Friday, December 01, 2023 | Jumada al-ula 16, 1445 H
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MSX closes week marginally lower


The MSX30 Index ended the week lower by 0.14 per cent. All sub-indices ended lower except financial index which gained by 0.40 per cent. Services & Industrial Index closed lower by 0.88 per cent and 1.48 per cent, respectively. MSX Shariah Index closed lower by 0.02 per cent.

Galfar Engineering & Contracting Company has been awarded a new contract worth RO 21million by the Tender Board for the Rehabilitation of the Southern Runway and Air Corridors of Muscat International Airport Project, the company said in a filing to the Muscat Stock Exchange.

The firm said that the estimated value of this project, which will be executed for the Civil Aviation Authority, is approximately RO 21 million. The execution period of the project is 16 months from the issuance of the work commencement order.

Galfar Engineering said this new project is expected to contribute to the company revenues and strengthen its presence in such vital infrastructure projects.

Sweets of Oman SAOG disclosed that a criminal case was lodged against its previous employees (The General Manager, Finance Manager, Assistant Finance Manager, Purchase Manager, and Information Technology Manager) and the criminal case is now with the Economic Crimes Section Department of Information Technology.

The Company suspended the above employees from work because the Board of Directors discovered misstatements in the financial statements and dismissed them.

The misstatement in the finance — as per the report of the auditors Price Waterhouse Coopers — occurred in the financial statements for the years 2017 — 2018¬2019 - and until June 30, 2020 - the second quarter of the financial year ended on December 31, 2020. The company, with the approval of the government, appointed a specialised auditing company to verify any other frauds and the company shall receive the report in the near future.

As for the financial impact resulting from the above mentioned misstatements the company incurred huge loss of amounts as shown in the financial statements which were disclosed previously in this regard. As such the business of the company is duly affected as a result of these financial losses incurred by the company.

The Sultanate’s budget deficit dropped to RO 1.05 billion in the first eight months of 2021 from RO 1.96 billion in the same period of 2020, a reduction of more than RO 900 million, according to data released by the Ministry of Finance.

Oman recorded a 13.9 per cent increase in government revenues in the first eight months of 2021 as oil and gas prices during this period remained higher compared with the same period a year ago.

Total revenues rose to RO 6.330 billion during the January–August period against RO 5.554 billion recorded in the same period of 2020. By the end of August 2021, total public spending amounted to RO 7.38 billion, a decrease of 1.7 per cent compared with RO 7.51 billiion in the same period in 2020. Drop in deficit would be taken positively by foreign investors and we might see more inflows in Oman in coming period.

IMF issued estimates for Oman in its semi-annual report last week. The Current Account Deficit to GDP is estimated to have touched -13.7 per cent while inflation was approximately -0.9 per cent during 2020.

Going forward, with the government actions as per the medium-term fiscal plan 2020-24, better oil prices and high oil and gas production in coming years, Oman real GDP is estimated to grow by 2.48 per cent in 2021 and 2.93 per cent in 2022 and current account deficit to GDP is estimated to improve to -0.94 per cent in 2022 and -0.44 per cent in 2023. Inflation will be higher in 2021 and 2022, on account of VAT implementation in April 2021 and surge in commodity prices in general.

[Courtesy: U-Capital]

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