Siemens sets up operations in Oman
Closer presence essential to capitalise on growth, decides German giant
GERMAN ELECTRONICS and electrical engineering giant Siemens AG has set up a regional company in Oman in order to better position itself to exploit the growing Omani market.
The firm has established Siemens LLC Oman, a joint venture with Waleed Associates, a local company that has been its distribution partner in the country over the past 30 years.
Peter Fuchs, CEO of Siemens LLC lower Gulf region, said that Siemens decided to establish a company in Oman in part to have a closer physical presence to its customers in the country in line with its overall growth strategy for the region.
“We always say if you are not present in a country, you will always face difficulties to convince the consumer,” said Fuchs. “It is a strategy that definitely requests from the company that you are visible and not just for a few days at a time.”
“Before we worked with -- and will continue with -- the sales channel, we have a partnership with Waleed Associates. But we changed the strategy to be present directly in the country because it is requested at the end of the day,” he added.
Siemens will now have some 80 people working in Oman in comparison to about five people a year ago.
Ralf Fueller, CEO of the new company, Siemens LLC Oman, said the company was predicting significant growth in Oman as the market expanded.
“The Oman Government’s strategy ‘Vision 2020’ is focusing on diversification away from the current reliance on oil, to fostering foreign investment and developing the tourism and petrochemical sectors,” Fueller explained.
“With the establishment of a fully-fledged regional company in Oman, Siemens will be better positioned to play a significant role in the further development of Oman, not just with physical presence but also with the expertise of our global network of innovation,” he added.
Setting up regional companies is a key part of Siemens’ growth strategy for the Middle East, which currently accounts for approximately 5% of the company’s overall sales.
The company set up a regional branch in Qatar earlier this year and in Bahrain in December 2004. It also has a company in the UAE, which is headquartered in Abu Dhabi.
Siemens’ prior work in Oman includes its work on the development of Oman’s telecommunications networks, including the first totally Siemens-built GSM network launched in 1996.