Oman bars expats from certain jobs amid economic downturn

Oman bars expats from certain jobs amid economic downturn
A worker stands at the construction site of Duqm Airport, Oman, Aug. 21, 2017. (Reuters)
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Updated 24 January 2021

Oman bars expats from certain jobs amid economic downturn

Oman bars expats from certain jobs amid economic downturn
  • It added the work permits of foreigners in those professions will not be renewed after their expiry date
  • Expats in the sultanate make up about 40 percent of the country's 4.5 million-strong population

MUSCAT:  Oman announced Sunday it will bar expatriates from certain jobs in an effort to create more employment opportunities for its citizens amid an economic downturn.
In a region that depends heavily on cheap foreign labour, expats in the sultanate make up about 40 percent of the country's 4.5 million-strong population.
Faced with an economic slump and a sharp drop in oil revenues, Oman and other Gulf Cooperation Council (GCC) states have stepped up efforts to create jobs for their own citizens.
"A number of jobs in the private sector will be nationalised," the Omani labour ministry announced on Twitter on Sunday.
It added the work permits of foreigners in those professions will not be renewed after their expiry date.
Various jobs in insurance companies, shops and car dealerships, including finance, commercial and administrative positions, will be "limited to Omanis only", the ministry said.
Work as a driver, "no matter what the vehicle", will also be reserved for citizens, it added.
In April 2020, Oman ordered state-owned companies to accelerate the process of replacing foreign staff with Omani nationals, especially in senior positions, to create more jobs for citizens.
The finance ministry at the time said large numbers of expatriates still occupied managerial posts in state-run firms.
Since 2014, the oil-rich Gulf region has been hit hard by falling crude prices, suffering a new blow amid the global economic impact of the novel coronavirus pandemic.
Oman and fellow GCC states Saudi Arabia, the United Arab Emirates, Kuwait, Qatar and Bahrain have saught to diversify their economies and integrate millions of new graduates into their workforces.
All have introduced legislation to give nationals preference over foreigners in both the public and private sectors.
More than 25 million foreigners live in the Gulf, making up the majority of the populations in the UAE, Qatar and Kuwait.


Own goal? Shaky finances ruin China’s dream to be a global football power

Jiangsu FC on Sunday said they had
Jiangsu FC on Sunday said they had "ceased operations" — just three months after winning the Chinese Super League. (AFP/File Photo)
Updated 02 March 2021

Own goal? Shaky finances ruin China’s dream to be a global football power

Jiangsu FC on Sunday said they had "ceased operations" — just three months after winning the Chinese Super League. (AFP/File Photo)
  • Jiangsu FC on Sunday said they had "ceased operations" — just three months after winning the Chinese Super League

SHANGHAI: Five years ago, China under President Xi Jinping pledged to become a football power by 2050. But the financial collapse of the newly crowned Chinese champions raises fresh questions over that lofty goal.
Jiangsu FC on Sunday said they had "ceased operations" — just three months after winning the Chinese Super League — in a move described as "shocking" by state media.
After rushing in to curry favour with Xi and the Communist Party, burnt investors are retreating again and last year 16 teams pulled out of Chinese football. More are set to follow.
It is a far cry from when the Super League broke the Asian transfer record five times in less than a year, culminating in Chelsea midfielder Oscar joining Shanghai SIPG for 60 million euros in January 2017.
Argentine striker Carlos Tevez was lured by Shanghai Shenhua in the same transfer window on reported wages of 730,000 euros a week, the highest in the world.
But state-run Xinhua news agency said this week that soaring salaries and transfer fees, as clubs vied to outspend each other, had created "a bubble" that is now bursting.
Citing Chinese Football Association statistics, Xinhua said average expenditure in the 2018 season for the Super League's 16 clubs was about 1.1 billion yuan ($170 million), against average income of 686 million yuan.
"The CSL club expenditure is about 10 times higher than South Korea's K League and three times higher than Japan's J-League," CFA president Chen Xuyuan said in December, when salary caps were announced.

Journalist Ma Dexing said that in 30 years covering Chinese football he has seen more than 200 clubs close, indicating a wider problem beyond the current crisis and the coronavirus pandemic, which delayed the Super League for months last year and forced it behind closed doors.
Tianjin Tigers, a Super League mainstay since its founding in 2004, are expected to dissolve within days and Hebei FC's parent company is drowning in debt.
"The fundamental reason is that the foundation of Chinese professional football is too weak," Ma, who has 1.5 million followers on China's Twitter-like Weibo platform, wrote in a column.
Clubs are built and run by companies which have little connection to the communities where they are based, Ma explained.
"Therefore the survival of China's professional clubs directly depends on the economic situation of the enterprise or company," he wrote.
"Once the company or enterprise has problems, the club ceases to exist."
That's what happened to Jiangsu FC, who were until recently called Jiangsu Suning, named after their backers.
The Suning conglomerate, which also owns Serie A leaders Inter Milan, is in financial peril and has cut the team loose.
A recent CFA order for clubs to drop sponsors from their official names -- supposedly to help foster a deeper footballing culture -- was the "last straw" for some investors, the Beijing News said.

Speaking to AFP last year, CFA secretary-general Liu Yi said a healthy Super League was central to China's football ambitions, which include hosting and even winning a World Cup.
Concerned about clubs' high spending and the lack of opportunities for Chinese players, the CFA imposed a 100 percent transfer tax in 2017 on incoming foreigners, plus recent salary and investment caps.
The Shanghai Observer said clubs must abandon single-owner models in favour of multiple stakeholders including "government, enterprises, communities and even individuals".
"Super League clubs cannot only rely on blood transfusions from their parent company but must attract more sponsorship, match-day income (and improve) transfer market operations, etc.," it said in an opinion piece.
Liu told AFP that China remains committed to its ambitious long-term plans, pointing out that foreign stars including Oscar, Paulinho and Marouane Fellaini remain in the Super League.
But the short term is uncertain.
A more frugal Super League is expected to kick off in the spring but with coronavirus concerns persisting, the CFA is yet to announce a start date. Given Jiangsu and Tianjin's problems, it's also unclear which teams will be involved.
Meanwhile, the men's national side has moved up just five places in the FIFA rankings since China revealed its football dreams in 2016. They are now 75th, just above war-ravaged Syria.
China has reached only one World Cup, in 2002, when they failed to score a goal or win a point in their three group games.


Aramco CEO sees improvement in demand for oil in 2021 

Amin Nasser, president and chief executive of Saudi Aramco. (CERAWeek)
Amin Nasser, president and chief executive of Saudi Aramco. (CERAWeek)
Updated 45 min 8 sec ago

Aramco CEO sees improvement in demand for oil in 2021 

Amin Nasser, president and chief executive of Saudi Aramco. (CERAWeek)
  • Amin Nasser also warns certain job types might not return after ‘biggest crisis in a century’
  • Current oil demand is at 94 million barrels, compared with pre-pandemic levels of 100 million

DUBAI: Amin Nasser, president and CEO of Saudi Aramco, sees an improvement in demand for oil this year, especially in the second half, but he is worried about the risk of a “jobless recovery” for the global economy.

Speaking virtually at CERAWeek, an annual energy conference organized by the information and insights company IHS Markit in Houston, Texas, Nasser said there has already been “quite an improvement” in oil demand compared to the drastic reductions during the pandemic lockdowns last year, especially in China and East Asia. 

“Indian demand is almost the same as pre-COVID,” he told oil market expert Daniel Yergin.

“There has been an impact that we see in the West and the US. But with the rapid deployment of vaccines, we are seeing good cause for optimism and recovery in demand.”

Current oil demand is at 94 million barrels, compared with pre-pandemic levels of 100 million, and Nasser expected this to rise to 99 million barrels by the end of the year. 

“I see demand and the market improving from here, especially in the second half of this year,” he said.

But Nasser said he expected “harsh realities” as a result of the economic damage from the pandemic, which he described as the “biggest crisis in a century” for the oil industry.

“There has been a huge impact on small- and medium-sized businesses, and more on employment,” Nasser said. “Rapid technology advances were already having an impact on jobs, especially low-skill repetitive-type jobs, reducing jobs and creating inequality in the market in different parts of the world.

“Today we are seeing a recovery taking place and usually this is linked to job creation and higher employment. My big worry over the long term is a jobless recovery where certain jobs are not going to return.”

Nasser said Aramco, the world’s biggest oil company, used risk-management systems to help it respond quickly to the pandemic, which also significantly accelerated its use of digital and remote operating processes.

During the same CERAWeek forum, the CEO of US energy firm Chevron Corp., Mike Wirth, said the key lesson learned from the crisis was the “essential nature” of the oil business. 

Despite the unprecedented shock to oil markets, he said demand destruction only amounted to about 9 percent: “This demonstrates how important our industry is to the world economy.”


Saudi Aramco, Chevron chiefs see global oil demand recovery

Saudi Aramco, Chevron chiefs see global oil demand recovery
Updated 02 March 2021

Saudi Aramco, Chevron chiefs see global oil demand recovery

Saudi Aramco, Chevron chiefs see global oil demand recovery
  • Amin Nasser says global demand could reach 99 million barrels per day in 2022

Global oil demand is recovering and could return to around pre-pandemic levels next year, the chief executive of Saudi Aramco told an oil and gas conference on Tuesday.
Global demand for oil is likely to recover from the second half of the year and could reach 99 million barrels per day (bpd)in 2022, Amin Nasser said at IHS Markit's online CERAWeek conference.


Diesel demand has recovered globally due to door-to-door deliveries, though jet fuel lags as people avoid long flights, said Chevron CEO Michael Wirth, who spoke on a panel with Nasser.
Oil demand improving in China, India and East Asia, with vaccine deployment as "cause for optimism" in the West, Nasser said.


OPEC says general oil market outlook is positive as energy industry gathers

OPEC says general oil market outlook is positive as energy industry gathers
Updated 02 March 2021

OPEC says general oil market outlook is positive as energy industry gathers

OPEC says general oil market outlook is positive as energy industry gathers
  • Resilient Asia supports oil demand
  • OPEC+ to meet on Thursday
LONDON: OPEC sees the oil market’s outlook as positive in general and the uncertainty that dominated last year is easing, the group’s secretary general said.
“This is a major turnaround from a year ago,” Mohammad Barkindo was quoted as saying on Twitter on Tuesday.
He added that positive global economic developments and resilient demand in Asia were encouraging.
Barkindo spoke ahead of joint technical committee (JTC) meeting for the Organization of the Petroleum Exporting Countries and its allies led by Russia, a group know as OPEC+.
The JTC reviews oil market supply and demand balances as well as compliance of members of the alliance with the agreed cuts.
“It looks good and healthy,” an OPEC delegate said, referring to the latest supply and demand balance for 2021.
“But there are still some thoughts to be cautious,” he added.
Oil company executives at CERAWeek by IHS Markit said that crude demand will rise over the coming decade and that the fossil fuel will remain a crucial part of the energy mix even as renewables draw increasing attention.
Climate change and renewable fuels are taking center stage at this year’s gathering of energy leaders, investors and politicians from around the globe, with oil companies trying to reorient their portfolios after the coronavirus pandemic eroded demand and caused the loss of thousands of jobs.
The industry scaled back investments and cut budgets as prices crashed in 2020, but investments are likely to rebound by next year, said Lorenzo Simonelli, chief executive officer of oil services company Baker Hughes.
“Hydrocarbons are still going to be essential for providing energy to the world,” Simonelli said. “Especially as you look at the near-term future.”
Oil demand may continue to climb over the next decade even as countries work to comply with the Paris climate agreement’s goals for cutting emissions, said Hess Corp. CEO John Hess.
“We don’t think peak oil is around the corner — we see oil demand growing for the next 10 years,” said Hess.
“We’re not investing enough to grow oil and gas in the future,” he said, saying that prices would need to rise to support that investment.

More Saudis turn to temping as pandemic reshapes workplace in Kingdom

More Saudis turn to temping as pandemic reshapes workplace in Kingdom
Updated 02 March 2021

More Saudis turn to temping as pandemic reshapes workplace in Kingdom

More Saudis turn to temping as pandemic reshapes workplace in Kingdom
  • Work contracts documented on the flexible work system were concentrated in Riyadh, the Eastern region and Makkah

ARAB NEWS: Saudis are taking up more temporary jobs in response to the Kingdom’s rapidly changing workplace

As the pandemic forces many businesses to temporarily shut up shop, demand for part time workers is on the rise.

Some 3000 institutions are registered on the government’s ‘Marn’ flexible work platform and almost 2,400 contracts have been documented, from various regions, the Saudi Ministry of Human Resources and Social Development told Al Arabiya.

The Ministry said that most of the work contracts listed on the platform were concentrated in Riyadh, the Eastern region and Makkah. Almost one in three involved women.

The retail and wholesale sectors have benefited most from the flexible work system, along with the construction and logistics sectors, the Ministry said.

The platform appeals to employers because it reduces their overheads and means they are only paying wages when they receive orders.

Saudi Arabia launched the Marn platform last May which offers hourly-based employment and does not require employers to pay end-of-service benefits.