contents
OCTOBER 09
Contributors .6.
A brief introduction to the specialised team of contributors, who regularly lend their expertise and insight to TheEDGE.
.10.
NEWS IN BRIEF .8.
A snapshot of the latest business developments affecting the business landscape within Qatar and the GCC region.
NEWS IN QUOTES & NUMBERS .10.
Powerful statements and important statistics that made an impact.
BUSINESS INSIGHT .12.
TheEDGE speaks with key business people from in and around the region to discover what is in store for Qatar.
.26.
.30.
MARKET WATCH .22.
Martin Menachery discusses Qatar’s global economic advancement and looks at the deals that are bolstering the country’s growing reputation in the business world order.
INSIDE EDGE .26.
Rajesh Mirchandani gives the ‘inside edge’ on Qatar’s exponential growth and its increasing popularity among foreign investors.
COVER STORY .30.
Kelly Lewis explores the role of women in the workplace and meets the inspirational women that are helping put Qatar on the business map.
ECONOMIC BAROMETER .40.
Karim Nakhle, our economic barometer, questions whether Qatar’s post-crisis investment will pay dividends.
DOHA TRIBECA FILM FESTIVAL .44.
TheEDGE rolls out the red carpet for Amanda Palmer, executive director of Doha Tribeca Film Festival, and pulls back the curtain on Qatar’s premier film industry event.
OCTOBER 2009
1
contents
OCTOBER 09
SPECIAL REPORT - TELECOMMS .48.
Qatar’s telecommunications sector is getting competitive. Oxford Business Group’s Daniel Moore discusses the strategic objective of its key players.
ON THE PULSE - EDWARD JAMESON .50. Edward Jameson investigates the liberalisation of Qatar and how it is succssfully balancing economic prosperity and human rights.
BUSINESS VIEW - REAL ESTATE .54.
This month, Edd Brookes calls for transparency in the convoluted Qatar real estate market.
LEGAL INSIGHT - LIQUIDATION .56. Legal eagles, Eric Ho and David Salt discuss the winding up of companies in the QFC.
INDUSTRY FOCUS - ARCHITECTURE .59. The future of architecture in the GCC and the important role that education will play in its success.
TECH TOOLS .62.
TheEDGE takes a look at the latest tools and gadgets hitting the shelves.
HOW-TO GUIDE .63.
TheEDGE is there when it all gets too much. Let us help you deal with that workplace stress with our handy howto guide.
EVENTS & CONFERENCES .75.
A round-up of key industry events taking place in the MENA region and abroad in October.
LIFE & STYLE .68.
TheEDGE revs into weekend mode with some hot wheels, gets rucking dirty at Doha RFC and winds down in W-onderland.
QATAR PROJECT NEWS .76.
An update on key projects that are underway within Qatar as well as Qatari developments abroad, and a listing of the latest tenders open for bidding. James McCarthy: j.mccarthy@firefly-me.com / +974 3159743 | Kelly Lewis: k.lewis@firefly-me.com / +974 5067574 Sales & marketing manager Emma Tapper: e.tapper@firefly-me.com / +974 3197446 Creative director Roula Zinati Ayoub Art AND DESIGN Lara Nakhleh - Rena Chehayber Finaliser Michael Logaring printed by Ali Bin Ali Printing Press - Doha, Qatar PO Box 11596, Doha , Qatar - Tel: +974 4340360 - Fax: +974 4340359 - www.firefly-me.com
OCTOBER 2009
3
Sustainability inspires our every step
Development means taking clear, thoughtful actions towards investing in a brighter tomorrow — for our customers, communities, staff, shareholders and the world around us. As a future-focused property investment company and developer, we are deeply engaged in ensuring every step we make is connected to our unwavering commitment to people and nature.
It’s simple, We stay connected
Find out more by visiting www.sabban-pi.com
Connects to Life
KELLY LEWIS
In this issue, TheEDGE explores the modern-day and Middle Eastern complexities that women working in the region face, while highlighting the significant achievements of four ambitious businesswomen crafting their trade in Qatar. On the competitive playing field of today’s business landscape, women are certainly not sitting unnoticed on the sidelines or playing the role of the supportive cheerleader, they are out there sharing their blood, sweat and tears among the best of them, carving a place for themselves on the pitch as the new movers and shakers to watch. However, it is one thing to play the game and another to succeed. If women really want to feed their modern-day, healthy appetite for success, it will take more than just athletic robustness, it will take backbone and the ability to be able to display grit in the face of adversity. Women are no strangers in the fight to be seen as equals. Throughout history women have grappled with inequality issues in all facets of society, but none more so than in the area of equal rights to employment opportunities. Women’s participation in the labour force has increased in almost all regions of the world. This has been achieved through societal development, political change and through the creation of new areas of economic growth and the expansion of service industries, including finance, communications, and tourism, which employ a high percentage of women. While these trends are positive, equality in the workforce still remains flawed by disproportionate wages and benefits, lower-status positions and discrepancy in employment rights. Examining these issues in context to the Middle East: traditionally the topic of human rights issues, particularly that of women’s rights in the Middle East has raised many a controversial eyebrow. The contentious nature of this issue certainly has not been helped by the double standards that are flaunted in some Middle Eastern countries. The task of holistically enacting social and political change throughout the individual societies of Middle East countries will no doubt be an arduous task, and the aspiration to achieve gender equality will prove to be a particularly formidable obstacle in this process. However while not denying that there remains a substantial deficit in women’s rights throughout the GCC countries, there has been notable progress achieved in recent years, particularly in regard to economic and political rights.
SEPTEMBER OCTOBER 2009
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contributors
Eric ho
Associate – Corporate and Commercial – Clyde & Co, Doha, Qatar Eric Ho is based in Clyde & Co’s Doha office and is a member of the corporate and commercial group. Ho has significant experience in public takeovers, business acquisitions, capital raisings and in corporate reorganisation. He advises clients on inbound foreign investment, regulatory and general commercial matters, including joint venture establishment and management. Prior to joining Clyde & Co, Ho was a senior lawyer in the corporate M&A division of one of Australia’s top tier law firms, which advises the Asia-Pacific region’s largest companies. Qualified as a barrister and solicitor in Australia, Ho also holds a Masters of Laws degree and a Graduate Diploma of Applied Finance and Investment.
Karim Nakhle
Senior business strategist – Doha, Qatar Karim Nakhle, based in Doha, is a business strategist with more than eight years experience in financial advisory, M&A, investor relations, business development, strategic planning, corporate communications and banking, having worked with HSBC, KPMG, International Bank of Qatar and National Bank of Kuwait, in Europe, the Middle East and North Africa. He is a member of the Economist Intelligence Unit, and a consultant with Standards and Poor’s Society of Industry Leaders. Nakhle has published various market reports, country economic and financial analysis, and thought leadership publications. Contributing for TheEdge as the ‘Economic Barometer’, Nakhle will offer his sharp analysis to get behind the numbers, while using his in-depth markets and sectors’ experience (that includes banking, financial services, telecommunications, FMCG, retail and luxury, environmental energy, real estate and oil and gas) to tackle key business and economic issues on a domestic and international front through a compelling commentary.
Rajesh Mirchandani
CEO – Dun & Bradstreet South, Asia Middle East Ltd, Dubai, UAE Rajesh Mirchandani is a postgraduate from Indian Institute of Management Studies (IIM-C) and is currently responsible for the South Asia, Middle East and Africa (excluding South African bloc) operations of Dun & Bradstreet. Mirchandani led the management team responsible for the buyout and creation of Dun & Bradstreet South Asia Middle East Ltd. Mirchandani has exceeded Dun & Bradstreet corporate objectives each year of the past 10 years and has achieved the highest score globally on the Dun & Bradstreet Employee Satisfaction Index. He also serves on the board of directors for several companies in India and aboard. Prior to his current post as CEO, Mirchandani was the managing director of Dun & Bradstreet ASEAN/ South Asia. Preceding this, he was managing director of Meridian VAT Reclaim. 6
OCTOBER 2009
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.
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.
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.
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. OCTOBER 2009
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NEWS
NEWS IN BRIEF NEW KEROSENE JET FUEL RECEIVES GREEN LIGHT
The search for alternatives to conventionally derived aviation fuel has led to the development of a new synthetic aviation fuel standard, ASTM D7566. Technical standards body ASTM International announced the “unconditionally approved” aviation turbine fuel, which permits jet fuel containing a 50 percent blend of synthesized hydrocarbons for use in civil aviation. The fuel grade, know as GTL (gas to liquids) Jet Fuel, will facilitate GTL kerosene fuel to be commercially produced. While the initial version of ASTM D7566 provides for fuel produced from coal, natural gas or biomass using the Fischer-Tropsch process, ASTM said the standard was structured to accommodate future, alternative synthetic fuels from nonconventional processes. GTL kerosene is one of five GTL products that will be produced (by 2012) in commercial quantities by Qatar Petroleum (QP) and Royal Dutch Shell (Shell) as part of their Qatar-based joint venture project, Pearl GTL, which is currently under construction and due for completion next year. This endorsement cements the success of the two-year long international alternative fuel research programme – a collaboration between numerous industry bodies. In November 2007, Airbus, QA, Shell, QP, Qatar Fuels, Qatar Science and Technology Park and Rolls-Royce signed an agreement to investigate in detail operational and environmental benefits of the use of GTL fuel for aviation. Local sources close to the venture confirmed that significant developments would be brought to light this month regarding the use of synthetic fuels in commercial aviation flights. 8
OCTOBER 2009
COST OF GULF RAIL PROJECT rises BY up to QR40 BILLION
The estimated financial outlay of the 1940-kilometre Gulf Arab rail network has been magnified as GCC states look to invest in European style high-speed, cross-border and intercity railway network infrastructure. Officials confirmed the aggregate of the revised infrastructure was marked up from US$14 billion (QR51 billion) to between US$20 to US$25 billion (QR73 to QR91 billion). The rail network will link all six GCC countries, with each state to contribute a share of the start-up capital. Mohammed Obaid Al-Mazrouie, assistant secretary general for economic affairs in the GCC, told Reuters he expected a detailed study for the project to be completed this year. He added that the construction phase would begin in either 2010 or 2011, with the total project taking a further five to six years to complete. Al-Mazrouie said that basing the infrastructure on the Eurostar model had elevated the venture’s cost. “It will be similar to Europe’s Eurostar in that transportation will be smooth, no need to stop at borders, with certain requirements and procedures for the transport of goods and people and this is why the expense is more,” he said. The initial plan was to transport passengers in high-speed trains, but Al-Mazrouie confirmed a plan was now in place to increase the number of tracks to transport goods via lower-speed trains. The UAE and Saudi Arabia will wear more of the financial cost, due to the extent of their rail infrastructure requirements.
GCC STATES TO INK MONETARY UNION TREATY BY YEAR-END
The four members of the Gulf Cooperation Council comprising Saudi Arabia, Kuwait, Bahrain and Qatar are expected to ratify the monetary union agreement by the end of this year, UAE daily newspaper, Khaleej Times reported. Mohamad Al Mazroui, assistant secretary general for economic affairs in the GCC, said the ratification of the treaty was fundamental for creation of the monetary council, a precursor to the proposed GCC Central Bank, which will be issuing the common currency. “I expect that the four countries will ratify the treaty to form the monetary union before the year-end. But this is an expectation, and expectations can change any time,” Al Mazroui said at the 33rd round of the Council of Arab Central Bank Governors and Monetary Institutions in Abu Dhabi last month.
NEWS
US URGES GCC TO BOLSTER MISSILE DEFENCE TIES
The US has urged the GCC to boost its missile defence capabilities to protect itself against the rising threat of foreign military attacks. US Defence Department officials have been in talks with GCC member states in the aim of establishing a comprehensive air and missile defence umbrella, which would consist of US military and GCC-controlled assets. “We have very strong bilateral relationships in developing missile defence with several of the countries in the Gulf…and now what we’re encouraging is to layer on top of that multilateral cooperation as well,” US defence secretary, Robert Gates, said. Last month, Gates said that Iran’s “huge ballistic missile arsenal” threatened the GCC and other states.
VW AND QATAR continue to BATTLE IT OUT FOR THE DRIVER’S SEAT
German-based business magazine Manager Magazin reported that Volkswagen AG (VW) and Qatar were currently in dispute over the emirate’s representation on the carmaker’s board. Citing undisclosed sources, who remain close to the talks on Qatar’s planned investment, Manager Magazin said VW supervisory board chairman Ferdinand Piech was only willing to give Qatar one seat once the emirate completes the purchase of a 20 percent stake as part of the carmaker’s merger with Porsche SE. Piech will “in no way allow” Qatar to appoint a second member, Manager Magazine said, citing an unidentified VW executive. In other VW news, German auto industry magazine Automobilwoche reported that VW could become a shareholder of its Japanese competitor Suzuki before the end of the year. During the Frankfurt Motor Show last month, Automobilwoche cited a high-level Suzuki executive attending the motor show as saying negotiations were at an “advanced” stage and “we expect to reach an agreement in principle this year”.
QATARI DIAR EXPANDS INTO VIETNAM’S PROJECTS MARKET
State-owned real estate investment company, Qatari Diar is eyeing up key projects in Vietnam. Officials from both countries recently met to discuss ongoing investment project opportunities in Da Nang, a major port city on the country’s South Central Coast. Qatari Diar CEO Ghanim Bin Saad Al Saad said Vietnam was “central to Qatari Diar’s continual expansion and delivery of world beating developments” following discussions with an official delegation from the country’s Communist Party. The delegation headed by the central committee member NguyenBa Thanh, visited the Lusail headquarters of the real estate investment company. During the visit Thanh said that Qatar had an influential voice in the region and he hoped that the relationship between the two countries would flourish.
MALAYSIA INTENSIFIES EFFORTS TO ENHANCE JOINT TRADE RELATIONS
Malaysian ministry officials will visit Qatar, Saudi Arabia and Egypt this month as part of a trade and investment mission. The delegation will include representatives from Malaysia’s Halal Industry Development Corporation, Construction Industry Development Board, Professional Services Development Corporation and Iskandar Regional Development Authority. Officials from the Ministry of International Trade and Industry, Malaysian Industrial Development Authority, Malaysian External Trade Development Corporation, SME Corporation Malaysia and senior executives from Malaysian companies will also participate in the mission. Malaysian International Trade and Industry Minister Datuk Mustapha bin Mohamed said the aim of the mission was to update the business community in the respective countries about Malaysia’s economic standing. OCTOBER 2009
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NEWS IN QUOTES & NUMBERS
news in quotes
news in numbers
1372
“The Chinese government, with the Chinese Ministry of Trade, has been in talks with GCC officials relating to establishing a free trade zone between the GCC and China for some time now.”
A Chinese Embassy spokesperson said in Riyadh, Saudi Arabia, after the conclusion of the first round of negotiations to establish a free trade zone between the GCC and China.
“The management is currently putting together a number of programmes to develop human talent working on the field, and are being trained both inside and outside of the country…the aim of these programmes is to keep our workers up-to-date with the latest global technologies in the oil and gas industry.”
1000
500
1500
Ahmad Saif Al Sulaiti, operations manager at Dukhan Fields, said in relation to the construction of the mega projects at Dukhan, which are due for completion in 2011.
“No power in the world is daring enough to attack Iran as we are more experienced and powerful than ever.”
In a public address during a military parade last month (to mark the anniversary of the start of the 1980-1988 IranIraq war in southern Tehran) Iranian President Mahmoud Ahmadinejad warned, ahead of talks with major world powers this month over concerns about the Islamic Republic’s nuclear strategy.
“It is clear that the G8 cannot be the global steering committee. Without major emerging economies like China and India it is simply not representative of the world’s reality.”
Former Canadian Prime Minister Paul Martin told Reuters ahead of the G20 summit in the US city of Pittsburgh last month. Martin, the chair of the first G20 meeting of finance ministers and central bank governors in Berlin in 1999, added that the strength of emerging economies, versus the relative weakness of the wealthy West, showed the need for change in the balance of power.
Despite the slowdown in the regional construction sector a Dubai-based research firm, Proleads, claimed that the UAE was still forging ahead with a number of construction projects. With a total value of around US$900 billion (QR3.28 trillion), Proleads said 1372 building projects were under construction or in bidding across the commercial, hospitality, residential and retail sectors in the UAE. Proleads’ statistics, ascertained mid last month, estimated that 566 projects were either on hold or had been shelved in the UAE. The findings took the pulse of more than 3000 projects valued in excess of US$1.5 trillion (QR5.5 trillion) in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE. Qatar was found to have seven projects shelved or on hold, with 124 in construction or in bidding out of total projects worth more than US$42 billion (QR153 billion).
Pic Of the month
“For Qatar, GTL provides the opportunity to market its natural gas in diverse markets currently supplied by oil products. The approval [ASTM D7566] opens up commercial aviation as another of these markets, helping to maximise the value Qatar can generate from its natural resources.” Andy Brown, Shell’s executive vice president in Qatar and managing director of the Pearl GTL project, said in relation to ASTM International’s new synthetic aviation fuel standard, ASTM D7566.
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OCTOBER 2009
- Bavarian farmer Franz Rottenkolber dumps milk in a field to protest against plummeting milk prices last month near Landsberg am Lech, Germany. Dairy prices have collapsed due to low demand caused by the economic crisis, dropping to half their price since 2007 in some countries. (Photo: Johannes Simon) -
BUSINESS INSIGHT – CONSTRUCTION & ENGINEERING
BUILDING
INFRASTRUCTURE
FOR CONTINUED SUCCESS
Stepping into the driver’s seat at Al Habtoor Leighton Group this month, Laurie Voyer has ambitious plans to steer the group into a new phase of growth as its managing director.
- Laurie Voyer, managing director of Al Habtoor Leighton Group. -
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OCTOBER 2009
BUSINESS INSIGHT – CONSTRUCTION & ENGINEERING
A
l Habtoor Leighton Group (HLG) is a joint venture between UAE Al Habtoor Engineering and Leighton International of Australia, one of the world’s biggest construction firms. Voyer, previously the deputy managing director of Leighton Contractors in Australia, a subsidiary of the Leighton Group, officially replaced David Savage this month, who was the managing director of HLG since its establishment in September 2007, following the merger of Al Habtoor Engineering and Gulf Leighton (the Leighton Group’s operating entity in the Gulf region). Savage has returned to Australia taking on a senior role with the Leighton Group where he remains an executive director of HLG. Recognised as an industry leader in Australia’s construction sector, Voyer brings with him more than 35 years of senior management experience and will now oversee the operations of one of the Middle East’s largest broadbased construction groups. In regard to his short and longterm ambitions for the company, Voyer said that as HLG had a “wellearned reputation for delivering quality projects”, coupled with “an unrivalled track record in this part of the world”, that his direct ambitions were to “maintain and build on this reputation, while making HLG the most successful construction company in the Middle East and North Africa”. Although the effects of the economic downturn have begun to plateau, many countries have been forced to shelve or put on hold key construction and development projects. In regard to HLG’s operations, Voyer said while the whole Middle East region had been affected in some way, it was in Dubai where the crisis was most felt. “We had to deal with the cancellation and postponement of a number of projects within Dubai. However, we were fortunate to have a strong business in Abu Dhabi and Qatar, which have not been adversely impacted. In fact in Abu Dhabi, we consistently secured projects even during the downturn,” he said. However, while HLG’s market position is more optimistic than some, Voyer said that the downturn had forced HLG to rethink its strategic approach.
“As a result of the downturn the group has applied greater emphasis on its choice of clients. We will only undertake projects for clients, who have the capacity and intention to pay. Our revised strategy is to form long-term, mutually-beneficial relationships with blue-chip clients,” he informed. “I think HLG has emerged from this crisis a better, stronger and more focused business and these will be our strengths as a group going forward.” In the coming 12 to 18 months, Voyer said that the Gulf region would continue to be a “very important” market for HLG, while anticipating the UAE and Qatar would present the most attractive growth opportunities. He added that while HLG only operates in the Middle East, at present, it was investigating opportunities in North Africa. “The UAE, particularly Abu Dhabi, will be our dominant market for the foreseeable future. Qatar is our second largest market and continues to offer some fantastic opportunities, Voyer said. “We believe we have seen the worst of the economic crisis. It has been a very difficult 12 months for any industry, but especially so for the construction and property industries. We are seeing an increase in the number of opportunities emerging in our key markets and we intend to pursue all viable leads.” In Qatar, HLG currently has a number of projects underway, including the construction of the Al Shaqab Equestrian Centre (under the banner of Qatar Foundation) as well as a number of major commercial high-rise buildings in the heart of Doha. “Recently HLG was also awarded a QR750 million water infrastructure project by Qatar General Electricity and Water Corporation (KAHRAMAA). The project (detailed in the later part of this interview) includes the development of new and independent water infrastructure facilities in the Duhail and Umm Qarn communities,” confirmed Voyer. “We are currently pursuing a number of major projects in this key market and we remain committed to growing our business in Qatar and supporting its anticipated growth in the future. “Further afield, we are seeing
strong prospects in Abu Dhabi and we are also investigating opportunities in Saudi Arabia and Kuwait.” HLG’s current work in hand exceeds US$6 billion (QR22 billion) and Voyer said HLG expected to experience further growth in the coming few years – particularly in the Qatari market, which he said would become an “increasingly larger proportion of HLG’s business”. Given that the HLG prides itself on being at the forefront of industry developments and innovations, Voyer said that HLG would leverage this to offer its clients an international quality of service, from a local perspective. Before the economic downturn took hold, the Gulf region had been experiencing years of unprecedented growth, which resulted in infrastructure development and construction projects across the region reaching peak levels. However, other economies such as China and India were also forging ahead with key developments. The global undersupply and over-demand for building and infrastructure material, as well as skilled staffing requirements, caused significant strain on the industry and resulted in price hikes across the board. Voyer said before the downturn, the cost and availability of materials was an industry-wide issue. However, in the past 12 months he said there had been a “significant reduction in the cost of materials” – it has now stabilised – “which means it’s not the risk it once was for our business”. “Staffing levels too have stabilised, which has allowed us to switch our focus from large scale recruiting to supporting and nurturing the talent we already have on board. It’s this kind of support that helps us to attract and retain good quality staff,” Voyer said. Regarding other pertinent issues that may impede the development of the construction industry, Voyer cited funding as being the major issue. “This [adequate access to funding] is not a region-specific problem, but a world-wide one. Without some relaxation in lending this is not going to change,” he stated. “Fortunately for us, governments have continued to spend on infrastructure, so we will continue to maintain our position within this region.” OCTOBER 2009
13
BUSINESS INSIGHT – CONSTRUCTION & ENGINEERING
PROJECTS FOOTPRINT GROWS IN QATAR
T
he latest award for HLG in Qatar follows a succession of recent project wins for the group in the Gulf region. HLG was awarded two projects in Abu Dhabi an AED1.4 billion (QR1.39 billion) project at Khalifa Port, and is part of a joint venture that will build the AED1.8 billion (QR1.78 billion) St Regis Hotel and Residences project on Saadiyat Island. In Qatar, HLG is underway with the construction of the water infrastructure facilities in the Duhail and Umm Qarn communities. As part of which, HLG will construct a total of six concrete reservoirs, a pump house and associated buildings, road works and landscaping for the Duhail Water Station project. The scope of work also includes the installation of a 15.9 kilometre water distribution pipeline. The Umm Qarn Water Station project includes the construction of three concrete reservoirs, a pump house,
associated buildings and road works and landscaping. A 900-metre water distribution pipeline will also be installed as part of the project. The infrastructure work at Duhail Water Station will include two, 21 million imperial gallons (MIG) and four, 25 MIG reinforced concrete reservoirs over a site build area of 150,000 metres squared (m2). In Umm Qarn, three, 7 MIG reinforced concreted reservoirs will be built over a 50,000m2 area. The two water stations will store, pump and chlorinate desalinated water (supplied from Ras Laffan) for mains water usage in each of the communities. The pumping station in Duhail will feature 12 variable speed drive (VSD) pumps (eight running, two standby and two for maintenance) each with a discharge rate of 550 litre/second capacity flow working under a 40 metre (m) head. The pumping station at Umm Qarn has four VSD pumps
- Al Habtoor Leighton is underway with water infrastructure works in Qatar (pictured). -
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SEPTEMBER OCTOBER 2009 2009
(two running, one standby, one for maintenance) each with 250 litre/second under a 40m head. Each water station will include an administration building, gas chlorination building, scrubber system, lagoon and an 11 kilovoltampere (KVA) switchgear building. The 16 kilometre and 900 metre rising mains pipeline, with 1200mm inlet and 1600mm outlet pipes, will run underground from Duhail and Umm Qarn respectively. The inlet pipes will connect to the incoming Ras Laffan ‘C’ and ‘B’ desalinated water pipeline near the Duhail and Umm Qarn sites. Due to height restrictions in the residential areas of the townships, a portion of the reservoirs will sit approximately 5.5m below ground level, with the upper portions rising 6m above ground level. To prevent any ground or surface water contamination the reservoirs will be protected externally with waterproofing membrane.
BUSINESS INSIGHT – LIFE SCIENCES
BANKING ON LIFE
Irrespective of the wealth that the State of Qatar possesses, every year children die as a result of emirate’s inability to supply adequate levels of transplantable stem cells to treat diseases such as leukaemia. To combat this critical issue, Virgin Health Bank (VHB) and Qatar Science and Technology Park (QSTP) launched a joint initiative in 2007 which saw VHB relocate its headquarters from the UK to Qatar earlier this year. Together, VHB and QSTP are working on an ambitious project which will see the establishment of a national ‘state-of-the-art’ cord blood bank stem cell facility.
Q
atar has a number of issues to address as it pushes forward in building a more robust heath services industry, however there is a critical urgency for the state to address its second most prominent form of cancer, leukaemia. One of the most effective medical ways to treat this disease is with the use of cord blood stem cell technology. Cord blood stem cells are collected from a baby’s umbilical cord, which is otherwise discarded as medical waste.
- Virgin Health Bank Qatar Science Technology Park COO Dr Magnus Nicholson. -
As part of this process VHB will work with local health authorities and medical experts to ensure that all facets of this project are carried out efficiently and safely. The cord blood stem cells will be collected from the baby’s umbilical cord immediately after its birth and directly transferred for processing to VHB’s cord blood bank, which will be housed at QSTP and ready for use in the latter part of 2010. Once at VHB’s cord blood bank facility the stem cells will be divided into two units and stored cryogenically (in liquid nitrogen at -190 degrees celsius).VHB said it is able to complete this process because, in practice, cell expansion technology is likely to be required to provide a usable number of cells for regenerative medicine regardless of how many are in the original unit collected. Dr Magnus Nicholson, the COO at Virgin Health Bank Qatar Science Technology Park, and responsible for Operational and Scientific issues at VHB, said that transplants were already taking place in the UK with the use of donated cord blood stem cells. He said he also believed, as many scientists and doctors did, that transplants using a person’s own stored cord blood stem cells have the potential to offer major health benefits in the future.
VHB’s facility in QSTP will offer a dual storage option where parents can store the cord blood stem cells for private as well as public use. Under the dual storage option parents can opt to keep part of the child’s cells for his or her use in anticipation of therapeutic advancements, and then, with parental permission, release the rest for use in the wider patient community. Nicholson said the establishment of this facility in Qatar would lead the way in developing sustainable medical advances and opportunities in the life sciences sector for the Middle Eastern region. While VHB will initially focus on developments within Qatar, it will look to roll-out medical offerings to establish a market-leading position in the Middle East and in Europe. “VHB has a robust and ambitious business development plan and negotiations are well advanced on a number of major initiatives both in the Middle East and in Europe. VHB expects to be in a position to make some of these public by early 2010,” he added. “VHB believes that it’s highly likely that other new cord blood processing and storage facilities will be established in other GCC states in the future to take advantage of the opportunities to meet clinical needs such as in Leukaemia treatment plans and also those for Beta Thalassemia and Sickle Cell Anaemia.” OCTOBER 2009
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BUSINESS INSIGHT – LIFE SCIENCES
- Cord blood stem cells will be stored cryogenically at -190 degrees Celsius. -
In addition, Nicholson said that VHB would be working with existing transplant centres in Europe and the Gulf region. However, as there only a small number of GCC countries with these facilities, Nicholson said VHB would be working to establish more transplant centres throughout countries in the region. Cord blood stem cells have been used by medical experts as an effective and reliable substitute to bone marrow for around 20 years due to the globally low supply of bone marrow. In Nicholson’s view, cord blood stem cells are an “excellent substitute” to bone marrow, but in many ways he said that they are much “more superior”. “Cord blood stem cells are more easily available than bone marrow because they are taken from a baby’s umbilical cord whereas bone marrow has to be drawn from donors, which is a painful and time consuming experience, but also getting enough donors is a difficult process,” he said. “In addition, the associated risk of infection are lower with cord blood material and the matching success rate is higher, which means the chances of 16
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finding a suitable genetic match are far greater.” Nicholson said in the Gulf Arab region there was a demand for around 6000 transplants a year needed to treat Arab children with leukaemia and other diseases, but currently, only 100 transplants are done each year. “There is an immediate need to supply enough transplantable material in order to address prevalent diseases in this region and one of the best ways to do that is to start collecting cord blood stem cells locally,” said Nicholson. “The longer-term need for Qatar and the region is to combat the epidemic levels of Beta Thalassemis Major. The one way that people have to treat Beta Thalassemis Major, is to give them a bone marrow or cord blood transplant. And a less prevalent problem in this region, but still present in some of the population, is Stickle Cell Anaemia. “Together these are three big problems that need to be addressed in this region, and using cord blood is the best way to combat them. It’s not a question of money, it is a question of supply of transplant material.” While it is important to have
enough transplantable material, it is also important to understand that the supplied material has to be genetically suitable to the vast array of ethnicities that reside in Qatar and the Gulf region. Therefore, it is a matter of quality, volume and diversity, all of which will require a high donor participation rate. “Nowhere in the world can any one cell bank meet the needs of all of the ethnicities represented within the population of the country in which it’s based. That is why international registries listing bone marrow donors and cord blood stem cells units exist. They enable clinicians to search for stem cell units that are a match for their patients on a global basis.” Nicholson and his team at VHB will be working with latest technology in partnership with the Ministry of Health, Hamad Medical Corporation and other bodies to develop the first real national cord blood bank programme, which will provide a “regional oasis” of cord blood stem cell supplies. To coordinate all the facets of this project, Nicholson said VHB was engaged with a broad spectrum of health providers and health authorities in Qatar to “discuss how we will work together to broadly rollout this programme”. He said it was a “very challenging project” in terms of making all the separate components fit together, but he hopes that VHB “will be the catalyst in this process”. Last month VHB successfully concluded its cord blood pilot phase in Qatar, which it had been running in conjunction with local medical providers, the Ministry of Health, Qatar Airways and DHL. During the pilot trials, dummy consignments were sent from Qatar to VHB’s UK processing facility which were followed by consignments containing actual cord blood were made. VHB’s is currently working on securing its first local partnership with a maternity care provider, which cannot be named at this point. However, Nicholson said that VHB was working closely with its partner to train health care professionals in cord blood collection techniques and also to ensure that in future, families receive appropriate educational information so that they are able to make informed decisions about whether to store their baby’s stem cells.
BUSINESS INSIGHT – AgriBUSINESS
FOOD SECURITY:
UNDERSUPPLY, OVERDEMAND As declining agricultural productivity, global warming, scarce water supplies and the competition for energy resources raise concerns about adequate future food supplies, Kelly Lewis looks at how Qatar has intensified its search for a comprehensive and national approach to food security.
- Hassad Food has signed an MOU with Australia-based Bydand Pastoral for beef and agricultural ventures. -
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he term ‘food security’ means having a reliable source of food and sufficient resources to purchase it. Put like this, food security seems simple enough, however, given that the global demand for food is expected to rise by 50 percent over the next 20 years, which will undoubtedly be compounded by a sharp incline in food prices, adequate food security will increasingly become a convoluted task. Without significant, worldwide improvements in agriculture productivity, market access, postharvest infrastructure and rural incomes, the imbalances between food supply and demand will go on to increase food scarcity, food price volatility and food insecurity. On a domestic front, alarms bells rang last year when it came to light that the GCC’s annual dependence on foreign food imports reached a staggering US$10 billion (QR36
billion). To meet its demand, Qatar imports 95 percent of its food from foreign soil. These statistics highlighted the urgent need for Qatar to adopt adequate food security measures, which prompted the Qatar Investment Authority to establish Hassad Food Company last year, a body established to achieve current and future food security for the country. As part of Hassad Food’s drive to ensure food security (in meat, wheat, rice, corn, soy beans, fruits and vegetables for Qatar and the region) it will invest in existing agricultural businesses and projects around the world and re-export the produce where needed. Nasser Mohamed Al Hajri, the chairman and managing director for Hassad Food (Hassad), said the company plans to invest US$500 million (QR1.8 billion) in buying stakes in agricultural companies and
was considering a number of projects with firms in Australia, Argentina, Brazil, Asia, Africa and Europe. He said Hassad was currently in various stages of development with these projects, but was currently examining investment opportunities, which include primary evaluations, detailed feasibility studies as well as due diligence. As Hassad is driven by profits and not just food security, Hajri said the economic climate had presented a number of opportunities for the company to invest in financially distressed companies. He said Hassad was eyeing-up company acquisitions rather than land purchases. However, while Hassad is not strategically targeting agricultural real estate at present, Hajri said the company would not be ruling out the possibility. “Hassad is not after straight land acquisition deals. Company acquisition is a different matter,” he stated. “Hassad’s mandate is of a dual nature; that is to secure food supplies for Qatar and the region and at the same time achieving profitability. Sound business planned by Hassad Food can achieve both.” To comprehensively understand Qatar’s real food supply and demand requirements, Hajri said Hassad was undertaking the necessary research on a daily basis, which is overseen by its expert business development and strategy teams. “In order for Hassad to be a well informed investor, both locally and abroad, it is conducting an analysis to determine the Qatari market supply and demand for staple foods, vegetables and fruits,” he said. OCTOBER 2009
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BUSINESS INSIGHT – AGRIBUSINESS In trying to a find a suitable food security system there is a fundamental objective to consider; food safety. To ensure that all projects and processes will adhere to adequate food safety measures, while undergoing effective monitoring and regulation at each step of the food security chain, Hajri said Hassad was working to ensure that all measures would be met. “A key strategic objective in Hassad’s published corporate strategy reads: ‘Compliance with International Standards and Improving the Level of Nutrition and Food Safety’. In line with this objective, Hassad’s strategy is to develop food traceability systems in compliance with the World Trade Organisation agreement on the Application of Sanitary and Phytosanitary Measures,” he confirmed. “Moreover, regulation and monitoring of the food chain is at the heart of all of Hassad’s agreements with its partners and operators.” As part of Hassad’s food acquirement, Hajri said the ‘top priority’ foods to secure were staple foods including rice, wheat, red meat, white meat, sugar and vegetables. He added, that as part of its food attainment, Hassad would “not be investing in genetically modified crops, nor getting into partnerships with companies that do so”. In real terms, Hajri said Hassad’s
ambition was to meet 60 percent of Qatar’s overall food quantity demand. However, he said that Hassad would not achieve this level of supply alone and would be collaborating with other players in the Qatari market. Given that Qatar already has a number of key trade partnerships, with various countries for the importation of food, Hajri said Hassad would act within its mandate, but “would not assume the role or take the place of Qatari traders”, in regard to trading partners and food pricing regulation, “unless it was otherwise forced to”. Hajri also revealed that Hassad has plans to develop its business in three stages; initially, Hassad will
“As part of our food attainment, Hassad will not be investing in genetically modified crops, nor getting into partnerships with companies that do so.” - Nasser Mohamed Al Hajri, chairman and managing director, Hassad Food focus on investment in companies that produce basic food items, like meat, wheat, rice, sugar, soya and animal feeds. In the second phase, Hassad will extend its operations to fruits and vegetables farming, and in the final stage, the company will begin marketing and packaging produce under its own brand. In addition, Hassad will continue to
- Hassad will iniatially focus on securing a healthy supply of staple foods, such as meat, wheat, rice and sugar. -
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invest heavily inside Qatar in a bid to develop poultry farms and vegetable production greenhouses. “Some of the projects in the first phase are already in production such as the animal feed farm in Qatar. Hassad’s companies in Australia and Sudan are being established, while other negotiations are being conducted with potential partners/ operators in Brazil, Argentina, Turkey, Australia and Vietnam,” Hajri confirmed. “Going forward, Hassad intends to have its own marketing brand and will establish a marketing arm to handle the selling of its products in Qatar and the region.”
In regard to developing and examining the viability of the agriculture sector in Qatar, Hajri said Hassad was willing to consider proposals to assist in developing greenhouses, which will produce vegetables such as tomatoes, cucumber and peppers. Hassad’s meat products are expected to enter the market within the first half of 2010, while it may take two more years for other food products to be readily available. Hajri said Hassad would soon finalise a deal in Sudan, where a “giant project” would be announced once the two parties had concluded their talks. In other developments, Hassad has signed a memorandum of understanding with Australian agricultural company, Bydand Pastoral. Hassad is investigating the purchase of agricultural land to rear 150,000 head of beef cattle and to cultivate a cereal crop production of 150,000 tonnes per annum. Australia’s Bydand Pastoral Company operates 730,000 hectares of agricultural land across a number of geographic regions in Australia. Its core activities include Merino sheep and wool production, fat lamb feedlot production, beef cattle production and cropping and fodder production. Last year, Australian exports to Qatar totalled AUD$182.8 million (QR575 million).
BUSINESS INSIGHT - ECONOMIC RELATIONS
BOOSTING TIES FOR BETTER TRADE
In recent years the economic ties between Qatar and South Korea have continued to build in strength. So much so, that the number of trade agreements have expanded to make way for increased investment in the fields of finance, shipbuilding, construction, healthcare, IT and renewable energy. Last Month, TheEDGE spoke with the outgoing Ambassador of South Korea for Qatar, Kim Jong-Yong, to get his view on the evolving relationship between the two countries.
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- South Korea’s outgoing ambassador to Qatar, Kim Jong-Yong. -
ince the establishment of diplomatic relations between Qatar and South Korea in 1974, year-on-year Qatar has reaped a substantial proportion of the economic partnership. South Korean imports from Qatar were US$14.4 billion in 2008 (QR52.4 billion), while South Korean exports to Qatar stood at just US$1.9 billion (QR6.9 billion). Additionally, while Qatar is the eighth biggest exporter to South Korea, it is ranked as the 38th largest importer from the republic. Ambassador Yong said that strengthening existing ties and increasing exports to Qatar was a strategic objective for South Korea in the immediate future, but as part of developing its economic standing with the emirate, Yong said that his country was also looking to build a more robust economic relationship. He said this would see the development of new markets and enable the diversification of the country’s export portfolio. “A key aim will be for South Korea to strike more of a balance in the import and export trade levels that it shares with Qatar. Last year we saw a tremendous increase in South Korea’s imports from Qatar, but on the other hand, the imports that Qatar received from South Korea were significantly less,” said Yong.
BUSINESS INSIGHT - ECONOMIC RELATIONS “However, some of the escalation in the economic trade value in 2008, which Qatar gained from its exports to South Korea, can be attributed in part to the spike in energy prices.” While some analysts still rank South Korea among the most risky of financial and stock markets due the volatile situation in North Korea, many economic analysts have changed their tune in favour of Asia’s fourth largest economy, forecasting the republic to be one of the few countries to bounce back from the global downturn. Yong said that South Korea had “pleasingly surprised” foreign economists when its “robust economic infrastructure” came to light earlier this year. He said the better-thanexpected performance report in the first quarter of this year left little room for questioning the healthy stance of its economic footing. This optimism was charged by official reports from the Bank of Korea earlier this year after it reported Korea’s GDP grew 0.1 percent in the first quarter, up from the last quarter of 2008. This was a dramatic turnaround from the 5.1 percent contraction in that period, which indicated that since there was only one quarter of negative growth, Korea did not technically weather a recession, as the tangible definition of a recession is two or more consecutive quarters of negative growth. In regard to continued economic growth amidst the wake of the global slowdown, Yong said that the horizon for South Korea and Qatar was very favourable given the fact that both countries had a sturdy footing, and were forging ahead with economic development and diversification plans. He said the demand for South Korea’s energy and petrochemical products would continue to grow, as would Qatar’s need to build its ‘diversification’ infrastructure, which would also help to bolster bilateral ties going forward. One key area that Yong said the republic was targeting in Qatar was the health sector. “South Korea offers some highly skilled medical professionals and cutting-edge health science technologies. We are investigating potential partnerships with medical bodies in Qatar, especially in regard to investment in the training of medical personnel and in the development of new technologies. However, there is
nothing tangible as yet, but we are in advanced discussions,” Yong said. “However, I have to add that one very disappointing aspect during my three-year term as ambassador, was in the lack of partnership development between the state’s, Qatar Science and Technology Park (QSTP) and South Korean partners. “I am sorry to say this, but in my experience, I found QSTP was too orientated toward investment with
the green industry, which is backed by our government’s drive to push forward relevant policies. This encouraging environment has attracted great interest from foreign investors and we are seeing more interest from Qatar in this area,” Yong stated. In order to attract more foreign investors to South Korea, Yong said there remained work to be done in creating a foreign-business-friendly environment, which he said could
- South Korea is looking to boster its economic ties with Qatar. -
European partnerships and it has shown very little interest in partnering with medical corporations in Asia. “I think this a very serious problem especially now that the economic future is headed in the direction of the Asian/Australasian region. This is where much of the future economic growth will be realised. “I tried many times to coordinate discussions with the appropriate people at QSTP, but there was never any progress or encouragement from their side. I approach QSTP regarding joint research programmes in health sciences projects, but also in solar technology. Unfortunately, in the end, due to the lack of interest, I was forced to shift my focus elsewhere. This was one of the most frustrating things that I faced in my role as ambassador,” he said. In attracting foreign direct investment to South Korea, Yong said that the energy and ‘green’ industries presented as the most investmentworthy sectors. “Technology businesses in South Korea have a strong commitment to
be helped by providing more tax incentives and in the reduction of corporate taxes. As much as the energy and green industries have emerged as the new economic growth drivers, Yong said the government would continue efforts to improve the country’s business environment through the deregulation and stabilisation of labourmanagement relations. He said the government would increase incentives to attract foreign investment, by providing better investment platforms, including tax exemptions and the establishment of new foreign investment zones for specific sectors. Yong added that the government aimed to enhance flexibility in the labour market and remove “inconveniences” that foreign investors might face while doing business there, especially in regard to communication barriers. He said much investment would be poured into better language and education infrastructure across the board. OCTOBER 2009
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MARKET WATCH
FDI BY QATAR Ensuring Long-term Financial Returns Martin Menachery, the senior editor of The Wealth Matrix magazine for Arab Capital Markets Resource Center (UAE), discusses the global economic footprint that is Qatar is creating for itself. As one of the fastest-growing countries in the Gulf region, Qatar has been enjoying exceptional economic progress. The country continues to implement strategic plans to make it more prosperous, and to fortify its role in the international community. At the crossroads of a new era of economic, social and political harmony, Qatar is keen on using its abundant wealth to attain its vision of creating a self-sustained and fully developed economy. With a strong resolve to choose the best development path, Qatar maintains its domestic investments, while increasingly improving its foreign direct investments (FDI) around the world.
MARKET WATCH
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ith immediate neighbouring countries being the United Arab Emirates, Bahrain, Kuwait, Saudi Arabia and Oman, Qatar offers businesses a unique and central location for Middle Eastern, and European trading. In conjunction with providing businesses quick access to leading markets and suppliers, Qatar also offers an appropriate economic structure, social environment, general investment climate, technology base and legal framework for businesses to flourish. Even with the current financial crisis crippling most economies world over, Qatar remains among the best performing economies in the GCC and the oil and gas sector continues to be the main economic driver. However, the government is focusing on developing the non-oil and gas sectors such as real estate and financial services in the country to encourage longterm economic sustainability. Qatar has undertaken various projects to attract more foreign investment in the country and has established hubs, including Qatar Financial Centre, Education City, Sidra Medical and Research Centre, as well as free trade zones like Qatar Science and Technology Park, Qatar Economic Zones etc. The country is expected to attain a real gross domestic product (GDP) growth rate of 12.4 percent in 2009 and 9.9 percent in 2010.
Qatar’s FDI scenario
Although Qatar had been less liberalised in the past, the recent privatisation approach taken by the government has given the economy a strong boost. Under a privatisation program, the government of Qatar is dedicated to initiate schemes that strengthen the Qatari private sector. Impressively, Qatar has attracted significant foreign investment during the last decade. However, the oil and gas industry still remains the most attractive sector for foreign investment accounting for approximately 62 percent of Qatar’s GDP, 90 percent of export earnings and 70 percent of budget revenue. To encourage foreign investment in the industrial sector, the government has developed special areas, such as Mesaieed Industrial City (MIC) near Doha, set up by Qatar Petroleum, to
attract industries primarily involved in crude oil, hydrocarbon, petrochemicals and metallurgical production. Qatar is also planning to establish three more free trade zones, commonly known as Qatar Economic Zones (QEZ), to encourage greater FDI and private sector participation in industrial development. Each of these zones is purpose-built to serve particular industries. The first zone will target companies involved in the financial, consultancy, legal, trade and engineering services, the second will cater to logistics, storage, warehousing, manufacturing and transportation services, while the third is aimed at the petrochemical and downstream industries. As per the United Nations Conference on Trade and Development’s (UNCTAD) annual study of worldwide investment trade – The World Investment Report 2009 – Qatar recorded a 43 percent increase in FDI inflows, largely in liquefied natural gas, power and water, and telecommunications, in 2008. The document reports that the GCC countries, including Qatar, used its oil wealth to start huge projects in a number of industries, including refining, petrochemicals, electricity, water, telecommunications, real estate, and tourism and leisure. However, Qatar’s FDI outflow fell from US$5.3 billion (QR19.3 billion) to US$2.4 billion (QR8.7 billion) during the period. Although the figures for Qatar’s FDI outflow have gone down, the government, as well as the local investing community, has signed significant investment deals in both the developing and the developed economies worldwide, ensuring prudent savings and financial gains. For instance, recently, Qatar Holding announced an agreement with Porsche Automobil Holding SE and the family shareholders of Porsche on its investment in Volkswagen AG, Porsche, and the incorporated group to result from the collaboration of Volkswagen and Porsche. Qatar Holding is looking at obtaining 17 percent of Volkswagen ordinary shares, becoming the third largest shareholder, alongside Porsche and Lower Saxony. The company’s overall investment commitment across all components is more than EUR7 billion (QR 37.4 billion). OCTOBER 2009
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MARKET WATCH
CASE STUDY Since 2008, Qatar Investment Authority (QIA), a sovereign wealth fund (SWF), has been aggressively investing in western European countries. The companies that have been bought partially by QIA are the best among the lot, for example Sainsbury J, London Stock Exchange, Barclays and Credit Suisse. With the possible buyout of Volkswagen and Porsche SE stakes placed at more than US$10 billion (QR36 billion), QIA would make one of the biggest ever investments from the Arab world. QIA, backed by assets worth US$65 billion (QR237 billion), is endeavouring to allocate through its investment arm – Qatar Holding LLC – 15.35 percent of its total assets in a single buyout deal with Volkswagen and Porsche SE. The deal, whereby 10 percent of Porsche SE and 20 options that Porsche held on 20 percent of Volkswagen shares, would be bought by Qatar Holding, although the price has not yet been announced and the transaction is expected to finish only by 2011. This buyout would become a reality, once the board seats dispute between Qatar Holding and Volkswagen is settled. After the classic pressure tactics kept by Porsche in the months of October and November 2008, Volkswagen finally agreed to sell its stake to Porsche as seen in the graph. Porsche bought 51 percent stake of Volkswagen. Had it bought 75 percent of Volkswagen, according to the German law, it could have combined Volkswagen and Porsche, and merged the headquarters, from where it could rule the world’s largest automaker. Moreover, as per the special law applicable to Volkswagen, any party that owns 20 percent of the company is a blocking minority. That is the percentage acquired by Qatar Holding. Although this investment by Qatar Holding is risky because it cost the parent company QIA 15.3 percent of its total fund value, in the long run, this investment could fetch good returns. A business first to sell gasoline and then, in order to use that gasoline, sell the cars – nothing could be better than this business strategy. Middle Eastern countries have a natural edge against any eventuality made by their enemies. In this case, gasoline prices spike due to vulnerability in supply and the beneficiary is the oil-rich Arab countries. That could have negative impact on European countries because they are at the receiving end where most of the SWF investments have taken place. Therefore, this would be in the interest of both the regions, to make the regions peaceful and to ensure a smooth supply of energy. This case study is provided by Taimur Saadat (CMT, MBA), head of Technical Analysis, Arab Capital Markets Resource Center, Dubai, UAE.
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Meanwhile in Mali (West Africa), six agreements were signed by Qatari investors recently, which demonstrates the interest that Qatari investors’ have for upcoming economies. The bilateral agreements include air services, legal aid, media relations, sports, political consultation and avoid double taxation. Such business delegations have also visited Poland, Ukraine and Portugal, with serious outlook for investment.
Future outlook
Qatar’s bountiful hydrocarbon resources continue to secure its economy. In view of the economic turmoil across the globe, the economy of Qatar will hold up well, where its real GDP growth is expected at five percent in 2009, and then averaging at 6.4 percent between 2009 and 2013, as per a Business Monitor International report. However, a fall in nominal GDP as well as a slowdown in the non-oil economy will, to some extent, mask this real expansion. Although the growth forecasts for Qatar has been revised down, the economy is to still expand faster than any other GCC economy, and globally the emirate is expected to be an obvious outperformer. However, lower energy prices would mean that, in nominal terms, the economy would contract by nearly 28 percent year-on-year in 2009. However, Qatar has been least affected by the current global economic downturn, and its future economic outlook remains positive. The country seems to be continuing with a majority of its investment plans, both locally and internationally. The government maintains its plans to attract greater FDI, more for the technology, expertise and management that comes with the investment. Finally, the fall in global equity markets actually offers new investment opportunities for sovereign wealth funds, which Qatar has in abundance and is sure to find its way into foreign acquisitions, leading to its ultimate national economic growth objectives. The views expressed in this article are opinions derived from available economic and market data and not necessarily endorsed by Arab Capital Markets Resource Center. Nisha Abraham also provided editorial input for this article.
INSIDE EDGE
INSIDE EDGE
- Qatar is diversifying its economy by laying the foundations for new industries -
In the recent Doing Business 2010 survey conducted by the World Bank, Qatar was ranked 39th from 183 economies. What is notable is that Qatar slipped two places from its 2009 rank of 37th and is placed behind Saudi Arabia (13th) and Bahrain (20th). Of course, Qatar has been in the fast lane since 1995, and its performance has been nothing short of spectacular. With a population of 1.2 million it boasts an enviable per capita gross national income (GNI) of around QR346,000. I wonder if the British economist E. F. Schumacher had Qatar in mind when he wrote his famous book entitled Small Is Beautiful? Rajesh Mirchandani the CEO of Dun & Bradstreet South Asia Middle East investigates.
OCTOBER 2009
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INSIDE EDGE
- Qatar Science and Technology Park is one of the most recently established economic hubs that is attracting foreign investment to Qatar. -
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n spite of being the world’s leading exporter of liquefied natural gas (LNG), Qatar has kept its eye on diversification by focusing on trade and commerce. Of course this is a tall task given the dominant role that the hydrocarbon industry plays in aiding its GNI. As a result it will take more time and effort for Qatar to establish itself as a hub of global trade and commerce, but nobody can fault Qatar for not taking earnest measures in this regard. Qatar’s National Vision 2030 provides a strategic vision for this unparalleled growth. The defined four pillars of development ensure a well-balanced framework for sustained growth. In recent years, Qatar has taken concrete steps for economic diversification and policy reform. Prudent management of its hydrocarbon revenues and investments in key sectors such as health, education, infrastructure and finance are paving way for building a long-term competitive advantage for the country. The government has committed itself to investment programmes across all major sectors and examples of these include the setting up of the Qatar Financial Centre, Hamad Medical City, Education City and the Qatar Science and Technology Park among others. Additionally, initiatives led by the government to encourage foreign investment in the non-hydrocarbon 28
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sectors have resulted in the establishment of several special economic zones. As a part of policy reforms, the plan to consider amending the current corporate tax rate for foreign companies and in several sectors permitting up to 100 percent foreign investments are likely to further consolidate Qatar’s reputation as a business-friendly destination. The impact can be seen in the large influx of foreign direct investment and increased interest in the global community in developing trading relationships with Qatar. In recent times Qatar has signed or is in the process of signing free trade agreements with various countries. In June this year, the GCC nations signed a free trade agreement with the European Free Trade Association (EFTA) block of countries (Switzerland, Norway, Iceland and Liechtenstein). This is likely to enhance Qatar’s regional trade relations in several key sectors. Although the GCC’s free trade agreement with the European Union (EU) has hit one roadblock after another, the proposed EU-GCC free trade agreement will provide wider opportunities for both the partners through preferential access. GCC consumers will also benefit from duty free access to EU exports. Qatar shares strong bilateral relations with the United States and the Trade and Investment Framework Agreement, signed in 2004, stays a precursor to a free trade agreement, which will materialise in due course.
INSIDE EDGE
- Carnegie Mellon is one of many leading universities that have opend their doors in Qatar in recent times. -
As Qatar’s economy continues to grow apace and investors steel, and vehicles with shares of 15 percent respectively. The become familiar with the unparalleled opportunities it EU, followed by Japan and the US is Qatar’s largest import offers, its trade relations are likely to expand significantly. partner. The EU accounts for one third of Qatar’s imports, Areas of growth could include gas-based industries, with 90 percent of these imports consisting of machinery and construction, healthcare, education, and tourism. Examples transport equipment, while 85 percent of Qatar’s exports to of such investments, which we have seen in recent times the EU consist of energy goods. Although livestock, fish and comprise some of the leading universities starting branch certain fruits and vegetables are raised in the country, Qatar imports that majority of its campuses in Qatar, including other food items. Virginia Commonwealth Qatar’s sovereign wealth University School of the “As Qatar economy continues fund, Qatar Investment Arts, Weill Cornell Medical Authority (QIA), has also College, Texas A&M to grow apace and investors played a key role in enhancing University, Carnegie Mellon become familiar with the the overall position of the University and most recently, country. The QIA has been Northwestern University. unparalleled opportunities it With world’s third successful in investing surplus offers, its trade relations are financial resources in regional largest natural gas reserve, oil and gas account for up and international markets, likely to expand significantly.” to 90 percent of Qatar’s therefore diversifying Qatar’s - Rajesh Mirchandani economic base and reducing total exports. The country its dependence on its natural became the world’s leading supplier of LNG in 2006, resources. Active since its and is set to become world’s largest exporter of gas to establishment in 2005, the QIA has recently made some liquids by the end of the decade. Japan has been one of the high profile acquisitions including stakes in London Stock leading export partners for Qatar, while other significant Exchange, Barclays Bank, Porsche, Volkswagen, UK-based export partners include South Korea and Singapore. Japan Four Seasons Healthcare and a co-investment in European imports nearly a tenth of its fuels from Qatar, while the Aeronautic, Defence and Space Company (EADS). As a result of its successful reforms and diversification UK plans to acquire up to 20 percent of its domestic gas from Qatar. policies, Qatar was ranked 22nd in the World Economic At QR80 billion in 2007, Qatar’s import bill is expected Forum’s recent Global Competitiveness Report 2009-2010, to remain strong due to increased demand arising out of the taking the lead in the Middle East and North Africa region. country’s industrialisation programme and its consumption The country’s current strong economic growth and outlook, patterns. Imports of machinery contributed to around 24 which serve as a beacon for foreign investors, which is percent of the import bill, followed by articles of iron and reflected in its macro-economic stability rank of 13. OCTOBER 2009
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COVER STORY
WOMEN TAKING THE REINS Workplace gender inequality is a globalwide problem, however, much is being done to try and bridge the gap at both international and domestic levels. In all reality this imbalance may never be completely alleviated, but what is important to understand and to recognise are the issues and their individual extent, but equally, what is being done to combat such issues from a grass roots and top rung level. Kelly Lewis explores the complexities that women working in the Middle East face and meets four professional women in Qatar, who are tackling these challenges head-on.
SEPTEMBER 2009
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cross the globe, both governmental and nongovernmental organisations are helping to pave the way for societal development, craft legislative changes and aid in broad-spectrum improvement of gender equality standards. However, while not denying that there remains a substantial deficit in women’s rights throughout the GCC countries, there has been notable progress achieved in recent years, particularly in regard to economic and political rights. A report released earlier this year by Freedom House: Women’s Rights in the Middle East and North Africa, Gulf Edition presents detailed reports and quantitative ratings on the state of women’s rights in the GCC member states. The study also forms part of a larger project encompassing the Middle East North Africa (MENA) region; the findings of which will be completed next month. In Qatar specifically, the report highlights the major reforms that have been taking place in Qatar since 1995, including the 2004 enactment of a new constitution as well the steps taken to promote equality, while addressing existing cultural and social traditions that discriminate against women. According to a recent census, the male population in Qatar outnumbers women by a ration of almost four to one. In recent year’s Qatar has experienced an upward trend in its
COVER STORY male population rate, no doubt Qatar’s intense reliance on foreign labour to fuel to its economy has helped induce this disproportionate gender imbalance. This, in turn, inherently influences women’s economic participation. However, while women remain underrepresented in the Qatari workforce, the growing number of both skilled national and expatriate women entering into the workforce is increasing. Women, both national and expatriates, fill a variety of roles in Qatar’s public and private sectors. A number of key business committees and organisations have also been established in the state to aid in the development of women and to provide a receptive business environment. From a national level there is a higher literacy rate among Qatari women than men. The number of Qatari women in education institutions, at all ages and academic levels across the country, outstrips the level of males making Qatar one of the most progressive Gulf states for the education of women. This shift is in line with the emirate’s vision to become a knowledge-based economy and is being driven by a range of education initiatives to diversify the role of women in the workforce. H H Sheikha Mozah bint Nasser Al Missned, the Consort of H H the Emir of Qatar, Sheikh Hamad bin Khalifa Al Thani, is far from the stereotypical Arab woman. She is an active, and high profile figure in Qatar’s political and societal arena. Sheika Mozah’s ambitions for Qatar have spawned a bevy of tangible projects and initiatives that are forging a solid and well-educated foundation for Qatar’s future. From an expatriate level, the global downturn has forced many skilled workers to consider new horizons and Qatar’s optimistic economic outlook has lured a wealth of sophisticated female talent from across the globe. Additionally, as the new wave of ambitious Arab women look to break down the social stigmas that have inhibited past generations, the alliance being struck between professional expatriate and Arab women is an instrumental one. It is an alliance that is forging new and ambitious projects and shifting archaic attitudes. This alliance will continue to drive the to evolution of women and equality in Qatar’s multipronged industry landscape, while building the foundation for a more formidable economy.
“ I ask you to re-commit to each other, to become ambassadors everyday, enabling opportunity not just forecasting it, creating a generation of leaders, connecting innovation to industry, education to employment, unlocking the potentials that help shape our world.” - H H Sheikha Mozah bint Nasser Al Missned
Milestones for women in Qatar: • On March 8, 1999 Qatar became the first Gulf nation to allow women to vote in municipal elections. • Haifa Al Baker became the first woman lawyer in Qatar on February 16, 2000. • H E Sheikha Al Mahmoud was named Qatari education minister in May 2003, the first woman in the Gulf to be given a seat in government. • Mariam Abdullah Al Jaber on February 24, 2003 became the first district attorney in the Gulf region. • In 2006, Amna Al Aubaidli became the first Qatari woman to pilot commercial jet flights. • On May 7, 1998, Qatar became the first Gulf nation to allow women to compete in an athletic tournament and Nada Zaidan became the first Qatari lady to take part in regional rallying in 2004. • The Doha Debates are a Qatar Foundation sponsored initiative under the auspices of H H Sheikha Mozah bint Nasser Al Missned. The debates feature a diversity of topics, including issues related to the Middle East region and women’s issues – the Doha Debates entered in to its sixth season last month.
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- Nouf Al-Sulaiti -
NOUF AL-SULAITI LEGAL MANAGER, VODAFONE QATAR
Set on making a tangible difference in Qatar, Nouf Al-Sulaiti is far from the stereotypical Arab woman. In fact Al-Sulaiti is part of a new breed of Arab women, who are working hard to remove clichéd views and modernise the way the world sees her culture. Growing up on the oil-field plains of Dukhan (on the outskirts of Doha) with a father who worked as a petroleum engineer and a English school teacher as her mother, AlSulaiti was never destined to have an ordinary life. As one of just four Qatari families among a large expatriate community living in Dukhan (at the time), Al-Sulaiti and her three siblings were certainly provided with a multicultural playground in which to flourish as children. Given the extent of her expatriate exposure and the teachings of her mother, Al-Sulaiti developed her English tongue before that of her own native Arab one. However, at the age of seven Al-Sulaiti found herself cast into Doha’s city arena after her parents decided that she needed to have more of a grip on her Arab roots. Al-Sulaiti was then enrolled into an Arabic school, but determined to get the best education and well accustomed to the expatriate culture, she insisted that she be switched back into an English curriculum school. She was granted her wish. Completing her GCSE’s and A-Levels in Doha with outstanding grades, Al-Sulaiti was awarded a fully paid scholarship to study at the university of her choice in the field of either marketing, business administration or law. Al-Sulaiti says growing up in a house where education and hard work were not an option, but rather a mandatory requirement, she knew she was ready to roll her sleeves higher and take on new challenge. 32
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Seeking greener pastures in the field of law, Al-Sulaiti, young, ambitious and with her bags packed full of determination boarded the plane that delivered her to not just a destination, but the beginning of her future. In 2002, she found herself as a fresh-faced law student at the University of Cardiff, Wales, where she spent what she describes as “the best three years” of her life. Al-Sulaiti’s eyes were immediately opened and for the first time she was seeing life through her own eyes, with no blinkers to hamper her vision. But at the end of her three multifaceted years abroad, studying, travelling, competing in kickboxing tournaments, learning an appreciation for music and the piano, it was time for Al-Sulaiti to return home to Doha. At 21-years-of-age Al-Sulaiti started her internship with Qatar Petroleum (QP), which she completed within a year and was promoted to legal counsel in early 2007. As part of her Qatarisation development plan, Al-Sulaiti was trained in both contracts/projects and litigation where she familiarised herself in Qatari and Sharia Law. However in the later part of 2008, development opportunities were few and far between with QP. Struggling to achieve all that she had desired, Al-Sulaiti struck it lucky with a position as a legal manager after being head hunted by Qatar’s telecommunications newcomer, Vodafone Qatar. In stark contrast to her previous role at QP, Al-Sulaiti found herself transitioning from being the only female lawyer in an organisation with 20 other lawyers, to the single inhouse lawyer heading an international organisation in its Qatari start up. For the past 10 months Al-Sulaiti has been spearheading projects, which are helping to create a solid foundation for Qatar’s telecommunications industry and build the legal infrastructure for the future. Some on her key projects, include securitising Vodafone’s roaming contracts, establishing indoor site sharing contracts with Qtel and working to establish the Vodafone Qatar Charitable Foundation, which is to be launched next year. So, what has this labyrinth of a journey been like for Al-Sulaiti? “It’s certainly been multidimensional, colourful and absorbing, but also exhausting at times,” she informs. “When I was young, never knowing what a conventional Arab upbringing should be like, the move to Doha and the integration into a more traditional Arab society was a difficult one to mke. “We were mocked by some of our family and friends because in their minds we hadn’t held on to our Arab culture and language. I never saw it that way. I saw myself fortunate to have parents, who were discerning enough to see the bigger picture, which such academic and life-educating opportunities facilitate.” Al-Sulaiti says her time spent in Wales was an integral part of her evolution, which helped to shape her individual identity as both an international citizen and modern Arab woman. “At times, as a young Arab female living in Qatar, you can feel overwhelmed by the conservative nature of life here, especially if you have been given the opportunity to find your feet abroad,” Al-Sulaiti says. “Sometimes you feel like you want to break free of the societal rein and be given the opportunity to freely make your own mistakes and experience life for yourself. In Qatar, particularly in the education ranks, you can be too spoon-fed and that’s what
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I loved about my education abroad because there was no spoon feeding, you really had to earn your academic stripes.” After she graduated, Al-Sulaiti says the question of “do I want to return to Qatar or stay abroad” did cross her mind more than once as she had become accustomed to the Western way of life and was fully aware of the professional opportunities that the international doorstep offered. “As I was on a scholarship I had to return to Qatar, but at times I did question whether it would be the best professional move for me. I have to admit it was a shock coming back home and I found it really difficult to readjust and to strike the right cultural balance. Even now it feels like it’s still a work in progress,” she says. “In the beginning working with QP was really difficult because I was the first scholarship graduate the company had received – they weren’t prepared for me at all – which meant the first few months of my time there was educationally and professional unproductive. This really didn’t help my already existing shock factor and unfortunately it resulted in a pretty de-motivating experience for me. “I was still on a buzz from graduating; I was excited, ambitious, I wanted to work and I wanted to learn, but in all reality I felt like I was put in a corner and not acknowledge at all. And in the beginning when I went into meetings, especially when there were more senior Qatari males present, I was not taken seriously,” states Al-Sulaiti. Fortunately for her, a few months down the line some experienced expatriate female lawyers joined the team, who sympathised with Al-Sulaiti’s situation and took her under their wing. “One of the female lawyers drafted a training development programme for me based on how she was trained in the UK. I
started shadowing and doing rotations using all the members of the legal team as mentors – if it wasn’t for her, I would have probably still been sitting in that same corner,” she says. By 2008, Al-Sulaiti says there were seven Qataris working in the department as part of the Qatarisation development plan, which decreased the already scarce development opportunities available to interns. Al-Sulaiti recalls the time when two young Qatari male legal trainees tried to “get ahead by playing their Qatari card”. Unfortunately this “rank-pulling mentality” is a problem that stems from the “old culture”, from Qataris wanting to always be on the top perch, says Al-Sulaiti. The point of concern she says its not in striving to be ambitious, but rather the vehicle that Qataris are using in which to succeed, nationality or education? While nobody likes to be the office fledgling, she says it is important for people to learn how to use their own wings if they ever wish to soar among larger birds. In terms of equal employment rights for men and women in Qatar, and as someone, who practises the law and tries to shape and implement it, Al-Sulaiti says she “finds the level of inequality in Qatar’s legal framework, especially in regard to workplace equality, very frustrating”. “It very much comes down to how the individual employer wants to play their hand. At Vodafone I know they’re an equal opportunity employer because I write the contracts,” she confirms. “However, at my last post with this was not the case. For example, I, nor my female Qatari colleagues, receive a housing allowance. Why? The reasoning provided was that it’s assumed an unmarried female Qatari lives with her parents, and when married she resides with her husband. “We detested this rational as it was more about principal than it was law. We wrote to the director of administration and to the human recourses manager voicing our disgust and asking them ‘what ever happened to equal opportunity and to Qatarisation?’” After that, Al-Sulaiti says they managed to get the ruling turned around to enable all Qataris, male and female, to received their housing allowance. However, she says there remained a point of discrimination because in the event of marriage a female Qatari relinquishes her right to housing allowance. “We say that we’re a democracy, we say that we’re an equal opportunity country, again it sounds good in theory, but when it comes to across the board implementation there’s a lot of work to be done,” states Al-Sulaiti. In regard to whether returning, professionally educated Qatari women are granted a ‘broad slate’ in which to carveout a sturdy career, Al-Sulaiti says in comparison to Western countries that Qatar’s career offerings remain less expansive, but it is “a work in progress”. “I can say with confidence that within the next five to 10 years, I believe Qatari women and expatriate women, if they are ambitious, will be able to be rewarded for their potential in Qatar as much as they would be in any other country. But currently, Qatar’s career offerings aren’t in line with global opportunities,” Al-Sulaiti says. At the end of the day, Al-Sulaiti believes that success in the workplace is not about being a Qatari or expatriate woman, but about women knowing their worth. “There are many women out there like me, especially of my generation, who believe that collectively we can bring about change if we keep pushing to break the ‘glass ceiling’ mentality,” states Al-Sulaiti. OCTOBER 2009
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- Ghada Philip El-Rassi -
GHADA PHILIP EL-RASSI
BUSINESS PROCESS IMPROVEMENT DIRECTOR AND ADVISOR TO THE CHAIRMAN, MEEZA
For Ghada Philip El-Rassi life has been anything but ordinary or easy. Hailing from the Lebanese capital of Beirut, El-Rassi experienced a childhood where the juxtaposition of conflict and colour was commonplace. At the young age of 17, El-Rassi lost her father. Compelled by the loss, she was cast into early adulthood when she stepped-up to take-on the family’s financial reins helping to support her mother and two brothers. El-Rassi was fortunate to have a father, who was not only a knowledgeable journalist and poet, but also a man who understood that his literary footsteps, while they had brought him success, would not provide the same well-heeled footprints for his daughter. Before his death, El-Rassi’s father fostered her early-found passion for science and instructed El-Rassi to employ her inquisitive nature as a foundation from which to propel an auspicious career. With his words in mind El-Rassi made the cornerstone move enrolling in a BS Computer Science degree at Beirut’s Saint Joseph University. On her first day El-Rassi immediately realised that she was part of a minority being one of only eight females enrolled in a class of 150. Rather than being intimidated by the overwhelming gender imbalance, 34
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El-Rassi was savvy to the favourable advantage this presented. During her four-years of study ElRassi put her nose to the grindstone, working as a novice IT teacher in the mornings before her classes then, as soon as school was out for the day, she would change hats once more and start work as an assistant accountant in a local store. However, the gruelling study/work schedule was not the greatest battle she had to endure. During her study period, and for most of her young life, El-Rassi watched as unrest advanced in her country. The 16-year-long Lebanese Civil War was Lebanon’s most multifaceted war, which completely devastated central Beirut and claimed the lives of hundreds of thousands. El-Rassi remembers the suffering endured during those years; watching as friends perished and forced to flee from the conflict herself may times those years were unnerving for her. The War at times manifested at the gates of the university choking her study as an on-again, off-again fight. Less than 40 students graduated with El-Rassi and as skills were in demand in Beirut, she found herself offered an IT position fresh out of school in one of the city’s largest hospitals. Unfortunately, the position never materialised as El-Rassi made the call to follow in support of her
mother, who had decided to relocate to the north of Lebanon. The precarious transition from the technically equipped city of Beirut to the “almost primitive” city of Tripoli, proved to be a trying time for El-Rassi, both professionally and personally. After a year of investment in her first professional position as a programmer with Apple Inc. (Apple Computer Inc. at that time), El-Rassi pulled up roots again, moving back to Beirut where she took a position as chief of the computer centre for Computer Generation. Her relocation was more than just a career gain; it led to the meeting of her soon-to-be husband. After they were married they made the move to Manama in Bahrain. El-Rassi took up a position as senior support officer for Al Hilal Computer Company where she remained for three years. This position offered her, for the first time, the challenge of working in English, but another first time experience was on the way for El-Rassi, the birth of her first child. She now has two sons, aged 14 and 11. An old friend of her father’s later approached El-Rassi to establish a computer training facility in Manama (later named Al Ayam Computer Training Centre), where she headed-up the operation as its director. While she enjoyed this position, ElRassi says that “due to the advanced level of education in the country” it was difficult during those years for expatriates to holistically advance their career and this was the case for her husband. So, El-Rassi and her young family decided to make the professional move to Qatar. A move, which at that time (1997), they did not know would prove to be a lasting one. “When we initially arrived, it certainly was a shock to the system. It was not like the life I had come accustomed to in Bahrain and in the initial stages I did find it a very hard place to settle in to,” El-Rassi says. “In Qatar [in those days] women did not play an active role in society the way they do today, so there were limitations as to what I could do as a professional woman – this was a hurdle that I had not faced before.
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“In Bahrain I used to integrate with locals, but in Qatar this wasn’t yet the social norm, so I found this a real burden from a societal point of view. But as a working woman, it was more complex as I couldn’t just freely go and open up my own training centre like I had done in Bahrain.” But as time went on, El-Rassi found her professional footing and the social annex she was searching for. At the time when Qatar-based Ras Laffan Liquefied Natural Gas Company (RasGas, a joint stock company between Qatar Petroleum and ExxonMobil) was launching its operations with Train 1, El-Rassi applied for a position within the company’s training centre where she took on the role as materials and logistics systems specialist. “When I began with RasGas, it was looking to boost the level of its training capabilities. After the completion of some specialised training courses, I was appointed as the company’s core structural analysis program (SAP) trainer and I remained the only SAP trainer for a period of three years. However, while I remained the SAP trainer, my professional role was quickly advanced to technical assistant, then to assistant system analyst, system analyst and then onto a senior role in just under five years,” she informs. “During this time I was the only expatriate Arabic lady working in the IT department and I was also the first expatriate Arab female to be promoted into a senior IT role at RasGas.” While RasGas provided El-Rassi with a “fabulous experience”, she says the male to female ratio was very disproportionate, which at times
provided some difficulties in regard to being accepted as an equal. “Fortunately I am part of the ‘new
wave’ of Arab professional females, who understand their worth and rights. So while some people found it hard to accept the seniority of a woman, I never allowed myself to be intimidated. Ultimately I’ve never let these types of archaic views stop me from wanting to achieve great things in my career,” states El-Rassi. Four-years on, El-Rassi found herself working for Qatar Petroleum (QP) as a business system analyst where she headed-up the SAP implementation project. While El-Rassi says her time at QP did not directly build on to her existing IT knowledge, it enabled her to develop a wealth of analytical business skills, which opened new doors for her. Within three years of moving to QP, El-Rassi found herself back on familiar ground with RasGas operating as a
senior system analyst for the Production Allocation department. However, it was not long before her talent was snappedup by Qatar’s new IT services and solutions provider, MEEZA. “I was approached to take up the position at MEEZA’s IT Data Centre as bid manager for the Business Solutions team. I was immediately excited about the opportunities that this position would present, as MEEZA was a new company and it was to be the first time I would be involved in a startup project from that level,” says El-Rassi. As part of a core team of just eight people when she started, El-Rassi not only had to grasp all the new aspects of her position, but she literally had to learn to ‘run in her heels’ in order to keep pace with the dynamic and growing company. “When I started with MEEZA, my role was very challenging in the beginning and although I was technically classed as a bid manager, I found that before long I had tried on and worn a variety of ‘new hats’. From this month, I change professional hats again, becoming the business process improvement director and advisor to the chairman. In under two-years at MEEZA ElRassi says that she has worked in a multidimensional format achieving a bevy of professional goals, higher than what she had ever expected to achieve when she first started. And in her new role, there will be no letup in regard to advancing her career – she now directly takes on the sturdy task of developing MEEZA’s business solutions applications, security and IT strategy portfolios. SEPTEMBER OCTOBER 2009
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COVER STORY
- Anqi Qian -
ANQI QIAN
DIRECTOR OF RESEARCH PARTNERSHIPS, SIDRA MEDICAL AND RESEARCH CENTRE
At 17-years of age, with determination and an inquisitive mind, Anqi Qian left her native city of Shanghai, China, in search of an education in the field of medical research. With her father a physician and her mother a nurse, Qian says she was always curious about medical science, so it was a natural progression for her to move in to this area of study. Her quest took her to the US where she received her Doctor of Philosophy (Ph.D.) from the University of Pittsburgh. During her studies she investigated the biophysical properties of NMDA receptors (a type of trans-membrane proteins strongly implicated in many developmental and pathological brain processes). After graduating she landed her first professional position at the University of Pittsburgh School of Medicine, followed by the University of Chicago and the Abbott Laboratories in Chicago. She was also a member of the Society for Neuroscience and the Biophysics Society. After studying and living in the US for more than 11 years, Qian’s husband was offered a position in the small Gulf state of Qatar. Qian says while the move did cause a disruption 36
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to her career path (at the time), it was a path that she was ready to explore. She uprooted with her husband – the current assistant dean for Academic Affairs Carnegie Mellon University – and relocated to Qatar five years ago. But, it was more than just Qian’s professional career that changed directions after moving to Doha. Only a short time after arriving, Qian fell pregnant with her first child. She now has two young boys, aged four and one. It did not take long before Qian joined the ranks of a small unit at Carnegie Mellon University where she worked for more than four years as the director of Strategic Initiatives. Qian took on the task of establishing and maintaining strategic partnerships between Carnegie Mellon and governmental agencies and industrials in Qatar in a bid to advance research, technology commercialisation and executive education. Qian only recently began her new role as the director of Research Partnerships at Sidra Medical and Research Centre in Doha. Qian forms part of Sidra’s Research Department – a specialised 10-person team established around six months ago – heading-up key projects to aid in boosting Qatar’s overall medical research knowledge. “While I have only been involved with Sidra for a short time, my background was in biomedical research and at some point I knew I’d always want to move back into this field. I enjoyed my time at Carnegie Mellon, but I was happy to make the move to Sidra because this role is much more relevant to my training,” says Qian. In this position Qian is working on scientific strategies and programmes to support direct health themes important to Qatar, including diabetes, cancer, while also developing the research platforms that support awareness of these diseases. The medical approaches Qian and her team will be developing are genomic, proteomic and genetic approaches, which will prove fundamental in developing a comprehensive understanding of the mechanisms of disease resistance in the local population. “As part of this process I will be talking to potential partners about collaboration programmes. There will be a great deal of time spent discussing, exploring and securing partnerships in specific research programmes. However, we also have to nurture the research infrastructure and see how we can collaborate with existing entities, including local universities and Qatar Science and Technology Park – this will take a lot of dedication, but will prove to be a very exciting development,” informs Qian. So, has Qatar proved to be a comfortable and rewarding environment for Qian? Well she says, while the role she fills now is very different to previous positions held in the US, overall she says that Qatar has proved to be like a new pair of shoes: uncomfortable the first time you try them on, but become more comfortable with each and every step. “I think some women can become uncomfortable with the idea of moving into a different cultural environment, particularly in the Middle East and especially in regard to how they will be received as a professional expatriate woman,” she states. Having the esteemed professional title of Ph.D. has certainly helped Qian gain stature within her professional community, but in some cases she says that the task of proving herself as an equipped professional woman has taken more than the
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paper her credentials are written on. “Because I hold a Ph.D. degree, I find that people generally do hold a higher level of respect for me, so for the most part I don’t feel that my professional ability is questioned. But of course, while credentials generally speak for themselves in most counties, sometimes I find that I do still have to defend my professional merit here,” she informs. “I often attend meetings where I’m the only female in the room among a large group of males. Sometimes, not always, I do feel that my authority may be questioned and I have to speak up for myself. I don’t know if that’s because I’m a woman, because I am the youngest person in the room or because I’m a foreigner. I really can’t pin point where the questioning of authority stems from, but to avoid it becoming an issue I always ensure that I’m well prepared to deal with any sceptical questions should they arise.” Qian does not deny the fact that every country has its own inherent set problems and issues, however, she says the difference is in the level and extent at which a person is exposed to them. “Professionals who move to Qatar can sometimes draw unrealistic comparisons between the professional climate of Qatar and foreign countries where they have previously worked. No matter where you’re located, you will always experience a certain level of difficulty,” Qian says. “For example, if I compare the US to China: in the US people are hesitant in directly making reference to gender related issues, but in China people have absolutely no problem in directly raising gender related problems – this causes major professional and societal problems .” However, there is one area in particular that Qian highlights as being a major hindrance in the development and performance of working women in Qatar – the absence of adequate childcare facilities. “One thing that’s very problematic for professional working women in Qatar is the inadequate level of child day-care facilities. Much of the day care that is offered here is only available between the hours of 7.30am to 1.30pm,” she informs. “Basically this means that you can’t work without having a nanny take care of your children. I would prefer, as many women do, to not rely on the use of a nanny, but rather have greater options and access to regular day-care facilities as offered in western countries. “It is important for the state to establish a diversity of daycare centres, with more realistic operating hours in which to support working women, while also improving the overall quality and delivery of educational programmes that are offered in the centres. “As a professional working mother, I definitely find it a challenge to try and juggle my working hours around the limited day-care hours on offer. There needs to be more holistic initiatives established to support working women if Qatar really wants to see a raise the workforce participation rate of women.” In terms of ongoing professional development, Qian says that “Qatar currently doesn’t have a broad spectrum of professional training options available – this is something, especially in my field of work, which is an essential tool in order to develop of my skills and knowledge.” “Establishing multifaceted education hubs is always a key challenge when you have a rapidly maturing workforce and
- Sidra's project planning specialist, Ramy Andary with Anqi Qian -
when your education infrastructure is still evolving, but it also hinders the development of professionals, who require specialty skills,” she states. Only recently, Qian says she spoke to a local group of men and women, who want to further their professional education in Qatar. But unfortunately, in reality she says this is quite difficult to achieve because there is limited full time and part time choices available for special disciplines. “For example, there are few options available for people, who want to study a particular science discipline – currently there’s no Ph.D. degree offered in the country and this is a major educational challenge that the state needs to overcome,” says Qian. “People don’t want to be forced to leave Qatar in order to follow their study ambitions and while there are online study options available, credentials wise, many times these options are not suitable alternatives. “There has definitely been substantial investment poured into the development of the local healthcare industry. I would like to think that Qatar’s on the right track in terms of establishing broader education initiatives, robust regulatory framework and greater investment in to biomedical research. However, these are not small challenges and it will take a lot of dedicated and specialised people to make it happen,” she says. In terms of national competitiveness in attracting and retaining qualified professionals, Qian says that Qatar will need to become more competitive than its neighbouring countries in regard to the level of wages, legal rights and development prospects it currently offers. She says this is a sizeable issue and one that will need to be dealt with in the short-term future. As Qatar is seeking to boost it medical facilities across the board in the coming few years, there is a direct need to ensure that adequate levels of staff can be trained and retained from a local level. To support this, Qian says there needs to be more done to encourage young people to invest themselves in the field of medical research. “It is important that the next generation comprehends the vital role that biomedical research will play in Qatar’s medical future,” Qian informs. “We need more young people to enter into the medical research field and for them to be able to see different career paths. But we also need, from an early age, to foster and encourage inquisitive minds and develop strong analytical skills in children if we are to actively guide and nurture the next generation of medical experts through the ranks here in Qatar.” SEPTEMBER OCTOBER 2009
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OFFSHORE VIEW TheEDGE
talks to a female engineer working the rigs of Qatar’s oil industry
For most people throwing on a hard hat, overalls and hitching a ride in a helicopter is not the average start to a working day. For our interviewee (who has requested anonymity), working in the oil and gas industry as a wellsite, engineer such novelties of the job have become routine. Hailing from France’s Parisian capital,and coming from a family that already had one member wearing the engineer’s cap, she embraced her father’s inquisitiveness to undertake an ambitious study period that saw her begin her career as a software consultant after graduating from one of France’s best engineering schools. However, she soon realised that her curious mind and need for human interaction demanded a more multidimensional career. After some self-discovery travelling throughout the Australasian landscape, she found her way back on European soil and on her way to the North Sea, where she 38
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would don her well-site engineers hard hat for the first time. After spending a few years working in the field in Denmark, she later made the move to Qatar where she remains, but she has moved up a notch professionally taking the title of chemical engineer. “As a member of the Chemical Team, I have technical and economic responsibilities and report to the team leader for Production Chemicals. I work closely, with both onshore and offshore production staff to achieve the production goals in a safe manner, while effectively managing and fine tuning the chemical applications and processes for the rigs,” she informs. When she first relocated to Qatar she tells us that it was sometimes “difficult” being accepted as a female in the social circles, but ironically not in a professional capacity. “Although the offshore and onshore oil and gas industry is a heavily male-dominated environment, because the offshore atmosphere is so multicultural you find the differences between the sexes and cultures to be far less apparent than what many would assume,” she notes. However, she says the operational practices between working in an offshore oil and gas company in the North Sea, as opposed to working offshore in Qatar are vast. “The environment of the offshore oil rigs in Europe are very safe and clean and the overall standards are much higher in comparison to the rigs I have seen and worked on in Qatar,” she states. “In Qatar, the rigs that we have are just as old as the rigs I was on in the North Sea. However, in my view the daily operational spend on each oil well in Qatar is roughly the same as it is there, but the wells in the North Sea are more complex, so the operational process takes longer. Out here [in Qatar] it only takes around a month to drill a well, but in Europe, it takes two to three months.” In Qatar, she says many rigs are running at escalated costs due to inefficiency and high numbers of inexperienced crew members. “Out here you pay the same amount of money to run a rig that’s in bad shape, with a largely inexperienced crew. Many of the crew members are not trained adequately and for the majority, English is not their first language. This makes communication between the crew and supervisors (who generally have English as their native tongue) very difficult,” she informs. She has also experienced difficulties in Qatar with some of the contracting companies that supply the crews. “At times they [contract recruitment companies] have sent us people, who don’t speak any English, which is extremely concerning, and when it comes to day-to-day operations and health and safety practices it makes for disastrous conditions.” “I think this happens in Qatar mainly due to the absence of regulation and a lack of efficiently trained staff. When people are recruited on to the rig they are required to hold a basic safety certificate, however, many times I do have to question the quality and authenticity of such training. In Europe, she says the staff rotation pattern runs, on average, for two-years – enabling the establishment of a team that is well informed and in tune with each other. “There is a huge offshore staff turn over rate in Qatar to where it seems that you never see the same crew members for more than a few months in a row. While they are supposed to be stationed for long periods, this is rarely the case,” she notes.
COVER STORY However, while there are some issues within the local industry, overall it has been an interesting and challenging move for her. “It’s really interesting industry. In the field we have a chain of around 100 wells that produce different types of oil. It’s essential to make sure that when the oil reaches the client, all the water has been removed from the line and the oil is clean,” she informs. “It sounds like a simple process, but in reality the process is intense and requires the changing of major valves and chemical injection and balancing procedures. Some of the key components in my job are to balance and fine tune chemical levels in the rig’s operations, but also to amalgamate all the operational data from the rigs to keep track of supply and demand requirements, and ensure operational efficiency.” Now she is positioned onshore as a chemical engineer, she says that she does miss the rig action from time to time, but working onshore is a whole new ball game, which presents a new set of challenges to overcome.
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GROWING APPETITE TheEDGE’s economic barometer, Karim Nakhle, asks: Is the global economic crisis over or is it the calm before the storm? In a world shaped by science and technology, measuring physical changes in the atmosphere to predict the weather and seek refuge from storms is easy, but measuring the economic climate changes, even long after the economic storm has hit our shores, still seems impossible. 40
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ECONOMIC BAROMETER
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he worlds’ seasoned economists, pioneering bankers, and avant-garde technology gurus, monitored defencelessly the rise and fall of modern empires and sector leaders; our economic connoisseurs could not reform, reshape, or restructure market sectors and industries, but were instead were left to watch helplessly, with fingers crossed, as markets fluctuated, hoping that their life savings, house and job, would not be next to go down the drain. However in the world of finance and business, some companies share the rain, but nobody enjoys sharing the sunshine – one company’s misfortune is often another company’s opportunity. The opportunity to turn around their operation, expand, grow, develop new markets through mergers or acquisitions of competitors, peers, and if luck is in their favour, pioneers. Value investors see an opportunity in every calamity. Mergers and acquisitions often illuminate their thoughts, pour fuel on their passion and feed their greed when others are fearful. Value Investors are often dormant, laying low or in the shadows, but the moment they spot a light shining out on their targets, no matter how bright or dim, they splash out a spring of investments. The most lucrative part of their investment journey comes after an acquisition is made.
Take it from Buffet:
Warren Buffett, American investor and the CEO of Berkshire Hathaway, has plenty to say on the matter. “It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price…Most people get interested in stocks when everyone else is. The time to get interested is when no one else is.” In his Berkshire Hathaway 2000 Chairman’s Letter, the doyen of investors noted: “The line separating investment and speculation, which is never bright and clear, becomes blurred still further when most market participants have recently enjoyed triumphs. Nothing sedates rationality like large doses of effortless money. After a heady experience of that kind, normally sensible people drift into behaviour akin to that of Cinderella at the ball. They know that overstaying the festivities – that is, continuing to speculate in companies that have gigantic valuations relative to the cash they are likely to generate in the future – will eventually bring on pumpkins and mice. But they nevertheless hate to miss a single minute of what is one great party. Therefore, the giddy participants all plan to leave just seconds before midnight. There’s a problem, though: They are dancing in a room in which the clocks have no hands.” Little is known about the Qatari investor’s flair for nosing out the right investment, but their courage to acquire any given opportunity is admirable, a real phenomenon. Industry leaders in Qatar are following in the footsteps of Warren Buffet having started their ‘corporate shopping spree bonanza’, acquiring global players, and cementing their
position on the international market in several sectors. Sitting on about QR4.4 billion worth of profits from its eight-month-long investment in UK-based bank, Barclays, Qatar’s foray into European mergers and acquisitions is looking a lot more successful today than what it was this time last year. The Qatar Investment Authority (QIA), Qatar’s sovereign wealth fund, and Challenger, a vehicle owned by the state’s royal family, jointly made the Qatari investment in Barclays. It was QIA that was looking somewhat out of its depth 12 months ago. Having shelved a takeover bid for supermarket giant J Sainsbury at the last minute in late 2007, in July last year it emerged that Four Seasons (the UK nursing homes operator QIA bought through the Three Delta fund in 2006) was in trouble. The high-profile collapse of the bid for J Sainsbury led to questions about QIA’s deal-making experience and this was only compounded by the failure of the highly leveraged buyout of Four Seasons. However, QIA is benefiting today from steamy returns from its bet on Barclays. QIA is focusing on buying stakes in premium companies of the European corporate world. QIA had to compete hard to put its money to work, and successfully did so, by acquiring stakes in Credit Suisse, which hiked to 8.9 percent after the Swiss bank’s capital raising in October 2008. In the post-credit crunch world, Qatar’s liquidity is regarded as a valuable commodity and, as such, the investment landscape is infinitely more amenable to a sovereign wealth fund looking for opportunities. It can make choices rather than trying to win auctions.
- Qatar is in discussions with global players about mergers and acquisitions -
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Most recent acquisitions include:
Porsche Automobile Holding SE, Qatar Holding bought a 10 percent stake in the vehicle manufacturer and took over most of the company’s options for Volkswagen AG (VW) shares as part of an agreement struck in August, under which the two companies will merge by 2011. Qatar Holding announced it would acquire a 17 percent stake in VW, as part of a deal that will exceed a total investment of QR36 billion. In a recent statement, Qatar Holding said the deal would see it become the third largest shareholder in VW, after Porsche and Lower Saxony. The purchase follows the UAE’s Aabar Investment acquisition in March, of a 10 percent stake of Daimler AG, famed for its Mercedes-Benz brand, indicating continuing Gulf interest in the European automotive sector despite the economic downturn. Also in its statement, Qatar Holding said that Porsche would establish research facilities in Doha as part of the deal. The latest investment in Porsche could prove to be just as successful for QIA as the Barclays deal has. Qatar Telecom QSC raised its stake from 9.9 to 42.9 percent, by acquiring a further 33 percent stake (or 426.8 million ordinary shares) in Liberty Telecoms Holdings (a telecommunication services provider) for QR104 million strengthening its partnership with the diversifying San Miguel Corp (SMC). While Qtel has already established its presence in Liberty earlier on, it was not able to immediately get hold of the stocks because of a fouryear trading suspension on the stock. The suspension was only lifted recently. SMC and Qtel plan to groom Liberty into a leading telecommunication company in the country, with voice calls and short messaging system or ‘texting’ forming part of its core businesses offerings. Recognised as a booming market, Qatar has also enjoyed its fare share of acquisitions within the country, not just on a crossborder level. GDF Suez announced in the summer, the acquisition of Texasbased Anadarko Petroleum Corporation’s 60 percent share in Qatar’s offshore Block 4. GDF Suez will become the operator of the license, which covers 3132 square kilometres and is said by the company to contain several exploration prospects. In 2008, 42
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GDF Suez signed a memorandum of understanding with Qatar Petroleum International (QPI), the international division of state firm Qatar Petroleum to develop international cooperation between the two groups, especially in the areas of exploration and production, LNG, storage and downstream gas activities. GDF Suez also won the bid for Ras Laffan C, Qatar’s largest electricity generation and seawater desalination project, which involves the construction of a 2.73 gigawatt (gw) power plant and a 286,000 cubic metres per day (cmd) desalination facility. NYSE Euronext, the holding company of NYSE Group in the US, Europe’s Euronext N V and operator of the world’s largest stock exchange group, has set a foot in Qatar by acquiring a 20 percent stake in the Qatar Exchange for QR727 million as part of the deal with its parent company, Qatar Holding. The deal gave birth to the new Qatar Exchange based on NYSE Euronext technology. The QIA through Qatar Holding, will own the remaining 80 percent of the stake. The QR727 million share is the largest investment to date by NYSE Euronext in a foreign stock exchange. NYSE had initially planned to allocate an investment capital of QR910 million in order to acquire a 25 percent stake. The financial outlay was later reduced to QR727 million after the Qatari government announced it was planning to publicly list the Qatar Exchange in the near future. NYSE Euronext secured the deal outpacing the competition from the London Stock Exchange, which was also keen to expand its business in the region. Qatar, a major exporter of liquefied natural gas (LNG) aims to become the second-largest economy in the Gulf Cooperation Council (GCC) region by 2015 and NYSE Euronext expects to benefit from the growth potential. Both partners aim at boosting the business in the Gulf region by competing with the Abu Dhabi and Dubai exchanges. As for the result, were these mergers and acquisition beneficial? Were they some great investment opportunities during tough times? That remains to be seen, and will only be judged when the time is right – you only find out who is swimming naked when the tide goes out.
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DOHA TRIBECA FILM FESTIVAL
FROM FOLKLORE TO FILM To reveal your identity to another, you have to find yourself first and to explore your similarities you have to understand your differences... This is just what Arab youths are doing as part of the Doha Tribeca Film Festival (DTFF). Rather than turning the lens outward on the world, they are focusing it on their inner identities to explore their multifaceted, complex, but beautifully rich culture. Kelly Lewis speaks with Amanda Palmer the executive director of DTFF to explore the tangible differences that Qatar’s first real film industry initiative will deliver.
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- DTFF will unveil its creative hand on October 29 -
- Mira Nair's Amelia will make its regional debut on the opening night of DTFF -
orn out of the idea of reviving the cultural and economic pulse of New York’s lower Manhattan district in the wake of the September 11, 2001, attacks, the Tribeca Film Festival (TFF) was founded by actor, Robert De Niro in conjunction with film producer, Jane Rosenthal and her husband Craig Hatkoff. In order to give the Qatari community a modern-day canvas in which to explore and craft their identity, and a platform to engage, educate and impassion Qatar’s multicultural society, H E Sheikha Al Mayassa bint Hamad bin Khalifa Al Thani and CEO Abdulla Al Najjar of the Qatar Museums Authority, embarked on an initiative with the founders of the New York TFF, which materialised into the DTFF. The project has been in the making for three years and as such, the mission has evolved into of more a journey where the footprints of many have helped pave the way for a holistic film community, rather than just an annual film event. While DTFF is modelled is on the success of TFF, it remains uniquely Qatari in its identity. In its inaugural year, DTFF will embrace and celebrate a plethora of Arab and international cinema as well as weaving the threads that will bind together a greater fabric for a local film industry. At the head of the charge is DTFF executive director Amanda Palmer (also head of Entertainment for Al Jazeera English), who is led by her passion and commitment in creating what will truly provide a multifaceted voice for not only the local, but also regional filmmaking industry. When the red carpet is rolled out at Doha’s artistic beacon and architectural icon, the Museum of Islamic Art (MIA) on October 29, DTFF will cement itself as the foundation for the future of filmmaking in the region.
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- Executive director, Amanda Palmer, is driving DTFF from vision to fruition -
- Mohamed Al Daradji's Son of Babylon will captivate audiences during the festival -
Throughout its history, filmmaking has provided a multidimensional vehicle for local, regional and international dialogue, while at the same time offering an alternative platform for freedom of expression that is not subject to the same tight control by the authorities as traditional media. Increasingly across the globe, people are using film as a means to convey their identities and experiences through innovative visual expressions to address social, cultural and political issues. With the ambitious aim to strengthen and expand the girth of filmmaking in the Arab world and link it closer to the global landscape of film, DTFF is presenting an array of various initiatives to support filmmaking in the Arab region. Some of these initiatives include film education and appreciation, as well as supportive business models to assist with film distribution and provide access to finance – these initiative are underpinned by DTFF’s four pillars: culture, community, education and entertainment. By offering initiatives at a grass roots level, the objective is to create a vibrant and dynamic infrastructure for filmmaking, which will nurture and support emerging talent as well as give rise to the new era of influential filmmakers. With this relationship in mind, DTFF will seek to foster a fruitful coexistence between an elite level of filmmaking and an emerging ‘street level’ film industry. “The destination of DTFF is multi-tiered; it will embody a strong and diversely voiced film industry, which will not only promote film production, but rather all the facets that are involved in the industry,” says Palmer. “This is one aspect of DTFF, another is to ensure that we improve access to film funding and film distribution in order
to nurture the new generation of filmmakers, while helping existing ones create and convey their films. “Creating appreciation for film, while fostering a supportive film community, is another facet that DTFF will aim to create. Ultimately we are trying to craft the framework for a broad film community that will house within it a variety of inner-supporting communities. DTFF is a very holistic and long-term project, which will encompass all the vital elements for a dynamic and vibrant film industry.” The opening film of the DTFF (and its own Middle East debut) will be Amelia, a film by accomplished Indian-born, director Mira Nair. The film’s open-air screening in the grounds of MIA, will mark the launch of the DTFF event and will be unveiled to a general audience of around 4000. Starring Hilary Swank as Amelia Earhart, and Richard Gear as George Palmer Putnam, Amelia tells the story of legendary aviation pioneer Amelia Earhart, who set out to become the first woman to fly across the Atlantic in 1937, whatever the outcome… “To me, it’s an incredibly strong statement to have Mira Nair, who is one of the most respected female film directors in the world, taking part in a community-minded international film festival,” says Palmer. “Mira Nair represents everything that we at DTFF admire and are committed to – she is a woman who’s professionally self-made and who absolutely devotes her life to film education and enabling storytelling.” Nair established the educational filmmaker’s laboratory, Maisha, in 2005, in Kampala, Uganda to support film writers and directors in the region. The initiative was born out of her commitment to enable young budding film industry folk to tell their stories. She also wanted to raise the benchmark for film representation and understanding as part of a wider film appreciation initiative. “This programme has been like a social revolution for what it has done for Uganda – this is a woman who is dedicated to film education on a level that you really have to admire,” states Palmer. As part of her participation with DTFF, Nair will be conducting a film making master class where she will discuss the many dimensions of filmmaking. However, as part of the broader industry line-up participating in DTFF, Palmer says some of the filmmakers, include Palestinian film director Elia Suleiman (The Time That Remains), Cary Jôji Fukunaga (Sin Nombre), Oliver Stone (South of the Border) and Mohamed Al Daradji, director of Son of Babylon. “It’s such a privilege to have filmmakers of this calibre involved with DTFF, but not only to come to show their films, but to participate in workshops and Q&A sessions – it’s phenomenal,” says Palmer. OCTOBER 2009
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Al Daradji is an Iraqi-born film director, who was born in Baghdad and studied film in the Netherlands and UK. His debut, Ahlaam (2005), a narrative set in and actually shot in war-torn Iraq (one of the first films made there after the US invasion), won worldwide acclaim. He followed it with a documentary about the making of Ahlaam, War, Love, God and Madness (2007). Palmer says Al Daradji, is a pioneer for the Arab film industry, who lends his compelling voice to “tell the stories of Iraq that haven’t been told before”. “He’s a great hope for Iraq as well for Arab filmmakers. Son of Babylon is important to the region and influential for the new wave of filmmakers,” she states. At DTFF, Al Daradji will feature his latest film Son of Babylon, which is a neorealist film set after the fall of Saddam Hussein in Iraq, 2003.
- Doha's artistic beacon, the Museum of Islamic Art, will play host to DTFF -
The film will take viewers on a journey through Iraq; a troubled land where no one knows what lies ahead. Central to the film are Ahmed and his grandmother, who set out to uncover the fate of the boy’s missing father – one of the many soldiers who never came home from the Gulf War of 1991. From the mountains of the north to the sands of Babylon, the pair cross paths with fellow pilgrims on similar gruelling quests. As his grandmother struggles to accept an awful truth, Ahmed retraces the footsteps of a father he never knew. Al Daradji spent a year hand training the cast and crew of Son of Babylon, which included many survivors of Saddam’s regime (lead actress Shazada Hussein, who is the only woman to have testified at his trial). Al Daradji says the film refuses pity and sensationalism to paint a true reflection of the human struggles that exist within Iraq’s borders. For Al Daradji’s previous film, Ahlaam, Palmer says while Al Daradji was shooting the film in post Sudam Iraq, he endured a series of life threatening events. “During the making of Ahlaam, Al Daradji and his cameraman were captured by insurgents. The film man was injured after receiving a gunshot wound to the leg, 46
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they were then masked, with bags forced over their heads, and marched down to the Tigris River ready for execution. Fortunately, some American troops intervened. They detained and questioned Al Daradji and his cameraman for four days as they thought they were former Ba’athist’s [Arab socialist party],” Palmer informs. “Filmmakers like Al Daradji highlight the real dangers that are associated with making films in the Middle East. Al Daradji is lucky to be alive. When he showed his film Ahlaam for the first time in Bagdad, the security measures that he had to take just to show his film there were huge – his mother begged him not to leave the house everyday – it just goes to show the extent and extremities that filmmakers, like Al Daradji, are going to in order to making their films. “The complexities of to make a film in Iraq…you can’t begin to explain to someone, who doesn’t live in Iraq what the true dangers are – he made his film on the streets of Bagdad in one of the bloodiest times in recent history,” says Palmer. It’s important for people to understand what some filmmakers go through in order to make their films and this is why Palmer says there is an equal responsibility for DTFF to help these filmmakers in the region. “It’s already difficult to make a film under normal, everyday circumstances, so those who take on the challenge of making a film in a more hostile and much more challenging environment, well we really owe them a leg-up,” she says. To make his film, Al Daradji put his life on the line, which Palmer says makes it a real privilege for her to be able to feature someone like Al Daradji at the DTFF. “For me personally, to be able to bring such an exceptional Arab filmmaker to the region and to show his film, it certainly will be one of my highlights during the festival,” Palmer says. On the topic of censorship, surprisingly Palmer said that it “hasn’t been a challenge” for DTFF. “Many people find it surprising when I say that the lack of diversity of international films currently being shown in Qatar is not due to censorship restrictions, it’s because of what’s being programmed in the cinemas,” says Palmer. Presenting a slate of some 30-plus feature films over its four-day inaugural festival event, DTFF will showcase internationally acclaimed Arab films, plus an array of films, documentaries, animation and world cinema. While much of the DTFF screenings and events will take place at the vast grounds of the MIA, events will spill on to Souq Waqif and supporting hotels, including the W and Four Seasons, as well as other key venues around Doha. For more information visit www.dohatribecafilm.com
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SPECIAL REPORT - TELECOMMUNICATION
Busy Tone Qatar’s telecommunications sector is becoming increasingly competitive, both domestically and on the international stage. Daniel Moore, Oxford Business Group’s editorial manager, Qatar, discusses the strategic objective of its players.
- Qatar is ranked second in the world for per-capita mobile phone use -
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he recently released Global Competitiveness Report 2009-10, prepared by the World Economic Forum (WEF), ranked Qatar as the most competitive economy in the Middle East and North Africa (MENA) region, and 22nd overall out of the 133 countries assessed. The country scored highly in the category of technological readiness, the ability of an economy to adopt existing technologies to enhance productivity. In particular, the WEF cited Qatar’s embrace of new communications technology as a factor that enhanced its competitiveness saying, “the country has made great strides in harnessing the latest technologies, such as mobile telephony and broadband.” Those great strides have seen Qatar ranked second in the world for per-capita mobile phone ownership, 37th for broadband Internet subscriptions and 33rd for the total number of Internet users. While the willingness of Qataris to make use of the latest technological advances has helped to improve the country’s economic competitiveness at an international level, it is on the domestic stage where things are really heating up. On March 1, a new era dawned, with Vodafone Qatar launching a limited mobile phone service, thus marking the end of Qtel’s monopoly on the market. Full services covering around 99 percent of the country were launched in July. Not surprisingly, Vodafone Qatar has experienced some teething problems, partly due to having to share some of
Qtel’s infrastructure and in part as a result of the unexpectedly high levels of client pick up. In mid-September, Vodafone Qatar announced it passed the 100,000 subscriber mark. Though well ahead of the company’s own projections, and a good start towards its target of taking a 40 to 60 percent market share within 10 years, Vodafone Qatar still has a long way to go before it can - Daniel Moore, OBG, Qatar. truly rival Qtel, which has 1.9 million subscribers on its books. Despite having just a fraction of Qtel’s subscriber numbers, Vodafone has set out its stall, seeking to challenge the incumbent with different products and pricing packages. And it is the appeal of the new that is attracting at least some of Qtel’s existing customers to its rival, with the two companies basically providing similar services on mobile and Internet platforms. Both companies have reduced costs for some mobile phone services and stepped up special offers, including cut-price Internet downloads and cheap international calls. One area that Qtel still retains at an advantage in is the fixed-line segment. Though Vodafone is also supposed to provide fixed-line services, a launch date for such an operation
SPECIAL REPORT - TELECOMMUNICATION
- Both providers are offering stepped-up special offers, including cut price internet downloads and cheap international call rates -
has yet to be set, with the company saying in early September it had not as yet been issued the required licence by the Supreme Council of Information and Communication Technology. Though Vodafone may have to wait before it can mount its challenge to Qtel’s landline monopoly, the company has racked up a few impressive achievements in the past few months. The entrant’s initial public offering, which was concluded in April, raised US$930 million (QR3.4 billion), with some 82,000 individual Qatari investors and 273 institutional investors taking a stake in the firm. While Qtel is responding to the challenge offered by Vodafone, its domestic operations are just part of a much bigger corporate profile, with the company active in 17 separate countries across the MENA and Asia region, maintaining a subscriber base of around 52 million. The company has declared its objective of becoming one of the world’s top-20 telecommunications firms by 2020, an aim it seems on track to achieve. Despite having raised its debt levels in recent years to fund an ambitious acquisitions programme, Qtel has had little difficulty in rolling this debt over, despite the generally tight liquidity situation. In mid September, it renegotiated a loan of US$2 billion (QR7.3 billion), arranging a forward start agreement on a revolving credit facility maturing in next month, extending the credit by two years. According to Qtel’s chief executive officer, Nasser Marafih, the company is focusing on consolidating three years’ worth of growth, though it would always keep watch for any opportunities that would augment its portfolio. Qtel may be an international firm, but much of its recent expansion has yet to be translated into revenue streams. Until they do, Qtel will rely on its original core market to underpin its operations, though now it will have to contend with a competitive Vodafone on the other end of the line.
- Vodafone still has some way to go to rival Qtel’s 1.9 million subscribers -
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ON THE PULSE
Rights at the right price
The balance between economic prosperity and human rights has always driven wedges between groups of varying interests. But the GCC, led by Qatar, is taking steps to show the two concepts are far from exclusive, whether in the work force, women’s education, or the labour market. Edward Jameson reports.
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he past few months have proved to be comparatively liberating across the GCC. On August 1, Bahrain’s Ministry of Labour enacted a law granting expatriate workers in our neighbouring country similar freedoms to Bahraini nationals in terms of switching jobs. As was revealed by labour minister H E Dr Majeed Al Alawi, the shift was intended to remove the constraints from the sponsorship system enacted across almost the entire GCC, including Qatar, which many see as unsuitable for a modern and increasingly prosperous economy. And perhaps more important than the initial shift itself, was the spirit in which it was greeted by analysts, much 50
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to the chagrin of the private sector, which presented fierce opposition to the Bahraini powers that be. Analysts hailed the move, and many believe it will trigger copycat action across the GCC, including right here in Qatar. Dr Samir Pradhan, a senior researcher at the Gulf Research Centre, a Dubai-based, GCC-wide independent think-tank says it is “highly likely” that other GCC states will follow Bahrain’s move given the “incessant international pressure for labour reforms.” He went on to predict the move would be “highly economically beneficial both in the short- and long-term.” A glowing endorsement that could pay dividends for Qatar, which now has the luxury of being able to watch the economic results in Bahrain, before deciding whether to jump on the bandwagon as Pradhan predicted. Indeed, according to local reports, Kuwait may be on the verge of overhauling its sponsorship system by allowing expatriate workers to be
self-sponsored provided they maintain a clean record throughout their initial two years in the country. “I am serious about finding a solution to this issue,” the country’s labour minister Mohammad Al Affassi reportedly said. In reference to criticism levelled at the state by human rights groups over the mechanics of its system, he added: “Particularly because it affects the reputation of Kuwait and has highly significant humanitarian dimensions.” The news coming out of the Gulf in relation to the long standing and highly-criticised system of sponsorship is positive from a human rights perspective, despite the misgivings of the private sector regarding possible “damage” to national economies, due to workers being given the freedom to potentially depart jobs within months of the cost of the worker’s relocation being shelled out by the employer. Human rights advocates will be hoping that such moves prove to be
ON THE PULSE
part of a wider trend towards individual liberty – a socio-cultural trend, as opposed to a mere economic one.
Escape to liberty
To further the months of libertarianism, the results of a fascinating study were released last month in Qatar. Figures compiled by the Permanent Population Committee, the national authority convened to assess whether the nation’s population demographics are in line with the country’s sustainable development plans, showed that the nation has seen a steep increase in the divorce rate. Such a steep increase in fact, with the number of divorces rising by more than 300 percent since the ‘80s, that it now claims the highest rate of divorce among Arab countries, three times more than in, for example, Egypt. But the results masked a more dramatic and noteworthy shift in the fortunes of women in Qatar, and the importance of the role that women have to play in the future of the
nation’s economic diversification and development. The study revealed that most of the Qatari women had higher educational qualifications than their newly-divorced male partners. And perhaps more tellingly, the number of those divorcing in the first few days of marriage climbed to a huge 31.8 percent in 2009, from just 4.4 percent two decades earlier, and those early divorces were far more likely to involve younger people. Surely no study can reveal more about the progressive role played by women across the country. Not just in the fact that women are now assuming senior roles in both the public and private sectors, but in the fact that even from an early age, young, educated Qatari women are assuming the right to better themselves and pursue their own ambitions and agendas, as opposed to that of their husbands. The shift towards women assuming these vital roles is evident in many forms of national culture, intertwined with societal shifts. The Qatari Business Women Forum (QBWF) is one shining example. Established in 2000, in a bid to enhance women’s contribution to economic activity across Qatar, the forum also assists businesswomen
in understanding economic laws and financial regulations, as well as upgrading their skills and capabilities to strengthen their role in the process of economic development. The QBWF has also played a major role in spearheading the MENA Businesswomen’s Network (MENA BWN), which holds its leadership meeting bi-annually, the last of which was held in Sharm El Sheikh, Egypt, at the beginning of this year. The network includes representatives from at least 18 different MENA countries. “The idea for a regional network in the MENA region came from the women themselves in 2005,” says Businesswomen’s Networks Program for Vital Voices director, Mary Macpherson. “It has evolved from a loose confederation of regional organisations, some brand new, to a real network of women who want to do business.” Macpherson points to what she describes as the increased value in creating a forum to share international best practice. “The MENA BWN leadership is made up of women running active and growing businesses…and their involvement reflects the value they see in collaboration across their many borders,” she says. SEPTEMBER OCTOBER 2009
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ON THE PULSE
- Workers will be free to walk away – but with uncertain economic effects? -
QBWF vice chairwoman Aisha Alfardan agrees. “The QBWF aims at constantly supporting such initiatives,” she says, speaking following one of the many events organised by the group in pursuit of its stated goals – in this case, an abaya exhibition. “Such events bring new ideas and businesses to this country while at the same time offer a means for Qatari ladies and even expatriates to network together during such occasions.” One of the driving forces behind the strive towards independence among Qatari women is H H Sheikha Mozah bint Nasser Al Missned, the second wife of Qatar’s Emir H H Sheikh Hamad bin Khalifa Al Thani. Al Missned is widely credited as spearheading Doha’s Education City, so allowing Qatari women to seize the opportunities they so clearly sought.
The heat is on
However, the stride towards personal rights in pursuit of long-term macroeconomic progress does not end there. Early on this summer, as temperatures across the Gulf touched 50 degrees on the thermometer, the issue of the midday work ban raised its seasonal head. The real test of the Gulf’s willingness to adopt socially responsible practices will come in the region’s collective response to the ongoing issue of labourer protection. From Human Rights Watch reports, to the front pages of internationally-read newspapers, to the TV screens of Europe and to the Internet, the treatment of labourers across the region has raised as many questions as it has answered. 52
OCTOBER 2009
Primary among the issues is the GCC split within the workings of each countries midday work ban. Qatar began enforcing summer working hours in open spaces on June 15, with workers instructed to cease non-time specific operations between 11.30am and 3pm. The ban ran until August 31. The Ministry of Labour, which was responsible for enforcing the ban, installed further provisions to avert the logistical problem that effective policing of the ban presented, by seeking to ensure that labourers were made aware. “A notice displaying working hours must be put in a prominent place, so that it is clearly visible, and can be seen by every worker and labour inspector,” the MoL says. Bahrain, Kuwait and the UAE implemented similar bans. But tellingly, neither Oman nor Saudi Arabia has such a ban in place, to the consternation of human rights groups. Despite this, there is a growing acceptance across the Gulf of the fundamental need to adopt best practice in sensitive areas that may infringe on human rights, despite the difference in many country’s interpretations, if sustainable economic growth is to be achieved in the long term. The private sector, so often the elephant in the room when it comes to socio-economic acceptance of human rights, has a vital role to play despite the fact that often, its own reputation precedes it. Michael Hopkins, economist and managing director of MHC
International, a social enterprise that aims to promote social, economic and environmental development using the services of the private sector, explains: “Corporations are generally viewed cynically by the public and the comment that corporations will do anything to make a profit is held by most,” he says. “Yet, there is not much doubt that this new millennium has embraced the private sector, while at the same time, bringing increased concerns about its power and lack of democratic control.” The region is moving in the right direction towards sustainable growth from a social and economic perspective
ON THE PULSE
There remains much work to be done, not least in the disparity in the approaches taken by the GCC countries. Qatar, however, is among the front runners in most areas. - Edward Jameson
- Female students at Weill Cornell Medical College in Doha’s Education City (Weill Cornell Medical College). -
- Outdoor labour must cease in Qatar between during the hottest time of day. -
reflected in the progressive overhaul in the sponsorship system; the new age of assertiveness in women across the Gulf, led by Qatari women; or the gradual bowing of public policy and the private sector to humanitarian interests. There remains much work to be done, not least in the disparity in the approaches taken by the GCC countries. Qatar, however, is among the frontrunners in most areas. Are economic prosperity and respect for human rights mutually exclusive concepts? No, they are quite the opposite. The next time you are passing the boardroom of a prosperous Doha-based company, just ask any Qatari female you see inside. SEPTEMBER OCTOBER 2009
53
BUSINESS VIEW - REAL ESTATE
edd brookes WHEN INFORMATION REALLY IS KING This month Edd Brookes makes the case for a better informed property market on the basis that buyers, sellers and developers will benefit.
M
arket transparency is one of the fundamental differences between an emerging property market and an established one. By their very nature, emerging markets tend to display a number of characteristics, which make transparency difficult. Demand and supply imbalances can lead to rapid price increases, which make accurately tracking these changes very difficult. Purchasers tend not to be end users and typically, the market features a number of short-term investors, whose activities can cloud the market further. Whether or not ‘investor’ is the right terminology to use as it implies some sort of risk appreciation, maybe ‘flipper’ is a more appropriate term. What is clearly emerging now and certainly applies to the districts in Qatar where expatriates can purchase either 99-year leasehold (usufruct) interests or freehold tenure (such as The Pearl), is that the vast majority of purchasers are either long-term investors (looking to lease out their purchase, with a view to benefit from capital as opposed to rental growth) or are end users who will actually occupy the property. This of course shifts the expectations of purchasers, with both groups looking to purchase a home for them to either self-occupy or to lease out, but not to ‘flip’ after six months. These types of purchasers tend to be far cannier and more emotionally involved in their purchase than our friends the ‘flippers’ (as mentioned above). It will certainly be interesting to see how those reputable estate agents and brokers in Qatar react to this challenge. For one, it would be refreshing to be properly informed about some of the important processes, from who manages the property to how the property registration process works by somebody who actually understands the system, rather than an agent that is more interested in their commission for that month. Certainly with regard to the responsibility of managing a property, it is normally the developer’s role to ensure that a building is managed for the first year after completion – either by undertaking this tack themselves, or by appointing a suitably qualified company. During this time any snagging problems should be effectively dealt with and all plant and machinery should be seen to be working efficiently. After the first year, the individual owners will have the right to elect their own management committee, which will represent the individual owners. This committee, following an annual meeting, will have the right to retain the services of the existing managing agents or appoint new ones. Probably a slightly poisoned chalice for the initial managing agents in that there is likely to be a number of issues and teething problems associated with a brand new building, which no doubt will be blamed on them.
BUSINESS VIEW - REAL ESTATE In terms of the actual mechanisms of how registering an interest in a property is affected, this is slightly more complicated. However, this is the sort of question that brokers must be able to answer satisfactorily, especially if Qatar is to maintain its attractiveness to expatriate purchases, as we would like to believe it could. The body that has been designated to be responsible for running the land registry system is Qatari Diar, the master developer of Lusail as well as other large projects, both domestically and abroad. Prior to Qatari Diar’s appointment to this role, it was under the remit of the Land Information Centre (part of the Ministry of Municipal Affairs and Agriculture) although only the registration of land transfers was then required. Currently a land title is not provided until a building has been completed and has received the final sign certification from, among other departments, the Civil Defence. Prior to building completion, purchasers have the right of assignment of title against which any mortgagee can also register their interest. In terms of obtaining the residency permit and owning a usufruct of freehold property (and remember it is just a residency permit not a work permit) the procedure becomes cloudier. However, it would appear that you could apply for a resident’s permit, which has to be renewed every five years by the ministry. Whether or not it will be up to the individual to apply on his or her own behalf is yet to be confirmed, but in my view and at the time of writing it seems that this will be the case. It is still not clear how much public access there will be to the land registry system. Currently this is not in the public domain, but it strikes me that this is precisely what is needed in order to establish some much-needed transparency in the Qatari property market. Certainly in terms of the developing the secondary market, it would help to ensure that those marketing property for sale actually have the right to sell it, while also providing a much clearer picture as to the original price paid for a property, and on which date the purchase took place. While agents may fear that they have the most to lose from a more transparent system, I believe that it would result in a more balanced property market, with more confidence. Additionally, it would go far to ensuring that the Qatari market could make the needed corrections in a more efficient and logical manner
- Ttransparency in the real estate market will ease the path for both buyers and sellers -
as compared to where things currently stand. In fact, agents would find that they would benefit from the transparency. With more market confidence, realistic and market facing selling prices and well-informed purchasers their reputations would be enhanced, which would result in agents doing more deals. I noted with interest the recent developments in the Dubai property market – which is yet to reach its turning point - that led to the development of property auctions. This is a move, which will no doubt aid transparency and is certainly a popular way to buy and sell property within Europe and the United States, especially during more difficult times. Both buyer’s aspirations and seller’s expectations can be immediately judged by the market place in an open environment. And while I’m certain that there remains a high portion of sellers, who are disappointed with the low level of bid prices and buyers, who believed they could get a better bargain than, in reality, they could, does go to prove that information is everything and markets must be allowed to react. While I am not suggesting that this would necessarily be right for the Qatari property market (especially as the key fundamentals of population growth and availability of real estate finance put Qatar in a class of its own regionally), what I do believe is that buyers, sellers and all those involved with the local property markets would benefit in a very positive and substantial way.
- If Qatar is to remain attractive to expatriate purchases the mechanisms surrounding interest in a property must be explained satisfactorily by the brokers -
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55
LEGAL INSIGHT
E D LY
o C &
C entre d is
n an F inancial ntio officer e v a r
e t if th ith a con its a enalty plies w r, or m p m com dato y co cial pan a finan ssist or e liqui or. m o t a h c of t s to le to uida liab dly fail equest the liq r s a bro nable bstruct u p tary and so or o a e e i ng a volun t r a s d r r o e n , o rp ind wi take ny’s ry n under o, co lyde & C ation) h a H t mpa d c a i i n o c r C c u y u E f a n (liq ro es, ith r Vol compa o; o rtne ding up tar rticl : ce w A a a p n p u f a do s t it , d o t g a n o l r i t n ; o i s a a s n c d S s. eQ rie ew win ) In ac ociatio resolve lves th inue in th gulation a se d David cuss th s t y o a s f ( s n n d a e o a o e r f c p t e is a st an r r R e o e com pany ilities e to be d l o fi , e c y t i p h t c e c ia or ar om abl f th en liab is, th bran any inc ssoc (b) I f the c n of its is advis solv n y I I In th ercial a Centre o t p s i C t ntar ea (c) com the QF m al by r and tha 8). volu the i a t m c o o e o n a 5 n t c s to er th y er ina can or ticle ines lar in lying C) und e nc ar F p ily its bus up (Ar dure f y simi nd oth re t v r p d l a a e a t F Q a s Q so n s tablish volun FC nd wa adl oce ision tre ( wou he pr is bro glish la There up e I nlatio es p eQ u h . Th t y g n s p prov ial Cen T d n n n f E u indi ing eg u mpa e woun order o der ng ictio vide nc ant windi ure un jurisd tary w wind ng pro rs’ R A co b v y t e Fina l l b y re di Sa embe w ar p un ced may orily ( 6). s he wind u pro on la of vol volunt ry win key and t m C n s 5 l F o i o u e a e e ’ re comm pes H o the provis ns Q comp (Articl onc lunt rs a s th de t bers cle, p atio o or unal) cases, n is ma uidato g up. two ty ‘mem ors’ vo iscusse arti w of l u u s i g t q t e d ely, n th overvi inding cy Re lating s Trib redi le all re li cisio ndin nly n w e n In ty or de or mo the wi Schedu h nam and ‘c ticle o an ntary Insolve ssues r editio ’ i hic one t up’ his ar s i r to d to hor T volu r the ertain sequen reditor y aut mpany, atten reade tions, w This o up. e e c b c r t a o . lso s th Regul idator of a a c inted und hlight tice. Su s of r u e p f ) e c l o m u r hig rac topi p, co xterna e app le 57 r olvency f a liq office o and vency p the e n u s ic h s t a t n r r y I t , e r l s g A e a the inso discus windin olunta opriat vant pow s th 1 of ut the rovide (v appr le e r d , o will ntary p n n a ere the tio sets le also volu ing up on. Wh ed to nforma d as c e i i d d ALT arti i t d n wi inistra be gu rther gar ice. DS e I r V e DA adm er will for fu t may b y pract c read isions for wha solven n v pro cularly as of i i e part alist ar i spec
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companies
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LEGAL INSIGHT
features of the former, leaving the topic of ‘creditors’ voluntary winding up to the next instalment.
Members’ voluntary winding up
The main key provisions are clearly set out in Section 2 of Part 3 of the Insolvency Regulations. Directors’ declaration of solvency: To initiate a members’ voluntary winding up, the directors of the company must, at a properly convened directors’ meeting, make what is commonly referred to as ‘solvency declaration’. This requires the directors to make a full inquiry into the company’s affairs and that, having done so, they form the opinion that the company will be able to pay its debts in full within such a period (not exceeding 12 months from commencement of the winding up) as may be specified in the declaration. Because of the consequences relating to the making of a false or inaccurate declaration (see below), it is advisable for directors to declare that the company would be able to pay its debts ‘within 12 months’ to deal with any unforeseen events. This declaration can be made up to five weeks before the passing of the (company’s) resolution to wind up the company, or immediately before that happens. In the absence of a solvency declaration, the winding up would be a ‘creditors’ voluntary winding up’ and further requirements, including the convening of creditors’ meetings, apply. Article 63 relates to the declaration of solvency and importantly provides that directors must make reasonable enquiries of the company to have grounds to form the requisite opinion. The making of a declaration without reasonable grounds by a director gives rise to a contravention of the Insolvency Regulations and liability to a financial liability. Practically, each director should have the most up to date financial reports to support the making of the declaration (perhaps a ‘special purpose financial report’ prepared by its accountants or auditors). This is especially important because if the company’s debts are not paid in full within the period specified in the declaration, each director is taken
- A company in the QFC can wound up compulsarily or voluntarily -
(at first instance) not to have reasonable grounds for forming their opinion. Resolution to wind up and appointment of one or more liquidators: To undertake a winding up, the company must generally pass a special resolution (approved by more than 75 percent of its shareholders). However, as most QFC companies are wholly owned subsidiaries of foreign companies or are otherwise closely held, it is expected that the company’s immediate parent company, or other entity, approve a written resolution to wind up the company and to appoint one or more liquidators to deal with its affairs and distribute its assets (which are surplus to its liabilities). Once passed, the company must notify the QFC’s Companies Registration Office (CRO) and, if required by the appointed liquidator(s), place an advertisement in one or more local newspapers (Article 59). Although the passing of the resolution marks the commencement of the voluntary winding up and the company is taken to cease to carry on its business, its corporate status and powers continue until it is dissolved (Article 61).
Consequences of liquidator appointment: After the appointment of one or more liquidators all powers of the company’s directors cease, except to the extent where they are preserved by its shareholder(s) in a general meeting or otherwise permitted by the liquidator(s) (Article 65(2)). In addition, all transfers of shares are void from the commencement of the winding up (i.e. the passing of the resolution) (Article 62). QFC authorised insolvency practitioners: Currently, there are only two insolvency practitioners registered with the QFC, who may be appointed as liquidators by a company; namely, Joanne Kim Rolls and Steven John Parker of Tenon Recovery, both based in the United Kingdom. It will be watched with interest whether the number of authorised insolvency practitioners will increase, possibly from the relevant departments of the ‘big four’ global accounting firms. As part of preparatory steps, companies should
OCTOBER 2009
57
contact these individuals (or the firm) to obtain a quote for winding up. It is accepted practice in some jurisdictions for two liquidators (from the same firm) to be appointed (jointly) to each company to deal with any unforeseen events happening to either of them. Meetings during the winding up process: Once the company’s affairs are fully wound up, the liquidators must account for their activities and present that account at a general meeting of the company (Article 67). If the winding up lasts for more than one year, the liquidator must convene a general meeting within three months of the end of the first (and each succeeding) year to provide an account of the liquidators’ winding up activities (Article 66). Insolvency and conversion to a creditors’ voluntary winding up: If the liquidators consider that the company will be unable to pay its debts within the period stated in the directors’ declaration of solvency, the liquidators must convene a meeting of the company’s creditors within 21 days of forming that opinion, providing not less than 14 days notice (Article 68). Once held, the winding up would become a creditors’ voluntary winding up and certain deeming provisions apply for the winding up to proceed in that manner.
(c) ‘Preferential creditors’ which are defined in Article 148 as: (i) A person, who is or has been an employee of the company, who is owed remuneration by the company, including any notice period not exceeding three months, of up to US$50,000; (ii) A person, who is or has been employee of the company, who is owed by the company reasonable accrued holiday remuneration and reasonable contributions to an occupation pension scheme; and (iii) The State, the QFC Authority, the QFC Regulatory Authority and the CRO (presumably in that order of priority) in respect of taxes, financial penalties and fees owed by the company; then (d) Unsecured creditors. Notification requirements: When a company is being wound up, every document issued by or on behalf of the company, or the liquidator on which the company name appears, must contain a statement to the effect that the company is being wound up. Practically,
the words ‘in liquidation’ should suffice. The type of documents this would apply to include business letters, written orders for goods or services, invoices, receipts, written demands for payment and similar documentation. Mutual credit and set off: Article 107 broadly provides for a statutory set-off of mutual credits, mutual debts or other mutual dealings between the company and any creditor of the company. As a result, only the net amount (if any) is payable or receivable by the liquidator of the company. This is commonly used by insolvency practitioners to minimise the cost of winding up a company, while preserving the amount of distributable property. 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. For any information in respect of legal issues, please contact Eric Ho (eric.ho@ clydeco.com.qa) or David Salt (david. salt@clydeco.com.qa).
Other issues in practice
Distribution of company property and priority of payments: Article 91(2) provides that, in a winding up, the priority of payments is as follows: (a) Secured creditors to the extent of their security; (b) Costs and expenses, including the liquidator’s remuneration, properly incurred by the liquidator in the exercise of its functions; 58
OCTOBER 2009
- Liquidators must convene a general meeting at the end of the first year to provide an account of their activities -
industry focus - architecture
- Progress will depend on developing context-specific solutions that are suited to thier social, cultural and economic surroundings -
Education for
the Future of the Built
Environment
in the Gulf
Kevin Mitchell, director of the Office of Graduate and Undergraduate Programs and the associate professor of Architecture for the American University of Sharjah, United Arab Emirates, discusses the future of the Gulf’s architecture and the important role that education plays in its success or foundering.
I
n a article published in the Gulf Times on August 27, 2009, entitled Glass Buildings not Suitable for Qatar, a number of those interviewed commented on the excessive consumption of resources resulting from buildings that are ill suited for the climate. This problem not only affects Qatar, but the entire Gulf region as architects and engineers struggle to reconcile the demand for iconic statements with the ethical imperative to reduce the consumption of resources. Designing buildings that are both iconic in appearance and energy conscious in outlook is certainly possible, but would likely take more time for design and construction. However, in the rush to complete projects, there has been little time to consider the consequences and develop long-term solutions.
Increasing recognition of the environmental challenges posed by rapid development in the Gulf has led to concrete initiatives such as the Barwa Real Estate Company and Qatari Diar Real Estate Investment Company Research Institute, Abu Dhabi’s Masdar project and ‘Estidama’ guidelines, and Dubai’s ‘Green Building Code’. These will undoubtedly contribute to improvements, but success will ultimately depend on consistent implementation of legislation, while addressing questions related to sustainability in a comprehensive manner. An emphasis on building codes and prescriptive guidelines can have unintended consequences, such as hindering the development of novel solutions that contribute to expanding our knowledge base and advancing our understanding.
industry focus - architecture
- Architects and engineers struggle to reconcile the demand for iconic structures with the ethical need to reduce the consumption of resources -
Another indication of the evolution in thinking about the relation between the buildings and environmental sustainability is the formation of so-called ‘green building councils’ throughout the Gulf. While these councils have the potential to make significant contributions, success will depend on the degree to which they will be able to influence policy formulation and the development of standards that are binding. If activities are limited to advocacy and merely encouraging sustainability, then the long-term impact may be limited. Ultimately research institutions, municipal authorities and councils could benefit from greater regional cooperation and a move toward Gulf Cooperation Council (GCC)-wide standards. This would facilitate the work of developers, engineers, architects and contractors that work throughout the region, while also reducing the coordination efforts necessary to ensure compliance. Few would argue against the need for moving toward more sustainable practices, however, given the complexities associated with achieving sustainability, there may be widespread disagreement on the way forward. Tensions could certainly result from balancing the desire to attract investment with the necessity to develop and implement stringent legislation that could affect short-term profits. Additional challenges may arise when sustainability measures developed elsewhere are imported without being adapted to the particular situations in the Gulf. Progress will depend on developing context-specific solutions that are suited to the specific social, cultural, economic and political situation of individual countries. Design education has a vital role to play in addressing the challenges associated with the expanding built environment and exploring solutions that respond to the particular conditions that exist in the Gulf. But, the responsibility of educating designers should not only rest with the region’s universities. With each new academic year, eager students continue to 60
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enrol in the increasing number of design programs across the Gulf. The most competitive programs attract students, who have distinguished themselves through their performance in academic work at the primary and secondary levels. These students have a fundamental grounding upon which to build at the university level. However, while many students have mastered what it takes to succeed in the region’s high schools, they are less prepared to enter design programs that require a level of comfort with ambiguity and what can be termed ‘practical intelligence’. Many of the region’s diverse high schools, especially those that maintain a focus on preparation for standardised tests, tend to focus on the acquisition of basic knowledge rather than on developing an analytical approach to material and the ability to synthesize. In the worst cases, this reinforces the inclination to rely on memorisation and what could be termed a ‘learning by listening’ approach. This is antithetical to processes of design that begin with questions to which there may be no single correct answers and the questions themselves are subject to continual refinement or reformulation. Practical intelligence relates to the ability to develop knowledge regarding how to do something rather than knowledge about something. This should not be confused with the kind of practical knowledge that can be gained through vocational training and directly applied. In contrast to the mere application of knowledge that vocational approaches would warrant, practical intelligence would imply that concrete problems are carefully analysed with the aim of developing novel solutions that may not be immediately apparent. A radical suggestion would be to supplement the pervasive ‘learning by listening’ approach with ‘learning by doing’ and equip primary and secondary classrooms with workshops. This would provide a framework for students in which to gain knowledge through a process of investigation and application.
industry focus - Architecture
While there are policy discussions related to moving toward a knowledge economy in many Gulf countries, ultimate success may depend upon the ability to educate students, who intimately understand the connection between theoretical knowledge and hands-on application. If this process of understanding and learning by doing does not begin at a young age, then the challenges will likely prohibit the aspirations from becoming realised. Supplementing classroom lectures at the primary and secondary levels with hands-on investigation to facilitate the development of practical intelligence would mean that students would not only gain knowledge, but would also be actively involved in creating it through investigation. And, if GCC-wide environmental standards existed, then they could serve as a point of departure for investigating sustainabilityrelated issues in classroom and workshop settings. An architect interviewed for the Gulf Times article (mentioned above) lamented the fact that many new buildings in Qatar failed to address fundamental issues related to solar orientation and the movement of the sun throughout the day. This would be true for many buildings throughout the Gulf and for many student projects in the region’s architecture programs. In the case of actual buildings being constructed, the denial of such basic principles results from the inability to reconcile the demand for iconic statements with the ethical imperative to adapt buildings to the environment in order to conserve resources. Student projects that fail at such a basic level perhaps do so because there is not the insistence on facilitating the development of the practical intelligence necessary to resolve the competing demands that characterise any design problem. Developing architectural solutions that respond to the context and embody sustainable principles requires time, effort and a great deal of thought. At a fundamental level, discussions related to sustainable practices are complicated by the fact that there is no clear universally agreed upon definition of sustainability. There are also aspects of sustainability that go beyond the environmental challenges and encompass social and cultural concerns. Extreme environmental conditions, a disproportionate expatriate population, real estate speculation, and an increasing focus on tourism compound the challenges faced in design and construction in the Gulf.
- Green building councils have the potential to make significant contributions -
Addressing the present and future problems associated with the rapid expansion of the built environment will require comprehensive efforts on the part of professionals involved in development, design and construction and those responsible for educating the next generation. Professionals must find ways to balance demands for profitability with the need for preservation for the future. Educators have an equally challenging task because a commitment to improving the built environment will require transmitting existing knowledge, fostering the intellectual independence to question it, and facilitating the development of the practical intelligence necessary for advancing our understanding.
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TECH TOOLS
James McCarthy picks the best bits of business tech to hit the market this month. Phone-booklet Finnish phone maker, Nokia, rocked the world with its new direction earlier in the month. Nokia World 2009 revealed the ever-so-stunning Booklet 3G netbook...and boy do we want it. Nokia claims that the 0.78” wide by 10.1” long device has a 12-hour battery life, which is a pretty bold claim. Other details released about the mighty mini is that it will be shipped, with a 1.6GHz Intel Atom Z530 CPU, Windows 7, WiFi and a built-in, hot-swappable SIM card slot for 3G access. Other specs include 1GB of DDR2 RAM, a 120GB hard drive, a 10.1” LCD (1280 x 720 resolution), Bluetooth 2.1, AssistedGPS, HDMI, USB 2.0 (x3), an SD card reader and a 1.3 megapixel camera. Oh and it is gorgeous. Did we mention that we want one? Nokia are presenting three colours at launch, black, ice (white) and azure (blue). The only bit we do not like is the price. So far, the word is that it will take around QR3000 out of your pocket, which is pretty high for a netbook, and that is pre-VAT. Nokia Italy is the first to start pre-orders for the Booklet, and the full price is closer to QR3700. We still want one though. www.nokia.com
Green? But it’s black If you want energy saving monitors to go with your company’s planet protecting policy, the Taiwanese display giant, BenQ, has the answer. The company brings to the market its first LED-backlit 19” widescreen LCD monitor, the imaginatively monikered G920WL. With its, as yet unannounced, “low price point”, BenQ is hoping the new models will appeal to eco-conscious companies that are struggling to update their IT infrastructure due to budgetary constraints. As any display guru will tell you, apart from the ecological benefits of LED’s – mercury-free, with energy efficient backlighting of up to 60 percent in some cases – there are professional benefits too, including improved colour performance. Unlike CCFL lighting, as used by conventional LCD monitors, the G920WL’s LED backlight means that individual pixels are not constantly lit, therefore resulting in a better contrast ratio of 5,000:1. For the tech specs, the glossy black-bezelled monitor delivers a 1.3 megapixel (1440 x 900) resolution in a 16:10 aspect ratio, while the LED enables pixels to pump out images at a brightness of 250cd/m2. Connectors consist of a 15-pin, D-sub analogue VGA connector and a digital DVI-D input. Other features of the futureproof display, include BenQ’s patented vision technology, Senseye, which offers one-touch image optimisation calibrated to specific applications: standard (office and Internet), movie, game, photo, sRGB (for colour consistency applications) and Eco. The new G-series eco-displays from BenQ are available this month. www.benq.com
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HOW-TO GUIDE
SUCCEED WITHOUT STRESS
HOW-TO GUIDE
Steve Tobak, a US-based marketing and strategy consultant and high-tech industry veteran, lends his insight to TheEDGE’s How-To Guide this month to equip you with the skills, expertise and know-how to identify new business opportunities, reduce your workplace stress and to achieve success.
7 SIGNS YOU ARE CREATING YOUR OWN WORKPLACE STRESS
Quick, by a show of hands, how many of you have workplace stress? Almost everybody. Now, how much of that stress do you think is self-imposed? What, no hands? Well, I am not surprised, but you may be in for one. You see, most people make their own stress. Why do they do it? How should I know? I am not a shrink. So how do I know it is true? I do not; you tell me if any of these seven signs resonate with you: 1. 2. 3. 4. 5. 6. 7.
Not making enough money? Join the club. Nobody, I mean nobody makes enough money. Work hard, be smart, do great things, learn how to negotiate and the money will come. That is how it works. Underappreciated, nobody loves you? Boss treats your co-worker better than you? Did you ever think maybe it is you? Maybe you are always whining. Maybe you treat them pretty poorly. Maybe you never grew up. Who knows? Your group gets no respect. IT is always getting dumped on. Sales and marketing has it easy. Guess what? The other group probably feels the same way. It is called ‘silo behaviour’ and it is destructive, period. Grow up. You have a psycho boss? An abusive self-hating person, who acts out their childhood drama on poor unsuspecting employees. That rough, but the unemployment rate is not so favourable either, so you do not get to pick your boss. Fighting battles you cannot win generates stress. Too much work, too little time. This is usually self-imposed. Are you sure your deadlines are real and not just you feeling self-important, pushing yourself too hard because you have not got a life outside work? Slow down, what is the worst that can happen? Peer problems. There is a co-worker that you just do not get along with and it is really stressful, right? Well, guess what? I will bet they feel the same way about you. It happens to everybody. Try a little détente. Offer an olive branch. Swallow your pride and give in. It will not kill you. Executive management does not listen or care. Did it ever occur to you that executive managers are people too? They have their own issues and they are not perfect. Some companies are well managed; some are managed by idiots. On the outside chance they are not idiots, did you ever think that maybe, just maybe they know more than you do?
If you think these seven signs oversimplify things, think again. You may be overcomplicating things. Try a little experiment: If you experience an issue or two and it changes when you move companies or groups, then you were probably in a dysfunctional workplace. Welcome to the real world. Do not whine and complain. Do not give in and do not give up. Be optimistic. Continue your search for a passionate, fulfilling job at a great company. You will find it. But if it does not change, if it is always the same, then it is probably you.
HOW-TO GUIDE
WANT TO BE SUCCESSFUL? STOP TRYING SO HARD
If you are reading this, chances are you are driven by achievement and success, at least to some extent. Well, some of the most careeroriented, success-minded individuals drive themselves too hard and become their own worst enemy. I am not talking about work-life balance; I am talking about how your drive can become toxic to your career. Here is what I mean: In 1991, a 10-year engineering manager turned salesman got an opportunity of a lifetime. Steve was hired to run OEM sales for a hot start-up company. It was an executive staff position with stock options and everything. Sure enough, the company went public, but hit a snag -– competition from Microsoft. Revenue growth hit a solid wall and the stock took a nosedive. Tensions were high at work…and at home, since Steve was a newlywed with a mortgage. But he took it too hard, tried too hard, and royally ticked off his, albeit dysfunctional, CEO, who canned him in the next round of layoffs. Unfortunately, the tech’ industry was in a recession, and executive jobs – any jobs, for that matter – were hard to come by. After a few months of fruitless job searching, Steve bottomed out. He took a hard look in the mirror and realised he had done this to himself. He also realised that it just was not worth it. After all, what was the point of having a good job if he was miserable and made everyone he cared about miserable – this behaviour got him fired – so he vowed to let go and to lighten up. And that is exactly when Steve’s career started to take off and all good things came to him. Sure, he slipped up a few times, but that is the nature of big, gut-wrenching change. It is never just ‘up and to the right’ it is more like two steps forward, one step back. Still, he knew what he wanted, and that was to be happy, success be damned. And you know what? Steve became a successful senior executive for many years. In case you have not figured it out, Steve is me and the story is absolutely true. Over the years I have come across hundreds, maybe thousands of success-minded individuals like me. Maybe there are one or two close to you. They push themselves too hard and become their own worst enemy. I could be wrong, but I do not think you can help these people ‘see the light’. They need to have their own personal crisis that hopefully leads to change. Still, you can be there for them when it happens, and there is probably a lot of that going on these days. Get them to read this, or share a few words that might help to encourage them or act as a catalyst for change. For me, the words that helped to transform my career were “The only true success is happiness.” I have obviously never forgotten those words. Perhaps you have got your own mantra for not overdriving your career.
HOW-TO GUIDE
HOW EVENTS SHAPE YOUR CAREER: ARE YOU PAYING ATTENTION? If you could look back over an unsuccessful person’s life, it might tell you a story of missed opportunity and bad advice. The reverse is probably true for a successful person. When I look back over my life and career, there were hundreds, maybe thousands of potential influences and paths I could have taken. I am not sure why I chose certain paths and not others, or what exactly determined, which advice I followed. Maybe it was just dumb luck, but I do not think so. I think some things people say really resonate with your mindset and situation at the time. In those rare cases, you not only follow the advice, but you remember it as pivotal in your life or career. A casual piece of friendly or professional advice, given at a time when you are open to it or perhaps need it, can change everything. Here are 10 things people have said to me over the years that stuck with me and, in all but one case, had a significant effect on my life by precipitating career and life changes. In most cases I can recall every detail about the event, even if it happened decades ago. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
“The future of electronics is semiconductors.” – Morty Brozinsky, chairman of Standard Microsystems Corporation and father of my girlfriend at the time, c. 1978. “The only true success is happiness.” – Nigel Williams, president, Manhattan Skyline (a UK semiconductor distributor), on the way to Heathrow Airport, c. 1992. “Why do I need a mirror to shave? I know where the razor is and I know where my face is.” – Simon, a friend, c. 1990. I do not know why, but I recall that line every time I shave. “You and I are either going to be a love fest or oil and water.” – Brian Halla, CEO of National Semiconductor, during my final interview for VP of corporate marketing, c. 1997. “You can spend your whole life whining and complaining and annoying everybody, or you can suck it up and think positively.” – Dick Carroll, my manager at Texas Instruments, c. 1981. “What’s the common element in all the crap you’ve gone through in your life? You!” – I know who said that, but I am not telling. “It’s yours to lose, buddy.” – Matt Ready, sales director at OPTi (a chip company), friendly advice during the interview process for my first Silicon Valley marketing management job, c. 1993. “I think you’d make a great salesman.” – Phil Richards, president of Phase II (semiconductor rep company), c. 1988. “Don’t screw this one up, Tobak.” – Mike Kusbit, a friend, upon meeting my future wife, c. 1989. “You can go crazy looking back and saying ‘what if?’” I do not remember who said that, but I was a teenager in the 1970s in Brooklyn, NY.
With the exception of the “shaving” line – which I just cannot forget no matter how hard I try – these are 10 sentences from 10 events that materially shaped my career and life. They are not exhaustive by any stretch, but the point is that a handful of instances can change your world, but only if you are paying attention. So are you…paying attention? Now it is your turn to share. Think about it; it is fun.
Life & style - SPORT
SPORT
R u cking Autumn is well underway and that means that the weather is becoming more hospitable for outdoor activities – it also heralds the start of rugby season in the Gulf. James McCarthy laces up his boots, pops in the gum shield and gets ready to ruck ‘n’ roll.
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un F ood
When you think of sport and Doha, your first conclusion is not likely to be rugby. However, this little Arabian peninsular has been ploughing a furrow of sporting success in the discipline since long before the current national drive for sporting excellence. The 15-man game “for hooligans played by gentlemen” has a 35-year history in Qatar, which began back in the mid 70s’ when a few like-minded expatriates began chucking an oval ball around a vast sandpit, more broadly referred to as West Bay. Since those halcyon days, the sandpit of West Bay has since sprouted several glittering tower blocks, all in the name of progress, effectively shooing the rugby team out of the way in the process. However, not to be outdone, the rugby boys also progressed; they now play on a proper grass pitch at the Doha Rugby Football Centre (laid down in 1998 at the club’s purpose-built facility next to Doha College), which has been the home of Doha (and Qatari) rugby since 1977. The rugby club boasts a clubhouse, fully stocked kit-shop called Arkwrights, a swimming pool (we will not mention the gym facilities) and one of the best welcomes in town. In the richest traditions of rugby, the clubhouse is not just a sports facility, it is a social centre where lifelong friendships are forged and old war stories recycled, with a little more embellishment with every telling. It is a place that becomes as ingrained in the
LIFE & STYLE - SPORT
community as its patrons are loyal – Doha Rugby Club prides itself on upholding this greatest of rugby traditions. It is this tradition that has enabled the club to boast a regular match-day attendance in the hundreds for every home game, be it the first team, the veterans or either of the ladies sides that are playing. Equally it is this diversity, which has enabled the club to maintain a high playing membership, which at the time of going to press stood at around 450 and continues to climb. The rugby club fields two men’s teams, with the first XV competing in the Gulf Premiership and the Arabian Gulf Cup competitions, while the veterans represent the club in the second team competitions, the Arabian Gulf Emirates League Championship and the Arabian Gulf Bowl. The two ladies’ sides compete in an eight-team, round robin sevens series throughout the season, with each team hosting a ‘home tournament’. Because Doha has two teams, the Oryx and the Trojans, they host two tournaments a season, with the first taking place this month (see The Match box). Bolstering the club’s family-friendly image, and actively promoting youth rugby in the Gulf, are 350 children who represent Doha RFC in Mini-Rugby and youth tournaments throughout the region. All teams, including these youth sides, compete for their respective titles at the annual regional rugby jamboree, the IRB Dubai Rugby Sevens, which takes place on the first weekend of December. Even though Doha’s rugby club is well subscribed, it will always welcome newcomers that are keen to play, come out to training and pay the subs. There are enough games, tours and friendly matches in a season to make sure everyone who deserves it gets a run out. However, if getting down and dirty every Friday afternoon doesn’t suit, then the club offers social memberships, which entitle the holder to full access to all the facilities, without the bruising or post-match ice bath. If you are still a little sceptical, pop down to the club on one of the upcoming match days. Non-members are welcomed for the duration of the game, which should offer enough time to fall in love with the place, its people and its passion. www.doharfc.com
Re-Member Me Full membership is QR945, while social membership is QR810. Students only pay around half price, with a season’s membership costing just QR485. Family memberships are also available, priced at QR1181 for full membership and QR1013 for social status. You can apply and pay through the club’s website: www.doharfc.com/membership
Upcoming home fixtures at Doha Rugby Football Centre Date Fixture Competition 16th October Dubai Dragons Gulf Cup 23rd October Doha Ladies Vs Gulf Teams Doha Oryx Home Tournament 30th October Dubai Dragons Gulf Premiership 6th November Doha Vets Vs Gulf teams International Paints Doha 10s 13th November Kuwait Nomads Gulf Cup *Fixtures correct at time of going to press, but are subject to change. Kick-off times vary per match, so we recommend checking with the club beforehand on +974 468 3771. OCTOBER 2009
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Life & style - Leisure Tools
LEISURE
Tools
American ty u ea B
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Make the morning drive a doddle as James McCarthy gets under the hood of some cool corniche-cruising cars.
You have seen the movie Transformers, now drive the car…yes, people of Doha, you can now own your very own Bumblebee. To make the trip to work go with a grunt, step behind the wheel of the new 2010 Chevrolet Camaro SS. Available in a number of colour schemes, the classic American muscle car still sports the twin-stripe twotone design and is immediately recognisable, though the front end has been slightly reworked and looks a little more threatening - as if daring you, Clint Eastwood style, to make its day. Under the expansive, snarling hood, as you would expect, is a growling 6.2 litre Chevy V8 powertrain, which delivers 426 horsepower and 420 Newton metres (Nm) of torque. This is very much a driver’s car with its live rear axle, sixspeed manual gearbox and firmed up sports suspension. A sequential fuel injection system and an engine that can get you from zero to 100 kilometres per hour in just 4.6 seconds means that you have the acceleration to pass that toppling flatbed truck on Rainbow Roundabout with ease, while the StabiliTrak electronic stability control system will ensure that your wheels hug the road as you make your move. As well as the superb performance, the car just looks good…outside and in. The interior is as plush any European luxury car with the same price tag and is just as feature-packed. Apart from the disappointing fact that the car refused to talk to us in ‘radio-speak’ or turn into a giant, laser cannon wielding fighter robot, it is a car capable of delivering a high-octane thrill, even in the rush hour. www.jaidah.com
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the et G R8 best
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It has taken Audi 100 years to deliver the new R8 Spyder 5.2 FSI Quattro, but fortunately for us, we only have to wait until next spring. Unveiled at the recent Frankfurt Motor Show, the company has done the seemingly impossible by improving its critically acclaimed R8 coupe, with a few design changes and by lopping off the lid. The Spyder still retains the beauty and the menace of its coupe cousin, but does so in candy-apple red and corniche-cruising style with a body line that looks like it is moving even when its not. Once you strip aside the car’s obvious beauty, the Vorsprung durch Technik becomes apparent. A mid-mounted 5.2 litre V10 engine delivers a tarmac-searing 525 horsepower and 530Nm of torque, which propels this soft-top rocket from zero to 100 kph in just 4.1 seconds. The aluminium Audi space frame technology and carbon fibre body work means that, even with the six speed manual transmission, the car weighs in at just 1720 kilograms. When coupled with the power of the V10, the FSI direct fuel injection system and Audi’s Quattro four-wheel drive system, its weight advantage makes this a very fast car indeed. And so it should be - the same engine powers the new Lamborghini Gallardo! The Spyder rolls on 19”, 10-spoke wheels with eight-piston calliper disc brakes up front and four-piston callipers at the back, so stopping at speed is not going to be a problem, even more so if you opt for the oversized carbon-fibre ceramic discs. The interior of Spyder offers opulence in fine Nappa leather upholstery and a sound system designed especially by the aural maestros at Bang and Olufsen. Comfort is critical, so even as summer draws in the top can stay off thanks to the Spyder’s deluxe air conditioning system – it means you will stay feeling as cool as you will look behind the wheel of this little German genius. www.audi-me.com
LIFE & STYLE - HOTEL REVIEW
hotel
review
W - onderland With Tribeca in town, the eyes of the movie world will be trained on Doha, and entering the shot from stage left will be the W Hotel.
The palatial purple hotel and residences in West Bay is one of the principle venues and sponsors of the landmark movie event. In the build-up to the feast of film that awaits, the hotel has already kicked off its programme of events, with a number of evenings dedicated to showing one-minute movies, written, directed and produced by Qatari film buffs. The films cover a broad range of subjects from humorous, sideways glances at Qatari stereotypes, homages to famous films with a local slant and cultural revues as well as tackling more serious issues such as human rights and the environment. Aside from the film-based festivities that will be happening leading up to, and during, the Tribeca event, the hotel has a lot to offer besides. It has quickly become a social hub for the city since its opening earlier this year, with its classy nightspots and gourmet restaurants. The W is of course home to The Market and The Spice Market, a chain of eateries that has become synonymous with the W brand the world over. The concept and the culinary delights are the brainchild of gourmet genius, Jean-Georges Vongerichten. From black truffle pizza to a simple steak, The Market offers up everyday eating with a flair and verve you won’t find elsewhere, while the Spice Market transports you straight to the Orient with a ton of tantalising tastes from the ancient east-west spice trail, which of course Qatar was a major hub. The gastronomic savoir faire does not stop there. Further up into the West Bay skyline you have the Maison Du Caviar, which, as the name would suggest, serves up Doha’s finest caviar in a number of imaginative ways. It is also a great place to lounge and enjoy the chic french atmosphere. OCTOBER 2009
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Through October, enjoy Moule et Frites (Mussels & Fries) night each Saturday, while the restaurant also will also welcome guests for Oysters Nights and Truffle Week, celebrations of some of the gastronomical world’s most exalted treasures. Then you you have Wahm, a re-imagined traditional Shisha café, which is a modern Arabic lounge by the hotel pool. Serving up bar food with a W twist, and offering the coolest place to chill in town, Wahm has quickly established itself as the place to spend those lazy Fridays with friends. For something a little more lively, Crystal Lounge is the city’s hottest nightspot and is definitely the place to be seen when the sun goes down. Opened in April, the dancefloor has already grooved to the dropped beats of internationally renowned DJs, none more famous than the man who took the decks for their first spin, Buhddah Bar supremo, DJ Ravin. If all of this luxury is taking its toll, then you’re in luck, the W is also home to the BLISS Spa and SWEAT Gym. After that heart-pounding workout, hit the spa and enjoy a the signature menu of over-the-top services like the super-relaxing Blissage75 and red carpet-revered Triple Oxygen Treatment. Once you float out of your blissful pampering, a few pounds lighter and all guilt-free, trip into Teuscher Chocolates. This is the stuff that sweet dreams are made of - the finest cocoa, marzipan, fruits and nuts from around the world, skillfully blended into a hundred different types of exquisite treats. Teuscher uses original recipes and all of its chocolates are crafted by master confectioners in Zurich and flown directly to this exclusive boutique of diet-unfriendly delights. You final stop in Wonderland should be the stylist, after all you don’t want to attend those red-carpet Tribeca events looking like you have been dragged through a edge backwards. Hit CUT and let one of Paris’ top snipper, Alexandre Zouari’s, talented hairstylists work their magic with one of his fabled concoctions. With dedicated areas for both men and women, you and your date can look fabulous attending that much awaited film premier. Reservations are recommended and the salon offers a full range of treatment from cuts and styling to just a shampoo and blow dry... All right, Mr DeMille, TheEDGE is ready for its close-up. www.starwoodhotels.com 74
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EVENTS/CONFERENCES
Middle East Energy Security Forum 11 – 14 October 2009, Grand Regency Hotel, Doha, Qatar With billions being spent to safeguard the region’s critical infrastructure and ensure operational continuation, MEESEC is the Middle East’s leading energy security forum, which is designed to shed light on the essential mechanisms that thwart any attempts of vandalism, terrorism, sabotage, criminality, piracy and theft. The event will also involve keynote speakers, who will discuss and unveil the latest strategies and technologies that can be implemented to effectively mitigate threat risk in the region.
Middle East Insurance and Reinsurance Summit 11 – 15 October 2009, Monarch Hotel, Dubai, UAE The event will provide an opportunity to hear the world’s insurance and reinsurance leaders debate the critical macro-trends affecting the international and domestic business landscape, with a key focus on the insurance sector in the GCC region. The event is aimed at insurance and reinsurance company CEOs, CFOs, COOs, CROs, marketing and new business development executives, as well as property and casualty insurance buyers, key brokers, regulators and agencies from major jurisdictions and investors.
The 2009 GCC Cards Summit 21 – 22 October 2009, The Ritz-Carlton Hotel, Manama, Bahrain The summit will bring together industry leaders to address the core issues and challenges of this sector, with the ultimate aim of providing practical solutions to succeed and build sustainable competitive advantage from 2010 and beyond. The summit will help delegates and partners better understand the trends and opportunities, how to capture a share of this lucrative market, and how to maximise business profitability through more effective risk, marketing and business management strategies.
Middle East Infrastructure and Energy Finance Conference 2009 27 – 28 October 2009, Le Meridien Hotel, Abu Dhabi, UAE The Middle East Infrastructure and Energy Finance Conference will review the development of public-private-partnerships in the region, the potential for renewable energy financing, the development of infrastructure funds and alternative sources of borrowing, and new sectors to project lending, while delivering first hand commentary from the banks that have stayed and upped their project finance presence and the new lenders that have replaced some of the international banks that retreated from the market.
Offshore Middle East 2009 27 – 29 October 2009, Bahrain International Exhibition Centre, Manama, Bahrain This key event is dedicated to offshore oil and gas technology in the Middle East. It provides a forum for industry leaders to address technical issues, introduce pioneering technology and share lessons learned about finding, developing and producing oil and gas in Middle East offshore regions.
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Construction & tenders
QATAR PROJECTS UPDATE Ezzdan, Qatar General Insurance, Al-Sari Trading announce QR2.5bn West Bay venture With plenty of news coming out of the real estate and construction jamboree Cityscape Dubai, a new QR2.5 billion real estate project in West Bay Doha has been announced by Qatar General Insurance and Reinsurance Company, Al-Sari Trading Co, and Ezzdan Real Estate. According to the MOU the parties agreed to develop a joint real estate project that would cover roughly 30,000 square metres. According to the reports, the project will include the construction of four 55-storey residential towers, which will offer residents around 1,300 medium to large sized living units in addition to commercial and entertainment facilities. Hotel apartments are also planned. The participants claim that the project shall significantly contribute to the development of the property market in Qatar and will facilitate those looking for Doha’s most exclusive lifestyle destination.
Qatar Leading The GCC Real Estate Recovery Qatar has been named alongside Abu Dhabi and Saudi Arabia as the GCC areas likely to recover first from the impact of the global real estate slowdown, according to a new report by Jones Lang LaSalle. The company’s third semi-annual Real Estate Investor Sentiment Survey for MENA, suggests a “marked improvement” had been seen with “significant demand” being seen for the right product. This news follows hot on the heels of a study by Century 21 Qatar, which states that supply of Doha homes is now exceeding demand. According to the report, some 5,000 new properties have entered the market and construction activity still strong in many areas, but the city’s population growth has not kept up the pace. The real estate firm said that sales and rental prices have fallen by as much as 35 percent since October 2008, allowing tenants to move to more expensive properties that were previously out of their price range. Qatari Diar Looks To Vietnam Qatar’s property investment arm, Qatari Diar, is exploring opportunities in Vietnam. CEO Ghanim Bin Saad Al Saad, confirmed in a statement that the country was “central to Qatari Diar’s continual expansion” following discussions with an official delegation from the Vietnam’s Communist Party. The delegation headed by the central committee member Nguyenba Thanh, visited the Lusail headquarters of the real estate investment company. The visit focused on detailed discussions exploring investment opportunities in Da Nang City. It follows reports in March that Qatar and Vietnam were in talks about setting up a $1 billion fund to invest in sectors including agriculture and tourism.
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construction & tenders SECTION
Radio Equipment
Turnaround Maintenance
Replacement of Lifeboats
Description: Supply and installation of radio equipment Closing Date: October 18th 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. GTC/GT09MT0034 Scope of work for this tender includes the supply and installation of a UHF base station, mobile radio system and portable radio systems for Qatar Petroleum. Bid Bond: QR35,000 Tender documents can be obtained from: Materials Dept, Navigation Plaza, Ground Floor, Room 30
Description: Carrying out maintenance of turnaround within a field Closing Date: November 22nd 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. GT09112100 The project is located at the Fahahil Plant within the Dukhan field. Scope of work includes the thorough internal inspection of critical equipment, overhaul and testing of associated mechanical and electrical equipment and instrumentation as well as carrying out other works to ensure the uninterrupted availability of the plant and its facilities. Bid Bond: QR1,000,000 Tender documents can be obtained from: Contracts Dept, Royal Plaza, G Wing, 4th Floor, Room G13
Description: Replacement of lifeboats for a petroleum company. Closing Date: October 11th 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. GT09110600 Scope of work for this tender includes EPIC works associated with the following lifeboats: Four new 60-man lifeboats at PS-3q, Relocation of three existing 45-man lifeboats at PS-3q to PS-2q, PS-2e & PS-3f. Demolition of one lifeboat at PS3f, Replacement of five 38-man lifeboats with 45-man vessels at NFA (PS-4). Additional requirements are the provision of a heat shield and fender for the Bridge and Platforms respectively at PS-3f, PS3g, PS-2q and PS-3q platforms. Also the tenderer must be capable of providing all associated structural, instrument, electrical and mechanical works. Bid Bond: QR250,000 Tender documents can be obtained from: Contracts Dept, Engineering Division, Ras Abu Aboud, Main Building, 2nd Floor, Room 233
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CONSTRUCTION & TENDERS
Consultancy Services Description: Professional design and quantity surveying Closing Date: October 26th Client: Public Works Authority (ASHGHAL) Phone: (+974) 495 0777 Fax: (+974) 495 0999 email: info@ashghal.com Website: http://www.ashghal.com Tender No. PWA/STC/025/09-10 Scope of work is for post-contract, professional design and quantity surveying consultancy services for the news centre of Qatar Media Corporation. Bid Bond: QR42,000 Tender documents can be obtained from: Contracts Affairs, Public Works Authority, Doha, Qatar
Supply of Tyres and Heavy Duty Equipment
Corrosion Monitoring and Maintenance Services
Description: Supply of tyres and heavy duty equipment on a call-off order system for a municipal authority. Closing Date: October 26th Client: Ministry of Municipal Affairs & Agriculture Phone: (+974) 433 7777 / 433 7414 Fax: (+974) 443 4727 / 433 9104 email: qpr@mmaa.gov.qa Website: http://www.mmaa.gov.qa Tender No. 87/2009-2010 Scope of work is to supply tyres and heavy duty mechanical equipment for the Ministry of Municipal Affairs & Agriculture. The authority requires that a call-off ordering system be established for supply of the products. Bid Bond: QR210,000 Tender documents can be obtained from: Ministry of Municipal Affairs & Agriculture
Description: Provision of corrosion monitoring and maintenance services Closing Date: November 11th Client: RasGas Phone: (+974) 473 8435/ 473 8000 Fax: (+974) 473 8165/ 473 8480 Website: http://www.rasgas.com Tender No. ITT/RG16/G172/09 Scope of work for this tender includes the provision of corrosion monitoring and maintenance services. Tenderer must have experience in monitoring and maintenance of up to 50 CP systems, through a single contract , for a minimum of two years, with at least five years total experience in this field. Previous experience in specialised CP & Coating surveys is required, such as Close Interval Potential Survey, Direct Current Voltage Gradient & Pipeline External Corrosion Direct Assessment. Also the client requires five years experience in design CP systems for piping, tanks, well casings and concrete structures. Bid Bond: QR2,800,000 Tender documents can be obtained from: The RasGas Website Ground Floor, Room 30
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SUBSCRIPTION
SUBSCRIPTION FORM 2009 TheEDGE is Qatar’s new monthly business magazine. 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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