Realigning for growth

A bad rap is bad business

A good reputation precedes you, while a bad reputation will follow you for a long time. It takes years to build a strong rapport and just seconds to lose it

Q: How I can win the trust of investors, future partners and suppliers? — Catalina Ly, Entrepreneur magazine reader

Rights, obligations for tenants and landlords made easy

Cluttons, the real estate specialist, which has enjoyed a dedicated Middle Eastern presence since 1976, has seen an increasingly active residential leasing market in Oman. Here, I have detailed some advice to assist the tenants and landlords in Oman navigate the seemingly complicated rules and regulations of the rental market.

A new tenant is always going to have some teething problems, but fortunately these can usually be swiftly resolved, as the responsibilities of both tenant and landlord are outlined within the tenancy agreement. The relationship between landlord and tenant is also regulated by law, and the lease document is an official form that is registered with the municipality. A new lease entitles a residential tenant to security of tenure for three years, with a rent that cannot be increased during that time unless mutually agreed between both parties. After that period, there is no limit on rental increases but these should of course reflect the realities of the market.

EXPLORING BENEFITS

Oman's insurers are beleaguered with dented profits in the short term due to rising competition and accident claims, prompting insurers to explore other lines of general insurance and life to survive. BusinessToday reports

At a time when sectors across the sultanate are optimistic about their growth prospects due to the numerous development projects and job creation, sentiments in Oman's insurance industry are still quite subdued. In recent times, insurers have seen an increased uptake of motor, health and project insurance covers and as of 2012, gross premiums increased about 17 per cent to touch RO329mn. According to industry and Capital Markets Authority (CMA) officials, this growth is expected to touch 20 per cent in 2013. But growth in profit margins for most players have been less than five per cent as the sector is plagued with stiff competition and rising loss-to-claims ratio in motor, with the industry claims average pegged at around 80 per cent. The motor business for most insurers here comprise at least 60 per cent of their overall business.

Spreading googdwill

As a part of firms’ CSR goals, self-employment programmes are slowly increasing in the interior areas, but these initiatives require significant private sector participation for sustenance in the long term. Ramya Dilipkumar reports