Management Discussion and Analysis Report

Al Anwar Investments SAOG (AAI) was incorporated on 20th December, 1994 as a publicly listed company on Muscat Stock Exchange (MSX). Over the last twenty-eight years, Al Anwar has founded a number of successful companies such as Al Maha Ceramics, Voltamp and Arabia Falcon Insurance.

In the next 3 years Al Anwar plans to grow its asset base by raising its paid-up capital, enhancing the value of its investments and by deploying capital in new investments.


Al Anwar is a significant minority shareholder in a number of private and publicly listed companies in Oman. Al Anwar follows a private equity model of investing and is an active investor. Al Anwar invest in companies with the intention of improving the business performance and enhancing the value of the company.

Al Anwar mission is to support, create and nurture successful entities which create and enhance long term value for the stakeholders through:

  • Investing in companies with scalable, creative and sustainable Business Model.
  • Enhancing Corporate Governance and ensuring adequate systems and procedures.
  • Focusing on execution and operational excellence.


  • The year 2021 was a challenging year for Oman’s economy. The COVID-19 pandemicprompted the Government of Oman to undertake a set of precautionary measures including border closures, partial and full lockdown, and reduction in workplace attendance. Such measures had negative impact on the economic activity.
  • Total public spending in 2021 was estimated to be OMR 12.17 bil (6% lower than 2020). In addition, investment exposure reduced from OMR 2.4 bil in 2020 to OMR 1.1 bil in 2021. This along with the introduction of Value Added Tax (VAT) effective from 16th April 2021 had a negative impact on consumer and business spending.
  • Oman’s Government announced a Budget for 2022 with a fiscal deficit of OMR 1.5 billion. Public spending is estimated to be OMR 12.1 billion in 2022. Aggregate public revenue is also projected at OMR 10.6 billion in 2022, based on assumed oil price of US$ 50 per barrel and a production of around 1.05 million barrels per day.
  • Oil prices since December 2021 have recovered and have been trading at around USD 100-120 per barrel since March 2022. The increase in oil prices and the reopening of business activity should improve the economic activity in 2022. In addition, the increase of Oman credit rating by some of the credit rating agency provides a positive outlook for Oman’s economy


In the last 5 years MSX 30 Index declined by over 24% from 5,550 in April 2017 to 4,205 in March 2022.As a result, a large number of companies are trading below book value.


Description Mar-20 Mar-21 Mar-22
Banking and Investments 2.64 3.07 4.19
Services 1.23 1.22 1.24
Industry 0.35 0.25 0.38
Total Market capitalization 4.22 4.54 5.81

Since March 2020, the total market capitalization of MSXhas increased by approximately OMR 1.6 billion. This is primarily due to increase in the market capitalization of Bank Muscat, NBO and Sohar International.

The value of traded securities during 2021 reached OMR 820 million increase of 45% compared with last year.


AAI remains cautiously optimistic on Oman economy. We are aware that the current economic environment represents an opportune time to invest in sectors that will benefit from the recovery of Oman’s economy.


During the period FY2007-08 to FY2021-22, shareholders of AAI have generated total return of 213% (cash dividends received + change in share price), which is around 9.2% p.a. CAGR.

Consolidated shareholder’s equity for the last 15 years are as follows:

The profitability for the year ended 31st March 2022 was impacted mainly due reduction of profits in our Associates, and the significant decrease in the value of our investments in MSX marked at market value.

Owing to the inherent balance sheet strength and comfortable Debt/Equity position, AAIhas rewarded its shareholders with healthy cash dividends in the last 5 years.

Growth in our investment portfolio over the years has been achieved whilst maintaining a manageable leverage position.  As of 31st March 2022, our Debt/ Equity ratio was 0.51.

AAI maintains a cautiously optimistic approach with the core focus on manufacturing, financial services and education sector. We have a strong manufacturing cluster which has constantly produced good returns.  Our other clusters, financial services and education,have high growth potential.  Our investments are mostly long-termand we have a very small amount of trading investments.  Our objective is to ensure that we increase the profitability and consequently the value of each of our investment.

Our investment portfolio as of 31st March 2022 by clusters is as follows:

Our returns and our share of net assets of our associates and other significant investments for the year ended 31st March 2022are as follows:


Name of the Company (OMR’000) % holding Carrying Value Share of Profit/ (Loss) Dividend Share of Net Assets
Voltamp Energy SAOG 24.68% 4,469 (169) 60 4,533
Al Maha Ceramics Company SAOG 23.74% 2,909 582 392 2,707
Arabia Falcon Insurance Co. SAOC 22.62% 4,660 379 280 4,609
The National Detergent co. SAOG 25.24% 5,394 (15) 4,164
National Biscuit Industries SAOG 29.22% 2,311 115 44 2,172
Oman Chlorine SAOG 22.15% 7,239 (57) 264 4,690
Al Ruwad International Education Services SAOC 43.51% 4,438 (83) 1,784

Other Investments

Name of the Company (OMR’000) % holding Carrying Value Fair Value Gain Dividend Income Share of Net Assets
Ominvest Perpetual Bonds (7.75%) 6.27% 3,800 NA 519 3,800
Dhofar International Dev.& Investment Holding SAOG (DIDIC) 6.73% 4,547 (2,348) 8,134
Almondz Global Securities Ltd. 11.94% 1,536 1,059 1,063
Bank Dhofar 0.3% 1,031 81 19 1,625

The cornerstones of our next three-year investment strategy are:

  1. Improvement of performance of our investee companies
  2. Monetization ofcertain investments
  3. Investment in new companies which have potential to grow as economic conditions improve


AAI has a robust Risk Management framework in place that adheres to industry best practices. Risk Management is embedded in all core business functions and is an integral part of the business strategy. AAI follows a proactive Risk Management approach in remediating internal and external risks through conducting regular risk assessment of its portfolio companies, operating environment and taking proactive action to mitigate emerging risks.

Risk issues impacting portfolio companies are proactively managed through close working relationships with investee companies and the prudent oversight of our Board representatives. Broadly, these risks take the form of increasing costs/ decreasing margins, competition from other sources of supply and shifts in customer preference for other solutions. Also, each of the investee companies have their own risk management process in place.

The COVID-19 pandemic has caused steep reductions in global economic activity severely hampering the businesses and human lives across the world. The underlying businesses of AAI are facing challenges in this regard and in our Associates, we have undertaken series of action plans, including cost rationalization, streamlining production processes and seeking industry support from the Government of Oman to circumvent the challenges and continue to generate value for our shareholders in these challenging times. Our immediate objective is to maintain values of our investment and ensure that they are profitable and do not face liquidity challenges.


We acknowledge the contribution of our Board Members for their wisdom and valuable guidance which has helped us in successful implementation of our strategy. Further, we appreciate the confidence entrusted by our shareholders.

Khalid Al Eisri
Chief Executive Officer