case study

Sultanate of Oman

Ministry of Higher Education

Middle East College

Network Logistics

Semester 2, 2019

An assignment on:

Oman Vision 2040

Done by: YASIR ALI SALEH ALGHALANI (18F18318)

ASAD SALIM MOHAMMED SAID AL SHURAIQI (18S17741)

MOHAMMED ALI MUBARAK AL AMRI (16F15509)

OMRAN YAHYA ABDULLA MOHAMED AL HARTHY (18F18160)

ABEER ABDULLAH HAMMAD AL AAMRI (16F16244)

MABROOKA ABDULLA JUMA AL SAADI (16S15187)

Submitted to: MR: SULTAN ALKAABI

Table of contents

Items	Page No.
Introduction	1-2
Discussion & Content Analysis	3-12
Conclusion	13
References	14

A Study on Oman Supply Chain vision 2025

1- Introduction

According to (AL-Belushi,2018), the global economy is expected to increase in next coming years, and it is  required from us to enhance industries such as the logistic sector. In past, the sector of the logistics was not very important in exporting or importing processes in large industries. The Omani government as well as the Ministry of Transport and Communications have prepared strategic plans for the development of the different infrastructure and amenities such as ports, roads, industrial zones, airlines, logistics field, supply chain operations and shipping sector. Furthermore, Oman did a lot of efforts to lay the ground work as well as to connect Oman country with the new industrial nations. For instance, government of Oman has linked the global industries with modern networking such as roads, railways, transport as well as the communication networking. However, these developments are targeted to make the Omani logistic industry as one of the most important sectors in Oman as well as to make it as a biggest source of national GDP  by the Year of 2025. It has considered the main logistic sites in Oman such as Sohar, Muscat, Duqm and Salalah.

Furthermore, these plans cannot be accomplished without concentrating on the local manpower and the issue it encounters, involving the complex economic conditions surrounding Oman, low salaries, poor experienced workers.  In fact, What are on our ground are different from our future plans and expectations. There is a big gap between the majors of Academic logistic department as well as the supply chain industries. This gap is becoming bigger daily, leaving good educational Results without a clear vision. However, The programs of Tanfeedh promises that there will be alot of jobs for the seekers in logistics sector in next coming years. Moreover,  this plan lacks of clarity in terms of the jobs that it will offer in that field, lack of main description of these jobs, quality as well as their locations. In addition, there is a lack of clarity if these jobs have the ability to secure the labour market of Oman. If we want to proceed on the correct track, we should pave the right way for superior educational results and expand a strong support to the academic companies that are looking to train and qualify the Omani labors, the supply chain operations, logistics, procurement strategy, and others. This cannot be accomplished without connecting the academic institutions with the local needs of local labors markets involving the companies establishments, business of logistics, communication and networking, transport and other supply chain functions. However, these companies must provide more practical in house training for a specific time period such as internships,  during which the academic may get a qualification of experience that enable them to perform in the same industry or functions as wanted. This will Finally motivate the academic managers and firms to employ the academic willingly without the effort of training as well as additional dollars, except for the people who need to be trained and keep pace with development at workplace. However, the main vision of local Omani logistic groups involves to cover all areas such as free zones, government, land and sea transport firms (Davied,2013).

Objective of the report

· To highlight on the main Oman vision in 2025-2040

· To develop proper strategies in order to achieve these future plans

· To analyze the basic social, economic and technical trends in Oman

2- Discussion & Content Analysis

Importance of the changes/trends for the future supply chain

According to (Edwards,2007), '' The supply chain is defined as a network, chain or system consisting of several elements and is centered around people, technology, information, institutions, activities and resources to transfer services or products to the end customers, As the supply chain improves, it leads to lower costs and more production. This chain creates raw and natural resources into a final product that can be used and sold to customers''. On the other hand, (Sumantra,2013) has defined the supply chain as the management flow of the upper flow and the bottom flow of adding new value for materials and finished goods and all the information associated with suppliers or customers and companies. On other hands, The economic, political, technological and social trends have a great importance in the development or decline of the supply chain system in Oman. As all local and global researches confirm that the development of the supply chain has the potential to increase revenues as well as control the production costs of all sectors as well as lead to improved asset utilization. In addition, the global trends towards an advanced economy that fulfills the desires of the customers and increase the profits thus we get a result of efficiency and high performance. In addition to the benefits of the supply chain, it is faster and more efficient to work faster through faster document dissemination, quicker connection, faster decision making and reduced time to market (Salha,2010).

Supply Chain Vision 2025, taking in consideration the social, economic and technical trends

In fact, developing a supply chain vision for the future needs to observe and analyze the social trends, economic development of Oman, technical as well as environmental changes that may affect its success. First, Oman should have strong relationships with various manufacturers to create a sustainable supply chain system. However, Sultanate of Oman aims to manage a successful supply chain that has many short and long term competitive advantages, where short term benefits include increased productivity, reduced inventory and time as well as lower cost of transportation. Long term benefits include increasing customer satisfaction, market share and profits for all parties in the supply chain with the aim of building strong relationships with suppliers with a focus on both cost reduction and maximizing value for the end customer (Rajiv,2016).

The Omani Supply Chain Plan aims to divide the activities of the supply chain managers on the accounting, marketing, and information system which is considered essential in the management of the supply chain through control of inventory and management of material flows. Oman Vision also seeks a supply chain to provide 5,000 jobs in agreement with its suppliers, including ASIAAD Company (AL-Harby, 2017). However, The Oman vision 2040 have been divided into 5 years plan and Oman will reach these goals by 2040 as shown below:

· The First five plan: Oman supply Chain vision (2025-2030)

· The Second five Plan: Oman supply Chain vision (2030-35)

· The Third five Plan: Oman supply Chain vision (2035-2040)

· The Fifth five Plan: Oman supply Chain vision 2040

a- The First five plan: Oman supply Chain vision (2025-2030)

The most important vision of the supply chain in the first five-year plan from 2025 to 2030 in the Sultanate of Oman includes the following objectives:

· Improving the competitive position of the organizations:

In Oman, procurement activities in 2025 will focus on issues that contribute to the objectives and strategies of organizations. Supply managers will also identify how to invest opportunities that are looming by managing supply chains in order to contribute to raising the organization's income and asset management as well as reducing costs. On the other hand, the financial framework of the first five-year plan 2025-2030 was formulated to serve its objectives in general and support the stability and growth of the Omani economy in particular. The revenues from the logistics and supply sector are estimated to be at a production rate of RO 4899 million. The success of procurement activities in Omani institutions depends on the extent to which these activities are possible, linking supply decisions with the overall organizational strategy and continuing to select more efficient suppliers to work for better results. On the other hand, the company aims to provide job opportunities for Omanis and raise Omanisation rates to reach 90% in the supply and logistics sector.

The Second five Plan: Oman supply Chain vision (2030-2035)

The second five-year strategy of the visionary vision for the development of the supply chain 2025-2040 is very important for the long-term development of Oman's economy. Where the most prominent objectives in the second five-year plan 2025 include key factors in the investment balance and continuous growth in all sectors of economic diversification and logistics. This plan emphasizes the continued rehabilitation and training of the Omani national forces and the provision of necessary services to develop the knowledge and scientific aspects of the importance of the achievement of a digital society based on advanced information communication. However, the ASIAD Company and Oman Oil Company announced that the total new and continuous programs approved for the second five-year plan for Oman's vision for the Sultanate are estimated at 13 billion Omani Rials (33.5 billion US dollars). The plan aims to achieve growth rate of 3% -4% per annum and 6% The average annual inflation rate for the period of this strategy is about 4% and the Sultanate of Oman will raise the volume of investments to RO 35 billion, an increase of about 113% compared to the previous development of the supply chain.

The Third five Plan: Oman supply Chain vision (2035-2040)

At this plan, Oman vision is to improve the country's soft infrastructure, especially the regulatory surrounding's as well as the supporting mechanisms. The strategic centralized site of Sultanate Oman in Arabian Gulf allows it to deal for conversion into the main transshipment hub for the trade of middle east. On other hands, the supreme council planning center has confirmed to invest more on infrastructure, airport facilities as well as the new road link to support the increased spending of government.

The Fifth five Plan: Oman supply Chain vision 2040

The National Logistics Strategy and Supply Chain Management will be operated to facilitate commercial movement in Oman by 2040. There will be considerable flexibility in the movement of goods between local and international markets. The promotion of the competitive advantages and added value offered by the Omani logistics sector will be intensified by using highly advanced technical technologies, as well as the employing of about 10,000 Omani job seekers in the transport and communications sector, according to the company's last interview. Asayad Company will achieve these pillars by partnering all parties and Omani government companies by 2040, in addition to achieving all previous strategies.

In addition to the plans and vision mentioned above, a number of state officials and ministers under the Royal Decree No. 7/2013 of December embarked on the preparatory phase for the development of the vision of Oman 2040 future. Where the working group and the various technical committees were formed to follow up the audit and implementation. They also analyzed long-term sectoral strategies, linked their goals to vision goals, and set national priorities in all sectors. In addition, the relevant committees have prepared the necessary strategies for communication and participation of Omani society in preparing the vision of Oman for all citizens and residents.

 

Chart-1 the 5 years plan of Oman Supply chain

Social, Economic and Technical Trends in Oman 2040

According to the economic trends in Oman in 2025-2040, Oman's economy is doing well in the past years, from 2010 to 2018, due to the higher efforts of oil and natural gas production sector from January to November, as well as a significant rise in hydrocarbons in recent years compared to the previous years before 2000. The Sultanate of Oman expects a significant improvement in its economy and improvement in the country, As the Sultanate of Oman has developed diversified plans to reduce dependence on oil and gas, including increasing supply chains, diversifying investment projects and relying on the logistics sector. It is also worth noting that the Sultanate expects an increase in spending rate slightly. On the other hand, Oman's expected technical trends include significant digital and technological progress in all sectors including oil, gas, supply chain, logistics and manufacturing. Where technological trends are expected to include in 2040 new operating models affecting decision makers in the coming year

According to the social trends in Oman, the country will have advanced social media marketing services by 2040. The techniques of marketing will earn a solid reputation within Omani society. However, There will be significant differences in the social networks, which will lead to the emergence of social mobility will spread in Omani society among citizens, which will change our lives for the better by 2040. It is expected that 80% of Omanis will use social networking issues in their daily lives to enhance and meet their needs.

Table 1 economic Trends

The ‘supply chain vision 2025’ needs to be justified by sufficient relevant literature and a ‘macro, meso, micro analyses

· Macro Economics of Oman

According to table 2, the growth of the Omani economy in 2018 was very high compared to the years from 2016 to 2017. In fact, the Oil and Gas sector represent the highest contributor to Oman' high revenues by 75% in 2017. In fact, in despite the decrease in oil reserves, the activities of the hydrocarbon will continue to raise due to the effective technologies in gas production. Therefore, the development in oil growth will also increase in next coming years. The recent discovery in gas field has supported Omani economy to increase for years will come. At the same time, since the late 1990s, the Omani government has been working to differentiate its business activities such as transportations, tourism, logistics, education and others. According to the year of 2019, it is expected to increase the growth of Oman by non-oil and gas company more than before. As a part of five-years plan 2025-2040, the diversification plan will be benefited from the expansion of Muscat airport. According to the year of 2015, there was a fall in oil revenues and there was a deficit. There are some considerations to reduce the size of undesirable markets. The government has worked along with various authorities and miniseries to reduce the overall costs of operations as well as to support our national GDP (Mohammed,2014).

· Meso Economies

The science Meso Economics or the intermediate economy has a major impact on the achievement of Oman's 2040 goals and visions. The Meso economy is the science used to describe all Omani economic arrangements that are not based on micro-economies for the use or purchase, and are not based on the total economies of aggregate demand, but rather on the importance of the structures under which the Omani economy is based. In fact, the meso Economic provides a link between the macro and micro economies of Oman that is typically important for managing the overall economy as well as to make this framework interesting and essential to understanding the modern world. On other hands, the meso economy studies the official areas of the Omani economy that are not taken by the micro or macroeconomics. By assuming the competition, complete information, the costs of transactions and others, the meso economy assumes away the basic needs for the courts, parties or laws within the country to resolve the internal issues that may face the country. From the perspectives of the Meso Economies, the political economy of Oman refers to the study of government incentives that can help to achieve the Oman vision 2040 (Walz,2019).

· Micro Economics of Oman

According to the Micro-economic analysis of Oman, Omani per capita income has increased, therefore, the consumption of individuals has increased. The GDP per capita in Oman has reached 14.522.880 USD in 2017 compared to the year of 2016, and it was around 13.938.948. Oman GDP per capita are updated yearly. However, the Nominal GDP reached 19.892 USD billion in 2018. According to the labor productivity rate, the productivity of labors enhanced by 1.40% in 2017 compared with a drop of 3.40% in previous year (Msairi,2019).

Table 2, Major Macro Economic Indicators

3- Conclusion & Recommendations

To sum up, the main findings of this report involve various results. For instance, There are several future visions named after the five future plans of 2025 and will be achieved in 2040. As the first five plan includes various aims. The plan aims to achieve growth rate of 3% -4% per annum and 6% The average annual inflation rate for the period of this strategy is about 4% and the Sultanate of Oman will raise the volume of investments to RO 35 billion, an increase of about 113% compared to the previous development of the supply chain. The promotion of the competitive advantages and added value offered by the Omani logistics sector will be intensified by using highly advanced technical technologies, as well as the employing of about 10,000 Omani job seekers in the transport and communications sector, according to the company's last interview. Asayad Company will achieve these pillars by partnering all parties and Omani government companies by 2040, in addition to achieving all previous strategies. In fact, the companies and business organizations should work with local government to achieve these five years plan 2040 and enhance the performance of our economic growth.

4- References

Books

Davied, Y. (2013). Globalization and national economic welfare. New York, 2004.

Journals

AL-Belushi, B. (2018). Education in Oman. Journal of Education or All, [online] volume 15 (4), p. 33. Available at: https://www.education-in-Oman/uploads (Accessed 31 March 2019)

Edwards, R. (2007). The digital economy. Business organization journal, [online] volume 9 (14), p. 63. Available at: https://www.taylorfrancis.com/books/9780203933633 (Accessed 2 April 2019)

Websites

Sumantra, T. (2013). 10 supply chain trends for the next 10 years. Available at: https://www.supplychain247.com/article/10_supply_chain_trends_for_the_next_10_years (Accessed 12 March 2019)

Salha, T. (2010). Post basic education redorms in Oman. Available at: http://infonomics-society.org/wp-content/uploads/licej/volume-1-2010/Post-Basic-Education-Reforms-in-Oman-A-Case-Study1.pdf (Accessed 18 March 2019)

Rajiv, K. (2016). Vision of Oman 2020. Available at: https://www.tandfonline.com/doi/abs/10.1080/09286580600864802 (Accessed 6 April 2019)

AL-Harby, Y. (2017). Validity of vision screening by school nurses. Available at: https://www.researchgate.net/profile/Rajiv_Khandekar/publication/7433347_Validity_of_vision_screening_by_school_nurses_in_seven_regions_of_Oman/links/57cd53d108aedb6d6d9f1fbc.pdf (Accessed 10 April 2019)

Msairi, Y. (2019). Supply chain performance. available At: https://www.emeraldinsight.com/doi/abs/10.1108/14635771111137778 (Accessed 20 April 2019)

Mohammed, S. (2014). The Oman Eye Study. Available at: https://bjo.bmj.com/content/86/9/957.short (Accessed 21 April 2019).

Walz, C. (2019). Mesoeconomics. Available at: http://www.uwm.edu/News/report/old/april99/people.html (Accessed 14 May 2019)

Oman vision 2040

third five vision 2035

support the increased spending of government.

:first five vision 2025

Raise capacity of companies to upgrade services

fifth five vision 2040

achieve all previous visions

second five vision 2030

economic diversification and logistics investment

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