Thousands of expat health workers replaced in Oman

The number of Omanis working for the Ministry of Health is now more than 71 percent. (File/Shutterstock)
Updated 09 July 2019
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Thousands of expat health workers replaced in Oman

  • More than 39,000 Omanis now work for the country’s Ministry of Health
  • Before Omanization began expats accounted for more than 70% of the country’s workforce

DUBAI: Nearly 3,000 expats employed in Oman’s health sector were replaced in 2018 as the ongoing Omanization project aimed at reducing unemployment levels among the country’s nationals continued, national daily Times of Oman reported.

There were 2,869 foreign nationals replaced by Omanis from 2015 to 2019, pushing the proportion of locals working within the Ministry of Health to 39,220 – that’s 71 percent of the total workforce by the end of last year – according to Ministry of Health figures.

Oman introduced the expat visa ban in January 2018 for a six-month period for certain professions.

There have been a number of extensions to the ban since then and it has also been expanded to cover other industries and professions.

Tens of thousands of Omanis have found work since the ban was brought in.

Historically Gulf countries have been dependent on expatriate workers to power their economies.

A 2013 study revealed that up to 71 percent of Oman’s labor force were foreign-nationals.

In Qatar the expatriate workforce was as high as 95 percent, in the UAE it was 94 percent; 83 percent in Kuwait; 64 percent in Bahrain and 49 percent in Saudi Arabia.

The Gulf states have since launched nationalization programs to absorb more of their citizens into the workforce, slashing the high levels of unemployment.

Oman's expat population has dropped significantly since the introduction of the ban.


BMW picks insider Zipse as CEO to catch up with rivals

Oliver Zipse
Updated 20 July 2019
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BMW picks insider Zipse as CEO to catch up with rivals

  • German giant has lost ground to Mercedes-Benz and Tesla as tech steps up

FRANKFURT: BMW has named Oliver Zipse as its new CEO, continuing the German carmaker’s tradition of promoting production chiefs to the top job even as the auto industry expands into new areas such as technology and services.
Hailing Zipse’s “decisive” leadership style, BMW hopes the 55-year-old can help it win back its edge in electric cars and the premium market  from rival Mercedes-Benz.
But some analysts questioned whether Zipse was the right choice with new fields such as software and services like car-sharing becoming increasingly important.
“What is intriguing is the cultural bias to appoint the head of production. It works sometimes but ... being good at building cars is not a defining edge the way it was 20 years ago,” said Jefferies analyst Philippe Houchois.
Current CEO Harald Krueger, and former chiefs Norbert Reithofer, Bernd Pischetsrieder and Joachim Milberg were all former production heads.
Zipse joined BMW as a trainee in 1991 and served as head of brand and product strategies and boss of BMW’s Oxford plant in England before joining the board.
He will become chief executive on Aug. 16, taking over from Krueger who said he would not be available for a second term.
“With Oliver Zipse, a decisive strategic and analytical leader will assume the Chair of the Board of Management of BMW. He will provide fresh momentum in shaping  the future,” said Reithofer.
Zipse helped expand BMW’s efficient production network in Hungary, China and the US, in a move that delivered industry-leading profit margins.
Under Krueger, BMW was overtaken in 2016 by Mercedes-Benz as the best-selling luxury car brand.
It also had an early lead over US  rival Tesla in electric cars, but scaled back ambitions after its i3 model failed to sell large numbers.
Reithofer initially championed Krueger’s low-key consensus-seeking leadership, but pressured him to roll out electric vehicles more aggressively, forcing Krueger to skip the Paris Motor Show in 2016 to reevaluate BMW’s electric strategy.
Krueger’s reluctance to push low-margin electric vehicles led to an exodus of talented electric vehicle experts, including Christian Senger, now Volkswagen’s (VW) board member responsible for software, and Audi’s Markus Duesmann, who is seen as a future CEO of the company.
Both were poached by VW CEO Herbert Diess, a former BMW board member responsible for research who was himself passed over for BMW’s top job in 2015.
VW has since pushed a radical 80 billion euro ($90 billion) electric car mass production strategy, and a sweeping alliance with Ford.

Other skills
“A CEO needs to have an idea for how mobility will evolve in the future. This goes far beyond optimising an existing business,” said Carsten Breitfeld, chief executive of China-based ICONIQ motors, and former BMW engineer. “He needs to build teams, attract talent, and promote a culture oriented along consumer electronics and internet dynamics.”
German manufacturers have dominated the high-performance market for decades, but analysts warn shifts towards sophisticated technology and software is opening the door to new challengers.
“Tesla has a lead of three to four years in areas like software and electronics. There is a risk that the Germans can’t catch up,” UBS analyst Patrick Hummel said.
Germany’s Auto Motor und Sport car magazine, normally quick to champion German manufacturers, this week ran a cover questioning BMW’s future.
“Production expertise is important, but if you want to avoid ending up being a hardware provider for Google or Apple, you need to have the ability to move up the food chain into data and software,” a former BMW board member said.