THURSDAY, MAY 7, 2015
BUSINESS
Lulu opens hypermarket for Oman Defense ministry
Store count reaches 115
MUSCAT: Oman’s Defense Ministry is partnering with UAE based Lulu Group for running
hypermarket at the Military Commercial
Complex near Muscat. The new retail shopping center will contribute to the morale of
the employees of the Ministry of Defense and
the armed forces were officially inaugurated
by Badr bin Saud Al-Busaidi, Oman Minister of
Defense. The new complex is prominently
located near the defence camp and close to
arterial roads to Muscat.
Mohamed bin Nasser Al-Rasby, Secretary
General of the Ministry of Defense, Chief of
Staff of the Sultan’s Armed Forces,
Commanders and Senior Officers of the
Armed Forces were present on the occasion.
Yusuff Ali MA, Managing Director of Lulu
Group, which runs the hypermarket, was also
present.
The Mall is designed to provide the goods
and basic necessities and luxuries at preferential rates for the employees of the Ministry of
defense and the armed forces, and will serve
as a large commercial market with many
recreational and service facilities. The complex was designed to serve all sections of
society, taking into account future expansions
and other support projects.
Built over 9160 Sq. meters the mall consists
of a supermarket selling food of all kinds and
types in addition to vegetables and fruit fresh
and hot food and bakery, the complex also
includes 22 outlets for diverse brands that fulfills the needs of shoppers from various cate-
gories. In addition there is a children’s play
corner and spacious food court that is approx.
1685 square meters, and with 6 restaurants
providing indoor and outdoor seating . The
store has prayer facilities for men and one for
women, each of them approx. 150 sq. mtrs.
there is also a vast car park that with 1600
holds, with dedicated slots for the disabled
and elderly.
The complex is managed by Lulu Group
which has extensive experience in operating
and managing such complexes with presence
across the Wilayats of the Sultanate which will
make it easier for the employees of the
Ministry of Defense and the armed forces to
take advantage of this. A team has been
formed to oversee the functioning of the
complex and follow prices and ensure the
quality of services provided. As a first stage a
preferential price will be offered on some
commodities for commissioned officers and
civilian and military personnel including
retired employees of the Ministry of Defense
and the armed forces, who will be the beneficiary of a special Membership Card.
Symbolically, the inauguration of the store
was marked with the launch of the Ministry of
Defense Membership Benefit Card. Other
important attendees to the event were key
delegates from the Ministry of Defense, prominent businessmen from different sectors and
various officials from the Lulu management.
Speaking after inauguration, Yusuff Ali MA,
said “Lulu has become an integral part of
Oman’s landscape over the last few years and
we are committed to extending our footprint
with plans to open 5 new stores in the next 18
months. This has been made possible only
because of His Majesty Sultan Qaboos bin
Said and the Government’s vision and policies
which encourages and provides a conducive
environment for businesses and deserves a
special mention”.
“The faith that has been bestowed upon us
has translated into growth and has been a
motivation for us to strive and do better. The
inauguration of the Al-Bandar - Lulu Complex
at Mawelah branch is a matter of great pride
for us as we join hands in a collaborative manner with the Oman’s Ministry of Defence,” he
added.
GIG announces KD3.7m
Q1 2015 net profit
National Agencies Group
signs landmark deal with
KGL for 2,400 KIA Mohaves
“This is yet another milestone in our successful partnership with KGL and the second
major Mohave deal we sign with them, the
first one was in 2009, supplying 550 vehicles.
These deals would not have been possible
without the strong support from
KIA Motors Corporation,” explained
Al-Mutawa. He also identified the
deal as a prime example of cooperation between two leading industry players and thanked KGL for
their valued trust.
This exclusive deal is the integral component of an agreement
between Kuwait Oil Company and
KGL reflecting the high level of
confidence in the KIA brand and
the service facilities operated by
National Agencies Group.
Ahmad Al-Mutawa
Yaqoub Al Wazzan
KIA’s largest SUV, the Mohave
Chairman & CEO
General Manager
Al-Mutawa Group
KGL
has proven to be a family favorite
in Kuwait thanks to powerful
SUVs in what is considered one of the largest engine specs, the capacity to seat up to seven
passengers and an array of modern technolodeals in Kuwait history.
Al-Mutawa Group Chairman and CEO gy suited for on and off-road driving.
Ahmed Al-Mutawa and KGL General Manager Customers purchasing the Mohave have the
Yaqoub Al-Wazzan were present to commem- choice between a 3.8-liter, V6 engine at
274hp and a 4.6-liter, V8 engine at 340hp.
orate the deal signing.
KUWAIT: National Agencies Group, the
authorized distributor of KIA Motors in Kuwait
and a subsidiary of Abdulaziz Al-Ali AlMutawa Group of companies, has signed a
deal with KGL to supply 2,400 KIA Mohave
StanChart sees UK bank tax
rising again amid HQ review
LONDON: Standard Chartered said it
expected Britain to increase its bank levy
again and the rising cost of the tax was a
key issue in its assessment of whether to
keep its headquarters in London or move
to Asia. Standard Chartered Chairman John
Peace told investors yesterday the Asiafocused bank had “no current plans to
move” but was keeping its domicile under
review.
Rival HSBC is formally reviewing the
best place for its HQ and will decide
whether to move in the next few months.
“We are listening carefully to our shareholders on this issue ... in light of the latest
increase in the bank levy, the likelihood of
further increases and the impact on the
group’s costs,” Peace said at the annual
shareholder meeting. Analysts said a move
could make more sense for Standard
Chartered than HSBC, but the bank had
other operating problems that would be a
higher priority for its new chief executive.
Former JPMorgan investment bank boss
Bill Winters is taking over as CEO from Peter
Sands on June 10. Winters started working
at the bank last week, and has been meeting shareholders and visiting operations.
Standard Chartered is trying to turn around
its performance after a torrid two years and
a purge of leadership. The bank is trying to
cut costs and shrink its loan book to
improve its profitability and deal with concerns about its capital.
The bank’s shares are up 13 percent
since Winters was appointed in February.
One shareholder at the meeting said
Winters was “the bearer of hope” for the
bank.
Former McKinsey consultant Sands told
investors he was proud of his 13 years at
the bank, including more than eight as
CEO. “Along the way we’ve had many ups
and downs, we’ve had great successes and
made our share of mistakes,” he said.
Peace said the bank was taking action to
revive its fortunes, but was “being careful
not to take any knee-jerk actions which
may damage the long term prospects.”
The bank also came under fire from
environmental group Greenpeace for
advising and funding a controversial
Australian coal mining project, and was
urged to end its relationship with any company involved in the Carmichael mine.
Peace said the bank was looking into the
issue and would go no further until it was
“satisfied with all the environmental
aspects,” but refused to say if it was funding
the project. — Reuters
KUWAIT: Gulf Insurance Group (GIG) announced
a net profit of KD 3.7 million ($ 12.4 million), or
20.86 fils per share, for the financial period ended March 31, 2015,with an increase of 22.8 percent or KD 694,370 ($2.3million) compared to
the profit reported for the same period last year.
Shareholder equity reached KD 82.5 million
($274.3 million), reflecting a growth of 3.7 percent or KD 2.9 million ($ 9.8 million) as at March
31, 2015 compared with the same period last
year. Book value per share reached fils 460 compared with fils 438 as at March 31 2014.
Gross written premium reached KD 54.3 million ($ 180.5 million), an increase of 0.7 percent
compared with the same period last yearof KD
53.9 million ($ 179.2 million).
Net technical reserves were raised from being
KD 106.8 million ($ 355.1 million) on December
31, 2014, reaching KD 115.3 million ($ 383.3 million) as at March 31, 2015.
This increase of KD 8.5 million ($28.2 million)
represents a growth of 7.9 percent, one which
Khaled Al-Hasan
supports the company’s technical operations
and to protect the policy holders rights, thereby
strengthening gig’s ability to withstand emergencies and risks that may rise in the future.
Total assets reached KD 360.9 million (US$ 1.2
billion) as at March 31, 2015, an increase of KD
13.7 million (US$ 45.6 million) or 3.9 percent
from Dec 31 2014.
Khaled Al-Hasan, GIG’s CEO said, “Our results
of the 1st quarter of 2015 reflect the growth we
have achieved. This is also a strong indication of
the Group’s ability to protect its assets and
shareholders’ equity.
It is also inline with our constant strive to
provide the best insurance services to our
clients across all markets we operate in, supported by our strategy for regional expansion
and increasing our domestic and regional market share.”
He added, “We thank our clients for these
achievements, as well as the support of our
shareholders, namely KIPCO - Kuwait Projects
Company (Holding) - and Fairfax Middle East Ltd.
I would also like to express my sincere appreciation to our dedicated employees for their
efforts.”
US productivity drops at
1.9% rate in first quarter
Jump in Labor costs points to slowing growth
WASHINGTON: US worker productivity declined in
the first three months of the year as labor costs
jumped, reflecting a slowdown in growth. The
Labor Department said yesterday that productivity,
which is the amount of output per hour of work,
fell at 1.9 percent rate in the first quarter.
Productivity dropped at a 2.1 percent rate in the
final three months of 2014.
Labor costs surged at a 5 percent rate in the first
quarter, after having increased 4.2 percent in the
fourth quarter. Falling productivity coupled with
higher labor costs are usually a negative for the
economy, since it implies additional expenses without improvements in worker efficiency. Increased
worker productivity generally fuels stronger economic performance.
But the figures can be an extremely volatile on
a quarterly basis. This is only the third back-to back
quarterly decrease in the past 25 years. Overall economic growth essentially flat-lined in the first quarter, rising at a tepid annual pace of only 0.2 percent,
the government reported last week. The combination of harsh winter weather, falling oil prices hurting domestic energy firms and a West Coast ports
dispute appears to have stifled the economy at the
start of the year. Gross domestic product had risen
at an annual rate of 2.2 percent in last year’s
October-December quarter.
The seemingly temporary factors at the start of
the year have led many economists to expect productivity to recover somewhat. “This is exactly what
happened at this time last year, when the unseasonably bad winter hit output more than employment,” said Paul Ashworth, chief US economist at
Capital Economics. “Productivity will rebound in
the second quarter and unit labor costs will drop
back.” Still, productivity has been rising at an annual rate of 0.6 percent, down from an average of 2.1
percent between 2000 and 2013. This means that
productivity gains have slowed in ways that can
ultimately limit broader economic growth.
Since the recession ended in mid-2009, labor
costs had mostly been limited. But cost pressures
have climbed as employers added 3.1 million jobs
in the past 12 months, causing the unemployment
rate to drop to 5.6 percent from 6.6 percent during
the same period. The rising employment costs likely reflect commissions and bonuses being paid to
workers, said Ian Shepherdson, chief economist of
Pantheon Macroeconomics, in a client note. Actual
wages paid by companies - which don’t include
bonuses - have barely improved. Average hourly
wages have risen just 2.1 percent in the past 12
months. —AP
CLAYCOMO: Workers weld body panels on the new aluminum-alloy body Ford F-150 truck at
the company’s Kansas City Assembly Plant in Claycomo, Missouri. The Labor Department
released first-quarter productivity data yesterday. —AP
Euro-zone business activity
starts Q2 on solid footing
LONDON: Euro-zone businesses started the second quarter with healthy growth as a buoyant
order book again encouraged them to hire more,
a survey showed yesterday.
Any sign that the bloc’s recovery is gaining
traction will be welcomed by the European
Central Bank, which embarked on a trillion-euro
bond buying stimulus program in March,
although the survey did show firms were still cutting prices. Markit’s final composite Purchasing
Managers’ Index, seen as a good guide to
growth, was 53.9 in April, ahead of an earlier
flash reading of 53.5 but just behind March’s 11month high of 54.0. A reading above 50 implies
growth. “The fact that the rate of growth failed to
gain further momentum is a disappointment,
but the national growth variations will give policymakers some real encouragement that the
economic health of the region is improving,” said
Chris Williamson, Markit’s chief economist.
The PMIs suggest quarter-on-quarter growth
of 0.4 percent for April-June, Williamson said,
which would match forecasts for first-quarter
growth. But to drive that growth firms cut prices
again - albeit less sharply in April. The composite
output price index, which rose to 49.2 from 48.9,
has now been below 50 for three years.
Official data last week showed the euro-zone
ended four months of deflation in March with
consumer prices unchanged from year-ago levels. Price discounting helped a PMI covering the
dominant service industry remain elevated. It
came in at 54.1, just shy of March’s eight-month
high of 54.2 but ahead of the flash 53.7 estimate.
The pace of new orders matched March’s near
four-year high of 54.6. That encouraged service
firms to increase staffing levels for a sixth month.
Detailed PMI data are only available under
license from Markit and customers need to apply
to Markit for a license. — Reuters