Leaving outdoor lights on during the day is a violation. It can also mean fines up to QR 10,000. What are you waiting for? Install a timer now. Bad habits cost.
In accordance with Conservation Law no. 20/2015
Ignoring internal leakage is a violation. It can also mean fines up to QR 10,000. Fix it now. Your hose and your wallet will thank you. Bad habits cost.
In accordance with Conservation Law no. 20/2015
Using flushing tools to wash your car is a violation. It can also mean fines up to QR 20,000. It’s about time to use a bucket, or to install a low-flow hose nozzle. It’s as simple as that. Bad habits cost.
In accordance with Conservation Law no. 20/2015
contents
January 2016
75
Issues in Images
Read more of the edge at www.theedge.me
34 “Qatar, typical of many of the Gulf countries, is a nation marching towards tomorrow, walking to the frantic beat of Doha’s developmental drum.” ― The Edge Issue 1, July 2009.
In the launch edition of The Edge in July 2009, we took a close look at how Qatar was preparing itself for development on a grand scale as well as implementing plans to wean itself from dependence on hydrocarbons in the form of economic diversification.
cover story 34
Celebrating its 75th issue, The Edge brings 75 editions in images, highlighting stories since 2009, including the entry of Vodafone, Qatar’s winning bid for the 2022 World Cup, the rise of Arab Spring, inauguration of 75 Issues in Images: Photojournalism in focus The Shard, and the changing of Qatar’s leadership, etcetera. Special Commemorative Edition
- January 2016
Vol. 8 No. 1
sectors Finance and Markets
23
For well over a decade now rumours of an impending value added tax (VAT) implementation have been circulating across the Gulf Cooperation Council (GCC). More often than not those rumours fluctuate with the price of a barrel of oil, yet it would be wrong to assume that it has been this one factor alone that enabled the VAT implementation debate to absorb so much newsprint over the years, writes Stuart Halstead.
- QATAR’S BUSINESS MAGAZINE - Vol. 8 No. 1 - Issue 75 - January 2016
Energy & Sustainability 25
Eight international oil companies (IOCs) are reportedly in discussions with the stateowned Qatar Petroleum about taking over the Al Shaheen oifield’s development, writes The Edge’s global energy editor Simon Watkins.
facebook.com/theedgeqatar twitter.com/TheEdgeQatar linkedin.com/company/ the-edge-magazine-qatar
Real Estate & Construction
A tax rate of between three percent and five percent is being considered by the member states of the Gulf Cooperation Council. (Image Arabian Eye/Corbis)
25
Visitors look at an oil purification unit at the Qatar Petroleum Company booth during an energy sector event at the Bahrain International Exhibition Centre. (Image Arabian Eye/Reuters)
29
Connect with us online www.gingercamelmedianetwork.com/edge
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Qatar’s real estate sector is expected to have a challenging year in 2016 as the sustained lower oil price and the demand-supply mismatch in some segments of the property market continue to impact its performance. By Syed Ameen Kader.
The commercial accommodation sector could be affected the most considering the fact that a substantial amount of new office space is entering the market when the demand is already low. (Image FotoArabia)
The Edge | 3
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Tech & Communications 31
Voice over LTE (VoLTE), the latest technological advancement to enter the mobile segment in Qatar, promises significantly better voice quality, writes M. Iqbal.
Ooredoo’s engineers are now working in hundreds of locations across Doha to optimise the VoLTE service for the planned commercial launch in 2016. (Image Ooredoo)
Business Insight
83
Tajana Trtanj, general manager, B/Attitude Doha, a lifestyle destination for people in search of a holistic approach to health, highlights the advantages one derives from their D/Code DNA tests. Peter Todd, dean of HEC Paris, speaks about the current paradigm of executive education and the plans that the institution has in Qatar and the region.
“We are trying to build a portfolio of presence around degree programmes, executive education, custom programmes and open enrolment programmes,” Peter Todd, dean of HEC Paris, told The Edge.
regulars From the Editor Business News
8 10
Qatar Perspectives Products
4 | The Edge
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publications director mohamed jaidah m.jaidah@firefly-me.com general manager joe marritt j.marritt@firefly-me.com managing editor miles masterson m.masterson@theedge-me.com senior business editor aparajita mukherjee a.mukherjee@theedge-me.com deputy editor farwa zahra f.zahra@theedge-me.com associate editor ameen kader syed a.syed@firefly-me.com global energy editor simon watkins s.watkins@theedge-me.com international sales director julia toon j.toon@firefly-me.com | +974 66880228 head of business sales manu parmar m.parmar@firefly-me.com | +974 33325038 sales manager adam kynnersley a.kynnersley@firefly-me.com | +974 66079716 deputy sales manager shalaka dhaigude s.dhaigude@firefly-me.com | +974 66264790 senior advertising manager UAE nesreen shalaby n.shalaby@urjuan-me.com | +971 507199707 distribution & subscriptions azqa haroon/joseph issac a.haroon@firefly-me.com/ j.issac@firefly-me.com art director sarah jabari production manager/senior designer srimani welagedara finaliser ron baron printer ali bin ali printing press Doha, Qatar
firefly communications PO Box 11596, Doha , Qatar Tel: +974 44340360 / Fax: +974 44340359 www.firefly-me.com
The Edge is printed monthly Š 2016 Firefly Communications. All material strictly copyright and all rights reserved. Reproduction in whole or in part, without the prior written permission of Firefly Communications, is strictly forbidden. All content is believed to be factual at the time of publication. Views expressed by contributors are their own derived opinions and not necessarily endorsed by The Edge or Firefly Communications. No responsibility or liability is accepted by the editorial staff or the publishers for any loss occasioned to any individual or company, legal or physical, acting or refraining from action as a result of any statement, fact, figure, expression of opinion or belief contained in The Edge. The publisher (Firefly Communications) does not officially endorse any advertising or advertorial content for third party products. Photography/image credits and copyright, where not specifically stated, are that of Shutterstock and/or iStock Photo or Firefly Communications.
6 | The Edge
editor’s letter In publishing, commemorative issues do not come around often, but when they do, it can be a challenge to come up with some way to celebrate a particular milestone. It must of course be done in a manner that honours the magazine in question and its primary subject matter, is not boring, and is also at the same time somewhat original. In the past few years, The Edge has experienced its 50th issue as well as its fifth birthday, both under my purview as managing editor. In the former, our December 2013 edition, we played on the number 50 and focused on 50 Quotes, Covers and People who had made their mark on the magazine thus far. In the next, our fifth birthday in August 2014, we focused more on the topics and articles that The Edge had featured since its inception in 2009. Recently, facing yet another anniversary issue, this time our 75th, it was a particular challenge for us to come up with an angle, a hook, some means of showcasing our previous 74 editions of content. And so to this special 75th edition which is our first ever photo edition (printed in the slightly larger format of the original magazine, on different paper than usual to do it justice and as a nod to our roots), a tribute to the fine photographs that have told the story of The Edge and Qatar and the world around it. Logically, for a business and current affairs orientated magazine, merely republishing the prettiest, most well composed, and technically correct images from a photographer’s perspective was not an option. Attractive stock photography images, a part staple of most magazines of our kind, are not the type of images we are discussing here. No, the criterion for a photo to appear in a commemorative photographic issue of a magazine such as The Edge had to be the storytelling merit. True to the ethos of photojournalism, these images had to either tell a tale on their own (which most of them do) or form part of a greater narrative, which in this case once again (but literally through a different lens) is that of The Edge and Qatar, as well as the occasional foray into the world around it.
Naturally, when assessing images from this perspective, photographic merit is a factor (and one would imagine that as all these images have been published in previous editions, they would all be half-decent pictures at the very least). But this has never been a defining factor in photojournalism, where the basic tenets of commercial photographic snobbery (composition, framing, focus and lighting etcetera), whilst all still considered, take second place to what the image tells us, what it says about a certain moment in time, about the people and or places contained therein, who they are, how they are captured and often what emotion it makes us feel. It is our sincere hope that you take something tangible from our edit of approximately 45 images (taken from an original shortlist of around 100, from the past 75 editions – actually 74 excluding this one, but who is counting?) and accompanying captions and quotes. Through them we have tried to capture the nature of The Edge so far. The kind of topics in these images certainly reflect, I believe, the essence of the magazine and its home country Qatar, including subjects such as oil and gas, aviation, economic issues and the ascension of a new Emir and so forth. But they also spread to the region – stories told through images of The Arab Spring mainly – and the world, with visual global references from our perspective, from the recession of 2009 to African warlord Joseph Kony, the opening of The Shard in London, and more recently the Charlie Hebdo shootings in France. Going through back issues, a different editor and a different creative team may have selected a different set of images and given them different treatment. But we sincerely believe this edition is an accurate statement of The Edge and what it has come to represent thus far creatively and journalistically. Fortunately for our team, our next designated milestone is our 100th issue, which is some years away, but looking back at these photos, in the first month of a new year has made me realise it really does all go so fast and before long the future editors and designers of The Edge will be sitting around a table scratching their heads about what to do creatively with another celebratory issue. But until then, please enjoy this one and the year to come.
True to photojournalism, these images had to either tell a tale on their own or form part Miles Masterson of a greater narrative. Managing Editor 8 | The Edge
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news
business news
Qatari 2016 budget to post a deficit of QAR46.5 billion
main story
The first Qatari budget in almost two years (following a shift of its fiscal year to December 31 from March 31, last March) has announced revenues of QAR156 billion, expenditure of QAR202.5 billion. The Edge spoke to analysts and experts to give their take on the country’s first deficit budget in 15 years. By Aparajita Mukherjee. Qatar’s 2016 budget was the first to be presented by a Gulf Cooperation Council (GCC) country – followed by the Kingdom of Saudi Arabia – at a time when the finances of the wealthy oil-exporting region are being scrutinised by international markets and investors for signs of strain due to a sustained slump in oil prices. Qatar’s budget has been especially eagerly anticipated, as it is the country’s first in almost two years, following a shift of its fiscal year to December 31 from March 31 that was announced last March to align with private sector practice. The shortfall is expected to be covered by local and international debt issues, according to the budget statement. Health, education and infrastructure accounted for the largest share of the 2016 budget, at QAR91.9 billion. The Finance Ministry has cut its gross domestic product forecast for 2015 by nearly half, to 3.7 percent, down from a prediction of 7.3 percent made in June 2015, and has lowered its expectations for 2016 and 2017. Major infrastructure expenditures, which total QAR50.6 billion alone, would include railways, the new Doha port, several large roadways and the expansion of electricity, water and sewage networks. Commenting on the impact the falling energy prices and the impact that it has had on the Qatari 2016 budget, Gopal Balasubramaniam, partner,
Health, education and infrastructure account for the largest share of the 2016 budget, at QAR91.9 billion. The finance ministry has cut its gross domestic product forecast for 2015 by nearly half, to 3.7 percent. 10 | The Edge
KPMG told The Edge, that “as expected, 2016 will be the first year in the past 15 years, that the government has gone for a deficit budget, largely due to the decline in income as a result in the oil price drop”. Balasubramaniam added, “However, the deficit is not huge and it is unlikely that the country will see a substantial reduction in capital expenditure. The 2016 budget has only reduced around QAR15 billion to QAR16 billion compared to 2015.”
Deficit financing
According to Siebe Butter, director, Energy and Resources Consulting, Deloitte Middle East, the cuts in expenditure “seem to be severe enough
Gopal Balasubramaniam, partner, KPMG told The Edge, that “as expected, 2016 will be the first year in the past 15 years, that the government has gone for a deficit budget, largely due to the decline in income as a result in the oil price drop”.
QAR
business quotes
5.6
billion
Major infrastructure expenditure in Qatar’s 2016 budget.
to remove any non-essential, non-core expenditures from the budgets, and include a rationalisation of headcount in many organisations”. Balasubramaniam mentioned, in the context of deficit financing methods, “It is clear that the government is looking for ways to streamline and improve efficiency across departments to reduce spending. This will help to meet the short-term deficit and bring longer-lasting benefits for the country and future budgets.” Pointing to a relatively new trend in the region, he said, that there is also an increase in the number of public-private partnerships to fund large projects, adding, “The Government is considering the possibility of raising finance through Government Bond offerings in local and international markets.” Butter also commented, that while there is clearly pressure on expenditures, Deloitte sees increased interest from their clients for initiatives around cost reduction and efficiency improvements. “So, if there is a positive cost/benefit case for implementing more efficient ways of working, then clients are considering this,” Butter said.
Cumulative current account surpluses (2005-14; bn USD, % GDP)
% GDP Saudi Arabia
1038
139%
Kuwait
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297%
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102%
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151%
Oman
46
59%
Bahrain
19
57%
news
“We have not stopped any long-term projects.” Qatar Petroleum (QP) president and chief executive officer Saad Sherida Al Kaabi at the 9th International Petroleum Technology Conference in Doha in December, discussing the energy company’s plans from 2016, in light of the current low oil price. Indeed Al Kaabi added, QP is looking to consolidate and grow its presence globally. “We are looking for QP to be present internationally in a much bigger way,” he said, conceding however that this would be a challenge in the current international climate. ““The petroleum industry has and will always be an international industry that affects and is affected by all economic and political turmoil. It requires a massive and continuous investment and continuous advancement in technology. Our projects always need longer time to start showing a real return in investment.”
“A lot of people have lost their lives under the waves... we need a memorial.” Chinese artist Ai Weiwei on the Island of Lesbos in Greece, where he visited recently to highlight the plight of refugees who use this location in particular as the first port of call on their journey from conflicts in the Middle East into Europe, with the aim of creating an art project based there as well as in China and Germany. “I already set up a studio in Lesbos. Next year we are going to be involved with different projects,” said Weiwei. “This is a very historical moment from any perspective. As an artist I want to be more involved, I want to (create) artworks in relation to the crisis and also create some kind of consciousness about the situation,” he said. “As an artist, I have to relate to humanity’s struggles...I never separate these situations from my art,” Weiwei added. “The border is not in Lesbos, it really [is] in our minds and in our hearts.”
Sources: International Monetary Fund and QNB Economics
The Edge | 11
news
business in quotes
“We cannot do it on our own, it has to be an international coalition.”
United States Democratic Party presidential race candidate Bernard Sanders in early January, discussing his views on defeating the Islamic State or ISIS in Iraq and Syria. Sanders related how it is vital that his country learns from past errors and that it must work more with regional powers to find a way to stabilise the region, citing the 2003 US invasion of Iraq as one of the country’s worst foreign policy decisions ever. “It is the Muslim nations that are fighting for the soul of Islam who have got the lead the effort in crushing ISIS,” Sanders reiterated.
“I’m fighting against this injustice, from one court to another.” FIFA vice-president and UEFA leader Michel Platini, speaking publicly on the decision by FIFA to suspend him from all football related activities for eight years, along with outgoing FIFA president Sepp Blatter, following a payment of a CHF2 million (QAR10.2 million) by the latter to the former in 2011, ostensibly on undisclosed suspicions of nefarious activities, for some sort of services rendered. Platini, who maintains his innocence and has vowed to take his case to various courts of appeal, holds that he has been dragged into the organisation’s quest to prosecute Blatter for graft. “What was the FIFA ethics committee doing between 2011, when I was paid, and 2015? Was it sleeping? Suddenly it wakes up. Ah yes, it wakes up in a FIFA election year when I’m a candidate. It’s amazing,” Platini said, adding, “I’ve been kicked in the teeth – I’ve been put in the same bag as Blatter.”
12 | The Edge
Business News in Brief Jaidah Automotive opens Middle East’s largest standalone Chevrolet showroom
The largest standalone Chevrolet showroom at Jaidah Square that was opened recently.
Chevrolet vehicles exclusive dealer in Qatar, Jaidah Automotive, recently opened its new showroom in Jaidah Square, Airport Road. The new showroom breaks a record for being the biggest standalone Chevrolet Showroom in the Middle East with the entire range of Chevrolet’s product lineup showcased under one roof. With an impressive space of 3300 square meters, this showroom has over 33 Chevrolet vehicles with a unique zoning concept. The opening ceremony was attended by Jassim Jaidah, chairman of Jaidah Group, Mohamed Jaidah, group executive director of Jaidah Group, HE Dana Shell Smith, US Ambassador, among others. The new location comes as part of Jaidah Automotive’s ongoing expansion strategy, providing customers with an array of accessible, fully equipped centres; this being one of the most conveniently accessible locations. Mohamed Jaidah said, “The opening of the largest standalone Chevrolet showroom in the Middle East is a proud moment for Jaidah Automotive and a clear demonstration that our expansion plans are exceeding our ambitious expectations.”
The Talent Enterprise enters into a strategic partnership with Mercer
The Talent Enterprise (TTE), a leading employability, assessment and leadership development consultancy based in Dubai, has announced that it has entered into a strategic partnership with Mercer Middle East. Under the terms of the agreement, global human resources consultancy Mercer will utilise TTE’s expertise in the areas of assessment and leadership for its Talent Business vertical in five Gulf Cooperation Council countries, while TTE will benefit from Mercer’s regional prominence in HR Consulting services, as well as Health, Retirement and Investment. The reciprocal arrangement will cover the UAE, Saudi Arabia, Qatar, Bahrain and Kuwait.
Weill Cornell Medicine - Qatar* is so much more than a medical school; it is a world-renowned institution and network of influential partners that combines groundbreaking research, top-tier education, and best-in-class care to put patients at the center of everything it does. * Previously Weill Cornell Medical College in Qatar
news
Qatar Shell awards six new Qatari SMEs with long-term contracts
As part of a nationwide strategy to support local small and medium enterprises (SMEs), Qatar Shell, in partnership with Qatar Development Bank (QDB), signed agreements recently with six new Qatari SMEs. The six Qatari SMEs that have been awarded contracts are: Cooper & Turner WLL for the manufacturing of stud bolts; Fouj Café for the provision of cafeteria and catering services for staff and events; Digital Print Centre for the manufacturing of safety boards and electric labels; Inspection Technology (I-Tech) for the supply of onsite welding inspection services; Chubb Fire, International Gulf Trading for the manufacturing and maintenance of fire extinguishers; and Social Media Solutions for the management of Qatar Shell’s social media platforms.
The contract signing ceremony for the new Qatari SMEs.
RasGas ties up with Petronet LNG
RasGas Company Limited, Qatar and Petronet LNG Limited, India have entered into a binding sale and purchase agreement (SPA) for supply of an additional 1 MTA of LNG to India starting in 2016 for onward sale to four Indian entities – Indian Oil Corporation Ltd., Bharat Petroleum Corporation Ltd., GAIL (India) Ltd. and Gujarat State Petroleum Corporation. Further, RasGas and Petronet LNG Limited have entered into a binding agreement to adjust some aspects of their existing long-term LNG SPA of 7.5 MTA, signed by the parties in 1999, which laid the foundation for the LNG business in India.
Tharawat Family Business Forum launches first Arabic content website
Tharawat Family Business Forum (TFBF) recently announced the launch of Family Business Arabia, the first Arabic content website focused on family businesses, www. familybusinessarabia.com. The site aims to become a learning for family businesses, highlighting the importance of conveying best practices through storytelling and real examples in Arabic. According to a recent survey by PwC, more than 80 percent of the private sector in the Middle East is family-owned or managed.
14 | The Edge
business in brief
Start-up Watch
An advocate of environmental issues for many years, Hanan Al Taweel says her goal is to help Qatar achieve its 2030 vision of becoming an ecological oasis and environmental success story in the gulf region.
EcoStar
Founded by Hanan Al Taweel, EcoStar is a privately held and 100 percent Qatari owned company, which was started to look into the possibility of starting Qatari environmental, and ecological, business in 2012. Now it is readying to produce Qatar’s first locally developed biodiesel, by recycling used cooking oil, later this year. How did this idea of setting up Qatar’s first biodiesel production company come up? We first looked into the possibility of making biodiesel when we found out about the health implications and environmental impact that used cooking oil (UCO) has on society. In a region where water is so difficult to find and knowing that just one litre of oil can contaminate one million litres of water, we instantly took on the responsibility of making UCO our first challenge. In partnership with Ashghal, we are formulating a strategy to implement a recycling plant for UCO in Qatar and cooperate with other waste management companies to collect UCO from Qatar, and turn it into a clean and renewable fuel. We are also working with Qatar Development Bank to finance the project and support it as we develop other collection models to enable members of the public to support our plant and recycle their UCO into biodiesel. We have sourced a reverse vending machine from a Turkish company that will reward customers with coins, vouchers or credits in return for them depositing their UCO in our machines, rather than pouring it down the drains and causing a social, ecological, environmental and economic problem. We have secured everything we need to complete the project and hope to start producing biodiesel in Qatar before the middle of 2016. What have been the main challenges in setting up this company? To be honest, the first two years of challenging Qatar’s business, industrial and ministerial bodies were a very difficult phase. Many people did not know about biodiesel and even more people did not believe that it was possible to create a business by collecting waste. When you chose to do something new and unique in a country that has not even considered this type of enterprise then you are setting yourself up for problems. There were no classifications for the Commercial Registration (CR), no guidance for the health and safety, no knowledge regarding the implications or use or export of finished product, no definitions for licensing, no system of collection or transportation of UCO. Everything has taken 10 times longer to develop because we are blazing a new trail for others to capitalise on. What has the response been like so far from the market? Developing the strategy for the company also requires the help and support of your clients and suppliers. We would really want companies such as Karwa to come on board so we could say that Qatar’s public transport runs on biodiesel, or companies like Qatar Airways to help us develop greener fuels for the future. First, we have to battle the final hurdles of getting everything signed and sealed with the ministries, and then we can get the right stakeholders involved for the correct usages of this truly Qatari product. www.ecostarqatar.com
news
events
Business events calendar Q1 2016 25-26 January MENA Rail Operational Readiness Summit
The event will have keynote presentations from leading rail operators and stakeholders currently delivering the largest operational readiness programmes globally.
Besides Qatar, the entire Middle East region is undergoing a rapid expansion of railway assets, which include metro, light rail and long distance railway projects as well as a host of new facilities and stations. At a time when the focus is on delivering world-class services and improving operational efficiency, the inaugural MENA Rail Operational Readiness Summit seems to be well timed. It is expected to draw on experiences from leading local and international operators as well as the experiences of railway customers, infrastructure managers, facility managers and consultants with one goal – to be ready in time. Besides Qatar Rail, representatives from Saudi Railways Organisation, Egyptian National Railway, Etihad Rail DB and Sydney Trains are expected to speak on various critical issues during the summit.
27 January-1 February Qatar Motor Show
After a successful edition last year that attracted close to 150,000 car lovers and trade professionals, Qatar Motor Show 2016 returns with new launches and latest models. The event is expected have a large number of exhibitors that include sports, luxury and mid-range car dealers as well as car accessory companies showing the latest automotive and performance trends. Apart from premier launches, the exhibitors will carry out many automotive-related activities on all days. The five-day event this year moves to a new venue, Doha Exhibition and Convention Centre (DECC).
January 10-12 January QBX Expo 13-14 January The International Conference on Protecting Human Rights in Arab Region 14-18 January International Conference in Emergency Medicine and Public Health 23-26 January 2nd International Conference on Desalination and Environment
Many international car makers launched latest brands last year at Qatar Motor Show, which was the centre of attraction for visitors.
23-27 February Doha Jewellery & Watches Exhibition
Doha Jewellery and Watches Exhibition (DJWE) will return for the 13th edition with new activities and more stringent selection criteria, at the Doha Exhibition and Convention Centre (DECC). DJWE is among some of the most exclusive shows in the world for high net worth individuals to learn and buy fine jewellery, watches, gemstones, and diamonds – all represented by more than 500 international brands. For the first time since its inception, the DJWE will feature jewellery and watches workshops for enthusiasts and designers to learn from experts on creating their own pieces. Additionally, a number of educational seminars will Uniquely among the world’s jewellery trade shows, the DJWE permits be delivered on jewellery and exhibitors to sell directly to the public. watches throughout the week.
16 | The Edge
Events Listing
25-26 January Major Projects and Infrastructure Qatar 27-30 January Qatar Masters Golf
February 3-4 February Waste Management and Recycling Summit Qatar
March 27-30 March Health Facilities Design and Development Qatar 23-26 March Qatar Covertech 29-31 March DIMDEX
qatar perspectives
Balancing cost optimisation in a low hydrocarbon pricing scenario Peter Lawrence is an HR professional and has recently launched The Human Capital Department, a consultancy with roots in Qatar, specialising in delivering human capital solutions. In some organisations, an immediate response has been to cut permanent headcount by 15 to 20 percent, but this response may be damaging to future capability. The human resource (HR) function must support the business in cost optimisation efforts but there may be opportunities to make other savings before cuts to headcount. For example, a cut in corporate bonus or performance bonus has been estimated at saving QAR70 million in a leading company, while some other organisations have reduced their contract workforce (non-core employees) or reduced the base pay. Although unpopular, these measures result in payroll savings, and help to minimise cuts to permanent headcount. HR needs to re-evaluate existing processes – do they still fit the organisation’s needs? Performance management processes such as ‘forced distribution’, or ‘forced ranking’ known as the ‘vitality curve’ have now been abandoned in organisations such as GE, where emphasis is now on coaching conversations between employee and manager. In the new, leaner, and flatter organisations, there is an opportunity for greater empowerment, increased accountability and greater job enrichment. There is also a need to revitalise and reinvigorate the psychological contract as expectations have changed in this new working environment, which needs thoughtful HR management. Organisations across the region are rightly proud of their diversity, but this brings real challenges around communication and gaining common understanding – particularly as first
18 | The Edge
Across the Gulf Cooperation Council (GCC) region, organisations need to align their human resources strategy to the new business environment of cost optimisation. The reduced oil price (from over USD100/QAR364 to less than USD40/QAR145.6 per barrel in 12 months) drives the need to reduce costs to ensure business survival, writes Peter Lawrence. language – be it Arabic or English – is not common to all workers. As staff move from one corporation to another, the diversity in corporate backgrounds becomes ever more apparent – a case of “this is how we do it at company X” “but not at company Y”. Corporate values and processes (such as the value of general interest, business compliance procedures, and corporate social responsibility)
Corporate values and processes help ensure that there is a common unified corporate culture but HR can play a key role in leveraging this diversity.
help ensure that there is a common unified corporate culture, but HR can play a key role in leveraging this diversity. A critical part of being seen as an employer of choice is the provision of training and development opportunities. For instance, one leading client has implemented the job family model, which provides governance of employee development based on a competency framework and supporting learning and development curriculum. All of these ensure employees have a professional development plan and can follow a career road map. Continued recruitment of young national talent is also vital to support national development. The use of selection tools such as assessment centres will help to ensure that the most suitable people are recruited, based on the alignment of corporate values, behavioural competencies as well as IQ assessment. Another key element of HR strategy is to maintain relationships with local schools and universities. This can often result in successful internships, research awards and sponsorship of undergraduate students, and a chance to shape the educational institutions’ offering and identify future recruits. In spite of the downturn, corporations will still compete for national talent; Qatar has a population of 2.2 million (approximately 400,000 Qataris), and nationalisation targets (50 percent of workforce by 2030, as per the Qatar National Vision). National development remains a critical part of HR strategy with organisations in Qatar striving to be an employer of choice.
qatar perspectives
Sukuks to be the preferred mode of deficit financing December’s news that oil and gas prices were descending below their recent historic low inched up the pressure on the government budget. With many major new infrastructure projects rolling out or in the pipeline, too, alongside the ordinary demands of state, the hunt for alternative sources of financing is on in earnest, writes Oliver Cornock.
Oliver Cornock is the regional editor, Middle East, Oxford Business Group.
Yet Qatar continues to be committed to a USD220 billion (QAR800.8 billion) project rollout over the next decade, albeit with a revised set of priorities. This has had major implications for banks, as well as for government and corporate entities. “On local funding markets,” Al Shaibei said, “liquidity may tighten as the government optimises its spending in the light of reduced government income, thus pushing local banks to also seek funding from the international sukuk market.” In times of uncertainty, that Islamic market may hold several advantages over its conventional competitor. Sukuk issuances tend to be more insulated against market events, with issuers in countries like Qatar also strongly backed by well-rated credit risks. Barwa Bank is a good case in point – it listed a USD2 billion (QAR7.28 billion) sukuk programme on the Irish Stock Exchange early December, with Moody’s and Fitch giving
this programme strong ratings, A2 and A+, respectively. The agencies pointed out that Barwa is 53 percent government owned and thus qualified as systemically important. Sukuk programmes also tend to be of a lower duration and thus have less sensitivity to interest rate fluctuations than conventional bonds. This brings less volatility, while maintaining attractive returns. Demand for sukuk issuances when they come has demonstrated the popularity of this approach. A USD750 million (QAR2.7 billion) sukuk sale in October by Qatar Islamic Bank (QIB), for example, drew USD1.75 billion (QAR6.4 billion) in orders. The two other Qatari Islamic banks, QIIB and Masraf Al Ryan, have also both announced plans for future sukuk issuances, with the latter declaring this intention in March 2015, while Al Shaibei told OBG that “based on the current outlook, one may expect some activity from our bank with regards to issuance during 2016”.
One area that will likely benefit from this in the year ahead is the fixed-income market, with Islamic bonds, or sukuk, already seeing a rise in popularity, both in Qatar and in the wider region. “The decrease in oil prices has caused national budgets to go into a deficit for some Gulf Cooperation Council (GCC) member countries,” Abdulbasit Ahmed Al Shaibei, CEO of Qatar International Islamic Bank (QIIB), recently told Oxford Business Group (OBG). “This translates into a greater momentum for issuances by governments, or an avenue for GCC member countries to start tapping this market to finance the deficit.” In an era of rising interest rates, too, sukuk offers a way to ride out some of the effects of United States’ Federal Reserve hikes on conventional bonds. The decline in oil and gas prices, caused by a global glut, saw international benchmark Brent Crude down at USD38.70 (QAR140.87) a barrel in mid-December, the lowest level since the dark days of the global financial crisis. Meanwhile, liquefied natural gas (LNG) prices have also stumbled, with deliveries to Northeast Asia – Qatar’s biggest market – seeing price falls that even outstripped the decline in Brent crude during 2015. While these declines – and the prospect of higher interest rates – may lead to a cull in the number of energy companies currently in the production business, with a consequent stabilisation of oil prices, the prospects for LNG continue to be a concern. In Qatar, this all translates into a decline in the oil and gas sector’s contribution to gross domestic product (GDP) – down 40.6 percent in nominal terms in Q2 2015 year-on-year – and to government revenues, with the budget in deficit in Q2 2015 – an unusual event for a country used to surpluses.
20 | The Edge
Sukuk programmes tend to be of a lower duration and thus have less sensitivity to interest rate fluctuations than conventional bonds. This brings less volatility, while maintaining attractive returns.
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finance & markets VAT: A new tax potential for Qatar?
For well over a decade now, rumours of an impending value added tax (VAT) implementation have been circulating across the Gulf Cooperation Council (GCC). More often than not those rumours fluctuate with the price of a barrel of oil, and it would be wrong to assume that it has been this one factor alone that enabled the VAT implementation debate to absorb so much newsprint over the years, writes Stuart Halstead.
A rate of tax between three percent and five percent is being mulled by the member states of the GCC is unsurprising, as too is its recent announcement that suggests that exceptions to the general rule of taxation would be limited to healthcare, education, certain foodstuffs and, potentially, certain financial services will be agreed under a multilateral framework agreement. (Image Arabian Eye/Corbis).
G
lobal oil pricing is just one component of a complex interplay of challenges that have been facing policy makers in the region for some time. When you combine it with other issues such as the growing energy needs of the GCC itself, the significant and long-
term social welfare and other public expenditure commitments that have been made around the member states, and the inexorable decline in external tariff revenues as trade agreements proliferate, the scale of the issue becomes more apparent and the headlines seem well justified.
Introducing a VAT at this juncture would not be an unreasonable step it would seem. Indeed, on concluding her recent meeting in Qatar with the GCC’s finance ministers and central bank governors, the International Monetary Fund’s (IMF) managing director Christine Lagarde
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sectors | finance & markets
spoke plainly of fiscal adjustment being necessary across the region, whilst separately the IMF stated that a VAT was an ideal revenue instrument for the GCC. That is not to say that VAT is the only potential counter to the fiscal challenges being seen today, but that it offers a strong case for playing a central role in the reform agenda. A modern VAT, and in fact any modern tax, is generally associated with a broad base (very few exceptions to the general rule of taxation of goods and services), and a low rate. Removing the asymmetry of exceptions makes tax administration easier – and cheaper – on the whole, whilst also mitigating the risk of inadvertently creating investment distortions. That a rate of between three percent and five percent is being considered by the member states is unsurprising therefore, as too is its recent announcement that suggests that exceptions to the general rule of taxation would be limited to healthcare, education, certain foodstuffs and, potentially, certain financial services will be agreed under a multilateral framework agreement. What this all means for Qatar at this stage is difficult to gauge. IMF estimates indicate that new revenues of between 0.5 percent and 0.8 percent of gross domestic product (GDP) would be raised through a VAT rate of three percent or five percent, respectively. The calculations show that the revenue impact in Qatar is the lowest throughout the GCC in fact, a reflection of the lower comparative proportion of private consumption taking place in the country versus its neighbours. The revenue impact is likely to be significant therefore, but not as significant as in the other member states. At the same time, inflationary impacts are likely to be relatively benign, with a one-off consumer pricing impact of not more than the rate itself, and most likely lower due to the offsetting aspects of price competition and the limited exceptions to taxation. Overall then it would appear reasonable to assume a relatively benign market reaction to a VAT implementation in Qatar, particularly when one considers that a move to do so in the country is likely to mirror or be mirrored by such a move elsewhere in the region. Bearing in mind the importance of the burgeoning financial services industry in Qatar, it is notable that the GCC has not yet reached agreement as to how it intends to apply VAT to the industry. It is a notoriously challenging area and one, which all policy makers will be keen to get right; the fact that an agreement has not yet been reached is understandable. Financial services, particularly those that are margin driven, are notoriously difficult to apply VAT to from a technical perspective. That issue alone gives rise to fears around over-taxation
24 | The Edge
“IMF estimates indicate that new revenues of between 0.5 percent and 0.8 percent of gross domestic product (GDP) would be raised through a VAT rate of three percent or five percent, respectively.”
and challenges around accurate accounting by businesses and tax authorities alike. In addition, policy makers are often concerned about unnecessarily taxing investment and savings products. From the perspective of many, such instruments do not represent consumption per se, but rather the creation of wealth for the purposes of enabling consumption in the future. Taking that analysis one step further, there are those who feel that applying VAT to any financial instrument that merely enables consumption (lending, for
example) is also potentially harmful. Finally, most of the GCC members – including Qatar – are seeking to grow their financial services market presence to some extent. It is therefore highly unlikely that a decision on such an important aspect of member state economic aspirations would be rushed for fear of inadvertently creating tax-driven advantages for some and not others. Stuart Halstead is indirect tax leader at Deloitte Middle East.
Consumer Price Index Inflation in Qatar (%) change, year-on-year 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 Oct-13
Apr-14
Oct-14
Apr-15
Sources: Ministry of Development Planning and Statistics (MDPS) and QNB Economics
Oct-15
energy & sustainability
Visitors look at an oil purification unit at the Qatar Petroleum Company booth during an energy sector event at the Bahrain International Exhibition Centre. Qatar is not dependent on oil for crucial domestic power usage, but rather for higher value petrochemicals production. (Image Arabian Eye/Reuters)
Al Shaheen oilfield tender attracts significant international interest Eight international oil companies (IOCs) are reportedly in discussions with the state-owned Qatar Petroleum about taking over the field’s development, writes The Edge’s global energy editor Simon Watkins.
T
he Al Shaheen oil field consists of a thin heavy oil reservoir lying around 80 km offshore above the North Field. In 2015, QP opened up the bidding for developing without allowing incumbent operator, Denmark’s Maersk Oil, first option to extend its original 25-year contract before it ends in the middle of 2017. However, any successful bid is expected to include taking over responsibility for drilling at least on the same scale as Maersk had promised (USD2.5 billion/QAR9 billion pledged towards a drilling
programme in 2013) and achieving the same production targets (maintaining output at 300,000 barrels per day (bpd), and plans to produce 400,000 barrels of oil equivalent a day by 2020), a legal source in Abu Dhabi close to the negotiations told The Edge. While Maersk has also now been explicitly invited to reapply in the Qatari firm’s public announcement of the tendering process, ostensibly other contenders include QP’s established major partners: ExxonMobil of the United States (US), Royal Dutch Shell, and
33%
Al Shaheen accounted for well over a third of Qatar’s total oil output of around 670,000 barrels per day average in 2015.
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sectors | energy & sustainability
France’s Total. Exxon has extensive experience dealing with QP, having been chosen in 2011 to participate in the domestic supply-orientated USD8.6 billion (QAR31.3 billion) Barzan gas development, in addition to also operating seven LNG trains at Ras Laffan, alongside QP. More applicable to Al Shaheen is the fact that Exxon has extensive capabilities and experience in the enhanced oil recovery (EOR), which the Qatari oil field requires. The same oil sector-related expertise goes in Total’s favour as well, with the firm having agreed in 2012 to a new deal for the offshore Al Khaleej oilfield. At least as important as this, is that these negotiations for the new deal were undertaken with current Qatar Petroleum CEO Saad Sheridan Al Kaabi, and they resulted in the conversion of an existing Exploration and Production Sharing Agreement (EPSA) into a joint venture-based contract in which QP took the majority stake. Nevertheless, Shell’s existing partnership with QP is solely in the gas arena – as the foreign shareholder in the Pearl GTL (gasto-liquid) project and in the Qatargas IV LNG train – with the same counting for US firm ConocoPhillips (also said to be among those expressing interest in Al Shaheen), as a foreign partner only in the Qatargas III LNG train. QP is not expected to make a decision on
“QP is not expected to make a decision on Al Shaheen, as it is not dependent on oil for crucial domestic power usage, but rather for higher value petchems production.”
this any time soon, as it is not dependent on oil for crucial domestic power usage, but rather for higher value petrochemicals production (although it is the second-lowest crude oil producer among the 12-member Organisation of the Petroleum Exporting Countries (OPEC) group, Qatar has the 13th largest reserves in the world, at 25.2 billion barrels). Additionally, with no other significant oil finds in the last 15 years or so, Al Shaheen remains the most important in Qatar’s relatively small oil sector (otherwise largely comprising the Dukhan and Idd Al Shargi fields), accounting for well over a third of the state’s total output of around 670,000 bpd average in 2015 and described as being of ‘critical strategic importance’ to Qatar’s future oil production prospects in the tender announcement. Given this, and the fact that Al Shaheen has already been subject to some EOR techniques, it is likely that the contract will go to a firm which has true global experience in the oil sector, access to the widest range and most up to date EOR technology and expertise, and is willing to proceed on a closely coordinated JV basis with QP itself up to 2030 (believed to be the likely end date of the contract), concluded the legal source to The Edge.
OPEC’s continued production should continue to pressure energy price down in 2016 That Saudi Arabia will not temper its strategy to price out the nascent shale gas sector through over-production was reiterated by the Organization of Oil Exporting Countries (OPEC) during its meeting on December 4, 2015 with the cartel also sticking to its policy of no output cuts. The prospect of further increased supply set to come this year from Iran (another one million barrels per day (mbpd), pledged by the end of March 2016) and Iraq (whose exports rose to a decades-high average of 3.37 mbpd in November), has seen a very steep rise in March crude oil put (right to sell) option positions with a USD35 (QAR127) per barrel (pb) strike price in Brent and WTI crude. For WTI, the put option strikes go even lower (demand for puts with strikes as low as USD30 pb (QAR109) has more than doubled since the beginning of November). Moreover for straight futures contracts, hedge funds and other leveraged money now hold a record combined short position (of around 300 million barrels worth in Brent and WTI together), according to regulators. Although US output has dropped by 500,000 bpd since April, the fall in October slowed to 40,000 bpd, with total production
26 | The Edge
Saudi Arabian Oil Minister Ali Al Naimi talks to journalists during the meeting of OPEC oil ministers in Vienna, Austria, December 4, 2015, where his country announced it was not planning any reductions in outputs going into 2016. (Image Arabian Eye/Reuters)
energy & sustainability | sectors
of 9.1 mbpd roughly where it was a year ago when the price war began, and the outlook for demand does not look oil price supportive. Damien Courvalin, Goldman Sachs’s senior commodities strategist, in New York, now projects that US demand will be 100,000 bpd lower in 4Q15-1Q16 than last year while European Union (EU) demand will only moderately counterbalance that (up 120,000 bpd) under normal winter temperatures and economic forecasts. “With European heating demand a bigger driver to European winter distillate demand than in the US, this is where the greatest demand risk lies, as it would only take 50 fewer heating degree days than normal – which for each month has a probability of between 15 percent and 30 percent – for EU distillate inventories to reach new record highs, all else remaining constant,” he says. The prospect of mild winter weather over the coming months – a concerning risk given current El Niño conditions - could see such weak heating demand in the US and
Europe, adds New York-based Goldman Sachs commodities economist, Michael Hinds. “If this materialises, it would likely be the trigger for adjustments through the physical market, pushing oil prices down to cash costs, which we estimate are likely around USD20 (QAR73) per barrel,” he concludes. All of which will clearly place even greater pressure on the already squeezed budgets of OPEC members, which, according to the International Energy Agency, have collectively lost around USD450 billion (QAR1.6 billion) in revenues since Saudi embarked on its shalestymieing strategy. For all OPEC members, one effect of the revenues squeeze has been to increase production even further, where possible, or to divert some existing oil or gas resources away from the domestic power market and towards the export, one in which it can earn US dollars. This may also be occurring in Qatar, according to local sources, so exacerbating an already fragile balance in the country’s power sector.
Domestic natural gas consumption in Qatar, much of it for electricity, continues to grow rapidly, with a near tripling between 2003 and 2013.
Qatar’s power play Prior to this latest drop in hydrocarbons prices, Qatar had always been able to meet all of its internal natural gas demand from domestic sources, based around the supergiant North Field. A moratorium, though, still runs on new projects on the site and, as a result, natural gas production has plateaued, according to the Energy Information Administration (EIA) and could begin to decline soon. The only potential for a near-term increase in natural gas production lies in the 1.4 billion cubic feet (bcf) per day Barzan project, which was the last project approved before the North Field moratorium, which, although scheduled to come online in 2016 and reach maximum production capacity in 2017, has been subject to delays. Even at full production, though, Barzan is only expected to offset some of the foreseen production decline, and all the while domestic natural gas consumption in Qatar continues to grow rapidly, with a near tripling between 2003 and 2013 and third largest per capita consumption in the Middle East in 2014, and no signs of this trend diminishing, according to the EIA. Indeed, with all of the new structures being built ahead of the 2022 World Cup, there is every chance that the rate of increase in consumption will rise, given that the bulk of it is used in the electricity and water desalination sectors. New prospects for sufficient gas to cover the domestic power sector and provide extra export volume to make up for ongoing
budget shortfalls also look limited, with the only major discovery in this context of the past few years being in Block 4 (North), announced
by Qatar Petroleum in May 2013, which may contain more than 2.5 Tcf in recoverable reserves, but which as yet remains offline.
Middle East per capita electricity consumption (as at end 2014) Billion kilowatt hours per million population 0
5
10
15
20
Kuwait United Arab Emirates Qatar Bahrain Saudi Arabia Oman Lebanon Jordan Iraq Yemen Source: EIA
The Edge | 27
real estate & construction
The commercial accommodation sector could be affected the most considering the fact that a substantial amount of new office space is entering the market when the demand is already low. (Image FotoArabia)
Tough times ahead for realty sector Qatar’s real estate sector is expected to have a challenging year in 2016 as the sustained lower oil price and the demand-supply mismatch in some segments of the property market continue to impact its performance. By Syed Ameen Kader.
S
ince oil prices are expected remain in the range of USD50 to USD60 (QAR182 QAR218) per barrel in 2016, according to data compiled by Bloomberg, this may create headwinds for Qatar’s real estate market. Martin Cooper, director, real estate, Deloitte, said, “Low oil prices typically translate into lower levels of liquidity, both in terms of the availability of development finance for real estate projects and the availability of end-user finance such as mortgages.” The first three to six months of 2015 was broadly upbeat for Qatar’s property market, in
continuation with what it experienced in 2014, but since then the market started to feel the impact of oil price fall as the government and hydrocarbon companies begun tightening their budgets. Mark Proudley, director, DTZ Qatar, said, “The impact of this rationalisation and spending reviews has led to a slowdown in demand for commercial accommodation and the prime residential sectors with higher-paid expatriates being the main casualties of redundancy programmes implemented following the spending reviews.”
300,000 sqm The new office space that will come to the market in West Bay and Lusail this year.
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sectors | real estate & construction
As the public sector and hydrocarbon companies, which account for around 65 percent of West Bay’s total office space, are expected to continue with their spending reviews, the commercial accommodation sector may not to get any better in 2016. Adding to this is the new supply of close to 300,000 sqm office space that is planned to come to the market in West Bay and Lusail this year. However, there still remains substantial demand for smaller office spaces, primarily in the range of 250 to 500 sqm, in other parts of the city. Proudley said the main challenges in 2016 would be addressing the imbalances in the market. “There is potential for an oversupply scenario to start to develop within the prime end of the residential market and the commercial office markets. At the same time we expect demand to continue to outstrip supply for the lower- to middle- income sectors,” he added.
“There is potential for an oversupply scenario to start to develop within the prime end of the residential market and the commercial office markets.” - Mark Proudley, director, DTZ Qatar.
New supply in 2016
Qatar Railways Company, which is overseeing the construction of Qatar’s integrated railway network, was awarded ‘Best Arabian Architectural Design for Public Service’ and the ‘Best International Architectural Design for Public Service’ by the International Property Awards. The award ceremony that took place in London last month recognises the quality of the design of Qatar Rail’s ‘Vaulted Spaces’ design for stations on the Doha Metro. Derived from the historic Islamic architecture, the “Vaulted Spaces” Doha Metro station design highlights the region’s vernacular architecture, acting as a bridge between the country’s past and future. One of the key elements of the design is that it gives the exterior shape of the station, by using modern bright materials to stimulate the interior of the oyster. Qatar Rail’s chief executive officer, Eng. Saad Al Muhannadi said, “Those three awards
DTZ’s research indicates that prime office supply could increase from 1.7 million sqm by circa 500,000 sqm to 2.2 million sqm over 2016, though approximately 50 percent of this increase is attributable to the QP District. In the prime residential sector, DTZ figures suggest, apartment stock is expected to increase by approximately 5000 units from 16,500 to 21,500 over 2016 with potentially up to 12 apartment towers scheduled to complete and handover at The Pearl-Qatar. The current organised retail stock (shopping mall space) totals 643,000 sqm of leasable area. There is approximately 1.3 million sqm of organised retail stock under construction of which up to 815,000 sqm could potentially open by the end of 2016. The largest schemes due to open in 2016 include Doha Festival City and the Mall of Qatar project.
Doha Metro project wins three international awards
Qatar Rail is the first company from Arab countries to win the International Public Service Architecture category award. recompensed two years of efforts where we tried to appropriate the concept of the Vaulted Spaces in order to be part of the heritage, culture and the national vision of the state of Qatar. It’s not only about architecture; it’s about a vision that we share”. According to the organisers of the award, the stations design for the Doha Metro create a unique combination of a recognisable design across the network with an approach which allows each line in the system to have a distinct identity and individual stations to have designs which embody the culture and history of the area they serve. This recognition follows a win at the regional event in Dubai last month where the company was named best ‘Public Service Architecture – Qatar’ for the same project. The first phase for the Doha Metro’s architectural works, covering 37 stations, is set for completion by 2018 and the second, extending to over 72 stations, by 2030.
5000 units
New apartment stock that is expected to enter the market in 2016.
30 | The Edge
The regional award was handed to Qatar Rail’s senior representatives Mohamed Timbely, senior director of Architecture and MEP Department and Eng. Hassan Al Marwani Technical Interface Director, in Dubai.
tech & communications
Mobile operators preparing to introduce VoLTE in Qatar Ooredoo’s engineers are now working in hundreds of locations across Doha to optimise the VoLTE service for the planned commercial launch in 2016. (Image Ooredoo)
Voice over LTE (VoLTE), the latest technological advancement to enter the mobile segment in Qatar, promises significantly better voice quality, writes M. Iqbal.
A
s both cellular operators in the country strive to outdo each other in a bid to capture a bigger chunk of a nearsaturated market, Ooredoo Qatar announced last month that it has successfully implemented Voice over LTE (VoLTE) on its network and was gearing up to launch the feature commercially in 2016. Ooredoo claims this will make it the first operator in the Gulf Cooperation Council (GCC) to introduce VoLTE across a substantial part of its nationwide network. Vodafone, too, says that it is pursuing VoLTE plans. But it feels the penetration of VoLTEenabled smartphones in Qatar is currently limited and is instead prioritising network upgrades, expansion of 4G coverage, 4G+ and better connectivity in the desert. “With the increase in penetration of smartphones supporting VoLTE, we see this service becoming increasingly relevant in the coming
days,” said a company spokesperson. By the looks of it, 2016 is the year when consumers who are still using 3G phones will finally start to feel the need to upgrade. The prices for 4G-enabled phones are lower than ever (QAR500 or less levels), and carriers in Qatar have been consistently upgrading their networks, with much of the improvements revolving around 4G LTE. One of the benefits of VoLTE is faster call setups, but the real selling points of the technology are better voice quality on calls (improved HD Voice, which Ooredoo has already been offering since 2012) and the ability to browse the Internet while on call. The functionality is expected to come at no extra charge to the user. HD Voice – also known as Wideband Audio – extends the frequency range of audio signals that are transmitted over the network,
98%
The percentage of households in Qatar with Internet access. resulting in better voice quality. The frequency range available on traditional mobile networks is 300Hz to 3.4 KHz. HD Voice improves this significantly, offering a range of 50Hz to 7KHz (the frequency of a typical human voice can range between 80Hz to 14KHz). The extended frequency range that HD Voice offers results in noticeably better call quality. The technology works seamlessly, switching between VoLTE and the traditional 3G network as needed, without any interruptions. It also has no impact on the data services being offered by the carrier, as VoLTE works over
The Edge | 31
sectors | technology & communications
reserved data bandwidth that is not used for mobile data services. There is a caveat though: For HD Voice to work, both users must be in a VoLTE area, be on the same network and be using phones that can support the feature. Ooredoo said it is working with mobile phone manufacturers to ensure that their devices are already supporting VoLTE once it goes live in 2016. Generally speaking, people who have bought 4G phones in the past couple of years should be able to benefit from the feature. There are over 3.3 million mobile phone subscriptions in Qatar, according to The World Bank, and the fierce competition between Vodafone and Ooredoo to get a bigger share of this pie has prompted rapid evolution of mobile phone services in Qatar. Ostensibly, both the operators have also been dealing with declining bottom lines. In December, Vodafone Qatar replaced its CEO Kyle Whitehill after the company failed to turn into a profitable entity, despite earlier projections suggesting it would become
Ooredoo said it is working with mobile phone manufacturers to ensure that their devices are already supporting VoLTE once it goes live in 2016. so by the end of 2015. In an interview with Bloomberg, Whitehill had blamed Qatar’s slowing population growth for the firm’s failure to meet targets and had said they do not expect to make profit before 2017. Earlier in October, Ooredoo had replaced its CEO Nasser
Mohammed Marafih, following declining profits, primarily due to issues in other markets that Ooredoo operates in. With such fierce competition, the focus of both operators in the past couple of years has been to improve connectivity and offer faster and better 4G services. The 4G service for mobile phones was first made available by Ooredoo in October 2013, for a monthly surcharge of QAR60. In February 2014, Ooredoo announced that it would no longer charge consumers for access to its 4G services. Later that year, in June, Vodafone rolled out its own 4G service. Since then both networks have been consistently one-upping each other, improving the speeds that they offer on their networks. Currently, both services promise theoretical speed limits of up to 375 megabits per second for compatible devices. While the competition has resulted in lower call rates, it has not, however, translated into significantly lower mobile data prices from the 3G era.
Qatar’s Communication Regulatory Authority opens Ooredoo’s telecom ducts to competition Existing and future service providers in Qatar will be able to get fair access to Ooredoo’s telecommunication ducts, allowing for new players to enter the fixed broadband segment. The Communication Regulatory Authority (CRA) of Qatar has approved the Reference Infrastructure Access Offer (RIAO) of Ooredoo. The RIAO, according to CRA, will enable “all existing and future licensed service providers a fair and non-discriminatory access to Ooredoo’s telecommunication ducts”. CRA president Mohammed Ali Al Mannai said, “The provision of access to the incumbent operator’s ducts brings CRA at par with its regional and international counterparts. This RIAO, together with the previous reference offers for interconnection and transmission, form a critical part of CRA strategy to foster competition in the market. “CRA now looks forward to bring the same level of synergies in broadband access and advanced leased lines.” Access to Ooredoo’s telecommunication ducts will pave the way for Vodafone Qatar – and new entrants – to make a dent in the fixed broadband market in the country, an area that it has been unable to crack ever since
32 | The Edge
CRA president Mohammed Ali Al Mannai said, “The provision of access to the incumbent operator’s ducts brings CRA at par with its regional and international counterparts.”
launching commercial fibre-based consumer and enterprise fixed lines commercially in October 2012. Ooredoo currently owns 98 percent of the fixed-line share in Qatar, according to industry players. Vodafore had made an attempt to
purchase the state-owned Qatar National Broadband Network, but the deal fell through in 2014, leaving it with no way to get its fixed broadband service out to consumers, other than an extensive undertaking of laying fibre networks in Qatar.
Seventy Five issues in Images
“
Qatar, typical of many of the Gulf countries, is a nation marching towards tomorrow, walking to the frantic beat of Doha’s developmental drum. ― The Edge Issue 1, July 2009.
36 | The Edge
”
― In the launch edition of The Edge in July 2009, we took a close look at how Qatar was preparing itself for development on a grand scale as well as implementing plans to wean itself from dependence on hydrocarbons in the form of economic diversification.
The Edge | 37
― The first issue of The Edge also examined the rapidly changing media landscape, reporting on the now defunct Doha Debates as well as Al Jazeera’s growing role and influence in regional and international media.
“
Al Jazeera does not pull its punches when it comes to candid, hard-hitting journalism, and it is that very mentality which produces the acclaim of its audience.
”
― The Edge Issue 1, July 2009.
38 | The Edge
The Edge | 39
― Top: In the first issue of The Edge, we also reported on the removal of Qtel’s long-time monopoly rights with the entry of Vodafone into the market.
40 | The Edge
― Above left: Geopolitics and the relationship of Gulf Cooperation Council (GCC) states with strategic nations such as the United States and Iran was the subject of a feature in the November 2009 edition of The Edge.
― Above right: In September 2009, in issue three of The Edge, we examined the issue of expatriate rights in the Gulf under the Kafala system.
― Right: In November 2009, The Edge focused on Qatar’s diversification efforts in oil and gas, including the now long-completed Pearl Gas-to-Liquids (GTL) project, pictured here.
“
In terms of the economics of the GTL process compared to a conventional refinery, the key difference is that Pearl GTL is an integrated project.
”
― Then-managing director of Pearl GTL and Shell Qatar vice president, Andy Brown. ― The Edge Issue 5, November 2009.
― By April 2010, and our ninth edition, the global recession was in full effect. “Demonstrators clash with riot police during a protest outside the Greek parliament in Athens last month,” read this image’s caption. “Greece has frozen pensions and raised a string of taxes to cut spending by EUR4.8 billion (QAR23.5 billion) in a frantic bid to persuade its EU partners and the markets that it can dodge bankruptcy.”
“
Unlike the usual debates about sovereign default crises, this one is, for the most part, a phenomenon affecting advanced rather than emerging economies.
”
― The Edge Issue 9, April 2010.
The Edge | 43
“
While the global economy contracted violently following the collapse of the United States’ subprime mortgage market, Qatar continued to grow.
”
― The Edge Issue 11, June 2010.
― In the June 2010 edition of The Edge, journalist Edward Jameson tallied up the investment strategy of Qatar’s Sovereign Wealth Fund, Qatar Investment Authority, including their purchase of the flagship store of Harrods in London for an estimated QAR6.9 billion.
44 | The Edge
The Edge | 45
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A FIFA World Cup in the Middle East in 2022 would not only make history but also open up a significant and exciting new football frontier for FIFA and its partners.
”
– Hassan Al Thawadi, CEO of Qatar 2022.
― The Edge Issue 18, January 2011.
46 | The Edge
― While this image of HE Sheikh Mohammed bin Hamad Al Thani, chairman of Qatar 2022 Bid Committee celebrating the country’s awarding of the hosting rights to the 2022 FIFA World Cup in Zurich in 2010 was published in a later edition, it relates of course to the announcement and a feature article The Edge published in January 2011 on the lucrative business of sport.
The Edge | 47
48 | The Edge
― Contrary to appearances, this image was not directly related to aviation or Qatar Airways, but was included in a feature called ‘Greening the Desert’, wherein sustainable practices of all forms were looked at, including the development bio jet fuels (which the airline in fact succeeded in utilising a few years later).
“
By entering into the production and supply of bio jet fuels, we will be able to get closer and closer to the much talked-about carbon neutral growth.
”
Qatar Airways chief executive, Akbar Al Baker.
― The Edge 16, November 2010.
The Edge | 49
― In a June 2010 feature ‘The Case against Goldman Sachs’ The Edge took a closer look at the alleged banking frauds that led to the global economic crisis, as protestors called for the head of CEO Lloyd Blankfein.
― Then acting-editor Miles Masterson interviewed the founder of citizen journalism website All-voices.com in issue 14, September 2010. “I believe the mainstream media in the US is really in trouble,” Amra Tareen told The Edge.
― In issue 13, The Edge’s first birthday edition, we focused on the success story that was the local economy at the time, despite global headwinds, including persisting with large-scale projects such as The Pearl-Qatar, seen here in early development.
50 | The Edge
― In March 2011, the series of popular uprisings across the Middle East that became known as the Arab Spring was underway, with Egypt gaining most of the attention. In this issue’s cover story, we looked at the economic costs of these revolutions.
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There is no doubt that nearly three weeks of protests have partially damaged Egypt’s economy, and impacted the regional and global economies – in such obvious areas as oil prices, tourism, commodities and investments. ― The Edge 20, March 2011.
”
The Edge | 51
― Top: On February 23, 2011, Doha-gas industry leader Qatargas agreed to a three-year contract to supply Centrica, one of the biggest energy companies in the West, with 2.4 million tonnes per annum (mtpa) of liquefied natural gas (LNG) to be shipped from Ras Laffan (pictured) to the United Kingdom (UK).
52 | The Edge
― Above: Then Emir of Qatar, His Highness Emir Sheikh Hamad bin Khalifa Al Thani, held a landmark meeting with President Barack Obama in the Oval Office to discuss matters of mutual concern, including Libya and regional security. Issue 22, May 2011.
― Right: Ever wonder what Doha looked like five years ago from space (assuming you are reading this in January 2016)? The Edge, Issue 18, January 2011.
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If the eyes of the world are literally on Qatar following the 2022 World Cup announcement, so are its satellite cameras. This image shows the full extent of The Pearl development as well as the New Doha International Airport, and provides a vivid colour perspective on the water depths surrounding the city.
”
― The Edge 18, March 2011.
The Edge | 53
“
As a collection of acts, such bravery will echo down the years, regardless of whether or not Gaddafi, Saleh or Al Assad are successful in clinging to power.
”
― The Edge 25, August/September 2011.
54 | The Edge
― During the height of the Arab Spring protests across the region, The Edge continued to provide in-depth coverage. This feature in Issue 25, 2011’s August/ September Ramadan issue, highlighted the use of social media and mobile smartphone technology to rally the masses and orchestrate demonstrations etcetera.
The Edge | 55
56 | The Edge
― In our 32nd edition, in April 2012, we broadened our scope to international current affairs to take a look at the story of African warlord Joseph Kony, with emphasis on how a video made to tell the world about his murderous ways became a YouTube sensation.
“
Within just two weeks, Kony 2012 was viewed by more than 100 million people, making it by far the most viral video in history.
”
― The Edge 32, April 2012.
The Edge | 57
58 | The Edge
― Tens of thousands packed into Cairo’s Tahrir Square on June 24, 2012, to celebrate their new president-elect, Muslim Brotherhood leader Mohamed Morsi, documented here in the Photo of the Month in our July/ August Ramadan Issue 35.
“
While ostensibly a major step ahead for democracy and social and economic stability in the country, Morsi’s election was not without controversy or violence and has been somewhat undermined by the military’s reluctance to relinquish their grip on power.
”
― The Edge 35, July/August, 2012.
The Edge | 59
“
Throughout his career Jobs was turned down, ousted from the company he founded, had product failures, doubted and sued and experienced the darkest of life. But a pragmatic guy, equal parts spiritual and businessman, Jobs continued to succeed.
”
― The Edge 27, November 2011.
― Steve Jobs, Apple founder and famously son of a Syrian refugee, passed away in October 2011. In The Edge Issue 27, we paid tribute to him in a special obituary.
― A lead feature in our redesigned and rebranded 40th edition was a exposé on the state of migrant workers in Qatar, some of whom were purportedly living in dire conditions in labour camps in the country. Issue 40, January 2013.
― In Issue 37, October 2012, The Edge highlighted on robotic surgery in Qatar under the guidance of the country’s very own Dr. Abdulla Al Ansari, chairman of surgery at Hamad Medical Corporation.
The Edge | 61
― One of the more positive narratives to emerge from the Arab Spring was in the country where it all began with the self immolation of vendor Mohamed Bouzazi, leading to the ousting of the Ben Ali reign and progressing to a peaceful election in October 2011.
― In December 2012, Qatar played host to the Conference of the Parties (COP18), the annual global environmental summit, the first time such an event had been held in the Middle East.
62 | The Edge
― Above: Qatar’s then-Emir, His Highness Sheikh Hamad bin Khalifa Al Thani, inspects a guard of honour during his ceremonial reception at India’s presidential palace, Rashtrapati Bhavan, in New Delhi in early 2012. It would be his third and final visit to India as Qatar’s head of state. The Edge 33, May 2012. ― Right: The Qatari-funded The Shard tower – at 310 metres, Europe’s tallest building – was inaugurated in a spectacular laser show in the British capital in July 2012. The event, which was streamed live on the Internet, was attended by throngs of people who lined the Thames. The Edge 36, September 2012.
The Edge | 63
“
A powerful magnitude 7.8 on the Richter scale, the earthquake struck a border area of southeast Iran killing at least 35 people in neighbouring Pakistan, destroying hundreds of houses and tremors being felt as far away as India and Gulf Arab states.
”
― The Edge 44, May 2012.
― A man surveys his store after an earthquake in Saravan, about 1400 kilometres southeast of Tehran, Iran, on Tuesday April 16. Photo of the Month, May 2012.
― His Highness the Emir Sheikh Tamim bin Hamad Al Thani assumed the leadership of Qatar on June 25, 2013, to become one of the world’s youngest heads of state.
― In 2012 the Qatar Olympic team set two precedents: there were a total of four females on the team, a first for the country, and it won two bronze medals: Nasser Al Attiyah for skeet shooting, and Mutaz Essa Barshim for the high jump. The Edge 37, October 2012.
― December 2012 turned out to be a landmark year for Qatar, as not only did it host COP18 but also allowed the first formal street protest, which focused on migrant worker rights and climate change. The Edge 40, January 2013.
68 | The Edge
― Above: In our December 2012 issue 39, we covered the fallout from the Villaggio fire tragedy that occurred in May of the same year, asking whether it had made any difference to fire and safety standards in Qatar. The case drags out to this day as the families of the deceased children and adults await long overdue justice.
― Right: In August 2013, Qatar launched its first-ever satellite, the Es’hail 1, into orbit from the European Spaceport in French Guiana, bolstering its transmission capability over the Middle East exponentially.
The Edge | 69
― In February 2013, we focused a main feature on food security in Qatar, and took a look at the Sahara cultivation project in Doha.
― Our cover story in April 2013 placed the spotlight on Qatar’s dire road accident rate and the cost it has on the economy, estimated then to be more than QAR10 billion in medical, insurance and other costs annually.
70 | The Edge
“
We are very much driven by our history, because if you don’t build on your history, if you don’t know it, then you don’t have a future. This is what we always teach our children. – Issa Abu-Issa, CEO, Salam International.
― The Edge Issue 39, December 2012.
”
― In the final issue of 2012, as our cover story we profiled Issa Abu-Issa, heir and chief executive officer of one of Qatar’s most successful companies, Salam.
― Caption from a feature on Qatar’s investment in football, from November 2013, The Edge 49: “FIFA President Sepp Blatter displays documents while addressing the media after a meeting of the executive committee in Zurich on October 4. FIFA members said they needed more time to decide whether to vote that the 2022 World Cup in Qatar should be staged outside the traditional June-July period and a final decision on the matter is unlikely soon.”
― A Burmese monk walks by an advertisement for Qatar’s Ooredoo telecom company, which began rolling out a 3G telecommunications network in April, in Yangon, Myanmar. Photo of the Month, The Edge 55, May 2014.
72 | The Edge
― Souq seller: In early 2013 the increase in retail space in Qatar was in sharp contrast to the global trend for retail, which was largely in decline, due to e-commerce eroding shop floor market share and prudent consumers being mindful of their spending in an age of austerity. The Edge spoke to a cross-section of retail developers and mall owners in Doha to gauge the overall state and potential in this powerful commercial sector at the time. The Edge 42, March 2013.
The Edge | 73
“
The UoIF condemns, in the strongest possible terms, this criminal attack and these horrible murders and offers its condolences to the families as well as the employees of Charlie Hebdo.
”
Union des Organizations Islamiques de France (UOIF), an entity representing more than 250 French Muslim organisations.
― The Edge 64, February 2015.
74 | The Edge
― In a special cover story, guest writer Abdullah Ijtehad examined the Charlie Hebdo shootings from the perspectives of freedom of speech and the effect of terrorism on trade and commerce between the Middle East and the West.
The Edge | 75
― Doha skyline in a time of increasing austerity. Our September 2015 cover call-out bore the blunt words: ‘Below $40 a Barrel’, referring of course to the rapidly declining oil price in Q2 2015 and the effect it was set to have on the budgets of hydrocarbon exporting countries, such as Qatar, due to post to its first deficit in five years in 2016.
76 | The Edge
“
Every USD10 (QAR36.4) per barrel drop in the oil price will continue to shave 3.4 percent and 4.2 percent of GDP off fiscal and current account balances, respectively, in the GCC economy as a whole.
”
― The Edge 71, September 2015.
The Edge | 77
― “24-year-old Moroccan shopkeeper Hicham Bouchtat dreamed of expanding his shop, but financing it was always out of reach. After taking a loan through Qatar-funded Silatech-supported Boudou youth loan programme, Hicham has expanded his shop and continues to grow his business.” – Interview with Silatech CEO Tarik Yousef, The Edge 61, November 2014.
― Refugee crisis: Here refugees, ostensibly from Syria and South East Asia, await further passage amid growing uncertainty over bans and restrictions to Western Europe, at Keleti Railway Station in the Hungarian capital Budapest, in early September. Photo of the month, The Edge 72, October 2015.
― Expatriate Games: Are foreign workers still welcome or even required in Gulf states? The Talent Enterprise’s David Jones offers research data and analyses. The Edge 67, May 2015.
― US president Barack Obama invited Qatari leader HH the Emir Tamim bin Hamad Al Thani and his GCC peers to the US recently to assure them that his impending deal with Iran over its nuclear capabilities would improve, rather than worsen, the status quo in the Middle East. The Edge 68, June 2015.
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Inside the minds of leading business figures
business insight Healthy bottom lines are a product of long-term relationships 84 In conversation with The Edge, Peter Todd, dean of HEC Paris, spoke about the current paradigm of executive education and the plans that the institution has in Qatar and the region.
Creating personalised and tailor-made holistic healthcare plans for clients 86 Tajana Trtanj, general manager, B/Attitude Doha, a lifestyle destination for people in search of a holistic approach to health. Talking to The Edge, Trtanj highlights that health and wellness is a matter of choices one makes, focusing on the advantages one derives with their D/Code DNA tests.
84
“As part of our Qatar presence, we have partnered in a very meaningful way with the Qatar Foundation and as we do that, we are trying to build a portfolio of presence around degree programmes, executive education, custom programmes and open enrolment programmes,� Peter Todd, dean of HEC Paris, told The Edge. Pictured above is the group that took part in the Open Enrolment programme on Negotiation Skills and Strategies held in Doha on November 4 and 5, 2015.
The Edge | 83
business insight | executive education
HUMAN CAPITAL
‘Our strategy internationally is to build profound partnership with a small number of people and entities’
In conversation with The Edge, Peter Todd, dean of HEC Paris, spoke about the current paradigm of executive education and the plans that the institution has in Qatar and the region. You took charge at a time when HEC Paris was going through a structural transition. What are your key priorities and strategies for the institution? I think as we move into our new autonomous status from the Paris Chamber of Commerce, the whole intent of it is to let us build on the excellence that is already developed at HEC. Like many other business schools in France, we are in the process of transitioning from a department of the Paris Chamber of Commerce, which historically has given us great ties to business and industry. We have developed as a truly international school where half our students, today, come from outside of France and two thirds of our professors come from outside of France. Today, we operate in a global sense. And the decision was taken a couple of years ago to create a new status for HEC so it becomes essentially a not-for-profit corporation. It will be managed and run by its own board of governors and board of directors, with the chamber naming members to the board of directors. So at the strategic oversight level, they will still have a presence and say over what happens with the school, but operationally we will manage our own affairs. That brings us an agility to adapt and adjust to an international marketplace. During your previous tenures as head of other institutes, you have taken decisions in terms of making them self-funded and independent. Is this something you would like to pursue here as well? Well, certainly, as we look at this move towards autonomy, part of that is about becoming more independent. HEC today
84 | The Edge
“As part of our Qatar presence, we have partnered in a very meaningful way with the Qatar Foundation and as we do that, we are trying to build a portfolio of presence around degree programmes, executive education, custom programmes and open enrolment programmes,” Peter Todd, dean of HEC Paris, told The Edge.
executive education | business insight
your thoughts on the Middle East and the executive education scenario? What are the key challenges that this market faces at a regional level? The widely-held view about executive education is that it deals in finances, facts and figures, models, analysis and the computation of the bottom line, which essentially is fundamental to business education. But what we have experienced with our students is that the human dimension of management is what has really been appealing to them. By dint of attending our courses, our students have expressed that they learned about how to connect, how to communicate, how to motivate, how to develop, how to collaborate, and these have been every bit been as important to them as the technical aspects of business that they learned about going through the programme. One of our challenges – and this is one of the challenges of business education globally – is broadening people’s view of what we do in trying to develop people to be good managers. That being a good manager is about connecting to people. It is about the relationships that they develop and moving organisations forward. Sure, one has to do that with an eye on the bottom line, but long-term successes come through the relationships built with and around people. And I think that is what we bring to our models.
is a school that is already 90 percent plus self-funded so only about 10 percent of our budget comes from public funds through the Paris Chamber of Commerce. The rest of our operations are the tuition fees that we charge, particularly the executive education programme operations we run, and fundraising that we do through the HEC Foundation and our connection to our alumnus. Internationalisation has been a key focus for the institution. Is it something that will get a further boost from your end? And, if so, what is your broad strategy to achieve that? Does that involve opening of new campuses in new destinations? The school, over the last decade and more, has become a truly global place. Both our students and our professors come from all around the world. Today, we have over 100 schools around the world – whether they are exchange partnerships, dual degrees, joint programme activities of one kind or another. We certainly want to sustain those opportunities that we have. But increasingly, as I think about our strategy internationally going forward, it will be about building profound partnerships with a small number of people and a small number of entities. Today, we offer probably our flagship executive MBA – the Trium programme – that we run jointly, among HEC Paris, London School of Economics and New York University. Those three schools coming together provide something that is particularly unique in the executive MBA market place. I had the great pleasure of having lunch with some of our HEC alumni here in Qatar, including one who had been through the Trium programme before we ever had programmes here in Qatar, and he spoke quite glowingly about that experience and how transformative that was. That’s an example of a very deep and profound partnership. As part of our Qatar presence, we have partnered in a very meaningful way with the Qatar Foundation and as we do that, we are trying to build a portfolio of presence around degree programmes, executive education, custom programmes and open enrolment programmes. We are already in the process of moving forward into the next phase of our development here I think, after having run programmes here for five years and learnt a lot along the way. This is your first visit to Qatar after you took charge earlier this year. What are
“HEC Paris, London School of Economics and New York University coming together to provide the Trium programme is particularly unique in the executive MBA market place.”
And talking specifically about Qatar, what is your new strategy or your goals for the Doha campus? As I mentioned that we are just moving forward into the second phase of our relationship with the Qatar Foundation. We hope we will have the details of all that worked out in the next couple of months which means then we are looking at our next five years here. I think when we come to a place such as this, we want to be thinking about the long term. This means that we are looking to offer programmes that deliver great management education, something that is relevant to this market place. Over the coming years, we will definitely in the context of our new agreement, be talking with Qatar Foundation about launching new and different programmes. We have, for example, been in conversations about the possibility of a master’s degree in human resource management, which ties exactly into what the Qatar National Vision 2030 looks to achieving for the country in terms of human capital development.
The Edge | 85
business insight | wellness
LiFESTYLE CHANGES
Developing a personalised and holistic wellness solution for clients by unlocking
their genetic data and lifestyle patterns Tajana Trtanj, general manager, B/Attitude Doha, a lifestyle destination for people in search of a holistic approach to health, in conversation with The Edge, highlights that health and wellness is a matter of choices one makes, focusing on the advantages one derives with their D/Code DNA tests. Tell us about the healthcare approach of B/Attitude. B/Attitude Doha is positioned on the market as a lifestyle destination preferred by people in search of a holistic approach to health, well-being and beauty therapies, and featuring all the wellness facilities that a modern individual might need in one place. We promise a fully integrative wellness experience that would combine traditional and modern-day services for improving all aspects of our clients’ lifestyle. Our goal is to go one step further in personalising lifestyle plans for clients by incorporating personalised genetic tests and including a multidisciplinary team of specialists in creating a unique holistic lifestyle plan for each client. Prevention and wellness have moved into the forefront of healthcare over the past decade as research continues to show how minimal lifestyle changes bring significant benefits to health and an increased quality of life. That said, spa and wellness centres have evolved to sources for services, guidelines and support for healthy-living practices, by bridging centuries of healing arts traditions with 21st century healthcare services. The B/Attitude management adopted this positioning in 2015 by launching D/CODE™. Talk us through some of your genetic tests which can prevent major lifestylerelated diseases later on. D/Code by B/Attitude is a pioneering concept in Qatar that combines science to unlock a client’s genetic data and lifestyle patterns and translate it into a clear, detailed wellness plan through personalised coaching and holistic wellness solutions. Our four genetic tests focus on health management, dietary disposition, athletic performance, and antiaging. Each test provides a unique insight
86 | The Edge
“Prevention and wellness have moved into the forefront of healthcare over the past decade as research continues to show how minimal lifestyle changes bring significant benefits.”
into a patient’s genetic code, revealing sensitivities, susceptibilities and keys to their true health potential. It is important to note that with D/Code programme, we do not perform genetic diagnostics of diseases. With the D/Code tests we evaluate your predisposition to or chance of developing a certain lifestyle issue (such as obesity, diabetes, depression or cardiovascular issues), response to certain medications, probability of possessing a specific trait or ability, response to nutrients, and aging variables analysis. Being aware of one’s genetic predisposition enables clients to make adequate and timely changes in their lifestyle and take on preventive actions. However, our health does not depend solely on our genes, but also on the environment and behavioural patterns and thus the D/Code programme includes coaching on preventive measures and recommendations for diet, exercise, health and skincare. Are there tests to determine the stress levels of a professional? What would be recommended to someone with high stress levels? Research shows that 70 to 80 percent of all diseases or illnesses is stress related, as stress is usually accompanied with irregular nutrition, unhealthy food and several lifestyle choices that increase the risk factors. Stress is defined as “the experience of a perceived threat (real or imagined) to one’s mental, physical, or spiritual wellbeing”, and it is important to note that only our thoughts make a situation seem stressful, which gives us the power to control it. Genetic tests can reveal if one has a predisposition to be affected by stress and how to avoid triggering a stress-related illness. However, there is no test available
wellness | business insight
that would evaluate the stress levels of a professional in an objective manner. There is no universal approach to dealing with high stress levels either, because the experience is very personal, which is what we uncover during the consultations with clients. Is B/Attitude thinking of any corporate tie-ups with special plans for covering the employees? Absolutely. Provided that individuals follow the lifestyle recommendations, the D/Code programme can help the employers retain a healthy workforce and increase their productivity, and save time and budgets otherwise spent on treating medical ailments of employees. We are also aiming to work with insurance companies that would include D/Code in their plans, so that the programme will be more accessible. Tell us about the uptake of your products in the Qatari market. Majority of people associate the concept of ‘wellness’ with luxury, pampering, and beauty, rather than as a more holistic concept of improving health and quality of life through fitness, nutrition and relaxation. That said, our first goal is to educate our clients about wellness and what their wellbeing entails, and then introduce them to the idea of ‘personalised wellness’, which D/Code stands for. We wish to empower clients with knowledge to better manage their lifestyle choices: to age well, achieve dietary goals, maximise training results, and maintain their health in the long term. Industry trends show that one-size-fits-all does not yield results, thus we are convinced that clients will recognise the value that D/ Code can bring to their lives. Do you have any plans for expanding the chain of your physical presence? Not at the moment. In the long term, we would hope that more spas or wellness centres in Qatar adopt our D/Code programme.
“Majority of people associate the concept of ‘wellness’ with luxury, pampering, and beauty, rather than as a more holistic concept of improving health and quality of life through fitness, nutrition and relaxation,” Tajana Trtanj, general manager, B/Attitude Doha, told The Edge.
Of all countries in the Gulf Cooperation Council, why did you choose Qatar to set up your presence? The idea of personalised wellness was born in Croatia, where I am from, but in order to bring such revolutionary idea to life one has to choose the right time and place: Qatar as a country invests a lot in science and medicine, so why not merge them with the wellness industry, and pioneer a new direction? Health awareness is very high here and I believe that spa-, health- and wellness-based institutions can help change the face of healthcare, by preventing chronic diseases and sustaining good health and well being practices for clients.
Do you have medical tie-ups locally or you leave the client to decide how he wants to take that forward? D/Code is not a medical programme, but it gives you the preferred lifestyle blueprint according to your DNA, specifically for nutrition, sports, health and skincare, and unlike other health tests, you can learn practical information to help eliminate a lot of clichés and guesswork that goes with getting fit, eating right, products to use etcetera. As the old adage goes: prevention is better than treatment. Personalised coaching is part of the programme to
educate the client and to motivate them to act on the newly-acquired knowledge, and they can always consult us when in doubt. Tell us about your corporate plans in the next two years. Aside from strengthening D/Code programme in the market as a new direction in the wellness field, in the long run B/Attitude Doha aims to offer a single destination for aesthetic treatments, complementary spa, fitness and beauty therapies and medical aesthetic procedures, which would be incorporated into an expanded spa facility.
The Edge | 87
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The Edge | 1
Reviews All-new Honda Pilot launched in Qatar
D
oha Marketing Services Company (DOMASCO) has launched the new model of Honda Pilot, which offers better fuel efficiency and improved off-roading experience with intelligent traction management. The Honda Pilot now comes in four grades for this region with the introduction of the new base grade EX in 2WD and the others namely EX, EX-L and Touring which are in AWD. The third generation Pilot has been completely restyled with a bold, new front grille and flowing, elegant lines of a sport coupe. The new features include halogen projector headlights in EX and EXL grades and
LED projector headlights in Touring grade. The car boasts a 3.5-litre direct injected V6 engine with variable cylinder management (VCM) that provides better fuel efficiency with quick acceleration and smooth power delivery. It starts up at the press of a button, and with maximum output of 280 horsepower at 6000 rpm and maximum torque of 355Nm at 4700 rpm. The manufacturer claims it can offer fuel efficiency of 11.4 km/L for the 2WD and 10.8 km/L for the AWD. The Pilot’s newest features include intelligent traction management (featured on all models except the EX 2WD), push button mode selection and TFT mode display on the cockpit instrument panel. In addition, EX (AWD)
and EXL grades offer a full 200mm of ground clearance which enables the vehicle to adapt to any terrain. The most noteworthy feature is the sand mode, which enables the Pilot to be driven in the sand. The Pilot is available with a new set of advanced safety and driver assistive technologies. EXL and Touring grades feature ‘remote engine start’ that lets you start the engine from a distance, enabling automatic climate control system to regulate cabin temperature. Electric power steering, one push start system, cruise control on steering wheel and a multi-angle rear view camera are some of the technologies featured in the Pilot that aid driver comfort.
The Edge | 89
products & reviews
Read it:
The Rich Is it apt that this book is sub-titled ‘From slaves to super yachts, a 2,000 year history’? Perhaps it is, perhaps it is not. Perhaps if you were rich, really rich, you might feel a bit offended about the reference to human chattle in the same sentence as your prized vessel. Chances are, though, if you fall into this income bracket, you probably could not care less. But it certainly does sum up quite nicely the contents of the book, which if you are short of a brain cell or two and have not figured it out by now, is a look at rich people over the past two millennia. Which, statistically, probably does not include many of us reading this magazine, who would definitely mostly be short of a few bob. A few would be well off, sure. After all, Qatar is the celebrated ‘richest country in the world’. But like everywhere, this is highly concentrated in the ‘top one percent’, leaving the rest of us proleteriat mouth breathers pressed up against the window staring in at the metaphoric moneyed warmth of the rich elite from the tepidity of the middle class, or the icy domains of borderline poverty. From the ill-gotten gains of Roman conquerors, the medieval wealth of Alain Le Roux in Europe (one of the period’s richest men, otherwise known as Alan Rufus or Alan the Red), the empire of 14th century Malian leader Mans
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Read it:
Getting Things Done
This is a revised version of David Allen’s bestselling book Getting Things Done (GTD) that was first published almost 15 years ago. A wellknown management consultant and executive coach, Allen has developed a GTD system that helps people organise themselves better, and offers to change the way they work and live. That is why the book is subtitled as ‘the art of stressfree productivity’. Many of his techniques have evolved over the years, and in his revised version, Allen has tweaked his classic text with important perspectives on the new workplace, and added material that will make the book fresh and relevant for years to come. He has updated the book to reflect what is different in modern technology and also what modern brain science has revealed. But his outlook is always tied to timeless principles of how people manage their attention, emotions and creativity. Allen’s ambitions for his readers are in a sense even grander than those of most other
Available at Virgin Megastore in Doha.
90 | The Edge
books. His goal is nothing less than helping people remove stress and anxiety from their work and personal lives, so they can match every moment of their existence to the purposes they would most like to pursue. The author understands that people are busy and fallible. He is writing to offer them additional helpful tips, rather than to give them extra reasons to feel guilty or inadequate. The book is also written with an understanding that life consists of cycles. Things go better, and then get worse. The book suggests achievable day-by-day steps toward regaining a calm sense of control.
Musa (who with his vast reserves of gold, is considered by some historians to be the richest man ever to walk the earth), to the founder of the Medici bank in Florence in 1397, the early part of this book is a fascinating journey, often violent and ruthless, through the accumulation of wealth in pre-modern history. A book on the history of rich men of course would not be complete without the ‘robber barons’ in the United States in the late 19th century, ostensibly including the likes of John D. Rockefeller, Cornelius Vanderbilt, Andrew Carnegie and JP Morgan, all of whom in one way or another influence the world’s financial stage still. African dictators, Arab sheikhs, Russian oligarchs and the latest financial billionaires, technology geeks and other wealthy elite round out the latter stage of this well-written and frankly fascinating book. Written with equal parts of disdain for illgotten gains and respect for the ingenuity and innovation required to grow and manage wealth from nothing, or at the very least, from the ground itself, The Rich may make you green with envy or make you learn a thing or two about the world’s most well-off people and perhaps inspire you to step into their rarified world and join them.
products & reviews
Sony Camera Sony has introduced the latest addition to its Cyber-shot RX compact camera line, the full-frame RX1R II (model DSC-RX1RM2). The new RX1R II promises to deliver the highest picture quality of any Sony compact camera ever made. This can largely be attributed to the new camera’s high resolution 42.4 MP sensor paired with its large aperture, fixed focal length ZEISS Sonnar T 35mm F2 lens, which have been fine tuned to optimise performance together. Additionally, the new model features a 30 percent improvement in AF response speed compared to the original RX1 models and is
equipped with the optical variable low pass filter that can be set to ‘off’, ‘standard’ or “high” based on user preference with low pass filter bracketing available.
Wunderlist
By M. Iqbal
(Android, iOS, Web) At its heart, this multiplatform app manages your to-do lists and lets you access them from your phone, tablet or computer. The home screen is a simple, uncluttered affair, allowing you to create lists and group them in multiple subfolders. You can attach photos, PDFs, presentations and other files to your to-do lists (5mb per file limit). The app also lets you share your lists with others and collaborate with them. The subscriptionbased professional version gives you the ability to add bigger files, add subtasks and assign tasks to other people. There is also a Wunderlist for businesses that allows multiuser collaboration.
Panerai Watch Officine Panerai has launched new special edition watch, Luminor 1950 Sealand (PAM00849), which is personalised with a beautifully hand-engraved cover for the dial, featuring white Arabian horses riding in the desert with palm trees and the sea in the background. This special edition watch, of which only 60 units have been made, has a case in brushed steel with the iconic device protecting the crown. It has a classic Panerai grey dial and a gold calf strap. The movement is the automatic mechanical P.9000 calibre, entirely designed and created by the Panerai in Neuchâtel. The watch is a part of a series of special editions created by Officine Panerai for the clients of some of the Panerai boutiques throughout the world.
Smart AudioBook Player (Android)
Canon Projector Canon Middle East has announced the launch of five projectors to its LV range, including its brightest ever model – LX MU700, which offers 7500 lumens when both lamps are in use. It is ideal for environments such as large auditoriums where there are high levels of ambient light. The LX-MU700 also supports seven interchangeable lenses – ranging from short fixed to ultra-long – enabling integrators to choose the lens best suited to the projection distance and environment. The new models are designed to meet the varying requirements of customers and integrators, particularly within the business and education environments, thanks to improved connectivity, high brightness and flexible installation capabilities.
App Reviews
The latest LX models support HDBaseT, a new standard for connectivity, allowing for the transmission of HD media, audio and control signals over long distances via a single LAN cable.
If you are the kind of person who deals with a lot of transcriptions, Smart AudioBook Player may be ideal for you. As the name suggests, the app is meant to play audiobooks, but the additional features that it adds to improve that experience will also be a boon for transcribers. You can also work with multiple files – just name them progressively and add to a subfolder, the app will automatically start with the first file. The key feature here, however, is the ability to rewind 10 seconds on the tap of a button, even from the home screen. The app’s home screen gives much more control, letting you go back and forward, and even skip entire chapters (in this case the audio files).
Workflow (iOS)
This paid app for iOS is a powerful automation tool for your iPhone and iPad. Workflow connects apps and actions together to automate things you do on your device. For instance, you can set it up to call you a cab automatically for your next meeting. The app is different from its free IF alternative in the sense that it allows you to add many more steps to your task. IF limits you to just two steps per task – if this happens, do this. Workflow does not have such a restriction.
The Edge | 91
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