Potential growth areas

GCC

ME

Europe

North America

Japan

Australia

China

Asian countries

India

Africa

In one of the most striking findings from our 2016 Global CEO

Outlook, 41 percent of the 1300 CEOs we surveyed said they

expected their organizations to be significantly different in

three years’ time. In 2015, only 29 percent of global CEOs felt

that would be the case. CEOs in Oman are even more

expectant of change – 62 percent of the CEOs we spoke to

believed that their organizations would have undergone real

change. The UAE outpaces both the global norm and the

Oman figure, with only one in four of the CEOs we spoke to

expecting their organization to be substantially the same in

three years’ time.

What might the future look like?

While there is general consistency between the top five

strategic priorities over the next three years for global and

Oman CEOs, the order is different. Fostering innovation

was the most important strategic innovation for 21 percent

of global CEOs but only five percent of Oman CEOs.


0% 20% 40% 60% 80% 100%

Oman

Global [2016]

Global [2015]

UAE

How different will your organization

be in three years?

Largely the same Significantly different

CEOs are gearing up for change. Some of this may be

imposed from the outside – whether the result of growing

protectionism or a stubbornly low oil price – but a lot of the

change is going to come from within. The Tanfeedh program

is only one of the drivers that impact the Omani economy, not

just in the long term but also in the short-term. There is a

generational change under way in C-suites across the

Sultanate with CEOs in their 30s and 40s assuming control.

Mindsets are changing with a clear understanding of what the

strategic priorities are, where CEOs are looking to invest, and

how they can accelerate the execution of their strategy.

5%

12%

6%

21%

6% 21%

19%

18%

18%

17%

Top five strategic priorities – Oman and

globalFostering innovation

Stronger client focus

Digitizing and implementing

disruptive technologies

Talent development &

management

Stronger branding and

communications

Global

Oman



11%

12%14%

14%

20%

24%

25%

22%

Top four investment areas for Oman and

global CEOs

Cognitive computing

Advertising and

marketing/branding

Acquisition of a business,

capabilities or assets

Geographic expansion

outside country

Business model

transformation

New product development

Oman

Global

8%

10%11%

14%15%

18%

What is the best way to accelerate

strategy execution?

Innovation has been an important buzz word in many business

leaders’ lexicons for some time. In Oman, CEOs have assumed a

number of different approaches to innovation – sometimes

driven by their approach to market, and sometimes driven by

other internal and external factors.

Our Global CEO Outlook suggests that there is a clear link

between approaches to innovation and growth. Global

CEOs of high-growth companies were more apt to put

themselves in the strategic category (45 percent) whereas

global CEOs of companies expecting growth of under 10

percent tended to put themselves in the accelerated

category (33 percent).

The example of China – an important source of foreign

direct investment for Oman having invested massively in

the port at Duqm – is useful. As China transitions from an

investment-intensive, export-led model of growth to one

driven by consumption and innovation, the government has

placed innovation at the very top of its “five tenets of

development” for its thirteenth five year plan (2016–2020).

Fostering innovation is the top strategic priority for China’s

CEOs, who have a clearer focus on innovation than their

counterparts in both Oman and the UAE (as well as their

global peers).

““ Innovation is embedded in

everything we do. We are

competing in global - not just

local or regional markets – so we

need to ensure that we are

always on the cusp of what’s

new.


19%

12%

4%

4%

19%

42%

Approach to innovation

Foundational

Not evident

Buying

Incubation

Accelerated

Strategic

Almost half of the CEOs we interviewed in Oman said that their

organization took a strategic approach to innovation - embedded

relentlessly and continually in everything the organization did,

with strategic innovation objectives, a defined approach,

resources, leadership and innovation efforts that are optimized

based on measures with internal and external feedback. This

compares favorably with the UAE survey - where just under a

third of CEOs believed they had a strategic approach to

innovation – and with the global outlook where 35 percent of

CEOs thought their organization had a strategic approach. 16

percent of CEOs in Oman said innovation was either not high on

their agenda or that a lack of internal resources or intellectual

property meant that innovation had to be bought in – either

through alliances or acquisitions.

Recent experience tends to suggest innovation is important. In

our global survey, fostering innovation was one of the top (21

percent) strategic priorities for CEOs over the next three years,

and a significant majority (77 percent) said it was important to

specifically include innovation in their business strategy with

clear targets and objectives.

8%

8%

4%

12%

15%

12%

4%

12%

4%

4%

12%

19%

4%

4%

38%

42%

38%

35%

15%

42%

19%

54%

42%

27%

35%

77%

42%

73%

Generate/source ideas

Progress ideas to commercialization

Foster culture of innovation

Create safe to fail environment

External collaboration

Organizational agility

Secure investment/resources

Organizational abilities

Highly incapable Somewhat incapable Neutral

Somewhat capable Highly capable



What might change the future?

The Oman risk radar is interestingly different from the global

risk radar where cyber (30 percent), regulatory (28 percent)

and emerging technology (26 percent) were the top risks cited

by CEOs. In Oman, the top three risks – regulatory,

geopolitical and treasury – were cited by well over half of the

CEOs we interviewed. This seems to reflect both the era of

political uncertainty we are now in – with Brexit and the

election of Donald Trump front of mind when our interviews

took place – and the importance of building a global risk

universe to react to global risks.

In both the UAE and Oman, CEOs seem to be less concerned

with the threat that cyber risk could pose to their organization.

In our global survey, cyber security has climbed the risk

register every year and is now seen as the top risk over the

next three years – it was the fifth highest ranked threat in

2015. Global CEOs recognize there is work to be done to

protect their organization, with 72 percent of CEOs not feeling

fully prepared for a cyber event. The fourth industrial

revolution - the age of the Internet of Things, machine

learning, cognitive computing and artificial intelligence -

increases security risks. Consensus is growing that

companies need mainstream cyber capabilities - people in all

parts of the organization need to understand cyber issues.

Major decisions need to be looked at through a cyber security

lens – whether it is the security implications of an M&A deal

to ensure it doesn’t expose the company to liability for data

breaches or privacy regulations when using insights from data

analytics for marketing campaigns. 72 percent of global CEOs

say they are not fully prepared for a cyber event, significantly

higher than the 50 percent of CEOs in our 2015 report.

The CEOs we spoke to in Oman tended to feel that they

are taking about the right amount of risk in pursuit of their

growth strategy, although a minority of CEOs felt there

were opportunities in the marketplace that were being

missed through excessive caution.

Well over two-thirds of the CEOs interviewed as part of

this year’s outlook strongly agreed that their organization

would continue to focus on its core competencies over the

next three years, while just under half strongly agreed that

the organization would be acquiring new competencies to

enter new areas. While, in the UAE, 82 percent of CEOs

said that that the companies they led wouldn’t significantly

change focus over the next three years, just under half of

CEOs in Oman thought it was possible.


Cash flow

Cyber security

Emerging

technology

Environmental

Fraud

Geopolitical

Operational

Regulatory

Reputation/brand

Strategic

Supply chain

Talent

Third party

Oman

risk

radar

81%

4%

15%

Right amount Too much risk Not enough

How much risk are you taking?

69%

38%

38%

46%

23%

27%

27%

50%

31%

19%

4%

12%

4%

12%

23%

23%

8%

12%

35%

Focus on core competencies

Divest non-core competencies

Grow complementary competencies

Acquire new competencies to enter

new areas

Significantly change focus

Strongly agree Agree Disagree Strongly disagree

they are not fully prepared for a cyber event, significantly

higher than in 2015 (50 percent).



Over the next three years, my

organization will:

Interest rates

One of the strongest drivers behind the Tanfeedh project is to

make the private sector the main employer of Omanis. This

will entail considerable mindset and operational changes by

both employers and employees, with the public sector no

longer in a position to employ growing amounts of Omani

talent.

What about employment and talent?

There was broad agreement among CEOs on the most

important ways of attracting and then retaining staff.

Financial incentives were seen as the most effective way

of recruiting human talent, followed by interesting career

paths and the opportunity to learn. However, retaining staff

needed slightly different strategies. Developing an

entrepreneurial or collaborative environment was the most

effective way of keeping human talent, followed by

interesting career paths.

In the short term, concerns about economic growth have

dampened expectations somewhat, although more CEOs are

looking to increase, not cut, headcounts. Over the longer

term, three quarters of the CEOs we spoke to anticipated

growing headcounts.

When we asked CEOs about functional skills gaps over the

next three years, there seemed to be general agreement that

it was possible to attract and retain most of the human talent

that they needed to grow. In an interesting finding – and

which perhaps underlines a growing awareness of the

challenges that cyber risks may pose – cyber security

expertise was seen as a strategic talent that might be

increasingly hard to source.

While financial incentives are always going to attract and

motivate an expatriate workforce, this may change as

increasing numbers of Omanis enter the workforce. HR

functions may find that offering interesting career paths

and an entrepreneurial environment both help negate the

hunt for talent – and reduce the cost of financial incentives.


40%

76%

44%

12%

16%

12%

12 months

3 years

Headcount predictions

Increase Stay the same Decrease

10%

17%14%

18%

23%

13%

16% 20%

17%

17%

What are the best ways of attracting

and retaining the right talent?

““I am passionate about developing the

skillsets and talents of all of my

workforce – and am investing millions

of riyals in talent management. We

now need to see a return on that

investment – and higher levels of

retention.



The key to managing the increasing pace, scale and scope of change is in how we react and whether we view these

events with caution or with the mindset that they present new opportunities. The pace of change is only going to

increase as the fourth industrial revolution gathers pace. CEOs need to act now to remain ahead of upcoming

challenges.

Conclusions

Economy and the business pulse:

An overwhelming proportion of Oman CEOs that we

interviewed are bullish about prospects for their

organization over the next three years.

While there is some concern over national economic

growth in the short term, most Oman CEOs are confident

that their organizations are well set for growth.

Most Oman CEOs believe that the oil price, the largest

single driver of GDP, will remain roughly where it is now –

and will not (in the short term at least) surge back to over

US$100.

Corporate strategies and

business priorities:

While fostering innovation was cited by 21 percent of

global CEOs as a strategic priority, only five percent of

Oman CEOs agreed.

Oman CEOs saw talent development and management as

their most important strategic priority (21 percent), in line

with their global peers (18 percent) but considerably more

than their UAE peers (only four percent).

Diversifying into new business areas was another strategic

priority for Oman CEOs (19 percent), and a top priority for

UAE CEOs (14 percent)

Innovation and data & analysis:

Almost half of the Oman CEOs we interviewed believe

their organization takes a strategic approach to innovation

– and a further fifth suggest they take an accelerated

approach.

Almost two-thirds of Oman CEOs think their organization

will be significantly different in three years’ time – more

than the global CEOs we spoke to – but less than their

UAE peers.

Disruption and change:

96 percent of Oman CEOs agree that their organization will

continue to focus on core competencies over the next

three years

58 percent of Oman CEOs disagree that their organization

will significantly change focus over the next three years.

Risk:

Most Oman CEOs feel they are taking roughly the right

amount of risk to achieve their growth strategy.

Oman CEOs cited geopolitical, interest rate and

regulatory risks as their top three risks.

People and culture:

Cyber security capabilities are most frequently cited as the

strategic skill that could be hard to find in the next three

years.

Financial incentives are seen as the most effective way of

attracting and retaining staff. However, working in an

entrepreneurial or collaborative environment and offering

different roles and interesting career paths may be equally

effective ways of retaining expensive talent.

Despite the impact of global forces, Oman is well placed for future growth. CEOs are increasingly aware of the need to

adapt. The private sector is expected to assume responsibility for creating jobs and wealth and seems well placed to

innovate and seize opportunities in both local and regional markets.




In addition to the countries analyzed in our global report, selected CEOs from other regions and countries around the world

were interviewed as part of our 2016 global survey. CEO concerns from around the world seem to depend on the maturity of

their economies and businesses, including the quality of data.

Top concerns of CEOs from the UAE and other regions

Top concerns

AS

EA

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Brazil

Can

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East A

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a

Ire

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Me

xic

o

So

uth

A

fric

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Sw

itze

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nd

Taiw

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The quality of the data I’m basing my decisions on

Whether our organization is staying on top of what’s next in services/products

Regulations will inhibit our growth

The impact of global economic forces on our business

The amount of time I have to think strategically about the forces of disruption

How millennials and their differing wants will change our business

The loyalty of our customers

Having to consider the integration of artificial intelligence and cognitive processes

The relevance of our products or services three years from now


The Oman CEO Outlook uses a similar question set to the 2016 UAE CEO Outlook, which suggested that CEOs needed to act

immediately to seize market opportunities and mitigate market risks:

Economy and the business pulse:

Most UAE CEOs are bullish about prospects for their

organization over the next three years.

Most UAE CEOs are confident that their organizations

have the skills and talents to benefit from uncertainty.

Most CEOs believe that the oil price will recover slightly to

over US$50.

Innovation and data & analytics

Most UAE CEOs believe that their organizations approach

innovation in an ad hoc manner

Three-quarters of UAE CEOs think their organization will

be significantly different in three years’ time

Disruption and change:

UAE CEOs believe their companies will be significantly

different in three years, while retaining the same focus.

Risk:

Most UAE CEOs feel they are taking roughly the right

amount of risk to achieve their growth strategy.

UAE CEOs believe emerging technology, supply chain and

reputation are their top three risks.

People and culture:

There is likely to be a gap in the short-term for cyber

security, digital, innovation and data & analytics talent.

Non-financial methods of attracting and retaining staff may

be effective in the longer term – and cheaper than financial

incentives.

Corporate priorities:

Most UAE CEOs see a stronger client focus as a key

strategic priority.

A significant number of UAE CEOs indicated that

headcounts are likely to rise



Methodology

The data in this outlook is based on over two dozen face-to-

face interviews with leading chief executives from across

the Sultanate of Oman. Key industries are represented,

including automotive, financial services, consumer goods,

family businesses, leisure, media, oil & gas, power &

utilities, real estate and construction, retail and distribution,

and telecoms.

Half of the CEOs came from companies with annual

revenues of less than US$500 million, Just over a quarter of

CEOs came from companies with revenues between

US$500 million and US$1 billion.23 percent of CEOs lead

companies with revenues of more than US$1 billion. CEOs

came from family businesses, government-related entities

and listed companies.

Nationalities of the CEOs we interviewed represent

Oman’s cosmopolitan population and included Omanis and

western and eastern expatriates.

The survey was conducted during the fourth quarter of

2016.

Figures may not add up 100 percent due to rounding.


23%

11%

11%

11%

8%

8%

8%

8%

4%

4%4%

Industry sector

Financial services

Real estate and

construction

Retail and distribution

Private equity (and

sovereign wealth

funds)

Family business

Technology, media

and telecoms

Power & Utilities

Industrial

Automotive

Oil & gas

Leisure

50%

27%

11%

12%

Organization size

Less than US$500

million

US$500 million to

less than US$1

billion

US$1 billion to less

than US$2 billion

More than US$2

billion

27%

27%

46%

CEO nationalities

Western

expatriate

Asian

expatriate

Omani



We are proud of our reputation for delivering cutting-edge

solutions and exceptional client value. With over 75 partners

and directors leading 850 professionals across six offices in

the Lower Gulf, we work shoulder to shoulder with our

clients, offering independent audit, tax and advisory services

to business corporations, government bodies and not-for-profit

organizations. We are proud of our reputation for developing

our people and the wider business community. We actively

support our staff and are recognized as a leading employer.

About KPMG

Complemented by a global network of dedicated partners

and professionals located across the global network of

individual firms, our value lies in our depth of talent and the

experience we have gained helping clients respond to

industry, market and regulatory changes and challenges.

We work with our clients to adapt and capitalize on the

trends being set by today's rapidly changing environment.

With deep industry experience, insight and technical

support, our qualified professionals deliver a broad range of

audit, tax and advisory services to meet the unique needs

of our clients.

Service offerings:

Audit

An independent audit is an

important foundation for

decision-making. Our

experience matters. To

deliver global audit leading

practice, external auditors

must fully understand the

complexities of future

directions and regulatory

requirements.

Understanding the financial

performance of any

business must be placed

in the context of strategic

priorities, risk appetites

and competitive

positioning. Our

technology-enabled audit

approach applies extensive

data analytics to provide

the necessary evidence

confirming that critical

controls and disclosures

uphold the highest level of

integrity.

Management

Consulting

Our high capability

teams offer

expertise, deep

industry and technical

knowledge, and

market-leading tools

to deliver solutions

across every

business and

industrial sector. Our

expert practitioners

help clients to make

better decisions,

reduce costs,

enhance

organizational

effectiveness and

develop appropriate

technology

strategies.

Risk Consulting

Our risk consulting

practice combines

the knowledge and

expertise of over

100 partners,

directors and

professionals. We

help organizations

transform risk and

compliance efforts

into competitive

advantage by

applying a risk lens

to corporate

strategy. This

improves risk

intelligence and

decision making,

protects financial

and reputational

assets, and

enhances business

value.

Deal Advisory

Our experienced

investment

professionals skilfully

assess how

opportunities to buy,

sell, partner, fund or

fix a company can

add and preserve

value. Our teams

combine a global

mind-set and local

experience with

deep sector

knowledge and

superior analytic

tools to support

clients. From helping

to plan and

implement strategic

change to

measurably

increasing portfolio

value, we deliver

tangible results.

Tax

A business’s approach to

tax is increasingly subject to

public scrutiny and is now a

major reputation driver.

From company set-up to

cross-border and transfer

pricing solutions, we work

with a wide range of

national and multi-national

organisations to deliver

effective tax solutions. Our

tax professionals combine

international experience

with local knowledge to

provide leading edge

commercial tax strategies

tailored to specific client

needs.

Tax issues are constantly

evolving. Changes in law,

practice, or approach –in

Oman and globally – can

have major ramifications on

local and international

organizations.

— Audits of financial

statements

— Audit-related services

— Audit data & analytics

— People & Change

— Customer &

Analytics

— Financial

Management

— Operations

— Strategy &

Economic

Advisory

— IT Advisory

— Forensic

— Business

Process

Management

— Accounting

Advisory

Services

— Internal Audit &

Risk

Compliance

— Climate Change

& Sustainability

— Capital Markets

— Valuations

— Debt Advisory

— Transaction

Solutions

— Mergers &

Acquisitions

— Restructuring

— VAT

— Inbound & indirect taxes

— Mergers, acquisitions

and restructuring

— International tax services

— Transfer pricing

— Tax management

consulting

— Global mobility services

— Automatic exchange of

information




The information contained herein is of general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide

accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one

should act on such information without appropriate professional advice after a thorough examination of the particular situation and circumstances.

© 2017 KPMG, KPMG LLP and KPMG Lower Gulf Limited, registered in the Sultanate of Oman and a member firm of the KPMG network of independent member firms affiliated

with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved. Printed in the United Arab Emirates.

The KPMG name and logo are registered trademarks or trademarks of KPMG International.

Vijay Malhotra

Senior Partner | CEO

D: +971 4 403 0300

E: [email protected]

Adil Abid

Audit

D: +971 2 401 4855


Fawzi AbuRass

Audit

D: +971 4 356 9703


Richard Ackland

Audit

D: +968 2474 9612


Sudhir Arvind

Risk Consulting

D: +971 2 401 4833


Nilesh Ashar

Tax

D: +971 4 424 8987


Anurag Bajpai

Audit

D: +971 4 356 9702


Sreemont Barua

Audit

D: +971 4 356 9539


Abbas Basrai

Audit

D: +971 4 403 0484


Raajeev Batra

Risk Consulting

D: +968 2474 9610


Nicholas Cameron

Risk Consulting

D: +971 4 424 8992


Paul Callaghan

Audit

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Freddie Cloete

Audit

D: +971 4 356 9538


Michael Collinson

Audit

D: +968 2470 9181


Tareq Dreiza

Management Consulting

D: +968 2474 9249


Sharukh Dumasia

Audit

D: +971 2 401 4844


Luke Ellyard

Audit

D: +971 4 403 0322


Umair Hameed


D: +971 4 424 8922


Ashok Hariharan

Tax

D: +968 2474 9231


Yusuf Hassan

Risk Consulting

D: +971 4 424 8912


Avtar Jalif

Audit

D: +971 2 401 4860


Nizar Jichi


D: +968 2474 9613


Andrew Korn

Audit

D: +968 2474 9615


Tasneem Lakdawalla

Risk Consulting

D: +968 2474 9617


Clare McColl

Tax

D: +971 4 424 8959


Sidharth Mehta

Audit

D: +971 4 356 9726


Milind Navalkar

Audit

D: +971 4 356 9727


Vikas Papriwal

Markets | Deal Advisory

D: +968 2474 9619


Emilio Pera

Audit

D: +968 2474 9611


Rohit Rajvanshi

Audit

D: +971 4 356 9725


Farhan Syed


D: +971 4 424 8985


Ahmed Tufail

Audit

D: +968 2474 9272


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now or never · 2020-04-03 · now or never i oman ceo outlook 2 growth snapshot that growth has...

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