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BACK             Issue No. 3/2006

In this third quarterly issue of ECGA's News Bulletin, it is with great honor that the Export Credit Guarantee Agency will be hosting the bi-annual meeting of the Prague Club of the Berne Union that is of the Secretariat of Investment and Export Credit Insurers in Muscat in the first week of December 2006.

This is unique as it will be first such meeting to be held in the Arab and Middle-East Region. It is worth mentioning that ECGA of Oman was the first ECA from the Region to qualify for membership of the Berne Union.

The meeting in Muscat will be represented by ECAs from more than 30 countries in addition to expected invited speakers from multilateral and international organizations under the auspices of the Berne Union.

The contribution and support provided by the Agency through its valuable services to the Omani exporters is compiled in an article entitled "Facilities provided by ECGA spur higher growth of Omani Non-Oil Exports". The article looks at the contribution of the Agency and assesses performance of remarkable growth of Omani non-oil exports. It is encouraging that not only was the level of Omani non-oil exports increased remarkably but the Sultanate has enjoyed trade surplus during the last 5 years.
Under Hints to Exporters, the Agency sheds insights of the Do's and Don'ts for its credit insured exporters as required under the Export Credit Policy. The importance of prompt submissions of business declaration is emphasized as this is essential requirement for insured exporters to abide so as to ensure that their export shipments are on cover. Thus export shipments should be declared to Agency timely so as to guard the interest of the exporters in meeting the necessary obligations and conditions as stipulated in the Policy for credit cover.

The Agency congratulates the Oman Cables Company S.A.O.G as winner of the Exporter of the Year Award 2005 which took place during the Oman Excellency Award ceremony at Al Bustan as well as the other two finalists. The Agency was also bestowed by the organizers with the trophy for being the sponsor of the Exporter of the Year Award for 2005. ECGA has been associated with most of the Omani exporters since its inception in 1991. The Agency has been committed in providing valuable credit insurance, guarantee and financial services to increasing number of Omani exporters through the years. It acts as a catalyst through its various facilities in the promotion and development of Omani non-oil exports. It is worth mentioning that it was only last year, that ECGA won the Public Service Initiative Award in the very first year of its nomination. This was in recognition and manifestation of the long term support extended by the Agency to Omani exporters.

Under the Country Profile of Buyers of Omani Insured Exports, the level of exports and imports between Oman and Tunisia is revealed and the extent of ECGA's credit insurance to Omani exporters to that country. It is interesting to note that Oman has consistently sustained trade surplus with Tunisia during the last 5 years (2001 to 2005).
In our Q&A forum, this issue focuses on submission of timely declaration by exporters as well as claims and recoveries. It is highly essential for policyholders to understand their obligations under the Policy and to adhere to the various conditions stipulated under the Policy.
As per the section on the Omani Insured Exporter by ECGA, the Bulletin provides profile of Areej Vegetable oils & Derivatives (SAOG) as one of the major Omani non-oil exporters that has experienced successful growth of exports through its high quality vegetable oil products selling to customers world-wide.
Among the important events In the News, is the remarkable growth of domestic credit insurance offered by ECGA as Omani suppliers have also realized the need to mitigate credit risks from domestic buyers. It is also encouraging that the level of Omani exports for the first 6 months of 2005 has reasonably increased by over 13% compared to corresponding period of 2005.

Page 2-3
Facilities provided by ECGA spur higher growth of Omani Non-Oil Exports
Page 4
In the News
Page 5
- Country Profile of Omani Insured Exports
- Hints to Exporters
Page 6
- Questions & Answers
Page 7
- Omani Insured Exporter by ECGA
Areej Vegetable Oils & Derivatives SAOG
Page 8

The Agency is encouraged by positive comments from the number of our readers who felt that the ECGA News Bulletin provides timely, relevant, thought provoking and beneficial information to the exporters.
Thanking You,
Nasir bin Issa Al-Ismaily
General Manager
Facilities provided by ECGA spur higher growth of Omani Non-Oil Exports

The performance of Omani non-oil exports during the year 2005 compared to 2004 has been very encouraging and remarkable.
Export Credit Guarantee Agency (S.A.O.C) has actively provided its valuable facilities and services to growing number of Omani exporters.
The article that follows, discusses the Agency's contribution in supporting and meeting the needs of Omani exporters for credit insurance.
It also assesses the performance of Omani non-oil exports between 2004 and 2005.

The benefits to Omani exporters for availing ECGA’s services are several and have contributed to a certain extent to the growth of the Omani non-oil exports. These include minimization of risks through credit insurance, improving exporters liquidity through bills discounting under the Agency’s post-shipment financing scheme or through availability of working capital financing under pre-shipment export credit guarantee scheme arranged with the commercial banks.

As on end of 2005, ECGA has issued total credit limit of RO.178.7 million compared to RO. 166.5 million in 2004 or an increases of 7%. The number of overseas buyers rose from 3574 in 2004 to 3825 in 2005 while number of countries of credit insured exports reached 95 by the end of the year 2005. The list of countries where ECGA has insured Omani exports is provided on Page 4. Total business declared for exports insured to ECGA as on December 2005 amounted to RO.78.0 million. The Table and Charts that follow provide the highlights of its contribution and support of the export sector. The Omani exporters have long realized the importance of mitigating against both commercial and non- commercial risks as they increase their sales to existing buyers as well as sell and explore to new buyers at competitive credit terms knowing that the risks of non payment is covered by ECGA.

The export credit insurance cover provided by the Agency supports and follows the trade pattern between Oman and other GCC countries. As of 31st of December 2005, GCC countries represent 58.4% of credit limits issued or RO.104.3 million. This is very encouraging considering substantial portion of Omani non-oil exports are to the neighboring GCC countries. Within the GCC countries, UAE represents 50.5% of total credit limits followed by Saudi Arabia at 24.8%, Kuwait at 10.6%, Bahrain at 6.0% and Qatar at 7.8%. This is illustrated by the Pie Chart that follows:

Credit Limits issued by ECGA to GCC countries as of 31/12/2005
The growth for export credit insurance has been characterized by an upward trend with continuous increases of the need by Omani exporters to avail credit insurance services to many buyers world-wide so as to support higher exports as well as at the same time lessen the risk of non-payment and enjoy other related benefits such as post-shipment financing by way of export bills discounting with the commercial banks at concessional interest rates and availing pre-shipment financing for working capital financing.

 With the increases in the number of Omani exporters availing ECGA’s credit insurance services, this to a certain extent has contributed to the growth of the Omani non-oil exports through the years which has grown from RO.79.1 million in 1991 to RO.555.3 million in the year 2005, an encouraging cumulative growth rate of more than 602.02%. Hence apart from the tangible benefits that the exporters obtain from the credit insurance services, ECGA's credit insurance service has been one of the effective tools in encouraging and promoting Omani non-oil exports sector and contributed its share for such remarkable growth.


Credit Limits Issued by ECGA(in Million RO)

Number of Exporters availing ECGA's Services
Number of Countries of Exports insured by ECGA
Number of Foreign Buyers insured to exporters by ECGA
1991 3.6 4 10 43
1992 10.2 30 23 154
1993 22.0 38 34 410
1994 30.3 50 39 696
1995 38.2 60 50 952
1996 49.7 68 58 1198
1997 63.0 81 64 1412
1998 86.7 89 70 1757
1999 98.7 97 76 2077
2000 117.1 110 80 2310
2001 138.5 134 89 2711
2002 143.8 144 89 3057
2003 155.6 153 91 3345
2004 166.5 158 93 3574
2005 178.7 161 95 3825

The Sultanate, during the year 2005 exported to 119 countries world-wide. The list of countries and the exported rise of RO.80.6 million which was due to increases in the Omani non-oil exports (excluding re-exports).which ECGA has insured provided on Table I and II. As regards to the geographical distribution of Omani origin largest exports, GCC remains the single largest export destination in Omani origin products as it contributes 27 per cent of total non-oil Omani origin exports. This is followed by Arab countries (27 per cent), Asia (44 per Cent), Americas (2 per cent), Europe (13 per cent), and Africa (7 per cent).

Out of the total non-oil exports of RO.555.3 million in the year 2005, the largest exports were to UAE RO.194.0 million, India 70.5%, Saudi Arabia RO.53.6 million, Jordan RO.22.3 million and remaining RO.214.8 million to other countries.

As for re-exports of non-oil products of RO.583.8 million from Oman, UAE constitutes RO.316.8 million, Iran RO.48.7 million, Saudi Arabia RO.45.8 million, United Kingdom RO.16.4 million and remaining RO.156.0 million to other countries.
On world-wide basis, the Sultanate maintains trade surplus with 55 countries where its total exports were more than imports. As to the Omani non-oil exports to the 21 Arab countries in 2005, it amounted to RO.399.3 million which constituted 33.3% of total non-oil exports to all countries of the world. This is still very encouraging considering the inter-Arab trade is very small as it constitutes less than 10% of total trade. Thus, Oman is very unique considering more than one-third of its total exports is towards the Arab World. As per the trade statistics for 2005, Oman maintains trade surplus with thirteen Arab countries and deficit with only eight.

UAE is the highest importer from Oman among the Arab countries followed by Saudi Arabia, Jordan and Qatar. It is worth mentioning that 79.1% of the total Omani exports to the Arab countries are to GCC countries of which UAE alone constitutes more than 55.2%. It can be observed that during 2005, among the GCC countries, the highest imports to Oman were from UAE alone followed by Saudi Arabia Bahrain and Qatar.

As per the import figures, UAE represents the highest source of imports to Oman as it constitutes 83.3% of total GCC imports followed by Saudi Arabia at 9%, Bahrain at 5.5%, Qatar at 0.97% and Kuwait at 0.73%.

The Omani imports from the GCC countries have actually declined by almost 9.59% in the year 2005 compared to 2004 due to decreasing level of re-exports. The United Arab Emirates is still maintaining its top position among the major importer from and exporter to Oman and thus it is the first trading partner for many years due to its geographical proximity.

The table below provides the trade balance during the last five years that is from 2001 to 2005 on total exports (non-oil, re-exports and oil) and imports between Oman and other countries.

  2001 2002 2003 2004 2005
Total Exports 4258.0 4295.5 4486.6 5130.6 7187.0
Total Import 2229.3 2309.1 2527.0 3132.7 3394.0
Trade Balance 2028.7 1986.4 1959.6 1997.9 793.0

It can be observed that during the last five years Oman has maintained trade surplus (where its total exports exceed total imports) with the rest of the world. However, excluding oil, non-oil exports constitutes more than one-third of total imports for 2005.
Agricultural Products Confectionery Mud
- Air Conditioners - Cooking Oil - Packaging Products
- Air Fresheners, Perfumes - Copper Lags - Paints
- Aluminium - Corrugated Cartons - Paper Products
- Baby Diapers - Dairy Products - Perfumes
- Batteries - Detergents - Pharmaceuticals
- Beans - Egg Trays - Pipes & Fittings
- Biscuits - Electric Heaters - Plastic
- Cables - Electrical Items - Potatoes
- Calcium Silicate Bricks - Electrical Switchgears - Precision Castings
- Carbon dioxide - Filters - Printed Materials
- Carbonated Beverages - Fish - Radiators
- Cement - Footwear - Sanitary Ware
- Ceramic Stone - Furniture - Security and Safety equipment
- Ceramic Tiles - Garments - Steel Fabrication
- Chainlink Fences - Grit - Steel Furniture
- Chemical Products - Insecticides - Stone and Mineral
- Chips - Leather Products - Sulphonic Acid
- Color Profiles Sheets - Marble - Tea
- Computer Programs - Melamine Tableware - Tomato Ketchup
- Computer Softwares - Mineral Water
- Water Pumbs
- Computer Stationeries - Misc. Food Items. - Wires


1 Algeria 25 Greece 49 Mauritius 73 South Africa
2 Angola 26 Guinea 50 Morocco 74 Spain
3 Armenia 27 Hong Kong 51 Mozambique 75 Sri-Lanka
4 Australia 28 Hungary 52 Nepal 76 Sudan
5 Austria 29 Haiti 53 Netherlands 77 Sweden
6 Azerbaijan 30 India 54 New Zealand 78 Switzerland
7 Bahrain 31 Indonesia 55 Nigeria 79 Syrian Arab Republic
8 Bangladesh 32 Iran 56 Pakistan 80 Taiwan
9 Belgium 33 Iraq 57
Papua New Guinea
81 Tanzania
10 Botswana 34 Irish Republic 58 Philippines 82 Thailand
11 Brunei 35 Italy 59 Poland 83 Togo
12 Burundi 36 Ivory Coast 60 Portugal 84 unisia
13 Canada 37 Japan 61 Puerto Rico 85 Turkey
14 Chile 38 Jordan 62 Qatar 86 Uganda
15 China 39 Kazakhstan 63 Romania 87 Ukraine
16 Cyprus 40 Kenya 64 Russia 88 United Arab Emirates
17 Denmark 41 Korea (South) 65 Rwanda 89 United Kingdom
42 Kuwait 66 Saudi Arabia 90 United States
19 Egypt 43 Lebanon 67 Senegal 91 Yemen
20 Eritrea 44 Libya 68 Serbia 92 Zambia
21 Ethiopia 45 Madagascar 69 Seychelles 93 Burkina Faso
22 France 46 Malaysia 70 Singapore 94 Vietnam
23 Germany 47 Maldives 71 Slovakia 95 Malawi
24 Ghana 48 Malta 72 Slovenia 96  


1. Higher Growth of the Oman Non-oil Exports for the First Half of 2006

The level of the Omani exports for the first 6 months of 2006 amounted to RO.199.4 million compared to RO.176.4 for the corresponding 6 months period of 2005. This represents a growth rate of 13%.

2. Autumn Prague Club Meeting to be held in Muscat

The Autumn meeting of the Prague Club will be held in Muscat, Oman from December 4th to 6th hosted by the Export Credit Guarantee Agency of the Sultanate of Oman in coordination with the Secretariat of the Berne Union that is the International Association of Investment and Export Credit. The Prague Club held its first bi-annual meeting of the year 2006 in Belgrade, Serbia hosted by SMECA -the Serbia & Montenegro Export Credit Agency from 15th May to 18th May 2006. During its meeting in Belgrade, Mr. Nasir bin Issa Al-Ismaily was appointed as one of the members of the Working Group of the Prague Club which also included representatives from Thailand, Philippines, Bosnia Hezegovina, Estonia, Hungary and Czech Republic.

Oman Cables Industry won the Prestigious of the Export Award for 2005

Oman Cables Industry (OCI) recently won the prestigious Export Award – 2005 at the eighth annual Oman Award for Excellence. Mr. Mohammed bin Mustafa Al Lawati, Assistant General Manager, received the award from Mr. Nasir bin Issa Al Ismaily, General Manager, Export Credit Guarantee Agency (ECGA). The award was given in recognition of the excellent export performance last year.
OCI exports more than 64 percent of products to countries in Europe, GCC and Far East and has opened regional offices in many countries to provide distributors with logistical, marketing and technical support.

Annual General Meeting of the Credit Alliance held in Paris - France

The annual general meeting of the Credit Alliance was held in Paris - France from 4th July to 7th July 2006. Apart from COFACE and its owned subsidiaries, a number of ECAs being partners of the Credit Alliance Network participated in the meeting. The annual meeting was preceded by the Regional Meeting for Africa/Middle- East Group. The General Steering Committee of the Alliance also held its meeting after the annual meeting.
The General Manager of ECGA Mr. Nasir Issa Al Ismaily presented the Exporter of the Year Award 2005 to Mr. Mohammed bin Mustafa Mukhtar of the Oman Cables Co.

5. Recognition of Ten Years of Services & Merit Certificate Awards

Mr. Imaad Soud Al-Harthy and Mr. Anil Karnawat completed 10 years services with ECGA. To mark this occasion, they were awarded with the memorabilia presented to them by the General Manager.

It is also worth mentioning that Mr. Said Al-Mehdi, Senior Underwriting Officer was awarded with Merit Certificate for his achievement as the best employee of the year 2005.

6. Remarkable growth of domestic credit insurance

Omani credit insured exporters have long realized the importance of mitigating their credit risks with buyers by insuring their exports with ECGA. This has also been reflected by substantial growth of domestic credit insurance where it registered tremendous growth for credit insurance cover on local buyers. The level of credit limits approved under domestic credit insurance has grown up by 83.6% compared to corresponding 3 months period of 2005. Moreover for the same period, the level of premium income for domestic cover has increased by more than 27%. ECGA has continued to be highly successful in meeting its target for domestic credit insurance business.

7.Reinsurers visited ECGA

As part of routine visits, two representatives from M/s. Atradius Reinsurance Ltd, one of the Agency's reinsurers under Quota Share Reinsurance Treaty, visited ECGA on 26th April 2006. The reinsurers made a presentation with regard to the activities, operational and financial performance of M/s. Atradius over the past years as well as detailed profile of their company. Coverage for exports to difficult markets were also presented accordingly. Furthermore, the reinsurers were briefed about underwriting, claims, and recovery procedures adopted by the Agency and were also demonstrated ECGA's computerized system pertaining to operational matters. It is relevant to mention that the other lead reinsurer M/s. Natonal Borg also made a similar visit to the Agency earlier.


Tunisia is situated in Northern Africa, between Algeria and Libya. The total area of the country is 163,610 square kilometers. The capital city is Tunis. The population of Tunisia is 10,175,014 (July 2006 EST.).  

 Export Credit Guarantee Agency (SAOC) has insured Omani exports to various products to Tunisia including fish and marine products, polypropylene products, biscuits and chocolate coated products, automotive batteries and power appliances, tomato ketchup and hot sauces etc. The total credit limits issued by the Agency to date amounted to RO.690,000/- in which RO.567,000/- or almost 82% under letters of credit and remaining 18% RO.123,000/- are on Open Credit. The Agency has not paid any claims to insured Omani exporters to Tunisia yet.

 During the year 2005, total Omani exports (excluding oil) to Tunisia were RO.1,429,510/-, while imports were RO.100,144/-. The Omani exports and imports to Tunisia for the last 5 years are listed below. Thus Oman has maintained substantial a net trade surplus with Tunisia for the last 5 years.

(All figures in RO.)

Years 2001 2002 2003 2004 2005
Exports 2,097,214 2,021,225 2,274,731 1,872,696 1,429,510
Imports 1,353,573 728,966 448,536 180,910 100,144
Surplus 743,641 1,292,259 1,826,570 1,691,786 1,329,366

Source: Extracted from Foreign Trade Statistics.
As per D&B COUNTRY RISK INDICATOR, Tunisia’s risk outlook is supported by sound macroeconomic fundamentals and policy.

 A number of ECAs provide full cover for Tunisia including US Eximbank, Atradius, ECGD and Euler Hermes UK and COFACE. The recommended terms of payment are (Sight Draft) SD with usual terms of 60 - 90 days.

Please do
Please do not
Do declare all your shipments /business to ECGA by the 10th of the following month
Failure to declare your business to ECGA on time may result is refusal of cover as due performance and observe of each and very stipulation of the Export Credit Policy is a condition precedent to any liability 
Must declare all shipments made during the previous month on or before the tenth day of each month
Delay in submitting monthly declaration to ECGA. This despite several written reminders from the Agency
Should inform the Agency all amounts which at the end of previous month remain unpaid for more than two months from the original due date.
Fail to inform the Agency of amounts outstanding which are overdue within the stipulated period.
Take all possible steps to minimize or prevent the loss and inform ECGA accordingly
Effect further shipments while previous export bills are overdue to the buyer.
Obtain ECGA’s approval in advance to a postponement of the due date of payment from the buyer
Agree to postponement of extension of further period for payment by the buyer without consulting with ECGA


 Q.  When should the Policyholder submit details of credit insured export sales?

A.  Submission of all export sales made during a particular month should be made on or before 10th day of the following month as per clause 6(a) of the Export Credit Policy.

 Q.  Is late declaration considered as violation of the terms of Policy?

A.  Yes it is. It is clearly mentioned in the Policy that the Policyholders are required to submit all declaration of sales latest by 10th of the following month.

  Q. What will be the consequences of late submission of declaration of export business?

A.  As it is a violation of Policy, the Insurer, (ECGA) has the right to refuse, to accept the export sales declarations after stipulated time.  Thus, your export sales already made will be off cover.  Hence it is highly important that all your sales whether it is domestic or exports are declared in time.

 Q.  When should the policyholder submit Declaration Form of overdue debt?

A.  Notification of all payments related to credit insured exports not received within 2 months from the due dates should be sent to the Agency on the Overdue Declaration Form.  The declaration should be sent on or before the 10th of every month.

Q.  What is expected from the exporter towards maximizing the recovery?

A.  The exporter should keep the Agency informed of all steps already taken towards recovery of amounts in default. The Agency will also suggest certain course of action for recovery based on the development and circumstances.

 Q. Does ECGA contribute to recovery costs?

A. Yes, the Agency will reimburse the policyholder the legal fees paid to lawyers in the buyer’s country up to the proportion in which liability for the debt has been admitted by ECGA. Also the policyholder should obtain concurrence form the Agency to initiate legal action for recovery.

 Q. What action as policyholder should take when recoveries are received from buyer?

A.  All proceeds of recovery action must be remitted in full promptly to ECGA for allocation. The Agency will then allocate proportion in which the original loss was shared.

 Q.  Does ECGA take over recovery action once a claim has been paid?

A.  After payment of a claim, ECGA has the right to take over the debt, but while it does exercise this right in some instances, it will normally require the policyholder to continue recovery action along the path already agreed with ECGA subject to any further requirements it may have.

 Q. Having known that the buyer is facing financial difficulties, I have allowed discount to the buyer for full and final settlement for reduced amount than the invoiced amount.  Can I lodge a claim with ECGA to the extent of discount amount granted to the buyer?

A.  No, as per the terms of the policy, you are only entitled to lodge a claim with ECGA if any receivable from the buyer exists.  In this case, since you have accepted reduced amount as full settlement, no more receivable from the buyer.  As such there is no default from the buyer’s side.

 Q.  In general, is there a set time by which a claim will be paid by ECGA?

A.  As you may have noticed from reading of your Export Credit Policy, it contains no undertaking to pay a claim at or by a particular time.  The Policy merely specifies a minimum period of time after which loss can be ascertained.  This particular point in time is known as the ' date of ascertainment of loss' - which must be reached before any claim can be met.  This obligatory waiting period - for that is what it is - serves a valuable function. It helps both ECGA and the policyholder to distinguish short-lived 'accidental' delays in payment from the true default which persists long enough to reflect a real loss.

Omani Insured Exporter by ECGA


Areej Vegetable Oils & Derivatives SAOG is one of the first Omani exporting companies which availed ECGA's services that is in 1992. The company was established in 1980 with a majority shareholding of the OMZEST Group. It has a modern hygienic plant and manufactures and markets top quality cooking oils, ghee, margarine, speciality fats and butter products.

 The Company's leading brands, include MINARA, SOHAR, JABAL AKHDAR and MUSCAT MARGARINE are trusted names in every Omani home. Areej Vegetable Oils enjoy 65% market share in Oman and current exports are 70% of total business. The Company exports to 27 countries around the world. 

The company’s latest product innovation involves MINARA in a transparent bottle that reflects sunflowers in a 3-Dimensional mode

 The Company has a track record in innovations VIZ. the bag-in-carton cooking oil that was a huge success in Oman and UAE. SOHAR was the first blended oil in the GCC to suit Omani frying habits. MINARA was the first cooking oil in a crystal clear bottle to make an entry in the GCC market. Furthermore, it was the first PET bottle to be launched in the GCC with a handle. Exports got a major fillip with the manufacture and sale of private label brands in PET bottles with handles.

The company continues to grow in new markets with products such as Ghee in tins, bag-in-box, polyjars, Cooking oil in tins, Blended oil in clear PET bottles, Speciality oils and shortenings.

 Multinationals like PEPSICO (SNACKS), UNILEVER, EMBORG source their requirements for the Gulf from Areej Vegetable Oils. This is ample testimony of the quality standards that have earned the company its much deserved success. Among its various brands of its main products include the following:

Products Brand
Cooking Oils JABAL AKHDAR - Palm Olein Cooking Oil , MINARA - Pure Sunflower Oil, SINDBAD - Refined Palm Olein, SOHAR - Blended Corn Oil and TAJ - Pure Corn Oil
Fats FIRDAUS - Superior Quality Vegetable Ghee, GOLDSPOON - Vegetable Ghee, HAFLA -Blended Dairy and Vegetable Ghee and SPECIALITY FATS - For the Biscuit and Snack Food Industry.
Margarine BAKERS - Cake Margarine blocks, Pastry Margarine blocks, AWAFI - Crème Margarine, Croissant Margarine and MUSCAT - Table Margarine Tablets
Butter AWAFI - Pure and Blended Butter blocks and PRIVATE LABELS

The chart shows the volume of export sales of Areej Vegetable during the last 6 years
"To be a competitive manufacturer in a small country like Oman, you have to export. It’s as simple as that in a free trade economy.

But you may ask, how does a company engaged in a very common industry export like ours? Every country in the GCC and Middle East refines and packs vegetable oils. Some countries have many refineries. The UAE has five. Saudi Arabia has three huge plants. Kuwait has one. Oman has two. Areej Vegetable Oils SAOG is just one of them, situated next to the Rusayl Industrial Estate.

The answer is simple. Innovate, innovate and keep innovating. Innovations can be small or big, it does not matter. Innovations can be in products (brands) or processes (cost). This too does not matter. What matters is that the end result is liked by the consumer. If so, it adds to consumer value and shows up as increased sales. There are so many brands of cooking oil in the supermarket shelf today that it gets very confusing. Which one to buy? Let us for a moment consider the packaging of just one brand of one vegetable oil viz MINARA sunflower oil.

Recall the first time you saw clear pure vegetable oil in a transparent bottle. Was it MAZOLA corn oil in a clear round glass bottle made by a big USA multinational giant or was it MINARA sunflower oil in a clear round bottle with a beautiful handle made by a small Omani Company ? Weren’t you pleased with the clarity, purity and colour of the oil and the convenience of the bottle in use. Seeing is believing. That innovation sold millions of bottles. That innovation has made MINARA a household name in the GCC and Iraq and Oman’s leading export brand.

May we share a secret. Have you seen the beautiful sparkling new MINARA bottle where the oil is so pure and clear that you can read the label through the oil? Please don’t just look at the photograph above. See it for yourself in your nearest supermarket. There is no other bottle in the world quite like it. It’s just another innovation……., backed by the Export Credit Guarantee Agency (ECGA)". Commented by Areej Vegetables Oils & Derivatives SAOG.



ECGA appreciates greatly for being bestowed with the trophy as sponsor of the coveted Sponsor of the Exporter of the Year Award 2005. This is a manifestation of our commitment to support the Omani exporters by extending its valuable services to them.

ECGA also congratulates the winners of the Exporter of the Year 2005 - Oman Cables Company S.A.O.G as well as the other two finalists – Al Jazeera Tube Mills Company SAOG & Ali & Abdul Kareem Group.

The Omani exporters have long recognized and appreciated that one of the major keys to success is to insure with ECGA for safe export business.  As exporters focus on exports, ECGA covers the risks.


ECGA is here to help you minimize your risks. It covers the following risks :-

Commercial Risks

Buyer’s insolvency/bankruptcy
Buyer’s failure to pay
Buyer refusing delivery of goods

Non-Commercial Risks

Foreign exchange transfer delay
Import bans or cancellation of import licence
Payment moratorium
War, civil disorder, natural disasters

Other benefits of services provided to credit insured exporters include domestic credit insurance, post shipment financing through bills discounting by commercial banks as well as issuance of guarantees to commercial banks for pre-shipment financing needs of the exporters.isasters
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