Oman's growth generates interest in UAE ad industry

Advertising agencies in the UAE are increasingly showing interest in the Omani market, as the country's next-door neighbour registers a year-on-year increase of 19 per cent in advertising spend, according to figures provided in a 2007 report by the Pan Arab Research Centre.

Individual agencies, such as Fortune Promoseven, estimate their business in Oman could grow by nine to 10 per cent a year.

Recently, the Muscat Municipality invited UAE-based advertising agencies to bid for developing its outdoor advertising – mainly rooftops, building facades and highways. UAE-based agencies that have established regional branches in Oman are going to be part of the pitch.

The Omani advertising market has picked up momentum in the past few years. Currently estimated at above $171 million (around RO48m), based on the Pan Arab Research Centre 2007 report, the growth has been influenced by the new regulations introduced to the sultanate's media sector.

Allowing up to 70 per cent foreign ownership of advertising agencies has encouraged international agencies to set up shop. Liberalisation of media licences has largely stimulated advertising, resulting in the emergence of new media, such as private radio and weekend newspapers. All this makes space for larger advertising investments.

Despite this, the Omani advertising market does not exceed a one per cent to 1.5 per cent of the total ad-spend in the GCC region. However, advertising agencies are eying the future as promising.

Rajesh Raman, Vice-President, The Hodling Group, Oman, foresees a tremendous growth for the advertising industry in the next four years, based on the current economic boom.

"This is already evident in the growth during the first quarter of this year. New categories, such as telecommunications, tourism and real estate, will be the key drivers of this boom," he explained.

Real estate advertising registered the highest annual growth at 87 per cent. Advertisers such as Salaam Yitti (Dubai Holdings) and Yenkit Tourism (Majid Al Futtaim) are expected to enter the market soon.

With new telecommunications licences being issued, a second fixed line operator and five new mobile operators will soon enter the fray, resulting in a new momentum for advertising.

Azmi Yafi, CEO, Dubai Operations, Fortune Promoseven, said: "It's true that there are opportunities, but not as much as we currently have in Dubai. With the real estate sector just starting to grow, the market will steadily get stronger."

Oman contributes around two to three per cent of Fortune Promoseven's total business in the region.

"Oman is an important market in our region, and will be booming at some point soon. We are certainly looking forward to be part of this growth," Yafi said.

Currently, the top three advertising categories are automobiles, banks and telecommunications. The main advertisers are brands such as Oman Mobile, Bank Muscat, Nawras, The Wave and National Bank of Oman.