A date farmer at northern town of Barka, Oman.
A date farmer at northern town of Barka, Oman.
A date farmer at northern town of Barka, Oman.
A date farmer at northern town of Barka, Oman.

Omani farmers struggle to sell, not grow, their produce


  • English
  • Arabic

AL HAMRA, OMAN // In the shadow of Jabal Shams, the country's tallest mountain, more than 300 farms, separated by corroding wire fences, grow enough food to feed two dozen villages. Yet, more than half the yield of crops such as potatoes, limes and dates fail to make it on to supermarket shelves.

Transportation is not the problem. Imported food is.

Retailers say they prefer the quality and appeal of well-packaged imports over local produce. This presents a major challenge to local farmers who are struggling to sell what they grow.

About 15 per cent of the 1.9 million population depend on their livelihoods from 120,000 registered farms in Oman, according to the ministry of agriculture. Yet, more than half of these farmers live below the poverty line.

This belies the government's ambition to shed their reliance on food imports and become a "self-sufficient" nation by 2015, according to a report released last year. As part of this drive, the government has since introduced subsidies for farming equipment, fertilisers and seeds. However, the country only produces 35 per cent of all the locally consumed produce as well as 25 per cent of all meat, poultry and dairy products, according to the report.

But farmers say they are still unable to sell their products in a country where more than half the food is imported. Instead, they are asking for restrictions on certain food imports such as dairy, meat, poultry, fruits and vegetables, in order to protect their market.

"We are struggling to sell our fruits and vegetables because supermarkets prefer to buy imported products," said Mansoor al Hamadani, a farmer in the northern town of Saham. "We need the government's intervention to either stop importing the food that is grown here or increase import duties."

Oman's traditional crop - dates - has also been affected by imports from nearby countries such as Iraq and Saudi Arabia.

Date farmers are baffled as to why the government does not protect the pride of Oman's farm produce.

"You cannot find better dates than local ones," said Mbarak al Essa, a date farmer in the eastern coastal town of Sur. "Yet, we face stiff competition from regional countries who are freely exporting their product here. I think the government must do something, like restricting foreign dates from being dumped here in huge quantity."

As part of the Gulf Co-operation Council, Oman has a unified and fixed import duty of five per cent on all products. So it is unlikely that the duties will be lifted any time soon or that imports will be taxed higher than local food. A complete ban on imported food is out of the question, according to officials at the ministry of commerce.

"We sympathise with the local growers' problems but there is no plan in the near future to increase import duty. It will also be in violation of the WTO's (World Trade Organisation) ruling to ban foreign food coming here," said a commerce ministry official, who spoke on condition of anonymity because he was not authorised to speak to the press.

When most of their goods fail to make it to the retail stores, some farmers set up stalls by the side of the roads to sell their goods to passing motorists.

"Only 30 per cent of my harvests are bought by large supermarkets, where the money really is. The rest I sell off at cut price here on the roadside. The problem is that there is a lot of competition for the pavement business," said Noor al Shaikh, 79, a farmer from Barka, north of Muscat.

Executives at the supermarkets refused to comment on why they preferred to stock foreign goods over local staples. But some distributors selling local and foreign foods to the retailers said consumers preferred the look of well-packaged products.

"Local growers need to work on their presentations and improve their packaging if they want to compete with foreign products," said Tamwar Khan, the manager of Horizon Foods Company in Muscat.

There is some support for the local growers. It comes from the corner shops that supply the neighbourhoods in smaller towns such as Samail, Bid Bid and Fanja.

"We stock locally grown food as much as we can and that goes for all other shops in this area," said Ali al Suroor, a shop owner in the north central town of Fanja. "It is the least we can do to support our farmers."

Have you been targeted?

Tuan Phan of SimplyFI.org lists five signs you have been mis-sold to:

1. Your pension fund has been placed inside an offshore insurance wrapper with a hefty upfront commission.

2. The money has been transferred into a structured note. These products have high upfront, recurring commission and should never be in a pension account.

3. You have also been sold investment funds with an upfront initial charge of around 5 per cent. ETFs, for example, have no upfront charges.

4. The adviser charges a 1 per cent charge for managing your assets. They are being paid for doing nothing. They have already claimed massive amounts in hidden upfront commission.

5. Total annual management cost for your pension account is 2 per cent or more, including platform, underlying fund and advice charges.

UAE Premiership

Results

Dubai Exiles 24-28 Jebel Ali Dragons
Abu Dhabi Harlequins 43-27 Dubai Hurricanes

Final
Abu Dhabi Harlequins v Jebel Ali Dragons, Friday, March 29, 5pm at The Sevens, Dubai

Company%20Profile
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Neo%20Mobility%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%20February%202023%3Cbr%3E%3Cstrong%3ECo-founders%3A%3C%2Fstrong%3E%20Abhishek%20Shah%20and%20Anish%20Garg%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Logistics%3Cbr%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20%2410%20million%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Delta%20Corp%2C%20Pyse%20Sustainability%20Fund%2C%20angel%20investors%3C%2Fp%3E%0A
The biog

Favourite pet: cats. She has two: Eva and Bito

Favourite city: Cape Town, South Africa

Hobby: Running. "I like to think I’m artsy but I’m not".

Favourite move: Romantic comedies, specifically Return to me. "I cry every time".

Favourite spot in Abu Dhabi: Saadiyat beach

THE CLOWN OF GAZA

Director: Abdulrahman Sabbah 

Starring: Alaa Meqdad

Rating: 4/5

RESULTS

 

Catchweight 63.5kg: Shakriyor Juraev (UZB) beat Bahez Khoshnaw (IRQ). Round 3 TKO (body kick)

Lightweight: Nart Abida (JOR) beat Moussa Salih (MAR). Round 1 by rear naked choke

Catchweight 79kg: Laid Zerhouni (ALG) beat Ahmed Saeb (IRQ). Round 1 TKO (punches)

Catchweight 58kg: Omar Al Hussaini (UAE) beat Mohamed Sahabdeen (SLA) Round 1 rear naked choke

Flyweight: Lina Fayyad (JOR) beat Sophia Haddouche (ALG) Round 2 TKO (ground and pound)

Catchweight 80kg: Badreddine Diani (MAR) beat Sofiane Aïssaoui (ALG) Round 2 TKO

Flyweight: Sabriye Sengul (TUR) beat Mona Ftouhi (TUN). Unanimous decision

Middleweight: Kher Khalifa Eshoushan (LIB) beat Essa Basem (JOR). Round 1 rear naked choke

Heavyweight: Mohamed Jumaa (SUD) beat Hassen Rahat (MAR). Round 1 TKO (ground and pound)

Lightweight: Abdullah Mohammad Ali Musalim (UAE beat Omar Emad (EGY). Round 1 triangle choke

Catchweight 62kg: Ali Taleb (IRQ) beat Mohamed El Mesbahi (MAR). Round 2 KO

Catchweight 88kg: Mohamad Osseili (LEB) beat Samir Zaidi (COM). Unanimous decision

AI traffic lights to ease congestion at seven points to Sheikh Zayed bin Sultan Street

The seven points are:

Shakhbout bin Sultan Street

Dhafeer Street

Hadbat Al Ghubainah Street (outbound)

Salama bint Butti Street

Al Dhafra Street

Rabdan Street

Umm Yifina Street exit (inbound)

Seven tips from Emirates NBD

1. Never respond to e-mails, calls or messages asking for account, card or internet banking details

2. Never store a card PIN (personal identification number) in your mobile or in your wallet

3. Ensure online shopping websites are secure and verified before providing card details

4. Change passwords periodically as a precautionary measure

5. Never share authentication data such as passwords, card PINs and OTPs  (one-time passwords) with third parties

6. Track bank notifications regarding transaction discrepancies

7. Report lost or stolen debit and credit cards immediately

While you're here

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

'Dark Waters'

Directed by: Todd Haynes

Starring: Mark Ruffalo, Anne Hathaway, William Jackson Harper 

Rating: ****

 

 

Ticket prices

General admission Dh295 (under-three free)

Buy a four-person Family & Friends ticket and pay for only three tickets, so the fourth family member is free

Buy tickets at: wbworldabudhabi.com/en/tickets