Contents

• Cement Industry Overview in Oman 1
• Oman Cement Company Background 1
• Oman Cement Company Financials 2
• Raysut Cement Company Background 2
• Raysut Cement Company Financials 3
• National Real Estate Development Company Background 4
• National Real Estate Development Company Financials 4
• Comparative Analysis 5
• Summary 6
• Bibliography 6
• Appendix 7

Description

Oman has been under the rule of Sultan Qaboos bin Said al- Said since the year 1970. Under his highness modernisation programme the country has witnessed a steady improvement in ties with various countries across the world while at the same time they are continuing to maintain a good relationship with the UK and other gulf countries (Cemnet, 2013). Oman is having huge surplus of oil and gas reserves with a huge middle class population in the Middle East countries which means they have a huge scope to improve their trade surplus which is very low currently if they work towards it. Thus opening of new markets for them means increases business opportunities as well as increases competition in internal market from foreign players. Though the future looks good for the cement industry in Oman as the government is planning to undertake various infrastructure projects as part of their 5 year economic development programme planned for the years 2011 – 2015 (Oxford, 2014). In 2012 Raysut group had predicted that the construction industry would zoom to $5 Billion at an average growth rate ranging to around 6% year on year. As cement industry provides a product which has derived demand thus it is very important for them that the construction industry grows at a healthy pace so as to give the cement industry good sales numbers so that they are able to achieve their targets. One major challenge for local players in Oman is that UAE which is located very close to them have an additional capacity of approximately 65% which means that the UAE players might be ready to sell their products in the local Oman market at a very low price so as to increase their sales. One major good point for Oman local players is that the local government would be spending approximately 10.7$ billion between 2011 to 2015 which means that they would get a good share of the same as the government would prefer giving contracts to local players so that the local economy benefits.