editor’s letter
FROM THE
EDITOR
GET ‘THE EDGE’ ON BUSINESS
GENERAL MANAGER Jocquine Chami Managing editor James McCarthy jmccarthy@surlaterre-me.com +974 3159743 Editor Kelly Lewis k.lewis@firefy-me.com +974 5067574 Sales & marketing manager Emma Tapper e.tapper@firefly-me.com +974 3197446 Creative director Roula Ayoub Graphic Designers Lara Nakhleh Rena Chehayber Chaker Karam Illustrator Tarek Dergamoun Finaliser Michael Logaring printed by Oriental Press (H.Q) PO Box 161, Manama-304, Bahrain www.oriental-press.com
Firefly Communications P.O.Box 11596, Doha , Qatar Tel: +974 4340360 Fax: +974 4340359 www.firefly-me.com
Welcome to the debut edition of TheEDGE, a dedicated business magazine designed especially for professionals operating within Qatar’s multi-sector business landscape. Delivering a monthly round-up of news and analysis, in-depth features, high profile interviews, economic market activity reports, along with regular insight from field experts, TheEDGE is a market barometer and the essential information resource for professionals operating on all levels of business. TheEDGE provides an insight into the latest business developments and market trends set to impact the way individuals and companies do business in Qatar. It also presents international firms looking to expand their presence in the region, with a vehicle in which to keep their finger on the pulse of Qatar’s business activities. Doha-based, TheEDGE will grow and evolve just as its hometown and the businesses within it have. However, to ensure the magazine follows business developments in a multifaceted fashion the editorial team at TheEDGE invites regular feedback and active participation from all players of Qatar’s business community.
Qatar flexes its economic muscles
In the aftermath of the global economic crisis many individual economies around the world are licking their wounds and tallying their losses, while business opportunities still abound in Qatar. However, not impervious to the economic crisis, Qatar did experience a slowing of monetary activity, but the country has maintained its buoyant state to only experience a ripple-scale effect in comparison to some economies, which took a tsunami blow. Arising from the crisis Qatar has flexed its robust ‘infrastructure’ muscles, which are being greased by various private and public sector investments that are expected to propel the country’s economic future forward in a multifaceted fashion. Various initiatives and bilateral agreements are being forged, on both the domestic and international front, to serve as a platform in aiding businesses of all calibres to tap into the opportunities that lay vastly within Qatar’s budding economic environment. As Qatar surges forward with its diversification ambitions, this trend will likely offer foreign companies new market opportunities for their products and services. These companies can use the business mission as a useful platform to network with highlevel business and official contacts throughout the GCC region. Further, as Qatar branches out away from an oil-based economy it will look to open up new opportunities for small to medium business enterprises on the home front, while actively working to boost its global export market reach into new and emerging economies, as well as strengthening foreign trade agreements. To boost the non-oil economy, the government has committed to a multitude of investment and infrastructure projects worth an estimated US$100 billion by 2012. With transport infrastructure a major focus, there is a multi-billion dollar integrated rail network in the planning stage. As inflation is forecast to ease in 2009, Qatar’s business environment remains a lucrative investment destination for domestic and foreign investors. The country has few security risks and offers a wealth of opportunities in both oil and non-oil sectors, which is expected to continue unabated.
Kelly Lewis
Editor
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contents
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Contributors .6.
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A brief introduction to the specialised team of contributors, who regularly lend their expertise and insight to TheEDGE.
MAKING HEADLINES .10.
TheEDGE takes a look at the latest developments affecting the business landscape within Qatar and the GCC.
GLOBAL OUTLOOK .15.
A snapshot of what is happening around the world on the business front.
NEWS IN QUOTES & NUMBERS .19.
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Powerful statements and important statistics that made an impact.
BUSINESS INSIGHT - DIGITAL MEDICINE .20.
TheEDGE investigates digital medical developments taking place at Doha’s Qatar Science and Technology Park.
MARKET WATCH .23.
An economic snapshot at how Qatar is performing in the global domain.
COVER STORY .26.
Human Capital: A special feature investigating how Qatar and Arab countries are dealing with growing foreign workforce issues.
SPECIAL FINANCE FEATURE .33.
A review of how Qatar’s financial sector braced itself for the economic storm.
SPECIAL REPORT BY OBG .37.
The Oxford Business Group lends its insight to reveal Qatar’s telecommunication power struggle.
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ON THE PULSE .40.
Edward Jameson investigates how Doha is paving the way for a new future.
BUSINESS VIEW - REAL ESTATE .45.
Edward Brookes takes a look at Qatar’s real estate sector and provides some advice on how to play the ‘renting’ game.
LEGAL INSIGHT .52.
Legal eagles, Sarah Simms and David Salt discuss the ‘house rules’ associated with setting up a business in Qatar.
INDUSTRY FOCUS .56.
Steve Paugh delivers a special feature on the history of broadcast communications in Qatar.
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ONE-ON-ONE .63.
TheEDGE speaks directly with MEEZA and discovers how it is raising the bar for the IT industry in Qatar and the region.
EVENT/CONFERENCES .76.
A list of key industry events and conferences that are taking place in the MENA region and abroad in July.
HOW-TO GUIDE .66.
Some useful tips and tricks to help you improve your day-to-day business operations.
TECH TOOLS .72.
TheEDGE takes a look at the latest tools and gadgets hitting the shelves.
PROJECT NEWS & TENDERS .77.
An update on how Qatar’s key projects are developing and a list of the latest tender contracts that are open for bidding.
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contributors
Sarah Simms
Senior associate - Clyde & Co, Doha, Qatar Sarah Simms works in the Qatar Financial Centre branch of law firm Clyde & Co. Simms is a native of New Zealand where she obtained her Honours law degree in 1995. Since then Simms has practiced at leading law firms in New Zealand (Bell Gully), London (Freshfields), Australia (Arnold Bloch Leibler) and most recently in Doha. Simms has extensive experience in a range of commercial matters, including corporate and commercial, financial regulation (including advising clients operating within the Qatar Financial Centre), insurance, litigation and other forms of dispute resolution. She also has extensive experience in advising on various aspects of Qatar law and has written legal articles for Marhaba and The Report: Qatar. Simms also works with various international companies and individuals operating in Qatar.
Edd Brookes
Director - DTZ Middle East Operations, Doha, Qatar Edd Brookes, based in Qatar for the past four years, is a professional member of the Royal Institution of Chartered Surveyors and a director of DTZ Middle East Operations. In addition to being head of DTZ Middle East Valuation, Brookes runs the Agency Department, which is involved in the sale and leasing of a number of key projects. The diverse calibre of Brookes’ work has seen him operate out of various MENA countries. He is a regular guest on the BBC’s World Middle East Business Report and a speaker at key regional events.
David Salt
Partner, Corporate and Commercial - Clyde & Co, Doha, Qatar David Salt re-joined Clyde & Co in March, 2007, having previously been a partner with the firm for 12 years. He is based in the firm’s Doha office. A corporate and commercial lawyer, Salt has extensive experience advising on energy projects, as well as a broad range of corporate finance work. Salt has advised numerous international companies on ‘setting up in Qatar’, including in the Qatar Financial Centre and Qatar Science and Technology Park, and advised on the first ever debt/equity swap in the Gulf. Salt is a well-respected figure within the business community and has considerable involvement in the Qatar British Business Forum and British Embassy activities. 6
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contributors
Edward Jameson
Senior business journalist - Middle East North Africa region Edward Jameson is a seasoned business journalist operating out of the GCC. Jameson’s editorial expertise extends to the construction, logistics and environmental sectors. After earning an MA in Journalism in the UK, Jameson traveled extensively throughout Australasia, South East Asia, the UK and, most recently, the Gulf region. Throughout Jameson’s career his work has featured in numerous global leading publications in both print and online mediums.
Steve Paugh
Guest editorial contributor - Doha, Qatar Steve Paugh is the editor of three publications in Qatar: Sur la Terre magazine, Dana Motors’ Quarterly Magazine and Villaggio Magazine. Paugh has a wealth of experience in global communications and business relations, which he has gained from working in key international business hubs throughout the world. Prior to Paugh’s relocation to the GCC last year, he was positioned in Fukushima City, in northern Japan, where he held a post with a private language school as an English teacher. Paugh has also worked for the National Institutes of Health in America as a technical communications officer and editor, and at the University of Edinburgh as a communications specialist in the School of Sciences. He has a degree in English Literature and Secondary Education from James Madison University in the US , and a Masters degree in Literature from the University of Edinburgh in the UK.
Daniel Moore
Editorial manager - Oxford Business Group, Doha, Qatar Daniel Moore is the editorial manager (for Qatar) of the global publishing, research and consultancy firm, Oxford Business Group. Moore has been operating out of Qatar for the past two years, as well as working in an editorial and research capacity throughout East and South Africa and Europe. In addition to this international experience, Moore worked for two years, with an American-based consultancy company on international project development and coordination initiatives, as well as business development projects in Europe and Africa. He holds a Bachelor of Science in Marketing, with certification in international business, as well as a Bachelor of Arts in French from Texas A&M University in the US. Moore has also completed certification courses and undertaken extensive studies in international business and modern French at L’Université de Lausanne in Lausanne, Switzerland. He has travelled extensively throughout Europe, Africa, The Americas, the Middle East and Southeast Asia. JULY 2009
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MAKING HEADLINES
Gulf central banks to liquidate loans
In a prelude to the launch of the Gulf single currency, the central banks of Saudi Arabia, Bahrain, Qatar and Kuwait are preparing to liquidate loans granted to public sector bodies, AlRiyadh daily has reported. The paper cited sources from the Gulf region, who did not disclose the extent of these loans. Saudi Arabia, Bahrain, Qatar and Kuwait are the Gulf Cooperation Council (GCC) states that have signed the Gulf monetary union agreement. The move comes after the GCC monetary agreement prohibited lending to public sector entities by national central banks and by the GCC central bank, which will be established in Riyadh, sources told the daily. The GCC monetary union agreement stipulates that the GCC central bank
and national central banks are not authorised to directly buy securities or debt instruments issued by public sector bodies; however, they are entitled to buy these instruments on the secondary market in the framework of open market operations and are allowed to accept these instruments as collateral. Meanwhile, industry analysts predict that Gulf economies will recuperate next year and record positive growth as regional inflation eases. A survey of economists, by Bloomberg News and the International Monetary Fund (IMF), states that Qatar is expected to record the fastest growth expansion rates in the Gulf region next year, with an anticipated increase of 15 percent. Further findings from the survey predict that Saudi Arabia’s economy will witness 4.7 percent growth next year after a retraction of 0.9 percent in 2009. The kingdom has announced a spending package that will be the largest of the G20 countries, as a percentage of GDP. Of the GCC economies, only Oman, Bahrain and Qatar will register growth in 2009, while Saudi Arabia, Kuwait and the UAE will face contractions, the forecasts suggest. Meanwhile, inflation is expected to ease in the GCC after spiking above 10 percent in five of the six GCC countries in 2008.
focus on education
One thousand delegates from more than 120 countries will converge on Doha to participate in the first global summit dedicated to monitoring the 21st century’s challenges on education: World Innovation Summit for Education. The three-day summit (November 16 to 18) is aimed at bringing about change and tackling global educational challenges.
life’s peacful in qatar
Qatar has been ranked the most peaceful country in the Middle East and North Africa region, and 16th globally, according to the Global Peace Index 2009 (GPI) released by the US-based Institute for Economics and Peace. New Zealand was listed the world’s most peaceful country, according to the index.
healthcare in danger
Ithmar Capital’s report: Expand, Consolidate and Support: Meeting the GCC Healthcare Challenge 2050 says GCC healthcare faces potentially terminal threats unless governments engage with private sectors. It reveals that 138,965 hospital beds, 140,334 physicians and 227,079 nurses will be required by 2050 to maintain current healthcare levels in GCC states.
Training academy targets financial skills development A new training academy has been established in Doha in a bid to provide specialty skills training and development for Qatar’s burgeoning financial sector. The Qatar Financial and Business Academy (QFBA), established in partnership between the Qatar Financial Centre Authority and Qatar Foundation, will roll out the first of its learning initiatives at the beginning of October. Jon Morton, director of QFBA said, “The open portfolio will consist of a range of banking, asset management, capital markets and insurance programs, delivered across the professional populations to the financial services industry in Qatar and the GCC region.” He said the primary 10
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objective of the QFBA was to build the short and long-term infrastructure for Qatar’s financial services industry, and as a vehicle in which to attract and retain more Qatari nationals, in particular women, into the finance related workforce. “Qatari women are an extremely important element of the growth economy in the country – women are playing an increasingly significant role in the leadership and development of the financial services sector in the global business environment, and this is especially true in Qatar,” he said. “We are planning to deliver learning and development targeted specifically at women in the financial services sector.”
MAKING HEADLINES
Qatar Airways boosts its airbus fleet
In defiance of the economic and subsequent travel industry slowdown, Qatar Airways has inked an agreement worth US$1.9 billion to purchase 24 of Airbus’s A320 family of planes. Bucking the industry trend, Qatar Airways confirmed the deal last month at the Paris Air Show and announced it was increasing its fleet to include 20 A320s as well as the firming up of four A321 aircraft at the Farnborough Air Show last July. The mix of A320s and A321s will augment Qatar Airway’s existing fleet of 19 of the narrow-bodied aircraft as well as its 29 Airbus A330s and four A340s. The new aircraft, configured with a two-class cabin, will be deployed to enhance and expand services on regional, European and southwest Asian services. Deliveries of the new aircraft are expected to begin this November and run through to the end of 2012. Airbus will have to push its production line to ensure deliveries of the aircraft are
transferred on time if it wants to secure the bulk of payments, which will only be made on delivery. Both Airbus and its rival, Boeing, can take some comfort from their record backlog of orders. “To preserve and deliver the backlog we have — this is a more critical task than whether we beat Airbus week by week on orders and bookings,” said Boeing’s chief for commercial aviation, Scott E Carson. The bulk order from Qatar Airways provides some relief for the cancellation of 21 of the 32 new orders that Airbus had accrued so far this year. In 2008, Airbus accrued a net total of 777 orders, while Boeing had net orders for 662 aircraft last year, but has only secured seven in 2009. Akbar al-Baker, the chief executive of Qatar Airways, said he wanted to take delivery of the new A320 family planes earlier, but Airbus was not able to accommodate him.
PFIZER TO GROW IN GCC
Guy Lallemand, Pfizer’s regional president for Africa and Middle East, confirmed to Bloomberg News that the US-based firm was considering acquisitions in more established markets of the Middle East, including the Gulf region. He said the region’s respect for patents, openness toward clinical trials and rapid review of products had encouraged the firm’s interest in the region. In 2009, Pfizer’s Middle East sales are forecast to reach US$500 million, with the company anticipating an eight to 10 percent annual growth. Iraq, Iran and Syria are among markets where Pfizer is looking to expand its business.
NEW PARTNERSHIP DEAL
Qatar’s Nasser Bin Nawaf and Partners Holdings has partnered with Dubai-based Collaboration, Management and Control Solutions (CMCS) to form CMCS-Qatar. The new company will offer the Qatari market all activities offered by its sister company in Dubai.
EARNINGS ON THE RISE
Qatar’s prime minister, H E Sheikh Hamad Bin Jasim Bin Jaber Al-Thani, said the country earned US$8 billion on its investments in the first quarter this year, Bloomberg News reported. He noted this as a positive outcome and a sign that the global economy was regaining strength. In 2008, the emirate’s Qatar Investment Authority lost US$4 billion on investments.
GE Energy signs $500m in contracts to provide equipment services in bahrain GE Energy has augmented its Gulf– based initiatives signing contracts with Bahrain’s largest power plant, which total more than US$500 million. Under the terms of the agreement, GE will supply advanced power generation equipment and long-term services for the Al Dur Independent Water and Power Project (located in the Al Dur
area on the kingdom’s south-eastern coast) to help Bahrain meet its growing power and water requirements. The Kingdom of Bahrain’s Electricity and Water Authority is planning additional capacity expansions over the next 20 years to support the country’s reported power demand growth rate of seven to 10 percent per year. JULY 2009
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MAKING HEADLINES
GCC should ink CHINA free trade pact
A new study has identified the need to hold urgent talks in an effort to strike a new free trade agreement (FTA) between GCC member states and China. Such a move would enable Gulf countries to benefit from the rapid growth of the Asian giant’s economy, which has become the second largest in the world. There is a particular need for a GCCChina FTA because of the suspension of talks about setting up such a deal with the European Union, said the study. Trade negotiations with Europe lasted 20 years, and while they were developing, GCC members missed out on economic opportunities in a number of developing countries, including India and other Arab states. Talks on reaching an FTA with China
began in 2005, but stalled as China refused to lift import restrictions on a number of GCC commodities. The study, entitled Economic Relations Between GCC Member States and the People’s Republic of China, was compiled by Najib Abdullah Al Shamsi, director of the Studies and Research Department at the General Secretariat of the GCC. He said the GCC members wish to overcome obstacles and integrate themselves in the world economy. “Almost complete reliance on Western European countries and the US has made GCC countries endeavour to consolidate economic relations with partners that bring economic and financial stability,” said the report. “Such partners are available in China, India and other Asian countries, which enjoy economic stability and are scoring high growth levels.” The desirability of reaching an FTA is not based solely on China’s strategic need for GCC oil and gas and the existence of a large market for Chinese goods in the Gulf. Chinese companies are hoping to benefit from the US$500 billion-plus of funds allocated by GCC members for the development of infrastructure, education, health and IT needs.
GCC MEDIA EXPANSION
Media production and distribution company, A2 Avalon has launched a Middle East initiative to cater for the growing demand of media content in the region. The company will boost its exclusive distribution rights to more than 11,000 hours of film, TV, documentaries and series to provide high quality content for the region’s 400-plus TV channels.
HEALTH BODY IN DOHA
The World Health Fund has confirmed its plan to open a regional office in Doha. The announcement was made by Dr Elhamy Elghandour, president of WHF at a gala dinner recently held at Doha’s La Cigale Hotel. The WHF has appointed Dr Naseer Shahir Homoud as its new vicepresident, who will take initiatives to open the WHF office in Qatar. Dr Asma R Al-Alami was also appointed as manager for Qatar’s office.
VIETNAM RATIFIES DEAL
Vietnam’s prime minister, Nguyen Tan Dung, has ratified an agreement, (which was signed in Doha, in March) on the promotion and mutual protection of investments with Qatar, the Vietnam News Agency has reported.
QIB’s multi-million dollar deal funds Salam Bounian project Qatar Islamic Bank (QIB) and Salam Bounian have signed a QR206 million Islamic finance agreement (Musharaka) to fund the developer’s Jumana Tower project at The Pearl Qatar. Construction is currently underway on the 250 apartment/28-floor residential project (located within The Pearl’s upmarket hub, Porto Arabia) and is on schedule for delivery in 2010. Salah Jaidah, the CEO of QIB, said the partnership agreement highlighted Qatar’s positive growth despite the global economic downturn. “Qatar’s economy has been growing at between seven and nine percent in 2009,” he said. “With continuous government support of the local real estate sector and the involvement 12
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of major local financial institutions such as QIB, the sector will continue to grow and the market will see an increasing number of large finance deals such as QIB’s agreement with Salam Bounian.” Ahmad Meshari, QIB general manager, Domestic Business Group, said the agreement built on QIB and Salam Bounian’s long-standing Islamic financing relationship — QIB previously arranged a Sukuk worth US$137.5 million for Salam Bounian to finance another Doha-based project, The Gate. “This Jumana Tower agreement is an extension of QIB and Salam Bounian’s strong relationship characterised by the strength and stability of its real estate projects,” he said.
MAKING HEADLINES
France boosts gulf nuclear projects
Kuwaiti officials met with French Minister of Economy, Employment and Industry Christine Lagarde during the 12th session of the France-Kuwait Joint Economic Committee last month to discuss a number of bilateral agreements and the Gulf state’s plan to establish a civilian nuclear power project. The minister said that during meetings with Kuwait’s emir, crown prince and the prime minister, they proposed to “pursue, deepen and accelerate” cooperation on the civil nuclear reactor project. Representatives of state-owned French firm Areva will hold talks “within a few days” with Kuwaiti authorities to discuss the nuclear project, minister Lagarde said without providing further details. Kuwait’s Emir, H H Sheikh Sabah Al-
Ahmad Al-Sabah said, in February, that the nuclear project would aim to produce electricity in a bid to save large quantities of fuel being consumed by power and water desalination plants. Kuwait has no military ambitions with its planned nuclear program, which will be “within international law and standards,” the emir said. France is pursing similar projects with Saudi Arabia and the United Arab Emirates. The GCC is planning a joint nuclear technology program for peaceful use under international rules. At the conclusion of the France-Kuwait Joint Economic Committee session, the French minister said both countries had placed an emphasis on boosting bilateral ties to create a suitable environment in which to develop broad economic cooperation. In addition to the nuclear partnership, the minister confirmed agreements [in the field of infrastructure], with the Kuwaiti Ministry of Public Works had been struck and with the French GustaveRoussy Cancer Research Institute and the Kuwaiti Health Ministry. Discussions were also held in relation to economic commerce, investment and oil fields, scientific research and technology, IT and health cooperation.
google speaks arabic
Google has unveiled a translation kit to convert text to Arabic. The Google Translator Toolkit helps translators to create Arabic versions of English web pages. The tool provides an automatically translated version of a web page, which can then be corrected or improved by a translator with help from the search engine’s online dictionary.
connecting solutions
Qtel and Tata Communications have inked a partnership agreement that will strengthen both companies’ network reach in the Middle East region and internationally. Under the terms of the agreement, the companies will align their infrastructures and work in collaboration to provide secure, scalable and flexible connectivity solutions including Ethernet, Multi Protocol Label Switching and a wide variety of managed services to their global customers.
quality hypermarket
The Qatar-based Quality Group of Companies, will open its first multilevel hypermarket in Doha this October, which will be located on Salwa Road.
report claims human rights are violated in the Arab world A report complied by Qatar-based Arab Democracy Foundation (ADF) has established that the Arab world still has some core structural problems in regard to human rights issues. Based on the level of public freedom as examined in 17 Arab countries, the report highlights issues, which include a deficiency of freedom exercised by both individuals and the judicial system. Mohsen Marzouq, the secretary general of ADF said that “a lot should be done” to reach the average level of public freedom “especially for the independence of the judicial system.” The ADF’s report identifies that human rights in the Arab world as “generally violated” and finds the “culture of human rights [issues] in
some of the region’s areas are new”. “The laws in most of the Arab countries gave, on paper, some rights to women, but the male-dominated mentality is very much alive in the decision-makers,” it said. The report stated that Arab countries suffered from corruption and while some countries had signed agreements to fight it, they had not yet been implemented. Further, that the security system had the upper hand in frustrating the democratic process to ensure the survival of the regimes. “The security systems have no public support and they are trying to intimidate people and to deter them from active political participation. They are being used to hide the political weaknesses of the regimes.” JULY 2009
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global outlook
New York Stock Exchange inks key deal With Qatar Bourse
- The NYSE has a 20 percent stake in the new Qatar Exchange -
The Doha Securities Market is now the Qatar Exchange as part of a US$200 million (QR728 million) deal with the New York Stock Exchange. Qatar Holding (QH), a direct investment arm of Qatar Investment Authority (QIA), and NYSE Euronext finalised an agreement to form the Qatar Exchange as the successor to the Doha Securities Market. The deal was inked in a bid to establish the bourse as a world-class exchange and forms part of Qatar’s plans to rival Gulf countries, Dubai and Abu Dhabi, in the financial-services sector.
The deal will give NYSE Euronext a significant foothold in the Middle East. NYSE Euronext’s US$200 million investment is lower than the US$250 million it planned for previously, but is still the largest investment it has made so far in a foreign exchange. Explaining the reason for the US$50 million deficit, Hussain Al-Abdulla, board member executive of the QIA, told Dow Jones Newswires at the time that the Authority asked NYSE Euronext to cut its shareholding from 25 to 20 percent because of plans to take the company public.
Under the agreement, NYSE Euronext takes a 20 percent stake in the newly formed Qatar Exchange, while QIA retains an 80 percent share to be managed by Qatar Holding. The exchange will have an appointed board and be chaired by Minister of State for International Co-operation and Acting Minister of Business and Trade, H E Dr Khalid Al Attiyah. NYSE Euronext will acquire three of the 11 seats on the new exchange’s board of directors, with six directors appointed by QIA and two independent seats. Andre Went, a senior leader from NYSE Euronext with 20 years experience, will be appointed as chief executive officer. The bourse started trading under its new name and management on June 21, and was welcomed by Qatar Prime Minister and Minister of Foreign Affairs H E Sheikh Hamad bin Jassim bin Jabor Al-Thani, who said the opening, “paves the way for Qatar to take a prominent role in the world’s capital markets for the benefit of both the people of Qatar and the Middle East generally.”
All systems scream to a hault in the uk for Qatari diar The QR18 billion development of the former Chelsea Barracks site in London, backed by Qatari Diar, has been hampered by opposition from H R H Prince Charles, Prince of Wales. The developer has withdrawn the proposals for 548 flats, which were to be built in contemporary steel and glass towers on the site that was home to the guards regiments until the UK government sold it in 2007. The project, which would have led to the creation of around 5000 jobs, will now be delayed for at least 12 months. A new planning application is not due to be submitted to Westminster Council until the end of the year. The move follows the submission of opposition to the scale of the project by the Prince of Wales and 400 objectors. A spokesman for Qatari Diar told UK press that as part of the process to find the “right solution” the company was already in discussion with The Prince’s Foundation for the Built Environment.
The company has since invited Hank Dittmar, the foundation’s chief executive, to become part of the new design team. The original architect, Lord Rogers, who the prince has come into conflict with in the past, is not expected to feature in the redesign. Some areas of the UK media are billing the clash as a rerun of the pair’s battle over a proposed extension to the UK’s National Gallery 25 years ago, when the prince described the design by Lord Rogers as a “monstrous carbuncle on the face of a much loved and elegant friend’’. The prince has proposed a design by architect Quinlan Terry, after calling the design of 548 flats in 17 blocks, “unsympathetic and unsuitable’’. The company spokesman added, “We recognise the complexity of the planning process. We are pleased to have had the support of the planners and many consultees...we acknowledge however there are differing views from various other quarters.” JULY 2009
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GLOBAL OUTLOOK
thousands of Fleeced Madoff investors seek compensation
- Disgraced financier Bernard Madoff. -
In the wake of the 150-year jail term that was handed down to disgraced financier Bernard Madoff last month, defrauded investors of Bernard L. Madoff Investment Securities LLC (BLMIS) rushed to beat the deadline to submit Customer Claim forms for financial compensation. The July 2, deadline pushed the final number of claims submitted in the BLMIS fraud case to more than 15,000, Newsday reported. Claims were directed to Irving H. Picard, the trustee appointed by the federal Bankruptcy Court in order
to recover assets for distribution to defrauded investors. It is now the task of Picard’s staff at Baker Hostetler to determine which claims are eligible to receive up to US$500,000 in compensation under the provision of the Securities Investor Protection Corporation (SIPC, a nonprofit group that advances funds to fleeced investors). A total of US$231 million in SIPC funds has been committed to BLMIS customers, with US$2.741 billion also authorised for potential future recovery. Officials previously reported that 8000 claims had been received in connection with the Ponzi scheme. To date Picard has approved 543 claims submitted by BLMIS investors however, as the number of claims awaiting review now exceeds 15,000, some investors may be forced to wait lengthy periods of time before they are advised as to the outcome of their claim. “We have a lot of work to do,” said David Sheehan, counsel for Picard. Officials said some investors were
reluctant to file claims because they were afraid Picard would sue them for money they withdrew that exceeded the amount they put into their accounts. Sheehan said the claims came from a mix of individual investors and feeder funds that invested their clients’ money with Madoff. Clients of feeder funds also filed claims, he said. Picard’s staff has also been locating Madoff business funds, which will be used to reimburse investors a portion of what isn’t covered by the US$500,000 cap amount of SIPC payments. Officials believe US$13 to $21 billion was lost in the scheme. Those numbers cover actual cash investments put in the accounts from 1995 until December 11, 2008, not the false profits reported by Madoff. It remains unclear what percentage of losses will be covered. Madoff’s 150-year sentence was the maximum penalty US District Judge Denny Chin could hand down for “extraordinarily evil” crimes in what has been dubbed as Wall Street’s biggest and most brazen investment fraud.
French president hails Qatari-French Relations As IdeaL According to local reports French President Nicolas Sarkozy hailed ties between France and Qatar as “longstanding and ideal” ahead of H H the Emir Sheikh Hamad bin Khalifa Al Thani’s visit to France late last month. The enigmatic premier said the visit was a demonstration of the consolidated ties of friendship between the two countries, noting that FrenchQatari ties had developed as the two countries regularly hold talks and consultations on various issues, the Qatar News Agency reported. Cooperation between France and Qatar is strategic and the two countries have been linked by a defence pact, signed in 1994. However, President Sarkozy added that Qatari-French economic relations were prospering and an increasing number of French firms were operating 16
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in Qatar. Praising Qatar’s efforts aimed at empowering women in the political, economic and social spheres, he hailed the personal commitment of both
H H the Emir and H H Sheikha Mozah bint Nasser Al Missned’s efforts in promoting educational projects being implemented by the Qatar Foundation for Education, Science and Community
Development (QF), pledging France’s full support to the initiative. Meanwhile, French Ambassador to Qatar, Gilles Bonnaud, expected the visit to result in a series of agreements being signed, noting the embassy’s cultural attache had been working with Qatar’s Ministry of Culture, Art and Heritage and was keen to strengthen the “qualitative partnership” with Qatar. The trip marks H H the Emir’s first to France since May 2007. However, President Sarkozy made two trips to the State of Qatar last year. In January, he visited to sign a number of partnership agreements, including six business deals and memorandums of understanding with H H the Emir; in November, he returned to attend an international conference on Financing for Development.
GLOBAL OUTLOOK
negotiations back on table for Doha development Round
- Trade Representative, Ron Kirk, expressesd support for a resurrection of the Doha Round at a ministerial meeting in Bali -
Major agriculture exporting nations have agreed to revive negotiations for the Doha Development Round. The 19-member Cairns Group, which accounts for 25 percent of the world’s agricultural trade, held a meeting last month on the Indonesian island of Bali. Representatives from India, the United
States and other WTO states reunited; committing to return, once again, to the negotiating table. The commitment to finalise a framework for the eventual elimination of export subsidies and import tariffs has been praised as a breakthrough by member countries. For years, World Trade Organisation member states have struggled to overcome differences during negotiations for the Doha Development Round, a pact that would see rich nations sacrifice agricultural subsidies and import tariffs in exchange for more access to markets in developing nations. Negotiations on the agreement collapsed in July last year after India and the United States clashed over the capacity of poor nations to raise tariffs and protect vulnerable industries when agricultural imports surged. However, relations appear to have thawed between the two as a result of recent changes of government. US trade envoy, Ron Kirk, was reported to have had talks with Indian
commerce minister, Anand Sharma, at the Indonesia meeting. Speaking at the conclusion of the Bali meeting, WTO director general Pascal Lamy said India and the United States “gave a clear signal” that they wanted to get the negotiations moving again. This spawned hope that the Doha round could be concluded some time in 2010. Just how the differences between developed and developing nations will be overcome was not on the agenda, with the issue expected to be raised at later meetings in Geneva. Some member states expressed concern at the recent EU and US decision to reintroduce dairy export subsidies. They warned that countries should do their utmost to avoid protectionist policies in response to the global financial crisis. The Doha Development Round began in Qatar in 2001, with the goal of scrapping trade barriers and subsidies, particularly in agriculture, by 2013. Talks will resume when WTO members meet in Geneva later this year.
Barwa chases repayments from south african businessman Qatar’s Barwa Real Estate is seeking repayments from a company operated by Barry Tannenbaum, a South African businessman, who has been accused of defrauding investors of up to US$1.9 billion. Barwa, a unit of the property arm of the country’s sovereign wealth fund, said in a statement to the Doha bourse that it stopped a US$40 million revolving credit facility, which it had been providing to Frankel International. “Immediately upon learning the risks facing the company’s investments related to this convention, Barwa terminated the facility and is vigorously pursuing the repayment of the amounts provided for these transactions by all legal and judicial ways,” the company said. Barwa did not disclose the amount it is owed, but it has been reported that not all of the US$40 million facility was utilised.
A South African judge appointed three trustees to manage assets seized from Tannenbaum and to investigate
allegations that he defrauded investors. South Africa’s First National Bank, a unit of FirstRand, confirmed last month that it had frozen Tannenbaum’s assets
to comply with a court order. Tannenbaum, however, has publicly denied wrongdoing, claiming his company’s difficulties are due to the economic crisis. Lawyers, as well as private investigators, said Tannenbaum lured hundreds of investors in what appears to be a Ponzi scheme similar to the one used by disgraced New York financier Bernard Madoff. Tannenbaum allegedly promised annual returns as high as 200 percent, which were linked to pharmaceutical imports. Tannenbaum operated via his Frankel International and Frankel Chemical Corp companies, and is related to a founder of one of South Africa’s leading pharmaceutical firms, Adcock Ingram. The alleged fraud has effected investors from Australia, the UK, the US and South Africa, investigators said. JULY 2009
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NEWS IN QUOTES & NUMBERS
news in quotes “Saudi Arabia, the UAE, Kuwait and Qatar are among the top 10 desalination countries in the world. The largest desalination plants are located in Saudi Arabia and the UAE. As the second largest producer of desalinated water in the world, the UAE produces more than 8.4 cubic metres per day, or over 13 percent of the total global desalination capacity.” Patricia Burke, secretary general of the International Desalination Association said at a press briefing to announce the IDA World Congress, November 7 to 12, in Dubai.
“Across the GCC, we have seen an increase in the number of projects being re-tendered. The main reason is the drop in the commodity prices such as steel and cement. What you see now is a true reflection of the market conditions. In time to come, you will not see those massive fluctuations between commodity prices. So now is the time to get the tenders out and start construction over the next two to three months. It is time to close since prices are reaching their base levels and will start to move upwards.” Emil Rademeyer, the director of Proleads Global, said to Emirates Business regarding the rise of projects being retendered in the GCC. Since October 2008 to April 2009, projects have spiked by more than 1000 percent from US$7.7 billion to US$100 billion.
“We are proud to be the first bank in Qatar to attain ISO/IEC 27001:2005 for Internet banking, and this further confirms our commitment to be on the leading edge of technology in the Qatar banking sector.”
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Educational think-tank, The Heritage Foundation has listed Qatar as the 48th freest economy in its 2009 Index of Economic Freedom, which covers 183 countries across 10 specific freedoms. Qatar’s economic freedom score is 65.8 — 3.6 points up on last year’s rating — reflecting considerable improvement in trade freedom, business freedom, and investment freedom. Qatar ranks 4th out of 17 countries in the MENA region, and its overall score is above the world and regional averages.
Pic Of the month
Haja Mohideen, the head of Information Technology for Barwa Bank, stated in reference to Barwa achieving ISO/IEC 27001:2005 certification — the world’s highest accreditation for information protection and security.
“Qatar should reconsider linking its currency to the US dollar and diversify its investments away from the weakening greenback...my opinion has strengthened because we don’t know what’s going to happen to the dollar and some people think because of the (fiscal) expansion in the US, the dollar could decline too.”
Secretary-general of the General Secretariat for Developmental Planning Dr Ibrahim B Ibrahim and economic advisor to Qatar’s Emir, H H Sheikh Hamad bin Khalifa Al Thani, said at the Third Qatar Economic Forum last month.
- Qatar’s Mesaad al-Hamad (right) vies with Australia’s Tim Cahill during their World Cup 2010 Asian qualifying football match at Doha’s Al-Sadd stadium on June 6, 2009. Photo courtesy of Karim Jaafar -
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BUSINESS INSIGHT – HEALTH SCIENCES AND TECHNOLOGY
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ew digital technologies will be developed by a team of experts working in the field of breast cancer research and technology, which will be established in GE’s Advanced Technology and Research Centre in QSTP in Doha. The research program will include the identification and validation of new and advanced mammography technologies, the development of new software interfaces and the performance of clinical trials, which will enable medical professionals to detect the signs of breast cancer earlier and with greater accuracy. Mohammad Saffarini, research director for the Health Sciences division at QSTP, said the aim of two-year, US$10 million research and development program with GE Healthcare, was to develop new technologies for the screening and diagnosis of breast cancer using the latest developments in digital X-ray mammography. In order to establish the Qatar-based research team, which will form an integral part of GE Healthcare’s global mammography development organisation, Saffarini said, “we are working with engineering schools in Qatar to recruit national talents.” The initial unit will consist of 10 professionals and within a few months, collaborating with GE teams worldwide, 20
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- Mohammad Saffarini. -
Saffarini said the division would be strengthened to comprise 24 experts. “We are partnering with GE Healthcare to work on the development of new advanced applications in digital mammography,” he said. “These new applications will utilise digital images to enable innovative solutions for screening processes combined with greater breast cancer detection accuracy in order to reduce the number of falsely diagnosed conditions — a major burden on healthcare. “The project goal is to conduct new experiments and design new concepts and processes for digital mammography applications, which will improve clinical performance and ultimately provide better healthcare solutions. “Activities [conducted at QSTP] will include running experiments and feasibility studies on new advanced
mammography applications, validating concepts from both a technical and clinical perspective, and also developing commercial products and processes to be sold by GE Healthcare.” The timeframe for verification and validation of the technologies is approximately two years. However, Saffarini said the team would allow a further six months for commercialisation plans to be established with local hospitals and radiologists prior to a global rollout. The commercial technology to be sold by GE Healthcare will consist of software algorithms and applications to be used on X-ray imaging and review systems. In terms of regulation and distribution, he said the relevant authorities, which award FDA and CE approvals would review such products, and that they would be distributed using GE Healthcare’s global channels and networks. Prior to each new application or product being released for distribution, Saffarini said all items would go through a series of rigorous clinical trials, but he did not disclose how or if the findings would be made publicly available. “All the necessary testing will be conducted as soon as prototypes are available, which will be within 18 months; these activities will be within the scope of the Qatari team,” he confirmed.
BUSINESS INSIGHT – HEALTH SCIENCES AND TECHNOLOGY
In the past few years, the incidence of breast cancer in Qatar has risen to an alarming rate, which has not been helped by the local stigma still attached to this prevalent disease, according to Hamad Medical Corporation (HMC). If detected early, breast cancer can potentially be treated easily and with minimal damage to the body. However, many women still hesitate to consult a doctor even after finding abnormalities during self-examination. Statistics reveal if breast cancer is detected early, there is more than a 90 percent survival rate of up to 10 years. In a bid to eradicate social stigmas and encourage Arab women to actively participate in managing their health, Saffarini said the team are working on initiatives targeted at women aged 40 and above to increase awareness, and dramatically shift this traditionally hesitant mindset. “We are implementing a strategic plan with the Qatari cancer initiatives and local healthcare providers to raise interest in the advantages of using these technologies for the earlier detection of breast cancer,” he said. “With the availability of faster and more accurate diagnosis, we will be in a position to demand use of our advanced technologies in routine local health checks for women. “Furthermore, public exposure about our research initiatives will help reduce the unfortunate stigma of breast cancer. “With the involvement of Qatari stakeholders and employees in our technology development, our aim is that the mindset will shift much more quickly and effectively, ultimately having a positive impact on health conditions in this country.” In regard to the eligibility for the screening and diagnosis technology once
- GE Healthcare and QSTP will use cutting-edge digital X-ray mammography technology. -
developed, Saffarini said healthcare investment was a key priority for the State of Qatar, with a budget of US$2.9 billion allocated for health in 2008/09. “The Qatar Government has always provided high quality healthcare, both to its nationals and residents, either free of charge or at affordable prices,” he said. “Any woman should have access to breast cancer screening, especially postmenopause or if there is any suspicion of breast cancer after self-examination.” The State of Qatar continues to increase efforts in fighting cancer through awareness and screening programs in conjunction with the Qatar National Cancer Society and Al Amal Hospital. The programs focus heavily on awareness and prevention of breast cancer. Additionally, there has been a
significant increase in the number of hospital beds and expanded associated facilities for the diagnosis of cancer and treatment. GE Healthcare recently announced that it will spend a global total of US$6 billion over the next six years on healthcare innovation and technology in a bid to deliver better healthcare services to more people at lower cost. As part of its pledge, the company will commit US$2 billion of financing and US$1 billion in related GE technology and content to drive healthcare information technology, as well health in rural and under-served areas. Richard di Benedetto, president and CEO of GE Healthcare for the Eastern and Africa Growth Markets, stated that more than 1.2 million people annually are diagnosed with breast cancer, and the incidence of breast cancer at an earlier age is on the rise in this region. “We are pleased to partner with the QSTP team to develop advanced applications to support the earlier detection of this prevalent disease,” he said. “We’re in the business of finding solutions for healthcare that brings change to peoples’ lives. Collaborating with QSTP, we intend to transform healthcare delivery across the region and globally.” JULY 2009
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market watch
Qatar
makes its way into the record books
Globally renowned education institution and research provider, IMD International, recently released the findings of its World Competitiveness Yearbook (WCY), which, for the first time, ranked Qatar as the only Arab state among the top 20 countries worldwide.
MARKET WATCH
World Competitiveness Yearbook ranking
The independent report (WCY), which details a 323 point criteria in more than 500 pages of findings, is regarded by business academics as the prominent reference source in which to analyse and rank the competitiveness of nations. Of the 57 economies ranked by IMD, Professor Stephane Garelli, director for the World Competitiveness Centre says the WCY findings produced some “quite interesting, but less expected results.” The first of these is the United States retaining its first place ranking in 2009, “despite all its dramatic market activity,” while Hong Kong traded places with Singapore to secure second place and “close the gap” on the United States. Switzerland maintains its fourth rank from last year. All of the Nordic economies have increased or maintained their rankings compared to the United States: Denmark went up a notch to fifth position, Sweden moves up three places to sixth and Finland with a huge bound, went from 15th place last year to ninth. Meanwhile, Norway remains steady in 11th position. In a free-fall economy, Garelli says competitiveness is also about how countries can resist adversity and show resilience to weather the storm. Further, he says its about a country’s ability to withstand “one-off events”, such as the current wake from the global economic crisis. For example, Japan fairs better than expected in 17th position, likewise with Germany (13th) and the United Kingdom (21st). However, Garelli says it must be taken into account that these rankings are based on a majority of statistics from 2008, especially the growth period of early 2008, and countries that entered the economic crisis at different times. The most spectacular movements are seen for Indonesia, rising from 51st place to 42nd, and Estonia falling 12 ranks to 35th place. Some countries suffered important reversals: Colombia (51st), Greece (52nd) and Taiwan (23rd) fell 10 places each, followed by Romania (from 45th to 54th). 24
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Other important declines include Luxembourg (from fifth to 12th), Hungary (from 38th to 45th), Spain (from 33rd to 39th) and Ireland (from 12th to 19th); Ireland was ranked fifth in 2000. “How nations and businesses are managing the totality of their competencies to achieve greater prosperity” is the definition of competitiveness, says Garelli. Competitiveness is not just about growth or economic performance, it also based on the “soft factors” such as the environment, quality of life, technology and knowledge.
This helps explain why some countries, the United States, Japan, the UK, Nordic economies and small, open economies like Hong Kong, Singapore and Switzerland, are able to maintain their rankings in the top league despite short-term disruptions. Too much focus on the short-term helped trigger the crisis. The IMD WCY ranking is a photograph of competitiveness at one point in time. It is also important to look at the evolution of countries’ performances over the longer period. IMD has been studying competitiveness – more than 20 years.
THE WORLD COMPETITIVENESS SCOREBOARD 2009
market SECTION watch
Overall Ranking: Stress Test on Competitiveness 2009
Stress Test ranking
Based on the results of the World Competitiveness Yearbook (WCY), IMD have developed the IMD Stress Test, which places Denmark as the 2009 top achiever. The Stress Test, while not as comprehensive as the WCY, uses a 20 point criteria to provide an analysis of the countries that are better equipped to fare through the crisis and improve their competitiveness in the near future. In other words, the test is future oriented – it focuses on exposure, readiness and resilience in a period of world recession. Although the economic forecasts are still weak for this year says Garelli, Denmark finishes first in part because of the strong resilience of business and government, and the long-established stability of its society. Other smaller countries (less than 30 million inhabitants) from Northern Europe and Southeast Asia also fare well. Garelli says that smaller countries have the “capacity to be more resilient and rebound” in a difficult economic climate. He says this can be attributed to the fact that many such countries have already undergone quite severe financial and real estate crises in the not so distant past and may have been
more cautious in their policies. On the other hand, he says that larger countries generally have more difficulty in “bouncing back” quickly due to the to intensive effort required to reform their economic system and implement new policies and framework measures. Qatar and Chile are two smaller countries that Garelli says are performing well and display the advantages of a small, but robust economy in which to confront the crisis. Despite finishing first in the overall WCY rankings, the United States finishes 28th, underlining the concern of the market with the depth of the crisis and the time that it will take to solve it. Between the 18th and 30th positions comes the group of larger exporting nations lead by China (18th), which includes Taiwan (21st), Brazil (22nd), Germany (24th), Japan (26th) and Korea (29th). However, Garelli highlights that the Chinese economy has taken a paradigm shift away from the reliance of the export market in favour of developing its domestic market. “China is investing massively in its infrastructure, and I think all the stimulus packages that we are seeing in China are
really directed at domestic consumption and investment,” he claims. Ireland (25th) could have been higher in terms of resilience, but the suddenness and magnitude of the real estate and the financial crisis have probably taken the country aback. The United Kingdom (34th) is in a disquieting position; as is France (44th), Italy (47th) and Spain (50th), stressing how much the recovery in these countries may be hampered by structural rigidities. Finally, Russia, in 51st position, may not have had enough years of economic growth to consolidate the structure of its economy to create the necessary buffer to cope with a crisis of this magnitude. In short, Garelli says the Stress Test shows that smaller nations, which are export-oriented, resilient and with stable socio-political environments are better equipped to benefit immediately from the recovery. However, he maintains that only the good performance of the very large exporters such as the United States, Germany, China or Japan will send a credible message to the world that the worst is over – a change that everybody will be able to believe in. JULY 2009
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Competitiveness, sustainability and business responsibility, are the fabric of a successful economy. However, in a truly healthy economy such framework measures cannot just be implemented, they must be actively exercised in a cohesive environment. Kelly Lewis investigates how Qatar is shaping its economic future.
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n the aftermath of the global economic crisis as individual economies tally their losses and lick their wounds, it has come to light that Qatar’s economy, while robust in comparison to some, is facing some major structural challenges. Speaking at the Third Qatar Economic Forum last month, Dr Ibrahim B Ibrahim, the secretary-general of the General Secretariat for Developmental Planning and economic advisor to Qatar’s H H the Emir Sheikh Hamad bin Khalifa Al Thani, outlined Qatar’s future economic vision and its challenges arising from the economic downturn. Highlighting one of the key obstacles that Qatar needs to overcome in regard to its labour force, Ibrahim said, “Qatar is facing an important challenge [to combat the rising number of unskilled migrant workers] it’s a phenomenon that is intensifying and needs to be tackled.” Qatar’s spike in economic activity over the past five years — in particular, the rapid increase in large-scale domestic infrastructure, and investment projects and rising government expenditure — has propelled the unsustainable rate at which Qatar’s national-to-expatriate population ratio has grown. This has come about as a direct consequence of mainly private sector companies, which have recruited mass numbers of ‘cheap’ foreign unskilled workers in order to fill the human resource gap that exists in the Qatari market. However, while there are long-term measures being implemented to combat this issue, there remains an immediate deficiency in both the skilled and non-skilled Qatari national labour market. Drawing attention to the vast imbalance in Qatar’s demographic structure, Ibrahim said the ratio of foreign migrants to Qatari national workers stands at a staggering 92 percent, with the majority populous being male and under educated. “Many of Qatar’s migrant workers are not properly educated — 28 percent of these workers don’t even have a primary education diploma and only a small percentage have obtained a secondary education certificate — males also account for 90 percent of all migrant workers, which is a gender imbalance that is far too high,” stated Ibrahim. JULY 2009
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“Qatar’s national vision requires liquidity, but still we need to put limits on the rapid movement of migrant workers in our markets if we want to actively improve the situation. However, we can’t simply do this in just a few years; it needs to be a long-term objective. “Additionally, while this growth [in unskilled workers] has amplified the ready workforce, it has also undermined the overall quality of the labour market and that’s why we need to launch a development process that is both positive and favourable for Qatar. “The State of Qatar should not promote rapid development that is not well targeted. We are currently facing problems with rapid and non-targeted growth — there are projects that have been implemented that are not related to our economy, its capacity and its infrastructure, nor have they been designed in line with available materials and resources.” In order to have an economy that is sophisticated, flexible, supports competitiveness and market freedom, it is imperative that the public and private sector work in cooperation to achieve socio-economic development, increased production, public welfare, improved standards of living, and provide job opportunities in accordance with the provision of the law. However, as Ibrahim pointed out in his address, the private sector is “profit led” and “needs to do better” with the essential role it plays in supporting initiatives that promote sustainable development. But, it goes beyond this issue to a matter of broad corporate and social responsibility. Why? Because the composition of Qatar’s population will determine the nature and cohesiveness of its society, and shape its future generation. Qatar must define the size of its expatriate workforce by both market and societal needs. It must weigh the consequences of recruiting unskilled expatriate workers in terms of their cultural rights, housing and public service needs, as well as the ethnic and social implications and the potential corrosion of national identity, against the short-term economic gains that accrue from an increase in the
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“Almost 50 percent of the GCC’s population is under the age of 25. On the employment front, this could be a boom. If such manpower is employed suitably it will accelerate growth significantly. Therefore in years to come, creating job opportunities to such a young and rapidly growing population is a major challenge.” Maha Al-Ghunaim, chairperson of Global Investment House, Kuwait.
numbers of foreign workers in the overall labour force. Despite this, Qatar is seeking to ‘diversify’ its economic output and further steps to enhance skills, workplace training and support for entrepreneurs. Both expatriates and Qatari nationals, will be needed to cultivate new opportunities, especially in small and medium-scale enterprises. However, these issues of human capital, its supply and demand stretch beyond Qatar’s borders and into the broader Arab landscape. The Middle East and North Africa have experienced exceptional rates of development over the last few years. Record high levels of liquidity in the Gulf have amplified public spending, re-investment and foreign direct investment (FDI) outflow to many Arab countries such as Egypt, Jordan and Tunisia. This FDI has filtered into numerous sectors that have since prospered, including tourism, real estate, construction and financial services, and these sectors have become the main vehicles for growth, generating vast employment opportunities for people throughout the region at all levels. The region’s budding economy has therefore created an obvious demand for skilled and qualified labour. However, increased pressures on the demand for a skilled national workforce have only further revealed the scarcity of its supply. This gap between supply and demand is further exacerbated by the fact that a significant proportion of the population is under age 30, which has cast into spotlight the weaknesses that exist in the region’s education systems; in its ability to anticipate market needs, supply relevant skills and provide essential training.
COVER SECTION STORY
Two recent reports: The Arab Human Capital Challenge (compiled by Pricewaterhouse Coopers for the Mohammed bin Rashid Al Maktoum Foundation) and Responsible Competitiveness in the Arab World 2009 (compiled by Account Ability and Sustainability Excellence Arabia in association with the Arab Sustainability Leadership Group) highlight key issues, but also policies and practices that can provide sustainable development in the Arab world, and build competitive advantage in global markets. The Arab Human Capital Challenge includes commentary and insight from 587 CEOs across 18 Arab countries and Responsible Competitiveness in the Arab World 2009 comprises information gathered from 15 Arab countries. Collectively, they demonstrate that the region’s economic growth over the last decade has not coincided with equally buoyant labour and human resource development. Therefore, the reports explain that solid and durable regionwide development will only persist if concrete measures are swiftly introduced.
“We need to move away from the theoretical education that we have in our universities now, towards more practical curricula, that are linked to the needs of the private sector.”
Dr Abdul Malik Al Jaber, vice chairman and CEO, Palestine Telecommunications Company, Palestine.
Key findings of both reports highlight that workplace skills, including communication, teamwork, analytical skills and innovative thinking are lacking, most prominently in the Gulf. Further, sourcing adequate quantities of national skilled labour and the integration of women into the workforce continues to be the greatest strategic challenge facing Arab businesses. This challenge is most notable in the Gulf region and must be vigilantly managed. Rectifying the mismatch between education and workplace needs has been identified as an essential strategy in bridging the skills gap, while improved teacher training was also underscored as a top priority in this regard. Additionally, given the urgency of the situation, the reports outline the readiness of Arab business leaders to participate in the enhancement of education mechanisms at all levels — collectively they express a strong desire to increase dialogue and participation between public and private sectors. The reports establish several areas of interest, but highlight a reoccurring theme: the need for government to provide the private sector with incentives to invest in human capital, especially in terms of training.
“Vocational training is very weak in teaching the required skills by the private sector.” Fadi Ghandour, president and CEO, Aramex, Jordan.
The analysis also acknowledges the requirement to establish an educational path that will not only identify current and future market needs, but also foster a clear and transitional pathway to directly connect graduates with employers, and seek to retain their skills for the long-term future. Overall, the research clearly and very boldly demonstrates that without concrete changes today, regional growth and development could be severely hindered.
EMPLOYMENT TRENDS ARE NOT WOMEN AND YOUTH FRIENDLY
Therefore, it is evident that employment creation is a major challenge in the region, especially for young people and females as they move towards entry into the labour market. Increasing national labour force participation and the integration of women into the workforce are major challenges faced by Arab business leaders.
“We would like to employ female workers, but are unable to do so because of constraints imposed on employers in relation to logistical issues, special entrance, seating arrangements and separation making it harder to in fact hire females.” Salah A Al-Afaliq, managing director and CEO, National Trigeneration CHP Company, Saudi Arabia.
- Integrating Arab women into the workforce is a strategic challenge for the GCC. -
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The failure to make improvements could result in both a social and economic cost to the region in terms of the loss in potential human capital utilisation and returns from education. Several Arab business leaders have highlighted this concern. Additionally, more than 90 percent of Arab CEOs believe that increasing female education will have a positive effect on the Arab world by enhancing the human capital value of women in the region. An overwhelming majority of business leaders believe in increasing female education, even in countries with very low levels of female workforce participation such as Saudi Arabia. Compounding this dilemma is the fact that the Arab world also has one of the lowest labour productivity growth rates. This is a serious concern for many in the business community, especially as the region is striving for greater participation in the global economy.
“Women are very important, they account for 50 percent of the population. In some countries, when you realise that 50 percent of the population is paralysed because they are women, it is a big deficiency for the economies.” Moncef Mzabi, chairman and CEO, Mzabi Group, Tunisia.
WORKFORCE COMPOSITION
The lack of skilled nationals in the Gulf region combined with rapidly diversifying individual economies has forced many Gulf business leaders to hire expatriates in order to realise their development needs — 91 percent of Gulf CEOs claim to depend on the recruitment of expatriates to fill key positions. A mere 14 percent of CEOs from the UAE and 12 percent of CEOs from Bahrain expressed satisfaction in the sufficient supply of skilled nationals. While Kuwaiti CEOs ranked highest at just 29 percent in terms of their satisfaction in the supply of skilled nationals, results for the Gulf region as a whole demonstrated low confidence levels. Furthermore, survey results reveal 97 percent of Qatari CEOs, 94 percent of UAE CEOs and 85 percent of Kuwaiti CEOs interviewed are dependent on the recruitment of expatriates. These findings would explain the high population growth rates throughout the Gulf, a phenomenon largely attributed to the vast influx of foreign workers.
- Qatar' s reliance on unskilled imigrant workers has undermined the overall quality of its labour market. -
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NATIONAL VS. EXPATRIATE WORKFORCE
In their survey participation, Arab CEOs were also asked to assess the quality of their expatriate and national workforces, with a close examination of productivity and efficiency at different levels. Findings reveal 90 percent of Gulf CEOs value their expatriate senior management, in comparison to only 68 percent sharing similar views towards their national senior management. Equally, only 55 percent of Gulf CEOs expressed satisfaction in the quality of their national middle managers. While on the other hand, 92 percent felt that the quality of their expatriate middle management workforce was of a high standard.
NATIONALISATION OF LABOUR FORCE AND REDUCING RELIANCE ON EXPATRIATES
The reports clearly identify rising unemployment rates among nationals and the need to increase the human capital contribution of the national workforce as the reasoning behind nationalisation policies, which many Arab governments have instigated. However, while these policies were designed to increase the labour force participation and productivity of nationals across various sectors, and level-out the national to expatriate worker ratio, survey results confirm that these policies have not, as anticipated, been fruitful. In stark contrast, Gulf business leaders have been reluctant to replace skilled expatriate workers with nationals due to the human capital wealth that expatriates exercise through their quality, productivity and efficiency. These same CEOs would rather avoid replacing an already efficient expatriate human resource base, with potentially less productive national resources. Of greater concern, according to the reports, is whether such perceptions will ultimately change over time. This is due to the large proportion of CEOs, who perceive the gap in both skills and education to be a serious threat to growth going forward. Most CEOs felt that these issues were not being adequately addressed saying the existing education system was not producing suitably skilled graduates.
“The notion of labour quotas and the nationalisation policy is having a very negative effect, for the simple reason that the supply of expertise does not match what the industry requires.” Hussam Abu Issa, vice chairman and COO, Salam International Investments, Qatar.
RISING COSTS OF SKILLED LABOUR
However, while skilled expatriates directly contribute to the quality and future strength of the workforce, it does not come without cost. According to the research, a majority of Arab CEOs believe the associated costs of recruiting skilled labour will rise significantly in the coming years, particularly in the Gulf region.
“It is better to hire more from the Arab expatriates’ pool of neighbouring countries than hiring other non-Arab expatriates, who may come cheaper, but are unable to adjust to the Arab culture, or influence it.” Jamal Al Mutarreb, CEO, Al Mutarreb Enterprises Group, Yemen.
Rising wages can in part be attributed to the continued growth and subsequent demand for skills, which have outstripped supply, most of which are imported. The recruitment of professionals from foreign countries has therefore encouraged the introduction of higher remunerative packages in order to attract workers. Moreover, soaring house prices, coupled with the rising cost of living, have forced companies to raise staff wages in order to retain staff. Subsequently, in an environment where skilled labour growth and competition is high, it places a huge strain on the economy to keep pace. Undoubtedly though, continued demand is likely to fuel expatriate wage increases (and associated employment packages) in order to drive Gulf economies forward.
Ultimately, the reports find that CEOs do not perceive compulsory national labour quotas to be particularly beneficial. Only 29 percent of Gulf CEOs believe that imposing such compulsory quotas will ultimately enhance their company’s current performance. Likewise, 41 percent believe these quotas will benefit the economy. Furthermore, that past labour nationalisation initiatives have been supply driven, with quotas on hiring nationals historically enforced irrespective of industry demand. Unfortunately, this trend has led to a national workforce that is not equipped with core private sector skills, in turn leading to the continued preference of recruiting expatriates. JULY 2009
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SPECIAL FINANCE FEATURE SECTION
Regulation
Nation Priya Lorraine Dominica D’Souza investigates how Qatar cushioned its banking system against the effects of the global monetary meltdown.
- His Excellency Yousef Hussain Kamal, minister of Finance, Qatar. -
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larm bells rang throughout Qatar when reports of several leading banks in the USA, the world’s largest economy, waltzed into a dangerous derivatives dance late last year. So enormous were the stakes in the shocking money-soaking gamble that the entire global financial system was literally brought to its knees. With a regulatory system acknowledged as one of the best in the region, Qatar was quick to launch an assessment of its own banks, since banking and financial institutions are known to have closer working relations with their counterparts all over the world. This action was particularly important due to some local banks’ involvement in the tragic derivatives racket, many of which were not immune to this global monetary malaise. Banks are known to park their surpluses in what they believe are safer investment avenues overseas and it is natural for any entity to have some exposure to stocks, derivatives and options. Luckily for Qatar, none of its banks were reportedly involved in the derivatives gamble, with or without a foreign partner.
Instead, their investments locally were sizable and their exposure to Qatari stocks was found to be huge. The Qatar Investment Authority (QIA), the country’s sovereign wealth fund, which has assets close to an incredible US$60 billion, commands respect worldwide for its prudent investment decisions and hard bargaining skills. Via the QIA, Qatar first decided to buy 10 to 20 percent of the share capital of local banks, thus releasing billions of riyals into the country’s banking system. To further offset their book value losses, the state decided to buy their entire stock portfolios on the Doha Securities Market (DSM), the Qatari bourse. As shares here plummeted to their nadir in the aftermath of the global financial crisis, the local banks saw their investments on the DSM shrink dangerously. At the same time, a yawning liquidity crunch forced local banks to be cautious with cash. This effected their lending activity, which is the backbone of the banking business. Defaults grew as the banks realised their exposure to consumer lending, mortgages and the now-vulnerable real estate sector were huge, though within the limits prescribed by the regulators, the Qatar Central Bank (QCB). The accent was therefore instantly on recovery. Job layoffs by some companies aiming to cut corners in these difficult times made matters worse as many of those employees were retrenched in the mire of instability, owing the banks huge sums in terms of outstanding loans. Many of the cases were referred to the court, which tends to take a lenient view of personal loan defaults on humanitarian grounds and seldom jails an erring borrower. Real estate borrowers that took bank loans to build properties for rental income, were in no position to service a debt efficiently, due to the sector being in the dumps post-recession. Thus, demand for housing reached a record low amidst increasing supply. Hundreds of newly built apartment buildings stand majestically in busy residential localities in and around Doha, all of them desperate to welcome tenants, but there are few takers as these are mostly high-end properties. On the other hand, demand still exists for medium-end housing where supplies remain extremely low – it’s a vicious cycle. However, the propping-up of the banking industry by the state did yield the desired results, with many banks heaving a big sigh JULY 2009
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SECTION FINANCE FEATURE SPECIAL
Via QIA, Qatar first decided to buy 10 to 20 percent of the share capital of local banks, thus releasing billions of riyals into the country’s banking system. Priya Lorraine Dominica D’Souza.
of relief and relaxing rules to continue their lending activity. While they can’t be expected to be as liberal in lending as they were during the glory days of easy liquidity, they can at least lend to the core and trusted sectors. The QCB is a strict regulator, with rules that prevent banks from lending more than 15 percent of their total advances to the real estate sector. Yet, the situation is so critical that if real estate slumps by more than 50 percent there could be a very real problem. “Up to 40 percent decline is absorbable,” claims a source. Islamic banks have a flair for real estate exposure due to compulsions of dealing with Shariah-compliant entities, but being the skillful money managers they are, they continue to stay clear of risky investments. Having helped the local banks to consolidate their balance sheets, the government has given them a fair chance to buy back their share portfolios at a future date at old prices. The state is known to be protective about its small, close-knit banking industry. For example, QR100 million was given away in a loan deal to Al Ahli Bank several years ago when it was battling a crisis. A strict watch over the banking system became imperative as a post 9/11 vigil was mounted to ensure no money laundering attempts succeeded. The system was made so strict that exchange houses, which together remit expatriates’ savings overseas believably in excess of US$1 billion annually, were also asked to keep a close track of customers. With technological innovations, it is now easy for banks to track disbursements of personal loans. They can tell, for instance, whether an applicant is or isn’t a previous defaulter. There is reportedly a software mechanism with the QCB that the banks can access to gain previous repayment records of potential borrowers. Freshly-arrived foreign workers stand little chance these days of accessing a bank loan, but they can still get a car loan due to the collateral aspect. Many banks have burnt their fingers during the bygone days of high liquidity when they lent to new-comers in high salary brackets and were left cheated as defaults grew with many having fled the country. Doha Bank, for instance, has a strict lending policy as a huge 96 percent of its personal lending portfolio is exposed to nationals. They can’t run away, and in the case of default, the court can at least order liquidation of a borrower’s assets. Corporate lending and overdraft facilities for businesses are relatively safer propositions for banks, as there are collaterals and letters of credit to back up transactions. It’s common knowledge that the banking sector’s profits in Qatar are largely a function of the performance of the national economy. 34
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If the profits were affected a bit at the end of last year, when the global recession began gripping the market in its vicelike tentacles, it was thanks to the income of some banks where investments fell. In a few cases, banks had to increase provisioning for bad loans. Qatar’s economy, according to Qatar National Bank (QNB) estimates, is expected to grow 26 percent in the current year and nominal gross domestic product (GDP) is likely to cross the US$106 billion-mark. Qatar is also tipped to have one of the highest per capita incomes in the world at over US$63,000 by the year-end, as per QNB estimates. The economy’s growth basically originates from the fastexpanding and vibrant liquefied natural gas (LNG) industry. Current production is around 33 million tonnes a year and the figure is set to more than double in a couple of years to 77 million tonnes. This means that revenues from gas would increase over twofold by 2011-12, making Qatar’s economy more widespread and vibrant than ever. The current budgetary deficit (fiscal year 2009-10) of QR5.8 billion, according to economists, is negligible as oil prices in the international markets are likely to remain at US$50 per barrel or more by the year-end. Qatar has based its budget on an oil price of US$40 per barrel and that was how the deficit was estimated. This means that by the end of the current year, the deficit should vanish, yielding in its wake a surprise surplus. The banks can therefore sit pretty as the national economy is set to make giant strides in the years to come.
- Local bank's investments on the DSM shrank dangerously. -
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SPECIAL REPORT
Qatar:
Stage Set For Telco Tussle The lines have been drawn for the fight to win the hearts, minds and subscriptions of Qatar’s phone users, with long time monopoly rights holder Qatar Telecommunications (Qtel) about to face off against newcomer Vodafone Qatar. By Daniel Moore, Oxford Business Group editorial manager, Qatar. Report Provided by:
V
odafone, along with its local partner the Qatar Foundation – a non-profit organisation established in 1995 by H H the Emir Sheikh Hamad bin Khalifa Al Thani to promote technology, education, health and culture – won the bid with an offer of US$2.1 billion, beating six other suitors. In December, the partnership was also granted the licence to operate Qatar’s second landline service, marking the end of Qtel’s monopoly in the sector and the beginning of a fully fledged two-horse race in the country’s telecoms industry. Nevertheless, Vodafone will have a fight on its hands to topple Qtel as the leading mobile service provider, as the incumbent currently has a penetration rate of more than 120 percent. The new entrant to the marketplace will have to undermine Qtel’s position of strength with a combination of a better service mix, lower tariffs and hard-sell promotion. Vodafone’s cause will be helped by having the appeal of the new, the high turnover of expatriate workers in Qatar and a growing domestic and foreign population that provides an expanding subscriber base. With Qatar’s economy expected to grow by around 17 percent this year, according to the IMF’s latest projections, demand for telecoms services should also increase as the business community expands. As an indicator of the potential for growth, Qtel reported a 33.1 percent increase in its mobile subscriber numbers for 2008, giving
it a customer base of 1.683 million. Though the market may appear saturated, it is clear there is a demand for multiple handset ownership and subscriptions; a demand Vodafone hopes to tap into. There is no question that there is interest in the new service provider, with Vodafone Qatar’s initial public offering (IPO), held - Daniel Moore, OBG, Qatar. between April 12 and 26, raising US$1 billion The IPO saw 82,000 individual Qatari investors and 273 institutional investors buy stakes in the company, a result that Grahame Maher, the chief executive officer of Vodafone Qatar, described as “amazing”. “In any other country in the world this wouldn’t be possible. Qatar has again demonstrated that it’s the leading global economy with this very strong and successful result,” he said on May 3. While Vodafone has been touting its successes, it has also had to contend with some disappointments as well, which have handed Qtel an advantage in the early exchanges between the two rivals. JULY 2009
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The company was scheduled to launch services in March, but this was put back until June, with the Supreme Council for Information and Communication Technology (ictQatar) revising the terms of Vodafone’s licencing agreement in April, giving it until September 1 to establish coverage over 98 percent of the country. The postponement was requested due to what Vodafone described as “unforeseen delays,” mainly attributed to postponements in acquiring base stations. While its monopoly at home is coming to an end, Qtel is ramping up efforts to expand its own revenue and subscriber base. In early June, the company announced that its Omani unit Qatari Telecommunications Company (Nawras), had been granted a first-class fixed-line licence for a 25-year term by the government of Oman. Active in the Omani market since 2005, Nawras has built its subscriber base for its GSM services to 1.6 million, more than 45 percent of the national total. H E Sheikh Abdullah bin Mohammed bin Saud Al Thani, the Qtel’s chairman, heralded the winning of the new licence as a historic moment for the company, saying it would help it, “provide the widest possible portfolio of world-class communication solutions”. Qtel is also looking further afield for investment opportunities. At the beginning of June, local media quoted H H the Emir Sheikh Al Thani as saying Qtel was also interested in acquiring a stake in Morocco’s telecoms operator Meditel, being offered by Spain’s Telefonica, which owns 32.2 percent of the Moroccan service provider. Based on current share prices, the deal could be worth around US$600 million. At home, Qtel is also responding to Vodafone’s challenge by wheeling out new services and improving existing ones. In mid-May, the company announced it had doubled the speed of its broadband services at no extra cost to subscribers as part of an upgrade of its Internet operations. Not only does the improved service solve some of the previous issues with speed and connectivity, but it raises the bar for Vodafone when it rolls out its landline and Internet services. 38
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To support its expansion and fund its services upgrades, Qtel has entered the bond market. In early June, the company launched an unsecured note issue valued at US$1.5 billion to be used for general corporate purposes, including refinancing existing indebtedness. Possibly reflecting the overall strength of the company at home and abroad, the notes – the first telecoms bond issue by a member of the Gulf Cooperation Council – attracted US$13 billion worth of orders. “This is a testament of the global investor confidence in our strategy, financial strength and of Qatar’s strong economic fundamentals,” said H H the Emir Sheikh Al Thani. In the coming months, Vodafone will hope to test that strategy and financial strength, and to a degree is already doing so. Though still testing its mobile network, offering a limited service to a trial group of subscribers, Vodafone is already competing with Qtel through the media and promotional activities. On May 22, Vodafone staged an event at the Doha Ritz Carlton Hotel to mark the successful completion of training courses by some of its staff. From having senior managers enter the hall riding on camels to employees releasing balloons bearing the slogan “Bye Bye Qtel, Hello Vodafone”, the gathering appeared to be a high-profile challenge to the opposition. Perhaps unused to competition in the domestic market, especially of the sort served up by its rival, Qtel hit back, accusing Vodafone of negative campaigning that was contrary to the traditional business culture of Qatar. “Although Qtel has welcomed the new entrant, based on its support for the liberalisation of the communications sector for the benefit of the country and customers, the company was surprised at the statements and slogans made by the competitor. Qtel has pledged to avoid resorting to such tactics, which surprised and offended a large section of the community,” the company said in a statement issued on May 23. Therefore, the stage is set for a tussle in the Qatari telecoms sector – a competition between the well-established titleholder and a lively challenger.
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Doha:
the 21st century urban agenda A global shift is underway in the criteria we judge our cities by as we move into the 21st Century, as traditional measures of success are gradually replaced by humanitarian considerations. Edward Jameson treads the path of Doha going forward, and asks, are we prepared for a different tomorrow?
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uccess based on size, scale and position in the destination hierarchy has been heavily tempered by attributes of physical and virtual connectivity, creativity, quality of life and environmental sustainability, which are leading the 21st Century urban agenda.” Wise words indeed, but unfortunately, not my own. The above was buried deep within the Jones Lang Laselle report, Doha: Global Ambition, Regional Influence. It may be a prediction, an opinion as opposed to definitive fact, but it offers a fascinating glimpse into the changing criteria by which the cities we build today may be judged tomorrow. Qatar, typical of many of the Gulf countries, is a nation marching towards tomorrow, walking to the frantic beat of Doha’s developmental drum. Driven by a need to diversify its hydrocarbon economy, the state has ploughed on with mild indifference to the scathing recessional winds that have reaped havoc across many parts of the globe. The utopian view of the shifting criteria referred to in Doha: Global Ambition, Regional Influence is the creation of a post-modern Middle Eastern landscape; one in which environmentally sustainable sectors will fuel economies, ranking in importance alongside the sweat and toil of the oil and gas industries. Deals will be driven by financial institutions, carried by virtual connectivity, and done at the click of a mouse. Creativity, quality of life and education will flourish, and residents and expats alike in Qatar will carry the city onto the global stage. Whether Qatar is ready to seize such opportunity going forward, however, is a matter for debate.
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Education
A maturing market
In today’s Doha, real estate is a major market driver. Though property prices have slipped around 30 percent in the past six months, there is a firm belief that the market has not been hit as hard by the panic driven, smash-and-grab actions of real estate flippers as other emerging markets have been. Nick Witty, Qatar country manager at real estate advisory firm DTZ, which published its second market report on Qatar at the start of June, concurs. “There has been very limited transactional evidence since the middle of 2008 to benchmark current pricing,” he says. “We do not expect prices in Qatar to reduce significantly due to limited speculation activity in the market in comparison to places such as Dubai.” Yet in the long run, a correction is a necessary stepping stone on the path to sustainable growth and market maturity, and it is such a future for which Qatar is now preparing.
On the outskirts of Doha, the 14km2 Education City continues to rise. The focus is on preparing students to excel within fields that are considered critical to the growth of the GCC nations over the coming years. A number of top US universities have branch campuses at Education City. Programmes are offered in diverse fields from fine arts, fashion design and medicine, to chemical, electrical and petroleum engineering. One establishment, Weill Cornell Medical College Qatar, offers the same degree as Cornell University in the US, an Ivy League institution. “The uniqueness of Qatar in the region is this very point – the campuses of Education City are part of American universities that offer home based degrees, not a local or regional equivalent,” says director of public affairs Michael Vertigans. Education is the model sustainable sector Doha has built the facilities to attract the next generation of medical professionals from all over the world to train their surgeons’ hands within its city limits. Doha built it – and the students came in their droves. “Before entering pre-medical students, especially Qataris, can join a foundation year program, designed to assist their development,” Vertigans says. “We had a total of 239 students at the beginning of the last academic year, who represented more than 34 nationalities from across the globe.”
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Culture
The nation, and in particular the capital, has also made good on its word to provide a much needed burst of culture to a region where many feel such amenities are lacking. Designed by legendary architect IM Pei, who already has the glass pyramid at the Lourve in his considerable portfolio, the Museum of Islamic Art opened its doors last November, and instantly became one of the city’s iconic images.
- Doha is supporting initiatives to position itself as a cultural hub. -
Sport
Although factors such as the climate provide a natural barrier to the nation’s sporting development, the government has not allowed such flippancies to stand in the way of its ambitions. Doha became the first Arabic speaking city to bid for the Olympics this year, when it presented its claim to host the 2016 games. Unfortunately, for the aforementioned reason of climate, the Olympics were not to be for the city – at least not this time. Next on the wish list is the FIFA football World Cup, which the city is bidding to host in 2022. Qatar 2022 CEO Hassan Al-Thawadi does not understate what it would mean to Doha to bring the biggest sporting tournament on the planet to the Arab world for the first time. “We are serious about winning the right to host the FIFA World Cup,” he says. “We are offering FIFA an incredible event, with not just a tremendous football legacy, but also a legacy for humanity.”
Media
By regional standards, Doha remains something of a shining light in the field of media development. The city is home to Al Jazeera, the region’s highly respected home-grown news agency, and the Doha Centre for Media Freedom, which officially opened its doors in October last year. The latter has already displayed its tendency to test libertarian boundaries. Tension brewed earlier this year between the centre’s directorgeneral Robert Menard and sections of the local media. Some editors had difficulty reconciling a vocal movement towards media freedom headed by the Frenchman, who was not afraid to voice his displeasure towards government, with the more submissive professional traditions they had been adopting for years. 42
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However, the continued presence of the centre in Doha, progressive mandate not withstanding, is evidence alone of the city’s willingness to evolve towards the utopian view of Doha: Global Ambition, Regional Influence. So what does this mean going forward?
Past, present and future
If the evolution of a city is defined as a continuous thread, then the recent past offers a window into the future. Further, Doha is putting in place the social, cultural and economic building blocks necessary to evolve along its desired direction. And when alarm bells were raised, the state moved to pacify them. The growing number of unskilled migrant workers across the country was highlighted as a problem by Dr Ibrahim B Ibrahim, the economic advisor to H H the Emir Sheikh Hamad bin Khalifa Al Thani. Making his speech at the 3rd Qatar Economic Forum in Doha, Ibrahim also touched on the lack of Qatari national women in the workforce.
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We need to tackle this situation... we cannot depend on the unskilled migrant workers forever... Dr Ibrahim B Ibrahim.
- Doha is making inroads with its economic diversification plans. -
“We need to tackle this situation...we cannot depend on the unskilled migrant workers forever, a majority of whom do not have even secondary education” he said. That is why schooling – the infrastructure for which the nation is building at Education City – is so vital for the nation going forward. Qatar, gratefully, is able to blaze a trail through its developmental goals through the reinvestment of its vast pools of hydrocarbon income. Last December, the nation’s oil reserves were listed at 25.9 billion barrels. The last five years has seen an average production of 800,000 barrels per day. At this rate, proven reserves would last another 89 years. In terms of natural gas reserves, the picture is even more encouraging. According to the Qatar Economic Review published last month by Doha-based financial advisory service QNB Capital, proven reserves in Qatar’s North Gas Field stand at 902 trillion cubic feet, enough to support planned production of natural gas for the next 200 years. The reinvestment of the state’s natural gas riyals into sustainable sectors is an encouraging sign of things to come, and projects the long term vision of the government in a distinctly reassuring light.
- The State of Qatar is investing heavily in key transportation sectors. -
All aboard
Looking ahead, the growing population has also led to plans being enacted for a public transport network. Detailed plans for an underground metro system were submitted to the government at the beginning of the year, and indications are that the contract could be tendered before the end of this year. Meanwhile, as an indication of where the industry is heading, Barwa and state-backed development giant, Qatari Diar, have set-up a construction research unit at Qatar Science and Technology Park. The institute will focus on sustainability systems, the desert climate, building design and analysis, and low-energy construction solutions. All of which ties in with Qatar’s transition towards its forthcoming green building regulations, known as the Qatari Sustainability Assessment System, which take into account, among other factors – culture. The socio-economic future of Qatar is sprouting from the Middle Eastern sands, with the centre of activity swirling around the sun-burned urban framework of Doha. The socio-cultural evolution of Qatar, however, knows no such boundaries, and is spreading the length of the peninsula, fuelled by the necessity to prepare for the future, and tinged by a will to respect the past. Welcome to the new Doha, where physical and virtual connectivity, creativity, quality of life and environmental sustainability may one day have an equal claim to the fabric of the nation as the hydrocarbons on which it is built. JULY 2009
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BUSINESS VIEW - REAL ESTATE
es k oo edd b r In this, my first monthly column, I will address some of the real estate and property-related issues in Qatar, which concern many of us.
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n view of the anticipated influx of expatriates, which traditionally occurs in the months from August and September, I have devoted this article to giving some advice to those seeking to rent or purchase residential property within Doha. Real estate in Doha is an emerging market and the recent construction boom has led to an eclectic mix of apartments, townhouses and villas sprouting in various districts. For someone new or unfamiliar with the market, looking for an ideal property to lease or purchase is analogous to trying to fit different pieces of a jigsaw puzzle without knowing where to start. Dealing with brokers can result in some bad experiences and so I thought I would set out some of the do’s and don’ts for leasing or purchasing a property in Doha. The residential market is currently undergoing substantial restructuring as additional pipeline supply comes onto the market and older residential districts such as Musheireb are set to be regenerated in the coming years. In addition, new residential districts are being developed both to the North (Al Khor) and South (Al Wakra/Al Wakeer) of Doha to provide better quality housing and facilities. The three prime residential districts in Doha, include the Diplomatic Area (prominently apartment accommodation), West Bay (largely stand alone villas) and Al Waab (combining a mix of apartments and villa compounds). Other areas such as Ain Khalid (to the South of Whole Sale Markets junction on Salwa Road) and Al Saad are also becoming increasingly popular with a range of apartment and compound accommodation to suit most requirements. Rent can vary substantially within these areas and the tables on the following pages show likely quoting rents in various locales. The above prices are for furnished property, although unfurnished property tends to be on average 12 percent cheaper. My personal view, despite the substantial amount of pipeline residential accommodation to come onto the market throughout the next 12 months, is that prices will perhaps soften slightly, but there will be no massive reduction of rents, which is often quoted (without any sources) in the local media. Certainly lease terms are becoming less onerous and many landlords will now consider one year or even six months leases as opposed to the standard practice of two or even three years, which was common 12 months ago. JULY 2009
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ng i eas L Do’s •
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The quality of properties varies substantially in different areas. It is always good to make a personal trip to view the property to inspect the type of building finishes, interior furnishing and fixtures that will be provided as an unfurnished, semi-furnished or fully furnished property. Register lease contracts with the Doha Municipality, so that any disputes arising from the leasing agreement can be resolved through the Committee for Solving Rental Disputes. Check for hidden costs such as agent commission fees, maintenance fees and utilities charges before signing a lease contract. The fees, depending on what is agreed between the landlord and tenant, may or may not be included the month’s rent. Ensure that the termination clause of the lease contract is mutually agreed by both the landlord and tenant. Have a reliable source to translate any Arabic terms and conditions in the lease contract to the language, with which you are comfortable. Find out if the property is specifically meant to accommodate labourers, bachelors or families only. Verify if the rent is inclusive of a service charge, electricity and water. Clarify if the water and electricity is separately metered. Inspect the property in the evening if possible – this will give you a better idea regarding the types of occupiers, traffic congestion and of course parking availability. Make sure you know who the landlord is and how you can contact them in the event of repairs and maintenance. Make an offer if you feel the rent is unreasonable. Don’t be afraid to walk away.
Don’ts • • • • •
The current lease law states that tenants do not pay more than two months’ rent as security deposit to landlords. There is no need for an upfront payment of rent for the entire leasing period. The current norm is for the issuance of post dated cheques for usually up to a year. It is not necessary to pay a leasing agent commission fees as the case is usually for the landlord to pay the agent for securing a tenant. Tenants are not allowed to sublet the property without the prior consent of the landlord. It is unreliable to depend on verbal agreements. All leasing terms and conditions should be properly documented in a proper lease contract.
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ng i as h rc u P
Recent activity by Qatar Investment Authority, includes investment in both bank stock and ring fencing property debt, which has increased local bank mortgage lending. During the first quarter of 2009, it proved testing to try and find a bank offering more than a 60 percent loan-to-value ratio, now most are offering 80 percent mortgages again – although this still of course means that purchasers have to find the remaining 20 percent, which can be difficult when equity in their main residences offshore have reduced. The predominant area to purchase property is of course the stunning Pearl development where expats can purchase freehold property although there are, of course, a further 18 districts within Doha where expats can purchase 99-year leases (usufruct tenure). When considering purchasing it is important to ensure you are fully informed in regard to any transfer taxes due by the municipality and/or the master developer (in the case of the Pearl). These transfer taxes can range from one to 2.5 percent. You should also fully satisfy your queries regarding service charges due (both for the building itself and the estate charge in the case of the Pearl). 48
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Do’s •
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Find out if the property falls under the areas that have been designated for foreign ownership. Foreigners are allowed to purchase property on a freehold basis at the Pearl, West Bay Lagoon or Urjuan. In addition, 18 usufruct areas have been designated in Doha for foreigners to purchase property on a renewable 99-year leasehold basis. Carryout a background check on the reliability of the developer, financial investor and all parties involved in the property development to ensure they have the means and integrity to deliver a project to completion, especially if you are intending to make an off-plan purchase. Check that there are clauses in the off-plan sales and purchase agreements (SPAs), which would penalise the developer for failing to deliver the property based on the stipulated time or money, which should be refunded if the property fails to be realised. Additionally, check if this penalty is limited to a set amount. Assess your own risk/return appetite for property ownership as it could be a relatively illiquid asset that requires long term financial commitment. Talk to various banks to find a mortgage loan that best suits your needs in servicing the property purchase. Consider buying a ‘resale’ rather than directly form a developer. Often prices quoted on resales are from below 25 percent or more than prices quoted by developers Check that parking spaces are included in the purchase price and clarify if they are allocated. In some developments you have to purchase them separately. Ask how the building will be managed – it could be by a management committee or by the developer.
Don’ts •
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It is unwise to speculate the market by trying to find the ‘right’ time to make a windfall gain for your property purchase. Markets go through cycles and you do not know when you will be caught in a bearish market. Property is not a short term investment and an upside is not guaranteed. Quoted prices are not the same as transactional prices. Investigate the latter as much as possible by talking to other property agents and investigating various Qatar Property Blogs (www.qatarliving.com for example). It is dubious to depend on verbal agreements. Any type of property purchase should be properly documented in a recognised sales and purchase agreement. Do not make a purchase decision based on secondary sources of information. It is always beneficial to make a personal visit to understand the property in terms of site context, demographics, building quality and interior furnishing. Do not be enticed by attractive sales promotions or discounts that encourage you to make a hasty decision regarding a property purchase. Do not agree to purchase anything until you have your funding in place and secured. Do not fly blind. When buying off-the-plan, ensure that you are aware whether your mortgage payments are linked to the developments completion date (which is likely to vary) or an actual fixed date.
To summarise, make sure the deal is right for you and you do not feel pressurised into going ahead with it. Whether buying or leasing, a reflective cooling-off period is always important and any reasonable broker/developer will understand this.
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LEGAL INSIGHT
Set-up options for foreign businesses
Foreigners, personal or corporate, wishing to conduct business in Qatar outside the QFC are subject to certain legal restrictions imposed on nonQatari parties (the Foreign Party). Primarily those restrictions are found in the Foreign Investment Law (No. (13) of 2000) and regulations issued under it, the Proxy Law (No. (25) of 2004), the Commercial Companies Law (No. (5) of 2002), Ministerial Decision No (142) of 2006 regarding the Organising of Commercial Representative Offices and the Commercial Agencies Law (No. (8) of 2002). Looked at collectively, these laws prohibit a Foreign Party from conducting business in Qatar unless they do so by way of certain approved vehicles. While various vehicles are, in theory, available in reality the most appropriate and commonly used vehicle for foreign businesses is the incorporation of an LLC in conjunction with a Qatari party (the Local Party). Other possible vehicles include establishment of a branch office, a Commercial Representative Office, a Commercial Agency arrangement or establishment in the QFC or the Qatar Science and Technology Park. Each of these options is summarised below.
Incorporation of an LLC
The most prominent aspects of incorporating an LLC are as follows: A Local Party is generally required – they can be Qatari national(s) or wholly owned Qatari company(ies). The Local Party must own a minimum of 51 percent of the shares in the new LLC. The Foreign Party can own a maximum of 49 percent of the shares. Minimum share capital is generally QR200,000. The Foreign Party’s share will generally be taxable. Where agreed by the shareholding parties, the management of the LLC can largely be conducted by the Foreign Party. Similarly, where agreed by the shareholding parties, the profits of the LLC can be split in proportions different to the shareholding proportions and which may reflect the different degrees of participation that the respective shareholders have in the management and operation of the LLC.
- Foreigners conducting business in Qatar are subject to certain legal restrictions imposed on non-Qatari parties. -
Restrictions or prohibitions may apply to certain activities, including banking, insurance, commercial agency or engineering (engineering is the subject of a separate and highly regulated regime under Law No. (19) of 2005 and its bylaws and regulations). Establishing an LLC generally takes around four to six weeks once all the necessary paperwork is prepared and translated into Arabic. It is open to a Foreign Party to apply to the minister of Business and Trade for an exemption allowing them to own up to 100 percent of the shares in companies involved in certain industries – agriculture, industry, health, education, tourism, development and utilisation of natural resources, energy and mining. Such exemptions, however, are at the discretion of the minister and are not regularly given. One other corporate set-up option that is available in limited circumstances is the creation of an ‘Article 68 Company’ (this is a reference to Article (68) of the Commercial Companies Law No. (5) of 2002). Article 68 companies are essentially joint venture arrangements owned partly by the government or a public authority in partnership with a Foreign Party.
Branch office
A Foreign Party wishing to operate in Qatar may be able to open a temporary branch office if its presence in Qatar is required to perform a specific contract that relates to a project, which facilitates the performance of a public service or utility. Generally speaking, if a Foreign Party has a contract with a Qatari government entity, this is likely to be regarded as being a contract that facilitates the performance of a public service or utility. Sub-contracts relating to that type of contract will usually also entitle a foreign sub-contractor to open a branch office. One disadvantage of a branch office is that the Foreign Party registered as a branch is only entitled to perform the contract in respect of which it is registered – this means that a branch registration will not usually be suitable for Foreign Parties wishing to conduct business for the private sector, under various contracts, in Qatar. Companies registered as branches will generally be taxable.
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Commercial Representative Office
A Commercial Representative Office (CRO) may be an option where a Foreign Party wishes only to market products and services in Qatar – essentially a ‘shop window’ operation. A CRO of a foreign company is not allowed to conduct business in Qatar e.g. provide goods or services in Qatar. A CRO is, however, permitted to form contacts with the public and private sector in Qatar in order to establish commercial relationships. A company wishing to establish a CRO must apply for permission to do so from the minister of Business and Trade.
Commercial Agency Arrangements
Foreign businesses wishing to make direct sales in Qatar without establishing an LLC, branch or other formalised business presence may be able to do so through an agency or distributorship arrangement. If such an agreement is registered at the Agents’ Registry at the Ministry of Business and Trade, the Commercial Agencies Law (No. (8) of 2002) will apply. This law allows for the appointment of a local commercial agent to market goods and services in Qatar, with commission being paid to the agent. The agent must be a Qatari national or a company wholly owned by Qatari nationals. Once appointed, it can be difficult to terminate an agency relationship and, if termination occurs, the law requires the principal to compensate the agent. Once an agency relationship is in place, it can also be difficult for the principal to set-up an LLC or some alternative formalised legal presence. 54
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Agency arrangements involving a foreign principal also need to be carefully considered to ensure they do not breach the Foreign Investment Law.
Qatar Financial Centre
The QFC is designed to attract international financial institutions and multi-national corporates to establish business operations in a ‘best-in-class’ international environment. The Qatar Financial Centre Authority (QFCA) has now licensed more than 100 firms to operate from the QFC. Firms operating within the QFC must be licensed by the QFCA and firms wishing to undertake financial services will also require authorisation from the QFC Regulatory Authority (QFCRA). Firms will additionally need to establish a legal presence by way of incorporation or be registered by the QFC Companies’ Registration Office. Financial services that may be conducted from the QFC (with appropriate QFCRA authorisation) include all types of banking, insurance, asset management, financial advisory services, securities and derivatives dealing and Islamic finance. The QFC has already attracted many of the world’s top rated banks, asset managers, insurance companies, accountancy and legal firms. Advantages of establishment in the QFC include: principle-based legislation of international standards modelled closely on that found in London and other financial centres; 100 percent foreign ownership is permitted; and tax-free holiday until 30 April 2008,
thereafter, a low tax rate on business profits of 10 percent has been proposed (still to be finalised).
Qatar Science and Technology Park (QSTP)
QSTP, part of the highly successful Qatar Foundation, offers a ‘free zone’ legal and business environment to foreign or local technology based companies and start-up enterprises. In order to set-up in the QSTP, a company’s main activity must relate to the advancement of technology. This reflects the QSTP’s primary purpose of spurring research and commercialisation in Qatar rather than providing a business park facility. For companies able to set-up in the QSTP, it offers advantages, including 100 percent foreign ownership and no payable taxes. The QSTP was formally inaugurated on March 16, 2009. In conclusion, the information above in relation to setting-up business operations in Qatar is a general overview only. In all cases, legal advice specific to the proposed new business operations should be obtained to ensure there is compliance with applicable laws. Note that this article is of a general nature only and is not legal advice and, therefore, should not be relied upon as such. Any person or entity requiring legal advice should consult a lawyer and obtain advice specific to their individual circumstances. Excerpts originally published in The Report Qatar 2009.
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ARABIAN
BEacon Qatar’s Growth into the Bastion of Global Communication By Steve Paugh, guest editorial contributor.
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efore 1995, Qatar was not known for its great strides in communication. In fact, the nation, which today stands as the quintessential example of growth and change, was then closed; its doors locked, its windows shut, unable to release its ideas into the greater ether of globalised communication. little did anyone expect that, through discovery, victory and a little bit of luck, the small peninsula that juts into the Arabian Gulf would become one of the greatest modern media beacons. The story of Qatar’s modern communication is not new. It is told in the soft hoofbeats and hushed voices of tradition, written by the hurried hand of change and circulated by the ambition of modernity. This is that story.
- Qatar has transcended its media landscape into a modern communication beacon. -
The Past, The Press and The Paradigm Shift We begin with Qatar’s former ruler, H H Sheikh Abdullah bin Jassim Al Thani. As the first internationally recognised sovereign of Qatar after the Ottoman occupation, it was his sworn duty to convey classified messages to and from his place of rule. As was tradition, H H Sheikh Abdullah often ordered his men to alight the coarse backs of camels and ride through 50 kilometers of perilous terrain to hand deliver his most important state correspondence. Known as Darb Al Saai or “the way of the Messenger,” this tradition of camel-back communication had been practiced for
years, beginning as a way for nomadic tribes to convey messages with each other, and continued during even the most trying periods of Qatar’s history. In fact, the route is still celebrated in a ceremony often performed during Qatar National Day, but it no longer holds the same dangers of yesteryear. As Moez Al-Agha, one of the key members of the National Day Organising Committe and expert of this historic camel ride said, “[H H Sheikh Abdullah’s rule] was a time of tribal wars on land and piracy and pillage at sea. It was a time that witnessed the retreat of the Ottoman Empire and the growing influence of the British Empire in the region. Interests and loyalties were shifting; conflicts and disorder were spreading anew in the the Gulf region, but H H Sheikh Abdullah, with God’s help and the support of the Qatari people, withstood these storms and momentous changes.” What rose from the embers of this fiery period was a tempered national dedication to communication. In 1969, 20-years after the rule of H H Sheikh Abdullah, the Department of Information was established in Qatar to mediate the growing level of domestic and international communication in the country. Ever the industrious go-getters, the press pre-dated this official governing body by eight years in 1961, when a printed gazette presented the latest royal decrees from H H the Emir. Throughout the years, the emirate saw the creation of other publications in printed media with the birth of newspapers such as The Gulf Times and The Penninsula, both of which still exist today. Radio followed shortly thereafter in Qatar in 1968, and flourished in a growing number of broadcast languages in the years to come. Then came the inevitable introduction of television in 1970, with a rudimentary station that broadcast only a few hours a day in black and white. With the establishment of colour television and linguallydiverse programming a decade later, Qatar was well on its way to realising its modern potential. These historic and technical innovations had a hand in the state’s transformation into a global communications player, that is beyond doubt, but they were still largely controlled by the ruling government and lacked the freedoms of other countries’ domestic broadcasters. Qatar’s true media revolution happened many years later, with the establishment of Al Jazeera.
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The Precipice of Progress The Island. The Peninsula. However you choose to translate it, Al Jazeera is the Middle East’s one and only global media communications giant and, despite its name, is anything but secluded from the rest of the wider world. In fact, since its historic launch in 1996, the channel has spread its wings across the planet. From its base right here in Doha, Al Jazeera transmits its homegrown signal to hundreds of millions of viewers, thirsty for what has become an alternative to the mainstream drivel of modern televised news. However, it is not without its detractors or bouts with controversy. It is not only one of the world’s most famous news stations, but also one of its most infamous. Its history began in 1995, when the then Crowned Prince of Qatar, H H the Emir Sheikh Hamad bin Khalifa Al Thani, took the reigns of history and overthrew his father’s rule in a bloodless coup. He was driven to galvanise his country and break its longstanding presence as an insular society by cultivating domestic interest in culture, art and media and opening its doors to growing foreign interest. The BBC was already established in Qatar, but quickly lost steam after its Saudi-based funding fizzled out. Wanting to not only fill the gap left behind by the British media outlet, but also to locally establish one worthy of Qatar’s newly realised ambitions, H H the Emir quickly picked up the shattered remains of the BBC and reformed it into the region’s first viable Arabic news station, Al Jazeera. This new creation would exemplify Qatar’s growth as an open society by establishing an idea of quality and allowing freedoms not yet realised by other television stations in the region. It was a transition that became indicative of Qatar’s grasp for global glory, and one that had a speed met only by its boldness. Its first salvo of condemnation came from neighboring states, which thought it was too open and outspoken. Even in its earliest days, Al Jazeera faced rebukes, bans, boycotts and sudden judgements, like Algeria’s government allegedly cutting the power supply, so that an indicting Al Jazeera report could not be shown. And yet, despite its many battles, Al Jazeera continued to grow, gaining notoriety,
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renown and accolades from across the vast Arab landscape. As its popularity expanded, so too did its signal. Its new approach to news in the Middle East was consumed hungrily by the multiple populations, whose world view had been skewed or blocked outright by the media control of their governments. Al Jazeera does not pull its punches when it comes to candid, hard-hitting journalism, and it is that very mentality which produces the acclaim of its audience and the ire of its critics, both of whom were growing in number. When it eventually hit the West in the late 90s, it already had a reputation for its style, but in the early days of the new millennium, it began simultaneously impressing and angering a whole new viewership. In an effort to show each side of every story and conflict, it began showing statements from Al Qaeda leaders, and shortly after that, in 2003, the ravages of the war in Iraq. Western audiences, not used to this kind of blunt and scathing exposure, immediately turned their attention. However, the reaction was not altogether negative, because three years later, Qatar’s favorite media son continued its extension across markets, countries and even languages. Thanks to growing interest, in 2006, Al Jazeera launched its English language station to accommodate its new Western audience. And so it did, better than anyone expected. Now in its third year, the 24-hour English channel is aired throughout the Middle East, Europe, Asia, Africa and the Americas reaching an impressive 100 million households. Al Jazeera English is amongst the top three largest news outlets internationally, a list which also includes heavyweights BBC World and CNN International; not bad for a station that should, by all accounts, still be taking its infant steps. In an effort to tap into new media, Al Jazeera English employs the internet to great success, with a website full of programmes and its own YouTube channel. This breadth of distribution helps the outlet reach the few countries that continue to unjustly accuse it of strengthening the voice of insurgency. Even with criticism for its objectivity, there is no denying Al Jazeera’s worth as an established
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entity, particularly considering the collection of awards it has garnered for its programmes and documentaries. The station even won the prized Golden Nymph award for Best 24 Hour News Programme in 2008. In any language, Al Jazeera has come a long way and grown meteorically from brainchild to behemoth in the span of a few years. It has played an important role in covering with aplomb some of the most volatile and pressing situations in recent years. It is instrumental in its coverage of conflicts around the Middle East region and the world, and most recently boasted the only presence by an international media outlet during the War in Gaza. Just like nearly every other TV station, they often receive a litany of negative press. Of course, as the old saying goes in this business, any press is good press.
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The Peace Precedent Qatar’s influence within the global sphere does not end with its steadfast devotion to the promotion of unbiased truth, but is also deeply invested with an equally important concept: the communication of peace. In recent years, Qatar has played an active role in not only purveying communication to the world, but also taking up a greater sense of social and political responsibility. The Doha Debates have been an institution in Qatar since 2004, and have openly addressed issues such as racial and gender equality, the separation of church and state and political transparency. The series has hosted leading thinkers in nearly every sociopolitical field and some of the highestranking politicians in the world, including Israeli President Simon Peres, former Interim Prime Minister of Iraq, Ayad Allawi, and former US President, Bill Clinton. Championing the freedom of Qatar communication, the debates are completely independent and as such, may address even the most taboo subjects, with a great sense of impunity. There are few events in the Gulf that have transmitted such a breadth of free and impartial communication as the Doha Debates, and it is a true testament to the city that it would attach its name to such a diverse intellectual showcase. Along with the debates, Qatar has, in recent years, been at the forefront of facilitating the communication of not only ideas, but also of dialogue between nations for the interchange of ideas. The country has grown into a long-fated influence,
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and has taken the lead in the communication of peace. There are many examples of Doha serving as a meeting place for peaceable discussion between warring nations or regions, but there are a few that stick out in recent memory. The first of these was in May, 2008, when Qatar’s mediation between the political factions in Lebanon led to a governmental unity and peace that has lasted to this day. The state was credited by many international agencies for “finding the needle in the haystack” that led to this much needed communication. Another example of Qatar attempting to foster communication within the Arab world was the emergency Arab League Summit held in Doha to address the most recent Israeli offensive on the Gaza strip. The summit included various governmental organisations and factions not often given a voice on the global scene, particularly the democratically elected, yet internationally decried Hamas. Over a short period, Qatar has completely changed the way it communicates both internally and to the outside world. What began as a treacherous flight against blustery winds and across hot sands is now an equally harrowing digital quest through pulsing airwaves and snaking fibre-optic cables. And yet, while technologies have changed and scopes have widened, that uniquely Qatari commitment to communication remains, and indeed motivates the nation to grow further into the waiting world, fulfilling its destiny as the one, true Arabian beacon.
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Journalists, which is to enable the viewer to see exactly what the camera lens is recording, with as little interference as possible. We will shock our viewer, but we will never conceal the reality on the ground. A diverse and wide network of reporters allowed us to break away from the strong grip of the wire services. Until recently years, communication in the Middle East was very limited. It was, and still is in some places, largely restrained by political and social pressure. But, things are changing in the region, and Qatar is probably the best example of that growth. Al Jazeera has definitely put Qatar on the global communications map. What do you think it means for the country and the region to have such a wide-ranging news station? First I would like to correct a common misconception: everywhere in the world, including the so called democratic countries have dealt with controls and bias. After all, ‘he who writes the cheques controls the media’. Western media’s coverage of the Israeli bloody incursion into Gaza was shameful; it was as if there was no war at all. Al Jazeera covered the war as it was taking place and that shocked the world. For Qatar to sponsor and host such a daring TV channel is a source of pride and impetus for further openness and transparency.
- Hassan Ibrahim. -
You have been in the journalism field for more than 30 years, covering many world-changing issues across the globe, and are recognised as an expert on geopolitical and sociological issues in the world scene. With all of that experience, what made you decide to join Al Jazeera? Why was it so important to you? I was one of the original crew that joined al Jazeera from the BBC. To be honest I never thought Al Jazeera would blossom so quickly; but it was a challenge to broadcast real journalism from the Arab World. I joined because of the promise made to us by Al Jazeera management that our impartiality and professionalism were sacrosanct. Al Jazeera has been a media presence now for more than 10 years and it is still growing. In your opinion, what has made Al Jazeera so popular in this modern world otherwise saturated by varying options of televised news? What are its strengths and what sets the station apart? Al Jazeera perfected a concept long dreamt by TV
Many of our readers will remember you from the 2004 film Control Room, which documented Al Jazeera’s media involvement in the 2003 American-led invasion of Iraq. Among other topics, the film addressed the subject of perspective, particularly the reservations that some individuals and governments had with Al Jazeera’s attempts to cover both sides of every conflict. Does Al Jazeera still combat infamy and controversy? Is the station more widely well-received now than it was in the past? If so, what has made it that way? Many governments in the Middle East, and even in some Western countries, fall short of our expectations. They don’t like us because we present both sides of the argument; and that embarrasses these governments with their citizens. While some call us the mouth piece of a plethora of radical organisations from Al Qaeda to Hamas and Hezbollah; others call us the mouth piece of Zionism and American Imperialism. When you make everybody angry, then you know you’re doing something right. What is next for you and for Al Jazeera? Can you tell us about any forthcoming exciting developments? How can the station possibly grow any greater? Al Jazeera is always growing and always eager to reach greater heights.
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BIGBUSINESS In a bid to raise the bar for IT technology, processes and related skills in Qatar and throughout the Middle East North Africa (MENA) region, Doha-based IT services and solutions provider, MEEZA, is investing in cutting-edge technologies that will transform Qatar’s IT services market and establish it as the region’s IT network hub.
M
eaning advantage in Arabic, MEEZA brings to the market a portfolio of world-class managed IT solutions to counter IT-related corporate concerns regarding security, availability and scalability. Established last year as a privately held joint venture with Qatar Foundation, MEEZA has a vision to become the leading IT services provider in the MENA region and already has a list of heavyweight clients under its belt, including Vodafone Qatar, DohaLand and Masraf Al Rayan. To address client needs and deliver best-of-breed service, MEEZA has forged strategic alliances with global industry IT players, including Microsoft, Cisco, Hewlett Packard and VMware. These alliances will enable clients to benefit from integrated hardware and software solutions, and from cuttingedge solutions such as virtualisation and enterprise hosting. MEEZA, housed within Qatar Science and Technology Park, recently announced the opening of its Command and Control Centre (C3), the M-Vault 1, its tier-3 data centre as well as the availability of 11 managed IT services to the market, which will be boosted to 30 in the near future. As demand continues to grow for IT related services in the region, MEEZA has ambitious plans to broaden its serviceability to companies operating throughout the GCC. To enable this, MEEZA is setting up channel partners, which will sell its services and help MEEZA to more effectively service the small and medium business segment. According to global market intelligence and advisory firm, IDC, managed IT services such as those provided by MEEZA have emerged as a growing market in the region and are increasingly in demand in Qatar. IT spending in Qatar totalled US$530.73 million in 2007, reflecting year-on-year growth of 23.4 percent. Meanwhile, the Qatari IT market is projected to expand at a compound annual growth rate of 19.7 percent between 2008-2012 making Qatar the most attractive market for IT services in the Qatar, Kuwait, Bahrain and Oman region. JULY 2009
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TheEDGE speaks with Scott E. MacKenzie, CEO of MEEZA, to discuss how MEEZA is positioning itself within in Qatar’s IT market. In regard to the full range of services that MEEZA is offering, how will these applications/solutions change the current and future dimension of Qatar’s IT landscape? The important role that IT will play in the continued growth and success of Qatar is widely recognised. In particular, the business sector in Qatar will need access to world class IT infrastructure, applications and services to support the fast pace of growth and innovation. These are the needs that MEEZA is aiming to meet. MEEZA recognises that as businesses grow and develop, as they have been doing quite rapidly in Qatar, their IT needs will evolve. MEEZA’s flexible and agile approach to IT solutions means we can change our services in tandem with the changing needs of clients ensuring they’re provided with the appropriate IT services and solutions to expand and diversify. What is MEEZA bringing to the market that does not already exist in Qatar and the GCC region? Ensuring that IT delivers real value back to the business is a challenge for IT leaders in this region, as it is everywhere in the world. However, that challenge is compounded here by the lack of skilled IT personnel, the changing regulatory landscape and the difficulty in keeping up with global IT innovations. MEEZA is bringing world-class IT skills, processes and technology to the market to help businesses achieve advantage through IT and scale rapidly. MEEZA employs only first-rate, fully certified IT professionals who are as passionate about service as they are about technology. MEEZA currently holds a unique position in the Qatar market by providing the first data centre (M-Vault 1) and command and control centre (C3) of their kind in the country. MEEZA’S M-Vault 1 is the first commercial tier-3 data centre in Doha providing an unrivalled level of IT security and availability to its clients. M-Vault 1 has a tri-authentication security system, 25-camera CCTV system, multiple mechanical, electrical and power systems and 99.98 percent uptime (the equivalent of less than 1.7 hours downtime per year). The first services to be offered from M-Vault 1, to clients such as Vodafone Qatar and Masraf Al Rayan, include managed storage, network and security as well as disaster recovery capabilities. MEEZA’s C3 is the only managed services commercial centre of its kind in Qatar, enabling MEEZA’s clients to continue providing quality services to their customers with the reassurance of around-the-clock access to information, IT security and peace of mind. The value that C3 delivers to the market is enhanced by MEEZA’s Information Technology Infrastructure Library (ITIL) aligned processes. ITIL is the world standard for best practices relating to the delivery and management of IT services. All engineers working in the C3 are ITIL certified. What level of interest is MEEZA receiving from small to medium businesses in Qatar and the GCC, and what sectors are registering the most interest? The demand for managed IT services and solutions continues to grow apace in Qatar and the region as businesses look to third parties like MEEZA to manage IT applications while they concentrate on the all important job of generating growth. 64
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- Scott E. MacKenzie -
Companies across the region are realising more and more the strategic value of IT to their businesses and, as a result, the interest in IT services is very high. In terms of vertical sectors there is demand across the board, but we are especially seeing high interest from the banking and financial services sector, government, healthcare and oil and gas companies. In particular, small and medium businesses in the region have a high demand for software as a service. This is software hosted by MEEZA and delivered on demand to clients. The benefits of software as a service are low up-front costs, access to greater computing power and a faster installation time with no ongoing maintenance and upgrade headaches. As MEEZA is looking to grow its presence, what initiatives will it embark on in regard to training and education? Will MEEZA align itself with universities in Qatar and the GCC to drive forward supply and demand of engineers? MEEZA is committed to supporting Qatar in its endeavours to become a knowledge-based economy and is actively encouraging students studying locally to pursue careers in the IT sector through is internship programme in partnership with the College of the North Atlantic, Qatar (CAN-Q). Final year students studying relevant disciplines will spend up to 15 weeks at MEEZA gaining invaluable experience of the workplace and having the opportunity to apply their academic knowledge to a business environment. MEEZA is committed to helping Qatari people and people from across the region establish fulfilling and longterm careers in the IT industry.
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it’s all in the name
When creating an online identity, selecting the right domain is the name of the game. Domain names are vital for defining the online identity of any business. Hence, when a business decides on acquiring a domain name, it is very particular about some specific factors. Richard Moog explores the factors that make a domain name important for a company and provides five easy to follow, smart business tips.
Keep It Short AND Easy To Remember
When selecting a domain name, make it short and catchy. A long name is often hard to remember due to its spelling and pronunciation. A short and easily memorable name is more desirable by any businessperson and hence would generate greater demand when you want to sell it. A short name even helps in advertising through word of mouth.
Keywords
Domain names that contain keywords are also very desirable for businesses as such names help with search engine optimisation. A proper keyword contained in the name helps the URL to get a better rank among the other results. This also attracts a greater possibility of reselling a domain name.
Easy Spelling
A domain name that has a simple spelling would sell much better than one that seems to be complicated. Complex domain names will make users commit mistakes when jotting down the URL of any business and will never be able to get to the site in question because of such reasons.
Relevance To Businesses
When you decide to get hold of domain names and later sell them to other business owners, try to look for names that are likely to correspond more closely to businesses. Going for names that describe the nature of business effectively will increase the chances of more businesses approaching you for the name. You can come across domain names that use the brand name instead of using a descriptive name. While such names help to generate brand awareness among the customers, they will most likely prove to be of little use for the new businesses.
Extensions
Choose a proper extension when selecting your domain name. Try to use the extensions .org, .net, .com, .edu and .biz appropriately depending on the business of your target buyer. For example: go for .edu when you want to sell a domain name related to education. JULY 2009
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Website wow factor With an increasing amount of people turning to the Internet everyday in their quest for information, there is virtually an endless list of websites to explore or discover. So what are the key things to consider when building a website? Entrepreneur, Kimberly Reddington says that it is a matter of good design principles. When someone first visits your website, you have 10 seconds to ‘wow’ them. It is in those first 10 seconds when someone decides to either leave or look around. Here are 10 things to think about when analysing your website: Your website should appear professional, clean and simple
When you walk into a physical store, you are more apt to buy from a store that is clean, easy to navigate, is well organised, and has a friendly yet well-established feel. Your website should have a similar look and feel. Avoid clutter, allow for white space around items and make it easy for the visitor to move around your site.
Your navigation should be easy and simple
If your visitors are having trouble finding what they are looking for immediately, it is much too easy for them to return to their search and find a competitor with easier navigation. Keep navigation in a prominent location that has clear, simple and easy to use tabs and links.
Select an attractive and comfortable colour palette
Use a colour palette that your audience prefers and that creates the impression you are trying to establish. If you want to relax your visitors, then use subtle and light colours. If you want to excite visitors, use vibrant colours. Stick to colours and shades that work well together. Additionally, use a colour wheel to see which tones complement each other.
Create a branding statement and utilise that statement throughout the whole website
Your business should have a special brand that makes you stand out from competitors. Your brand is your unique look that grabs your visitor’s attention. Place your brand prominently near the top of your homepage or landing page. Make sure to keep you brand throughout the whole site to give everything a consistent look and feel. 68
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Display what your business is all about
Your visitors will only spend 10 seconds perusing your site before deciding to leave it. Make sure they learn what your business is all about within those first 10 seconds. If your URL or business name doesn’t easily explain your business purpose, then create a tagline and use it as part of your branding statement.
Make sure that important ‘calls to action’ are in places where the user can see them
Most visitors will not read your entire homepage. People tend to peruse a web page quickly. The use of colours and fonts can make important words and phrases stand out more and catch the reader’s attention. Make sure that important links or buttons are easy to see, stand out and are not too far down the page.
Prominently display quality graphics and images
Graphics and other images on your website will grab your visitor’s attention much more than text. Make sure that your images are high-quality graphics and are optimised for fast loading.
Use photos to display the quality of your products
Since visitors cannot pick up your products to look at them, they rely on images and graphics. Use attractive images and photos that are large enough to show important details.
Use stand-alone web pages
Unlike a magazine or catalog, you cannot predict which web pages your visitor will read first, next or last. Avoid content in your pages that is dependent on the visitor having seen another page first. Ensure that each page stands out on its own.
Test your navigation and links
Test your completed design by showing it around to others. See how they navigate. Asking your testers open-ended questions will help you to get a feel for how they are perceiving the look and navigation of your site. Are they having trouble finding certain features? Your website may be your visitor’s first impression of you and your business. Colours, images, fonts, text and other visuals will bring out certain feelings and thoughts the second a visitor views any page of your site. Ensure that you are sending out the right messages and that they are in line with what your niche is expecting.
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SECTIONGUIDE HOW-TO
How not to blog The Internet has given rise to a vast gateway of communication streams providing both individuals and businesses with the opportunity to interact with their audience on a different level. Corporate blogging is one such medium that is rapidly gaining momentum these days. Business blogs are for providing information and news about the events and products of the company. In fact, a business blog represents the business itself. So, it is as important to be careful and clear on things that you can/can’t do while blogging. Philip Thomas investigates the key things to avoid in corporate blogging.
Irregular content updates
It is very likely that the readers are always enthusiastic for new updates in the business blogs. They expect the blog to post about the current trends, latest products and services. Posting at long intervals will make the readers disappointed. Therefore, it is good to avoid irregular or long posting intervals in business blogs.
Irrelevancy in content
It is very important to post only valuable information in a business blog. It is what the readers will be expecting from you. The blog should give helpful and relevant information to the customers and other viewers of the blog about products and services. It should avoid unnecessary content that can confuse readers and destroy the credibility of the company.
Quirky titles for posts
Avoiding cryptic, vague or apathetic titles is always recommended. The title must be interesting enough to drive the reader to the article. The title or the headline should clearly represent the post precisely.
Flashy page layout
The appearance of the business blog should create a professional and decent impression of the business. Flashy templates, with some clutter dominating the actual content might make a negative impression. The page should not be crowded with unnecessary tools and widgets, though some widgets like RSS feed and bookmarks can be used to provide easy access to the blog. A business blog can help a business interact with the target market or their employees on a more personal level, while building credibility. A small blunder can effect the reputation of the business and it can be irreparable. Hence, it is very crucial to avoid the above things in order to maintain the credibility of the business.
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TECH TOOLS
TECHTOOLS My Book should be your book Western Digital has released its latest My Book Studio Edition II that will now come with 4 Terabytes (TB) worth of data storage, double that of its predecessor’s 2TB capacity. This new My Book Studio Edition II dual drive storage system was specially built to interact with Apple Mac computers. It works well with the Apple Time Machine automatic backup feature and is pre formatted for Macs, targeting creative professionals, workgroups and small offices. The unit offers super fast data transfer courtesy of its dual-drive RAID 0 configuration and high-speed interfaces, which include eSATA and FireWire 800 for maximum performance, as well as FireWire 400 and USB 2.0 for maximum flexibility. www.wdc.com
Solar Flair Can’t live without your iPod touch or your iPhone? Feel lost and alone when it runs out of battery when you are on the road? Worry no more thanks to Solar Technology, a UK-based company that has produced a handy little gadget for powering up your ‘pod using a commodity we have lots of here in the Gulf. No, not oil and gas, but sunlight! The FreeLoader 8.0 not only charges the latest two most popular gadgets from Apple, but also charges other portable devices such as digital cameras, PDAs, PSPs and mobile phones. One brilliant little feature we were particularly impressed with is the Freeloader 8.0’s ability to simultaneously charge its own internal battery, which holds its charge for up to three months. If you get caught in a Doha dust storm, however, worry not. The gadget is especially efficient at absorbing light in cloudy and dim conditions, ensuring you will never have to worry about your mobile office shutting down, whatever the weather. www.solartechnology.co.uk
TECH TOOLS
Conscience-Free Communication Sony Ericsson has developed a GreenHeart. Yes the mobile communications specialist has gone all corporate responsibility with a new range of pioneer products developed under its environmental sustainability policy to develop products that are less harmful but still offer full functionality and design. The GreenHeart programme launches with two flagship products – the C901 GreenHeart and Naite phones. For those that want to stay safe, save the planet and drive their Toyota Prius at the same time, the MH300 GreenHeart headset is made from 100 percent recycled plastics. Both phones eliminate the use of hazardous chemicals from the product design and manufacturing process, and will include an electronic, in-phone manual to replace the standard paper version and more compact packaging. The casing of the phone is made from a minimum of 50 percent recycled plastics and includes an optimised display light sensor that uses less energy. The phone is coloured with waterborne paint that lowers exposure to Volatile Organic Compounds (VOC). As well as featuring many of the innovations showcased in the C901 GreenHeart, Naite will come to market with a low-power charger and both phones will have a built-in Carbon Footprint Calculator and the new WalkMate application, letting users compare the steps they take with the equivalent journey travelled by car. www.sonyericsson.com/greenheart
Ahead of the Curve The fruitiest mobile workflow tool just became fruitier. QTEL have announced the launch of the BlackBerry Curve 8900 Smartphone, the latest model to fall off the successful branch. In addition to the usual features such as phone, email, messaging, organiser, Web browser and multimedia applications, the Curve 8900 now offers global connectivity, built-in 802.11 g/b Wi-Fi, fully mapped GPS system, a 512 MHz processor and a stunning high-resolution display. In terms of form factor, the unit sports a sleek new style (being the thinnest Blackberry to date), the usual full QWERTY keyboard and its intuitive trackball navigation system. Another snappy addition is a 3.2 megapixel camera – including auto focus, digital zoom and flash – which is supported by a microSD/ SDHC expandable memory card slot that can expand the memory of the phone to 16GB per card. www.qtel.com.qa JULY 2009
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Projection Perfection If you need to project the perfect image to your clients, then the new Projectiondesign FL32 LED projector is the one for you. Norweigan-based Projectiondesign have been pushing the boundaries of big screen performance for nearly a decade and this is another first for the market. The FL32 is the company’s first solid-state LED-based projection system promising greatly enhanced image performance, and lowered cost of ownership. The projector is available with either native 1080p or WUXGA resolution options on a single-chip DLP platform and delivers a 100,000 hour bulb life. It doesn’t matter if your boardroom is curved or cornered, because the company says that image performance is independent of projector orientation and position, offering the ultimate installation flexibility. As well as standard projection duties, the FL32 stands up to the test in simulation and training installations and rear projection applications. www.projectiondesign.com
Wi-Fi? Because you can... Sipping a cappuccino and surfing the net has never been easier thanks to Canary Wireless. The company has just launched its second generation Digital Hotspotter device, a must-have for the travelling businessperson. The pocket-sized device is a Wi-Fi detection and analysis tool with an LCD display providing essential network information, including network ID, encryption status and channel data for 802.11 (B, G and N) networks. It is the ultimate time saver, especially if your operating system is a bloated behemoth of the fenetres variety. Instead of digging out your laptop and having to wait for it to boot to find out if you are able to browse the markets over your muffin, just whip this 2oz gadget out of your pocket and see what signal is on offer in a matter of seconds. It uses a true 802.11 Wi-Fi engine, so it doesn’t get confused by Bluetooth signals. Best of all, it can be branded with your company logo. www.canarywireless.com 74
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EVENTS/CONFERENCES
Joaillerie Liban 2009 20 - 24 July - Beirut International Exhibition & Leisure Centre, Beirut, Lebanon This is a key trade event attracting jewellery manufacturers, desigers and distributors from across the region and globe, and serves as a platform to introduce new products into the market.
Global SMEs Summit: Business Partnership Meet 28 - 29 July - Federation House, New Delhi, India Focusing on the role of SMEs in the Indian economy, the summit will explore international partnerships for SMEs, the framework and support mechanisims to establish more local and global SMEs players and address current economic issues.
TAIPEI COMPUTER APPLICATIONS SHOW 30 July - 3 August - Taipei World Trade Centre, Taipei, Taiwan The key trade event offers the largest retail platform in the IT and electronics sector showcasing key technologies, including digital imaging, multimedia, gaming and home entertainment.
COMEX IT AND TELECOM CONFERENCE 3 - 4 August - Golden Tulip Hotel, Muscat, Oman The conference will feature leading IT and telecoms industry experts, both from around the region and internationally. Over two days, presentations will cover the future of the communications industry in the GCC and future challenges and opportunities for the growth of wireless services throughout the region.
LIFESTYLE EXPO 4 - 6 August - Oman International Exhibition Centre, Muscat, Oman The event features a line-up of the latest trends and innovations in lifestyle and home decoration. It targets manufacturers, distributors and business decision makers operating in the luxury lifestyle market, as well as consumers.
FRANCHISE AND RETAIL EXPO 4 - 6 August - Oman International Exhibition Centre, Muscat, Oman The exhibition is aimed at promoting franchising in the GCC and will feature regional and international franchisors from all sectors. The event focuses on attracting key clients, investors and entrepreneurs looking to purchase international brands that operate in the hospitality, retail, real estate, automotive and tourism sectors.
HEAVY MACHINERY AND CONSTRUCTION EQUIPMENT EXPO 4 - 6 August - Oman International Exhibition Centre, Muscat, Oman The international networking event is aimed at delegates operating in the field of heavy machinery manufacturing technologies. Various new equipment designs and technological advances will be unveiled at the show and panel discussions will be delivered by industry experts.
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PROJECT SECTION NEWS
QATAR PROJECTS UPDATE Qatar awards $550 million contract to build polyethylene plant Qatar Petrochemical Company (Qapco) has awarded a US$550 million EPC contract to German-based Uhde (an arm of ThyssenKrupp Technologies) to build a new lowdensity polyethylene (LDPE) plant in Mesaieed Industrial City. The new plant will be integrated into the polyethylene production area inside the Qapco petrochemical complex. The LDPE 3 plant, designed for a production capacity of 300,000 metric tonnes per year of low-density polyethylene, is slated for commissioning in late 2011. Uhde’s scope of services and supplies covers project management, detail engineering, supply of all equipment and materials, and construction work up to ready for feed-in. The project, when completed in December 2011, will be using the excess ethylene produced by Qatofin and Qapco, and is designed to produce annually 300,000 metric tonnes of low-density polyethylene.
Qatar Entertainment City project on target Abu Dhabi Investment House, developer of Qatar Entertainment City, has completed 70 percent of infrastructure work on the project. The project is divided into five districts, which will be linked with canals and boast features such as a snow dome, beach and rain forest areas, a Six Flags-branded theme park (which will open in 2010), restaurants, hotels and shopping malls. The property includes a kilometre of prime beachfront and sea-view apartments. Luxury villas have also been planned. The Entertainment City concept covers three aspects — residential, commercial and entertainment —all in one million square metre area in Lusail, north of Doha. The US$3 billion project aims to create a major tourist hub within the Gulf Cooperation Council. Qatar Entertainment City will cater for families, tourists and other visitors in a bid to attract more tourist traffic to Qatar.
Construction sector robust in Qatar Despite the global credit crunch, all major construction projects in Qatar are still in operation, according to a recent study. More than 82 percent of all projects are late, but the delays do not affect budgetary spending. A study has found that the construction industry in Qatar (as at the end of March) consisted of (191) major projects with a total value of US$82.5 billion. The data indicates that only one major project in the real estate sector was cancelled in Qatar during 2008. While the leisure and entertainment sector experienced only a slight decline since beginning in December 2008, this trend may continue until December 2009. While the Qatar economy is not immune to the global economic slowdown, it is expected to continue at a reasonable rate of growth this year, driven by the benefits from a long-term strategy, to export liquefied natural gas from its vast gas field.
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SECTION TENDERS
QATAR TENDERS Bu FE rn P ED i S erts vices
Bu i ld Managemen i ng Pu b Sys lic A t& tem d d ress Pr ojec t
Description: Provision of front-end engineering and design (FEED) services - mitigation of burn pits for a petroleum company. Closing Date: July 19, 2009 Client: Qatar Petroleum Phone: (+974) 440 2000 Fax: (+974) 483 1125/ 449 1400/ 483 1995 Email: marketing@qp.com.qa Website: www.qp.com.qa Tender No. GT09107700 The tender calls for the provision of front-end engineering and design (FEED) services mitigation of burn pits at Dukhan, Dukhan and Mesaieed in Qatar. Bid bond: QR120,000 Tender documents can be obtained from: Contracts Department – Engineering Division, Dana Tower, third floor, room no. 309 Qatar Petroleum, Doha.
Description: Engineering, procurement, installation and commissioning (EPIC) of building management system (BMS) and public address voice alarm (PAVA) and sound system for a petroleum company. Closing Date: July 19, 2009 Client: Qatar Petroleum Phone: (+974) 440 2000 Fax: (+974) 483 1125/ 449 1400/ 483 1995 Email: marketing@qp.com.qa Website: www.qp.com.qa Tender No. GT09107600 This project is in Qatar. The scope of work includes design, engineering, selection, procurement, supply, installation and commissioning of a Building Management System (BMS), Public Address Voice Alarm (PAVA) and sound system and associated civil works at Dukhan Operations and Management Building (DOMB) on an engineering, procurement, installation and commissioning (EPIC) basis within Dukhan fields. Providing manpower assistance for operating and monitoring the above referred new facilities, is also required. Bid bond: QR240,000 Tender documents can be obtained from: Contracts Department – Operations Division, Royal Plaza, G-Wing, fourth floor, room no. G13, Qatar Petroleum, Doha.
Description: Engineering, procurement, installation and commissioning (EPIC) contract to carry out lighting works for plant area at 74-SBV-02 station of a petroleum company. Closing Date: July 20, 2009 Client: Qatar Petroleum Phone: (+974) 440 2000 Fax: (+974) 483 1125/ 449 1400/ 483 1995 Email: marketing@qp.com.qa Website: www.qp.com.qa Tender No. ST09103600 This tender service is at Umbab in Qatar. The selected contractor will supply and install a series of 10-metre light poles, each with two 400W, 240V, HPSV explosion proof floodlights attached. In addition, the contractor will supply and install one photocell, with control circuit for flood lighting control; lay underground and connect 4x4mm2 CU/XLPE/SWA/PVC power and CU/PVC earthling cables, which will feed power and provide earthling to all floodlights; and supply and install power cable from main distribution board to new lighting distribution board. Bid bond: QR15,000 Tender documents can be obtained from: Contracts Department – Operations Division, Royal Plaza, G-Wing, fourth floor, room no. G13, Qatar Petroleum, Doha.
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TENDERS SECTION
RL Wa C Po Tan ter tab le Pr ks Sto ojec & P rage t ump s
E LE TEC CTR IC CAB H N ICI AL A PR LE R E N S A OJ E ND PAI CT R
Description: Engineering, procurement, installation and construction (EPIC) of RLC potable water storage tanks and pumps for a petroleum company. Closing Date: July 26, 2009 Client: Qatar Petroleum Phone: (+974) 440 2000 Fax: (+974) 483 1125/ 449 1400/ 483 1995 Email: marketing@qp.com.qa Website: www.qp.com.qa Tender No. GT09107200 This project is in Qatar. The selected contractor shall carry out the design and detailed engineering, procurement, installation, construction, pre-commissioning, commissioning and testing to provide the two potable water storage tanks, variable speed drive potable water distribution pumps and all necessary civil, mechanical, electrical and instrumentation facilities required, including, pipelines, pump house, substation, access road, gate, fence, etc. The 11-kV electric power has to be drawn from the 33/11-kV RLC main substation by laying new power cables. The existing SCADA system at RLC camp-1 is also to be replaced with new SCADA system. Bid bond: QR3 million Tender documents can be obtained from: Contracts Department – Engineering Division, Dana Tower, third floor, room no. 309, Qatar Petroleum, Doha.
Description: Provision of senior electrical technicians and cable jointers on call-off basis for a petroleum company. Closing Date: July 26, 2009 Client: Qatar Petroleum Phone: (+974) 440 2000 Fax: (+974) 483 1125/ 449 1400/ 483 1995 Email: marketing@qp.com.qa Website: http://www.qp.com.qa Tender No. LT09106000 This tender calls for the provision of qualified and experienced senior electrical technicians and cable jointers in Qatar. It calls for carrying out emergency maintenance and repair and or repair of power generation distribution system of 11-kV, 22-kV, 33-kV, 6.6-kV, 440V, 415V 50/60 Hz at PS2, PS3, NFA and Halul. Bid bond: QR150,000 Tender documents can be obtained from: Contracts Department, Corporate Division, Royal Plaza, G Wing, Fourth Floor, Room G 11, Qatar Petroleum, Doha.
Description: Front-end engineering and design (FEED) services for upgrading of high voltage supervisory control and data acquisition (SCADA) system for a petroleum company. Closing Date: August 2, 2009 Client: Qatar Petroleum Phone: (+974) 440 2000 Fax: (+974) 483 1125/ 449 1400/ 483 1995 Email: marketing@qp.com.qa Website: http://www.qp.com.qa Tender No. LT09106100 This project is at Dukhan in Qatar. The tender work includes Dukhan operations management intends to retire the Dukhan power station generation equipment. Hence, it is required to install a new SCADA power management system integrating the entire substation control systems in various HV substations through the QP STM telecom fibre network for remote monitoring. Bid bond: QR50,000 Tender documents can be obtained from: Contracts Department – Engineering Division, Dana Tower, Third Floor, Room no. 309, Qatar Petroleum, Doha.
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SUBSCRIPTION
SUBSCRIPTION FORM 2009 TheEDGE is Qatar’s new monthly business magazine. Making its formal introduction to the market this month, TheEDGE incorporates a mix of industry news and analysis, in depth features, special interviews with key business decision makers, economic insight and market activity reports, and tips for how you can improve your day-to-day business operations. TheEDGE will not be available on the news stands, but will be delivered straight to the door of the targeted business community. To ensure you keep up-to-date, with what is happening in Qatar’s business landscape, fill in the subscription form (below) to receive TheEDGE on a monthly basis. Subscription is FREE (in Qatar). Forms are to be addressed to the Subscriptions Department at: TheEDGE Subscriptions Department Firefly Communications 11th Floor, Jaidah Tower PO Box 11596 Doha, Qatar
Last Name : First Name: Address: Company: Designation: P.O.Box: Area Code: City: Country: Tel: E-mail: Date and Signature: 80
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