The Edge Dec 2013 (Issue 50)

contents December 2013 w w w.t h e e d ge. m e

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cover story 51

The Edge celebrates its 50th anniversary with a collection of 50 covers, quotes and numbers from past issues.

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Hamad Al Kuwari, managing director of QSTP says the organisation’s vision is to be an international hub for applied research, innovation and entrepreneurship; an active and supportive free zone, and a facilitator of technology commercialisation.

features Feature Story: Preserving Old Doha

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Should the oldest parts of Qatar’s capital be considered for World Heritage Site status?

Feature Story: The High Road

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Legal experts are unanimous that the number of cases before Qatar’s courts will increase if contracts remain unclear. Is mediation a solution?

Business Interview: Hamad Al Kuwari 78

Managing director of Qatar Science and Technology Park (QSTP), Hamad Al Kuwari, discusses key functions and plans of QSTP for 2014.

Feature Story: Qatar in 2050

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What will Qatar look like in 2050? What will be the likely cultural and economic changes brought about by a rise of the machines?

The eclectic and neglected growth of areas of Old Doha such as Msheireb offers a great potential hidden by their drab and dusty exterior, says Tim Makower in Preserving Old Doha.

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sectors

Finance & Markets 29

Rising volumes, recovering valuations and increasing foreign institutional investments are expected to drive IPOs in the GCC.

In this month’s Finance & Markets sector, we discuss the expectation in the investor community that IPO investment will become more lucrative in Qatar.

Energy & Sustainability 33

Iran is to support the linking of gas contracts to oil prices. And the move means Qatar has found itself an unlikely ally.

Real Estate & Construction 37

Qatar offers an attractive marketplace for construction contractors across the world. But with opportunities also come challenges.

Tech & Communications 41

The culture of bring-your-own-device to work is becoming a growing concern for IT departments within Middle Eastern organisations.

Healthcare & Education

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Qatar University’s Innovation and Entrepreneurship Contest aims to engage the spirit of entrepreneurship among students, and promote awareness of business ownership and management.

regulars From the Editor 08 Photo of the Month 12 Business News 14 Qatar Perspectives 22 Products Page 90 The View from Doha 92 4 | The Edge

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 digital editor/editorial asst. shehan mashood s.mashood@theedge-me.com international sales director julia toon j.toon@firefly-me.com | +974 66880228 head of business sales manu parmar m.parmar@theedge-me.com | +974 33325038 sales manager adam kynnersley a.kynnersley@theedge-me.com | +974 66079716 digital sales manager norbert asenso n.asenso@theedge-me.com | +974 50142936 area sales manager UAE roger cousin r.cousin@firefly-me.com | +971 508716076 distribution & subscriptions azqa haroon/joseph isaac a.haroon@firefly-me.com/ j.issac@firefly-me.com art director sarah jabari production coordinator ron baron photographer herbert villadelrey 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 2013 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.

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editor’s letter 50 editions of The Edge. Looking back through the issues dating from August 2009 when compiling our retrospective cover story, as I was searching for quotes and numbers that told a narrative of the magazine’s first four years of publications, a few realisations surfaced.

The first was of course how far the magazine itself has come. The brainchild of our owners, Qatari businessmen Mohamed Jaidah and Abdul Salam Abu Issa, what was initially, like everything, just an idea – a progressive business magazine created to serve Qatar’s nascent private sector, with the highest standards of professionalism and independent journalism – The Edge has evolved into what I hope you agree is a quality product.

Having joined the magazine just before its first birthday in June 2010, I soon became aware of the giant task of meeting this ambitious ideal its staff had faced from day one, and going through our archive brought that back to me vividly.

Everything then was a challenge, including the usual regional and publishing industry issues of building a team of dedicated staff and marrying our journalistic aims with coherent design, securing well-written articles, meeting deadlines and ensuring our mandate toward thoughtprovoking and probing content.

The latter of course had to be balanced with the realities of modern Qatar, where such media ambitions were poorly developed or unknown and intentions perhaps mistrusted.

This is of course a normal publishing challenge true to a lesser or greater degree anywhere in the world, but The Edge was then quite new, and moreover had yet to penetrate the complex Qatari business environment and prove itself as a trusted, reliable and accurate media voice here.

To be frank, many people also did not know

who we were. And we had not yet developed a network to draw from in order to reach sources and the contacts we needed to be exposed to, for the business stories we knew were out there.

Thanks to its gas wealth, Qatar was in part insulated from the global economic downturn, but its effect was nevertheless felt in Doha, and as we launched the magazine right at the height of the global recession, gaining traction in the market was always going to be a massive undertaking.

Four-and-a-half years later, things are quite different. The Edge has assembled a professional team of staff, has a high standard of journalism, is beautifully designed and, I feel, we have developed a solid relationship with clients, our readers and a positive reputation in the business community of Qatar and the greater Gulf region.

Where we once struggled to fill the magazine with great content, we are now flooded monthly with leads for stories and requests for interviews with private and public sector business leaders, and The Edge is involved as trusted partners with some of Qatar’s most prestigious business events.

I also realised the owners and staff at Firefly Publications have worked hard on creating 50 editions of this magazine, and that we are also lucky to be in such a dynamic country where there is so much rich business content for us to cover.

Going through the past 49 issues, like our publication, it has also been apparent how far Qatar has come, from the awarding of the 2022 World Cup in 2010, to the Emiri succession of 2013 and of course how far it could potentially go.

Hopefully for the next 50 years or more, you will be able to read all about such golden moments in Qatar as they occur in The Edge.

On behalf of all the staff of The Edge, we would like to thank all the advertisers, marketing and event partners, readers and others, who have helped our efforts to create a publication both our staff and indeed Qatar can be proud of and have helped The Edge, Qatar’s business magazine, to reach its 50th issue. Shukran to one and all.

Please enjoy this special issue, this month – a unique mix of past, present and future.

See you in 2014.

We would like to thank all the advertisers, marketing and event partners, readers and others, who have helped our publication, The Edge, reach its Miles Masterson 50th issue. Shukran to one and all. Managing Editor 8 | The Edge

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photo of the month

Camel parade

Qatar National Day marks the day that Sheikh Jassim bin Muhammad bin Thani succeeded his father as ruler on December 18, 1878. Although Qatar achieved official independence and became a sovereign state much later, Sheikh Jassim bin Muhammad bin Thani is credited with unifying local tribes under his leadership, making him a central figure in Qatar’s modern history. December 18 was only made a national holiday in 2007 by an Emiri Decree of HH the Father Emir Sheikh Hamad bin Khalifa Al Thani, before which September 3 was celebrated as the day Qatar gained independence from the United Kingdom. Pictured here from last year’s National Day festivities is a ceremonial parade of young Qatari men on camels. (Image Corbis) The Edge | 13

news business

Could recent critical migrant worker reports harm the Qatari economy?

Labourers working at a construction site in Doha. Amnesty International recently released a report critical of the status of migrant workers in Qatar. (Image Reuters/Arabian Eye)

As international organisations such as United Nations (UN), Amnesty International and the International Trade Union Confederation (ITUC) take notice of Qatar’s migrant worker conditions, could the country be affected economically? Farwa Zahra explores.

Francois Crepeau, UN’s special rapporteur on the human rights of migrants visited Qatar in November and made 15 recommendations after investigating migrant worker conditions in labour camps, the deportation centre, central prison, shelters and in the streets.

In the second half of November, Amnesty International released a report, The Dark Side of Migration: Spotlight on Qatar’s construction sector ahead of the World Cup. Based on interviews with 210 migrant workers in Qatar, the organisation concluded, “Qatar will need to develop a comprehensive approach to the protection of migrant workers’ rights.”

While Qatar has for some time been attracting international media attention concerning the labour conditions, the ITUC has again urged FIFA authorities to revoke its right to host the 2022 World Cup if it fails to adequately address the allegations made against it.

Though an unlikely proposition, the possibility of change in the 2022 World Cup venue would of course thwart Qatar’s developmental plans.

But could these reports and recommendations be more likely to negatively affect the business

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sector in Qatar, at least in the short term?

Michael Stephens, researcher at Royal United Services Institute for Defence and Security Studies in Qatar, is sceptical.

He told The Edge, “I do not foresee the country being subject to collective punishment from the outside world. But reputationally, Qatar’s standing has taken a big blow.”

Nicholas McGeehan, researcher for Qatar, Bahrain and United Arab Emirates at Human Rights Watch sees similar prospects for the country. “Boycotts are very unlikely, “ he said, “and Qatar’s wealth is guaranteed due to its huge reserves of hydrocarbons and small population.” However, beyond economic risks, McGeehan believes, “the issue is doing tremendous damage to its reputation and may have ramifications for its attempts to act as a global player.”

While the reports on migrant worker conditions may not affect Qatar’s economy directly, the country’s could they influence foreign investors? “This will affect the decision of companies who want to set up in Qatar and who fear that doing business here will harm their global reputation,” said Stephens, adding that reforms on the issue touted in Qatar will pay off in the future, “One day the oil and gas will run out, Qatar must have a business-friendly climate ready to continue into the future and diversify its economy properly, and labour rights and working conditions play a big role in this change.”

While denying the abuses of migrant workers in Qatar are as widespread as some suggest, the Qatari authorities have pledged to improve their conditions and treatment through stricter laws and better enforcement. Many Qatari organisations are also encouraging contractors to practice ethical work conditions, such as Qatar Foundation, which released its Migrant Workers Welfare Charter this year. “With the charter and the standards, the emphasis is that we would like to work with ethical companies, not with partially ethical companies, so that is very important to us,” Ameena Ahmadi, architectural manager at QF Capital Projects, told The Edge.

Taking notice of the international criticism, on November 8, Qatar’s National Human Rights Committee announced plans to establish a dedicated centre dealing with the issues of migrant workers.

“We would like to work with ethical companies, not with partially ethical companies.” - Ameena Ahmadi, QF Capital Projects.

news business

Global Entrepreneurship Week hosts speed-mentoring sessions

Entrepreneurs and guest speakers network between sessions during the Global Entrepreneurship Week (Pictured left is Khalifa Al Misnad, the president of Qatar Entrepreneurs Organization, one of the speakers at the event.)

The global event held in November, which Qatar participated in for the second year, saw competitions, workshops, networking and mentoring activities to encourage innovation among local entrepreneurs.

There were numerous events held around Qatar throughout the week with organisations such as Enterprise Qatar, Silatech, Qatar Development Bank (QDB) and Qatar Science and Technology Park involved.

Open to the public, workshops and seminars featured specialists in marketing, law, business management and technology, as well as Qatari businessmen who volunteered to speak about their professional experience.

Among the different activities held during the week were speed-mentoring sessions, where visitors could sit with various entrepreneurs with established businesses, and experts with

Visitors could sit with entrepreneurs and experts to discuss SME challenges and practical solutions. industry-specific knowledge to discuss challenges.

For example, one of the mentors, Feda Barghouti, acting market development manager with the Ministry of Information and Communications Technology (ictQATAR), advised a businessman to move his data to the cloud instead of investing in expensive hardware, explaining its advantages in pricing to SMEs. Barghouti later told The Edge that they had identified 68 technology-based opportunities in the market, with many in fact particular to providing services to SMEs. Over the course of the week, Enterprise Qatar and QDB also hosted events to help entrepreneurs and SME owners identify business priorities and investment opportunities.

Qatar UK 2013 cultural exchange comes to an end Qatar UK 2013, a year-long cultural exchange programme between the two countries, comes to an end in December.

Nicholas Hopton, United Kingdom’s ambassador to Qatar told The Edge that the Qatar UK 2013 Year of Culture was an opportunity to strengthen and deepen relationships. Hopton was full of praise on what the year has brought, saying, “Our institutions are working well together for mutual benefit. Relations at ministerial level have been strengthened significantly.

There is a greater understanding of Qatar in the UK and vice versa.”

A competition organised by the British Council and the Qatar Museums Authority as part of the year of culture, The Old Doha Prize, culminated recently with the winners being announced. Architects were asked to submit proposals of approaches to heritage-led regeneration relevant to the future of Old Doha. The winners, Fatima Fawzy, Alicja Borkowska, Alaa Larri and Iris Papadatou received a QAR88,000 grant to further develop their research.

“Qatar UK 2013 Year of Culture is not limited to a 12-month period,” added Hopton, “We are already discussing how we can build on this year’s

Nicholas Hopton, United Kingdom’s ambassador to Qatar said he hopes to build on the achievements made during the Qatar UK 2013 cultural exchange.

achievement in 2014, for instance by launching an annual UK Qatar Week of cultural and other activity.”

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news

business in brief

Words & Numbers

Qatar Food Chain Conference discusses food safety systems

QAR54.6 billion

Remittances from Qatar in 2013, according to Xpress Money, which also estimated remittances from the GCC at QAR182 billion.

“Events such as this... help to generate momentum for informed policies.”

Dr. Nader Kabbani, Silatech director of research and policy on Qatar’s Global Entrepreneurship Week.

109%

Increase in Qatar’s property prices from July 2009 to May 2013, stated The Qatar Central Bank’s Real Estate Price Index.

“Companies in Qatar must ensure that migrant workers employed on construction projects linked to their operations are not being abused. “ Salil Shetty, secretary general of Amnesty International in the context of Amnesty’s report The Dark Side of Migration: Spotlight on Qatar’s Construction Sector ahead of the 2022 World Cup.

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Mohammed Ahmed Yousef Al Sayed, the head of the Health Control Section at Doha Municipality, at the recent Food Chain Conference in Doha.

Key government personalities related to ensuring food safety in Qatar, cold chain technology solutions providers and food establishments, discussed critical temperature-abuse scenarios, among other issues, during the fifth Food Chain Conference, held in October in Doha.

Mohammed Ahmed Yousef Al Sayed, the head of the Health Control Section at Doha Municipality, said that consumers should be protected at all times, and that it is the responsibility of Doha Municipality to do so.

Milaha wins at Seatrade Middle East Awards Provider of transport and supply chain solutions, Milaha has received two major accolades at the recent Seatrade Middle East and Indian Subcontinent Awards 2013 held in Dubai. Milaha’s President and CEO, Khalifa Ali Al Hetmi, received the Seatrade Outstanding Achievement Award, a special award presented to individuals who have made exceptional contributions to the industry in the region.

Ooredoo announces enhanced Business Group package

In November, Ooredoo announced the launch of its enhanced Business Group package, which allows companies to create closed user groups, so that all employees’ phones can be managed as a single account, even with hundreds of mobile numbers. Companies can also assign unique short numbers for use within the group. Business group members will be able to reach each other quickly and easily by deploying these shorter numbers to their key contacts. Business Group also offers an online interface where companies can centrally manage all aspects of their closed user groups.

Aspire4Sport concludes on a high One of the first day highlights at Aspire4Sport this year was the unveiling of the Al Wakrah stadium design, one of eight stadiums to be built for the 2022 World Cup. The event also had numerous sporting greats in attendance including basketball legend Shaquille O’Neal and football star Alan Shearer who discussed their careers in a Q&A session. Sports technology and stadium design building were among the topics discussed at the event, with many organisations choosing to reveal their new products at the event.

New sports law practice in the Middle East

2014 Chevrolet Silverado launched in Qatar

Al Tamimi’s Saleh Al Obeidli of the UAE meets the general secretary of the Qatar Olympic Committee Sheikh Saoud bin Abdulrahman Al Thani.

Sole distributor of Chevrolet in Qatar, Jaidah Automotive has launched the new 2014 Chevrolet Silverado pickup in Doha.

Engineered to be more capable than its previous models, the 2014 Silverado pickup featuring many improvements, including the EcoTec3 engine is a 5.3L V8 with 355 horsepower and 519 Nm of torque. The chassis of the 2014 Silverado includes a number of customer-focused updates, including a revised front and rear suspension.

Al Tamimi & Company, the Middle East’s largest full service law firm, has launched the region’s first dedicated sports law practice. The new sports law practice is a direct response to client demand and the need for specialised legal counsel in a growing and increasingly complex sports market. According to a PwC report, the combined Europe, Middle East and Africa market is currently ranked as the second largest sports market in the world.

events business

Qatar, December 2013

event of the month 10 - 11 December

The Euromoney Qatar Conference

The theme for the second year of the Euromoney Qatar Conference is ‘Global Finance ReEngineered’. The rising profile of Qatar’s financial sector in the region has drawn attention from financial houses serving the Gulf region, with a record number of registrations to attend from the United Arab Emirates this year, according to Euromoney Conferences.

Qatar’s upgrade to ‘Emerging Market’ status first by MSCI and S&P Dow Jones, which will take effect in 2014, is likely to attract more international investment. The evolution of Qatar’s regulatory environment will also be a topic of discussion, in particular, around changes that could limit the exposure of local banks to stateowned government-related entities, which have potentially significant implications for banks and for future capital market issuance.

Richard Banks, director of Euromoney Qatar Conference, said, “The recent changes within the country’s investment strategy and regulatory framework have increased the pressure for banks and financial leaders to get closer to the realities on the ground, which is driving interest in this year’s Euromoney Qatar Conference.”

December events 4 - 7 December Excellence in Paediatrics

11 December

RasGas Qatargas Helium 2 Inauguration Day

18 December Qatar National Day

January events 19 - 22 January International Petroleum Technology Conference

The International Petroleum Technology Conference (IPTC) will be the venue for discussion of technology and other relevant industry issues impacting professionals in the field of oil and gas from around the world. Regional oil ministers, governmental representatives and industry leaders will be able to share views and exchange expertise on new technologies and innovation to stimulate research on technical and business activities.

26 - 29 January Roads Middle East

Sheikh Abdullah Saud Al Thani, Governor Qatar Central Bank, speaks at last Euromoney Qatar Conference. (Image Euromoney Conferences)

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The planning, delivery and management of a number of critical road infrastructure projects in Qatar; which include the Lusail Expressway, the Dukhan Highway and F-Ring Road; are a top priority and will be a point of discussion at the upcoming 4th Roads Middle East conference. Topics that will be discussed according to the agenda of the two– day event include the need to keep pace with the growing demands for road services, planning for smarter, efficient and more urban–friendly roads, and project management strategies.

qatar perspectives

Is Qatar poised to benefit from growth in the GTL market?

The move With plentiful supplies of natural gas, Qatar has over the years looked for alternatives to its liquefied natural gas (LNG) exports. One increasingly viable option is gas-to-liquid (GTL) products, which is growing globally, writes Oliver Cornock.

GTL technology converts natural gas into a synthetic liquid fuel through a refining process. While this technology has been in existence for nearly a century, until recently only South African energy and chemical firm Sasol and Royal Dutch Shell had developed GTL facilities on a commercial scale.

Both Sasol and Shell have invested in GTL facilities in Qatar. ORYX GTL, a joint venture between Sasol (49 percent) and Qatar Petroleum (51 percent), was the country’s first GTL facility, commissioned in 2007 and located at Ras Laffan Industrial City. With a capacity of 32,400 barrels per day (bpd), the ORYX GTL facility produces a range of GTL products, including diesel, naphtha and LPG, with diesel making up the bulk of output.

The USD19 billion (QAR69 billion) Pearl GTL plant, the world’s largest such facility, came on-line in 2011. Operated

by Shell, which holds a development and production sharing agreement with Qatar Petroleum, the plant turns out 140,000 bpd of GTL products, along with 120,000 bpd of natural gas liquids and ethane. Its GTL production is split between diesel, jet fuel, oils for advanced lubricants and naphtha, which has a number of industrial uses, including for plastics manufacturing.

Pearl is integrated from wellhead to finished product, while ORYX GTL receives methane as feedstock from Al Khaleej Gas in Ras Laffan.

Fuelling aviation

Qatar International Petroleum Marketing Company (Tasweeq), the state-owned oil and gas marketing company, has been actively promoting the use of GTL jet fuel, a 50/50 blend of GTL kerosene and conventional crude oil-derived standard jet fuel, produced at the Pearl facility.

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The GTL product was approved for use in civil aviation by American Society for Testing and Materials International in 2009 as a ‘drop-in’ fuel, meaning that it is interchangeable with conventional jet fuel. Qatar Airways has been using the product since January of this year, and as of June, Tasweeq has been exporting the fuel to other markets in the Middle East and looking to sell the fuel elsewhere.

Advantages of GTL fuel include its lower density, making it lighter and thus more cost-effective. It also burns cleaner than conventional fuel, reducing maintenance costs and environmental impact.

LNG alternative

The move toward GTL and other valueadded production comes as Qatar’s energy sector has reached a plateau, with limited expansion expected in the gas segment for some years to come, at least until the moratorium on the development of the North Field is lifted.

Oil production is also slowing down.

While oil exploration campaigns are underway and could yield new fields, any additional production would likely not occur for some time.

The development of GTL also limits Qatar’s exposure to gas prices, which are trending downward as they become increasingly decoupled from oil prices, and new production techniques have lowered costs. This in turn has boosted the commercial viability of processed gas products, including GTL. According to Marjo Louw, president of Sasol Qatar, the future of GTL will be largely dependent on how the market for gas unfolds over the next few years.

“While there is significant demand for gas, the prospect of major gas discoveries in Asia and Africa could have a further impact on prices. For markets that can supply large amounts of natural gas at low cost, GTL represents a viable alternative,” he said.

The United States (US), like Qatar, fits that profile, which is why it has been identified as a promising location for GTL facilities. Following the success of the ORYX GTL plant, Sasol has announced

toward GTL and other value-added production comes as Qatar’s energy sector has reached a plateau. plans to build the first GTL facility in the US at a cost of USD14 billion (QAR51 billion), and Shell CEO Peter Voser said in November of last year that he was considering a GTL plant for the US. Such developments, if realised, could significantly alter a market that so far has remained small. Today only a handful of GTL plants operate commercially, in Malaysia, South Africa and Qatar. Together they produce around 200,000 bpd of fuels and lubricants and account for less than one percent of global diesel produced.

However, with more customers starting to look closely at GTL as a fuel alternative, it could form an increasingly important part of Qatar’s energy output.

Oliver Cornock is the regional editor Middle East for Oxford Business Group.

qatar perspectives Banking brand values and the Masters of the Universe I remember once biting my tongue at the peak of the financial crisis in 2008 and 2009 when a banker said to me, “Crisis?

What crisis? We don’t have a crisis in Qatar.” And be that as it may, I thought, we must know of someone whose family suffered through job losses, retrenchment, bankruptcy and so on. It seemed to me that there was a massive chasm between this guy and the real world, which, believe it or not, relates to banking as brands in the country today, writes Anthony Ryman.

A basic tenet of banking is trust, and it is this trust that was so abused as we screeched towards the precipice of a global meltdown. As I continue to approach banks about expressing and living their brand values, I realise there remains a huge divide between them and us.

It is not a lack of intelligence. It is more their left-brain focus, where their world is viewed from a cost/profitability perspective versus a right-brain sharing/ caring perspective, and this is just the beginning of the divide.

Let’s start with some facts: There are 18 banks in Qatar for a population of two million. We are overbanked. There is also a lack of clarity and positioning in brand communications in the sector.

Good branding has more to do with the customer living the brand at every touchpoint than is being communicated from newspapers and hoardings. It has more to do with understanding human behaviour, experience and needs-based requirements than screaming about a free interest on your credit card offer that lasts for six months before you hike it up to 23.4 percent annual percentage rate (APR).

I urge you to try putting your finger over the logo on a baking advertisement and then guessing which bank it is, as the ubiquitous family photo with a smiling child in a perfect family setting beams out at you.

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Falling short

Technology company SunGard’s research recently revealed that Qatar’s banks are not yet meeting customer expectations, showing: • Just 48 percent of customers in Qatar feel their bank understands their needs, despite 95 percent of customers still visiting their branch on a regular basis.

• 43 percent of customers picked mobile banking and 51 percent highlighted online banking as services that need improvement.

• 27 percent of Qatar’s customers surveyed were dissatisfied with the resolution of a complaint.

It seems Qatari banks have not truly integrated the power of brand values into the customer experience. Ask any branch teller what their bank’s brand values are, they would not know. If they do know, ask them how they live these values and they would not know. It’s not their fault or even their problem.

Here’s the rub. The world has moved away from broadcast to bookmark (the place you go to first: online or offline). I am not talking about online chats or social media. I am talking about being relevant and useful in our new, always-on and always-shared world.

Banks must become more relevant, in other words, valuable and stand for a higher purpose that is more about ‘us’ and less about ‘them’. That is the bottom line. They must stop defining themselves by what they own or what they have done (“the world’s greatest, richest, gazillion dollar, profit-hungry local bank”).

Their new brand story should be about the honest, authentic values that they passionately believe in and the world they want to share with us and give us the freedom to participate in and co-create.

It is this sharing of values that will make people sit up, take notice and act.

When your values match mine as the consumer and you mean them honestly, you give me the power to interpret, act and use them to help define me as an individual, then we are moving beyond ‘transaction’ and the functional (‘free’ credit cards, or ‘great deals on loans’)

Banks must become more relevant, valuable and stand for a higher purpose that is more about us and less about them. to a ‘relationship’ (understand or help me grow; create my future; believe in what I believe in). Financial institutions have to incorporate the action of ‘trust’, ‘integrity’, ‘honesty’ and ‘transparency’ at the centre of their beliefs, attitudes and communications.

Trust, integrity, decency and identity must surely form the cornerstone of any financial institution’s self-worth and belief.

These values translate into doing good work which breeds more self-confidence and expression of values that people can believe in and want to belong to. Create happy experiences for customers. Now there is a thought.

Anthony Ryman is managing director of grow, a brand consultancy in Qatar.

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The Edge | 27

This section is brought to you by Qatar Financial Centre Contents: Investment and IPO climate positive in GCC and Qatar 29. Optimism in Qatar business services at a peak 30. GRE bonds to ease project funding 32.

finance & markets

Consequent to the MSCI upgrade to Emerging Market status, which becomes effective from May 2014, there is an expectation in the investor community that IPO investment will become more lucrative, a sentiment largely supported by financial experts such as Deloitte which forecasts that both QE and the Dubai Stock Market will see renewed interest in equity. (Image Reuters/Arabian Eye)

Investment and IPO climate positive in GCC and Qatar

According to Deloitte Middle East’s first Equity Capital Markets Confidence Survey, several factors such as rising volumes, recovering valuations and increasing foreign institutional investments are expected to drive initial public offerings (IPOs) in the Gulf Cooperation Council (GCC) in 2014. The Edge’s Aparajita Mukherjee spoke to Robin Butteriss, head of financial advisory services at Deloitte Qatar, about the survey.

W

hile the regional and international equity markets have generally been depressed post-global financial crisis, early signs of recovery are appearing with higher volumes being traded on some of the regional exchanges, and more interest from foreign investors. Additionally, the GCC economies are showing positive signs of recovery across a multitude of sectors, including retail, tourism, real estate and infrastructure.

According to Deloitte Middle East’s first Equity Capital Markets Confidence Survey, the Tadawul (Saudi Stock Exchange), the Dubai Financial Market (DFM) and the Qatar Exchange (QE) are expected to be the most active GCC exchanges over the next 12 months, and there is a strong pipeline of issuers looking to launch IPOs regionally as well as on international stock exchanges.

The survey, which was conducted

Brought to you by:

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sectors | finance & markets

through meetings with 30 equity capital market practitioners within regional and international banks operating in the GCC, covering the MENA region, and covers topics such as the macro-economic environment, valuations, the IPO process and regulations, among other themes.

Commenting on Deloitte’s outlook on the IPOs that have been planned on the Qatar bourse in late December 2013, Robin Butteriss, head of financial advisory services at Deloitte Qatar, said, “The planned IPOs and listings on the QE from late 2013 onwards are likely to create a wave of positive sentiment in the market, and will encourage other businesses to consider listing on the QE. The IPOs will also encourage more investment enthusiasm which will reinforce Qatar’s overall positive economic outlook.”

However, he added, effective planning, diligent implementation, conforming to regulatory requirements and realistic valuations will be key considerations for companies and their successful IPOs.

Volume indicators

Over 70 percent of the respondents of the Deloitte survey expect the volume of IPOs in the GCC to increase in the next 12 months. However, from a volume perspective, both the Dubai Stock Exchange and the Saudi Stock Exchange are larger than the QE and volumes traded on the QE are significantly less than these bourses. Butteriss added, “It may not be meaningful to draw any direct comparisons to them. However, with Qatar’s planned IPOs, MSCI upgrade and favourable economic outlook, the QE is expected to be one of the most active exchanges in the GCC over the next year.”

Butteriss was of the opinion that Qatar being upgraded to Emerging Market status

by MSCI and S&P should spawn a new era of investment inflows into the country through a broader access to funds from around the world.

“Qatar and United Arab Emirates markets have already responded positively to the upgrade with appreciation in their respective stock market indices,” said Butteriss. “As experienced in upgrades in countries such as China and Korea, there will be a window of adjustment where frontier graded funds will be retracted and replaced with emerging funds. In the medium to long term, there is an anticipation of considerable liquidity improvement which, combined with the wave of IPOs planned in Qatar, will lead to more equity momentum in the country.”

30 | The Edge

Deloitte capital survey highlights • Prominent sectors: Infrastructure, retail, oil and gas, and manufacturing are likely to attract potential issuers in the foreseeable future.

Market sentiment

Optimism in Qatar business services at highest level

• Trade volumes: Increases in trading volumes driven by foreign investors seeking a safe haven from sociopolitical turmoil in the wider Middle East region.

• Valuations have improved: The announcement by the Morgan Stanley Capital International (MSCI) to upgrade the UAE and Qatar exchanges to emerging market status, effective from May 2014, has gone some way in explaining the uplift in valuations.

• Why IPOs did not take off?: Challenges typically experienced on IPO processes include mismatch of valuation expectation, lack of readiness on the part of issuer to deal with the IPO process and conforming to listing requirements.

• IPO timeframes: KSA IPOs on average took longer to go through the listing process, with almost 90 percent of respondents experiencing a typical process in excess of 12 months.

• Steps being taken to list on stock exchanges: Prospective issuers are increasingly being encouraged to give consideration to engaging specialists earlier in the IPO process.

30

The number of equity capital market practitioners in the GCC who participated in the recent Deloitte capital markets survey.

Yousef M. Al Jaida, chief strategic development officer, QFC Authority, said, “Q4, 2013 Qatar BOI findings reveal a sharp increase in the outlook of both hydrocarbon and non-hydrocarbon sectors driven by positive expectations on all parameters that contribute to the overall BOI score.”

Business optimism in Qatar has risen to its highest in nearly three years, according to the Dun & Bradstreet’s Business Optimism Index in the Q4 2013.

Yousef Al Jaida, chief strategic development officer of QFC Authority outlines for The Edge why the business environment is so positive. by Aparajita Mukherjee The Business Optimism Index (BOI) reveals that optimism is at a level unsurpassed for 11 quarters. Sponsored by the Qatar Financial Centre Authority (QFC Authority), the survey also reveals that optimism in specific sectors such as finance, real estate and business services has reached its highest level in the last three years. At a year-on-year growth of 15.4 percent, the sectors have been the fastest growing in Qatar.

The index for the consolidated nonhydrocarbon sector was 53, up 14 points from Q3 2013 and around 15 points from Q4 2012 levels. The index value in

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sectors | finance & markets

Q4 2013 is the highest recorded reading since Q1 2011. It touched 61 points, showing that economic diversification in Qatar is gathering momentum.

Other indicators also provide evidence for the strength of Qatar’s economy. The profitability expectations of the finance, real estate and business services sectors have risen sharply over the last year (58 points in Q4 2013 from 21 points in Q4 2012). “The fourth quarter of 2013 Qatar BOI findings reveal a sharp increase in the outlook of both hydrocarbon and nonhydrocarbon sectors,” Al Jaida told The Edge, “driven by positive expectations on all parameters that contribute to the overall BOI score such as volumes of sales, new orders, selling prices, profitability, and hiring.”

Within non-hydrocarbons, added Al Jaida, rising optimism in key sectors such as manufacturing, construction, trade and hospitality has led to a higher BOI score.

“A higher percentage of respondents in these sectors expect strong demand and increasing projects in the coming quarter.”

With the overriding consideration of

Infrastructure finance

GRE bonds to ease project funding Offering insights in the Gulf Cooperation Council (GCC) markets, Standard & Poor’s (S&P) has said that Qatar’s capital expenditure, ahead of the 2022 World Cup, primarily led by government-related entities (GREs), may readily be able to obtain funds from local regional banks at low rates, which it adds, could in effect nullify the need to list on the Qatar Exchange.

How Project Bonds Could Plug The Potential Gap In GCC Infrastructure Financing, released by Standard & Poor’s has stated that infrastructure spending in the GCC is estimated by market participants to total USD2 trillion (QAR7.3 trillion) over the next 20 years.

This is because of the increasing demands on utility companies; infrastructure expansion associated with rail, ports, and airlines, and events such as the 2022 World Cup. Second, the region 32 | The Edge

economic diversification, reflected both in the Qatar National Vision 2030 and the National Development Strategy 2011 to 2016, how do the findings of the latest BOI reflect diversification of the economy?

Al Jaida was of the opinion that at 59 points, the non-hydrocarbon sector optimism score is much higher than the hydrocarbon sector score of 29 points and, on a quarter-on-quarter basis, is at its highest in the last 11 quarters.

“On the other hand, the BOI scores

for the hydrocarbon sector have seen a flattening trend over the last few quarters compared with higher optimism levels observed in 2010 and 2011,”he said.

He added that this rising optimism in the non-hydrocarbon sector coupled with flattening optimism in the hydrocarbon sectors reflects the ongoing efforts of the Qatari government and institutions such as the Qatar Financial Centre to diversify the economy, further in the direction of financial services.

“The fourth quarter of 2013 Qatar BOI findings reveal a sharp increase in the outlook of both hydrocarbon and nonhydrocarbon sectors, driven by positive expectations.”

- Yousef Al Jaida, QFCA. is diversifying away from upstream oil and gas revenues through large industrial and energy-related projects. Third, a number of corporate and infrastructure financings have entered or are due to enter their operational phase. As a consequence, they may require project financing in the bank and/or bond markets.

In addition to projects in the oil and gas sector, S&P believes other industry sectors requiring financing will include power and water, transportation, and real estate.

That said, the report further states that governments in the Gulf will likely prioritise essential projects in power, water, and hydrocarbons that they consider crucial to their economies and growing populations,

QAR

7.3

trillion

Infrastructure spending in the GCC over the next 20 years.

ahead of other infrastructure sectors such as transport.

However, the Gulf project finance bank market does face regulatory hurdles. The implementation of the Basel III framework for banks could have a direct impact on the tenders for long-term project financing and reduce the involvement of European financial institutions in long-term lending to the region. Closer to home, SAMA, the central bank of Saudi Arabia, has adopted new regulations affecting financial services firms, and S&P anticipates that similar controls will shortly be introduced in Kuwait and Qatar. The regulations introduce capital charges for bank lending to projects that previously were not required. Other regulations such as limitations on exposure by banks to single name, state-owned GREs have also been discussed in the United Arab Emirates.

Until now, a large number of expensive infrastructure transactions have been arranged by holding companies that are effectively GREs or quasi-government departments. The implementation of Basel III may, in S&P’s view, encourage a number of the GREs to raise capital through a jointventure project or structured financing, especially if these regulatory changes lead to lower availability of long-term financing from banks.

Contents: Unlikely allies: Iran backs Qatar in oil indexation debate 33 . An area half of Qatar could power GCC 34 .

‘Underperforming’ global projects bolster Qatar LNG 36 .

energy & sustainability

Like Qatar, Iran backs natural gas supply contracts linked to oil price movements. Here bottles of oil are displayed at the 17th Oil, Gas, Refining and Petrochemical Exhibition held in Tehran in 2012. (Image Corbis)

Unlikely allies: Iran backs Qatar in oil indexation debate Iran is to support the linking of gas contracts to oil prices throughout its two-year leadership of the Gas Exporting Countries Forum, it emerged in November. And the move means Qatar has found itself an unlikely ally, writes The Edge Energy and Sustainability editor Jamie Stewart

I

ran’s petroleum minister Bijan Zanganeh has come out in favour of linking longterm natural gas supply contracts to movements on oil markets in a move that could have far-reaching ramifications for Qatar’s hydrocarbon export industry. As of this month, Mohammad Adeli, the former governor of Iran’s central bank, begins as the new secretary general of the Gas Exporting Countries Forum (GECF), which counts Qatar as a principal mover among its 13-strong membership.

Adeli will serve a two-year term, during which time he will front Iran’s leadership of

the group. This will lend the country, which boasts the world’s second largest proven gas reserves – one place ahead of Qatar in the global rankings – a more influential voice than it would have otherwise possessed over the two-year window.

This will give Iran a platform to shape the debate among gas exporting countries. And one of the most pertinent issues of the day, particularly in relation to large-scale exporters such as Qatar, is that of oil indexation versus gas-hub pricing in long-term deals.

“Long-term contracts drawn up with formulas based on an oil and gas

price connection will continue,” Minister Zanganeh said after a meeting, which marked Adeli’s appointment, to the GECF in the Iranian capital Tehran in November.

The statement was subsequently published by Iran’s Pars Oil and Gas Company, which was set up to develop the giant gas field that the nation shares alongside Qatar.

Point counterpoint Zanganeh’s statement highlighted the deep fissures between gas exporters and importers that have seen the oil The Edge | 33

sectors | energy & sustainability

Of all gas exporting nations, Qatar, alongside Russia, has most to gain – or lose – as a result of the oil indexation debate.

34 | The Edge

120

16 14

100

12 80

10 8

60

6

USD/barrel

USD/million metric British thermal units

indexation debate run on. “The importers are interested in the issue of independence and the separation of gas prices from oil, [because] they seek stability, but this issue is not backed by the majority of gas producers and exporters,” Zanganeh said.

Of all gas exporting nations, Qatar, alongside Russia, has most to gain – or lose – as a result of the oil indexation debate.

Those who argue in favour of oil indexation claim that the long-term demand drivers affecting the underlying commodity of crude oil, such as economic growth, population growth and industrialisation, inherently apply to gas demand as well.

But the counter argument, most forcefully adopted by European nations, is that linking instead to shorter-term gas trading hubs offers a more accurate reflection of the supply and demand fundamentals of the gas market. In effect, the underlying commodity of gas becomes gas itself.

The issue is most relevant to the European market because it is a vast net importer, with indigenous reserves in the north of the continent unable to satiate growing demand. As a result, countries across the continent have slowly broken down the traditional oil-linked model.

A number of court rulings have deemed the oil price link to be flawed, resulting in consuming nations being fundamentally overcharged by exporting countries. Last year, Italy-based energy utility Edison won a QAR2.2 billion discount from Qatar’s RasGas after an arbitration court ruled that the oil-indexation model was economically unsustainable for the purchaser.

With the ever-unpredictable Iran now at the helm of the GECF, however, its Gulf neighbour Qatar could find itself with an unexpected ally – and one that is not afraid to challenge Western countries – as the oil indexation debate continues.

Iranian Oil Minister Bijan Namdar Zanganeh attends the 15th ministerial meeting of Gas Exporting Countries Forum in Tehran, Iran in November with Qatar’s Minister of Industry and Energy HE Saleh Mohammed Al Sada in the background. (Image Corbis)

40

4 20

2

0

0 2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

US natural gas (USD/million metric British thermal units) Brent crude oil (USD/barrel) The graph indicates why gas exporters would favour long-term contracts linked to oil prices as opposed to gas hubs, with oil pushing steadily higher (EIA/index mundi)

Sustainable energy

An area half of Qatar could power GCC The electricity demand of the Gulf Cooperation Council (GCC) could be met if just 0.2 percent of the region’s land were covered by solar panels, according to figures quoted prior to the Doha Carbon and Energy Forum (DCEF).

The estimate – which could theoretically see the entire GCC powered by solar panels covering half the Qatari peninsula – is based on the region’s annual average

global solar radiation. This is a measure of the raw power available to photovoltaic cells, which across the GCC stands around one-third greater than the level deemed necessary to make solar power development economically viable.

The DCEF, which took place in Doha over three days in mid-November, will result in a report and a series of recommendations

0.2%

The area of land that needs to be covered by solar panels in the GCC to meet the region’s electricity needs.

sectors | energy & sustainability

The Doha Gas production Carbon ‘Underperforming’ global Energy Forum projects bolster Qatar LNG will provide key feedback on sustainable energy. covering four topics key in the regional energy and sustainability sectors: solar power, carbon capture and storage, climate change and energy efficiency.

Expert groups reviewed the topics separately, each from the angles of research and development, policy frameworks, and industrial applications. The four groups have since reconvened and findings and conclusions will be presented.

“First, the forum advances knowledge in the fields with a particular focus on Qatar and the region,” DCEF steering committee chair and Qatar Petroleum environmental chief Saif Al Naimi said, “Second, by staying connected, we are creating a local, regional and international network of experts that will build selfsustaining momentum.”

In a bid to create additional renewable energy, Kahraama, Qatar’s state-run electricity and water company in late November announced plans to install solar panels atop water reservoirs across the entire peninsula.

Doha Carbon Energy Forum steering committee chair Saif Al Naimi addresses the forum last month.

36 | The Edge

A Bank of America Merrill Lynch, research note indicates that growth in global gas production will be marginal in 2014, which is good news for Qatar.

New and existing liquefied natural gas (LNG) production projects in countries such as Angola, Algeria and Nigeria have been underperforming, according to a Bank of America Merrill Lynch research note published in mid-November.

However, the forecast is a boon for Qatar, at least in the short term, which will be in a strong economic position as the largest supplier of LNG to the global market.

According to the note, major Australian projects are expected in the second half of next year, but there will be “a dearth of new liquefaction projects coming online until 2015”.

The news followed a longer-term warning from top international research firm IHS Global Insight, which said future growth across the economies of the Middle East may depend on how soon the energy exporters of the Gulf Cooperation Council (GCC) can “diversify and embrace Asia”.

A warning was included in the firm’s latest research report Should Middle East pivot to Asia for big trade and energy growth? unveiled at the ADIPEC 2013 oil and gas conference in Abu Dhabi, United Arab Emirates, on November 10.

The study said more than QAR3.6 trillion worth of investment must be channelled into the Middle East and North Africa (MENA) region to meet demand for gas and electricity by 2030, adding the GCC countries would demand the majority of this, because the six nation bloc is, collectively, on the verge of accounting for more than half of the MENA region’s economic growth.

“Leaders in the region want to keep the oil and gas flowing, keep the lights on and

their economies growing,” said IHS Energy director Leila Benali, adding, “Their ability to make these vital investments depends on their ability to... adapt to global energy revolutions.”

These include global developments such as the unconventional hydrocarbon revolution in the United States, which is on the way to transforming North America into a net energy resource exporter – an unthinkable shift just a decade ago. This change in supply-side fundamentals is certain, to some extent, to create a more challenging market for net exporters of oil and gas exporting nations, including Qatar.

This, IHS stated, is why the region must stake a claim to the bull markets of the East, “The Middle East has looked to Asia in search of economic growth,” said Bryan Plamondon, senior economist with IHS. “The energy-thirsty economies of China and India have become key trade partners for the GCC and wider Middle East.”

QAR

3.6

trillion

The amount of investment that must be channelled into the MENA region to meet demand for gas and electricity by 2030.

Contents: Qatar’s contractor dilemma 37. Qatar attracts heavy equipment manufacturers 38. Qatar’s construction industry adopts smart AV systems 39.

real estate & construction

Contracting companies from across the world are currently working on various construction projects in Qatar as the country prepares for the 2022 World Cup and adheres to the National Vision 2030. (Image Corbis)

Qatar’s contractor dilemma With its thriving construction industry, Qatar offers an attractive marketplace for contractors across the world.

But with opportunities also come challenges. The Edge’s deputy editor Farwa Zahra looks at some of these challenges and the proposed improvements that can work in favour of both Qatar and the foreign contractors.

W

ith Qatar’s construction sector experiencing a period of unprecedented growth, contractors from all over the world have

been bidding on major construction and infrastructure projects. “What sets Qatar apart is the clear timeline and need for the delivery of major infrastructure projects ahead of the 2022 World Cup and its 2030 vision,” Richard Ward, partner, and Nick Pinder, associate in the construction and engineering department at international law firm Eversheds LLP, told The Edge. The experts at Eversheds further expect “a new energy surrounding the projects in Doha after the summer break”.

Considering the pace of growth in the sector, demand for concrete in Qatar is also expected to reach at least 100 million cubic metres in the next eight years, said Khaled Awad, chairman of Advanced Construction

and Technology Services at the Future Concrete conference in November. While the construction boom makes Qatar a lucrative market for contractors, there is also a set of challenges facing these engineering companies.

The Qatar Contractors Forum 2013, held earlier in October, raised the issue of unbalanced contract conditions for companies working on Qatar’s construction projects. The conditions, according to the forum’s consensus, are tilted to favour project owners.

Speaking with The Edge, Ahmed Fouad, head of planning at Consolidated Contractors Company in Qatar, explained that contractors are often obliged to endorse the designs, The Edge | 37

sectors | real estate & construction

which they may not find most appropriate considering the nature of the project.

Similarly, completion time is another issue.

“In some contracts where deadlines must be met, for instance in the case of stadiums, it is a ‘No Claims Bases’ contract in which contractors have to sign that they will not submit an extension of time claim.” Stated differently, the contractors cannot extend the completion date of the project regardless of any hindrance that had caused delay.

The risk factor, hence, increases on the contractors’ side. Commenting on the risk split of a project, experts at Eversheds said, “In any market, contractors will seek to improve the risk profile they face when contracting. Generally speaking, Eversheds sees contractors pushing for a greater discussion around and analysis of project risks with a view to the informed allocation of such risks for the benefit of all parties.”

Language of some contract conditions is an area that, according to Fouad, needs special attention, “First thing is having a clear definition of works and having no ambiguity in the clauses, because such clauses are sometimes used by the clients against the contractor.”

Ward and Pinder are of the view that the “existence of a system for the quick

and cost-effective resolution of disputes as envisaged by the Qatar International Court and Dispute Resolution Centre’s Q-Construct would be welcomed by contractors.” Such a system, according to them, can unlock interim payments and mitigate the risk of not being entitled to suspend work in the event of non-payment.

According to the experts at Eversheds, “Contractors are attracted to Qatar because it is investing heavily in construction and engineering projects at a time when many other jurisdictions are scaling back their investment plans.” However, an improvement in the contracting conditions can invite more competition and better standards to the market.

Perhaps, what seemingly appears in favour of the project owners can also harm them in the long term. Fouad explained the future prospects of Qatar’s project owners in case of unbalanced contract conditions, “It will increase the cost of projects. The risk associated with the current contracts is high which increases the bid value.

Balanced contracts will lead to lower bids which will eventually reflect as saving on the clients’ budgets.”

To successfully deliver the 2022 World Cup, Qatar needs to continue outsourcing

its construction work, and making the legal conditions more encouraging for the contractors will ultimately work in favour of the country.

“Balanced contracts will lead to lower bids which will eventually reflect as saving on the clients’ budgets.”

– Ahmed Fouad, head of planning, CCC.

Heavy machinery

Qatar attracts heavy equipment manufacturers

Bulldozers operate at a construction site in Doha.

Qatar’s market for heavy equipment is being penetrated by international manufacturers. (Image Reuters/Arabian Eye)

The heavy equipment market in Qatar is well established as many global companies have penetrated the market, says an industry player.

Qatar’s construction is expected to grow at a rate of 10.1 percent in 38 | The Edge

2014, according to Business Monitor International’s Qatar Infrastructure Report Q4 2013. Another study compiled

by Euler Hermes Economic Research suggests that the country plans to invest more than USD200 billion (QAR728 billion) in construction and infrastructure projects by 2022.

With massive projects recently being awarded, the heavy machinery manufacturers from around the world know that the construction boom in Qatar is here to stay. “Right now, everybody is concentrating on Qatar and many construction and renting companies have already shipped a lot of equipment,” said German heavy machinery manufacturer Sennebogen’s head of sales, Andreas Geier, in an interview with The Edge. While the limited capacity of Doha port may be causing delays in timely deliveries of construction materials, no such issue exists

for the heavy equipment manufacturers, according to Geier.

Although the rise of construction projects has been a recent phenomenon, Geier finds it not just lucrative but also developed for the heavy equipment manufacturers. “The heavy equipment market is well established. All manufacturers are there already [to] penetrate the market from outside,” he said believing the trend has made Qatar a competitive market for manufacturers.

In Qatar, Sennebogen has delivered heavy-duty crawler cranes for foundation and port construction, as well as several mobile telescopic cranes, rough terrain cranes, truck-mounted and yard cranes.

Speaking of his experience in the Gulf, Geier said that here the “technical details are discussed very fast and straight. Price negotiations need much more time and final decisions are made very slowly.”

real estate & construction | sectors

“Many AV technologies were introduced in Qatar before appearing in the neighbouring countries.” Zeyad Al Jaidah, Techno Q.

Smart buildings

Qatar’s construction industry adopts smart AV systems The latest audiovisual (AV) technologies are impacting Middle East’s construction in many ways, writes Farwa Zahra The overall AV market in the Middle East is projected to expand at about 15 percent a year from 2012 to 2015, growing from USD1.58 billion (QAR5.7 billion) in 2012 to USD2.38 billion (QAR8.6 billion) by 2015, according to the general manager of InfoCommAsia, Richard Tan. In the Middle East, according to Tan, the AV technology is mostly used in the government, corporate, broadcasting and hospitality sectors. Ali Al Daghistani, senior sales manager for Extron Electronics, Middle East and Africa, believes that signal transmission is largely responsible for this. “New transmission techniques inside buildings replace the existing analogue AV cabling infrastructure. Space-saving fibre optic cables replace dozens of analogue lines,” he told The Edge.

Some of the applications of AV streaming include delivering digital signage across the building, distributing corporate announcements and messages to selected audiences in the building.

The AV technologies in the construction sector in Doha find their applications in commercial buildings, educational institutes, conference venues and office spaces, etcetera.

While the AV technologies should be ideally considered in building projects at their design stage, to allow optimum performance, they can also be incorporated into existing buildings, explained InfoComm’s Tan.

15%

Growth rate of audiovisual market in the Middle East.

Richard Tan, general manager of InfoCommAsia, says that the two things setting the Middle East apart are excellent infrastructure and readiness to accept new technologies.

Growth drivers

The 15 percent growth rate of AV market in the Middle East also reflects certain peculiarities about the region. Tan is of the view that two things set this region apart from many other markets. These, he explained, are “excellent infrastructure, which allows for quick adoption of new technologies many of which rely on good telecommunications infrastructure, and a high degree of affordability and readiness to accept new technologies.”

Zeyad Al Jaidah, managing director of Techno Q, shared a similar sentiment when he told The Edge, “I see these countries catching up very quickly with top-of-the-line AV technologies in most venues,” adding further that universities to hospitals, meeting rooms to impressive auditoriums, are now all equipped with the latest in technologies rivalling their

counterparts in top cities around the world.

Sustainability

The latest AV technologies also provide long-term efficacy. “The AV systems such as digital signage, video conferencing, interactive video walls and meeting room systems are helping businesses save time and money and are increasing their productivity with reduced energy consumption,” said Al Jaidah.

AV in Qatar

In Qatar, the evolution of AV communications in buildings is still in a phase of development.

This makes the market open to future opportunities for AV technology providers and allows space for market growth. “Qatar is somewhat of a technology pioneer in the region. Many AV systems and technologies were introduced in Qatar first before appearing in the other neighbouring countries,” said Al Jaidah, who sees the exploration of new technologies as a growing local trend in Qatar.

GE’s auditorium at Qatar Science and Technology Park houses some of the latest audiovisual facilities, provided by Techno Q.

The Edge | 39

Contents: The IT challenge: Personal devices in the workplace 41 . ictQatar conducts public consultation on “bill shock” 44 .

Northwestern University Qatar hosts Big Data conference 44 .

tech & communications The IT challenge: Personal devices in the workplace The bring-your-own-device to work (BYOD) culture has been a growing concern for IT departments within organisations for a few years now. A recent study by Cisco on ICT security in the Middle East revealed that as much as 65 percent of employees are putting their firms at risk by not understanding the security implications of using personal devices to access corporate data. by Shehan Mashood

T

he pervasiveness of mobile devices in the workplace is widespread.

Earlier in the year, it was estimated

by IDG Services that over a billion devices would be in use by the end of this year in workplaces around the world, a 15fold increase from 2009. Generally, high smartphone and mobile device penetration in Qatar is forcing companies to implement policies and technologies that will allow for the use of personal devices but still hold some control over the security of corporate data.

Allen Mitchell, senior technical account manager, MENA, at CommVault Systems, a data management company, said mobile workers in Qatar are now transforming the modern working environment. Mobile technologies not only bring flexibility into their working day but improve productivity levels overall, he added.

“The challenge for the IT department, therefore, lies in its ability to protect the increasing amounts of data that is created by users outside of the enterprise whilst still meeting the demand for a mobile lifestyle,” said Mitchell. A global survey by network The Edge | 41

sectors | technology & communications

security company Fortinet conducted in October among Generation Y employees – 20– to 29-year olds – showed that 45 percent found a BYOD policy empowering, but 51 percent said they would contravene any policy on banning the use of personal devices at work or for work purposes.

Telecom companies have seen the potential opportunities to offer services around the increase of mobile device usage in workplaces. Most recently, Vodafone Qatar announced that it would be offering a Secure Device Management service to help businesses better protect their company data.

The system will enable IT departments to remotely manage all smartphones and tablets within their network through a web console. If a personal mobile device of an employee is lost, it can be remotely locked and wiped if stolen. The GPS locator on a mobile device can also be used to track any device. Vodafone’s security platform also has a feature that encrypts emails sent between the device and the corporate network for added protection of confidential company information. “The challenge for the IT manager is how to manage these devices and protect the corporate network and corporate data, particularly when the devices may be different, use different operating systems and may not even belong to the company,” stated Vodafone Qatar. Vodafone Qatar confirmed to The Edge that the service would be able to manage devices provided both by the company and those owned by the employee. It will also be able to manage devices not subscribed to the Vodafone network, revealed the statement.

CORPORATE POLICIES vs. PERSONAL DEVICES A global survey of Generation Y employees (20 to 29 years)

70% Emerging trend of ‘Bring-your-own-cloud’ The younger generation is at odds with corporate IT policies

51%

Would disregard a policy banning use of personal devices

Emerging trends

The Fortinet global study, which focused on the opinions of younger employees, showed the widespread use of cloud services for storing sensitive corporate data as an emerging threat to organisational security.

The report stated that 70 percent of those surveyed used cloud accounts for work purposes, with 12 percent saying they used it to store passwords; 33 percent said they stored customer data and perhaps most worryingly, 14 percent said they would not tell employers if a personal device used for work purposes had been compromised.

Other possible future trends hinted at in the study include the introduction of wearable technology in the workplace such as smart watches or the much-talked-about Google Glass. However, it is yet to be seen if such devices will become the next challenge for organisations to manage.

42 | The Edge

Use personal cloud storage for work purposes (like DropBox)

36% would continue to use them despite IT policies

12% Store passwords in these accounts

42% increase from figure last year

22%

Store critical private documents, contracts and business plans

Source: The Fortinet Internet Security Census October 2013.

sectors | technology & communications

Regulations

ictQATAR conducts public consultation on ‘bill shock’

Last month, the Ministry of Information Communication and Technology (ictQATAR), opened for public consultation, a proposal to force service providers to apply customer credit limits in an attempt to prevent customer ‘bill shock’.

According to a statement from ictQATAR, the consultation comes after receiving numerous complaints regarding unexpected bills and a lack of notice to users on credit allowance status. In the future, service providers could be required to notify customers of their credit allowance before their credit limit expires.

They would also not be able to levy additional charges exceeding a customer’s credit limit without their express consent.

The statement further revealed that customers were often unaware of the charging arrangements and how charges are accrued, particularly in the case of roaming services leading to bills that far exceeded the credit limit stated in the contract. This could be the latest in a line of interventions by ictQATAR on behalf of customers. In October 2013, the regulatory authority released a document outlining the rules and processes for approval of retail tariffs for service providers. In its Retail Tariff Instruction Consultation Response, the current monopoly and duopoly in the telecoms market warranted regulatory intervention, stated ictQATAR. “We refer here to the European situation, where a multitude of service providers are active and hence nearly no retail tariff regulation exists anymore. Qatar is far from such a competitive setting and hence the lifting of regulatory obligations would be wholly inappropriate and indeed damaging to the marketplace leading to potential consumer detriment.”

The regulatory authority is also expected to release a customer protection policy this month that should aid in monitoring and enforcing compliance with the rules for service providers.

“Qatar is far from a competitive setting... lifting of regulatory obligations would be damaging to the marketplace.”

– ictQATAR.

Communications

Northwestern University Qatar hosts Big Data conference

Northwestern University Qatar (NUQ) recently held a twoday conference in which the implications of Big Data in a broad range of applications were discussed, including the media and communications industry.

Dennis E. Everette, dean and CEO of NUQ said, “The new tools of the digital age not only capture, curate and store but also search, share, transfer, visualise and analyse. All this has enormous implications for everyone, especially those in the field of communications, media and journalism. We are here to gain an understanding of why it 44 | The Edge

Khalifa Saleh Al Haroon, CEO of ILoveQatar spoke about leveraging social metrics to build online audiences.

matters and why we ought to know about it.”

One of the keynote speakers at the event, founder and CEO of ILoveQatar.net (ILQ), Khalifa Saleh Al Haroon talked about building online audiences and revenue using social metrics, drawing from his experience from ILQ and as head of interactive and innovation at Vodafone Qatar.

Haroon highlighted numerous examples of how data analytics could help drive business decisions. Asking online users what colour of the new iPhone they preferred, for example, showed a remarkably accurate – 90 percent – comparison to retail store sales figures. This, he said, could now be used to better help stores stock more units of a product before it was even launched.

He also presented data on the dearth of Arabic content on the web as a significant opportunity for content creators; Arabic content on Vodafone’s YouTube channel received four times as much traffic than videos produced in English, he said. The conference also hosted international speakers such as Martha Stone, CEO of World Newsmedia Network, who discussed various implications of Big Data and the wider societal implications of gathering personal data for both journalism and the public. There is no lack of data in Qatar, and companies that do make use of personal information should do so responsibly and take adequate measures to protect user data, added Haroon.

Contents: Qatar University launches entrepreneurship contest 47 . Role of private insurance in Qatar’s social healthcare 48 .

Legal sector education in Qatar 49 .

healthcare & education

Qatar University’s (QU) College of Business and Economics (CBE) and College of Engineering (CENG) have recently launched the Innovation and Entrepreneurship Contest with the aim of engaging the spirit of entrepreneurship among students.

Qatar University launches entrepreneurship contest

Qatar University’s (QU) College of Business and Economics (CBE) and College of Engineering (CENG) recently launched the Innovation and Entrepreneurship Contest. The aim of the initiative is to engage the spirit of entrepreneurship among students, promote awareness of business ownership and management, and orient them on effective business plan development, said Professor Nitham M. Hindi, dean of CBE to The Edge’s Aparajita Mukherjee.

P

articipating students will be organised into teams comprising up to four members and will compete to develop a unique and innovative business to create a product or render a service in various sectors. These could be in technology, biotechnology, green technologies, health, advanced manufacturing, agriculture, engineering and education.

Information sessions will provide students with details of the competition rules, registration procedures, important dates, training courses and prizes. Additionally, student teams will participate in a series of training sessions to be oriented on how to prepare and present effective business plans.

Announcement of the winners will be made during the Entrepreneurship in Economic Development Forum, a regional

initiative to encourage the spirit of entrepreneurship among young people in Qatar and the Gulf, organised jointly by CBE and Interactive Business Network on February 24 and 25, 2014.

“We are delighted to have this opportunity to get our students more engaged with entrepreneurship and innovation,” Hindi told The Edge. “Qatar’s National Vision 2030 as well as the National Development Strategy calls for entrepreneurship and innovation in the economy. This is one effort from the CBE and the CENG to try and get our students thinking about products, ideas and services.”

Hindi added that in terms of education, the centre of entrepreneurship in the CBE will conduct four different workshops to teach the students how to think innovatively, convert their plan into reality, conduct the finance forecasting, and create business The Edge | 47

sectors | healthcare & education

“Winning students will be given the opportunity to stay in our CBE incubators and receive one-onone assistance.”

– Professor Nitham M. Hindi, Qatar University. planning models, etcetera.

“This is the education aspect,” he said, adding, “The other is really getting them to think about commercialisation, so that the winning students will be given the opportunity to stay in our CBE incubators and, depending on the need of the student, receive one-on-one assistance

Qatar University’s entrepreneurial initiative will enable students to learn how to start their own businesses.

from our incubator managers who will help them write up their business plan and clarify all the different issues related to their project, whether it is management, marketing or finance.” Students have to come up with either a product or a service that, Hindi clarified, may be a new use of an existing product or service.

Health insurance

Role of private insurance in Qatar’s social healthcare The National Health Insurance Company (NHIC) as the sole provider of basic healthcare coverage in Qatar, has some private insurance companies concerned. Acting CEO of NHIC, Dr. Faleh Mohammed Hussain Ali, spoke with The Edge about the impact of the healthcare insurance rollout.

by Shehan Mashood

As reported in The Edge Q-Healthcare in October, the implications for insurance companies will become clearer with the release of details regarding basic cover and other regulations. Nevertheless, private insurance companies have questioned the position of the NHIC as 48 | The Edge

Dr. Faleh Mohammed Hussain Ali tells The Edge he is aware of industry concerns but Qatar’s healthcare must come first.

the sole provider of basic healthcare coverage in Qatar. A senior official from Qatar Insurance Company (QIC) was quoted in a newspaper as saying that “discriminatory policies” would cause losses and an “adverse impact on the quality of medical services”.

QAR

50,000 First prize for the QU Innovation and Entrepreneurship Contest.

Dr. Ali, however, told The Edge that under the National Health Insurance Scheme (NHIS), their first priority is to ensure that people in Qatar have the choice and access to quality healthcare services. As a social health insurance plan, everyone, including patients with preexisting conditions, will have access to public and select private healthcare providers when they are members of the NHIS, said Dr. Ali. This aims to raise the standard and quality of care in the country by guaranteeing a minimum standard of medical coverage for all citizens, residents and visitors in Qatar.

Dr. Ali added, “The scheme will provide a greater impetus for the development of more tailored, private health insurance in the country. By expanding access to providers for all of the population, the healthcare sector itself will be able to develop faster and better than it currently can because the market...will have expanded.”

According to Dr. Ali, this would allow private health insurance companies to provide specific services outside the basic package offered by the NHIS in an

healthcare & education | sectors

expanded market. Experts The Edge has spoken with previously also said that top-up cover on basic insurance could become a tool for companies in recruitment.

Insurance companies were informed from very early on in the structuring of the social health insurance project, said Dr. Ali, and had a representative on the original steering committee in the scheme designing stage of the project.

Dr. Ali acknowledged that the scheme as it currently stands has caused a significant concern for the private insurance companies about their own future. However, he added that the over-riding concern from the government has been to achieve quality universal coverage that works for the people of Qatar.

Lawyering skills

Legal sector education in Qatar Professional legal education in Qatar was the subject of a recent roundtable hosted by the Qatar International Court and Dispute Resolution Centre (QICDRC). Robert Musgrove, CEO of QICDRC explains the purpose of this initiative to The Edge.

QICDRC proposals designed to further develop professional legal education in Qatar were examined in detail at the roundtable, as participants worked towards creating a strategy that suits for Qatar and draws upon best global practice.

Since its formation, the QICDRC’s role has been to both provide specialist dispute resolution services for international businesses, and help set international professional standards for lawyers and judges in Qatar. “Responsibility for ensuring standards of professional legal education in Qatar at the workplace and within educational institutions lies ultimately with the government,” said Musgrove. “The QICDRC’s contribution is to assist the authorities and help shape the strategy for professional legal education in Qatar in two ways. First, consider the different global models of education and training for lawyers and judges to ensure that the Qatari model is in line with international best practice.

“Second, identify, listen to, and report on the views of all stakeholders in Qatar such as universities, legal authorities, local and international law firms, and large Qatari companies which currently employ the majority of Qatari lawyers.”

Musgrove added that having a law degree alone does not make one a lawyer and the QICDRC has observed that students need to acquire basic legal skills before they can begin practising.

The Edge | 49

cover story | fifty issues

Issue 3 (Oct 2009) “Many people find it surprising when I say that the lack of diversity of international films being shown in Qatar is not due to censorship restrictions, it’s because of what is being programmed in the cinemas.”

– Amanda Palmer, executive director, Doha Tribeca Film Festival.

Issue 4 (Nov 2009)

Issue 6 (Jan 2010)

“Why did he and others delude themselves into believing this was a new era?”

Issue 1 (Aug 2009) “While some people call us the mouthpiece of a plethora of radical organisations from Al Qaeda to Hamas and Hezbollah; others call us the mouthpiece of Zionism and American imperialism. When you make everybody angry, then you know you’re doing something right.”

– Hassan Ibrahim, senior producer, Al Jazeera, quoted in the article ‘The Arabian Beacon: Qatar’s Growth into the Bastion of Global Communication’.

Issue 2 (Sep 2009) “Not surprisingly, the events that took place in the global market... have caused the [Qatari] government… to recognise that previous assumptions may need re-examination.”

– Philip Thorpe, chief executive officer (CEO) of Qatar Financial Centre Regulatory Authority on the global financial crisis.

54 | The Edge

– Sir Jon Stuttard, vice chairman of PwC and former mayor of London on the contribution of British prime minister Gordon Brown and other politicians to the global credit crisis.

Issue 5 (Dec 2009)

“No one single operator will be in a position to control a country’s information gateway.”

– Ahmed Mekky, CEO of Gulf Bridge International, the Middle East’s first privately– owned communications operator, on their imminent undersea fibre optic. cable.

“My message to foreign investors is come and invest in Qatar, participate in our socioeconomic development.”

– Ras Laffan Industrial City director Sheikh Khalid bin Khalifa Al Thani on attracting multinational firms to become more involved in energy and dry dock ventures.

Issue 7 (Feb 2010) “We are aware of the problems associated with the absence of public transport lately and we are working really hard to improve it… from the beginning of this year we have begun a five-year plan to upgrade and revamp many of Qatar’s major roads.”

– Ali Abdulla Al Abdulla, director general of Qatar’s Urban Planning and Development Authority.

fifty issues | cover story

Issue 8 (March 2010)

Issue 10 (May 2010)

“We in Qatar did not have a shipping industry.

We had some control over shipping, but it soon became obvious to us that we had a golden opportunity to develop something far more comprehensive.”

“It should not be 100 percent Qatari because we need to ensure the business sector is transferring knowledge and this transfer will not happen unless we have joint ventures with outside parties.”

– Muhammad Ghanim, Nakilat managing director on Qatar’s nascent shipping sector.

– Mohammed Abdul Rahman Al Thani, CEO Enterprise Qatar, on the issue of ownership of Qatari companies.

Issue 9 (April 2010)

“If you take Iran, Iraq, part of India, part of Pakistan and the Gulf Cooperation Council (GCC) itself, more than 200 million people surround us.”

– Qatar Minister of Finance Yousef Hussein Kamal on Qatar’s location as an attraction for foreign investment.

The Edge | 55

cover story | fifty issues

Issue 11 (June 2010) “We are not chasing trophy assets. Harrods offers a number of growth opportunities. It is a good time in the cycle to be buying luxury goods businesses.”

– Ahmad Al Sayed, CEO Qatar Holding on their spate of international acquisitions.

Issue 13 (Aug 2010) “The licensed operators [Qtel and Vodafone] have participated enthusiastically in the dispute resolution.”

– Dr. Hessa Al Jaber, secretary general ictQATAR on the end of the legal battles between Vodafone and Qtel.

Issue 14 (Sep 2010) “Post-harvest losses from mishandling, spoilage and pest infestation are put at 40 percent, this means that almost half of what is produced never reaches the customer.”

– Fahad Al Attiya, Qatar National Food Security Programme on wastage in Qatari produce and the need for diverse imports.

Issue 15 (Oct 2010) “He said, if by tomorrow morning I don’t have a quotation, you will lose the job.”

– Zeyad Al Jaidah, managing director Techno Q on the contract he and partner Abdulla Al Ansari obtained by working through the night which proved to be the turning point for their company.

56 | The Edge

Issue 12 (July 2010) ‘[Women] do not want to be their competitors, we want to be their partner. The nation needs us both.”

– Buthaina Al Ansari, local entrepreneur and champion of female entrepreneurs, encouraging more Qatari women to start their own businesses or to join the workplace alongside men.

Qatar enters the top 20 in the 2009 World Competitiveness Yearbook (WCY), an independent report that ranks countries on their “overall competency to achieve greater prosperity,” according to WCY’s professor Stephane Garelli.

Qatar is the only Arab country to make it to the top 20.

(Issue 1, August 2009)

1

Qatar overtakes Luxembourg for the first time to become the world’s richest country per capita, according to a ranking created by US-based Institute of International Finance.

(Issue4, Nov2009)

766,095 Non-Qataris employed in Qatar’s workforce, according to the IMF. (Issue 6, Jan 2009)

QAR

36 billion

The total reported value of Qatar Holding’s purchase of a stake in Germany’s Porsche and Volkswagen AG in August 2010.

(Issue 2, Sept 2009)

QAR1.8 billion Hassad Food’s investment in agricultural and food companies around the world to help ensure Qatar’s future food security.

(Issue 3, Oct 2009)

2014 The year set for completion of the Qatar-Bahrain Causeway.

(Issue 7, Feb 2010)

16%

The conservative 2010 GDP growth expected in Qatar.

(Issue 8, Mar 2010)

20% The percentage of US sovereign debt of total GDP. (Issue 9, Apr 2010)

1000 2022

14

fifty issues | cover story

Attendees at the first World Innovation Summit for Education (WISE) in Qatar.

(Issue 5, Dec 2009)

464,962 Number of Vodafone Qatar customers as of Q1 2010.

(Issue10,May2010)

1

Qatar, the only country in the world to show an increase in attracting foreign direct investment in 2009, according to the World Investment Report.

(Issue13, Aug 2010)

402

Number of cases of smoking on Qatar Airways in 2009.

(Issue11,Jun2010)

Along with 2018, the year for which Qatar aims its bid to host the FIFA World Cup. (Issue 12, July 2010)

20% The target set for private sector companies to comply with Qatarisation.

(Issue 15, Oct 2010)

18

The number of banks in Qatar, which analysts warn is over banked.

(Issue 14, Sep 2010) The Edge | 57

cover story | fifty issues

Issue 16 (Nov 2010) “When we applied for...company registration, they struggled to categorise us. Are we a training type of business? Are we a consultancy? So that was the challenge, to create an understanding about what team building is.”

– Qatari entrepreneur Maryam Al Bashri on starting up an innovative business in Qatar.

Issue 18 (Jan 2011)

Issue 17 (Dec 2010)

Issue 19 (Feb 2011)

“Grahame made a difference to the lives of everyone he touched.

He was a great CEO, coach, mentor and friend. We will sorely miss his inspiration and vision, his passion and energy, and his love for all the people he worked with.”

“Initially it was part of Qatar’s aggressive diversity programme to develop the international financial business centre and to have a fully independent world-class court, to protect the interests of foreign investors.”

– A statement from Vodafone Qatar following the untimely passing of its popular CEO, New Zealander Grahame Maher.

– QICDR CEO Robert Musgrove on Qatar’s first Civil and Commercial Court.

“As soon as you say Qatarisation is about placing somebody, you create animosity within the organisation.

You split the organisation in two, the privileged ones who are looked after by the Qataris, and the expatriates.”

– Qatari human resources expert Ali Al Humaidi of Almaras Consultancy.

Issue 20 (March 2011) “People were only looking for highly productive reservoirs… people did not think [Al Shaheen] would be able to produce.”

– Lewis Affleck, MD Maersk Oil on how recent horizontal well technology made oil fields such as Qatar’s Al Shaheen highly lucrative prospects.

Issue 21 (April 2011) “All you needed was a web browser on a cheap PC.” – Mohamed Takriti, co-founder and CEO of iHorizons, on how he saw the Internet’s early potential.

Issue 22 (May 2011) “We would not have been able to… shape the broad-based international coalition that includes not only our NATO members but also includes Arab States, without the Emir’s leadership. He is motivated by the belief that the Libyan people should have the rights and freedoms of all people.”

– US President Barack Obama following a historic first meeting with then-Qatar Emir HH the Father Sheik Hamad bin Khalifa Al Thani at the White House in April 2011.

58 | The Edge

Issue 23 (June 2011) “I think any time half the population does not have access to...education, that is a very bad thing.”

– Dean Mark H. Weichold of Texas A&M University in Qatar, on female education.

fifty issues | cover story

Issue 24 (July 2011)

“Millions of parents living overseas have no choice but to teach their kids Arabic at home, but they don’t know where to start...or how to progress.”

– Qatar-based entrepreneur Jinanne Tabra on what inspired araboh.com, an e-commerce portal specialising in Arabic learning tools, known as the ‘Arabic Amazon’.

Issue 25 (Aug/Sep 2011)

“In a country like Qatar, you cannot cater to one single community and survive.”

– Mohamed Althaf, regional director of LuLu Hypermarkets on how to approach large-scale retail in Qatar.

The Edge | 59

cover story | fifty issues

Issue 26 (Oct 2011) “[The] Qatar Sustainability Assessment System is the only system, worldwide which integrates culture and heritage within green buildings.”

– Qatar’s Dr. Youssef Al Horr, founder and chairman of the Gulf Organisation for Research & Development.

Issue 29 (Jan 2012) “Although sometimes termed as an emerging market, Qatar is leapfrogging other nations in... technology penetration.”

– Rashid Al Naimi, CEO of Qatar IT initiative MEEZA, which in 2011 won its second regional award for cloud computing.

Issue 32 (April 2012) “We would like nothing more than to see that kind of designation, because it seems to be that when you are a frontier [market] investment is more spotty, but when you make it into emerging market status there is more legitimacy.”

Issue 27 (Nov 2011)

Issue 28 (Dec 2011)

“Some companies think that having an ISO certification is just a prestige but this should not be the case, rather ISO certification should be seen as an integral tool to help companies progress.”

“Many countries across the Middle East have renewable freshwater sources [of] less than 1000 cubic metres, per person, per year – a level that defines ‘water scarcity’.”

– Khalid Al Sayed, editor in chief of ISO certified Qatari newspaper, The Peninsula.

– Tom Freyberg, conference director, WaterWorld Middle East Qatar.

Issue 30 (Feb 2012)

Issue 31 (March 2012)

“There is a vision that His Highness The Emir [Hamad bin Khalifa Al Thani] has had for the past 15 years, which is to convince private businesses to become public businesses, and the main reason for that is for other Qataris to become shareholders and to... provide jobs for Qataris.”

– Sheikh Mohamed bin Faisal Al Thani, vice chairman of Aamal on why his firm listed on the Qatar Exchange.

Issue 33 (May 2012)

- Karen B. Peetz, recently voted the ‘most powerful woman in banking’ by American Banker, discussing MSCI market upgrades for Qatar and the United Arab Emirates.

Issue 34 (June 2012) “Making money is good in the short term, but you have to make sure your business is also adding value. You have to create a niche for yourself. Somewhere other competitors or newcomers cannot come into your zone of comfort.”

– Ashraf Abu Issa, Abu Issa Holding chairman and CEO and 2011 EY Qatar Entrepreneur of the Year offers his perspective on starting and running businesses in Qatar.

60 | The Edge

“Consolidation is going to be crucial. It is inevitable and it is going to be market-driven.”

– HSBC Qatar CEO Abdul Hakeem Mostafawi discusses Qatari banking.

“In Qatar, most people have an opportunity to find some form of vacancy, especially with Qatarisation. So if I want to go and take that chance, why not?”

– Entrepreneur Organization Qatar chapter head Khalifa Al Misnad argues that starting SMEs should be attractive to Qataris because most have guaranteed jobs to fall back on.

fifty issues | cover story

The maximum fine for violation of Qatar’s new e-commerce laws.

(Issue 16, Nov 2010)

77 million

28

The number of protest-fuelled days in late 2010 between Tunisian fruit seller Mohammed Bouazazi setting himself alight in protest against his treatment by authorities, to the stepping down of the country’s ruler, Zine Al Abidine Ben Ali. (Issue21,Apr2011)

291

Production in tonnes of liquid natural gas, a target set and met by HH the Father Emir Sheikh Hamad bin Khalifa Al Thani.

(Issue 17, Dec 2010)

Cost per square metre of Qatar’s retail space in 2010, among the highest in the MENA region.

(Issue20, Mar2011)

QAR109 billion

The value of the retail franchising industry in the Middle East.

(Issue22,May2011)

QAR14.5 billion

The value of contracts secured by Singaporean firms in Qatar since 2001.

(Issue23,Jun2011)

Fires in Qatar’s homes, businesses and vehicles in the first five months of 2010, 250 with unknown causes.

(Issue 18, Jan 2011)

2.8 million Tickets Qatar could sell at the 2022 World Cup, according to the bid document.

(Issue 19, Feb 2011)

5

The number of years a shirt

sponsorship deal between Qatar Foundation and Barcelona football club, valued at QAR777 million, was said to be valid.

(Issue24,Jul2011)

27

The age at which Steve Jobs, who passed away in October 2011, saw his first Hewlett Packard desktop computer in 1967.

(Issue27,Nov2011)

QAR4 billion

QAR300,000

QAR2400

13, 500

square metres

The floor space of the newly opened 51 East Lagoona Mall in Doha.

(Issue28,Dec2011)

142% The mobile subscription rate in Qatar, as of February 2011, according to ictQATAR. (Issue 31, Mar 2012)

QAR73 billion

The total value of five of Qatar’s biggest projects given to MEED Quality Projects Awards in 2011, (Issue32,Apr2012)

QAR 10, 000 The minimum amount or blocks of value that Qatar Exchange’s recently released treasury bills or T-bills can be bought or sold.

(Issue 29, Jan 2012)

The Q1 results of Industries Qatar, which controls much of the country’s petrochemical and metal production capacity.

(Issue 25, Aug/ Sep 2011)

QAR36 billion The total financing value of the Barzan Gas Project with QNB Capital, the largest deal of its kind in the world during 2011.

(Issue30,Feb2012)

20

Qatar is deemed the 20th safest investment destination in the world and tops the MENA region, according to Euromoney.

(Issue33,May2012)

19 Tragic deaths in the fire at Doha’s Villaggio mall.

(Issue34,Jun2012)

1

QFC is voted the leading financial centre in the Middle East.

(Issue26,Oct2011) The Edge | 61

cover story | fifty issues

Issue 35 (Jul 2012) “Qatar is currently a blank canvas where you can be as creative as you want to be. In other places in the world between the architects’ concept that is designed, by the time he or she is finished, it can take 10 to 15 years. In Qatar, in a year and a half you can see a finished building, so your dreams come true a lot faster here.”

– Preeminent and award-winning Qatari architect Ibrahim Jaidah of the Arab Engineering Bureau.

Issue 37 (Oct 2012) “Qatar can play a leading role in the region and at world level in this field. Clinical applications are growing very fast and robot assisted surgery could become the standard to perform certain types of surgeries.”

– Dr. Abdullah Al Ansari, chairman of surgery at Hamad Medical Corporation and clinical director of Qatar Robotics Surgery Centre.

Issue 39 (Dec 2012)

Issue 38 (Nov 2012) “I do acknowledge that Qatar has higher than average emission rates… and we are working very closely with all stakeholders through QNRS to create research programmes that will help improve these processes.”

– Qatar Energy and Environment Research Institute, executive director Dr. Rabi Mohtar, on Qatar’s rate of CO2 emissions, per capita being among the highest in the world.

“Talent and retention of talent is a challenge. In the US and Europe, you can just pick up qualified people... But in general, it is much more difficult here.”

- Salam International CEO Issa Abu Issa on finding good staff in Qatar.

Issue 36 (Sept 2012) “There is always talk about competition between Doha, Dubai and Abu Dhabi filmmaking, but when we meet now we feel that we just want to partner with them.”

– Khalid Al Jaber, Innovation Technologies, entrepreneur and promoter of Qatari filmmaking on rivalry in the Arab movie industry.

62 | The Edge

fifty issues | cover story

Issue 40 (Jan 2013) “We are extremely disappointed by the poor performance of [Linder Depa Interiors]. We have been badly affected as an airline with the delay impacting Qatar Airways expansion plans… in addition to revenue losses to the airline and its subsidiaries.”

– Qatar Airways CEO Akbar Al Baker commenting on the decision to sue German–Emirati interior decorating firm LDI for allegedly delaying the completion of New Doha International Airport (Hamad International) lounges in December 2012.

Issue 41 (Feb 2013) “Unlike Qatar’s evident and visible commitment to such cluster economies as energy, health and medicine, education, sports, culture, tourism, meetings, it is more difficult to see a transparent vision for media industries. It is assumed however that the term ‘knowledge-based’ economy does embrace [media].”

– Everette E. Dennis, dean of Northwestern University in Qatar.

Issue 42 (March 2013) “You had the athletes and the sports people, and then you had the corporate and business people. That mix inbetween was kind of missing, which is the sport management.”

– Qatar national football team managing director Mansoor Al Ansari explains that after winning the 2022 World Cup bid, Qatar football and sport experienced a management paradigm shift.

Issue 43 (April 2013) “Throwing money at a problem is not the answer and Qatar appears to spend wisely, consulting world leaders in road safety.”

– John Kipling, safety consultant, on how Qatar is trying to improve its road death rate.

Issue 45 (June 2013) “People in Qatar have started realising that sharing information is important, because if you want to be part of this growing economy, you have to respond to the demands of the globalising economy.”

– Jamal Fakhro, KPMG managing partner Qatar and the first Arab national elected to their international board.

Issue 44 (May 2013) “We need agile start-ups, we need competition to come so that the quality of services and products goes up. We need people working on different entrepreneurial projects and don’t want to see the same company working on everything.”

– Saleh Al Khulaifi, manager of Bedaya Center, started in Qatar in 2011 to support SMEs. The Edge | 63

cover story | fifty issues

Issue 47 (Sep 2013)

Issue 46 (July-Aug 2013) “There is much for the new Emir and his new team to ponder at home, no doubt the age of plenty in Doha will continue, but careful management is needed to navigate the future to make sure that prosperity lasts.”

– Michael Stephens, researcher at Royal United Services Institute in Qatar and author of the cover feature on the country’s leadership change - ‘Qatar: a new era’.

Issue 48 (Oct 2013)

“The money isn’t everywhere, it is controlled by a select few and they don’t necessarily want to take risks.”

– Khalifa Saleh Al Haroon, CEO ILQ on why, despite its wealth, e-commerce and digital start-ups in Qatar face funding challenges.

“The idea of connected cars (or car-to-car and car-to-infrastructure) concept is to prevent traffic accidents from occurring by allowing cars to communicate with other cars or with infrastructure.”

– Abdulaziz Al Khal, director of Masarak, a Qatari IT initiative created with the aim of using technology to make Qatar’s roads safer.

Issue 49 (Nov 2013) “I don’t think there are many jobs or countries in the world where people like you and I have got the opportunity to be part of this extraordinary change… this real sense of pride about the expectation in Qatar is really high.”

– Kyle Whitehill, new CEO of Vodafone Qatar.

Issue 50 (Dec 2013) “In the meantime, uncertainty and unfamiliarity in dispute resolution will feature as a key risk for international companies seeking to do business in Qatar.”

– Mel J, Sims, country manager, DLA Piper Qatar on the challenges companies still face as Qatar strives to improve its legal system.

64 | The Edge

Qatar’s consumer confidence index score, according to Mastercard, the highest in the region and above the Gulf average of 85.7.

(Issue35, Jul/Aug 2012)

1.4

Gigawatts, the amount of power the new Qatar Solar Technologies solar energy facility will generate, the same capacity as a nuclear reactor.

(Issue36,Sep2012)

USD21

28% 60% The expected increase in the Qatari government’s budget spending in the fiscal year.

(Issue38,Nov2012)

1.25 million

The number of expatriate workers in Qatar in 2012, according to Qatar Statistics Authority.

(Issue44,May2013)

Growth posted

by Qatar’s Commercial Bank in first nine months of 2012.

(Issue 39, Dec 2012)

1

million

The minimum donation allowed on SME microlending platform Kiva Arab Youth, a regional initiative by Qatar’s Silatech.

(Issue37,Oct2012)

The percentage of food selfsufficiency Qatar is aiming for in the future, up from the current average of 10 percent.

(Issue41,Feb2013)

6.6 364

19.2 %

93.6

fifty issues | cover story

The maximum number of migrant workers that could be required for 2022 World Cup construction.

(Issue40,Jan2013)

685, 000 Total stock in m2 of retail floor space expected in Qatar by the end of 2013.

(Issue42,Mar2013)

220,000 The predicted number of car accidents in Qatar annually by 2015.

(Issue43,Apr2013)

8

QAR364 million stolen by hackers from two Middle Eastern banks in H1 2012.

(Issue45, June 2013)

The number of stadiums Qatar intends to build for the 2022 World Cup, down from the original 12.

(Issue 46, July/ Aug 2013)

QAR 746.2 billion

Estimated infrastructure spend in Qatar 2013 to 2018.

(Issue48,Oct2013)

The decline of Qatar’s FDI outflows to other countries in 2012.

(Issue 47, September 2013)

82.6% 200,000 bpd

Percentage of total advertising spend going to Qatari newspapers.

(Issue49,Nov2013)

(Issue 50, December 2013) The combined amount of gas-to-liquids (GTL) in barrels per day that Malaysia, South Africa and Qatar, the world’s only manufacturers of GTL, produce.

The Edge | 65

PRESER

OLD

RVING DOHA Should the oldest parts of Qatar’s capital be considered for World Heritage Site status?

by Tim Makower

feature story | national heritage

When Qatar was first suggested as a venue for the 2022 World Cup, there must have been many sceptics. To suggest that Qatar might give consideration to making an application to UNESCO for World Heritage status, for the urban fabric that is the neighbourhoods of Old Doha, will no doubt similarly be met with scepticism and not without reason. This article simply asks the question: Could and should Old Doha be considered a candidate for World Heritage status? Predictably, the answer is not a simple one. by Tim Makower

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here are 10 or more neighbourhoods in central Doha today that have pockets of original urban fabric, dating back half a century or more, from the time when the town of Doha, built on fishing and pearling, was just beginning to become the modern city it is today. Some of these areas comprise entire urban quarters, rundown but still alive. Others are just a part of a street, or a small cluster of buildings.

These are the remaining pieces of a precious heirloom, calling out to be repaired rather than replaced. Like a treasured patchwork, it can be handed down from one generation of a family to the next and not be thrown away. It is an inheritance – the literal meaning of the word ‘heritage’. Stretching over an area of several kilometres, the historic fabric of Doha is surprisingly extensive and, by comparison with other oil-rich Gulf states, remarkably intact. There is a paradox in the paths that oil-rich cities have taken, which is to normalise ‘disposable architecture’. Traditional buildings were constructed of rough rocks and render, and it was common to replace rather than repair. The paradox is that in following this natural instinct, fast-changing cities have allowed their own identity to be all but destroyed.

Urban decay

There are few who acknowledge the unique value of the remaining urban fabric of Doha from the 1940s, 1950s and 1960s, both culturally and economically. Those who say that these buildings are very ordinary – they are not of exceptional quality and are not worth saving – are missing the point. They are ordinary buildings, yes, but together they make up an extraordinary piece of city. Before them was just sand, so they are a direct and tangible link to the past.

If one walks in West Bay through the glass and metal towerblocks, or down a street of bland new concrete blocks in the old city centre, you could be anywhere in the world. The sense of a lack of character is both disorientating and disheartening.

In the latter case, these are the bland streets, which not long ago were part of Qatar’s distinctive mix of new and old. There is an increasingly small number of streets of Old Doha that display a characterful urban collage of traditional buildings on the one hand – low masonry courtyard houses with thick walls and soft modelled forms – and the early modern concrete structures on the other; slightly taller buildings with Doha Deco features such as cantilevered balconies and projecting mouldings to shade windows. Together they form the roots of Qatar’s vernacular, which is so severely under threat; not just in the parts of the city close to Souk Waqif and Msheireb such as Al Asmakh and Najada, but further afield, from Abdul Azeez to Al Ghanem and from Najma to Al Hitmi.

In an area of character-free new blocks, to have one street frontage, or even a single building from Doha’s early past is like spice in a stew. Without the spice, the stew does not taste so good. Firstly, Old Doha was a collage of old and new in the early days; that is its nature. A new neighbourhood lucky enough to contain a pocket of historic urban fabric, will have a unique identity, differentiating it from other areas.

Looking forward, if older and smaller buildings can be collaged among newer structures, a thrilling new language of Qatari design could emerge. This surely is living heritage – “al turath al hai” – not something frozen in the past, but growing far into the future.

Intrinsic value Old Doha is a treasure trove of Qatari architectural history and could and should be considered as a candidate for World Heritage Site status, writes the author.

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There is nothing new about the notion that heritage-led regeneration is not only economically viable but is also a boon for property values and for the tourist brand of a city. We only have to look at the Marais in Paris, London’s Hoxton or Bankside

national heritage | feature story

and Beijing’s Bei Hai. Or closer to home, at Bahrain, which has achieved World Heritage status, the personal mission of HE Sheikha Mai bint Mohammad Al Khalifa, the Minister of Culture, for many years. In Bahrain, the special narrative on which they built their World Heritage nomination

related to the story of pearling. In Qatar, it would be a very different one; how the city was transformed with the arrival of wealth, first from oil and later from gas.

So what if Qatar was to carry out a study on the viability of a World Heritage application? The questions asked by

It is important to emphasise the viability of Old Doha not just for what it is today but what it could become over the next five to 10 years.

Author Tim Makower’s vision is for the decaying, crumbling and unappreciated parts of Old Doha to be regenerated through thoughtful renovation and greening.

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feature story | national heritage

UNESCO assess whether the proposed site or sites are of “outstanding universal value” and if so, on what basis? There are 10 criteria used by the committee to make its assessment, one or more of which must be met. The first of the criteria is easy to answer: Does the site represent a

masterpiece of human creative genius? No. However, the second criterion offers the clue: does the site “exhibit an important interchange of human values, over a span of time or within a cultural area of the world, on developments in architecture or technology or…town-planning or landscape

Traditionally, it was common to replace rather than repair but in following this natural instinct, fast-changing cities have allowed their own identity to be all but destroyed.

design?” The answer is a simple yes.

Among the oil-rich cities of the Gulf, the historic fabric of Old Doha is unique and untouched, albeit fragmentary, example of how a community and its vernacular architecture changed over a period of a few decades from timeless tradition to fastemerging modernity. Criteria three to five also stresses the importance of historic, narrative-bearing context, of which Old Doha is a prime example.

Although ‘uniqueness’ is not mentioned, several experts in this field who I have spoken to have stressed that there would be little chance of a successful application unless the ‘narrative’ of the site was exceptional, its importance being something of more than just local interest.

In Doha’s case, the ‘dynamic imprint’ bears

The eclectic and neglected growth of areas of Old Doha such as Msheireb offers a potential hidden by their drab and dusty exterior, says the author.

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how the communities of the land and the sea responded to the arrival of oil-wealth. It is still standing, a primary source, living and breathing, albeit in dire need of renewal.

The fact that Doha’s extant historic buildings visibly span the era from precement to post-cement tells the story of how Doha grew from being a town to a city. They hold a narrative – the stories both of families and of a nation – which is calling out to be preserved and enhanced, and to be made available for people locally, regionally and internationally, to learn from and enjoy. To lose it would be a tragedy indeed.

We only have to walk three minutes from Souk Waqif and Msheireb to find examples of what could be argued is one of Qatar’s most important heritage assets. Sikkat Al Ishraq is a crumbling group of fine, and typical, vernacular buildings from the late traditional and early modern periods of Qatar’s architecture. It is a street full of charm and, for anyone who is prepared to explore further in the dust and the heat, it is just the beginning of an extensive network of sikkas and barahas – streets and public spaces – in the area.

Halfway down Sikkat Al Ishraq is the Rathib Trading Estate; a grandly named small local grocery, inserted into the front of a house, its front step spilling over with fresh tomatoes and bags of rice. This reminds us of the fact that the ‘heritage’ of Old Doha is not simply architectural; it is social and economic too. It is a mix of people, activities, buildings and spaces, which has been so important in UNESCO’s assessments of places such as Bahrain in recent years. To quote Richard Hughes, a renowned specialist in urban heritage, “The focus is shifting within the UNESCO committee, away from one-off gems, to a more holistic view of urban landscapes”.

It is important to emphasise that the viability of Old Doha not just for what it is today but what it could become over the next five to 10 years. At Makower Architects, we have been speculating through our London exhibition, sponsored by Qatar Museums Authority, as part of the Qatar UK 2013 Year of Culture, as to how the city fabric of Old Doha might be brought together and revitalised.

A network of public spaces can connect not only one part of Old Doha with another, but Old Doha to West Bay, via the Corniche.

Through urban regeneration, forgotten side streets of Old Doha could become attractive thoroughfares.

A new marketplace

Is there a market for rejuvenated buildings in the densely packed city centre, as opposed to newly built structures with shiny surfaces and ample car parks? I believe so. For my own part, I have given up the staying at the luxury hotels of West Bay and now stay at a cool and very affordable boutique hotel in the centre of Old Doha. It means I can walk to work and enjoy being part of a place of character and memory.

While it might be true that renewal will probably cost more than replacing the old with new, when one factors in the upfront infrastructure costs of megadevelopments such as Msheireb, a low-key, incremental approach may prove to be highly viable and would still be negligible as a percentage of the national budget.

The ‘heritage’ of Old Doha is not simply architectural; it is social and economic too.

And in exchange, the last remnants of the nation’s architectural vernacular would be preserved forever, a legacy for future generations. To conclude, I have never before in my career been involved in a piece of city where there is so much to be gained and at the same time, so much to lose. Even if the goal of World Heritage is not pursued – and there are many reasons why it may not be appropriate – preserving the deep value of Doha’s historic urban fabric should still be considered as a priority.

Tim Makower, founder of Makower Architects, is architectural language advisor of Msheireb Properties and has been the architectural voice of Msheireb for more than five years.

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The h

roa Is mediation a viable alternative to arbitration and litigation in Qatar?

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feature story | legal sector

As an emerging economy develops, the business environment becomes more complex, resulting in a greater occurrence of disputes. Legal experts in Qatar are unanimous that the number of business-related cases coming before Qatar’s courts is only going to increase if concerned parties do not ensure they are entering into clear and binding contracts. However, they also feel that businesses should adopt mediation to settle disputes, rather than arbitration or litigation. by Aparajita Mukherjee

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ne indicator of the efficiency of a country’s legal system is the number of cases pending before its courts and what proportion of cases are delayed.

Statistics reported in The Peninsula in September 2012 revealed that 20 percent of the 86,980 cases filed in Qatar’s courts in 2011 (an increase of 5.4 percent from 2010), were not resolved. The backlog was partly due to a legal system that has not been updated since 1990, during which time the population has quadrupled and the country’s development agenda has changed, and with it the volume of cases.

The newspaper report also claimed a serious and well-known issue in Qatar is that many lawyers and accused rely on tactics to stall cases to draw them out in court for years.

A measure of the time, cost and procedural complexity of resolving a commercial lawsuit between two domestic businesses in 189 countries is offered in Doing Business (a World Bank initiative relating to business regulations). The report ranks Qatar at 93rd, and puts the number

“If you have a world-class court, arbitration centred resolution centre, it provides the confidence for international investment.” – Robert Musgrove, CEO of Qatar International Court and Dispute Resolution Centre (QICDRC). of days taken for dispute resolution at 570, citing 43 processes which disputing parties need to deal with. Contrast that against Norway’s rank at fourth, with 280 days taken for resolution of disputes, and parties having to deal with 34 processes.

Global comparisons can serve as measurables for Qatar. Robert Musgrove, CEO of Qatar International Court and Dispute Resolution Centre (QICDRC), commenting on the gap between Norway

Robert Musgrove, CEO of Qatar International Court and Dispute Resolution Centre (QICDRC) says that one main reason behind setting up the QICDRC was to instill confidence in the minds of international corporate firms to invest in Qatar.

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and Qatar in dispute resolution, says that Doing Business provides a blunt, but nonetheless key indicator on how good law supports good business. “The equation is a simple one,” says Musgrove, “the stronger the rule of law, the better the opportunities for economic growth. Both domestic and international businesses require the confidence that their economic investments are protected and promoted.

This in turn reduces risk and cost.”

Musgrove continues that one main reason behind setting up the QICDRC was to instill confidence in the minds of international corporate firms to invest in Qatar. “If you have a world-class court [and] arbitration centred resolution centre, it provides the confidence for international investment,” he explains.

Mel J. Sims, country managing partner, DLA Piper for Qatar, agrees that international best practices create a streamlined approach to legal processes, which he feels is “necessary to ensure Qatar is not held back and its development continues at pace.” The biggest challenge, Sims adds, is creating trust in the legal processes by encouraging transparency and accessibility and crucially demonstrating a robust and straightforward approach to enforcement of alternative methods of dispute resolution. “In the meantime, uncertainty and unfamiliarity with dispute resolution in Qatar will feature as a key risk

legal sector | feature story

for international companies seeking to do business in Qatar,” he says.

Dr. Minas Khatchadourian, deputy secretary general of the Qatar International Center of Conciliation and Arbitration, (under Qatar Chamber of Commerce and Industry) says that international best practices are developed usually in the Western countries, where the legal system is more developed. “International best practices,” he says, “can set a standard from which we can develop the regional best practices that could suit this country.”

Challenges and issues

Cases that get referred to Qatar’s courts span sectors such as banking and finance, corporate and commercial law, employment and labour, energy, free zones, intellectual property, sports, events, and telecommunications.

The QICDRC, says Musgrove, has been operating since 2010 and has both had cases in the court and dealt with some others through arbitration and mediation.

Mostly related to financial services, the QICDRC, says Musgrove, has dealt with disputes related to insolvency, bank closure and employment.

One issue, agree Doha-based legal professionals, that arises regularly, occurs when advising on disputes related to record keeping, and the documentary evidence provided to support the claims being made.

Danny Rifaat, partner, Al Misnad & Rifaat says, “We have come to learn that a key element for a successful outcome is to possess reliable documentary records for supporting the party’s claim or defence.

Courts and tribunals require that any action, whether to prove liability or the sums owed, need to be supported by documentation, otherwise it is very likely that ones claim or relief sought be dismissed.”

Moreover, as the official language of Qatar, Arabic is the mode of communication in courts, though translators are provided for non-speaking litigants, The Edge asked the local law firms if this is a hindrance to those who do not speak the language. For firms such as Eversheds, having bilingual lawyers solves the issue.

However, for the head of chambers of McNair, Qatar, Khawar Qureshi, the impact of the use of Arabic is significant as words can often have different meanings depending on their context, which is one area of concern for Rifaat too. “Translation of any legal text,” says Rifaat, “is a complex process as it must take into consideration the complexity and shades of meaning

“The mediator is an elderly person, respected for his wisdom.

Disputing parties come to a compromise with the feeling of a win-win situation.”

– Dr. Minas Khatchadourian, QCCI.

of each system and the unique character of each language. It is not uncommon that a translated text does not accurately reflect the original text, which would then disturb the equilibrium of the interest of the parties. It would therefore be advisable that the agreements be drawn up in more than one language (bilingual or if needed trilingual) to facilitate smoother legal proceedings.”

“This issue typically only affects proceedings in the local courts,” furthers Chris Campbell, associate, Clyde & Co, “In our experience, cases resolved through arbitration, either locally or internationally, are not conducted in Arabic. One issue to bear in mind is the cost of having documents translated into or from Arabic.

There may be instances where having documents translated from Arabic could work to a party’s advantage as a result of the nuances of the language.”

A significant proportion of legal cases in Qatar pertain to the construction sector.

Explaining the volume of cases in the sector, Olivier Sulik, senior legal counsel, QDVC provides some advice for those entering into contracts in this environment. “At first, a fair balance of risks between the parties must be reflected in the contract. Where a contract is one-sided, it is usually an open road for future disputes, which would impact the life of the Project, as well as the stakeholders.

I would advise to have regular contract

QAR

910 million

The value of the German-Emirati joint venture Lindner Depa’s arbitration claim against Qatar for the delay in the New Doha International Airport.

Mel J. Sims, country managing partner, DLA Piper says that the biggest challenge is creating trust in the legal processes by encouraging transparency and accessibility and crucially demonstrating a robust and straightforward approach to enforcement of alternative methods of dispute resolution.

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feature story | legal sector

20%

The percentage of unresolved court cases in Qatar in 2011 . meeting minuted through a contract review board, made up of equal members, which could internally set up ad-hoc committee(s) to develop plan of actions with deadline to solve the dispute. Should the dispute not be solved by the contract review board, then it must be envisaged to refer it to the senior management of each party for a prompt settlement. However, amicable settlement is not always possible. Then, the parties may decide to use Alternative Dispute Resolution (ADR) mechanism such as the appointment of an Independent Expert, a Dispute Resolution Board (DAB). In all aspects, apart from the litigation proceedings, I would advise to negotiate clauses which set a clear timeframe to solve the dispute, as early as possible from its occurrence. Finally, the parties may envisage to invest in a permanent panel of experts (dispute review board) appointed and paid equally by the employer and the contractor which would follow up the project and advise the parties.”

The myriad of nationalities and backgrounds on Qatar’s court benches, Sulik continues, is another factor influencing the smooth processing of court cases. “Today, the judges in Qatar are from different countries, with their own legal background and experience. That situation is far from being perfect as there is a lack of coherence in the jurisprudence and thus a lack of visibility for the contractors. The permanent training of the judges is one of the key solutions and some countries like France have developed some expertise and collaborative approach in that field.”

Historically, part of the challenges in litigation in Qatar, says Robert Musgrove also lies in the cultural ethos of the region where not much has been written down and there have not been sophisticated contracts. “The first and most important point is getting the contract right.

Ensuring that contracts have been properly written and that a proper clause is built in to address the eventuality of dispute,” adding that if there is a problem with the contract, disputing parties should be able to arrive at a proper escalation procedure, which could be through experts talking to them, which, in juridical parlance, is called mediation.

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Mediation first

Dr. Khatchadourian says that mediation, as a dispute resolution mechanism, is more prevalent in the West and its strength, according to him, lies in the fact that mediators convince disputing parties without imposing a specific court ruling.

He adds, “The mediator is usually an elderly person who is respected for his wisdom and the disputing parties come to a kind of compromise with the feeling of a win-win situation, which helps them adopt the solution voluntarily, even though it is a compromise. It is this that helps preserve the commercial ties between the parties, which is not the case [with] litigation.”

It is with the aim of ensuring that construction projects adhere to timely delivery that the QICDRC has developed Q-Construct. The role of Q-Construct, says Musgrove, is to resolve construction disputes as they arise, avoiding usually lengthy and expensive litigation or arbitration claims.

While all legal experts believe sound contracts can go a long way in preventing legal disputes, Rifaat of Al Misnad & Rifaat is more specific when he says, “All the agreed-upon terms, particularly those related to the prices of material and equipment, payment terms and milestones, should be clearly reproduced and drafted in the agreement in order to avoid frequent claims in contracting agreements which

“The equation is a simple one – the stronger the rule of law, the better the opportunities for economic growth.” – Robert Musgrove, CEO, QICDRC.

Dr. Minas Khatchadourian, deputy secretary general of the Qatar International Center of Conciliation and Arbitration says that international best practices are developed usually in the Western countries, where the legal system is more developed.

legal sector | feature story

centre around either price or delays in completion of works.”

Rifaat also feels that the allocation of responsibilities between the contractor and the contracting state should be made in a fair and acceptable manner. Many times, he says, the state attributes a larger share of responsibilities to the contractor, which may hinder progress of a project and trigger a larger possibility of claims that can be made by the state.

If contracts are weak, often avoidance of litigation is impossible, says Mohammed Raiz, Sultan Al–Abdullah & Partners adding, “We feel there are some examples of self-drafted or off-theshelf agreements which are not tailored to specific needs of the parties and the region, thereby causing confusion and leading to disputes.”

The lessons learnt

Qatar has and is seeing high-profile cases in the recent past, notable among them being the German-Emirati joint venture Lindner Depa which has filed an arbitration claim against Qatar for USD250 million (QAR910 million) over a disputed contract at the long-delayed new airport in Doha to be redressed at the International Court of Arbitration in Paris.

Musgrove adds that it is one clear case for using international expertise for dispute resolution, given that Qatar is a country that is fast evolving. “Qatar is using,” he says, “its huge wealth to move its society and economic interests at a phenomenal speed and inevitably some elements of development go faster than others. I personally would like to see that these are the type of disputes that...were appropriate for the QICDRC’s jurisdiction, providing as it does genuine skills, knowledge and expertise in specialist fields.”

Both Musgrove and Dr. Khatchadourian agree that with passing time, commercial disputes will become more complex, with Dr. Khatchadourian adding that he increasingly witnesses disputes with multiple parties on each side, where sometimes even the stakeholders, such as insurance companies, bankers or financial institutions get involved. “Resolution of such disputes,” says Musgrove, “requires a high degree of legal expertise that the international experts can bring in.”

Dr. Khatchadourian cites the case of construction contracts which are drawn up on the standards set up by the International Federation of Consulting Engineers (FIDIC), and have built-in dispute resolution

One way to avoid construction cases is to ensure that contracts have been properly written and that a proper clause is built in to address the eventuality of dispute. In addition is a proper escalation procedure which could be through experts talking to disputing parties.. (Image Corbis)

boards that are charged with following the development of a project to avert disputes, recommending the use of such boards across the industries.

“The dispute resolution board comes and sits with both parties, trying to solve issues before things are...complicated and before a dispute reaches the deadlock stage,” a sentiment shared by Riaz of Sultan Al-Abdullah & Partners.

Sims of DLA Piper is also of the opinion that early action can avoid lengthy disputes, “Drastic action such as termination of contracts and calls on performance bonds leave parties with no option but to go through arbitration or litigation.” He adds that early action requires all parties to take responsibility for their part in the situation, and not resort to blaming one another.

Musgrove thinks that as Qatar’s development progresses, this will by necessity involve more investment from international markets and law students who are now acquiring legal degrees abroad will have to focus more on the growing economy’s needs and on realities in Qatar, something that a mere law degree may not equip them with. “Law graduates need lawyering skills to be prepared enough to

93

Qatar’s rank in Doing Business’ tracking of 189 countries in 2013.

practise in the courts,” continues Musgrove.

Dr. Khatchadourian continues that the country will do well to develop more specialised codes, codes which can deal with economic disputes, intellectual or corporate disputes, labour disputes, mergers and acquisitions, “because Qatari judges need more exposure and experience in dealing with complicated complex multiparty disputes. The legal system also needs some new laws and we hear about a new company’s law or an arbitration law that is going to be released shortly.”

Jonathan Collier and Paul Prescott, senior associates with Pinsent Masons, say that it would be important to see specialist courts to deal with disputes in specialist sectors. For example, in the United Kingdom, there is the Technology and Construction Court, which deals with high-value complex construction and IT disputes.

Having specialist judges experienced in dealing with these types of disputes means the parties have confidence in the courts to deal with these types of disputes, and the parties know they will be dealt with expeditiously and in a costeffective way, they say.

According to Collier and Paul Prescott, the legal framework – the Civil and Commercial Procedure Law - Law No. 13 of 1990 that underpins the court process, needs a major overhaul to update it in order to allow cases to be dealt with in a cost-effective way and for it to be brought up to the same standards enjoyed in other jurisdictions, especially if Qatar wants to continue to attract major international investment.

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Qatar’s gateway to

industry Applied research, free zones and technology communication: key functions of Qatar Science and Technology Park

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research & development | business interview

As a facilitator of applied research and a free zone, the purpose of Qatar Science and Technology Park (QSTP) is to foster a spirit of innovation. Embodying the spirit of each of these, the science park also has an eye on how technology can be commercialised. Talking exclusively to The Edge and shedding light on each of these aspects of the park, Hamad Al Kuwari, managing director of QSTP says that each of the functions of the park are aligned with the aims and strategies drawn up in the Qatar National Research Strategy. by Aparajita Mukherjee Environment, energy, health sciences and ICT are the focus areas of QSTP. How would you break down the initiatives that are included in each of these areas?

QSTP’s vision is to be an international hub for applied research, innovation and entrepreneurship, an active and supportive free zone, and a facilitator of technology commercialisation. These are the three charters of QSTP, and as part of the bigger umbrella of Qatar Foundation Research and Development (QF R&D), QSTP focuses on the end products of research. To that extent, research endeavours of higher maturity, which can be and need to be commercialised, fall within the ambit of QSTP. We are governed by the Qatar National Research Strategy (QNRS), a strategy document that lays down clear direction in all four research areas of QSTP: energy, environment, computing or ICT and health sciences.

In Qatar, being primarily driven by oil and gas, you can expectantly find a higher percentage of energy-related entities at QSTP. This, however, does not rule out the presence of alternative energy and now ICT and health sciences enterprises under the same roof.

How many of the research programmes in these four areas are on the path to commercialisation? What role does the QSTP play?

Commercialisation has two aspects to it. One, the patents or technologies that are developed by the members of QSTP and two, those that are funded by them. For the second category, it is the members’ responsibility to actually commercialise them.

However, in the first case, QSTP conducts technology assessment and gives advice on the best commercialisation route. This means giving tenants options such as starting up a new company or simply licensing the technology out. Our advice depends on the technology and its readiness.

How do the goals of QSTP tie in with the Qatar National Vision (QNV) 2030?

QNV 2030 is the overarching vision that lays down and defines the main thrust areas of the country as a whole, within which there are a number of different initiatives. The R&D aspect under the QNV 2030 is addressed by the Qatar National Research Strategy (QNRS).

QSTP is one of the vehicles for the QNRS, contributing to the overall strategy. In effect, there is a direct correlation between what QSTP does to support incubation, innovation and commercialisation – all of which contribute to the overall strategy and thus to the vision itself.

QNV 2030 is often discussed in the context of economic diversification beyond oil and gas, though I personally think that the description is limiting. It could well and often does relate to technologies that enhance and fine-tune the recovery and processing of gas to have less of an impact on the environment.

Within the umbrella of QSTP, there are diverse entities. How does QSTP manage diversity and drive research initiatives and deliver technology that can potentially be commercialised?

The entities within QSTP are mandated to undertake technology development and are governed by the free zone law and regulations, which allow us to issue them licences

“QSTP conducts technology assessment and gives advice on the best commercialisation route.”

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2.8%

Percentage of Qatar’s GDP devoted to R&D.

QSTP licensees are allowed 100 percent foreign ownership and are not taxed on their income, this has been a crucial reason why so many companies exist within QSTP, says Hamad Al Kuwari, managing director QSTP.

to operate, and create a favourable framework with potential tenants. Usually, the framework is industry-specific and there are agreed-upon activities with entities regarding what they are planning to do in a given timeframe.

At the end of each year, there is an evaluation exercise where QSTP assesses the performance of the entity. The evaluation exercise helps us ensure entities achieve what they set out to achieve and that we are providing the right support.

Monitoring is one way, yet when an application for tenancy comes, how do you ensure that it is focused on QNRS? The discussion we have with potential tenants is thorough enough to ensure the entity will be contributing to specific goals within the QNRS. We distinguish ourselves as a science and technology park by focusing on these key areas. We have a process for tenancy which focuses on how one applies, based on which we grant licences to the entities. Besides the free zone department, we do have a strategy research department, which consists of professionals, in the four schematic areas.

A post-carbon economy is one of the thrust areas of QSTP. How will, in an economy, which is still driven substantially by oil and gas, will a science park be able to take the country into that phase?

The post-carbon economy is an effective vision, in my opinion, one that is challenging yet achievable. This keeps up the momentum and makes people work 80 | The Edge

“In Qatar, being primarily driven by oil and gas, you can expectantly find a higher percentage of energy-related entities at QSTP.” towards it. Moving Qatar’s economy into a post-carbon phase is a vision for QSTP and I believe it can be done with the huge commitment by the government, which provides a massive 2.8 percent of its GDP to R&D, one of the highest in the world.

There is an ambitious plan for the country’s R&D that is encapsulated in the QNRS and overall ambit of QF. This makes QSTP an important player in realising the vision for the simple reason that the output of the research comes to QSTP for commercialisation. If we were to coin a slogan for QSTP, it would be: The gateway to industry.

With Qatar having an increased focus on solar power (following what was declared at the COP18 held in 2012) and with the new testing facility here within QSTP, what have been the advances made?

The solar testing facility is a collaborative effort between a homegrown start-up called Green Gulf and Chevron Energy Solutions.

The whole mandate of this facility is to test the different types of solar technologies and that would include photovoltaic energies, specifically those that are applicable to this region. However, we have been testing since the inauguration in December 2012. It was inaugurated by Her Highness Sheikha Moza bint Nasser, the chairperson of QF. Our goal is to obtain enough data to generate concrete, knowledge-based conclusions.

A question that needs to be borne in mind is, though Qatar and

research & development | business interview

the region have plenty of sun, is: do we have the correct type of sun? This is precisely what we are trying to answer with the fullyinstrumented testing facility which takes cognisance of high temperatures, high humidity, and high dust erosion - factors that impact the performance efficiency of solar panels in the region.

When inviting new members from across the globe, what do you normally look for? And how does QSTP help a new tenant?

Initially, when QSTP is trying to attract tenants, the first things we look at are the sectors Qatar needs. Once the sectors are identified, we start looking at the objectives of the research strategy. Once these are satisfied, we look at how those entities might build synergies – through their work here in Qatar - based on their core competence and how it could be applied elsewhere. Currently, we are at 95 percent occupancy and are not doing roadshows anymore to attract people until the new buildings are constructed.

Once a tenant is on board, we support them in many ways. Besides the infrastructure that is available to

“At the end of each year, QSTP assesses the performance of the tenant.” them, we support them by helping them understand Qatari regulations, government agencies including customs and immigration, and simple things like how to get a phone connection. Some of this support we provide ourselves and for some, we direct them to the right entities that are aware of, for instance, the free zone and what exemptions we as the science and technology park can extend to foreign players.

How did the free zone help attract companies into QSTP? The free zone is a crucial element and a key reason why there are so many entities within QSTP, because it allows QSTP to license companies that are 100 percent foreign-owned, with no taxation on their income or on imported goods that are used for technology development. These benefits allow foreign direct investments in the field of technology here in Qatar.

The QSTP is currently at 95 percent occupancy, but is has plans to expand the technology park with the addition of two new buildings.

What have been the most important milestones since the QSTP opened? What do the next four to five years look like?

We are in our next phase of physical growth, having launched the design phase of the second stage of development within QSTP. The plan is to have two more buildings within the park, all within the free zone.

We will have a technology building, which will be similar to Tech 1 and Tech 2. But this building will incorporate the feedback we received from our members, namely enhanced functionality of the building. We will also have Tech 4 which is going to be more of a workshop where tenants who require heavy-operation testing, will be housed.

Also, in these four-plus years, we have been able to define a culture that befits a science park. Today, having 42 companies is a testament to the work we have done convincing people to come undertake technological development in Qatar and the value they have gotten from it.

We went about building this entire infrastructure and making sure it is actually occupied with people who are involved with technology development.

As a strategy, we went about developing the infrastructure stage by stage, instead of having the entire infrastructure in place and then struggling to have our facilities occupied. That was the focus for the first five years – how to attract companies, how to make synergies, how to build relations with QF and create a balance between the producers of technology and its end-users. QSTP has also had to work on building relationships and synergies with government agencies and the local private sector.

Building relationships, internally and externally, has been a key focus here.

Last year, we won the bid to host the International Association of Science Parks and Areas of Innovation’s 31st Annual World Conference - a conference where all science parks around the world participate.

It will be held here in Doha next October at the Qatar National Convention Centre.

This event will allow everyone to share their experiences, find out what the challenges are, some of which are common, and some region-specific.

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Envisaging Doha’s 21st Century zenith

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What will Qatar look like in the middle of this century?

Barry Mansfield presents a semi-fictional vision of likely changes in cultural and economic life brought about by a ‘rise of the machines’ and how Qataris may blend the traditional and high technology in a way that is agreeable to them.

T

he year is 2050, 28 years on from Qatar’s successful hosting of the 2022 World Cup and 20 years after the culmination of the 2030 National Vision of HH the Father Emir Sheikh Hamad bin Khalifa Al Thani, guided to fruition by current Emir HH Sheikh Tamim bin Hamad Al Thani.

Welcome to Doha at its 21st century ‘knowledge economy’ zenith. Self-lighting trees from California’s Glowing Plant Lab illuminate the numerous clean, wide promenades. Long-time students head home from evening class in automated taxi pods, which can be called by mobile phone, or via tiny sensors built into their eyewear, clothes, watch, ring or bracelet. Full immersion video gaming is a hit pastime.

Henry Ford’s vision of the Sky Car is now here and the popular Aeromobil models can often be spotted over the capital, but they are still mainly the preserve of business leaders and dignitaries. Most Qataris simply jump onboard the Hyperloop, an elevated, reduced-pressure tube where pressurised capsules whisk passengers across Doha in seconds and throughout the Gulf Cooperation Council, which now includes the United Arab Republic of Yemen, at speeds of more than 1000 kilometres per hour. Many commuters travel to finance jobs in Dubai and Karachi or to oversee manufacturing in Iraq and Yemen. Reclaimed desert around the capital is a lush green tapestry of farmland and tropical forest, and dotted with vast solar powered ‘hydroponic’ hubs where part-time Qatari workers and robots cultivate fruit and vegetables for home and overseas markets.

In a world where technology has replaced people in many roles, these are now popular hobbyist jobs for students and older Qataris. In fact, the emirate has 84 | The Edge

peaked, resulting in the departure of many foreign workers; the population has dropped to around 2.1 million from a high of 4.6 million in 2020. The goal of food security was achieved in 2040 and Qatar is now more than 85 percent self-sufficient in food production and self sufficient in water thanks to an affordable osmosis from salt water technique perfected by a young Qatari student at Texas A&M University in 2028 and now widely used around the world.

Despite all the high-tech enhancements, it is still easy to walk and cycle around Doha. There is a huge green belt to prevent urban sprawl. Living standards are extremely high; these days it is common, thanks to advanced medicine, to live a healthy life well into your 90s and beyond. Every target in the Qatar National Master Plan has been surpassed.

Intellectual capital

Fulfiling one of the basic tenets of Qatar’s knowledge economy ambitions, the country has the highest standard of education in the world, with more than 40 of the world’s best universities – Qatari, Arab, Western and Asian – hosting campuses at the sprawling complex of Education City, itself now regarded as the world capital of education. Most learning here is accomplished through intelligent, adaptive courseware presented by computersimulated teachers. In the learning process, human adults fill the counsellor and mentor roles instead of being academic instructors, who are often not physically present, and help students remotely.

Though English and Arabic are the most widely spoken languages, real-time language translating machines, developed in Qatar, are incorporated into devices such as smart eyewear, are routinely used in conversations. Effective language technologies (natural language processing, speech recognition and speech synthesis) are in common use. According to Android vice president Hugo Barra, these were ‘near-perfect’ for some languages in 2013. However, it took much longer for Google, Microsoft and Japan’s NTT Docomo to deliver the service in a non-intrusive and fashionably acceptable way - soft contact lenses are sleek, and evolved from Google Glass. Innovega led the early work here, eventually collaborating with a number of Qatari start-ups.

An automotive revolution

Real-time language translating machines, developed in Qatar, are incorporated into devices such as smart eyewear.

Commuting is transformed as self-driving vehicles eliminate accidents and free up time for leisure and work. Audi, BMW, GM and Google tested them first. The search engine giant wanted them on the roads by 2020 but safety experts warned as early as 2012 that the failure of governments to agree on objective performance standards would delay their arrival significantly. The Institute of Electrical and Electronics Engineers predicted that autonomous cars would account for up to 75 percent of vehicles on the road by the year 2040. In Qatar in 2050, it is closer to 90 percent.

Alongside the high–speed Hyperloop train perfected by Elon Musk in 2026, holographic video conferencing reduces the need for frequent business travel. Cisco Telepresence was a frontrunner in this field. Job posts by Microsoft Research in mid-2013 suggested that it was then “developing the hardware and software necessary to have a realistic physical ‘body-double’ or proxy in a

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Qatar has the highest standard of education in the world, with more than 40 of the world’s best universities in Education City. remote meeting… that gives the remote worker… the ability to look around the room, turn to a colleague and have a side conversation.”

By 2050, The Human Media Lab at Queen’s University in Kingston, Ontario in Canada has developed a life-sized hologramlike telepod that uses Microsoft’s Kinect System and a cylindrical display for live, 3D in-person communication, which has become the product of choice around the world.

An automotive revolution has also taken place. The limited amount of oil and gas remaining are still utilised as energy source, but will only be used in niche industries where its unique combustible elements are still in demand. In 2013, Colorado’s DaVinci Institute predicted that friction-free technologies and material science advances would reduce the typical passenger vehicle to around 90 kilograms in weight, and the price to under USD5000 (QAR18,200) in the said year’s currency. By 2050, there has been a near-complete transition from electric to binary power (where two otherwise harmless beams of energy will intersect at some point in space creating a source of energy) as the main source of vehicular power.

From 2030, much of this technology was developed by researchers in Qatar and created by joint ventures with international firms.

A smart grid links all household appliances directly to energy distribution systems, enabling real-time pricing based on supply and demand. However, in 2013 the European Photovoltaic Industry Association suggested that by 2030, the cost of solar photovoltaics in ‘sun belt’ countries would have dropped to just QAR0.2-0.39 per kilo watt hours - clean electricity is already very affordable in 2050.

The Smart Grid concept has been reevaluated since the days of IBM’s first contract in Qatar, because air pollution and congestion are no longer a problem, and most devices are now highly energy efficient.

Nanotech-based manufacturing is widely used, altering the economy as products (from micro-batteries to phones and medical implants) can be produced for a fraction of their traditional manufacture costs. The true cost of any product is now the amount it takes to download the design schematics. Partly thanks to the trailblazing work of Harvard University in 3D nanoprinting back in the mid-2010s, Qatar, like many developed countries, can now easily manufacture many items for its own domestic market.

Quality of life

Money has deflated in value, meaning all sorts of goods and services have become cheaper. As economics writer Paul Mason put it decades ago, “Information goods will be more prevalent than real goods, eroding the price mechanism as a means of distribution.” A number of international digital (‘crypto’) currencies, including the ‘e-riyal’, thanks to Qatar’s dominance in global IT for the past few decades, have taken the place of the primitive bitcoin, offering superior security and anonymity, quick transfers and very low transaction fees. Governments and corporate cartels are unable to manipulate these new currencies the way they used to before the great global economic crash of 2017.

Continued on page 88

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A 2050 Vision: The Man-Machine?

Future technology will introduce entirely new classes of bioethical problems. Some technological trends, like ‘transhumanism’ (a term coined by English biologist and WWF founder Sir Julian Huxley in 1957), will be partly unacceptable to Islamic cultures. A report issued in 2013 by the United States’ National Intelligence Council (NIC) Global Trends 2030: Alternative Worlds Human Augmentation pondered the arrival of body modification technology “ranging from implants and prosthetics to powered exoskeletons, human augmentation enhancing innate human abilities.”

By 2050, there is no doubt these augmentations could be used on soldiers, workers and anybody who can afford them, giving them “super-human” mental and physical powers. In his 2005 book, The Singularity is Near, American futurist and Google director of engineering Ray Kurzweil even predicts a ‘robot rights’ movement demanding formalised legal protection for machines.

Musa Furber, a research fellow at the non-profit Tabah Foundation, has pointed out that religious writers tend to obsess over speculative long-term possibilities like immortality, rather than focusing on the rights and wrongs of near-future topics. This can lead them to “fall into a trap” of becoming “systematically hostile” to a very broad technology.

Rather, Furber recognises that nanotechnology raises health, environmental and privacy issues. Should genetic information be kept private? Who should be held responsible when technology causes accident or injury? By their nature, nanomaterials are extremely difficult to trace and detect.

Surveillance devices can be intrusive. There are also important concerns over the weaponisation of nanotechnology, and how it should be disposed of. However, Furber is confident that the “dynamism” of shari’ah-based reasoning will help to foster scientific inquiry rather than stifle it.

Qataris will want to make the coming high technology their own, and focus on the shift towards high-tech agriculture, manufacturing, knowledge and service economies, away from oil and gas. Doha-based filmmaker Sophia Al Maria, author of the critically acclaimed The Girl Who Fell to Earth, worries that young people in the Gulf are “some of the most travelled, educated and culturally eclectic people in the world and yet are expected to live in an increasingly mono-cultural environment.”

It seems likely that the greatest difficulty for the people of Doha in 2050 will be how to keep culture alive, in a comfortable, highly–managed environment that caters largely to the whims of the mass consumer.

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Spillover Continued from page 86

Qatar 2050

There is widespread use of ultrasonic advertising, where two beams intersect to deliver a localised sound message that a person can hear, and can also control by selecting only to hear messages or brands from certain advertisers. Nokia was an early mover in holographic advertising.

Available for a long time, it uses a combination of Mylar screens, super high-definition overhead projectors and reflective surfaces, but is now much more life-like, with clearer images. Holograms have gone portable – via personal, iPad-sized display pieces, including the Chinese-owned FacebookApple Corporation’s iHolo mobile device.

Food in Qatar is commonly ‘assembled’ by nanomachines. This food is externally indistinguishable from ‘natural’ food. It can be made more wholesome as production can be controlled at the molecular level, phasing out the crude genetic modification. This technology decouples food production from the availability of natural resources. It saves a huge cost, enabling restaurants to spend more on high quality, tasty ingredients and gourmet cooking techniques. The assembly method also improves hygiene, as well as reduces preparation space and ultimately real estate rental costs. With the national obesity and diabetes epidemics of the 2010s a distant memory, fast–food chains are a thing of the past.

Nevertheless, in certain areas traditional restaurants thrive, and worldwide Qatar is regarded as one of top destinations in the world for cultural, technological tourism, recreational choice, for work and the general happiness of its inhabitants. The Qatari capital has in fact made the 10 of Mercer’s Quality of Living Survey since 2029.

Home to Qatar Spaceways, Doha is also one of a select few world spaceports, with weekly rocket flights departing to human colonies on the Moon and Mars (many of which use the same hydroponic food growing techniques perfected in Qatar) making it a truly intergalactic capital city.

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products and reviews Canon Security Cameras

Canon Middle East, along with its distributor in Qatar Salam Technology, has diversified into the security camera business in Qatar with the launch of a full range of IP (internet protocol) enabled surveillance cameras. Built with complete interoperability, the full HD IP cameras VB-M600VE, VBM-40 and VB-M700F feature true wide angle coverage, which minimises camera quantity; low light capability which enhances video quality in difficult lighting conditions, and a smart shade control feature which makes the video footage more effective when excessively backlit. The cameras are ONVIF–compliant (a global communication standard protocol) and compatible with a range of third–party ONVIF-compliant equipment. The cameras also have built–in video analytics, onboard memory storage and are compatible with many third–party recording devices.

Read it: Creative Strategies If the marketing mix is the gist of advertising, this book deals with all five Ps – product, place, promotion, price and people. Addressed primarily to creative agencies, Creative Strategies: Idea Management for Marketing, Advertising, Media and Design starts with the crucial importance of relationship between the client and agency. Written by Mario Pricken, Creative Strategies revolves around Heraclitus’ idea, “Nothing endures but change.” Absurd as it may seem, the writer makes the point that, bringing innovative ideas to the table is important for creative companies. Continuing around the same theme, he argues that organisational culture needs to change if it gets complacent with the generation of similar ideas over time.

What adds visual appeal to the book is the spread of pictures demonstrating examples of successful marketing strategies used by brands such as Coca Cola, IKEA, Tide and McDonalds among many others. True to the idea that there is no right or wrong way to deliver a unique offering, the text first explains the strategy used in the relevant picture and then leaves a ‘talking point’ for further debate.

With less text and more visual elements across its 293-page narrative, the book is more like a practical guide for industry professionals, covering various aspects of creativity such as an organisation’s culture, client’s ad brief, and creative processes. The focus of Creative Strategies remains on the originality of ideas and concepts used by creatives. Its fifth chapter, ‘Creative Process’ specifically deals with the concept of idea management, which the author says is “a playground for originality.”

Available at Virgin Megastore 90 | The Edge

P’9982 Smartphone Porsche Design and BlackBerry have announced the new, alltouch Porsche Design P’9982 smartphone from BlackBerry. The gadget features a customised version of the BlackBerry 10.2 Operating System. Distinguishable by its special series of PIN numbers, owners of the P’9982 will be instantly recognisable in the exclusive world of Porsche Design smartphone owners.

This phone has a satin–finished frame forged from stainless steel and a hand-wrapped genuine Italian leather backdoor.

Apple iPad Air Launched recently, the iPad Air is the latest tablet from Apple featuring the standard 9.7-inch retina display screen but with a thinner and lighter body design. Weighing in at one pound, it is 20 percent thinner and 28 percent lighter than its predecessor – the fourth generation iPad. With a narrower bezel, the borders are thinner, giving the screen the impression of being larger. The new iPad also features faster Wi-Fi connectivity. The iPad Air also has an Apple–designed A7 chip with 64-bit desktop class architecture for faster processing, and is also more power efficient allowing for a smaller battery. The new iPad also features a M7 motion coprocessor that gathers data from the accelerometer, gyroscope and compass to offload work from the A7 for improved power efficiency.

the view from doha

Looking back on

50 issues

To round out our 50th issue special, Kamahl Santamaria to considers how Qatar has evolved since mid-2009, when The Edge published its first edition.

G

iven this is the 50th edition of The Edge, I have to be honest. I am actually not that big on anniversaries.

It’s not that I don’t like marking important events in history, or think they are not worthy of marking. It’s just that I have never understood the human fascination with the big ‘milestones’ – 10th, 25th, 50th, etcetera. My theory is that a 50th anniversary of anything is arguably no more significant than the 49th or the 51st.

But I guess what an anniversary does is give us a punctuation mark. A point to stop and reflect; to think about what life was like back then and how far we have come. 50 editions of this magazine takes us back to (give or take a few double issues) the middle of 2009.

How much have we – as a city, an economy, and a community – actually progressed in those four years? The city of Doha has certainly changed, and there are not many other cities I can think of that have physically grown quite as much in such a short time.

Think about all the major projects that have come online and quickly become part of everyday life. In 2010, the Doha Expressway was into its fourth year of construction, Salwa Road was a series of clogged roundabouts, and retail developments such as The Gate, Lagoona and IKEA were years away from completion. There was no Imam Sheikh Muhammad Ibn Abdul Wahhab Mosque and no Katara. Even the Museum of Islamic Art was considered new back then.

There is no doubt that Doha has developed, and the options available to us are far superior as a result. (Yes, the traffic is still pretty horrendous, but that was last month’s column.)

In terms of business, all Qatar has done is grow. And it is worth remembering a couple of factors in that time too. The world was well into its economic downturn by the start of 2010, and in this region, Dubai had only just started with its own particular debt and business confidence issues. Through that apparent economic gloom, Qatar definitely slowed. But it still maintained better growth than most developed cities. In fact, as the jobs vanished elsewhere, Qatar became an increasingly attractive employment and business destination.

And not forgetting that the dream of the 2022 World Cup being hosted in Qatar was just that – a dream. The nomination, which came at the end of 2010, was the catalyst for Qatar to fast-track its development programme of projects such as the Doha Metro and the Lusail Expressway. Perhaps where Qatar has lagged is in its community and social development, which at times have not kept pace with the physical changes and found themselves without clear direction.

Alcohol was banned at The Pearl-Qatar, and that changed the restaurant landscape – some were forced to close. At the same time, other non-halal products were introduced for purchase by those with liquor licences, which 92 | The Edge

Just four-and-a-half short years, when The Edge published its first edition in August 2009, many parts of Qatar, such as this area of West Bay opposite City Center, were vastly different, indicative, says the author, of the rapid growth in the country.

brought a backlash against the distribution company behind it.

The Villaggio fire was another crucial moment.

People realised that safety had not been of the upmost importance as Qatar had expanded. And with the sudden introduction or enforcement of rules, every sector from retail to construction to childcare was affected, and forced to catch up.

There was also the court case to hold those responsible to account, which made global but not necessarily flattering headlines. And the local media has still not found its voice, with blogs and social media still providing more up-to-date local information than traditional outlets.

But all told, 50 issues later, this is still a young city and country – in modern terms. It is in the middle of an extraordinary growth spurt, and watching Qatar find its feet, through the next 50 issues of The Edge, will be nothing if not fascinating.

Kamahl Santamaria is a Doha-based news anchor with Al Jazeera English and host of the channel’s business and economics programme Counting the Cost.